/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100407.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, April 7, 2010, Vol. 14, No. 95 Headlines 1033 OCEAN: Chapter 11 Case Summary & Unsecured Creditor 20 BAYARD VIEWS: Plan Offers 5% Recovery for Unsecured Creditors ABS INVESTMENTS: Case Summary & 3 Largest Unsecured Creditors AIG BAKER: Voluntary Chapter 11 Case Summary AMERICAN RESIDENTIAL: S&P Assigns 'B' Corporate Credit Rating AMERISERV FINANCIAL: Fitch Affirms Issuer Default Rating at 'BB' ANNIE LEIBOVITZ: Sued for Failure to Pay Fees in Financing Deal ARES CAPITAL: Fitch Upgrades Issuer Default Rating From 'B+' ASHFORD HOSPITALITY: Extends Maturity of $157 Million Loan ASIA8 INC: Recurring Losses Prompt Going Concern Doubt AZTK, LLC: Voluntary Chapter 11 Case Summary AZIZ MOHAMMED: Voluntary Chapter 11 Case Summary BANK OF AMERICA: Extends CARD Act Protections to Small Business BAY NATIONAL: Going Concern Doubt Raised as Bank Under OCC Action BEAR ISLAND: Has Final $140 Million Financing Approval BERNARD MADOFF: John Malkovich Seeks $2.3 Million From Trustee BERNARD MADOFF: Owes $984,280 in Sales Tax to New York State BIO-KEY INT'L: Inks Employment Deal with CEO DePasquale BIO-KEY INT'L: Trellus Management Holds 5.20% of Common Stock BIV RETAIL: Foreclosure Sale to Close by Month's End BLACK CROW: Court Denies GE Capital's Case Dismissal Request BLUERIDGE VENTURES: Case Summary & 3 Largest Unsecured Creditors BRACOL HOLDING: S&P Affirms 'B-' Corporate Credit Rating BUCKINGHAM FINANCIAL: Case Converted to Chapter 7 Liquidation CABERNET HOLDINGS: Case Summary & 20 Largest Unsecured Creditors CAPMARK FINANCIAL: Nears Mexican Asset Sale for $18.25MM CCS MEDICAL: GE Capital Provides $35 Million Credit Facility CEMEX ESPANA: Fitch Assigns 'B+/RR3' Rating on Senior Notes CENTRAL METAL: Gets Interim Nod to Use Cash Collateral CF INDUSTRIES: S&P Assigns Corporate Credit Rating at 'BB+' CIT GROUP: Ex-CEO Jeff Peek's Total Pay Down 76% in 2009 CMGT INC: Mayer Brown Off Hook For $17M Malpractice Claim COBALIS CORP: Board Commits to Return to Fully Reporting Status CONNECTICUT AVENUE: Pushes to Sell Days Hotel to Another Buyer D & M BARTON: Case Summary & 2 Largest Unsecured Creditors DAIS ANALYTIC: Cross Fernandez Raises Going Concern Doubt DAVID WEBB: Plan Exclusivity Extended Until May 4 DETROIT, MICHIGAN: Research Group Report Examines Fiscal Condition DJA, CORP: Case Summary & 20 Largest Unsecured Creditors DICIRCOLO FAMILY: Case Summary & 4 Largest Unsecured Creditors DON WILLIS: Case Summary & 20 Largest Unsecured Creditors DOWNEY REGIONAL: Signs Letter of Intent With Presbyterian EAU TECHNOLOGIES: Posts $3,425,708 Net Loss for 2009 EL POLLO: S&P Assigns Unsolicited 'B-' Corporate Credit Rating ELEPHANT TALK: Posts $17.3 Million Net Loss for 2009 EMPIRE CENTER: Interest Holders to Fund Payment of Unsecureds EMPIRE DISTRICT: Fitch Affirms Ratings on Preferred Stock at 'BB+' ENERGY FUTURE: Fitch Downgrades Issuer Default Rating to 'B-' EPIX PHARMACEUTICALS: To Auction MRI Imaging Intellectual Assets EPV SOLAR: Creditors Panel Asks Court to Convert Case to Ch 7 EQUA-CHOR INC: Increased Profits & Successful Initiatives for 2009 ERICKSON RETIREMENT: Files Staffing Report for March 2010 FLEETWOOD ENTERPRISES: US Trustee, Others Knock Disclosure FOXLAND CLUB: Case Summary & 3 Largest Unsecured Creditors FUNDAMENTAL PROVISIONS: Wants to Sell Port Vincent Property GENERAL GROWTH: Fairholme Funds to Buy Equity for $2.685-Bil. GENERAL MARITIME: S&P Downgrades Corporate Credit Rating to 'B+' GENERAL MOTORS: Pressured by Republicans on Delphi Pensions GENERAL MOTORS: Buick and GMC Sales Hike in March 2010 GERALD HELLINE: Case Summary & 20 Largest Unsecured Creditors GERMANTOWN SETTLEMENT: Voluntary Chapter 11 Case Summary GLADE SPRINGS: Greenbrier Owner Acquires 92.5% Stake GLOBAL ASSOCIATES: Case Summary & 9 Largest Unsecured Creditors GMAC INC: Selected as Preferred Retail Finance Provider for Thor GMAC INC: Sells Factoring Business to Wells Fargo GOLDEN EAGLE INT'L: Delays Filing of 2009 Annual 10-K Report GOLDEN EAGLE INT'L: Reverse Stock Split to Take Effect April 15 GOLDSPRING INC: Delays 2009 Annual Report on Form 10-K GRANT FOREST: Chapter 15 Case Summary GREENBRIER HOTEL: Owner Acquires 92.5% Stake in Glade Springs HAM'S RESTAURANTS: Shuts Down Original Friendly Avenue Location HEARTSOUTH PLLC: Case Summary & 20 Largest Unsecured Creditors HESAMEDDIN PAKDEL: Voluntary Chapter 11 Case Summary HOLLYWOOD MOTION: Files Bankruptcy Exit Plan HONOLULU SYMPHONY: Intends to Emerge with Reduced Budget HOTELS UNION: Dekabank Deutsche Asks Court to Dismiss Case IMPERIAL CAPITAL: Hearing on Exclusive Periods Set for April 15 IMPEVA LABS: Files Ch. 11 to Consummate Sale of Assets to ARINC INTERNATIONAL FUEL: BDO Seidman Raises Going Concern Doubt INTERNATIONAL LEASE: Fitch Rates $2.75 Bil. Senior Notes at 'BB' JAMES PICKARD: Case Summary & 12 Largest Unsecured Creditors JEFFREY LEE: Voluntary Chapter 11 Case Summary JOHN ROCCO: Voluntary Chapter 11 Case Summary JOHN WAYNE PIZZA: Voluntary Chapter 11 Case Summary JONES SODA: Posts $10.5 Million Net Loss for 2009 KAINOS PARTNERS: Dunkin Donuts Buys Franchised Stores KAISER ALUMINUM: Files Shelf Registration Statement for VEBA Trust KINGS LANDING: Case Summary & 3 Largest Unsecured Creditors LEVI STRAUSS: Fitch Affirms Issuer Default Rating at 'BB-' MACATAWA BANK: Crowe Horwath Raises Going Concern Doubt MACROSOLVE INC: Hood Sutton Raises Going Concern Doubt MARSHALL ASMAR: Case Summary & 20 Largest Unsecured Creditors MEDICAL CONNECTIONS: De Meo Young Raises Going Concern Doubt MEGA BRANDS: Moody's Cuts Probability of Default Rating to 'D' MEI KNIGHT: Case Summary & 12 Largest Unsecured Creditors MERIDIAN RESOURCE: Adjourns Special Meeting of Shareholders MSGI SECURITY: Issues $650,000 Promissory Notes to Investors NASHVILLE SENIOR: Appeals Panel Denies Request to Retain Venable NATIONAL HOME CENTERS: Stock Building Closes Purchase of Assets NEWLAND INTERNATIONAL: Moody's Cuts Sr. Secured Rating to 'B2' NEW YORK RACING: Racing Industry Rallies for New Casino Operator NEXSTAR FINANCE: Moody's Upgrades Corporate Family Rating to 'B3' NOVA BIOSOURCE: Proposes to Raise Financing by $200,000 NUMMI: Shuts Down Manufacturing at 25-Year Old Plant N.Y.C. OFF-TRACK: Four Racetracks Named to Creditors Committee N.Y.C. OFF-TRACK: New York Racing Appeals Chapter 9 Approval ORLEANS HOMEBUILDERS: Objects to Homeowner's Request for Trustee OXIS INTERNATIONAL: Recurring Losses Prompt Going Concern Doubt PACIFICHEALTH LABORATORIES: Weiser LLP Raises Going Concern Doubt PALI HOLDINGS: Case Summary & 20 Largest Unsecured Creditors PALLADON VENTURES: Sends Letter to Shareholders on Recent Updates PARK SEED: Files for Chapter 11 Bankruptcy Protection RAMSEY HOLDINGS: Gets Final OK to Access Prepetition Lenders' Cash PATHEON INC: Moody's Assigns 'B1' Rating on Senior Secured Notes PATHEON INC: S&P Affirms 'B+' Corporate Credit Rating PHILIPPS-VAN HEUSEN: Gets Early Termination of HSR Waiting Period POSITRON CORP: Delays Filing of 2009 Annual Report on Form 10-K PRWIRELESS INC: S&P Assigns Corporate Credit Rating at 'B' RADIATION THERAPY: Moody's Affirms 'B2' Corporate Family Rating RADIATION THERAPY: S&P Affirms 'B' Corporate Credit Rating RANDALL STEWART: Voluntary Chapter 11 Case Summary REGENT COMMS: Balks at Resilient Request for Equity Panel RHODES COMPANIES: Emerges From Chapter 11 RHODES COMPANIES: Dunhill Homes Assumes Certain Assets RICHARD SCHATZ: Prepetition Default Interest Owed to Lender RJ YORK: Case Summary & 13 Largest Unsecured Creditors ROBERT STUBBS: Case Summary & 17 Largest Unsecured Creditors ROBERT WAYNE: Case Summary & 3 Largest Unsecured Creditors ROCK & REPUBLIC: Creditor Wants Case Transferred to California ROMAINE INCORPORATED: Voluntary Chapter 11 Case Summary ROCK & REPUBLIC: CIT Group Factoring Agreement to Finance Case ROTHSTEIN ROSENFELDT: Accountants Near End of One Phase of Probe RYE PROPERTIES: Case Summary & 3 Largest Unsecured Creditors SANDRIDGE ENERGY: Moody's Affirms 'B2' Corporate Family Rating SOLYNDRA INC: PwC Raises Going Concern Doubt SEARS HOLDINGS: Fitch Upgrades Issuer Default Rating to 'BB-' SHR INVESTS: Case Summary & 3 Largest Unsecured Creditors SUN COUNTRY: Owner Petters Aviation to Become Owner Under Plan SYNTAX-BRILLIAN: Court Denies Motion to Revoke Confirmation Order TELKONET INC: Reports Net Income of $1,059,837 in 2009 THOMAS HURLBUT: Case Summary & 20 Largest Unsecured Creditors THOMAS RAYMAN: Case Summary & 20 Largest Unsecured Creditors TITAN ENERGY: UHY LLP Raises Going Concern Doubt TARRAGON CORP: Westminster Wants Repayment of Matured DIP Loan TRUMP ENTERTAINMENT: Icahn Now Owns Whole Mortgage on Casinos TSG INC: Asks for 90-Day Extension of Exclusivity Periods VERECIA GLADIE: Voluntary Chapter 11 Case Summary US ANTIMONY: Swings to $294,843 Net Loss in 2009 USP TRANS: Case Summary & 20 Largest Unsecured Creditors VERSO PAPER: S&P Raises Corporate Credit Rating to 'B' VICTORY HOME: Case Summary & 3 Largest Unsecured Creditors VINEYARD NATIONAL: Parties Agree to Move Plan Hearing to May 12 WESTERN EXPRESS: Moody's Assigns 'Caa1' Corporate Family Rating WESTERN EXPRESS: S&P Assigns Corporate Credit Rating at 'B-' WIRELESS AGE: Parent Pays Former Units C$750,000 ZAYAT STABLES: Keenelan Juvenile Auction Sets for April 5, 2010 ZEALOUS, INC: Settles with Majority of Creditors * Apartment Rents Decline as Vacancies at Record, Reis Says * Funding Status of U.S. Pensions Increases to 88.1% in March * Upcoming Meetings, Conferences and Seminars ********* 1033 OCEAN: Chapter 11 Case Summary & Unsecured Creditor -------------------------------------------------------- Debtor: 1033 Ocean Avenue Realty Corp. 1033 Ocean Avenue Brooklyn, NY 11226 Bankruptcy Case No.: 10-42855 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Jerome Feller Debtor's Counsel: Bruce Weiner, Esq. Rosenberg Musso & Weiner LLP 26 Court Street Suite 2211 Brooklyn, NY 11242 Tel: (718) 855-6840 Fax: (718) 625-1966 E-mail: rmwlaw@att.net Scheduled Assets: $1,103,300 Scheduled Debts: $942,000 The Company wrote only one entry in its list of 20 largest unsecured creditors. The Company owes $18,000 to Petro Fuel & Oil. The petition was signed by Louis Saintius, president. 20 BAYARD VIEWS: Plan Offers 5% Recovery for Unsecured Creditors ---------------------------------------------------------------- The Hon. Elizabeth S. Stong of the U.S. Bankruptcy Court for the Eastern District of New York will consider the approval of the disclosure statement explaining 20 Bayard Views, LLC's proposed Chapter 11 plan on April 27, 2010, at 3:00 p.m. The hearing will be held in Courtroom 3585, U.S. Bankruptcy Court, 271 Cadman Plaza East, Brooklyn, New York. Objections, if any, are due on April 20, 2010. The Debtors will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, the Plan provides for (i) payment of secured claims over time; (ii) payment to general unsecured creditors; and (iii) sale of the the Debtor's units when necessary to comply with the payment scheme in the Plan. Distributions to be made will be made available from the Reorganized Debtor's administrative claims/priority claims account, professional fees account, net cash flow, excess net cash flow and unit sales. A $17.4 million secured claim and $150,000 of mechanics' liens claims will be paid 100 cents on the dollar. Holders of general unsecured claims aggregating $3.8 million will recover 5% of their claims on the second year anniversary of the effective date. Holders of equity interests will retain their equity securities and receive an equal equity security share in the reorganized Debtor, provided, however, that they provide funding for payment of administrative claims and professional fees. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/20Bayard_DS.pdf The Debtor is represented by: John S. Mairo, Esq. E-mail: jsmairo@pbnlaw.com Robert M. Schechter, Esq. E-mail: rmschechter@pbnlaw.com Porzio, Bromberg & Newman, P.C. P.O. Box 1997 Morristown, NJ 07960 About 20 Bayard Views Brooklyn, New York-based 20 Bayard Views, LLC, filed for Chapter 11 bankruptcy protection on December 4, 2009 (Bankr. E.D.N.Y. Case No. 09-50723). The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities in its petition. ABS INVESTMENTS: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: ABS Investments LLC 1500 79th Ave SE Olympia, WA 98501 Bankruptcy Case No.: 10-42631 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Western District of Washington (Tacoma) Judge: Paul B Snyder Debtor's Counsel: Timothy W Dore, Esq. Ryan Swanson & Cleveland PLLC 1201 3rd Ave Ste 3400 Seattle, WA 98101-3034 206-464-4224 E-mail: dore@ryanlaw.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 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/wawb10-42631.pdf The petition was signed by Tri M Vo, Manager. AIG BAKER: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: AIG Baker Deptford, LLC 1701 Lee Branch Lane Birmingham, AL 35242 Case No.: 10-02059 Type of Business: The Debtor is a single asset real estate. Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Northern District of Alabama (Birmingham) Judge: Thomas B Bennett Debtor's Counsel: Andre' M. Toffel, Esq. Andre' M. Toffel, P.C. 1929 3rd Avenue N 3rd Floor Farley Building Birmingham, AL 35203 Tel.: (205) 252-7115 E-mail: atoffel@wwisp.com Total Assets: $10,000,001 to $50,000,000 Total Debts: $10,000,001 to $50,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by Ronald R. Day, chief financial officer of the Debtor. AMERICAN RESIDENTIAL: S&P Assigns 'B' Corporate Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Memphis, Tennessee-based American Residential Services LLC. The outlook is stable. In addition, Standard & Poor's assigned its issue-level and recovery ratings to ARS's proposed $150 million senior secured second-lien notes due 2015, which will be issued under Rule 144A without registration rights. The $150 million notes are rated 'B', the same as the corporate credit rating. The recovery rating is '4', indicating S&P's expectation that lenders will receive average (30%-50%) recovery in the event of a payment default. S&P estimates that following the transaction, total funded debt outstanding will be about $154 million, and pro forma adjusted debt to EBITDA will be in the 5x area. Ratings are based on preliminary terms and are subject to review upon receipt of final information. "The ratings on ARS reflect the company's narrow business focus, participation in highly fragmented and competitive end markets, and its highly leveraged capital structure," said Standard & Poor's credit analyst Mark Salierno. Privately held and majority owned by CI Capital Partners, ARS has a narrow business focus and participates in extremely competitive niche service industries, including heating, venting, and air conditioning repair and replacement, plumbing, heating, venting, and air conditioning repair and replacement, and energy efficiency services. These businesses are relatively low-margin in nature. In addition, the company's recurring revenue streams are modest, and are mainly limited to residential HVAC home service plans, which account for a small percentage of total sales. However, ARS does benefit from its scale relative to its competitors. ARS has some exposure to weak economic conditions, reduced consumer spending, and tight credit environments, which can restrict consumer financing ability and hinder repair or replacement decisions. However, the company does service a meaningful portion of its business to homeowners in need of emergency repair or replacement. As a result, demand for the ARS's services is less cyclical than other discretionary residential services. The stable outlook reflects S&P's expectation for ARS to continue to grow EBITDA and maintain credit measures that are consistent with rating category medians. S&P would consider a lower rating if margin improvement reverses and liquidity weakens, or if the company pursues a more aggressive financial policy, any of which could result in a meaningful increase in debt leverage and a deterioration in cash flow measures. S&P estimates that EBITDA coverage of interest expense would weaken to the 1.5x area in the event EBITDA declines by about 20%. Although unlikely over the near term, S&P would consider an upgrade if the company demonstrates further consistency in operating performance and margin expansion, while maintaining good liquidity and a financial policy consistent with a higher rating. This would include reducing and sustaining leverage below 3.5x. S&P estimates that, in the absence of further tuck-in acquisitions and financial sponsor dividends, the company can achieve this target by growing sales by low double- digits on a percentage basis and strengthening margins from current levels by 200 basis points or more, while applying excess cash flow to debt reduction and minimizing revolver usage over the outlook period. AMERISERV FINANCIAL: Fitch Affirms Issuer Default Rating at 'BB' ---------------------------------------------------------------- Fitch Ratings has affirmed the long-term Issuer Default Rating and short-term IDR for AmeriServ Financial Inc. and its subsidiaries at 'BB' and 'B', respectively. The Rating Outlook has been revised to Negative from Stable. The rating affirmation is indicative of ASRV's ample capital levels, low credit costs, robust reserve coverage, and sufficient liquidity. While earnings have been constrained by higher provisions and elevated operating expenses (primarily driven by FDIC fees), a relatively strong net interest margin and steady deposit growth continue to support ASRV's overall financial performance. Ratings remain constrained, however, due to the lack of granularity in the company's loan portfolio, heavy CRE concentration (55% of total loans), and ASRV's limited franchise. The Outlook revision incorporated Fitch's analytical framework on commercial real estate as articulated in the Special Report 'U.S. Bank CRE Exposure Review' dated Nov. 16, 2009. While traditionally its markets have possessed limited economic growth, the company has also benefited from its operating footprint. ASRV's markets have not participated in the rapid growth in real estate values and consequently have been less susceptible to the significant valuation declines. Nonetheless, the loan book possesses some sizeable commercial relationships which have contributed to the material spike in non-performing asset, which increased to 2.53% at year-end 2009 (YE09) from 0.65% at YE08. However, NCO's have remained low, totaling 0.60% for 2009. Providing additional ratings support are ASRV's capital levels, which remain strong with TCE at 7.71% at YE09. As previously mentioned, helping to bolster regulatory capital, ASRV received $21 million in preferred stock issued under the Treasury's Capital Purchase Program. Although capital levels are expected to remain ample, given the company's higher risk profile, sizeable CRE exposure, and absolute size, these enhanced levels of capital are viewed prudently by Fitch. As reflected in the Negative Outlook, due to the macroeconomic weakening in CRE with its impact on vacancy rates and underlying cash flows, Fitch expects credit stress will persist in ASRV's CRE portfolio, elevating credit costs, and challenging earnings generation. Should credit costs become more pronounced than anticipated, creating pressure on sound capital levels and impeding the company's financial performance, negative rating implications could ensue. Conversely, should credit costs be contained with manageable asset quality deterioration, and the company return to sustainable profitability, the Outlook could be revised to Stable. Headquartered in Johnstown, PA with $960 million assets, ASRV provides financial services, retail, small business and commercial banking through its wholly owned-subsidiary, AmeriServ Financial Bank. One of 13 banks in the United States that operates with unionized employees, roughly 60% of ASRVB's total workforce is unionized. Fitch has affirmed these ratings with a Negative Outlook: AmeriServ Financial Inc. -- Long-term IDR at 'BB'; -- Short-term IDR at 'B'; -- Individual at 'C/D'; -- Preferred stock at 'B+'; -- Support rating at '5'; -- Support floor at 'NF'. AmeriServ Financial Bank -- Long-term IDR rating at 'BB'; -- Long-term deposits at 'BB+'; -- Short-term IDR at 'B'; -- Short-term deposits at 'B'; -- Individual at 'C/D'; -- Support rating at '5; -- Support floor at 'NF'. AmeriServ Capital Trust I -- Preferred stock at 'B+'. ANNIE LEIBOVITZ: Sued for Failure to Pay Fees in Financing Deal --------------------------------------------------------------- Carla Main at Bloomberg News reports that Annie Leibovitz was sued by Brunswick Capital Partners LP, a Manhattan-based investment firm, for failing to pay at least $315,000 in fees it alleges are due as part of her financing deal with private-equity firm Colony Capital LLC. According to the report, Brunswick entered into an agreement with them in February 2009 to seek "strategic financing" for Ms. Leibovitz, according to the allegations of a lawsuit filed April 2 in New York State Supreme Court in Manhattan. Brunswick asserts in the complaint that it obtained a list of lenders for Ms. Leibovitz in exchange for a $50,000 initial retainer fee and weekly $10,000 retainer payments. Brunswick also alleges it is entitled to a 2% "success fee" stemming from Ms. Leibovitz's deal with Colony Capital. Art Capital Group in September 2008 gave Ms. Leibovitz access to a $24 million loan, backed by rights to her photograph and real estate in New York. Their agreement was that Art Capital would be the "irrevocable, exclusive agent" for the sale of her works and property for the loan's length and for two years after she pays it off. Ms. Leibovitz was unable to pay off the loan. Art Capital later sued Ms. Leibovitz before the New York State Supreme Court, New York County, in Manhattan (Case No. 09-602334), for breach of contract, claiming that Ms. Leibovitz failed to cooperate with the sale of her photographs and did not grant access to the real estate backing the loans. Annie Leibovitz, 59, is the creator of famous photographs including a nude of John Lennon in a fetal position with Yoko Ono, and a portrait of a pregnant, naked Demi Moore published on the cover of Vanity Fair magazine. ARES CAPITAL: Fitch Upgrades Issuer Default Rating From 'B+' ------------------------------------------------------------ Fitch Ratings has affirmed and removed the ratings of Ares Capital Corporation from Rating Watch Negative following the closing of the Allied Capital Corporation acquisition. A summary of all rating actions is: Ares Capital Corporation -- Long-term Issuer Default Rating affirmed at 'BBB'; -- Senior secured debt affirmed at 'BBB'. Allied Capital Corporation -- Long-term IDR upgraded to 'BBB' from 'B+' and subsequently withdrawn; -- Senior unsecured debt upgraded to 'BBB-' from 'B+/RR4'. The Rating Outlook is Stable. Approximately $1.97 billion of debt is affected by this action. The removal of Ares' ratings from Rating Watch reflects the company's ability to meet financial and non-financial targets articulated following the announcement of the Allied acquisition in October 2009. Pro forma leverage is expected to be at or below the 0.65 times to 0.75x target, due to Allied's significant asset sales and debt repayments and due to Ares' issuance of approximately $386.6 million of common equity since August 2009. Additionally, Fitch believes the debt maturity profile of the combined company has improved following the extension of Ares 2010 debt maturities and the refinancing and partial pay down of Allied's secured notes. In January 2010, Ares upsized its revolving facility by $165 million to $690 million and extended the maturity from December 2010 until January 2013. In February 2010, Allied received a $250 million secured term loan and debt proceeds were used to repay existing secured indebtedness and allowed Allied to recoup a $50 million restructuring fee paid to secured note holders in August 2009. This term loan was repaid upon closing of the merger. The next debt maturity for the combined company is approximately $320 million of public unsecured notes due in July 2011. From a non-financial perspective, Fitch believes the integration of Allied has been proactive. Ares will retain a portion of Allied's employees on a temporary basis, to aid with the final integration steps, and a smaller number will be retained permanently to ensure smooth management of acquired portfolio assets. The Stable Outlook reflects Ares' ability to remain in compliance with asset coverage requirements in a very difficult capital markets environment, maintain earnings consistency, and its ability to access the equity markets, which Fitch believes will provide the company with a competitive advantage, as it will be able to take advantage of attractive investment opportunities, while many competitors continue to focus on capital preservation. The potential for future recognition of unrealized portfolio depreciation that would result in a reduction in asset coverage below 205% and/or deterioration of the company's asset quality or liquidity profile could prompt a ratings downgrade. However, Fitch believes the achievement of consistent operating performance, the recognition of modest realized portfolio gains over time, the reversal of a meaningful portion of the unrealized portfolio depreciation recorded to date, sustainable cash income coverage of the dividends, an improvement in asset quality metrics, and an increase in funding flexibility would serve to enhance the company's financial profile. The notching of the unsecured debt from the IDR reflects the subordination of interests to secured debt holders and, therefore, reduced recovery prospects. Still, Fitch believes that recovery prospects remain strong for all classes of debt given the requirement for BDCs to maintain asset coverage of at least 200%. Headquartered in New York, NY, Ares Capital Corporation is an externally managed business development company, organized on April 16, 2004, initially funded on June 3, 2004, and on Oct. 8, 2004, completed its initial public offering of $159.8 million. The company invests primarily in middle-market companies in the form of first and second lien senior secured loans, senior subordinated debt, and direct equity investments. As of Dec. 31, 2009, Ares had investments in 95 portfolio companies amounting to approximately $2.2 billion. ASHFORD HOSPITALITY: Extends Maturity of $157 Million Loan ---------------------------------------------------------- Ashford Hospitality Trust, Inc. (NYSE: AHT) said Monday it has restructured the $157 million loan with Aareal Bank AG that is secured by the Hilton LaJolla Torrey Pines and the Capital Hilton held in a joint venture with Hilton Worldwide. The modification provides a full extension of the loan maturity to August 2013 without tests along with reduced cash management provisions in exchange for a reduction in the loan balance of $2.5 million at closing and another $2.5 million over the next twelve months. The loan was set to mature in August 2011 and had two one-year extension options. Since January 1, 2009, Ashford has completed $442 million of loan extensions, modifications, and refinancing. The company does not have any non-extendable 2010 loan maturities. In 2011, the company's non-extendable loan maturities include a $6 million loan due in the first quarter and $203 million due at the end of the fourth quarter 2011. Monty Bennett, Chief Executive Officer of Ashford, noted, "We have made very solid progress in addressing loan maturities at a time when hotel lending remains challenging. However, as lodging and capital market conditions improve, we see increasing interest among lenders to consider loans on existing hotel assets backed by high quality owners. Even though we have limited near term maturities, we intend to continue to work constructively with lenders on longer dated loan maturities to seek modifications and extensions." Dallas, Texas-based Ashford Hospitality Trust, Inc. (NYSE: AHT) -- http://www.ahtreit.com/-- is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, second mortgages, mezzanine loans and sale-leaseback transactions. ASIA8 INC: Recurring Losses Prompt Going Concern Doubt ------------------------------------------------------ Asia8, Inc. filed on March 31, 2010, its annual report on Form 10-K for the year ended December 31, 2009. Kostandinos Jerry Georgatos, in Hayward, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted of the Company's recurring losses from operations and net capital deficiency. The Company reported a net loss of $1,373,535 on no revenue for 2009, compared with a net loss of $130,656 on $693,715 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $2,207,863 in assets, $139,028 of debts for a $2,068,835 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e74 Tempe, Ariz.-based Asia8, Inc. maintains the exclusive rights to distribute a wide array of products within the Gulf Region. Products include Unic Hydraulic Cranes that are manufactured in Japan, Atomix Pleasure Boats that are manufactured in China, and "Wing Houses" that are manufactured in China. AZTK, LLC: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: AZTK, LLC 3303 E. Baseline Road, #104 Gilbert, AZ 85234 Bankruptcy Case No.: 10-09367 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtor's Counsel: Donald W. Powell, Esq. Carmichael & Powell, P.C. 7301 N. 16TH ST., #103 PHOENIX, AZ 85020 Tel: (602) 861-0777 Fax: (602) 870-0296 E-mail: d.powell@cplawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Kianoush Kian, M.D., manager. AZIZ MOHAMMED: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Aziz B. Mohammed 36270 Worthing Drive Newark, Ca 94560 Bankruptcy Case No.: 10-43699 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Northern District of California (Oakland) Judge: Randall J. Newsome Debtor's Counsel: Michael N. Sofris, Esq. Law Offices of Michael N. Sofris 468 N Camden Dr. #200 Beverly Hills, CA 90210 Tel: (310) 229-4505 E-mail: michael@sofris.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 creditors together with its petition. The petition was signed by the Debtor. BANK OF AMERICA: Extends CARD Act Protections to Small Business --------------------------------------------------------------- American Bankruptcy Institute reports that Bank of America will give small business credit card customers many of the same protections that consumers now enjoy under stricter regulations, including an agreement not to raise interest rates on existing balances. Based in Charlotte, North Carolina, Bank of America -- http://www.bankofamerica.com/-- is one of the world's largest financial institutions. The Company serves more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 18,700 ATMs and online banking with nearly 29 million active users. Following the acquisition of Merrill Lynch in January 2009, BofA is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world. Bank of America offers support to more than 4 million small business owners. The Company serves clients in more than 150 countries. Bank of America Corporation stock is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange. BofA sought government backing in completing its acquisition of Merrill Lynch. Merrill Lynch & Co. Inc. -- http://www.ml.com/-- is a wealth management, capital markets and advisory companies with offices in 40 countries and territories. * * * BofA has received US$45 billion in government bailout money since the economic collapse in 2008. As reported by the Troubled Company Reporter on March 27, 2009, Moody's Investors Service lowered the senior debt rating of Bank of America Corporation to A2 from A1, the senior subordinated debt rating to A3 from A2, and the junior subordinated debt rating to Baa3 from A2. The preferred stock rating was downgraded to B3 from Baa1. The holding company's short-term rating was affirmed at Prime-1. Bank of America reported a third-quarter 2009 net loss of $1.0 billion. BAY NATIONAL: Going Concern Doubt Raised as Bank Under OCC Action ----------------------------------------------------------------- Bay National Corporation filed on March 31, 2010, its annual report on Form 10-K for the year ended December 31, 2009. Stegman & Company, in Baltimore, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has experienced recurring losses from operations. Further, the bank subsidiary is operating under a Consent Order issued by the Office of Comptroller of the Currency, which requires management to take a number of actions, including, among other things, restoring and maintaining its capital levels at amounts that are in excess of the Company's current capital levels. Without a waiver by the OCC or amendment or modification of the Consent Order, the Bank could be subject to further regulatory enforcement action. The Company reported a net loss of $16.1 million on $5.8 million of net interest income of $5.8 million for 2009, compared with a net loss of $5.1 million on $8.6 million of net interest income for 2008. The Company's balance sheet as of December 31, 2009, showed $290.3 million in assets and $291.3 million of liabilities, for a stockholders' deficit of $992,323. At December 31, 2009, the Company had net loans of $184.9 million and deposits of $281.5 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e72 Lutherville, Md.-based Bay National Corporation was formed on June 3, 1999, to be the bank holding company of Bay National Bank, a federally chartered commercial bank. Bay National Bank serves the Baltimore metropolitan area from its headquarters and Baltimore branch office located in Lutherville, Maryland. Bay National Bank's Salisbury, Maryland branch office serves Maryland's lower Eastern Shore. Bay National Bank also has two residential real estate loan production offices, which are located in its Lutherville headquarters and in its Salisbury branch office. BEAR ISLAND: Has Final $140 Million Financing Approval ------------------------------------------------------ Bear Island Paper Company, L.L.C., received from the bankruptcy court final approval to obtain postpetition secured financing from a syndicate of lenders led by Credit Suisse AG, as administrative agent, and use the cash collateral of existing secured lenders. The DIP lenders have committed to provide up to $140 million to fund the Chapter 11 case. A copy of the credit agreement is available for free at: http://bankrupt.com/misc/BEAR_ISLAND_dipfinancingpact.pdf Jonathan L. Hauser, Esq., at Troutman Sanders LLP, the attorney for the Debtor, relates the DIP facility will mature nine months from the closing date. Amounts outstanding under the postpetition facility will bear, at the Debtor's option: (i) One month LIBOR -- the interest rate at which U.S. dollars are offered for deposit in the London interbank market or (b) 2.0% per annum -- adjusted for statutory reserves, plus 10.0% per annum payable monthly in arrears; or (ii) during the periods that a loan under the postpetition facility is a Base Rate Loan the interest rate will be calculated for any day at a rate per annum equal to the greatest of (a) the Prime Rate in effect on the day, (b) the Federal Funds Effective Rate in effect on the day plus � of 1% and (c) 3.00%. The Debtor will pay the Lenders: a. an arranger fee -- 2.5% of the DIP commitment to Administrative Agent, for the benefit of the arrangers, to be paid upon the entry of the interim orders; b. an initial fee -- 2.5% of the DIP commitment to Administrative Agent, for the ratable benefit of the Lenders, to be paid upon the entry of the interim orders; c. an administrative fee -- $100,000 to Administrative Agent, for the benefit of the Administrative Agent, to be paid on the closing date, plus $25,000 to Administrative Agent, for the benefit of the Administrative Agent, in the event that the maturity date is extended beyond nine months after the closing date, to be paid on the date of the extension, plus $25,000 to Administrative Agent, for the benefit of the Administrative Agent, in the event that the maturity date is extended beyond 12 months after the closing date, to be paid on the date of such extension (and $25,000 for each additional three-month extension thereafter, to be paid on the date of the extension); d. a prepayment Fee -- 4% of the DIP commitment to the Administrative Agent, for the ratable benefit of the Lenders, to be paid upon the earlier of the maturity date (as it may be extended) and the reduction, in whole or in part, of the DIP Commitment; e. a Commitment Fee -- equal to (a) the average of the daily difference of (i) the DIP Commitments minus (ii) the aggregate principal amount of all outstanding DIP Loans times or (b) 2.0% per annum for the period from and including the closing date to the maturity date. The Debtor's obligations of the Lenders, subject to the Carve-Out, will include: (i) allowed joint and several super-priority administrative expense claims having priority over all administrative expenses; (ii) a perfected first priority senior lien on all collateral that is not otherwise subject to valid, perfected and nonavoidable liens as of the Commencement Date; (iii) a perfected second priority junior lien on all collateral that is otherwise subject to (a) valid, perfected and nonavoidable liens as of the Commencement Date or (b) valid liens in existence at the Commencement Date that are perfected subsequent to the Commencement Date; and (iv) a perfected first priority senior priming lien on the existing collateral, subject to valid, perfected and nonavoidable liens in existence on the Commencement Date to which the liens in the existing collateral granted in connection with the existing credit agreements are subject in accordance with the existing credit agreements, to the extent that the liens and security interests are valid, perfected, enforceable and non-avoidable. The DIP lien is subject to a carve-out for U.S. Trustee and Clerk of Court fees; up to $2,800,000 in fees payable to professional employed in the Debtors' case and fees of the committee in pursuing actions challenging the DIP Lenders' lien. Mr. Hauser says that the Debtor will also use the cash collateral to provide additional liquidity. About Bear Island White Birch is the second-largest newsprint producer in North America. As of December 31, 2009, the WB Group held a 12% share of the North American newsprint market and employed roughly 1,300 individuals (the majority of which reside in Canada). Additionally, for the 12 months ended December 31, 2009, the WB Group maintained an annual production capacity of roughly 1.3 million metric tons of newsprint and directory paper, up to 50% of which consists of recycled content, and achieved net sales of roughly $667 million. Bear Island's assets are almost exclusively located in the U.S. Bear Island Paper Company, L.L.C., filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Virginia on February 24, 2010. The company's parent, White Birch Paper Company, filed for bankruptcy protection under Canada's Companies' Creditors Arrangement Act, before the Superior Court for the Province of Quebec, Commercial Division, Judicial District of Montreal, Canada. White Birch and five other affiliates -- F.F. Soucy Limited Partnership; F.F. Soucy, Inc. & Partners, Limited Partnership; Papier Masson Ltee; Stadacona Limited Partnership; and Stadacona General Partner, Inc. -- also sought bankruptcy protection under Chapter 15 of the U.S. Bankruptcy Code. Jonathan L. Hauser, Esq., at Troutman Sanders LLP, in Virginia Beach, Virginia; and Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, serve as counsel to White Birch, as Foreign Representative. Kirkland & Ellis and Troutman Sanders also serve as Chapter 11 counsel to Bear Island. AlixPartnes LLP serves as financial/restructuring advisor to Bear Island, and Lazard Freres & Co., serves as investment banker. Chief Judge Douglas O. Tice, Jr., handles the Chapter 11 and Chapter 15 cases. BERNARD MADOFF: John Malkovich Seeks $2.3 Million From Trustee -------------------------------------------------------------- Karen Gullo at Bloomberg News reports that actor John Malkovich is seeking to recover $2.3 million from an account he had with the securities firm of Bernard Madoff. Irving Picard, the trustee liquidating Mr. Madoff's firm, in August approved a claim for $670,000 for the actor's pension plan and trust, more than $1.5 million short of the value of the securities in Mr. Malkovich's account listed on his November 2008 final statement. Mr. Picard told Mr. Malkovich he wasn't entitled to the full amount because no securities were purchased for his account and the approved claim reflects what he deposited with Mr. Madoff's firm, according to the filing. The actor's lawyers said Mr. Malkovich is owed the full amount on his final statement. "The trustee's determination assumes that Bernard Madoff never earned funds and therefore all gains reported to customers were 'fictitious,'" according to the filing. "This assumption is contrary to fact. There is significant evidence that, at some time, BMIS was at least in part a legitimate business and therefore all or a portion of the gains were not fictitious." About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On December 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert $64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) BERNARD MADOFF: Owes $984,280 in Sales Tax to New York State ------------------------------------------------------------ Tom Topousis, writing for the New York Post, says Bernard Madoff owes the state of New York $984,280 in sales tax by his now- defunct securities firm. According to the Post, Mr. Madoff joined the ranks of New York's 250 top tax deadbeats this month at No. 68 on the list. "But when it comes to collecting from the disgraced financier, the state has to get in line with investors looking for pennies on the dollar out of what the feds have collected from his leftover cash and the sale of his homes and yachts," Mr. Topousis writes. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On December 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert $64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) BIO-KEY INT'L: Inks Employment Deal with CEO DePasquale ------------------------------------------------------- BIO-key International, Inc., disclosed that it entered into an Employment Agreement, effective as of March 25, 2010, with Michael W. DePasquale, the current Chief Executive Officer of the Company. Pursuant to the Agreement, Mr. DePasquale will continue to serve as CEO of the Company until March 24, 2011. The agreement automatically renews for subsequent one-year terms, unless the employment relationship is terminated by either party, or modified in accordance with the terms and conditions of the Agreement. Under the Agreement, Mr. DePasquale will be paid the annual base salary of $250,000, subject to adjustment by the Board or Compensation Committee. In addition to the Base Salary, a "Performance Bonus" may be awarded to Mr. DePasquale on the basis of the Company achieving certain corporate and strategic performance goals, as determined by the Board in its sole discretion. The Company may terminate the Agreement at any time with or without cause. In the event of termination without cause, Mr. DePasquale will continue to be paid his then current base salary for the greater of nine months from the date of such termination or the number of months remaining until the end of the term of the Agreement. There is a Change of Control provision that occurs if Mr. Depasquale is not offered continued employment with the Company or any successor, or within five years following such Change of Control, the Company or any successor terminates the Mr. Depasquale's employment without Cause, then Mr. Depasquale is to be paid his Base Salary and benefits earned but unpaid through the date of termination, and any prorated bonus earned during the then current bonus year, plus two times his then current Base Salary. The Agreement contains standard and customary confidentiality, non-solicitation and "work made for hire" provisions as well as a covenant not to compete which prohibits Mr. DePasquale from doing business with any current or prospective customer of the Company or engaging in a business competitive with that of the Company during the term of his employment and for the one year period thereafter. About BIO-key Wall, N.J.-based BIO-key International, Inc. (OTC BB: BKYI) -- http://www.bio-key.com/-- develops and markets advanced fingerprint identification biometric technology and software solutions. The Company's balance sheet as of December 31, 2009, showed $6.1 million in assets, $2.4 million of debts, $2.6 million of preferred stock, and $1.1 million of stockholders' equity. CCR LLP, in Westborough, Mass., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's substantial net losses in recent years and accumulated deficit at December 31, 2009. BIO-KEY INT'L: Trellus Management Holds 5.20% of Common Stock ------------------------------------------------------------- New York-based Trellus Management Company, LLC, and Adam Usdan disclosed that as of February 26, 2010, they may be deemed to beneficially own 4,015,164 shares or roughly 5.20% of the common stock of BIO-key International, Inc. Trellus disclosed that as of December 31, 2009, they may be deemed to beneficially own 3,700,000 shares or roughly 4.79% of the Company's common stock. About BIO-key Wall, N.J.-based BIO-key International, Inc. (OTC BB: BKYI) -- http://www.bio-key.com/-- develops and markets advanced fingerprint identification biometric technology and software solutions. The Company's balance sheet as of December 31, 2009, showed $6.1 million in assets, $2.4 million of debts, $2.6 million of preferred stock, and $1.1 million of stockholders' equity. CCR LLP, in Westborough, Mass., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's substantial net losses in recent years and accumulated deficit at December 31, 2009. BIV RETAIL: Foreclosure Sale to Close by Month's End ---------------------------------------------------- Jacqueline Palank at Dow Jones' Daily Bankruptcy Review reports that, according to papers filed by The Hollywood Motion Picture and Television Museum with the Bankruptcy Court in Los Angeles, Regions Bank in January 2010 agreed to sell Belle Island Village to Tennessee Investment Partners LLC for $19.5 million in a deal slated to close by March 31. According to Ms. Palank, the buyer is partially owned by Tennessee-based real estate investment firm Matisse Capital LLC and by Belle Island Village's original developer. Belle Island Village was a proposed resort destination in Pigeon Forge, Tennessee. It was supposed to house Debbie Reynolds' The Hollywood Motion Picture and Television Museum. Construction lender Regions Bank foreclosed on the unfinished development in 2009. Belle Island Village's developer, BIV Retail, LLC, filed for Chapter 7 bankruptcy protection on March 25, 2009 (Bankr. E.D. Tenn. Case No. 09-31579). BLACK CROW: Court Denies GE Capital's Case Dismissal Request ------------------------------------------------------------ Radio Business Report reports the U.S. Bankruptcy Court in Jacksonville, Florida, denied GE Capital's request to dismiss the Chapter 11 case of Black Crow Media Group. According the report, GE Capital wanted the case dropped so that it could seek appointment of a receiver to sell the company's radio stations. GE Capital argued that the Company's financial picture was worsening and that it would not be possible for the Company to put together a successful plan to emerge from Chapter 11 as a viable company. RBR relates that the Court, however, found that the Company's operations have stabilized, current management is competent, and that reasonable steps have been taken to reduce the Company's cost structure, according to the report. About Black Crow Media Daytona Beach, Florida-based Black Crow Media Group, LLC, owns and operates 17 FM and 5 AM radio stations in Daytona Beach, Live Oak, Valdosta, Huntsville, Alabama, and Jackson, Tennessee. The Company filed for Chapter 11 bankruptcy protection on January 11, 2010 (Bankr. M.D. Fla. Case No. 10-00172). The Company's affiliates -- Black Crow Media, LLC, et al. -- also filed separate Chapter 11 petitions. Mariane L. Dorris, Esq., and R Scott Shuker, Esq., at Latham Shuker Eden & Beaudine LLP, assist 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. BLUERIDGE VENTURES: Case Summary & 3 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Blueridge Venture, Inc. P.O. Box 8035 Gallatin, TN 37066 Bankruptcy Case No.: 10-03568 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Middle District Of Tennessee (Nashville) Judge: George C Paine II Debtor's Counsel: William L. Norton, III, Esq. Bradley Arant Boult Cummings LLP PO BOX 340025 Nashville, Tn 37203 615 252-2397 Fax: 615-252-6397 E-mail: bnorton@babc.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001, to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at: http://bankrupt.com/misc/tnmb10-03568.pdf The petition was signed by Leon Moore, President BRACOL HOLDING: S&P Affirms 'B-' Corporate Credit Rating -------------------------------------------------------- S&P affirms Bracol Holding Ltda.'s corporate credit rating at 'B-', and removes it from Watch. S&P also withdrew its ratings at company's request. BUCKINGHAM FINANCIAL: Case Converted to Chapter 7 Liquidation ------------------------------------------------------------- The Hon. Brenda T. Rhoades of the U.S. Bankruptcy Court for the Eastern District of Texas converted Buckingham Financial, LLC's Chapter 11 bankruptcy case to one under Chapter 7. On February 9, 2010, William T. Neary, the U.S. Trustee for Region 6, asked the Court to (a) appoint a Chapter 11 trustee, (b) dismiss the case, (c) convert the case to Chapter 7, or (d) impose plan filing and confirmation deadlines. The U.S. Trustee said certain circumstances of the case call for evaluation by a neutral third party to determine the best course for the Debtor's creditors. The U.S. Trustee said that Christine Brauss, the sole owner, is not competent to effectively manage the affairs of the Debtor and may be conflicted with the interests of creditors by her relation or exposure to the Debtor's affiliates. Plano, Texas-based Buckingham Financial, LLC, operated as a real estate business. The Company filed for Chapter 11 bankruptcy protection on December 6, 2009 (Bankr. E.D. Tex. Case No. 09- 43863). John P. Lewis, Jr., Esq., who has an office in Dallas, Texas, 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. CABERNET HOLDINGS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Cabernet Holdings, LLC 301 Vineyards Crossing Lexington, NC 27292 11 Union St. South, Suite 300 Concord, NC 28025 Bankruptcy Case No.: 10-50602 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Middle District of North Carolina (Winston-Salem) Debtor's Counsel: Brian P. Hayes, Esq. Ferguson, Scarbrough and Hayes, PA PO Box 444 Concord, NC 28026-0444 Tel: (704) 788-3211 Fax: (704) 795-0293 E-mail: bphafd@fspa.net 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/ncmb10-50602.pdf The petition was signed by Leonard B. Sossamon, member-manager. CAPMARK FINANCIAL: Nears Mexican Asset Sale for $18.25MM -------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Capmark Financial Group Inc. is seeking authorization to sell a portfolio of non- performing loans on Mexican properties for $18.25 million. According to the report, Capmark decided in late 2007 to withdraw from the market of acquiring non-performing loans in Mexico. The Company was authorized in March to sell its real-estate equity investment advisory group for $19.2 million. Capmark had three prior sales that generated more than $1 billion cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. The military housing business went for $9 million to an affiliate of Jefferies Group Inc. The Japanese business was also sold. 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) CCS MEDICAL: GE Capital Provides $35 Million Credit Facility ------------------------------------------------------------ GE Capital, Healthcare Financial Services has provided a $35 million revolving line of credit to CCS Medical, Inc. The loan will be used to refinance existing debt, provide working capital and support growth initiatives following CCS Medical's exit from Chapter 11 bankruptcy protection on March 31, 2010. "GE Capital, Healthcare Financial Services has been a supportive partner throughout the restructuring process, providing industry knowledge and expertise that was critical to the successful execution of our restructuring plan," said Steve Saft, Chief Administrative Officer and Chief Financial Officer, CCS Medical, Inc. "This new facility from GE will help us to invest in the business and compete successfully in our industry." "We are pleased to play a part in supporting CCS Medical as it works to build its position in the medical supply market," said Robert McCarrick, senior managing director for GE Capital, Healthcare Financial Services' corporate finance group. "GE's healthcare industry expertise and financing experience help our customers meet their overall business objectives." About GE Capital With over $17 billion invested, GE Capital, Healthcare Financial Services is a premier provider of capital and services to the healthcare industry, with investments in more than 30 sub-sectors including senior housing, hospitals, pharmaceuticals, and medical devices. The company's team of professionals provides deep industry expertise to create business and financial solutions tailored to meet the individual needs of our customers. GE Capital offers consumers and businesses around the globe an array of financial products and services. About CCS Medical Founded in 1994, CCS Medical has become a leading provider of medical supplies. CCS Medical assists patients that need diabetes test strips, insulin pumps, urological supplies, ostomy supplies, advanced wound care dressings and prescription drugs. CCS Medical specializes in providing a convenient way for patients to receive supplies for their chronic illnesses in a manner that saves them time and money. As a leader in the medical supply community, CCS Medical has a commitment to the mission statement of being the leading provider of products and services to the home chronic care marketplace. * * * As reported in the Troubled Company Reporter on April 1, 2010, CCS Medical, Inc., has completed its financial restructuring and has emerged from protection under Chapter 11 of the United States Bankruptcy Code. Through its restructuring, CCS Medical reduced its outstanding debt to approximately $200 million from approximately $522 million. In addition, the Company's First Lien Lenders have exchanged their claims for 100% of the new equity in the Company and certain new debt. The majority of the Company's trade vendors will be paid in full. CEMEX ESPANA: Fitch Assigns 'B+/RR3' Rating on Senior Notes ----------------------------------------------------------- Fitch Ratings has assigned ratings of 'B+/RR3' to the proposed senior secured notes to be issued by CEMEX Espana. These notes consist of a Euro-denominated note that matures in 2017 and is callable after four years, and a U.S. dollar-denominated note maturing in 2020, which is callable after five years. These notes will have the same security package as the bank debt subject to the Financing Agreement as well as other capital markets debt. The notes are unconditionally guaranteed by CEMEX, S.A.B. de C.V. and its subsidiaries CEMEX Mexico, S.A. de C.V. and New Sunward Holding B.V. and are being offered to holders of Cemex's C-5, C-8, C-10 and C-10 Euro perpetual bonds at exchange rates of between 68.75% and 72.38% of the face value of the perpetual notes. The issuance of the proposed 2017 and 2020 senior notes is contingent upon the acceptance of the voluntary exchange offering by more than 50% of the holders of a given series of the perpetual bonds. It is expected that a material amount of the US$3.045 billion of perpetual bonds will not be tendered and will continue to be serviced in accordance with the original terms and conditions. Any non-tendered callable perpetual notes will continue to be rated 'B+/RR3', as this exchange offering does not meet Fitch's criteria for a distressed debt exchange for these two reasons. First, to be considered a distressed debt exchange by Fitch, the tender must be sufficiently broad or relevant with a goal of staving off bankruptcy or a liquidity crunch by reducing interest and debt service to the point where the company's cash flow can service debt. This exchange offering only relates to 16% of CEMEX's financial debt and failure to complete would not lead to a payment default. Second, a distressed debt exchange also needs to be coercive or de facto necessary even if technically voluntary. In Fitch's judgment, this exchange does not meet the coercive threshold, as the company has the willingness and ability to continue to service any non-tendered perpetual notes consistent with the original terms. Investors who exchange perpetual notes for the 2017 or 2020 notes will likely do so to obtain a fixed maturity date and higher trading liquidity. The 'B' IDR ratings of CEMEX and its subsidiary CEMEX Espana take into consideration CEMEX's strong global business position as an integrated cement player and its ability to continue to generate free cash flow during the sharp contraction in its key markets. The company's credit ratings continue to reflect the support the company receives from its key banks. Balanced against these credit strengths are the high level of leverage at CEMEX and the below-average free cash flow prospects for three of its key markets in the near term. CEMEX generated US$2.9 billion of EBITDAR during 2009, a decline from US$4.6 billion of EBITDAR during 2008. As of Dec. 31, 2009, the company had US$21.1 billion of total lease adjusted debt and US$1.1 billion of cash and marketable securities, resulting in a net debt/EBITDAR ratio of 6.9 times (x). The company's lease adjusted net debt declined by approximately US$2.1 billion during 2009 due to a US$1.8 billion equity issuance during September and the sale of the company's Australian assets for US$1.7 billion during October. During 2010, CEMEX's debt amortization schedule is manageable with US$594 million of total debt maturities. In these years, the company's debt service grows, as it will face debt amortizations of US$1.378 billion (2011), US$1.456 billion (2012), US$2.456 billion (2013) and US$8.316 billion (2014). CEMEX raised US$500 million during January 2010 through the reopening of its notes due in 2016 and plans to repay US$411 million of the 2012 bank debt with proceeds from this issuance. According to the Financing Agreement signed with creditors during August 2009, CEMEX has to meet a consolidated finance leverage ratio of 7.75x as of June 30, 2010, declining semi-annually until reaching 3.5x for the period ended Dec. 31, 2013. The recent issuance of US$715 million of optionally convertible debentures, which are excluded from the leverage calculation ratio, should help the company remain below this ratio during 2010, as would a reduction of principal associated with this exchange offering. The outlook for growth of CEMEX's operating cash flow during 2010 remains below average, as it depends primarily upon a rebound in demand in three of the company's key markets - the United States, Spain and the U.K. Continued weakness in these markets or a sudden downturn in the company's performance in Mexico would pressure the company's leverage covenant during the second half of 2010 and throughout 2011. Given the company's successful negotiations of debt agreements with its banks during 2009 and 2010, Fitch would expect CEMEX to renegotiate the financial covenants of this agreement should the company's EBITDAR decline from current levels. Fitch currently rates CEMEX and its subsidiaries: CEMEX -- Foreign currency Issuer Default Rating 'B'; -- Local currency IDR 'B'; -- Senior debt obligations 'B+/RR3'; -- Long-term national scale rating 'BB-(mex)'; -- Certificados Bursatiles program 'BB-(mex)'; -- Programa Dual Revolvente de Certificados Bursatiles program 'BB-(mex)'; -- Debt issued through the Certificados Bursatiles program 'BB- (mex)'; -- Short-term national scale rating 'B(mex)'; -- Debt issued through the Programa Dual Revolvente de Certificados Bursatiles program 'B(mex)'. CEMEX Espana S.A. (CEMEX Espana) -- IDR 'B'; -- Senior debt obligations 'B+/RR3'. Rinker Materials Corporation -- US$150 million senior unsecured notes due 2025 'B+/RR3'. The Rating Outlook is Stable. CENTRAL METAL: Gets Interim Nod to Use Cash Collateral ------------------------------------------------------ Central Metal, Inc., obtained authorization from the U.S. Bankruptcy Court for the Central District of California to use cash collateral on an interim basis. As of the Petition Date, the Debtor owes Center Bank $16.3 million and KEB LA Financial Corp. $900,000. Monica Y. Kim and Juliet Y. Oh at Levene, Neale, Bender, Rankin & Brill L.L.P., the attorneys for the Debtor, explained that the Debtor needs the money to fund its Chapter 11 case, purchase additional scrap metal to replenish sold inventory, and to pay suppliers and other parties. The Court allowed the Debtor to use cash collateral, in accordance with the Debtor's operating budget for the period from the week ending March 6, 2010, through the week ending May 8, 2010. In exchange for using the cash collateral, the Debtor will grant Center Bank and KEB LA replacement liens on, and security interests in, the Debtor's assets, including postpetition cash collateral. A further hearing regarding the Debtor's continued authority to use cash collateral will be held on April 27, 2010, at 11:00 a.m. The Debtor will file with the Court its motion and any other papers to support the Debtor's continued authority to use cash collateral by April 12, 2010. Huntington Park, California-based Central Metal, Inc., is a fully integrated scrap metal processing company that purchases, processes and sells ferrous and non-ferrous metals domestically and internationally. The Company is one of the largest processing companies on the West Coast, has one of the largest land sites and processing capacities, and is fully diversified in its business portfolio that entails dynamic trading relationships with renowned metal manufacturers around the world. The Company filed for Chapter 11 bankruptcy protection on January 8, 2010 (Bankr. C.D. Calif. Case No. 10-10642). Juliet Y. Oh, Esq., who has an office in Los Angeles, California, 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. CF INDUSTRIES: S&P Assigns Corporate Credit Rating at 'BB+' ----------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'BB+' corporate credit rating to CF Industries Inc. The outlook is stable. At the same time, S&P assigned its 'BBB' issue-level rating and '1' recovery rating to the company's proposed $300 million first- lien revolving credit facility and proposed $1.2 billion first- lien term loan, indicating very high recovery (90%-100%) in the event of a payment default. S&P also assigned a 'BB+' issue level rating and '3' recovery rating to the company's proposed $1.6 billion senior notes, indicating modest recovery (50%-70%) in the event of a payment default. All ratings are based on preliminary terms and conditions. Proceeds from the $1.2 billion term loan along with proceeds from an unrated $800 million first-lien term loan, and a $1.75 billion bridge loan will be utilized to fund the proposed acquisition of Terra Industries Inc. The revolving credit facility is expected to be undrawn at closing. In a subsequent but related financing action, the company proposes to issue $1.6 billion in senior notes and $1 billion in common equity. Proceeds will be utilized to pay down the bridge loan and the $800 million term loan. CF has announced it expects to complete the acquisition and its financing (including the bridge loan paydown) in April 2010. "The ratings on CF Industries reflect its fair business risk profile including S&P's expectations that the Terra acquisition will result in a stronger market position, improved operating efficiency, and the diversification of assets," said Standard & Poor's credit analyst Paul Kurias. The ratings are based on S&P's assumption that CF will successfully complete the proposed acquisition of Terra Industries, and all aspects of the related financing including the paydown of the bridge loan as scheduled. If he proposed financing plan is not completed, including the placement of $1 billion of new common equity, S&P could reassess the implications for the ratings. Standard & Poor's also revised the CreditWatch implications on Sioux City, Iowa-based Terra Industries Inc. and Terra Capital Inc., including its 'BB' corporate credit rating, to positive from developing. This revision reflects the completion of S&P's review of the credit implications of the proposed merger. If the financings are completed as proposed, S&P would expect to withdraw the issue ratings on Terra Capital's outstanding notes. CIT GROUP: Ex-CEO Jeff Peek's Total Pay Down 76% in 2009 -------------------------------------------------------- The Associated Press' Stephen Bernard reports that CIT Group Inc.'s former CEO Jeffrey Peek received 76% less in total compensation in 2009. Mr. Peek, who retired on Jan. 15, received a compensation package worth $1 million in 2009, compared with $4.2 million in 2008. The drop in compensation would have been even larger had it not been for Mr. Peek receiving pay deferred from 2007 and 2008, AP relates. According to AP, Mr. Peek received a salary of $803,077 in 2009, which includes $160,000 of deferred salary from 2008 and $200,000 from 2007. His salary was $800,000 in 2008. Mr. Peek received no bonus either year, AP adds. According to AP, Mr. Peek didn't receive any stock option awards in 2009, after receiving options in 2008 that were worth $3.2 million at the time of the award. AP also relates that Mr. Peek's perks and benefits accounted for $229,314 in compensation in 2009, down 10% from the previous year. About CIT Group CIT Group Inc. (NYSE: CIT) -- http://www.cit.com/-- is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and headquartered in New York City, CIT is a member of the Fortune 500. CIT Group Inc. and affiliate CIT Group Funding Company of Delaware LLC announced a Chapter 11 filing on November 1, 2009 (Bankr. S.D.N.Y. Case No. 09-16565). Evercore Partners, Morgan Stanley and FTI Consulting are the Company's financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP is legal counsel in connection with the restructuring plan. Sullivan & Cromwell is legal advisor to CIT's Board of Directors. CIT Group on November 1 announced that, with the overwhelming support of its debtholders, the Board of Directors voted to proceed with the prepackaged plan of reorganization for CIT Group Inc. and a subsidiary that will restructure the Company's debt and streamline its capital structure. None of CIT's operating subsidiaries, including CIT Bank, a Utah state bank, were included in the filings. On December 8, 2009, the Court confirmed the Debtors' prepackaged plan. On December 11, CIT emerged from bankruptcy. CMGT INC: Mayer Brown Off Hook For $17M Malpractice Claim --------------------------------------------------------- Mayer Brown LLP has prevailed in a bankruptcy trustee's $17 million malpractice lawsuit alleging the firm should have challenged a lawsuit filed by CMGT Inc.'s former financial adviser, Bankruptcy Law360 reports. According to the report, Judge Virginia M. Kendall of the U.S. District Court for the Northern District of Illinois granted Mayer Brown's motion for summary judgment on CMGT trustee David Grochocinski's claims. COBALIS CORP: Board Commits to Return to Fully Reporting Status --------------------------------------------------------------- In anticipation of a positive confirmation of Cobalis Corporations' plan for emergence from its bankruptcy, the Board of Directors of the Company has committed to return to fully reporting status as quickly as possible, to increase investor confidence and in preparation for having the Company's stock once again traded on the NASDAQ OTC BB. The Company is pleased to announce that it has retained the services of Michigan-based accounting firm Silberstein Ungar, PLLC, a nationally recognized public accounting and audit firm to assist in preparing the Company's return to fully reporting status. In addition, the Company has re-engaged former Chief Financial Officer Kevin Pickard as Interim CFO to assist in the Company's financial management. Chas Radovich, Cobalis CEO, said: "Cobalis has always been committed to providing the investment marketplace and institutional investors with accurate and timely information about the Company's financial status, future plans, and investment requirements, as well as to report major news and events on a timely basis. We believe that a return to fully reporting status and trading on the NASDAQ OTC BB is an urgent requirement and we are committed to moving quickly to achieve this milestone as we move forward to bring PreHistin to market nationally and internationally. The Company appreciates the patience its shareholders have shown during the recent period, and we are optimistic that good corporate governance, transparency of disclosures, the addition of highly experienced management and marketing professionals, and the timely release of news and information will result in a continually higher level of investor confidence." About Cobalis Corp Cobalis Corp. (OTC:CLSC) is an over the counter pharmaceutical and nutraceutical company. Its flagship product, PreHistin(R) is designed to prevent the primary causes of airborne allergies. PreHistin(R), "The World's FIRST Pre-Histamine"(R) is the only Phase III clinically tested sublingual product fully patented for long term and daily use without a prescription to help relieve allergy sufferers from both indoor and outdoor allergens. PreHistin(R) has shown in previous clinical studies to modulate the body's level of immunoglobulin E (IgE), thus reducing the overproduction of histamines, the primary cause of airborne allergy symptoms. Studies have shown that the active ingredient in PreHistin(R), an FDA safety approved 3.3 mg Cyanocobalamin (Vitamin B12) mega-dose sub-lingual lozenge has essentially no risks or adverse side effects to the general population including sedation and drowsiness found in many allergy medications currently available. Cobalis Corp. put itself in October 2007 (Bankr. C.D. Calif. Case No. 07-12347) in response to an involuntary liquidating Chapter 7 petition filed in August by Y.A. Global Investments LP, the holder of $3 million in secured convertible debentures. In August 2009, Cobalis Corporation filed a "five year" reorganization plan. CONNECTICUT AVENUE: Pushes to Sell Days Hotel to Another Buyer -------------------------------------------------------------- Laura Oleniacz at Sun Journal reports that Days Hotel owned by Connecticut Avenue Partners may be up for auction again. According to the report, the sale to Georgia-based developer Sanmukh Patel who made a winning bid at $1.26 million at last year's auction has not been finalized. The Debtor is asking the bankruptcy court to cancel the deal to allow for another sale of the property because the buyer has not offered a closing date due to financing problems. Based in New Bern, North Carolina, Connecticut Avenue Partners LLC filed for Chapter 11 protection on December 18, 2007 (Bankr. E.D. N.C. Case No. 07-04806). Trawick H Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., represents the Debtor. The Debtor listed both assets and debts of between $1 million and $10 million. D & M BARTON: Case Summary & 2 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: D & M Barton Limited Partnership 206 Fair Street Laconia, NH 03246 Bankruptcy Case No.: 10-11474 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court District of New Hampshire Live Database (Manchester) Judge: J. Michael Deasy Debtor's Counsel: William S. Gannon, Esq. William S. Gannon PLLC 889 Elm Street, 4th Floor Manchester, NH 03101 Tel: (603) 621-0833 Fax: (603) 621-0830 E-mail: bgannon@gannonlawfirm.com 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/nhb10-11474.pdf The petition was signed by Dwight D. Barton, general partner. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Dwight David Barton 09-12564 7/10/09 DAIS ANALYTIC: Cross Fernandez Raises Going Concern Doubt --------------------------------------------------------- Dais Analytic Corporation filed on March 30, 2010, its annual report on Form 10-K for the year ended December 31, 2009. Cross, Fernandez & Riley LLP, in Tampa, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses since inception and has a capital deficit and stockholders' deficit of $2,265,370 and $32,162,151 at December 31, 2009. The Company reported a net loss of $3,385,382 on $1,531,215 of revenue for 2009, compared with a net loss of $5,979,446 on $1,015,433 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $1,620,746 in assets and $4,299,685 of debts, for a stockholders' deficit of $2,678,939. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e7b Odessa, Fla.-based Dais Analytic Corporation is a nano-structure polymer technology materials company which has developed and is commercializing applications using its materials. DAVID WEBB: Plan Exclusivity Extended Until May 4 ------------------------------------------------- Michell Graff at National Jeweler reports that the U.S. Bankruptcy Court for the Southern District of New York gave David Webb Inc. until May 4, 2010, to file plan of reorganization and July 5, 2010, to solicit acceptances of that plan. New York-based David Webb Inc. is a 61-year-old Madison Avenue- based jeweler owned by the Silberstein Family Partnership. The Company filed for Chapter 11 protection on June 23, 2009 (Bankr. S.D.N.Y. Case No. 09-13997). The Debtor selected Alter Goldman & Brescia LLP as its bankruptcy counsel. The Debtor posted assets between $10 million and $50 million, and debts between $1 million and $10 million. DETROIT, MICHIGAN: Research Group Report Examines Fiscal Condition ------------------------------------------------------------------ Citizens Research Council of Michigan, a nonprofit public policy research group, on April 5 released a report examining the fiscal condition of the City of Detroit. The Detroit News says the report was ordered at the behest and with some grant funds from the Business Leaders for Michigan. According to the report, the "Great Recession" that began in December 2007 has exacerbated the effects of population loss, poverty, and disinvestment on the City of Detroit. The tax base, already stressed, has deteriorated significantly, as the number of businesses and jobs has declined, unemployment has increased, and population has dwindled. The recently published Comprehensive Annual Financial Report for Fiscal Year 2007-08 (FY2008) indicates that the city's general fund deficit increased from $155.6 million at the end of FY 2007 to $219.2 million at the end of FY 2008. No CAFR is available for FY2009, but city officials budgeted a $280 million prior years accumulated deficit for FY2010, and they estimate the current year general fund operating deficit to be in the range of $100 million. The Crisis Turnaround Team appointed by Mayor Bing to assess city operations and make recommendations estimated that, absent major changes, the city's average annual (structural) deficit for Fiscal Years 2010 through 2112 would be $260 million. The current City of Detroit budget was balanced by including $275 million in revenues from the sale of future city revenues from the Detroit-Windsor Tunnel, Municipal Parking Department, and Public Lighting Department. It is highly unlikely that these budgeted revenues will materialize. Detroit imposes a high tax burden on residents, property owners, and those who work in the city, but revenues from municipal income, property, utility users' excise, and casino wagering taxes will fall significantly below the amounts included in the budget. Further, reductions in state revenue sharing will exceed the reductions budgeted. It is unlikely that state financial resources will be made available to address the city's crisis, and no federal assistance has been, or is likely to be, made available for general operations. "The city government will have to shrink dramatically to reflect the reduced tax base. Whether this can be accomplished by the elected mayor and City Council, or an appointed emergency financial manager, or under Chapter 9 of federal bankruptcy law, remains to be seen," according to Bettie Buss, CRC Senior Research Associate. A full-text copy of the report is available at no charge at http://www.crcmich.org/PUBLICAT/2010s/2010/rpt361.pdf DJA, CORP: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: DJA, Corp dba DBA Trevi Entertainment Center 32250 Mission Trail Lake Elsinore, CA 92530 Bankruptcy Case No.: 10-19732 Chapter 11 Petition Date: April 1,2010 Court: U.S. Bankruptcy Court Central District Of California (Riverside) Judge: Meredith A. Jury Debtor's Counsel: Robert B Rosenstein, Esq. Rosenstein & Hitzeman 28600 Mercedes St Ste 100 Temecula, CA 92590 Tel: (951) 296-3888 Fax: (951) 296-3889 E-mail: robert@rosenhitz.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb0-19732.pdf The petition was signed by Michel Knight, president. DICIRCOLO FAMILY: Case Summary & 4 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: DiCircolo Family Trust, Ernest Mazzone, Trustee 3 Rue Allard Way Henderson, NV 89011 Bankruptcy Case No.: 10-15712 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Pro Se Scheduled Assets: $2,005,000 Scheduled Debts: $1,253,525 A list of the Company's 4 largest unsecured creditors is available for free at http://bankrupt.com/misc/nvb10-15712.pdf The petition was signed by Ernest Mazzone, trustee. DON WILLIS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Joint Debtors: Don Willis Sharon M Willis 3800 Juliette Circle Corona, CA 92881 Bankruptcy Case No.: 10-19729 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Central District Of California (Riverside) Debtor's Counsel: Gerald Wolfe, Esq. 19600 Fairchild Rd Ste 295 Irvine, CA 92656 Tel: (949) 257-0961 Fax: (949) 608-8930 E-mail: gerald@gwesq.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtors say that assets total $794,400 while debts total $1,461,178. A copy of the Joint Debtors' list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-19729.pdf The petition was signed by the Joint Debtors. DOWNEY REGIONAL: Signs Letter of Intent With Presbyterian --------------------------------------------------------- Presbyterian Intercommunity Hospital and Downey Regional Medical Center had each signed a non-binding letter of intent with plans to execute a definitive agreement calling for PIH's acquisition of DRMC. This will bring together two not-for-profit hospitals both with long standing histories of being dedicated to providing quality care to the communities they serve. The nonbinding letter of intent would allow for the continuation of a nonprofit hospital serving the greater Downey community. Under the proposed structure, PIH would form a nonprofit entity to acquire the assets of DRMC under a plan of reorganization. Consideration for the asset purchase would be the promise of the nonprofit hospital to make payments to general unsecured creditors according to a proposed schedule. The outstanding bonds of DRMC could either be guaranteed by PIH or an appropriate affiliate, or possibly be assumed into the PIH Obligated Group. "Now that the letter of intent is signed, PIH and DRMC can begin the process of creating an integrated regional healthcare system with many benefits for residents of the greater Southeast Los Angeles County region serviced by the two hospitals," said James R. West, President and Chief Executive Officer of PIH. "By working with the management and physicians at DRMC, the two hospitals will be able to create a comprehensive network of healthcare services that will be unsurpassed in the area." "We are hopeful that we can quickly come to terms under a definitive asset purchase agreement with PIH and allow for the new nonprofit Downey-based hospital to commence operations as early as this summer, as previously planned," stated Rob Fuller, Executive Vice President & COO of Downey Regional. "While this letter of intent is nonbinding and preliminary in nature, there is a natural geographic and operational affinity between the two organizations that should allow for the Downey-based nonprofit hospital to enjoy successful hospital operations from the outset once the asset purchase agreement is concluded," said Fuller. DRMC filed for protection under Chapter 11 of the U.S. Bankruptcy Code on September 14, 2009, citing financial systems breakdowns and poor contracts as its reasons for filing. DRMC has operated at normal capacity with its full range of services, including its very busy emergency room, throughout the proceedings, and continues to provide excellent care to its patients. On March 15, 2010, DRMC announced that discussions with the Daughters of Charity Health System had ended. "Our overall plan in these discussions is to execute a strategic transaction that allows for a Downey-based nonprofit hospital to continue providing superior healthcare services to patients in the community," said Kenneth Strople, DRMC's President and Chief Executive Officer. "I want to reassure our patients, our employees, the physicians, and the community that DRMC and its services will continue to be open as we move through these discussions," added Strople. About Presbyterian Intercommunity Presbyterian Intercommunity Hospital is a 400-plus bed acute care, non-profit hospital which was founded in 1959 with the community's trust and support -- values retained today by maintaining the highest standards in medical services, in turn making us the area's acknowledged leading healthcare center. Through commitment to outstanding patient care, respect and compassion for all, responsiveness, integrity, collaboration, innovation, and stewardship, the PIH team is devoted to serving the needs of its community. PIH's healthcare team is comprised of a stellar clinical staff of almost 600 board-certified physicians representing a broad range of medical specialties, highly qualified nurses, and other exemplary staff. About Downey Regional Downey Regional Medical Center is a 199-bed, not-for-profit regional hospital and medical center that delivers healthcare services to Southeast Los Angeles County. Downey Regional Medical Center features sophisticated facilities and equipment complemented by highly trained medical, nursing, technical and support staff. Downey Regional provides care to more than 160,000 patients each and every year. As it enters its 90th year of continuing operations, DRMC looks forward to continuing its service to the local community. EAU TECHNOLOGIES: Posts $3,425,708 Net Loss for 2009 ---------------------------------------------------- Eau Technologies, Inc., filed its annual report on Form 10-K, showing a net loss of $3,425,708 on $724,510 of revenue for 2009, compared with a net loss of $6,727,214 on $437,109 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $3,407,770 in assets and $14,229,820 of debts, for a stockholders' deficit of $10,822,050. HJ & Associates, LLP, in Salt Lake City, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has a working capital deficit and a stockholders' deficit. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e7d Kennesaw, Ga.-based Eau Technologies, Inc., is in the business of developing, manufacturing and marketing equipment that uses water electrolysis to create non-toxic cleaning and disinfecting fluids as well as dairy drinking water. EL POLLO: S&P Assigns Unsolicited 'B-' Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services assigned an unsolicited 'B-' corporate credit rating to El Pollo Loco Inc., and assigned these issue-level ratings: * A 'B+' issue level rating and a '1' recovery rating to the company's senior secured revolving credit facility. The recovery ratings indicates S&P's expectation of very high (90%- 100%) recovery of principal in the event of default, and the issue is rated is two notches above the corporate credit rating. * A 'B' issue level rating and '2' recovery rating to the company's $132.5 million senior secured notes that mature in 2012. The recovery rating indicates S&P's expectation of substantial (70%-90%) recovery of principal in the event of default, and the notes are rated one notch above the corporate credit rating. * A 'CCC' issue level rating and a '6' recovery rating to the company's senior unsecured notes due in 2013 with $106.3 million outstanding. The recovery rating indicates S&P's expectation of negligible (0%-10%) recovery of principal in the event of default, and the unsecured notes are rated two notches below the corporate credit rating. The rating outlook is negative. "The ratings on El Pollo Loco Inc. reflect the company's highly leveraged capital structure, resulting in very weak cash-flow protection and S&P's belief that poor economic conditions may still pressure sales," said Standard & Poor's credit analyst Charles Pinson-Rose. Operating performance in 2009 was rather weak and EBITDA was down about 20% for the year, primarily a result of an 8.2% same-store sales decline and the corresponding margin contraction from cost deleveraging. S&P believes weak sales are a result of intense value promotions in the quick service restaurant industry, and very high unemployment in Southern California, where the majority of the company's restaurants are located. S&P currently expects moderate declines in same-store sales during the first half of 2010 and flat to slightly positive same-store sales in the second half of the year. S&P also expects the company attempt to manage administrative costs, which will trend lower. Based on this, S&P expects EBITDA in 2010 to be maintained or be slightly lower than 2009 levels, and be in the mid-$30 million range. However, given potentially high sustained unemployment, S&P can envision same-store sales being negative in the mid-single-digit are for the year, driving EBITDA to the low-$30 million area. ELEPHANT TALK: Posts $17.3 Million Net Loss for 2009 ---------------------------------------------------- Elephant Talk Communications, Inc. filed its annual report on Form 10-K, showing a net loss of $17.3 million on $43.7 million of revenue for 2009, compared with a net loss of $16.0 million on $44.4 million of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $24.4 million in assets and $30.5 million of debts, for a stockholders' deficit of $6.1 million. BDO Seidman, LLP expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss of $17.4 million, used cash in operations of $5.4 million and had an accumulated deficit of $62.3 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e71 Based in Schiphol, The Netherlands, Elephant Talk Communications, Inc. is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk installs its operating software at the network operating centers of mobile carrier and receives a fee per month per cell phone subscriber on the network. Currently the subscribers are wholesale customers of Vizzavi (a subsidiary of the Vodafone group) in Spain and T-Mobile in the Netherlands. The Company also operates landline telephony services in nine European countries and Bahrain. EMPIRE CENTER: Interest Holders to Fund Payment of Unsecureds ------------------------------------------------------------- The Hon. Sarah S. Curley of the U.S. Bankruptcy Court for the District of Arizona will consider approval of the disclosure statement explaining Empire Center at Coldwater Springs, LLC's Chapter 11 plan on May 20, 2010, at 10:00 a.m. The hearing will be held at the U.S. Bankruptcy Court, 230 North First Avenue, 7th Floor, Courtroom No. 701, Phoenix, Arizona. Objections, if any, are due five business days prior to the hearing date. The Debtors will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, the Plan will be implemented by the retention of its existing management. The implementation will also include the management and disbursement of the funds infused by the interest holders. Under the Plan, the Debtor proposes to pay the Priority Claims in full. It also proposes to give Secured Creditors with an interest in the real property of a commercial property located in Maricopa County, Arizona, the opportunity to realize a full return on the value of their Allowed Secured Claims. In addition, the Plan will result in the unsecured creditors -- under Class 3 -- receiving a substantial payout. The claims in Class 3 aggregating will share pro rata the sum of $50,000. The interest holders will arrange for the infusion of the $50,000 into the reserve account for the payment of Class 3. The Class 4 interest holders in the Debtor will retain their interests in consideration of the new value they contribute to the Plan funding. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/EmpireCenter_DS.pdf The Debtor is represented by: Arturo A. Thompson, Esq. E-mail: athompson@polsinelli.com John J. Hebert, Esq. E-mail: jhebert@polsinelli.com Polsinelli Shughart PC Security Title Plaza 3636 North Central Avenue, Suite 1200 Phoenix, AZ 85012 Tel: (602) 650-2000 Fax: (602) 264-7033 About Empire Center at Coldwater Springs Scottsdale, Arizona-based Empire Center at Coldwater Springs, LLC, filed for Chapter 11 bankruptcy protection on December 18, 2009 (Bankr. D. Ariz. Case No. 09-32728). The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities in its bankruptcy petition. EMPIRE DISTRICT: Fitch Affirms Ratings on Preferred Stock at 'BB+' ------------------------------------------------------------------ Fitch Ratings has affirmed the debt ratings of the Empire District Electric Company: -- Issuer Default Rating at 'BBB-'; -- Senior secured debt and pollution control revenue bonds at 'BBB+'; -- Senior unsecured debt at 'BBB'; -- Trust preferred stock at 'BB+'; -- Short-term IDR at 'F2'; -- Short-term commercial paper at 'F2'. The Rating Outlook has been revised to Stable from Negative. Approximately $655 million of debt is affected. The revision to Stable Outlook takes into consideration the anticipated completion of the utility's five-year $840 million baseload capital expenditure program in 2010. Fitch's Stable Outlook assumes EDE will receive timely and adequate regulatory recovery of newly completed investments, which received regulatory assurances for timing, need, and technology from the Missouri Public Service Commission. As the new coal units enter commercial operation and new rates are set in 2010 and 2011, Fitch expects improving credit metrics by 2011, with the ratio of EBITDA to interest forecasted to approximate 4.0 times and debt to EBITDA to decline to approximately 4.0x. The Stable Outlook also reflects successful execution of the utility's $120 million equity issuance program in 2008 and 2009 to partially fund capital expenditures. As a result of management's funding of capital spending with a balanced mix of internally generated cash, long-term debt, and equity, EDE's debt to capitalization was 52.5% as of Dec. 31, 2009. Construction expenditures on Plum Point and Iatan 2 were approximately 97% and 90% complete as of March 31, 2010. An inability to obtain timely recovery for recent capital investments through rates would result in a negative rating action. EDE currently has a $68.2 million rate request pending before the MPSC, the major components of which include costs associated with investments in Iatan 2, Plum Point, and environmental upgrades at Iatan 1. The requested return on equity (ROE) is 11%. A final order is expected from the MPSC in September 2010, with new rates in effect immediately thereafter. Capital expenditures for Iatan 2 will not be considered in the current rate case because the unit missed the true-up period by two months as a result of construction delays and unusually cold weather. Before the end of 2010, EDE expects to file a second rate case for recovery of Iatan 2. EDE also plans to complete rate proceedings in its smaller Kansas and Oklahoma jurisdictions by the third quarter of 2010, which will result in higher rate base and stronger cash flows on a consolidated basis. The 'BBB-' IDR reflects EDE's regulated cash flows from utility operations in a small, mostly residential, service territory and an adequate fuel adjustment clause, applicable to 95% of the change in fuel and purchased power costs in rates. Credit concerns primarily relate to base rate case uncertainty, prudence review of fuel costs, and EDE's increased exposure to carbon legislation as a result of a higher percentage of owned coal capacity. The addition of new coal fired capacity from Iatan 2 and Plum Point is expected to raise the percentage of owned coal in the energy mix to approximately 60% from 40% currently. Fitch notes that while the company's service territory has experienced frequent ice storms, EDE has been able to secure supplemental one-year revolving credit facilities to mitigate potential liquidity challenges from storm damages during the capex cycle. Currently, total liquidity is sufficient to support the company's commercial paper program, working capital, and remaining capital expenditures. As of Dec. 31, 2009, EDE had $156 million in liquidity including $150 million in availability under lines of credit and $6 million in cash. In January 2010, EDE renewed its unsecured $150 million credit facility for three years. Debt maturities over the next several years are manageable and are: $50 million in 2010, $0 in 2011, and $110 million in 2012. EDE is an integrated utility company serving approximately 215,000 customers across southwest Missouri, southeast Kansas, northeast Oklahoma and Northwest Arkansas. ENERGY FUTURE: Fitch Downgrades Issuer Default Rating to 'B-' ------------------------------------------------------------- Fitch Ratings downgrades to 'B-' from 'B' the Issuer Default Ratings of these companies: -- Energy Future Holdings Corp.; -- Energy Future Intermediate Holding Company LLC; -- Texas Competitive Electric Holdings Company LLC; -- Energy Future Competitive Holdings Company. As detailed at the end of this release, the ratings of individual obligations of EFH and EFIH are affirmed, while ratings of TCEH and EFCH issues are either downgraded or affirmed. The Rating Outlooks remain Negative for EFH, EFIH, TCEH and EFCH. At the same time, Fitch affirms the ratings of Oncor Electric Delivery Company LLC including the company's 'BBB-' IDR. The Outlook for Oncor remains Stable. Approximately $44.2 billion of debt is affected by the rating actions. Fitch's diminished expectations of the cash flow generation capability of the competitive segment issuers (all issuers in the EFH group except Oncor) in the face of very high debt leverage are the reason for the one-notch downgrades of their IDRs. Forward natural gas prices and expected electricity demand growth in the Electric Reliability Council of Texas (ERCOT) are both lower now than at the time the LBO debt was originally rated in October 2007, reducing the projected level of recurring cash flow when the current natural gas hedges run off. The expected loss given default on the TCEH senior secured debt and junior TCEH debt issues has increased as a result of the weaker fundamentals. It may be challenging to refinance the substantial amounts of maturing credit facilities and loans in 2013 and 2014 given the over-leveraged capital structure. Fitch expects EFH to produce adequate cash flow and maintain adequate liquidity to cover business needs through 2012, assuming the baseload units operate without prolonged outages and the economy continues to recover. TCEH's substantial portfolio of forward natural gas hedges promotes cash flow stability from power sales through 2012, and Fitch forecasts that cash interest coverage will remain above 1 times. Gas price exposure for the balance of 2010 was fully hedged, and 92% and 85% of gas price exposure was hedged for 2011 and 2012, respectively as of Dec. 31, 2009. While EFH hedges a much greater proportion of expected output than other gencos, EFH's leverage is also the highest among the energy merchants. The largest near-term risks to EFH and TCEH's cash flows in 2010 and 2011 are lower than expected baseload unit energy production, weak market heat rates and compression of retail customer profit margins. However, EFH's strong operational track record and stable retail customer base as well as the economic recovery help to limit these risks. In Fitch's view, the risk of default increases significantly in 2013 and 2014 for all of the EFH group issuers except Oncor, which should continue to maintain an investment grade profile. The open (un-hedged) natural gas position will substantially increase over time, with 50% and 84% of gas exposure open in 2013 and 2014, respectively as of Dec. 31, 2009. Additional concerns include higher costs from any carbon laws, EPA initiatives, and proposed new derivatives laws. In Fitch's opinion, the potential adverse effects of these costs are more likely to affect cash flows beyond 2012. EFH's rating is supported by cash flows from its well positioned and effectively operated baseload generation capacity in ERCOT and a stable regulated T&D utility. EFH had solid EBITDA in 2009 despite the challenging economy largely due to the effective TCEH hedge program and cost control. Liquidity is expected to be sufficient to meet expected needs for the next three years; the winding down of the baseload coal unit construction program will increase cash flow and substantially reduce capital spending needs at TCEH. Recovery values for EFH and EFIH are supported by the regulated cash flows at Oncor, which are anticipated to grow over time. EFH may continue to monetize its equity value in Oncor via additional secured debt issuances, which could change recovery prospects for the EFH's and EFIH's various debt issues. Oncor's 'BBB-' IDR and Stable Outlook are supported by a healthy regulated transmission and distribution utility business that provides a stable source of cash flow with rate base growth opportunities related to transmission projects and advanced metering investments. Credit ratios are consistent with the investment grade rating and are expected to continue to support the rating despite high capital spending on CREZ transmission and advanced meter investments. Oncor bears no commodity price risk and has low business risk as a pure T&D utility. The utility will continue to need regulatory support to recover costs of its large capital spending on advanced meters and transmission to maintain its current credit profile. While Fitch considers Oncor to be effectively ring-fenced from the rest of the EFH group, Oncor's credit market access or credit spreads could nonetheless become constrained by any deterioration in the financial condition of EFH and affiliates. Fitch has taken these rating actions: EFH: -- IDR downgraded to 'B-' from 'B'; -- Secured notes affirmed at 'B+/RR1'; -- Guaranteed notes revised to 'B/RR3' from 'B/RR4'; -- Senior notes (non-guaranteed) revised to 'CCC/RR5' from 'CCC/RR6'. The Outlook is Negative. EFIH: -- IDR downgraded to 'B-' from 'B'; -- Secured notes affirmed at 'B+/RR1'. TCEH: -- IDR downgraded to 'B-' from 'B'; -- Senior secured bank facilities downgraded to 'B+/RR1' from 'BB/RR1'; -- Secured lease facility bonds revised to 'B/RR3' from 'B/RR4' (secured by combustion turbine assets); -- Guaranteed notes downgraded to 'B-/RR4' from 'B/RR4'; -- Senior unsecured debt (non-guaranteed) including various pollution control bonds issued by the Brazos River Authority (TX), Sabine River Authority (TX), and Trinity River Authority (TX) revised to 'CCC/RR5' from 'CCC/RR6'. The Outlook is Negative. EFCH: -- IDR downgraded to 'B-' from 'B'; -- Unsecured notes revised to 'CCC/RR5' from 'CCC/RR6'. The Outlook is Negative. Oncor: -- Long-term IDR affirmed at 'BBB-'; -- Senior secured notes affirmed at 'BBB'; -- Short-term IDR and commercial paper affirmed at 'F3'. The Outlook is Stable. EPIX PHARMACEUTICALS: To Auction MRI Imaging Intellectual Assets ---------------------------------------------------------------- Joseph F. Finn, Jr., C.P.A., Assignee for the Benefit of Creditors of Epix Pharmaceuticals, Inc. disclosed that MRI imaging intellectual properties will be auctioned on May 28, 2010. The assets of Epix were transferred to him on July 20, 2009 and he is liquidating them for the benefit of Epix creditors. He recently reached an agreement with Bayer Schering Pharma that permits the sale of the MRI imaging programs. The family of gadolinium-based imaging programs consists of: 1) MS-325, commercial MRA imaging agent, currently marketed as Ablavar (R) in the US by Lantheus Medical Imaging and formerly marketed as Vasovist (R), in Europe and other countries by Bayer Schering Pharma. The MS-325 commercial rights for sale include Europe, Switzerland and other regions outside the US, Canada, Puerto Rico and Australia; 2) EP-2104R, a fibrin binding MRI imaging agent in Phase 2 clinical development for clot detection; and 3) EP-3600, a collagen binding MRI imaging agent in preclinical development for myocardial perfusion. Bidders may bid on any combination of the three or all three. Persons interested in bidding must sign a Confidentiality Disclosure Agreement obtained from Mr. Finn's Office -- Ipsaleservices@Finnwarnkegayton.com -- or 781-237-8840. They will then receive a bid package and access to an electronic data room. About Joseph F. Finn, Jr., C.P.A. Joseph F. Finn, Jr., C.P.A. is the owner of the firm, Finn, Warnke & Gayton, Certified Public Accountants of Wellesley Hills, Massachusetts. He works primarily in the area of management consulting for distressed enterprises, bankruptcy accounting and related matters, such as assignee for the benefit of creditors and liquidating agent for a corporation. He has been involved in a number of loan workouts and bankruptcy cases for thirty-five (35) years. His most recent Assignments for the Benefit of Creditors in the biotech field include Spherics, Inc., ActivBiotics, Inc. and Prospect Therapeutics, Inc. About EPIX Pharmaceuticals EPIX Pharmaceuticals, Inc., is a biopharmaceutical company focused on discovering and developing novel therapeutics through the use of its proprietary and highly efficient in silico drug discovery platform. The company has a pipeline of internally-discovered drug candidates currently in clinical development to treat diseases of the central nervous system -- see http://www.trialforAD.com/-- and lung conditions. EPIX also has collaborations with leading organizations, including GlaxoSmithKline, Amgen and Cystic Fibrosis Foundation Therapeutics. * * * As reported by the Troubled Company Reporter, EPIX on July 20, 2009, entered into an Assignment for the Benefit of Creditors in accordance with Massachusetts law. The purpose of the Assignment is to conclude the company's operations and provide for an orderly liquidation of its assets. The Assignment is a common law business liquidation mechanism under Massachusetts law that is an alternative to a formal bankruptcy proceeding. Under the terms of the Assignment, the Company transferred all of its assets to an assignee for orderly liquidation and distribution of the proceeds to the Company's creditors. The designated assignee for the company is Joseph F. Finn, Jr., at Finn, Warnke & Gayton, 167 Worcester Street, Suite 201, Wellesley Hills, MA 02481. EPV SOLAR: Creditors Panel Asks Court to Convert Case to Ch 7 ------------------------------------------------------------- The Official Committee of Unsecured Creditors of EPV Solar, Inc., has asked the U.S. Bankruptcy Court for the District of New Jersey to convert the Debtor's Chapter 11 case to Chapter 7. The Creditors Committee notes the Debtor commenced this case with the primary goal of staving off a foreclosure action commenced by Patriarch Partners Agency Services, LLC. The Debtor articulated a broader strategy for this case, which involves the marketing and sale of its manufacturing business and the reorganization of the Debtor around its equipment business. The Committee doesn't believe that the Debtor has the ability or the wherewithal to effectuate a reorganization. According to the Committee, the Debtor has failed to demonstrate that the debtor-in-possession financing it is seeking will provide it with sufficient funds to satisfy its working capital needs and pay for the costs of administering this bankruptcy, including the full marketing of its assets that is necessary to maximize value and put the Debtor's strategy into motion. "By its own admission, the Debtor has yet to engage in any substantive marketing of its assets, and the Debtor has yet to retain an investment banker in this case to run such a process. A full and fair marketing of the Debtor's assets will require some time, and in fact the DIP Facility contemplates a seven-month sale process. Nonetheless, under the proposed DIP Facility, the Debtor will likely run out of cash well before such a sale can be consummated. Thus, it appears that the DIP Facility will enable the Debtor to do little more than run a truncated sale process for the sole benefit of the DIP Lenders (and possibly the prepetition noteholders), leaving unsecured creditors out of the money. Accordingly, the value of the Debtor's assets will not be maximized and it will be impossible for the Debtor to confirm a plan of reorganization," the Committee claims. The Committee states that should the Court allow the Debtor to implement its strategy, this case will convert to Chapter 7 shortly after the conclusion of the truncated sale process, with the DIP Lenders paid substantial sums, including fees that total 66% of the new funds provided to the Debtor under the DIP Facility to fund its operations, with no chance of a distribution for the Debtor's general unsecured creditors and, due to the onerous terms of the DIP Facility, without any ability of the Chapter 7 trustee to investigate and evaluate the prudence of causes of action that might be available to the estate. "Unless and until the Debtor and the DIP Lenders agree to fund a sale process that is reasonably likely to result in the confirmation of a plan of reorganization which provides general unsecured creditors with a meaningful chance to obtain a recovery, they should be denied the opportunity to exploit the Chapter 11 process. It is respectfully submitted that cause exists to convert the Debtor's case to Chapter 7 now, before financing is approved on a final basis. Conversion now will potentially preserve unencumbered assets of the Debtor, which may then be available for the benefit of the estate, rather than being pledged to the DIP Lenders," the Committee says. According to the Committee, the Debtor will forego the millions of dollars in legal fees that will likely be incurred by the estate's and the lenders' professionals. The Chapter 7 trustee can decide which of the Debtor's remaining 22 employees warrant continued employment. The Committee is represented by Cooley Godward Kronish LLP. About EPV Solar Robbinsville, New Jersey-based EPV Solar, Inc., fka Energy Photovoltaics, Inc., filed for Chapter 11 bankruptcy protection on February 24, 2010 (Bankr. D. N.J. Case No. 10-15173). Kenneth Rosen, Esq., and Samuel Jason Teele, Esq., at Lowenstein Sandler PC, assist the Company in its restructuring effort. The Company estimated its assets and its debts at $50,000,001 to $100,000,000. EQUA-CHOR INC: Increased Profits & Successful Initiatives for 2009 ------------------------------------------------------------------ Equa-Chlor, Inc., said it increased operating profits in 2009, less than eleven months after emerging from Chapter 11 bankruptcy. The company, a producer and marketer of chemicals used in several industrial applications, attributed the profitability gain to a new product launch, termination of an unprofitable product line and a more flexible production platform. "We were pleased to enter 2010 with excellent momentum, running at full capacity with a strengthened financial position," said Equa- Chlor Chief Executive Officer Clay Pace. "Operating income nearly doubled in 2009 on slightly lower sales, which were due to dropping an unprofitable distribution business. Equa-Chlor is focused on increasing sales in order to take advantage of an improving market and efficiencies introduced during the past 18 months." Equa-Chlor exited Chapter 11 in February 2009, almost a year to the day of its filing. The company noted the filing was necessitated by plant start-up delays and construction cost overruns, weak demand for chorine and an unprofitable caustic soda distribution business. Despite the filing, the company's business remained sound, with no disruptions in operations or supplies. In fact, Pace said, Equa-Chlor retained all of its customers, suppliers and employees and has since increased employment by more than 10 percent. The company attributed its strengthened financial position to debtor-in-possession financing that allowed the installation of an 80,000-ton per year hydrochloric acid burner, completed in December 2008. The new product line has been key to Equa-Chlor's growth, Pace said. "Our strategy for the future is to focus on continuous process improvements, which is the key to success in a commodity business," said Pace. "Because of our capacity situation, we are considering another plant expansion to take advantage of higher demand anticipated in our market area. "We are extremely pleased with the dedication of our employees who made the successful reorganization possible," Pace concluded. "I hesitate to call it a 'turnaround' because the business was always fundamentally sound and we just needed to do a better job executing. As Yogi Berra would say, 'Our past is behind us' and Equa-Chlor is now well-positioned to resume growth." About Equa-Chlor Equa-Chlor, Inc. is a Chlor-Alkali producer and marketer of liquid chlorine, caustic soda, and hydrochloric acid serving the pulp, paper, water treatment, electronics and food industries in the western United States and Canada The company is headquartered in Longview, Washington. ERICKSON RETIREMENT: Files Staffing Report for March 2010 --------------------------------------------------------- Debra Doyle, executive vice president of Health & Operations for Debtor Erickson Retirement Communities, LLC, filed with the Court on March 15, 2010, exhibits that are responsive to an order excusing appointment of a patient care ombudsman under Section 333 of the Bankruptcy Code in the Debtors' Chapter 11 cases and requiring the Debtors to self report until further ordered by the Court. The Debtors specifically submitted a list of staff members working at the continuing care retirement communities, a copy of which is available for free at: http://bankrupt.com/misc/ERC_StaffMembersMar2010.pdf Ms. Doyle says the Debtors hired 444 employees and recorded 507 employees that were separated from ERC from the period from January 23, 2010, to March 12, 2010. The CCRCs reported material concerns or complaints by residents or family members for the period January 20, 2010, to March 12, 2010: Number of CCRC Improper Care Complaints ---- ------------------------ Charlestown Community in Maryland One Cedar Crest Village in New Jersey Four Fox Run in Michigan One Highland Springs in Texas Two Sedgebrook in Illinois Three The Debtors note that both paper and electronic patient/records maintained at the CCRCs are held in full compliance with federal and state privacy and security requirements. Ms. Doyle says ERC has maintained management company responsibility and oversight of the CCRC's record keeping system. No changes have been implemented that would reduce or compromise compliance with privacy and security safeguards in place at the CCRCs, she adds. Ms. Doyle relates that no material complaints were raised by vendors of the Debtors regarding payment or ordering issues for postpetition orders. Similarly, no complaints were filed regarding patient care rendered by the Debtors. Ms. Doyle discloses that ERC received a notice of action captioned Granite State Insurance Company v. Erickson Construction, LLC, et al., filed in the Circuit Court for Baltimore County. She says that notice of the Debtors' bankruptcy has been filed to stay the Baltimore Action. No administrative actions were pending against the Debtors that are exempted from the automatic stay, she adds. The Debtors have no plans to reopen, close or open a new CCRC as of March 15, 2010. The Debtors expect to complete material projects, estimated at total of $100,000 or more, at their campuses within the next months. A list of the material projects is available for free at http://bankrupt.com/misc/ERC_FacilityProjectsMar2010.pdf No life-safety issues were reported at the CCRCs managed by ERC for the period from January 22, 2010, to March 12, 2010. Life- safety systems and processes remain active and in place to address emergency/emergent issues that may arise with residents, as appropriate to each CCRC resident's level of care. Full-text copies of the Patient Care Exhibits is available for free at http://bankrupt.com/misc/ERC_PatientCareExhibts.pdf About Erickson Retirement The Baltimore, Maryland-based Erickson Retirement Communities LLC owns 20 continuing care retirement communities in 11 states. Among Erickson's 20 communities, eight are completed, 11 are open although in construction, and one is in development. They have 23,000 residents in total. Erickson, along with affiliates, filed for Chapter 11 on Oct. 19, 2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves as counsel to the Debtors. BMC Group Inc. serves as claims and notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also serving as investment and financial consultant. Alvarez & Marsal is serving as restructuring adviser. As of September 30, 2009, on a book value basis, ERC had approximately $2.7 billion in assets, including $2.2 billion of property and equipment, and $3.0 billion in liabilities. Liabilities include $195.8 million on the revolving credit, $347.5 million on construction credit, $64 million in accounts payable, $47.8 million in subordinate debt, and $475 million in purchase option deposits. Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Erickson Retirement Communities LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FLEETWOOD ENTERPRISES: US Trustee, Others Knock Disclosure ---------------------------------------------------------- Bankruptcy Law360 reports that Fleetwood Enterprises Inc.'s disclosure statement has prompted several objections, in particular from the U.S. trustee, who says it doesn't include enough financial information for creditors to make a fair appraisal of the bankrupt recreational vehicle company's plan of reorganization. Fleetwood Enterprises scheduled an April 14 hearing for approval of the disclosure statement explaining its liquidating Chapter 11 plan. The terms of the Plan are: * Holders of secured claims are to be paid in full; * Holders of the $84.3 million in 14% notes are expected to have a 23.9% recovery from receiving 43.5% of net proceeds from the liquidation after claims with higher priorities are paid; * General unsecured creditors, with $115 million to $195 million in claims, are promised a 11.8% and 20.1% recovery from sharing 56.5% of net liquidation proceeds; * Holders of the 6% notes are to recover 1.2% from the $2 million cash they are to be given; and * Holders of the $1.1 million in 5% notes are not to receive anything. About Fleetwood Enterprises 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 advisor to the Debtors. The Debtors tapped Greenhill & Co. LLC as its investment banker. FOXLAND CLUB: Case Summary & 3 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Foxland Club Properties, LLC 981 Plantation Blvd. Gallatin, TN 37066 Bankruptcy Case No.: 10-03566 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Middle District of Tennessee (Nashville) Judge: Marian F Harrison Debtor's Counsel: William L Norton, III, Esq. Bradley Arant Boult Cummings Llp PO BOX 340025 Nashville, Tn 37203 Tel: (615) 252-2397 Fax: (615) 252-6397 E-mail: bnorton@babc.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 3 largest unsecured creditors is available for free at: http://bankrupt.com/misc/tnmb3-10-bk-03566.pdf The petition was signed by Leon Moore, president. FUNDAMENTAL PROVISIONS: Wants to Sell Port Vincent Property ----------------------------------------------------------- Fundamental Provisions, LLC, et al., have sought authorization from the U.S. Bankruptcy Court for the Middle District of Louisiana to sell to Darryl Zachary certain real property located in Port Vincent, Louisiana, free and clear of all liens, claims, and encumbrances and other interests, for $38,994. The Port Vincent Property is subject to a Multiple Indebtedness Mortgage in favor of First National USA Bank. As of March 1, 2010, the Bank asserts that the Debtors owed it approximately $39,029 in principal, interest, and late fees. Gonzales, Louisiana-based Fundamental Provisions, LLC -- fdba Pollo, Inc., et al. -- filed for Chapter 11 bankruptcy protection on December 8, 2009 (Bankr. M.D. La. Case No. 09-11897). Fundamental Provision's affiliates -- Pollo, Inc., and Thaxco, Inc. -- also filed Chapter 11 bankruptcy petitions. Barry W. Miller, Esq., at Heller, Draper, Hayden, Patrick & Horn, assists the Debtors in their restructuring efforts. Fundamental Provisions listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. GENERAL GROWTH: Fairholme Funds to Buy Equity for $2.685-Bil. ------------------------------------------------------------- The Fairholme Fund and The Fairholme Focused Income Fund, each a series of Fairholme Funds, Inc., disclosed that, on March 31, 2010, each Fund entered into a definitive agreement to acquire new equity capital of the reorganized General Growth Properties, Inc. on terms substantially similar to those contained in a proposal announced on March 9, 2010. The investment manager of each of FAIRX and FOCIX is Fairholme Capital Management, LLC. FAIRX would acquire approximately 268.5 million shares of GGP (at a cost of approximately $2.685 billion), and provide funding of approximately $61.8 million in connection with the $250 million rights offering of General Growth Opportunities, a subsidiary of GGP to be formed and subsequently spun-off to GGP shareholders. FOCIX would acquire approximately 2.9 million shares of GGP and provide funding of approximately $0.67 million in connection with the GGO rights offering. Each commitment to purchase shares of GGP may be terminated at the option of GGP at any time prior to the hearing on its plan of reorganization and also may be reduced by up to 50% at the option of GGP if GGP obtains binding commitments to replace the Funds' investments with new equity capital at a net per share price greater than $10.50. In return for their respective commitments, FAIRX will receive warrants to purchase approximately 42.4 million shares of GGP and 19.8 million shares of GGO, and FOCIX will receive warrants to purchase approximately 0.45 million shares of GGP and 0.21 million warrants to purchase shares of GGO, in each case subject to customary antidilution adjustments. Contrary to the terms of the initial proposal, neither Fund will have any GGP or GGO board appointment rights. The terms of the transaction are specified in the agreement between each Fund and GGP, and such agreement is subject to U.S. Bankruptcy Court approval. Fairholme Capital and the Funds Fairholme Capital is registered with the SEC as an investment adviser and, as of March 31, 2010, has approximately $16.5 billion of assets under management. Fairholme Capital is the investment manager of each of The Fairholme Fund and The Fairholme Focused Income Fund. Operating and investment decisions for Fairholme Capital and the Funds are made by Bruce R. Berkowitz, in consultation with Charles M. Fernandez. Mr. Berkowitz is the founder and Managing Member of Fairholme Capital and the President and a Director of Fairholme Funds, Inc. Mr. Charles M. Fernandez is the President of Fairholme Capital and a Vice-President and a Director of Fairholme Funds, Inc. The Funds investment objectives, risks, charges, and expenses should be considered carefully before investing. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MARITIME: S&P Downgrades Corporate Credit Rating to 'B+' ---------------------------------------------------------------- Standard & Poor's Ratings Services said it has lowered its long- term corporate credit rating on General Maritime Corp. to 'B+' from 'BB-' and placed the rating on CreditWatch with negative implications. At the same time, S&P lowered its rating on the company's senior unsecured notes to 'B-' (two notches below the corporate credit rating) and placed it on CreditWatch with negative implications as well. The '6' recovery rating remains unchanged, indicating S&P's expectation that lenders will receive negligible (0% to 10%) recovery in a payment default scenario. "The downgrade of General Maritime reflects the potential for a financial covenant breach, despite recent financial covenant amendments," said Standard & Poor's credit analyst Funmi Afonja. The rating action also reflects the company's constrained liquidity due to prolonged pressures on earnings and cash flow from weak tanker rates and significantly higher cash interest payments because of refinancings and repricing of the revolving line of credit in November 2009. S&P believes the near-term expiration of a significant number of the company's fixed-rate, time-charter agreements amid weak tanker rates could increase earnings and cash flow volatility. General Maritime has historically maintained a high time-charter coverage that has provided stable and predictable revenues. The company expects charter agreements for 11 of the 16 vessels currently under time-charter agreements to expire during 2010, which would change the company's business risk profile and increase the prospects of more volatile earnings and cash flow. The reduced time-charter coverage is also reflected in the fact that about 43% of this year's vessel operating days are currently under committed time-charter agreements, compared with 72% during 2009. General Maritime's liquidity is constrained. At Dec. 31, 2009, the company had $52.7 million in cash, which includes the $50 million minimum cash requirement under its financial covenants. The company also had $18.8 million available under its $749.8 million revolving credit facility. S&P believes General Maritime could breach its financial covenants in the next year because of earnings pressures, high debt, and volatility of asset values. S&P expects the company to take steps to improve its financial risk profile, as it has done in the past. If the company is unsuccessful in avoiding a breach and falls out of compliance with its covenants, the majority of the lenders can vote to put the loans in default, terminate loan commitments, and accelerate the payment of outstanding balances. In resolving the CreditWatch review, S&P will assess the outlook for financial covenant cushion, including any potential actions management may take to strengthen the company's financial profile, and the effect of earnings prospects on the company's intermediate-term financial prospects. GENERAL MOTORS: Pressured by Republicans on Delphi Pensions ----------------------------------------------------------- Bankruptcy Law360 reports that U.S. House of Representatives Republicans are continuing to pressure General Motors Co. to release documents related to subsidiary Delphi Corp.'s decision during bankruptcy to cut portions of its salaried employees' pensions. 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: Buick and GMC Sales Hike in March 2010 ------------------------------------------------------ General Motors Corp. announced that Buick and GMC dealers in the U.S. reported sales for those brands in March 2010 that were 54% higher than March 2009. This led to an overall gain of 43% for the Chevrolet, Buick, GMC and Cadillac brands in the U.S. total combined sales for GM's four brands were 185,406 during the month. This represents a 34% increase from February 2010. Susan Docherty, GM vice president of marketing, commented, "Our March results show continued progress toward our growth plan. By investing in our brands and remaining disciplined in our approach to the U.S. market, we posted solid results. Our new vehicles, like the Chevrolet Equinox, Buick LaCrosse, GMC Terrain, and Cadillac SRX, are being well-received by customers for many good reasons, including quality, safety, excellent fuel economy, and higher resale values." Buick sales rose 76% and were led by the Buick LaCrosse, with an increase of 236%for the month. Year-to-date, sales of the LaCrosse have increased 197%. GMC sales increased by 45% for the month, led by sales of the GMC Terrain, which were up 331% for the month versus the vehicle it replaced. For the year, sales of the Terrain are up 245%. Chevrolet dealers reported sales of 133,165, 41% higher than March 2009. Chevrolet Equinox sales are up 194%, compared to last year, and year-to-date sales of the Equinox have more than doubled. Cadillac March sales increased 42% on high demand for the Cadillac SRX. March sales of the SRX were 550% higher than a year ago, and are up more than 425% for the year. Month-end dealer inventory in the U.S. stood at about 428,000 units, which is about 8,000 higher compared to February 2010, and about 338,000 lower than March 2009. 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) GERALD HELLINE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Joint Debtor: Gerald Paul Helline, Jr. Lori Lee Helline 2723 Brentwood Road NW Canton OH 44708 Bankruptcy Case No.: 10-61369 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Northern District of Ohio (Canton) Judge: Russ Kendig Debtor's Counsel: Edwin H. Breyfogle, Esq. 108 Third St. NE Massillon, OH 44646 Tel: (330) 837-9735 Fax: (330) 837-8922 E-mail: edwinbreyfogle@sssnet.com Scheduled Assets: $2,167,806 Scheduled Debts: $2,893,339 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ohnb10-61369.pdf The petition was signed by Gerald Paul Helline, Jr. and Lori Lee Helline. GERMANTOWN SETTLEMENT: Voluntary Chapter 11 Case Summary -------------------------------------------------------- Debtor: Germantown Settlement aka Germantown Community Center 5538 Wayne Avenue Philadelphia, PA 19144 Bankruptcy Case No.: 10-12615 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Eastern District of Pennsylvania (Philadelphia) Judge: Bruce I. Fox Debtor's Counsel: Albert A. Ciardi, III, Esq. E-mail: aciardi@ciardilaw.com Thomas Daniel Bielli, Esq. E-mail: tbielli@ciardilaw.com Ciardi Ciardi & Astin, P.C. One Commerce Square 2005 Market Street Suite 1930 Philadelphia, PA 19103 Tel: (215) 557-3550 Fax: (215) 557-3551 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 largest unsecured creditors together with its petition. The petition was signed by Emanuel V. Freeman, company president. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Greater Germantown Educational Development Corporation 10-12021 3/18/10 GLADE SPRINGS: Greenbrier Owner Acquires 92.5% Stake ---------------------------------------------------- The Associated Press last week said Jim Justice, the owner of The Greenbrier, added a second exclusive West Virginia resort to his holdings, acquiring The Resort at Glade Springs. AP relates that Mr. Justice declined to disclose how much his Justice Family Group paid for a 92.5% stake in the 4,100-acre resort. Elmer Coppoolse and his EMCO Hospitality Inc. retained a 7.5% share and will manage Glade Springs, AP says. According to AP, Mr. Justice described the acquisition as a bailout after part of Glade Springs' financing dried up and Mr. Coppoolse called for help. Based in White Sulphur Springs, West Virginia, Greenbrier Hotel Corporation -- http://www.greenbrier.com/-- fka CSX Hotels, Inc., The White Sulphur Springs Co. is a wholly owned subsidiary of The Greenbrier Resort and Management Corporation, which is wholly owned by CSX Corporation. Greenbrier Hotel and its affiliates filed for Chapter 11 protection on March 19, 2009, (Bankr. E. D. Va. Lead Case No. 09-31703) Dion W. Hayes, Esq. and Patrick L. Hayden, Esq. at McGuireWoods LLP, represented the Debtors in their restructuring efforts. The Debtors employed Huddleston Bolen LLP as corporate counsel; Dinsmore & Shohl LLP as special labor counsel; Kurtzman Carson Consultants LLC as claims agent. Greenbrier listed assets of $50 million to $100 million and debts of $100 million to $500 million in its bankruptcy petition. GLOBAL ASSOCIATES: Case Summary & 9 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Global Associates International Group Inc. 8635 Commodity Circle Suite 100 Orlando, Fl 32819 Bankruptcy Case No.: 10-05511 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: Lawrence M Kosto, Esq. Kosto & Rotella PA Post Office Box 113 Orlando, FL 32802 Tel: (407) 425-3456 Fax: (407) 423-9002 E-mail: lkosto@kostoandrotella.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 A copy of the Company's list of 9 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb10-05511.pdf The petition was signed by Charles Hwang, president. GMAC INC: Selected as Preferred Retail Finance Provider for Thor ---------------------------------------------------------------- GMAC Financial Services said Monday it will provide consumer financing for recreation vehicles and has been selected by Thor Industries as the preferred financial provider for its retail customers. Thor is a manufacturer of recreation vehicles, including brands such as Damon, Four Winds, Airstream, Dutchmen, Komfort, Breckenridge, CrossRoads, General Coach and Keystone RV. GMAC will begin by extending retail financing through Thor dealers in 14 high-volume states, and eventually expand nationwide to all 1,200 dealers that comprise Thor's U.S. network. The company expects to accept retail financing applications from dealers for both new and used RVs, beginning in May 2010. "The RV financing market is a natural extension of our auto business," said GMAC President Bill Muir. "We have the infrastructure and servicing capabilities to add the RV business to our portfolio. Further, many of GMAC's current and prospective auto customers are interested in using their vehicles to pull towables, so the new relationship with Thor brands makes a lot of sense for both our business and customer base." GMAC intends to hire current employees who manage Thor Credit services, including industry veteran Ed Arienti. "We are pleased to select GMAC as the preferred financing provider for Thor Industries, particularly as we seek to satisfy increased demand for our recreation vehicles with a positive sales and financing experience," said Thor Chairman and CEO Peter Orthwein. "Thor dealers and their customers will benefit from having GMAC as a retail financing option." The U.S. RV market has been growing since mid-2009, and is expected to reach more than 215,000 units in 2010. Thor Industries currently holds 27 percent of U.S. RV market share. "The RV industry represents high-quality business and is currently under-represented by the financial community," Muir said. In addition to providing consumer retail financing, GMAC will offer remarketing services to RV dealers for used or traded-in recreation vehicles through its SmartAuction online site. About GMAC GMAC Inc. -- http://www.gmacfs.com/-- is a bank holding company with 15 million customers worldwide. GMAC's business operations include automotive finance, mortgage operations, insurance and commercial finance. The company also offers retail banking products through its online bank, Ally Bank. As of December 31, 2009, GMAC had approximately $172 billion in assets. GMAC Inc. was founded in 1919 as a wholly owned subsidiary of General Motors Corporation. On November 30, 2006, General Motors Corporation sold a 51% interest in the Company to FIM Holdings LLC, an investment consortium led by Cerberus FIM Investors, LLC, the sole managing member. On December 24, 2008, the Board of Governors of the Federal Reserve System approved the Company's application to become a bank holding company under the Bank Holding Company Act of 1956, as amended. In connection with this approval, GM and FIM Holdings were required to significantly reduce their voting equity ownership interests in GMAC. These reductions in ownership occurred in 2009. Ally Bank, a unit of GMAC Financial Services, is an online U.S. bank that provides an array of products, including online savings accounts, money-market savings accounts and a variety of no penalty certificates of deposit. The bank was founded on three core values: talking straight, doing what's right and being obviously better than the competition. Ally Bank's total assets were $42.5 billion at the end of the second quarter of 2009. Headquartered in Minneapolis, Minnesota, Residential Capital LLC -- http://www.rescapholdings.com/-- is the home mortgage unit of GMAC Financial Services, which is in turn wholly owned by GMAC LLC. * * * For the 2009 full year, GMAC reported a net loss of $10.3 billion, compared to net income of $1.9 billion in 2008. GMAC reported that as of Dec. 31, 2009, it had $172.306 billion in total assets and total debt of $98.313 billion. GMAC says there is substantial doubt about ResCap's ability to continue as a going concern. GMAC says that should ResCap file for bankruptcy, its investment related to ResCap's equity position would likely be reduced to zero. Dow Jones notes GMAC has received $16.3 billion of federal aid as part of an effort to avoid bankruptcy. It converted into a bank- holding company at the end of 2008 to help make it through the financial crisis. In February 2010, Moody's Investors Service upgraded the senior unsecured rating of GMAC and GMAC-supported subsidiaries to B3 from Ca, with a stable rating outlook. At the end of January, Standard & Poor's Ratings Services raised its long-term counterparty credit rating on both GMAC and Residential Capital to 'B' from 'CCC'. GMAC INC: Sells Factoring Business to Wells Fargo ------------------------------------------------- Wells Fargo & Company said Wednesday that Wells Fargo Bank, N.A. has entered into a definitive agreement to purchase substantially all of the North American factoring portfolio of the Commercial Services Division of GMAC Commercial Finance Group. The portfolio consists of approximately 150 small and middle-market clients that primarily serve the retail channel, representing approximately $4 billion in annual volume of factored receivables. Wells Fargo Bank will also acquire the client service application system currently used to manage these relationships. The portfolio and client service application system will become part of the Trade Capital division of Wells Fargo Capital Finance upon the closing of the transaction. Terms of the purchase were not disclosed. "We are pleased to welcome these new clients and their customers to Wells Fargo," said Stuart Brister, president of the Trade Capital division of Wells Fargo Capital Finance. "We look forward to being able to help them achieve success through the expertise we've gained in more than 50 years in factoring and through all the additional financial products and services Wells Fargo has to offer." "Wells Fargo is committed to helping small and middle-market businesses succeed," said Bill Mayer, president of the Commercial & Retail Finance Group at Wells Fargo Capital Finance, of which the Trade Capital division is a part. "Being able to provide continuous service and financing for these clients during these uncertain times is another example of how we deliver on that commitment." Wells Fargo Bank, N.A., was advised by Wells Fargo Securities. Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores and 12,000 ATMs and the Internet -- http://www.wellsfargo.com/-- across North America and internationally. Bloomberg News' Dakin Campbell noted that GMAC Chief Executive Officer Michael Carpenter is selling units to focus on auto financing after losses tied to home lending forced the firm to accept three U.S. bailouts. According to Bloomberg, Mr. Carpenter is seeking buyers for commercial finance assets worth about $200 million at the end of last year, according to the company's year-end filing. Factoring allows companies to gain liquidity by selling their receivables for cash, Bloomberg notes. Bloomberg also relates GMAC said in fourth-quarter filings it would sell the factoring unit and marked down $30 million in assets in preparation. GMAC's filing listed $233 million of loans and finance receivables for sale within the unit that includes the factoring operations. The GMAC business is part of GMAC Commercial Finance which offers global factoring, accounts receivable finance and loan facilities that range from $5 million to $500 million, Bloomberg says, citing the company's Web site. About GMAC Inc GMAC Inc. -- http://www.gmacfs.com/-- is a bank holding company with 15 million customers worldwide. As a global, independent financial services institution, GMAC's diversified business operations include automotive finance, mortgage operations, insurance, commercial finance and online banking. GMAC Inc. was founded in 1919 as a wholly owned subsidiary of General Motors Corporation. On November 30, 2006, General Motors Corporation sold a 51% interest in the Company to FIM Holdings LLC, an investment consortium led by Cerberus FIM Investors, LLC, the sole managing member. On December 24, 2008, the Board of Governors of the Federal Reserve System approved the Company's application to become a bank holding company under the Bank Holding Company Act of 1956, as amended. In connection with this approval, GM and FIM Holdings were required to significantly reduce their voting equity ownership interests in GMAC. These reductions in ownership occurred in 2009. Ally Bank, a unit of GMAC Financial Services, is an online U.S. bank that provides an array of products, including online savings accounts, money-market savings accounts and a variety of no penalty certificates of deposit. The bank was founded on three core values: talking straight, doing what's right and being obviously better than the competition. Ally Bank's total assets were $42.5 billion at the end of the second quarter of 2009. Headquartered in Minneapolis, Minnesota, Residential Capital LLC -- http://www.rescapholdings.com/-- is the home mortgage unit of GMAC Financial Services, which is in turn wholly owned by GMAC LLC. * * * For the 2009 full year, GMAC reported a net loss of $10.3 billion, compared to net income of $1.9 billion in 2008. GMAC reported that as of Dec. 31, 2009, it had $172.306 billion in total assets and total debt of $98.313 billion. GMAC says there is substantial doubt about ResCap's ability to continue as a going concern. GMAC says that should ResCap file for bankruptcy, its investment related to ResCap's equity position would likely be reduced to zero. Dow Jones notes GMAC has received $16.3 billion of federal aid as part of an effort to avoid bankruptcy. It converted into a bank- holding company at the end of 2008 to help make it through the financial crisis. In February 2010, Moody's Investors Service upgraded the senior unsecured rating of GMAC and GMAC-supported subsidiaries to B3 from Ca, with a stable rating outlook. At the end of January, Standard & Poor's Ratings Services raised its long-term counterparty credit rating on both GMAC and Residential Capital to 'B' from 'CCC'. GOLDEN EAGLE INT'L: Delays Filing of 2009 Annual 10-K Report ------------------------------------------------------------ Golden Eagle International, Inc., failed to file on time its annual report on Form 10-K for the year ended December 31, 2009. In a regulatory filing, the Company said its Form 10-K could not be filed without unreasonable effort or expense due to compliance standards required of both the U.S. parent company, as well as its wholly owned Bolivian subsidiary, by recent legislation. On March 16, 2010, Golden Eagle transferred control of its Bolivian subsidiary operations to an unaffiliated, Swiss corporation. The Swiss corporation has paid Golden Eagle $112,000 in Bolivia, and has also agreed to pay $200,000 to satisfy various Golden Eagle obligations in Bolivia; to assume certain Golden Eagle obligations in Bolivia in an estimated amount of $200,000; and to provide $50,000 directly to Golden Eagle in the United States. In addition, the Swiss corporation will pay Golden Eagle a 3% net smelter return of up to $3 million. The net smelter return will be payable on a quarterly basis if and when mineral production is achieved from the mining concessions owned by the Bolivian subsidiary. Golden Eagle has agreed to indemnify the Swiss corporation regarding any other past debts and obligations that are not part of the agreement between the parties if those obligations are not the product of social or political issues. The Swiss corporation has agreed to indemnify Golden Eagle against future debts and obligations, and has further agreed to make available to Golden Eagle certain former Bolivian employees of Golden Eagle and certain records to assist Golden Eagle to comply with its reporting obligations. Although Golden Eagle's Bolivian assets and operations were once the primary focus of the company, starting in 2008 Golden Eagle has focused its operations primarily within the United States. Golden Eagle considered a number of factors when evaluating its options with respect to its Bolivian operations, including: -- The re-election for a new 5-year term in December 2009 of Bolivia's current administration, which has proven to be unsupportive of U.S. investment in Bolivia, and the continuing negative political and social environment relative to U.S. companies; -- Golden Eagle's continuing difficulties in meeting its financial and other obligations. Going Concern At September 30, 2009, the Company had total assets of $7,204,602 against $2,971,043 in total liabilities. "Our auditors issued a going concern opinion on our audited financial statements for the fiscal year ended December 31, 2008, as we had a significant working capital deficit and we had substantial losses since our inception. These and other matters raise substantial doubt about our ability to continue as a going concern. Due to our working capital deficit of ($1,187,790) at September 30, 2009, and ($1,117,600) at December 31, 2008, we are unable to satisfy our current cash requirements for any substantial period of time through our existing capital. We anticipate total operating expenditures of approximately $1,000,000 as well as contractual commitments of approximately $2,800,000, pending adequate financing over the next twelve months for general and administrative expenses. If we do not raise adequate financing to meet our obligations, we may not be able to continue as a going concern," Golden Eagle said. "Our cash balance of $5,127 as September 30, 2009, is insufficient to meet these planned expenses. In order to continue to pay our expenses, we hope to generate revenue from our contract to operate the Jerritt Canyon mill and may seek to raise additional cash by means of debt and/or equity financings. We have substantial commitments . . . that are subject to risks of default and forfeiture of property and mining rights," Golden Eagle said. The Company noted if it is unable to meet its obligations, or negotiate satisfactory arrangements, it may have to liquidate its business and undertake any or all these steps: -- Significantly reduce, eliminate or curtail business operating activities to reduce operating costs; -- Sell, assign or otherwise dispose of assets, if any, to raise cash or to settle claims by creditors; -- Pay liabilities in order of priority, if the Company has available cash to pay such liabilities; -- If any cash remains after the Company satisfies amounts due to creditors, distribute any remaining cash to shareholders in an amount equal to the net market value of the Company's net assets; -- File a Certificate of Dissolution with the State of Colorado to dissolve the corporation and close the business; -- Make the appropriate filings with the Securities and Exchange Commission so that the Company will no longer be required to file periodic and other required reports with the Securities and Exchange Commission; and -- Make the appropriate filings with FINRA to affect a de-listing of the Company's stock. Bankruptcy Warning "If we have any liabilities that we are unable to satisfy and we qualify for protection under the U.S. Bankruptcy Code, we may voluntarily file for reorganization under Chapter 11 or liquidation under Chapter 7. Our creditors may also file a Chapter 7 bankruptcy petition. If our creditors or we file for Chapter 7 or Chapter 11 bankruptcy, our creditors will take priority over our stockholders. If we fail to file for bankruptcy under Chapter 7 or Chapter 11 and we have creditors, such creditors may institute proceedings against us seeking forfeiture of our assets, if any. At the date of this filing, we have not contemplated seeking any protection in bankruptcy and have always been able to resolve our pending liabilities satisfactorily. However, we cannot guarantee that this will always be the case in the future," the Company said. "We do not know and cannot determine which, if any, of these actions we will be forced to take. If any of these foregoing events occur, investors could lose their entire investment in our shares," it added. A full-text copy of the Company's quarterly report on Form 10-Q is available at no charge at http://ResearchArchives.com/t/s?4a84 About Golden Eagle Headquartered in Salt Lake City, Utah, Golden Eagle International, Inc., (OTCBB: MYNG) is engaged in contract gold milling operations in the state of Nevada in the United States. It has also been involved in the business of minerals exploration, mining and milling operations in Bolivia through its Bolivian-based wholly owned subsidiary, Golden Eagle International, Inc. (Bolivia); however it is engaged in no operations in Bolivia at this time as certain of those operations are suspended pending changes in the social/political and mine taxing environments in Bolivia while the Company has terminated its interest in other Bolivian projects. The Company has entered into an agreement with Queenstake Resources USA, Inc., a wholly owned subsidiary of Yukon-Nevada Gold Corp., to operate the Jerritt Canyon gold mill located 50 miles north of Elko, Nevada. GOLDEN EAGLE INT'L: Reverse Stock Split to Take Effect April 15 --------------------------------------------------------------- Golden Eagle International, Inc., disclosed in a regulatory filing it believes its proposed reverse stock split will be effected on or about April 15, 2010, but will definitively disclose the effective date of the reverse stock split at a future date by appropriate announcement. The Company's shareholders approved at a special shareholders' meeting on March 23, 2010, a 1-for-500 combination of the Company's common stock. The Company expects to file an amendment to its Articles of Incorporation to cause the reverse stock split to be effected and to notify the Financial Industry Regulatory Authority of its intent to effect the reverse stock split. The reverse stock split will not be effective until the Company takes the actions required under Colorado law and by the regulatory agencies. The Company believes that the reverse stock split will be effected on or about April 15, 2010, but will definitively disclose the effective date of the reverse stock split at a future date by appropriate announcement. Once the reverse stock split is effected every 500 shares of the Company's common stock that are issued and outstanding, will automatically be combined into one issued and outstanding share without any change in the par value of such shares. No fractional shares will be issued in connection with the reverse stock split. Shareholders who are entitled to a fractional share will instead receive a whole share. The reverse split will affect all holders of the Company's common stock uniformly and will not affect any shareholder's percentage ownership interest in the Company, except to the extent the reverse split will result in any holder being granted a whole share for any fractional share that resulted from the reverse split. At the special meeting, the shareholders also approved the terms of the employment agreements between the Company and (i) Terry Turner, the Company's Chief Executive Officer, President and Chairman; and (ii) Tracy Madsen, the Company's Chief Financial Officer and Vice President - U.S. Operations. Additionally, the Company's shareholders approved the Golden Eagle International, Inc. Revised 2009 Equity Incentive Plan. On October 7, 2009, the Board of Directors adopted the Plan and granted stock options pursuant to it, which included option grants to the Company's directors and executive officers. Going Concern At September 30, 2009, the Company had total assets of $7,204,602 against $2,971,043 in total liabilities. "Our auditors issued a going concern opinion on our audited financial statements for the fiscal year ended December 31, 2008 as we had a significant working capital deficit and we had substantial losses since our inception. These and other matters raise substantial doubt about our ability to continue as a going concern. Due to our working capital deficit of ($1,187,790) at September 30, 2009 and ($1,117,600) at December 31, 2008, we are unable to satisfy our current cash requirements for any substantial period of time through our existing capital. We anticipate total operating expenditures of approximately $1,000,000 as well as contractual commitments of approximately $2,800,000, pending adequate financing over the next twelve months for general and administrative expenses. If we do not raise adequate financing to meet our obligations, we may not be able to continue as a going concern," Golden Eagle said. "Our cash balance of $5,127 as September 30, 2009, is insufficient to meet these planned expenses. In order to continue to pay our expenses, we hope to generate revenue from our contract to operate the Jerritt Canyon mill and may seek to raise additional cash by means of debt and/or equity financings. We have substantial commitments . . . that are subject to risks of default and forfeiture of property and mining rights," Golden Eagle said. The Company noted if it is unable to meet its obligations, or negotiate satisfactory arrangements, it may have to liquidate its business and undertake any or all these steps: -- Significantly reduce, eliminate or curtail business operating activities to reduce operating costs; -- Sell, assign or otherwise dispose of assets, if any, to raise cash or to settle claims by creditors; -- Pay liabilities in order of priority, if the Company has available cash to pay such liabilities; -- If any cash remains after the Company satisfies amounts due to creditors, distribute any remaining cash to shareholders in an amount equal to the net market value of the Company's net assets; -- File a Certificate of Dissolution with the State of Colorado to dissolve the corporation and close the business; -- Make the appropriate filings with the Securities and Exchange Commission so that the Company will no longer be required to file periodic and other required reports with the Securities and Exchange Commission; and -- Make the appropriate filings with FINRA to affect a de-listing of the Company's stock. Bankruptcy Warning "If we have any liabilities that we are unable to satisfy and we qualify for protection under the U.S. Bankruptcy Code, we may voluntarily file for reorganization under Chapter 11 or liquidation under Chapter 7. Our creditors may also file a Chapter 7 bankruptcy petition. If our creditors or we file for Chapter 7 or Chapter 11 bankruptcy, our creditors will take priority over our stockholders. If we fail to file for bankruptcy under Chapter 7 or Chapter 11 and we have creditors, such creditors may institute proceedings against us seeking forfeiture of our assets, if any. At the date of this filing, we have not contemplated seeking any protection in bankruptcy and have always been able to resolve our pending liabilities satisfactorily. However, we cannot guarantee that this will always be the case in the future," the Company said. "We do not know and cannot determine which, if any, of these actions we will be forced to take. If any of these foregoing events occur, investors could lose their entire investment in our shares," it added. A full-text copy of the Company's quarterly report on Form 10-Q is available at no charge at http://ResearchArchives.com/t/s?4a84 About Golden Eagle Headquartered in Salt Lake City, Utah, Golden Eagle International, Inc., (OTCBB: MYNG) is engaged in contract gold milling operations in the state of Nevada in the United States. It has also been involved in the business of minerals exploration, mining and milling operations in Bolivia through its Bolivian-based wholly owned subsidiary, Golden Eagle International, Inc. (Bolivia); however it is engaged in no operations in Bolivia at this time as certain of those operations are suspended pending changes in the social/political and mine taxing environments in Bolivia while the Company has terminated its interest in other Bolivian projects. The Company has entered into an agreement with Queenstake Resources USA, Inc., a wholly owned subsidiary of Yukon-Nevada Gold Corp., to operate the Jerritt Canyon gold mill located 50 miles north of Elko, Nevada. GOLDSPRING INC: Delays 2009 Annual Report on Form 10-K ------------------------------------------------------ Goldspring, Inc., last week failed to file its annual report on Form 10-K for the year ended December 31, 2009. In a regulatory filing, Goldspring said that its independent registered accounting firm has not yet completed its concurring partner review. Goldspring said it could not file the Form 10-K by March 31, 2010, without unreasonable effort or expense. Going Concern At September 30, 2009, the Company had total assets of $3,426,639 against total liabilities of $34,071,574, resulting in stockholders' deficiency of $30,644,935. The Company has year end losses from operations and had no revenues from operations during the nine month ended September 30, 2009. Further, the Company has inadequate working capital to maintain or develop its operations, and is dependent upon funds from private investors and the support of certain stockholders. According to Goldspring, these factors raise substantial doubt about the ability of the Company to continue as a going concern. Management is proposing to raise any necessary additional funds through sale of royalties, loans, additional sales of its common stock or strategic joint venture arrangements. There is no assurance that the Company will be successful in raising additional capital especially given the current general economic conditions domestically and abroad. About Goldspring Inc. Based in Virginia City, Nevada, Goldspring, Inc., is a North American precious metals mining company with an operating gold and silver test mine in northern Nevada. GRANT FOREST: Chapter 15 Case Summary ------------------------------------- Chapter 15 Petitioner: Alexander Morrison, Ernst & Young Inc. Debtor: Grant Forest Products Inc. 181 Bay Street, Suite 1520 Toronto, ON M5J2T3 Chapter 15 Case No.: 10-11132 Type of Business: The Debtor is a closely held Canadian maker of oriented strand board used in residential construction. Chapter 15 Petition Date: March 31, 2010 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Debtor's Counsel: Rafael Xavier Zahralddin-Aravena, Esq. Elliott Greenleaf 1105 North Market Street Suite 1700 P.O. Box 2327 Wilmington, DE 19801 Phone: (302) 384-9400 Fax: (302)384-9399 Email: rxza@elliottgreenleaf.com Total Assets: $500,000,001 to $1,000,000,000 Total Debts: $100,000,001 to $500,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. Debtor-affiliates filing separate Chapter 15 petitions: Petition Entity Case No. Date ------ -------- ---- Grant Forest Products Sales Inc. 10-11133 3/31/10 Assets: $1-mil. to $10-mil. Debts: $1-mil. to $10-mil. Grant U.S. Holdings GP 10-11135 3/31/10 Assets: $500-mil. to $1-bil. Debts: $500-mil. to $1-bil. Grant Alberta Inc. 10-_____ 3/31/10 Southeast Properties LLC 10-_____ 3/31/10 Grant Clarendon LP 10-_____ 3/31/10 Grant Allendale LP 10-_____ 3/31/10 Grant US Sales Inc. 10-_____ 3/31/10 Grant Newco LLC 10-_____ 3/31/10 Grant Excluded GP 10-_____ 3/31/10 GREENBRIER HOTEL: Owner Acquires 92.5% Stake in Glade Springs ------------------------------------------------------------- The Associated Press last week said Jim Justice, the owner of The Greenbrier, added a second exclusive West Virginia resort to his holdings, acquiring The Resort at Glade Springs. AP relates that Mr. Justice declined to disclose how much his Justice Family Group paid for a 92.5% stake in the 4,100-acre resort. Elmer Coppoolse and his EMCO Hospitality Inc. retained a 7.5% share and will manage Glade Springs, AP says. According to AP, Mr. Justice described the acquisition as a bailout after part of Glade Springs' financing dried up and Mr. Coppoolse called for help. Based in White Sulphur Springs, West Virginia, Greenbrier Hotel Corporation -- http://www.greenbrier.com/-- fka CSX Hotels, Inc., The White Sulphur Springs Co. is a wholly owned subsidiary of The Greenbrier Resort and Management Corporation, which is wholly owned by CSX Corporation. Greenbrier Hotel and its affiliates filed for Chapter 11 protection on March 19, 2009, (Bankr. E. D. Va. Lead Case No. 09-31703) Dion W. Hayes, Esq. and Patrick L. Hayden, Esq. at McGuireWoods LLP, represented the Debtors in their restructuring efforts. The Debtors employed Huddleston Bolen LLP as corporate counsel; Dinsmore & Shohl LLP as special labor counsel; Kurtzman Carson Consultants LLC as claims agent. Greenbrier listed assets of $50 million to $100 million and debts of $100 million to $500 million in its bankruptcy petition. HAM'S RESTAURANTS: Shuts Down Original Friendly Avenue Location --------------------------------------------------------------- Business Journal of the Greater Triad Area reports that Ham's Restaurants Inc. closed its original Friendly Avenue locations but kept three other Greensboro locations to remain open. The Company said due to changing demographics and economic factors, it feels it can better serve its guests at its three remaining Greensboro locations. Ham's Restaurants Inc. filed for Chapter 11 bankruptcy protection in October 2009. Ham's Restaurants operates 14 locations in North Carolina and Virginia. Founded in 1935, Ham's has several restaurants in the Triad, including the original location on Friendly Ave. in Greensboro. HEARTSOUTH PLLC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: HeartSouth, PLLC fka HubSouth Cardiology, PLLC 4 Willow Pointe Suite 1 Hattiesburg, MS 39402 Bankruptcy Case No.: 10-50787 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Southern District of Mississippi (Gulfport Divisional Office) Judge: Neil P. Olack Debtor's Counsel: Nicholas Van Wiser, Esq. Byrd & Wiser 145 Main Street P.O. Box 1939 Biloxi, MS 39533 Tel: (228) 432-8123 Fax: (228) 432-7029 E-mail: nwiser@byrdwiser.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/mssb10-50787.pdf The petition was signed by F. Alan Covin, M.D. HESAMEDDIN PAKDEL: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Joint Debtors: Hesameddin Pakdel Stephanie Gina Pakdel 18529 Aspesi Drive Saratoga, CA 95070 Bankruptcy Case No.: 10-53407 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Jose) Judge: Roger L. Efremsky Debtor's Counsel: Kari L. Silva, Esq. Campeau Goodsell Smith 440 N 1st St. #100 San Jose, CA 95112 Tel: (408) 295-9555 E-mail: ksilva@campeaulaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Joint Debtors did not file a list of creditors together with its petition. The petition was signed by the Joint Debtors. HOLLYWOOD MOTION: Files Bankruptcy Exit Plan -------------------------------------------- Jacqueline Palank at Dow Jones' Daily Bankruptcy Review reports that The Hollywood Motion Picture and Television Museum on Tuesday filed its Chapter 11 plan of reorganization before the Bankruptcy Court in Los Angeles. According to Ms. Palank, the plan: -- calls for the completion of the museum's construction; -- aims to resolve a long-running legal dispute; -- promises to pay creditors in full; and -- hopes to put Ms. Reynolds' substantial collection on public view for the first time in more than 10 years. According to Ms. Palank, the museum warned that if that plan doesn't work out, it would liquidate, hiring an auction house to sell off Ms. Reynolds' collection until enough proceeds are generated to pay creditors. Ms. Palank recalls that Ms. Reynolds first opened the museum in a Las Vegas hotel in the early 1990s, but it closed in 1997 upon the hotel's bankruptcy filing. According to Ms. Palank, Ms. Reynolds won a spot in a new Hollywood development, slated to open in 2004. However, that deal didn't pan out, as the museum's lender said it would no longer fund the museum's construction, leaving the museum unable to build its space and pay the $1.6 million bridge loan it took out from another lender, Gregory Orman. Ms. Palank relates that loan eventually became the center of legal battles between the museum and Mr. Orman, who accused the museum of defaulting on the loan. While those battles waged, the museum signed another deal to anchor Belle Island Village, a proposed resort destination in Pigeon Forge, Tennessee. That, too, met with trouble, according to Ms. Palank, and eventually construction lender Regions Bank foreclosed on the unfinished development in 2009. Ms. Palank also relates that, according to the museum, Regions Bank in January 2010 agreed to sell Belle Island Village to Tennessee Investment Partners LLC for $19.5 million in a deal slated to close by March 31. The buyer is partially owned by Tennessee-based real estate investment firm Matisse Capital LLC and by Belle Island Village's original developer. Ms. Palank says the buyer intends to reinstate the museum as the development's anchor tenant and is promising to advance the museum enough cash to cover Mr. Orman's claim, including principal, non-default-rate interest and his attorneys' fees. About Hollywood Motion Picture Creston, California-based Hollywood Motion Picture and Television Museum -- http://www.hmpc.tv/-- is a California non-profit organization that actress Debbie Reynolds founded to build a museum for her collection of Hollywood memorabilia. It owns the artifacts of Hollywood's Golden Age that Ms. Reynolds collected over several decades. The Hollywood Motion Picture and Television Museum filed for Chapter 11 bankruptcy protection on June 12, 2009 (Bankr. C.D. Calif. Case No. 09-12311). Judge Robin Riblet presides over the case. Peter Susi, Esq. -- cheryl@msmlaw.com -- in Santa Barbara, California, serves as counsel to the Debtor. In its petition, the Debtor disclosed estimated assets of $10 million to $50 million; and estimated debts of $1 million to $10 million. Hollywood Motion Picture Trust filed for Chapter 11 bankruptcy on February 24, 2010 (Bankr. C.D. Calif. Case No. 10-10864) also before Judge Riblet. Peter Susi, Esq., also serves as counsel to the Trust. In schedules filed together with the petition, the Trust disclosed total assets of $5,261,474, and total debts of $5,556,944. HONOLULU SYMPHONY: Intends to Emerge with Reduced Budget -------------------------------------------------------- Nanea Kalani at Pacific Business News in Honolulu reports that Honolulu Symphony Society said it plans to emerge as a smarter organization with a reduced budget. The company further said it is working on a plan to relaunch the organization with a smaller season or fewer concerts that meets the needs of the community. Honolulu Symphony orchestra filed for Chapter 11 on Dec. 18 in its hometown (Bankr. D. Hawaii Case No. 09-02978), saying assets are less than $500,000 while debt exceeds $1 million. Bill Rochelle at Bloomberg reports the the symphony blamed the filing on a decline in donations which left the orchestra unable to cover costs, since ticket sales represent only 30% of the budget. The symphony said it would use Chapter 11 to reorganize fundraising activities. According to UPI.com, Honolulu Symphony said it is terminating 19 of its administrative employees. HOTELS UNION: Dekabank Deutsche Asks Court to Dismiss Case ---------------------------------------------------------- Carla Main at Bloomberg News reports that Dekabank Deutsche Girozentrale is asking the U.S. Bankruptcy Court in Delaware to dismiss the Chapter 11 CASE of Hotels Union Square Mezz 1 LLC and bar it from filing again for six months because the filing was made "in bad faith." The bankruptcy petition was filed the afternoon before Dekabank was scheduled to hold a Uniform Commercial Code foreclosure sale and auction of its interests in the debtor. A hearing on a motion to dismiss hasn't been set. About Hotels Union Square Hotels Union Square Mezz 1 LLC filed for Chapter 11 bankruptcy on March 23, 2010 (Bankr. D. Del. Case No. 10-10971) to block a foreclosure auction by its mezzanine lender. Hotels Union owns the W New York Union Square hotel, located on Park Avenue South. Hotels Union, an entity controlled by an affiliate of Lubert-Adler Real Estate Funds known as LEM, said it owes its creditors between $100 million and $501 million. The Dubai World unit that purchased the hotel paid $285 million for it in 2006. LEM, a lender on the property, foreclosed on the hotel in December 2009 after the Dubai World unit missed making mortgage payments. But then DekaBank Deutsche Girozentrale announced it was going to foreclose on the property because LEM had failed to pay on its loans. As an unsecured creditor, DekaBank is owed $60 million. IMPERIAL CAPITAL: Hearing on Exclusive Periods Set for April 15 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of California will consider at a hearing on April 15, 2010, at 02:30 p.m., the extension of Imperial Capital Bancorp, Inc.'s exclusive periods to file and solicit acceptances for the proposed Chapter 11 Plan. The hearing will be held at Courtroom 2, Room 118, Weinberger Courthouse. The Debtor sought extension in its exclusive Plan filing period from April 19 to June 18, and its solicitation period from June 16 to August 15. The Debtor said that it needs additional time to negotiate plan provisions and prepare adequate information for creditors and other parties-in-interest. The Debtor is represented by: Gary E. Klausner Gregory K. Jones Stutman, Treister & Glatt Professional Corporation 1901 Avenue of the Stars, 12th Floor Los Angeles, CA 90067 Tel: (310) 228-5600 Fax: (310) 228-5788 La Jolla, California-based Imperial Capital Bancorp, Inc., filed for Chapter 11 bankruptcy protection on December 18, 2009 (Bankr. S.D. Calif. Case No. 09-19431). The Company listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. IMPEVA LABS: Files Ch. 11 to Consummate Sale of Assets to ARINC --------------------------------------------------------------- Impeva Labs, Inc., is now postured for near-term acquisition through open bid under Chapter 11. On April 1, 2010, the bankruptcy court approved on an interim basis Debtor-in-Possession financing from ARINC Engineering Services, LLC to support normal operations, product development and device production through sale closing (upon final approval, Impeva will be authorized to borrow up to $1.2 million). The court also approved certain bid procedures with respect to the submission of competitive bids. Randall Shepard, recently appointed CEO of Impeva, stated, "We are grateful for ARINC's support in these difficult times. Our primary goals through this bid process are to sustain normal operations, complete critical development, fulfill our back orders for devices, and return as much value as possible to our creditors and investors." Since incorporating in December 2004, Impeva has invested over $22 million to develop its technologies, devices, and global services infrastructure. Under the court-approved bid procedures, ARINC has been approved as the stalking-horse with its offer to acquire the intellectual property and other assets of Impeva Labs for $2 million cash plus $818,923 in assumed liabilities. To participate in the May 4th auction in San Jose, CA, interested parties must pre-qualify and submit their bid pursuant to the bid procedures no later than April 28th. To receive bid information and due diligence material, E-mail: Chapter11@Impeva.com. Also indicate if you are interested in attending a non-proprietary overview of Impeva Labs via webcast on Thursday, April 8,2010 at noon PDT. About Impeva Labs Impeva Labs, Inc. provides continuous global asset and item-level visibility (tracking, monitoring and security) using redundant global communications, advanced mesh networking and a myriad of sensors. Impeva's smarter devices contain thousands of business rules to limit operating costs through exception-only reporting. Business rules, M2M controls, and even firmware can be reliably changed via secure remote uplink. INTERNATIONAL FUEL: BDO Seidman Raises Going Concern Doubt ---------------------------------------------------------- International Fuel Technology, Inc., filed its annual report on Form 10-K for the year ended December 31, 2009. BDO Seidman, LLP, in Chicago, 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 a working capital deficit at December 31, 2009 and has cash obligations and outflows from operating activities. The Company reported a net loss of $5,366,774 on $184,851 of revenue for 2009, compared with a net loss of $5,063,768 on $149,480 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $5,242,641 in assets, $3,980,460 of debts, and $1,262,181 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e4c St. Louis, Mo.-based International Fuel Technology, Inc. is a technology company that has developed a range of liquid fuel additive formulations that enhance the performance of petroleum- based fuels and renewable liquid fuels. INTERNATIONAL LEASE: Fitch Rates $2.75 Bil. Senior Notes at 'BB' ---------------------------------------------------------------- Fitch Ratings has rated International Lease Finance Corp's $2.75 billion of senior unsecured notes 'BB' The rating for the senior unsecured debt is consistent with Fitch's earlier statements provided in releases dated March 18, 2010 and March 30, 2010. On March 22, 2010, ILFC issued $1 billion of 8.625% senior unsecured notes due 2015 and $1 billion of 8.750% senior unsecured due 2017. On March 30, 2010, ILFC additionally issued under the same indenture $250 million of the 8.625% notes and $500 million of the 8.75% notes. All of ILFC's ratings remain on Rating Watch Negative. JAMES PICKARD: Case Summary & 12 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: James E. Pickard 19121 Autumn Woods Avenue Tampa, FL 33647 Bankruptcy Case No.: 10-07723 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Sheila D Norman, Esq. Norman and Bullington, P.A. 1905 West Kennedy Blvd Tampa, FL 33606 Tel: (813) 251-6666 Fax: (813) 254-0800 E-mail: sheila@normanandbullington.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 12 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb10-07723.pdf The petition was signed by the Debtor. JEFFREY LEE: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Jeffrey W. Lee 2 Anne's Lane Siasconset, MA 02564 Bankruptcy Case No.: 10-13523 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court District of Massachusetts (Boston) Judge: William C. Hillman Debtor's Counsel: Gary W. Cruickshank, Esq. Law Office of Gary W. Cruickshank 21 Custom House Street Suite 920 Boston, MA 02110 Tel: (617) 330-1960 Fax: (617) 330-1970 E-mail: gwc@cruickshank-law.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 largest unsecured creditors together with its petition. The petition was signed by Jeffrey Lee. JOHN ROCCO: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: John A. Rocco 125 Larger Cross Road Bedmister, NJ 07921 Bankruptcy Case No.: 10-19971 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Raymond T. Lyons, Jr. Debtor's Counsel: Douglas J. McGill Law Office of Douglas J. McGill, LLC 382 Springfield Avenue, Suite 217 Summit, NJ 07901-2780 Tel: (908) 598-2510 Fax: (908) 273-9274 E-mail: dmcgill@mcgill-firm.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 together with its petition. The petition was signed by John A. Rocco. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- John A. Rocco Co., Inc. 10-18799 3/25/10 JOHN WAYNE PIZZA: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: John Wayne Pizza Company 3855 East Silver Springs Blvd #101 Ocala, FL 34470 Bankruptcy Case No.: 10-07753 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: William J Rinaldo, Esq. The Rinaldo Law Firm, PA 1102 South Florida Avenue Lakeland, FL 33803 Tel: (863) 686-7101 Fax: (863) 686-7323 E-mail: william.rinaldo@rinaldo-law.com Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Martin Conlin, vice president. JONES SODA: Posts $10.5 Million Net Loss for 2009 ------------------------------------------------- Jones soda Co. filed its annual report on Form 10-K, showing a net loss of $10.5 million on $26.0 million of revenue for 2009, compared with a net loss of $15.2 million on $35.9 million of revenue for 2008. Gross profit decreased 47% to $3.9 million for 2009, compared to $7.4 million, a year ago. This decrease was primarily as a result of a $2.2 million charge, of which $2.0 million was recorded in the fourth quarter, consisting of a $1.8 million write-down of excess GABA inventory and a $422,000 impairment of equipment located at a co-packer relating to the Company's Concentrate Soda Distribution (or CSD) channel. Operating expenses decreased 37% to $14.4 million, compared to the corresponding period a year ago and were benefited by cost containment measures undertaken over the last year, including reductions in workforce. The Company reported a net loss of $4.5 million on $4.3 million of revenue for the three months ended December 31, 2009, compared to a net loss of $3.4 million on $6.1 million of revenue for the same period of 2008. "We have strived over the last 12 months to streamline our business by reducing costs and focusing on our core glass bottle business. We have achieved improved year-over-year bottom-line results on lower case volumes, and we believe in the strength of the Jones Soda brand. However, adverse economic conditions have continued to negatively impact our liquidity and financial condition and caused us to explore strategic alternatives in an effort to enhance shareholder value. While the Board continues to conduct this process, we will continue to focus on executing our strategy, on delivering improved operating results in our core business -- Jones Soda glass bottles, including our new Zilch(TM) zero calorie offering -- and on regaining traction in our retail marketplace," commented Joth Ricci, President & Chief Executive Officer. The Company's balance sheet as of December 31, 2009, showed $13.5 million in assets, $3.4 million of debts, and $10.2 million of stockholders' equity. Deloitte & Touche LLP, in Seattle, 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, negative cash flows from operating activities, accumulated deficit, significant uncertainties in the Company's ability to meet their 2010 operating plan, and the need to obtain additional equity or debt financing, during 2010 or early 2011. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e4f A full-text copy of the press release disclosing the Company's financial results for the fourth quarter and year ended December 31, 2009, is available for free at: http://researcharchives.com/t/s?5e50 Headquartered in Seattle, Washington, Jones Soda Co. (NASDAQ: JSDA) -- http://www.jonessoda.com/-- markets and distributes premium beverages under the Jones Soda, Jones Pure Cane Soda(TM), Jones 24C(TM), Jones GABA(R), Whoopass Energy Drink(R) brands and sells through its distribution network in markets primarily across North America. KAINOS PARTNERS: Dunkin Donuts Buys Franchised Stores ----------------------------------------------------- Bill Rochelle at Bloomberg News reports that franchiser Dunkin Brands Inc. was authorized by the bankruptcy court on April 1 to buy most of the stores belonging to Kainos Partners Holding Co., the operator of 56 Dunkin' Donuts franchises when Chapter 11 reorganization began in November. According to the report, Dunkin is buying most of the stores for $3.5 million cash. There were no competing bids. The Kainos stores are in New York, South Carolina and Nevada. After the Chapter 11 filing, 15 closed. Dunkin isn't buying seven. Greer, South Carolina-based Kainos Partners Holding Company, LLC -- http://www.kainospartners.com/-- operates the "donut-and- coffee" franchises. The Company and its affiliates filed for Chapter 11 on July 6, 2009 (Bankr. D. Del. Lead Case No. 09-12292). Two of its affiliates filed for separate Chapter 11 petitions on Sept. 15, 2009 (Bankr. D. Del. Case Nos. 09-13213 to 09-13214). An affiliate filed for separate Chapter 11 petition on Sept. 23, 2009 (Bankr. D. Del. Case No. 09-13285). Attorneys at the Law Offices of Joseph J. Bodnar represent the Debtors in their restructuring efforts. The Debtor did not file a list of 20 largest unsecured creditors. In its petition, the Debtors listed assets and debts both ranging from $10 million and $50 million. KAISER ALUMINUM: Files Shelf Registration Statement for VEBA Trust ------------------------------------------------------------------ Kaiser Aluminum Corporation disclosed the filing of a shelf registration statement covering the possible sale from time to time by a voluntary employees' beneficiary association trust of up to 4,392,265 shares of Kaiser Aluminum's common stock. The shares being registered were distributed by Kaiser Aluminum to the VEBA trust when the Company emerged from chapter 11 bankruptcy in July 2006. The filing of the registration statement by Kaiser Aluminum was made in response to a demand by the VEBA trust under a registration rights agreement entered into by Kaiser Aluminum and the VEBA trust in July 2006. Pursuant to a stock transfer restriction agreement that Kaiser Aluminum entered into with the trustee of the VEBA trust in July 2006, the VEBA trust may not sell more than 1,321,485 shares of Kaiser Aluminum's common stock in any 12-month period without consent of Kaiser Aluminum's board of directors. Currently, under these restrictions, the VEBA trust is limited to the sale of 868,285 shares prior to March 24, 2011. The registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. About Kaiser Aluminum Kaiser Aluminum Corporation, headquartered in Foothill Ranch, Calif., is a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide with highly- engineered solutions for aerospace and high-strength, general engineering, and custom automotive and industrial applications. The Company's North American facilities produce value-added sheet, plate, extrusions, forgings, rod, bar and tube products. KINGS LANDING: Case Summary & 3 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Kings Landing Apartments, LLC dba Valleytree Apartments, Debtor 2513 Summer Tree Circle Arlington, TX 75242 Bankruptcy Case No.: 10-42160 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Russell F. Nelms Debtor's Counsel: Joyce W. Lindauer, Esq. Joyce W. Lindauer, Attorney at Law 8140 Walnut Hill Lane, Suite 301 Dallas, TX 75231 Tel: (972) 503-4033 Fax: (972) 503-4034 E-mail: courts@joycelindauer.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 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txnb10-42160.pdf The petition was signed by Steve Henry, Authorized representative. LEVI STRAUSS: Fitch Affirms Issuer Default Rating at 'BB-' ---------------------------------------------------------- Fitch Ratings has affirmed Levi Strauss & Co.'s ratings: -- Issuer Default Rating at 'BB-'; -- $750 million Bank Credit Facility at 'BB+'; -- Senior unsecured notes at 'BB-'; -- Senior unsecured term loan 'BB-'. The Rating Outlook is Stable. Approximately $1.73 billion of senior unsecured debt and the bank credit facility is affected by these actions. The ratings reflect LS&CO's considerable liquidity and minimal debt maturities coupled with its strong shares in key markets, well known brand names and wide geographic diversity. The ratings also encompass Fitch's expectations that free cash flow will be negative or minimal in the next two fiscal years due mainly to increased benefit plan contributions and higher levels of brand support. Of concern are potential changes in the ownership structure as Levi's voting trust agreement expires on April 15, 2011. The company is owned by the descendants of Levi Strauss who deposited their shares into a voting trust when the company went private in 1996. The trust transferred the voting power of the shares to four voting trustees. There is also a stockholders agreement dated April 15, 1996, which expires five years after the voting trust agreement in order to permit an orderly transition from effective control by the voting trustees to direct control by the stockholders. At Feb. 1, 2010, there were 199 holders of voting trust certificates. Since the company went private in 1996 its revenues have declined from approximately $6 billion to the $4 billion range. There were no dividends paid until fiscal year 2008 (FY08) to the family shareholders as the company was focused on debt reduction and operations. Fitch notes that the expiration of the trust does not constitute a change of control for bondholders and lenders but other actions such as an IPO involving more than 35% of the total voting power or leveraging transactions that could potentially take place may have rating implications. Given the economy and a tough apparel market, LS&CO performed well during its fiscal year ending Nov. 29, 2009. Net sales were down 6.5% to $4 billion. Much of the shortfall was due to negative foreign exchange, several customer bankruptcies that occurred later in the prior fiscal year and some fall off in volume on the Dockers and Signature brands. However, these were partially offset by volume growth in the U.S. jeans category which The NPD Group reported was up 3.5% in 2009. New stores also provided some volume growth. LS&CO's revenues have settled at the $4 billion level but there should be some growth in 2010 given that the US$ has generally weakened and new retail stores opened in late FY09 are expected to contribute an additional $200 million revenues. Operating income was down 28% or $150 million to $383 million much of which was attributable to foreign exchange and lower revenues over relatively flat SG&A dollars. Therefore, the company's operating margins declined 280 basis points to 9.5%. Margins will continue to be pressured in 2010 as the company plans additional brand and global expansion spending but should improve in 2011 and beyond. As with most companies in the recent downturn, significant contribution from positive working capital led to very strong operating cash flow with free cash flow of $286 million the highest in at least 10 years. As a result, the company was able to fund $100 million in acquisitions, pay $73 million in scheduled debt amortization, and $20 million in dividends with cash increasing by $60 million to $271 million. FCF is not expected to be as robust going forward. Specifically, due to poor market performance in 2008 and a much lower discount rate in 2009, after contributing just $18 million to its pension plan in the past two years LS&CO estimates that it will contribute $42 million to its pension plans in 2010. Further, its current estimates indicate that its future annual funding requirements may increase to as much as $140 million in 2011. Additionally, there is a bulge in capital expenditures in 2010 to $166 million from under $100 million in the past four years as the company invests in its European SAP roll-out, continues its retail build-out and remodels its headquarters. CAPEX should decline from 2010 levels going forward. Given the near term but relatively temporary increased demands for cash, FCF is expected to be negative in 2010. LS&CO's ample liquidity is a key strength. At FY09 the company had $244 million in credit availability under its revolver and $271 million in cash for a total of almost $514 million. There are no debt maturities until 2013. As a result, despite larger than normal requirements for cash for capital expenditures and post-retirement plans LS&CO should be able to fund these demands with minimal increases in debt. LS&CO ended the year with debt balances flat at $1.86 billion. Leverage (total adjusted debt/operating EBITDAR) increased to 5 times from 3.1x given the pressure on operating margins but is expected to track below this level in the medium term. The company's metrics remain solid for the rating. MACATAWA BANK: Crowe Horwath Raises Going Concern Doubt ------------------------------------------------------- Macatawa Bank Corporation filed on March 30, 2009, 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 Company's ability to continue as a going concern. The independent auditors noted that the Company incurred significant net losses in 2009 and 2008, primarily from higher provisions for loan losses and expenses associated with the administration and disposition of non-performing assets at its wholly owned bank subsidiary Macatawa Bank. The Bank is under a regulatory Consent Order that requires among other items, higher levels of regulatory capital. At December 31, 2009, the Bank was below the stated regulatory capital levels and is not expected to be in compliance with the regulatory capital requirements of the Consent Order within the time frame established under the Consent Order. The Company reported a net loss of $63.6 million on $52.8 million of net interest income for 2009, compared with a net loss of $38.9 million on $58.1 million of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $1.830 billion in assets, $1.742 billion of liabilities, and $88.0 million of stockholders' equity. At December 31, 2009, the Company had net loans of $1.456 billion and deposits of $1.416 billion. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e79 Holland, Mich.-based Macatawa Bank Corporation is a bank holding company. Its wholly owned subsidiary, Macatawa Bank, offers commercial and personal banking services through its 26 branch offices and a lending and operation service facility in Kent County, Ottawa County, and northern Allegan County, Michigan. MACROSOLVE INC: Hood Sutton Raises Going Concern Doubt ---------------------------------------------------- MacroSolve Inc. filed on March 30, 2010, its annual report on Form 10-K for the year ended December 31, 2009. Hood Sutton Robinson & Freeman CPAs, P.C., 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 net capital deficiency. The Company reported a net loss of $1,849,662 on $951,734 of revenue for 2009, compared with a net loss of $1,049,874 on $2,698,469 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $1,666,073 in assets and $2,209,783 of debts, for a stockholders' deficit of $543,710. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e7e Tulsa, Okla.-based MacroSolve, Inc. is a technology and services company that develops mobile solutions for businesses and government. A mobile solution is typically the combination of mobile handheld devices, wireless connectivity, and software that streamlines business operations resulting in improved efficiencies and cost savings. MARSHALL ASMAR: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Marshall A. Asmar 15 Joanne Drive Milford, CT 06460 Bankruptcy Case No.: 10-30972 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court District of Connecticut (New Haven) Judge: Lorraine Murphy Weil Debtor's Counsel: Peter L. Ressler, Esq. Groob Ressler & Mulqueen 123 York Street, Ste 1B New Haven, CT 06511-0001 Tel: (203) 777-5741 Fax: (203) 777-4206 E-mail: ressmul@yahoo.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ctb10-30972.pdf The petition was signed by the Debtor. MEDICAL CONNECTIONS: De Meo Young Raises Going Concern Doubt ------------------------------------------------------------ Medical Connections Holdings, Inc., filed its annual report on Form 10-K, showing a $7,711,887, on $6,131,611 of revenue for 2009, compared with a net loss of $7,542,210 on $7,066,990 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $2,489,841 in assets, $214,290 of debts, and $2,275,551 of stockholders' equity. De Meo, Young, McGrath, CPA, in Fort Lauderdale, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted of the Company's dependence on outside financing, lack of sufficient working capital, and recurring losses from operations. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e7c Boca Raton, Fla.-based Medical Connections Holdings, Inc. provides medical recruitment and staffing services. MEGA BRANDS: Moody's Cuts Probability of Default Rating to 'D' -------------------------------------------------------------- Moody's lowered the Probability of Default Rating for Mega Brands, Inc., to D from Caa3 following the completion of its previously announced recapitalization transaction on March 30th. Its Ca Corporate Family Rating, and Caa3 ratings on secured facilities were affirmed. All of the ratings will be withdrawn in the next several days. The recapitalization transaction, which returned value to senior secured debt holders at about 70 cents on the dollar in the form of stock and cash funded with new debt, is viewed as a distressed exchange which is considered a default under Moody's definition. The Caa3 ratings on the senior secured facilities appropriately reflected the recovery rate. The last rating action for the company took place on April 17, 2009, when the CFR rating was lowered to Ca from Caa2. MEGA Brands manufactures and markets a broad line of toys and stationery and activities products. It is based in Montreal, Canada, and had sales of $339 million in 2009. MEI KNIGHT: Case Summary & 12 Largest Unsecured Creditors --------------------------------------------------------- Joint Debtors: Mei Zhou Knight Michel F. Knight 33998 Calle Vista Temecula, CA 92592 Bankruptcy Case No.: 10-19734 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Central District Of California (Riverside) Judge: Meredith A. Jury Debtor's Counsel: Robert B Rosenstein, Esq. Rosenstein & Hitzeman 28600 Mercedes St Ste 100 Temecula, CA 92590 Tel: (951) 296-3888 Fax: (951) 296-3889 E-mail: robert@rosenhitz.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Joint Debtors' list of 12 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-19734.pdf The petition was signed by the Joint Debtors. MERIDIAN RESOURCE: Adjourns Special Meeting of Shareholders ----------------------------------------------------------- The Meridian Resource Corporation has adjourned its special meeting of shareholders to a date to be announced. The location of the meeting has not been determined at this time. The special meeting had been called to consider and vote on a proposal to adopt the Agreement and Plan of Merger, dated as of December 22, 2009, by and among Meridian, Alta Mesa Holdings, LP and Alta Mesa Acquisition Sub, LLC. The Board of Directors of Meridian Resource unanimously recommends that shareholders vote "FOR" the proposed merger with Alta Mesa Holdings. The record date for shareholders entitled to vote at the meeting remains February 8, 2010. Shareholders are encouraged to read Meridian's definitive proxy materials in their entirety as they provide, among other things, a detailed discussion of the process that led to the proposed merger and the reasons behind the Board of Directors' unanimous recommendation that shareholders vote FOR the proposal to adopt the merger agreement. The adoption of the merger agreement requires the affirmative vote of the holders of at least two- thirds of the outstanding shares of common stock entitled to vote. A failure to vote will have the same effect as a vote "AGAINST" the adoption of the merger agreement. If the merger is not completed, Meridian may be forced to seek protection under federal bankruptcy laws. Additional Information Regarding the Merger The proposed merger is being submitted to Meridian's shareholders for their consideration, and Meridian has filed a proxy statement to solicit shareholder approval of the proposal to adopt the merger agreement, as well as other relevant documents concerning the proposed merger, with the SEC. Meridian's shareholders are urged to read the proxy statement regarding the proposed merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they contain important information. About Meridian Resource Based in Houston, Texas, The Meridian Resource Corporation (NYSE:TMR) -- http://www.tmrc.com/-- is an independent oil and natural gas company engaged in the exploration, exploitation, acquisition and development of oil and natural gas in Louisiana, Texas, and the Gulf of Mexico. Meridian has access to an extensive inventory of seismic data and, among independent producers, is a leader in using 3-D seismic and other technologies to analyze prospects, define risk, target and complete high- potential wells for exploration and development. Meridian has a field office in Weeks Island, Louisiana. At September 30, 2009, the Company had $190,339,000 in total assets, including $18,090,000 in total current assets, against $120,634,000 in total current liabilities and $17,736,000 in asset retirement obligations. The Company noted that its default under the debt agreements, which has been mitigated in the short term by certain forbearance agreements, negatively impacts future cash flow and the Company's access to credit or other forms of capital. There is substantial doubt as to the Company's ability to continue as a going concern for a period longer than the next 12 months, the Company said. It added that it might have to seek protection under federal bankruptcy laws if it is unable to comply with the forbearance agreements or if those agreements expire. MSGI SECURITY: Issues $650,000 Promissory Notes to Investors ------------------------------------------------------------ MSGI Security Solutions, Inc., pursuant to a Subscription Agreement between the Company and various institutional investors, on March 23, 2009, issued secured convertible promissory notes in the aggregate principal amount of $650,000 and stock purchase warrants exercisable over a five-year period for up to 6,500,000 shares of common stock in a private placement. There was no acting placement agent for this transaction. The Notes have a maturity date of March 23, 2011, and will accrue interest at a rate of 10% per annum, compounded annually. Payments of principal under the Notes are not due until the maturity date and interest is due on a quarterly basis, however the Investors can convert the principal amount of the Notes into common stock of the Company, provided certain conditions are met, and each conversion is subject to certain volume limitations. The conversion price of the Notes is $0.10 per share yielding an aggregate total of possible shares to be issued as a result of conversion of 7,150,000 shares. The exercise price of the Warrants is $0.15 per share. The Company has also entered into a security agreement with the Investors in connection with the closing, which grants security interests in certain assets of the Company and the Company's subsidiaries to the Investors to secure the Company's obligations under the Notes and Warrants. In addition, the Company entered into an additional investment rights agreement, which grant each of the Investors the right to purchase additional principal amounts of secured convertible promissory notes equal to the principal amounts purchased in this original transaction. These rights are in effect for a period of up to 180 days after the date of closing of this original transaction. The issuance of the Notes and Warrants constituted a private placement and therefore was exempt from registration in accordance with Regulation D of the Securities Act of 1933, as amended. One of the Investors received a due diligence fee comprised of 5-year warrants exercisable for 500,000 shares of common stock at an exercise price of $0.01 per share. Associated closing costs, legal fees and various reimbursable expenses totaling approximately $81,000 were paid from the gross proceeds of the transaction. About MSGI Security MSGI Security Solutions, Inc. (Other OTC: MSGI) -- http://www.msgisecurity.com/-- is a provider of proprietary solutions to commercial and governmental organizations. The Company is developing a global combination of innovative emerging businesses that leverage information and technology. The Company is headquartered in New York City where it serves the needs of counter-terrorism, public safety, and law enforcement and is developing new technologies in nanotechnology and alternative energy as a result of its recently formed relationship with The National Aeronautics and Space Administration. At December 31, 2009, the Company had total assets of $1,686,924 against total liabilities, all current, of $18,153,452, resulting in stockholders' deficit of $16,466,528. In its quarterly report on Form 10-Q for the December 31, 2009 period, the Company said it has limited capital resources, has incurred significant historical losses and negative cash flows from operations and has no current period revenues. As of December 31, 2009, the Company had $1,188 in cash and no accounts receivable. The Company believes that funds on hand combined with funds that will be available from its various operations will not be adequate to finance its operations requirements and enable the Company to meet any of its financial obligations, including its payments under convertible notes and promissory notes for the next 12 months. There is substantial doubt about the Company's ability to continue as a going concern. If the Company is unable to raise additional funds, it may be forced to further reduce, or cease operations, liquidate assets, renegotiate terms with lenders and others of which there can be no assurance of success, or file for bankruptcy protection. NASHVILLE SENIOR: Appeals Panel Denies Request to Retain Venable ---------------------------------------------------------------- Bankruptcy Law360 reports that a federal appeals panel has dismissed a challenge by Nashville Senior Living LLC's official committee of unsecured creditors to a bankruptcy court's denial of its application to retain Venable LLP as counsel, finding that the denial did not constitute a final order. Nashville Senior Living, LLC, sought Chapter 11 protection (Bankr. M.D. Tenn. Case No. 08-07254) on August 17, 2008, reporting less than $1 million in assets and liabilities. Seven affiliates -- see http://is.gd/17gmrand http://is.gd/17gp9-- contemporaneously filed Chapter 11 petitions, each estimating up to $10 million in assets and up to $100 million in liabilities. Robert A. Guy, Esq., at Waller Lansden Dortch & Davis, in Nashville, represents the Debtor. NATIONAL HOME CENTERS: Stock Building Closes Purchase of Assets --------------------------------------------------------------- Stock Building Supply acquired the assets of National Home Centers, Inc., continuing Stock's strategy of strengthening and expanding operations in advance of a housing recovery. "We are pleased to complete this transaction and look forward to working with our new colleagues in central and northwest Arkansas," said Joe Appelmann, President and CEO. "Stock transformed its operating model over the past year to become a leaner, more focused organization. This process has allowed us to seize significant opportunities like National Home Centers. We will continue to explore intelligent growth options both in our core markets and elsewhere if opportunities arise." Since The Gores Group, LLC acquired a majority stake in Stock in May 2009, the company has used the downturn in new construction to restructure its operations and strengthen its finances. Targeted acquisitions like National Home Centers expand Stock's national footprint, which includes 19 markets with strong long-term growth forecasts. Dwain Newman, former Chairman and CEO of National Home Centers, stated, "Today is an exciting milestone for National Home Centers. We are proud to be part of a company with a strong financial position and a promising future. Stock has a strong record of improving its own operations despite difficult market conditions and this transaction will allow National Home Centers to realize its full capabilities. The partnership with Stock allows us to remain fully committed to serving our customers with quality products and services." Ken Greene has been appointed Market Manager for Stock's Arkansas operations. Greene has served in numerous positions within Stock including key posts in operations and sourcing. About Stock Building Supply Raleigh, NC-based Stock Building Supply is a leading supplier of building materials to professional home builders and contractors in the United States. Stock operates out of 19 markets including Washington, DC, Paradise, PA, Richmond, VA, Raleigh-Durham, NC, Charlotte, NC, Winston-Salem/Greensboro, NC, Greenville, SC, Columbia, SC, Atlanta, GA, Austin, TX, Amarillo, TX, Houston, TX, Lubbock, TX, San Antonio, TX, Albuquerque, NM, Salt Lake City, UT, Southern Utah, Northeast Idaho, and Los Angeles, CA. For more information, visit www.stockbuildingsupply.com. About National Home National Home Centers filed a voluntary petition for federal bankruptcy reorganization on December 8, 2009. Stock entered into an asset purchase agreement with National Home Centers on February 26, 2010, acting as a "stalking horse" bidder for the purchase of substantially all of the assets of National Home Centers pursuant to Section 363 of Chapter 11 of the U.S. Bankruptcy Code. On April 2, 2010, the Bankruptcy court approved the sale of the assets to Stock, and Stock completed the transaction on April 5, 2010. NEWLAND INTERNATIONAL: Moody's Cuts Sr. Secured Rating to 'B2' -------------------------------------------------------------- Moody's has downgraded to B2 from B1 the senior secured rating of Newland International Properties, Corp., and placed the rating on review for possible downgrade. This rating action reflects recent construction cost increases, which has resulted in a shortfall in the construction escrow account of approximately US$26.9 million. Under a Construction Completion Support Agreement the developers are required to replenish the construction escrow account with the shortfall within ten business days of the Independent Engineer's Evaluation Report. This report has not yet been issued. Failure by the developers to pay the required shortfall would constitute an event of default under the bond indenture resulting in the bond becoming due and payable immediately. Newland has two interest payments due this year in May and November, which the company has sufficient funds to pay through collections and the debt service reserve account. Moody's notes that Newland does have enough funds to finish construction of the project, with the additional $26.9 million shortfall relating to finishes, FF&E and OS&E categories. The project thus far has had six contract cancellations in total (three hotel condo and three residential units). There are an additional 25 potential contract cancellations, related to delinquent customers who have failed to complete their required deposit, representing approximately $13.9 million in receivables and $2.3 million in deposits. All deposits made to Newland are non-refundable. In addition, initial delivery of units has been pushed back to the end of 2010 vs. the original schedule of August 2010 due to local occupancy permit requirements as well as the rescheduling of the grand opening of the hotel to February 2011. Moody's notes that should this delay cause additional contract cancellations the rating would be further pressured. During its review Moody's will closely monitor the outcome of the construction shortfall process as well as continued progress on unit sales and the related credit implications for Newland. The rating would likely be stabilized upon successful replenishment of Newland's construction escrow account on or before the required date as well as progress of unit sales. Failure to successfully replenish the construction escrow account as well as significant additional contract cancellations would lead to at least a one-notch downgrade. Should the bond go into default as a result of non-payment of the shortfall a multiple- notch downgrade is likely. This rating was downgraded and placed on review for possible downgrade: * Newland International Properties, Corp. -- senior secured debt rating to B2 from B1 Moody's last rating action with respect to Newland was on February 10, 2009, when Moody's downgraded Newland's rating to B1 from Ba3. Newland International Properties Corp. is a sociedad an�nima organized under the laws of the Republic of Panama. Newland is a real estate development company established to develop the "Trump Ocean Club International Hotel & Tower" in Panama City, Panama. Trump Ocean Club is being developed as a multi-use luxury tower, overlooking the Pacific Ocean, with luxury condominium residences, a hotel condominium, a limited number of offices, and premier leisure amenities. Trump Ocean Club will be located on the Punta Pacifica Peninsula in Panama City, on approximately 2.8 acres (11,200 square meters) of land, including approximately 295 lineal feet (90 lineal meters) of oceanfront. Newland's ratings were assigned by evaluating factors Moody's believe 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 Newland's core industry and the company's ratings are believed to be comparable to those of other issuers of similar credit risk. NEW YORK RACING: Racing Industry Rallies for New Casino Operator ---------------------------------------------------------------- Jacqueline Palank at Dow Jones' Daily Bankruptcy Beat, citing the Daily Racing Form, reports that more than 1,000 members of the racing industry -- thoroughbred horse owners, trainers, breeders and their families -- held a two-hour rally Sunday at the New York Racing Association's Belmont Park, urging state officials to select a new casino operator. NYRA has a franchise to run tracks Aqueduct, Belmont Park and Saratoga. Ms. Palank relates that in conjunction with the rally, six horsemen boycotted Sunday's first race at Aqueduct, another track operated by NYRA, by deliberately not bringing their horses to the track on time, resulting in their horses being withdrawn from the race. As a result, they were fined $500 each by racing regulators. Ms. Palank also reports that Rick Violette, president of the New York Thoroughbred Horsemen's Association, said Monday that the rally and boycott were just the start, throwing out the possibility of heading to the state capital or holding another rally at Aqueduct. The Troubled Company Reporter on March 16, 2010, reported that the New York state licensing officials disapproved Aqueduct Entertainment Group's bid to build a casino at the Aqueduct racetrack. The TCR, citing The New York Times' City Room, reported that the office of New York Gov. David A. Paterson said AEG could not pass muster with state licensing officials and would not be awarded the lucrative contract. NY Times said a senior administration official indicated that AEG had supplied insufficient financial details for some of its investors. In other cases, the state's Lottery Division was not comfortable licensing some of AEG's investors. Had its bid been approved, according to City Room, AEG would have had to come up with a $300 million licensing fee by the end of March, money that would have helped the state's beleaguered finances. NYRA emerged from Chapter 11 protection in 2008. NYRA had settled a key dispute with the state of New York and assured itself at least 25 more years of operating the racetracks. NYRA had also secured state officials' approval to install lucrative video lottery terminals, or VLTs, at their tracks. AEG would have installed the revenue-boosting video lottery terminals. As reported by the TCR on December 22, 2009, Stephen Geffon at Queens Chronicle said NYRA may run out of money by summer 2010 if the state does not select a bidder to construct and operate the Aqueduct video lottery terminals. NYRA president Charles Hayward blamed the 10% decline in wagering at Aqueduct this year for NYRA's running out of cash, Queens Chronicle noted. Mr. Hayward said half of the $30 million from the state to keep it operating until the Aqueduct's VLT became operation has been depleted. On Wednesday, Ms. Palank said the proposed casino deal could be back on track soon. According to Ms. Palank, Gov. Paterson last week said he expects to have a solution within a month. Citing the New York Daily News, Ms. Palank wrote that Gov. Paterson chose the bidder that was recently rejected, and officials in his administration are now at work drafting new rules to select a casino operator. About NYRA Based in Jamaica, New York, The New York Racing Association Inc. aka NYRA -- http://www.nyra.com/-- operates racing tracks in Aqueduct, Belmont Park and Saratoga. The Company filed for chapter 11 protection on Nov. 2, 2006 (Bankr. S.D.N.Y. Case No. 06-12618). Brian S. Rosen, Esq., at Weil, Gotshal & Manges LLP, Henry C. Collins, Esq., at Cooper, Erving & Savage LLP, and Irena M. Goldstein, Esq., at Dewey Ballantine LLP represented the Debtor in its restructuring efforts. The Garden City Group Inc. served as the Debtor's claims and noticing agent. The U.S. Trustee for Region 2 appointed an Official Committee of Unsecured Creditors. Edward M. Fox, Esq., Eric T. Moser, Esq., and Jeffrey N. Rich, Esq., at Kirkpatrick & Lockhart Preston Gates Ellis LLP, represented the Committee. When the Debtor sought protection from its creditors, it listed assets of $153 million and debts of $310 million. NEXSTAR FINANCE: Moody's Upgrades Corporate Family Rating to 'B3' ----------------------------------------------------------------- Moody's Investors Service upgraded the corporate family rating of Nexstar Finance Holdings, Inc., to B3 from Caa1, its probability of default rating to B3 from Caa2 and its Speculative Grade Liquidity Rating to SGL-2 from SGL-3. Moody's also assigned a B3 rating to Nexstar Broadcasting Inc.'s proposed second lien notes issuance and a Ba3 rating to its amended first lien bank credit facility. The outlook is now stable. The upgrade of the corporate family rating incorporates the better liquidity position pro forma for the transaction, which extends maturities and alleviates near term covenant compliance concerns, as well as the improved advertising outlook. Moody's anticipates Nexstar will use some of the projected stronger performance in 2010 to repay debt, better positioning the company to withstand future volatility from both election and economic cycles. Expectations for increased external liquidity from the proposed revolver and increased EBITDA over the next twelve months from both political advertising revenue and a healthier advertising environment drive the SGL upgrade. Moody's anticipates Nexstar will use proceeds from the proposed $325 million second lien notes issuance, the $75 million first lien revolver and the $100 million first lien term loan primarily to repay the existing term loan (approximately $320 million outstanding) and outstanding borrowings under the revolving credit facility (approximately $70 million outstanding). Moody's also adjusted instrument ratings in accordance with Moody's Loss Given Default methodology to incorporate the new capital structure. Default risk diminishes with the proposed transaction, and Moody's put the CFR and PDR on parity at B3, compared to the previously lower PDR (Caa2 vs Caa1 CFR), which indicated higher default risk. Specifically, the upgrade of the CFR and PDR contributed to an upgrade of the senior discount notes at Nexstar Finance Holdings, Inc., to Caa2 from Ca. Moody's expects to withdraw the B1 rating on existing first lien bank debt upon close of the transaction and repayment of this debt. A summary of the actions follows. Nexstar Finance Holdings, Inc. -- Corporate Family Rating, Upgraded to B3 from Caa1 -- Probability of Default Rating, Upgraded to B3 from Caa2 -- Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3 -- 11.375% senior discount notes due 2013, Upgraded to Caa2 from Ca, LGD adjusted to LGD6, 95% from LGD5, 84% -- Outlook, changed to stable from negative Nexstar Broadcasting, Inc. -- Senior Secured First Lien Bank Credit Facility, Assigned Ba3, LGD1, 7% -- Senior Secured Second Lien Notes, Assigned B3, LGD3, 45% -- 7% senior subordinated notes due 2014, Affirmed Caa2, LGD adjusted to LGD5, 84% from LGD4, 58% -- Outlook, changed to stable from negative Mission Broadcasting, Inc. -- Senior Secured First Lien Bank Credit Facility, Assigned Ba3, LGD1, 7% Nexstar's B3 corporate family rating incorporates its high leverage (over 10 times debt-to-EBITDA for 2009 and in the mid 8 times on a two year average basis) and modest free cash flow, which poses challenges for managing a business vulnerable to advertising spending cycles. However, Moody's anticipates Nexstar will use some of the projected strong political revenue in 2010 to permanently repay debt and to improve its capital structure to better withstand future volatility from both election and economic cycles. Good margins and unlevered cash flow generation created by Nexstar's diverse geographic footprint, continued local market focus, and leading audience share in many markets support the rating, but the company faces continued competition for advertising dollars related to media fragmentation. Nexstar's rating also benefits from its diverse network affiliations and local marketing agreement with Mission Broadcasting, which expands programming coverage and cost efficiencies. The stable outlook incorporates expectations that Nexstar's leverage will fall to approximately 7 times debt-to-EBITDA in 2010 and remain below 8 times on a two year average basis and that it will continue to generate modestly positive free cash flow. The last rating action on Nexstar was October 20, 2009, when Moody's upgraded its SGL to SGL-3 from SGL-4. Based in Irving, Texas, Nexstar Finance Holdings, Inc., owns, operates, programs or provides sales and other services to 63 television stations in 34 markets, including 16 stations through a local marketing agreement with Mission Broadcasting, Inc. The company generated revenues of approximately $250 million in 2009. NOVA BIOSOURCE: Proposes to Raise Financing by $200,000 ------------------------------------------------------- BankruptcyData.com reports that Nova Biosource Fuels filed with the U.S. Bankruptcy Court a fourth emergency motion for entry of an order authorizing entry into fifteenth amendment to the Company's debtor-in-possession credit agreement. Under the amendment, the aggregate commitment would be increased by $200,000 for a total aggregate commitment of $4 million. Nova Biosource Fuels, Inc. -- http://www.novabiosource.com-- is an energy company that refines and markets ASTM D6751 quality biodiesel and related co-products through the deployment of its proprietary, patented process technology, which enables the use of a broader range of lower cost feedstocks. Nova owns two biodiesel refineries: one in Seneca, Illinois with a nameplate capacity of 60 million gallons per year and one in Clinton, Iowa with a nameplate capacity of 10 million gallons per year. Nova Biosource Fuels, Inc., and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware on March 30, 2009. The case is In re Nova Holding Clinton County, LLC, (Bankr. D. Del. Lead Case No. 09-11081). Michael B. Schaedle, Esq., Melissa S. Vongtama, Esq., and Josef W. Mintz, Esq., at Blank rome LLP, in Philadelphia, represent the Debtors as counsel. David W. Carickhoff, Esq., at Blank Rome LLP, in Wilmington, represents the Debtors as Delaware counsel. The Debtors listed assets and debts of $10 million to $50 million each. NUMMI: Shuts Down Manufacturing at 25-Year Old Plant ---------------------------------------------------- The NUMMI auto plant completed build-out of its last car April 1 before shutting down manufacturing at the 25-year-old assembly site. "We want to thank generations of NUMMI team members whose skill and pride in their work contributed to numerous innovations in automotive assembly here in Fremont," said NUMMI President and CEO Kent Ogura. "We also want to thank Toyota for helping to retain NUMMI workers and ensure efficient production until the last day of operations at this plant. Our attention now will focus on helping to find a new owner that will re-use this site so that it continues to serve the Fremont community and the Bay Area." For 25 years, NUMMI was a venture between General Motors and Toyota. The decision to close NUMMI came after GM declared bankruptcy last year and pulled out of the venture. The last model produced at NUMMI today was a red S-grade Corolla, which will be sold to NUMMI customer Toyota. The final line-off time was 9:21 a.m. Pacific Daylight Time. NUMMI produced nearly 8 million cars and trucks throughout its 25-year history. Some team members will stay on site over the next few months to support asset sales, perform any remediation and provide security. NUMMI will endeavor to find a buyer as well as continue to work with Fremont and state officials to identify the best re-use of the site. "Over 75 percent of the acreage here at NUMMI is open space and pavement," said Mike Truax, general manager of Engineering. "The plant was operated to stringent environmental standards and received numerous environmental awards. This site is located between two major freeways on a prime parcel of Bay Area real estate and is immediately adjacent to the planned Warm Springs BART station." N.Y.C. OFF-TRACK: Four Racetracks Named to Creditors Committee -------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that New York City Off- Track Betting Corp. has an official creditors' committee with seven members. Four are racetracks. New York Racing Association Inc. is on the committee along with a labor union. About NYC OTB New York City Off-Track Betting Corporation is a public benefit corporation, which operates an off-track pari-mutuel betting system on thoroughbred and harness horse races held at all 11 race tracks located in New York State and certain race tracks located outside of the State. Since NYC OTB's inception in 1971, it has made payments of nearly $2 billion to the State horse racing industry, over $1.4 billion to New York City and nearly $600 million to the State. In 2008 alone, NYC OTB made statutory contributions in an aggregate amount of $128.6 million to the State horse racing industry, the State, the City, and other local municipalities. NYC OTB's operations are regulated by the State. NYC OTB filed for bankruptcy under Chapter 9 of the Bankruptcy Code on December 3, 2009 (Bankr. S.D.N.Y. Case No. 09-17121). Richard Levin, Esq., at Cravath, Swaine & Moore LLP, in New York, serves as the Debtor's counsel. At September 30, 2009, NYC OTB had $18,468,147 in total assets against $74,912,742 in total current liabilities, $6,982,887 in long-term liabilities, and $201,020,000 in long-term post employment benefits. N.Y.C. OFF-TRACK: New York Racing Appeals Chapter 9 Approval ------------------------------------------------------------ Carla Main at Bloomberg News reports that the New York Racing Association is appealing an order by U.S. Bankruptcy Judge Martin Glenn in Manhattan that granted the New York City Off-Track Betting Corp. permission to file for relief under Chapter 9 of the U.S. Bankruptcy Code. The NYRA had objected to the Chapter 9 petition. Although NYC OTB is a public benefit corporation, the NYRA argued that NYC OTB is ineligible for Chapter 9 because the filing lacked specific authorization from the state legislature required by bankruptcy law. About NYC OTB New York City Off-Track Betting Corporation is a public benefit corporation, which operates an off-track pari-mutuel betting system on thoroughbred and harness horse races held at all 11 race tracks located in New York State and certain race tracks located outside of the State. Since NYC OTB's inception in 1971, it has made payments of nearly $2 billion to the State horse racing industry, more than $1.4 billion to New York City and nearly $600 million to the State. In 2008 alone, NYC OTB made statutory contributions in an aggregate amount of $128.6 million to the State horse racing industry, the State, the City, and other local municipalities. NYC OTB's operations are regulated by the State. NYC OTB filed for bankruptcy under Chapter 9 of the Bankruptcy Code on December 3, 2009 (Bankr. S.D.N.Y. Case No. 09-17121). Richard Levin, Esq., at Cravath, Swaine & Moore LLP, in New York, serves as the Debtor's counsel. At September 30, 2009, NYC OTB had $18,468,147 in total assets against $74,912,742 in total current liabilities, $6,982,887 in long-term liabilities, and $201,020,000 in long-term post employment benefits. ORLEANS HOMEBUILDERS: Objects to Homeowner's Request for Trustee ---------------------------------------------------------------- Carla Main at Bloomberg News reports that Orleans Homebuilders Inc. has objected to a request by a creditor for the appointment of a Chapter 11 trustee or examiner to oversee its affairs. Last month, a motion was made by homeowner Mona F. Mustafa to appoint a trustee for Orleans. Ms. Mustafa said she paid $430,000 for her home in 2004 and has warranty claims. Prepetition, Ms. Mustafa sued the Debtors in Illinois state court on account of alleged defects in a home she purchased from the Debtors, of which defects she was apparently aware at the time of purchase. The Debtors believe Mustafa's claims are without merit and that her estimation of damages suffered, if any, is highly speculative and inflated. Ms. Mustafa's case is presently stayed. About Orleans Homebuilders Orleans Homebuilders, Inc. -- aka FPA Corporation, OHB, Parker & Lancaster, Masterpiece Homes, Realen Homes and Orleans -- develops, builds and markets high-quality single-family homes, townhouses and condominiums. From its headquarters in suburban Philadelphia, the Company serves a broad customer base including first-time, move-up, luxury, empty-nester and active adult homebuyers. The Company currently operates in these 11 distinct markets: Southeastern Pennsylvania; Central and Southern New Jersey; Orange County, New York; Charlotte, Raleigh and Greensboro, North Carolina; Richmond and Tidewater, Virginia; Chicago, Illinois; and Orlando, Florida. The Company's Charlotte, North Carolina operations also include adjacent counties in South Carolina. Orleans Homebuilders employs approximately 300 people. The Company filed for Chapter 11 bankruptcy protection on March 1, 2010 (Bankr. D. Delaware Case No. 10-10684). Cahill Gordon & Reindell LLP is the Debtor's bankruptcy and restructuring counsel. Curtis S. Miller, Esq., and Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, are the Debtor's Delaware and restructuring counsel. Blank Rome LLP is the Debtor's special corporate counsel. Garden City Group Inc. is the Debtor's claims and notice agent. The Company estimated assets and debts at $100,000,001 to $500,000,000. OXIS INTERNATIONAL: Recurring Losses Prompt Going Concern Doubt --------------------------------------------------------------- On March 30, 2010, OXIS International, Inc., filed its annual report on Form 10-K for the year ended December 31, 2009. Seligson & Giannattasio, LLP, in White Plains, N.Y., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted of the Company's significant recurring losses. The Company reported a net loss of $2,246,000 on $48,000 of revenue for 2009, compared with a net loss of $5,006,000 on $1,143,000 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $1,384,000 in assets and $7,108,000 of debts, for a stockholders' deficit of $5,724,000. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e7a Beverly Hills, Calif.-based OXIS International, Inc. is engaged in the research, development and sale of products that counteract the harmful effects of "oxidative stress." Oxidative stress refers to the situations in which the body's antioxidant and other defensive abilities to combat free radicals (a.k.a highly reactive species of oxygen and nitrogen) are overwhelmed and normal healthy balance is lost. PACIFICHEALTH LABORATORIES: Weiser LLP Raises Going Concern Doubt ----------------------------------------------------------------- PacificHealth Laboratories, Inc., filed on March 30, 2010, its annual report on Form 10-K for the year ended December 31, 2009. Weiser LLP, in Edison, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring operating losses and negative cash flows from operations. The Company reported a net loss of $1,676,124 on $7,995,194 of revenue for 2009, compared with a net loss of $1,994,353 on $7,235,991 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $2,544,091 in assets, $1,360,472 of debts, and $1,183,619 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e77 Matawan, N.J.-based PacificHealth Laboratories, Inc. is a pioneer in the development of patented protein-based nutritional products that activate biochemical pathways to enhance muscle endurance and additionally the specific peptides involved in appetite regulation. PALI HOLDINGS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Pali Holdings, Inc. 650 Fifth Avenue, 6th Floor New York, NY 10019 Bankruptcy Case No.: 10-11727 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Mark S. Indelicato, Esq. Hahn & Hessen LLP 488 Madison Avenue 14th Floor New York, NY 10022 Tel: (212) 478-7200 Fax: (212) 478-7400 E-mail: mindelicato@hahnhessen.com Scheduled Assets: $716,257 Scheduled Debts: $31,764,247 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nysb10-11727.pdf The petition was signed by Gerald Burke, director. PALLADON VENTURES: Sends Letter to Shareholders on Recent Updates ----------------------------------------------------------------- Palladon Ventures Ltd. sent a letter to its shareholders intended to provide an update to shareholders about recent developments at the Company, including the equitization of Luxor Capital's indebtedness, the revised organizational structure at Palladon Ventures Ltd., and Palladon Iron Corporation's intentions going forward. For the past year, the Company and its representatives vigorously pursued funding to repay the Luxor debt that originally matured in June 2009. The Company attempted to secure capital in the United States, Europe, Asia, and Canada. The Company met with financial investors, with strategic investors, and with logistics companies involved in the shipping and sale of iron ore. Palladon management fully appreciated the urgency of the situation, having worked through the original default and several negotiated extensions. While investors showed interest in the project, they consistently refused to purchase equity for the purpose of refunding the debt or to further fund the Company with the debt still in place, leaving Palladon with very limited financing options. On the operations front, the Company also worked diligently for the past six months to obtain agreements to ship and sell iron ore. Unfortunately, as of March 15 the Company's efforts were not successful and as of present date no such agreement exists. In addition, rail and port contracts were not executed, because such contracts would only be finalized when an off-take agreement is executed. On December 4, 2009, the Company executed a Letter Agreement that provided it the option to retire the entire Luxor debt at a significant discount prior to March 31, 2010. This agreement also provided that if the debt was not repaid at the discounted value by March 31st, then Luxor would write the debt down to $25 million and also receive a 50% interest in Palladon Iron Corporation ("PIC"). The Letter Agreement was subject to TSX Venture Exchange ("TSX-V) approval. Palladon, with assistance from its Canadian counsel, repeatedly communicated with the TSX-V during the review process. On several occasions, the Company requested to meet with the TSX-V to explain the proposed transaction and the evolution of the Agreement. The TSX-V presented the Company and its counsel with clarifying questions, which were responded to immediately. On February 18, 2010, the TSX-V informed the Company that it would not approve the Letter Agreement. This decision, reached over two months after submission, took much longer than had been expected and exacerbated an already difficult situation. Palladon worked closely with Canadian counsel to get the TSX-V to reconsider its denial of the Letter Agreement. Despite these efforts and the Company's standing offer to provide whatever information necessary, the TSX-V would not rescind its decision, which it described as final. The TSX-V denial left the Company in default once again and with no protective agreements in place. Fortunately, the Company was able to negotiate and execute a Forbearance Agreement on March 3, 2010, pursuant to which Luxor committed to "refrain from making a demand of payment of the outstanding principal amount and interest under the Term Loan and from enforcing any remedies against Palladon under the Extension Agreement" until March 15, 2010, giving the Company additional time to attempt to negotiate an alternative solution. The parties could not agree to an alternative solution, leaving Palladon in default and Luxor free to realize on its security interest, which included 100% of the shares of Palladon Iron Corporation ("PIC"). Immediately prior to the imposed March 15 deadline, Palladon was presented with two expressions of interest ("Proposals") for potential financings. One was presented the night of March 14 and the other on the morning of March 15. The Board and its counsel carefully reviewed these Proposals. Neither of the Proposals was a firm commitment nor a binding offer and each had many conditions, including due diligence periods. The Company had no assurance that the Proposals would ever yield a binding offer, and it was clear that a significant period would be required before the terms of any such offer could be determined. The Company was unable to negotiate a further forbearance with Luxor extending the deadline beyond March 15, and therefore determined that these Proposals were not viable options. After due deliberation, on March 15, 2010, the Board of Directors voted unanimously to consent to the March 15, 2010, Satisfaction and Settlement Agreement, whereby Luxor would realize on its security interest and convert its $40.55 million of indebtedness into a 78.26% interest in Palladon Iron Corporation, and Palladon Ventures Ltd. would retain a 21.74% interest in Palladon Iron Corporation. The Board believes that this approach provided the best outcome for shareholders and avoided the foreclosure proceedings or bankruptcy filing that otherwise appeared inevitable. Regardless of shareholder or regulatory approval that might have been sought and obtained (or not), Luxor had the ability to realize on its security due to the ongoing defaults under the loan agreements, and to seize all the assets that were secured (the PIC shares). Because the assets that Luxor eventually acquired were a result of these circumstances and not a sale or disposition, shareholder approval was not sought. Furthermore, the timing imposed by Luxor did not provide for sufficient time to hold a shareholder meeting. Had a shareholder meeting been held, it would not have prevented Luxor from seizing the PIC shares in exercising its remedies. The alternative scenario would have had Luxor seizing the same assets via the bankruptcy process, the likely outcome being that the Company would be left with no ongoing interest in PIC. The Board, in consultation with both its United States and Canadian counsel, carefully and thoroughly considered all available options, including the prospect of bankruptcy where shareholders would likely get no recovery. Given the numerous uncertainties, the bankruptcy path was judged an unacceptable risk. The Board acted in the best interest of shareholders to preserve the most value it could. As a result of the equitization, Luxor became the majority and controlling shareholder of Palladon Iron Corp. and its Iron Mountain properties. Palladon Ventures will actively exercise its rights as a significant minority shareholder in PIC, having voting shares, a representative on the PIC Board of Directors and pro- rata capital call rights, in addition to related minority shareholder rights. Palladon Ventures will also be the conduit for keeping investors apprised of developments at PIC. Luxor has committed to provide quarterly Iron Mountain progress updates, and timely disclosure of significant events congruent with what would be considered material at a public company. Palladon Ventures will continue to fulfill the compliance and reporting obligations required to maintain its public listing, but will reduce expenses as much as possible. The Board will be reduced from six members to three. Steve Gilbert, Dale Gilbert and John Brownlie have resigned, leaving members Jeff Clark, John Cutler and Robert Getz. Dale Gilbert has also resigned from the CEO position at Palladon Ventures to become the CEO at Palladon Iron Corporation. The Company would like to thank these men for their service and contributions. Management will now consist of John Cutler as President and Leonard Sojka as CFO. Under a greatly reduced operating budget, Palladon Ventures expects to operate with a limited physical presence. In the near term, the Company will need to raise a small amount of capital to fund the operating expenses required to remain a reporting company. Palladon Ventures and Palladon Iron remain optimistic about the future of the Iron Mountain project, which is now debt free for the first time since the earliest days of PIC. Consequently, PIC is assembling a seasoned management team, starting with Dale Gilbert. PIC has also hired financial advisors to help raise the capital necessary to advance the concentrate scenario. PIC will continue its efforts to secure a contract to ship run-of-mine ore, while also evaluating the feasibility of producing an even higher value-added product. On Behalf of the Board of Directors, John Cutler, President About Palladon Palladon Ventures Ltd. is a junior resource company and remains focused on advancing the Iron Mountain Project, an iron ore mine located west of Cedar City, Utah. * * * As reported in the Troubled Company Reporter on March 18, 2010, Palladon Ventures Ltd. disclosed the full equitization of the Luxor Loans which amounted to US$40,557,000 including principal and interest. This negotiated equitization comes as a result of Luxor Capital Partners, LP realizing on its security interest and provides for the full extinguishment of Palladon debt owed to Luxor. Given the inability of the Company to make payments of the foregoing amount when due, and in order to avoid enforcement or foreclosure which could have resulted in the transfer of ownership of all the Palladon Iron Corp. capital stock to Luxor, Luxor has agreed to accept a 78.3% interest, in full satisfaction of all amounts due under the loan agreements. Palladon Ventures Ltd. will now own 21.7% of Palladon Iron Corporation. PARK SEED: Files for Chapter 11 Bankruptcy Protection ----------------------------------------------------- Chris Trainer at The Index-Journal reports that Geo. W. Park Seed Co. together with its associated entities Park Seed Wholesale Co., and Jackson and Perkins Co. filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in the District of South Carolina. According to the report, Geo. W. Park blamed the dismal economy for the filing. The Company said it plans to develop a plan that would outline a new capital structure. Geoffrey Levy, Esq., at Levy Law Firm, represents the Debtor in its Chapter 11 effort. Geo. W. Park Seed Co. -- http://www.parkseed.com/-- sells flower seed, vegetable seed and bulbs. RAMSEY HOLDINGS: Gets Final OK to Access Prepetition Lenders' Cash ------------------------------------------------------------------ The Hon. Terrence L. Michael of the U.S. Bankruptcy Court for the Northern District of Oklahoma, in a final order, authorized Ramsey Holdings, Inc., et al., to use the cash collateral on a non- consensual basis. As of the petition date, the Debtors owed CIT Lending Services Corporation, as administrative agent and collateral agent for the prepetition lenders, the aggregate principal amount of $71,190,825 plus accrued and unpaid prepetition interest, fees, costs and other expenses. The Debtors would use the cash collateral to fund the reorganization of their businesses and to attempt to maximize the value of their assets. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the CIT and the lenders replacement liens on any and all of the Debtors' assets, subject to carve out, and a superpriority administrative claim status. The Debtors' access to the cash collateral will terminate upon the earliest to occur of: a) April 30, 2010, if the parties to that certain term sheet dated February 4, 2010, by and among the Debtors, the agent, certain of the lenders, Gridiron and AEA have not agreed to the definitive terms of the amendment documents; b) 4:00 p.m. (central time) on May 6, 2010, if the Court has not entered an order approving the disclosure statement; c) 4:00 p.m. (central time) on June 30, 2010, if the Court has not entered an order confirming the plan of reorganization; and d) other termination events. About Ramsey Holdings, Inc. Tulsa, Oklahoma-based Ramsey Holdings, Inc., filed for Chapter 11 bankruptcy protection on December 18, 2009 (Bankr. N.D. Okla. Case No. 09-13998). The Company's affiliates -- Auto Crane Company; Eskridge, Inc.; Ramsey Industries, Inc.; and Ramsey Winch Company -- also filed for Chapter 11 bankruptcy protection. John D. Dale, Esq., at Gable & Gotwals assists the Debtors in their restructuring efforts. Ramsey Holdings listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. PATHEON INC: Moody's Assigns 'B1' Rating on Senior Secured Notes ---------------------------------------------------------------- Moody's assigned a B1 rating to the proposed Senior Secured Notes offering of Patheon, Inc. and a Ba3 rating to the proposed $75 million asset-based revolver facility due 2014. At the same time Moody's affirmed the B2 Corporate Family Rating and B2 Probability of Default Ratings. The proposed $280 million notes offering will be used to refinance almost all of Patheon's existing debt and to add cash to the balance sheet. Concurrently, Moody's changed the rating outlook to stable from negative. The B2 Corporate Family Rating is constrained by the weak profitability and cash flow of the company, partly due to the underperformance of three Puerto Rico facilities acquired in 2005 (one of which was closed in 2009). The ratings are also constrained by the risks inherent in the business, including the potential loss of revenues due to generic competition, product approval delays and client repatriation of products, which have all negatively impacted operations over the past several years. Further, the significant fixed costs of the business lead to high operating leverage and margins that are extremely sensitive to revenue and product mix. These characteristics lend a measure of volatility to both revenues and profitability. The ratings are supported by the company's leading market position in the pharmaceutical contract manufacturing arena which has high barriers to entry. In addition, Moody's believe that demand from pharmaceutical companies for contract manufacturing services will be sound over the long-term. The ratings are also supported by the company's relatively modest financial leverage. Moody's also considers the strategic value that Moody's believe Patheon's operations would have to other industry participants , leading to Moody's expectation for good recovery for creditors. Moody's believes Patheon will continue to face challenges in 2010 as Puerto Rico continues to be a drag on profitability, the company incurs incremental repositioning expenses, incremental interest expense and the overall industry remains weakened by overcapacity and pricing pressure. However, the change in outlook to stable reflects Moody's belief that demand for Patheon's services is stabilizing and should improve as the year progresses. Moody's also anticipates that Patheon may benefit from increased new business, now that the distraction of the JLL litigation and uncertainty about Patheon's ownership is behind them. Further, the refinancing transaction will meaningfully improve liquidity, providing the company increased flexibility while it continues to execute its turnaround strategy and work towards sustained free cash flow generation. Moody's took these rating actions: * Assigned Ba3 (LGD3, 32%) to proposed $75 million ABL facility due 2014 * Assigned B1 (LGD3, 40%) to proposed $280 million Senior Secured notes due 2017 * Affirmed B2 Corporate Family Rating * Affirmed B2 Probability of Default Rating * Changed outlook to stable from negative * Concurrently Moody's affirmed the ratings on the existing credit facility and expects to withdraw these ratings at the close of the refinancing transaction. * Affirmed Ba3 (LGD3, 32%) on existing $75 million ABL facility due 2012 * Affirmed B1 (LGD3, 37%) on existing $150 million term loan due 2014 The last rating action on Patheon was April 21, 2008, when Moody's changed the outlook to negative from stable. Patheon Inc., headquartered in Mississauga, Canada, is a leading provider of commercial manufacturing and pharmaceutical development services of branded and generic prescription drugs to the international pharmaceutical industry. Patheon's stock is publicly traded on the Toronto Stock Exchange. For the twelve month period ended January 31, 2010, Patheon reported revenues of $662 million. PATHEON INC: S&P Affirms 'B+' Corporate Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services said that it has affirmed its 'B+' corporate credit rating on Patheon Inc. At the same time, S&P assigned its 'B+' senior secured debt rating and '4' recovery rating, indicating average (30%-50%) recovery, on the proposed $280 million senior secured notes offering. The outlook remains stable. "The ratings on Patheon Inc. reflect its weak business risk profile, highlighted by the company's continued restructuring efforts to address overcapacity and various operating issues, and thus far the inability to establish a consistent track record of positive free cash flows," said Standard & Poor's credit analyst Arthur Wong. These factors are partly offset by Patheon's well- established customer relationships, the diversity of outsourced pharmaceutical services, and the expected positive demand trends for such services. Rapid expansion, mainly via acquisitions, in the first half of the decade has made Patheon one of the largest providers of pharmaceutical development and commercial manufacturing services to pharmaceutical companies. However, missteps in integration and poor acquisitions have led to erratic operating performance and cash flow generation. Patheon, under a new management team since late 2007, has thus far been successful at restructuring its operations, shedding facilities, and focusing on organic growth and higher-margin revenues. The company closed its Carolina facility in Puerto Rico in early 2009 and sold its York Mills, Toronto, facility in April 2009, although Patheon is still operating the facility as it transfers production. The closures bring the number of Patheon manufacturing sites to 10 and improve its profits and cash flow generation through greater use of its existing facilities. Patheon just recently announced that it was further consolidating its Puerto Rico facilities, closing or selling its plant in Caguas. PHILIPPS-VAN HEUSEN: Gets Early Termination of HSR Waiting Period ----------------------------------------------------------------- Phillips-Van Heusen Corporation disclosed that, on April 2, 2010, the U.S. Department of Justice and Federal Trade Commission granted early termination of the waiting period under the Hart- Scott-Rodino Antitrust Improvements Act for PVH's proposed acquisition of Tommy Hilfiger B.V. As previously announced, PVH has entered into a definitive agreement for PVH to acquire Tommy Hilfiger, which is controlled by funds affiliated with Apax Partners, L.P., for total consideration of EUR 2.2 billion (approximately $3.0 billion) plus the assumption of EUR 100 million in liabilities. The closing of the transaction remains subject to receipt of financing and other customary conditions, including receipt of certain required foreign regulatory approvals, which PVH does not anticipate difficulty in obtaining. The transaction is expected to close during PVH's fiscal 2010 second quarter. Philips-Van Heusen Corporation, headquartered in New York, NY designs, sources, markets, licenses and distributes a broad line of dress shirts, neckwear and sportswear under owned brands including Van Heusen, Calvin Klein, IZOD and Arrow and its licensed brands including Tommy Hilfiger, Geoffrey Beene, Kenneth Cole New York and numerous other licensees. * * * Moody's Investors Service placed these ratings on review possible downgrade: * Corporate Family Rating at Ba2 * Probability of Default Rating at Ba2 * $300 million of senior unsecured notes due 2011/2013 at Ba3 POSITRON CORP: Delays Filing of 2009 Annual Report on Form 10-K --------------------------------------------------------------- Positron Corporation failed to file its annual report on Form 10-K for the year ended December 31, 2009, by the March 31 deadline. In a regulatory filing, the Company said its financial statements could not be completed within the time provided without undue burden and expense. The Company expects to file the report by April 15. On March 26, the Company filed a Form S-8 Registration Statement under the Securities Act of 1933 to register 20,000,000 shares of common stock issuable under the Company's 2010 Stock Option Plan. A full-text copy of the Form S-8 is available at no charge at: http://ResearchArchives.com/t/s?5e75 As reported by the Troubled Company Reporter on November 25, 2009, the Company said there is substantial doubt about its ability to continue as a going concern. Positron's net loss widened to $1,189,000 for the three months ended September 30, 2009, from a net loss of $265,000 for the same period a year ago. The Company reported a net loss of $2,864,000 for the nine months ended September 30, 2009, from a net loss of $3,381,000 for the same period a year ago. Revenues for the three months ended September 30, 2009, were $188,000 from $384,000 for the same period a year ago. Revenues for the nine months ended September 30, 2009, were $889,000 from $1,577,000 for the same period a year ago. At September 30, 2009, the Company had total assets of $1,123,000 against total liabilities of $7,651,000, resulting in stockholders' deficit of $6,528,000. The September 30 balance sheet showed strained liquidity: The Company had $1,090,000 in total current assets against $7,128,000 in total current liabilities. Since inception, the Company has expended substantial resources on research and development. Consequently, the Company has sustained substantial losses. Due to the limited number of systems sold or placed into service each year, the Company said revenues have fluctuated significantly from year to year and has not sold quantities that are sufficient to be operationally profitable. The Company had an accumulated deficit of $88,444,000 and a stockholders' deficit of $6,528,000 at September 30, 2009. The Company will need to increase system sales and apply the research and development advancements to achieve profitability in the future. The Company utilized proceeds of $2,159,000 from issuance of equity securities to fund operating activities during the nine months ended September 30, 2009. The Company had cash and cash equivalents of $308,000 at September 30, 2009. At the same date, the Company had accounts payable and accrued liabilities of $2,613,000. The secured convertible notes payable of $1,207,000, are also in default. In addition, debt service and working capital requirements for the upcoming year may reach beyond the Company's current cash balances. The Company plans to continue to raise funds as required through equity and debt financing to sustain business operations. The Company said there can be no assurance it will be successful in implementing its business plan and ultimately achieving operational profitability. The Company's long-term viability as a going concern is dependent on its ability to 1) achieve adequate profitability and cash flows from operations to sustain its operations, 2) control costs and expand revenues from existing or new business 3) meet current commitments and fund the continuation of its business operation in the near future and 4) raise additional funds through debt or equity financings. About Positron Based in Fishers, Indiana, Positron Corporation's operations include Molecular Imaging Devices and Radiopharmaceutical Distribution Products. The Molecular Imaging Devices portion of the business provides Positron Emission Tomography scanners and Single Photon Emission Computed Tomography cameras. Radiopharmaceutical Products offers the world's first robotic systems for distribution and delivery of radiopharmaceuticals and provides radiopharmaceutical agents used for the diagnosis of cardiac diseases. The Company's systems are used by physicians as diagnostic and treatment evaluation tools in the areas of cardiology, neurology and oncology. PRWIRELESS INC: S&P Assigns Corporate Credit Rating at 'B' ---------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'B' corporate credit rating to Guaynabo, Puerto Rico-based wireless carrier PRWireless Inc. (d/b/a Open Mobile). At the same time, S&P assigned a 'B' issue-level rating to the company's proposed aggregate $175 million senior secured credit facilities, with a `3' recovery rating, indicating S&P's expectation for 50%-70% recovery of principal in the event of a payment default. The senior secured credit facilities will be composed of a $160 million senior secured term loan with a six-year maturity and a $15 million four-year revolving credit facility. Ratings on the credit facilities are based on preliminary information and subject to review of final terms. Importantly, the ratings assume that there will be a minimum 20% headroom cushion on covenants. Net proceeds from the new term loan (S&P does not expect the revolver to be drawn at closing) will be used to repay all current debt of $106 million and to build cash. Open Mobile provided wireless service to 290,000 customers in Puerto Rico at Dec. 31, 2009. "The rating reflects significant business risk resulting from a highly competitive wireless market," said Standard & Poor's credit analyst Richard Siderman, "along with a prepay wireless model, which increases vulnerability to unfavorable trends in churn and subscriber acquisition costs; the impact of a prolonged weak economic environment in Puerto Rico; and aggressive leverage." Mitigating factors include the low cash cost per gross add and per-user parameters typical of the prepay model, growth potential from relatively low Puerto Rican wireless penetration, a technically solid network, and adequate liquidity. RADIATION THERAPY: Moody's Affirms 'B2' Corporate Family Rating --------------------------------------------------------------- Moody's Investors Services affirmed the ratings of Radiation Therapy Services, Inc., including the corporate family and probability of default rating at B2. The senior secured credit facilities are affirmed at B1. Concurrently, Moody's assigned a Caa1 rating to the company's proposed $310 million senior subordinated notes. The rating outlook was changed to stable from negative. If the proposed issuance closes as proposed, the ratings on the senior secured credit facilities will be upgraded to Ba3 to reflect the change in the capital structure. The $310 million proposed senior subordinated notes are being used to refinance the existing $175 million senior subordinated notes, pay down a portion of the existing term loan and outstandings under the revolver, and fund a pending acquisition. The change in the outlook to stable from negative incorporates Moody's expectation that Radiation Therapy's credit metrics should improve from current levels and the company's liquidity position strengthen with expected good cash flow generation and minimal revolver usage. The stable outlook also considers the near term visibility in the reimbursement environment and expectation for improvement in the company's margins. The B2 corporate family rating reflects Radiation Therapy's considerable debt leverage, limited absolute scale, as well as its concentration of revenues by payor (Medicare) and geography (Florida). The rating favorably reflects the company's competitive position as the largest pure-play national provider of radiation therapy to cancer patients and the strong underlying industry demand fundamentals. In addition, the rating reflects the sizeable equity investment contributed by Vestar and management in the 2008 leveraged buy-out transaction. These ratings/assessments were affected: * Corporate family rating, affirmed at B2; * Probability of default rating, affirmed at B2; * Proposed $310 million senior subordinated notes, assigned Caa1 (LGD5, 80%); * $60 million revolving credit facility, affirmed at B1. LGD assessment changed to LGD3, 32% from LGD3, 33%; * $347 million ($339 million outstanding) senior secured term loan affirmed at B1. LGD assessment changed to LGD3, 32% from LGD3, 33%; * Outlook changed to stable from negative. All ratings are subject to the conclusion of the proposed transaction and to the review of final documentation. The last rating action was on June 4, 2009, when the ratings outlook was changed to negative and B2 corporate family rating affirmed. Radiation Therapy's ratings were assigned by evaluating factors Moody's believe 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 of tolerance for risk. These attributes were compared against other issuers both within and outside of Radiation Therapy's core industry and the company's ratings are believed to be comparable to those other issuers of similar credit risk. Radiation Therapy is the largest owner and operator of radiation treatment facilities in the US. At December 31, 2009, the company operated 97 facilities offering radiation therapy alternatives to cancer patients ranging from conventional external beam radiation to newer, technologically advanced options. Moody's estimates that the company's revenues for 2009 were approximately $524 million. RADIATION THERAPY: S&P Affirms 'B' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services said that it revised its outlook on Fort Myers, Fla.-based Radiation Therapy Services Inc. to positive from stable and affirmed the 'B' corporate credit rating on the company. Standard & Poor's also assigned its 'CCC+' debt rating and '6' recovery rating to the company's $310 million senior subordinated notes; the recovery rating reflects a negligible (0%-10%) recovery of principal in the event of a default. S&P raised the debt ratings on the company's senior secured facility to 'BB-' from 'B+' and revised the recovery rating to '1', which reflects S&P's expectations of a very high recovery (90% to 100%) of principal in the event of default, from '2'. "The raising of the senior secured debt rating reflects the repayment of a portion of the term loan with proceeds of the subordinated notes," said Standard & Poor's credit analyst Cheryl Richer. The ratings on Radiation Therapy Services Inc. reflect the competitive and fragmented oncology market, reimbursement risk, geographic concentration, and high debt leverage. These risks outweigh the growing need of cancer treatment spurred by an aging population, the company's development of cutting edge technologies (which received more favorable reimbursement), and its leading positions in its key markets. RANDALL STEWART: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Randall Dale Stewart 24655 Regal Place Harrison Township, MI 48045 Bankruptcy Case No.: 10-50907 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Walter Shapero Debtor's Counsel: Michael Greiner, Esq. Financial Law Group, P.C. 29405 Hoover Warren, MI 48093 Tel: (586) 693-2000 Fax: (586) 693-2000 E-mail: mike@financiallawgroup.com Scheduled Assets: $750,202 Estimated Debts: $1,171,489 The Debtor did not file a list of its 20 largest unsecured creditors together with its petition. The petition was signed by Randall Dale Stewart. REGENT COMMS: Balks at Resilient Request for Equity Panel --------------------------------------------------------- As widely reported, Regent Communications Inc. is opposing Resilient Capital Management's plea for an appointment of an official committee of equity holders. Radio and Television Business report relates that Regent is arguing that Resilient Capital has "not shouldered the heavy burden to demonstrate that an equity committee is appropriate in these Chapter 11 cases, specifically not having established any likelihood that shareholders "will receive a meaningful distribution from the company's estates other than the gift from the prepetition secured lenders, and that the shareholder's interests have been vigorously represented prior to and throughout these Chapter 11 Cases. Resilient Capital's own actions may jeopardize the gift to equity that management and the board of directors fought to obtain, the report says. About Regent Communications Headquartered in Cincinnati, Ohio, Regent Communications, Inc., is a radio broadcasting company that acquires, develops, and operates radio stations. There are 47 subsidiary entities with 62 radio stations in markets in Colorado, Illinois, Indiana, Kentucky, Louisiana, Michigan, Minnesota, New York, and Texas. Regent Communications focuses on radio stations in mid-sized market that are diversified in terms of geographic location, target demographics and format in order to minimize the effects of downturns in specific markets and changes in format preferences. The Company filed for Chapter 11 bankruptcy protection on March 1, 2010 (Bankr. D. Delaware Case No. 10-10632). Michael R. Nestor, Esq., at Young Conaway Stargatt & Taylor, assists the Company in its restructuring effort. As of January 31, 2010, the Company had $166,506,000 in assets and $211,282,000 in liabilities. RHODES COMPANIES: Emerges From Chapter 11 ----------------------------------------- The Rhodes Companies, LLC, and 31 affiliated entities have emerged from bankruptcy proceedings. The companies first filed for chapter 11 bankruptcy on March 31 and April 1, 2009. The former first lien lenders of the company will now hold 100% of the equity in the new company and will continue homebuilding operations and full community operations in the Rhodes Ranch and Tuscany master- planned golf-course communities with new executive management. In addition to its homebuilding operations, the new company will now own several land parcels, including approximately 50 acres near the 215 beltway and Durango in southwest Las Vegas. The Debtors were represented by Pachulski, Stang, Ziehl and Jones, along with Larson and Stephens. A steering committee of the former first lien lenders was represented by Akin Gump Strauss Hauer and Feld, along with Kolesar and Leatham. Carwin Advisors, a national real estate advisory firm based in Dallas, served as financial advisor to the first lien steering committee. About Rhodes Companies The Rhodes Companies LLC is a private master planned community developer and homebuilder in the Las Vegas valley. The company was founded in 1991. The company and its affiliates sought Chapter 11 protection (Bankr. D. Nev. Lead Case No. 09-14778) on March 31, 2009. Zachariah Larson, Esq., at Larson & Stephens, represents the Debtors. When the Debtors filed for protection from their creditors, they estimated their assets and debts between $100 million and $500 million. RHODES COMPANIES: Dunhill Homes Assumes Certain Assets ------------------------------------------------------ Dunhill Homes has launched homebuilding operations throughout the greater Las Vegas Valley by assuming management of certain assets formerly owned by Rhodes Homes. As of April 1, Dunhill Homes began building in the Rhodes Ranch and Tuscany master-planned golf-course communities. It is also managing several high-profile commercial parcels including 50 acres near the 215 beltway and Durango in southwest Las Vegas. Dunhill Homes was selected to manage and develop the Las Vegas assets by a lender syndicate group that held the first lien on the assets pursuant to a Plan of Restructuring approved by Judge Linda Riegle in the United States Bankruptcy Court, District of Nevada. At build-out, these assets are expected to yield over 2,300 residential units, 200 of which Dunhill Homes anticipates closing in 2010. This is expected to rank Dunhill Homes among the top 10 homebuilders in the Las Vegas Valley. Dunhill Homes' leadership has significant experience in the Las Vegas Valley. The company's Chairman is Richard Dix, former Mountain West Area President for Pulte Homes based in Las Vegas. Dunhill's operations in Las Vegas will be led by Division President Don Boettcher, a homebuilding industry veteran of more than 25 years. Mr. Boettcher most recently served on the executive management team for Pulte Homes' Las Vegas division and worked with Pulte in various leadership roles throughout his career. His experience building in the Las Vegas Valley dates back to 1994. Kevin Corbett will serve as Vice President of Finance for the division. He offers many years of real estate experience in Las Vegas, including significant tenures with Centex Homes and Engle Homes. In addition, other Dunhill team members helped advise the lender steering committee during the Rhodes Homes bankruptcy proceedings over the last 12 months. "We are very excited about this opportunity," said Boettcher. "Rhodes Ranch and Tuscany are exceptional communities in outstanding locations. They are excellent examples of the high quality projects Dunhill Homes will continue to offer in the Las Vegas Valley as we pursue growth opportunities over the next few years." "The opportunity for Dunhill to enter the Las Vegas market is the culmination of a lot of hard work over the past year. We are proud to be a part of a fresh start for these exceptional real estate assets," said Boettcher. About Dunhill Homes Based in Dallas, Dunhill Homes is active in Las Vegas, Houston and Dallas. Dunhill Homes is a subsidiary of Winchester Carlisle Companies, a real estate-related holding company, which also owns Nathan Grace Real Estate, Land Commerce, Silver Pine Funds, and Carwin Advisors, a national corporate and real estate advisory firm. Carwin Advisors advised the first lien lender steering committee throughout the Rhodes Homes' bankruptcy process. About Rhodes Companies The Rhodes Companies LLC is a private master planned community developer and homebuilder in the Las Vegas valley. The company was founded in 1991. The company and its affiliates sought Chapter 11 protection (Bankr. D. Nev. Lead Case No. 09-14778) on March 31, 2009. Zachariah Larson, Esq., at Larson & Stephens, represents the Debtors. When the Debtors filed for protection from their creditors, they estimated their assets and debts between $100 million and $500 million. RICHARD SCHATZ: Prepetition Default Interest Owed to Lender ----------------------------------------------------------- WestLaw reports that up until the petition was filed, a mortgage lender was entitled to interest at the default rate on a Chapter 11 debtor's prepetition arrearage, and the debtor, in order to cure his default and reinstate the mortgage loans, had to pay the prepetition arrearage, including interest calculated at the default rate, and contractually allowed attorney fees, expenses and costs. However, once the petition was filed, the lender, as an oversecured creditor fully protected by a Code provision authorizing it to recover attorney fees and costs, was not entitled to interest at the default rate on an arrearage that the debtor proposed to cure over the life of the plan. Awarding the creditor default interest for the postpetition arrearage would go against the Bankruptcy Code's commitment to providing debtors with a "fresh start." In re Schatz, --- B.R. ----, 2009 WL 6093515, 2009 BNH 30 (Bankr. D. N.H.) (Vaughn, C.J.). Richard E. Schatz sought chapter 13 protection (Bankr. D. N.H. Case No. 07-11642) on Aug. 2, 2007, and subsequently converted his case to a chapter 11 proceeding on Nov. 27, 2007. Mr. Schatz filed his chapter 11 plan on Aug. 4, 2009, proposing to cure and reinstate three mortgage loans from Imperial Capital Bank by (1) deaccelerating the obligations owed to ICB, (2) curing the arrearage by amortizing it over forty-eight months ("the life of the Plan"), and (3) paying the claim at the original non-default contractual rate. ICB filed an objection to the Debtor's Plan (Doc. 280) contending that the Plan must pay ICB's claim at the default interest rate and provide for late charges, attorneys' fees and other charges allowed under the loan documents. On Sept. 29, 2009, the Court held a hearing on confirmation and ordered the parties to submit memoranda indicating the proper interest rate to be used under 11 U.S.C. Sec. 1123(d) and the law supporting each party's position. The Honorable Mark W. Vaughn held a continued hearing on Oct. 28, 2009, and took the matter under advisement, and holds that: (A) up until the petition was filed, the mortgage lender was entitled to interest at the default rate on the Chapter 11 debtor's prepetition arrearage, and the debtor, in order to cure his default and reinstate mortgage loans, has to pay the prepetition arrearage, including interest calculated at default rate, and contractually allowed attorney fees, expenses and costs; (B) the lender, as an oversecured creditor fully protected by the Bankruptcy Code provision authorizing it to recover attorney fees, expenses and costs is not entitled to interest at the default rate for the postpetition arrearage; and (C) the lender is entitled to reasonable postpetition costs and expenses, including attorney fees. Mr. Schatz is represented by: Carl D. Hanson, Esq. Law Offices of William Howard Dunn 221 Broad Street P.O. Box 676 Claremont, NH 03743 Telephone: (603) 543-0111 Imperial Capital Bank is represented by: John L. Allen, Esq. Law Offices of John Allen & Associates 82 Palomino Lane, #602 Bedford, NH 03110-6448 Telephone: (603) 666-9966 RJ YORK: Case Summary & 13 Largest Unsecured Creditors ------------------------------------------------------ Debtor: RJ York Park Place, LLC 8229 Maryland Avenue Clayton, MO 63105 Bankruptcy Case No.: 10-43519 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Eastern District of Missouri (St. Louis) Judge: Charles E. Rendlen III Debtor's Counsel: Pro Se Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 13 largest unsecured creditors is available for free at http://bankrupt.com/misc/moeb10-43519.pdf The petition was signed by Robert B. Kramer, managing member. ROBERT STUBBS: Case Summary & 17 Largest Unsecured Creditors ------------------------------------------------------------ Joint Debtor: Robert Byron Stubbs Kathleen Mary Stubbs 7476 Grassy Field Court Las Vegas, NV 89131 Bankruptcy Case No.: 10-15698 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Andrew J. Driggs Driggs Law Group 312 Glistening Cloud Drive Henderson, NV 89012 Tel: (702) 270-2150 Fax: (702) 270-2125 Scheduled Assets: $761,765 Scheduled Debts: $2,351,476 A list of the Company's 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/nvb10-15698.pdf The petition was signed by Robert Byron Stubbs and Kathleen Mary Stubbs. ROBERT WAYNE: Case Summary & 3 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Robert Wayne Harvey dba RNS Sound & Vision P.O. Box 533152 Harlingen, TX 78553 Bankruptcy Case No.: 10-10242 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Southern District of Texas (Brownsville) Judge: Richard S. Schmidt Debtor's Counsel: Ellen C Stone, Esq. The Stone Law Firm, P.C. 62 E Price Rd Brownsville, TX 78521 Tel: (956) 546-9398 Fax: (956) 542-1478 E-mail: ignbro@ellenstonelaw.com Estimated Assets: $500,001 to $1 million Estimated Debts: $1,000,001, to $10 million A list of the Company's 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb10-10242.pdf ROCK & REPUBLIC: Creditor Wants Case Transferred to California -------------------------------------------------------------- netDockets relates that RKF, LLC, the largest secured creditor of Rock & Republic Enterprises, Inc. and the alleged "primary reason" for the Debtors' bankruptcy filing, asked the U.S. Bankruptcy Court for the Southern District of New York to transfer the chapter 11 cases of Rock & Republic and its affiliate to the U.S. Bankruptcy Court for the Central District of California. According to netDockets, RKF asserts that the court must transfer the bankruptcy cases because Rock & Republic fails to satisfy the standard for venue to lie in the Southern District of New York. According to netDockets, RKF points out that: -- Both debtors are incorporated in California. -- Both petitions identify the "Location of Principal Assets of Business Debtor" as San Pedro, California. -- The debtors' principal place of business and mailing address identified on their filings with the California Secretary of State is located in Culver City, California. The same address is also identified as the debtors' principal place of business in an agreement entered into in connection with the loan giving rise to RKF's secured claim. -- 16 of the debtors' 25 largest unsecured creditors are based in California. Only two are located in New York. -- Three of the debtors' four secured creditors are based in California. -- Of the ten properties where one of the debtors is a tenant or sublandlord, eight are located in the Los Angeles area (the other two are located in New York). -- Rock & Republic's Chief Executive Officer is a California resident. -- Nine of 14 outstanding litigation matters listed by the Debtors in their bankruptcy court pleadings are in California courts. -- By contrast, the only "basis for the venue of the Debtors' bankruptcy cases in New York is one showroom and one office located in New York." According to the report, RKF is represented by Skadden, Arps, Slate, Meagher & Flom LLP. Based in Culver City, Rock & Republic Enterprises Inc. was a fashion brand known for its pricey designer denim and other apparel. Rock & Republic was founded in 2002 by Chief Executive Michael Ball and has become known for its edgy and sexy clothing, including premium jeans priced at $200 or more. Rock & Republic filed for Chapter 11 on April 1 (Bankr. S.D.N.Y. Case No. 10-11728). Assets were listed with a value of $81.8 million against debt totaling $38.1 million. Rock & Republic is represented by Todtman, Nachamie, Spizz & Johns, P.C. in the chapter 11 cases. ROMAINE INCORPORATED: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Romaine, Incorporated dba Koldcare 2026 Sterling Avenue Elkhart, IN 46516 Bankruptcy Case No.: 10-31486 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Northern District of Indiana (South Bend Division) Judge: Harry C. Dees, Jr. Debtor's Counsel: John S. Hosinski, Esq. 502 W. Washington South Bend, IN 46601 Tel: (574) 2323915 Fax: (574) 287-5132 Scheduled Assets: $1,490,371 Scheduled Liabilities: $13,575,848 The Debtor did not file a list of its 20 largest unsecured creditors together with its petition. The petition was signed by John Levy, president. ROCK & REPUBLIC: CIT Group Factoring Agreement to Finance Case -------------------------------------------------------------- Rock & Republic Enterprises Inc. filed for Chapter 11 on April 1 in Manhattan (Bankr. S.D.N.Y. Case No. 10-11728). According to Bill Rochelle at Bloomberg News, the Chapter 11 case is to be financed through the continuation of a factoring arrangement with an affiliate of CIT Group Inc. The report relates that the Company said it was required to file in view of an April 2 maturity of a $15 million term loan secured by intellectual property. The Company's revenue in 2009 was $97.6 million. Earnings before interest, taxes, depreciation and amortization last year was $9.8 million. Based in Culver City, Rock & Republic was a fashion brand known for its pricey designer denim and other apparel. Los Angeles Times says Rock & Republic was founded in 2002 by Chief Executive Michael Ball and has become known for its edgy and sexy clothing, including premium jeans priced at $200 or more. Assets were listed with a value of $81.8 million against debt totaling $38.1 million. Debt includes $5.7 million owing on a factoring agreement. ROTHSTEIN ROSENFELDT: Accountants Near End of One Phase of Probe ---------------------------------------------------------------- Peter Franceschina at The Florida Sun Sentinel reports that forensic accountants poring over the debris of Scott Rothstein's investment fraud are nearing the end of one phase of their sleuthing -- determining how much money flowed into the Ponzi scheme before its collapse last fall, and how much went back to investors. The report relates that bankruptcy attorneys say the fraud brought in $1.4 billion to $1.6 billion. But not all of that money was lost. Sun Sentinel says the bankruptcy lawyers haven't put a final number on the losses, but an attorney for one of the large investors estimated half of the funds confided to Mr. Rothstein appear to have gone back to investors. Scott Rothstein, co-founder of law firm Rothstein Rosenfeldt Adler PA, has been suspected of running a $1.2 billion Ponzi scheme. U.S. authorities claimed in a civil forfeiture lawsuit filed November 9, 2009, that Mr. Rothstein, the firm's former chief executive officer, sold investments in non-existent legal settlements. Mr. Rothstein pleaded guilty to five counts of conspiracy and wire fraud on January 27, 2010. Creditors of Rothstein Rosenfeldt Adler 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. RYE PROPERTIES: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Rye Properties, LLC 1601 South Waccamaw Drive Unit 113 Murrells Inlet, SC 29576 Bankruptcy Case No.: 10-02380 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court District of South Carolina (Charleston) Judge: Chief Judge John E. Waites Debtor's Counsel: Jane H. Downey, Esq. Moore Taylor & Thomas PA 1700 Sunset Blvd PO Box 5709 West Columbia, SC 29171 Tel: (803) 796-9160 E-mail: jane@mttlaw.com Estimated Assets: $0, to $50,000 Estimated Debts: $100,001 to $500,000 A list of the Company's 3 largest unsecured creditors is available for free at: http://bankrupt.com/misc/scb10-02380.pdf The petition was signed by S. Joseph Koslowski, Manager. SANDRIDGE ENERGY: Moody's Affirms 'B2' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service affirmed SandRidge Energy's B2 Corporate Family Rating, B2 Probability of Default Rating, and B3 (LGD 4; 63%) senior unsecured note ratings following its announced $1.6 billion acquisition of debt-free Arena Resources (unrated). The rating outlook remains stable. SD will issue 191 million common shares and pay $2.50 in exchange for each of Arena's 39,972,961 million fully-diluted shares. Cash compensation approximates $99.9 million. Though announced as a $1.6 billion transaction as of SD's last closing share price, SD's shares moved lower intra-day after the announcement and now value the merger at approximately $1.550 billion. Arena's oil-weighted properties are located in the midst of SD's growing Permian Basin operations. At year-end 2009, Arena held 69 mmboe of proven reserves, a low 37% of which is in the funded drilled proven developed reserve category. SD reports that Arena presently produces approximately 8,500 oil-equivalent barrels-per- day (boe per day). The acquisition moves SD's total proven developed reserves to approximately 160 mmboe, total proven reserves to approximately 280 mmboe and decreases the proportion of proven developed reserves to 57% from 63%. SD believes that Arena increases fourth quarter 2009 production to approximately 59,000 boe per day, pro- forma for both a full quarter contribution from the Permian properties bought from Forest Oil plus the Arena production. Though the acquisition is very heavily equity funded, adds important geologic and oil-weighted diversification to SD's portfolio, and strengthens SD's GAAP leverage, it does not materially reduce more important and quite elevated leverage on production and reserves. Meaningful progress on such leverage awaits SD's ability to mount production growth, relative to current or reduced debt levels, on its Arena and other Permian properties and, once Occidental Petroleum completes its Century gas processing and treatment plant, SD's CO2-laden Pinion Field properties in the West Texas Overthrust. Though the Arena acquisition is clearly credit additive, SD has been weakly positioned in its existing ratings. Accordingly, the merger simply firms SD's ratings. Production has been falling pending completion of the Century plant, leverage was already very elevated for its ratings, PD reserves declined last year, and 2009 drill bit finding and development costs, even excluding the severe negative impact of price-related reserve revisions, were extremely high. Moody's will revisit the ratings during the course of the year to assess production trends generally as well as the production response once the Century plant is completed. While unleveraged Arena adds important acreage and low risk drilling inventory to SD's durable Permian Basin operations, the proportional impact on SD is small due to Arena's comparatively small reserve base, its small funded drilled PD reserve component, and its comparatively small (but important) production component. At a $1.6 billion valuation, SD is paying a steep approximately $188,200 per current daily flowing unit of production. While the cash compensation (funded with bank debt) is a low $11,760 per boe per day of production, the production scale is insufficient to substantially improve SD's elevated leverage on production. Moody's estimates that SD's pro-forma fourth quarter 2009 leverage on production would decline to a still very high $45,731 per boe of daily production, down from $50,450 per boe in fourth quarter 2009 (pro-forma for a full quarter production from the Forest Oil properties), and $54,280 per boe for full year 2009. Leverage on PD reserves improves to $16.89/PD boe of reserves from $18.95/PD boe, and SD's fully-loaded pro-forma leverage (adding SD's and Arena's FASB 69 capital outlays to debt) on total proven reserves declines to approximately $14.93/boe from $16.17/boe of total proven reserves. The last rating action was December 9, 2009, when Moody's assigned a B3 (LGD 4; 63%) rating to SD's senior unsecured note offering and affirmed its B3 note ratings (adjusting the LGD point scores to B3 (LGD 4; 63%) from (LGD 5; 75%), B2 Corporate Family Rating and stable outlook. SandRidge Energy, Inc., is headquartered in Oklahoma City, Oklahoma. SOLYNDRA INC: PwC Raises Going Concern Doubt -------------------------------------------- PricewaterhouseCoopers LLP, following Solyndra Inc.'s financial results for the year ended January 2, 2010, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted of the Company's recurring losses from operations, negative cash flows since inception, and stockholder deficit. Solyndra reported a net loss of $172.5 million on revenue of $100.5 million in 2009, compared with a net loss of $232.1 million on revenue of $6 million in 2008. At January 2, 2010, the Company's balance sheet showed $683.2 million in assets, $254.2 million of debts, and $961.3 million in redeemable convertible preferred stock, for a stockholders' deficit of $532.3 million. In 2009 the Company obtained a $535 million loan from the Federal Financing Bank guaranteed by the U.S. Department of Energy to construct a second manufacturing facility for its rooftop solar modules. The costs of Phase I were funded from this DOE loan and from the proceeds of a prior equity financing. Borrowings under this facility mature in 2016. Solyndra Inc. in an amended registration statement on Form S-1 filed last month, disclosed that it is raising $300 million in an initial public offering of its common stock. Proceeds of the offering will be used to partly finance the costs of Phase 2 of its second manufacturing facility, which the Company estimates to be roughly $642 million. The Company has applied for a second loan guarantee from the DOE in the amount of $469 million. A full-text copy of the amended registration statement on Form S-1 is available at no charge at http://researcharchives.com/t/s?5e76 About Solyndra Inc. Fremont, Calif.-based Solyndra Inc. -- http://solyndra.com/-- is a manufacturer of cylindrical panels of copper-indium-gallium- diselenide (CIGS) thin-film solar cells. Argonaut Ventures I, L.L.C., together with its affiliates, beneficially owns roughly 35.7% of the Company's outstanding common stock on an as-converted basis. SEARS HOLDINGS: Fitch Upgrades Issuer Default Rating to 'BB-' ------------------------------------------------------------- Fitch Ratings has upgraded its long-term Issuer Default Rating on Sears Holdings Corporation and its various subsidiary entities to 'BB-' from 'B+' and has affirmed the secured bank facility at 'BB+', senior unsecured notes at 'BB', and the short-term IDR and commercial paper at 'B'. The recovery ratings which are assigned to individual securities and obligations of corporate issuers with IDRs in the 'B' rating category and below have been simultaneously removed. The Rating Outlook is Stable. The ratings are: Sears Holdings Corporation -- Long-term IDR upgraded to 'BB-' from 'B+'; -- Secured bank facility affirmed at 'BB+'. Sears, Roebuck and Co. -- Long-term IDR upgraded to 'BB-' from 'B+'. Sears Roebuck Acceptance Corp. -- Long-term IDR upgraded to 'BB-' from 'B+'; -- Short-term IDR affirmed at 'B'; -- Commercial paper affirmed at 'B'; -- Senior unsecured notes affirmed at 'BB'; Sears DC Corp. -- Long-term IDR upgraded to 'BB-' from 'B+'; -- Senior unsecured notes affirmed at 'BB'; Kmart Holding Corporation -- Long-term IDR upgraded to 'BB-' from 'B+'. The upgrade reflects Holdings' improvement in credit metrics, strong free cash flow and liquidity position backed by significant collateral. The ratings reflect Holdings' broad market presence in the moderate department store, hardline and discount retail segments and strong proprietary brands. While Holdings' credit metrics compare favorably to higher rated retail peers, with adjusted debt/EBITDAR ratio of under 4.0 times and fixed coverage of close to 2.0x, the ratings also incorporate underperformance in top line with negative domestic comparable store sales trends over the last 10 years resulting in below industry average operating profitability. The top line weakness reflects competitive pressures, inconsistent merchandising execution and the lack of clarity about its longer term retail strategy. Sears' continued allocation of cash to share buybacks at the cost of store level investments remains a concern. While domestic comparable store sales declined 5.1% in 2009, EBITDA (excluding store closing and non-cash pension expenses) improved to $1.8 billion from $1.6 billion in 2008, reflecting cost-cutting measures that offset gross profit dollar declines. Higher EBITDA combined with debt paydown of over $400 million in 2009 resulted in improved credit metrics. Adjusted debt/EBITDAR for 2009 was 3.6x versus 4.1x for 2008 but still higher than 3.0x for 2007. EBITDAR/interest plus rents improved modestly to 2.3x from 2.1x in 2008. Despite Fitch's concern regarding operating performance, leverage metrics are expected to remain within the 4.0x range. This contemplates modest pressure on EBITDA and limited debt paydown over the next three years. In addition, the company's asset base provides lenders significant credit protection. Holdings operates approximately 3,500 store locations in the U.S., of which 2,175 are big boxes (mall-based and off-mall) and over 1,300 are specialty stores (such as dealer stores, Sears and Orchard Hardware, and outlet stores). Sears and Kmart stores have been underperforming their retail peers on top line growth for many years and the combined domestic entity has lost almost $10 billion or 20% of its 2005 revenue base of $49 billion (the two companies merged in March 2005). The company's challenge will be to generate longer term sales and earnings growth at both Sears and Kmart in the face of continued market share gains by its largest retail peers within the department store, discount and big-box specialty retail segments. While Sears has been likened to a department store, its mix is more heavily weighted towards hardlines which might somewhat explain the more negative comps over the last three years. Sears' comparable store sales trends continue to be in the negative mid- single digit range and Fitch expects negative low-to-mid single digit growth in 2010. On the Kmart side, sales trends over the last few years have been disappointing as the retailer has lost share to Wal-Mart and Target even as the discount category continues to take overall retail share. However, recent comparable store sales trends indicate stabilization in the Kmart business and Fitch expects flat to modest growth in 2010. Weakness in top line has resulted in operating margins that significantly lag its peers. This is in spite of the company undertaking aggressive cost cutting measures over the last three years which resulted in $1.2 billion reduction in domestic selling and administrative expenses. Sears domestic EBITDA margin, at 3.5% in 2009, has been tracking 600 basis points lower on average over the last three years compared to its largest retail peers in the discount, department and hardline retail categories. Given chronic underinvestment in the stores due to years of cost cutting and low level of capital expenditures and the lack of a well articulated strategy to stop market share losses, Fitch expects the high differential will likely continue. However, current liquidity remains strong, supported by a cash balance of $1.7 billion (with domestic cash of $400 million) and $1.6 billion of availability remaining under its credit facility at the end of 2009 (pro forma for the credit facility reducing to a $2.4 billion tranche due June 2012 after the $1.7 billion tranche matured on March 24, 2010). The credit facility should be adequate to support peak working capital needs in 2010. Holdings has paid down $2.6 billion of unsecured debt (SRAC, SDC and other notes and mortgages) over the last five years to a level below $1 billion in 2009. Total consolidated debt at the end of 2009 stood at $2.5 billion. Given the significant debt paydown, Fitch expects limited pay down of domestic debt going forward. Upcoming domestic maturities include the $120 million of Orchard mortgage loan in 2010, and approximately $425 million and $130 million (includes $23 million in SDC debt) of SRAC debt in 2011 and 2012, respectively. Post 2012, there are less than $50 million in term maturities through 2028. In addition to domestic debt, Sears Canada has $281 million of term debt which is scheduled to mature this year. Fitch expects this maturity can be paid down given significant cash holdings at Sears Canada. Fitch expects Sears to generate strong free cash flow in 2010 although at levels closer to 2008 when free cash flow was $0.5 billion rather than the $1.1 billion generated in 2009 due to significant working capital reduction. Pension contributions (included in free cash flow calculations) could be a significant source of cash drain over the next few years with a domestic underfunded liability of $1.8 billion or a funded status of 67%. Holdings contributed $170 million to domestic pension plans in 2009 and expects current cash contributions to be $275 million in 2010 and $535 million in 2011. In addition, Sears could continue to pursue shareholder friendly activities; as of Jan. 30, 2010, Sears had $581 million of remaining authorization. The company has bought back $5.4 billion in stock over the past five years. The 'BB+' rating of Holdings' $2.4 billion secured revolver, under which SRAC and Kmart are the borrowers, reflects a downstream guarantee from Holdings to both SRAC and Kmart and cross- guarantees between SRAC and Kmart as well as significant collateral. The facility is secured primarily by domestic inventory which ranges from $7 billion to $9 billion around peak levels in November, and pharmacy and credit card receivables which range from $650 million to $700 million. The credit facility has an accordion feature that enables the company to increase the size of the credit facility or add a first lien term loan tranche in an aggregate amount of up to $1 billion. The company can also issue up to $2 billion in second-lien debt subject to certain conditions. The credit agreement imposes various requirements, including (but not limited to) these: (1) if availability under the credit facility is beneath a certain threshold, the fixed charge ratio as of the last day of any fiscal quarter be not less than 1.0 to 1.0 (2) a cash dominion requirement if excess availability on the revolver falls below designated levels, and (3) limitations on its ability to make restricted payments, including dividends and share repurchases. Sears also agreed to limit the amount of cash accumulated when borrowings are outstanding under the credit facility. The 'BB' ratings of SRAC's senior notes reflect a guarantee provided by Sears. In addition, Sears DC Corp. benefits from an agreement by Sears to maintain a minimum fixed-charge coverage at SDC of 1.005x. Sears also agrees to maintain an ownership of and a positive net worth at SDC. Based on the company's assets (relative to secured debt), Fitch views there is adequate collateral to back unsecured debt at SRAC and SDC. SHR INVESTS: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------- Debtor: SHR Invests Corporation dba Grand Harbor Shoppes 16915 Old Richmond Road Sugar Land, TX 77498 Bankruptcy Case No.: 10-32628 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Karen K. Brown Debtor's Counsel: Alexander B Wathen, Esq. Wathen & Associates 10333 Northwest Freeway, Suite 503 Houston, TX 77092 Tel: (281) 999-9025 Fax: (713) 758-0330 E-mail: wathenecf@gmail.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 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb10-32628.pdf The petition was signed by Shahzadeh H. Ramji, Secretary SUN COUNTRY: Owner Petters Aviation to Become Owner Under Plan -------------------------------------------------------------- Suzanne Ziegler at Star Tribune reports that Sun Country Airlines filed a plan of reorganization, wherein major creditors including owner Petters Aviation become shareholders. Smaller creditors are expected to receive 20 cents on the dollar under the plan. According to Ms. Ziegler, the Company has eliminated unprofitable markets. It also began charging for baggage and food in coach and started the full-service Sun Country Vacations and is adding summer flights to London. About Sun Country Airlines Sun Country Airlines (MN Airlines, LLC, d.b.a. Sun Country Airlines) -- http://www.SunCountry.com/-- is based in St. Paul, Minnesota. The airline flies to popular destinations in the U.S., Mexico and the Caribbean. Sun Country Airlines and its debtor-affiliates Petters Aviation LLC and MN Airline Holdings Inc. filed separate petitions for Chapter 11 relief on Oct. 6, 2008 (Bankr. D. Minn. Lead Case No. 08-45136). Brian F. Leonard, Esq., Matthew R. Burton, Esq., at Leonard O'Brien et al., represented the Debtors as counsel. When Petters Aviation LLC filed for protection from its creditors, it listed assets of $50 million and $100 million, and the same range of debts. SYNTAX-BRILLIAN: Court Denies Motion to Revoke Confirmation Order ----------------------------------------------------------------- The Hon. Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware denied Charles M. Cerny, et al.'s motion to revoke the confirmation order for Syntax-Brillian. The Court said that the allegations of fraud upon the Debtors and the assertion of causes of action do not directly translate into a determination that the confirmation order was procured by fraud. Based in Tempe, Arizona, Syntax-Brillian Corporation (Nasdaq:BRLC) -- www.syntaxbrillian.com -- manufactures and markets LCD HDTVs, digital cameras, and consumer electronics products include Olevia(TM) brand high-definition widescreen LCD televisions and Vivitar brand digital still and video cameras. Syntax-Brillian is the sole shareholder of California-based Vivitar Corporation. The company and two of its affiliates -- Syntax-Brillian SPE, Inc., and Syntax Groups Corp. -- filed for Chapter 11 protection on July 8, 2008 (Bankr. D. Delaware Lead Case No.08-11409 through 08-11409. Dennis A. Meloro, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig LLP, represent the Debtors in their restructuring efforts. The U.S. Trustee for Region 3 has yet to appoint creditors to serve on an Official Committee of Unsecured Creditors. When the Debtors filed for protection against their creditors, they listed total assets of $175,714,000 and total debts of $259,389,000. TELKONET INC: Reports Net Income of $1,059,837 in 2009 ------------------------------------------------------ Telkonet, Inc., filed its annual report on Form 10-K, showing net income of $1,059,837 on $10,518,053 of revenue for 2009, compared with a net loss of $23,985,539 on $16,559,001 of revenue for 2008. The Company had net income from discontinued operations of $6,296,851 for 2009, compared to net loss from discontinued operations of $7,905,302 for 2008. Net income from discontinued operations for 2009 includes a gain on deconsolidation of the Company's subsidiary, MSTI Holdings, Inc., of $6,932,586, offset by MSTI's net loss of $635,735 through the date of deconsolidation of April 22, 2009. The Company's balance sheet as of December 31, 2009, showed $16,295,131 in assets, $9,075,117 of debts, $732,843 of redeemable preferred stock, and $6,487,171 of total equity. RBSM LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's signifant operating losses in the current year and in the past. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e73 Milwaukee, Wis.-based Telkonet, Inc. is a clean technology company that develops and manufactures proprietary energy efficiency and smart grid networking technology. THOMAS HURLBUT: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Joint Debtors: Thomas Scott Hurlbut Christina Ann Hurlbut 23846 Via Segovia Murrieta, CA 92562 Bankruptcy Case No.: 10-19688 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Central District Of California (Riverside) Judge: Thomas B. Donovan Debtor's Counsel: John O'Connell, Esq. 42690 Rio Nedo Temecula, CA 92590 Tel: (951) 296-5493 Fax: (951) 639-6063 Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company says that assets total $376,800 while debts total $1,044,851. A copy of the Joint Debtors' list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-19688.pdf The petition was signed by the Joint Debtors. THOMAS RAYMAN: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Thomas F. Rayman 2937 Taylor Way Tracy, CA 95377 Bankruptcy Case No.: 10-28449 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Thomas Holman Debtor's Counsel: David C. Johnston, Esq. 1014 16th St PO Box 3212 Modesto, CA 95353 Tel: (209) 521-6260 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/caeb10-28449.pdf The petition was signed by the Debtor. TITAN ENERGY: UHY LLP Raises Going Concern Doubt ------------------------------------------------ Titan Energy Worldwide, Inc., filed on March 31, 2010, its annual report on Form 10-K for the year ended December 31, 2009. UHY LLP, in Southfield, Mich., 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 accumulated deficit. The Company reported a net loss of $2,892,125 on $10,626,919 of revenue for 2009, compared with a net loss of $1,724,104 on $7,883,347 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $5,241,862 in assets, $3,724,108 of debts, and $1,517,754 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e4e Brighton, Mich.-based Titan Energy Worldwide, Inc. is a provider of onsite power generation, energy management and energy efficiency products and services. TARRAGON CORP: Westminster Wants Repayment of Matured DIP Loan -------------------------------------------------------------- Westminster DIP Funding LLC asks the U.S. Bankruptcy Court for the District of New Jersey to direct Tarragon Corp., et al., to repay the matured Westminster DIP credit facility by: (i) making an immediate substantial cash payment from its cash reserves, which upon information and belief, exceed $3 million; and (ii) liquidate other asset in order to satisfy their obligations to Westminster. Westminster said that in the interim, the $4,510,000 DIP credit facility matured on January 22, 2010, and therefore, is due and payable in full. Based in New York City, Tarragon Corporation (NasdaqGS:TARR) -- http://www.tarragoncorp.com/-- is a leading developer of multifamily housing for rent and for sale. Tarragon's operations are concentrated in the Northeast, Florida, Texas, and Tennessee. Tarragon and its affiliates filed for Chapter 11 protection on January 12, 2009 (Bankr. D. N.J. Case No. 09-10555). The Hon. Donald H. Steckroth presides over the case. Michael D. Sirota, Esq., Warren A. Usatine, Esq., and Felice R. Yudkin, Esq., at Cole Schotz Meisel Forman & Leonard, P.A. TRUMP ENTERTAINMENT: Icahn Now Owns Whole Mortgage on Casinos ------------------------------------------------------------- The Associated Press reports that Carl Icahn has bought the remaining half of the $500 million mortgage on the three Trump Entertainment Resorts casinos he's trying to buy out of bankruptcy. Icahn also won a $10 million interest payment in the Transaction, AP said. Mr. Icahn, who previously owned 51% of the mortgage issued by Dallas-based Beal Bank, agreed last week to buy the remaining 49% at a 7.5% discount. Mr. Icahn wants to convert the mortgage into ownership of the casinos. The U.S. Bankruptcy Court for the District of New Jersey will decide by mid-April who gets Trump Entertainment Resorts Inc. -- Carl Icahn or bondholders led by Avenue Capital Management. About Trump Entertainment 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. TSG INC: Asks for 90-Day Extension of Exclusivity Periods --------------------------------------------------------- TSG Incorporated has asked the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to extend by 90 days the exclusivity periods during which the Debtor may file and solicit acceptances of its plan of reorganization. The exclusivity periods under which the Debtor has sole ability to file a Plan and solicit acceptances thereof will expire on March 29, 2010, and May 28, 2010, respectively (the Exclusive Periods). The Debtor asks that the exclusivity period for the filing of plan of reorganization be extended until June 28, 2010, and that the exclusivity period to solicit votes in favour of the plan be extended until August 26, 2010. In addition to the complexity of operating a geographically dispersed business, the Debtor must also deal with a complete business operation involving manufacturing in several industries. According to the Debtor, any plan will involve one or more complex transactions that include the sale, lease and/or licensing of some of the Debtor's property, possibly in a transaction involving international entities. The Debtor says that it has so far identified five opportunities, and during the past several months has engaged in dialogue with respect to these opportunities. In the coming weeks, the Debtor expects the dialogue to continue. The Debtor believes that this dialogue will yield one or more transactions involving the sale, licensing, and/or lease of some, but not all, of its property and expects that those transactions will generate sufficient revenue to fund the Debtor's exit from bankruptcy. The Debtor expects, and creditor PNC Bank, National Association, has requested, as condition to the consensual use of cash collateral, that the Debtor file a plan of reorganization not later than May 14, 2010. North Wales, Pennsylvania-based TSG Incorporated operates a real estate business. Founded in 1901 under the name of Levy's International Water Shrinking and Drying Company, the Debtor has operated as a privately held, family owned business for over 108 years. Locally headquartered in North Wales, Pennsylvania, the Debtor is in the business of fabric finishing, coating and embossing. TSG -- which is an acronym for "The Synthetics Group" -- is one of the largest commission finishers in the United States. The Company filed for Chapter 11 bankruptcy protection on November 29, 2009 (Bankr. E.D. Pa. Case No. 09-19124). Michael Jason Barrie, Esq., at Benesch Friedlander Coplan & Aronoff 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. VERECIA GLADIE: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Verecia Gladie 4404 Collwood Lane San Diego, CA 92115 Tel: (619) 255-6082 Bankruptcy Case No.: 10-05447 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Judge: Louise DeCarl Adler Debtor's Counsel: Samuel A Sue, Esq. Law Office of Samuel A. Sue 310 3rd Ave., Suite B-1 Chula Vista, CA 91910 Tel: (619) 475-4368 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 creditors together with its petition. The petition was signed by the Debtor. US ANTIMONY: Swings to $294,843 Net Loss in 2009 ------------------------------------------------ United States Antimony Corporation filed its annual report on Form 10-K, showing a net loss of $294,843 on $2,567,107 of revenue for 2009, compared with net income of $332,364 on $3,705,240 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $4,017,884 in assets, $1,054,653 of debts, and $2,963,231 of stockholders' equity. DeCoria, Maichel & Teague, P.S., in Spokane, Wash., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's negative working capital and accumulated deficit. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5e78 Thompson Falls, Mont.-based United States Antimony Corporation produces and sells antimony and zeolite products. USP TRANS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: USP TRANS, INC 8001 W. 47th Street Lyons, IL 60534 Bankruptcy Case No.: 10-14553 Chapter 11 Petition Date: April 1, 2010 Court: U.S. Bankruptcy Court Northern District of Illinois (Chicago) Judge: Pamela S. Hollis Debtor's Counsel: Debra J Vorhies Levine, Esq. Law Offices of Debra V Levine 53 W Jackson Boulevard Suite 404 Chicago, IL 60604 Tel: (312) 259-5970 Fax: (312) 588-0785 E-mail: debravlevine@yahoo.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb10-14553.pdf The petition was signed by Miroslaw Schidzikowski, president. VERSO PAPER: S&P Raises Corporate Credit Rating to 'B' ------------------------------------------------------ Standard & Poor's Ratings Services raised all of its ratings on Memphis, Tennessee-based coated paper manufacturer Verso Paper Holdings Inc. S&P raised the corporate credit rating to 'B' from 'B-'. At the same time, S&P removed the ratings from CreditWatch, where they were placed with positive implications on Dec. 30, 2009. The outlook is stable. S&P raised the issue-level ratings on the company senior secured debt to 'BB-' from 'B+', the second-lien notes to 'B' from 'B-', and unsecured debt (subordinated debt and term loan at the holding company level) to 'CCC+' from 'CCC'. The recovery ratings on these issues are unchanged. "The ratings upgrade reflects S&P's assessment that market conditions will improve through 2011, due to a recovery in the U.S. economy, leading to modestly higher demand and sales price increases for Verso," said Standard & Poor's credit analyst Andy Sookram. As a result, S&P expects the improvement in the company's credit measures to continue in the near term. S&P's ratings also incorporate the expectation that Verso will maintain adequate liquidity and it benefits from no meaningful debt maturities in the next three years. At Dec. 31, 2009, the company had $152 million cash on hand and an undrawn revolving credit facility. The stable rating outlook reflects S&P's expectation that credit measures will strengthen in 2010 as S&P believes the improving U.S. economy will lead to modestly higher demand and selling prices. S&P thinks liquidity, in terms of cash and availability under the revolving credit facility, will remain adequate in the near term with about $152 million cash and an undrawn revolving credit facility due August 2012. The company also benefits from having no meaningful debt maturities until 2013 and no maintenance financial covenants. S&P expects the company to continue to benefit from cost savings initiatives and lower downtime costs, which will likely lead to higher earnings. As a result, S&P expects interest coverage to improve to around 1.5x and total adjusted debt to EBITDA to decline to around 7.5x in 2010 and to 6.5x in 2011, levels somewhat weak for the rating, given the company's weak business risk profile. S&P could take a positive rating action if sales prices and demand improve more than S&P expects, resulting in a significant improvement in credit measures, such that leverage improves to around 5x on a sustained basis. Conversely, a negative rating action could occur if demand does not improve in line with S&P's ratings expectation, resulting in price pressures and EBITDA generation below S&P's expected levels for 2010. If this occurs, then liquidity would decline and the company would likely need to borrowing under its revolving credit facility fund operating requirements. VICTORY HOME: Case Summary & 3 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Victory Home Builders, LLC 1543-B Battlefield Drive Nashville, TN 37215 Bankruptcy Case No.: 10-03577 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Middle District Of Tennessee (Nashville) Judge: George C Paine II Debtor's Counsel: Roy C Desha, Jr DeSha Watson PLLC 1106 18th Ave. South Nashville, TN 37212 Tel: (615) 369-9600 Fax: (615) 369-9613 E-mail: bknotice@deshalaw.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 3 largest unsecured creditors is available for free at: http://bankrupt.com/misc/tnmb10-03577.pdf The petition was signed by Kenneth R. Buell, Chief Manager. VINEYARD NATIONAL: Parties Agree to Move Plan Hearing to May 12 --------------------------------------------------------------- BankruptcyData.com reports that Vineyard National Bancorp filed with the U.S. Bankruptcy Court a stipulation by and between Vineyard National Bancorp, the official committee of unsecured creditors and the FDIC to continue the hearing on confirmation of the Joint Plan. The stipulation seeks to continue the hearing until May 12, 2010 or such other later date as may be convenient to the Court, in order to permit the Debtor and the committee the opportunity to fully consider the FDIC objection and respond thereto. The Plan is currently scheduled to be considered on April 8, 2010. Vineyard National Bancorp (NASDAQ: VNBC) (AMEX: VXC.PR.D) -- http://www.vineyardbank.com/-- was the financial holding company, which provides a variety of lending and depository services to businesses and individuals through its wholly owned subsidiary, Vineyard Bank, National Association. Vineyard Bank was closed July 17 by regulators, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with California Bank & Trust, San Diego, California, to assume all of the deposits of Vineyard Bank, N.A., excluding those from brokers. As of March 31, 2009, Vineyard Bank, N.A., had total assets of $1.9 billion and total deposits of approximately $1.6 billion. In addition to assuming all of the deposits of the failed bank, California Bank & Trust agreed to purchase approximately $1.8 billion of assets. The FDIC will retain the remaining assets for later disposition. California Bank & Trust purchased all deposits, except about $134 million in brokered deposits, held by Vineyard Bank, N.A. Vineyard National Bancorp filed for Chapter 11 on June 21, 2009 (Bankr. C.D. Calif. Case No. 09-26401). WESTERN EXPRESS: Moody's Assigns 'Caa1' Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service assigned ratings to Western Express, Inc.; corporate family and probability of default, each of Caa1. Moody's also assigned a rating of Caa1 to the planned issuance of $275 million of Senior Secured Notes due 2018. The outlook is stable. These are first time ratings of Western Express. Proceeds from the new notes offering, will be used to refinance the company's existing debt as well as to partially fund the purchase of new trucks that is planned for 2010. The rating considers Western Express's established position as a truckload operator with nationwide service, and the potential for operating performance to improve as expansion of the economy fosters demand for freight services. However, with an average fleet age of over 40 months, Western Express will need to execute on its planned fleet renewal by purchasing new trucks over the coming two years, and the capital spending related to this program will limit free cash flow generation and preclude any near term debt reduction. As such, Western Express's ratings are constrained by weak credit metrics that will ensue from its substantial debt levels, including the sizeable interest cost associated with the Notes offering. Moody's estimates that Western Express will operate with credit metrics that are appropriate for the Caa1 rating for some time. EBIT to Interest is expected to remain below 1.0 time over the near term, despite expectations for recovery in the trucking sector over this period. Western Express's liquidity position is viewed as adequate over the coming 12 month period. With an aging fleet, the company will undertake an aggressive capital spending program in order to reduce the average age of its trucking fleet. This will be necessary to avoid higher costs and declining service levels that would ensue from operating older equipment, which would have a detrimental effect on the company's competitiveness, margins, and cash generating capabilities. The new Notes offering will cover a portion of this year's planned fleet spending. Beyond that, the company's capacity to internally fund the amount of truck purchases necessary to promptly rejuvenate its fleet is heavily contingent on its ability to meet its operating plans. With the new Notes offering effectively secured by all current and future assets of the company (excluding accounts receivable, for which they are granted a second priority lean behind the amended ABL facility -- not rated by Moody's), Western Express will be reliant on cash generated by operations and augmented by equipment sales proceeds in order to meet its fleet investment needs. Moody's expect that access to the ABL credit facility will not be restricted by financial covenants prescribed under its terms. This will be important over the next few years, as use of the facility may become necessary to maintain capital spending should the company fail to meet its operating plan. The stable outlook reflects Moody's expectations that Western Express's credit metrics will improve as the economy recovers in 2010. Also, with the completion of the Notes offering, Western Express will have a more stable capital structure and liquidity profile that should enable the company to execute on the needed fleet renewal, providing operating support until such time as credit metrics strengthen. Ratings or their outlook could be revised downward if market conditions do not materialize as planned through 2011, with operating ratios above 98%, resulting in lower cash generated from operations which would make a reduction in fleet investments necessary. Ratings could be lowered if Debt to EBITDA were to exceed 7 times, if Funds from Operations plus Interest to Interest were to fall below 1.5 times, or if availability under the ABL facility were to diminish due to high usage or covenant restrictions. Ratings could be adjusted upward if, while completing its fleet investment program, free cash flow becomes sustainably positive. Debt to EBITDA would need to fall below 5.5 times and EBIT to Interest should exceed 1.0 time to warrant an upgrade to B3. Assignments: Issuer: Western Express, Inc. -- Probability of Default Rating, Assigned Caa1 -- Corporate Family Rating, Assigned Caa1 -- Senior Secured Regular Bond/Debenture, Assigned Caa1 (LGD4- 54) Western Express's ratings were assigned by evaluating factors Moody's believe 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) Moody's projections of the company's performance 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 Western Express's core industry and Western Express's ratings are believed to be comparable to those of other issuers of similar credit risk. Western Express, Inc., headquartered in Nashville, TN, is a truckload carrier. WESTERN EXPRESS: S&P Assigns Corporate Credit Rating at 'B-' ------------------------------------------------------------ Standard & Poor's Ratings Services said it has assigned its 'B-' corporate credit rating on Nashville, Tennessee-based Western Express Inc. The outlook is stable. At the same time, S&P assigned a 'B-' rating on the company's $275 million senior secured notes due 2018, as well as a '4' recovery rating, indicating S&P's expectation that lenders would receive average (30% to 50%) recovery of principal in a payment default scenario. S&P based all the ratings on preliminary offering statements and they are subject to review on final documentation. The company will use the proceeds to refinance existing term loans and purchase new equipment. The ratings on Western Express reflect the truckload carrier's highly leveraged financial profile, as well as its participation in the capital intensive and cyclical trucking sector, which is subject to pricing pressure and intense competition. The company's midsize market position and good customer diversity only partially offset these weaknesses. Western Express operates a company-owned fleet of 2,545 tractors, 6,687 trailers, and 13 service centers across 10 states, primarily in the East Coast. The company's fleet consists of dry-van (52%), flat-bed (44%), and dedicated (4%) truckload. The outlook is stable. S&P expects earnings and operating results to improve as tonnage improves and the pricing environment stabilizes in the truckload sector. "S&P could lower the ratings if earnings fail to improve or if financial performance deteriorates resulting in funds from operations to total debt in the high single-digit percentage area or total debt to EBITDA exceeding 7x," said Standard & Poor's credit analyst Anita Ogbara. "S&P could raise the ratings if earnings improvement bolsters liquidity and the company consistently maintains total debt to EBITDA below 5x and FFO to total debt in the midteens percentage area," she continued. WIRELESS AGE: Parent Pays Former Units C$750,000 ------------------------------------------------ Wireless Age Communications, Inc., has agreed to settle the balance owing to the receiver and trustee in bankruptcy of its former subsidiaries, Wireless Age Communications Ltd. and Wireless Source Distribution Ltd. according to an initial agreement previously announced on October 5, 2009 and subject to regulatory approval. Pursuant to the Settlement Agreement, Wireless Age agreed to pay Wireless Communications and Wireless Source a total of C$750,000 to settle outstanding loans totaling approximately C$8.3 million provided by Wireless Communications and Wireless Source to the Company. A sum of $150,000 has already been paid toward the initial Settlement Amount. The balance of the settlement of $600,000 is to be paid to the Trustee by September 30, 2010. Interest is payable at the rate of 10% per annum on the principal amount of the settlement as and from January 1, 2010, or so much thereof as remains outstanding from time to time. John G. Simmonds, CEO of Wireless Age stated, "We are pleased that progress has been made on the Settlement Agreement with the Trustee of our former operating subsidiaries Wireless Communications and Wireless Source, where we were able to settle a debt of approximately CAD$8,300,000 with a cash payment of CAD$750,000." He added, "By revising settlement terms with the Trustee, we feel that we have taken significant steps forward in the best interests of minority shareholders to rebuild the Company upon a reorganized corporate structure and new strategic direction in the waste-to-energy industry." About Wireless Age Headquartered in Mississauga, Ontario, Canada, Wireless Age Communications Inc. (OTC BB: WLSA.OB) -- http://www.thewirelessage.com/-- through its 99.7% owned subsidiary, Wireless Age Communications Ltd., is in the business of operating retail cellular and telecommunications outlets in cities in western Canada. The Company, through its other wholly owned subsidiary Wireless Source Distribution Ltd., is in the business of distributing two-way radio products, prepaid phone cards, wireless accessories and various battery and ancillary electronics products in Canada. * * * As reported by the Troubled Company Reporter on April 29, 2009, the receiver for Wireless Age signed a deal to sell the assets in Manitoba and Saskatchewan. The Saskatchewan assets of Wireless Communications and the assets of Wireless Source will be sold to IM Wireless Ltd. for C$7 million. Wireless Communications' Manitoba assets would be sold to MTS Allstream Inc. and 4L Communications Inc. for C$115,000. SaskTel served Wireless Communications and Wireless Source with notice under the Bankruptcy and Insolvency Act in January 2009 and secured a court order to appoint an interim receiver. The receiver expected C$7.65 million to be available after closing with C$1.25 million available for unsecured creditors, before the receiver's fees and after repayment of C$6.4 million to SaskTel. ZAYAT STABLES: Keenelan Juvenile Auction Sets for April 5, 2010 --------------------------------------------------------------- Deirdre B. Biles at BloodHorse.com says that the Keenelan juvenile auction is set for April 5, 2010, in Lexington. Zayat Stables' horses that will be offered at the auction include Indian Charlie, Broken Vow, and Bernstein. About Zayat Stables Hackensack, New Jersey-based Zayat Stables owns of 203 thoroughbred horses. The horses, which are collateral for the bank loan, are worth $37 million, according an appraisal mentioned in a court paper. Ahmed Zayat said in a court filing that he personally invested $40 million in the business. The Company filed for Chapter 11 bankruptcy protection on February 3, 2010 (Bankr. D. N.J. Case No. 10-13130). The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. ZEALOUS, INC: Settles with Majority of Creditors ------------------------------------------------ Zealous, Inc. disclosed changes to its corporate management, current business activities, and investor relations that are very positive steps for the future of the company. The Company's goals for 2010 have been to settle its debt with creditors, sell Health and Wellness Partners, Inc. to allow the business to maximize its potential and provide capital for various purposes and to nurture its future core business in Interactive Media and Social Networking. The previously announced tentative agreement for the sale of Health and Wellness Partners, Inc. to Premiere Acquisitions Corp. is proceeding as expected and a final agreement is anticipated in the coming weeks. The company will be renamed BioGeron Labs, Inc. and will launch with years of experience in the herbal industry. As indicated when initially announced, the proceeds from this sale should allow Zealous to pay over time all its debt and to provide working capital for growth of the primary business. With respect to business operations, the company has continued to enjoy growth with its interactive media and social network business and is making commitments to focus its future efforts to grow this division. "We have been very well received and the growth of both the social network, as well as our 3D world, is excellent in these initial months. Enhancements to the products continue and major upgrades, which will substantially improve them, are expected to be rolled out by this summer. Revenue from membership is growing daily and ad revenue is ramping up as we continue to develop our 3D world and marketing alliances. The potential of this world-wide market is enormous," said Zealous Interactive President Gary Gottlieb. With the Chapter 7 bankruptcy coming to a close, the Company has announced it has reached a milestone by settling with a majority of its creditors and will remain dedicated to settling with the remaining creditors. With this overall progress, the Company's management has reorganized to realign its talent and resources to focus on its future. The company announced that Milton "Todd" Ault, III has resigned from the positions of President, CEO, and Chairman of the Board effective April 2, 2010. Mr. Ault will join a private equity and hedge fund business and has been retained as a consultant with an initial focus on settling with the remaining creditors. "We are very pleased with our progress to settle with our creditors and have realized it's time to leave our past behind," said Ault. Gary Gottlieb has been appointed to the positions of CEO and Chairman of the Board. The position of President will remain dormant for the near future. "I believe it is time for the company to concentrate its efforts and attention on its exciting future," said Mr. Ault. "Mr. Gottlieb has the experience and relationships necessary to move the company forward. Mr. Gottlieb's knowledge of the industry has been instrumental in attaining most of our affiliates and the growth of the TheAdultSpot.com to date and we believe he is well suited to take the company to the next level." Mr. Gottlieb has compiled years of experience having worked for media and IT leaders including International Publishers, Western Visuals, Computer Sciences Corporation (CSC), Private Dancer Magazine (PDM) and Stiletto Magazine and Stiletto TV. To provide better investor communications and related services, Gary Patterson has been retained to provide Investor Relations services. Please contact Mr. Patterson at ir@zealousinc.net or (714) 369-2933. It is also the intent of the company to sell other assets to increase its capital for future uses. These will be discussed further as appropriate. About Zealous Zealous, Inc. is a holding company that operates through its subsidiary Zealous Interactive, Inc. Zealous Interactive, Inc. is a multimedia company specializing in online media distribution, social networking, content management and features its print and online publications. Zealous Interactive, Inc.'s flagship enterprise is TheAdultSpot.com and TheAdultSpot 3D. Zealous, Inc. is divesting all its other assets including a nutraceutical business and its financial services division. * Apartment Rents Decline as Vacancies at Record, Reis Says ----------------------------------------------------------- According to Carla Main at Bloomberg News, Reis Inc. said in a report that U.S. apartment rents dropped in the first quarter and the vacancy rate remained at a record as unemployment near a 26- year high limited tenant demand. Rent rates rose less than half a percent from the previous quarter, the first sequential growth since the three-month period when Lehman Brothers Holdings Inc. filed for bankruptcy. Actual rents paid by tenants, known as effective rents, declined 1.5% from a year earlier. * Funding Status of U.S. Pensions Increases to 88.1% in March ------------------------------------------------------------- According to monthly statistics published by BNY Mellon Asset Management, a strong March rally in U.S. and international stocks drove the value of U.S. corporate pension plan assets higher, resulting in the best funding status for the typical U.S. corporate pension plan since October 2008. The funding status in March rose 2.8 percentage points to 88.1%. Assets for the typical U.S. corporate pension plan increased 3.7%, outpacing the 0.5% gain in liabilities for the month, as reported by the BNY Mellon Pension Summary Report for March 2010. The modest increase in liabilities was due to interest accrual, as the Aa corporate discount rate remained unchanged at 5.96%. "On the asset side, March was even better than February as pension plans benefited from a powerful performance from U.S. stocks, particularly small caps," said Peter Austin, executive director of BNY Mellon Pension Services, the pension services arm of BNY Mellon Asset Management. "While the interest rates affecting liabilities were unchanged in March, we did see a narrowing of spreads for the Aa corporate bonds as long U.S. Treasury yields increased to their highest level since October 2008." Plan liabilities are calculated using the yields of long-term investment grade corporate bonds. Higher yields on these bonds result in lower liabilities. "Plan sponsors have been expressing more interest in establishing pension funding objectives that incorporate specific targets, which can be aligned with regulatory or market-based valuation techniques," said Austin. "The implementation of liability driven investing (LDI) strategies that incorporate date-specific funding targets will become more popular as plan sponsors understand the opportunities available to improve plan funding while managing downside risk." BNY Mellon Asset Management is the umbrella organization for BNY Mellon's affiliated investment management firms and global distribution companies. BNY Mellon -- http://www.bnymellon.com/-- is the corporate brand of The Bank of New York Mellon Corporation. BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $22.3 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $12.0 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Apr. 20-22, 2010 TURNAROUND MANAGEMENT ASSOCIATION Sheraton New York Hotel and Towers, New York City Contact: http://www.turnaround.org/ Apr. 29, 2010 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - East Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 THE COMMERICAL LAW LEAGUE OF AMERICA Midwestern Meeting & National Convention Westin Michigan Avenue, Chicago, Ill. Contact: 1-312-781-2000 or http://www.clla.org/ May 21, 2010 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - NYC Alexander Hamilton Custom House, SDNY, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ May 24, 2010 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference New York Marriott Marquis, New York, NY Contact: 1-703-739-0800; http://www.abiworld.org/ May 11-14, 2010 AMERICAN BANKRUPTCY INSTITUTE Litigation Skills Symposium Tulane University, New Orleans, La. Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 3, 2010 AMERICAN BANKRUPTCY INSTITUTE Atlanta Consumer Bankruptcy Skills Training Georgia State Bar Building, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 11-14, 2010 AMERICAN BANKRUPTCY INSTITUTE Hawai.i Bankruptcy Workshop The Fairmont Orchid, Big Island, Hawaii Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 14, 2010 AMERICAN BANKRUPTCY INSTITUTE ABI/NYIC Golf and Tennis Fundraiser Maplewood Golf Club, Maplewood, N.J. Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 20, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Fordham Law School, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 23-25, 2010 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 1, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE ABI/UMKC Midwestern Bankruptcy Institute Kansas City Marriott Downtown, Kansas City, Kan. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 6-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Oct. 11, 2010 AMERICAN BANKRUPTCY INSTITUTE Chicago Consumer Bankruptcy Conference Standard Club, Chicago, Ill. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 15, 2010 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Hilton New Orleans Riverside, New Orleans, La. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 29, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium The Savoy, London, England Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. __, 2010 AMERICAN BANKRUPTCY INSTITUTE Delaware Views from the Bench and Bankruptcy Bar Hotel du Pont, Wilmington, Del. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 11, 2010 AMERICAN BANKRUPTCY INSTITUTE Detroit Consumer Bankruptcy Conference Hyatt Regency Dearborn, Dearborn, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 9-11, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, a JW Marriott Resort & Spa, Scottsdale, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Jan. 20-21, 2011 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colo. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 (tentative) AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. Last Updated: March 22, 2010 ********* 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 ***