/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100720.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, July 20, 2010, Vol. 14, No. 199 Headlines 621 STOCKTON: Voluntary Chapter 11 Case Summary 6231 MURPHY: Case Summary & Largest Unsecured Creditor ABDUL SHEIKH: Court Wants Plan Confirmed by February 2011 ABITIBIBOWATER INC: CCAA Stay Period Extended Until Sept. 8 ABITIBIBOWATER INC: Court Moves Disc. Statement Hearing Sine Die ABITIBIBOWATER INC: Court OKs Tenth Consent as to DIP Facility ABITIBIBOWATER INC: Wants Removal Period Extended Until Nov. 8 AGRISOLAR SOLUTIONS: Continuous Losses Cue Going Concern Doubt ALERIS INT'L: Weil Gotshal Asks for $9.2 Million in Fees ALLIS-CHALMERS: 2 Officers Unload Shares for Tax Purposes AMERICAN AXLE: Board Committee OKs Deal with Lancaster AMERICAN INT'L: Settles Securities Fraud Class Actions AMERICAN MEDIA: Moody's Downgrades Default Rating to 'Ca' ANPATH GROUP: Posts $2.9 Million Net Loss in Fiscal 2010 ANV SECURITY: Lack of Revenue Activities Cue Going Concern Doubt ATLANTIC COAST: U.S. Trustee Unable to Form Creditors Committee AVIS BUDGET: Launches Exchange Offer for 9-5/8% Senior Notes B4 CATTLE: Case Summary & 20 Largest Unsecured Creditors BAY CITI: Voluntary Chapter 11 Case Summary BAYVIEW HOLDINGS: Promises to Pay Creditors from Distribution Fund BERT SMITH: Case Summary & 20 Largest Unsecured Creditors BISCAYNE PARK: U.S. Trustee Unable to Form Creditors Committee BISCAYNE PARK: Joel L. Tabas Appointed Chapter 11 Examiner BISCAYNE PARK: Wants Additional 120 Days to Propose Ch. 11 Plan BLOCKBUSTER INC: Mark Wattles Retains 15.3% Stake BLOUNT INC: S&P Assigns 'BB-' Rating on $425 Mil. Senior Notes BP PLC: Asks Shareholders About Possible Restructuring BROWN PUBLISHING: Creditors Commences Suit on Lenders CABLEVISION SYSTEMS: GAMCO Holds 4.11% of NY Group Class A Shares CANWEST GLOBAL: Canada Creditors OK Restated Plan of Compromise CAPMARK FINANCIAL: Creditors Investigating $1.5-Bil. Loan CASELLA WASTE: S&P Affirms Corporate Credit Rating at 'B+' CELL THERAPEUTICS: Officers & Directors Acquire Restricted Shares CENTERPLATE INC: Moody's Assigns 'B3' Corporate Family Rating CFRI/GREENLAW DYER: Section 341(a) Meeting Scheduled for Aug. 11 CHINA ARCHITECTURAL: Receives Extended Waiver from Bondholders CIMINO BROKERAGE: Plan Confirmation Hearing Set for July 29 CIRCUIT CITY: Has Buyer for Corp. Headquarters Lot CISTERA NETWORKS: Robison Hill Raises Going Concern Doubt CITIGROUP INC: Earns $2.7 Billion for Second Quarter 2010 COMPLIANCE SYSTEMS: Agile Opportunity Fund Holds 9.9% of Shares COMPLIANCE SYSTEMS: Issues Warrants to CFO as Dividend Payment COMPLIANCE SYSTEMS: President Defers Q3 Salary, Gets Warrants CONTROLADORA COMERCIAL: Files for Chapter 15 Protection DENNY'S CORPORATION: Names Gregg Dedrick to Board of Directors ELBIT VISION: Recurring Losses Prompt Going Concern Doubt ENERGY FUTURE: Units Launch Exchange Offers of Outstanding Notes EURONET WORLDWIDE: Moody's Upgrades Corp. Family Rating to 'Ba3' EVERGREEN INVESTMENTS: Plans to Liquidate Evergreen Int'l Fund EXTENDED STAY: ESA TXGP Proposes to Set Claims Bar Date FAIRMOUNT MINERALS: S&P Assigns 'BB-' Corporate Credit Rating FORUM HEALTH: To Provide Copies of MOU to MBIA Insurance FRANCES CROFTS: Case Summary & 13 Largest Unsecured Creditors FX REAL ESTATE: Stockholders Elect Six Directors GARLOCK SEALING: Court Grants Final Approval to DIP Financing GARLOCK SEALING: Sec. 341 Meeting Continued to August 4 GARLOCK SEALING: Proposes to Assume Daikin-America Contract GARLOCK SEALING: Wins Final Nod to Use BoA Cash Collateral GARNEAU INC: Enters Alternate Financing Arrangement GENERAL MOTORS: New GM Seeks $5 Bil. Add'l Credit to Repay Debts GENERAL MOTORS: Nexteer Workers Return Wage Increase to Help Sale GENERAL MOTORS: Verdict on Dealers' Shutdown Appeal on July 23 GENERAL GROWTH: Hughes Heirs Call for Evidentiary Hearing Denied GLOBAL CROSSING: 12 Directors Acquire 7,229 Restricted Shares Each GREEN PLANET: Significant Operating Losses Cue Going Concern Doubt HAYES LEMMERZ: Plan of Reorganization Wins Court Approval HOTELS UNION SQUARE: W Hotel to Be Sold Under Chapter 11 Plan HMSC CORPORATION: Moody's Affirms 'Ba3' Corporate Family Rating IA GLOBAL: Significant Operating Losses Cue Going Concern Doubt IMAGEWARE SYSTEMS: Inks Two-Year Agreement with IBM Canada IMPLANT SCIENCES: Director Converts Promissory Note to Equity IMPLANT SCIENCES: New CFO Deschenes Discloses Stock Options INNKEEPERS USA: Files Prepack Chapter 11; Gives Equity to Lehman INVISTA BV: S&P Raises Corporate Credit Rating to 'BB-' ITAL STONE: Case Summary & 20 Largest Unsecured Creditors JACKSON HEWITT: Deloitte & Touche Raises Going Concern Doubt JDG INVESTMENTS: Section 341(a) Meeting Scheduled for Aug. 13 JENNIFER CONVERTIBLES: Files Voluntary Petition for Chapter 11 KAREN THOMAS: Voluntary Chapter 11 Case Summary KB HOME: S&P Downgrades Corporate Credit Rating to 'B+' KINGDOM DONUTS: Voluntary Chapter 11 Case Summary L.A. & G. LAREDO: Voluntary Chapter 11 Case Summary LA VISTA: Files for Bankruptcy to Sell Off Assets LEHMAN BROTHERS: Bank of New York Fights with Creditors over Plan LEXINGTON PRECISION: Rubber Group Unsecureds Vote 'No' on Plan LITTLE TOKYO: Case Summary & 20 Largest Unsecured Creditors LOWER BUCKS: Court Fixes August 20 as Bar Date for All Claims MAC MAYER: Voluntary Chapter 11 Case Summary MARK J GINSBURG: Has Until October 7 to File Reorganization Plan MARKET STREET: Has Until December 31 to File Reorganization Plan MEDICAL STAFFING: Gets Court OK to Reject 7 Leases MEDICAL STAFFING: Gets OK to Reject Goldman Sachs Contract MICHAELS STORES: Elaine Crowley to Resign as Sr. Vice President MONDRIAN TTL: Creditors Have Until Aug. 15 to File Proofs of Claim MONEYGRAM INT'L: New CFO Shields Gets Options to Buy 2MM Shares MONICA LESTER: Case Summary & 16 Largest Unsecured Creditors MORGAN STANLEY: Mulls Options for Real Estate Fund NEW BERN: Wants Until August 30 to Propose Reorganization Plan OPTI CANADA: Reports Operating Results for June 30 Quarter PATRICK HACKETT: Bank Says Disclosure Statement Is Inadequate PAHRUMP RENTALS: Voluntary Chapter 11 Case Summary PRIUM KENT: Case Summary & 19 Largest Unsecured Creditors PRIUM MEEKER: Case Summary & 19 Largest Unsecured Creditors PROTECTIVE PRODUCTS: In Talks with Creditors Panel on Plan Changes RADIO ONE: Extends Expiration Offer of Senior Notes to July 31 RCLC INC: Settles with PBGC Over 2009 Litigation RENAISSANT LAFAYETTE: Wants Until August 20 to File Ch. 11 Plan SENSIVIDA MEDICAL: Posts $342,264 Net Loss in Q1 Ended May 31 SEVERN BANCORP: Returns to Profitability in Second Quarter 2010 SHOREBANK CORP: Continues to Wait for $75-Mil. Gov't Bailout SPANSION INC: Tessera IP Dispute Moving to District Court SPHERIS INC: Schedules August 26 Confirmation Hearing SUNESIS PHARMA: Alta BioPharma Holds 9.9% of Common Stock SUNESIS PHARMA: Registers 175,847,950 Shares TAYLOR BEAN: FDIC Backs Exclusivity Extension Bid TELESAT CANADA: Moody's Affirms 'B2' Corporate Family Rating TEXAS RANGERS: Secured Lenders Ask for Reconsideration THORNBURG MORTGAGE: U.S. Trustee Sues Orrick for Dishonesty TRIBUNE CO: Barclays Sells $150 Mil. in Claims to Oaktree TRICO MARINE: Issues Senior Secured Notes Due 2014 TRONOX INC: Says Anadarko Throwing 'Wrench' into Case TRUMP ENTERTAINMENT: Successfully Emerges From Chapter 11 TRUVO USA: Disclosure Statement Hearing Scheduled for August 5 TSG INC: PNC Cash Collateral Hearing Continued Until July 21 UNIGENE LABORATORIES: Directors Get Shares as Fees Payment UNIGENE LABORATORIES: Registers 80,760,650 for Resale UNITED ENERGY: Jewett Schwartz Raises Going Concern Doubt U.S. CONCRETE: Has Until July 23 to File Schedules and Statements USG CORP: Judith Sprieser to Resign as Director VALLEJO, CALIFORNIA: Tough Budget Puts Police Jobs in Jeopardy VICTOR SOTO: Case Summary & 18 Largest Unsecured Creditors VISTEON CORP: Considering Stock Sale to Unsecured Creditors WHITE ENERGY: Wins Confirmation of Reorganization Plan WINALTA INC: Gets 2nd CCAA Protection Extension Until August 6 WORLDGATE COMMUNICATIONS: New CFO Dole Receives Stock Options * House Bill Would Limit a Bankrupt BP's Ability to Sell Assets * S&P's Tally of Year's Corporate Defaults Now at 44 * Six Takeovers Bring Year's Bank Failures to 96 * Tracy Hope Davis Is Acting U.S. Trustee for Region 2 * Large Companies With Insolvent Balance Sheets ******** 621 STOCKTON: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: 621 Stockton DE, LLC 2099 Market St. San Francisco, CA 94114 Bankruptcy Case No.: 10-32661 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court Northern District of California (San Francisco) Judge: Thomas E. Carlson Debtor's Counsel: John H. MacConaghy, Esq. MacConaghy and Barnier 645 1st St. W #D Sonoma, CA 95476 Tel: (707) 935-3205 E-mail: macclaw@macbarlaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Edward C. Singer, Jr., authorized agent. The Debtor did not file a list of its largest unsecured creditors together with its petition. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Civic Properties DE, LLC 10-_____ __/__10 Bay Citi Properties II DE, LLC 10-_____ __/__10 LRL Citigroup Properties II DE, LLC 10-_____ __/__10 Herman Street DE, LLC 10-30413 __/__10 LRL Citi Properties I DE, LLC 10-30414 __/__10 Trophy Properties I DE, LLC 10-30415 __/__10 Sutter Associates DE, LLC 10-30416 __/__10 6231 MURPHY: Case Summary & Largest Unsecured Creditor ------------------------------------------------------ Debtor: 6231 Murphy Way Management, LLC 7660-H Fay Avenue, Suite 529 La Jolla, CA 92037 Bankruptcy Case No.: 10-12357 Chapter 11 Petition Date: July 14, 2010 Court: United States Bankruptcy Court Southern District of California (San Diego) Judge: Peter W. Bowie Debtor's Counsel: Thomas C. Nelson, Esq. Law Offices of Thomas C. Nelson 484 Prospect Ave. La Jolla, CA 92037 Tel: (858) 875-5092 E-mail: tom@tcnlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Amy Coplen Trade debt-services $1,000 2082 Michelson Drive, Suite 450 Irvine, CA 92612 The petition was signed by Keith Middlebrook, manager. ABDUL SHEIKH: Court Wants Plan Confirmed by February 2011 --------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California extended Abdul Halim Sheikh's exclusive periods to file and solicit acceptances for the proposed Chapter 11 Plan until September 3, 2010, and December 3, respectively. The Court said that this is the last extension of the exclusive periods. The Court also added that the Debtor must obtain court approval of his Plan by February 3, 2011. The Debtor is represented by: James Andrew Hinds, Jr., Esq. E-mail: jhinds@jhindslaw.com Paul R. Shankman, Esq. E-mail: pshankman@jhindslaw.com Hanna B. Raanan, Esq. E-mail: hrannan@jhindslaw.com Law Offices of James Andrew Hinds, Jr. 21515 Hawthorne Blvd., Suite 1150 Torrance, CA 90503 Tel: (310) 316-0500 Fax: (310) 792-5977 About Abdul Halim Sheikh Palos Verdes Estates, California-based Abdul Halim Sheikh aka A.H. Sheikh filed for Chapter 11 on Oct. 27, 2009 (Bankr. Case C.D. Calif. No. 09-39652). Paul R. Shankman, Esq., represents the Debtor in its restructuring effort. In its petition, the Debtor listed assets and debts both ranging from $10,000,001 to $50,000,000. ABITIBIBOWATER INC: CCAA Stay Period Extended Until Sept. 8 ----------------------------------------------------------- The Honorable Justice Daniele Mayrand, J.S.C., of the Superior Court Commercial Division for the District of Montreal in Quebec, Montreal, Canada, extended the period within which no right may be exercised and no proceeding may be commenced or proceeded against Abitibi-Consolidated Inc., Bowater Inc. and certain of their affiliates, as applicants under the Companies' Creditors Arrangement Act of Canada, or any of their property, assets, rights and undertaking, through and including September 8, 2010. The CCAA Applicants earlier sought a CCAA Stay extension through September 15. Notably, the CCAA Applicants said that a September 15 Stay Period Extension "[is] based upon the cash flow forecast to be reported [by] the Monitor." Stikeman Elliott LLP, in Montreal, Canada, related on behalf of the CCAA Applicants that the requested Sixth Extended CCAA Stay Period is necessary in order to provide the CCAA Applicants with adequate time to move forward with the adjudication of disputed claims and allow their stakeholders sufficient time to consider and vote on the CCAA Plan of Reorganization and Compromise in the context of the CCAA Proceedings. The CCAA Applicants' current CCAA Stay Period is set to expire on July 30, 2010. Stikeman noted that since the issuance of the Fifth Extension Order, the CCAA Applicants have acted, and continue to act, in good faith and with due diligence. Specifically, they have continue to work on implementing and maintaining effective procedures to permit an efficient monitoring of their financial situation, along with the assistance of Ernst & Young, Inc., as the monitor overseeing the CCAA Proceedings, when required, Stikeman averred. No creditor will suffer any undue prejudice by the Sixth Extension of the Stay Period as the Applicants forecast to have sufficient liquidity during that period, according to Stikeman. About AbitibiBowater AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 22 pulp and paper facilities and 26 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey presides over the case. The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serves as the Debtors' co-counsel, while Troutman Sanders LLP in New York, serves as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors are Advisory Services LP, and their noticing and claims agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represent the Chapter 15 Debtors. As of Sept. 30, 2008, the Company had $9,937,000,000 in total assets and $8,783,000,000 in total debts. Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings and parallel proceedings under the Companies' Creditors Arrangement Act in Canada undertaken by Abitibibowater Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). ABITIBIBOWATER INC: Court Moves Disc. Statement Hearing Sine Die ---------------------------------------------------------------- Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware has adjourned the hearing to consider the adequacy of the Disclosure Statement accompanying the First Amended Chapter 11 Plan of Reorganization in the cases of AbitibiBowater, Inc., and its debtor affiliates "to a date and time to be determined by the Court." The Disclosure Statement Hearing was previously slated for July 15, 2010. It was moved from the original schedule of July 7. "The Court will conduct a telephonic scheduling conference in lieu of the hearing. Parties wishing to participate in the scheduling conference must register . . . in accordance with the Court's procedures," the Debtors announced. Concurrent with the Disclosure Hearing Adjournment, U.S. Bank, National Association, reserved all its rights, including the right to object to approval of the Disclosure Statement. U.S. Bank is successor indenture trustee under an Indenture of Trust dated as of April 1, 2008, as amended by and among: * Abitibi-Consolidated Company of Canada, as issuer; * Abitibi-Consolidated Alabama Corporation, Abitibi Consolidated Corporation, Abitibi Consolidated Sales Corporation, Alabama River Newsprint Company, Augusta Woodlands, LLC and Donohue Corp., or the Donohue Group, as guarantor parties; and * Wells Fargo Bank, N.A., as the original indenture trustee. The Indenture details ACCC's issuance of $413,000,000 of 13.75% Senior Secured Notes due 2014. The Donohue Group entities are not direct or indirect subsidiaries of the Canadian Debtors, but rather are direct and indirect subsidiaries of AbitibiBowater, Inc. John H. Schanne, II, Esq., at Pepper Hamilton LLP, in Wilmington, Delaware, tells Judge Carey that U.S. Bank holds: (i) senior secured claims in the proceedings under the Companies' Creditors Arrangement Act in Canada by virtue of its liens on, among other things, the equipment, general intangibles and real estate of ACI and its subsidiaries and a pledge of certain equity holdings of ACCC; and (ii) unsecured claims in the Chapter 11 cases on account of the Donohue Entities' guarantees of the 13.75% Senior Secured Notes. The Claims are referred to in the Chapter 11 Plan as the 13.75% Senior Secured Notes Guaranty Claims. The Claims of the 13.75% Senior Secured Notes Indenture Trustee and the holders of 13.75% Senior Secured Notes arising under or relating to the 13.75% Senior Secured Notes or the 13.75% Senior Secured Notes Indenture and related collateral documents and agreements, as fully secured claims, are "unaffected claims" in the CCAA Proceedings, Mr. Schanne explains. Accordingly, Mr. Schanne says, U.S. Bank understands that the 13.75% Senior Secured Notes Claims are to be paid in full, in cash, on the implementation date of the CCAA Plan of Reorganization and Compromise. The Chapter 11 Plan and the CCAA Plan contemplate that the effective date of the Plans and the implementation date of the CCAA Plan will occur simultaneously, Mr. Schanne notes. Mr. Schanne confirms that U.S. Bank has been engaged in discussions with the Debtors aimed at making the U.S. Plan consistent with the status of the 13.75% Senior Secured Notes Claims as "unaffected claims" in the CCAA Proceedings. In fact, according to Mr. Schanne, U.S. Bank has "an agreement in principle" with the Debtors regarding amendments to clarify, among other things, that neither the Chapter 11 Plan nor any order confirming the Plan will (i) affect, limit or impair the obligations of any CCAA Applicant relating to the 13.75% Senior Secured Notes or 13.75% Senior Secured Notes Indenture; or (ii) affect, limit or impair any rights of the 13.75% Senior Secured Notes Indenture Trustee or the holders of 13.75% Senior Secured Notes with respect to any liens, interests or other rights they may have with respect to any property of any CCAA Applicant. About AbitibiBowater AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 22 pulp and paper facilities and 26 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey presides over the case. The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serves as the Debtors' co-counsel, while Troutman Sanders LLP in New York, serves as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors are Advisory Services LP, and their noticing and claims agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represent the Chapter 15 Debtors. As of Sept. 30, 2008, the Company had $9,937,000,000 in total assets and $8,783,000,000 in total debts. Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings and parallel proceedings under the Companies' Creditors Arrangement Act in Canada undertaken by Abitibibowater Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). ABITIBIBOWATER INC: Court OKs Tenth Consent as to DIP Facility -------------------------------------------------------------- U.S. Bankruptcy Judge Kevin Carey permitted AbitibiBowater Inc. and its units to enter into a "Consent No. 10" to the $206 million Senior Secured DIP Facility under the Senior Secured Superpriority DIP Credit Agreement dated April 21, 2009, as amended, by and among AbitibiBowater Inc., Bowater Incorporated and Bowater Canadian Forest Products Inc., as borrowers; certain lenders; and Fairfax Financial Holdings Inc., as initial lender, initial administrative agent and initial collateral agent. The Court's approval is consistent with a revised proposed order submitted by the Debtors to address informal comments made by the Official Committee of Unsecured Creditors. The revisions, as agreed between the Bowater Debtors and DIP Lenders, relate to the duration fee under the Tenth DIP Consent. The Amended Tenth DIP Consent provides that if the aggregate principal amount of the advances has not been repaid in full on or prior to October 15, 2010, the Borrowers will pay to the Administrative Agent for the account of the Lenders a fee equal to 0.5% of the aggregate amount of the Advances outstanding on October 15, 2010, made by each Lender, that fee being due and payable on October 15, 2010. Once paid, the Fee will be non- refundable in all circumstances. Other key terms of the Tenth DIP Amendment consist of: * An extension of the DIP Maturity Date to the earliest of December 31, 2010 or the effective date of the Chapter 11 Plan of Reorganization; * The Debtors' repayment of the principal amount outstanding until only $40 million in the aggregate principal amount remains outstanding; * Reduction of applicable margin to 5%, in the case of a Base Rate Advance, and 6%, in the case of a LIBOR Advance; LIBOR floor reduction to 2%; * An extension of the Minimum Consolidated Fixed Charge Coverage Ratio covenant for the four fiscal quarter periods ending December 31, 2010, and the setting of the covenant at the same level as the four fiscal quarter periods ending September 30, 2010; * An extension of the Minimum Consolidated EBITDA 2010 covenant for each of the 12-month periods ending on October 31, 2010, November 31, 2010, and December 31, 2010, and the setting of the covenant at the same level as the 12- month period ending on September 30, 2010; * Discontinued mandatory prepayment with respect to asset dispositions pursuant to the Debtors' de minimis asset sale procedures; and * An increase of the basket for the aggregate basked amount of debt owed by subsidiaries of the Debtors which are not borrowers or guarantors under the DIP Credit Agreement to borrowers or guarantors by $10,000,000 to $35,000,000. No objections were received, according to Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors have estimated that the Tenth DIP Amendment will yield cost savings of approximately $4 million through the end of September 2010. About AbitibiBowater AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 22 pulp and paper facilities and 26 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey presides over the case. The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serves as the Debtors' co-counsel, while Troutman Sanders LLP in New York, serves as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors are Advisory Services LP, and their noticing and claims agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represent the Chapter 15 Debtors. As of Sept. 30, 2008, the Company had $9,937,000,000 in total assets and $8,783,000,000 in total debts. Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings and parallel proceedings under the Companies' Creditors Arrangement Act in Canada undertaken by Abitibibowater Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). ABITIBIBOWATER INC: Wants Removal Period Extended Until Nov. 8 -------------------------------------------------------------- AbitibiBowater Inc. and its units ask U.S. Bankruptcy Judge Kevin Carey to extend the time within which they may file notices of removal of civil actions and proceedings in state and federal courts to which they are or may become parties to, through and including November 8, 2010, with respect to claims and causes of action pending as of the Petition Date. The Debtors' current Removal Action Period expired on July 10, 2010. According to Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, since the Third Extended Removal Period, the Debtors have focused principally on the continued rationalization of their operations, the disposition of burdensome assets and a thorough evaluation of their business operations. The Debtors add that in the past 120 days, they have undertaken substantial efforts to negotiate, formulate and present the First Amended Chapter 11 Joint Plan of Reorganization and Disclosure Statement. However, Mr. Greecher notes, the Debtors have not had the opportunity to fully investigate their outstanding litigation matters and adequately consider whether removal, pursuant to Rule 9027 of the Federal Rules of Bankruptcy Procedure, is appropriate. Mr. Greecher contends that further extending the Debtors' Removal Period will afford them the additional opportunity to consider removal of the various litigation matters in a fully informed manner and consistent with the best interests of their estates. Absent the requested extension, the Debtors would lose a potentially key element of their overall ability to manage litigation during their Chapter 11 cases even before that litigation would reasonably have been evaluated, he tells Judge Carey. Mr. Greecher insists that preserving the Debtors' ability to remove actions imposes no delay or unnecessary burdens on any counterparty to claims or other causes of action relating to the Chapter 11 cases. On the contrary, counterparties will be better served if the Debtors have additional time to evaluate their options, he avers. The Court will convene a hearing on August 4, 2010, to consider approval of the Debtors' request. Objections, if any, must be filed by July 23. About AbitibiBowater AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 22 pulp and paper facilities and 26 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey presides over the case. The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serves as the Debtors' co-counsel, while Troutman Sanders LLP in New York, serves as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors are Advisory Services LP, and their noticing and claims agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represent the Chapter 15 Debtors. As of Sept. 30, 2008, the Company had $9,937,000,000 in total assets and $8,783,000,000 in total debts. Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings and parallel proceedings under the Companies' Creditors Arrangement Act in Canada undertaken by Abitibibowater Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AGRISOLAR SOLUTIONS: Continuous Losses Cue Going Concern Doubt -------------------------------------------------------------- AgriSolar Solutions, Inc. (formerly V2K International, Inc.) filed on July 14, 2010, its annual report on Form 10-K for the fiscal year ended March 31, 2010. ZYCPA Company Limited, in Hong Kong, China, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred continuous losses. The Company reported a net loss of $921,955 on $4,607,957 of revenue for fiscal 2010, compared with a net loss of $366,541 on $1,523,927 of revenue for fiscal 2009. The Company's balance sheet at March 31, 2010, showed $5,040,611 in assets, $3,725,933 of liabilities, and $1,314,678 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66a7 Denver, Colo.-based AgriSolar Solutions, Inc. (OTC BB: AGSO) through its wholly-owned subsidiary, Shenzhen Fuwaysun Technology Company Limited, a People's Republic of China corporation, is engaged primarily in the development, production and sale of solar products, including a solar insect killer and other products designed for agricultural and commercial use. The Company's manufacturing facility is located in Shenzhen, the People's Republic of China, and a substantial majority of its current sales and business operations are in China. The Company was incorporated in the State of Colorado on March 13, 2006, under the name V2K International, Inc. On January 8, 2010, the Company changed its company name from "V2K International, Inc." to its current name. ALERIS INT'L: Weil Gotshal Asks for $9.2 Million in Fees -------------------------------------------------------- Weil Gotshal & Manges LLP has asked for almost $9.2 million in fees and expenses for its work shuttling Aleris International Inc. through a 16-month bankruptcy, Bankruptcy Law360 reports. Weil Gotshal cited the size and complexity of the "demanding" case, as well as the firm's commitment of time and resources, to back up a request for over $8.9 million, Law360 says. About Aleris International Aleris International, Inc., produces and sells aluminum rolled and extruded products. Aleris operates primarily through two reportable business segments: (i) global rolled and extruded products and (ii) global recycling. Headquartered in Beachwood, Ohio, a suburb of Cleveland, the Company operates over 40 production facilities in North America, Europe, South America and Asia, and employs approximately 8,400 employees. Aleris operates 27 production facilities in the United States with eight production facilities that provided rolled and extruded aluminum products and 19 recycling production plants. Aleris International, Inc., aka IMCO Recycling Inc., and various affiliates filed for bankruptcy on February 12, 2009 (Bankr. D. Del. Case No. 09-10478). The Hon. Brendan Linehan Shannon presides over the cases. Stephen Karotkin, Esq., and Debra A. Dandeneau, Esq., at Weil, Gotshal & Manges LLP in New York, serve as lead counsel for the Debtors. L. Katherine Good, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A. In Wilmington, Delaware, serves as local counsel. Moelis & Company LLC, acts as financial advisors; Alvarez & Marsal LLC as restructuring advisors, and Kurtzman Carson Consultants LLC as claims and noticing agent for the Debtors. As of December 31, 2008, the Debtors had total assets of US$4,168,700,000; and total debts of US$3,978,699,000. In June 2010, Aleris International, Inc., emerged from Chapter 11, having completed its financial and operational restructuring. ALLIS-CHALMERS: 2 Officers Unload Shares for Tax Purposes --------------------------------------------------------- Terrence P. Keane, Senior Vice President-Oilfield Services of Allis-Chalmers Energy, Inc., disclosed that he disposed of 2,380 company shares on July 1, 2010 -- paring his stake to 165,479 shares. The shares were withheld to satisfy tax obligations in connection with the vesting of shares of restricted stock on such date. Ted Pound, General Counsel and Secretary of Allis-Chalmers disclosed that he disposed of 793 company shares on July 1, 2010 -- paring his stake to 99,828 shares. The shares were withheld to satisfy tax obligations in connection with the vesting of shares of restricted stock on such date. Director Zane Tankel disclosed that on June 23, 2010, he acquired 30,000 shares -- raising his stake 243,280 shares. About Allis-Chalmers Energy Houston, Texas-based Allis-Chalmers Energy Inc. (NYSE: ALY) -- http://www.alchenergy.com/-- is an oilfield services company. Allis-Chalmers provides services and equipment to oil and natural gas exploration and production companies, domestically primarily in Texas, Louisiana, New Mexico, Oklahoma, Arkansas, offshore in the Gulf of Mexico, and internationally, primarily in Argentina, Brazil and Mexico. * * * Allis-Chalmers carries 'B-' issuer credit ratings, with stable outlook, from Standard & Poor's. It has 'B3' corporate family and probability of default ratings, with stable outlook, from Moody's. Its senior unsecured debt has 'Caa1' senior unsecured debt rating from Moody's. AMERICAN AXLE: Board Committee OKs Deal with Lancaster ------------------------------------------------------ The Compensation Committee of the Board of Directors of American Axle & Manufacturing Holdings Inc. approved an agreement between Patrick S. Lancaster and American Axle & Manufacturing, Inc., to provide cash payments and certain other benefits to Mr. Lancaster in connection with his retirement from AAM effective January 1, 2011. Effective July 12, 2010, through his Retirement Date, Mr. Lancaster will assume the role of Special Advisor to the Company's Co-Founder, Chairman of the Board & Chief Executive Officer, Richard E. Dauch, a non-officer position. Mr. Lancaster was identified as a named executive officer in the Company's 2010 Proxy Statement. In connection with this agreement, Mr. Lancaster will receive a cash payment of $850,000 in 2010 and a $704,000 annual bonus payment for 2010 payable in 2011. In addition, Mr. Lancaster will receive consulting fees of $420,000 payable in monthly installments in 2011. Also as part of this agreement, all outstanding restricted stock and restricted stock unit awards will vest on the Retirement Date. Payments made pursuant to this agreement are conditioned upon Mr. Lancaster's execution of a full waiver and release of claims against the Company. Mr. Lancaster will remain eligible to receive the award granted to him under the Senior Executive Special Incentive Program and a pro rata share of certain long-term cash incentive awards. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE: AXL) -- http://www.aam.com/-- is a Tier I supplier to the automotive industry. American Axle manufactures, engineers, designs and validates driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, passenger cars, crossover vehicles and commercial vehicles. American Axle is the principal supplier of driveline components to General Motors for its rear-wheel drive light trucks and SUVs manufactured in North America, supplying substantially all of GM's rear axle and front four-wheel drive and all-wheel drive (4WD/AWD) axle requirements for these vehicle platforms. Sales to GM were roughly 78% of the Company's total net sales in 2009, 74% in 2008 and 78% in 2007. In addition to locations in the United States (Michigan, New York, Ohio and Indiana and Pennsylvania), the Company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, Scotand, South Korea and Thailand. The Company's balance sheet as of Dec. 31, 2009, showed $1.987 billion in assets and $2.547 billion of debts, for a $559.9 million stockholders' deficit. AMERICAN INT'L: Settles Securities Fraud Class Actions ------------------------------------------------------ American International Group Inc. approved the terms of a settlement with the lead plaintiffs in the putative securities fraud class actions filed beginning in October 2004 in the Southern District of New York, titled In re AIG Securities Litigation. This litigation is described under "2006 Regulatory Settlements and Related Matters -- Securities Action -- Southern District of New York" in footnote 9 of AIG's unaudited Consolidated Financial Statements included in AIG's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2010. The Settlement is conditioned on, among other things, court approval and a minimum level of shareholder participation. Under the terms of the Settlement, if consummated, AIG will pay an aggregate of $725 million, $175 million of which is to be paid into escrow within ten days of preliminary court approval. AIG's obligation to fund the remainder of the settlement amount is conditioned on its having consummated one or more common stock offerings raising net proceeds of at least $550 million prior to final court approval. AIG has agreed to use best efforts, consistent with the fiduciary duties of AIG's management and Board of Directors, to effect a Qualified Offering, but the decision as to whether market conditions or pending or contemplated corporate transactions make it commercially reasonable to proceed with such an offering will be within AIG's unilateral discretion. In the event that AIG effects a registered secondary offering of common stock on behalf of the U.S. Department of the Treasury resulting in Treasury receiving proceeds of at least $550 million, then market access will be deemed to have been demonstrated and AIG shall be deemed to have consummated a Qualified Offering. AIG, in its sole discretion, also may fund the $550 million from other sources. If AIG does not fund the $550 million before final court approval of the Settlement, the plaintiffs may terminate the agreement, elect to acquire freely transferable shares of AIG common stock with a market value of $550 million provided AIG is able to obtain all necessary approvals, or extend the period for AIG to complete a Qualified Offering. About AIG Inc. Based in New York, American International Group, Inc., is an international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies provide life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. In September 2008, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. In September 2008, the Federal Reserve Bank created an $85 billion credit facility to enable AIG to meet increased collateral obligations consequent to the ratings downgrade, in exchange for the issuance of a stock warrant to the Fed for 79.9% of the equity of AIG. The credit facility was eventually increased to as much as $182.5 billion. AIG has sold a number of its subsidiaries and other assets to pay down loans received from the U.S. government, and continues to seek buyers of its assets. AMERICAN MEDIA: Moody's Downgrades Default Rating to 'Ca' --------------------------------------------------------- Moody's Investors Service downgraded American Media Operations, Inc.'s Probability of Default Rating to Ca from Caa2 following the company's announcement that it has commenced an exchange offer for all of its 14% Senior Subordinated Notes due 2013. In conjunction with the exchange announcement, Moody's put on review for possible upgrade all other ratings given the expected decrease in debt obligations by approximately $200 million net of expected fees and related expenses. Details of the rating action are: * Probability of Default Rating -- to Ca from Caa2 Ratings under review for possible upgrade: * Corporate Family Rating -- currently Caa2 * Senior secured revolving credit facility due 2012 -- currently B3, LGD2, 28% * Senior secured term loan B due 2013 -- currently B3, LGD2, 28% The downgrade of the PDR to Ca reflects Moody's view that American Media's proposed offer for all of the $355.8 million outstanding 14% Senior Subordinate Notes, if successfully concluded, is an effective distressed exchange event of default. According to the terms of the offering, tendering note holders will receive their pro rata share of approximately $103 million in cash, including consent payments, and approximately 95% of the common equity of the company. The transaction is a distressed exchange as it includes a significant discount to par and reduces the existing debt capital structure which Moody's viewed as unsustainable over the medium term. To record this limited default, Moody's expects to downgrade the PDR further to a "/LD" rating upon completion of the exchange offer scheduled to expire on August 11, 2010. The company also commenced a cash tender offer for all of its 9% Senior PIK Notes due 2013. Assuming all $23.7 million of the Senior PIK Notes are tendered the company would pay a total of $24.2 million or 102% of outstanding amounts. As a condition to the consummation of the transaction, the company is required to receive a minimum of $600 million in commitments for new funds. Given this requirement for new financing commitments, the company would be able to fund the $127 million cash portion of the two offers, repay all $432 million of term loans, as well as pay estimated fees and related expenses. The rating review for possible upgrade on the CFR will assess the likelihood that American Media will complete the 14% Senior Subordinated exchange offer thereby reducing debt balances by approximately $200 million net of estimated fees and related expenses, and may result in multiple upgrades. In addition, the review will focus on the company's ability to (i) stabilize circulation revenues and improve advertising sales, (ii) maintain margins, (iii) remain in compliance with financial covenants under the existing senior secured loan credit agreement or proposed financing agreements, and (iv) improve liquidity and leverage credit metrics despite soft, albeit improving, demand for magazine advertising, secular declines in magazine circulation, and strong competition within the celebrity, health and fitness publishing segments. The last rating action occurred on February 10, 2009, when Moody's affirmed the company's Caa2 CFR and revised its PDR to Caa2/LD from Ca. American Media'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 financial and operating 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 American Media's core industry and American Media's ratings are believed to be comparable to those of other issuers of similar credit risk. Headquartered in Boca Raton, Fl, the company is a leading publisher of celebrity journals as well as health and fitness magazines. American Media also provides publishing services to other publishers and arranges for the placement of owned and third party publications with retailers. The company reported sales of $412 million for the fiscal year ended March 31, 2010. ANPATH GROUP: Posts $2.9 Million Net Loss in Fiscal 2010 -------------------------------------------------------- Anpath Group, Inc., filed on July 14, 2010, its annual report for the fiscal year ended March 31, 2010, reporting a net loss of $2,896,411 on $428,861 of revenue for fiscal 2010, compared with a net loss of $4,023,929 on $85,969 of revenue for fiscal 2009. The Company's balance sheet at March 31, 2010, showed $1,375,737 in assets and $3,854,635 of liabilities, for a stockholders' deficit of $2,478,898. Faced with declining liquidity, upcoming interest payments, over $2,910,000 in 2010 debt maturities, and the inability to access the capital markets to restructure its balance sheet, the Company pursued various strategic alternatives in late 2009 and early 2010, including seeking to extend the maturities on its debt due in 2010, seeking to implement debt exchanges, seeking to issue new debt for cash and/or in exchange for debt, and pursuing asset sales. Ultimately, the efforts to restructure outside of Chapter 11 were unsuccessful and Anpath commenced negotiations with its secured lender and certain noteholders. Those negotiations led to the formation of the consensual Plan to restructure the Company's debt obligations, and the Company filed for Chapter 11 on May 20, 2010, to implement its restructuring. Anpath has proposed a plan of reorganization. A private placement offering in the minimum amount of $1,250,000 up to a maximum amount of $1,500,000 will be completed as a condition of emerging from bankruptcy. The Offering will be sold at $.40 per share for a minimum of 3,125,000 and a maximum of 3,750,000 common stock shares. A new Board will be installed at emergence from bankruptcy. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66a5 About Anpath Group Based in Mooresville, N.C., Anpath Group, Inc. (OTC BB: ANPG) -- http://www.anpathgroup.com/-- through its wholly-owned subsidiary EnviroSystems, Inc., produces disinfecting, sanitizing and cleaning products designed to help prevent the spread of infectious microorganisms, while minimizing the harmful effects to people, application surfaces and the environment. The Company filed for Chapter 11 bankruptcy protection on May 20, 2010 (Bankr. D. Del. Case No. 10-11652). Mark E. Felger, Esq., at Cozen O'Connor, assists the Company in its restructuring effort. The Company listed $1,548,646 in assets and $3,536,825 in liabilities. ANV SECURITY: Lack of Revenue Activities Cue Going Concern Doubt ---------------------------------------------------------------- ANV Security Group, Inc., filed on July 16, 2010, its annual report on Form 10-K for the fiscal year ended March 31, 2010. Stan J.H. Lee, CPA, in Fort Lee, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent public accounting firm noted that of the Company's lack of revenue activities and losses from operations. The Company reported a net loss of $369,579 on $15,717 of revenue for fiscal 2010, compared with a net loss of $350,455 on $20,820 of revenue for fiscal 2009. The Company's balance sheet at March 31, 2010, showed $1,521,893 in assets, $45,491 of liabilities, and $1,476,402 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66a8 Shenzhen, China-based ANV Security Group, Inc. was originally called "B.G. S. Energy, Inc." and was incorporated under the laws of the State of Nevada on May 29, 1981. The Company designs, manufactures, assembles and markets advanced and professional security systems that include H.264 IP Camera and DVS series, NVS Center Management System and high-end network DVR. ATLANTIC COAST: U.S. Trustee Unable to Form Creditors Committee --------------------------------------------------------------- The Office of the U.S. Trustee for Region 21 notified the Bankruptcy Court for the Southern District of Florida that until further notice, it will appoint an official committee of unsecured creditors in the Chapter 11 case of Atlantic Coast Paladin Shores, LLC. Sebastian, Florida-based Atlantic Coast Paladin Shores, LLC, filed for Chapter 11 bankruptcy protection on March 2, 2010 (Bankr. S.D. Fla. Case No. 10-15275). Martin Werner, Esq., who has an office in Boca Raton, Florida, assists the Company in its restructuring effort. AVIS BUDGET: Launches Exchange Offer for 9-5/8% Senior Notes ------------------------------------------------------------ Avis Budget Car Rental, LLC, and Avis Budget Finance, Inc., are launching an exchange offer for outstanding 9-5/8% Senior Notes due 2018, in the aggregate principal amount of $450,000,000, for up to $450,000,000 in aggregate principal amount of 9-5/8% Senior Notes due 2018 which have been registered under the Securities Act of 1933, as amended. Terms of the Exchange Offer: -- Expires 5:00 p.m., New York City time, August 12, 2010, unless extended. -- Not subject to any condition other than that the exchange offer does not violate applicable law or any interpretation of the staff of the Securities and Exchange Commission. -- The Company will not receive any proceeds from the exchange offer. -- The exchange of Old Notes for the Exchange Notes should not be a taxable exchange for United States federal income tax purposes. Terms of the Exchange Notes: -- The Exchange Notes will be Avis' senior unsecured obligations, will rank equally with all of Avis' existing and future senior unsecured debt and will be senior to all of its existing and future subordinated debt. -- The Exchange Notes will mature on March 15, 2018. The Exchange Notes will bear interest semi-annually in cash in arrears on March 15 and September 15 of each year, beginning on September 15, 2010. -- Avis may redeem the Exchange Notes in whole or in part from time to time. -- Upon a change of control, Avis may be required to offer to repurchase the Exchange Notes. -- The terms of the Exchange Notes are substantially identical to those of the outstanding Old Notes, except the transfer restrictions, registration rights and additional interest provisions relating to the Old Notes do not apply to the Exchange Notes. A full-text copy of the prospectus is available at no charge at http://ResearchArchives.com/t/s?66b1 About Avis Budget Group Avis Budget Group -- http://www.avisbudgetgroup.com/-- provides vehicle rental services, with operations in more than 70 countries. Through its Avis and Budget brands, the Company is a leading vehicle rental company in each of North America, Australia, New Zealand and certain other regions based on published airport statistics. Avis Budget Group is headquartered in Parsippany, N.J., and has more than 22,000 employees. At March 31, 2010, the Company had total assets of $10.257 billion against total current liabilities of $1.328 billion, total liabilities exclusive of liabilities under vehicle programs of $4.044 billion and liabilities under vehicle programs of $5.987 billion, resulting in stockholders' equity of $226 million. * * * Avis Budget Car Rental LLC continues to carry Moody's Investors Service's B2 corporate family rating. Avis Budget Group Inc. carries Standard & Poor's Ratings Services' B+ corporate credit rating. B4 CATTLE: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: B4 Cattle Company, Inc. 2792 Gold Road Lewisburg, TN 37091 Bankruptcy Case No.: 10-07388 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court Middle District of Tennessee (Columbia) Judge: Marian F. Harrison Debtor's Counsel: Steven L. Lefkovitz, Esq. Law Offices Lefkovitz & Lefkovitz 618 Church St., Suite 410 Nashville, TN 37219 Tel: (615) 256-8300 Fax: (615) 255-4516 E-mail: slefkovitz@lefkovitz.com Scheduled Assets: $1,697,505 Scheduled Debts: $2,104,839 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/tnmb10-07388.pdf The petition was signed by Bert Smith, president. BAY CITI: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: Bay Citi Properties II DE, LLC 2099 Market St San Francisco, CA 94114 Bankruptcy Case No.: 10-32662 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court Northern District of California (San Francisco) Judge: Thomas E. Carlson Debtor's Counsel: John H. MacConaghy, Esq. MacConaghy and Barnier 645 1st St. W #D Sonoma, CA 95476 Tel: (707) 935-3205 E-mail: macclaw@macbarlaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Edward C. Singer, Jr., authorized agent. The Debtor did not file a list of its largest unsecured creditors together with its petition. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Civic Properties DE, LLC 10-_____ __/__10 621 Stockton DE, LLC 10-32661 Assets: $10,000,001 to $50,000,000 Debts: $10,000,001 to $50,000,000 LRL Citigroup Properties II DE, LLC 10-_____ __/__10 Herman Street DE, LLC 10-30413 __/__10 LRL Citi Properties I DE, LLC 10-30414 __/__10 Trophy Properties I DE, LLC 10-30415 __/__10 Sutter Associates DE, LLC 10-30416 __/__10 BAYVIEW HOLDINGS: Files Plan; Disc. Statement Hearing on Sept. 14 ----------------------------------------------------------------- The Hon. Ross W. Krumm of the U.S. Bankruptcy Court for the Western District of Virginia Bayview Holdings, LLC, will consider on September 14, 2010, at 11:00 a.m., approval of a Disclosure Statement explaining Bayview Holdings, LLC's proposed Plan of Reorganization. The hearing will be held at 2nd Floor, 210 Church Ave., Roanoke, Virginia. Objections, if any, are due on September 7. The Debtor 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 the appointment of a disbursing agent to manage and make distributions from a distribution fund. The Plan provides that Tom Lovegrove will serve as the disbursing agent. Under the Plan, the Debtor intends to treat claims as: Class 1 Secured Claims of the Bank of Floyd - the bank will receive all of its principal and accrued interest, and all other fees and expenses that are authorized by the Bank of Floyd loan documents. Class 2 Secured Claims of the County of Franklin, Virginia - all amounts due on each lot or parcel of real estate owned by the Debtor will be paid as and when the lots or parcels sell. The payment will include all interest and accrued charges that are applicable under law. Class 3 Unsecured Creditors of will receive a pro rata distribution based on each unsecured creditor's claim compared to the total amount of all allowed unsecured creditors' claims. Class 4 Equity interests in the Debtor held by the sole member, Tom Lovegrove. Mr. Lovegrove's interest in the Debtor will be cancelled, and because this is a liquidation Plan, he will not retain any ownership interest after the Plan is completed. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/BAYVIEWHOLDINGS_DS.pdf The Debtor is represented by: Bruce E. Arkema, Esq. Kevin J. Funk, Esq. Durrette Bradshaw, PLC Bank of America Center 1111 E. Main Street, 16th Floor Richmond, VA 23219 September 14, is also fixed as the last date for an individual or entity to file proofs of claim against the Debtor. About Bayview Holdings, LLC Moneta, Virginia-based Bayview Holdings, LLC, filed for Chapter 11 bankruptcy protection on November 2, 2009 (Bankr. W.D. Va. Case No. 09-72799). The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. BERT SMITH: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Bert Edgar Smith, IV 2792 Gold Road Lewisburg, TN 37091 Bankruptcy Case No.: 10-07387 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court Middle District of Tennessee (Columbia) Judge: George C. Paine II Debtor's Counsel: Steven L. Lefkovitz, Esq. Law Offices Lefkovitz & Lefkovitz 618 Church St., Suite 410 Nashville, TN 37219 Tel: (615) 256-8300 Fax: (615) 255-4516 E-mail: slefkovitz@lefkovitz.com Scheduled Assets: $1,542,698 Scheduled Debts: $2,100,993 A list of the Debtor's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/tnmb10-07387.pdf The petition was signed by the Debtor. BISCAYNE PARK: U.S. Trustee Unable to Form Creditors Committee -------------------------------------------------------------- The Office of the U.S. Trustee for Region 21 notified the U.S. Bankruptcy Court for the Southern District of Florida that until further notice, it will not appoint an official committee of unsecured creditors in the Chapter 11 case of Biscayne Park LLC. Miami, Florida-based Biscayne Park LLC filed for Chapter 11 bankruptcy protection on April 26, 2010 (Bankr. S.D. Fla. Case No. 10-20941). Joel M. Aresty, Esq., who has an office in Miami Florida, assists the Company in its restructuring effort. The Company listed $13,000,000 in assets and $10,000,000 in debts. BISCAYNE PARK: Joel L. Tabas Appointed Chapter 11 Examiner ---------------------------------------------------------- Donald F. Walton, the U.S. Trustee for Region 21, appointed Joel L. Tabas as Chapter 11 examiner in the case of Biscayne Park LLC. Mr. Tabas can be reached at: One Flagler Building 14 N. E. 1st Avenue, Penthouse Miami, FL 33132 Tel: (305) 375-8171 Miami, Florida-based Biscayne Park LLC filed for Chapter 11 bankruptcy protection on April 26, 2010 (Bankr. S.D. Fla. Case No. 10-20941). Joel M. Aresty, Esq., who has an office in Miami Florida, assists the Company in its restructuring effort. The Company listed $13,000,000 in assets and $10,000,000 in debts. BISCAYNE PARK: Wants Additional 120 Days to Propose Ch. 11 Plan --------------------------------------------------------------- Biscayne Park LLC asks the U.S. Bankruptcy Court for the Southern District of Florida, to extend for 120 days its exclusive period to file a Chapter 11 Plan, and 120 days for soliciting acceptances for the proposed Plan. Absent the extension, the Debtor's exclusive period to file a Plan will expire on August 26, 2010. The Debtor relates that its is in discussion with its lender and the examiner to improve the property. Miami, Florida-based Biscayne Park LLC filed for Chapter 11 bankruptcy protection on April 26, 2010 (Bankr. S.D. Fla. Case No. 10-20941). Joel M. Aresty, Esq., who has an office in Miami Florida, assists the Company in its restructuring effort. The Company listed $13,000,000 in assets and $10,000,000 in debts. BLOCKBUSTER INC: Mark Wattles Retains 15.3% Stake ------------------------------------------------- Mark J. Wattles followed up his Form 4 filing last week with a Form SC13D filing, disclosing he beneficially owns 11,050,000 shares or 15.3% of the outstanding Class B Common Stock of Blockbuster Inc. Those shares are held in Wattles Capital Management, LLC, a Delaware limited liability company, and HKW Trust, a trust organized under the laws of the State of Nevada. Mr. Wattles is the sole member and manager of WCM and owns 100% of its membership interests. Mr. Wattles is the settler and sole trustee of the Trust and exercises sole discretion over the Trust. Mr. Wattles' principal occupation is serving as President of WCM, which is primarily engaged in investing in public and private companies in the consumer products and retail sectors. WCM indirectly owns a majority interest in Ultimate Acquisition Partners, LP, a Delaware limited partnership, which owns and operates consumer electronics retail stores under the name Ultimate Electronics. Mr. Wattles also serves as Chairman of UAP. Prior to forming WCM, Mr. Wattles founded Hollywood Entertainment Corporation, the second largest video rental and retail chain (after Blockbuster Inc.) and the second largest video game specialty retailer (after Game Stop Corp.), where he was Chairman and Chief Executive Officer for more than 17 years before Hollywood was sold for $1.25 billion to Movie Gallery, Inc. in April 2005. The Trust acquires, holds, manages and disposes of assets for the benefit of a member of Mr. Wattles' family and The Wattles Family Foundation. As of July 13, 2010, WCM and the Trust collectively owned 6,200,000 Class A shares and 11,050,000 Class B shares, which represents 5.1% of Blockbuster's outstanding Class A Common Stock and 15.3% of Blockbuster's outstanding Class B Common Stock. As reported by the Troubled Company Reporter on July 14, 2010, Mr. Wattles continued to unload his Blockbuster Inc. Class B shares. Mr. Wattles sold 500,000 Class B shares on July 8 and 9, 2010, getting: -- between $0.080 and $0.084 a share for those sold July 8; and -- between $0.085 and $0.090 a share for those sold July 9. On July 9, 2010, the Troubled Company Reporter said Mr. Wattles unloaded almost 2 million Class B shares in various transactions from July 2 to 7, 2010. In the early transactions, Mr. Wattles sold the Class B shares for roughly $0.1. In later transactions, the shares were sold for less than $0.1. Specifically, in the July 7 transactions, the Class B shares were sold for roughly $0.06. As reported by the Troubled Company Reporter on July 2, 2010, Blockbuster entered into a Forbearance Agreement with certain of its senior secured noteholders that provides the Company with additional time and flexibility as it continues to engage in productive discussions with certain of these noteholders and strategic parties regarding various recapitalization opportunities. Blockbuster's Forbearance Agreement is with noteholders who have, collectively, represented that they hold approximately 70% of the Company's 11.75% senior secured notes due 2014. The noteholders executing it have agreed, through August 13, 2010, from exercising certain rights and remedies they may have under the indenture and related collateral documents arising from the failure by Blockbuster to make the payments owing by it under the senior secured notes on July 1, 2010. Blockbuster has determined that it will not make the payments due on the senior secured notes on July 1, 2010, constituting a $23.9 million amortization payment (inclusive of a 6.0% redemption premium) and an $18.5 million interest payment. By taking this action, Blockbuster will preserve $42.4 million in incremental liquidity. About Blockbuster Inc. Blockbuster Inc. is a global provider of rental and retail movie and game entertainment. It has a library of more than 125,000 movie and game titles. The company may be accessed worldwide at http://www.blockbuster.com/ Blockbuster's quarterly report on Form 10-Q showed a net loss of $65.4 million on $939.4 million of revenue for the 13 weeks ended April 4, 2010, compared with net income of $27.7 million on $1.086 billion of revenue for the 13 weeks ended April 5, 2009. The Company's balance sheet as of April 4, 2010, showed $1.319 billion in assets and $1.693 billion of liabilities, for a stockholders' deficit of $374.2 million. PricewaterhouseCoopers LLP, in Dallas, expressed substantial doubt about the Company's ability to continue as a going concern following Blockbuster's 2009 results. BLOUNT INC: S&P Assigns 'BB-' Rating on $425 Mil. Senior Notes -------------------------------------------------------------- Standard & Poor's Ratings Services said it has assigned its 'BB-' issue-level rating to Blount Inc.'s proposed $425 million senior secured credit facility. S&P assigned a recovery rating of '3' to this debt. At the same time, S&P affirmed its 'BB-' corporate credit rating on the company. The outlook is stable. The affirmation follows the company's announcement that it will amend its credit facility and thereby increase availability under its revolving line of credit and extend debt maturities. "S&P would view completion of the amendment as a favorable development related to Blount's liquidity profile," said Standard & Poor's credit analyst Dan Picciotto. "During the past few quarters, credit measures have been improving as the general economy has stabilized, and the company's credit measures have remained in line with S&P's expectations for the rating," he continued. The ratings on Portland, Ore.-based Blount (a wholly owned subsidiary of unrated Blount International Inc.) reflect the company's aggressively leveraged financial risk profile and its weak business risk profile, which result from limited product diversity and exposure to cyclical end markets. Blount's significant share of replacement product sales, solid market shares, and diversified customer base somewhat offset these factors. Blount is a specialty manufacturer and marketer of a variety of products, including saw chains and other cutting-related products, primarily for the forest products and construction sectors. Blount's competitive strengths include its leading market shares and brand image, particularly under the "Oregon Cutting Systems" name. These factors enable the company to garner a large share of the market for replacement parts. Other business strengths are its good customer mix and geographic diversity. The outlook is stable. Blount's credit measures remain within S&P's range of expectations, and the company appears likely to benefit from a slowly improving operating environment this year. S&P could lower the ratings if the company cannot maintain FFO to total debt of about 15% for a prolonged period and if debt to EBITDA rises to more than 4x. For instance, the combination of a weak market and competitive pressures that cause revenue to decline by about 15% from trailing-12-month levels, operating margin (before D&A) to deteriorate to about 18%, and a failure to reduce debt could strain credit measures. A positive rating action is unlikely at this time and would likely require that S&P has a more favorable assessment of the company's business risk profile or that the company pursues a significantly more conservative financial policy. BP PLC: Asks Shareholders About Possible Restructuring ------------------------------------------------------ The Sunday Times newspaper in London reports that BP Plc is asking shareholders about a restructuring in the wake of its Gulf of Mexico oil spill. The Sunday Times cited unnamed BP insiders. According to The Sunday Times, BP's options include: -- selling its refineries and petrol stations, -- scaling back its U.S. operations, and -- ramping-up in-house engineering instead of outsourcing. BP Plc is seeking to sell half its stake in Alaska's Prudhoe Bay oil field to Apache Corp. Bloomberg's Jeffrey McCracken and Stanley Reed report that a person with knowledge of the matter said that deal has been stalled twice over the weekend, raising doubts about whether the deal will be completed. Two people familiar with the matter, according to Bloomberg, said the companies last week were on track to clinch an agreement for Apache to buy half of BP's Prudhoe stake for between $10 billion and $11 billion in an all-cash transaction. A source told Bloomberg talks between BP and Apache faltered late in the evening on July 16 before resuming Saturday. They hit a snag again early Sunday over issues ranging from the valuation of the deal to how current and future legal liabilities will be addressed. BP, Apache and their advisers began speaking again Monday, the source said. As reported by the TCR on June 17, 2010, BP reached an agreement with the Obama administration to allocate $20 billion to cover Gulf of Mexico oil spill claims. Liabilities aren't capped at $20 billion. The TCR on July 2 said experts looking at a hypothetical bankruptcy filing by BP on an ABI media teleconference on June 29 said that BP has several options to explore in dealing with the worst environment disaster in U.S. history, but the oil giant may consider bankruptcy if it faces a never-ending flow of claims. The Houston Chronicle's Tom Fowler said early last month that BP had dismissed talk that it might seek Chapter 11 bankruptcy protection in the face of falling stock prices and threats from government officials to force the oil giant to pay more in costs related to the massive Gulf of Mexico oil spill. "We categorically deny that we have taken advice on Chapter 11 proceedings," a company spokesman told the Chronicle, according to Mr. Fowler. About BP Plc BP Plc -- http://www.bp.com/-- is one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. Bloomberg's Businessweek notes BP represents 5.6% of the FTSE 100 Index, the second biggest weighting of the top U.K.-listed companies behind London-based bank HSBC Holdings Plc. BP also represents the biggest portion of the FTSE 350 Oil & Gas Producers Index at 31%, and the MSCI EAFE/Energy Index at 16%. BROWN PUBLISHING: Creditors Commences Suit on Lenders ----------------------------------------------------- Bill Rochelle at Bloomberg News reports that the Official Committee of Unsecured Creditors of Brown Publishing Co. has commenced an adversary proceeding against lenders, contending that $72 million in liens given in September 2007 were fraudulent transfers that can be voided in bankruptcy. The Bloomberg report relates that, according to the Committee, Brown's subsidiaries in substance gave guarantees of pre-existing debt owing by sister companies. Because the debt wasn't originally their obligation and they received no proceeds from the loan, the Committee contends the loan was a voidable transfer as to some of the subsidiaries that were made insolvent. On July 12, the Committee filed a motion asking the bankruptcy judge to prohibit the lenders from making a credit bid at an auction for the Debtor's assets. The Debtor has selected Brown Media Corporation, a company formed by insiders, as the stalking horse bidder. The Debtor has entered into an Asset Purchase Agreement dated May 4, 2010, with Brown Media, which provides for the sale of the assets, subject to any higher and better offers that might be submitted for the sale of the assets to the party or parties that submit the highest and best bid. Under the APA, Brown Media will purchase the assets at $15,300,000. An auction was to take place 10 a.m. Monday, July 19, in New York, New York, through the U.S. Bankruptcy Court if a bid in addition to Brown Media's is submitted by July 16. A sale hearing is set for July 22, 2020, if an auction is necessary. Objections to the sale are due July 20, 2010. About Brown Publishing Company Headquartered in Cincinnati, Ohio, The Brown Publishing Company owns business publications in Ohio, Utah, Texas, South Carolina, New York, and Iowa. Brown publishes 15 daily, 32 weekly, 11 business and 41 free publications. There are also 51 websites. Seventy-eight of the publications are in Ohio. Brown publishes Dan's Papers, the weekly newspaper with the largest circulation in the area of eastern Long Island, New York, known as the Hamptons. Brown also publishes the Montauk Pioneer, which it calls the official newspaper of Montauk, New York. The Company filed for Chapter 11 bankruptcy protection on April 30, 2010 (Bankr. E.D.N.Y. Case No. 10-73295). Edward M. Fox, Esq., at K&L Gates LLP, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. CABLEVISION SYSTEMS: GAMCO Holds 4.11% of NY Group Class A Shares ----------------------------------------------------------------- GGCP, Inc., GGCP Holdings LLC, GAMCO Investors, Inc., Gabelli Funds, LLC, GAMCO Asset Management Inc., Teton Advisors, Inc., Gabelli Securities, Inc., Gabelli & Company, Inc., MJG Associates, Inc., Gabelli Foundation, Inc., MJG-IV Limited Partnership and Mario Gabelli disclosed that as of July 13, 2010, they may be deemed to beneficially own in the aggregate 10,329,687 shares or roughly 4.11% of the Cablevision NY Group Class A Common Stock of Cablevision Systems Corporation. So far this month, GAMCO et al., have sold 45,645 Cablevision NY Group Class A Shares. About Cablevision Systems Headquartered in Bethpage, New York, Cablevision Systems Corp. is predominantly a domestic cable TV multiple system operator serving approximately 3.1 million subscribers in and around the New York metropolitan area. Among other entertainment-and media-related business ventures, the company also owns and distributes programming to cable television and direct broadcast satellite providers throughout the United States through its Rainbow National Services subsidiary. At March 31, 2010, Cablevision Systems had $7,364,192,000 in total assets against $13,565,731,000 in total liabilities, $12,540,000 in redeemable non-controlling interests, and $671,000 in Non- controlling interest, resulting in total deficiency of $6,214,079,000. * * * According to the Troubled Company Reporter on June 16, 2010, Moody's Investors Service said that its ratings for Cablevision Systems Corporation and related rated subsidiaries (including CSC Holdings, Inc., Rainbow National Services LLC and Newsday LLC) should not be affected by the company's announcements that it plans to (i) acquire the assets of Bresnan Communications in a leveraging transaction valued at $1.365 billion, and (ii) initiate a share repurchase program totaling $500 million. "Although the company is paying a healthy premium for an already well-run collection assets, and may have postponed a prospective upgrade of its ratings by undertaking the share buyback program at the same time, strong operating performance continues to bode well for further credit enhancements over the next two years," noted Moody's Senior Vice President Russell Solomon. CANWEST GLOBAL: Canada Creditors OK Restated Plan of Compromise --------------------------------------------------------------- Canwest Global Communications Corp. disclosed that affected creditors of Canwest, Canwest Media Inc. and certain of its subsidiaries have overwhelmingly approved a restated consolidated plan of compromise, arrangement and reorganization pursuant to the Companies' Creditors Arrangement Act (Canada) and the Canada Business Corporations Act. The CMI Plan Entities are scheduled to seek approval of the Plan through a Sanction and Vesting Order of the Ontario Superior Court of Justice on July 28, 2010. Should the Court approve the Plan, the CMI Plan Entities will proceed with the implementation of the Plan following the receipt of all required regulatory approvals. At the meetings of affected creditors today, FTI Consulting Canada Inc., in its capacity as the Court-appointed monitor reported that: (a) The holders of CMI's 8% senior subordinated notes due 2012 who provided instructions for voting or otherwise validly voted, registered 100% (in both number and value) in favour of the resolution approving the Plan, and (b) The CMI Plan Entities' ordinary creditors and convenience class creditors who voted in person or by proxy registered in excess of 99% (in both number and value) in favour of the resolution approving the Plan. To be approved, the Plan must be supported by at least a majority by number of affected creditors of the CMI Plan Entities with proven voting claims and represent at least two-thirds in value of the proven voting claims of (a) the beneficial Noteholders that provided instructions for voting or otherwise validly voted at the Noteholders' meeting, and (b) the ordinary creditors and convenience class creditors that validly voted in person or by proxy at the ordinary creditors' meeting. Based on the voting results at the meetings, the Company has achieved these required majorities. A copy of the Plan is available on the Monitor's website at http://cfcanada.fticonsulting.com/cmi More information about the restructuring can be found on the Company's website at http://www.canwest.com and on the Monitor's website at http://cfcanada.fticonsulting.com/cmi About Canwest Global Canwest Global Communications Corp. (TSX: CGS and CGS.A) -- http://www.canwest.com/-- an international media company, is Canada's largest media company. In addition to owning the Global Television Network, Canwest is Canada's largest publisher of English language daily newspapers and owns, operates and holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, web sites and radio stations and networks in Canada, New Zealand, Australia, Turkey, Indonesia, Singapore, the United Kingdom and the United States. On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest Television Limited Partnership (including Global Television, MovieTime, DejaView and Fox Sports World), The National Post Company and certain subsidiaries voluntarily entered into, and successfully obtained an Order from the Ontario Superior Court of Justice (Commercial Division) commencing proceedings under the Companies' Creditors Arrangement Act. The CMI Entities' commencement of these proceedings was undertaken in furtherance of a proposed recapitalization transaction that is supported by over 70% of holders of the 8% senior subordinated notes issued by CMI. On the same day, FTI Consulting Canada Inc., the Court-appointed Monitor in the CCAA proceedings, sought protection in the United States Bankruptcy Court under Chapter 15 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for certain of the entities involved in Canwest's television business that filed for protection under the CCAA, including Canwest, Canwest Media Inc. and Canwest Global Broadcasting Inc./Radiodiffusion Canwest Global Inc. Judge Stuart M. Bernstein presides over the Chapter 15 cases. Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford, Connecticut, serves as Chapter 15 Petitioner's counsel. The Chapter 15 Debtors disclosed estimated assets of $500 million to $1 billion and estimated debts of $50 million to $100 million. In a regulatory filing with the U.S. Securities and Exchange Commission, Canwest Media disclosed C$4,847,020,000 in total assets and C$5,826,522,000 in total liabilities at May 31, 2009. Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy News. The newsletter tracks the CCAA proceedings and Chapter 15 proceedings undertaken by Canwest Global Communications Corp. and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). CAPMARK FINANCIAL: Creditors Investigating $1.5-Bil. Loan --------------------------------------------------------- Capmark Financial Group Inc. agreed that the Official Committee of Unsecured Creditors can examine the Company's files as part of an investigation into a $1.5 billion secured loan made 149 days before the Chapter 11 filing in October. The Committee believes loan proceeds were used to pay off unsecured debt owing to practically the same lenders. The Company agreed to begin producing document by Aug. 2 about the loan and alternatives the Company considered. The Committee reserved the right to demand documents from directors who weren't company employees. 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. Since filing in Chapter 11, Capmark completed three sales to generate more than $1 billion cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. 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) CASELLA WASTE: S&P Affirms Corporate Credit Rating at 'B+' ---------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'B+' corporate credit rating on Rutland, Vermont-based Casella Waste Systems Inc. and revised the outlook to stable from negative. "The ratings affirmation and outlook revision reflect Casella's improving profitability and gains in solid waste collection and recycling volumes, along with S&P's belief that management will continue to make progress with its goal of reducing debt," said Standard & Poor's credit analyst James Siahaan. At the company's fiscal year end of April 30, 2010, Casella had approximately $713 million of debt. S&P's debt balances are adjusted to include effects related to the capitalization of operating leases, asset retirement obligations, self-insurance reserves, and accrued interest. The ratings on Casella reflect a highly leveraged financial risk profile marked by high debt balances and minimal free cash generation. Casella's fair business risk profile reflects the company's participation in an industry with favorable characteristics, its competitive market positions in its regions, and consistent profitability, despite the somewhat modest scale of the company's operations. CELL THERAPEUTICS: Officers & Directors Acquire Restricted Shares ----------------------------------------------------------------- Cell Therapeutics Inc. CEO James A. Bianco disclosed acquiring 9,966,610 shares on July 12, 2010, raising his stake to 13,672,638 shares. Mr. Bianco directly holds those shares. He also indirectly holds 20 shares through his wife and 2 shares through his wife as custodian. Director John H. Bauer disclosed acquiring 996,661 shares of common stock on July 12, 2010, raising his stake to 1,784,808 shares. Director Vartan Gregorian disclosed acquiring 996,661 shares of common stock on July 12, 2010, raising his stake to 1,889,933 shares. Louis A. Bianco, EVP-Finance & Administration, disclosed acquiring 4,041,827 shares, raising his stake to 6,068,249 shares. He directly holds those shares. He also indirectly holds 1,118 shares in trust for his children. Director Richard L. Love disclosed acquiring 996,661 shares of common stock on July 12, 2010, raising his stake to 2,432,773 shares. Daniel G. Eramian, EVP-Corporate Communications, disclosed acquiring 2,989,983 shares of common stock on July 12, 2010, raising his stake to 4,674,899 shares. Director Mary O'Neil Mundinger disclosed acquiring 996,661 shares of common stock on July 12, 2010, raising her stake to 1,849,849 shares. Director Phillip M. Nudelman, Ph.D., disclosed acquiring 1,498,559 shares of common stock on July 12, 2010, raising his stake to 2,534,865 shares. President Craig Philips disclosed acquiring 5,979,967 shares of common stock on July 12, 2010, raising his stake to 9,308,206 shares. Director Fred Telling disclosed acquiring 996,661 shares of common stock on July 12, 2010, raising his stake to 1,783,923 shares. Director and chief medical officer Jack W. Singer disclosed acquiring 4,041,827 shares of common stock on July 12, 2010, raising his stake to 6,076,827 shares. As disclosed by CTIC in its proxy statement filed with the SEC on April 9, 2010, in December 2009 CTIC granted a bonus opportunity to officers and directors that was payable in shares of CTIC stock upon the achievement of certain performance goals before December 31, 2011. CTIC has converted a portion of this bonus opportunity into an award of performance-based restricted stock. The shares acquired on July 12 reflect the grant of replacement performance-based restricted stock award that is subject to the same vesting requirements and forfeiture conditions as the corresponding portion of the officers and directors' December 2009 restricted stock unit award. About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a biopharmaceutical company that develops an integrated portfolio of oncology products aimed at making cancer more treatable. Subsequent to the closure of its Bresso, Italy operations in September 2009, CTI's operations are conducted solely in the United States. At March 31, 2010, the Company had $75,531,000 total assets and $85,243,000 in total liabilities. Going Concern Doubt San Francisco-based Stonefield Josephson, Inc., has included an explanatory paragraph in their report on Cell Therapeutics, Inc.'s December 31, 2009, 2008 and 2007 consolidated financial statements regarding their substantial doubt as to the Company's ability to continue as a going concern. The independent auditors reported that the Company has sustained loss from operations over the audit periods, incurred an accumulated deficit, and has substantial monetary liabilities in excess of monetary assets as of December 31, 2009. Bankruptcy Warning In its Form 10-Q report for the period ended September 30, 2009, filed with the Securities and Exchange Commission, the Company warned it does not expect it will have sufficient cash to fund planned operations through the second quarter of 2010, which raises substantial doubt about its ability to continue as a going concern. The Company said if it fails to obtain capital when required, the Company said it may be required to delay, scale back, or eliminate some or all of its research and development programs and may be forced to cease operations, liquidate its assets and possibly seek bankruptcy protection. CENTERPLATE INC: Moody's Assigns 'B3' Corporate Family Rating ------------------------------------------------------------- Moody's assigned a B3 Corporate Family Rating and B3 Probability of Default Rating to Centerplate, Inc. in connection with a proposed refinancing transaction by its wholly-owned subsidiary, Volume Services America, Inc, and certain subsidiary co-borrowers. Moody's also assigned a B3 rating to a $50 million Term Loan A facility, a $194 million Term Loan B facility, a $50 million revolving credit facility and a $20 million synthetic letter of credit facility. The proceeds from the term loan facilities are expected to be used to refinance existing secured debt, pay an approximately $50 million dividend to shareholders, fund a $16 million acquisition and pay related fees and expenses. The $50 million first lien revolver is expected to have about $40 million of availability at closing. The rating outlook is stable. The B3 Corporate Family Rating is constrained by a track record of declining EBITDA and negative free cash flow from 2006 through 2009, dependence on the cyclical sports and convention center businesses for the majority of profitability and risks related to the recently completed acquisition of Boston Culinary Group. The ratings are supported by the current management team's focus on acquiring profitable and less capital intensive accounts, implemented cost reduction initiatives, moderate pro forma leverage and improved end market diversification through the BCG acquisition. Moody's assigned these ratings (assessments): Volume Services America, Inc. * $50 million 5 year senior secured revolving credit facility, B3 (LGD 3, 47%) * $20 million 5 year senior secured synthetic letter of credit facility, B3 (LGD 3, 47%) * $50 million 5 year senior secured Term Loan A facility, B3 (LGD 3, 47%) * $194 million 6 year senior secured Term Loan B facility, B3 (LGD 3, 47%) Centerplate, Inc. * Corporate Family Rating, B3 * Probability of Default Rating, B3 The ratings are subject to review of the final documentation. Centerplate is in the business of providing concession services, including catering and novelty merchandise items at stadiums, sports arenas, convention centers and other entertainment facilities at various locations in the US and Canada. On a pro forma basis for the acquisition of BCG, 2009 combined revenues were approximately $780 million. Centerplate is controlled by the private equity sponsor Kohlberg & Company, LLC. CFRI/GREENLAW DYER: Section 341(a) Meeting Scheduled for Aug. 11 ---------------------------------------------------------------- The U.S. Trustee for Region 16 will convene a meeting of CFRI/Greenlaw Dyer Road, LLC's creditors on August 11, 2010, at 11:00 a.m. The meeting will be held at RM 1-159, 411 W Fourth Street, Santa Ana, CA 92701. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Santa Ana, California-based CFRI/Greenlaw Dyer Road, LLC, filed for Chapter 11 bankruptcy protection on July 8, 2010 (Bankr. C.D. Calif. Case No. 10-19345). David B. Shemano, Esq., who has an office in Los Angeles, California, assists the Company in its restructuring effort. The Company listed $30,101,904 in assets and $33,610,022 in liabilities. CHINA ARCHITECTURAL: Receives Extended Waiver from Bondholders -------------------------------------------------------------- China Architectural Engineering, Inc., has received an extension of the waiver agreement from its bondholders for the Company's proposed acquisition of a majority stake in Shanghai ConnGame Network Co. Ltd. Under the extended waiver agreement, the Company is able to move forward with its proposed acquisition of a 60% equity interest of ConnGame for the issuance of the 25 million CAEI shares, subject to compliance with the terms and conditions of the waiver. In the waiver, the Company agreed that it would pay to The Royal Bank of Scotland N.V., London Branch and CITIC Capital China Mezzanine Fund Limited all outstanding interest in arrears on the bonds, plus all other applicable interest up until the payment date, within 30 days after the closing of the ConnGame acquisition and issuance of the shares, but no later than September 30, 2010. The Company has also agreed to pay all unsettled amounts of an overdraft facility, which include all outstanding principal and interest amounts. The Company also announced that it has filed its definitive information statement with the Securities and Exchange Commission and intends to mail out the information statement to its shareholders in this week. CAE intends to close the ConnGame acquisition after 20 calendar days of the mailing in accordance with federal proxy rules. The proposed acquisition of ConnGame is subject to a number of closing conditions, including but not limited to the bondholders' continued waiver of their rights to a reduction in the conversion price of the Company's outstanding convertible bonds and exercise price of the related warrants as a result of the proposed acquisition and execution of a definitive acquisition agreement for the proposed acquisition. Mr. Ken Yi Luo, the Company's Chief Executive Officer and Chairman, commented, "We are pleased to have received an extended waiver from our bondholders, providing CAE time to complete the final documentation of our ConnGame acquisition. We appreciate the support of our bondholders and look forward to the completion of the ConnGame acquisition in the near future. We believe that the dedicated efforts of our management team will drive the company's growth and reward our shareholders in the long run." About China Architectural China Architectural Engineering, Inc. is a provider of design, engineering, fabrication and installation services of high-end curtain wall systems, roofing systems, steel construction systems, and eco-energy systems. Founded in 1992, CAEI has maintained its market leadership by providing timely, high-quality, reliable, fully integrated, and cost-effective solutions. Collaborating with world-renowned architects and building engineers, the Company has successfully completed over one hundred large, complex and unique projects worldwide, including numerous award-winning landmarks across Asia's major cities. CIMINO BROKERAGE: Plan Confirmation Hearing Set for July 29 ----------------------------------------------------------- The Hon. Arthur S. Weissbrodt of the U.S. Bankruptcy Court for the Northern District of California a Disclosure Statement will consider on July 29, 2010, at 8:30 a.m., the confirmation of Cimino Brokerage Company's proposed Plan of Reorganization, amended as of June 16. Objections, if any, are due on July 16. The deadline for ballots is also fixed at 5:00 p.m. on July 16. As reported on the Troubled Company Reporter on June 14, according to the amended Disclosure Statement, the Plan provides for the continuation of the Debtor's business operations for the benefit of all creditors. The Debtor proposes to make payments to creditors over a period of 5 years from the effective date from business operations. Additionally, a new value contribution in the amount of $350,000 will be provided to the Debtor by an entity to be formed by one or more of the Debtor's general partners (Armand Cimino, Stephanie Cimino and Vince Cimino.) $250,000 of the new value contribution will be allocated to administrative expense claims, with $100,000 to be available as an initial payment to general unsecured creditors. The status of the Reorganized Debtor entity will also be changed from a general partnership to a limited liability company, with 100% equity interest in the Reorganized Debtor to be issued to the Contributor. A full-text copy of the amended Disclosure Statement is available for free at http://bankrupt.com/misc/CIMINOBROKERAGE_2ndADS.pdf About Cimino Brokerage Salinas, California-based Cimino Brokerage Company, a California general partnership -- aka Cimino Brothers Produce and dba Cimino Brothers Produce -- was founded over 15 years ago by the Cimino family, which has been in the agricultural business since 1895. The Debtor is currently owned 50% by Vincent Cimino, 25% by Armand Cimino and 25% by Stephanie Cimino. The Company is a year-round grower, shipper and distributor of fresh vegetables and fruits, primarily broccoli. The Company, through its Mexican wholly-owned subsidiary (Cimino Brothers Produce Mexico S.A. de C.V. is the creator of the Asian Cut Crown broccoli category, and has developed the largest national network of Asian foodservice distributors and customers in the nation. The Company's administrative operations are carried out from its facilities in Salinas, California. The Company's primary cooling facilities in the United States are located in Laredo, Texas. The Company filed for Chapter 11 bankruptcy protection on November 24, 2009 (Bankr. N.D. Calif. Case No. 09-60291). Levene, Neale, Bender, Rankin & Brill L.L.P. assists the Debtors in their restructuring efforts. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. CIRCUIT CITY: Has Buyer for Corp. Headquarters Lot -------------------------------------------------- Bill Rochelle at Bloomberg News reports that Circuit City Stores Inc. has a $2.75 million offer for the sale of land in the Deep Run Business Park in Richmond, Virginia, where the corporate headquarters was located. The property being sold doesn't include the building. According to the report, other bids are due by July 27. An auction will take place July 29, followed by a hearing to approve the sale on Aug. 4. About Circuit City Headquartered in Richmond, Virginia, Circuit City Stores Inc. (NYSE: CC) -- http://www.circuitcity.com/-- was a specialty retailer of consumer electronics, home office products, entertainment software and related services in the U.S. and Canada. Circuit City Stores together with 17 affiliates filed a voluntary petition for reorganization relief under Chapter 11 of the Bankruptcy Code on November 10 (Bankr. E.D. Va. Lead Case No. 08-35653). InterTAN Canada, Ltd., which runs Circuit City's Canadian operations, also sought protection under the Companies' Creditors Arrangement Act in Canada. Gregg M. Galardi, Esq., and Ian S. Fredericks, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, are the Debtors' general restructuring counsel. Dion W. Hayes, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, are the Debtors' local counsel. The Debtors also tapped Kirkland & Ellis LLP as special financing counsel; Wilmer, Cutler, Pickering, Hale and Dorr, LLP, as special securities counsel; and FTI Consulting, Inc., and Rotschild Inc. as financial advisors. The Debtors' Canadian general restructuring counsel is Osler, Hoskin & Harcourt LLP. Kurtzman Carson Consultants LLC is the Debtors' claims and voting agent. The Debtors disclosed total assets of $3,400,080,000 and debts of $2,323,328,000 as of August 31, 2008. Circuit City has opted to liquidate its 721 stores. It has obtained the Bankruptcy Court's approval to pursue going-out-of- business sales, and sell its store leases. In May 2009, Systemax Inc., a multi-channel retailer of computers, electronics, and industrial products, acquired certain assets, including the name Circuit City, from the Debtors through a Court- approved auction. Bankruptcy Creditors' Service, Inc., publishes Circuit City Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Circuit City Stores Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). CISTERA NETWORKS: Robison Hill Raises Going Concern Doubt --------------------------------------------------------- Cistera Networks, Inc., filed on July 14, 2010, its annual report on Form 10-K for the fiscal year ended March 31, 2010. Robison, Hill & Co., in Salt Lake City, Utah, 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 and has a net capital deficiency. The Company reported a net loss of $339,257 on $2,294,210 of revenue for fiscal 2010, compared to a net loss of $4,628,117 on $3,714,272 of revenue for fiscal 2009. The Company's balance sheet at March 31, 2010, showed $2,047,129 in assets and $4,049,648 of liabilities, for a stockholders' deficit of $2,002,519. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66aa About Cistera Networks Based in Plano, Texas, Cistera Networks, Inc. (OTC BB: CNWT) -- http://www.cistera.com/-- is a provider of enterprise application communications platforms and services. CITIGROUP INC: Earns $2.7 Billion for Second Quarter 2010 --------------------------------------------------------- Citigroup Inc. reported second quarter 2010 net income of $2.7 billion or $0.09 per diluted share, on revenues of $22.1 billion, marking a second consecutive profitable quarter. Citigroup earned $7.1 billion of net income in the first six months of 2010. Revenues declined $3.4 billion and net income was down $1.7 billion from the first quarter of 2010, largely as a result of lower Securities and Banking and Special Asset Pool revenues. Other core businesses showed consistent strength, including Transaction Services with $929 million in net income and sequential revenue growth across all international regions. Provisions for credit losses and for benefits and claims declined $2.0 billion sequentially to $6.7 billion, the lowest level since the third quarter of 2007, reflecting continued improvement in credit quality. This helped increase Regional Consumer Banking's net income by 16% sequentially to $1.2 billion. Although Citigroup maintained expense discipline, expenses were up 3% sequentially, reflecting the impact of the U.K. bonus tax. "I am pleased that we have produced solid operating results for the second consecutive quarter," said Vikram Pandit, Chief Executive Officer of Citi. "We continue to execute our strategy of serving clients with our unique global footprint in both the developed and emerging markets. Most importantly, Citi's quarter- million people around the world are working tirelessly for our clients and shareholders. "While the market environment lowered revenues in Securities and Banking, credit improved for the fourth consecutive quarter. We saw growth internationally, particularly in Transaction Services and Regional Consumer Banking in Latin America and Asia. We continue to reduce the size of Citi Holdings, and it now makes up less than a quarter of Citigroup's balance sheet," added Mr. Pandit. Citigroup has been focusing on its core businesses in Citicorp -- Securities and Banking, Transaction Services and Regional Consumer Banking -- while continuing to divest non-core businesses in Citi Holdings. In the second quarter of 2010, Citicorp earned $3.8 billion while Citi Holdings had a loss of $1.2 billion. Citi Holdings reduced its assets by $38 billion in the second quarter and by a total of $362 billion since the peak in the first quarter of 2008, for a 44% reduction. Citi Holdings now represents less than 25% of Citigroup's assets compared to 38% at its peak. Citigroup continues to increase its financial strength and is one of the best capitalized banks in the world, as indicated by $122.9 billion in Tier 1 Capital and a Tier 1 Common ratio of 9.7%. In addition, it has common equity of $154.5 billion and $46.2 billion in loan loss reserves. "Although economic conditions remain challenging and global regulatory frameworks are uncertain, we believe these results demonstrate that the difficult decisions made by our management team have put in place all the elements for sustained profitability," concluded Mr. Pandit. About Citigroup Inc. Based in New York, Citigroup Inc. (NYSE: C) -- is a global diversified financial services holding company whose businesses provide a broad range of financial services to consumer and corporate customers. Citigroup has roughly 200 million customer accounts and does business in more than 140 countries. Citigroup's businesses are aligned in three reporting segments: (i) Citicorp, which consists of Regional Consumer Banking (in North America, EMEA, Asia, and Latin America) and the Institutional Clients Group (Securities and Banking, including the Private Bank, and Transaction Services); (ii) Citi Holdings, which consists of Brokerage and Asset Management, Local Consumer Lending, and a Special Asset Pool; and (iii) Corporate/Other. As reported in the Troubled Company Reporter on November 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. The U.S. Treasury and the Federal Deposit Insurance Corporation agreed to provide protection against the possibility of unusually large losses on an asset pool of roughly $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup issued preferred shares to the Treasury and FDIC. The Federal Reserve agreed to backstop residual risk in the asset pool through a non-recourse loan. Citigroup, the third-biggest U.S. bank, received $45 billion in bailout aid. Other bailed-out banks, including Bank of America Corp., Wells Fargo & Co., have pledged to repay TARP money. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, repaid TARP funds in June. Citigroup is selling assets to repay the bailout funds. Citigroup is one of the banks that, according to results of the government's stress test, need more capital. COMPLIANCE SYSTEMS: Agile Opportunity Fund Holds 9.9% of Shares --------------------------------------------------------------- Melville, New York-based Agile Opportunity Fund, LLC, disclosed in a regulatory filing that as of July 1, 2010, it may be deemed to beneficially own 29,060,245 shares or roughly 9.9% of the common stock of Compliance Systems Corporation. As reported by the Troubled Company Reporter, Compliance Systems sold and issued to Agile Opportunity Fund a Secured Convertible Debenture in the original principal amount of $175,000 pursuant to the Omnibus Amendment and Securities Purchase Agreement, dated as of July 1, 2010, between the Corporation and Agile. The July 2010 Omnibus Amendment and Agreement further provides that, upon the exercise of the rights granted to Agile in Section 1 thereof, the Corporation shall sell and issue to Agile a second Secured Convertible Debenture in the principal amount of $125,000. The Agile July 2010 Debenture matures on June 30, 2011 and is to bear interest at the rate of 20% per annum. The Corporation further agreed that, in addition to the interest due under the Agile July 2010 Debenture, Agile shall be entitled to an additional payment, on the July 2010 Debenture Maturity Date, such that Agile's annualized rate of return on such principal payment shall be equal to 30%. The Corporation was required to pre-pay all interest on the Agile July 2010 Debenture accruing through September 30, 2010. Payments of interest accruing pursuant to the Agile July 2010 Debenture after September 30, 2010 shall be due and payable on a monthly basis beginning on October 31, 2010. The Agile August 2010 Debenture matures on August 30, 2011, and is to bear interest at the rate of 20% per annum. In connection with the sale and issuance of the Agile July 2010 Debenture, the Corporation issued to Agile 6,000,000 shares of the common stock, par value $0.001 per share of the Corporation. The principal and all accrued and unpaid interest under the Agile 2010 Debentures is, at the option of Agile, convertible into shares of Common Stock at a per-share conversion price equal to the closing trading price of the Common Stock on the conversion date but in no event less than $0.001 per share. The Corporation's obligations under the Agile 2010 Debentures are secured by all of the assets of the Corporation. About Compliance Systems Headquartered in Glen Cove, New York, Compliance Systems Corporation operates its principal businesses through two of its subsidiaries, Call Compliance, Inc., and Execuserve Corp. Call Compliance helps telemarketing operators ensure compliance in the highly regulated, strictly enforced Do-Not-Call and other telemarketing guidelines environment. Execuserve provides organizations, who are hiring employees, with tests and other evaluation tools and services to assess and compare job candidates. The Company's balance sheet at March 31, 2010, showed $1,715,885 in assets and $4,207,631 of liabilities, for a stockholders' deficit of $2,491,746. The Company has suffered continued losses from operations since its inception and incurred a net loss of $653,045 for the three months ended March 31, 2010. The Company had stockholders' deficiencies of $2,491,746 and $2,297,933 and working capital deficiencies of $3,615,564 and $2,147,255 at March 31, 2010, and December 31, 2009, respectively. "The prolonged trend of net losses incurred over the last six fiscal years raises substantial doubt about the Company's ability to continue as a going concern," Compliance Systems said in its Form 10-Q for the first quarter ended March 31, 2010. COMPLIANCE SYSTEMS: Issues Warrants to CFO as Dividend Payment -------------------------------------------------------------- Barry M. Brookstein, Compliance Systems Corp.'s CFO and Secretary, reports that he acquired on June 30, 2010, Common Stock Purchase Warrants that may be converted -- until June 30, 2015 -- to 1,500,000 common shares, at an exercise price of $0.01 per share. He directly holds those securities. Mr. Brookstein is the holder of 500,000 shares of Series B Subordinated Convertible Voting Preferred Stock, par value $0.01 per share, of the Company, upon which the Company has accrued $15,000 of dividends due and payable to Mr. Brookstein for the three months ending June 30, 2010. The Common Stock Purchase Warrants are being issued to Mr. Brookstein as consideration for the Company's inability to pay such accrued dividends due to state law. The exercise price may be subject to future adjustment resulting from future dilutive issuances by the Company or the future termination or expiration of other outstanding securities of the Company. Mr. Brookstein also disclosed he indirectly holds Common Stock Purchase Warrants that may be converted -- until June 30, 2015 -- to 2,250,000 common shares, at an exercise price of $0.01 a share. The warrants are owned by Spirits Management, Inc., a corporation of which Mr. Brookstein is a principal owner. With regard to the Spirit Warrants, Mr. Brookstein is the holder of 750,000 shares of Series B Subordinated Convertible Voting Preferred Stock, par value $0.01 per share, of the Company, upon which the Company has accrued $22,500 of dividends due and payable to Mr. Brookstein for the 3 months ending June 30, 2010. These Common Stock Purchase Warrants are being issued to Mr. Brookstein as consideration for the Company's inability to pay such accrued dividends due to state law. Mr. Brookstein indirectly holds 476,400 shares of the Company's Series C Preferred Stock, which are owned by his minor children over whom he has custodial control. In a separate filing with the Securities and Exchange Commission, Mr. Brookstein said he is the beneficial owner of 298,037,826 shares, representing approximately 51.9% of the Common Stock. Mr. Brookstein also disclosed he and Spirits have each granted Agile Opportunity Fund LLC a limited, non-recourse guarantee of the debt of the Company owed to Agile and in the principal amount of $1.94 million as of July 5, 2010. His limited, non-recourse guarantee is secured by his 200,000 shares of Series A Preferred Stock, 500,000 shares of Series B Preferred Stock and 406,992 shares of Series C Preferred Stock. Spirits' limited, non- recourse guarantee is secured by Spirits' 750,000 shares of Series B Preferred Stock and 450,601 shares of Series C Preferred Stock. About Compliance Systems Headquartered in Glen Cove, New York, Compliance Systems Corporation operates its principal businesses through two of its subsidiaries, Call Compliance, Inc. and Execuserve Corp. Call Compliance helps telemarketing operators ensure compliance in the highly regulated, strictly enforced Do-Not-Call and other telemarketing guidelines environment. Execuserve provides organizations, who are hiring employees, with tests and other evaluation tools and services to assess and compare job candidates. The Company's balance sheet at March 31, 2010, showed $1,715,885 in assets and $4,207,631 of liabilities, for a stockholders' deficit of $2,491,746. The Company has suffered continued losses from operations since its inception and incurred a net loss of $653,045 for the three months ended March 31, 2010. The Company had stockholders' deficiencies of $2,491,746 and $2,297,933 and working capital deficiencies of $3,615,564 and $2,147,255 at March 31, 2010, and December 31, 2009, respectively. "The prolonged trend of net losses incurred over the last six fiscal years raises substantial doubt about the Company's ability to continue as a going concern," Compliance Systems said in its Form 10-Q for the first quarter ended March 31, 2010. COMPLIANCE SYSTEMS: President Defers Q3 Salary, Gets Warrants ------------------------------------------------------------- Dean Garfinkel, president of Compliance Systems Corp., reports that he acquired on July 7, 2010, Common Stock Purchase Warrants that may be converted -- until July 6, 2015 -- to 4,500,000 common shares, at an exercise price of $0.01 per share. He directly holds those securities. The Company has been deferring portions of Mr. Garfinkel's salary and it has determined that it is necessary to continue to defer a portion of his salary through the third fiscal quarter of 2010. He is deferring $45,000 of his $60,000 salary for the third quarter of 2010. The Common Stock Purchase Warrants are being issued to Mr. Garfinkel in consideration of his salary deferral at the rate of 100 warrants for every $1 of salary deferred. In a separate filing with the Securities and Exchange Commission, Mr. Garfinkel said he is the beneficial owner of 100,773,300 shares, representing approximately 26.5% of the Common Stock. Mr. Garfinkel also said he has granted Agile Opportunity Fund LLC a limited, non-recourse guarantee of the debt of the Company owed to Agile and in the principal amount of $1.94 million as of July 5, 2010. His limited, non-recourse guarantee is secured by his 466,750 shares of Series C Preferred Stock. About Compliance Systems Headquartered in Glen Cove, New York, Compliance Systems Corporation operates its principal businesses through two of its subsidiaries, Call Compliance, Inc. and Execuserve Corp. Call Compliance helps telemarketing operators ensure compliance in the highly regulated, strictly enforced Do-Not-Call and other telemarketing guidelines environment. Execuserve provides organizations, who are hiring employees, with tests and other evaluation tools and services to assess and compare job candidates. The Company's balance sheet at March 31, 2010, showed $1,715,885 in assets and $4,207,631 of liabilities, for a stockholders' deficit of $2,491,746. The Company has suffered continued losses from operations since its inception and incurred a net loss of $653,045 for the three months ended March 31, 2010. The Company had stockholders' deficiencies of $2,491,746 and $2,297,933 and working capital deficiencies of $3,615,564 and $2,147,255 at March 31, 2010, and December 31, 2009, respectively. "The prolonged trend of net losses incurred over the last six fiscal years raises substantial doubt about the Company's ability to continue as a going concern," Compliance Systems said in its Form 10-Q for the first quarter ended March 31, 2010. CONTROLADORA COMERCIAL: Files for Chapter 15 Protection ------------------------------------------------------- Controladora Comercial Mexicana SAB filed for Chapter 15 bankruptcy in the United States to aid its main restructuring in Mexico, already approved by creditors, Dawn McCarty and Tiffany Kary at Bloomberg News report. The report relates that CCM listed both debt and assets of more than US$1 billion in documents filed in U.S. Bankruptcy Court in Manhattan. The report relates that the U.S. filing seeks to protect the company from U.S. lawsuits and creditor claims, following a July 14 announcement that it filed to restructure in Mexico. According to the report, the Chapter 15 filing was made to stop creditors such as some noteholders from taking actions to derail CCM's efforts to restructure. As reported in the Troubled Company Reporter-Latin America on July 16, 2010, Bloomberg News said that Controladora Comercial filed for pre-approved bankruptcy on July 14, 2010. Operations will continue normally, the company said in an e-mailed statement obtained by the news agency. According to Dow Jones Newswires, Comercial Mexicana has submitted its prepackaged US$1.54 billion debt-restructuring agreement to a Mexican court with 98% of its creditors on board. The report related that the restructuring agreement, which was announced in late May, has the support of all of its derivatives counterparties and bank creditors, and 88% of its bond creditors. The restructuring already has been approved by the company's shareholders, the report says. CCM's debt, Bloomberg notes, includes three types of unsecured notes: -- US$200 million in notes due 2015, -- MXN3 billion (US$232.4 million) in notes due 2027, and -- MXN111.3 million in notes due 2010. The report, citing court papers, relates that the company also has Mexican commercial paper worth MXN1.5 billion, peso-denominated bank debt of MXN2.545 billion, and U.S. dollar-denominated bank debt of US$99.4 million. Under the pre-approved plan, the report says, derivative counterparties and commercial bank creditors will exchange their current claims for a share of a new debt, and noteholders will get a portion of new bonds, some denominated in U.S. dollars, others in pesos. Law firm Fried Frank Harris Shriver & Jacobson, based in New York, is representing Controladora Comercial Mexicana SAB in the Chapter 15 case. The case is In re Controladora Comercial Mexicana SAB, 10-13750, U.S. Bankruptcy Court, Southern District of New York (Manhattan). About Comerci Controladora Comercial Mexicana SAB de CV a.k.a Comerci (MXK:COMERCIUBC) -- http://www.comerci.com.mx/-- is a Mexican chains of retail stores, as well as a chain of family restaurants under the Restaurantes California brand name. In addition, CCM owns a 50% interest in the Costco de Mexico, a joint venture with Costco Wholesale Corporation, which operates a chain of membership warehouses in Mexico. The company's store chains include Comercial Mexicana, City Market, Mega, Bodega CM, Sumesa and Alprecio, among others. As of December 31, 2007, CCM operated 214 commercial units and 71 restaurants across Mexico. The company's retail outlets sell a variety of food items, including basic groceries and perishables, and non-food items, which include electronics, home furnishings, personal hygiene products and clothing. CCM is a parent of Tiendas Comercial Mexicana SA de CV, Tiendas Sumesa SA de CV, Restaurantes California SA de CV and Costco de Mexico SA de CV, among others. DENNY'S CORPORATION: Names Gregg Dedrick to Board of Directors -------------------------------------------------------------- Denny's Corporation said that Gregg R. Dedrick has been appointed to its Board of Directors. Mr. Dedrick has held senior executive positions at KFC, Yum Brands, Pepsi-Cola and Pizza Hut and brings nearly 30 years of experience in operations and organizational resource planning in franchised based restaurant systems. Brenda J. Lauderback, chair of Denny's Corporate Governance and Nominating Committee, stated, "We are very pleased to add Gregg to the Denny's Board of Directors. He brings significant restaurant industry experience, including leadership positions with several well respected restaurant brands. In particular, his experience in concept development and execution, building performance based reward systems for management teams, and in developing organizational cultures that are focused on customer service will be of great benefit to Denny's as we complete the Company's transformation and aim for best-in-class execution at all levels of the business. Gregg will bring valuable and fresh perspective to the Board and we look forward to his contribution." Mr. Dedrick was a co-founder of Whole Strategies, an organizational consulting firm, in 2009. Prior to that, he was President and Chief Concept Officer at KFC for five years where he led the development of the company's grilled chicken product. He previously served as EVP, People and Shared Services at Yum Brands; Chief People Officer at Yum Brands; and SVP Human Resources for Pizza Hut and KFC. About Denny's Corporation Based in Spartanburg, South Carolina, Denny's Corporation (NASDAQ: DENN) -- http://www.dennys.com/-- is one of America's largest full-service family restaurant chains, consisting of 1,322 franchised and licensed units and 237 company-owned units, with operations in the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico. According to the Troubled Company Reporter on June 14, 2010, Moody's Investors Service stated that the B2 Corporate Family and Probability of Default ratings and the Stable rating outlook for Denny's Holdings, Inc., will not immediately be affected by the departure of Nelson Marchioli as Chief Executive Officer. ELBIT VISION: Recurring Losses Prompt Going Concern Doubt --------------------------------------------------------- Elbit Vision Systems Ltd. filed on July 15, 2010, its annual report on Form 20-F for the fiscal year ended December 31, 2009. Brightman Almagor Zohar & Co., in Tel Aviv, Israel, expressed substantial doubt about Elbit Vision Systems Ltd. and subsidiaries' ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring losses from operations and has an accumulated deficit as of December 31, 2009. The Company reported a net loss of $7.7 million on $12.6 million of revenue for 2009, compared with a net loss of $7.5 million on $22.1 million of revenue for 2008. The Company's balance sheet at December 31, 2009, showed $9.6 million in assets and $15.0 million of liabilities, for a stockholders' deficit of $5.4 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66af Caesarea, Israel-based Elbit Vision Systems Ltd. (Nasdaq: EVSNF.OB) -- http://www.evs-sm.com/-- offers a broad portfolio of automatic State-of-the-Art Visual Inspection Systems for both in- line and off-line applications, and quality monitoring systems used to improve product quality, safety, and increase production efficiency. The headquarters, manufacturing and R&D of the Company are all located in Israel. ENERGY FUTURE: Units Launch Exchange Offers of Outstanding Notes ---------------------------------------------------------------- Energy Future Holdings Corp. said that its direct, wholly-owned subsidiary, Energy Future Intermediate Holding Company LLC, and EFIH's direct, wholly-owned subsidiary, EFIH Finance Inc. are commencing exchange offers to exchange the outstanding 11.250%/12.000% Senior Toggle Notes due 2017 and 10.875% Senior Notes due 2017 of EFH Corp. for up to $2.18 billion aggregate principal amount of 10.000% Senior Secured Notes due 2020 to be issued by the Offerors and an aggregate of $500 million in cash, upon the terms and subject to the conditions set forth in the prospectus relating to the Exchange Offers and the related Consent and Letter of Transmittal. The maximum aggregate principal amount of New Senior Secured Notes issuable in the Exchange Offers, which is referred to herein as the "Maximum Exchange Amount," will not exceed $2.18 billion. The purpose of the Exchange Offers is to reduce the outstanding principal amount, reduce interest expense and extend the weighted average maturity, of the long-term debt of EFH Corp. and its subsidiaries. Concurrent with the Exchange Offers, and upon the terms and subject to the conditions more fully described in the Prospectus and the related Consent and Letter of Transmittal, EFH Corp. is soliciting consents from holders of Old Notes to certain proposed amendments to the indenture pursuant to which the Old Notes were issued. The Proposed Amendments are summarized below. On July 15, 2010, EFH Corp., EFIH and EFIH Finance entered into exchange agreements with certain institutional investors that are holders of certain of the Old Notes, pursuant to which such holders agreed to participate in the Exchange Offers and the Consent Solicitation. EFH Corp. and the Offerors expect that such holders will tender and deliver consents in respect of approximately $2.3 billion aggregate principal amount of Old Notes, representing approximately 52% of the aggregate principal amount of outstanding Old Notes, in the Exchange Offers and the Consent Solicitation pursuant to these agreements. As a result of these agreements to participate in the Exchange Offers and the Consent Solicitation, it is expected that no additional Old Notes would need to be validly tendered in the Exchange Offers or related Consents validly delivered in the Consent Solicitation for the minimum condition to the Exchange Offers to be satisfied and to obtain the requisite Consents to adopt the Proposed Amendments. About Energy Future Energy Future Holdings Corp. is a diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80%-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas- Fort Worth. * * * Energy Future Holdings Corp. continues to carry Moody's Investors Service "Caa1" Corporate Family Rating, with negative rating outlook. As reported by the Troubled Company Reporter on April 7, 2010, Fitch Ratings downgraded to 'B-' from 'B' the Issuer Default Ratings of Energy Future Holdings Corp.; Energy Future Intermediate Holding Company LLC; Texas Competitive Electric Holdings Company LLC; and Energy Future Competitive Holdings Company. EURONET WORLDWIDE: Moody's Upgrades Corp. Family Rating to 'Ba3' ---------------------------------------------------------------- Moody's Investors Service upgraded Euronet Worldwide, Inc's corporate family and probability of default ratings to Ba3 from B1, and the ratings for its senior secured credit facilities to Ba1 from Ba2. The ratings outlook is stable. Concurrently, Moody's also upgraded the Company's Speculative Grade Liquidity rating to SGL-1 from SGL-2. The upgrade of the corporate family rating recognizes Euronet's track record of steady deleveraging through debt reduction and EBITDA growth, and the Company's stable free cash flow generation, particularly during a difficult global macro-economic environment in 2008 and 2009. The upgrade reflects Moody's expectations that Euronet's revenue and EBITDA growth rates will modestly improve year-over-year, driven by the Company's well established market position in its key markets, new product offerings, geographic expansion, and generally a more favorable economic outlook relative to the prior year. The Ba3 corporate family rating reflects Euronet's good market position in its key markets within its electronic financial transactions, prepaid and money transfer segments. The rating also considers the Company's good business execution, evidenced by revenue and EBITDA growth of about 8%-to-10% (CAGR between 2007 and 2009, on a constant US Dollar basis) through organic growth and acquisitions, and the geographic and end-customer diversity of the Company's revenues. Euronet's Ba3 corporate family rating is supported by its moderate leverage of 2.6x (Total Debt/EBITDA, Moody's adjusted) and good free cash flow generation of about 10%- to-15% of total debt (excluding changes in working capital). However, Euronet's rating is constrained by its moderate scale, as measured by normalized earnings and free cash flows, and low profitability. In addition, the rating considers the Company's highly competitive business environment, its challenges in driving organic revenue growth amid a slow global economic recovery and increasing pricing pressure, particularly on ATM transaction-based revenues. Moody's believes that ATM usage fees will likely trend down, especially in jurisdictions where they are comparatively higher, due to downstream impacts of regulatory pressure to lower "interchange fee", which in turn could pressure Euronet's highly profitable ATM transaction-based revenues. Specifically, Euronet faces a reduction in interchange fee in Poland by Visa Europe (from about PLN 3.50 to PLN 1.30), which management believes could reduce the Company's pre-tax profits by about $5.6 million in fiscal year 2010 and $5 million in fiscal year 2011. Moody's notes that Euronet also faces uncertainty in sustaining its increased ATM surcharge rates in Germany, which could have some impact on the Company's profitability. The rating agency also believes that revenue growth will likely be constrained, at least in the near term, due to continued softness (albeit improving) in money transfers from the U.S. to Mexico and challenges in replacing revenues from mobile recharge product that has matured in certain legacy markets. While the Ba3 corporate family rating considers modest-sized acquisitions to augment organic cash flow growth, the rating could likely be lowered if the Company were to pursue large debt- financed acquisitions that could materially alter its capital structure and increase business risk. These ratings were upgraded: * Corporate Family Rating to Ba3 from B1 * Probability of Default Rating to Ba3 from B1 * $100 million Senior Secured Revolving Credit Facility due 2012 to Ba1 (LGD2, 18%) from Ba2 (LGD2, 26%) * $129 million of Senoir Secured Term Loan to due 2014 to Ba1 (LGD2, 18%) from Ba2 (LGD2, 26%) * Speculative Grade Liquidity to SGL-1 from SGL-2 The last rating action on Euronet took place on March 12, 2007, when Moody's assigned first-time ratings to its senior secured credit facilities, which were used to finance in part the acquisition of RIA Envia. Euronet Worldwide, headquartered in Leawood, Kansas, is a global electronic payments provider. The Company mainly provides automated teller machine, point-of-sale, and card outsourcing service; electronic distribution of mobile airtime and other prepaid product, and global consumer money transfer services. Revenues for the LTM 1Q 2010 period were $1.05 billion. EVERGREEN INVESTMENTS: Plans to Liquidate Evergreen Int'l Fund -------------------------------------------------------------- The Board of Trustees of Evergreen International Balanced Income Fund approved the liquidation of the Fund. The liquidation is expected to occur after the close of business on Monday, August 16, 2010. Shares of the Fund will cease to be traded on the New York Stock Exchange at that time. Shareholders at that time will receive a liquidating distribution equal to the net asset value of their investment in the Fund as of the close of business on August 16, 2010. The Fund seeks to provide a high level of income by primarily investing in dividend-paying international stocks and other equity securities and international debt securities. The Fund seeks to supplement its current income by writing call options on international indices. The Fund's investment advisor, Evergreen Investment Management Company, LLC, has informed the Fund's Trustees that it believes that declines over time in the current income available for distribution by the Fund and the Fund's recent investment performance have contributed to the discount at which the Fund's shares trade to their net asset value. Evergreen does not expect the Fund's income available for distribution to increase for the foreseeable future due, in part, to anticipated changes to the U.S. tax code. In light of these and other factors, and after reviewing various other strategic options, Evergreen recommended to the Trustees that the Fund be liquidated. A meeting of shareholders of the Fund held on July 9, 2010, to consider proposals to approve new advisory and subadvisory contracts and Trustee appointments was adjourned to July 30, 2010. No action is expected to be taken on the proposals at that adjourned meeting. The dividend that the Fund declared on June 10, 2010, which is payable August 2, 2010, to shareholders of record on July 15, 2010, will be the Fund's final regular monthly dividend. Any income or gain that otherwise would have been distributed by way of a dividend declared in July 2010 and payable in September 2010 will instead be distributed as a dividend to be paid on or before the date of the Fund's liquidation. The Fund is a closed-end, U.S.-registered management investment company advised by Evergreen Investment Management Company, LLC, with total net assets of $168 million as of June 30, 2010. For more information, please visit the News Room page on http://www.EvergreenInvestments.comor the Press Room on http://www.wellsfargo.com/advantagefunds, contact your financial advisor, or call 1-800-343-2898. The Fund's shares are no longer offered as an initial public offering and are only offered through broker/dealers on the secondary market. About Evergreen Investments Evergreen Investments is one of the brand names under which Wells Fargo & Company conducts its investment management business and is part of the Wells Fargo Asset Management Group. Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets as of March 31, 2010, providing banking, insurance, investments, mortgage and consumer finance through almost 11,000 stores and the internet across North America and internationally. The Wells Fargo Asset Management Group serves individual and institutional investors through a broad range of investment products; strives to meet client investment objectives through disciplined, team-based asset management; and manages more than $465 billion in assets as of March 31, 2010. For more information on Evergreen, please visit http://EvergreenInvestments.com Evergreen Investment Management Company, LLC, is a subsidiary of Wells Fargo & Company and is an affiliate of Wells Fargo & Company's broker/dealer subsidiaries. Evergreen InvestmentsSM is a service mark of Evergreen Investment Management Company, LLC. Copyright 2010. Evergreen Investment Management Company, LLC. EXTENDED STAY: ESA TXGP Proposes to Set Claims Bar Date ------------------------------------------------------- ESA TXGP LLC and four other debtor affiliates of Extended Stay Inc. sought and obtained a Court ruling that establishes August 17, 2010, as the deadline for creditors to file proofs of claim in their bankruptcy cases. The other debtor affiliates are ESH/MSTX GP LLC, ESH/TXGP LLC, ESA P Portfolio TXNC GP LLC and ESH/TN Member Inc. The "Additional Debtors" filed for bankruptcy protection eight months after ESI and its 60+ affiliates filed their Chapter 11 cases. Jacqueline Marcus, Esq., at Weil Gotshal & Manges LLP, in New York, related that the Additional Debtors have no known creditors and are not parties to any executory contract or lease. She pointed out that setting a claims bar date will provide certainty and assist the Additional Debtors as they prepare for their emergence from bankruptcy. For claims that stem from the rejection of executory contracts and leases, creditors are required to file their proofs of claim by the later of the (i) claims bar date, or (ii) within 45 days after the effective date of the rejection. Creditors affected by any amendment of the Additional Debtors' schedule of assets and liabilities are required to file their proofs of claims by the later of (i) the claims bar date, or (ii) within 30 days after notice of the amendment is served. Process for Filing Proofs of Claim Creditors, if any, that have claims against more than one of the Additional Debtors are required to file a separate proof of claim against each Additional Debtor. Proofs of claim will be deemed timely filed only if they are received by Kurtzman Carson Consultants LLC or by the Court on or before August 17, 2010. Proofs of claim sent by facsimile, telecopy or electronic mail will not be accepted. These creditors are not required to file a proof of claim: (1) Any entity or person whose claim is added to the Additional Debtors' schedules of assets and liabilities, and whose claim is not described as disputed, contingent or unliquidated; who does not dispute the amount, nature or priority of the claim stated in the schedules; and who does not dispute that the claim is an obligation of the specific company; (2) Any entity or person that holds an interest in ESA TXGP and the other Additional Debtors, which is based exclusively on the ownership of common or preferred stock, membership interests, partnership interests, or warrants or rights to purchase, sell or subscribe to that security or interest; (3) Any entity or person whose claim had already been paid in full; (4) Any holder of a claim allowable as an administrative expense; (5) Any person or entity that holds a claim, which has been allowed by an order issued by the Court on or before August 17, 2010; (6) Any holder of a claim for which a separate deadline is fixed by the Court; (7) ESI or any of its affiliated Original Debtors to the extent it has a claim against the Additional Debtors; (8) Any affiliate or wholly owned subsidiary of ESI or its affiliated Original Debtors that has a claim against the Additional Debtors; (9) Any holder of a claim who has already properly filed a proof of claim with the Clerk of the Court or KCC; and (10) U.S. Bank, National Association and the trust it administers. Any person or entity that relies on the schedules of ESA TXGP and the other Additional Debtors is responsible for determining that its claim is accurately listed in the schedules. Any creditor that is required to file a proof of claim but fails to do so before claims bar date will be barred and enjoined from asserting its claim. The Additional Debtors intend to mail a notice of the claims bar date and have it published in the national edition of The Wall Street Journal 28 days before the Bar Date. About Extended Stay Extended Stay is the largest owner and operator of mid-price extended stay hotels in the United States, holding one of the most geographically diverse portfolios in the lodging sector with properties located across 44 states (including 11 hotels located in New York) and two provinces in Canada. As a result of acquisitions and mergers, Extended Stay's portfolio has expanded to encompass over 680 properties, consisting of hotels directly owned or leased by Extended Stay or one of its affiliates. Extended Stay currently operates five hotel brands: (i) Crossland Economy Studios, (ii) Extended Stay America, (iii) Extended Stay Deluxe, (iv) Homestead Studio Suites, and (v) StudioPLUS Deluxe Studios. Extended Stay Inc. and its affiliates filed for Chapter 11 on June 15, 2009 (Bankr. S.D.N.Y. Case No. 09-13764). Judge James M. Peck handles the case. Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, in New York, represents the Debtors. Lazard Freres & Co. LLC is the Debtors' financial advisors. Kurtzman Carson Consultants LLC is the claims agent. Extended Stay had assets of $7.1 billion and debts of $7.6 billion as of the end of 2008. Bankruptcy Creditors' Service, Inc., publishes Extended Stay Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings undertaken by Extended Stay Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). FAIRMOUNT MINERALS: S&P Assigns 'BB-' Corporate Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its preliminary 'BB-' corporate credit rating to U.S.-based frac sand producer Fairmount Minerals Ltd. based on the proposed terms of their transaction. The outlook will be stable. At the same time, on a preliminary basis, S&P assigned a 'BB' issue-level rating and '2' recovery rating to the three debt issues that are part of the proposed senior secured credit facility, including the proposed $75 million senior secured revolving credit facility due 2015, the $150 million senior secured term loan due 2015, and the $550 million senior secured term loan due 2016. The preliminary '2' recovery rating indicates S&P's expectation of substantial (70%-90%) recovery in the event of a payment default. "S&P's preliminary rating and outlook are based on the likelihood that Fairmount will generate around $200 million in EBITDA this year, reflecting solid frac sand demand," said Standard & Poor's credit analyst Sherwin Brandford. This level of earnings will support pro forma credit metrics in line with a 'BB-' rating given the proposed capital structure, with funds from operations (FFO) to debt of around 20%. "Looking further ahead," added Mr. Brandford, "S&P believes that performance in 2011 will likely remain around the same level and therefore expect the company's credit metrics to stay in line with a 'BB-' rating, at least through 2011." S&P's stable outlook also reflects its expectation that the company will remain in compliance with the covenants under the credit facility and maintain cushion of at least 10%, as the proposed covenants tighten over the next two years. FORUM HEALTH: To Provide Copies of MOU to MBIA Insurance -------------------------------------------------------- According to insurancenewsnet.com, a federal bankruptcy court ordered Forum Health to provide copies of the memorandums of understatement to its unions and Ardent Health Service to MBIA Insurance. The report relates that the company and Ardent argued that the memorandums, the approval of which was followed by an offer by Ardent to buy Forum for $69.8 million, contain privileged information and refused to make them available to MBIA. An MBIA representative said the memos are necessary for MBIA to determine whether Ardent's offer maximizes the company's assets and the deal give Ardent an unfair advantage over other bidders, report relates. About Forum Health Forum Health and its affiliates filed for Chapter 11 protection on March 16, 2009 (Bankr. N.D. Ohio Lead Case No. 09-40795). Paul W. Linehan, Esq., and Shawn M Riley, Esq., at McDonald Hopkins LLC, serve as lead counsel to the Debtors. The Debtors have also tapped Michael A. Gallo, Esq. at Nadler Nadler & Burdman Co., LPA as co- counsel; Kurtzman Carson Consultants LLC as claims, noticing and balloting agent; and Huron Consulting Services LLC as financial advisors. Alston & Bird LLP represents the official committee of unsecured creditors formed in the Chapter 11 cases. At the time of its filing, Forum Health estimated that it had assets and debts both ranging from $100 million to $500 million. FRANCES CROFTS: Case Summary & 13 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Frances G. Crofts 135 Fairview Dr Neshanic Station, NJ 08853 Bankruptcy Case No.: 10-31778 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Kathryn C. Ferguson Debtor's Counsel: Michael McLaughlin, Esq. Wasserman, Jurista, Stolz P.O. Box 1029 225 Millburn Avenue Millburn, NJ 07041 Tel: (973) 467-2700 Fax: (973) 467-8126 E-mail: mmclaughlin@wjslaw.com Scheduled Assets: $1,154,758 Scheduled Debts: $1,863,605 A list of the Debtor's 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb10-31778.pdf The petition was signed by the Debtor. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Crofts & Miller, Inc. 09-11393 02/03/09 FX REAL ESTATE: Stockholders Elect Six Directors ------------------------------------------------ FX Real Estate and Entertainment Inc. held its 2010 Annual Meeting of Stockholders at which the stockholders (i) elected six directors until the next annual meeting of stockholders and until their respective successors are duly elected and qualified and (ii) ratified the appointment of L.L. Bradford & Company, LLC as independent registered public accounting firm for the fiscal year ending December 31, 2010. The elected directors are: * Robert F.X. Sillerman * Paul C. Kanavos * Michael J. Meyer * John D. Miller * Harvey Silverman * Robert Sudack About FX Real Estate and Entertainment Based in New York, FX Real Estate and Entertainment Inc. owns and operates 17.72 contiguous acres of land located at the southeast corner of Las Vegas Boulevard and Harmon Avenue in Las Vegas, Nevada. The Las Vegas property is currently occupied by a motel and several commercial and retail tenants with a mix of short and long-term leases. The first lien lenders had a receiver appointed on June 23, 2009, to take control of the property and as a consequence, the property is no longer being managed or operated by the Company. The Company's balance sheet at March 31, 2010, showed $141.3 million in total assets and $503.7 million in total current liabilities and zero long-term liabilities, for a total stockholders' deficit of $362.4 million. LL Bradford, in Las Vegas, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company is in default under the mortgage loan, has limited available cash, has a working capital deficiency and will need to secure new financing or additional capital in order to pay its obligations. GARLOCK SEALING: Court Grants Final Approval to DIP Financing ------------------------------------------------------------- Judge George R. Hodges of the U.S. Bankruptcy Court for the Western District of Northern Carolina authorized Garlock Sealing Technologies LLC on a final basis to enter into a $10,000,000 financing arrangement with Bank of America, N.A., pursuant to a Postpetition Loan and Security Agreement. Any and all objections to the DIP Motion, to the extent not withdrawn with prejudice, waived or resolved by consent at or before a June 30, 2010 final hearing, are overruled and denied, Judge Hodges averred. All obligations under the DIP Loan Agreement, including all credit extensions and banking relationship debt will continue to be secured by security interests and liens in favor of the DIP Lender with respect to certain property of each Debtor and all cash and non-cash proceeds of that property, Judge Hodges said. The DIP Lender will also be deemed to have a perfected security interest in and lien upon all of the "Springing Collateral" as security for the repayment of the DIP Obligations, Judge Hodges noted. Springing Collateral means all real property and equipment of the Debtors -- fixed assets --, software and intellectual property embedded in the Fixed Assets, and general intangibles, chattel paper and documents exclusively related to the Fixed Assets. All DIP Obligations will constitute an allowed administrative expense claim under Section 503(b) of the Bankruptcy Code and will constitute an allowed superpriority claim pursuant to Section 364(c)(1) of the Bankruptcy Code over all other administrative expenses, Judge Hodges ruled. Judge Hodges further averred that any lien, secured status, superpriority administrative status, administrative status or any asserted priority in entitlement, including the DIP Liens and the Superpriority Claim, will be subject and subordinate to the payment of: (i) accrued and unpaid professional expenses of professionals, to the extent that those expenses are for services rendered or expenses incurred by those Professionals before the occurrence of a Carve-Out Event are approved for payment by final order of the Court and do not exceed $850,000 in the aggregate, less the balance, if any, of any retainers held by any Professional at the time of that Carve-Out Event; (ii) Professional Expenses of Professionals, to the extent that those Professional Expenses are incurred after the occurrence of the Carve-Out Event, are approved for payment by final order of the Court and do not exceed $150,000 in the aggregate; and (iii) quarterly fees required to be paid pursuant to 2015(a) of the Federal Rules of Bankruptcy Procedure and Section 1930(a)(6) of Title 28 of the U.S. Code that are accrued and unpaid as of the Carve-Out Event. A Carve-Out Event means the termination of the commitment for the DIP Loans. A full-text copy of the Final DIP Order dated July 15, 2010, is available for free at: http://bankrupt.com/misc/Garlock_Jul15FinDIPOrd.pdf Before entry of the Final DIP Order, on behalf of the Debtors, Ashley K. Neal, Esq., at Rayburn in Charlotte, North Carolina, disclosed that the Debtors, the Official Committee of Asbestos Personal Injury Claimants and BofA have agreed on changes to the form of order with respect to the DIP Motion. Those changes are incorporated in the Final DIP order, she related. She added that no objections have been filed as of July 14, 2010. The Facility would provide a senior secured revolving credit facility pursuant to which borrowers Garlock Sealing Technologies LLC and Garrison Litigation Management Group, Ltd. may obtain revolver loans from time to time up to a maximum principal amount outstanding at any time of $10,000,000. The proposed DIP Facility would also contain an $8,000,000 letter of credit sub-facility for standby letters of credit. Actual borrowing availability at any date would be determined by reference to a Borrowing Base of specified percentages of eligible accounts receivable and inventory, which borrowing base would be reduced by Revolver Loans and letters of credit outstanding and certain reserves. The other salient terms of the DIP Facility are: Interest Rate: The rate of interest for Revolver Loans (a) made or outstanding as Base Rate Loans equals the Base Rate in effect from time to time plus 2.5% or (b) made or outstanding as LIBOR Loans, the Adjusted LIBOR Rate for the applicable Interest Period plus 3.5%. Maturity: December 7, 2011, subject to up to four one-year renewals upon the Borrowers' request and the satisfaction of certain conditions to each renewal. Fees: Fees include a closing fee of $100,000 due at Closing. Other fees include an unused line fee, certain fees associated with letters of credit, certain audit and appraisal costs and expenses, and certain fees in the event the initial term of the DIP Facility is renewed. Also, the Interim and the Final DIP Financing Orders will each contain a Carve-Out, Out, which will be equal to no more than $1,000,000 plus an estimate by Lender for amounts accrued and unpaid pursuant to 28 U.S.C. Section 1930(a)(6), for fees and expenses of Professional Persons in the Chapter 11 Cases, notes Mr. Durham. Pursuant to the Interim DIP Financing Order, the Debtors will stipulate that: (a) the Pre-Petition Loan Agreement and the Loan Documents constitute valid and binding agreements and obligations of Garlock and Garrison; (b) the Pre-Petition Liens granted by Garlock and Garrison (i) constitute valid, binding, enforceable and perfected security interests and liens, are not subject to avoidance or subordination, and are subject only to certain security interests and liens that are expressly permitted under the Pre-Petition Loan Agreement to have priority over the Pre- Petition Liens, but only to the extent the permitted liens are valid, enforceable, non-avoidable liens and security interests that are perfected prior to the Petition Date, not subject to avoidance, reduction, disallowance, impairment or subordination pursuant to the Bankruptcy Code or applicable non-bankruptcy law and senior in priority to the Pre-Petition Liens under applicable law after giving effect to any applicable subordination or intercreditor agreements, and (ii) are not subject to avoidance, impairment or subordination pursuant to the Bankruptcy Code or applicable non-bankruptcy law; (c) the Pre-Petition Debt constitutes legal, valid and binding obligations of Garlock, Garrison and the other Pre- Petition Affiliate Borrowers and is not subject to equitable subordination, offset, recoupment or recharacterization; (d) all amounts paid on or before the Petition Date by Garlock and Garrison to Pre-Petition Credit Parties are not subject to any objection, offset, defense or counterclaim of any kind or nature or reduction, disallowance, impairment, recharacterization or subordination pursuant to the Bankruptcy Code or applicable non-bankruptcy law; and (e) no claims in favor of any Debtor exist against any Pre- Petition Credit Parties under any contract or tort theories of recovery or pursuant to Section 105 or Chapter 5 of the Bankruptcy Code. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor listed $500,000,001 to $1,000,000,000 in assets and $100,000,001 to $500,000,000 in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARLOCK SEALING: Sec. 341 Meeting Continued to August 4 ------------------------------------------------------- Linda W. Simpson, U.S. Bankruptcy Administrator for the Western District of North Carolina, continued the meeting of the creditors of Garlock Sealing Technologies LLC and its debtor affiliates from July 14, 2010, to August 4, at 2:00 p.m., at her office located at 402 W. Trade St., Suite 205, in Charlotte, North Carolina. The meeting, as required under Section 341 of the Bankruptcy Code, offers the one opportunity for creditors to question a responsible office of the Debtors under oath about their financial affairs and operations that would be of interest to the general body of creditors. The Bankruptcy Administrator has sworn Don Pomeroy, vice president and chief financial officer of the Debtors, for the continued Section 341 meeting, according to a July 14, 2010 memo from the Bankruptcy Administrator. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor listed $500,000,001 to $1,000,000,000 in assets and $100,000,001 to $500,000,000 in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARLOCK SEALING: Proposes to Assume Daikin-America Contract ----------------------------------------------------------- Garlock Sealing Technologies, LLC, and Daikin-America, Inc., are parties to an executory contract for the consignment and purchase of resin materials used in Garlock's manufacturing operations. As of the Petition Date, Garlock owed Daikin-American $407,010 for its April and May, 2010 invoices. Garlock has also used $90,154 worth of Daikin-American materials, between the last invoice date and the Petition Date. By this motion, the Debtors seek the Court's permission to assume the Contract and pay $497,165 as cure amount under the Contract. Shelley K. Abel, Esq., at Rayburn Cooper & Durham, P.A., in Charlotte, North Carolina, relates that Daikin-American is an important vendor with whom the Debtors wish to continue their business relationship. The terms and conditions of the Contract are favorable to Garlock, she further notes. She also assures the Court that payment of the cure amount will cause no disruption to the Debtors' businesses because the Debtors have cash on hand exceeding the cure amount. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor listed $500,000,001 to $1,000,000,000 in assets and $100,000,001 to $500,000,000 in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARLOCK SEALING: Wins Final Nod to Use BoA Cash Collateral ---------------------------------------------------------- Judge George R. Hodges of the U.S. Bankruptcy Court for the Western District of Northern Carolina authorized, on a final basis, Garlock Sealing Technologies LLC and its units to use Bank of America N.A.'s cash collateral, and to provide adequate protection to BofA for the use of its cash collateral. Any and all objections to the Cash Collateral Motion, to the extent not withdrawn with prejudice, waived or resolved by consent at or before a June 30, 2010 final hearing, are overruled and denied, Judge Hodges averred. The Debtors will cause all proceeds of the Cash Collateral to be promptly deposited in one or more accounts designated by BofA as the DIP Lender, Judge Hodges ruled. Before the deposit of the Cash Collateral to a Dominion Account, the Debtors will be deemed to hold all those proceeds in trust for the benefit of the DIP Lender. Absent an Event of Default under the DIP Loan Agreement and that the Debtors' proposed use of Cash Collateral would not result in an Out-of-Formula Condition, the DIP Lender will allow the Debtors to have access to any Cash Collateral in the DIP Lender's possession that constitutes collected and available balances in any Dominion Account, subject to the DIP Lender's right to first to apply any of those balances to the payment of any of the obligations under the DIP Loan Agreement, Judge Hodges averred. Representatives of DIP Lender will be authorized to visit the business premises of the Debtors in accordance with the DIP Loan Agreement to (i) inspect any Collateral or other assets, (ii) inspect and make copies of any books and records of Debtors, and (iii) verify or to obtain supporting details concerning the financial information to be provided to the DIP Lender. The DIP Lender will also be authorized to retain attorneys, appraisers, consultants, auditors and financial advisors, at Debtors' expense, which professionals will be afforded reasonable access to the Collateral and Debtors' business premises to verify the Debtors' compliance with the DIP Loan Documents and the Final Cash Collateral Order, and appraise all or any part of the Collateral. A full-text copy of the Final Cash Collateral Order dated July 15, 2010, is available for free at: http://bankrupt.com/misc/Garlock_Jul15CashCollOrd.pdf * * * On behalf of the Debtors, Ashley K. Neal, Esq., at Rayburn in Charlotte, North Carolina, informed Judge Hodges that the Debtors, the Official Committee of Asbestos Personal Injury Claimants and Bank of America, N.A. have agreed on changes to the form of order with respect to the request for the continued use of Cash Collateral. Those changes are incorporated in the Final Cash Collateral order, she related. She added that no objections have been filed as of July 14, 2010. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor listed $500,000,001 to $1,000,000,000 in assets and $100,000,001 to $500,000,000 in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARNEAU INC: Enters Alternate Financing Arrangement --------------------------------------------------- Garneau Inc. had executed a term sheet with certain affiliates of a major shareholder pursuant to which the Company is to enter into an alternative form of financing, which would result in the payment in full of all outstanding amounts owing to the Corporation's senior secured lender under its credit facility. In connection with the new plan, the Lender has agreed to provide up to $3.6 million in new financing. The Term Sheet describes some of the basic terms of the New Facility, which will be subject to the terms contained in definitive loan documentation. Pursuant to the Term Sheet, the New Facility is to have a term of two (2) years, and interest accrued at a rate of (9%) percent (the "Base Rate") on all unpaid principal would be payable monthly. Beginning six (6) months following closing, principal repayment in the amount of $25,000 is to be paid in monthly installments. Garneau may, however, without notice, permanently prepay amounts outstanding under the New Facility in whole or in part at any time at its discretion, without penalty. The fees associated with the new facility are: (i) Loan Fee -- the Corporation is to pay a fee of 1% (100 basis points) of the principal amount of the New Facility at the time of closing; (ii) Annual Fee -- the Corporation is to pay an annual fee of 1% (100 basis points) of the principal amount outstanding as of each anniversary date would be payable commencing on the first anniversary date; and (iii) Initial Fee -- the Corporation paid a non-refundable $15,000 fee upon the execution of the Term Sheet by the Corporation; such amounts are to be used toward due diligence out-of- pocket expenses of the Lender and third-party costs. The New Facility is to be secured by way of a first mortgage on the real property of the Corporation. Pursuant to the Term Sheet, the proceeds of the New Facility are to be used by the Corporation are: (i) to satisfy all existing mortgage(s) and other liens over the real property of the Corporation; (ii) to pay all fees and expenses related to the New Facility; and (iii) for general operating purposes, to pay trade creditors and to pay employee severances, with the exception of Mr. Glen Garneau's owed severance which is to be paid after the New Facility is discharged. Entering into the New Facility resulted from the process undertaken by the board of directors of the Company in the Board's continuing efforts to preserve shareholder value. The Board will continue in its review of strategic alternatives for Garneau. Due to the Lender's interest in the New Facility, the entering into of the New Facility is a related party transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. The Company is relying on the financial hardship exemption from the valuation and minority approval requirements of MI 61-101. Specifically, pursuant to subsection 5.5(g) and 5.7(e) of MI 61-101, a formal valuation and minority approval are not required in the event of financial hardship in specified circumstances. The Company has satisfied the elements of this exemption on the basis that it is in serious financial difficulty, that the New Facility is designed to improve the financial position of the Company, the New Facility is not subject to court approval nor has it been ordered under bankruptcy or insolvency law and the Board, acting in good faith, and at least two-thirds of the Company's independent directors, acting in good faith, have determined the foregoing circumstances are applicable and the terms of the New Facility are reasonable in the circumstances of the Company. The Corporation has three independent directors who, acting in good faith, have determined that the above statements are correct and that the terms of the New Facility are reasonable in the circumstances of the Company. The closing of the New Facility is subject to certain conditions including consent of the Company's bankers. GENERAL MOTORS: New GM Seeks $5 Bil. Add'l Credit to Repay Debts ---------------------------------------------------------------- General Motors obtained approval from Bank of America, Citigroup, JPMorgan Chase and Morgan Stanley, that each will provide GM $500 million in credit as the automaker seeks about $5 billion from banks who are willing to help the automaker repay its debts, Financier Worldwide said on July 5. In April 2010, General Motors remitted to the U.S. government $5.8 billion to pay back part of its loan but the automaker still needs additional to provide itself with financial cushion in the event of a double-dip depression, the report said. On July 6, 2010, American Banking & Market News reported that the automaker will file its IPO in mid-August possibly with $3 billion of mandatory notes which are convertible into stock shares. The automobile giant aims to use the proceeds from the IPO to repay the federal government for its pension liabilities, American Banking said. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 207,000 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 the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada, and Italy. 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 March 31, 2010, GM had US$136.021 billion in total assets, total liabilities of US$105.970 billion and preferred stock of US$6.998 billion, and non-controlling interests of US$814 million, resulting in total equity of US$23.053 billion. 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: Nexteer Workers Return Wage Increase to Help Sale ----------------------------------------------------------------- In order to help General Motors find a buyer for its Nexteer steering plant in Saginaw, Michigan, employees of Nexteer Saginaw, with the representation of UAW, have agreed to give back their wage increases in exchange for cash, The Detroit Free Press reported. GM acquired the Saginaw plant from Delphi last year in its effort to help Delphi emerge from bankruptcy. Nexteer Saginaw employs more than 2,000 workers who are members of UAW. A contract that binds this agreement will be presented for ratification in the Saginaw plant. The contract includes a $5,000 payment to the employees as a compromise for rolling back the latest 3.7% increase to their employees' hourly rates, and payments ranging from $7,500 - $40,000 to be given to production workers who consent to have their wages slashed of between $12 and $14.50, depending on the job. Skilled workers are also offered $50,000 as payment for their agreement on an $8 reduction from their hourly wages. The contract, once ratified will facilitate the recall of about 50 workers who were laid-off, the opening of 50 more positions, and health coverage to families of new employees on permanent status, UAW President Troy Newberry told the Detroit Free Press. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 207,000 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 the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada, and Italy. 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 March 31, 2010, GM had US$136.021 billion in total assets, total liabilities of US$105.970 billion and preferred stock of US$6.998 billion, and non-controlling interests of US$814 million, resulting in total equity of US$23.053 billion. 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: Verdict on Dealers' Shutdown Appeal on July 23 -------------------------------------------------------------- General Motors and the group of dealers who protested the automaker's pronouncement to terminate their dealership contracts will soon learn whether their petition to remain in business have gained enough merits to prevent a shutdown, AOL's dailyfinance.com reported on July 14, 2010. By July 23, the dealers will know their fate, as this is date set by the arbitrators to release their final verdict regarding the dealers' plea to remain in business, Business Week said. According to Daily Finance, nearly 1,600 dealers who were lined up for closures appealed the automaker's decision, but a recent calculation by government appointed arbitrators has determined that only 35 cases remain in wait for a resolution. As earlier reported, GM has restored many dealerships to meet a rising demand for its vehicles as it emerged from bankruptcy, including 900 dealers who received a reprieve from imminent termination. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 207,000 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 the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada, and Italy. 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 March 31, 2010, GM had US$136.021 billion in total assets, total liabilities of US$105.970 billion and preferred stock of US$6.998 billion, and non-controlling interests of US$814 million, resulting in total equity of US$23.053 billion. 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 GROWTH: Hughes Heirs Call for Evidentiary Hearing Denied ---------------------------------------------------------------- Bankruptcy Law360 reports that heirs of late billionaire Howard Hughes have failed to convince a judge to hold an evidentiary hearing in their battle against General Growth Properties Inc. over the valuation of claims mainly stemming from the sale of the planned Nevada residential development Summerlin. 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) GLOBAL CROSSING: 12 Directors Acquire 7,229 Restricted Shares Each ------------------------------------------------------------------ Twelve directors of Global Crossing Ltd. disclosed acquiring 7,229 shares of common stock on July 8, 2010. The shares represent a grant of restricted stock units that vest on July 8, 2011, made as part of and pursuant to the Company's director compensation package. As a result of the acquisition: -- Lodewijk Christiaan Van Wachem, chairman of the board, raised his stake to 39,602; -- vice chairman Peter Seah Lim Huat raised his stake to 32,751; -- director E. C. Aldridge Jr. raised his stake to 32,502; -- director Archie Clemins raised his stake to 31,502; -- Executive Committee Member Steven T. Clontz raised his stake to 30,502; -- director Donald L. Cromer raised his stake to 30,502; -- director Richard R. Erkeneff raised his stake to 34,002; -- director Jeremiah D. Lambert raised his stake to 30,502; -- director Lee Theng Kiat raised his stake to 28,815; -- director Charles E. Macaluso raised his stake to 30,502; -- director Michael E. Rescoe raised his stake to 30,502; and -- director Robert J. Sachs raised his stake to 30,502 The number of RSUs granted is based on the average closing price of GX Common Stock on the NASDAQ Global Select Market for the 30 consecutive calendar days ending July 8, 2010. About Global Crossing Based in Hamilton, Bermuda, Global Crossing Limited (NASDAQ: GLBC) is a global IP and Ethernet solutions provider with the world's first integrated global IP-based network. The company offers a full range of data, voice and collaboration services with an industry leading customer experience and delivers service to approximately 40% of the Fortune 500, as well as to 700 carriers, mobile operators and ISPs. It delivers converged IP services to more than 700 cities in more than 70 countries around the world. The Company's balance sheet showed $2.3 billion in total assets and $2.7 million in total liabilities, for a $400 million stockholders' deficit as of March 31, 2010. At December 31, 2009, the Company had US$360 million in stockholders' deficit. * * * As reported by the Troubled Company Reporter on March 31, 2010, Standard & Poor's Ratings Services raised all its ratings on Global Crossing, including the corporate credit rating to 'B' from 'B-'. The outlook is stable. GREEN PLANET: Significant Operating Losses Cue Going Concern Doubt ------------------------------------------------------------------ Green Planet Group, Inc., filed on July 14, 2010, its annual report on Form 10-K for the fiscal year ended March 31, 2010. Semple, Marchal & Cooper, LLP, in Phoenix, Ariz., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has significant operating losses and negative working capital. The Company reported a net loss of $15.7 million on $57.4 million of revenue for fiscal 2010, compared with a net loss of $2.7 million on $9.2 million of revenue for fiscal 2009. The Company's balance sheet at March 31, 2010, showed $15.1 million in assets and $35.1 million of liabilities, for a stockholders' deficit of $19.9 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66a6 Scottsdale, Ariz.-based Green Planet Group, Inc. (OTC BB: GNPG) -- http://www.greenplanetgroup.com/-- is engaged in the research, development, manufacturing and distribution of a variety of products that improve overall energy efficiency with a specific concentration on petroleum based energy sources. The Company currently has four wholly owned operating subsidiaries, EMTA Corp, XenTx Lubricants, Inc., White Sands, L.L.C., and Lumea, Inc. HAYES LEMMERZ: Plan of Reorganization Wins Court Approval --------------------------------------------------------- The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware confirmed Hayes Lemmerz International, Inc., et al.'s Plan of Reorganization, as adjusted, with respect To Hayes Lemmerz International - Howell, Inc. The Debtors related that they adjusted the Plan, which was confirmed on November 3, 2009, because certain terms of the Plan does not apply to the HLI - Howell, Hayes Lemmerz International - Laredo, Inc., and HLI Realty, Inc. The Court said that the adjusted Plan satisfied all of the requirements of the Chapter 11 Bankruptcy Code. About Hayes Lemmerz International, Inc. Originally founded in 1908, Hayes Lemmerz International, Inc. (NasdaqGM: HAYZ) is a worldwide producer of aluminum and steel wheels for passenger cars and light trucks and of steel wheels for commercial trucks and trailers. The Company is also a supplier of automotive powertrain components. The Company has global operations with 23 facilities, including business, sales offices and manufacturing facilities, located in 12 countries around the world. The Company sells products to every major North American, Asian and European manufacturer of passenger cars and light trucks and to commercial highway vehicle customers throughout the world. The Company and certain affiliates filed for bankruptcy on May 11, 2009 (Bankr. D. Del. Case No. 09-11655) after reaching agreements with lenders holding a majority of the Company's secured debt. The Company's principal bankruptcy attorneys are Skadden, Arps, Slate, Meagher & Flom, LLP. Lazard Freres & Co., LLC, serves as the Company's financial advisors. AlixPartners, LLP, serves as the Company's restructuring advisors. The Garden City Group, Inc., serves as the Debtors' claims and notice agent. As of January 31, 2009, the Debtors had total assets of $1,336,600,000 and total debts of $1,405,200,000. This is the Company's second trip to the bankruptcy court, dubbed a Chapter 22, which was precipitated by an unprecedented slowdown in industry demand and a tightening of credit markets. HOTELS UNION SQUARE: W Hotel to Be Sold Under Chapter 11 Plan ------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that the Chapter 11 plan filed on July 14 by W New York Union Square hotel's indirect owners -- Hotels Union Square Mezz 1 LLC and Hotels Union Square Mezz 2 LLC -- calls for the sale of the ownership interest in the hotel to a partnership led by Host Hotels & Resorts Inc. Many of the details regarding the sale and the underlying settlement are being kept secret. Because all affected creditors are parties to the settlement, the plan calls for creditors to vote even before approval of the disclosure statement. The proposed schedule calls for holding one hearing in late August both to approve the disclosure statement and to approve the plan with a confirmation order. About Hotels Union Philadelphia, Pennsylvania-based Hotels Union owns the W New York Union Square hotel, located on Park Avenue South. Hotels Union is controlled by an affiliate of Lubert-Adler Real Estate Funds known as LEM. Hotels Union Square Mezz 1 LLC, dba Istithmar Hotels Union Square Mezz 1 LLC, filed for Chapter 11 bankruptcy protection on March 23, 2010 (Bankr. D. Del. Case No. 10-10971). The company estimated its assets and debts at $50,000,001 to $100,000,000. Hotels Union Square Mezz 2 LLC, dba Istithmar Hotels Union Square Mezz 2 LLC, filed for Chapter 11 bankruptcy protection on March 25, 2010 (Bankr. D. Del. Case No. 10-11001). The company estimated its assets and debts at $10,000,001 to $50,000,000. Steven M. Yoder, Esq., at Potter Anderson & Corroon LLP, assists the Debtors in their restructuring effort. HMSC CORPORATION: Moody's Affirms 'Ba3' Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service has affirmed the ratings of HMSC Corporation (corporate family rating of B3), the holding company for the Swett & Crawford Group, in light of the company's combination with UK-based Cooper Gay to form one of the world's largest wholesale and reinsurance brokers. The combined group places approximately $3.5 billion of premiums annually in the US, London and international insurance markets. The business combination does not change HMSC's debt structure, although it benefits creditors by offering more attractive scenarios for repaying or refinancing the debt, which matures in 2014. In the near term, however, HMSC faces a weak US economy and a soft market for commercial property & casualty insurance -- factors that have caused its revenues and EBITDA to decline over the past couple of years. Moody's therefore maintains a negative rating outlook on the name. "The combination with Cooper Gay makes strategic sense," said Bruce Ballentine, Moody's lead analyst for HMSC, "helping to offset pressures in the US wholesale brokerage market." The combination makes HMSC part of a larger, more diversified group with lower financial leverage on a group basis. The combined group makes an attractive platform for an initial public stock offering or other refinancing over the next couple of years. On a stand-alone basis, however, HMSC's declining EBITDA and limited debt amortization have led to a significant increase in its debt-to-EBITDA ratio. Based on Moody's calculations (which often differ from company or covenant calculations), HMSC's adjusted debt-to-EBITDA ratio grew from about 9x at year-end 2008 to about 13x for the trailing 12 months through March 2010, well above the normal range for similarly rated peers. As part of the Cooper Gay transaction, HMSC has absorbed Cooper Gay's North American operations, moderately improving HMSC's revenues, EBITDA and financial leverage, albeit the leverage remains high for the rating category. HMSC's borrowings as of March 31, 2010, included a $274 million first-lien term loan due in April 2014 (rated B3) and a $110 million second-lien term loan due in October 2014 (rated Caa1). The company also has an undrawn $20 million first-lien revolving credit facility expiring in April 2012 (rated B3), although this facility contains a financial leverage covenant that would preclude borrowings by HMSC at its current leverage ratio. The term loan facilities contain no such covenant. Throughout the economic slowdown, HMSC has maintained adequate interest coverage and free cash flow, helped in part by low market interest rates. "We expect the company to continue generating positive free cash flow and to maintain significant cash and equivalent balances in lieu of having access to the revolving credit facility," said Mr. Ballentine. Moody's cited these factors that could lead to a stable rating outlook for HMSC: (i) adjusted (EBITDA -- capex) coverage of interest exceeding 1.8x, (ii) adjusted free-cash-flow-to-debt ratio exceeding 4%, and (iii) adjusted debt-to-EBITDA ratio below 8x. Moody's cited these factors that could lead to a downgrade of HMSC's ratings: (i) adjusted (EBITDA -- capex) coverage of interest below 1.2x, (ii) adjusted free-cash-flow-to-debt ratio below 2%, (iii) cash and equivalents balance amounting to less than one year's interest expense, or (iv) a separation from Cooper Gay. Moody's last rating action on HMSC occurred on December 22, 2009, when the outlook was changed to negative from stable. HMSC, based in Atlanta, Georgia, ranks among the largest US wholesale insurance brokers. Wholesale brokers act as intermediaries between retail brokers and insurance carriers on unusual risks. The wholesalers place most such risks with excess & surplus carriers or other specialty carriers. HMSC generates business through more than 30 branch offices across the US. For the trailing 12 months through March 2010, the company generated revenues of $172 million. Adjusted EBITDA for bank covenant purposes was approximately $33 million. IA GLOBAL: Significant Operating Losses Cue Going Concern Doubt --------------------------------------------------------------- IA Global, Inc., filed on July 14, 2010, its annual report on Form 10-K for the fiscal year ended March 31, 2010. Sherb & Co., LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses, and has a working capital deficit as of March 31, 2010. The Company reported a net loss of $256,923 for fiscal 2010, compared with a net loss of $20,241,930 for fiscal 2009. During the year ended March 31, 2010 and 2009, the Company had no revenues from continuing operations. The Company's balance sheet at March 31, 2010, showed $2,548,404 in assets and $3,082,158, for a stockholders' deficit of $533,754. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66a1 San Francisco, Calif.-based IA Global, Inc. (OTCQB: IAGI.OB) -- http://www.iaglobalinc.com/-- is a global services and outsourcing company focused on growing existing businesses and expansion through global mergers and acquisitions. The Company utilizes its current partnerships to acquire growth businesses in its target sectors and markets at discounted prices. The Company is also actively engaging businesses that would benefit from its business and marketing expertise, knowledge of Asian Markets, and technology infrastructure. IMAGEWARE SYSTEMS: Inks Two-Year Agreement with IBM Canada ---------------------------------------------------------- ImageWare Systems Inc. entered into an agreement with IBM Canada to provide product, services and support under a two year contract for the second phase of a biometrically enabled Restricted Access Identity Card program for the Canadian Air Transportation Safety Administration. In the first phase of the RAIC program, ImageWare was a subcontractor to Unisys Canada, whereby the Company provided software development services under a $2.1 million agreement announced in March, 2008 and completed in March, 2010. In this second phase of the RAIC program, ImageWare is a subcontractor to IBM Canada who was selected by the Canadian government to be the prime contractor on the project. About ImageWare Systems Headquartered in San Diego, California, ImageWare Systems, Inc. is a leader in the emerging market for software-based identity management solutions, providing biometric, secure credential, law enforcement and enterprise authorization. Its ?flagship? product is the IWS Biometric Engine. Scalable for small city business or worldwide deployment, the Company's biometric engine is a multi- biometric platform that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. The Company's identification products are used to manage and issue secure credentials, including national IDs, passports, driver licenses, smart cards and access control credentials. Its law enforcement products provide law enforcement with integrated mug shot, fingerprint LiveScan and investigative capabilities. The Company also provides comprehensive authentication security software. * * * At June 30, 2009, the Company had total assets of $5,400,000 against total liabilities of $8,149,000, resulting in shareholders' deficit of $2,749,000. IMPLANT SCIENCES: Director Converts Promissory Note to Equity ------------------------------------------------------------- Implant Sciences Corporation director Michael Turmelle disclosed acquiring 1,250,000 company shares on July 15, 2010, in connection with the conversion of a $100,000 Convertible Promissory Note previously issued by the Company to Mr. Turmelle. About Implant Sciences Implant Sciences Corporation (OBB: IMSC.OB) -- http://www.implantsciences.com/-- develops, manufactures and sells sensors and systems for the security, safety and defense (SS&D) industries. The Company's balance sheet at March 31, 2010, showed $6.22 million in total assets and $15.34 million in total liabilities and $5 million in series E convertible preferred stock, for a stockholder's deficit of $14.12 million. As reported by the Troubled Company Reporter on January 15, 2010, Implant Sciences renegotiated its credit agreements with its senior secured investor, DMRJ Group LLC. DMRJ increased Implant Sciences' line of credit from $3,000,000 to $5,000,000; extended the maturity of all of Implant Sciences' indebtedness from December 10, 2009, to June 10, 2010; waived all existing defaults through the new maturity date; reduced the interest rate payable on Implant Sciences' obligations to 15% per annum; and removed all profit sharing arrangements from the agreements. Implant Sciences' total indebtedness to DMRJ, including all principal and accrued interest, now stands at $7,570,000. IMPLANT SCIENCES: New CFO Deschenes Discloses Stock Options ----------------------------------------------------------- Roger P. Deschenes, Implant Sciences Corp.'s Chief Financial Officer, disclosed that has options to buy: -- 25,000 company shares, which options he may exercise until December 30, 2013; -- 75,000 company shares, which options he may exercise until February 5, 2019; and -- 100,000 company shares, which options he may exercise until June 30, 2019. As reported by the Troubled Company Reporter, the Board of Directors of Implant Sciences on June 30, 2010, named Mr. Deschenes as the Company's Chief Financial Officer, effective as of July 5. About Implant Sciences Implant Sciences Corporation (OBB: IMSC.OB) -- http://www.implantsciences.com/-- develops, manufactures and sells sensors and systems for the security, safety and defense (SS&D) industries. The Company's balance sheet at March 31, 2010, showed $6.22 million in total assets and $15.34 million in total liabilities and $5 million in series E convertible preferred stock, for a stockholder's deficit of $14.12 million. As reported by the Troubled Company Reporter on January 15, 2010, Implant Sciences renegotiated its credit agreements with its senior secured investor, DMRJ Group LLC. DMRJ increased Implant Sciences' line of credit from $3,000,000 to $5,000,000; extended the maturity of all of Implant Sciences' indebtedness from December 10, 2009, to June 10, 2010; waived all existing defaults through the new maturity date; reduced the interest rate payable on Implant Sciences' obligations to 15% per annum; and removed all profit sharing arrangements from the agreements. Implant Sciences' total indebtedness to DMRJ, including all principal and accrued interest, now stands at $7,570,000. INNKEEPERS USA: Files Prepack Chapter 11; Gives Equity to Lehman ---------------------------------------------------------------- Innkeepers USA Trust has reached various agreements with certain of its key constituents regarding a comprehensive financial restructuring to be effectuated through a pre-arranged plan of reorganization under chapter 11 of the United States Bankruptcy Code. Collectively, the agreements provide for a significant deleveraging of Innkeepers' balance sheet, and allow Innkeepers to maintain its valuable portfolio of hotel properties. Among other things, these agreements contemplate Lehman ALI Inc., one of Innkeepers' largest prepetition secured lenders, converting its secured claims to substantially all of the equity in the reorganized company. In addition, Marriott International, Inc., one of Innkeepers' significant franchisors, has agreed on the treatment of its franchise agreements, subject to Innkeepers' ability to perform enhancement projects on certain of its hotels. Innkeepers has secured commitments for two debtor-in-possession (DIP) credit facilities totaling approximately $67 million, which Innkeepers will invest in the improvement of its hotel portfolio. "Our company is entering into this last phase of its ongoing restructuring process in order to return to a position of financial and operational strength," said Marc Beilinson, the Company's Chief Restructuring Officer. "We are generating positive operational cash flows and, along with our two DIP financing agreements, we have the resources to meet our ongoing financial needs. We and our third party managers will continue to operate our hotels and serve our guests in the ordinary course," said Beilinson. Innkeepers has sought court relief designed to ensure a seamless transition into chapter 11 that will allow it to continue to manage its business and its commercial relationships in the ordinary course. As a result of these arrangements, Innkeepers expects to emerge from its court-supervised restructuring in short order. The Company is encouraged by its lenders' participation in the process; this will create an opportunity to work with all of its constituents to address its debt issues and internally reorganize its business on an expedited timeframe. Bryan Marsal, CEO of Lehman Brothers Holdings Inc. and co-founder of global professional services and restructuring firm Alvarez & Marsal stated, "We are delighted to have reached an agreement that balances the needs of all parties. We look forward to actively working with Innkeepers to help it complete a successful restructuring and emerge from Chapter 11." "A sustainable, long-term capital structure and improved hotel properties will pave the way to success in the upscale extended- stay hotel market and in the other segments of the hotel business in which its properties compete," said Mr. Beilinson. "We are confident we will emerge from this process as a stronger, more competitive business with a rationalized financial structure and clearly enhanced fundamentals." The Chapter 11 cases are pending in the United States Bankruptcy Court for the Southern District of New York. For access to court documents and other general information about the Chapter 11 cases, please visit http://www.omnimgt.com/innkeepers $1.42 Billion in Debt The Wall Street Journal's Mike Spector reports that Innkeepers is laboring under $1.42 billion in debt. According to the Journal, Innkeepers took on hundreds of millions of dollars in debt in a $1.5 billion buyout by Apollo Investment Corp. Apollo Investment, which receives advisory services from an affiliate of private- equity firm Apollo Global Management, purchased the hotel company around the top of the market in 2007. Apollo declined to comment. Pre-bankruptcy, Innkeepers worked with law firm Kirkland & Ellis and investment bank Moelis & Co. to restructure its balance sheet. As of July 19, the company remained in default on all 11 of its loan agreements, according to court records. On June 21, Innkeepers suspended payment of its 2010 second quarter dividend on its 8% Series C Cumulative Redeemable Preferred Shares. Innkeepers' board of trustees said it would continue to review future quarterly dividends on the 8% Series C Cumulative Redeemable Preferred Shares based on financial and economic conditions and other appropriate factors. The Journal notes Innkeepers tapped $825 million in securitized mortgages in 2007 from a business called Lehman ALI Inc. on 45 hotels. The loans were then carved up and sold to investors as collateralized mortgage-backed securities. Those obligations were recently transferred to a special servicer, which deals with distressed real-estate loans. Bryan Marsal, Lehman's current chief executive and co-founder of turnaround firm Alvarez & Marsal, said in a statement that Lehman's bankruptcy estate would work with Innkeepers on its restructuring and feels the current deal "balances the needs of all parties." The Journal also reports Innkeepers had run afoul of Marriott International Inc., which provides its brand names to many of the company's hotels. Marriott had threatened to pull its name from hotels amid Innkeepers' alleged failures to maintain the properties to Marriott's standards. The Journal relates that, according to court documents, Marriott agreed on June 25 to avoid removing its brand name from the hotels in exchange for a pledge from Innkeepers to complete improvement work on 23 Marriott-branded hotels. The Journal says about $68 million in new financing from creditors will help Innkeepers make those improvements. In turn, Lehman backed Innkeepers' restructuring plan on condition that Marriott stand down. About Innkeepers USA Trust Innkeepers USA Trust is a real estate investment trust and a leading owner of upscale and extended-stay hotel properties throughout the United States. The company currently owns interests in 72 hotels with approximately 10,000 rooms in 19 states and the District of Columbia. INVISTA BV: S&P Raises Corporate Credit Rating to 'BB-' ------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its corporate credit rating on INVISTA B.V. to 'BB-' from 'B+'. At the same time, S&P raised the senior unsecured debt rating on the $325 million remaining balance of notes due 2012 to 'BB-' (the same as the corporate credit rating) with a recovery rating of '4' from 'B' with a recovery rating of '5'. These ratings indicate S&P's expectation of average (30%-50%) recovery for the holders of these notes in the event of a payment default. In addition, S&P removed the ratings from CreditWatch where they had been placed with positive implications on May 28, 2010. The outlook is stable. "The ratings on INVISTA reflect its weak business risk profile and significant financial risk profile," said Standard & Poor's credit analyst Cynthia Werneth. Nevertheless, since early 2009, financial performance has strengthened significantly as a consequence of demand improvement, steps INVISTA took to substantially reduce capacity across most of its businesses, and the benefits of more than $2.4 billion that its owners invested since the third quarter of 2008. S&P expects that better economic conditions in 2010 versus 2009, and restructuring benefits, should lead to further gradual strengthening of the credit profile. "However, the company faces meaningful challenges in many of its businesses that could exert a downward pull on earnings and cash flow," Ms. Werneth said. The outlook is stable. There is some flexibility at the ratings to weather a slowing global economy, difficult conditions in some key end markets such as housing and commercial construction, or other modest adverse developments. ITAL STONE: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Ital Stone, Inc. 3750 W. Quail Avenue Las Vegas, NV 89118 Bankruptcy Case No.: 10-23098 Chapter 11 Petition Date: July 14, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: Ambrish S. Sidhu, Esq. Sidhu Law Firm 810 S. Casino Center Blvd., Suite 104 Las Vegas, NV 89101 Tel: (702) 384-4436 Fax: (702) 384-4437 E-mail: asidhu@sidhulawfirm.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 filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-23098.pdf The petition was signed by Diana Demaria-Ventre, CFO. JACKSON HEWITT: Deloitte & Touche Raises Going Concern Doubt ------------------------------------------------------------ Jackson Hewitt Tax Service Inc. filed on July 14, 2010, its annual report on Form 10-K for the fiscal year ended April 30, 2010. Deloitte & Touche LLP, in Parsippany, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that there is uncertainty regarding the Company's ability to have sufficient funding to meet its obligations. The Company reported a net loss $272.3 million on $213.8 million of revenue for fiscal 2010, compared with net income of $19.5 million on $248.3 million of revenue for fiscal 2009. Jackson Hewitt's 2010 fiscal year reported results reflect the impact of a non-cash goodwill impairment charge of $274.1 million, and a non-cash tax valuation charge of $11.5 million. "The 2010 tax season was a challenging one for Jackson Hewitt, as the loss of 50% of our refund anticipation loan ("RAL") product created an impediment that we could not fully overcome," said Harry W. Buckley, Jackson Hewitt's president and chief executive officer. "Despite the solid efforts of our dedicated employees and franchisees and cost control measures implemented during the year, the RAL issue, coupled with a soft economy, high unemployment and increased competition, resulted in a year of declining tax returns prepared, revenues and earnings." "The 2010 fiscal year is behind us and we are squarely focused on the future," continued Mr. Buckley. "We have already completed a new Strategic Plan aimed at improving our operating and financial performance beginning in 2011. Over the past couple of months, representatives from our franchise community, along with Jackson Hewitt corporate staff and field operations personnel, have worked diligently and collaboratively to develop our plan. The plan spells out several critical must have actions for the 2011 tax season, including reduced costs, resolution of our RAL product issue and the completion of a new franchise agreement renewal program, as well as several foundational and growth initiatives that can drive enhanced operational and financial performance in this upcoming tax season. Consistent with our plan, we began the 2011 fiscal year in May by announcing an organizational restructuring, which will incrementally reduce our 2011 fiscal year pre-tax expenses by approximately $5 million, while increasing our overall efficiency and accountability." The 13.9% revenue decline resulted from a lower number of tax returns prepared and reduced financial product fees in connection with the limited RAL program, offset in part by slightly higher average revenue per return. Total debt outstanding at year-end was $274 million. Under Jackson Hewitt's Amended and Restated Credit Facility, debt now consists of a $200 million term loan, a $70 million non-revolving credit commitment and a $105 million revolving credit facility, which had $4 million drawn down at April 30, 2010. 2010 Fourth Quarter Consolidated Results For the 2010 fourth quarter, total revenues were $125.6 million, versus $141.2 million in the 2009 fourth quarter, reflecting a decline of 11.0% due primarily to the loss of 50% of the RAL program and its resulting reduction in the number of tax returns prepared versus last year's fourth quarter, offset in part by increased revenues per tax return. The 2010 fourth quarter reported net income was $48.1 million, versus reported net income of $41.3 million in the 2009 fourth quarter. Balance Sheet The Company's balance sheet at April 30, 2010, showed $346.4 million in assets and $371.5 million of liabilities, for a stockholders' deficit of $25.1 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66a3 A full-text copy of the press release announcing the Company's fiscal 2010 annual results is available for free at: http://researcharchives.com/t/s?66a4 Jackson Hewitt Tax Service Inc. (NYSE: JTX) -- http://www.jacksonhewitt.com/-- provides computerized preparation of federal, state and local individual income tax returns in the United States through a nationwide network of franchised and company-owned offices operating under the brand name Jackson Hewitt Tax Service(R). The Company is based in Parsippany, New Jersey. In connection with their tax return preparation experience, the Company's customers may select various financial products to suit their needs, including refund anticipation loans ("RALs") in the offices where such financial products are available. A RAL is a loan made by a third party financial institution to a customer and secured by a customer's anticipated federal tax refund. The loan amount, less applicable fees and charges, including tax return preparation fees, is generally disbursed to the customer within approximately one day from the time the tax return is electronically filed with the IRS. JDG INVESTMENTS: Section 341(a) Meeting Scheduled for Aug. 13 ------------------------------------------------------------- The U.S. Trustee for the Eastern District of North Carolina will convene a meeting of JDG Investments, Inc.'s creditors on August 13, 2010, at 10:00 a.m. The meeting will be held at USBA Creditors Meeting Room, Two Hannover Square, Room 610, 434 Fayetteville Street Mall, Raleigh, NC 27601. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Selma, North Carolina-based JDG Investments, Inc., filed for Chapter 11 bankruptcy protection on July 8, 2010 (Bankr. E.D.N.C. Case No. 10-05450). Jason L. Hendren, Esq., at Hendren & Malone, PLLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. JENNIFER CONVERTIBLES: Files Voluntary Petition for Chapter 11 -------------------------------------------------------------- Jennifer Convertibles, Inc., disclosed that the company and its subsidiaries have filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10- 13779). The Company has reached an agreement with its largest creditor and key foreign supplier Haining Mengnu Co. Ltd. Group, under which Mengnu will continue to supply goods to the Company and will convert a large portion of its pre-petition debt into common equity of the Company. The agreement is in the form of a Plan Support Agreement which will be incorporated into a Plan of Reorganization and thereafter subject to approval of the bankruptcy court and any other regulatory approval. The decision to file for Chapter 11 protection was based primarily on lack of liquidity which resulted from the substantial losses the Company has incurred in recent periods. The Company was unsuccessful in its efforts to obtain alternative financing that would allow it to continue operating outside of bankruptcy, so the Board of Directors determined that a Chapter 11 reorganization was in the best interests of the Company, its customers, creditors, employees, and other interested parties. The Company intends to continue its business operations throughout the administration of the bankruptcy case and emerge as a going concern post-petition. The Chapter 11 filing is not expected to negatively impact the fulfillment of existing or future customer orders. Subject to any required approvals, the Company will use the proposed financing plan from its supplier, along with cash generated from continuing operations, to meet its working capital needs during the reorganization process. Harley Greenfield, CEO and Chairman of the Board, stated, "Despite all of the issues we have faced over the past several years, we continue to provide some of the industry's best home furnishings values. We have negotiated several key agreements with our suppliers and, in order to achieve profitability, are exiting markets in which we previously operated in order to properly realign our business during the reorganization. Due to the quality of our products and our people, I am confident that we will emerge as a stronger organization that will better satisfy our customers, suppliers and employees. By agreeing with Mengnu in advance of the filing, we will be in a great position to proceed with an expeditious restructuring through bankruptcy which will provide us with a viable capital structure as well as additional financing. This agreement also assures that our obligations to our customers will continue to be met both now and in the future." The Company has filed or will be filing a series of first-day motions in the bankruptcy court in the Southern District of New York, seeking to ensure that there will be limited disruption of its operations during the reorganization process. Although Chapter 11 law prohibits payments for any invoices that were outstanding at the time of the filing without prior court approval, it does provide greater protection to those suppliers who prospectively agree to continue working with the Company. Approval of the bankruptcy reorganization, and all principal steps related thereto, will be subject to numerous conditions, including, but not limited to, a definitive written plan of reorganization approved by the federal bankruptcy court located in New York City. The expected plan of reorganization does not contemplate that there will be any continuing value for the present stockholders of the Company. About Jennifer Convertibles Jennifer Convertibles is the owner and licensor of the largest with 144 Jennifer Convertibles(R) stores and is the largest specialty retailer of leather furniture with 13 Jennifer Leather stores. Following a transaction with the former affiliated private company, as of February 25, 2010, the Company owns 157 stores and operates five licensed Ashley Furniture HomeStores. The petition listed assets and liabilities of $10,000,000 to $50,000,000. KAREN THOMAS: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Karen Thomas 2091 S. Zuni Pahrump, NV 89048 Bankruptcy Case No.: 10-23180 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Richard E. Hawkins, Esq. 4680 Polaris Sst., Suite 250 Las Vegas, NV 89103 Tel: (702) 508-8462 E-mail: HawkinsLawFirm@gmail.com Scheduled Assets: $602,850 Scheduled Debts: $5,013,430 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Ms. Thomas. KB HOME: S&P Downgrades Corporate Credit Rating to 'B+' ------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Los Angeles-based KB Home to 'B+' from 'BB-' in anticipation of weak profitability. At the same time, S&P lowered its rating on nearly $1.7 billion of senior unsecured notes to 'B+' from 'BB-'. S&P's '4' recovery rating on the notes is unchanged and continues to reflect S&P's expectation for an average (30%-50%) recovery in the event of default. S&P revised its outlook on the company to stable from negative. "S&P's rating on KB Home reflects its expectation that this Los Angeles-based homebuilder's bottom line will remain under pressure through 2011, given the unsteady overall housing market recovery, KB Home's weaker new orders, and the company's substantial overhead costs," said Standard & Poor's credit analyst James Fielding. "S&P's ratings also continue to reflect risks associated with the company's highly leveraged financial profile. However, S&P acknowledge that operating losses have narrowed significantly due to lower impairment charges." S&P's stable outlook reflects its view that KB Home has adequate liquidity to invest in new land opportunities that could position the company for more robust top-line growth when the housing market recovery eventually takes firmer hold. S&P would raise its ratings if the company returns to profitability more quickly than S&P now expects as a consequence of the addition of new communities, continued solid gross margins, and lower SG&A costs. Conversely, S&P would lower its ratings if the housing market weakens further and the company draws down its cash balances significantly (below $500 million), perhaps to settle its off- balance-sheet obligations. KINGDOM DONUTS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Kingdom Donuts, LLC 9183A Central Avenue Capital Heights, MD 20743 Bankruptcy Case No.: 10-75454 Chapter 11 Petition Date: July 14, 2010 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Dorothy Eisenberg Debtor's Counsel: Michael S. Amato, Esq. Ruskin Moscou Faltisckek PC 1425 RXR Plaza East Tower, 15th Floor Uniondale, NY 11556-1425 Tel: (516) 663-6517 Fax: (516) 663-6717 E-mail: mamato@rmfpc.com Estimated Assets: $500,001 to $1,000,000 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 Allen Pj Paik, member. Debtor-affiliates that filed separate Chapter 11 petitions on July 14, 2010: Debtor Case No. ------ -------- 1333 Donuts, LLC 10-_____ Benfield Road Donuts, LLC Blue Point Ventures, LLC CDDC Holding Company, LLC CDDC Acquisition Company, LLC Commack Road donuts, LLC D3C, LLC Five Points Development Partners, LLC FPSDA I, LLC FPSDA II, LLC Highbridge Donuts, LLC Kingdom Donuts, LLC Metro Shops Donuts, LLC Middle Country Road Donuts, LLC Miller Place Donuts, LLC Mountain Road Donuts, LLC Upper Marlboro, LLC L.A. & G. LAREDO: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: L.A. & G. Laredo Investment Co., LLC 3101 West Military Highway McAllen, TX 78503 Bankruptcy Case No.: 10-20572 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court Southern District of Texas (Corpus Christi) Judge: Richard S. Schmidt Debtor's Counsel: David S. Gragg, Esq. Langley & Banack Inc 745 Mulberry, Suite 900 San Antonio, TX 78212 Tel: (210) 736-6600 Fax: (210) 735-6889 E-mail: dgragg@langleybanack.com Scheduled Assets: $637,051 Scheduled Debts: $3,114,492 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Aurelio Aleman, president. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- USA Dry Van Logistics, LLC et al. 10-20102 02/02/10 LA VISTA: Files for Bankruptcy to Sell Off Assets ------------------------------------------------- Jacob Dirr at Business Journal at Austin reports that La Vista Partners LP filed for bankruptcy, seeking to sell a project as it attempts to reorganize its debt. The Company said it has been trying to sell the project for $10.3 million since May. Mr. Dirr, citing papers filed with the court, says the Company listed assets of less than $10 million and debts of more than $10 million. The Company owes $3.7 million to Precept Buildings and more than a disputed $4.1 million claim to five creditors. La Vista, aka The Fondren Building, operates a property development company. LEHMAN BROTHERS: Bank of New York Fights with Creditors over Plan ----------------------------------------------------------------- Bankruptcy Law360 reports that Bank of New York Mellon Trust Co. is fighting creditors of Lehman Brothers Holdings Inc. over their objection to the debtors' blueprint for reorganization, saying their challenge appears to have been made on behalf of a few individual bondholders who are merely grabbing for a higher recovery at the expense of subsidiary creditors. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEXINGTON PRECISION: Rubber Group Unsecureds Vote 'No' on Plan -------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Lexington Precision Corp. will be facing opposition at the July 21 confirmation hearing for its Chapter 11 plan. Unsecured creditors of the operating company Lexington Rubber Group voted "no" for the Plan. As a result, the Plan will require using the cramdown procedure in order to be confirmed. The Plan calls for the class to be paid in full over ten quarterly installments. According to the report, the unsecured creditors' committee is contending the proposed interest rate, 6.02%, is too low. The Committee is urging the judge to impose a 15.5% rate post bankruptcy, the same rate to be given one of the secured term loans under the plan. The Plan provides that the judge will determine the proper interest rate if cramdown is necessary. Mr. Rochelle notes that in a cramdown, unsecured creditors must be paid in full, with interest, else lower classes of debt and equity can receive nothing. All other creditor classes voted for the plan, including unsecured and subordinated note creditors of the parent Lexington Precision. The Plan, the report relates, will be funded in part by the sale of $22 million in stock, at $10 a share, to Commercial Finance Services 407 LLC. Subordinated noteholders are being given the chance to change their votes to "no" because they were only told this week that their stock recovery would be diluted by 5.4% on account of equity given to the so-called plan investors. The plan reduces debt by more than $50 million while giving holders of senior subordinated notes an estimated 51% recovery. Subordinated noteholders, owed $34.18 million in principal, may elect between taking 51% in cash or swap for stock at roughly $20 of debt for each new share. Bloomberg continues that general unsecured creditors of Lexington Precision are estimated to have an 85.4% recovery, according to the disclosure statement. They are to have 8% in cash on implementation of the plan, with the remainder paid 8.6% in cash at each of the ensuing nine quarters. The disclosure statement says that the present value of the payments is 80%. Alternatively, unsecured creditors can elect to receive 51% paid in cash. Asbestos claims are to be paid in full with insurance proceeds. If insurance is insufficient, the remainder will be paid over time like general unsecured creditors. Secured debt under the Company's plan is to be paid in full through revised credit agreements. About Lexington Precision Headquartered in New York, Lexington Precision Corp. -- http://www.lexingtonprecision.com/-- manufactures tight-tolerance rubber and metal components for use in medical, automotive, and industrial applications. As of February 29, 2008, the Company employed about 651 regular and 22 temporary personnel. The Company and its affiliate, Lexington Rubber Group Inc., filed for Chapter 11 protection on April 1, 2008 (Bankr. S.D.N.Y. Lead Case No.08-11153). Christopher J. Marcus, Esq., and Victoria Vron, Esq., at Weil, Gotshal & Manges, represent the Debtors in their restructuring efforts. The Debtors selected Epiq Systems - Bankruptcy Solutions LLC as claims agent. The U.S. Trustee for Region 2 appointed six creditors to serve on an official committee of unsecured creditors. Paul N. Silverstein, Esq., and Jonathan Levine, Esq., at Andrews Kurth LLP, represent the Committee as counsel. On June 30, 2008, the Debtors filed with the Bankruptcy Court a plan of reorganization. It was amended twice, the latest amendment dated December 8, 2008. The Debtors currently plan to complete the liquidation of their connector-seal business before seeking approval of the Amended Plan. LITTLE TOKYO: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Little Tokyo Partners, L.P. fka New Otani Hotel aka Kyoto Grand Hotel & Gardens aka Little Tokyo Partners - Weller Court aka Weller Court aka Littlte Tokyo Partners - Kyoto Grand Hotel & Gardens c/o 3D Investments, LLC 1880 Century Park East, Suite 810 Los Angeles, CA 90067 Bankruptcy Case No.: 10-39113 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Richard M. Neiter Debtor's Counsel: Neeta Menon, Esq. 1901 Ave of the Stars 12th Floor Los Angeles, CA 90067 Tel: (310) 228-5645 Fax: (310) 228-5788 E-mail: nmenon@stutman.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by David Goddard, chief financial officer. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Able Engineering Services $76,901 Services 868 Folsom Street San Francisco, CA 94107 LA DWP Utility Services $71,128 P.O. Box 30808 Los Angeles, CA 90030 Crestline Hotels & Management fees $38,888 Resorts 3950 University Drive, Suite 301 Fairfax, VA 22030 State of California Sales & Use $37,810 Board of Equalization Taxes Marukai Corporation Security Deposit $32,423 Hugh Marsh & Neva Lima ADA Claims Unknown Kinokuniya Bookstores Security Deposit $26,000 Hodes Parking Parking fees $20,445 Gateway Security, Inc. Trade $19,843 House Foods America Corp Security Deposit $17,495 LA DWP Utility Services $15,851 K & M Foodservice Trade $12,147 Jin Sung Lee & Jae Security Deposit $10,311 Hee Lee Waxie Sanitary Supply Trade $7,535 KTWV-FM Trade $6,000 Yee Yuen Linen Service Trade $5,945 Room Service Amenities Trade $5,923 Pasadena Baking Wholesale Trade $5,858 Commercial Waste Service Trade $5,665 Inc. Simplex Grinnell Trade $5,407 LOWER BUCKS: Court Fixes August 20 as Bar Date for All Claims ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Pennsylvania has established August 20, 2010, at 4:00 p.m., prevailing Eastern time, as the deadline for any individual or entity, and governmental units, to file proofs of claim against Lower Bucks Hospital. Proof of claim forms must be either (i) mailed to Donlin Recano & Company, Inc., Re: Lower Bucks Hospital, et al., P.O. Box 2042, Murray Hill Station, New York, NY 10156; or (ii) delivered by overnight courier or messenger to Donlin Recano & Company, Inc., Re: Lower Bucks Hospital, et al, 419 Park Avenue South, Suite 1206, New York, NY 10016. Bristol, Pennsylvania-based Lower Bucks Hospital is a nonprofit hospital based in Bristol, Pennsylvania. The Hospital is currently licensed to operate 183 beds. Together with affiliates Advanced Primary Care Physicians and Lower Bucks Health Enterprises, Inc., Lower Bucks owns a 36-acre campus with several medical facilities. The Hospital's emergency room serves approximately 30,000 patients annually. For the fiscal year ending June 30, 2009, Lower Bucks had $114 million in consolidated revenues. The Hospital filed for Chapter 11 bankruptcy protection on January 13, 2010 (Bankr. E.D. Pa. Case No. 10-10239). The Hospital's affiliates -- Lower Bucks Health Enterprises, Inc, and Advanced Primary Care Physicians also filed Chapter 11 petitions. Jeffrey C. Hampton, Esq., and Adam H. Isenberg, at Saul Ewing LLP, assist the Hospital in its restructuring effort. Donlin, Recano & Company, Inc., is the Hospital's claims and notice agent. The Hospital listed $50,000,001 to $100,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. MAC MAYER: Voluntary Chapter 11 Case Summary -------------------------------------------- Joint Debtors: Mac R. Mayer Dianne H. Mayer 8072 S Rafael Way Boise, ID 83709-7386 Bankruptcy Case No.: 10-02238 Chapter 11 Petition Date: July 14, 2010 Court: United States Bankruptcy Court District of Idaho (Boise) Judge: Terry L. Myers Debtor's Counsel: Randal J. French, Esq. P.O. Box 2730 Boise, ID 83701-2730 Tel: (208) 383-0090 Fax: (208) 383-0412 E-mail: rfrench@bauerandfrench.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 the Joint Debtors. MARK J GINSBURG: Has Until October 7 to File Reorganization Plan ---------------------------------------------------------------- The Hon. Raymond B. Ray of the U.S. Bankruptcy Court for the Southern District of Florida extended until October 7, 2010, Mark J. Ginsburg's exclusive period to file a Plan of Reorganization. Lighthouse Point, Florida-based Mark J. Ginsburg, aka Mark Ginsburg and Dr. Mark Ginsburg, filed for Chapter 11 bankruptcy protection on February 9, 2010 (Bankr. S.D. Fla. Case No. 10- 13056). Chad P. Pugatch, Esq., who has an office in Ft. Lauderdale, Florida, assists the Company in its restructuring effort. The Company has assets of $16,675,693 and total debts of $47,823,735. MARKET STREET: Has Until December 31 to File Reorganization Plan ---------------------------------------------------------------- The Hon. Hon. Elizabeth W. Magner of the U.S. Bankruptcy Court for the Eastern District of Louisiana extended Market Street Properties, LLC's exclusive periods to file and solicit acceptances for the proposed Plan of Reorganization until December 31, 2010, and March 2, 2011, respectively. Oceanside, New York-based Market Street Properties, LLC, filed for Chapter 11 bankruptcy protection on December 23, 2009 (Bankr. E.D. La. Case No. 09-14172). Christopher T. Caplinger, Esq., who has an office in New Orleans, Louisiana, 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. MEDICAL STAFFING: Gets Court OK to Reject 7 Leases -------------------------------------------------- Medical Staffing Network Holdings, Inc., et al., sought and obtained authorization from the Hon. Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida to reject seven leases of non-residential real property, all of which were vacated pre-petition and no longer used by the Debtors. MSN sought permission to reject three unexpired lease agreements for equipment that is no longer being used by MSN. Immediate rejection will preclude the accrual and assertion of administrative expense claims against the Debtors' Chapter 11 estates. The Debtors are parties (lessees) to numerous Lease Agreements (collectively, the Lease Agreements) with (i) Coolidge 585 Stewart, LLC.; (ii) SVF, LLC; (iii) The Commerce Centre Venture, LLP; (iv) EOP - One Lincoln Centre, LLC; (v) MSC Sand Lake IV, Inc.; (vi) NB MS NEBC, LLC; and (vii) Grandview Office Group regarding non-residential real property located in the states of New York, California, Maryland, Illinois, Florida, Massachusetts and Pennsylvania. For one property, located in Oakbrook Terrace, Illinois, InteliStaf Holdings subleases space to COMSYS Information Technology Services, Inc. (COMSYS). Although InteliStaf Holdings has not paid rent on such Lease Agreement since March, COMSYS has been remitting its rent payments for the subleased space directly to the landlord, EOP - One Lincoln Centre, LLC since that time. As such, InteliStaf Holdings would not be liable for any cure costs related to the sublease. The termination dates of the Lease Agreements vary, but the termination dates are all subsequent to the Petition Date. The Debtors sought authority to reject the Lease Agreements on an emergency basis, effective as of the Petition Date, because the Debtors have closed those branch locations, pre-petition, and no longer need or use the premises that are the subject of the Lease Agreements. Prior to the Petition Date, MSN entered into three equipment lease agreements, through which Pitney Bowes provides a postage meter and related equipment and Precision Print Solutions provides record storage, destruction and imaging services (collectively, the Equipment) to MSN. The termination dates of the Equipment Leases are July 2011, February 2014 and September 2014, respectively. MSN said that it no longer needs or uses the Equipment, and seeks to reject the Equipment Leases, effective as of the Petition Date. Through rejection of the Lease Agreements and Equipment Leases, the Debtors seek to preclude the accrual of administrative expense claims against their Chapter 11 estates. The Court ruled that any proof of claim for damages arising from the rejection of the Lease Agreements and Equipment Leases must be filed with the Court upon the later of (i) the general claims bar date established in these cases, which is September 30, 2010, or (ii) within 30 days after the entry of the court order. A list of the lease agreements is available for free at: http://bankrupt.com/misc/MEDICAL_STAFFING_leasepacts.pdf About Medical Staffing Boca Raton, Florida-based Medical Staffing Network Holdings, Inc., provides temporary (predominantly healthcare) staffing services including per diem, short term contracts and travel, in the United States. Warburg Pincus Private equity VIII, L.P., owns a 45.4% stake in the Company. The Company filed for Chapter 11 bankruptcy protection on July 2, 2010 (Bankr. S.D. Fla. Case No. 10-29101). Paul Steven Singerman, Esq., who has an office in Miami, Florida, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. Akerman Senterfitt is the Company's special corporate and transactional counsel. Loughlin Meghji + Company is the Company's corporate restructuring advisor. Ernst & Young LLP is the Company's accounting and tax advisor. Jefferies & Company, Inc., is the Company's investment banker. The Garden City Group Inc. is the Company's claims and notice agent. MEDICAL STAFFING: Gets OK to Reject Goldman Sachs Contract ---------------------------------------------------------- Medical Staffing Network Holdings, Inc., et al., sought and obtained authorization from the Hon. Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida to reject a contract with Goldman Sachs & Co. The Debtors sought the rejection of the agreement on an emergency basis as rejection effective as of the Petition Date will preclude the accrual of administrative expense claims against the Debtor's Chapter 11 estate. On September 2, 2008, the Debtor MSN Holdings entered into an engagement letter (the Agreement) with Goldman Sachs, pursuant to which Goldman Sachs was engaged as a financial advisor to the Debtors in connection with the possible sale of all or a portion of MSN Holdings. Pursuant to the Agreement, in the event a purchase of 50% or more of the common stock or the assets of MSN Holdings was accomplished, Goldman Sachs would charge a transaction fee of 1.5% of the aggregate consideration paid in such transaction, but in no event less than $3.5 million. In the event of a transaction for less than 50%, the transaction fee would be agreed to between Goldman Sachs and MSN Holdings. The Agreement also contained a provision (the Termination Provision) which stated, "Our services may be terminated by you or us at any time with or without cause effective upon receipt of written notice to that effect. We will be entitled to the applicable transaction fee set forth above in the event that at any time prior to the expiration of 18 months after such termination (i) an agreement is entered into with respect to a sale of all or a portion of the stock or assets of the Company which is eventually consummated, or (ii) an Agreement is entered into pursuant to which a Payment is eventually made." In a letter to Goldman Sachs dated January 31, 2010 (the Termination Letter), MSN Holdings terminated the Agreement. The Termination Letter acknowledged the obligations contained in the Termination Provision. The Court ruled that any proof of claim for damages arising from the rejection must be filed with the Court upon the later of (i) the general claims bar date established in these cases, which is September 30, 2010, or (ii) within 30 days after the entry of the court order. Boca Raton, Florida-based Medical Staffing Network Holdings, Inc., provides temporary (predominantly healthcare) staffing services including per diem, short term contracts and travel, in the United States. Warburg Pincus Private equity VIII, L.P., owns a 45.4% stake in the Company. The Company filed for Chapter 11 bankruptcy protection on July 2, 2010 (Bankr. S.D. Fla. Case No. 10-29101). Paul Steven Singerman, Esq., who has an office in Miami, Florida, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. Akerman Senterfitt is the Company's special corporate and transactional counsel. Loughlin Meghji + Company is the Company's corporate restructuring advisor. Ernst & Young LLP is the Company's accounting and tax advisor. Jefferies & Company, Inc., is the Company's investment banker. The Garden City Group Inc. is the Company's claims and notice agent. MICHAELS STORES: Elaine Crowley to Resign as Sr. Vice President --------------------------------------------------------------- Elaine D. Crowley informed Michaels Stores Inc. that she would resign from her position as the Company's Senior Vice President- Chief Financial Officer and Controller, effective August 6, 2010. Effective August 6, 2010, Richard S. Jablonski will assume the additional role of interim Controller of the Company, and shall serve as interim principal accounting officer in such capacity. Mr. Jablonski has served as Vice President of Financial Planning and Analysis since April 2010 and as Vice President - Finance and Controller from February 2008. Mr. Jablonski previously served as principal accounting officer from April 2008 to April 2010. Prior to joining the Company, he was Vice President of Finance at RadioShack Corporation from September 2003 to April 2007, where he was responsible for financial and strategic planning, analysis and management reporting for multiple functions and businesses. Headquartered in Irving, Texas, Michaels Stores, Inc., is the largest arts and crafts specialty retailer in North America. As of March 9, 2009, the Company operated 1,105 "Michaels" retail stores in the United States and Canada and 161 Aaron Brothers Stores. Michaels Stores, Inc., reported net income of $13 million for the first quarter of fiscal 2010, a $9 million improvement from net income of $4 million in the first quarter of fiscal 2009. Total sales for the quarter ended May 1, 2010, were $901 million, a 5.7% increase from fiscal 2009 first quarter sales of $852 million. Same-store sales for the comparable 13-week period increased 4.9% of which 160 basis points were related to the positive impact of foreign exchange rates. First quarter operating income increased $41 million to $105 million from $64 million in fiscal 2009. At May 1, 2010, the Company had total assets of $1.56 billion against total liabilities of $4.32 billion, resulting in stockholders' deficit of $2.76 billion. MONDRIAN TTL: Creditors Have Until Aug. 15 to File Proofs of Claim ------------------------------------------------------------------ The Hon. Randolph J. Haines of the U.S. Bankruptcy Court for the District of Arizona has established August 15, 2010, as the last day for any individual or entity to file proofs of claim against Mondrian TTL, L.L.C., and Grigio TTL, L.L.C. Mondrian TTL is represented by: Lewis and Roca LLP 40 North Central Avenue Phoenix, AZ 85004-4429 Susan M. Freeman, Esq. E-mail: SFreeman@LRLaw.com Tel: (602) 262-5756 Fax: (602) 734-3824 Rob Charles, Esq. E-mail: RCharles@LRLaw.com Tel: (520) 629-4427 Fax: (520) 879-4705 About Mondrian TTL Phoenix, Arizona-based Mondrian TTL, L.L.C., dba Mondrian Tempe Town Lake, owns the leasehold interest in an apartment complex known as Grigio Tempe Town Lakes, in Tempe, Arizona, and is affiliated with multiple entities owned by Bruce Gray or entities he controls. The Company filed for Chapter 11 bankruptcy protection on May 9, 2010 (Bankr. D. Ariz. Case No. 10-14140). Susan M. Freeman, Esq., at Lewis and Roca, assists the Company in its restructuring effort. The Company estimated its assets and debts at $50,000,001 to $100,000,000. MONEYGRAM INT'L: New CFO Shields Gets Options to Buy 2MM Shares --------------------------------------------------------------- James E. Shields, newly minted executive vice president and chief financial officer of MoneyGram International, Inc., disclosed that on July 13, 2010, he acquired options to buy up to 2,000,000 company shares. MoneyGram named Mr. Shields EVP and CFO, effective July 13. The Non-qualified stock options were granted pursuant to MoneyGram International, Inc. 2005 Omnibus Incentive Plan, as amended, pursuant to a Non-Qualified Stock Option Agreement dated July 13, 2010. Options for 50% of the shares are considered "Time Vested" and options for 50% of the shares are considered "Performance Vested." The Time Vested options will vest in equal installments over five years on the anniversary of the grant date. Half of the Performance Vested options will vest when MoneyGram's common stock closes at or above $4.00 per share for 20 consecutive trading days during the five-year period following the grant date, and the other half of the Performance Vested options will vest when MoneyGram's common stock closes at or above $5.25 per share for 20 consecutive trading days during the five-year period following the grant date. If MoneyGram's shares are not publicly traded, then vesting for the options that are Performance Vested will vest in the manner set forth in the stock option agreement. MoneyGram International Inc. -- http://www.moneygram.com/-- offers more control and more choices for people separated by distance or with limited bank relationships to meet their financial needs. A leading global payment services company, MoneyGram International helps consumers to pay bills quickly and safely send money around the world in as little as 10 minutes. Its global network is comprised of 190,000 agent locations in nearly 190 countries and territories. MoneyGram's convenient and reliable network includes retailers, international post offices and financial institutions. * * * According to the Troubled Company Reporter on Juyl 1, 2010, Fitch Ratings has affirmed the Issuer Default Ratings for MoneyGram International Inc. and MoneyGram Payment Systems Worldwide, Inc., at 'B+'. Fitch has also affirmed these ratings for Worldwide: -- Senior secured first lien credit facility at 'BB+/RR1'; -- Senior secured second lien notes at 'B+/RR4'. The Rating Outlook has been revised to Stable from Negative. MONICA LESTER: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Monica Laverne Lester aka Monica L. Nesbit 1440 Kearney Street, NE Washington, DC 20017 Bankruptcy Case No.: 10-00693 Chapter 11 Petition Date: July 14, 2010 Court: United States Bankruptcy Court District of Columbia (Washington, D.C.) Judge: S. Martin Teel, Jr. Debtor's Counsel: Rowena Nicole Nelson, Esq. Law Office of Rowena N. Nelson & Asso. 1801 McCormick Dr., Suite 150 Largo, MD 20774 Tel: (301) 358-3349 E-mail: rnelson@rnnlawmd.com Scheduled Assets: $1,837,783 Scheduled Debts: $1,309,414 A list of the Debtor's 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/dcb10-00693.pdf The petition was signed by Ms. Lester. MORGAN STANLEY: Mulls Options for Real Estate Fund -------------------------------------------------- The Wall Street Journal's Lingling Wei, Peter Lattman and Aaron Lucchetti report that Morgan Stanley is considering what to do with its family of funds known as Msref, according to people familiar with the matter. Options include reducing its own capital in the funds, or selling them. Sources told the Journal the planning is in the early stages and no decisions have been made. "We're not in discussions on the sale of the business," a Morgan Stanley spokeswoman said, according to the Journal. New regulations that would follow the passage of financial-services legislation in the U.S. would likely force Morgan Stanley and other banks to cut their own investments in real-estate funds and some other portfolios they manage. The Journal recalls Morgan Stanley told investors in the $8.8 billion real-estate fund that it may have accumulated losses since the fund's inception of nearly two-thirds of its money, according to the fund's report for the third quarter of 2009. The estimated $5.4 billion loss likely would be the biggest dollar loss in the history of private-equity real-estate investing. NEW BERN: Wants Until August 30 to Propose Reorganization Plan -------------------------------------------------------------- New Bern Riverfront Development, LLC, asks the U.S. Bankruptcy Court for the Eastern District of North Carolina to extend its exclusive periods to file and solicit acceptances for the proposed Chapter 11 Plan until August 30, 2010, and October 30, respectively. The Debtor needs additional time to: -- resolve the sale of existing residential condominium units; and the settlement or trial of the pending litigation which was removed from state court. -- finalize negotiations with its primary secured creditor, and -- finalize the proposed Plan and Disclosure Statement. About New Bern Riverfront Development, LLC Cary, North Carolina-based New Bern Riverfront Development, LLC, is the developer of SkySail Condominium, consisting of 121 residential condominiums (plus 1 commercial/non-residential unit) located on Middle Street on the waterfront in historic downtown New Bern, North Carolina, and sells the SkySail Condominiums in the ordinary course of business. The Debtor filed for Chapter 11 bankruptcy protection on November 30, 2009 (Bankr. E.D. N.C. Case No. 09-10340). John A. Northen, Esq., at Northen Blue, LLP, assist the Company in its restructuring effort. The Company has assets of $31,515,040, and total debts of $25,676,781. OPTI CANADA: Reports Operating Results for June 30 Quarter ---------------------------------------------------------- OPTI Canada Inc. reported its financial and operating results for the quarter ended June 30, 2010. The Long Lake Project is the first to use OPTI's integrated OrCrude process. The company's proprietary process is designed to substantially reduce operating costs compared to other oil sands projects while producing a high quality, sweet, synthetic crude oil. The company's balance sheet for June 30, 2010, showed $3.6 million total assets and $2.5 million total liabilities, for a $1.1 million total stockholders' deficit. The company reported $152,340 net loss for the three months ended June 30, 2010, compared with $8,750 net loss for the same period a year ago. "The Long Lake Project has demonstrated strong plant performance and improving bitumen production throughout 2010 and we look forward to delivering a similar message in quarters to come," said Chris Slubicki, President and Chief Executive Officer of OPTI. "Our bitumen production has increased to 28,500 barrels per day and the Upgrader is processing virtually all of our produced and externally-sourced bitumen. Steam injection is also increasing and plant reliability remains consistent. We expect to see further increase in bitumen production in the second half of the year as we enhance and optimize our operations." "We also have enormous growth potential beyond the Long Lake Project. Incorporating what we've learned from Phase 1, we plan to stage smaller SAGD projects in our next development, Kinosis. This will allow us to lower the intensity of our capital program, reduce our labour requirements, and give us better construction cost and execution control." "Our strong plant performance and continuously improving production throughout ramp-up support our ongoing strategic alternatives review process." A full-text copy of the company's financial report is available for free at http://ResearchArchives.com/t/s?669e About OPTI OPTI Canada Inc. is a Calgary, Alberta-based company focused on developing major oil sands projects in Canada using its proprietary OrCrude(TM) process. OPTI's common shares trade on the Toronto Stock Exchange under the symbol OPC. OPTI continues to carry Moody's Caa2 corporate rating and Standard & Poor's B- corporate rating. The Company's balance sheet at March 31, 2010, showed C$3.7 billion in total assets and C$2.5 billion in total liabilities for a C$763.0 million in stockholders' deficit. PATRICK HACKETT: Bank Says Disclosure Statement Is Inadequate ------------------------------------------------------------- Brian Kelly at Watertown Daily Times says KeyBank asked a federal bankruptcy court to deny approval of Patrick Hackett Hardware Inc.'s disclosure statement explaining the company's plan of reorganization because it does not contain adequate information. The Daily Times, citing court documents, says the bank claimed it is the holder of a consolidated promissory note dated 1998 of $1.4 million. The bank said there is about $423,000 owed under the loan deal and that the company's disclosure statement failed to include information as to how the remaining balance will be paid. The Company's plan intends to pay the bank off over 25 years, according to the report. According to the reorganization plan, Patrick Hackett plans to pay off its debts from revenues and income generated by the continued operation of its business. It will also use $500,000 from its parent corporation, Wisebuys Inc., which is not in bankruptcy; $200,000 from Seaway Valley Capital Corp., of which Wisebuys is a subsidiary; and $200,000 from the sale of property in Canton and Ogdensburg. The money from Wisebuys and Seaway Valley will be raised through "various public offerings," according to a disclosure statement accompanying the reorganization plan. About Patrick Hackett Hackett's Stores, Inc., is the parent company of Patrick Hackett Hardware Company and HIIO, Inc. Patrick Hackett Hardware Company has a wide variety of merchandise and business lines, including a full service hardware, consumer electronics, equipment rental, brand name clothing, footwear, sporting goods and gourmet foods. HIIO, Inc., represents a concept platform for a new specialty retailer focused on fashion clothing and outerwear, footwear and selected gift items. There are currently no HIIO-branded stores opened to date. Hackett's Stores, Inc. (Pink Sheets:HCKI) is a holding of Seaway Valley Capital Corporation (Pink Sheets:SEVA). Based in New York, Patrick Hackett Hardware Company -- http://www.hackettsonline.com/-- began in 1830 as a hardware store in upstate New York. Hacketts now operates full-service department stores and a specialty store, selling a full line of clothes, consumer electronics, cell phones, shoes, housewares, hardware and others. Patrick Hackett filed for Chapter 11 on November 10, 2009 (Bankr. N.D. N.Y Case No. 09-63135). The Debtor disclosed less than $10,000,000 in total asset Hackett's Stores, Inc., whose shares trade currently on the Pink Sheets, is not nor has ever been in bankruptcy or bankruptcy protection." PAHRUMP RENTALS: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Pahrump Rentals, Inc. 101 S. Frontage Road Pahrump, NV 89048 Bankruptcy Case No.: 10-23179 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Richard E. Hawkins, Esq. 4680 Polaris Sst., Suite 250 Las Vegas, NV 89103 Tel: (702) 508-8462 E-mail: HawkinsLawFirm@gmail.com Scheduled Assets: $634,486 Scheduled Debts: $6,827,538 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Karen Thomas, president. PRIUM KENT: Case Summary & 19 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Prium Kent Retail LLC 820 A Street #300 Tacoma, WA 98402 Bankruptcy Case No.: 10-45715 Chapter 11 Petition Date: July 14, 2010 Court: United States Bankruptcy Court Western District of Washington (Tacoma) Judge: Brian D. Lynch Debtor's Counsel: Timothy W. Dore, Esq. Ryan Swanson & Cleveland PLLC 1201 3rd Avenue, Suite 3400 Seattle, WA 98101-3034 Tel: (206) 464-4224 E-mail: dore@ryanlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 19 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb10-45715.pdf The petition was signed by Thomas W. Price, member of Prium Companies LLC which is the sole member of P & U Capital Partners II, LLC, which is the sole member of the Debtor. Debtor-affiliates that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Chelsea Heights LLC 10-44959 06/18/10 Prium Tumwater Buildings LLC 10-44962 06/18/10 PRIUM MEEKER: Case Summary & 19 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Prium Meeker Mall LLC 820 A Street #300 Tacoma, WA 98402 Bankruptcy Case No.: 10-45713 Chapter 11 Petition Date: July 14, 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 Avenue, Suite 3400 Seattle, WA 98101-3034 Tel: (206) 464-4224 E-mail: dore@ryanlaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Thomas W. Price, member of Prium Companies LLC, the sole member of P & U Capital Partners I, LLC, which is the Debtor's sole member. Debtor's List of 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Benaroya Capital Company $56,000 1100 Olive Way #1700 Seattle, WA 98101 Pederson Painting LLC $52,317 4220 E 112th St. Tacoma, WA 98446 Professional Building $18,800 Services 7925 170th Ave NE Redmond, WA 98052 New Dimensions Landscape $8,840 Inc. Pierce County Security $7,150 City of Kent $4,002 Sherwin Williams $3,844 Heattransfer Company $3,079 Smith Fire Systems $2,433 Walter E. Nelson Company $2,244 The Stratford Group $1,594 Waste Management Tri Star $1,447 Disp Whirlwind Services $1,169 Puget Sound Energy $985 Sprague $640 Master Vac $459 City of Kent Permit Center $162 Guardian Security $70 Qwest $67 Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Chelsea Heights LLC 10-44959 06/18/10 Prium Tumwater Buildings LLC 10-44962 06/18/10 Prium Kent Retail LLC PROTECTIVE PRODUCTS: In Talks with Creditors Panel on Plan Changes ------------------------------------------------------------------ Protective Products of America, Inc., et al., asks the U.S. Bankruptcy Court for the Southern District of Florida to extend their exclusive periods to file and solicit acceptances for the proposed plan of reorganization until July 30, 2010, and September 30, respectively. The Debtors filed their request for an extension before the exclusive periods was set to expire on June 30. The Debtors need additional time to discuss with the Official Committee of Unsecured Creditors certain changes on the Disclosure Statement and Plan. About Protective Products of America, Inc. Sunrise, Florida-based Protective Products of America, Inc., formerly known as Ceramic Protection Corporation -- http://www.protectiveproductsofamerica.com/-- engages in the design, manufacture and marketing of advanced products used to provide ballistic protection for personnel and vehicles in the military and law enforcement markets. RADIO ONE: Extends Expiration Offer of Senior Notes to July 31 -------------------------------------------------------------- Radio One Inc. had extended the expiration time of the exchange offer for its 87/8% Senior Subordinated Notes due 2011 and its 63/8% Senior Subordinated Notes due 2013, and the related consent solicitation, to 5:00 p.m., New York City time, on July 31, 2010. As of 5:00 p.m., New York City time, on July 15, 2010, approximately 89.8% of the outstanding Existing Notes had been validly tendered into the exchange offer and not withdrawn. At the previously scheduled expiration time, the conditions necessary to consummate the exchange offer as set forth in the Company's Exchange Offer and Consent Solicitation Statement and Offering Memorandum, dated June 16, 2010 (the "Offering Memorandum"), were not satisfied and, as a result, the Company has determined to extend the exchange offer. The subscription offer to holders of Existing Notes who participate in the exchange offer to purchase its new 8.5%/9.0% Second-Priority Senior Secured Grid Notes due 2016 expired at 5:00 p.m., New York City time, on July 15, 2010, and the Company has determined not to further extend the subscription offer. At this time, the Company does not expect to issue such second- priority notes and is evaluating its options with respect its purchase of the additional 19% of the outstanding equity interests in TV One, LLC as contemplated by the Offering Memorandum. The Company is currently in discussions with representatives of the ad hoc group of holders of a significant portion of its Existing Notes relating to certain amendments to the terms of the exchange offer and the related exchange notes, including the conditions to the exchange offer. A full-text copy of the company's forbearance agreement is available for free at http://ResearchArchives.com/t/s?6697 About Radio One Radio One, Inc., operates as an urban-oriented multi-media company in the United States. It principally engages in the radio broadcasting operation that primarily targets African-American and urban listeners. As of December 31, 2009, it owned and operated 53 radio stations located in 16 urban markets in the United States. The company also has approximately 37% ownership interest in TV One, LLC, an African-American targeted cable television network; and a 53.5% ownership interest in Reach Media, Inc., which operates the Tom Joyner Morning Show. Further, it owns Interactive One, LLC, an online platform serving the African-American community through social content, news, information, and entertainment; and Community Connect, LLC, an online social networking company. The company was founded in 1980 and is based in Lanham, Maryland. * * * As reported by the Troubled Company Reporter on June 21, 2010, Moody's Investors Service will upgrade Radio One, Inc.'s Corporate Family Rating to B3 from Caa1 and its probability of Default Rating to B3 from Caa2 pending closing of their proposed note exchange, debt refinancing and purchase of additional interests in TVOne. Standard & Poor's Rating Services placed its 'CCC+' corporate credit rating on Lanham, Md.-based radio broadcaster Radio One Inc. on CreditWatch with positive implications. The company has proposed several transactions to refinance its capital structure and acquire a controlling stake in TV One LLC. Upon completion of the refinancing, and assuming there are no material changes to the proposed terms, S&P expects to raise the corporate credit rating to 'B' with a stable outlook. RCLC INC: Settles with PBGC Over 2009 Litigation ------------------------------------------------ RCLC Inc., formerly Ronson Corporation, and certain of its subsidiaries entered into a settlement agreement with the Pension Benefit Guaranty Corporation to settle the litigation commenced by the PBGC on December 30, 2009, in the Federal District Court for the District of New Jersey seeking entry of a decree: 1) adjudicating that the Ronson Corporation Retirement Plan be terminated, 2) appointing the PBGC as the statutory trustee of the Plan, 3) establishing December 30, 2009 as the termination date of the Plan and 4) directing the company and any other person or entity having possession, custody or control of any records, assets or other property pertaining to the Plan to transfer, convey and deliver them to the PBGC. In connection with the settlement, an Agreement for Appointment of Trustee and Termination of Plan was also entered into by the Company and the PBGC. The Settlement Agreement, which includes the Company and its subsidiaries, RCPC Liquidating Corp., Ronson Aviation, Inc. and Ronson Corporation of Canada Ltd., as parties, settles the PBGC's claims against the Company and such subsidiaries and provides that the PBGC waives any secured claims and maintains general unsecured claims against the Company, RCPC, Aviation and RCC in the aggregate amount of $4,410,361 which claims are comprised of unfunded pension benefit liabilities of $2,508,672, minimum funding contributions of $258,491 and a termination premium of $1,643,198. The Termination Agreement provides that the Plan is terminated effective December 30, 2009 and that the PBGC is appointed Trustee of the Plan allowing the PBGC to take title to and control over the Plan assets. Under the Settlement Agreement, the PBGC acknowledges that a buyer of the assets of RCPC, Aviation and RCC will not be deemed a successor and will not have any liability to the PBGC for these claims or to the Plan so long as the buyer purchases such assets in an arm's length transaction and is not an affiliate of the Company or such subsidiaries. About RCLC Inc. RCLC, Inc., formerly known as Ronson Corporation, in Woodbridge, New Jersey, historically, has been engaged principally in these businesses -- Consumer Products; and Aviation-Fixed Wing and Helicopter Services. * * * According to the Troubled Company Reporter on June 18, 2010, RCLC Inc. and its wholly-owned subsidiaries, RCPC Liquidating Corp. Ronson Aviation, Inc., and RCC Inc., further extended the forbearance agreement with their principal lender, Wells Fargo Bank, National Association, under which Wells Fargo agreed not to assert existing events of default under the Borrowers' credit facilities with Wells Fargo through July 16, 2010, or such earlier date determined under the Forbearance Agreement, to provide the Borrowers with additional time to consummate the sale of RAI's assets to Hawthorne TTN Holdings, LLC pursuant to the previously disclosed Asset Purchase Agreement dated as of May 15, 2009, as amended, among the Company, RAI and Hawthorne, or, alternatively, enter into an asset purchase agreement with another qualified purchaser. RENAISSANT LAFAYETTE: Wants Until August 20 to File Ch. 11 Plan --------------------------------------------------------------- Renaissant Lafayette LLC asks the U.S. Bankruptcy Court for the Eastern District of Wisconsin to extend its exclusive periods to file a Chapter 11 Plan from June 21, 2010, to August 20, and to solicit acceptances for the proposed plan until October 19. The Debtor believes it is close to completing a deal that would result in a sale of substantially all of the assets. The Debtor anticipates a Plan of Reorganization is likely unnecessary. However, in an abundance of caution, the Debtor seeks further extensions of the exclusive periods so as to have adequate time to formulate and circulate a plan if it becomes appropriate. Oak Brook, Illinois-based Renaissant Lafayette LLC is the owner of a 280-unit luxury condominium development in Milwaukee named Park Lafayette. The project is at the intersection of North Prospect Avenue and Lafayette Place in Milwaukee. So far, 39 units were sold. The Company filed for Chapter 11 bankruptcy protection on December 23, 2009 (Bankr. E.D. Wis. Case No. 09-38166). Forrest B. Lammiman, Esq., at Meltzer, Purtill & Stelle LLC, assists the Company in its restructuring effort. The Company listed $50,000,001 to $100,000,000 in assets and $100,000,001 to $500,000,000 in liabilities. SENSIVIDA MEDICAL: Posts $342,264 Net Loss in Q1 Ended May 31 ------------------------------------------------------------- SensiVida Medical Technologies, Inc., filed its quarterly report on Form 10-Q, reporting a net loss $342,264 for the three months ended May 31, 2010, compared with a net loss of $560,271 for the three months ended May 31, 2009. The Company's balance sheet at May 31, 2010, showed $3,333,530 in assets, $2,945,574 of liabilities, and $387,983 of stockholders' equity. As reported in the Troubled Company Reporter on June 21, 2010, Morison Cogen LLP, in Bala Cynwyd, Pa., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended February 28, 2010. The independent auditors noted that the Company has no revenues, incurred significant losses from operations, has negative working capital and an accumulated deficit. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?66a9 About SensiVida Medical Based in Henrietta, New York, SensiVida Medical Technologies, Inc. f/k/a Mediscience Technology Corp. is a minimally invasive bio-medical diagnostic device company. Its proprietary optical Micro-systems based technology automates bio-sensing and data acquisition while minimizing patient discomfort. The Company's platform technology addresses a number of disease state diagnostics - allergy testing, pain-free automated glucose monitoring without bio-fouling, blood coagulation testing (e.g. for Coumadin patients), TB testing and cholesterol monitoring. SEVERN BANCORP: Returns to Profitability in Second Quarter 2010 --------------------------------------------------------------- Severn Bancorp Inc. reported the results for the quarter and six months ended June 30, 2010. Net income for the second quarter was $593,000 compared to net loss of $6.9 million for the second quarter of 2009. Net income was $65,000 the six months ended June 30, 2010, compared to net loss of $8.2 million for the six months ended June 30, 2009. At June 30, 2010, Severn's regulatory capital ratios continued to exceed the levels required to be considered "well capitalized" under applicable federal banking regulations, including its core (leverage) ratio of approximately 11.5% compared to the regulatory requirement of 5% for "well capitalized" status. "We are gratified by these results and are pleased that our hard work is resulting in a turn around in the direction of our earnings," said Alan J. Hyatt, president and chief executive officer. "However, we remain uncertain about the country's economy and how long conditions, including unemployment, will continue to negatively impact our local economy." Mr. Hyatt continued "While non-performing assets overall have decreased, they remain a challenge, and we continue to work with borrowers to return these assets to performing status. We also remain focused on providing full service banking to our customers with products and services that will increase shareholder value." A full-text copy of the company's earnings release is available for free at http://ResearchArchives.com/t/s?6698 About Severn Savings Bank Founded in 1946, Severn Savings Bank, FSB -- http://www.severnbank.com/-- is a full-service community bank offering a wide array of personal and commercial banking products as well as residential and commercial mortgage lending. It has assets of nearly $1 billion and four branches located in Annapolis, Edgewater and Glen Burnie. The bank specializes in exceptional customer service and holds itself and its employees to a high standard of community contribution. Severn Bancorp, Inc., (Nasdaq: SVBI) is the parent company of Severn Savings Bank. As reported by the TCR on November 25, 2009, Annapolis, Maryland- based Severn Bancorp along with its Bank unit, has entered into supervisory agreements with the Office of Thrift Supervision, the Bank's primary federal regulator. The agreements set forth steps being taken in response to regulatory concerns with its operating results and effects of the current economic environment facing the financial services industry. SHOREBANK CORP: Continues to Wait for $75-Mil. Gov't Bailout ------------------------------------------------------------ The Wall Street Journal's Robin Sidel reports that executives at ShoreBank Corp. in Chicago are losing hope that government funds will be forthcoming and are considering other plans to keep the bank open, according to people familiar with the situation. The report says the bank has approached Wall Street firms that already have pledged money to the bank to assess their interest in such plans, these people said. ShoreBank is awaiting to hear if the government will provide a $75 million infusion that could help keep it in business. A person familiar with the bank's strategy, according to Ms. Sidel, said ShoreBank, which provides financial services in distressed parts of the city, is reeling, in part, because it made loans to borrowers in low-income neighborhoods away from its historical focus on Chicago's South Side. Founded in 1973, ShoreBank built a reputation on lending to low- and-moderate income borrowers on Chicago's South Side. Many of those loans were used to renovate apartment buildings in low- income neighborhoods. The company's bankers prided themselves on knowing details about the three- to six-story brick walk-up apartments that cover the neighborhood, the person familiar with the bank's operations told the Journal. Over the past few years, however, ShoreBank began expanding across town into Chicago's other underserved neighborhoods, such as the Logan Square area. ShoreBank's bankers were less familiar with the neighborhood's residents and its buildings, this person said. The bank also made loans for condominium development, an area in which it didn't have much experience. Borrowers, flush from successful renovation projects, took out multiple loans from the bank. The plan backfired when the economy started unraveling, this person told the Journal. Residents lost their jobs and couldn't pay their rent in the refurbished buildings. Borrowers, some of whom were developing multiple projects, couldn't repay loans. By last summer, regulators had ordered the bank to bolster its capital levels due to rising loan losses. The company also installed a new management team. The Journal notes that in addition to seeking government funds, ShoreBank has cobbled together about $135 million of pledges from assorted investors, including Wall Street companies Goldman Sachs Group Inc. and Bank of America Corp., if the government bailout comes through. That decision may be complicated by recent calls for inquiries into Wall Street's potential assistance to ShoreBank. Republican lawmakers question whether the White House has pressured big banks to help. And they want to know if the big banks are currying favor with the Obama administration by helping prop up the local lender based in the president's hometown. The White House has said it didn't pressure the lenders. A ShoreBank spokesman, according to the Journal, said the bank hasn't contacted the White House about its troubles. If the funds don't materialize, the bank's future is in doubt. Federal and state regulators have ordered the bank to raise its capital levels significantly and could potentially close the bank if it fails to do so. SPANSION INC: Tessera IP Dispute Moving to District Court --------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Spansion Technologies Inc. agreed with Tessera Inc. to move their patent dispute over packaged semiconductor components to the district court from the bankruptcy court. Mr. Rochelle recounts that in 2005, Tessera filed a patent infringement suit against Spansion in 2005 in U.S. District Court in California. The suit was put on hold after Tessera began a proceeding before the International Trade Commission to halt the importation of goods that allegedly infringed the patents. Ultimately, the ITC ruled that there were infringements and ordered a limited exclusion prohibiting importation of infringing goods. In the Chapter 11 case of Spansion, Tessera filed a $219 million claim against Spansion and followed up with a motion for allowance of a $96.8 million administrative claim based on patent infringement. According to the report, Spansion and Tessera agreed that the disputes in bankruptcy court over the claims should be transferred to the district court in California. They will call on the bankruptcy judge to bless the transfer of the proceedings to California at a July 28 hearing. About Spansion Inc. Spansion Inc. (NASDAQ: SPSN) -- http://www.spansion.com/-- is a Flash memory solutions provider, dedicated to enabling, storing and protecting digital content in wireless, automotive, networking and consumer electronics applications. Spansion, previously a joint venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to designing, developing, manufacturing, marketing, selling and licensing Flash memory solutions. Spansion Inc. and its affiliates filed voluntary petitions for Chapter 11 on March 1, 2009 (Bankr. D. Del. Lead Case No. 09-10690). On February 9, 2009, Spansion's Japanese subsidiary, Spansion Japan Ltd., voluntarily entered into a proceeding under the Corporate Reorganization Law (Kaisha Kosei Ho) of Japan to obtain protection from its creditors as part of the company's restructuring efforts. None of Spansion's subsidiaries in countries other than the United States and Japan are included in the U.S. or Japan filings. Michael S. Lurey, Esq., Gregory O. Lunt, Esq., and Kimberly A. Posin, Esq., at Latham & Watkins LLP, have been tapped as bankruptcy counsel. Michael R. Lastowski, Esq., at Duane Morris LLP, is the Delaware counsel. Epiq Bankruptcy Solutions LLC, is the claims agent. As of Sept. 30, 2008, Spansion had total assets of US$3,840,000,000, and total debts of US$2,398,000,000. Spansion Japan Ltd. filed a Chapter 15 petition on April 30, 2009 (Bankr. D. Del. Case No. 09-11480). The Chapter 15 Petitioner's counsel is Gregory Alan Taylor, Esq., at Ashby & Geddes. It said that Spansion Japan had US$10 million to US$50 million in assets and US$50 million to US$100 million in debts. Judge Kevin J. Carey confirmed Spansion's Plan of Reorganization on April 16, 2010. A group of holders of Convertible notes and equity in Spansion presented an alternative plan, which would pay senior noteholders in full and has funding commitment of in excess of $425 million, but the plan was rejected. The Plan was implemented May 10, 2010. SPHERIS INC: Schedules August 26 Confirmation Hearing ----------------------------------------------------- Spheris Inc. will present its liquidating Chapter 11 plan at a confirmation hearing on Aug. 26, Bill Rochelle at Bloomberg News reported. Spheris Inc. secured approval from Judge Kevin Gross in Delaware of the disclosure statement for its Chapter 11 liquidation plan on July 13. The disclosure statement says that unsecured creditors and holders of senior subordinated notes can expect a recovery of almost 23%. Bill Rochelle at Bloomberg News reports that should Spheris fail in its effort at eliminating a $21.3 million disputed claim asserted by MedQuist Inc., the return to creditors will be lower, according to the disclosure statement. According to the revised Disclosure Statement, non-priority tax claims and other secured claims have a 100% estimate recovery. General unsecured claims and senior subordinated note claims have a 22.85% estimated recovery. Subordinated claims' estimated recovery is not available, and equity interests have a 0% estimated recovery. About Spheris Inc. Headquartered in Franklin, Tennessee, Spheris Inc. -- http://www.spheris.com/-- is a global provider of clinical documentation technology and services. Spheris Inc., along with five affiliates, filed for Chapter 11 on Feb. 3, 2010 (Bankr. D. Del. Case No. 10-10352). Attorneys at Young Conaway Stargatt & Taylor, LLP, and Willkie Farr & Gallagher LLP represent the Debtors in their Chapter 11 effort. Jefferies & Company serve as financial advisors to the Debtors. Attorneys at Schulte Roth & Zabel LLP and Landis Rath & Cobb LLP serve as counsel to the prepetition and DIP lenders. Garden City Group Inc. is claims and notice agent. The petition says that assets range from $50,000,001 to $100,000,000 while debts range from $100,000,001 to $500,000,000. The estate of Spheris Inc. is now formally named SP Wind Down Inc. after it sold the business in April. CBay Inc.'s MedQuist Inc. purchased the domestic business of Spheris for $98.8 million. SUNESIS PHARMA: Alta BioPharma Holds 9.9% of Common Stock --------------------------------------------------------- Alta BioPharma Partners III, L.P., and its affiliated entities disclosed holding in the aggregate 22,486,903 shares or roughly 9.9% of the common stock of Sunesis Pharmaceuticals, Inc., as of June 30, 2010. As reported by the Troubled Company Reporter on July 12, 2010, Alta Biopharma Partners III LP disclosed in a Form 4 filing with the Securities and Exchange Commission that it acquired shares of both Common Stock and Series A Preferred Stock of Sunesis Pharmaceuticals on June 30, 2010. Alta Biopharma may be deemed to directly hold 15,487,876 common shares. Alta Biopharma also holds certain other shares through Alta Embarcadero BioPharma Partners III, LLC, and Alta BioPharma Partners III GmbH & Co. Beteiligungs KG. Alta Biopharma indirectly holds the Preferred shares through those two affiliated funds. Alta BioPharma Management III, LLC, is the general partner of Alta BioPharma Partners III and the managing limited partner of Alta BioPharma Partners III GmbH & Co. Beteiligungs KG. Jean Deleage, Farah Champsi, Edward Penhoet, and Edward Hurwitz are directors of ABMIII and managers of Alta Embarcadero BioPharma Partners III, LLC. About Sunesis Pharmaceuticals South San Francisco, Calif.-based Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS) -- http://www.sunesis.com/-- is a biopharmaceutical company focused on the development and commercialization of new oncology therapeutics for the treatment of hematologic and solid tumor cancers. The Company's balance sheet as of March 31, 2010, showed $15,329,511 in assets, $3,541,245 of liabilities, and $11,788,266 of stockholders' equity. * * * As reported in the Troubled Company Reporter on April 6, 2010, Ernst & Young, LLP, in Palo Alto, Calif., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for 2009. The independent auditors noted that of the Company's recurring losses from operations. SUNESIS PHARMA: Registers 175,847,950 Shares -------------------------------------------- Sunesis Pharmaceuticals, Inc., on Monday filed with the Securities and Exchange Commission a FORM S-3 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933. The accompanying prospectus relates to the disposition from time to time of up to 175,847,950 shares of Sunesis common stock, including 27,552,790 shares of Sunesis common stock issuable upon the exercise of outstanding warrants, which are held by certain selling stockholders. The selling stockholders acquired the common stock from Sunesis in separate closings of a private placement on April 3, 2009, October 30, 2009 and June 30, 2010, respectively. The selling stockholders may resell or dispose of the shares of Sunesis common stock, or interests therein, at fixed prices, at prevailing market prices at the time of sale or at prices negotiated with purchasers, to or through underwriters, broker- dealers, agents, or through any other means. The selling stockholders will bear all commissions and discounts, if any, attributable to the sale or disposition of the shares, or interests therein. Sunesis will bear all costs, expenses and fees in connection with the registration of the shares. Sunesis will not receive any of the proceeds from the sale of these shares of Sunesis common stock by the selling stockholders. Sunesis will, however, receive the net proceeds of any warrants exercised for cash. Sunesis meanwhile is delaying the effective date of the Registration Statement. Sunesis common stock is listed on The NASDAQ Capital Market under the symbol "SNSS". The last reported sale price of the common stock on July 16, 2010, was $0.49 per share. A full-text copy of the registration statement is available at no charge at http://ResearchArchives.com/t/s?66b2 About Sunesis Pharmaceuticals South San Francisco, Calif.-based Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS) -- http://www.sunesis.com/-- is a biopharmaceutical company focused on the development and commercialization of new oncology therapeutics for the treatment of hematologic and solid tumor cancers. The Company's balance sheet as of March 31, 2010, showed $15,329,511 in assets, $3,541,245 of liabilities, and $11,788,266 of stockholders' equity. * * * As reported in the Troubled Company Reporter on April 6, 2010, Ernst & Young, LLP, in Palo Alto, Calif., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for 2009. The independent auditors noted that of the Company's recurring losses from operations. TAYLOR BEAN: FDIC Backs Exclusivity Extension Bid ------------------------------------------------- Bankruptcy Law360 reports that the Federal Deposit Insurance Corp. has thrown its support behind Taylor Bean & Whitaker Mortgage Corp.'s bid to extend its exclusivity period, saying more time is needed to finalize a settlement with the company related to the reconciliation of the cash and assets of Colonial BancGroup Inc. Taylor, Bean & Whitaker Mortgage Corp. is a 27-year-old company that grew from a small Ocala-based mortgage broker to become one of the largest mortgage bankers in the United States. In 2009, Taylor Bean was the country's third largest direct-endorsement lender of FHA-insured loans of the largest wholesale mortgage lenders and issuer of mortgage backed securities. It also managed a combined mortgage servicing portfolio of approximately $80 billion. The company employed more that 2,000 people in offices located throughout the United States. Taylor Bean filed for Chapter 11 on August 24 (Bankr. M.D. Fla. Case No. 09-07047). Taylor Bean filed under Chapter 11 three weeks after federal investigators searched its offices. The day following the search, the Federal Housing Administration, Ginnie Mae and Freddie Mac prohibited the company from issuing new mortgages and terminated servicing rights. Taylor Bean has more than $1 billion of both assets and liabilities, and between 1,000 and 5,000 creditors, according to the bankruptcy petition. TELESAT CANADA: Moody's Affirms 'B2' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service affirmed Telesat Canada's B2 corporate family and probability of default ratings along with ratings for individual instruments. As well, the company's speculative grade liquidity rating remains unchanged at SGL-3 (adequate liquidity) and the ratings outlook remains stable. The B2 CFR/PDR reflects Moody's view that the company's strong underlying business fundamentals (which include a substantial $5.8 billion contracted revenue backlog that provides good earnings visibility, low operating costs that result in strong +70% EBITDA margins) have been substantially exploited by way of a significant debt load and accompanying interest burden. Given recent and pending satellite launches and the proportion of the Revenue/EBITDA stream that is cash (excluding Deferred Revenue), there is the potential of leverage and coverage improving, and there is good potential of debt reduction. However, since management has yet to clearly articulate plans for excess cash flow, it is uncertain whether the company will reduce debt, invest in further growth, or -- on its shareholders' instructions -- approach its lenders so that some cash may be returned to equity holders. There is also the potential that cash flow needs to be reinvested to maintain the revenue stream by replacing "maturing" satellites. The rating is unlikely to progress until there is clarity concerning the company's plans and ability to be cash flow self-sustaining. This is complicated given the pending need to refinance 2012 and 2014 debt maturities, as there is the potential of the related interest carry increasing as treasury rates and risk premia increase subsequent to the recession and financial crisis. The rating is also influenced by the company's liquidity profile. Telesat has a C$153 million revolving term loan facility (RTL) that is fully un-drawn. The company also has a C$230 million cash balance (at March 31, 2010) and is generating C$70-to-C$80 million per quarter in pre-capital expenditure cash flow. Consequently, even with significant capital spending, Moody's expect the company has the resources to meet required disbursements. However, applicable financial covenants become dramatically more stringent over the next several quarters and, depending on how rapidly revenue and EBITDA expand as new satellites are launched and commissioned, the compliance cushion may be somewhat tight. This may limit effective availability under the RTL. With a full year's contribution from Nimiq 5 and Telestar 11N, both of which were launched in 2009, and with Telestar 14R and Nimiq 6 scheduled to be launched, respectively, in 2011 and 2012, Moody's expect this matter will sort itself out and do not anticipate financial covenant compliance issues. However, until the compliance cushion significantly expands, the SGL rating will remain no better than SGL-3. Ratings and Outlook Affirmations: Issuer: Telesat Canada * Corporate Family Rating: Unchanged at B2 * Probability of Default Rating: Unchanged at B2 * Senior Secured Credit Facility: Unchanged at B1 (LGD3, 33%) * Senior Unsecured Regular Bond/Debenture: Unchanged at Caa1 (LGD6, 83%) * Senior Subordinated Bond/Debenture: Unchanged at Caa1 (LGD6, 94%) * Speculative Grade Liquidity Rating: Unchanged at SGL-3 * Outlook: Unchanged at Stable Moody's most recent rating action related to Telesat was taken on February 25, 2009, at which time Moody's affirmed the company's B2 CFR/PDR. Headquartered in Ottawa, Ontario, Canada, Canada, is the world's fourth largest provider of fixed satellite services and one of three companies operating on a global basis. The company has a fleet of twelve in-orbit satellites and two additional satellites under construction, and manages the operations of 13 additional satellites for third parties. Telesat is an indirect, wholly- owned subsidiary of Telesat Holdings Inc. Other than its ownership interest in Telesat, Telesat Holdings has no other material assets or operations. With that and since Telesat Holdings guarantees Telesat Canada's rated debts, Moody's rely on Telesat Holdings financial statements in rating Telesat Canada. TEXAS RANGERS: Secured Lenders Ask for Reconsideration ------------------------------------------------------ Bill Rochelle at Bloomberg News reports that secured lenders of the Texas Rangers baseball club filed a motion asking for reconsideration of the order approving an Aug. 4 auction where a group led by current team President Nolan Ryan and sports lawyer Chuck Greenberg would continue to be the stalking horse bidder. The lenders, according to the report, contend that they were ambushed at a hearing on July 13 when they thought the subject was a motion by the purchaser to compel the team to move forward with a contract signed just before the bankruptcy filing on May 24. Instead, the lenders say they were met in court by the judge who on his own was proposing rules governing an auction to take place Aug. 4. The lenders say they had no chance to digest the proposed auction rules. They argue the rules "serve only the purpose of overlaying the fa‡ade of an auction process over a case that has been fundamentally flawed from the beginning." Under the new sale procedures approved by the Bankruptcy Court, the Debtor will hold an auction on Aug. 4, if competing bids are submitted by Aug. 3. The Ryan-Greenberg originally signed prepetition a contract to purchase the club for about $304 million cash. The group has now agreed to modify the original contract by raising the price to $306.7 million. In addition, they sweetened the offer by lowering an escrow holdback from $30 million to $10 million and by not forcing other purchasers to take over the lease for the team airplane. If the Ryan-Greenberg group is outbid, they would receive a $15 million breakup fee. In return for the fee, the stalking-horse agreed to waive exclusivity provisions in the May contract. Before the auction, other bidders must be approved by Major League Baseball. About Texas Rangers Texas Rangers Baseball Partners owns and operates the Texas Rangers Major League Baseball Club, a professional baseball club in the Dallas/Fort Worth Metroplex. TRBP is a Texas general partnership, in which subsidiaries of HSG Sports Group LLC own a 100% stake. Controlled by Thomas O. Hicks, HSG also indirectly wholly-owns Dallas Stars, L.P., which owns and operates the Dallas Stars National Hockey League franchise. The Texas Rangers have had five owners since the club moved to Arlington in 1972. Mr. Hicks became the fifth owner in the history of the Texas Rangers on June 16, 1998. In its petition, Texas Rangers Baseball Partners said it had both assets and debt of less than $500 million. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtor. Forshey & Prostok LLP serves as conflicts counsel. Parella Weinberg Partners LP serves as financial advisor. Lenders to the Texas Rangers sought to force the baseball team's equity owners -- Rangers Equity Holdings, L.P. and Rangers Equity Holdings GP, LLC -- into bankruptcy court protection (Bankr. N.D. Tex. Case No. 10-43624 and 10-43625). The lenders, a group that includes investment funds Monarch Alternative Capital and Kingsland Capital Management, filed an involuntary bankruptcy petition on May 28 against the two companies. The two companies were not included in the May 24 Chapter 11 filing of TRBP. THORNBURG MORTGAGE: U.S. Trustee Sues Orrick for Dishonesty ----------------------------------------------------------- U.S. Trustee W. Clarkson McDow, Jr. is suing Orrick Herrington Sutcliffe, claiming that the San Francisco-based law's firm's alleged "dishonesty" in Thornburg Mortgage Inc.'s chapter 11 case has damaged the integrity of the bankruptcy system, American Bankruptcy Institute reports. Based in Santa Fe, New Mexico, Thornburg Mortgage Inc. (NYSE: TMA) -- http://www.thornburgmortgage.com/-- was a single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable rate mortgages. It originated, acquired, and retained investments in adjustable and variable rate mortgage assets. Its ARM assets comprised of purchased ARM assets and ARM loans, including traditional ARM assets and hybrid ARM assets. Thornburg Mortgage, Inc., and its four affiliates filed for Chapter 11 on May 1 (Bankr. D. Md. Lead Case No. 09-17787). Thornburg has changed its name to TMST, Inc. Judge Duncan W. Keir is handling the case. David E. Rice, Esq., at Venable LLP, in Baltimore, Maryland, has been tapped as counsel. Orrick, Herrington & Sutcliffe LLP is employed as special counsel. Jim Murray, and David Hilty, at Houlihan Lokey Howard & Zukin Capital, Inc., have been tapped as investment banker and financial advisor. Protiviti Inc. has also been engaged for financial advisory services. KPMG LLP is the tax consultant. Epiq Systems, Inc., is claims and noticing agent. In its bankruptcy petition, Thornburg listed total assets of $24,400,000,000 and total debts of $24,700,000,000, as of January 31, 2009. On October 28, 2009, the Court approved the appointment of Joel I. Sher as the Chapter 11 Trustee for the Company, TMST Acquisition Subsidiary, Inc., TMST Home Loans, Inc. and TMST Hedging Strategies, Inc. TRIBUNE CO: Barclays Sells $150 Mil. in Claims to Oaktree --------------------------------------------------------- American Bankruptcy Institute reports that Barclays Bank plc has sold claims in Tribune Co. worth more than $150 million in face value to Oaktree Capital Management LP. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08- 13141). The Debtors proposed Sidley Austion LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRICO MARINE: Issues Senior Secured Notes Due 2014 -------------------------------------------------- The indenture dated as of October 30, 2009, among Trico Shipping AS, as issuer, the guarantors identified therein and Deutsche Bank National Trust Company, as trustee thereunder, pursuant to which Trico Shipping's 11 7/8% senior secured notes due 2014 were issued, includes monthly financial covenants relating to minimum cash and minimum EBITDA during the forbearance period. Trico Shipping and Trico Supply AS will deliver to the Trustee officer's certificates relating to the covenants no later than the 10th calendar day and the 30th calendar day following the end of each fiscal month, beginning with the month ended June 30, 2010. About Trico Marine Woodlands, Texas-based Trico Marine Services is a provider of support vessels for the offshore oil and natural-gas industry. At March 31, 2010, the Company had total assets of $1,013,628,000 against total liabilities of $985,940,000. Trico Marine has failed to make the $8.0 million interest payment on $202.8 million in aggregate principle amount of its 8.125% secured convertible debentures due 2013. On June 17, 2010, the 30-day grace period permitted under the 8.125% Indenture expired, triggering an Event of Default. The Troubled Company Reporter on June 16, 2010, said Trico Marine has signed a revised loan agreement on June 11 requiring the company to file under Chapter 11 no later than Sept. 8. The agreement with affiliates Tennenbaum Capital Partners LLC provides for converting the existing $25 million revolving credit commitment into a $25 million term loan commitment. Nordea Bank Finland plc, New York Branch, as collateral agent, Obsidian Agency Services, Inc., as administrative agent, also signed the agreement. As reported by the TCR on June 15, 2010, Trico said that it and Evercore Partners are in discussions with various potential lenders and some of the Company's existing debtholders regarding obtaining additional financing in connection with a possible proceeding under Chapter 11 of the Bankruptcy Code. TRONOX INC: Says Anadarko Throwing 'Wrench' into Case ----------------------------------------------------- Bill Rochelle at Bloomberg News reports that Tronox Inc. said in papers filed with the U.S. Bankruptcy Court that Kerr-McGee Corp. and its parent Anadarko Petroleum Corp. are engaged in "a transparent attempt" to "throw a wrench" into the reorganization. According to the report, Tronox was responding to a motion from late June where Kerr-McGee and Anadarko are asking the bankruptcy court to compel assumption of one of the agreements when Tronox was spun off from Kerr-McGee, the former parent. Tronox says that the agreement is at the heart of the lawsuit where it is hoping to recover environmental remediation costs it was given when spun off from Kerr-McGee in March 2006. Tronox says the agreement was among the transactions that can be voided as fraudulent transfers. A hearing on the dispute is set for July 21. About Tronox Inc. Tronox Inc., aka New-Co Chemical, Inc., and 14 other affiliates filed for Chapter 11 protection on January 13, 2009 (Bankr. S.D.N.Y. Case No. 09-10156). The case is before Hon. Allan L. Gropper. Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Colin M. Adams, Esq., at Kirkland & Ellis LLP in New York, represent the Debtors. The Debtors also tapped Togut, Segal & Segal LLP as conflicts counsel; Rothschild Inc. as investment bankers; Alvarez & Marsal North America LLC, as restructuring consultants; and Kurtzman Carson Consultants serves as notice and claims agent. An official committee of unsecured creditors and an official committee of equity security holders have been appointed in the cases. The Creditors Committee has retained Paul, Weiss, Rifkind, Wharton & Garrison LLP as counsel. Until September 30, 2008, Tronox Inc. was publicly traded on the New York Stock Exchange under the symbols TRX and TRX.B. Since then, Tronox Inc. has traded on the Over the Counter Bulletin Board under the symbols TROX.A.PK and TROX.B.PK. As of December 31, 2008, Tronox Inc. had 19,107,367 outstanding shares of class A common stock and 22,889,431 outstanding shares of class B common stock. Bankruptcy Creditors' Service, Inc., publishes Tronox Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Tronox Inc. and its 14 affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRUMP ENTERTAINMENT: Successfully Emerges From Chapter 11 --------------------------------------------------------- Trump Entertainment Resorts, Inc., together with certain of its subsidiaries, has successfully emerged from a Chapter 11 reorganization process. Upon emergence, Trump Entertainment Resorts has significant new financial strength and resources, and a shared vision for stability and growth under a new ownership structure. Pursuant to the confirmed reorganization plan, $225 million of new equity has been injected into the Company, including $125 million intended for the reduction of pre-petition debt. Through the reorganization process, the Company has eliminated approximately $1.3 billion in debt. Additionally, the Company will be able to retain the Trump brand for Atlantic City operations. Donald J. Trump and his daughter, Ivanka Trump, supported the Company's confirmed plan of reorganization. Earlier this week, the New Jersey Casino Control Commission granted the Company the required approvals to consummate the approved plan of reorganization. The Casino Control Commission also approved several petitions of Avenue Capital Group and affiliated companies necessary for the transaction to be completed and for Marc Lasry to assume the position of chairman of the board of the reorganized company. Mr. Lasry is the chairman and chief executive officer of Avenue Capital Group, a global investment firm, which served as the lead bondholder throughout the reorganization process and is now the largest shareholder of the reorganized Company. Mr. Lasry commented, "Trump Entertainment Resorts today begins a period marked by new financial strength. Having just completed the transaction that made the Company's emergence official, I am more excited than ever about the future." Mark Juliano, the chief executive officer of the Company and a member of the newly established board of directors, noted, "Our company is now well-capitalized and possesses a long-term strategy for growth. Our new board of directors and ownership group have made it clear that they are dedicated to the success of the Company over both the short- and long-terms. We are excited about the new chapter that begins today for Trump Entertainment Resorts." Mr. Juliano further thanked the Company's employees for their continued dedication through the reorganization process. "The focus and support of our team in Atlantic City has truly been extraordinary, and I want to thank them for their perseverance. I know now more clearly than ever that our team is second to none, and I look forward to sharing our future successes together." 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. TRUVO USA: Disclosure Statement Hearing Scheduled for August 5 -------------------------------------------------------------- Truvo USA LLC, et al., filed with the U.S. Bankruptcy Court for the Southern District of New York a proposed Plan of Reorganization and an explanatory Disclosure Statement. The Debtors will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. A hearing on the Disclosure Statement is scheduled for August 5. The Plan was negotiated with holders of 80% of the EUR778 million ($1.007 billion) of first-priority senior debt and holders of 15 percent of the second-priority debt. According to the Disclosure Statement, the Plan provides for the restructuring of the Debtors' liabilities to maximize recovery to all stakeholders and to enhance the financial viability of the Reorganized Truvo Group. Under the Plan, the Financial Restructuring provides for, among other things: a) the discharge of claims and liens against the Debtors; b) the implementation of a series of transactions, including the transfer to Newco of Senior Debt Claims against TAC, and the release; and c) the issuance of New Common Stock and Junior Creditor Warrants, and entry into the New Bank Debt and New PIK Debt. Upon the completion of these transactions after the effective date: a) Equityco and PIKco will operate as the holding companies for Holdco. b) Holdco will operate as the holding company for Newco. c) Newco will operate as the holding company for (i) Reorganized Truvo, and (ii) Truvo Belgium and its subsidiaries (all Non-Debtor Subsidiaries). d) Reorganized Truvo will remain in existence to (a) serve as collection agent for the Debtors for the purpose of collecting the Tax Refund, if any, (b) take actions as required under the Plan, and (c) fulfill its mandate as proxy pursuant to the Plan, and thereafter will be liquidated. e) Each of the Debtors (other than TAC) will be liquidated on the Effective Date. Treatment of Claims The senior lenders under the plan are to receive the new equity plus EUR600 million new debt. In return for the EUR595 million on two issues of second-priority notes, the holders are to be given EUR15 million and warrants for 14% of the stock at a EUR150 million price. If the second lien lenders vote against the plan, they are to receive nothing. For the EUR174 million on pay-in- kind third-priority notes, holders will receive warrants for 1 percent of the stock. If the class votes against the plan, they are to receive nothing. The new debt for the senior lenders is to consist of EUR350 million in first-lien debt, EUR100 million in second-lien debt, and EUR150 million in pay-in-kind debt. Under the Plan, the estimated percentage recovery for: -- Classes 1B, 2B, 3B, 4B, 5B Other Secured Claims is 100%. -- Classes 3C, 4C, 5C Senior Debt Claims is 63.8% - 84.1%. -- Classes 2D, 3D, 4D, 5D HY Notes Claims is 2.8% - 4.8%, if the HY Noteholder Classes vote to Accept the Plan; and 0%, if the HY Noteholder Classes does not vote to Accept the Plan. -- Class 2E PIK Loans Claims is 0.0% - 0.5%, if the HY Noteholder Classes and the PIK Lender Class vote to Accept the Plan; and 0%, if HY Noteholder Classes and the PIK Lender Class does not vote to Accept the Plan. -- Classes 1F, 2F, 3F, 4F, 5F General Unsecured Claims is 50% - 100%. -- Classes 1G, 2G, 3G, 4G, 5G Statutory Subordinated Claims will not receive or retain any distribution or property on account of the Allowed Statutory Subordinated Claims. -- Class 1H Holders of Old Equity Interests will not receive or retain any distribution or property on account of the Old Equity Interests. On the effective date, all Old Equity Interests will be cancelled. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/TruvoUSA_DS.pdf The Debtors are represented by: Cleary Gottlieb Steen & Hamilton LLP Thomas J. Moloney, Esq. Sean A. O'Neal, Esq. One Liberty Plaza New York, NY 10006 Tel: (212) 225-2000 Fax: (212) 225-3999 About Truvo USA Wilmington, Delaware-based Truvo USA LLC publishes print and online directories through its operating subsidiaries. The operating subsidiaries have not sought protection under Chapter 11 protection or any other insolvency regime. The Truvo Chapter 11 debtors are owned Truvo Luxembourg S.a.r.l, which is not a debtor in the Chapter 11 proceedings. The Company filed for Chapter 11 bankruptcy protection on July 1, 2010 (Bankr. S.D.N.Y. Case No. 10-13513). Sean A. O'Neal, Esq., and Thomas J. Moloney, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, and Vincent Edward Lazar, Esq., at Jenner & Block LLP, assist the Company in its restructuring effort. The Company listed $500,000,001 to $1 billion in assets and more than $1 billion in liabilities. Jenner & Block LLP and Simpson Thacher & Bartlett LLP are the Company's special counsel. Houlihan Lokey Howard & Zukin (Europe), Limited, is the Company's restructuring and financial advisor. TSG INC: PNC Cash Collateral Hearing Continued Until July 21 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Pennsylvania authorized TSG Incorporated to use the cash collateral of PNC Bank, National Association until August 21, 2010. A continued hearing on the Debtor's use of cash collateral will be held on July 21, at 9:30 a.m. E.T. in Courtroom No. 3, 900 Market Street, Philadelphia, Pennsylvania. As of petition date, the Debtor's indebtedness consists of: -- $2,345,138 under the term loan; -- $1,745,257 under the committed line of credit; -- $845,833 under he capital expenditures line of credit; and -- $98,070 under the SWAP agreement. The Debtor would use the cash collateral to operate its business postpetition. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant PNC a replacement lien on all properties and assets of the Debtor except for the Debtor's interest in the real property located at (a) 1006 19th Street SW, Hickory, North Carolina; (b) 5275 Wolfe Road, Hickory, North Carolina; and (c) 1703 Pineview Street, Conover, North Carolina. As additional adequate protection, the Debtor will make periodic cash payments to PNC. Pursuant to the order, the Debtor may not use, sell, or otherwise transfer any of its assets outside the ordinary course of business, without the written consent of PNC. The Debtor's cash collateral use is also subject to: -- filing of a Plan of Reorganization providing for the full payment of PNC's claim by July 21; -- filing a motion to enter into a transaction having a value to the estate of $1,000,000 or more and where a significant portion of the proceeds will be used to pay down the prepetition indebtedness; or -- payment of first principal paydown amounting to $30,000 on July 22. About TSG Incorporated 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. UNIGENE LABORATORIES: Directors Get Shares as Fees Payment ---------------------------------------------------------- Unigene Laboratories Inc. director Peter Slusser disclosed acquiring 11,842 company shares on July 6, 2010, raising his stake to 57,315 shares. The shares were granted on July 6 as payment of director fees in the amount of $9,000. Shares vested immediately. Unigene director Eiref Zvi disclosed acquiring 15,789 company shares on July 6, 2010, raising his stake to 104,501 shares. The shares were granted on July 6 as payment of director fees in the amount of $12,000. Shares vested immediately. Unigene director Marvin Miller disclosed acquiring 15,789 company shares on July 6, 2010, raising his stake to 88,087 shares. The shares were granted on July 6 as payment of director fees in the amount of $12,000. Shares vested immediately. Unigene director Bruce S. Morra disclosed acquiring 11,842 company shares on July 6, 2010, raising his stake to 156,315 shares. The shares were granted on July 6 as payment of director fees in the amount of $9,000. Shares vested immediately. Unigene director Allen Bloom disclosed acquiring 23,684 company shares on July 6, 2010, raising his stake to 121,630 shares. The shares were granted on July 6 as payment of director fees in the amount of $18,000. Shares vested immediately. About Unigene Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/ -- is a biopharmaceutical company focusing on the oral and nasal delivery of large-market peptide drugs. Going Concern Doubt Grant Thornton LLP of New York expressed substantial doubt against Unigene Laboratories Inc.'s ability as a going concern. The firm noted that the Company has incurred a net loss of $13,400,000 during the year ended December 31, 2009 and has an accumulated deficit of approximately $143,000,000 as of December 31, 2009. As of that date, the Company's current liabilities exceeded its current assets by $1,251,000 and its total liabilities exceeded total assets by $30,442,000. The Company's balance sheet for December 31, 2009, showed $23,954,941 and $54,396,602 total liabilities for a $30,441,661 total stockholders' deficit. UNIGENE LABORATORIES: Registers 80,760,650 for Resale ----------------------------------------------------- Unigene Laboratories, Inc., filed with the Securities and Exchange Commission a prospectus relating to the sale of up to 80,760,650 shares of Unigene common stock, par value $.01 per share, by certain stockholders. Unigene said 72,114,836 of the shares will be issuable upon the conversion of senior secured convertible notes held by the selling stockholder and the balance of which are currently held of record by the selling stockholder. The prices at which the selling stockholder may sell the shares will be determined by the prevailing market price for the shares or in negotiated transactions. The Company will not receive any proceeds from the sale of the shares by the selling stockholder. All costs, expenses and fees in connection with the registration of these shares will be borne by the Company. Pursuant to an Amended and Restated Registration Rights Agreement, dated March 17, 2010, between the Company and the selling stockholder, the Company agreed to file the registration statement of which this prospectus forms a part to cover the resale by the selling stockholder of the shares of the Company's common stock registered, including those shares issuable from time to time upon the conversion of senior secured convertible notes issued by the Company to the selling stockholder pursuant to an Amended and Restated Financing Agreement, dated March 16, 2010, by and among Unigene and Victory Park Management, LLC, as administrative agent and collateral agent, and the selling stockholder. A full-text copy of the prospectus is available at no charge at http://ResearchArchives.com/t/s?66b0 About Unigene Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/ -- is a biopharmaceutical company focusing on the oral and nasal delivery of large-market peptide drugs. Going Concern Doubt Grant Thornton LLP of New York expressed substantial doubt against Unigene Laboratories Inc.'s ability as a going concern. The firm noted that the Company has incurred a net loss of $13,400,000 during the year ended December 31, 2009 and has an accumulated deficit of approximately $143,000,000 as of December 31, 2009. As of that date, the Company's current liabilities exceeded its current assets by $1,251,000 and its total liabilities exceeded total assets by $30,442,000. The Company's balance sheet for December 31, 2009, showed $23,954,941 and $54,396,602 total liabilities for a $30,441,661 total stockholders' deficit. UNITED ENERGY: Jewett Schwartz Raises Going Concern Doubt ---------------------------------------------------------- United Energy Corp. filed on July 14, 2010, its annual report on Form 10-K for the fiscal year ended March 31, 2010. Jewett, Schwartz, Wolfe & Associates, in Hollywood, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has operating and liquidity concerns, and has incurred net losses of $23,546,072 as of March 31, 2010. The Company reported a net loss of $1,464,892 on $1,771,720 of revenue for fiscal 2010, compared with a net loss of $1,338,237 on $1,206,231 of revenue for fiscal 2009. The Company's balance sheet at March 31, 2010, showed $1,120,163 in assets, $1,081,654 of liabilities, and $38,509 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66a2 United Energy Corp. -- http://www.unitedenergycorp.net/-- develops and distributes environmentally friendly specialty chemical products with applications in several industries and markets. Through its wholly owned subsidiary, Green Globe Industries, Inc., the Company provides the U.S. military with a variety of solvents, paint strippers and cleaners under its trade name "Qualchem." The Company is headquartered in Secaucus, New Jersey. U.S. CONCRETE: Has Until July 23 to File Schedules and Statements ----------------------------------------------------------------- The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware extended U.S. Concrete, Inc., et al.'s time to file their (i) schedules of assets and liabilities; (ii) statement of financial affairs; (iii) schedules of current income and expenditures; and (iv) statements of executory contracts and unexpired leases until July 23, 2010. About U.S. Concrete Houston, Tex.-based U.S. Concrete, Inc., aka RMX Industries, Inc., is a major producer of ready-mixed concrete, precast concrete products and concrete-related products in select markets in the United States. The Company filed for Chapter 11 bankruptcy protection on April 29, 2010 (Bankr. D. Del. Case No. 10-11407). Patrick J. Nash Jr., Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis LLP, assist the Company in its restructuring effort as bankruptcy counsel. James E. O'Neill, Esq., Laura Davis Jones, Esq., and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, is the Company's co-counsel. Epiq Bankruptcy Solutions is the Company's claims agent. According to the schedules, the Company says that assets total $389,160,000 while debts total $399,351,000. The Debtor's affiliates, Alberta Investments, Inc., et al., filed separate Chapter 11 petitions on April 29, 2010. USG CORP: Judith Sprieser to Resign as Director ----------------------------------------------- Judith A. Sprieser, a director of USG Corporation, advised the Chairman of the Board of the Registrant that she intends to resign as a director at or before the company's annual meeting of stockholders scheduled to be held in May 2011. USG Corporation, headquartered in Chicago, Illinois, is a leading producer and distributor of building materials in the Unites States, Canada and Mexico. The company manufactures and markets gypsum wallboard and operates a specialty distribution business that sells to professional contractors. It also manufactures ceiling tiles and ceiling grids used primarily in commercial applications. Revenues for the last 12 months through March 31, 2010, totaled approximately $3.1 billion. * * * As reported by the Troubled Company Reporter on June 28, 2010, Moody's Investors Service downgraded USG Corporation's Corporate Family Rating and Probability of Default Rating to Caa1 from B3. In a related rating action Moody's downgraded the guaranteed senior unsecured notes due 2014 to B2 from B1 and the other senior unsecured debt to Caa2 from Caa1. The Speculative Grade Liquidity rating remains SIGIL-3. The outlook is stable. The downgrades result from weaker than previously anticipated operating performance. Moody's believes that potential demand increases for wallboard from North American new home construction and repair and remodeling will not be adequate to generate sufficient volumes and operating profits to cover USG's interest expense over the intermediate term. Furthermore, the non- residential construction end market, which accounts for about 30% of USG's revenues, is expected to contract well into 2011. VALLEJO, CALIFORNIA: Tough Budget Puts Police Jobs in Jeopardy -------------------------------------------------------------- American Bankruptcy Institute that as Vallejo, Calif., works through its third year of bankruptcy, city officials are giving local police a blunt choice: Forgo a raise or the city will lay off officers to pay for others' raises. Vallejo on May 23, 2008, filed a petition for protection under the provisions of chapter 9 of the U. S. Bankruptcy Code. On June 17, 2008, the City filed a motion to reject its collective bargaining agreements with each of its four labor groups: Vallejo Police Officers Association (VPOA); International Brotherhood of Electrical Workers (IBEW); Confidential Administrative, Managerial and Professional Association (CAMP), and IAFF. Prior to the hearing for the consideration of the rejection of the agreements, the City reached supplemental agreements with VPOA and CAMP. On August 27, 2009, the City and IAFF signed a stipulation that allowed the City to reject the IAFF agreement that would have run through June 2010. On September 1, 2009, the Bankruptcy Court granted the City's motion to reject the IBEW agreement. The City and IAFF spent 5 days in mediation and commenced binding arbitration hearings in January 2010. Additional hearing dates had been scheduled later this month. During the interim period, the City and IAFF resumed negotiations and reached an agreement on the terms of a new agreement on February 18, 2010. VICTOR SOTO: Case Summary & 18 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Victor Rene Oppenheimer Soto aka Hospital de Animales Perla Del Sur Perla Del Sur 4003 Carlos Cartagena Street Ponce, PR 00717 Bankruptcy Case No.: 10-06287 Chapter 11 Petition Date: July 14, 2010 Court: United States Bankruptcy Court District of Puerto Rico (Ponce) Debtor's Counsel: Rosalba Fourquet Lopez, Esq. 1440 Salud St., Suite 1 A Ponce, PR 00730 Tel: (787) 842-3382 Fax: (787) 842-3331 E-mail: rfourquet@prtc.net Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 18 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb10-06287.pdf The petition was signed by the Debtor. VISTEON CORP: Considering Stock Sale to Unsecured Creditors ----------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Visteon Corp. prevailed over a group of dissident unsecured creditors and was given an extension until Oct. 15 of the exclusive right to propose a Chapter 11 plan. A company lawyer said in court July 15 that talks are being conducted about giving unsecured creditors the right to buy $15.75 million of new stock. Visteon has a confirmation hearing for approval of its reorganization plan scheduled to begin Sept. 28. In addition to shareholders and some creditors who are opposed, a group of trade suppliers say they have enough "no" votes to block approval by the unsecured creditor class. About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The Company has corporate offices in Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. The Company has assets of US$4,561,000,000 and debts of US$5,311,000,000 as of March 31, 2009. Visteon Corporation and 30 of its affiliates filed for Chapter 11 protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786 through 09-11818). Judge Christopher S. Sontchi oversees the Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, represent the Debtors in their restructuring efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' investment banker and financial advisor is Rothschild Inc. The Debtors' notice, claims, and solicitation agent is Kurtzman Carson Consultants LLC. The Debtors' restructuring advisor is Alvarez & Marsal North America, LLC. Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Visteon Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) WHITE ENERGY: Wins Confirmation of Reorganization Plan ------------------------------------------------------ A judge has signed off on White Energy Inc.'s third amended plan of reorganization, paving the way for the bankrupt ethanol maker to emerge from Chapter 11 restructuring, Bankruptcy Law360 reports. Law360 says Judge Christopher C. Sontchi approved the reorganization plan in the U.S. Bankruptcy Court for the District of Delaware on Friday. The company filed its third amended plan Tuesday. Headquartered in Dallas, Texas, White Energy, Inc. -- http://www.white-energy.com/-- owns three ethanol plants. White Energy's plants have a combined capacity of producing 240 million gallons of ethanol a year, making it one of the 10 largest ethanol producers in the U.S. and the second-largest gluten maker. Two plants are in Texas with the third in Kansas. White spent $323 million building the plants in Texas. The Company and its debtor-affiliates filed for Chapter 11 on May 7, 2009 (Bankr. D. Del. Lead Case No. 09-11601). Michael R. Lastowski, Esq., at Duane Morris LLP, represents the Debtors in their restructuring efforts. The Debtors tapped The Garden City Group Inc. as claims agent. On the petition date, White Energy disclosed assets and debts ranging from $100 million to $500 million. WINALTA INC: Gets 2nd CCAA Protection Extension Until August 6 -------------------------------------------------------------- Winalta Inc. disclosed that the Court of Queen's Bench of Alberta, Judicial Centre of Edmonton has granted an extension, until August 6, 2010, of the initial Order granted on April 26, 2010 pursuant to which Winalta was granted creditor protection under the Companies' Creditors Arrangement Act. The extension was supported by Deloitte & Touche, Inc., the Court-appointed Monitor of Winalta's CCAA process and was not objected to by counsel to Winalta's secured creditor, HSBC Bank of Canada. The Court has approved the sale of 29 homes and lots plus 3 vacant lots in Sylvan Lake, Alberta. As a result of this sale, Winalta will receive $3,825,000. The completion of this transaction is expected to occur on July 6, 2010. The Court has also approved the sale of 118 acres of residential property in Estevan, Saskatchewan. As a result of this sale, Winalta will receive $1,600,000. The completion of this transaction is expected to occur on July 30, 2010. The Court has additionally granted Winalta an Order relieving it of its obligation to hold an annual meeting of its shareholders within the time prescribed by the Business Corporations Act (Alberta) until such time as the Court orders the annual meeting of Winalta's shareholders to be called. About Winalta Inc Winalta Inc. is an integrated company with three main operating divisions, Homes, Industrial, and Manufacturing. The Homes Division sells CSA approved homes via retail centers, communities and supply arrangements. The Oilfield Division leases portable industrial accommodations and catering services to the energy sector. WORLDGATE COMMUNICATIONS: New CFO Dole Receives Stock Options ------------------------------------------------------------- James G. Dole, WorldGate Communications, Inc.'s CFO, Treasurer and SVP-Finance, disclosed receiving on July 13, 2010, options to buy up to 1,500,000 shares, according to this vesting schedule -- 25% on each of July 13, 2011, July 13, 2012, July 13, 2013 and July 13, 2014. Mr. Dole was appointed as the Company's CFO, Treasurer and Senior Vice President-Finance effective as of July 13, 2010, replacing Joel Boyarski. Trevose, Pa.-based Worldgate Communications, Inc., is a provider of digital voice and video phone services and next generation video phones. The Company designs and develops digital video phones featuring real-time, two-way video. It also provides a turn-key digital voice and video communication services platform supplying complete back-end support services. * * * The Company's balance sheet at March 31, 2010, showed $6,252,000 in assets and $7,275,000 of liabilities, for a stockholders' deficit of $1,023,000. * House Bill Would Limit a Bankrupt BP's Ability to Sell Assets --------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that the House of Representatives passed an amendment to the U.S. Bankruptcy Code on July 1 that would limit the ability of BP Plc to sell property without assuring that claims arising from the oil spill are paid in full. The amendment would apply to BP were it to file bankruptcy in the U.K. or the U.S. If adopted in the Senate and signed by the president, H.R. 5503 would change bankruptcy law by preventing a company from selling "significant property" unless creditors with personal injury or property damage claims from an oil spill are being paid in full or two-thirds of creditors with oil spill claims consent to the sale. Similarly, a company couldn't sell property under a Chapter 11 plan unless two-thirds in amount of oil spill claims vote in favor. The bill would preclude BP from using the so-called cramdown process to confirm a plan and sell substantial property over a "no" vote from creditors in the oil spill class. According to Mr. Rochelle, if an involuntary bankruptcy petition were filed against BP or subsidiaries, the bill likewise would prohibit selling substantial property absent the same protections for spill creditors. Mr. Rochelle continues that the bill as adopted in the House deleted provisions originally proposed by House Judiciary Committee Chairman John Conyers Jr. that would have precluded BP's use of Chapter 15 of the Bankruptcy Code. With the provisions deleted, if BP or subsidiaries were file their principal bankruptcies in the U.K., Chapter 15 would allow the U.K. court to decide how creditors should be paid and whether their claims are valid. The bill as passed in the House nonetheless appears to preclude BP from selling property in the U.S. under Chapter 15 unless oil spill creditors consent or are paid in full. * S&P's Tally of Year's Corporate Defaults Now at 44 ---------------------------------------------------- The year-to-date 2010 tally of global corporate defaults remains at 44 after no issuers defaulted last week, said an article published by Standard & Poor's, titled "Global Corporate Default Update (July 9 - 15, 2010) (Premium)." By region, the current year-to-date default tallies are 32 in the U.S., two in Europe, four in the emerging markets, and six in the other developed region (Australia, Canada, Japan, and New Zealand). So far this year, distressed exchanges account for 14 defaults, missed interest or principal payments are responsible for 13, Chapter 11 filings account for 11, regulatory directives and receiverships account for one each, and the remaining four defaulted issuers are confidential. Of the global corporate defaulters in 2010, 41% of issues with available recovery ratings had recovery ratings of '6' (indicating our expectation for negligible recovery of 0%-10%), 13% of the issues had recovery ratings of '5' (modest recovery prospects of 10%-30%), 8% had recovery ratings of '4' (average recovery prospects of 30%-50%), and 21% had recovery ratings of '3' (meaningful recovery prospects of 50%-70%). And for the remaining two rating categories, 15% of the issues had recovery ratings of '2' (substantial recovery prospects of 70%-90%) and 3% had recovery ratings of '1' (very high recovery prospects of 90%- 100%). * Six Takeovers Bring Year's Bank Failures to 96 ------------------------------------------------ Six U.S. banks were taken over by regulators on July 16, bringing total bank failures for the year to 96. The failures will cost the Federal Deposit Insurance Corp. a combined $334.8 million. To protect depositors, the FDIC entered into purchase and assumption agreements with NAFH National Bank, Miami, Florida, a newly-chartered bank subsidiary of North American Financial Holdings, Inc., Charlotte, North Carolina, to assume all the deposits and essentially all the assets of the three failed institutions: -- Metro Bank of Dade County, Miami, Florida; -- Turnberry Bank, Aventura, Florida; and -- First National Bank of the South, Spartanburg, South Carolina. According to Bloomberg News, North American Financial Holdings was formed and is run by the former chief of Bank of America's investment banking unit. North American, headed by Gene Taylor and backed by other longtime Bank of America executives, has raised $900 million from investors to buy banking assets. Bloomberg notes that the North American is only the second privately-backed firm this year to be granted permission by the F.D.I.C. to purchase failed banks. Through June, the F.D.I.C. had awarded only three of 86 failed banks to private investors, with all three taken over by privately-backed Premier American Bank. As to the three other banks closed last Friday -- Commercial Bank, Alma, Michigan, is assuming all of the deposits of Mainstreet Savings Bank, FSB. CenterState Bank of Florida, National Association, Winter Haven, Florida, is taking over Olde Cypress Community Bank. Bank of the Ozarks, Little Rock, Arkansas, is assuming all of the deposits of Woodlands Bank. In accordance with Federal law, allowed claims against failed financial institutions will be paid, after administrative expenses, in this order of priority: 1. Depositors 2. General Unsecured Creditors 3. Subordinated Debt 4. Stockholders 2010 Failed Banks List The FDIC was appointed as receiver for the closed banks. To protect the depositors, the FDIC entered into a purchase and assumption agreement with various banks that agreed to assume the deposits of most of the closed banks. The FDIC also entered into loss-share transactions on assets bought by the banks. For this year, the failed banks are: Loss-Share Transaction Party FDIC Cost Assets of Bank That Assumed to Insurance Closed Bank Deposits & Bought Fund Closed Bank (millions) Certain Assets (millions) ----------- ---------- -------------- ----------- Turnberry Bank $263.9 NAFH National $34.4 First National Bank $682.0 NAFH National $74.9 Mainstreet Savings $97.4 Commercial Bank $11.4 Woodlands Bank $376.2 Bank of the Ozarks $115.0 Metro Bank of Dade $442.3 NAFH National $67.6 Olde Cypress Community $168.7 CenterState Bank $31.5 USA Bank, Port Chester $193.3 New Century Bank $61.7 Bay National Bank $282.2 Bay Bank, FSB $17.4 Ideal Federal Savings $6.3 -- None -- $2.1 Home National Bank $644.5 RCB Bank, Claremore $78.7 First National $252.5 The Savannah Bank $68.9 High Desert $80.3 First American $20.9 Peninsula Bank $644.3 Premier American $194.8 Nevada Security Bank $480.3 Umpqua Bank $80.9 Washington First $520.9 East West Bank $158.4 TierOne Bank $2,800.0 Great Western Bank $297.8 Arcola Homestead $17.0 -- None -- $3.2 First National Bank $60.4 Jefferson Bank $12.6 Sun West Bank $360.7 City National Bank $96.7 Granite Community $102.9 Tri Counties Bank $17.3 Bank of Fla- Southeast $595.3 EverBank $71.4 Bank of Fla- Southwest $559.9 EverBank $91.3 Bank of Fla- Tampa Bay $245.2 EverBank $40.3 Pinehurst Bank $61.2 Coulee Bank $6.0 Southwest Community $96.6 Simmons First Nat'l $29.0 New Liberty Bank $109.1 Bank of Ann Arbor $25.0 Satilla Community Bank $135.7 Ameris Bank $31.3 Midwest Bank & Trust $3,170.0 Firstmerit Bank $216.4 1st Pacific Bank $335.8 City National Bank $87.7 Access Bank $32.0 PrinsBank, Prinsburg $5.5 Towne Bank of Ariz $120.2 Commerce Bank $41.8 The Bank of Bonifay $242.9 First Federal Bank $78.7 Frontier Bank $3,500.0 Union Bank, NA $1,370.0 BC National Banks $67.2 Community First $11.4 Champion Bank $187.3 BankLiberty $52.7 CF Bancorp $1,650.0 First Michigan Bank $615.3 Westernbank PR $11,940.0 Banco Popular de PR $3,310.0 R-G Premier Bank $5,920.0 Scotiabank de PR $1,230.0 Eurobank, SJ, PR $2,560.0 Oriental Bank & Trust $743.9 Lincoln Park Savings $199.9 Northbrook Bank $48.4 Peotone Bank $130.2 First Midwest $31.7 Wheatland Bank $437.2 Wheaton Bank $133.0 New Century Bank $485.6 MB Financial $125.3 Citizens Bank&Trust $77.3 Republic Bank $20.9 Broadway Bank $1,200.0 MB Financial $394.3 Amcore Bank $3,800.0 Harris $220.3 Lakeside Community $53.0 People's United $11.2 Innovative Bank $268.9 Center Bank $37.8 City Bank $1,130.0 Whidbey Island $323.4 Butler Bank $233.2 People's United $22.9 AmericanFirst Bank $90.5 TD Bank, N.A. $10.5 First Federal $393.3 TD Bank, N.A. $6.0 Riverside National $3,420.0 TD Bank, N.A. $491.8 Tamalpais Bank $628.9 Union Bank, N.A. $81.1 Beach First National $585.1 Bank of NC $130.3 McIntosh Commercial $362.9 CharterBank, West Point $123.3 Desert Hills Bank $496.6 New York Community Bank $106.7 Unity National Bank $292.2 Bank of the Ozarks $67.2 Key West Bank $88.0 Centennial Bank $23.1 State Bank of Aurora $28.2 Northern State Bank $4.2 First Lowndes Bank $137.2 First Citizens Bank $38.3 Bank of Hiawassee $377.8 Citizens South Bank $137.7 Appalachian Community $1,010.0 Community & Southern $419.3 Advanta Bank Corp. $1,600.0 - None - $635.6 Century Security $96.5 Bank of Upson $29.9 American National $70.3 National Bank and Trust $17.1 The Park Avenue Bank $520.1 Valley National Bank $50.7 Statewide Bank $243.2 Home Bank, Lafayette $38.1 Old Southern Bank $315.6 Centennial Bank $94.6 LibertyPointe Bank $209.7 Valley National $24.8 Sun American Bank $535.7 First-Citizens Bank $103.8 Waterfield Bank $155.6 {FDIC Created} $51.0 Centennial Bank $215.2 Zions Bank $96.3 Bank of Illinois $211.7 Heartland Bank $53.7 Rainier Pacific Bank $446.2 Umpqua Bank, Roseburg $95.2 Carson River Community $51.1 Heritage Bank of Nevada $7.9 George Washington $412.8 FirstMerit Bank $141.4 La Jolla Bank $3,600.0 OneWest Bank, FSB $882.3 The La Coste Nat'l $53.9 Community National $3.7 Marco Community Bank $119.6 Omaha Bank $38.1 1st American State $18.2 Community Development $3.1 First National Bank $832.6 Community & Southern $260.4 Florida Community $875.5 Premier American Bank $352.6 American Marine Bank $373.2 Columbia State Bank $58.9 Marshall Bank, N.A. $59.9 United Valley Bank $4.1 First Regional Bank $2,180.0 First-Citizens Bank $825.5 Comm. Bank & Trust $1,210.0 SCBT, N.A. $354.5 Charter Bank $1,200.0 Charter, Albuquerque $201.9 Evergreen Bank $488.5 Umpqua Bank, Roseburg $64.2 Columbia River Bank $1,100.0 Columbia State Bank $172.5 Bank of Leeton $20.1 Sunflower Bank $8.1 Premier American Bank $350.9 Bond Street subsidiary $85.0 Town Community $69.6 Bank First American $17.8 St. Stephen State $24.7 First State Bank $7.2 Barnes Banking $827.8 {DINB Created} $271.3 Horizon Bank $1,400.0 Washington Federal $539.1 In 2009, there were 140 failed banks, compared with just 25 for 2008. A complete list of banks that failed since 2000 is available at: http://www.fdic.gov/bank/individual/failed/banklist.html 775 Banks Now in FDIC's Problem List The number of institutions on the Federal Deposit Insurance Corp.'s "Problem List" rose to 775, up from 702 at the end of 2009. In addition, the total assets of "problem" institutions increased during the quarter from $403 billion to $431 billion. These levels are the highest since June 30, 1993, when the number and assets of "problem" institutions totaled 793 and $467 billion, respectively, but the increase in the number of problem banks was the smallest in four quarters. "Problem" institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. They are rated by the FDIC or Office of the Thrift Supervision as either a "4" or "5", based on a scale of 1 to 5 in ascending order of supervisory concern. The Problem List is not divulged to the public. No advance notice is given to the public when a financial institution is closed. The FDIC says that 41 institutions failed during the first quarter. Chairman Bair noted that the vast majority of "problem" institutions do not fail. According to the FDIC, its Deposit Insurance Fund (DIF) balance improved for the first time in two years. The DIF balance -- the net worth of the fund -- increased slightly to negative $20.7 billion, from negative $20.9 billion (unaudited) on December 31, 2009. The fund balance reflects a $40.7 billion contingent loss reserve that has been set aside to cover estimated losses. Just as banks reserve for loan losses, the FDIC has to set aside reserves for anticipated closings. Combining the fund balance with this contingent loss reserve shows total DIF reserves of $20 billion. Total insured deposits increased by 1.3% ($70.0 billion) during the first quarter. The FDIC's liquid resources -- cash and marketable securities -- remained strong. Liquid resources stood at $63 billion at the end of the first quarter, a decline from $66 billion at year-end 2009. To provide the funds needed to resolve failed institutions in 2010 and beyond without immediately reducing the industry's earnings and capital, the FDIC Board approved a measure on November 12, 2009, that required most insured institutions to prepay approximately three years' worth of deposit insurance premiums -- about $46 billion -- at the end of 2009. Problem Institutions Failed Institutions -------------------- ------------------- Year Number Assets (Mil) Number Assets (Mil) ---- ------ ------------ ------ ------------ 2009 702 $402,800 140 $169,700 2008 252 $159,405 25 $371,945 2007 76 $22,189 3 $2,615 2006 50 $8,265 0 $0 2005 52 $6,607 0 $0 2004 80 $28,250 4 $170 A copy of the FDIC's Quarterly Banking Profile for the quarter ended March 31, 2010, is available for free at: http://bankrupt.com/misc/FDIC_QBP_Q1_10.pdf * Tracy Hope Davis Is Acting U.S. Trustee for Region 2 ------------------------------------------------------ Tracy Hope Davis has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for New York, Connecticut and Vermont (Region 2) effective July 1, 2010, the Executive Office for U.S. Trustees announced. Ms. Davis replaces Diana G. Adams, who is retiring after 17 years of service with the U.S. Trustee Program (USTP), the past three as the U.S. Trustee for Region 2. Ms. Davis, an Assistant U.S. Trustee in New York City, joined the USTP in 1997 as a trial attorney. She has also served as the Acting Assistant U.S. Trustee in Brooklyn. Before joining the USTP, she practiced law in New York City, specializing in bankruptcy. After law school, she served as law clerk to the Honorable Cornelius Blackshear, U.S. Bankruptcy Court, Southern District of New York (retired). Ms. Davis received her law degree from Rutgers Law School in Newark, N.J., and her Bachelor of Arts degree from Wells College in Aurora, N.Y. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 2 is headquartered in New York City with additional offices in Albany, Brooklyn, Buffalo, Central Islip, Rochester and Utica, N.Y., and New Haven, Conn. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Share- Total Working Holders' Assets Capital Equity Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- -------- AUTOZONE INC AZO US 5,452.8 (293.1) (462.0) LORILLARD INC LO US 2,902.0 718.0 (37.0) DUN & BRADSTREET DNB US 1,699.5 (454.1) (778.3) ALLIANCE DATA ADS US 7,919.8 3,352.2 (53.6) MEAD JOHNSON MJN US 1,996.7 319.9 (583.7) NAVISTAR INTL NAV US 8,940.0 1,251.0 (1,198.0) BOARDWALK REAL E BEI-U CN 2,332.1 - (57.6) BOARDWALK REAL E BOWFF US 2,332.1 - (57.6) TAUBMAN CENTERS TCO US 2,572.3 - (494.8) CHOICE HOTELS CHH US 360.6 (6.3) (115.0) COOPER-STANDARD COSHE US 1,686.4 433.1 (304.3) LINEAR TECH CORP LLTC US 1,615.8 742.7 (50.7) WEIGHT WATCHERS WTW US 1,093.0 (408.5) (700.1) SUN COMMUNITIES SUI US 1,173.3 - (118.3) CABLEVISION SYS CVC US 7,364.2 54.8 (6,201.5) IPCS INC IPCS US 559.2 72.1 (33.0) PETROALGAE INC PALG US 4.7 (13.9) (48.0) WR GRACE & CO GRA US 3,957.9 1,177.5 (234.4) MOODY'S CORP MCO US 2,003.3 (138.9) (534.0) TENNECO INC TEN US 3,034.0 203.0 (14.0) UAL CORP UAUA US 19,952.0 (1,019.0) (2,887.0) UNISYS CORP UIS US 2,711.8 320.6 (1,221.7) DISH NETWORK-A DISH US 8,689.0 305.1 (1,850.3) CHENIERE ENERGY CQP US 1,883.2 37.6 (491.7) VECTOR GROUP LTD VGR US 743.1 231.5 (13.4) HEALTHSOUTH CORP HLS US 1,716.1 90.6 (474.5) VENOCO INC VQ US 799.5 10.6 (127.6) NATIONAL CINEMED NCMI US 620.4 106.9 (462.7) EXPRESS INC EXPR US 718.1 38.4 (81.8) PROTECTION ONE PONE US 562.9 (7.6) (61.8) DISH NETWORK-A EOT GR 8,689.0 305.1 (1,850.3) METALS USA HOLDI MUSA US 655.4 294.1 (43.0) ARVINMERITOR INC ARM US 2,769.0 345.0 (877.0) REGAL ENTERTAI-A RGC US 2,588.9 (168.9) (260.7) THERAVANCE THRX US 249.9 196.6 (113.0) JUST ENERGY INCO JE-U CN 1,353.1 (513.7) (503.2) REVLON INC-A REV US 765.8 63.9 (1,027.2) DOMINO'S PIZZA DPZ US 427.6 92.8 (1,290.0) INCYTE CORP INCY US 502.7 332.9 (114.4) CARDTRONICS INC CATM US 449.3 (36.6) (2.3) WORLD COLOR PRES WC CN 2,641.5 479.2 (1,735.9) TEAM HEALTH HOLD TMH US 797.4 52.1 (58.6) FORD MOTOR CO F US 195,485.0 (7,269.0) (5,437.0) WORLD COLOR PRES WCPSF US 2,641.5 479.2 (1,735.9) KNOLOGY INC KNOL US 641.7 30.9 (28.3) WORLD COLOR PRES WC/U CN 2,641.5 479.2 (1,735.9) MERU NETWORKS IN MERU US 88.8 0.5 (4.1) GRAHAM PACKAGING GRM US 2,126.4 187.6 (629.0) LIBBEY INC LBY US 776.9 128.0 (18.3) UNITED RENTALS URI US 3,584.0 30.0 (48.0) COMMERCIAL VEHIC CVGI US 276.8 105.5 (10.7) INTERMUNE INC ITMN US 190.9 102.8 (21.3) FORD MOTOR CO F BB 195,485.0 (7,269.0) (5,437.0) US AIRWAYS GROUP LCC US 7,808.0 (445.0) (447.0) RURAL/METRO CORP RURL US 286.2 38.7 (100.9) AFC ENTERPRISES AFCE US 114.6 (2.0) (11.5) BROADSOFT INC BSFT US 68.3 1.7 (6.4) JAZZ PHARMACEUTI JAZZ US 106.7 (31.2) (69.0) CENTENNIAL COMM CYCL US 1,480.9 (52.1) (925.9) SALLY BEAUTY HOL SBH US 1,531.5 366.1 (553.1) BLUEKNIGHT ENERG BKEP US 303.6 (15.3) (147.2) AMER AXLE & MFG AXL US 1,967.6 (0.3) (545.4) EPICEPT CORP EPCT SS 6.3 0.2 (12.7) CC MEDIA-A CCMO US 17,400.0 1,279.2 (7,054.8) WABASH NATIONAL WNC US 249.0 (154.6) (62.4) AMR CORP AMR US 25,525.0 (1,407.0) (3,892.0) ALIMERA SCIENCES ALIM US 16.3 3.5 (42.7) SANDRIDGE ENERGY SD US 2,971.7 (33.9) (171.3) HALOZYME THERAPE HALO US 65.2 48.9 (3.2) RSC HOLDINGS INC RRR US 2,669.6 (66.1) (9.8) MANNKIND CORP MNKD US 243.3 8.5 (100.9) PDL BIOPHARMA IN PDLI US 358.3 (83.5) (501.1) NPS PHARM INC NPSP US 140.4 95.2 (227.6) PALM INC PALM US 1,007.2 141.7 (6.2) PLAYBOY ENTERP-A PLA/A US 196.6 (9.6) (23.0) QWEST COMMUNICAT Q US 19,362.0 (585.0) (1,120.0) SINCLAIR BROAD-A SBGI US 1,576.6 48.1 (187.8) PLAYBOY ENTERP-B PLA US 196.6 (9.6) (23.0) CENVEO INC CVO US 1,563.5 212.7 (180.6) IDENIX PHARM IDIX US 61.0 16.8 (20.7) VIRGIN MOBILE-A VM US 307.4 (138.3) (244.2) GENCORP INC GY US 963.4 140.3 (241.2) ACCO BRANDS CORP ABD US 1,062.7 240.1 (118.0) LIN TV CORP-CL A TVL US 780.6 22.9 (164.2) CONSUMERS' WATER CWI-U CN 895.2 (5.3) (254.9) GLG PARTNERS-UTS GLG/U US 403.5 155.5 (285.9) EASTMAN KODAK EK US 7,178.0 1,588.0 (53.0) GLG PARTNERS INC GLG US 403.5 155.5 (285.9) WARNER MUSIC GRO WMG US 3,752.0 (557.0) (116.0) HOVNANIAN ENT-A HOV US 2,029.1 1,358.9 (137.0) GREAT ATLA & PAC GAP US 2,827.2 201.3 (396.4) HOVNANIAN ENT-B HOVVB US 2,029.1 1,358.9 (137.0) MAGMA DESIGN AUT LAVA US 122.1 14.4 (4.3) EXELIXIS INC EXEL US 284.2 (32.7) (199.3) ********* 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 ***