/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100721.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, July 21, 2010, Vol. 14, No. 200 Headlines ABITIBIBOWATER INC: Canada Court OKs Creditors' Meet on Aug. 26 ABITIBIBOWATER INC: Canada Court Approves Plan Voting Process ABITIBIBOWATER INC: Has Nod for Fee Letter with Exit Arrangers ABITIBIBOWATER INC: Proposes to Revert Up to $41MM in Trust Assets ABITIBIBOWATER INC: Shareholders Want Official Committee ACCESS PHARMACEUTICALS: Delays Plan to Issue $25MM in Securities ADVANCED MICRO: Reports $43 Million Net Loss for 2nd Qtr 2010 AGT CRUNCH: Wins Confirmation of Liquidating Chapter 11 Plan AMC ENTERTAINMENT: Public Offering Won't Affect Moody's B2 Rating AMERICAN INT'L: CEO Benmosche Acquires 2,280 Company Shares AMERICAN INT'L: Fairholme Holds 24.3% of Common Stock AMERICAN INT'L: Harvey Golum Resigns from Board of Directors AMERICAN INT'L: Officers Dispose of Restricted Stock Units AMERICAN INT'L: Officers Get Long-Term Performance Units AMERICAN SAFETY: Moody's Downgrades Corp. Family Rating to 'Caa3' AMERIGROW RECYCLING: Court Confirms Amended Reorganization Plan AMR, INC: Case Summary & 20 Largest Unsecured Creditors ARVINMERITOR INC: To Invest $23-Mil. for Michigan Technical Center AURA SYSTEMS: Posts $2.8 Million Net Loss in Q1 Ended May 31 AUTOBACS STRAUSS: Plan Going to Creditors for Vote AVENTINE RENEWABLE: Houlihan Fees Cut by 5% for Non-Disclosure BACHAN KAUR: Case Summary & 17 Largest Unsecured Creditors BANKRUPTCY MANAGEMENT: S&P Cuts Corp. Credit Rating to 'CCC-' BASHAS' INC: Phoenix Court Approves Plan of Reorganization BP PLC: Sells Oil and Gas Assets to Apache for $7 Billion BRADLEY ANDERSON: Case Summary & 15 Largest Unsecured Creditors BROWN PUBLISHING: Committee's Bid to Stop Credit Bid Fails BRUCE FROST: Case Summary & 20 Largest Unsecured Creditors BUD'S CAR: Case Summary & 20 Largest Unsecured Creditors C&D TECHNOLOGIES: Receives Notice Regarding NYSE Listing CALEB TECTOR: Case Summary & 20 Largest Unsecured Creditors CALIFORNIA COASTAL: Reaches Deal with Secured Lenders on Plan CALYPTE BIOMEDICAL: Issues 152,341,741 Shares to Marr Tech CATHOLIC CHURCH: Sapp Files in Spokane Case to be Opened CATHOLIC CHURCH: Wilmington Wants Plan Exclusivity Until Oct. 28 CATHOLIC CHURCH: Wilmington Wants Removal Period Until Oct. 28 CBGB HOLDINGS: Hearing on Bid to Dismiss Case Set for July 27 CENTERPLATE INC: S&P Assigns 'B' Corporate Credit Rating CENTRAL METAL: Court to Consider Amended Plan Outline Tomorrow CENTURION PROPERTIES: Gets 1st Interim OK to Use Cash Collateral CENTURION PROPERTIES: Section 341(a) Meeting Scheduled for Aug. 26 CENTURION PROPERTIES: Taps Crumb & Munding as Bankruptcy Counsel CHARLES IRWIN, JR.: Case Summary & 20 Largest Unsecured Creditors CHEMTURA CORP: Trustee, Others Object to Disclosure Statement CHRYSLER LLC: Old Chrysler Settles Environment Claim in Ohio CIRCUIT CITY: Proposes July 29 Auction for Virginia Property CITIGROUP INC: Moody's Changes Outlook on Bank Rating to Stable CONTROLADORA COMERCIAL: Chapter 15 Case Summary CORRELOGIC SYSTEMS: Case Summary & 20 Largest Unsecured Creditors CORUS BANKSHARES: Committee Seeks to Retain Attorneys, Advisors COZUMEL CARIBE: Drop in Tourists, Devaluation Cue Ch. 15 Filing DAYBREAK OIL: Posts $385,700 Net Loss in Q1 Ended May 31 DBSI INC: Liquidating Chapter 11 Plan Consolidates Creditors DIVISION PROPERTIES: Section 341(a) Meeting Scheduled for Aug. 9 DIVISION PROPERTIES: Taps G. Rudy Hiersche as Bankr. Counsel DREIER LLP: Fortress Sues Ruskin Moscou for Losses EDWARD NEWMAN: Case Summary & 20 Largest Unsecured Creditors EMMIS COMMS: DJD Group Holds 101,210 6.25% Preferred Shares EMMIS COMMS: Kevan Fight Pays $300,521 for Preferred Shares EMMIS COMMS: Posts $1.5 Million Net Loss for May 31 Quarter EMMIS COMMS: Radoff Pays $1.09 Mil. for 1.7% Preferreds Stake ENERGY FUTURE: Moody's Downgrades Default Rating to 'Ca' ENERJEX RESOURCES: Recurring Losses Cue Going Concern Doubt ENTRAVISION COMMUNICATIONS: Moody's Puts 'B1' Corp. Family Rating ENTRAVISION COMMUNICATIONS: S&P Affirms 'B' Corp. Credit Rating EQUITY LIFE: Case Summary & Largest Unsecured Creditor ESTERLINE TECHNOLOGIES: Moody's Puts Ba3 Rating on $200 Mil. Notes ESTERLINE TECHNOLOGIES: S&P Assigns 'BB' Rating on $200 Mil. Notes EVEREST HOLDINGS: New Chapter 11 Plan Swaps $90M Building Debt FEC RESOURCES: Posts C$1.2 Million Net Loss for 2009 FILI ENTERPRISES: Can Use Prepetition Lenders' Cash Until August 8 FONTAINEBLEAU LAS VEGAS: Judge Orders Remedy for Lienholders FILI ENTERPRISES: To Sell Daphne's Greek to Trefethen Group FORD MOTOR: S&P Raises Rating on Preferred Securities to 'CCC-' FORD MOTOR: New Director James Hance Holds 50,000 Shares FREMONT GENERAL: Signature Names New Management Team & Board FX REAL ESTATE: Sells Warrants to Sillerman et al. GARLOCK SEALING: Committees Seek to Retain Professionals GARLOCK SEALING: Opposes to Add'l Member to Asbestos Committee GARLOCK SEALING: Wins Final Nod to Sell in the Ordinary Course GARLOCK SEALING: Wins Nod to Continue Parent Services Deals GARLOCK SEALING: Wins Nod to Honor Obligations to Sales Agents GENCORP INC: Directors Receive Shares as Retainer Fees GENERAL GROWTH: American High-Income Leaves Creditors Committee GENERAL GROWTH: Emergence to End Uncertainty for Maryland Malls GENERAL GROWTH: Hughes Heirs Objects to Claims Estimation GENERAL GROWTH: Registers $2.15 Bil. in Exchangeable Notes GENERAL GROWTH: Lowers Interest on $400 Million Loan GENOIL INC: Cipher 06 LLC No Longer Holds Shares GOLDBERG-BAYMEADOWS: Wants to Pay Debts Prior to Case Dismissal GREENFIELD 8: Voluntary Chapter 11 Case Summary GROVE STREET: Organizational Meeting to Form Panel on July 28 GSC INVESTMENT: Earns $2.7 Million In Q1 Ended May 31 GULFSTREAM CRANE: Plan Proposes to Sell Assets Prophet Equity HACIENDA GARDENS: Taps Hulberg & Assoc. to Appraise San Jose Asset HARVEST OAKS: Court to Consider Cash Collateral Access Tomorrow HELLER EHRMAN: Settles Retirees' Claims for $4 Million HIGHLANDS OF LOS GATOS: Voluntary Chapter 11 Case Summary HOLLYWOOD BEACH: Cash Collateral Hearing Set for July 28 HOLLYWOOD BEACH: Files Schedules of Assets and Liabilities INNKEEPERS USA: Voluntary Chapter 11 Case Summary INTELLIPHARMACEUTICS: Posts $316,400 Net Loss in Q2 Ended May 31 ISP CHEMCO: S&P Raises Corporate Credit Rating to 'BB-' JEFFERY CHESLEIGH: Case Summary & 20 Largest Unsecured Creditors JENNIFER CONVERTIBLES: Organizational Meeting Set for July 23 JENNIFER CONVERTIBLES: Exit Plan Gives 95% of Newco to Supplier JENNIFER CONVERTIBLES: Case Summary & Creditors List LBI INT'L: Shares Delisted at NASDAQ OMX Stockholm & NYSE Euronext LEHMAN BROTHERS: Bondholders Opposing Substantive Consolidation LIONS GATE: Icahn Group Commences Tender Offer for Common Shares LITTLE TOKYO: Files for Ch. 11 to Stop Kyoto Grand Foreclosure LIZ CLAIBORNE: To Exit Branded Outlet Stores in U.S. & Puerto Rico MICHAEL VICK: Trustee Sues Family for Pre-Bankruptcy Transfers MINAXI PATEL: Case Summary & 10 Largest Unsecured Creditors MISSION TOWERS: Section 341(a) Meeting Scheduled for Aug. 6 MISSION TOWERS: Taps Redmond & Nazar as Bankruptcy Counsel MISSION TOWERS: Wants to Use Union Bank's Cash Collateral NEC HOLDINGS: Obtains Approval for $139 Million Financing NEC HOLDINGS: Committee Seeks to Retain Professionals PEARLAND SUNRISE: Files List of 20 Largest Unsecured Creditors PEARLAND SUNRISE: Section 341(a) Meeting Scheduled for Aug. 17 PENN TRAFFIC: Teamsters Objects to Disclosure Statement POSTMEDIA NETWORK: S&P Assigns 'B+' Corporate Credit Rating PREET CHARO: Voluntary Chapter 11 Case Summary PREMIER HOTEL: Files for Chapter 11 Bankruptcy Protection QUANTUM CORP: Capital Research Global Holds 10.4% of Shares QUANTUM CORP: CEO et al. Report Restricted Stock Units QUANTUM CORP: Annual Stockholders' Meeting Set for August 18 RADIO ONE: Lenders Tap Loughlin Meghji & Morgan Lewis as Advisors RADIO ONE: Officers Sell Class D Shares to Meet Tax Rules RENEGADE HOLDINGS: Returns to Bankruptcy After Judge Vacated Plan ROSELEA MANOR: Case Summary & 12 Largest Unsecured Creditors SARAH LEE: Mulls Sale of Struggling North American Bakery Biz SAVVIS INC: S&P Assigns Corporate Credit Rating at 'B' SEQUOIA DAY: Case Summary & 6 Largest Unsecured Creditors SIGMA INDUSTRIES: Files Bankruptcy Proposal in Quebec SOHAIL RAFIQ: Case Summary & 20 Largest Unsecured Creditors SOUTHEAST REGENCY: Files List of 20 Largest Unsecured Creditors SOUTHEAST REGENCY: Section 341(a) Meeting Scheduled for Aug. 17 SPONGETECH DELIVERY: Gets Court OK to Appoint Chapter 11 Trustee SPONGETECH DELIVERY: Taps Kera & Graubard as Bankruptcy Counsel TEXAS RANGERS: Restructuring Officer Wants Team-Owner TEXAS RANGERS: JPMorgan Seeks to Void Lease Transfer THERESA ADUBA: Case Summary & 9 Largest Unsecured Creditors TLC AMERICAS: Files for Bankruptcy Protection Under Chapter 11 TLC AMERICAS: Voluntary Chapter 11 Case Summary TOUSA INC: Committee Files Liquidating Chapter 11 Plan VERENIUM CORP: BP to Acquire Biofuel Biz. for $98.3 Million WASHINGTON SQUARE: Case Summary & 3 Largest Unsecured Creditors WHITE ENERGY: Plan Confirmed; Lenders to Get Stock WILLIAM HAINES: Still Pursuing Approval of FirstMerit Settlement WOODS & WATERS: Voluntary Chapter 11 Case Summary W.R. GRACE: Court OKs Easthampton Site Consent Order W.R. GRACE: Court OKs Walpole Superfund Site Consent Decree W.R. GRACE: Gets Court OK to Contribute $37.2MM to Pension Plan W.R. GRACE: To Resume Quarterly Investor Calls on July 22 WSP HOLDINGS: Significant Sales Decline Cues Going Concern Doubt XINHUA SPORTS: Deloitte Touche Tohmatsu Raises Going Concern Doubt XINHUA SPORTS: Restructures Loan Facility with Patriarch Partners * Upcoming Meetings, Conferences and Seminars ******** ABITIBIBOWATER INC: Canada Court OKs Creditors' Meet on Aug. 26 --------------------------------------------------------------- The Honorable Justice Daniele Mayrand, J.S.C., of the Superior Court Commercial Division for the District of Montreal in Quebec, Montreal, Canada, authorized Abitibi-Consolidated Inc., Bowater Inc. and certain of their affiliates to convene, hold and conduct separate meetings with their affected unsecured creditors in the CCAA Proceedings at 10:00 a.m., on August 26, 2010, at the Hilton Montreal Bonaventure, 900 de La Gauchetiere West, in Montreal, Quebec, Canada. Ernst & Young, Inc., as the monitor overseeing the CCAA Proceedings, will designate a person who will preside as the chair of the Creditors' Meeting of each Affected Unsecured Creditors Class and decide on all matters relating to the conduct of the Creditors' Meeting. The CCAA Applicants or any Affected Unsecured Creditor may appeal from any decision of the Chair to the Canadian Court no later than four days from any decision, Madame Justice Mayrand ruled. The Monitor, the Canadian Court held, may appoint "scrutineers" for the supervision and tabulation of the attendance at, quorum at and votes cast at the Creditors' Meeting of each Affected Unsecured Creditors Class and any person to act as secretary at the Creditors' Meeting of each Affected Unsecured Creditors Class. The only persons entitled to attend and speak at the Creditors' Meeting are Affected Unsecured Creditors with Voting Claims and their proxy holders; representatives of the CCAA Applicants; members of the boards of directors of the CCAA Applicants; representatives of the Monitor; and the representatives of the Ad Hoc Unsecured Noteholders Committee and the Chair, its legal counsel and financial advisors. Any Affected Unsecured Creditor Proxy that an Affected Unsecured Creditor wishes to submit with respect to the Classes to which the Affected Unsecured Creditor belongs must submit an Affected Unsecured Creditor Proxy Form. Similarly, any Non-registered Noteholder Proxy that a Non-registered Noteholder wishes to submit must submit a Non-registered Noteholder Proxy Form, the Canadian Court ruled. The quorum required at each Creditors' Meeting will be one (1) Affected Unsecured Creditor in the relevant Affected Unsecured Creditor Class present in person or by proxy and entitled to vote at the relevant Creditors' Meeting. If the requisite quorum is not present at a Creditors' Meeting, the Meeting will be adjourned by the Chair. "After each Creditors' Meeting . . . the Applicants, in consultation with the Monitor, may at any time and from time to time modify, amend, vary or supplement the CCAA Plan, in accordance with the terms of the Backstop Agreement, without the need for obtaining an Order or providing notice to the Affected Unsecured Creditors if the Monitor determines that such modification, amendment, variation or supplement would not be materially prejudicial to the interests of the Affected Unsecured Creditors . . .," Madame Justice Mayrand said. Madame Justice Mayrand has set August 17, 2010, as the Voting Record Date with respect to the CCAA Plan of Reorganization and Compromise. 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: Canada Court Approves Plan Voting Process ------------------------------------------------------------- The Honorable Justice Daniele Mayrand, J.S.C., of the Superior Court Commercial Division for the District of Montreal in Quebec, Montreal, Canada, acknowledged the filing of the CCAA Plan of Arrangement and Compromise and the related Circular by Abitibi- Consolidated Inc., Bowater Inc. and certain of their affiliates, as applicants under the Companies' Creditors Arrangement Act of Canada. She also approved the Cross-Border Voting Protocol to govern the process of voting for the CCAA Plan to facilitate cross-border coordination, and to effectuate an orderly and efficient administration of, the CCAA Proceedings and Chapter 11 cases while maintaining their independent jurisdictions. The effectiveness of the CCAA Plan is conditioned on all terms precedent to the implementation of the Chapter 11 Plan, the Canadian Court ruled. A full-text copy of the Canadian Court's Cross-Border Voting Protocol Order, which also details the CCAA Creditors' Meeting scheduled for August 26, 2010, is available at no charge at: http://bankrupt.com/misc/CCAA_ORDCrossBorderVoting&CredMtng.pdf 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: Has Nod for Fee Letter with Exit Arrangers -------------------------------------------------------------- U.S. Bankruptcy Judge Kevin Carey authorized AbitibiBowater Inc. and its units to enter into a work fee letter with J.P. Morgan Securities Inc., Barclays Capital and Citigroup Global Markets, Inc., as arrangers in relation to their exit financing process; pay certain fees and expenses; and furnish certain indemnities. As previously reported, the consummation of the AbitibiBowater's Chapter 11 Plan of Reorganization, as well as the Plan of Reorganization and Compromise under the Companies' Creditors Arrangement Act in Canada depend, among other things, on an exit financing sufficient (x) to meet the Company's cash obligations under the Plans and (y) to provide the reorganized Company with appropriate working capital after emergence. The Debtors obtained the services of the Exit Arrangers to facilitate the process of locating the necessary exit financing to (i) provide capital structuring services regarding Exit Financing proposals; (ii) make proposals for potential Exit Financing facilities; and (iii) perform necessary due diligence of the Company. The Company anticipates that it will need more than $2.3 billion in total capital to fund its emergence from bankruptcy. Under the Work Fee Letter, the Debtors essentially agreed to: -- pay the Arrangers an aggregate work fee of $1.2 million; -- reimburse reasonable and documented fees and expenses of the Arrangers, and make an advanced payment of $300,000; and -- indemnify the Arrangers, their affiliates and officers, employees, agents, directors, and advisors against any expenses, losses, claims, or liabilities that may occur in connection with proposed Exit Financing or evaluations under the Work Fee Letter, except to the extent that the expenses, losses, claims, or liabilities resulted from gross negligence or willful misconduct of the Arrangers. 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: Proposes to Revert Up to $41MM in Trust Assets ------------------------------------------------------------------ Effective as of June 6, 2000, Debtor Bowater Inc. entered into an Amended and Restated Bowater Incorporated Benefit Plan Grantor Trust with Wachovia Bank, N.A., as trustee. The Trust Agreement established a Trust, which, in the absence of the Chapter 11 cases, was structured to disperse funds to pay benefits to participants under non-qualified compensation plans covered by the Trust. According to Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, the Trust Agreement does not oblige Bowater to fund the Trust prior to a "change in control" of Bowater. Bowater's funding of the Trust has been purely discretionary. In addition, he reveals, Bowater has not used any of the Trust Assets to pay Plan benefits, but rather, has paid the benefits directly to Participants as they have come due. The Trust Agreement covers three Compensation Plans: (1) The Bowater Incorporated Compensatory Benefits Plan, as amended, consists of two separate plans. The first plan is maintained solely for the purpose of providing benefits for employees in excess of the limitations on contributions imposed by Section 415 of the Internal Revenue Code of 1986. The second plan is maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees. (2) The Bowater Incorporated Benefits Equalization Plan, as amended, is maintained to provide benefits to a select group of management or highly compensated employees whose benefits under one or both of the Company's tax-qualified pension plans are limited by application of Section 415 and Section 401(a)(17) of the Internal Revenue Code. (3) The Supplemental Benefit Plan for Designated Employees of Bowater Incorporated and Affiliated Companies, as amended, is maintained to provide an inducement to key employees of the Company and of selected affiliated companies to remain in the employment of those companies by providing retirement benefits supplemental to those available under the Company's basic tax-qualified benefit plans. The Trust Assets have a value of approximately $17.6 million, if the life insurance policies are valued on a cash surrender basis as of June 30, 2009; and approximately $41.8 million, if the life insurance policies are valued on a death benefit payout basis with cash investment assets valued as of March 31, 2010. Bowater's remaining grantor trusts contain no assets, Mr. Greecher relates. The Compensation Plans are unfunded for purposes of Title I of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. The Trust, accordingly, was structured as a grantor trust -- or so-called "rabbi trust" -- to preserve the unfunded nature of the Plans. Accordingly, its Assets remain subject to the claims of Bowater's creditors, Mr. Greecher tells the Court. As a grantor or "Rabbi Trust," to maintain the unfunded nature of the Plans, the Trust Agreement expressly provides that "when the Trustee is in receipt of a copy of a bankruptcy petition relating to the Company or a notification from the Company that it is insolvent, the Trustee will suspend payments to the participants and beneficiaries under the Trust and will hold assets of the Trust for the benefit of the Company's general creditors," Mr. Greecher explains. "Thereafter, the Trustee will deliver assets of the Trust to satisfy claims of the Company's general creditors as directed by a court of competent jurisdiction." Therefore, according to the terms of the Trust Agreement, Bowater's Chapter 11 filing suspended the Benefit Plan Trustee's ability to pay benefits to the Compensation Plan Participants and rendered the Trust assets deliverable to Bowater, Mr. Greecher avers. Mr. Greecher elaborates that the assets of the Rabbi Trust, by definition, belong to the Company establishing the trust and revert to the Company upon insolvency or bankruptcy. Hence, Plan Participants do not have a preferred claim to the trust assets. In the case of the Trust Agreement, (i) the Compensation Plan Participants have no preferred claim on, or any beneficial interest in, the Trust assets; and (ii) the rights of the Participants to their Benefits under the relevant Plan and its corresponding Trust do not exceed those of a general creditor of the Company. In the event of Bowater's bankruptcy or insolvency, all Trust Assets are subject to the claims of Bowater's general creditors, Mr. Greecher clarifies. Against this backdrop, the Debtors ask Judge Carey to direct the Benefit Plan Trustee to release the Trust Assets to them. Because the Debtors' request to direct the Benefit Plan Trustee to release the Trust Assets to Bowater may arguably constitute use of their property outside the ordinary course of business, the Debtors further seek the Court's authority to implement their contractual rights under Section 363 of the Bankruptcy Code. Mr. Greecher avers that the Bankruptcy Court constitutes one of "competent jurisdiction," within the meaning of the Trust Agreement, that can provide appropriate direction to the Benefit Plan Trustee. The Court will convene a hearing on August 4, 2010, to consider approval of the Debtors' request. Objections are due on July 28. 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: Shareholders Want Official Committee -------------------------------------------------------- Bill Rochelle at Bloomberg News reports that holders of 27% of the stock of AbitibiBowater Inc. is asking the bankruptcy court to direct the appointment of an official committee to represent shareholders. The shareholders contend AbitibiBowater isn't hopelessly insolvent. Their financial adviser says the Company's fair market value is $4.9 billion while the liquidation value is $9.9 billion, according to the court filing. AbitibiBowater's value has risen after prices improved for the company's products, the shareholders argue. A hearing on the motion for an official equity committee will be held on Aug. 4. 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). ACCESS PHARMACEUTICALS: Delays Plan to Issue $25MM in Securities ---------------------------------------------------------------- Access Pharmaceuticals, Inc., is delaying a plan to issue $25,000,000 in securities. Access Pharma filed PRE-EFFECTIVE AMENDMENT NO. 1 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 on July 9. Pursuant to the prospectus, Access Pharma intends to issue units, each unit consisting of ___ share of Common Stock, $0.01 par value, and warrants to purchase ___ share of Common Stock. A full-text copy of the registration statement is available at no charge at http://ResearchArchives.com/t/s?66c0 About Access Pharmaceuticals Access Pharmaceuticals, Inc., is an emerging biopharmaceutical company focused on developing a range of pharmaceutical products primarily based upon the Company's nanopolymer chemistry technologies and other drug delivery technologies. The Company currently has one approved product, one product candidate at Phase 3 of clinical development, three product candidates in Phase 2 of clinical development and other product candidates in pre-clinical development. At March 31, 2010, the Company's balance sheet revealed $5,195,000 in total assets and $25,524,000 in total liabilities, for a stockholder's deficit of $20,329,000. Accumulated deficit has reached $241,160,000. Whitely Penn LP of Dallas, Texas, expressed substantial doubt against Access Pharmaceuticals' ability as a going concern. The firm reported that the Company has had recurring losses from operations, negative cash flows from operating activities and has an accumulated deficit. ADVANCED MICRO: Reports $43 Million Net Loss for 2nd Qtr 2010 ------------------------------------------------------------- Advanced Micro Devices Inc. reported revenue for the second quarter of 2010 of $1.65 billion, a net loss of $43 million, or $0.06 per share, and operating income of $125 million. The company reported non-GAAP net income of $83 million, or $0.11 per share, and non-GAAP operating income of $138 million. The company's balance sheet for June 26, 2010, showed $4.9 billion in total assets, $1.6 billion total current liabilities, $1 million deferred income taxes, $2.4 billion long-term debt, $154 million noncontrolling interest, for a $752 million total stockholders' equity "Robust demand for our latest mobile platforms and solid execution drove record second quarter revenue and a healthy gross margin," said Dirk Meyer, AMD President and CEO. "Our unmatched combination of microprocessor and graphics capabilities resulted in customers launching a record number of new mobile and desktop platforms. We added Sony as a microprocessor customer and continue to see our existing customers expand their AMD-based platform offerings." A full-text copy of the Company's earnings release is available for free at http://ResearchArchives.com/t/s?66bc About Advanced Micro Devices Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative processing solutions in the computing, graphics and consumer electronics markets. * * * Advanced Micro carries a 'B-' corporate credit rating from Standard & Poor's and a 'Ba3' corporate family rating from Moody's. Standard & Poor's Ratings Services said it placed its 'B-' corporate credit and senior unsecured ratings on Sunnyvale, Calif.-based graphics and microprocessor designer Advanced Micro Devices Inc. on CreditWatch with positive implications. AGT CRUNCH: Wins Confirmation of Liquidating Chapter 11 Plan ------------------------------------------------------------ Bill Rochelle at Bloomberg News reports that Crunch Fitness will be paying unsecured creditors $150,000 under the liquidating Chapter 11 plan that the bankruptcy judge in New York approved in a July 15 confirmation order. There were no objections to confirmation. Although the disclosure statement didn't tell unsecured creditors how much they could expect to receive from the plan, it did estimate the deficiency claim of the secured lender would have a 1% recovery. About AGT Acquisition AGT Crunch Acquisition Co. and its affiliates operated the Crunch Fitness chain of 19 high-end fitness clubs. The clubs, with 73,000 members, are located in New York, Chicago, Los Angeles and Rock Creek, Maryland. New York-based AGT Crunch Acquisition LLC and its affiliates filed for Chapter 11 on May 6, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-12889). Davin J. Hall, Esq., at Dechert LLP, represents the Debtors in their restructuring efforts. Diana G. Adams, the U.S. Trustee for Region 2, appointed seven creditors to serve on the official committee of unsecured creditors. The petition listed assets of $104 million against $102 million in total liabilities. Debt includes $56.7 million on a first-lien loan now mostly owned by Angelo Gordon affiliates. There is a second-lien debt for another $22.7 million. Crunch was authorized in September 2009 to sell the business to an affiliate of Angelo Gordon & Co. in exchange for secured debt. Angelo Gordon, a New York-based hedge fund manager, bought Crunch in 2006 from Bally Total Fitness Holding Corp. and purchased the first-lien debt in late 2008. AMC ENTERTAINMENT: Public Offering Won't Affect Moody's B2 Rating ----------------------------------------------------------------- Moody's Investors Service said the proposed $450 million initial public offering of theatre exhibitor AMC Entertainment Holdings, Inc., the parent holding company of Marquee Holdings Inc., is unlikely to affect Marquee's B2 corporate family and probability of default ratings. While the debt reduction that is planned from the IPO proceeds is credit-positive, the resulting pro forma improvement in financial risk evidenced by reduced leverage and stronger coverage metrics is assessed as being relatively modest, indicating that the overall credit profile remains substantially unchanged. However, as it is junior-most debts at Marquee and ultimate parent AMCEH that are contemplated to be repaid, loss absorption capacity behind senior debts is expected to be reduced and some instrument ratings at AMC Entertainment, Inc., which is wholly-owned by Marquee, may in fact be subject to downgrade on that basis. The last rating action on Marquee was an affirmation of the B2 CFR and PDR on April 22, 2010. Marquee's ratings were assigned by evaluating factors Moody's believes are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of Marquee's core industry and Marquee's ratings are believed to be comparable to those of other issuers of similar credit risk. Headquartered in Kansas City, Missouri, Marquee is an investment holding company that, through AMC Entertainment, Inc., owns and operates (pro forma for the acquisition of Kerasotes Showplace Theatres) 380 theatres and 5,325 screens, 99% of which are located in the United States and Canada. Marquee is indirectly owned through AMC Entertainment Holdings, Inc., by a private equity consortium comprised of: J.P. Morgan Partners, LLC, Apollo Management, L.P., and certain related investment funds and affiliates of Bain Capital Partners, The Carlyle Group and Spectrum Equity Investors. AMERICAN INT'L: CEO Benmosche Acquires 2,280 Company Shares ----------------------------------------------------------- American International Group Inc.'s CEO and President Robert H. Benmosche acquired 2,280 shares of the company's common stock on July 8, 2010, raising his stake to 63,330 shares. The shares are restricted from transfer until August 10, 2014, pursuant to the 2009-2010 Stock Salary Award Agreement with the Company dated November 24, 2009. The award reflects 4,332 shares less 2,052 shares withheld for taxes. 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 INT'L: Fairholme Holds 24.3% of Common Stock ----------------------------------------------------- Miami, Florida-based Fairholme Capital Management, L.L.C., Bruce R. Berkowitz and Fairholme Funds, Inc., disclosed holding in the aggregate 32,789,000 shares or roughly 24.3% of the common stock of American International Group, Inc., as of June 30, 2010. The AIG shares are owned, in the aggregate, by various investment vehicles and accounts managed by Fairholme Capital Management, of which 29,282,400 shares are owned by The Fairholme Fund, a series of Fairholme Funds, Inc. Because Mr. Berkowitz, in his capacity as the Managing Member of FCM or as President of Fairholme Funds, Inc., has voting or dispositive power over all shares beneficially owned by FCM, he is deemed to have beneficial ownership of all such shares reported. 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 INT'L: Harvey Golum Resigns from Board of Directors ------------------------------------------------------------ Harvey Golub resigned from the Board of Directors of American International Group, Inc., according to a regulatory filing. Robert S. Miller has succeeded Mr. Golub as Chairman of the Board of Directors. 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 INT'L: Officers Dispose of Restricted Stock Units ---------------------------------------------------------- Various officers of American International Group, Inc., disclosed that they disposed of AIG restricted stock units on July 9, 2010. Senior Vice President Robert Edward Lewis disposed of 370.9 RSUs. The RSUs represent payout of $13,315.46, net of applicable taxes, in stock salary payable in cash based on AIG's share price on the first anniversary of the deemed grant date, to be paid on the next payroll date. Following the transaction, Mr. Lewis may be deemed to hold 42,110.37 RSUs. EVP and CFO David L. Herzog disposed of 1,284.09 RSUs. The RSUs represent the payment in cash of $46,098.75 net of applicable taxes, in settlement of stock salary based on AIG's share price on July 9, 2010. The settlement date for this award was accelerated by one year after certification to the Special Master for TARP Executive Compensation that AIG had completed a corporate transaction that resulted in a repayment to the Federal Reserve Bank of New York. Following the transaction, Mr. Herzog may be deemed to hold 82,823.64 RSUs. SVP William N. Dooley disposed of 842.22 RSUs. The RSUs represent payout of $30,235.87, net of applicable taxes, in stock salary payable in cash based on AIG's share price on the first anniversary of the deemed grant date, to be paid on the next payroll date. Following the transaction, Mr. Dooley may be deemed to hold 75,447.55 RSUs. EVP Jay S. Wintrob disposed of 1,473.9 RSUs. The RSUs represent the payment in cash of $52,426.61, net of applicable taxes, in settlement of stock salary based on AIG's share price on July 12, 2010. The settlement date for this award was accelerated by one year after certification to the Special Master for TARP Executive Compensation that AIG had completed a corporate transaction that resulted in a repayment to the Federal Reserve Bank of New York. Following the transaction, Mr. Wintrob may be deemed to hold 95,066.52 RSUs. SVP Monika M. Machon disposed of 137.93 RSUs. The RSUs represent payout of $4,951.64, net of applicable taxes, in stock salary payable in cash based on AIG's share price on the first anniversary of the deemed grant date, to be paid on the next payroll date. Following the transaction, Mr. Machon may be deemed to hold 23,566.39 RSUs. SVP for Human Resources Jeffrey J. Hurd disposed of 149.32 RSUs. The RSUs represent payout of $5,360.61, net of applicable taxes, in stock salary payable in cash based on AIG's share price on the first anniversary of the deemed grant date, to be paid on the next payroll date. Following the transaction, Mr. Hurd may be deemed to hold 1,845.18 RSUs. SVP Brian T. Schreiber disposed of 642.96 RSUs. The RSUs represent payout of $23,082.42, net of applicable taxes, in stock salary payable in cash based on AIG's share price on the first anniversary of the deemed grant date, to be paid on the next payroll date. Following the transaction, Mr. Schreiber may be deemed to hold 62,196.26 RSUs. EVP Kristian P. Moor disposed of 1,934.66 RSUs. The RSUs represent the payment in cash of $69,454.27 net of applicable taxes, in settlement of stock salary based on AIG's share price on July 9, 2010. The settlement date for this award was accelerated by one year after certification to the Special Master for TARP Executive Compensation that AIG had completed a corporate transaction that resulted in a repayment to the Federal Reserve Bank of New York. Following the transaction, Mr. Moor may be deemed to hold 124,785.52 RSUs. EVP Nicholas C. Walsh disposed of 886.83 RSUs. The RSUs represent payout of $31,837.30, net of applicable taxes, in stock salary payable in cash based on AIG's share price on the first anniversary of the deemed grant date, to be paid on the next payroll date. Following the transaction, Mr. Walsh may be deemed to hold 70,176.76 RSUs. EVP Rodney O. Martin Jr. disposed of 968.03 RSUs. The RSUs represent payout of $34,752.38, net of applicable taxes, in stock salary payable in cash based on AIG's share price on the first anniversary of the deemed grant date, to be paid on the next payroll date. Following the transaction, Mr. Martin may be deemed to hold 85,737.16 RSUs. 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 INT'L: Officers Get Long-Term Performance Units -------------------------------------------------------- Various officers of American International Group, Inc., disclosed acquiring AIG Long-Term Performance Units on July 15, 2010. AIG Executive Vice President Jay S. Wintrob acquired 1,117.5057 LTPUs. The award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 30.3898 shares withheld for taxes. Mark A. Wilson, EVP for Life Insurance, acquired 276.4402 and 75.7981 LPTUs. Executive Vice President Nicholas C. Walsh acquired 980.2312 LTPUs. The award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 28.5524 shares withheld for taxes. Senior Vice President Brian T. Schreiber acquired 791.767 LTPUs. The award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 23.0627 shares withheld for taxes. EVP and General Counsel Thomas A. Russo acquired 163.2422 and 54.4141 shares of LTPUs. The 163.2422 award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 3.9596 shares withheld for taxes. The 54.4141 award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 1.3199 shares withheld for taxes. Executive Vice President Kristian P. Moor acquired 1,083.1286 LTPUs. The award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 31.5495 shares withheld for taxes. Executive Vice President Rodney O. Martin Jr., Esq., acquired 786.3513 LTPUs. The award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 22.9050 shares withheld for taxes. Senior Vice President Monika M. Machon acquired 150.1828 and 52.2375 LTPUs. The 150.1828 award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 3.6428 shares withheld for taxes. The 52.2375 award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 1.2671 shares withheld for taxes. SVP Robert Edward Lewis acquired 308.6917 LTPUs. The award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 8.9915 shares withheld for taxes. SVP for Human Resources Jeffrey J. Hurd acquired 135.1477 and 26.1576 shares of LTPUs. The 135.1477 award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 3.0724 shares withheld for taxes. The 26.1576 award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 0.5947 shares withheld for taxes. EVP and CFO David L. Herzog acquired 973.6081 LTPUs. The award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 26.2581 shares withheld for taxes. EVP Peter D. Hancock acquired 523.1519 LTPUs. The award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 11.8936 shares withheld for taxes. SVP William N. Dooley acquired 879.1848 LTPUs. The award represents the portion of a grant of fully vested LPTUs that is based on the value of common stock, net of the value of 23.7044 shares withheld for taxes. The LTPUs are based on a mix of common stock and AIG's 8.175% Series A-6 Junior Subordinated Debentures, and represent 20% common stock and 80% Hybrid Securities, by value, on the date of grant. One third of the award will be payable in cash based on the values of the underlying securities on the first anniversary of the grant date, one third based on the values on the second anniversary and one third based on the values on the third anniversary. 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 SAFETY: Moody's Downgrades Corp. Family Rating to 'Caa3' ----------------------------------------------------------------- Moody's Investors Service downgraded American Safety Razor Company's corporate family rating and probability-of-default rating to Caa3 from Caa1, the ratings on the first lien senior secured credit facilities to Caa2 from B3, and the rating on the second lien term loan to Caa3 from Caa1. The ratings outlook remains negative. ASR is operating under a waiver from its lending group that is set to expire on July 31 (the company has been operating under waivers since April 1, 2010 stemming from covenant violations under the credit agreement). The company recently announced that it received a refinancing proposal from a financial institution working in conjunction with second lien lenders. In addition, the company stated that it was reviewing a backup proposal by first lien lenders in the event that the proposed transaction with second lien lenders is not completed. The ratings downgrade reflects Moody's concern over the heightened risk of default given the company's significant financial leverage with debt to EBITDA of 7.8 times through the twelve months ended April 3, 2010 (based on Moody's standard analytical adjustments). In addition, with the re-sizing of the business, ASR's run rate earnings may not be sufficient to support its significant debt burden. The downgrade also considers the pending expiration of the waiver and uncertainty over ASR's ability to complete the proposed refinancing on terms that are acceptable to all of its lenders. These ratings were downgraded: * Corporate Family Rating to Caa3 from Caa1; * Probability-of-Default Rating to Caa3 from Caa1; * $35 million 1st lien revolving credit facility due 2012 to Caa2 (LGD3, 36%) from B3 (LGD3, 36%); * $216 million 1st lien term loan due 2013 to Caa2 (LGD3, 36%) from B3 (LGD3, 36%); * $175 million 2nd lien term loan due 2014 to Caa3 (LGD4, 55%) from Caa1 (LGD4, 55%). The last rating action was on January 27, 2010, when Moody's downgraded ASR's corporate family rating and probability-of- default rating to Caa1 from B2, the ratings on the first lien senior secured credit facilities to B3 from B1, and the rating on the second lien term loan to Caa1 from B3. Headquartered in Cedar Knolls, New Jersey, American Safety Razor Company is a designer, manufacturer and marketer of brand name and private-label consumer and industrial products. The company reported revenues of $335 million for the twelve months ended April 3, 2010. AMERIGROW RECYCLING: Court Confirms Amended Reorganization Plan --------------------------------------------------------------- The Hon. Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida confirmed Amerigrow Recycling-Delray, Limited Partnership, et al.'s amended Plan of Reorganization. As reported in the Troubled Company Reporter on April 28, 2010, According to the Disclosure Statement, the Plan provides for all assets of the estates to be transferred to and vested in the respective Reorganized Debtor under the sole control of the respective Reorganized Debtor, free and clear of all liens, claims, encumbrances and interests of any kind except as provided under the Plan. The distributions required under the Plan will be funded by the Debtors' cash on hand as of the effective date and the Reorganized Debtors' business operations. In addition, the Debtors will be authorized to commence or continue litigation on behalf of the estate to recover, inter alia, voidable transfers and other claims, if any. Secured creditors are expected to receive full recovery on account of their claims. The Plan did not provide for the estimated percentage recovery by holders of unsecured claims. The Debtors do not expect there would be funds for distributions available for interest holders. Interests in Reorganized Amerigrow Corp. will be issued to Janet Tomlinson (50%) and Silvia Kearney (50%). A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/AMERIGROWRECYCLING_AmendedDS.pdf The Debtor is represented by: Genovese Joblove & Battista, P.A. Heather L. Harmon, Esq. E-mail: hharmon@gjb-law.com Michael L. Schuster, Esq. E-mail: mschuster@gjb-law.com 100 S.E. 2nd Street, 44th Floor Miami, FL 33131 Tel: (305) 349-2300 Fax: (305) 349-2310 About Amerigrow Recycling Delray Beach, Florida-based Amerigrow Recycling-Delray, Limited Partnership -- dba Amerigriow Recycling, Amerigrow Soils, Amerigrow Golf, Amerigrow Trucking, Mulching Solutions -- was founded in 1995, and operates as a full-service organic-recycling facility, accepting organic landscape debris at its convenient drive-thru Delray Beach store and dumping facility. Amerigrow Recycling and its affiliates filed for Chapter 11 on November 2, 2009 (Bankr. S.D. Fla. Case No. 09-34122). The Company listed $10,000,001 to $50,000,000 in assets and debts. AMR, INC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: AMR, Inc. 11617 Hunters Run Drive Cockeysville, MD 21030 Bankruptcy Case No.: 10-26054 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court District of Maryland (Baltimore) Judge: Nancy V. Alquist Debtor's Counsel: James Greenan, Esq. McNamee, Hosea, et. al. 6411 Ivy Lane, Suite 200 Greenbelt, MD 20770 Tel: (301) 441-2420 E-mail: jgreenan@mhlawyers.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company says that assets total $3,673,296 while debts total $4,640,090. A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb10-26054.pdf The petition was signed by Charles W. Irwin, Jr., president. ARVINMERITOR INC: To Invest $23-Mil. for Michigan Technical Center ------------------------------------------------------------------ ArvinMeritor, Inc., intends to invest $23 million over the next five years to expand its advanced technologies capabilities at its technical center in Troy, Mich. This project is expected to create 125 jobs at the company by 2014. "ArvinMeritor is investing in a spectrum of advanced technologies that are focused on fuel efficiency, next generation brake technology, suspensions and vehicle dynamics capabilities," said Carsten Reinhardt, chief operating officer, ArvinMeritor. The Troy, Mich. technical center is part of the company's global engineering network that also includes technical centers in Cameri, Italy; Cwmbran, U.K.; Bangalore, India; Shanghai, China; Monterrey, Mexico and Osasco, Brazil. ArvinMeritor applied for and received a MEGA grant (Michigan Economic Growth Authority) through the MEDC (Michigan Economic Development Corp.) valued at $2.2 million. The City of Troy has proposed support for the project through consideration of PA 198 personal property and facility rehabilitation exemptions. In addition, Oakland County has offered support valued at up to $1.6 million with training grants available through its workforce development program. About ArvinMeritor Inc. Based in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The Company marks its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. The Company's balance sheet at March 31, 2010, showed $2.769 billion in total assets and $3.646 billion in total liabilities, for a $877.0 million stockholders' deficit. Stockholder's deficit was at $1.166 billion at March 31, 2009. * * * As reported in the Troubled Company Reporter on July 13, 2010, Moody's Investors Service raised the Corporate Family and Probability of Default ratings of ArvinMeritor, Inc., to B3 from Caa1. In a related action, Moody's raised the rating on the senior secured revolving credit facility to Ba3 from B1, and raised the ratings on the senior unsecured notes to Caa1 from Caa2. AURA SYSTEMS: Posts $2.8 Million Net Loss in Q1 Ended May 31 ------------------------------------------------------------ Aura Systems, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2,827,726 on $587,988 of revenue for the three months ended May 31, 2010, compared with a net loss of $2,171,109 on $632,695 of revenue for the three months ended May 31, 2009. The Company's balance sheet at May 31, 2010, showed $4,867,580 in assets and $11,601,214 of liabilities, for a stockholders' deficit of $6,733,634. Kabani & Company, Inc., in Los Angeles, Calif., 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 historically incurred substantial losses from operations, and the Company may not have sufficient working capital or outside financing available to meet its planned operating activities over the next 12 months. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?66ab El Segundo, Calif.-based Aura Systems, Inc. designs, assembles and sells the AuraGen(R), its patented mobile power generator that uses the engine of a vehicle to generate power. AUTOBACS STRAUSS: Plan Going to Creditors for Vote -------------------------------------------------- Bill Rochelle at Bloomberg News reports that Autobacs Strauss Inc. won approval of the disclosure statement explaining its reorganization plant. As a result, creditors can now vote on the plan that gives them all of the new stock plus a second-lien note for $8.5 million. Bloomberg relates that under the Plan, unsecured creditors in two classes with some $18.7 million in claims are predicted to have a 45% recovery by receiving all the new stock plus the $8.5 million note, assuming total victory in a lawsuit against parent Autobacs Seven Co., and its $44 million claim. If the fight with Autobacs ends in failure, the draft disclosure statement tells unsecured creditors they should see less than 14% plus the new stock. Confirmation of the plan is conditioned on approval of an employment agreement with Chief Executive Officer Glenn Langsberg. The Plan needs $10 million in exit financing. About Autobacs Strauss Headquartered in South River, New Jersey, Autobacs Strauss Inc. -- http://www.straussauto.com/-- sells after-market automotive parts and accessories, and operate automotive service centers located in New York, New Jersey, Philadelphia, Bethlehem and Pennsylvania. The Company operates 86 retail store locations and has about 1,450 employees. The Company filed for Chapter 11 protection on February 4, 2009 (Bankr. D. Del. Case No. 09-10358). Edward J. Kosmowski, Esq., at Young Conaway Stargatt & Taylor, LLP, represents the Debtor in its restructuring efforts. As of January 3, 2009, the Debtor had total assets of $75,000,000 and total debts of $72,000,000. The Chapter 11 case is Strauss's third. The preceding Chapter 11 case ended with the confirmation of a Chapter 11 plan in April 2007. The Company was then named R&S Parts & Service Inc. AVENTINE RENEWABLE: Houlihan Fees Cut by 5% for Non-Disclosure -------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that the bankruptcy judge in the bankruptcy case of Aventine Renewable Energy Holdings Inc. cut Houlihan Lokey Howard & Zukin Capital Inc.'s fees by $250,000 -- 5% of the total fees charged by the firm. Houlihan failed to make timely disclosure about its connections with noteholders who were providing contested financing. According to the report, the U.S. Trustee in May asked the bankruptcy judge to cut the $5 million fee request in half. U.S. Bankruptcy Judge Kevin Gross said in his 12-page opinion that the reduction in fees was nonetheless appropriate "to balance the protection of the integrity of the bankruptcy process with the substantial benefits" the Houlihan firm provided in Aventine's reorganization. About Aventine Renewable Pekin, Illinois-based Aventine Renewable Energy Holdings, Inc. (Pink Sheets: AVRN) -- http://www.aventinerei.com/-- is a producer and marketer of ethanol to many leading energy companies in the United States. In addition to ethanol, Aventine also produces distillers grains, corn gluten meal, corn gluten feed, corn germ and brewers' yeast. Morgan Stanley Capital Partners IV bought Aventine in May 2003 from Williams Cos. Aventine had a public offering in May 2006. The Morgan Stanley group retained 28% of the stock at year's end. The Company and its affiliates filed for Chapter 11 on April 7, 2009 (Bankr. D. Del. Lead Case No. 09-11214). Joel A. Waite, Esq., and Ryan M. Bartley, Esq., at Young, Conaway, Stargatt & Taylor, serves as bankruptcy counsel to the Debtors. Davis Polk & Wardwell is special tax counsel and Houlihan, Lokey, Howard & Zukin, Inc., is the financial advisor. Garden City Group, Inc., has been engaged as claims agent. Scott D. Cousins, Esq., and Donald J. Detweiler, Esq., at Greenberg Traurig, LLP, serve as counsel to the official committee of unsecured creditors. When it filed for bankruptcy protection from its creditors, Aventine Renewable listed between $100 million and $500 million each in assets and debts. The Court confirmed on February 24, 2010, the Company's plan of reorganization. The Company emerged from Chapter 11 on March 15, 2010. BACHAN KAUR: Case Summary & 17 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Bachan Kaur 19532 Gifford Street Reseda, CA 91335 Bankruptcy Case No.: 10-18651 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Maureen Tighe Debtor's Counsel: Anthony Egbase, Esq. Law Offices of Anthony O Egbase & Assoc 350 S Figueroa Street, Suite 189 Los Angeles, CA 90071 Tel: (213) 620-7070 E-mail: info@anthonyegbaselaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-18651.pdf The petition was signed by the Debtor. BANKRUPTCY MANAGEMENT: S&P Cuts Corp. Credit Rating to 'CCC-' ------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its ratings, on Irvine, Calif.-based Bankruptcy Management Solutions Inc., including its corporate credit rating, which S&P lowered to 'CCC-' from 'CCC+'. S&P removed this rating, along with all related issue-level ratings on BMS, from CreditWatch, where S&P had placed it with negative implications April 23, 2010. S&P subsequently withdrew all ratings on BMS and its parent company, BMS Holdings Inc., due to what S&P consider inadequate timeliness of information and insufficient documentation to maintain S&P's surveillance. The outlook at the time of the rating withdrawal was negative. S&P also lowered the issue ratings on the company's first-lien bank credit facilities, consisting of a $15 million revolving credit facility due 2011 and a $220 million first-lien term loan due 2012, to 'CCC-' from 'CCC+'. The recovery rating on this debt at the time of the rating withdrawal was a '4' indicating expectations for average (30%-50%) recovery in the event of a payment default. In addition, S&P lowered the issue ratings on the company's $125 million second-lien notes and $150 million of floating-rate senior paid-in-kind notes issued by parent company BMS Holdings to 'CC' from 'CCC-'. The recovery ratings on these issues at the time of the rating withdrawal were '6', indicating expectations for negligible (0%-10%) recovery in the event of a payment default. "The downgrade reflects S&P's concerns regarding BMS' inability to meet financial reporting requirements contained in its senior secured credit facilities," explained Standard & Poor's credit analyst Susan Madison. The company has not provided credit facility lenders with required financial statements due 105 days after BMS' Dec. 31 fiscal year-end. The rating actions also reflect the absence of financial or operating information received by Standard & Poor's since Sept. 30, 2009. Finally, S&P has determined that S&P cannot maintain its surveillance and have decided to withdraw the rating. BMS provides bankruptcy trustees in the U.S. with hardware, software, and services needed to manage bankruptcy cases. The company's revenue base depends on the amount of bankruptcy funds held in the custody of trustees who use BMS' software, and who are contractually obligated to deposit their cash balances with a depository institution selected by BMS. Debt outstanding at Sept. 30, 2009 (including investment-line borrowings and $150 million of floating-rate senior PIK notes issued by parent BMS Holdings) totaled about $892 million. The negative outlook at the time of the rating withdrawal reflects BMS' very high debt leverage, weak operating performance through the first nine months of 2009, and minimal headroom under financial maintenance covenants contained in the company's senior secured credit facilities. BASHAS' INC: Phoenix Court Approves Plan of Reorganization ---------------------------------------------------------- Elliot Zwiebach at Supermarket News reports that the U.S. Bankruptcy Court in Phoenix approved the plan of reorganization of Bashas' Inc. The company is expected to emerge from bankruptcy by week's end. Bankruptcy Law360 reports that senior lenders of Bashas' objected to its reorganization plan, which they claim is a bid by the Company's owners to hold onto their equity interest at the expense of the lenders. About Bashas' Inc. Bashas' Inc. is a 77-year-old grocery chain that owns 158 retail stores located throughout Arizona. It is doing business as National Grocery, Bashas Food, Bashas' United Drug, Food City, Eddie's Country Store, A,.J. Fine Foods, Western Produce, Bashas' Distribution Center, Sportsman's, and Bashas' Dine. The Company and its affiliates filed for Chapter 11 bankruptcy protection on July 12, 2009 (Bankr. D. Ariz. Case No. 09-16050). Frederick J. Petersen, Esq., at Mesch, Clark & Rothschild, P.C., assists the Debtors in their restructuring efforts. Michael W. Carmel, Ltd., is the Debtors' co-counsel. Deloitte Financial Advisory LLP serves as financial advisors. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. In its bankruptcy petition, Bashas' listed $100 million to $500 million each in assets and debts. BP PLC: Sells Oil and Gas Assets to Apache for $7 Billion --------------------------------------------------------- BP Plc said Tuesday it has entered into several agreements to sell upstream assets in the United States, Canada and Egypt to Apache Corporation. The deals, together worth a total of $7 billion, comprise BP's Permian Basin assets in Texas and south-east New Mexico, US; its Western Canadian upstream gas assets; and the Western Desert business concessions and East Badr El-din exploration concession in Egypt. The decision to make these divestments follows the announcement made by BP last month that it was increasing its target for divestments to $10 billion. The proceeds of the sales will be used by BP to increase the cash available to the group. The aggregate proceeds for the deals is $7 billion, subject to customary post-completion price adjustments, such proceeds to be paid in cash. Each sale will take place through a separate agreement between BP and Apache, and none of the sales will be conditional on completion of any of the other sales occurring. Although each of the transactions is subject to certain regulatory approvals, it is expected that they will all be completed during the third quarter of 2010. Apache is due to pay BP a cash deposit of $5 billion in aggregate on July 30, 2010. The deposit is split $3.25 billion for Canada, $1.5 billion for Permian and $0.25 billion for Egypt. For the sale of the Western Canadian upstream gas assets, the relevant BP selling entity will issue a convertible debenture in favor of Apache in an amount equivalent to the sale price for such assets. The debenture will automatically exchange for the assets that are sold to Apache on closing of the transaction. For each sale, in the event that any third party exercises any pre-emption rights over any asset being sold, the relevant price payable by Apache will be correspondingly reduced to take into account that it will not acquire such asset and the proceeds for the sale of such asset will instead be received by BP from the third party. For the sale of the Western Canadian gas assets, any such pre-emption exercise will adjust the amount of the convertible debenture accordingly and require a corresponding portion of the $3.25 billion deposit to be repaid to Apache. For each sale, in the event that the necessary regulatory approvals are not obtained by a certain date (for the Permian Basin assets sale this is October 29, 2010; for the Western Canadian gas asset sale this is January 31, 2011; and for the Egyptian asset sale this is July 19, 2011), BP will be required to repay the relevant deposit to Apache or, in the case of the Western Canadian gas asset sale, the convertible debenture. BP plc has guaranteed such repayment obligations. The aggregate replacement cost profit (before interest and taxation) attributable to the assets to be sold in these deals for the year ended December 31, 2009 was US$166 million. The aggregate value of the gross assets (net of accumulated depreciation) to be sold in these deals as at June 30, 2010 was $3.085 billion (with a net book value of tangible and intangible assets included in this number as of July 20 of $2.998 billion). BP Chairman, Carl-Henric Svanberg, said, "Over the last two months the Board has considered BP's options for generating the cash necessary to meet the obligations likely to arise from the Gulf of Mexico oil spill. BP has an extremely strong asset base which is diversified geographically as well as by asset class. The Board believes that there are opportunities to divest assets which are strategically more valuable to other parties than they are to BP. [The] announcement is the first such transaction and meets the value and strategic criteria of both parties." The Wall Street Journal's Guy Chazan and Gina Chon report that a BP spokesman stressed the assets sold to Apache were mature, not part of BP's core portfolio, and represented only 2.3% of the company's global oil and gas production. He said the company had received a price equivalent to 6.5% of its current market value for only 2% of its reserves of oil and gas. The Journal says Apache was advised by Goldman Sachs Group, BofA Merrill Lynch, Citigroup and JP Morgan Chase & Co. Standard Chartered acted as BP's advisers. On July 19, BP said almost 116,000 claims have been submitted and more than 67,500 payments have been made, totaling $207 million. BP also said the cost of the response to date amounts to approximately $3.95 billion, including the cost of the spill response, containment, relief well drilling, grants to the Gulf states, claims paid, and federal costs. On June 16, BP announced an agreed package of measures, including the creation of a $20 billion fund to satisfy certain obligations arising from the oil and gas spill. It is too early to quantify other potential costs and liabilities associated with the incident, BP 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%. BRADLEY ANDERSON: Case Summary & 15 Largest Unsecured Creditors --------------------------------------------------------------- Joint Debtors: Bradley Scott Anderson Lisa Lynn Anderson 29609 N 153rd St. Scottsdale, AZ 85262-8110 Bankruptcy Case No.: 10-22096 Chapter 11 Petition Date: July 14, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Randolph J. Haines Debtor's Counsel: Andrew M. Ellis, Esq. 4340 E Indian School Rd, Suite 21-234 P.O. Box 16272 Phoenix, AZ 85011-6272 Tel: (602) 524-8911 E-mail: Andrew.Ellis@azbar.org Scheduled Assets: $783,986 Scheduled Debts: $2,939,601 A list of the Joint Debtors' 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-22096.pdf The petition was signed by the Joint Debtors. BROWN PUBLISHING: Committee's Bid to Stop Credit Bid Fails ---------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the bankruptcy cases of The Brown Publishing Company and its affiliates failed in its bid to prohibit Brown Publishing's first lien lender bank group from credit bidding its debt in an auction for the Debtors' assets, Bill Rochelle at Bloomberg News reported. According to the report, the U.S. Bankruptcy Court for the Eastern District of New York rejected a request by the Committee to only allow cash bids at the auction. The first lien lenders are owed roughly $72.7 million as of the bankruptcy filing. The Debtors have received authority to conduct an auction on July 19, with initial bids due on July 16. The Bankruptcy Court will consider approval of the results of the auction on July 22. 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. BRUCE FROST: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Joint Debtors: Bruce William Frost Deborah Louise Frost 2515 W. Limewood Drive Tucson, AZ 85755 Bankruptcy Case No.: 10-22174 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: James M. Marlar Debtor's Counsel: Eric Slocum Sparks, Esq. 110 S Church Ave. #2270 Tucson, AZ 85701 Tel: (520) 623-8330 Fax: (520) 623-9157 E-mail: eric@ericslocumsparkspc.com Scheduled Assets: $708,742 Scheduled Debts: $1,828,175 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-22174.pdf The petition was signed by the Joint Debtors. BUD'S CAR: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Bud's Car Wash Mountain Road, LLC 11617 Hunters Run Drive Cockeysville, MD 21030 Bankruptcy Case No.: 10-26052 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court District of Maryland (Baltimore) Judge: Nancy V. Alquist Debtor's Counsel: James Greenan, Esq. McNamee, Hosea, et. al. 6411 Ivy Lane, Suite 200 Greenbelt, MD 20770 Tel: (301) 441-2420 E-mail: jgreenan@mhlawyers.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company says that assets total $45,723 while debts total $4,629,977. A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb10-26052.pdf The petition was signed by Charles W. Irwin, Jr., managing member. C&D TECHNOLOGIES: Receives Notice Regarding NYSE Listing -------------------------------------------------------- C&D Technologies, Inc. received notification from the New York Stock Exchange that the Company has fallen below the continued listing standard which requires a minimum average closing price of $1.00 per common share over thirty consecutive trading days. Under NYSE rules, the Company has a period of six months following receipt of the notification to bring its average common share price above $1.00 per share for thirty consecutive trading days in order to avoid delisting of its common shares on the NYSE. The Company's common stock will continue to be listed on the NYSE during this six month interim period, subject to compliance with other NYSE continued listing requirements and the NYSE's right to reevaluate continued listing determinations. The Company plans to notify the NYSE that it intends to cure this deficiency in accordance with the NYSE rules. About C&D Technologies C&D Technologies, Inc. -- http://www.cdtechno.com. -- provides solutions and services for the switchgear and control (utility), telecommunications, and uninterruptible power supply (UPS), as well as emerging markets such as solar power. C&D Technologies engineers, manufactures, sells and services fully integrated reserve power systems for regulating and monitoring power flow and providing backup power in the event of primary power loss until the primary source can be restored. C&D Technologies is headquartered in Blue Bell, PA. CALEB TECTOR: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Joint Debtors: Caleb D. Tector Stephanie J. Larson P.O. Box 100 PMB 583 Mammoth Lakes, CA 93546 Bankruptcy Case No.: 10-38738 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Christopher M. Klein Debtor's Counsel: Michael J. Jaurigue, Esq. 411 N Central Avenue, #310 Glendale, CA 91203 Tel: (818) 432-3220 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Joint Debtors' list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/caeb10-38738.pdf The petition was signed by the Joint Debtors. CALIFORNIA COASTAL: Reaches Deal with Secured Lenders on Plan ------------------------------------------------------------- Bankruptcy Law360 reports that California Coastal Communities Inc. has reached a settlement with its prepetition secured lenders, waiving more than $6 million in default interest claims and clearing the way for approval of the Company's bankruptcy plan. California Coastal and the lenders' agent Wilmington Trust FSB asked the U.S. Bankruptcy Court for the Central District of California in a joint motion Friday, according to Law360. California Coastal has arranged a $182 million loan from Luxor Capital Group LP to be able to pay off secured lenders in cash. The Plan pays unsecured creditors in full, without interest, over two years. The confirmation hearing for approval of the Plan is scheduled for July 27. About California Coastal Irvine, Calif.-based California Coastal Communities, Inc. -- http://www.californiacoastalcommunities.com/-- is a residential land development and homebuilding company with properties owned or controlled primarily in Orange County, California, and also in Lancaster in Los Angeles county. The Company's primary asset is a 356-home luxury coastal community known as Brightwater in Huntington Beach, California. California Coastal Communities, Inc. and certain of its direct and indirect wholly-owned subsidiaries filed for Chapter 11 bankruptcy protection on October 27, 2009 (Bankr. C.D. Calif. Case No. 09- 21712). Joshua M. Mester, Esq., who has an office in Los Angeles, California, assists the Debtors in their restructuring efforts. In their petition, the Debtors listed between $100 million and $500 million in assets and between $100 million and $500 million of debts. On March 26, 2010, the Company filed a proposed disclosure statement and proposed joint plan of reorganization with the Bankruptcy Court, neither of which has been approved. The proposed joint plan provides for the extension of the Revolving Loan and the Term Loan to enable the Company to complete construction and sale of the homes at its Brightwater project. A majority of the Company's lenders are opposed to the plan as filed. At March 31, 2010, the Company's balance sheet showed $249.0 million in assets, $218.0 million of liabilities, and $31.0 million of stockholders' equity. CALYPTE BIOMEDICAL: Issues 152,341,741 Shares to Marr Tech ---------------------------------------------------------- Calypte Biomedical Corporation has agreed to issue 152,341,741 shares of common stock to Marr Technologies B.V. upon the conversion of $6,393,353.11 in outstanding indebtedness and 47,815,698 shares of common stock to SF Capital Partners Limited upon the conversion of $2,008,259.35 in outstanding indebtedness. The shares will be issued in reliance upon the exemption from registration under Section 4(2) of the Securities Act of 1933. As reported by the Troubled Company Reporter on July 13, 2010, Calypte has entered into a series of agreements providing for (i) the restructuring its outstanding indebtedness to Marr and SF Capital and (ii) Calypte's transfer of its interests in two Chinese joint ventures with Marr affiliates to Kangplus (China) Holdings Ltd. The Joint Ventures consist of Beijing Marr Bio- Pharmaceuticals Co., Ltd., in which Calypte holds a 51% equity and Marr Technologies Asia Limited holds a 49% equity interest, and Beijing Calypte Biomedical Technology Ltd., in which Calypte holds a 51% equity and Marr Technologies Limited holds a 49% equity interest. Marr and SF Capital are principal stockholders of Calypte. As of December 31, 2009, based on their most recent Schedule 13D or 13G filings Marr and SF Capital were the beneficial owners of approximately 18.8% and 5.2%, respectively, of Calypte's Common Stock. About Calypte Biomedical Portland, Ore.-based Calypte Biomedical Corporation develops, manufactures, and distributes in vitro diagnostic tests, primarily for the diagnosis of Human Immunodeficiency Virus infection. Odenberg, Ullakko, Muranishi & Co. LLP, in San Francisco, has expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has defaulted on $6.3 million of 8% Convertible Promissory Notes and related Interest Notes and $5.2 million of 7% Promissory Notes, has suffered recurring operating losses and negative cash flows from operations, and management believes that the Company's cash resources will not be sufficient to sustain its operations through 2010 without additional financing. CATHOLIC CHURCH: Sapp Files in Spokane Case to be Opened -------------------------------------------------------- Judge Patricia C. Williams of the United States Bankruptcy Court for the Eastern District of Washington granted the Archdiocese of Portland in Oregon's request to unseal Shamont Sapp's files in the bankruptcy case of The Catholic Bishop of Spokane, also known as The Catholic Diocese of Spokane. Judge Williams ruled that (i) the proof of claim, if any, filed by Mr. Sapp with the Spokane bankruptcy case prior to the claims bar date, and (ii) any written materials submitted by Mr. Sapp, if any, and only written materials he submitted, to the Tort Claim Reviewer or to Spokane in support of his claim or in answer to questions by the TCR or Spokane, will be unsealed. Any party having copies of Mr. Sapp's confidential files are authorized to produce the files to Portland. If the TCR incurs any expenses in connection with the production of the materials from Mr. Sapp, Portland will pay the TCR's reasonable fees and expenses. Sapp Opposes Unsealing of Files In a letter addressed to the Spokane Bankruptcy Court, Mr. Sapp objects to the order unsealing his claim because "the case in Portland Oregon was dismissed with prejudice on 7-9-10 at my request." As previously reported, Mr. Sapp sent a letter to Larry E. Prince, Spokane's Future Claims Representative, to notify the parties that Mr. Sapp withdrew his lawsuit currently pending before the Honorable Magistrate Judge Paul Papak in the United States District Court for the District of Oregon. Portland's counsel, Thomas V. Dulcich, Esq., at Schwabe, Williamson & Wyatt, P.C., in Portland, Oregon, was also sent a copy of that correspondence. The Spokane Bankruptcy Court convened a hearing on June 28, 2010, to consider the Motion to Unseal. The counsel for the Portland Archdiocese knew of my motion to dismiss prior to the 6-28-10 phone meeting with you, Mr. Sapp told Judge Williams. They want the records out of curiosity rather than need, he added. About The Diocese of Spokane The Roman Catholic Church of the Diocese of Spokane filed for chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on Dec. 6, 2004. Michael J. Paukert, Esq., at Paine, Hamblen, Coffin, Brooke & Miller, LLP, represents the Spokane Diocese in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $11,162,938 in total assets and $81,364,055 in total debts. The Diocese of Spokane, the Tort Claimants Committee, the Future Claims Representative, and the Executive Committee of the Association of Parishes delivered an Amended Plan of Reorganization, and a Disclosure Statement describing that Plan to the Court on Feb. 1, 2007. The Honorable Patricia C. Williams approved the disclosure statement on March 8, 2007. On April 24, 2007, the Court confirmed Spokane's second amended joint plan. That plan is effective May 31, 2007. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CATHOLIC CHURCH: Wilmington Wants Plan Exclusivity Until Oct. 28 ---------------------------------------------------------------- The Catholic Diocese of Wilmington, Inc., asks the U.S. Bankruptcy Court for the District of Delaware to extend its exclusive periods to: (a) file a Chapter 11 plan of reorganization through and including October 28, 2010; and (b) solicit acceptances of that plan through and including December 30, 2010, without prejudice to ask for further extensions. The Diocese's Exclusive Plan Filing Period expires on July 30, 2010. James L. Patton, Jr., Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, relates that at the direction of the mediators in the bankruptcy case, the Diocese, the Official Committee of Unsecured Creditors, the Official Committee of Lay Employees, the Diocese's liability insurers and certain other parties participated in mediation sessions last June 25 to 27 and July 2 to 3, 2010, with the goal of negotiating a consensual Chapter 11 plan. The Court previously assigned all issues relating to the bankruptcy case to mediation and appointed the Honorable Kevin Gross and former Judge Thomas Rutter as co-mediators. While the initial mediation sessions did not result in a negotiated plan, progress was made on several fronts and the Mediators have decided to reconvene the mediation in late August or early September 2010, with date and time to be determined, Mr. Patton discloses. On June 28, 2010, the Court issued an opinion holding that the Diocese's pooled investment account is property of the bankruptcy estate, except for the investment made by St. Ann's Roman Catholic Church. Counsel for the Creditors Committee proposed a form of order in connection with the Opinion, and the Diocese and the Non- Debtor Defendants provided comments on the form of order. As of July 15, 2010, the order has not been submitted, Mr. Patton says. The Non-Debtor Defendants subsequently asked the Court to reconsider the Opinion, and the Diocese joined in the request. The Creditors Committee objected to the Motion for Reconsideration. Against this backdrop, Mr. Patton argues that an extension of the Exclusive Periods is warranted because of the significant unresolved contingencies in the bankruptcy case. He points out that several factors weigh in favor of granting the sought extension and that in order to move forward with a plan of reorganization, the case's complex issues must first be resolved, including the determination as to the ownership of funds held in the PIA. Irrespective of the ultimate result of the adversary proceeding regarding the PIA, there are other significant unresolved contingencies that make it difficult, if not impossible, for the Diocese either to (i) formulate a unilateral plan of reorganization, or (ii) negotiate with its creditors to formulate a consensual plan before expiration of the Exclusive Filing Period, Mr. Patton continues. He notes that the Court-ordered mediation will extend beyond the Exclusive Filing Period. Mr. Patton further contends, among other things, that since the inception of the case, the Diocese has progressed in good faith towards reorganization, including responding to a multitude of expedited discovery requests and participating in litigations, and the implementation of a global mediation process by the Court to facilitate a consensual resolution of the case. Judge Sontchi will convene a hearing on August 30, 2010, at 2:00 p.m., to consider the Diocese's request. Objections are due on July 29. Pursuant to Del.Bankr.L.R. 9006-2, the Diocese's Exclusive Plan Filing Period is automatically extended until the conclusion of that hearing. About the Diocese of Wilmington The Diocese of Wilmington covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics. The Delaware diocese is the seventh Roman Catholic diocese to file for Chapter 11 protection to deal with lawsuits for sexual abuse. Previous filings were by the dioceses in Spokane, Washington; Portland, Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and San Diego, California. The bankruptcy filing automatically stayed eight consecutive abuse trials scheduled in Delaware scheduled to begin October 19. There are 131 cases filed against the Diocese, with 30 scheduled for trial. The Diocese filed for Chapter 11 on Oct. 18, 2009 (Bankr. D. Del. Case No. 09-13560). Attorneys at Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC is the financial advisor. The petition says assets range $50,000,001 to $100,000,000 while debts are between $100,000,001 to $500,000,000. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Wilmington Wants Removal Period Until Oct. 28 -------------------------------------------------------------- The Catholic Diocese of Wilmington, Inc., asks the U.S. Bankruptcy Court for the District of Delaware to extend to October 28, 2010, the period within which it may remove various civil actions pending as of the Petition Date. The Diocese also asks Judge Sontchi that the proposed October 28 Removal Period apply to all matters specified in Rules 9027(a)(2)(A), (B) and (C) of the Federal Rules of Bankruptcy Procedure. The Diocese asks that the order approving the request be without prejudice to (i) any position the Diocese may take regarding whether Section 362 of the Bankruptcy Code applies to stay any given civil action pending against the Diocese, and (ii) the right to seek further extensions of the Removal Period. The Diocese's current Removal Period expires on July 30, 2010. There is ample cause to extend the deadline for removal of the Actions, given that the Actions assert personal injury tort claims over which the Bankruptcy Court has limited subject-matter jurisdiction, and the liquidation and estimation of the claims in the U.S. District Court for the District of Delaware may well be necessary to move the case forward, James L. Patton, Jr., Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, argues. He also points out that the Bankruptcy Court-ordered mediation is ongoing, but will not resume again until after the Current Deadline expires. The Diocese is hopeful the mediation will result in a consensual Chapter 11 plan or reorganization that provides for the liquidation of personal injury tort claims through an appropriate alternative dispute resolution process, Mr. Patton asserts. In the absence of a consensual plan, however, the Diocese may need to invoke the District Court's jurisdiction to liquidate and estimate personal injury tort claims against the Diocese, he explains. If the Current Deadline is not extended, the Diocese may have no choice but to remove the Actions immediately to preserve alternative to a negotiated solution, Mr. Patton argues. He contends that the removal could result in motion practice under Section 1452(b) of the Judicial and Judiciary Procedures Code, which would be costly to the bankruptcy estate and would distract the Diocese and other parties-in-interest from their efforts on negotiating a consensual and swift resolution of the case. In the event a consensual plan is ultimately negotiated, which provides an ADR mechanism for liquidation of personal injury tort claims, the removal and motion practice may have been entirely unnecessary, Mr. Patton avers. Largely as a result of the adversary proceeding regarding the Diocese's pooled investment account and the mediation, Mr. Patton asserts that in the months since the second extension motion was filed, the Diocese has not had a sufficient opportunity to address whether any Actions to which it is a party should be removed. The Diocese submits that granting this additional opportunity to consider removal of the Actions will assure that its decisions are fully informed and consistent with the best interests of its estate. Judge Sontchi will convene a hearing on August 30, 2010, to consider the request. Objections are due July 28. Pursuant to Del.Bankr.L.R. 9006-2, the Removal Period is automatically extended until the conclusion of that hearing. About the Diocese of Wilmington The Diocese of Wilmington covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics. The Delaware diocese is the seventh Roman Catholic diocese to file for Chapter 11 protection to deal with lawsuits for sexual abuse. Previous filings were by the dioceses in Spokane, Washington; Portland, Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and San Diego, California. The bankruptcy filing automatically stayed eight consecutive abuse trials scheduled in Delaware scheduled to begin October 19. There are 131 cases filed against the Diocese, with 30 scheduled for trial. The Diocese filed for Chapter 11 on Oct. 18, 2009 (Bankr. D. Del. Case No. 09-13560). Attorneys at Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC is the financial advisor. The petition says assets range $50,000,001 to $100,000,000 while debts are between $100,000,001 to $500,000,000. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CBGB HOLDINGS: Hearing on Bid to Dismiss Case Set for July 27 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on July 27, 2010, to consider a bid to dismiss CBGB Holdings LLC's bankruptcy case. Jacqueline Palank at Dow Jones Daily Bankruptcy Review reports that CBGB Holdings LLC disputes allegations by the estate of punk- rock club CBGB founder Hilly Kristal that it's letting the shuttered club's memorabilia go to waste and failing to protect its lucrative trademarks. CBGB Holdings also argues it's more likely that it overpaid for the assets. The Kristal estate is asking a bankruptcy judge to either dismiss CBGB Holdings' bankruptcy filing or lift the shield protecting the company from foreclosures and lawsuits. According to Dow Jones, the Debtor asserted that any erosion of asset value is due to the bitter family feud that roiled the Kristals in the wake of club founder's death in 2007. Mr. Kristal died about one year after the club's closure amid negotiations with CBGB Holdings. After Mr. Kristal's death, his ex-wife and son faced off in court with Mr. Kristal's daughter (who inherited most of her father's estate) over the ownership of the assets. "The closing of the CBGB club, the death of Hilly Kristal, the subsequent interfamily litigation, and the lengthy period the Kristal estate allowed the business to lay dormant while litigating with the debtor, also served to diminish the value of the CBGB business and CBGB assets below the agreed purchase price of $3.5 million," CBGB Holdings said in court papers, according to Dow Jones. Dow Jones also reports the Debtor said legal costs and delays prompted by the Kristal family lawsuit resulted in many lost publicity and merchandising opportunities, further contributing to the deterioration in the value of the CBGB assets as of the petition date. To help resolve the dispute, according to Dow Jones, CBGB Holdings said it's willing to pay Mr. Kristal's estate the interest due since its June 11 bankruptcy filing, to the tune of $10,000 per month. CBGB Holdings LLC purchased the name and copyrights associated with Manhattan's legendary punk-rock club CBGB in 2008. CBGB Holdings filed for bankruptcy on June 11, 2010 (Bankr. S.D.N.Y. Case No. 10-13130). Judge Stuart M. Bernstein presides over the case. Kenneth A. Reynolds, Esq., at McBreen & Kopko, in Jericho, New York, serves as the Debtor's counsel. The petition listed both assets and debts from $1,000,001 to $10,000,000. CENTERPLATE INC: S&P Assigns 'B' Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its preliminary 'B' corporate credit rating to U.S. concessions operator Centerplate Inc. S&P also assigned its preliminary 'B+' issue rating to the company's proposed $314 million senior secured credit facility, which consists of a five-year $50 million revolving credit facility, a five-year $50 million term loan A, a six-year $194 million term loan B, and a five-year $20 million synthetic letter of credit facility. At the same time, S&P assigned its preliminary recovery rating of '2' to the credit facility, indicating that S&P expects substantial (70% to 90%) recovery for lenders in the event of a payment default or bankruptcy. The borrowers under the bank credit facility are Volume Services America Inc. and other domestic subsidiaries, with parent Centerplate and certain subsidiaries providing guarantees. The outlook is stable. The ratings are based on preliminary terms and assume the proposed transaction closes on substantially the same terms as presented to us. S&P expects total debt outstanding at close to be approximately $310 million. "The ratings on Centerplate reflect the low-value-added and cyclical nature of demand for the company's services, an intensely competitive operating environment, a highly leveraged capital structure, and an aggressive financial policy," said Standard & Poor's credit analyst Jerry Phelan. The company benefits from its position as the No. 2 competitor in the industry, recent margin enhancement actions, and modest level of contract renewals of the next few years. CENTRAL METAL: Court to Consider Amended Plan Outline Tomorrow -------------------------------------------------------------- The Hon. Vincent P. Zurzolo of the U.S. Bankruptcy Court for the Central District of California will consider tomorrow, July 22, 2010, at 1:30 p.m., the hearing on approval of the Disclosure Statement explaining Central Metal, Inc.'s amended Plan of Reorganization. The hearing will be held at Courtroom 1368, 255 E. Temple St., Los Angeles, California. The Debtor amended its Plan because the Court said that the Disclosure Statement, even with the modifications reflected in the supplement, does not contain adequate information as required by 11 U.S.C. Section 1125 for these reasons: -- there were problems with the proposed treatment of claims and interests; -- certain exhibits were not attached; -- there were inadequate or no information regarding the basis for valuation e.g. income or sales approach; and the qualifications of person rendering valuation opinion. As reported in the Troubled Company Reporter on May 19, according to the Disclosure Statement, the Plan provides that on the effective date, the disbursing agent will deposit into a segregated account an amount of cash equal to 100% of the estimated distribution to be paid on the disputed portion of any claim. Cash together with interest accruing thereon will be held in trust for the benefit of holders of disputed claims. Under the Plan, all secured claims will be paid in full from the post-confirmation income of the Debtor. Priority unsecured claims amounting to $1,988 will be paid in full from the post-confirmation income of the Reorganized Debtor. All general unsecured claims amounting to $1,000,000 will be paid in four payments, each at $250,000. Interest holder, Jong Uk Byun will receive no payments under the Plan. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/CENTRALMETAL_amendedDS.pdf About Central Metal, Inc. Huntington Park, California-based Central Metal, Inc., is a fully integrated scrap metal processing company that purchases, processes and sells ferrous and non-ferrous metals domestically and internationally. The Company is one of the largest processing companies on the West Coast, has one of the largest land sites and processing capacities, and is fully diversified in its business portfolio that entails dynamic trading relationships with renowned metal manufacturers around the world. The Company filed for Chapter 11 bankruptcy protection on January 8, 2010 (Bankr. C.D. Calif. Case No. 10-10642). Juliet Y. Oh, Esq., who has an office in Los Angeles, California, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. CENTURION PROPERTIES: Gets 1st Interim OK to Use Cash Collateral ---------------------------------------------------------------- Centurion Properties III, LLC, sought and obtained a first interim authorization from the U.S. Bankruptcy Court for the Eastern District of Washington to use the cash collateral of General Electric Capital Corporation. John D. Munding, Esq., at Crumb & Munding, P.S., the attorney for the Debtor, explained that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. The Debtor is authorized to use cash collateral held in the Lockbox for payment of: a. The July 14, 2010 - Task Order Request of up to $123,501; b. The July 14, 2010 - Service Order Request of up to $133,315; c. on an interim basis, $82,000 to the Debtor, for purposes of maintenance and repair expenses of the Debtor's Battelle property. The money will be placed in the Debtor's account, with expenditures there from accounted for by the Debtor within 30 days of the date expended; d. The July 31, 2010 - Task Order and Services Order Requests to be submitted to GECC by the Debtor in a similar manner to the Task Order and Service Order requests of July 14, 2010, which will be paid and funds released from the Lockbox to the Debtor upon approval by GECC. GECC is directed to instruct Deutsche Bank to release from the Lockbox to the Debtor about $338,816, subject to confirmation that the expenses covered by the Task Order Request and Service Order Request are for expenses related to the maintenance and repair of the Bartelle property. GECC is authorized to instruct Deutsche Bank to release from the Lockbox to GECC $330,000, representing the uncontested minimum amount of adequate protection payment that GECC is entitled to receive for July 2010. GECC will retain its senior lien position on the Battelle property. The Court has set another interim hearing for August 10, 2010, at 10:30 a.m. to consider the Debtor's proposed new budget and the issue of the lock box. A pre-trial conference will be held on September 1, 2010, at 10:00 a.m. by telephone conference call, before that date Mr. Munding will have exchanged all exhibits and appraisals, and will file a list of exhibits and witnesses with the Court. The final cash collateral hearing is set for September 9, 2010, at 9:30 a.m. Kennewick, Washington-based Centurion Properties III, LLC, filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. E.D. Wash. Case No. 10-04024). John D. Munding, Esq., at Crumb & Munding, assists the Company in its restructuring effort. The Company estimated its assets and debts at $50,000,001 to $100,000,000. CENTURION PROPERTIES: Section 341(a) Meeting Scheduled for Aug. 26 ------------------------------------------------------------------ The U.S. Trustee for Region 18 will convene a meeting of Centurion Properties III, LLC's creditors on August 26, 2010, at 10:00 a.m. The meeting will be held at Richland Federal Building, 825 Jadwin Avenue, Richland, WA. 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. Kennewick, Washington-based Centurion Properties III, LLC, filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. E.D. Wash. Case No. 10-04024). John D. Munding, Esq., at Crumb & Munding, assists the Company in its restructuring effort. The Company estimated its assets and debts at $50,000,001 to $100,000,000. CENTURION PROPERTIES: Taps Crumb & Munding as Bankruptcy Counsel ---------------------------------------------------------------- Centurion Properties III, LLC, has asked for authorization from the U.S. Bankruptcy Court for the Eastern District of Washington to employ Crumb & Munding, P.S., as bankruptcy counsel. Crumb & Munding will provide legal representation of the Debtor in all aspects of the Chapter 11 proceeding. Crumb & Munding will be paid based on the hourly rates of its personnel: John D. Munding $325 Associates $150 Legal Assistants $50 Interns/Clerks $50 To the best of the Debtor's knowledge, Crumb & Munding is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Kennewick, Washington-based Centurion Properties III, LLC, filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. E.D. Wash. Case No. 10-04024). The Company estimated its assets and debts at $50,000,001 to $100,000,000. CHARLES IRWIN, JR.: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Joint Debtors: Charles W. Irwin, Jr. Judith G. Irwin 11617 Hunters Run Drive Cockeysville, MD 21030 Bankruptcy Case No.: 10-26059 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court District of Maryland (Baltimore) Judge: Robert A. Gordon Debtor's Counsel: James A. Vidmar, Jr., Esq. Logan, Yumkas, Vidmar & Sweeney LLC 2530 Riva Road, Suite 400 Annapolis, MD 21401 Tel: (443) 569-5977 Fax: (410) 571-2798 E-mail: jvidmar@loganyumkas.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Joint Debtors' list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb10-26059.pdf The petition was signed by the Joint Debtors. Debtor-affiliates filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- AMR Inc. 10-26054 07/16/10 Bud's Car Wash Mountain Road, LLC 10-26052 07/16/10 CHEMTURA CORP: Trustee, Others Object to Disclosure Statement ------------------------------------------------------------- Bankruptcy Law360 reports that multiple parties in the Chemtura Corp. bankruptcy, including the U.S. Trustee in the case, have objected to Chemtura's disclosure statement, with many arguing the statement fails to address chemical exposure and environmental claims pending against the company. The Amended Plan Chemtura on July 9 filed a revised Plan of Reorganization. Chemtura says that, as with the June version of the Plan, the revised Plan provides the potential to satisfy all creditors' claims in full, as well as offering value to equity holders. The revised Plan provides that in order to resolve certain asserted diacetyl liabilities, Chemtura's Canadian subsidiary, Chemtura Canada Co./Cie, will be filing for protection along with the current U.S. Debtors under Chapter 11 of the Bankruptcy Code, together with a recognition proceeding in Canada under the Companies' Creditors Arrangement Act. Chemtura maintains that it remains on track to emerge from Chapter 11 protection in the coming months. Under the Amended Plan, the New Chemtura Total Enterprise Value consists of $2.05 billion plus, total cash available to satisfy allowed unsecured claims, plus the amount of cash to be retained after the Effective Date, which is expected to be approximately $125 million. Redlined copies of the Chemtura Amended Plan and Disclosure Statement is available for free at: http://bankrupt.com/misc/ChemAmPlanRed.pdf http://bankrupt.com/misc/ChemAmDSRed.pdf About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation (CEM) -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 on March 18, 2009 (Bankr. S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel. Wolfblock LLP serves as the Debtors' special counsel. The Debtors' auditors and accountant are KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors are Joele Frank, Wilkinson Brimmer Katcher; their business advisors are Alvarez & Marsal LLC and Ray Dombrowski serves as their chief restructuring officer; and their claims and noticing agent is Kurtzman Carson Consultants LLC. As of December 31, 2008, the Debtors had total assets of $3.06 billion and total debts of $1.02 billion. Bankruptcy Creditors' Service, Inc., publishes Chemtura Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Chemtura Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHRYSLER LLC: Old Chrysler Settles Environment Claim in Ohio ------------------------------------------------------------ Bill Rochelle at Bloomberg News reports that Old Chrysler, formally named Old Carco LLC, agreed with regulators to pay $500,000 to settle more than $40 million in environmental claims related to a former plant in Dayton, Ohio. Based in Auburn Hills, Michigan, Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep, Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars brand vehicles and products. Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CIRCUIT CITY: Proposes July 29 Auction for Virginia Property ------------------------------------------------------------ Pursuant to Sections 105, 363, 365 and 503 of the Bankruptcy Code, and Rules 2002, 6004 and 6006 of the Federal Rules of Bankruptcy Procedure, Circuit City Stores, Inc., and its debtor affiliates ask the U.S. Bankruptcy Court for the Eastern District of Virginia: (i) for authority for the seller, Circuit City, to enter into an agreement, dated June 21, 2010, with the purchaser, DRCC Properties, LLC, for the sale of certain property located at Deep Run Business Park in Richmond, Virginia, subject to higher or otherwise better proposals; (ii) to approve a proposed termination fee; (iii) to approve proposed bidding procedures; (iv) to approve the Sale free and clear of all liens; and (v) to approve the assumption, assignment and sale of certain leases associated with the Property free and clear of all Liens. The property comprises approximately 18.5 acres in Deep Run Business Park in Richmond, Virginia. Circuit City has divided, and leases, the Property as two parcels to (i) Bank of America, N.A., successor-by-merger to LaSalle Bank National Association, as trustee for Registered Holders of Bear Stearns Commercial Mortgage Securities Inc., Commercial Mortgage Pass-Through Certificates, Series 2000-WF 1, acting by and through Berkadia Commercial Mortgage LLC, its special servicer, as successor-in- interest to CRA Acquisition Corp., and (ii) Children's Discovery Centers of America, Inc. The Sale of the Property would be subject to the Leases, which would be assigned to any purchaser of the Property. Upon the Property sits an office building, known as 9950 Mayland Drive, that the Seller previously leased for use as its corporate headquarters, and a day care center, known as 3900 Deep Rock Road. The Property does not include any improvements situated on the land, including, but not limited to, the Office Building or Day Care Center, according to Douglas M. Foley, Esq., at McGuireWoods LLP, in Richmond, Virginia. Since the going-out-of-business sales were commenced, Circuit City, along with its real estate advisor, DJM Realty, LLC, has been marketing the Property. Circuit has received various proposals to purchase the Property and has determined that the proposal submitted by DRCC Properties was considerably higher or otherwise better than the alternate proposals received. Agreement According to Mr. Foley, the salient terms of the Agreement include: (a) Circuit City has agreed to sell the Property and assign the Leases to DRCC Properties for $2,750,000, subject to higher or otherwise better proposals. The Purchaser would acquire the Seller's right, title and interest in the Property together with all rights and appurtenances pertaining to the land comprising the Property including, without limitation, the Leases. (b) Possession of the Property would be delivered "AS IS, WHERE IS." The Property would be sold free and clear of all liens, including the liens of Circuit City's postpetition lenders and liens for past-due real property taxes; claims and encumbrances except for certain "Permitted Encumbrances." The Permitted Encumbrances include (1) liens for real property taxes and assessments that are not yet due and payable; (2) zoning ordinances, building codes and other land use laws and applicable governmental regulations; (3) all covenants, agreements, conditions, easements, restrictions and rights of record as of the date of the Agreement; (4) the Leases; and (5) any and all matters that would be shown by a physical inspection of the Property. (c) DRCC Properties has placed $275,000 into an escrow account with Midtown Agency. If the Sale is consummated under the Agreement, the Deposit will be applied to the Purchase Price. If the Agreement is terminated because of the Purchaser's breach of the Agreement, Circuit City, among other things, would be entitled to the Deposit. If the Agreement is terminated because of the Seller's breach, the Purchaser may demand return of the Deposit or specific performance of the Agreement, subject to the Court's approval. (d) Unless otherwise agreed by the parties, the closing would occur within 20 days after entry of a sale order. (e) The Agreement could be terminated before the Closing in these circumstances: (1) by the Purchaser, if an action is initiated to take any material portion of the Property by eminent domain proceedings; (2) by either party, if the other is in breach of the Agreement; (3) by the Seller, in order to permit the Seller to accept a higher or better offer for the Property; or (4) by either party if the Court has not entered the Sale Order on or before 90 days from the date of the Agreement. Mr. Foley tells the Court that Circuit City has agreed to the Termination Fee in recognition of DRCC's expenditure of time, energy, and resources. If DRCC Properties is not permitted to purchase the Property pursuant to this sale process, Circuit City has agreed to pay the Purchaser $75,000 as reimbursement for the Purchaser's time, expenses and costs incurred in connection with the Agreement, pursuant to certain conditions in the Agreement. DRCC Properties is unwilling to keep open its offer to purchase the Property under the terms of the Agreement unless the Court authorizes payment of the Termination Fee, Mr. Foley says. Proposed Bidding Procedures Circuit City proposes a bid deadline of July 27, 2010, at 4:00 p.m., Eastern Time, for any parties, including those that previously submitted proposals, to submit an alternate proposal for consideration. All bids must be sent to: (1) Circuit City Stores, Inc. 4951 Lake Brook Drive, P.O. Box 5695 Glen Allen, Virginia Attn: Katie Bradshaw E-mail: katie.bradshaw@ccswinddown.com (2) Counsel to the Seller, Gregg M. Galardi and Ian S. Fredericks Skadden, Arps, Slate, Meagher & Flom LLP One Rodney Square, P.O. Box 636 Wilmington, Delaware E-mail: gregg.galardi@skadden.com E-mail: ian.fredericks@skadden.com Kellan Grant Skadden, Arps, Slate, Meagher & Flom LLP 155 North Wacker Dr. Chicago, Illinois E-mail: t.kellan.grant@skadden.com Douglas M. Foley McGuireWoods, LLP One James Center, 901 East Cary St. Richmond, Virginia E-mail: dfoley@mcguirewoods.com (3) Counsel to the Official Committee of Unsecured Creditors Jeff Pomerantz Pachulski Stang Ziehl & Jones LLP 10100 Santa Monica Blvd., 11th Floor Los Angeles, California E-mail: jpomerantz@pszjlaw.com John Morris Pachulski Stang Ziehl & Jones LLP 380 3rd Ave., 36th Floor New York E-mail: jmorris@pszjlaw.com (4) DJM Realty Services, LLC 445 Broadhollow Road, Suite 225 Melville, New York Attn: James Avallone Fax: (631) 752-1231 E-mail: javallone@djmrealty.com Circuit City may extend the Bid Deadline once or successively, and will promptly notify all Qualified Bidders of any extension. Circuit City will hold an auction on July 29, 2010, at 2:00 p.m., Eastern Time, telephonically or at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, in Wilmington, Delaware, if it receives any Qualified Bids. DRCC Properties and all Qualified Bidders that submitted a Qualified Bid will be advised of any Auction. To be considered a Qualified Bid and a Qualified Bidder, the person or entity must submit an offer by the Bid Deadline that includes (i) an executed copy of the bid marked to show those amendments to the Agreement, including modifications to the Purchase Price, which price must be at least $2,875,000; (ii) the name, address and relevant contact information of the potential bidder, as well as the name and title of its representative who will appear on behalf of the bidder; (iii) a statement that the bid will not be conditioned on the outcome of unperformed due diligence by the bidder or any financing contingency; (iv) a good-faith deposit equal to $275,000 plus 10% of the amount by which the bid exceeds the Purchase Price; (v) an acknowledgment that the bid is irrevocable until two business days after the Closing of the Sale; and (vi) an acknowledgment that, in the event the bidder is the Alternate Bidder, it will proceed with the purchase of the Property pursuant to the terms of the Marked Agreement. At the conclusion of any Auction, Circuit City, in consultation with the Creditors' Committee, would determine the highest or otherwise best bid -- Successful Bid. After the Auction, if any, Circuit City intends to proceed with a hearing to approve the Sale of the Property on August 4, 2010, at 2:00 p.m., Eastern Time. If no Qualified Bids other than DRCC Properties' bid are received before the Bid Deadline, Circuit City would proceed with the Sale to the Purchaser after entry of the Sale Order. A bid would not be deemed accepted by Circuit City unless and until approved by the Court. If the Successful Bidder fails to consummate the sale for specified reasons, then the Alternate Bid would be deemed to be the Successful Bid, and Circuit City would be permitted to effectuate a sale to the Alternate Bidder without further Court order. Mr. Foley adds that the CRA Lease provides for a right of first refusal in favor of Berkadia. Under the terms of the ROFR, in the event that Circuit City offers to sell, or receives an offer to purchase, its interest in the land leased pursuant to the CRA Lease, the Seller must first give Berkadia the right of first refusal to purchase the same at the same price and upon the same terms as are contained in the offer. With respect to any sale pursuant to this Motion, the Debtors request, and Berkadia has agreed, that Berkadia will not be entitled or permitted to exercise the ROFR, provided that the ROFR will survive the Sale and will be enforceable in any subsequent sale of the Property by Berkadia or its successors or assigns pursuant to the terms of the CRA Lease. Moreover, in the event Circuit City does not consummate the Sale then Berkadia would retain the ROFR, Mr. Foley informs the Court. The deadline for objections to the Sale is on July 28, 2010, at 4:00 p.m., Eastern Time. A full-text copy of the Agreement, including a copy of the proposed bidding procedures, is available at no charge at: http://bankrupt.com/misc/CC_SaleAgrmntDRCC062110.pdf 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). CITIGROUP INC: Moody's Changes Outlook on Bank Rating to Stable --------------------------------------------------------------- Moody's Investors Service changed the rating outlook on Citigroup Inc's stand-alone bank financial strength rating to stable from negative based on the company's strengthened capital position and improved risk profile. Citibank N.A.'s stand-alone BFSR is C-, which maps to a Baa2 on Moody's long-term rating scale. Moody's also changed the outlook on Citigroup's hybrid securities to stable from negative because they are linked to the company's stand-alone financial strength rating. These securities include: junior subordinated debt rated Ba1, cumulative preferred securities rated Ba2, and non-cumulative preferred securities rated Caa1. Citibank N.A.'s senior long-term and short-term debt and deposits ratings, which incorporate systemic support, are A1 and Prime-1, respectively, while Citigroup Inc's senior long-term and short- term ratings are A3 and Prime-1, respectively. The outlook on these ratings is already stable. The change in the BFSR's outlook to stable reflects Citigroup's progress in improving its capital profile, which provides a greater buffer against the losses that Moody's anticipates in an expected case and, critically, in a more severely stressed scenario. These losses would principally result from exposures in Citigroup's residential mortgage portfolio, credit cards, and to a lesser extent, structured residential mortgage securities. "Citigroup has both increased the amount of capital it holds and reduced its exposure to some of its most troubled assets -- notably through the sale of its inventory in structured residential mortgage securities at better-than-expected prices," said Moody's Senior Vice President Sean Jones. "Not only did Citigroup boost its capital through an exchange of hybrid securities to equity and through raising additional capital, but its net earnings in the first half of 2010 -- despite a drop in the second quarter -- were also higher than Moody's had expected," Mr. Jones added. Citigroup's steps to reduce its risk profile also put it in a better position to handle negative economic developments, such as another contraction in economic growth. As reflected in the stable outlook, Citigroup's current capital base reduces the possibility of a downgrade in the event of a more severely stressed scenario. However, a development that could result in a downgrade of the BFSR would be the need for Citigroup to take a sizable allowance against its deferred tax asset. This would both reduce Citigroup's capital and its ability to generate capital, as its losses would not be tax-affected. Moody's added that the possibility of a sizable allowance against its DTA is low. The possibility is also reduced by the fact that Citigroup has a number of tax reporting lines, some of which have reported consistent earnings, and the company has reported profits in five out of the past six quarters. Moody's last rating action on Citigroup was on February 24, 2010, when it concluded its review on Citigroup's hybrid securities in response to Moody's revised methodology for rating such securities. Citigroup Inc. is headquartered in New York, New York. Its reported assets were $1.9 trillion as of June 30, 2010. Outlook Actions: Issuer: CitiFinancial Credit Company -- Outlook, Changed To Stable From Stable(m) Issuer: Citibank Europe plc -- Outlook, Changed To Stable From Stable(m) Issuer: Citibank International Plc -- Outlook, Changed To Stable From Stable(m) Issuer: Citibank, N.A. -- Outlook, Changed To Stable From Stable(m) Issuer: Citigroup Capital III -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital IX -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital VII -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital VIII -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital X -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XI -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XII -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XIV -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XIX -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XV -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XVI -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XVII -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XVIII -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XX -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XXI -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XXXI -- Outlook, Changed To Stable From Negative Issuer: Citigroup Capital XXXII -- Outlook, Changed To Stable From Negative Issuer: Citigroup Global Markets Holdings Inc. -- Outlook, Changed To Stable From Stable(m) Issuer: Citigroup Global Mkts Deutsch. AG&Co -- Outlook, Changed To Stable From Stable(m) Issuer: Citigroup Inc. -- Outlook, Changed To Stable From Stable(m) Issuer: Egg Banking Plc -- Outlook, Changed To Stable From Stable(m) CONTROLADORA COMERCIAL: Chapter 15 Case Summary ----------------------------------------------- Chapter 15 Petitioner: Fernando del Castillo Elorza Chapter 15 Debtor: Controladora Comercial Mexicana, S.A.B. de C.V., Avenida Revolucion 1780 Modulo 2 Mexico D.F. Mexico 03730 Colonia San Juan, Mexico Chapter 15 Case No.: 10-13750 Type of Business: The Debtor is a leading retailer in Mexico which operates about 215 stores and 75 restaurants. Chapter 15 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Judge: Stuart M. Bernstein Debtor's Counsel: Gary Kaplan, Esq. Fried Frank Harris Shriver & Jacobson One New York Plaza New York, NY 10004 Tel: (212) 859-8812 Fax: (212) 859-8583 E-mail: gary.kaplan@ffhsj.com Estimated Assets: more than $1 billion Estimated Debts: more than $1 billion The Company did not file a list of creditors together with its petition. CORRELOGIC SYSTEMS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Correlogic Systems, Inc. 20271 Goldenrod Lane, Suite 2070 Germantown, MD 20876 Bankruptcy Case No.: 10-25974 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court District of Maryland (Greenbelt) Judge: Wendelin I. Lipp Debtor's Counsel: James A. Vidmar, Jr., Esq. Logan, Yumkas, Vidmar & Sweeney LLC 2530 Riva Road, Suite 400 Annapolis, MD 21401 Tel: (443) 569-5977 Fax: (410) 571-2798 E-mail: jvidmar@loganyumkas.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb10-25974.pdf The petition was signed by Peter J. Levine, president and CEO. CORUS BANKSHARES: Committee Seeks to Retain Attorneys, Advisors --------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the Chapter 11 cases of Corus Bankshares, Inc., is seeking approval from the U.S. Bankruptcy Court to retain Kilpatrick Stockton LLP as lead counsel, FTI Consulting, Inc. as financial advisors, and Neal, Gerber & Eisenberg, LLP as local counsel, netDocketsBlog reports. According to the report, U.S. Trustee appointed the Committee on June 28, 2010. The members of the Committee are: -- U.S. Bank, N.A. as Indenture Trustee for Corus Statutory Trusts I, III & V -- The Bank of New York Mellon Trust Company, N.A., as Indenture Trustee for Corus Statutory Trust II, IV, VI, VIII & IX -- Wilmington Trust Company, as Indenture Trustee for Corus Statutory Trusts VII, X & XIII -- Wells Fargo Bank, N.A., as Indenture Trustee for Corus Statutory Trust XII Bank of America, N.A. as Indenture Trustee for Corus Statutory Trust XI The report notes that the Committee's application asserts that Kilpatrick Stockton is uniquely positioned to represent creditors in the Corus Bankshares case due to its Creditors' Committee representations in the In re BankUnited Financial Corporation, et al., and In re NetBank, Inc. bankruptcy cases. Both such cases "similarly involve the chapter 11 filings of bank holding companies for failed subsidiary banks," the report says. Kilpatrick Stockton, the report adds, has also represented Wilmington Trust since September 2009 in relation to its claims against Corus (the firm ceased representing Wilmington Trust when it was selected as proposed Committee counsel). BankruptcyData.com reports that the Creditors Committee is retaining Kilpatrick Stockton (Contact: Todd C. Meyers) at these hourly rates: * partner at $375 to $780, * counsel at $310 to $725, * associate at $175 to $465, * paralegal at $120 to $265. According to BData, FTI Consulting (Contact: Samuel Star) will charge the Debtor's estate with these hourly rates: * senior managing director at $775 to $885, * director / managing director at $585 to $725, * consultant / senior consultant at $305 to $515, * administrative / paraprofessional at $110 to $250. Neal, Gerber & Eisenberg (Contact: Mark A. Berkoff) will charge at hourly rates ranging from $140 to 795. About Corus Bankshares Chicago, Illinois-based Corus Bankshares, Inc., is a bank holding company. Its lone operating unit, Corus Bank, N.A., closed September 11, 2009, by regulators and the Federal Deposit Insurance Corporation was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Corus Bank. The Company filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Ill. Case No. 10-26881). David R. Seligman, Esq., at Kirkland & Ellis LLP, assists the Company in its restructuring effort. Kinetic Advisors is the Company's restructuring advisor. Plante & Moran is the Company's auditor and accountant. 4 As of June 15, 2010, the Company listed $314,145,828 in assets and $532,938,418 in liabilities. About Corus Bankshares Chicago, Illinois-based Corus Bankshares, Inc., is a bank holding company. Its lone operating unit, Corus Bank, N.A., closed September 11, 2009, by regulators and the Federal Deposit Insurance Corporation was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Corus Bank. The Company filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Ill. Case No. 10-26881). David R. Seligman, Esq., at Kirkland & Ellis LLP, assists the Company in its restructuring effort. Kinetic Advisors is the Company's restructuring advisor. Plante & Moran is the Company's auditor and accountant. 4 As of June 15, 2010, the Company listed $314,145,828 in assets and $532,938,418 in liabilities. COZUMEL CARIBE: Drop in Tourists, Devaluation Cue Ch. 15 Filing --------------------------------------------------------------- Cozumel Caribe SA, a Mexican provider of tourism services at a beachfront hotel in Cozumel, filed for Chapter 15 bankruptcy protection Tuesday before the U.S. Bankruptcy Court for the Southern District of New York. Jacqueline Palank at Dow Jones Daily Bankruptcy Review reports Cozumel Caribe blamed its bankruptcy filing on the "drastic" drop in foreign tourists visiting the Hotel Park Royal Cozumel, from where the company operates. "The recent world recession and crisis in the Mexican tourism sector has brought about a reduction in the flows of cash required to cover the costs and expenses of operating tourism-related businesses," Agustin Garcia Bolanos Cacho, chairman of Cozumel Caribe's board of directors, said in court papers, according to Dow Jones. The report continues that the crisis Mr. Cacho was referring to includes the devalution of the Mexican peso and last year's H1N1 flu epidemic. Mr. Cacho also noted that more tourists were staying home in light of rampant drug violence, the topic of many recent U.S. news reports. Dow Jones reports the company said that although it took such emergency steps as reducing its staff and operating costs, negotiating better trade conditions with its suppliers and trying to create new business plans, it found itself strapped for cash when its lenders decided to withhold funds. According to Bloomberg, Cozumel Caribe reported more than $100 million in debts and assets of more than $10 million in its bankruptcy petition. DAYBREAK OIL: Posts $385,700 Net Loss in Q1 Ended May 31 -------------------------------------------------------- Daybreak Oil and Gas, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $385,696 on $193,051 of revenue for the three months ended May 31, 2010, compared with a net loss of $868,156 on $32,273 of revenue for the three months ended May 31, 2009. The Company's balance sheet at May 31, 2010, showed $2,998,576 in assets, $2,230,181 of liabilities, and $768,395 of stockholders' equity. The Company has incurred net losses since inception, and as of May 31, 2010, has an accumulated deficit of $21,576,858, which raises substantial doubt about its ability to continue as a going concern. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?66b3 Daybreak Oil and Gas, Inc. (OTC BB: DBRM) -- http://www.daybreakoilandgas.com/-- is an independent oil and natural gas exploration, development and production. The Company currently has a revenue interest in nine producing wells in its East Slopes Project located in Kern County, California. The Company was formerly known as Daybreak Mines, Inc. and changed its name to Daybreak Oil and Gas, Inc. in October 2005 as a result of its business focus shift from mineral exploration to oil and natural gas exploration. Daybreak Oil and Gas, Inc. was incorporated in 1955 and is based in Spokane, Washington. DBSI INC: Liquidating Chapter 11 Plan Consolidates Creditors ------------------------------------------------------------ Bill Rochelle at Bloomberg News reports that the Chapter 11 trustee for DBSI Inc. and the Official Committee of Unsecured Creditors jointly filed a liquidating Chapter 11 plan on July 16 along with an explanatory disclosure statement. The disclosure statement predicts an 18.5% recovery for many creditors. According to the report, the trustee filed a motion in January for substantive consolidation of all the DBSI companies. He concluded that the company was managed with disregard for "corporate separateness," such that money was moved around as needed to keep the shell game alive. The plan therefore treats all creditors alike, regardless of whether they hold claims for notes or bonds or thought they were supposed to be tenants in common in specified properties. Bankruptcy Law360 reports that DBSI's trustee aims to set up liquidation trusts. About DBSI Inc. Headquartered in Meridian, Idaho, DBSI Inc. and its affiliates were engaged in numerous commercial real estate and non-real estate projects and businesses. On November 10, 2008, and other subsequent dates, DBSI and 180 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 08-12687). Lawyers at Young Conaway Stargatt & Taylor LLP represent the Debtors as counsel. The Official Committee of Unsecured Creditors tapped Greenberg Traurig, LLP, as its bankruptcy counsel. Kurtzman Carson Consultants LLC is the Debtors' notice claims and balloting agent. When the Debtors sought protection from their creditors, they estimated assets and debts between $100 million and $500 million. Joshua Hochberg, a former head of the Justice Department fraud unit, served as an Examiner and called the seller and servicer of fractional interests in commercial real estate an "elaborate shell game" that "consistently operated at a loss" in his report released in Oct. 2009. On Sept. 11, 2009, the Honorable Peter J. Walsh entered an Order (Doc. 4375) appointing James R. Zazzali as Chapter 11 trustee for the Debtors' estates. DIVISION PROPERTIES: Section 341(a) Meeting Scheduled for Aug. 9 ---------------------------------------------------------------- The U.S. Trustee for Region 20 will convene a meeting of Division Properties, L.L.C.'s creditors on August 9, 2010, at 3:00 p.m. The meeting will be held at 215 Dean A. McGee Avenue, Room 119, Oklahoma City, OK 73102. 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. Oklahoma City, Oklahoma-based Division Properties, LLC -- dba Winslow Glen Apartments and Remington Apartments -- filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. W.D. Okla. Case No. 10-14203). G. Rudy Hiersche, Jr., Esq., who has an office in Oklahoma City, Oklahoma, assists the Company in its restructuring effort. The Company listed $11,214,424 in assets and $6,932,342 in liabilities. DIVISION PROPERTIES: Taps G. Rudy Hiersche as Bankr. Counsel ------------------------------------------------------------ Division Properties, LLC, has sought permission from the U.S. Bankruptcy Court for the Western District of Oklahoma to employ G. Rudy Hiersche, Jr., as bankruptcy counsel. Mr. Hiersche will: (a) give Debtor legal advice with respect to its powers and duties as a debtor-in-possession in the continued operation of its business and management of its property; (b) prepare applications, answers, orders, reports and other legal papers; and (c) perform all other legal services for Debtor as a debtor- in-possession which may be necessary herein. Mr. Hiersche will be paid $225 per hour for his services. Mr. Hiersche assures the Court that he is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Oklahoma City, Oklahoma-based Division Properties, LLC -- dba Winslow Glen Apartments and Remington Apartments -- filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. W.D. Okla. Case No. 10-14203). The Company listed $11,214,424 in assets and $6,932,342 in liabilities. DREIER LLP: Fortress Sues Ruskin Moscou for Losses -------------------------------------------------- Dow Jones Newswires' Chad Bray reports that investment company Fortress Investment Group LLC sued Uniondale, N.Y.-based law firm Ruskin Moscou Faltischek PC in state court in Manhattan on Tuesday, alleging the firm assisted Marc Dreier in prolonging a massive fraud. The lawsuit, according to Dow Jones, claims Ruskin Moscou provided "false legal opinion letters" that were used by Mr. Dreier to help carry out a scheme to sell hundreds of millions of dollars in fake promissory notes. Two Fortress subsidiaries claim they lost more than $50 million as a result. Fortress Credit Corp. and another Fortress subsidiary believed they were loaning more than $50 million to affiliates of a New York real-estate development company in 2006 and in 2007. Dow Jones relates the Fortress units entered into the transactions proposed by Mr. Dreier in part because of three legal opinion letters in which Ruskin Moscou purported to be the real-estate firm's "special transaction counsel," according to the lawsuit. "We believe the suit is baseless and look forward to complete vindication through the judicial process," said Barbara Cerrone, a spokeswoman for Ruskin Moscou, according to Dow Jones. Dow Jones recalls Fortress filed a similar lawsuit against law firm Dechert LLP last December. Dechert has denied wrongdoing. Dow Jones says a state judge denied Dechert's motion to dismiss the case in June, saying its motion was "premature," according to a transcript of the hearing. About Dreier LLP Marc Dreier founded New York-based law firm Dreier LLP -- http://www.dreierllp.com/-- in 1996. On December 8, 2008, the U.S. Securities and Exchange Commission filed a suit, alleging that Mr. Dreier made fraudulent offers and sales of securities in several cities, selling fake promissory notes to hedge and other private investment funds. The SEC asserted that Mr. Dreier also distributed phony financial statements and audit opinions, and recruited accomplices in connection with that scheme. Mr. Dreier has been charged by the U.S. government for conspiracy, securities fraud and wire fraud (S.D.N.Y. Case No. 09-cr-00085-JSR). Dreier LLP sought chapter 11 protection (Bankr. S.D.N.Y. Case No. 08-15051) on Dec. 16, 2008. Stephen J. Shimshak, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, has been retained as counsel. The Debtor listed assets between $100 million and $500 million, and debts between $10 million and $50 million in its filing. Wachovia Bank National Association, Sheila M. Gowan as trustee for Dreier LLP's Chapter 11 Estate, and Steven J. Reisman as post- confirmation representative of the bankruptcy estate of 360networks (USA) Inc. signed a petition that put Mr. Dreier into bankruptcy under Chapter 7 on January 26, 2009 (Bankr. S.D.N.Y. Case No. 09-10371). Mr. Dreier, 60, pleaded guilty to fraud and other charges in May 2009. The scheme to sell $700 million in fake notes unraveled in late 2008. Mr. Dreier is serving a 20-year sentence in a federal prison in Minneapolis. EDWARD NEWMAN: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Edward G. Newman 1500 East Brainerd Street Pensacola, FL 32503 Bankruptcy Case No.: 10-31466 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Northern District of Florida (Pensacola) Debtor's Counsel: C. Edwin Rude, Jr., Esq. C. Edwin Rude, Jr. Attorney at Law 211 E. Call Street Tallahassee, FL 32301-7607 Tel: (850) 222-2311 Fax: (850) 222-2120 E-mail: edrudelaw@earthlink.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $4,109,643 while debts total $8,042,121. A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flnb10-31466.pdf The petition was signed by the Debtor. EMMIS COMMS: DJD Group Holds 101,210 6.25% Preferred Shares ----------------------------------------------------------- Don J. DeFosset and DJD Group LLLP disclosed in separate regulatory filings on Monday that they hold 101,210 shares of Emmis Communications Corp.'s 6.25% Series A Cumulative Convertible Preferred Stock. Mr. DeFosset is the general partner of DJD Group, LLLP, which directly owns the securities. Mr. DeFosset may be deemed to be a member of a 'group' (within the meaning of Rule 13d-5(b) promulgated under the Securities Exchange Act of 1934) whose voting of shares (of the 6.25% Series A Cumulative Convertible Preferred Stock) is contractually restricted in certain respects pursuant to a Lock-Up Agreement among Emmis shareholders. Collectively, those shareholders beneficially own more than 10% of the Emmis Preferred Stock. Mr. DeFosset himself beneficially owns less than 10% of such stock, and he disclaims ownership of all such stock other than the shares he beneficially owns. About Emmis Headquartered in Indianapolis, Indiana, Emmis Communications Corporation -- http://www.emmis.com/-- owns and operates radio stations and magazine publications in the U.S. and in Europe. At February 28, 2010, the Company had $498,168,000 in total assets; $487,246,000 in total liabilities and $140,459,000 in Series A Cumulative Convertible Preferred Stock; and shareholders' deficit of $178,959,000. At February 28, 2010, the Company had non-controlling interests of $49,422,000 and total deficit of $129,537,000. As of April 15, 2010, the Company had not paid the Preferred Stock dividend for six consecutive quarterly periods. * * * In April 2009, Moody's cut its corporate family rating on the Company to 'Caa2'. In May 2009, S&P raised its corporate credit rating on the Company to 'CCC+'. In June, S&P withdrew the 'CCC+' Corp. Credit Rating at the Company's request. EMMIS COMMS: Kevan Fight Pays $300,521 for Preferred Shares ----------------------------------------------------------- Kevan A. Fight disclosed that as of July 9, 2010, he beneficially owned 51,000 shares of Emmis Communications Corporation's 6.25% Series A Cumulative Convertible Preferred Stock, which are convertible into 124,440 shares of Class A Common Stock. The Class A shares represent 0.37% of the shares of Class A Common Stock outstanding. Mr. Fight expended $300,521 of his personal funds to purchase the 51,000 Preferred Shares. Mr. Fight is affiliated with Double Diamond Partners LLC. On July 9, 2010, Double Diamond Partners LLC, Zazove Aggressive Growth Fund, L.P., R2 Investments, LDC, DJD Group LLC, Third Point LLC, the Radoff Family Foundation, Bradley L. Radoff, and LKCM Private Discipline Master Fund, SPC -- the Locked-Up Holders -- entered into a written lock-up agreement pursuant to which, among other things, each of them agreed, subject to certain exceptions, to (1) vote or cause to be voted any and all of its Preferred Stock against the Proposed Amendments; (2) restrict dispositions of Preferred Stock; (3) not enter into any agreement, arrangement or understanding with any person for the purpose of holding, voting or disposing of any securities of the Company, or derivative instruments with respect to securities of the Company; (4) consult with each other prior to making any public announcement concerning the Company; and (5) share certain expenses incurred in connection with their investment in the Preferred Stock, in each case during the term of the Lock-Up Agreement. As a result of the Lock-Up Agreement, the Locked-Up Holders may be deemed to have formed a group within the meaning of Rule 13d-5(b) under the Act. On May 25, 2010, Emmis executed an agreement and plan of merger, that if consummated would result in the Company being taken private by Mr. Smulyan. The Merger Agreement provides for a series of transactions, including (a) a cash tender offer for the Company's Class A Common Stock, (b) an offer to exchange all outstanding Preferred Shares for new 12% PIK Senior Subordinated Notes due 2017, and (c) a solicitation of proxies to amend certain terms of the Preferred Shares. Adoption of the Proposed Amendments described in the Merger Agreement requires the affirmative vote of holders of at least 2/3 of the outstanding Preferred Shares, voting as a separate class. If the Locked-Up Holders are deemed to have formed a group, the group may be deemed to collectively own 969,858 shares of Preferred Stock, representing approximately 34.5% of the issued and outstanding shares of Emmis Preferred Stock. About Emmis Headquartered in Indianapolis, Indiana, Emmis Communications Corporation -- http://www.emmis.com/-- owns and operates radio stations and magazine publications in the U.S. and in Europe. At February 28, 2010, the Company had $498,168,000 in total assets; $487,246,000 in total liabilities and $140,459,000 in Series A Cumulative Convertible Preferred Stock; and shareholders' deficit of $178,959,000. At February 28, 2010, the Company had non-controlling interests of $49,422,000 and total deficit of $129,537,000. As of April 15, 2010, the Company had not paid the Preferred Stock dividend for six consecutive quarterly periods. * * * In April 2009, Moody's cut its corporate family rating on the Company to 'Caa2'. In May 2009, S&P raised its corporate credit rating on the Company to 'CCC+'. In June, S&P withdrew the 'CCC+' Corp. Credit Rating at the Company's request. EMMIS COMMS: Posts $1.5 Million Net Loss for May 31 Quarter ----------------------------------------------------------- Emmis Communications Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $1.5 million on $60.3 million of net revenues for the three months ended May 31, 2010, compared with a net income of $14.1 million on $59.7 million of net revenues for the same period a year ago. The Company's balance sheet at May 31, 2010, showed $495.6 million in total assets, $486.7 million in total liabilities, and $140.4 million in series A cumulative convertible preferred stock, for a $180.4 million shareholders' deficit. A full-text copy of the company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?66bd About Emmis Headquartered in Indianapolis, Indiana, Emmis Communications Corporation -- http://www.emmis.com/-- owns and operates radio stations and magazine publications in the U.S. and in Europe. At February 28, 2010, the Company had $498,168,000 in total assets; $487,246,000 in total liabilities and $140,459,000 in Series A Cumulative Convertible Preferred Stock; and shareholders' deficit of $178,959,000. At February 28, 2010, the Company had non-controlling interests of $49,422,000 and total deficit of $129,537,000. As of April 15, 2010, the Company had not paid the Preferred Stock dividend for six consecutive quarterly periods. * * * In April 2009, Moody's cut its corporate family rating on the Company to 'Caa2'. In May 2009, S&P raised its corporate credit rating on the Company to 'CCC+'. In June, S&P withdrew the 'CCC+' Corp. Credit Rating at the Company's request. EMMIS COMMS: Radoff Pays $1.09 Mil. for 1.7% Preferreds Stake ------------------------------------------------------------- The Radoff Family Foundation disclosed that as of July 19, 2010, the Foundation beneficially owned 10,000 shares of 6.25% Series A Cumulative Convertible Preferred Stock, $0.01 par value, of Emmis Communications Corporation, representing 0.4% of the issued and outstanding shares of Emmis Preferred Stock. In addition, as of July 19, 2010, Mr. Radoff may be deemed the beneficial owner 47,500 shares of Preferred Stock held by the Foundation and Mr. Radoff directly, representing 1.7% of the issued and outstanding shares of Emmis Preferred Stock. Mr. Radoff disclaims beneficial ownership of the shares of Preferred Stock held by the Foundation. As of July 19, 2010, the Foundation had invested $1,090,291.81 (inclusive of brokerage commissions) in Emmis Preferred Stock. The source of these funds was the working capital of the Foundation and the personal funds of Mr. Radoff. On July 9, 2010, Double Diamond Partners LLC, Zazove Aggressive Growth Fund, L.P., R2 Investments, LDC, DJD Group LLC, Third Point LLC, the Radoff Family Foundation, Bradley L. Radoff, and LKCM Private Discipline Master Fund, SPC -- the Locked-Up Holders -- entered into a written lock-up agreement pursuant to which, among other things, each of them agreed, subject to certain exceptions, to (1) vote or cause to be voted any and all of its Preferred Stock against the Proposed Amendments; (2) restrict dispositions of Preferred Stock; (3) not enter into any agreement, arrangement or understanding with any person for the purpose of holding, voting or disposing of any securities of the Company, or derivative instruments with respect to securities of the Company; (4) consult with each other prior to making any public announcement concerning the Company; and (5) share certain expenses incurred in connection with their investment in the Preferred Stock, in each case during the term of the Lock-Up Agreement. As a result of the Lock-Up Agreement, the Locked-Up Holders may be deemed to have formed a group within the meaning of Rule 13d-5(b) under the Act. On May 25, 2010, Emmis executed an agreement and plan of merger, that if consummated would result in the Company being taken private by Mr. Smulyan. The Merger Agreement provides for a series of transactions, including (a) a cash tender offer for the Company's Class A Common Stock, (b) an offer to exchange all outstanding Preferred Shares for new 12% PIK Senior Subordinated Notes due 2017, and (c) a solicitation of proxies to amend certain terms of the Preferred Shares. Adoption of the Proposed Amendments described in the Merger Agreement requires the affirmative vote of holders of at least 2/3 of the outstanding Preferred Shares, voting as a separate class. If the Locked-Up Holders are deemed to have formed a group, the group may be deemed to collectively own 969,858 shares of Preferred Stock, representing approximately 34.5% of the issued and outstanding shares of Emmis Preferred Stock. About Emmis Headquartered in Indianapolis, Indiana, Emmis Communications Corporation -- http://www.emmis.com/-- owns and operates radio stations and magazine publications in the U.S. and in Europe. At February 28, 2010, the Company had $498,168,000 in total assets; $487,246,000 in total liabilities and $140,459,000 in Series A Cumulative Convertible Preferred Stock; and shareholders' deficit of $178,959,000. At February 28, 2010, the Company had non-controlling interests of $49,422,000 and total deficit of $129,537,000. As of April 15, 2010, the Company had not paid the Preferred Stock dividend for six consecutive quarterly periods. * * * In April 2009, Moody's cut its corporate family rating on the Company to 'Caa2'. In May 2009, S&P raised its corporate credit rating on the Company to 'CCC+'. In June, S&P withdrew the 'CCC+' Corp. Credit Rating at the Company's request. ENERGY FUTURE: Moody's Downgrades Default Rating to 'Ca' -------------------------------------------------------- Moody's Investors Service downgraded the probability of default rating for Energy Future Holdings Corp. to Ca from Caa2 and changed the speculative grade liquidity assessment to SGL-4 from SGL-3. EFH's corporate family rating is affirmed at Caa1 and its rating outlook remains negative. Separately, Moody's affirmed the Baa1 senior secured rating for Oncor Electric Delivery Company LLC and its stable rating outlook. The downgrade of the PDR reflects Moody's view that EFH's recent debt exchange offer is a distressed exchange. It also reflects Moody's belief that the exchange transaction has a high likelihood of closing. During the exchange offer process, the Ca PDR will prevail. Upon closing of the exchange, the PDR will be repositioned to reflect the limited default that will have occurred and to consider Moody's views that future restructuring activity is likely to continue. "Upon closing of the exchange transaction, EFH is expected to have reduced its total consolidated debt by almost $1 billion" said Jim Hempstead, Senior Vice President "but Moody's incorporate a view that additional restructuring activity is likely over the near to intermediate term horizon". EFH's Caa1 CFR is affirmed. The CFR takes into consideration the very weak financial profile, untenable capital structure, questionable long-term business plan sustainability and material operating headwinds, especially with respect to steadily increasing environmental mandates. For the twelve months ended March 2010, the ratio of EFH's consolidated cash flow from operations, CFO before changes in working capital and funds from operations to total debt outstanding was approximately 5%, 3% and 2%, respectively. In Moody's opinion, these credit metrics indicate that EFH has very little financial flexibility. "EFH still presents as a financially weak and fundamentally distressed company" added Hempstead "and so its behaviors are driven with an eye towards maximizing the option value of the equity from a very short term perspective more heavily than comparable peer companies." Moody's revised EFH's speculative grade liquidity rating to an SGL-4 from an SGL-3. Moody's view EFH's capitalization as being relatively complex, in part due to numerous, often inter-related, incurrence tests and other covenants. Moody's observe that EFH's revised capitalization, which reflects the current exchange offer, does little to reduce this complexity. The SGL-4 reflects a continuing weak cash flow generating forecast, a material reduction in cash on the balance sheet with the proposed exchange offer, an expectation for steady erosion of the headroom cushion associated with TCEH's secured revolver expiring in 2013 and little, if any, un-encumbered assets (with the exception of Oncor) as possible sources of additional liquidity. The new senior secured notes are primarily viewed as senior unsecured obligations of TCEH, due to Oncor's ring-fence type provisions. However, the notes are secured by the stock of EFH's intermediate subsidiary holding company, Energy Future Intermediate Holding Company (EFIH, Caa3 senior secured notes / negative outlook) ownership of Oncor Electric Delivery Holdings Co. LLC. Oncor Holdings owns approximately 80% of Oncor, the regulated T&D utility operations. Approximately $20 billion of EFH's total consolidated debt is scheduled to mature in 2014. The magnitude of this refinancing risk represents a significant credit and liquidity issue, primarily due to Moody's views of the current state of the bank credit markets. While Moody's incorporate a view that bank credit capacity is readily available (albeit at a higher cost) for most regulated utility operations (a positive for Oncor, whose $2.0 billion senior secured credit facility expires in October 2013), it is unclear if capacity will be available (and at what cost) for an entity as highly levered as EFH. Oncor's access to the credit markets could be negatively impacted by this potential increase in event risk. The negative outlook reflects Moody's continuing concerns regarding the long-term sustainability of EFH's business model and its untenable capital structure. Moody's continues to believe EFH's longer-term fundamentals remain weak and that its business plan appears unsustainable, given current commodity price outlooks. Moody's concerns include: the magnitude of EFH's total consolidated debt (almost $45 billion); significant looming maturities in 2013 and 2014 (approximately $23 billion); a weakening liquidity profile; the longer-term prospects for the financial, credit and hedge counterparty markets (due to EFH's sizeable hedging program); a noticeable acceleration of environmentally-sensitive legislative initiatives (including carbon and mercury) which threatens coal-fired margins and capital investment expectations, and; the risk of incremental market intervention in Texas. Oncor Electric Delivery Company's Baa1 senior secured rating and stable rating outlook are affirmed. However, Moody's see a steady and measured increase in Oncor's event risk profile and Moody's incorporate a view that the regulated side of EFH's organizational structure, which includes the intermediate subsidiary holding company, EFIH, has been permanently levered. While Moody's see little evidence of a direct assault on Oncor's regulated financials or its credit profile, Moody's observe that EFH has been slowly pursuing a strategy to create incremental financial flexibility with respect to its indenture restrictions. These flexibilities address certain structural challenges related to any potential disposal of Oncor, among other provisions. Moody's view these desired financial flexibilities as a credit positive for the EFH and TCEH credit profiles, and a credit negative for the credit profile of Oncor. "Oncor's exposure to event risk continues to increase as the ultimate parent company restructures its debt and amends its indenture restrictions" said Hempstead. "The flexibility associated with executing some form of a disposal of Oncor has increased, and Moody's incorporate a view that management will, eventually, avail themselves of this flexibility." Moody's last rating action for EFH occurred on November 16, 2009, when Moody's revised EFH's PDR to Caa2 from Ca and affirmed the Caa1 CFR and negative rating outlooks. EFH is a large merchant generation company and retail electric provider operating in Texas. EFH is headquartered in Dallas, Texas. ENERJEX RESOURCES: Recurring Losses Cue Going Concern Doubt ----------------------------------------------------------- EnerJex Resources, Inc., filed on July 15, 2010, its annual report on Form 10-K for the fiscal year ended March 31, 2010. Weaver & Martin, LLC, in Kansas City, Missouri, 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 and had negative cash flows. The Company reported a net loss of $4,948,091 on $4,856,027 of revenue for fiscal 2010, compared with a net loss of $5,307,068 on $6,436,805 of revenue for fiscal 2009. The Company's balance sheet at March 31, 2010, showed $6,809,107 in assets and $14,977,607 of liabilities, for a stockholders' deficit of $8,168,590. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?66bb Overland Park, Kansas-based EnerJex Resources, Inc., formerly known as Millennium Plastics Corporation, is an oil and natural gas acquisition, exploration and development company. The Company's oil and natural gas acquisition and development activities are currently focused in Eastern Kansas. ENTRAVISION COMMUNICATIONS: Moody's Puts 'B1' Corp. Family Rating ----------------------------------------------------------------- Moody's Investors Services affirmed the B1 Corporate Family Rating for Entravision Communications Corporation and assigned a B1 (LGD4-51%) rating to its proposed $385 million issuance of senior secured bonds. The company will use proceeds primarily to repay its existing first lien term loan (approximately $359 million outstanding) and fund the termination of unprofitable swaps and transaction fees. The transaction modestly increases leverage, and Moody's subsequently continues to consider the company as being weakly positioned relative to the B1 CFR. However, the extension of maturities (to 2017 for the proposed bonds from March 2013 for the existing term loan) mitigates refinancing risk, and Moody's estimate cash interest expense will increase only modestly relative to 2009 given the elimination of unfavorable swaps. Furthermore, Moody's anticipates that the EBITDA boost from advertising revenue related to the World Cup and elections in 2010 will enable Entravision to build cash and lower gross leverage to the low-6x debt-to-EBITDA range for 2010. Moody's also raised the probability of default rating, to B1 from B2, based on the company's good pro forma liquidity profile and its revised capital structure, which will contain both bonds and bank debt now as compared to the existing all bank debt structure. The transaction incorporates replacement of Entravision's existing first lien revolver (due March 2012) with a new first lien revolver (unrated) due in 2013. An intercreditor agreement will provide first-out payment priority to the revolving credit facility lenders relative to new secured bondholders; hence, Moody's ranks the revolver ahead of the secured bonds for the waterfall of liabilities in Moody's Loss Given Default analysis. The stable outlook assumes Entravision will generate positive free cash flow and make progress on reducing leverage towards management's stated target of 4x debt-to-EBITDA (as defined by the company) or lower. Moody's expects to withdraw the B1 (LGD3-31%) rating on the existing senior secured first lien bank credit facility following its repayment. A summary of the actions follows. Entravision Communications Corporation -- Senior Secured Bonds, Assigned B1, LGD4, 51% -- Corporate Family Rating, Affirmed B1 -- Probability of Default Rating, Upgraded to B1 from B2 -- Rating Outlook, Stable Entravision's B1 corporate family rating reflects its presence as a leading provider of Spanish language television in high density and fast growing Hispanic markets, which creates good long term growth prospects and the capacity to generate strong unlevered free cash flow. Entravision benefits from a somewhat more flexible operating cost structure than most TV broadcasters since it shares advertising time with Univision in lieu of fixed programming payments, which, combined with its leading market positions, supports good EBITDA margins. The Univision agreement results in lower revenue, but somewhat dampens the impact of economic cyclicality on cash flow. Nevertheless, revenue and cash flow are vulnerable to cyclical advertising spending, and Entravision's high leverage affords it minimal flexibility for managing this risk. Furthermore, event risk related to acquisitions and cash distributions to shareholders exists over the intermediate to longer term, although the proposed credit agreement and bond indenture provide some protections in this regard. Moody's most recent rating action for Entravision occurred on August 6, 2009, when Moody's downgraded the CFR to B1 from Ba3 and changed the rating outlook to stable from negative. Entravision Communications Corporation, headquartered in Santa Monica, CA, is a diversified Spanish-language media company with television and radio operations. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the Univision television network and Univision's TeleFutura network. The company also owns and operates a group of primarily Spanish language radio stations, consisting of 48 owned and operated stations in 19 U.S. markets. Entravision's TV operations generated about two-thirds of its 2009 revenue of approximately $190 million, with the remainder from radio. ENTRAVISION COMMUNICATIONS: S&P Affirms 'B' Corp. Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Santa Monica, Calif.-based Spanish-language media company Entravision Communications Corp. to positive from stable. All ratings on the company, including the 'B' corporate credit rating, were affirmed. At the same time, S&P assigned the company's proposed $385 million senior secured first-lien notes due 2017 its issue-level rating of 'B' (at the same level as the 'B' corporate credit rating). S&P also assigned this debt a recovery rating of '3', indicating S&P's expectation of meaningful (50%-70%) recovery for noteholders in the event of a payment default. "The 'B' rating and positive outlook on Entravision reflects S&P's expectation that leverage will remain high in 2010 as operating performance improves, but that liquidity and financial flexibility will be strengthened as a result of the proposed refinancing," explained Standard & Poor's credit analyst Michael Altberg. Other rating factors include intense competition in Spanish- language media, advertising pricing for Spanish-language media that is not commensurate with its audience share compared to English-language media, generally lower shares of political advertising, and a more muted rebound in auto advertising than for English-language media. Modest positive factors that do not offset these risks include Entravision's long-term strategic relationship with shareholder Univision Communications Inc., favorable long-term trends in Hispanic media, and moderate portfolio diversity, which a mix of TV and radio station assets provides. Lease-adjusted debt to EBITDA was high, at 6.5x for the 12 months ended March 31, 2010, up from 6.1x a year ago, due to EBITDA deterioration in 2009. Pro forma for the transaction, lease- adjusted debt to EBITDA increases marginally to 6.9x for the 12 months ended March 31, 2010 (or roughly 6.6x as of June 30, 2010, based on the company's preliminary guidance) , which S&P expects the company could reduce to the low-6x area over the next 12 months. EBITDA coverage of cash interest was adequate at 1.7x as of March 31, 2010. S&P does not expect the refinancing to significantly affect coverage, as Entravision's cost of debt was around 10.1% due to unfavorable swap rates that expire in October 2010. The company converted 26% of EBITDA to discretionary cash flow for the 12 months ended March 31, 2010, which is still healthy, but down from nearly 50% in 2007. Discretionary cash flow dropped 63.4% in 2009. S&P expects this measure to improve somewhat in 2010. EQUITY LIFE: Case Summary & Largest Unsecured Creditor ------------------------------------------------------ Debtor: Equity Life Holdings, Inc. 4455 East Camelback Road, C240 Phoenix, AZ 85018 Bankruptcy Case No.: 10-21943 Chapter 11 Petition Date: July 14, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: George B. Nielsen Jr. Debtor's Counsel: Michael G. Tafoya, Esq. P.O. Box 80495 Phoenix, AZ 85060 Tel: (602) 539-2426 Fax: (866) 263-6419 E-mail: michael.tafoya@azbar.org Estimated Assets: $1,000,001 to $100,000,000 Estimated Debts: $100,001 to $1,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ The Rocks Scottsdale Association Fees $40,000 27440 N. Alma School Parkway Scottsdale, AZ 85262 The petition was signed by Vincent Goett, director. ESTERLINE TECHNOLOGIES: Moody's Puts Ba3 Rating on $200 Mil. Notes ------------------------------------------------------------------ Moody's Investors Service has assigned a Ba3 rating to the planned $200 million senior unsecured notes due 2020 of Esterline Technologies Corporation, one notch below the affirmed Ba2 corporate family rating. Notes proceeds will fund the company's tender offer on its existing $175 million senior subordinated notes due 2013, pay related fees, with the remainder for general corporate purposes. Moody's anticipate that the new notes will replace all the existing subordinated debt. See Esterline's Offering Memorandum for further details. Moody's views the transaction as a credit positive for the company with the transition to a more conservative, all senior-debt capital structure. As well, the transaction will be near neutral to the debt balance and it will extend the company's overall debt maturity schedule. Despite the development being an overall positive one, the rating on Esterline's existing senior unsecured notes due 2017 has declined to Ba3 from Ba2. The one notch instrument rating decline reflects the elimination of subordinated debt in the capital structure. The affirmed Ba2 corporate family rating reflects a very good liquidity profile, moderate leverage, increasing size and good cash flow characteristics. The positive outlook remains, reflecting increasing diversity of aerospace and defense technology products and stable returns. The outlook contemplates that the company's efforts to further integrate operating subsidiaries should bode well for long-term competitiveness. Higher total return would be key to rating upgrade. The ratings are: * Corporate family and probability of default ratings, Ba2 * $200 million senior unsecured notes due 2020 assigned Ba3 LGD 5, 70% * $175 million senior unsecured notes due 2017 to Ba3 LGD 5, 70% from Ba2 LGD 4, 57% * $175 million senior subordinated notes due 2013, B1 LGD 5, 88%. Moody's last rating action on Esterline occurred September 22, 2009, when the Ba2 corporate family rating was affirmed and the rating outlook was changed to positive from stable. Esterline Technologies Corporation, headquartered in Bellevue WA, serves aerospace and defense customers with products for avionics, propulsion and guidance systems. The company operates in three business segments: Avionics and Controls, Sensors and Systems and Advanced Materials. Revenues for the twelve months ending April 2010 were approximately $1.5 billion. ESTERLINE TECHNOLOGIES: S&P Assigns 'BB' Rating on $200 Mil. Notes ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'BB' issue-level rating to Esterline Technologies Corp.'s proposed $200 million senior unsecured notes due 2020, the same as the corporate credit rating on the company. In addition, S&P assigned a '4' recovery rating to the notes, indicating S&P's expectations for average (30% to 50%) recovery in a default payment scenario. The company will issue the notes via SEC rule 144A with registration rights, and will use the proceeds to refinance the outstanding $175 million 7.75% subordinated notes due 2013. Standard & Poor's will withdraw the ratings on the subordinated notes once they are paid off. S&P is also affirming its 'BB' issue-level rating on Esterline's outstanding $175 million 6.625% senior notes due 2017. S&P revised the recovery rating on these notes to '4' from '3' due to the increased amount of debt at this level in the capital structure following the new issuance. The corporate credit rating on Esterline reflects the company's exposure to the competitive and cyclical commercial aerospace market, an active acquisition program, and modest size compared with some competitors. A somewhat diversified revenue base and moderate debt leverage partly offset company risk factors. Ratings List Esterline Technologies Corp. Corp. credit rating BB/Stable/-- Ratings Assigned Proposed $200 mil. senior unsecured notes due 2020 BB Recovery rating 4 Rating Affirmed, Recovery Rating Revised To '4' To From -- ---- $175 million 6.625% senior notes due 2017 BB BB Recovery rating 4 3 EVEREST HOLDINGS: New Chapter 11 Plan Swaps $90M Building Debt -------------------------------------------------------------- Everest Holdings LLC has proposed a Chapter 11 plan that would hand the reorganized company over to prepetition lenders owed more than $90 million in construction loans, Bankruptcy Law360 reports. Everest filed the latest version of its reorganization plan in the U.S. Bankruptcy Court for the District of Colorado on Friday, Law360 says. Nevada, Texas-based Everest Holdings, LLC, operates a real estate business. It filed for Chapter 11 bankruptcy protection on August 30, 2009 (Bankr. D. Colo. Case No. 09-27906). Its affiliates, EDC Denver I, LLC, and 7677 East Berry Avenue Associates, L.P., also filed for bankruptcy. Daniel J. Garfield, Esq., and Michael J. Pankow, Esq., who both have offices in Denver, Colorado, assist Everest Holdings in its restructuring efforts. Everest Holdings estimated $100,000,001 to $500,000,000 in assets and $50,000,001 to $100,000,000 in liabilities in its Chapter 11 petition. FEC RESOURCES: Posts C$1.2 Million Net Loss for 2009 ---------------------------------------------------- FEC Resources, Inc., filed its annual report on Form 20-F, reporting a net loss C$1,201,745 for the year ended December 31, 2009, compared with a net loss of C$4,237,263 for the year ended December 31, 2008. The Company also anticipates sustaining a loss from operations for the fiscal year ended December 31, 2010. The Company's balance sheet at December 31, 2009, showed C$3,732,102 in assets, C$357,844 of liabilities, and C$3,374,258 of stockholders' equity. "We have experienced significant operating losses and cash outflows from operations in the years ended December 31, 2009, 2008, and 2007, and have no producing properties. Our ability to continue as a going concern is dependent on achieving profitable operations and upon obtaining additional financing. The outcome of these matters cannot be predicted at this time." A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66ba Calgary, Canada-based FEC Resources, Inc. was incorporated under the laws of Alberta, Canada and is engaged primarily in the business of exploration and development of oil and gas and other mineral related opportunities, either directly or indirectly through companies in which the Company invests. The Company is not currently directly involved in any oil and gas or mineral related exploration activities. FILI ENTERPRISES: Can Use Prepetition Lenders' Cash Until August 8 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of California authorized, on a final basis, Fili Enterprises, Inc., to use all of the cash generated postpetition from its business operation, all proceeds, products, rents, offspring and profits of the prepetition collateral. The Debtor would use the prepetition lenders' cash collateral to operate its business. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the prepetition lenders replacement liens in all assets of the Debtor. The Debtor's access to the cash collateral will terminate on August 8, 2010, or in the occurrence of a termination event. About Fili Enterprises, Inc. San Diego, California-based Fili Enterprises, Inc., -- dba Daphne's Greek Cafe, aka Daphne's Greek Express -- filed for Chapter 11 bankruptcy protection on January 11, 2010 (Bankr. S.D. Calif. Case No. 10-00324). Brendan Collins, Esq., and Natasha Johnson, Esq., at DLA Piper LLP (US), assist the Company in its restructuring effort. In its schedules of assets and liabilities, the Company disclosed total assets of $16,723,356 and total liabilities of $16,335,468. FONTAINEBLEAU LAS VEGAS: Judge Orders Remedy for Lienholders ------------------------------------------------------------ A federal judge has ruled that a bankruptcy court improperly allowed Fontainebleau Las Vegas Holdings LLC to use cash collateral over the objections of creditors with liens on that collateral, and ordered the bankruptcy court to fashion a remedy for those creditors, according to Bankruptcy Law360. About Fontainebleau Las Vegas Fontainebleau Las Vegas -- http://www.fontainebleau.com/-- is constructing a luxury resort, Fontainebleu Las Vegas, on the northern end of the Las Vegas Strip. Fontainebleau Las Vegas Holdings, LLC and its units filed for Chapter 11 protection on June 9, 2009 (Bankr. S.D. Fla. Lead Case No. 09-21481). Scott L Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP, represented the Debtors in their restructuring effort. The Debtors' claims agent is Kurtzman Carson Consulting LLC. Attorneys at Genovese Joblove & Battista, P.A., and Fox Rothschild, LLP, represent the Official Committee of Unsecured Creditors. Fontainebleau Las Vegas LLC listed more than $1 billion in debt and a similar amount in assets, while each of Fontainebleau Las Vegas Capital Corp. and Fontainebleau Las Vegas Holdings, LLC, listed less than $50,000 in assets and more than $1 billion in debts. In February 2010, Icahn Enterprises L.P. acquired from Fontainebleau Las Vegas and certain affiliated entities, the Fontainebleau property and improvements thereon located in Las Vegas, Nevada, for an aggregate purchase price of approximately $150 million. Bankruptcy Creditors' Service, Inc., publishes Fontainebleau Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Fontainebleau Las Vegas Holdings, LLC, and its debtor- affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FILI ENTERPRISES: To Sell Daphne's Greek to Trefethen Group ----------------------------------------------------------- Union Tribune reports that he assets of Daphne's Greek Cafe will be sold to a certain private investment company in August 2010. Trefethen Advisors LLC said it expects to form a new holding company to acquire the company's assets and infuse it with additional capital. Trefethen Advisors will become part of the new ownership, which excludes owner and chief executive George Katakalidis. About Fili Enterprises Fili Enterprises Inc., which owns the Daphne's Greek Cafe, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in San Diego, California (Bankr. S.D. Calif. Case No. 10-00324), listing assets and liabilities of between $10 million and $50 million. Fili Enterprises operates 67 Greek restaurants mostly in Southern California. Fili also does business under the names Daphne's Greek Express. Unsecured and priority creditors are owed $3.7 million. U.S. Foodservice Inc., owed $1.1 million, is the unsecured creditor with the largest listed claim. Chief Executive George Katakalidis, a former professional soccer player, founded the company in 1988. DLA Piper LLP (US) has been tapped as counsel. FORD MOTOR: S&P Raises Rating on Preferred Securities to 'CCC-' --------------------------------------------------------------- Standard & Poor's Ratings Services said it has raised its rating on Ford Motor Co. Capital Trust II's 6.5% cumulative trust preferred securities to 'CCC-' from 'C'. Ford recently paid $255 million in previously deferred quarterly distributions and resumed scheduled quarterly distribution payments beginning July 15, 2010. Ford had deferred payments on the 6.5% convertible trust preferred securities since March 2009. The corporate credit rating on Ford Motor Co. (B-/Positive/--) and related entities reflects the multiple business and financial risks the company faces in the competitive and highly cyclical auto industry amid an uncertain economy. S&P believes Ford has made progress in its turnaround by generating positive cash flow from automotive operations in recent quarters and in stabilizing, if not improving, its U.S. market share. Still, S&P believes underlying business risks remain high. The positive outlook means S&P could raise the corporate credit rating if, among other things, the gradual improvement in light- vehicle sales continues in most global markets and Ford's prospects for generating free cash flow and profits in its automotive manufacturing business continue to improve. Ratings List Ford Motor Co. Corporate credit rating B-/Positive/-- Ratings Raised Ford Motor Co. Capital Trust II To From -- ---- Preferred Stock CCC- C FORD MOTOR: New Director James Hance Holds 50,000 Shares -------------------------------------------------------- James H. Hance Jr., newly appointed director at Ford Motor Company, disclosed that he directly holds 50,000 Ford common shares. Ford Motor on July 8 elected Mr. Hance to the company's Board of Directors, effective immediately. Mr. Hance, 65, is the former chief financial officer and former vice chairman of Bank of America, where he retired in 2005 after 18 years with the company. He is currently a senior adviser to the Carlyle Group. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The Company provides financial services through Ford Motor Credit Company. At March 31, 2010, the Company had $191.968 billion in total assets against $197.405 billion in total liabilities. As reported by the Troubled Company Reporter on June 7, 2010, Moody's released an Issuer Comment stating that the ratings and outlook of Ford Motor Company are being maintained following the company's announcement that it will end production of Mercury vehicles during the fourth quarter of this year. Ford's ratings include: B1 Corporate Family Rating and Probability of Default Rating; Ba1 secured rating; B2 unsecured rating; and SGL-2 Speculative Grade Liquidity Rating. The rating outlook is stable. The last rating action on Ford was an upgrade of the Company's Corporate Family Rating to B1 on May 18, 2010. FREMONT GENERAL: Signature Names New Management Team & Board ------------------------------------------------------------ Special situation lender and investor Signature Group Holdings, Inc., successor to recently reorganized Fremont General Corporation, has elected a new Board of Directors and appointed an executive team following its successful emergence from Chapter 11 bankruptcy proceedings last month. Signature will emphasize a business model that focuses on credit- oriented special situation lending and investments in middle- market companies nationally. Prior to bankruptcy, Fremont General Corporation was a $7 billion financial institution with interests in banking, insurance and commercial finance; its wholly-owned subsidiary, Fremont Investment & Loan, was one of the country's top five originators of subprime residential loans. When the subprime market collapsed in 2007, Fremont General Corporation came under pressure by regulators and elected to file for Chapter 11 bankruptcy protection in June 2008 in order to implement its restructuring program. Signature emerged from Chapter 11 in June 2010 under a plan of reorganization led by Signature Group Holdings, LLC. One of the key features of the plan of organization was an estimated $769 million (unaudited) of federal net operating loss carry-forwards expected to be available to offset future taxable income. Craig Noell, 47, has been named president and CEO of Signature Group Holdings, Inc. Mr. Noell has served as Managing Director and CEO of Signature Group Holdings, LLC since 2004. Signature operates as an investor and investment manager employing credit driven strategies, including distressed debt investments and special situation loan originations. "Using the platform of the former Fremont General, we are very excited about writing a new chapter for Signature and confident that our new management and board slate can elevate the company into a leader in middle-market lending and investment, a sector that continues to be starved for capital," Mr. Noell said. "With our team in place, our shareholders can be confident that we have the expertise and talent to take Signature to the next level." John Nickoll, founder of Foothill Capital Corp., formerly the country's largest independent commercial finance company prior to merging with Wells Fargo, has been named Chairman of the Board of Directors of Signature. "Middle market lending remains one of the biggest causalities of the economic downturn, with many providers exiting the market and conventional lenders pulling back significantly," Mr. Nickoll noted. "There is a major opportunity for Signature to make an impact in offering vital credit and investment capital for mid- market companies, for operating purposes, mergers and acquisitions, restructurings, and a host of special situations." Robert A. Peiser, a veteran turnaround executive who has served as CEO of several national companies - including Omniflight Helicopters, Inc. and Imperial Sugar Co. - has been named Vice Chairman and will also chair Signature's Audit Committee as management implements a plan to bring the company back into SEC compliance. Mr. Peiser, who also served two separate tours as CFO of Trans World Airlines, brings strong corporate governance experience to his new role with Signature's board. "The first few months following a reorganization typically represent the most challenging period for a turnaround," Mr. Peiser said. "Having assembled a collegial group of experienced veterans, who bring substantial experience in special situation credit and commercial finance, will greatly enhance the viability of our business model." The rest of the board members include Mr. Noell, along with Kenneth Grossman, Michael Blitzer, John Koral, Richard A. Rubin, Norman Matthews and Robert Schwab. The board has already established various key corporate governance committees, including audit, compensation, legal, executive and governance and nominating committees. Rounding out the Signature executive team are: Kenneth Grossman, 54, a veteran turnaround professional and distressed investor has been appointed co-Executive Vice President. Mr. Grossman, a former corporate lawyer, also serves as managing director of Signature Capital Advisers, LLC, which has entered into an interim investment management agreement with the newly reorganized company. Mr. Grossman has served in leadership roles for several investment firms, including Ramius, LLC, Del Mar Asset Management, L.P., and Alpine Associates, LP. Mr. Grossman was responsible for evaluating new investments and managing existing investments at each firm. Kyle Ross, 33, has been named co-Executive Vice President along with Mr. Grossman. Mr. Ross has also served as a managing director of Signature Capital Advisers, LLC, evaluating new investments and managing existing investments. SCA has employed credit-driven strategies, including distressed debt investments and special situation loan originations. The terms of the new leadership team were outlined in a Current Report on Form 8-K filed July 15 with the Securities and Exchange Commission: http://biz.yahoo.com/e/100715/sggh.pk8-k.html "We are in a great position here following the Fremont General reorganization and installation of a first-rate leadership team to turn Signature Group Holdings, Inc. into a serious player in commercial finance," Mr. Grossman said. "So many middle-market companies are eager for funding - for expansion, for transactions, to pay off existing debt. We are looking forward to stepping in with capital and expertise to help advance business recovery in this critical segment of the economy." About Signature Group Headquartered in Sherman Oaks, CA with a presence in New York, NY., Signature Group Holdings, LLC -- http://www.Signaturecap.com -- is a credit-oriented special situations investor with a track record of successfully acquiring, originating and managing debt investments. . About Fremont General Based in Santa Monica, California, Fremont General Corp. (OTC: FMNTQ) -- http://www.fremontgeneral.com/-- was a financial services holding company with $8.8 billion in total assets at September 30, 2007. Fremont General ceased being a financial services holding company on July 25, 2008, when its wholly owned bank subsidiary, Fremont Reorganizing Corporation (f/k/a Fremont Investment & Loan) completed the sale of its assets, including all of its 22 branches, and 100% of its $5.2 billion of deposits to CapitalSource Bank. Fremont General filed for Chapter 11 protection on June 18, 2008, (Bankr. C.D. Calif. Case No. 08-13421). Robert W. Jones, Esq., and J. Maxwell Tucker, Esq., at Patton Boggs LLP, Theodore Stolman, Esq., Scott H. Yun, Esq., and Whitman L. Holt, Esq., at Stutman Treister & Glatt, represent the Debtor as counsel. Kurtzman Carson Consultants LLC is the Debtor's noticing agent and claims processor. Lee R. Bogdanoff, Esq., Jonathan S. Shenson, Esq., and Brian M. Metcalf, at Klee, Tuchin, Bogdanoff & Stern LLP, represent the Official Committee of Unsecured Creditors as counsel. Fremont's formal schedules showed $330,036,435 in total assets and $326,560,878 in total debts. Fremont General Corporation emerged from bankruptcy and filed Amended and Restated Articles of Incorporation with the Secretary of State of Nevada on June 11, 2010, which, among other things, changed the Debtor's name to Signature Group Holdings, Inc. Signature's plan of reorganization became effective on June 11, 2010. As of that date Fremont General changed its name to Signature Group Holdings, Inc. FX REAL ESTATE: Sells Warrants to Sillerman et al. -------------------------------------------------- On July 7, 2010, each of chairman Robert F.X. Sillerman's spouse, Laura Baudo Sillerman; Paul C. Kanavos and his spouse, Dayssi Olarte de Kanavos; and TTERB Living Trust purchased from FX Real Estate and Entertainment Inc. in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended -- July Private Placement -- 34 units at an aggregate purchase price of $34,000 or $1,000 per unit. Each unit consists of (x) one share of newly issued Series A Convertible Preferred Shares, and (y) one warrant to purchase up to 14,869.88 shares of Common Stock at an exercise price of $0.2018 per share -- July Private Placement Warrants. Mr. Sillerman and his spouse used personal funds of $34,000, Mr. Kanavos and his spouse used personal funds of $34,000, and TTERB used working capital of $34,000 to fund the purchase of their units. The July Private Placement Warrants have five-year terms and are immediately exercisable. A full-text copy of Sillerman et al's disclosure is available at no charge at http://ResearchArchives.com/t/s?66bf 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: Committees Seek to Retain Professionals -------------------------------------------------------- The Official Committee of Unsecured Creditors and the Official Committee of Asbestos Personal Injury Claimants appointed in the bankruptcy cases of Garlock Sealing Technologies and its affiliates sought authority to retain professionals, netDockets Blog reports. According to the report, the Official Committee of Unsecured Creditors sought authority to retain Katten Muchin Rosenman LLP as its counsel. The report relates that the Official Committee of Asbestos Personal Injury Claimants sought authority to retain Caplin & Drysdale, Chartered as counsel and Hamilton Moon Stephens as local co-counsel. 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: Opposes to Add'l Member to Asbestos Committee -------------------------------------------------------------- Garlock Sealing Technologies LLC and its units urge the Court to deny John D. Boyer's request to be a member of the Official Committee of Asbestos Personal Injury Claimants, and not alter its June 15, 2010 decision fixing the size and membership of the Committee. Counsel to the Debtors, Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, P.A., in Charlotte, North Carolina, argues that the Court has already ordered the specific appointments to the Asbestos Claimants Committee. Thus, Mr. Boyer's request for appointment as member to the Asbestos Claimants Committee seeks a modification or reversal of an earlier court order, rather than merely a modification or reversal of act of a U.S. Trustee, which is the relief contemplated by Section 1102(a)(4), Mr. Cassada explains. He asserts that Mr. Boyer's Motion presents no arguments as to why the present composition of the Asbestos Claimants Committee fails to provide representation of creditors. Mr. Cassada also clarifies that the information presented by the Debtors at a June 15, 2010 hearing on the proposed members of the Asbestos Claimants Committee was not misleading. Indeed, Mr. Boyer's counsel was present at the hearing and had an opportunity to ensure the facts presented to the Court were accurate, Mr. Cassada contends. Similarly, Mr. Boyer's counsel presented at the June 15 hearing the same arguments as made in Mr. Boyer's Motion, Mr. Cassada notes. The Court decided that Mr. Boyer should not serve on the Asbestos Claimants Committee based on the absence of recent claims payments, Mr. Cassada stresses. "Mr. Boyer's Motion is simply a rehashing of those same arguments, and should be thus denied for the same reasons," Mr. Cassada insists. He adds that any familiarity or experience with committee service of Mr. Boyer's counsel would be duplicative of the collective familiarity and experience of the members of the Asbestos Claimants Committee. Asbestos Committee Reacts The Asbestos Claimants Committee says it takes no position on Mr. Boyer's Motion but urges the Court to decide on the matter. The Asbestos Claimants Committee says it does not believe that the addition of one member to its ranks would present any significant difficulty by reason of producing an even number of members in total. However, the Asbestos Claimants Committee notes that, with the Debtors not filing any written objection before the June 15 hearing, it was not appropriate for the Debtors' counsel to attack at that hearing the bona fides of any claimant or claimant's counsel. By failing to give notice of their position, the Debtors placed Mr. Boyer and his counsel at a disadvantage, Travis Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, North Carolina, counsel to the Asbestos Claimants Committee, relates. 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 Sell in the Ordinary Course -------------------------------------------------------------- Garlock Sealing Technologies LLC is a subsidiary of Coltec Industries Inc, which has dozens of direct and indirect operating subsidiaries worldwide -- the affiliated entities. The Affiliated Entities primarily (i) produce engineered products, many of which are incorporated into other Affiliated Entities' products or sold by other Affiliated Entities in their local markets or (ii) distribute the products. Before the Petition Date, and in the ordinary course of its businesses, Garlock sold and purchased various finished and unfinished goods from Affiliated Entities, including without limitation, certain of its direct and indirect subsidiaries. "These sales and purchases are necessary to supply customer demand in Garlock's and other Affiliated Entities' respective markets," says John R. Miller, Jr., Esq., at Rayburn Cooper & Durham, P.A., in Charlotte, North Carolina. "In general, Garlock sells products to Affiliated Entities that these companies are incapable of manufacturing, but for which there is demand in their markets; and purchases products from Affiliated Entities that Garlock cannot produce, but for which there is customer demand in its markets." In most cases, Mr. Miller continues, the products sold and purchased are not available from other sources and, therefore, the continued ability to sell and purchase these goods is critical to the continued success of both Garlock and the other Affiliated Entities. In 2009, Garlock sold approximately $10,708,000 in goods to Affiliated Entities, and purchased approximately $11,752,000 in goods from Affiliated Entities. These amounts are likely to fluctuate in 2010 and beyond according to increases or decreases in total sales to outside customers of Garlock and other Affiliated Entities, Mr. Miller says. The products are sold and purchased at prices that Garlock reasonably believes approximate arm's-length pricing, taking into consideration: (i) sales volumes; (ii) Affiliated Entities' efforts to increase market share for Garlock's products; (iii) the independent sales and marketing burden carried by the purchasing Affiliated Entities; (iv) inventory volume carried by Affiliated Entities; and (v) the value added to the products sold by the purchasing Affiliated Entities. Additionally, Garlock on occasion provides certain services, including research and development, information technology, accounting and finance and managerial services to other Affiliated Entities for which Garlock charges the other Affiliated Entities based on resource allocation. Payment for purchases and sales of goods and for services provided by Garlock to Affiliated Entities are paid each month through a multilateral netting system, which has been outsourced to and is managed by Bank of America-Dublin. The Netting System is typical of settlement mechanisms commonly used by multi-national companies to pay for goods and services purchased from affiliated companies, particularly where payments are being made from or to foreign affiliates, necessitating multiple currency conversions, Mr. Miller notes. All payables to Affiliated Entities are input to the Netting System by Garlock and other Affiliated Entities at the beginning of each netting cycle; each intercompany payable generates an offsetting intercompany receivable. All obligations are reviewed and confirmed by Garlock and all other Affiliated Entities prior to the monthly Netting System settlement. Upon receiving confirmation and approval, BofA-Dublin calculates the net amount owed or due Garlock and each other Affiliated Entity, at which time each Netting System participant pays or receives the net amount of its intercompany trade in its own currency. According to Mr. Miller, the Netting System is only open for the input of payables for a limited time each month; it was opened for the input of payables on June 10, 2010, and will be open for settlement on June 30, 2010. The last settlement date was on May 27, 2010, at which time all payables were paid under the procedures of the Netting System. Therefore, as of the Petition Date, no Garlock payables are pending within the Netting System, enabling Garlock to ensure no prepetition claims of Affiliated Entities will be paid through the Netting System without Court authority. Against this backdrop, the Debtors sought and obtained a final order confirming Garlock's ability to continue its prepetition practice of buying and selling goods from and to other Affiliated Entities including, without limitation, its wholly owned subsidiaries, and making or receiving payments through the Netting System. The Court further held that nothing in the Order will be deemed to permit the Debtors to pay any prepetition claim of any Affiliated Entity unless expressly authorized by a Court order, including any order granting the administrative and reclamation procedures motion, the payroll and benefits motion or the services agreements motion. 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 Nod to Continue Parent Services Deals ----------------------------------------------------------- Garlock Sealing Technologies LLC and its debtor-affiliates won final approval to perform under their services agreement with EnPro Industries, Inc., and Coltec Industries Inc. As of June 1, 2010, Garlock Sealing Technologies LLC and Garrison Litigation Management Group Ltd. each entered into separate services agreement with the Parent in order to formalize their relationships with the Parent. The salient terms of the Services Agreements are: (1) Services performed by employees of the Parent. The Parent provides certain operation and financial process engineering and management, information technology, human resources, supply chain management, legal, strategic planning and business development, environmental health and safety, taxation and treasury and cash management functions to Garlock and Garrison on an as-needed basis. (2) Insurance Coverage. Almost all of Garlock and Garrison's insurance needs are met through coverage under certain of the Parent's insurance policies. The Parent pays the premiums for, or, as applicable, the claims under, the Insurance Coverages and then charges a portion of the actual cost of each coverage to its subsidiaries, including Garlock. (3) Certain Payroll and Benefits. The Parent pays, on Garlock and Garrison's behalf, certain payroll and benefit obligations of the Debtors. The Payments fall into these categories: -- The parent makes payments directly to third-party providers for certain payroll obligations of the Debtors; contributions to retirement savings and obligations of the Debtors arising from certain employee benefit plans sponsored by the Debtors for their employee. -- The parent offers certain employee benefit plans in which eligible employees of Garlock and Garrison are permitted to participate. These plans include health insurance plans, life insurance, long-term disability insurance, accidental death and dismemberment insurance, workers compensation insurance, 401(k) plans, defined benefit plans, deferred compensation plans, bonus and incentive plans and employee assistance plans. A full-text copy of the Services Agreements is available for free at http://bankrupt.com/misc/Garlock_ServicesPacts.pdf Garlock also provides Garrison with a lien of credit up to $200 million for working capital purposes pursuant to a $200 million Revolving Note between Garlock and Garrison. Under the Garrison Services Agreement, Garrison will accrue liability to the Parent for an annual charge of $100,000 for the services under the Insurance Coverages and the Payments made by the Parent on behalf of Garrison during the calendar year. Under the Garlock Services Agreement, Garlock will accrue liability for amounts due to the Parent for the Garlock Services, Insurance Coverages and Payments provided by the Parent during the calendar year. Garlock pays the Parent through certain procedures and does not foresee any likely scenario in which it would be required to pay cash to the Parent for any annual charge under the Services Agreement. John R. Miller, Jr., Esq., at Rayburn Cooper & Durham, P.A., in Charlotte, North Carolina, asserts that the Debtors rely on the Parent for the provision of the Services, the Insurance Coverages and the Payments. The uninterrupted continuation of the Services provided to the Debtors under the Services Agreements is critical for a smooth transition into the Debtors' Chapter 11 cases, he maintains. Asbestos Committee's Response Prior to entry of the final order, the Official Committee of Asbestos Personal Injury Claimants said that at this time, it does not object to Garlock Sealing Technologies, LLC and its debtor affiliates' request to assume two services agreements entered with EnPro Industries, Inc. and Coltec Industries Inc. Counsel to the Asbestos Claimants Committee, Travis W. Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, North Carolina -- tmoon@lawhms.com -- tells the Court that the Asbestos Claimants Committee has not yet had the opportunity to investigate any prepetition transactions among the Debtors and their affiliates. Against this backdrop, the Asbestos Claimants Committee reserves its rights to: (i) examine the Parent Services Agreements and the circumstances of their execution as well as to examine all prepetition transactions among the Debtors and their affiliates; and (ii) seek leave of the Court to pursue any avoidance, turnover, state law claims or other claims that may emerge from that review. 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 Nod to Honor Obligations to Sales Agents -------------------------------------------------------------- Certain outside sales representatives located throughout the U.S. promote and market Garlock Sealing Technologies, LLC's manufacturing products for sale to customers. Garlock pays the Sales Reps a monthly commission based on their sales success from the previous month. On June 23, 2010, the Debtors made several inadvertent payments to the Sales Reps for their sales commissions earned in May, totaling $63,578. The inadvertent payments are: Remaining Sales Inadvertent Prepetition Representative Payment Balance -------------- ----------- ----------- Paul Ernst $10,241 $1,455 Bob Coleates $14,775 $2,388 Intecx LLC $5,091 $1,207 Dick Pearson $18,396 $1,398 Paul Sachs $11,940 $1,823 Jerry Dickson $3,133 $379 Shelley K. Abel, Esq., at Rayburn Cooper & Durham, P.A., in Charlotte, North Carolina, tells the Court that the Inadvertent Payments were made in error due to a misunderstanding by certain employees of the Debtors regarding the Employee Obligations Order. The Debtors were unable to put a stop on the Inadvertent Payments because most were paid by ACH transactions or had otherwise cleared Garlock's account at the time the error was discovered, she relates. The Debtors also owe additional accrued but unpaid prepetition obligations to the Sales Reps for their services during the few days of June before the Petition Date, totaling $8,652. According to the Debtors, the Sales Reps' services are integral to the continued success of Garlock's enterprise, and the loyalty and dedication of the Sales Reps are essential to the Debtors' efforts to preserve and maximize the value of their businesses and assets. Accordingly, the Debtors sought and obtained the Court's approval to: (i) ratify the Inadvertent Payments; and (ii) authorize them to pay additional prepetition amounts owing to the Sales Reps in a timely manner. Ms. Abel states that Section 507(a)(4)(B) of the Bankruptcy Code provides that claims for sales commissions earned within 180 days before the Petition Date have priority to the extent of $11,725 per individual corporation with only one employee. With respect to Paul Sachs, Dick Pearson, and Bob Coleates, who each received Inadvertent Payments exceeding $11,725, the higher commissions earned are a reflection of greater contribution of these Sales Reps for the Debtors' sales, she points out. Ms. Abel stresses that the commissions earned from the Debtors represent more than 75% of the Sales Reps' incomes, except for Intexc LLC. 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) GENCORP INC: Directors Receive Shares as Retainer Fees ------------------------------------------------------ Effective March 24, 2010, the Board of Directors of GenCorp Inc. approved a new Director Compensation Program which allows Directors to receive GenCorp common stock in lieu of their cash compensation. On July 15, 2010, the Company's directors received shares of common stock in lieu of annual cash retainer fees. Also pursuant to the new Director Compensation Program, if a Director elects to receive common stock in lieu of at least 50% of his cash compensation, the Company will grant restricted shares equal in value to 50% of the amount of cash compensation he elects to receive in common stock. The restricted shares will vest on the earlier of (i) the date of the Director's retirement from the Board, and (ii) one year after the grant date. On July 15, 2010, the directors also received restricted shares. Thomas A. Corcoran disclosed received 1,302 shares in lieu of annual cash retainer fees; and 651 restricted shares. The deals raised his stake to 27,265 common shares. David A. Lorber disclosed received 2,604 shares in lieu of annual cash retainer fees; and 1,302 restricted shares. The deals raised his stake to 39,324 common shares. James H. Perry disclosed received 2,604 shares in lieu of annual cash retainer fees; and 1,302 restricted shares. The deals raised his stake to 38,324 common shares. Martin Turchin disclosed received 2,604 shares in lieu of annual cash retainer fees; and 1,302 restricted shares. The deals raised his stake to 37,032 common shares. Mr. Turchin may also be deemed to indirectly hold 12,500 shares through various trusts. Warren G. Lichtenstein disclosed received 2,604 shares in lieu of annual cash retainer fees; and 1,302 restricted shares. The deals raised his stake to 34,451 common shares. He may also be deemed to indirectly hold 4,055,737 shares through Steel Partners II, L.P. Mr. Lichtenstein serves as the manager of Steel Partners LLC, the manager of Steel Partners II. James R. Henderson disclosed received 5,208 shares in lieu of annual cash retainer fees; and 2,604 restricted shares. The deals raised his stake to 52,070 common shares. About GenCorp Inc. Rancho Cordova, Calif.-based GenCorp Inc. (NYSE: GY) -- http://www.GenCorp.com/-- is a manufacturer of aerospace and defense products and systems with a real estate segment that includes activities related to the re-zoning, entitlement, sale, and leasing of the Company's excess real estate assets. The company's balance sheet at May 31, 2010, showed $963.4 million in total assets and $1.2 billion in total liabilities, for a $246.6 million total stockholders' deficit. * * * On March 26, 2010, Moody's Investors Service upgraded both GenCorp Inc.'s Corporate Family Rating to B2 from B3 and Probability of Default ratings to B2 from Caa1. In addition, the senior secured credit facilities were upgraded to Ba2 from Ba3, as well as the convertible subordinated notes to Caa1 from Caa2. The 9-1/2% senior subordinated notes were confirmed at B1. On January 22, 2010, Standard & Poor's Ratings Services raised its ratings of GenCorp Inc. to B- from CCC+ and removed all ratings from CreditWatch. GENERAL GROWTH: American High-Income Leaves Creditors Committee --------------------------------------------------------------- Pursuant to Section 1102 of the Bankruptcy Code, Tracy Hope Davis, Acting United States Trustee for Region 2, removed on July 15, 2010, American High-Income Trust as member of the Official Committee of Unsecured Creditors in General Growth Properties, Inc., and its debtor-affiliates' Chapter 11 cases. The existing members of the Committee are: * Eurohypo AG, New York Branch * The Bank of New York Mellon Trust Co. * Wilmington Trust * Taberna Capital Management, LLC * Macy's Inc. * Millard Mall Services, Inc. * Luxor Capital Group, LP * M&T Bank * HSBC Trust Company (Delaware), N.A. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Emergence to End Uncertainty for Maryland Malls --------------------------------------------------------------- General Growth Properties, Inc., owner of most malls in Baltimore, Maryland, intends to emerge from bankruptcy this year under a restructuring plan that analysts say would put the company in a stronger position to attract new tenants and reinvest in faltering properties, Andrea K. Walker of The Baltimore Sun relates. GGP's emergence from bankruptcy ends uncertainty over who would own GGP's Maryland properties, including Harborplace, The Gallery, Mall of Columbia, Towson Town Center, Mondawmin Mall, White Marsh Mall, and Cross Keys, Ms. Walker notes. "GGP is coming out of bankruptcy as a company with significantly lower debt that it better capitalized and more focused," Nate Isbee, an analyst at Baltimore-based Stifel Nicolaus, was quoted by The Baltimore Sun as saying. Mr. Isbee and other analysts, however, clarify that the impact on Baltimore-area malls may be minimal or largely unnoticeable to consumers, Ms. Walker states. "Ultimately, the fact that GGP is going to survive and now has some financial backing to move the company forward has got to be good for the malls," George Whalin, founder of California-based Retail Management Consultants, commented, Ms. Walker notes. However, Mr. Walker adds that GGP executives are going to divest themselves of some of those malls that are not profitable. In a related Baltimore Sun report, Capmark Finance Inc. and certain lenders to Baltimore-based Towson Commons LLC, initiated foreclosure proceedings in Baltimore County Circuit Court, as GGP agreed to turn over management responsibility to Jones Lang LaSalle. Capmark said in a court filing that it holds two loans totaling $66 million, Baltimore Sun relates. In separate news, Dennis Curtis, general manager of Bellis Fair, said he will be leaving his position at the mall to a similar position at Clackamas Town Center in Portland, Oregon, The Bellingham Herald relates. Both malls are owned by GGP, The Bellingham Herald adds. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Hughes Heirs Objects to Claims Estimation --------------------------------------------------------- To recall, General Growth Properties Inc. and its units are asking the Court to estimate seven unliquidated and duplicative claims filed by these parties: Claimant Claim Nos. -------- ---------- "Hughes Heirs" 7054, 7635, 7635, 7692 and 7892 Harold Morse 5266 James Lpatton, Jr 6524 "Despite the Debtors' sole focus on Summerlin in the Estimation Motion, there remains other significant assets under a 1996 Contingent Stock Agreement executed by General Growth Properties, Inc., as successor to The Rouse Company, that must be valued to determine the amount of a Final Valuation Date Payment," Platt W. Davis III, David G. Elkins and David R. Lummis, the CSA representatives, tell the Court. The other CSA Assets that remain subject to valuation include the Hughes Heirs' participation rights relating to several properties in Summerlin North, Summerlin West, and Summerlin South, Steven T. Hoort, Esq., at Ropes & Gray LLP, in New York, counsel to the Hughes Heirs, asserts. The Debtors have not provided PGP Valuation, Inc., appraiser to the Hughes Heirs, or the Hughes Heirs with any information regarding the valuation of those other CSA Assets, he complains. The Debtors also failed to address the various claims of the Hughes Heirs, Mr. Hoort further complains. The proofs of claim filed by the Representatives also included claims for (i) a final ECF Sharing Payment for the six-month period ended December 31, 2009; (ii) $3,454,000 for underpayments with respect to three previous ECF Sharing Payments, together with dividend adjustments and late payment interest; and (iii) reimbursement of improvement costs and miscellaneous other items, he says. For those reasons, no justification exists to deny the Hughes Heirs their contractual rights under the CSA, including the determination of the Final Valuation Date Payment pursuant to the Appraisal Panel Process, Mr. Hoort argues. "In light of the strong federal policy in favor of arbitration, any dispute regarding the claims of the Hughes Heirs under the CSA must be submitted to arbitration in accordance with the dispute resolution provisions of the CSA," he insists. Fairholme, Equity Committee Comment Fairholme Capital Management, LLC, supports the Estimation Motion asserting that "[t]he Hughes Heirs should not be permitted to delay the Debtors' exit from bankruptcy by having critical bankruptcy issues decided by arbitration rather than the Court." On behalf of the Official Committee of Equity Security Holders, John J. Jerome, Esq., at Saul Ewing LLP, in New York, insists that the Estimation Motion sets forth a reasonable valuation proposal that can be accomplished in a timely manner, within the proposed plan confirmation timeline, and with the participation of all interested parties with the right to be heard -- the Debtors, the CSA Representatives, and the Equity Committee, on behalf of current common equity holders. Contrary to the Hughes Heirs' assertion, the CSA process is not actually arbitration, but a sequential exercise that may involve mediation, arbitration and litigation, which will dangerously prolong the bankruptcy process, Mr. Jerome asserts. The Hughes Heirs simply cannot escape the Court's involvement in the claims allowance process, he maintains. Debtors Object Lift Stay The Debtors urge the Court to deny the unnecessary and untimely Lift Stay Motion of the "Hughes Heirs" because determination of the Debtors' obligations is best accomplished by the Court in a process where all interested parties can be heard and the Court can control the pace of proceedings to ensure timely resolution. Hughes Heirs refer to representatives and holders under a 1996 Contingent Stock Agreement executed by General Growth Properties Inc., as successor to The Rouse Company. The Debtors expect that the panel appraisal and arbitration process proposed by the Hughes Heirs would take at least 224 days to complete, Adam P. Strochak, Esq., at Weil, Gotshal & Manges LLP, in New York, points out. The panel appraisal alone likely would require at least 90 days, running up against the confirmation hearing on GGP's July 12, 2010, Joint Plan of Reorganization expected to occur this October 2010, he stresses. "The value of the Hughes Heirs Obligations is a gating issue for confirmation of GGP's July 12, 2010 Joint Plan of Reorganization," Mr. Strochak emphasizes. He notes that the Debtors have used the bankruptcy claims resolution process and will resolve the bulk of disputed claims in the ordinary course of business or in non- bankruptcy forums. However, the Hughes Heirs Obligations are different and seek significant value that will under the July 13 Plan and the Investment Agreements, dilute the value of the stock to be delivered to existing shareholders, he points out. While Summerlin is a complex asset, bankruptcy courts regularly value complex properties in many contexts and there is nothing so remarkable about this asset that the Court cannot make a determination of its value after hearing testimony from the parties' appraisers, Mr. Strochak insists. Moreover, the Hughes Heirs have not and cannot demonstrate cause to lift the automatic stay listed in In re Sonnax Indus. Inc., 907 F.2d 1280, he argues. Among others, the relief in the Lift Stay Motion would not result in a complete resolution of the issues, he maintains. Equity Committee Agrees with Debtors Counsel to the Official Committee of Equity Security Holders, John J. Jerome, Esq., at Saul Ewing LLP, in New York, reminds the Court that the investors who are funding the July 12 Plan require that the Debtors' obligations to the Hughes Heirs under the CSA be resolved as a condition to closing. This obligation to close terminates in less than five months, he stresses. The Hughes Heirs waited for almost eight months to file the Lift Stay Motion -- until the eve of the filing of the July 12 Plan -- in order to gain untoward leverage in an attempt to settle their disputes, he contends. "The Hughes Heirs' history of litigation is well known to the Court and the Hughes Heirs' attempt at further tactical litigation should not be permitted to interfere with the now unfolding confirmation process and their request for automatic stay relief should be denied," the Equity Committee tells the Court. About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Registers $2.15 Bil. in Exchangeable Notes ---------------------------------------------------------- General Growth Properties, Inc., reported that its subsidiary, New GGP, Inc., filed a registration statement on Form S-11 with the U.S. Securities and Exchange Commission relating to a proposed offering of up to $2,150,000,000 aggregate principal amount of Mandatorily Exchangeable Notes due 2011, according to a July 15, 2010 public statement. Upon GGP's emergence from bankruptcy, which will occur after completion of the 2011 Notes offering, New GGP will become the indirect parent corporation of GGP. The 2011 Notes will be exchangeable for shares of New GGP's common stock, subject to certain conditions, including the consummation of GGP's July 12, 2010 Joint Plan of Reorganization. Proceeds of the offering, which is subject to the approval of Judge Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York, would be used to replace a portion of the commitments to fund GGP's Plan from affiliates of Fairholme Fund, Inc., Pershing Square II, L.P. and Teachers Retirement System of Texas. Terms of 2011 Notes New GGP expects to pay $153,295 as a registration fee of the 2011 Notes, which fee is estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act. The 2011 Notes will be issued under an indenture to be entered into upon closing of the offering. The 2011 Notes will mature on January 31, 2011, unless earlier redeemed or exchanged. The 2011 Notes will accrue interest at a rate equal to (i) 0.5% per annum from the date of issuance to and including the 90th day after the issuance and (ii) 1.0% per annum after the 90th day in each case until the earliest of the mandatory exchange date, the redemption date and the maturity date. Holders of the 2011 Notes will have a first priority security interest in the escrow amount and the securities in which the proceeds are invested. The 2011 Notes will also rank equally in right of payment with all of New GGP's other existing and future obligations that are unsubordinated. The 2011 Notes will be guaranteed on a senior unsecured basis by GGP and that guarantee will rank equally in right of payment with all of GGP's existing and future obligations that are unsubordinated and will be effectively to debt secured by GGP's assets, to the extent of the value of those assets. The 2011 Notes will mandatorily exchange into shares of New GGP common stock based on the exchange price and the escrow amount will be released from escrow to New GGP upon satisfaction of these conditions, including: * The closing under the Cornerstone Investment Agreement with REP Investments LLC has occurred or will occur simultaneously with the exchange; * The effective date of the Plan has occurred or will occur simultaneously with the exchange; * All federal, state and other governmental approvals required for the issuance of the 2011 Notes and the shares of New GGP common stock issuable upon exchange of the 2011 Notes have been received or waived; * The shares of New GGP common stock issuable upon exchange of the notes have been authorized for listing on the New York Stock Exchange, subject to official notice of issuance; * Except as contemplated by the Plan, including the Spinco distribution, GGP will not have paid any dividends or made any distributions to holders of its common stock since the date of issuance of the 2011 Notes other than in order to maintain its qualification as a real estate investment trust, or "REIT," for U.S. federal income tax purposes and to avoid entity level income taxes; and * There is no pending, threatened or instituted action, proceeding or investigation by or before any court that directly or indirectly challenges the mandatory exchange or the issuance of the 2011 Notes or the shares of New GGP common stock issuable upon exchange of the notes. The exchange price will be $[] and the exchange rate will be about []shares of common stock per each $1,000 principal amount of notes. A full-text copy of the Registration Statement on Form S-11 is accessible for free at http://ResearchArchives.com/t/s?6686 About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Lowers Interest on $400 Million Loan ---------------------------------------------------- Bill Rochelle at Bloomberg News reports that General Growth Properties Inc. is seeking approval from the Bankruptcy Court on July 22 of a replacement financing reducing the interest rate by 8%. After filing under Chapter 11, General Growth landed $400 million in secured financing requiring interest at 12 percentage points higher than the London interbank borrowed rate. Barclays Bank PLC has agreed to make a replacement $400 million loan at a fixed rate of 5.5%, saving General Growth $2.7 million a month in interest. 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) GENOIL INC: Cipher 06 LLC No Longer Holds Shares ------------------------------------------------ New York-based Cipher 06 LLC disclosed that it no longer holds shares of Genoil Inc. common stock. Genoil Inc. was incorporated under the Canada Business Corporations Act. The Company is a technology development company based in Alberta, Canada. The Company is focused on providing innovative solutions to the oil and gas industry through the use of proprietary technologies. The Company's business activities are primarily directed to the development and commercialization of its upgrader technology, designed to convert heavy crude oil into light synthetic oil, and oil and water separation technology to treat and clean bilge water. The Company is listed on the TSX Venture Exchange under the symbol GNO as well as the Nasdaq OTC Bulletin Board using the symbol GNOLF.OB. * * * As reported by the Troubled Company Reporter on July 7, 2010, Genoil's balance sheet at Dec. 31, 2009, showed C$4.1 million in total assets and C$2.8 million in total liabilities for a stockholders' equity of C$1.3 million. The Company says its ability to continue as a going concern is in substantial doubt and is dependent on achieving profitable operations, commercializing its upgrader technology, and obtaining the necessary financing to develop this technology further. The Company added that it is not expected to be profitable during the ensuing 12 months and therefore must rely on securing additional funds from either issuance of debt or equity financing for cash consideration. During the year the Company secured net debt and equity financing of C$2,083,987. GOLDBERG-BAYMEADOWS: Wants to Pay Debts Prior to Case Dismissal --------------------------------------------------------------- Goldberg-Baymeadows, LLC, et al., ask the U.S. Bankruptcy Court for the Middle District of Florida to dismiss its Chapter 11 Bankruptcy case. The Debtors also request that prior to dismissal of the Bankruptcy case, they will pay all prepetition, undisputed, non-DBSI-related unsecured debt, well as all outstanding postpetition expenses owed to vendors. The Debtors propose to turnover the balance of all remaining funds to Wells Fargo Bank, N.A., as Trustee for the Registered Holders of TIAA Seasoned Mortgage Trust 2007-C4, Commercial Mortgage Pass- Through Certificates, Series 2007-C4. The Debtors further request that the Court reserve jurisdiction to resolve the pending motion for sanctions against Philadelphia Insurance Companies for violation of the automatic stay, which is scheduled for hearing on July 29, 2010. About Goldberg-Baymeadows, LLC Rancho Mirage, California-based Goldberg-Baymeadows, LLC, filed for Chapter 11 bankruptcy protection on March 2, 2010 (Bankr. M.D. Fla. Case No. 10-01637). Jason B. Burnett, Esq., at GrayRobinson, P.A., 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. GREENFIELD 8: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Greenfield 8, LLC 1760 East Pecos Road, Suite 338 Gilbert, AZ 85295 Bankruptcy Case No.: 10-21852 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: James M. Marlar Debtor's Counsel: Robert Lynn Larson, Esq. Larson Law Office PLLC 207 N Gilbert Road #001 Gilbert, AZ 85234 Tel: (480) 459-6080 Fax: (480) 304-3150 E-mail: robert@robertlarsonlaw.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 Chris Anderson, manager. GROVE STREET: Organizational Meeting to Form Panel on July 28 ------------------------------------------------------------- Roberta A. DeAngelis, Acting United States Trustee for Region 3, will hold an organizational meeting on July 28, 2010, at 1:00 p.m. in the bankruptcy case of Grove Street Realty Urban Renewal, LLC. The meeting will be held at United States Trustee's Hearing Room, Bridge View, 800-840 Cooper Street, Suite 102, Camden, NJ 08102. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. Sewell, New Jersey-based Grove Street Realty Urban Renewal, LLC, owns certain parcels of real property at 370 Grove Street in the Township of West Deptford, County of Gloucester, State of New Jersey, commonly known as RiverWinds Cove Apartments. The land consists of improvements generally consisting of two buildings containing in the aggregate approximately 215,832 square feet of Class A residential apartment space, comprised of approximately 200 units, and having approximately 259 parking spaces. The Company filed for Chapter 11 bankruptcy protection on July 1, 2010 (Bankr. D.N.J. Case No. 10-30427). Albert A. Ciardi, III, Esq., at Ciardi Ciardi & Astin, P.C., assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. GSC INVESTMENT: Earns $2.7 Million In Q1 Ended May 31 ----------------------------------------------------- GSC Investment Corp. filed its quarterly report on Form 10-Q, reporting net income of $2.7 million on $2.8 million of total investment income for the three months ended May 31, 2010, compared with net income of $5.4 million on $4.8 million of total investment income for the three months ended May 31, 2009. The Company's balance sheet as of May 31, 2010, showed $96.5 million in assets, $38.3 million of liabilities, and $58.1 million of net assets. As reported in the Troubled Company Reporter on June 2, 2010, Ernst & Young LLP, in New York, 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 is in default of its Revolving Facility. As of May 31, 2010, the Company remained in default on its Revolving Facility and as a result of the default, its lender has the right to accelerate repayment of the outstanding indebtedness and to foreclose and liquidate the collateral pledged. On April 14, 2010, the Company entered into a definitive agreement with Saratoga Investment Advisors, LLC and CLO Partners LLC and announced a $55 million recapitalization plan to cure the debt default. The recapitalization plan includes Saratoga and CLO Partners purchasing approximately 9.8 million shares of common stock of GSC Investment Corp. for $1.52 per share pursuant to a definitive stock purchase agreement and a commitment from Madison Capital Funding LLC to provide the Company with a $40 million senior secured revolving credit facility. Upon the closing of the transaction, the Company will immediately borrow funds under the new credit facility that, when added to the $15 million equity investment, will be sufficient to repay the full amount of the Company's existing debt and to provide the Company with working capital thereafter. The plan is subject to shareholder approval. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?66b4 Florham Park, N.J.-based GSC Investment Corp. (NYSE: GNV) is a specialty finance company that invests primarily in leveraged loans and mezzanine debt issued by U.S. middle-market companies, high yield bonds and collateralized loan obligations. It has elected to be treated as a business development company under the Investment Company Act of 1940. The Company may also opportunistically invest in distressed debt, debt issued by non- middle market companies, and equity securities issued by middle and non-middle market companies. GULFSTREAM CRANE: Plan Proposes to Sell Assets Prophet Equity ------------------------------------------------------------- Gulfstream Crane, LLC, filed with the U.S. Bankruptcy Court for the Southern District of Florida a proposed Plan of Liquidation. The Debtor relates that the Plan will represent a request to sell all of its right, title and interest in and to the assets to the designee of Prophet Equity LP, free and clear of claims, liens, interests and encumbrances. The confirmation order will constitute approval of the sale. The Debtor's remaining assets will either be surrendered to the secured creditor, or conveyed to the liquidating trustee. All distributions will be made by Newco, the Plan administrator, or the liquidating trustee, to the holde of each allowed claim Under the Plan, unsecured claims will receive a pro rata share of the Liquidating Trust Units. Equity interests will not retain any equity interest under the Plan, and will not receive any property or other distribution under the plan. Equity interests will be cancelled. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/GulfStreamCrane_Plan.pdf The Debtor is represented by: Michael D. Seese, Esq. Hinshaw & Culbertson LLP One East Broward Boulevard, Suite 1010 Ft. Lauderdale, FL 33301 Tel: (954) 467-7900 Fax: (954) 467-1024 About Gulfstream Crane, LLC Pompano Beach, Florida-based Gulfstream Crane, LLC -- dba General Crane -- is engaged primarily in the business of supplying and renting crane, hoist and rigging equipment. The Company operates and maintains facilities in Florida, Georgia and Texas. The Company filed for Chapter 11 bankruptcy protection on December 8, 2009 (Bankr. S.D. Fla. Case No. 09-37091). Michael D. Seese, Esq., who has an office in Fort Lauderdale, Florida, assists the Company in its restructuring effort. The Company listed $50,000,001 to $100,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. HACIENDA GARDENS: Taps Hulberg & Assoc. to Appraise San Jose Asset ------------------------------------------------------------------ The Hon. Charles Novack of the U.S. Bankruptcy Court for the Northern District of California authorized Hacienda Gardens, LLC, to employ Hulberg & Associates as appraiser. Hulberg & Associates will appraise the Debtor's commercial shopping center located at Meridian Avenue and Foxworthy in San Jose, California. Hulberg & Associates' fee for the appraisal will be billed on a time and expense basis, and is expected to cost in the range of $10,000 to $20,000. The hourly rate of Hulberg & Associates' personnel are: Norman C. Hulberg, MAI $355 Yvonne Broszus, MAI and vice-president $330 Appraisal Analysts $160 In an separate motion, the Debtor will be seeking to pay a $10,000 postpetition retainer to Hulberg. To the best of the Debtor's knowledge, Hulberg is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Hacienda Gardens, LLC Cupertino, California-based Hacienda Gardens, LLC, filed for Chapter 11 bankruptcy protection on May 24, 2010 (Bankr. N.D. Calif. Case No. 10-55423). Robert G. Harris, Esq., and Roya Shakoori, Esq., at the Law Offices of Binder and Malter, assist the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. HARVEST OAKS: Court to Consider Cash Collateral Access Tomorrow --------------------------------------------------------------- The Hon. Stephani W. Humrickhouse of the U.S. Bankruptcy Court for the Eastern District of North Carolina will consider tomorrow, July 22, 2010, at 2:00 p.m., Harvest Oaks Drive Associates, LLC's access to use cash collateral of the CSMC 2006-C5 Strickland Road, LLC and its special servicer, LNR Partners, Inc. The hearing will be held at this Court. The Debtor was authorized, on an interim basis, to use cash collateral until July 31 these categories and amounts: a. Net payroll ($15,400); b. Utilities (CP&L, Bell South, Waste Industries) ($6,500); c. Supplies ($750); d. Repairs and maintenance ($3,500); and e. Other expenditures to operate and maintain the Shopping Center as the secured lender may give its prior written consent. The Debtor will also be permitted to transfer funds from the cash collateral account to the payroll DIP account. As reported in the Troubled Company Reporter on June 14, the Debtor's indebtedness to the lender is secured by a deed of trust on the shopping center located in North Raleigh located at 9650 Strickland Road and 8801 Lead Mine Road, Raleigh, North Carolina. As adequate protection for any diminution in value of the lenders' collateral, the Debtor will grant the secured lender a first priority, perfected lien in all post-petition rents, income, and other proceeds of the property, to the same extent as secured lender has a first priority, perfected lien in the collateral prepetition. Additionally, the Debtor will pay the lender an amount equal to the total balance of the DIP general account as of July 31, less the sum of any advance rents received and any outstanding checks for budgeted expenses. About Harvest Oaks Raleigh, North Carolina-based Harvest Oaks Drive Associates, LLC, filed for Chapter 11 bankruptcy protection on April 21, 2010 (Bankr. E.D. N.C. Case No. 10-03145). Trawick H Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., assists the Company in its restructuring effort. The Company listed $15,832,000 in assets and $14,634,161 in debts. HELLER EHRMAN: Settles Retirees' Claims for $4 Million ------------------------------------------------------ Bankruptcy Law360 reports that former shareholders of Heller Ehrman LLP's professional corporations have settled their retirement claims with the bankrupt law firm, agreeing to a general unsecured claim of close to $4 million. According to Law360, the 17 retirees will receive $200,000 from the law firm's professional corporations, $175,000 from Heller Ehrman and an allowed general unsecured claim of $3.975 million in the firm's bankruptcy case. About Heller Ehrman, LLP Headquartered in San Francisco, California, Heller Ehrman, LLP -- http://www.hewm.com/-- was an international law firm of more than 730 attorneys in 15 offices in the United States, Europe, and Asia. The firm filed a voluntary petition under Chapter 11 of the Bankruptcy Code on December 28, 2008 (Bankr. N.D. Calif., Case No. 08-32514). Members of the firm's dissolution committee led by Peter J. Benvenutti approved a plan dated September 26, 2008, to dissolve the firm. The Hon. Dennis Montali presides over the case. John D. Fiero, Esq., and Miriam Khatiblou, Esq., at Pachulski, Stang, Ziehl, Young and Jones, represent the Debtors as counsel. Thomas A. Willoughby, Esq., at Felderstein Fitzgerald Willoughby & Pascuzzi LLP, represents the official committee of unsecured creditors of the Debtor. The firm listed assets and debts between $50 million and $100 million each in its bankruptcy petition. According to reports, the firm still has roughly $63 million in assets and 54 employees at the time of its filing. HIGHLANDS OF LOS GATOS: Voluntary Chapter 11 Case Summary --------------------------------------------------------- Debtor: The Highlands of Los Gatos, LLC 906 Capri Drive Campbell, CA 95008 Bankruptcy Case No.: 10-57370 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Jose) Judge: Arthur S. Weissbrodt Debtor's Counsel: Charles B. Greene, Esq. Law Offices of Charles B. Greene 84 W Santa Clara Street, #770 San Jose, CA 95113 Tel: (408) 279-3518 E-mail: cbgattyecf@aol.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 According to the schedules, the Company says that assets total $32,000,000 while debts total $23,000,000. The list of unsecured creditors the Company filed together with its petition does not contain any entry. The petition was signed by Sandy Harris, managing member. HOLLYWOOD BEACH: Cash Collateral Hearing Set for July 28 -------------------------------------------------------- The Hon. A. Jay Cristol of the U.S. Bankruptcy Court for the Southern District of Florida authorized, on an interim basis, Hollywood Beach Gate Resort, Inc., to use the cash Park Place Development LLC and Matthew Schloss and Ocean Way Corp. may claim an interest in. A final hearing on the Debtor's cash collateral access is set for July 28, 2010, at 10:30 a.m. The Debtor would use the cash collateral to fund its Chapter 11 case, pay suppliers and other parties. The tenants of the property are ordered to pay all past and future rent due immediately to Gyorgy Katz, as president of Hollywood Beach Gate Resort, Inc. The rent will not be paid to any other party, including lenders Park Place Development LLC or Matthew Schloss or Ocean Way Corp. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the lenders a replacement lien on the all postpetition property of the Debtor that is of the same nature and type as lender's prepetition collateral. About Hollywood Beach Gate Resort North Miami Beach, Florida-based Hollywood Beach Gate Resort, Inc., filed for Chapter 11 bankruptcy protection on May 25, 2010 (Bankr. S.D. Fla. Case No. 10-24331). Joel M. Aresty, Esq., who has an office in Miami, Florida, 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. HOLLYWOOD BEACH: Files Schedules of Assets and Liabilities ---------------------------------------------------------- Hollywood Beach Gate Resort, Inc., filed with the U.S. Bankruptcy Court for the Southern District of Florida its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $10,750,000 B. Personal Property $39,110 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $3,507,399 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $52,000 ----------- ----------- TOTAL $10,789,110 $3,559,399 About Hollywood Beach Gate Resort North Miami Beach, Florida-based Hollywood Beach Gate Resort, Inc., filed for Chapter 11 bankruptcy protection on May 25, 2010 (Bankr. S.D. Fla. Case No. 10-24331). Joel M. Aresty, Esq., who has an office in Miami, Florida, 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. INNKEEPERS USA: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Innkeepers USA Trust 340 Royal Poinciana Way, Suite 306 Palm Beach, Florida Bankruptcy Case No.: 10-13800 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- GP AC Sublessee LLC 10-13801 Grand Prix Addison (RI) LLC 10-13803 Grand Prix Addison (SS) LLC 10-13804 Grand Prix Albany LLC 10-13805 Grand Prix Altamonte LLC 10-13806 Grand Prix Anaheim Orange Lessee LLC 10-13807 Grand Prix Arlington LLC 10-13808 Grand Prix Atlanta (Peachtree Corners) LLC 10-13809 Grand Prix Atlanta LLC 10-13810 Grand Prix Atlantic City LLC 10-13811 Grand Prix Bellevue LLC 10-13812 Grand Prix Belmont LLC 10-13813 Grand Prix Binghamton LLC 10-13814 Grand Prix Bothell LLC 10-13815 Grand Prix Bulfinch LLC 10-13816 Grand Prix Campbell / San Jose LLC 10-13817 Grand Prix Cherry Hill LLC 10-13818 Grand Prix Chicago LLC 10-13819 Grand Prix Columbia LLC 10-13820 Grand Prix Denver LLC 10-13821 Grand Prix East Lansing LLC 10-13822 Grand Prix El Segundo LLC 10-13823 Grand Prix Englewood / Denver South LLC 10-13824 Grand Prix Fixed Lessee LLC 10-13825 Grand Prix Floating Lessee LLC 10-13826 Grand Prix Fremont LLC 10-13827 Grand Prix Ft. Lauderdale LLC 10-13828 Grand Prix Ft. Wayne LLC 10-13829 Grand Prix Gaithersburg LLC 10-13830 Grand Prix General Lessee LLC 10-13831 Grand Prix Germantown LLC 10-13832 Grand Prix Grand Rapids LLC 10-13833 Grand Prix Harrisburg LLC 10-13834 Grand Prix Holdings LLC 10-13793 Grand Prix Horsham LLC 10-13835 Grand Prix IHM, Inc. 10-13837 Grand Prix Indianapolis LLC 10-13838 Grand Prix Islandia LLC 10-13839 Grand Prix Las Colinas LLC 10-13840 Grand Prix Lexington LLC 10-13841 Grand Prix Livonia LLC 10-13843 Grand Prix Lombard LLC 10-13844 Grand Prix Louisville (RI) LLC 10-13845 Grand Prix Lynnwood LLC 10-13846 Grand Prix Mezz Borrower Fixed, LLC 10-13847 Grand Prix Mezz Borrower Floating 2, LLC 10-13796 Grand Prix Mezz Borrower Term LLC 10-13798 Grand Prix Montvale LLC 10-13849 Grand Prix Morristown LLC 10-13850 Grand Prix Mountain View LLC 10-13851 Grand Prix Mt. Laurel LLC 10-13852 Grand Prix Naples LLC 10-13853 Grand Prix Ontario Lessee LLC 10-13854 Grand Prix Ontario LLC 10-13855 Grand Prix Portland LLC 10-13856 Grand Prix Richmond (Northwest) LLC 10-13857 Grand Prix Richmond LLC 10-13858 Grand Prix RIGG Lessee LLC 10-13860 Grand Prix RIMV Lessee LLC 10-13861 Grand Prix Rockville LLC 10-13862 Grand Prix Saddle River LLC 10-13864 Grand Prix San Jose LLC 10-13865 Grand Prix San Mateo LLC 10-13866 Grand Prix Schaumburg LLC 10-13867 Grand Prix Shelton LLC 10-13868 Grand Prix Sili I LLC 10-13869 Grand Prix Sili II LLC 10-13870 Grand Prix Term Lessee LLC 10-13799 Grand Prix Troy (Central) LLC 10-13871 Grand Prix Troy (SE) LLC 10-13872 Grand Prix Tukwila LLC 10-13874 Grand Prix West Palm Beach LLC 10-13875 Grand Prix Westchester LLC 10-13876 Grand Prix Willow Grove LLC 10-13877 Grand Prix Windsor LLC 10-13878 Grand Prix Woburn LLC 10-13879 Innkeepers Financial Corporation 10-13880 Innkeepers USA Limited Partnership 10-13794 KPA HI Ontario LLC 10-13881 KPA HS Anaheim, LLC 10-13882 KPA Leaseco Holding Inc. 10-13883 KPA Leaseco, Inc. 10-13884 KPA RIGG, LLC 10-13885 KPA RIMV, LLC 10-13886 KPA San Antonio, LLC 10-13887 KPA Tysons Corner RI, LLC 10-13888 KPA Washington DC, LLC 10-13889 KPA/GP Ft. Walton LLC 10-13890 KPA/GP Louisville (HI) LLC 10-13892 KPA/GP Valencia LLC 10-13893 Type of Business: Innkeepers USA Trust is a U.S. real estate Investment trust with interests in about 73 hotels. It was bought out by Apollo Investment Corp. in 2007 in a $1.5 billion deal. See http://www.innkeepersusa.com/ Chapter 11 Petition Date: July 19, 2010 Bankruptcy Court: U.S. Bankruptcy Court Southern District of New York Bankruptcy Judge: Shelley C. Chapman Debtor's Counsel: James H.M. Sprayregen, P.C. Paul M. Basta, Esq. Jennifer L. Marines, Esq. Kirkland & Ellis LLP 601 Lexington Avenue New York, NY 10022 Tel: (212) 446-4800 Fax: (212) 446-4900 Anup Sathy, P.C. Marc J. Carmel, Esq. Kirkland & Ellis LLP 300 North LaSalle Chicago, IL 60654 Tel: (312) 862-2000 Fax: (312) 862-2200 Chief Restructuring Officer: Marc A. Beilinson Innkeeper USA Tust E-mail: MBeilinson@BeilinsonPartners.com Restructuring Advisor: AlixPartners 101 Cedar Springs Road, Suite 1100 Dallas, TX 75201 Tel: (214) 647-7500 Financial Advisor: Moelis & Company 399 Park Avenue 5th Floor New York, NY 10022 Tel: (212) 883-3800 Claims Agent: Omni Management Group, LLC 16501 Ventura Boulevard, Suite 440 Encino, CA 91436 Tel: (818) 906-8300 Estimated Assets: More than $1 billion Estimated Debts: More than $1 billion The petition was signed by Dennis M. Craven, Vice President, Chief Financial Officer and Treasurer. Debtor's List of 50 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ LNR Property Corporation $825mm Fixed Rate UNKNOWN 1601 Washington Ave., Ste 800 CMBS Pool - LB-UBS Miami Beach, FL 33139 2007-C7 (305) 695-5499 Midland Loan Services, Inc. $825mm Fixed Rate UNKNOWN P.O. Box 25965 CMBS Pool - LB-UBS Attn: President 2007-C6 Shawnee Mission, KS 66225 (913) 253-9709 Lehman ALI, Inc. $250mm Floating Rate UNKNOWN 1271 Avenue of the Americas Lehman Senior Mortgage 39th Floor Loan Attn: Michael E. Lascher New York, NY 10020 (646) 285-9336 Lehman ALI, Inc. $121mm Floating Rate UNKNOWN Lehman Mezzanine Loan LNR Partners, Inc. $47.4mm Capmark UNKNOWN CMBS Mortgage Loan LNR Partners, Inc. $37.6mm Capmark UNKNOWN CMBS Mortgage Loan Centerline Servicing, Inc. $35.0mm Capmark UNKNOWN CMBS Mortgage Loan LNR Partners, Inc. $25.6mm Merrill Lynch UNKNOWN CMBS Mortgage Loan LNR Partners, Inc. $25.2mm Merrill Lynch UNKNOWN CMBS Mortgage Loan LNR Partners, Inc. $24.2mm Merrill Lynch UNKNOWN CMBS Mortgage Loan CSE Mortgage LLC $24.2mm Capital Source UNKNOWN Mortgage Loan CWCapital Asset Mgmt. LLC $13.7mm Anaheim UNKNOWN CMBS Senior Mortgage Loan Marriott Hotels Trade $1,745,234 Hilton Hotels Corporation Trade 798,385 Oak Roofing, Inc Trade 288,895 Skadden, Arps, Slate, Trade 181,494 Guest Supply, Inc. Trade 175,515 Carrier Corp Trade 157,062 Hyatt Summerfield Suites Trade 144,000 Hd Supply Facilities Trade 138,512 Marx Realty & Improvement Co. Trade 128,771 Starwood Hotels & Resorts Trade 98,000 Worldwide Inc Fibercare Trade 91,738 Global Restaurant Design Corp. Trade 84,510 American Hotel Register Co. Trade 82,476 Waste Management Trade 72,541 Quoizel, Inc. Trade 68,426 Lg Electronics Usa Inc. Trade 65,994 Jmc Global Trade 65,219 Eric Ryan Corporation Trade 58,259 Office Depot Trade 54,211 Romala Stone, Inc. Trade 49,281 Triangle Renovations Trade 47,035 Pdq Consulting, Inc. Trade 43,153 Ecolab Trade 42,648 Onyx Sealcoating, Inc. Trade 37,237 Us Wall Decor Trade 33,635 Jenkins/Gales & Martinez Trade 32,081 Western State Design, Inc. Trade 32,004 Sysco Food Trade 31,309 Springfield Corporation Trade 30,657 Swank Audio Visuals, Llc Trade 27,829 Ecolab Pest Elimination Trade 26,255 Fire & Oak Trade 24,012 Brickman Group, Ltd. Trade 23,008 Elite Heating & Air Trade 21,623 Royal Cup Dine-Mor Trade 20,268 Rhs Commercial Llc Trade 20,000 Sunset Pools, Inc. Trade 19,343 Cintas Corporation Trade 18,383 INTELLIPHARMACEUTICS: Posts $316,400 Net Loss in Q2 Ended May 31 ---------------------------------------------------------------- Intellipharmaceutics International Inc. reported a net loss of $316,447 on $1,449,624 of revenue for the three-month period ended May 31, 2010, compared with a net loss of $224,662 on $118,460 of revenue for the three month period ended June 30, 2009. The increase in revenue can be primarily attributed to a drug development agreement that has been mutually terminated by the Company and another party as a result of which unearned revenue of approximately $1,439,000 was brought into income. The increased period-over-period loss is mainly due to increases in both research and development expenses and increases in selling, general and administrative expenses. Balance Sheet The Company's balance sheet at May 31, 2010, showed $6,391,276 in assets, $2,917,860 of liabilities, and $3,473,416 of stockholders' equity. At May 31, 2010, Intellipharmaceutics' cash totaled $4,068,780, compared with $5,048,100 at February 28, 2010. The decrease is a result of cash used in operating activities which was partially offset by receipt of C$900,000 in research & development tax credits during the three month period ended May 31, 2010. Going Concern As reported in the Troubled Company Reporter on March 5, 3010, Deloitte & Touche LLP, in Toronto, Ontario, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the 11 month period ended November 30, 2009. The independent auditors noted that of the Company's recurring losses from operations and inability to generate sufficient cash flows to meet its obligations and sustain its operations. The Company has incurred losses from operations since inception, and has an accumulated deficit of $15,050,451 as at May 31, 2010. "If the Company is not able to raise additional funds to finance its operations for the foreseeable future, there is substantial doubt about the Company's ability to continue as a going concern and realize its assets and pay its liabilities as they become due." A full-text copy of the press release is available for free at: http://researcharchives.com/t/s?66b8 A full-text copy of the unaudited interim financial statements for the three and six month periods ended May 31, 2010, is available for free at http://researcharchives.com/t/s?66b9 About the Company Toronto, Ontario-based Intellipharmaceuticals International Inc. (Nasdaq: IPCI) (TSX: I) -- http://www.intellipharmaceutics.com/-- is a pharmaceutical company specializing in the research, development and manufacture of novel or generic controlled release and targeted release oral solid dosage drugs. The Company's patented Hypermatrix(TM) technology is a unique and validated multidimensional controlled-release drug delivery platform that can be applied to the efficient development of a wide range of existing and new pharmaceuticals. Based on this technology, Intellipharmaceutics has a pipeline of products in various stages of development in therapeutic areas that include neurology, cardiovascular, gastrointestinal tract ("GIT"), pain and infection. ISP CHEMCO: S&P Raises Corporate Credit Rating to 'BB-' ------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its ratings on Wayne, N.J.-based ISP Chemco LLC, including its corporate credit rating to 'BB-' from 'B+'. The outlook is stable. "The upgrade reflects improving operating performance on solid volume increases across a variety of industrial and specialty product lines," said Standard & Poor's credit analyst Ket Gondha. "These volume increases have coincided with a lower cost base because of management's prior efficiency actions, resulting in stronger EBITDA." S&P expects earnings to continue to improve throughout the year, leading to stronger credit measures as well as improved liquidity. Moreover, S&P does not expect financial policies or any potential cash outlays, including those for dividends or contingent liabilities, to lead to any significant or permanent deterioration to the financial profile. The ratings on ISP Chemco reflect its aggressive financial profile and the risks associated with private ownership, balanced with a satisfactory business position as a global producer of specialty chemicals. Annual sales have historically been around $1.5 billion. JEFFERY CHESLEIGH: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Joint Debtors: Jeffery Michael Chesleigh Regina Lynn Chesleigh 1125 W. Baseline #3 Mesa, AZ 85210 Bankruptcy Case No.: 10-22147 Chapter 11 Petition Date: July 15, 2010 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: James M. Marlar Debtor's Counsel: Carlos M. Arboleda, Esq. Arboleda Brechner 4545 E. Shea Blvd., #120 Phoenix, AZ 85028 Tel: (602) 482-0123 Fax: (602) 482-4068 E-mail: arboledac@abfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-22147.pdf The petition was signed by the Joint Debtors. JENNIFER CONVERTIBLES: Organizational Meeting Set for July 23 ------------------------------------------------------------ Tracy Hope Davis, appointed by Attorney General Eric Holder as Acting U.S. Trustee for Region 2, will hold an organizational meeting on July 23, 2010, at 11:00 a.m. in the bankruptcy case of Jennifer Convertibles, Inc., et al. The meeting will be held at Office of the United States Trustee, Southern District of New York, 80 Broad Street, 4th Floor, New York, NY 10004. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. Jennifer Convertibles, Inc. -- http://www.jenniferfurniture.com/ -- is an owner and licensor of a group of sofabed specialty retail stores and leather specialty retail stores in the United States, with stores located throughout the Eastern seaboard, in the Midwest, on the West Coast and in the Southwest. As of Aug. 30, 2008, its stores included 157 Jennifer Convertibles stores and 14 Jennifer Leather stores. Of these 171 stores, the company owned 149 and licensed 22, including 21 owned and operated by a related private company, the related company, and one owned by a third party operated by the related company. Its operations are classified into two operating segments: Jennifer and Ashley. The Jennifer segment owns and licenses the sofabed specialty retail stores. The Ashley segment is a big box, full-line home furniture retail store. JENNIFER CONVERTIBLES: Exit Plan Gives 95% of Newco to Supplier --------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Jennifer Convertibles Inc. has agreement on a plan where the principal supplier Haining Mengnu Group Co. from China will end up owning 95% of the stock. Existing ownership will be extinguished. The other 5% of the new equity will go to other creditors. According to the report, Jennifer blamed the Chapter 11 filing on the "poor housing market and an overall weak U.S. economy." Comparable-store sales declined 19.6% for the quarter ended in May, compared with the same period in 2009. Revenue for fiscal 2009 was $94.2 million, a 22% decline from $120.1 million revenue the year before. Jennifer Convertibles Inc. filed for Chapter 11 on July 18, 2010 in Manhattan (Bankr. S.D.N.Y. Case No. 10-13779). Michael S. Fox, Esq., at Olshan Grundman Frome Rosenzweig & Wolosky, LLP, in New York, represents the Debtor in its Chapter 11 effort. TM Capital is financial advisor. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C. is special securities counsel. The petition listed assets of $25,974,334 against debts of $46,353,345. The Woodbury, New York-based company reported an operating loss of $13.2 million for the six months ended Feb. 27 on revenue of $48.3 million. The net loss in the period was $13.3 million. JENNIFER CONVERTIBLES: Case Summary & Creditors List ---------------------------------------------------- Debtor: Jennifer Convertibles, Inc. 417 Croosways Park Drive Woodbury, NY 11797 Tel: (516) 496-1900 Bankruptcy Case No.: 10-13779 Chapter 11 Petition Date: July 18, 2010 About the Debtor: Jennifer Convertibles claims to be a leading retailer in the field of home furnishings. Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Michael S. Fox, Esq. Olshan Grundman Frome Rosenzweig & Wolosky, LLP Park Avenue Tower 65 E. 55th Street New York, NY 10022 Tel: (212) 451-2300 Fax: (212) 451-2222 E-mail: mfox@olshanlaw.com Debtor's Financial Advisor: TM Capital Corp. Debtor's Special Securities Counsel: Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C. Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Harley J. Greenfield, director, chairman of the board and CEO. Debtor-affiliates filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Jennifer Convertibles Boylston MA, Inc. 10-_____ 7/18/10 Jennifer Chicago, Ltd. 10-_____ 7/18/10 Elegant Living Management, Ltd. 10-_____ 7/18/10 Hartsdale Convertibles, Inc. 10-_____ 7/18/10 Jennifer Management III Corp. 10-_____ 7/18/10 Jennifer Purchasing Corp. 10-_____ 7/18/10 Jennifer Management II Corp. 10-_____ 7/18/10 Jennifer Management V Ltd. 10-_____ 7/18/10 Jennifer Convertibles Natick, Inc. 10-_____ 7/18/10 Nicole Convertibles, Inc. 10-_____ 7/18/10 Washington Heights Convertibles, Inc. 10-_____ 7/18/10 Debtor's List of 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Haining Mengnu Group Co. Ltd. Trade Debt $16,673,770 101 Longxing Road Economic Development Zone Haining, Zhejiang 314400 China Creative Television Marketing Trade Debt $1,612,350 2550 North Hollywood Way, Suite 100 Burbank, CA 91505 Ashley Furniture Industries, Inc. Trade Debt $1,396,598 P.O. Box 190 Arcadia, WI 54612 Class Action Litigation Settlement $1,300,000 Case No.: C-09-3242-SI Ayisha Combs v. Jennifer Convertibles, Inc. Klaussner Furniture Industries Trade Debt $991,291 P.O. Box 220 405 Lewallen Street Asheboro, NC 247204 NBC Universal Trade Debt $416,284 P.O. Box 402971 Atlanta, GA 30384-2971 PIC TV Incorporated Trade Debt $406,957 PO Box 59665 Chicago, IL 60659-0665 PS Promotion Trade Debt $338,765 10798 E. Las Posas Road Camarillo, CA 93012 Stratford Company/Caye Uphols. Trade Debt $336,752 BOA Lockbox, 13933 Collection Drive Center Chicago, IL 60693 Brent Associates, Inc. Trade Debt $242,760 Fata Equities, LLC Trade Debt $210,571 376 Boylston St. Realty Trust Trade Debt $164,049 Woodbury Office Seven Trade Debt $157,290 Newsday Inc. Trade Debt $144,620 Boston Globe Trade Debt $140,080 301 E 66th St Assoc Ltd Ptnshp Trade Debt $140,000 Zimmerman Advertising Trade Debt $137,967 Restful Furniture Corp Trade Debt $137,544 WABC TV (CH7) Trade Debt $130,538 Los Angeles Times Trade Debt $128,317 The Star Ledger Trade Debt $124,550 Daily News, LP Trade Debt $124,550 The Star Ledger Trade Debt $116,201 Robert J. Sabbagh, George A. Trade Debt $115,330 Jara Enterprises, Inc. Contract $110,000 83rd St. Investors LLC Trade Debt $108,658 Nam Won Paek or Soon M Paek Trade Debt $104,664 111 Realty Company Trade Debt $103,543 Majestic Management Dobbin Corner, LLC Trade Debt $100,510 Edward E. Finch and Co. Inc. Trade Debt $99,554 LBI INT'L: Shares Delisted at NASDAQ OMX Stockholm & NYSE Euronext ------------------------------------------------------------------ LBI International AB will be delisted from NASDAQ OMX Stockholm and NYSE Euronext with last trading day on July 26, 2010 following the required permission by the Swedish Companies Registration Office for the merger with Obtineo Netherlands Holdings N.V., as announced on 25 February 2010. The SCRO is expected to register the merger, in which Obtineo will acquire all assets and assume all liabilities of LBi, on 2 August 2010. Upon registration of the merger and as earlier announced, the shareholders of LBi as of 30 July 2010 will receive 1 new share in Obtineo for every 1 (one) share held in LBi. Distribution of the new shares in Obtineo is expected to take place on 3 August 2010. Obtineo, to be renamed LBi International N.V., is expected to be listed on NYSE Euronext Amsterdam as from 5 August 2010. As a consequence, shares in LBi cannot be traded in the period from 27 July up to and including 4 August 2010. Following the listing of the LBi International N.V. shares on NYSE Euronext Amsterdam, a guaranteed rights issue of approximately EUR 10 million will be launched. The rights issue will be carried out with pre-emptive rights for LBi shareholders. The prospectus in connection with the admission to listing and trading on NYSE Euronext Amsterdam and in connection with the rights issue is expected to be published on or around July 23, 2010. Background on LBi International N.V. On February 25, 2010, LBi announced the merger with Obtineo to create Europe's largest marketing and technology agency with a total staff of more than 1,600 professionals across 15 countries and 33 offices. Obtineo is a combination of Bigmouthmedia, the largest search engine marketing specialist in Europe and EUR40 million of new capital, underwritten by institutional investors Janivo, Cyrte and The Carlyle Group, committed towards global expansion of the combined entity. The merged entity, which will trade under the trading symbol LBI, will be a Dutch N.V.. The total number of ordinary shares outstanding at the first day of trading will amount to 131,156,606. Luke Taylor, CEO of LBi said: "The first day of trading on NYSE Euronext Amsterdam will mark the launch of the much larger, more robust and better integrated LBi. The merger with Bigmouthmedia now adds best in class global search engine marketing capabilities to LBi's unique platform of digital services and further strengthens our position as Europe's largest marketing and technology agency with a global reach, focused on building believable Brands for Blue chip clients. With the EUR 50 million in cash from the private placement and the rights issue, we are well positioned to play a leading role in the consolidation within the industry and become a global leader". Fred Mulder, Chairman of the LBi Supervisory Board commented: "Within the long history of LBi, the single listing on NYSE Euronext Amsterdam marks a new period for the company, following a period of transition in which new management has taken over and operations were integrated and streamlined into a One Brand company. The company is clearly entering the next phase into becoming the global leader in its field, and with the clear commitment of new shareholders Carlyle, Cyrte and Janivo, I am very confident of the exciting future for LBi " Details regarding the delisting on Nasdaq OMX Stockholm and the listing NYSE Euronext Amsterdam As a result of the permission to execute the merger plan with Obtineo and following the final registration of the merger by the SCRO, LBi will be delisted from NASDAQ OMX Stockholm and NYSE Euronext Amsterdam with last trading day on 26 July 2010. The shareholders of LBi as of July 30, 2010 will receive 1 new share in Obtineo, to be renamed LBi International N.V. for every 1 share held in LBi. Distribution of the new shares in LBi International N.V. is expected to take place on August 3, 2010. LBi International N.V. is expected to be listed on NYSE Euronext Amsterdam as from 5 August 2010. There will be no listing of LBi International N.V. shares in Sweden. The new shares in LBi International N.V. will initially be settled via Euroclear Sweden AB. In order to trade the new shares in LBi International N.V. on NYSE Euronext Amsterdam, the shares must first be converted into shares that are subject to settlement with Euroclear Nederland. For nominee-registered shareholders in LBi, the nominee may execute such conversion automatically and without any further actions to be taken by the shareholders. Contact your nominee/account operator if you have any questions regarding the conversion of shares into the system operated by Euroclear Nederland. In respect of directly-registered shareholders with the VPC system operated by Euroclear Sweden AB, the new Obtineo shares will be credited to the same VP account where the LBi shares are held on 30 July 2010, i.e. the record date for the merger. To be able to trade in the new shares it is required that the new shares are transferred to a deposit account with a bank or stockbroker that is offering trading on NYSE Euronext Amsterdam. The reason for this is that trading on NYSE Euronext Amsterdam is settled through Euroclear Nederland and not via Euroclear Sweden. Shareholders holding their LBi shares on a VP account and who wish to be able to trade in the new LBi International N.V. shares on NYSE Euronext Amsterdam are recommended to transfer the LBi shares to a deposit account with a bank or stockbroker no later than on July 30, 2010 in order to be able to trade in LBi International N.V. shares as from the first trading day on August 5, 2010. If after the first trading day a directly-registered shareholder wants to be able to trade in the LBi International N.V. shares on NYSE Euronext Amsterdam, the shares must first be converted into shares eligible for settlement through Euroclear Nederland. Such conversion is subject to a fixed fee that is charged by the bank or stockbroker opening the deposit account on behalf of the shareholder. The amount of such fee is depending on which bank or stockbroker the shareholder has appointed. Indicative Timetable July 26, 2010 LBI International AB ceases trading on NASDAQ OMX and NYSE Euronext Amsterdam July 27 - August 4, 2010 No trading in LBi shares 29 July 2010 Effective Date of the merger between LBi and Obtineo, Obtineo renamed LBi International N.V. August 3, 2010 Distribution of LBi International N.V. shares August 5, 2010 Listing of LBi International N.V. shares on NYSE Euronext Amsterdam LEHMAN BROTHERS: Bondholders Opposing Substantive Consolidation --------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that The Bank of New York Mellon Trust Co. is asserting that the argument for substantive consolidation of all of the Lehman companies under a Chapter 11 plan is "meritless." BNY is trustee for holders of $700 million in bond debt that is an obligation of Lehman Brothers Commodity Services Inc. The debt is guaranteed by the Lehman holding company. The Bloomberg report recounts that in late June, creditors with $15.5 billion in claims against the Lehman holding company filed papers favoring substantive consolidation of the 23 Lehman affiliates. The creditors of the holding company who filed papers favoring substantive consolidation included California Public Employees' Retirement System, Canyon Capital Advisors LLC, Fortress Credit Opportunities Advisors LLC, Owl Creek Asset Management LP and Paulson & Co. According to Bloomberg, under Lehman's plan, Lehman Brothers Commodity Services would seem to be making "substantial gifts" to holding company creditors, BNY said. The New York-based bank contends the plan gives "too much value" to holding company creditors "to reward them for substantive consolidation claims" that holding company creditors "cannot possibly win." Bloomberg relates that Lehman filed a revised Chapter 11 plan in April where creditors of each Lehman company are treated according to the claims against the particular affiliate and its assets. The plan would allow creditors to enforce guarantees where one Lehman company, typically the holding company, guaranteed debt owing by a subsidiary. In substantive consolidation, as the Calpers group would prefer, guarantee claims aren't recognized. All assets of all companies are thrown into one pot, and unsecured creditors of all companies are treated the same. 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) LIONS GATE: Icahn Group Commences Tender Offer for Common Shares ---------------------------------------------------------------- Carl C. Icahn disclosed that certain of his affiliated entities, which collectively hold approximately 37.9% of Lions Gate Entertainment Corp.'s outstanding common shares, have commenced a tender offer for UP TO ALL of the outstanding common shares of Lions Gate. The purchase price in the Offer is USD $6.50 per share in cash. Shareholders will be entitled to elect to receive payment in Canadian dollars. Among other customary conditions, the Offer is conditioned on Lions Gate not entering into any material transaction outside of the ordinary course of business and all rights issued or issuable under the poison pill adopted by Lions Gate's board of directors on July 1, 2010 being cease-traded or otherwise eliminated. The Offer is not subject to financing. Following the expiration of the subsequent offering period with respect to the Icahn Group's previous tender offer, representatives of the Icahn Group and Lions Gate entered into discussions concerning certain corporate governance matters (including the possibility of adding persons designated by the Icahn Group to Lions Gate's board of directors) and certain acquisition possibilities. These discussions resulted in the parties entering into a 10-day "standstill" agreement on July 9, 2010, which provided, among other things, that the Icahn Group and Lions Gate would work together on certain acquisition opportunities and that Lions Gate would: (i) not set a record date with respect to the 2010 annual meeting of shareholders or any special meeting of shareholders before September 2, 2010 and (ii) not take certain other actions adverse to the interests of the Icahn Group. The 10-day standstill period terminated at midnight, New York time, on July 19, 2010. While certain discussions regarding acquisition opportunities might continue in the future, the Icahn Group determined that there were no immediate opportunities that would merit extension of the 10-day standstill period. Lions Gate's latest actions convince the Icahn Group that it is extremely unlikely that the current management and board of directors of Lions Gate will allow shareholders of Lions Gate to make their own determination on the future path of the company, including decisions to make a major acquisition. The Icahn Group therefore intends to seek to replace all or the lion's share of Lions Gate's board of directors with the Icahn Group's nominees. Lions Gate has stated that the acquisition by any person or group of more than 50% of its common shares could result in the acceleration of more than $500 million of its indebtedness if lenders were to declare events of default as a result of this "change in control". If such acceleration occurs, the Icahn Group believes that Lions Gate will need to immediately secure a replacement source of funding in order to continue to operate its business and avoid bankruptcy. The Icahn Group believes this is a problem of Lions Gate's own making - had the board of directors not agreed to these controversial "poison put" provisions, the company would not now be facing this very difficult situation. As previously stated, the Icahn Group intends to hold the board responsible for any costs and damages the company might incur from having to obtain emergency financing to alleviate this situation. The Icahn Group reserves the right to engage in discussions with third parties regarding possible future acquisitions. Lions Gate may be part of these discussions. However, there can be no assurance that these discussions will take place. The terms and conditions of the Offer are set forth in an Offer to Purchase, Letter of Transmittal and other related materials to be distributed to holders of the Common Shares and filed with the SEC as exhibits to the Icahn Group's Schedule TO and with the Canadian securities authorities on SEDAR. Shareholders with questions about the tender offer may call D.F. King & Co., Inc., the Information Agent, toll-free at 800-859-8511 (banks and brokers call 212-269- 5550). About Lions Gate British Columbia-domiciled and Santa Monica, California- headquartered Lions Gate is a leading, diversified independent producer and distributor of motion pictures, home entertainment, television programming and animation worldwide and holds a majority interest in the pioneering CinemaNow VOD business. The Lions Gate brand name is synonymous with original, cutting edge, quality entertainment in markets around the world. As reported by the Troubled Company Reporter on March 10, 2010, Standard & Poor's Ratings Services revised its rating outlook on Lions Gate to negative from stable. At the same time, S&P affirmed ratings on Lions Gate, including the 'B-' corporate credit rating. Lions Gate carries Moody's "B2" corporate family rating and probability of default rating. LITTLE TOKYO: Files for Ch. 11 to Stop Kyoto Grand Foreclosure -------------------------------------------------------------- Little Tokyo Partners LP filed for Chapter 11 on July 15 in Los Angeles (Bankr. C.D. Calif. Case No. 10-39113). Bill Rochelle at Bloomberg News reports that Little Tokyo, the owner of the Kyoto Grand Hotel in downtown Los Angeles, was facing mortgage foreclosure on July 16. The property has two mortgages totaling $44 million. There was a default since January. Kyoto Grand is a 21-story hotel built in 1977. It has 434 rooms. It adjoins the three-story Weller Court outdoor mall which is also in Chapter 11. Financial problems were caused by a "precipitous drop in revenue starting in the last quarter of 2008," a court filing says. The petition listed assets and debts of $10,000,001 to $50,000,000. LIZ CLAIBORNE: To Exit Branded Outlet Stores in U.S. & Puerto Rico ------------------------------------------------------------------ Following a comprehensive review, Liz Claiborne Inc. plans to exit its Liz Claiborne branded outlet stores in the United States and Puerto Rico. As a result of this decision, the Company expects the meaningful operating losses related to this business to be eliminated in early 2011 when this action is anticipated to be completed. The Company's other outlet stores in the United States and Puerto Rico for its Juicy Couture, Lucky Brand, Kate Spade and Kensie brands are not impacted by this decision. William L. McComb, Chief Executive Officer of Liz Claiborne Inc., said: "With the launches of the Liz Claiborne brand at JCPenney and Liz Claiborne New York at QVC -- both next month -- we're announcing today that we will be exiting our 87 Liz Claiborne branded outlet stores in the United States and Puerto Rico, the majority of which will be exited in the coming months." Mr. McComb continued, "A number of factors precipitated this decision. Our current fleet of Liz Claiborne branded outlet stores was originally designed and leased to handle clearance for many brands in our portfolio -- an outdated consumer proposition and one that no longer makes economic sense, given the vast changes we have made to our portfolio and business strategy over the past three years." Mr. McComb concluded, "In addition, our corporate strategy allocates the majority of our capital dollars to our retail-based Direct Brands, while leveraging a stable of Partnered Brands for additional revenue generation and to help support our growth opportunities across the Company. Considering the capital efficient, licensing-oriented model for the Liz Claiborne brand, our organizational energy and resources are better used to support successful and profitable businesses at JCPenney and QVC." In connection with this action, the Company currently estimates that it will incur non-cash impairment charges of approximately $7.0 million in the second quarter of 2010 and may incur additional non-cash charges in future periods. The Company also expects to record cash charges related to lease terminations and severance and is in the process of determining these cash charges. The Company will provide more comments on this process during its second quarter earnings conference call, which is scheduled for August 5th at 10am. About Liz Claiborne Liz Claiborne Inc. -- http://lizclaiborneinc.com-- designs and markets a global portfolio of retail-based premium brands including Juicy Couture, Kate Spade, Lucky Brand and Mexx. The Company also has a refined group of department store-based brands with strong consumer franchises including the Monet family of brands, Kensie, Kensiegirl, Mac & Jac, and the licensed DKNY(R) Jeans and DKNY(R) Active brands. The Dana Buchman and Axcess brands are sold at Kohl's, and beginning in Fall 2010, the Liz Claiborne and Claiborne brands will be available at JCPenney and the Liz Claiborne New York brand designed by Isaac Mizrahi will be available at QVC and internationally. * * * As reported in the Troubled Company Reporter on March 25, 2010, Standard & Poor's Ratings Services said that it lowered its corporate credit rating on New York-based Liz Claiborne Inc. to 'B-' from 'B'. The outlook is developing. MICHAEL VICK: Trustee Sues Family for Pre-Bankruptcy Transfers -------------------------------------------------------------- Bill Rochelle at Bloomberg News reports that the trustee for the creditors of Michael D. Vick sued the professional football quarterback's relatives this month to recover what the complaint describes as "gifts and other transfers" received before Vick's Chapter 11 filing in July 2008. According to the report, those sued include Vick's mother, sister, the mother of his first child, and a woman described in the complaint as Vick's fiancee and mother of his second and third children. The amount of the transfers wasn't specified. About Michael Vick Michael Dwayne Vick is a professional American football quarterback for the Philadelphia Eagles of the National Football League. He previously played for the Atlanta Falcons for 6 seasons before serving 18 months of a 23-month sentence in prison for his involvement in an illegal dog fighting ring. In April 2007, Vick was implicated in an extensive and unlawful interstate dogfighting ring that operated over a period of five years. He pleaded guilty and was sentenced to 23 months in federal prison. With loss of his NFL salary and product endorsement deals, combined with previous financial mismanagement, Vick filed for Chapter 11 bankruptcy in July 2008. Mr. Vick filed a Chapter 11 petition on July 7, 2008 (Bankr. E.D. Va. Case No. 08-50775). Dennis T. Lewandowski, Esq., and Paul K. Campsen, Esq., at Kaufman & Canoles, P.C., represent the Debtor in his restructuring efforts. Mr. Vick listed assets of $10 million to $50 million. Vick was released from prison to home confinement on May 20, 2009. On July 27 2009, NFL Commissioner Roger Goodell conditionally reinstated Mr. Vick. Mr. Vick in August 2008 won confirmation of a proposed Chapter 11 plan that proposes to give up a portion of his future income over six years. The plan assumed that he's reinstated by the National Football League and signs a new contract in order to repay unsecured creditors owed in excess of $19 million. MINAXI PATEL: Case Summary & 10 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Minaxi G. Patel 2040 English Turn Dr. Presto, PA 15142 Bankruptcy Case No.: 10-20822 Chapter 11 Petition Date: July 2, 2010 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: James M. Marlar Debtor's Counsel: Eric Slocum Sparks, Esq. 110 S Church Avenue #2270 Tucson, AZ 85701 Tel: (520) 623-8330 Fax: (520) 623-9157 E-mail: eric@ericslocumsparkspc.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-20822.pdf The petition was signed by Mr. Patel. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- MSA1, LLC 10-07716 03/22/10 MISSION TOWERS: Section 341(a) Meeting Scheduled for Aug. 6 ----------------------------------------------------------- The U.S. Trustee for Region 20 will convene a meeting of Mission Towers Properties I LLC's creditors on August 6, 2010, at 9:00 a.m. The meeting will be held at Room B-56 US Courthouse, 401 North Market, Wichita, KS 67202. 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. Leawood, Kansas-based Mission Towers Properties I, LLC, owns a nine-story office building known as Mission Towers (the Property) in Mission, Kansas. The Company filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. D. Kan. Case No. 10-12286). Edward J. Nazar, Esq., who has an office in Wichita, Kansas, assists the Company in its restructuring effort. The Company listed $11,211,322 in assets and $16,085,073 in liabilities. MISSION TOWERS: Taps Redmond & Nazar as Bankruptcy Counsel ---------------------------------------------------------- Mission Towers Properties I, LLC, has asked for authorization from the U.S. Bankruptcy Court for the District of Kansas to employ Redmond & Nazar, L.L.P., as bankruptcy counsel. Redmond & Nazar will, among other things: a. advise the Debtor concerning and assist in the negotiation and documentation of financing agreements, cash collateral orders and related transactions; b. investigate into the nature and validity of liens asserted against the property of the Debtor, and advise the Debtor concerning the enforceability of the liens; c. investigate and advise the Debtor concerning and take action as may be necessary to collect income and assets in accordance with applicable law, and recover property for the benefit of the Debtor's estate; and d. prepare applications, motions, pleadings, orders, notices, schedules and other documents as may be necessary and appropriate, and review the financial and other reports to be filed herein. Redmond & Nazar will be paid based on the hourly rates of its personnel: Edward J. Nazar $285 Martin R. Ufford $220 W. Thomas Gilman $220 Jeffrey W. Rockett $180 Nicholas R. Grillot $160 Edward J. Nazar, Martin R. Ufford, W. Thomas Gilman, Jeffrey W. Rockett, and Nicholas R. Grillot, attorneys at Redmond & Nazar, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Leawood, Kansas-based Mission Towers Properties I, LLC, owns a nine-story office building known as Mission Towers (the Property) in Mission, Kansas. The Company filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. D. Kan. Case No. 10-12286). The Company listed $11,211,322 in assets and $16,085,073 in liabilities. MISSION TOWERS: Wants to Use Union Bank's Cash Collateral --------------------------------------------------------- Mission Towers Properties I, LLC, has asked for authorization from the U.S. Bankruptcy Court for the District of Kansas to use the cash collateral of Union Bank. These documents secure Union Bank's claim against the Debtor: a. promissory note, dated September 16, 2004, in the original principal amount of $7,697,259.67 (the First Note); b. mortgage, assignment of leases, security agreement, fixture filing and financing statement, recorded September 21, 2004, modified by amended and restated mortgage, assignment of leases, security agreement, fixture filing and financing statement dated September 29, 2009, recorded October 8, 2009 (the First Mortgage); c. Promissory Note dated March 31, 2006, in the original principal amount of $2,230,000 (the Second Note); d. mortgage, assignment of leases, security agreement, fixture filing and financing statement, recorded April 3, 2006, modified by an amended and restated mortgage, assignment of leases, security agreement, fixture filing and financing statement, recorded October 8, 2009 (the Second Mortgage); e. promissory note dated September 11, 2008, in the original principal amount of $2,650,000 (the Third Note); f. mortgage, security agreement and fixture filing, executed by the Debtor, and recorded on September 16, 2008, modified by an amended and restated mortgage, security agreement and fixture filing, in the amount of $3,250,000, dated September 29, 2009, recorded March 5, 2010 (the Third Mortgage); g. assignment of lease, rents and profits, recorded on September 16, 2008; h. loan modification agreement, dated March 13, 2009, which increased the face amount of the Third Note from $2,650,000 to $3,250,000, provided for interest-only payments on the Notes between December 2008 through August 2009, and required that the Debtor enter into a lockbox arrangement with Union Bank (the Loan Modification Agreement); and i. lock box and restricted account agreement March 13, 2009 (the Lock Box Agreement), pursuant to which the Debtor agreed to direct its tenants to remit payment of all rents directly to the plaintiff, and rents to be deposited into a restricted access depository account in the Debtor's name (the Lock Box Accounts) and applied in accordance with the Lock Box Agreement. The Debtor was indebted to Union Bank in the principal amount of $7,373,787.53, plus accrued interest of $61,413.17, late charges of $4, 250, release fees of $50 and other charges authorized under the First Note; the principal amount of $2,199,051.25, plus accrued interest of $61,786.70, late charges of $11,659.55, release fees of $50 and other charges authorized under the Second Note; and the principal amount of $2,847,137.23, plus accrued interest of $4,982.49, late charges of $16,616.14, release fees of $50 and other charges authorized under the Third Note. Nicholas R. Grillot, Esq., at Redmond & Nazar, L.L.P., the attorney for the Debtor, explains that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. The Debtor will use the collateral pursuant to a budget, a copy of which is available for free at: http://bankrupt.com/misc/MISSION_TOWERS_budget.pdf In exchange for using the cash collateral, the Debtors propose to grant Union Bank valid, enforeceable and duly perfected first- priority lien and security interest and will have a continuing lien and security interest on the Property and any and all rents, income and profits arising therefrom. About Mission Towers Leawood, Kansas-based Mission Towers Properties I, LLC, owns a nine-story office building known as Mission Towers (the Property) in Mission, Kansas. The Company filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. D. Kan. Case No. 10-12286). Edward J. Nazar, Esq., who has an office in Wichita, Kansas, assists the Company in its restructuring effort. The Company listed $11,211,322 in assets and $16,085,073 in liabilities. NEC HOLDINGS: Obtains Approval for $139 Million Financing --------------------------------------------------------- Bill Rochelle at Bloomberg News reports that National Envelope Corp. received final approval on July 16 for its debtor-in- possession financing. General Electric Capital Corporation as DIP lender, and as administrative agent, and other lenders have committed to provide up to $138,955,324. A copy of the DIP financing agreement is available for free at: http://bankrupt.com/misc/NEC_HOLDINGS_dipfinancingpact.pdf Kara Hammond, Esq., at Young Conaway Stargatt & Taylor, LLP, the attorney for the Debtors, explained that the Debtors need the money to fund their Chapter 11 case, pay suppliers and other parties, pay down the revolver and Term A advances, which amounts are stipulated to be secured by the prepetition collateral. The prepetition credit agreement provides for, among other things, a Term A loan of $75 million. The Debtors will pay interest to the Agent, for the ratable benefit of the Lenders in accordance with the various loans being made by each Lender, in arrears on each applicable interest payment date, at these rates: (i) revolving credit advances, the index rate plus the applicable revolver index margin per annum based on the aggregate revolving credit advances outstanding from time to time; and (ii) with respect to the sing line loan, the index rate plus the applicable revolver index margin per annum. These are the applicable margins: Applicable Revolver Index Margin 3.25% Applicable L/C Margin 3.25% Applicable Unused Line Fee Margin 1.00% In the event of default, the interest rates applicable to the loans and the letter of credit fees will be increased by 2.00% per annum. The financing arrangements will be in effect until the Commitment Termination Date, and the Loans and all other obligations will be automatically due and payable in full on the date. The Debtors' obligations under the DIP facility are secured by valid, binding, continuing, enforceable, fully perfected and unavoidable first priority senior priming security interests and liens in and all prepetition and postpetition property and assets of the Debtors. The DIP Facility Agreement sets forth these sale milestones that the Debtors must take all action reasonably necessary to achieve: (a) execution of a definitive asset purchase agreement by July 2, 2010; (b) filing of a motion seeking approval of agreed bidding procedures and authority to sell the Debtors' assets pursuant to Section 363 of the U.S. Bankruptcy Code by July 6, 2010; (c) entry of court order approving the bidding procedures by July 16, 2010; (d) an auction for the sale of the Debtors' assets pursuant to Section 363 by August 23, 2010; (e) entry of a court order authorizing the sale of the Debtors' assets pursuant to Section 363 by August 27, 2010; and (f) closing of the sale pursuant to the asset purchase agreement by August 31, 2010. July 22 Hearing on Gores Group Sale The bankruptcy judge will convene a hearing on July 22 to consider approval of rules for an auction where Gores Group LLC will make the first bid at $134.5 million. If the judge goes along, other bids will be due initially on Aug. 16, followed by an auction on Aug. 20 and an Aug. 23 hearing for approval of the sale. About National Envelope Corporation Uniondale, New York-based National Envelope Corporation -- http://www.nationalenvelope.com/-- is the largest manufacturer of envelopes in the world with 14 manufacturing facilities and 2 distribution centers and approximately 3,500 employees in the U.S. and Canada. The company is an environmental leader in the paper and envelope converting industries with certifications from the Forest Stewardship Council (FSC), Rainforest Alliance, Sustainable Forestry Initiative (SFI), Programme for the Endorsement of Forest Certification (PEFC), Chlorine Free Products Association, and Green Seal. NEC Holdings Corp., together with affiliates, including National Envelope Inc., filed for Chapter 11 on June 10, 2010 (Bankr. D. Del. Lead Case No. 10-11890). Kara Hammond Coyle, Esq., at Young Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel. David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R. Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The Garden City Group is the claims and notice agent. NEC Holdings' petition says assets and debts range from $100,000,001 to $500,000,000. NEC HOLDINGS: Committee Seeks to Retain Professionals ----------------------------------------------------- The Official Committee of Unsecured Creditors for NEC Holdings Corp., National Envelope Corp. and their affiliates asked the U.S. Bankruptcy Court for the District of Delaware to approve its retention of two firms: Pachulski Stang Ziehl & Jones LLP as counsel and Morgan Joseph & Co., Inc. as financial advisor and investment banker, netDockets Blog reports. According to the report, the Creditors Committee was appointed by the U.S. Trustee on June 22, 2010. The members of the Creditors' Committee are: * United Steelworkers * 29-10 Hunters Point Ave. Co. LLC * Multi-Plastics, Inc. * Henkel Corporation * Gadge USA, Inc. * Neenah Paper, Inc. * Team Ten LLC, d/b/a American Eagle Paper Mills About National Envelope Uniondale, New York-based National Envelope Corporation -- http://www.nationalenvelope.com/-- manufactures envelopes. It has 14 manufacturing facilities and 2 distribution centers and approximately 3,500 employees in the U.S. and Canada. NEC Holdings Corp., together with affiliates, including National Envelope Inc., filed for Chapter 11 on June 10, 2010 (Bankr. D. Del. Lead Case No. 10-11890). Kara Hammond Coyle, Esq., at Young Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel. David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R. Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The Garden City Group is the Debtors' claims and notice agent. NEC Holdings' petition says assets and debts range from $100,000,001 to $500,000,000. PEARLAND SUNRISE: Files List of 20 Largest Unsecured Creditors -------------------------------------------------------------- Pearland Sunrise Lake Village I LP has filed with U.S. Bankruptcy Court for the Western District of Texas its list of 20 largest unsecured creditors, disclosing: Entity Nature of Claim Claim Amount ------ --------------- ------------ Centerline Capital Group Attention: Kathy Patterson 5521 N. O'Connor Blvd. Suite 600 $13,650,000 Irving, TX 75039 Fee Simple Value: $8,471,129 Gilman & Allison c/o Benton J. Allison, Douglas Gilman J.W. Wauson, F. Spagnoletti, M Phillips Non-Purchase Money $785,330 John R. Carlew 10516 FM 1431 East Marble Falls, TX 78654 Non-Purchase Money $710,620 Sumsua Interests, Ltd. 10516 FM 1431 East Marble Falls, TX 78654 Non-Purchase Money $700,620 CrossCheck Non-Purchase Money $120,120 O'Conner Commercial Tax Division Non-Purchase Money $43,988 Cemex Construction Materials, $29,754 LP Non-Purchase Money Value: $0.00 Robert's Property Tax, LLC Non-Purchase Money $27,407 Direct Energy Non-Purchase Money $26,744 Cory Davis Contracting Non-Purchase Money $24,625 T T Eifs & Plaster, LLC Non-Purchase Money $13,385 Old Spring Glass Non-Purchase Money $9,670 Nationwide Insurance Non-Purchase Money $9,241 ThyssenKrupp Elevator Corporation Non-Purchase Money $8,031 Hewitt Air Tex, Inc. Non-Purchase Money $5,855 Page Partners Non-Purchase Money $5,724 J.B. Contractors & Development, $4,845 LLC Non-Purchase Money Value: $0.00 City of Pearland Non-Purchase Money $4,520 C.A. Garrard Company Non-Purchase Money $2,850 Pronote, Inc. Non-Purchase Money $2,805 Marble Falls, Texas-based Pearland Sunrise Lake Village I, LP, dba SRLVI, filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. W.D. Tex. Case No. 10-11926). Frank B. Lyon, Esq., who has an office in Austin, Texas, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. The Company's affiliate, Pearland Sunrise Lake Village II, LP, dba SRLVII, filed a separate Chapter 11 petition on July 9, 2010 (Case No. 10-11925), estimating its assets and debts at $10,000,001 to $50,000,000. PEARLAND SUNRISE: Section 341(a) Meeting Scheduled for Aug. 17 -------------------------------------------------------------- The U.S. Trustee for Region 7 will convene a meeting of Pearland Sunrise Lake Village I, LP's creditors on August 17, 2010, at 10:30 a.m. The meeting will be held at Austin Room 118, Homer Thornberry Building, 903 San Jacinto, Austin, TX 78701. 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. Marble Falls, Texas-based Pearland Sunrise Lake Village I, LP, dba SRLVI, filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. W.D. Tex. Case No. 10-11926). Frank B. Lyon, Esq., who has an office in Austin, Texas, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. The Company's affiliate, Pearland Sunrise Lake Village II, LP, dba SRLVII, filed a separate Chapter 11 petition on July 9, 2010 (Case No. 10-11925), estimating its assets and debts at $10,000,001 to $50,000,000. PENN TRAFFIC: Teamsters Objects to Disclosure Statement ------------------------------------------------------- The New York State Teamsters Conference Pension and Retirement Fund filed with the U.S. Bankruptcy Court an objection to Penn Traffic's Disclosure Statement related to the Company's Chapter 11 Plan of Reorganization, BankruptcyData.com reports. BData says the Teamsters argue that the Disclosure Statement contains a number of blanks that need to be filled in before the creditors should be asked to vote on the Plan, including but not limited to a liquidation and distribution analysis. About The Penn Traffic Syracuse, New York-based The Penn Traffic Company -- dba P&C Foods, Bi-Lo Foods, and Quality Markets -- operates supermarkets in Pennsylvania, upstate New York, Vermont, and New Hampshire under the Bilo, P&C and Quality trade names. The Company filed for Chapter 11 bankruptcy protection on November 18, 2009 (Bankr. D. Del. Case No. 09-14078). Ann C. Cordo, Esq., and Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell assist the Company in its restructuring effort. Donlin Recano is the Company's claims agent. The Company listed $150,347,730 in assets and $136,874,394 in liabilities as of May 4, 2009. The Company's affiliates also filed separate Chapter 11 petitions -- Sunrise Properties, Inc.; Pennway Express, Inc.; Penny Curtiss Baking Company, Inc.; Big M Supermarkets, Inc.; Commander Foods Inc.; P and C Food Markets, Inc. of Vermont; and P.T. Development, LLC. Following a bankruptcy court-sanctioned auction, Tops Markets LLC purchased almost all of Penn Traffic's stores as a going concern by paying $85 million cash. The sale was structured so Penn Traffic avoided a $72 million claim for pension plan termination and a $27 million claim by the principal supplier. POSTMEDIA NETWORK: S&P Assigns 'B+' Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'B+' long- term corporate credit rating to newly formed Toronto-based Postmedia Network Inc. (formerly 7536321 Canada Inc.). The outlook is negative. S&P also assigned its 'BB' issue-level rating (two notches above the corporate credit rating on the company) to Postmedia's US$300 million first-lien secured term loan (U.S. tranche) due 2016, and its C$110 million first-lien secured term loan (Canadian tranche) due 2015. S&P assigned a recovery rating of '1' to the debt, indicating its expectation of very high (90%-100%) recovery for creditors in the event of default. In addition, S&P assigned the US$275 million second-lien secured notes due 2018 a 'B-' issue-level rating (two notches below the corporate credit rating), with a recovery rating of '6', indicating S&P's expectation of negligible (0%-10%) recovery for creditors in a default scenario. On July 13, 2010, Postmedia closed on its acquisition of substantially all of the assets of Canwest Limited Partnership and its subsidiaries, as well as the shares of National Post Inc. for C$1.1 billion. Postmedia is a newly formed company created to acquire the above-noted assets with the proceeds from debt issuance, a C$250 million equity injection, and cash. Canwest LP filed for creditor protection under the Companies' Creditors Arrangement Act on Jan. 8, 2010. "The ratings on Postmedia reflect S&P's assessment of the company's vulnerable business risk profile as reflected in its weak revenues and its participation in the challenging newspaper publishing industry, which is characterized by declining advertising and circulation revenues, electronic substitution, and pricing pressures, as well as both direct and indirect competition," said Standard & Poor's credit analyst Lori Harris. S&P believes the newspaper industry will face long-term secular challenges related to market share erosion toward online and other forms of advertising. "Partially offsetting these factors, in S&P's opinion, are the company's good market position, solid credit protection measures for the ratings, and improved operating performance because of cost-cutting efforts," Ms. Harris added. Postmedia has a leading market position in the Canadian newspaper publishing industry as the company's business comprises several Canadian daily newspapers, the National Post, nondaily newspapers, and certain online editions and classified Web sites. The negative outlook reflects Standard & Poor's ongoing concerns about the challenges Postmedia faces given weak revenues and difficult industry fundamentals. Downward pressure on the ratings could result from deterioration in the company's operations or credit protection measures. S&P could revise the outlook to stable if the company demonstrates sustainable improvement in operating performance, while strengthening its credit measures. PREET CHARO: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Preet Charo Chicken Co. dba Charo Chicken 2053 West Avenue J Lancaster, CA 93536 Bankruptcy Case No.: 10-39286 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Victoria S. Kaufman Debtor's Counsel: Anthony Egbase, Esq. Law Offices of Anthony O Egbase & Assoc 350 S Figueroa Street, Suite 189 Los Angeles, CA 90071 Tel: (213) 620-7070 E-mail: info@anthonyegbaselaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Bachan Kaur, president. PREMIER HOTEL: Files for Chapter 11 Bankruptcy Protection --------------------------------------------------------- Ben Sutherly at Dayton Daily News reports that Premier Hotel Group LLC filed for bankruptcy under Chapter 11, listing both assets and debts of between $1 million and $10 million. The Company said it owes creditors a total of $2.18 million. It owes $1 million on a secured basis to Perpetual Federal Savings Bank; $646,000, Par-Mee Dev. Corp. of Cable, Ohio; $245,542, the Greene County treasurer; and $51,144, Baymont Franchise Systems of Chicago. Delena Edwards, in Columbus, represents the company. This is the company's second bankruptcy filing. The Company first filed for bankruptcy in December 2009. The case was dismissed because the company failed to file required documents. QUANTUM CORP: Capital Research Global Holds 10.4% of Shares ----------------------------------------------------------- Capital Research Global Investors is deemed to be the beneficial owner of 22,442,508 shares or 10.4% of the 215,900,000 shares of Quantum Corporation Common Stock believed to be outstanding as a result of CRMC acting as investment adviser to various investment companies registered under Section 8 of the Investment Company Act of 1940. About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. As of March 31, 2010, Quantum had $504.1 million in total assets, $242.6 million in total current liabilities, and $352.7 million in total long-term liabilities, for stockholders' deficit of $91.2 million. * * * According to the Troubled Company Reporter on March 5, 2010, Standard & Poor's Ratings Services said it revised its outlook on San Jose, California-based storage solutions company Quantum Corp. to positive from negative. S&P also affirmed all its ratings on Quantum, including its 'B-' corporate credit rating. QUANTUM CORP: CEO et al. Report Restricted Stock Units ------------------------------------------------------ Quantum Corp. CEO Richard Belluzzo disclosed that on July 1, 2010, 80,000 Restricted Stock Units vested. The RSUs were granted on June 30, 2007. The vested RSUs converted to shares of Common Stock on a 1-for-1 basis. Mr. Belluzzo also disclosed that on July 1, 2010, he disposed of 29,344 shares to satisfy tax withholding obligations upon vesting of RSUs granted on June 30, 2007. Mr. Belluzzo may also be deemed to hold 550,000 common shares, representing RSUs that will vest in equal installments on July 1, 2011, July 1, 2012, and on July 1, 2013. He may be deemed to hold 1,330,601 company shares in the aggregate. Senior VP for Human Resources Barbara Barrett disclosed that on July 1, 2010, 11,666 Restricted Stock Units vested. The RSUs were granted on June 30, 2007. The vested RSUs converted to shares of Common Stock on a 1-for-1 basis. Ms. Barrett also disclosed that on July 1, 2010, she disposed of 11,925 shares to satisfy tax withholding obligations upon vesting of RSUs granted on June 30, 2007 and on July 1, 2008. Ms. Barrett may also be deemed to hold 70,000 common shares, representing RSUs that will vest in equal installments on July 1, 2011, July 1, 2012, and on July 1, 2013. She may be deemed to hold 199,422 company shares in the aggregate. William C. Britts, EVP for Sales & Marketing, disclosed that on July 1, 2010, 25,000 Restricted Stock Units vested. The RSUs were granted on June 30, 2007. The vested RSUs converted to shares of Common Stock on a 1-for-1 basis. Mr. Britts also disclosed that on July 1, 2010, he disposed of 18,185 shares to satisfy tax withholding obligations upon vesting of RSUs granted on June 30, 2007 and on July 1, 2008. Mr. Britts may also be deemed to hold 140,000 common shares, representing RSUs that will vest in equal installments on July 1, 2011, July 1, 2012, and on July 1, 2013. He may be deemed to hold 782,477 company shares in the aggregate. Executive VP, COO and CFO Jon W. Gacek disclosed that on July 1, 2010, 25,000 Restricted Stock Units vested. The RSUs were granted on June 30, 2007. The vested RSUs converted to shares of Common Stock on a 1-for-1 basis. Mr. Gacek also disclosed that on July 1, 2010, he disposed of 41,329 shares to satisfy tax withholding obligations upon vesting of RSUs granted on June 30, 2007, July 1, 2008, and July 1, 2009. Mr. Gacek may also be deemed to hold 250,000 common shares, representing RSUs that will vest in equal installments on July 1, 2011, July 1, 2012, and on July 1, 2013. He may be deemed to hold 669,101 company shares in the aggregate. EVP for Engineering Gerald Lopatin disposed of 24,760 common shares on July 1, 2010. Following the deal, he now holds 129,567 common shares. The shares were surrendered to satisfy tax withholding obligations upon vesting of RSUs granted on July 1, 2008 and on July 1, 2009. SVP, General Counsel and Secretary Shawn D. Hall disclosed that on July 1, 2010, 11,666 Restricted Stock Units vested. The RSUs were granted on June 30, 2007. The vested RSUs converted to shares of Common Stock on a 1-for-1 basis. Mr. Hall also disclosed that on July 1, 2010, he disposed of 24,913 shares to satisfy tax withholding obligations upon vesting of RSUs granted on June 30, 2007, on July 1, 2008, on July 1, 2009. Mr. Hall may also be deemed to hold 70,000 common shares, representing RSUs that will vest in equal installments on July 1, 2011, July 1, 2012, and on July 1, 2013. He may be deemed to hold 254,044 company shares in the aggregate. About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. As of March 31, 2010, Quantum had $504.1 million in total assets, $242.6 million in total current liabilities, and $352.7 million in total long-term liabilities, for stockholders' deficit of $91.2 million. * * * According to the Troubled Company Reporter on March 5, 2010, Standard & Poor's Ratings Services said it revised its outlook on San Jose, California-based storage solutions company Quantum Corp. to positive from negative. S&P also affirmed all its ratings on Quantum, including its 'B-' corporate credit rating. QUANTUM CORP: Annual Stockholders' Meeting Set for August 18 ------------------------------------------------------------ The Annual Meeting of Stockholders of Quantum Corporation will be held on August 18, 2010, at 8:00 a.m., Pacific Daylight Time, at Quantum's corporate headquarters at 1650 Technology Drive, San Jose, CA 95110, for these purposes: 1. To elect eight directors recommended by the Board to serve until the next Annual Meeting of Stockholders or until their successors are elected and duly qualified; 2. To ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm of the Company for the fiscal year ending March 31, 2011; and 3. To transact such other business as may properly come before the meeting or any adjournment or postponement thereof. Only stockholders of record at the close of business on June 21, 2010, are entitled to notice of and to vote at the meeting. A full-text copy of the Company's proxy statement is available at no charge at http://ResearchArchives.com/t/s?66be About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. As of March 31, 2010, Quantum had $504.1 million in total assets, $242.6 million in total current liabilities, and $352.7 million in total long-term liabilities, for stockholders' deficit of $91.2 million. * * * According to the Troubled Company Reporter on March 5, 2010, Standard & Poor's Ratings Services said it revised its outlook on San Jose, California-based storage solutions company Quantum Corp. to positive from negative. S&P also affirmed all its ratings on Quantum, including its 'B-' corporate credit rating. RADIO ONE: Lenders Tap Loughlin Meghji & Morgan Lewis as Advisors ----------------------------------------------------------------- Wells Fargo Bank, N.A. -- successor by merger to Wachovia Bank, National Association, as Agent and Lender -- has tapped advisors Loughlin Meghji + Company and Morgan, Lewis & Bockius LLP in restructuring talks with Radio One, Inc. Wells Fargo on July 15, 2010, agreed to forbear from exercising certain rights and remedies under its Senior Credit Facility with Radio One arising as a result of Radio One's default of the maximum total leverage covenant, the default of the requirement to provide written notice of such default, and certain other defaults and events of default caused by the default of the total leverage covenant. The Forbearance Agreement will terminate on 5:00 p.m., Eastern time, on August 13, 2010. Pursuant to the Forbearance Agreement, Loughlin Meghji + Company will have received payment or reimbursement of any and all reasonable invoiced fees, out-of-pocket expenses and other amounts owed by Radio One as Borrower and invoiced prior to 2:00 p.m. Eastern time on July 15, 2010. Morgan, Lewis & Bockius LLP will have received payment or reimbursement of any and all reasonable invoiced fees, out-of-pocket expenses and other amounts owed by the Borrower pursuant to the Credit Agreement, and invoiced prior to 2:00 p.m. Eastern time on July 15, 2010. Radio One owes the lenders $355,480,159.99 under the Credit Agreement, which amount does not include fees, expenses and other amounts which are chargeable or otherwise reimbursable under the Credit Agreement. During the Forbearance period, Radio One is required to pay interest on the loan on a monthly basis, with the first payment due July 31. A full-text copy of the Forbearance Agreement is available at no charge 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. At March 31, 2010, Radio One had total assets of $1,024,984,000 against total liabilities of $779,381,000. * * * 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. RADIO ONE: Officers Sell Class D Shares to Meet Tax Rules --------------------------------------------------------- Several Radio One Inc. officers sold shares of Class D common stock on July 13 to meet tax obligations. Radio One CEO and director Alfred C. Liggins sold 52 shares of the company's Class D common stock. Catherine L. Hughes, chairperson and secretary, sold 46 Class D shares. Linda J. Vilardo, chief administrative officer of Radio One, sold 54 Class D shares. Barry A. Mayo, president of the Company's Radio Division, sold 69 Class D shares. Peter Thompson, Radio One's chief financial officer and executive vice president, sold 52 Class D shares. The shares were sold to satisfy tax obligation for shares vesting on June 5, 2010, and reported as acquired on January 7, 2010. As to Mr. Liggins, the tax obligation was based on 33,333 shares (or 1/3 of the acquired amount) vesting at a price of $3.86 per share. After the deal, Mr. Liggins beneficially owns a total of 12,233,984 shares of Radio One, Inc. stock as follows: (1) 574,909 shares of Class A common stock held by him, (2) 2,010,307 shares of Class B common stock held by the Alfred C. Liggins Revocable Trust, (3) 605,313 shares of Class C common stock held by the Alfred C. Liggins Revocable Trust U/A/D, (4) 920,456 shares of Class C common stock held by the Dynast Trust U/A/D, (5) 2,870,614 shares of Class D common stock held by the Alfred C. Liggins Revocable Trust, (6) 1,221,823 shares of Class D common stock held by the Alfred C. Liggins Revocable Trust U/A/D, (7) 1,519,128 shares of Class D common stock held by the Alfred C. Liggins Trust UA, (8) 15,605 shares of Class C common stock held through the Hughes-Liggins Co., LLC (9) 31,499 shares of Class D common stock held through the Hughes-Liggins Co., LLC, and (10) 2,452,264 shares of Class D common stock held by Mr. Liggins. In a separate disclosure, Mr. Liggins disclosed selling 120,349 Class D shares on June 29 and 30, and on July 1. The shares were also sold to satisfy tax obligation for shares vesting on June 5, 2010, and reported as acquired on January 7, 2010. As to Ms. Hughes, the tax obligation was based on 100,000 shares (or 1/3 of the acquired amount) vesting at a price of $3.86 per share. After the deal, Ms. Hughes beneficially owns a total of 6,824,573 shares of Radio One, Inc. stock as follows: (1) 1,000 shares of Class A common stock held by Catherine L. Hughes, (2) 851,536 shares of Class B common stock held by the Catherine L. Hughes Revocable Trust, (3) 247,366 shares of Class common stock held by the Catherine L. Hughes Revocable Trust U/A/D, (4) 1,124,560 shares of Class C common stock held by the Dynastic Trust U/A/D, (5) 192,142 shares of Class C common stock held by the Catherine L. Hughes Charitable Trust, (6) 1,510,669 shares of Class D common stock held by the Catherine L. Hughes Revocable Trust U/A/D, (7) 286,875 shares of Class D common stock held by the Catherine L. Hughes Charitable Trust, (8) 1,749,464 shares of Class D common stock held by the Catherine L. Hughes Trust UA, (9) 15,605 shares of Class C common stock held through the Hughes-Liggins Co., LLC (10) 31,499 shares of Class D common stock held through the Hughes-Liggins Co., LLC, and (11) 813,857 shares of Class D common stock held by Catherine L. Hughes. In a separate disclosure, Ms. Hughes disclosed selling 36,570 Class D shares on June 29 and 30, and on July 1. As to Ms. Vilardo, the tax obligation was based on 75,000 shares (or 1/3 of the acquired amount) vesting at a price of $3.86 per share. As a result of the transaction, Ms. Vilardo now beneficially owns (1) 1,000 shares of Class A common stock and (2) 170,162 restricted shares of Class D common stock. She directly holds those shares. In a separate disclosure, Ms. Vilardo disclosed selling 25,154 Class D shares on June 29 and 30, and on July 1. As to Mr. Mayo, the tax obligation was based 43,333 shares (or 1/3 of the acquired amount) vesting at a price of $3.86 per share. After the deal, Mr. Mayo beneficially owns a total of (1) 100,000 shares of Class D common stock and (2) 94,324 shares of restricted Class D common stock. In a separate disclosure, Mr. Mayo disclosed selling 16,057 Class D shares on June 29 and 30, and on July 1. As to Mr. Thompson, the tax obligation was based 75,000 shares (or 1/3 of the acquired amount) vesting at a price of $3.86 per share. After the deal, Mr. Thomson beneficially owns a total of (1) 158,336 restricted shares of Class D Common stock vesting and (2) options to purchase 50,000 shares of Class D common stock. In a separate disclosure, Mr. Thompson disclosed selling 58,964 Class D shares on June 25, 29 and 30, and on July 1. Shares will continue to be sold over a period of time until the full amount of the tax obligation is settled. The ultimate number of shares sold to satisfy the tax obligation will depend upon the prices at which shares are sold and the number of shares sold at a given price. 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. At March 31, 2010, Radio One had total assets of $1,024,984,000 against total liabilities of $779,381,000. * * * 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. RENEGADE HOLDINGS: Returns to Bankruptcy After Judge Vacated Plan ----------------------------------------------------------------- Richard Craver at Winston-Salem Journal reports that Renegade Holdings Inc. is back in bankruptcy after federal judge vacated the Company's plan of reorganization. The judge set a hearing on July 26, 2010, at 9:30 a.m., to discuss a criminal investigation of the companies and its owner Calvin Phelps sought by 16 state attorneys general. The Company filed its plan in October 2009 but was opposed by the attorney generals, Mr. Craver notes. Renegade Holdings filed for bankruptcy protection on Jan. 28, 2009. ROSELEA MANOR: Case Summary & 12 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Roselea Manor, Inc. 2714 Ridgewood Avenue P.O. Box 915953 Sanford, FL 32773 Bankruptcy Case No.: 10-12535 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: Norman L. Hull, Esq. Norman Linder Hull PA 746 North Magnolia Avenue Orlando, FL 32803 Tel: (407) 422-1235 Fax: (407) 423-2842 E-mail: flabankruptcy@earthlink.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 12 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb10-12535.pdf The petition was signed by Rosemarie Morris, president. SARAH LEE: Mulls Sale of Struggling North American Bakery Biz ------------------------------------------------------------- The Wall Street Journal's Anupreeta Das and Gina Chon report that Sara Lee Corp. is exploring a sale of its struggling North American bakery business and has asked its financial advisers to gauge interest from potential buyers, people familiar with the matter said. Sources told the Journal there has been no formal auction arranged and Sara Lee could decide not to dispose of the unit, which had $2.2 billion in annual sales. But Sarah Lee's advisers have selectively reached out to companies and private-equity firms that might be interested in the unit, which makes bread under the Sara Lee, Earth Grains and other brand names. The business could fetch at least $1 billion or more, those people said. According to the Journal, selling the business may be tough. Large bread makers face intense competition from small, local bakeries and in-house offerings from supermarkets. The bread industry has been hit by volatile commodity costs and aggressive promotions in the food aisle. As consumers cut back sharply last year, bread makers such as Sara Lee and Wonder Bread maker Hostess Brands Inc., under the control of private equity firm Ripplewood Holdings, offered more discounts. The price competition has weighed heavily on the sector, putting pressure on margins and profits. The Journal notes it is unclear how quickly Sara Lee will be able to move on a deal even if a buyer should emerge. Chief Executive Brenda Barnes had a stroke earlier this year and has been on a medical leave of absence since May. In recent years Ms. Barnes sold off many large businesses that had been part of the conglomerate and turned Sara Lee into an entity more focused on food. Most recently the company has sold off its international household and body-care products businesses. The Journal further notes the bakery business hasn't had a permanent head for a few months. Its chief executive, James Nolan, left in April, and the company named Michael Feder, a turnaround specialist from advisory firm AlixPartners as its interim chief executive. SAVVIS INC: S&P Assigns Corporate Credit Rating at 'B' ------------------------------------------------------ Standard & Poor's Ratings Services said it assigned its preliminary 'B' corporate credit rating to Town & Country, Mo.- based IT service provider Savvis Inc. S&P also assigned a preliminary 'B' issue-level rating to the company's proposed aggregate $625 million of secured credit facilities (which consist of a $550 million term loan B and a $75 million revolving credit facility), along with a '3' recovery rating. The recovery rating indicates prospects for meaningful (50%-70%) recovery of principal in the event of payment default. The outlook is stable. S&P expects to assign final ratings upon closing of the transaction and S&P's review of final documentation. Savvis provides IT services -- primarily data center colocation, hosting, and managed hosting services, including security -- to enterprise customers. Pro forma for the new credit facilities, debt, including reported capital lease obligations plus S&P's adjustment for operating leases, will be approximately $1 billion. The company will use proceeds from the proposed $550 million term loan, along with about $15 million of cash, to finance the current tender offer for $345 million of convertible notes due 2010 (the tender was launched July 1 and expires on July 29); repay the $110 million revolver draw used (along with cash) to finance the June 1, 2010 purchase of privately held Canadian data center operator Fusepoint Inc. for $125 million; repay an aggregate of approximately $85 million of vendor and other debt; and for transaction fees. "The rating reflects what S&P consider to be the company's aggressive leverage; prospects for limited near-term free cash flow resulting from expansion-related capital expenditures," said Standard & Poor's credit analyst Richard Siderman, "and a vulnerable business risk profile, reflecting a high degree of competition including from much larger and better capitalized rivals and pricing pressure." The latter is particularly the case in the managed services segment which comprises the majority of revenues. Mitigating factors include good underlying industry growth prospects for all of Savvis' business segments from growing Internet traffic and a trend toward IT outsourcing, satisfactory scale and reach, and adequate near-term liquidity. SEQUOIA DAY: Case Summary & 6 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Sequoia Day Investment, Inc. 35 Via Costa Verde, Rancho Palos Verdes Rancho Palos Verdes, CA 90275 Bankruptcy Case No.: 10-39295 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Thomas B. Donovan Debtor's Counsel: Anthony Egbase, Esq. Law Offices of Anthony O Egbase & Assoc 350 S Figueroa Street, Suite 189 Los Angeles, CA 90071 Tel: (213) 620-7070 E-mail: info@anthonyegbaselaw Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 6 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-39295.pdf The petition was signed by Theresa Ngozi Aduba. SIGMA INDUSTRIES: Files Bankruptcy Proposal in Quebec ----------------------------------------------------- Sigma Industries Inc. and its subsidiaries, Rene Composite Materials Inc. and Transcam Composites Inc., filed proposals in bankruptcy under the Bankruptcy and Insolvency Act on July 16, 2010. These proposals shall be submitted for approval by their respective creditors on August 2, 2010, and to the Superior Court of Quebec on August 3, 2010. Simultaneously, the Company will request permission from the Court to reorganize, as defined in section 191 of the Canada Business Corporations Act. These proposals and the reorganization do not have any effect on the ordinary course of the businesses of the Company and of its subsidiaries. Messrs. Denis Bertrand, G�rald D�sourdy, Claude Dupuis, Bruno Doyon and Neeman Malek, being all Company's directors, still remain on the board and Sigma still has a valid transfer agent in good standing. The proposals will be available on SEDAR at http://www.sedar.com About Sigma Industries Sigma Industries Inc., a leading composite and metal products manufacturer, has five operating subsidiaries and employs 350 people. The Company is active in the growing heavy-duty truck, coach, transit and bus, train and subway, machinery, agriculture, light forestry, and wind energy market segments. Sigma sells its products to original equipment manufacturers and distributors in the United States, Canada and Europe. SOHAIL RAFIQ: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Joint Debtors: Sohail Rafiq Samina Sohail Rafiq aka Samina S. Rafiq Samina Alvi 29336 Wood Canyon Road Silverado, CA 92676 Bankruptcy Case No.: 10-19812 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Robert N. Kwan Debtor's Counsel: Paul J. Ultimo, Esq. Ultimo Law Firm PC 4 Park Plaza, Suite 640 Irvine, CA 92614 Tel: (949) 851-0300 Fax: (949) 851-0301 E-mail: paul@ultimolawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtors say that assets total $1,306,100 while debts total $2,276,642. A copy of the Joint Debtors' list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-19812.pdf The petition was signed by the Joint Debtors. SOUTHEAST REGENCY: Files List of 20 Largest Unsecured Creditors --------------------------------------------------------------- Southeast Regency Medical Center, LP, has filed with U.S. Bankruptcy Court for the Western District of Texas its list of 20 largest unsecured creditors, disclosing: Entity Nature of Claim Claim Amount ------ --------------- ------------ City National Bank, N.A. South Flower Street, 25th Floor $15,162,710 Los Angeles, CA 90007 Purchase Money Value: $5,848,200 Oxford Development Corporation 940 Corbindale Houston, TX 77024 Non-Purchase Money $1,870,896 Gilman & Allison c/o Brenton J. Allison, D. Gilman J. Wauson, M. Phillips, F. Spgnoletti 9307 Broadway - Suite 407 Pearland, TX 77584 Non-Purchase Money $631,559 John R. Carlew Trustee of John R. Carlew Living Trust 10516 FM 1431 East Marble Falls, TX 78654 Non-Purchase Money $340,702 Sumsua Interests, Ltd. 10516 FM 1431 East Marble Falls, TX 78654 Non-Purchase Money $337,752 Cory Davis Contracting Purchase $131,964 Value: $0.00 CrossCheck Non-Purchase Money $96,600 Hewitt Air Tex, Inc. Non-Purchase Money $85,988 Family Dermatology Non-Purchase Money $42,000 ThyssenKrupp Elevator Corporation Non-Purchase Money $25,428 Xcess Security Services, Inc. Non-Purchase Money $23,981 Fire Tech Services Co. Purchase Money $20,000 Value: $0.00 Earl Kirkland Non-Purchase Money $19,773 Steelco Steel Erectors Non-Purchase Money $16,660 The Republic Group Non-Purchase Money $16,222 Franklin Fidelity Management, LLC Non-Purchase Money $10,800 O'Conner Commercial Tax Division Non-Purchase Money $6,236 Hudson Energy Non-Purchase Money $5,620 JET Construction Non-Purchase Money $5,608 US Power Generating Company Non-Purchase Money $5,176 Marble Falls, Texas-based Southeast Regency Medical Center, LP, filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. W.D. Tex. Case No. 10-11923). Frank B. Lyon, Esq., who has an office in Austin, Texas, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. SOUTHEAST REGENCY: Section 341(a) Meeting Scheduled for Aug. 17 --------------------------------------------------------------- The U.S. Trustee for Region 7 will convene a meeting of Southeast Regency Medical Center, LP's creditors on August 17, 2010, at 9:30 a.m. The meeting will be held at Austin Room 118, Homer Thornberry Building, 903 San Jacinto, Austin, TX 78701. 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. Marble Falls, Texas-based Southeast Regency Medical Center, LP, filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. W.D. Tex. Case No. 10-11923). Frank B. Lyon, Esq., who has an office in Austin, Texas, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. SPONGETECH DELIVERY: Gets Court OK to Appoint Chapter 11 Trustee ---------------------------------------------------------------- The Hon. Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York has authorized Tracy Hope Davis, the Acting U.S. Trustee for Region 2, to appoint a Chapter 11 trustee for Spongetech Delivery Systems, Inc. The Trustee sought permission from Judge Bernstein to appoint a Chapter 11 trustee or, in the alternative, convert the Debtor's Chapter 11 bankruptcy case to Chapter 7. The Trustee said that these are among numerous reasons why the appointment of a Chapter 11 trustee is required: (1) allegations of securities fraud and obstruction of justice, resulting in the recent arrest of current management and a civil enforcement action by the Securities and Exchange Commission; (2) allegations raised at a hearing before the Bankruptcy Court in the Southern District of Georgia regarding a very recent diversion of at least $700,000 in cash for the personal benefit of the Debtor's current management from the Debtor's wholly-owned subsidiary, Dicon (which is itself in Chapter 11 in Georgia with an appointed trustee); and (3) the apparent forgery of an attorney's signature on the Debtor's bankruptcy petition by someone affiliated with current management. The Debtor consented to the appointment of a Chapter 11 trustee. New York-based Spongetech Delivery Systems Inc. filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. S.D.N.Y. Case No. 10-13647). Edward Neiger, Esq., at Neiger, LLP, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. The Company's affiliate, Dicon Technologies, LLC, filed a separate Chapter 11 petition on June 24, 2010 (Case No. 10-41275). SPONGETECH DELIVERY: Taps Kera & Graubard as Bankruptcy Counsel --------------------------------------------------------------- Spongetech Delivery Systems, Inc., has sought permission from the U.S. Bankruptcy Court for the Southern District of New York to employ Kera & Graubard as bankruptcy counsel. Kera & Graubard will represent the Debtor in its Chapter 11 bankruptcy case. M. David Graubard, a member at Kera & Graubard, says that the firm will be paid $350 per hour for its services. Mr. Graubard assures the Court that Kera & Graubard is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. New York-based Spongetech Delivery Systems Inc. filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. S.D.N.Y. Case No. 10-13647). The Company listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. The Company's affiliate, Dicon Technologies, LLC, filed a separate Chapter 11 petition on June 24, 2010 (Case No. 10-41275). TEXAS RANGERS: Restructuring Officer Wants Team-Owner ----------------------------------------------------- Bill Rochelle at Bloomberg News reports that the chief restructuring officer for the two partnerships that own the Texas Rangers professional baseball club is asking for permission to begin the process of substantively consolidating the bankruptcies of the team and the two partnership owners. William K. Snyder, the restructuring officer, contends that consolidation is the only way to preserve fraudulent transfer claims that otherwise would be lost were the team to win approval of its own reorganization plan at the currently scheduled Aug. 4 confirmation hearing. On the eve of the May 24 Chapter 11 filing, Mr. Snyder says the team assumed $9 million in debt to financial advisers that previously had no claim against the team. Also just before bankruptcy, the team assumed the above-market lease for an aircraft. According to the report, Texas Rangers Baseball Partners is objecting to the request. The Rangers believe that Mr. Snyder's mandate does not include proposing substantive consolidation. The team also argues that a motion for substantive consolidation would "impede and disrupt" the sale process. 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. The Debtor and the CRO have asked the Court to reconsider holding an auction on Aug. 4. The CRO said the auction rules won't produce any competing bids. Two More Potential Bidders Meanwhile, according to The Associated Press, Mr. Snyder said two more potential buyers have emerged in addition to Houston businessman Jim Crane and Dallas investor Jeff Beck, both cleared by MLB to submit bids. He said one of the new potential bidders has such high personal wealth that he could fund the deal without financing. But Snyder said he didn't know if that potential bidder had the money "laying around in a checking account" and that obtaining financing may take a few weeks. The judge told Mr. Snyder not to reveal any names or bid amounts after creditors objected when Glenn Kurtz, at attorney for Greenberg-Ryan's group, asked if Dallas Mavericks owner Mark Cuban is an interested bidder. Barry Shlachter, Special Contributor to The Dallas Morning News, reports that Dallas Mavericks owner Mark Cuban was named as being an undisclosed but prospective bidder for the Texas Rangers at a bankruptcy hearing Tuesday by a lawyer for Hall-of-Famer Nolan Ryan's front-running group. According to the report, the mention of Mr. Cuban's name brought immediate objections, but Mr. Ryan's attorney Glenn Kurtz, Esq., said the National Basketball Association team owner already had been identified in news reports "for weeks." Judge Michael Lynn noted that the media had gotten matters wrong in the past. Dallas Morning News also reports that attorneys from the Dallas firm of Greenberg Traurig, representing an unnamed bidder, declined to identify their client. The report also notes that at the hearing, the team's court- appointed chief restructuring officer said the undisclosed potential bidder reputedly had sufficient personal wealth to make an offer for the team. According to the report, William K. Snyder also disclosed that Houston businessman Jim Crane wanted to replace Mr. Ryan's group with the "stalking horse," bid with a "nine-figure" offer at the team's Aug. 4 auction but that New York bankers already had committed to Mr. Ryan. Mr. Snyder testified that the lenders were trying to determine if they could simultaneously back two opposing bids. The hearing was held to determine if the Aug. 4 auction date should be postponed. Mr. Crane and Dallas investor Jeff Beck, another bidder pre- approved by Major League Baseball, both need more time to raise financing, Mr. Snyder told the judge. The Associated Press' Angela K. Brown reports that Mr. Snyder told the judge at Tuesday's hearing that the Aug. 4 auction date should be delayed because potential buyers will have a hard time securing financing by then. The AP says Mr. Snyder suggested that a mediator set the date after talking to all potential buyers about their financing. Pre-Bankruptcy Transactions Bill Rochelle at Bloomberg News also reports that the lenders at the end of last week also launched attacks on three transactions the team carried out on the eve of the May 24 bankruptcy filing. The lenders, owed $525 million, contend that the transactions were either in violation of the loan agreements or were fraudulent transfers. The CRO also said in his papers that the team carried out "what appears to be sizeable and blatantly fraudulent transfers" on the eve of bankruptcy. 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. TEXAS RANGERS: JPMorgan Seeks to Void Lease Transfer ---------------------------------------------------- JPMorgan Chase Bank NA commenced an adversary proceeding in the Bankruptcy Court, seeking to void the transfer of a stadium lease to Texas Rangers Baseball Partners, saying that the move interferes with the lender's ability to collect $411 million owed by the baseball team's owner, according to Bankruptcy Law360. 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. THERESA ADUBA: Case Summary & 9 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Theresa Ngozi Aduba 35 Via Costa Verde Rancho Palos Verdes, CA 90275 Bankruptcy Case No.: 10-39330 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Samuel L. Bufford Debtor's Counsel: Anthony Egbase, Esq. Law Offices of Anthony O Egbase & Assoc 350 S Figueroa Street, Suite 189 Los Angeles, CA 90071 Tel: (213) 620-7070 E-mail: info@anthonyegbaselaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 9 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-39330.pdf The petition was signed by the Debtor. TLC AMERICAS: Files for Bankruptcy Protection Under Chapter 11 -------------------------------------------------------------- TLC Americas LLC filed for bankruptcy under Chapter 11 in Boston on July 16 (Bankr. D. Mass. Case No. 10-17716). Tim McLaughlin at Business Journal of Boston reports that the Company sought bankruptcy protection amid complaints from certain sponsors. According to the report, the Company claims that the complaints are without merit but it has paid millions of dollars to resolve complaints from the Dockers promotion. The Company has tried offering alternative rewards on behalf of promotion sponsors to resolve the complaints. Boston-based TLC Americas LLC operates marketing promotions for T- Mobile USA and Levi's Dockers. The petition listed assets and debts of $1,000,001 to $10,000,000. The Company owes $1.6 million to general unsecured creditors. Kara Zaleskas, Esq., at Duane Morris LLP, represents the Debtor in its Chapter 11 effort. TLC AMERICAS: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: TLC Americas LLC aka TLC Marketing 10 Post Office Square Boston, MA 02109 Bankruptcy Case No.: 10-17716 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court District of Massachusetts (Boston) Judge: Joan N. Feeney Debtor's Counsel: Kara Zaleskas, Esq. Duane Morris LLP 470 Atlantic Avenue, Suite 500 Boston, MA 02210 Tel: (857) 488-4200 Fax: (857) 488-4201 E-mail: kmzaleskas@duanemorris.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Jacen Dinoff, chief restructuring officer. TOUSA INC: Committee Files Liquidating Chapter 11 Plan ------------------------------------------------------ Bill Rochelle at Bloomberg News reports that the Official Committee of Unsecured Creditors for Tousa Inc. filed a Chapter 11 plan and explanatory disclosure statement for Tousa on July 16. The plan assumes appellate courts uphold a judgment the Committee won in October where the bankruptcy judge ruled that a bailout and refinancing in mid-2007 of a joint venture in Transeastern Properties Inc. resulted in fraudulent transfers. The bankruptcy judge required the banks to post $700 million in bonds to hold up enforcement of the judgment pending appeal. The appeal is scheduled for argument on Oct. 22 in U.S. District Court in Florida. The Bloomberg report relates that according to the disclosure statement, the $208 million owing on the first-lien term loan will see a recovery between 2.8% and 100%. The $319 million in second- lien claims are to see nothing to 45.2%. The holders of $574 million in senior notes are in line for a dividend between 52% and 82.3%. Holders of $510 million on subordinated notes, $20 million in pay-in-kind subordinated notes, and existing stock will receive nothing under the plan. Bloomberg relates that the variation in recoveries depends in part on whether other lawsuits by the Committee are successful. About Tousa Inc. Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-10928). The Debtors have selected M. Natasha Labovitz, Esq., Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta, Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at Berger Singerman, to represent them in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It listed assets between $1 million and $10 million, and debts between $1 million and $10 million. VERENIUM CORP: BP to Acquire Biofuel Biz. for $98.3 Million ----------------------------------------------------------- BP and Verenium Corporation agreed for BP Biofuels North America to acquire Verenium's cellulosic biofuels business, including the Company's facilities in Jennings, LA and San Diego, CA for $98.3 million. Verenium will retain its commercial enzyme business, including its biofuels enzymes products and have the right to develop its own lignocellulosic enzyme program. Verenium will also retain select R&D capabilities, as well as rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium through this agreement. "We are very pleased that our strategic development partnership with BP has successfully advanced our cellulosic ethanol technology to the cusp of commercialization," said Carlos A. Riva, President and Chief Executive Officer at Verenium. "We believe that BP is the right company to make the investment needed to carry this forward and expedite the commercialization of the technology." "This agreement should give both companies the flexibility to pursue the growth opportunities in the respective businesses and achieve goals in the near-term. As a result of this transaction, Verenium will have the resources to grow our commercial enzyme business while maintaining strategic access to the emerging cellulosic ethanol market in a manner that better fits our resources," added Riva. "This acquisition demonstrates BP's intent to be a leader in the cellulosic biofuels industry in the U.S. and positions us as one of the few global companies with an integrated end-to-end capability, from R&D through commercialization to distribution and blending," said Philip New, CEO of BP Biofuels. "Our partnership with Verenium has been very fruitful, enabling the companies to develop a leading cellulosic ethanol technology package, driven forward by the skills and expertise of people from both companies. By acquiring Verenium's cellulosic biofuels technologies, BP Biofuels should be well placed to accelerate the delivery of low cost, low carbon, sustainable biofuels, at scale." The major terms of this agreement include: BP will acquire these: * Jennings, LA facilities, including the pilot plant and the demonstration-scale facility as well as the San Diego, CA R&D facilities; * Cellulosic biofuels technology and related IP; and * Cellulosic enzyme technology and related IP. In addition, BP would retain scientists and technologists needed to continue the biofuels development program. Verenium will retain / receive these: * The core commercial enzyme business, including the personnel and supporting technology required to develop the business, including for applications in the biofuels segment; * $98.3 million payment from BP; * $10.8 million in cash (currently restricted) to be released upon assignment of its lease for the San Diego facility to BP; * The ability to access select biofuels products developed by BP using the technology it is acquiring from Verenium; and * The ability to transition out of the San Diego, CA facility over the next two years. BP will become the sole investor in Vercipia Biofuels, a 50-50 joint venture formed by BP and Verenium in February 2009, and will independently manage all of Vercipia's activities going forward. Similarly, Galaxy Biofuels, a 50-50 joint development company owned by BP and Verenium, will be owned 100% by BP. This transaction is expected to close in the third quarter of 2010. UBS Investment Bank acted as financial advisor to Verenium in connection with the transaction. DLA Piper LLP (US) served as legal advisor to BP. Cooley LLP served as legal advisor to Verenium. Going Concern Doubt As reported in the Troubled Company Reporter on March 19, 2010, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring operating losses and accumulated deficit of $630.0 million at December 31, 2009. The Company has incurred a net loss of $12.0 million for the three months ended March 31, 2010, and has an accumulated deficit of $637.9 million as of March 31, 2010. Based on the Company's current operating plan, its existing working capital will not be sufficient to meet the cash requirements to fund the Company's planned operating expenses, capital expenditures, required and potential payments under the 2007 Notes, the 2008 Notes, and the 2009 Notes, and working capital requirements through December 31, 2010, without additional sources of cash and/or the deferral, reduction or elimination of significant planned expenditures. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet as of March 31, 2010, showed $149.4 million in assets, $135.9 million of liabilities, and $13.5 million of stockholders' equity. About Verenium Corporation Cambridge, Mass.-based Verenium Corporation (NASDAQ: VRNM) -- http://www.verenium.com/-- operates in two business segments, biofuels and specialty enzymes. The Company's biofuels business segment operates through its wholly-owned subsidiary, Verenium Biofuels Corporation, and is focused on developing unique technical and operational capabilities designed to enable the production and commercialization of biofuels, in particular ethanol produced from cellulosic biomass. The Company's specialty enzymes segment develops high-performance enzymes for use within the alternative fuels, specialty industrial processes, and animal nutrition and health markets to enable higher throughput, lower costs, and improved environmental outcomes. WASHINGTON SQUARE: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: The Washington Square Group, LLC 4531-4591 Rt. 71 Oswego, IL 60543 Bankruptcy Case No.: 10-31627 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Northern District of Illinois (Chicago) Judge: Jacqueline P. Cox Debtor's Counsel: Paul M. Bach, Esq. Law Offices of Paul M Bach P.O. Box 1285 Northbrook, IL 60065 Tel: (847) 564-0808 Fax: (847) 564-0985 E-mail: paul@bachoffices.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 3 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb10-31627.pdf The petition was signed by Denise Elizondo, member. Debtor-affiliates filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Lincoln Square Group, LLC 10-21466 05/11/10 WHITE ENERGY: Plan Confirmed; Lenders to Get Stock -------------------------------------------------- White Energy Inc. won confirmation of its Chapter 11 plan of reorganization. According to Bloomberg News, under the plan, secured creditors are taking almost all the stock of the reorganized company. In addition to the stock, secured creditors receive a new $150 million secured term loan. Unsecured creditors, owed more than $19 million according to the disclosure statement, will split up $350,000. Even though secured creditors have deficiency claims of some $50 million, they won't receive distributions as unsecured creditors. About White Energy 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. WILLIAM HAINES: Still Pursuing Approval of FirstMerit Settlement ---------------------------------------------------------------- William K. Haines, Jr., and Nancy J. Haines ask the U.S. Bankruptcy Court for the Northern District of Ohio to extend their exclusive periods to file and solicit acceptances for the proposed Plan of Reorganization from July 14, 2010, until September 12, and from October 12, and December 11, respectively. The Debtors relate they needed additional time because the settlement, recently reached with FirstMerit Bank, was not yet approved by the Court. The settlement with FirstMerit Bank related to their real estate companies NLP Acquisition, Ltd. H.P.W., Ltd., Seniah Corp., and Haines Enterprises. Massillon, Ohio-based William K. Haines, Jr. aka Bill Haines and Nancy J. Haines filed for Chapter 11 on December 16, 2009 (Bankr. N.D. OH Case No. 09-65171). Anthony J. DeGirolamo, Esq., assist the Debtors in their restructuring efforts. In their petition, the Debtors listed assets and debts both ranging from $10,000,001 to $50,000,000. WOODS & WATERS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Woods & Waters, Inc. 1133 Highway 60/63 Willow Springs, MO 65793 Bankruptcy Case No.: 10-61714 Chapter 11 Petition Date: July 16, 2010 Court: U.S. Bankruptcy Court Western District of Missouri (Springfield) Judge: Arthur B. Federman Debtor's Counsel: David E. Schroeder, Esq. David Schroeder Law Offices, PC 1524 East Primrose Street, Suite A Springfield, MO 65804-7915 Tel: (417) 890-1000 Fax: (417) 886-8563 E-mail: bk1@dschroederlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 According to the schedules, the Company says that assets total $1,770,142 while debts total $746,652. The Company did not file a list of creditors together with its petition. The petition was signed by Neil Shelton, president. W.R. GRACE: Court OKs Easthampton Site Consent Order ---------------------------------------------------- U.S. Judge Bankruptcy Judge Judith Fitzgerald authorized the Debtors, the United States of America, Oldon Limited Partnership, and Easthampton City to consummate the transactions contemplated in: * the consent order for removal action with the United States of America and Oldon Limited Partnership resolving the United States' claims with respect to the Zonolite/W.R. Grace Easthampton, Massachusetts, Superfund site; * the Oldon Stipulation and the Easthampton City Stipulation, including the use of the Debtors' estate property and resources necessary to undertake the performance of the work set forth in the Consent Order. Grace leased from Oldon or its predecessors a building located at 19 Wemelco Way, in Easthampton, Massachusetts From 1963 to 1993. Until 1992, Grace operated a manufacturing facility, which produced expanded vermiculite products at the Property. During that year, Grace closed the Former Zonolite Facility, removed all equipment from the facility, and terminated the Property lease. The Property was thereafter either vacant or used by a lessee for storage from 1993 to present. The Site consists of approximately 2.3 acres, which encompasses the Property on which the Former Zonolite Facility was located as well as certain adjacent properties, including a railroad right- of-way now owned by Easthampton City. The Massachusetts Department of Environmental Protection and the USEPA issued a Notice of Responsibility to Grace in August 2000. Oldon continued to cooperate with MassDEP and the USEPA related to subsequent investigations at the Site. In October 2006, MassDEP notified Oldon that it was also a "potentially responsible party" regarding asbestos contamination at the Site. The Court held that pursuant to the Consent Order, USEPA will have an allowed unsecured claim for Past Response Costs in the amount of $72,537. The Allowed Past Response Cost Claim will be paid within 30 days after the effective date of the Chapter 11 Plan of Reorganization for the Debtors in the same manner as all other allowed general unsecured claims. Notwithstanding what the Plan may provide, however, interest will not accrue on the Allowed Past Response Cost Claim until 30 days after the Effective Date of the Consent Order. The Interest will accrue on the Claim at the rate established by Section 9507 of the Internal Revenue Code. Judge Fitzgerald authorized Grace to pay EPA's Future Response Costs, which will be payable within 30 days of Grace's receipt of each bill requiring payment or within 30 days of the effective date of the Plan, whichever is later. Pursuant to the Oldon Stipulation, Claim No. 11301 includes, but is not limited to, certain actual costs already incurred by Oldon for (i) compliance fees to MassDEP; (ii) a site survey; (iii) environmental consulting; (iv) legal fees; and (v) other costs incurred by Oldon as owner of the Site. The Claim will be allowed as a Class 7A Asbestos Property Damage Claim for $118,010. All other amounts outlined in or related to the Claim No. 11301 relating to the Property, including any claims which would otherwise have qualified as Class 7B Asbestos Property Damage Claims, will be disallowed and expunged, Judge Fitzgerald ruled. The Court forever barred, estopped, and enjoined parties to the Oldon Stipulation, including upon its formation the WRG Asbestos Property Damage Trust, as defined in the Stipulation, from asserting against each other any other or additional claims, liabilities, or causes of action arising from or related to the Property. Easthampton City Claim No. 7121 will be disallowed and expunged. However, in the event that Grace breaches its obligations under the Consent Order to remediate the Site, the City will have the right to re-assert its Claim against Grace, the Court clarified. The Court's approval of the Consent Order and the Oldon and Easthampton City Stipulations is consistent with the revised proposed order submitted by the Debtors to address the issue raised by the Official Committee of Unsecured Creditors and the Representative for Future Asbestos Property Damage Claimants. Theodore L. Freedman, Esq., at Kirkland & Ellis LLP, in New York, said in a certification filed with the Court that at the behest of the Creditors' Committee and the PD FCR, the Debtors: (1) added a "new paragraph" to the Consent Order to provide that, in order to receive authority to carry out its obligations -- including carrying out certain work to be performed; paying EPA's Past and Future Response Costs; and allowing the amount of Grace's share of EPA's response costs as an unsecured, prepetition, non-priority claim against Grace's -- the Debtors will seek the Court's approval of the Consent Order; and (2) revised the Oldon Stipulation to clarify the effect of resolving the Oldon Claim and include certain injunction provisions. In light of the revisions, the Debtors withdrew their previously filed certification. The Debtors received no objections from counsel for the United States, Oldon and the City of Easthampton, according to Mr. Freedman. "The parties involved in this [S]ite have stepped up to the plate in cleaning their own facility," Curt Spalding, regional administrator of EPA's New England office said in an e-mailed statement to Bloomberg News. "This kind of action helps protect the environment and public health and we applaud them for taking responsibility," Mr. Spalding noted. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace and its debtor affiliates, with the support of the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants' Representative and the Official Committee of Equity Security Holders, have submitted a proposed Chapter 11 plan of reorganization. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. The Plan confirmation hearing wrapped up on January 25. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W.R. GRACE: Court OKs Walpole Superfund Site Consent Decree ----------------------------------------------------------- W.R. Grace & Co. and its units sought and obtained the U.S. Bankruptcy Court's authority to enter into a consent decree with the United States of America addressing the United States' claims with respect to the Blackburn and Union Privileges Superfund Site, in Walpole, Massachusetts. The Site is designated as a Superfund Site by the United States Environmental Protection Agency, which alleges that one of the Debtors is a former owner and operator of manufacturing operations at the Site, dating back to the early 20th century. The EPA has asserted a claim against the Debtors with respect to the Site. The U.S. EPA Claim is one of the sites included in the U.S. Government's Claim No. 9634, which alleges future oversight costs and cleanup obligations in a range of $12.6 million to $22.6 million with respect to the Site. In June 2008, the Court approved the Multi-Site Agreement that resolved most of Claim No. 9634 and contained a reservation for the Debtors of certain limited rights to object to the U.S. EPA Claim in connection with the Site. In September 2008, the U.S. EPA completed a remedial investigation and feasibility study with respect to the Site and issued a Record of Decision selecting remedial alternatives to be performed at the Site. A stipulation in December 2008 was approved by the Court to provide for an allocation of certain costs with respect to the Site between the Debtors and Tyco Healthcare Group LP, pursuant to which Debtors and Tyco would each pay 50% of Past Response Costs 2 and costs to implement the ROD remedy. In February 2009, the United States sent letters to the Debtors, BIM Investment Corporation, Shaffer Realty Nominee Trust as the Shaffers and Tyco, requesting that the parties agree to perform the cleanup specified in the ROD and pay the U.S. EPA's past and future costs with respect to the Site. The United States subsequently sent letters the same parties -- as settling defendants -- transmitting a natural resource damages claim for consideration. This NRD Claim included performance of the ROD remedy and a request for payment of alleged damages. The NRD Claim is being negotiated separately from the Consent Decree. During 2009, the U.S. EPA performed a removal action at the Site to address alleged risks associated with the presence of asbestos and other hazardous materials in a former mill building at the Site. Since February 2009, the Shaffers and Tyco, including the Debtors, have negotiated with the United States in an attempt to reach a settlement concerning the ROD remedy and Response Costs. As a result, the Debtors, the Shaffers and Tyco, and the United States aim to resolve the EPA Claims relating to the Site the Consent Decree, without any admission of fact, law or liability. Theodore L. Freedman, Esq., at Kirkland & Ellis LLP, in New York, explains to the Court that the Consent Decree prevents the incurrence of significant transaction and litigation costs and cost-effectively allocates the responsibility for and resolves significant environmental liabilities of the Debtors. Specifically, approving the Consent Decree will resolve claims for more than $2 million in past response costs, including the costs associated with the Removal Action, and more than $13 million in costs of implementing the ROD remedy. It will also provide assurance to the creditors that environmental liabilities, other than NRD, associated with the Site are fully addressed and permanently resolved. The Debtors' shared responsibility for the Site has been a responsibility of the Debtors since before the commencement of these Chapter 11 cases, as recognized in the Multi-Site Agreement, Mr. Freedman notes. The Consent Decree benefits the public interest because it will result in the implementation of the ROD remedy at the Site, thereby allocating costs of performing the work amongst the parties and enabling the work to proceed. The Consent Decree does not provide for any payment by Debtors prior to the effective date of Debtors' confirmed Chapter 11 Plan of Reorganization, according to Mr. Freedman. The Site is an "Additional Site" under the Multi-Site Agreement. This means that the Site has remained a potential liability for the Debtors and their estates. Accordingly, resolution of the United States' Claims, as provided in the Consent Decree, would be consistent with the treatment for Additional Sites outlined in the Multi-Site Agreement and would resolve this otherwise outstanding liability of the Debtors. * * * The Court held that pursuant to the Consent Decree, Claim No. 9634 of the U.S. EPA with respect to Past Response Costs and Future Oversight Costs and Future Response Costs at the Site, as defined in the Consent Decree, is resolved by these terms: (1) The U.S. EPA will have an allowed general unsecured claim against the Debtors in the amount of $715,930. The Allowed Past Response Cost Claim will be paid in the same manner as all other allowed general unsecured claims on the effective date of a confirmed Chapter 11 Plan of reorganization for the Debtors. Notwithstanding what the Debtors' plan may provide, however, interest will not accrue on the Allowed Past Response Cost Claim until 30 days after the Effective Date of the Consent Decree. The Interest will accrue on the Allowed Past Response Cost Claim at the rate established by Section 9507 of the Internal Revenue Code. (2) The Debtors are authorized to pay 50% of Future Oversight Costs and Future Response Costs. These Costs will be payable within 30 days of receipt of each bill requiring payment, or within 30 days of the effective date of the Debtors' Plan, whichever is later. Payment of Future Oversight Costs incurred by U.S. EPA will be capped at the greater of $2,000,000 or 15% of the total costs incurred to complete the ROD remedy. (3) To the extent it applies, the automatic stay under Section 362(a) of the Bankruptcy Code is modified for the limited purpose of permitting the United States to file a complaint against the Debtors concurrently with the lodging of the Consent Decree to resolve all claims alleged in the Complaint, lodge the Consent Decree and take other actions consistent with the Consent Decree in the United States District Court for the District of Massachusetts, as outlined in the Consent Decree. In the event that the Consent Decree is voided by any of its Parties, the Debtors preserve all arguments regarding applicability of the Stay to the Complaint, and the limited modification of the Stay will be void. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace and its debtor affiliates, with the support of the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants' Representative and the Official Committee of Equity Security Holders, have submitted a proposed Chapter 11 plan of reorganization. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. The Plan confirmation hearing wrapped up on January 25. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W.R. GRACE: Gets Court OK to Contribute $37.2MM to Pension Plan --------------------------------------------------------------- Judge Judith K. Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware permitted W.R. Grace & Co. and its debtor- affiliates to make the minimum contributions to the defined benefit retirement plans covering their employees in the United States required under federal law, during the period from July 15, 2010 to January 15, 2011, at approximately $37.2 million. In particular, the legally required minimum contributions to the Grace Retirement Plans for the 2010-2011 Funding Period include: Payment Due Date Contributions Plan Year ---------------- ------------- --------- 2010 July 15 $9,922,832 2010 2010 September 15 $7,399,564 2009 2010 October 15 $9,923,857 2010 2010 January 15 $9,923,857 2010 ------------- Total $37,170,110 The Debtors have related that currently, the Grace Retirement Plans consist of 10 funded, defined benefit pension plans, each of which is qualified under Section 401 (a) of the Internal Revenue Code. The most significant Grace Retirement Plan is the W. R. Grace & Co. Retirement Plan for Salaried Employees which comprises approximately 80% of the assets and 82% of the liability of the Grace Retirement Plans in the aggregate. Many of the Grace Retirement Plans are maintained pursuant to collective bargaining agreements. The Debtors project that in 2010, approximately $55 to $70 million will be paid out of the Grace Retirement Plans. The Order is effective immediately upon its entry, notwithstanding Rule 6004(h) of the Federal Rules of Bankruptcy Procedure, the Court ruled. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace and its debtor affiliates, with the support of the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants' Representative and the Official Committee of Equity Security Holders, have submitted a proposed Chapter 11 plan of reorganization. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. The Plan confirmation hearing wrapped up on January 25. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W.R. GRACE: To Resume Quarterly Investor Calls on July 22 --------------------------------------------------------- W.R. Grace & Co. (NYSE:GRA) announced that it will resume quarterly investor calls. The company will release its second quarter financial results at 6:00 a.m. ET on Thursday, July 22 and host a conference call and webcast at 12:00 p.m. ET with management commentary and a question and answer session. In their remarks, Fred Festa, Chairman, President and Chief Executive Officer, and Hudson La Force, Senior Vice President and Chief Financial Officer, will review second quarter results and accomplishments. To access the webcast, interested participants can go to the Investor Information-Conference Calls portion of the company's web site, http://www.grace.com/on the day of the conference call and click on the webcast link. Those without access to the Internet can listen to the remarks and Q&A by dialing +1.866.383.7989 (international callers dial +1.617.597.5328) and entering conference ID No. 41269186. Investors are advised to dial into the call at least ten minutes early in order to register. An audio replay will be available from 3:00 p.m. ET on July 22 until 11:59 p.m. ET on July 29. The replay will be accessible by dialing +1.888.286.8010 (international callers dial +1.617.801.6888) and entering conference call ID No. 90278560. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace and its debtor affiliates, with the support of the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants' Representative and the Official Committee of Equity Security Holders, have submitted a proposed Chapter 11 plan of reorganization. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. The Plan confirmation hearing wrapped up on January 25. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) WSP HOLDINGS: Significant Sales Decline Cues Going Concern Doubt ---------------------------------------------------------------- WSP Holdings Limited filed on July 15, 2010, its annual report on Form 20-F for the fiscal year ended December 31, 2009. Deloitte Touche Tohmatsu CPA Ltd., in Beijing, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has experienced a significant decline in sales in the United States due to the anti-dumping and countervailing duty on seamless pipes made in China and is required to repay a significant amount of short-term borrowings {totaling $506.4 million]. "In 2009, products exported to the United States accounted for 9.0% of the Company's net revenues, compared to 22.7% and 34.3% of the Company's net revenues, in 2007 and 2008, respectively." "For the year ended December 31, 2009, the Company had negative operating cash flow of $116.5 million compared to a positive cash flow of $67.9 million for the year ended December 31, 2008. Further, the Company did not meet certain financial covenants contained in its loan facilities." The Company reported net income of $1.6 million on $577.0 million of revenue for 2009, compared with net income of $100.7 million on $912.1 million of revenue for 2008. The Company's balance sheet at December 31, 2009, showed $1.394 billion in assets, $960.1 million of liabilities, and $434.3 million of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66b7 WSP Holdings Limited (NYSE: WH) -- http://www.wsphl.com/-- develops and manufactures seamless Oil Country Tubular Goods (OCTG), including seamless casing, tubing and drill pipes used for on-shore and off-shore oil and gas exploration, drilling and extraction, and other pipes and connectors. Founded as WSP China in 1999, the Company offers a wide range of American Petroleum Institute (API) and non-API seamless OCTG products, including products that are used in extreme drilling and extraction conditions. The Company's products are used in China's major oilfields and are exported to oil producing regions throughout the world. The Company is headquartered in Wuxi, Jiangsu Province, in the People's Republic of China. XINHUA SPORTS: Deloitte Touche Tohmatsu Raises Going Concern Doubt ------------------------------------------------------------------ Xinhua Sports & Entertainment Limited filed on July 15, 2010, its annual report on Form 20-F for the fiscal year ended December 31, 2009. Deloitte Touche Tohmatsu CPA Ltd., in Beijing, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss of $313.6 million during the year ended December 31, 2009, and as of that date, the Company's current liabilities exceeded its current assets by $50.9 million, its total liabilities exceeded its total assets by $26.2 million, and its net shareholders' deficiency [attributable to Xinhua Sports shareholders] was $61.4 million. The Company reported a net loss of $313.6 million on $99.2 million of revenue for 2009, compared with a net loss of $274.2 million on $121.5 million of revenue for 2008. The Company's balance sheet at December 31, 2009, showed $242.6 million in assets, $268.7 million of liabilities, and $33.8 million of Series B redeemable convertible preferred shares, for a stockholders' deficit of $59.9 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?66b5 Xinhua Sports & Entertainment Limited (NASDAQ: XSEL) -- http://www.xsel.com/-- is a sports and entertainment media company in China. Through its Chinese partnerships, XSEL delivers this content across a broad range of platforms, including television, the Internet, mobile phones, cinema, university campuses and other multimedia assets in China. Headquartered in Beijing, the Company has offices and affiliates in major cities throughout China including Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. XINHUA SPORTS: Restructures Loan Facility with Patriarch Partners ----------------------------------------------------------------- Xinhua Sports & Entertainment Limited disclosed Wednesday that it has entered into an agreement to restructure the terms of its secured convertible loan facility with affiliates of Patriarch Partners LLC, a global investment firm based in New York. Under the terms of the amendment, the Company repaid $16,343,960, and Patriarch agreed to lend the Company an additional $7,600,000 non- convertible term loan, bringing the aggregate amount outstanding under the Patriarch facility to $49,056,040.00, and to waive all existing defaults and revise the terms of the financial covenants. In consideration for the waiver and extension of additional loans, Patriarch has been granted additional security in the Company's assets as collateral for the loans and the Company issued to affiliates of Patriarch Series C Preferred Shares convertible into 25% of the fully diluted common equity of the Company. A full-text copy of the press release is available for free at: http://researcharchives.com/t/s?66b6 Xinhua Sports & Entertainment Limited (NASDAQ: XSEL) -- http://www.xsel.com/-- is a sports and entertainment media company in China. Through its Chinese partnerships, XSEL delivers this content across a broad range of platforms, including television, the Internet, mobile phones, cinema, university campuses and other multimedia assets in China. Headquartered in Beijing, the Company has offices and affiliates in major cities throughout China including Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. The Company's balance sheet at December 31, 2009, showed $242.6 million in assets, $268.7 million of liabilities, and $33.8 million of Series B redeemable convertible preferred shares, for a stockholders' deficit of $59.9 million. * * * Deloitte Touche Tohmatsu CPA Ltd., in Beijing, 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 December 31, 2009. The independent auditors noted that the Company incurred a net loss of $313.6 million during the year ended December 31, 2009, and as of that date, the Company's current liabilities exceeded its current assets by $50.9 million, its total liabilities exceeded its total assets by $26.2 million, and its net shareholders' deficiency [attributable to Xinhua Sports shareholders] was $61.4 million. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Aug. 3, 2010 AMERICAN BANKRUPTCY INSTITUTE Atlanta Consumer Bankruptcy Skills Training Georgia State Bar Building, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. 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Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29, 2010 RENAISSANCE AMERICAN MANAGEMENT, INC. & BEARD GROUP, INC. 17th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York City Contact: 1-903-595-3800; http://www.renaissanceamerican.com/ Dec. 9-11, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, a JW Marriott Resort & Spa, Scottsdale, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Jan. 20-21, 2011 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colo. Contact: 1-703-739-0800; http://www.abiworld.org/ January 26-28, 2011 TURNAROUND MANAGEMENT ASSOCIATION TMA Distressed Investing Conference Aria Las Vegas Contact: http://www.turnaround.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 (tentative) AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. Last Updated: July 15, 2010 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***