/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100722.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, July 22, 2010, Vol. 14, No. 201 Headlines 35 INNISBROOK: Case Summary & 7 Largest Unsecured Creditors 39-45 N. JAY: Case Summary & 5 Largest Unsecured Creditors AAER INC: CCAA Stay Order Extended Until August 11 ABITIBIBOWATER INC: Aurelius Wants $620M Claim Okayed for Offering ABITIBIBOWATER INC: Disclosure Statement Hearing Reset to July 30 ABITIBIBOWATER INC: Lufkin Mill Auction Set for August 2 ABITIBIBOWATER INC: Not Hopelessly Insolvent, Equity Holders Say ABITIBIBOWATER INC: Wins OK for APS as Special Advisor ACCURIDE CORPORATION: Moody's Assigns 'B2' Corporate Family Rating ADVERTISING ADVANTAGE: Case Summary & 16 Largest Unsec Creditors AIR CANADA: Moody's Assigns 'B3' Corporate Family Rating AIR CANADA: S&P Puts 'CCC+' Rating on CreditWatch Positive ALBION PROPERTY: Case Summary & 3 Largest Unsecured Creditors AMERICAN INT'L: Said to Name Prudential's Tucker as AIA Head AMERICAN INT'L: Taps Goldman and Morgan Stanley to Lead AIA IPO AMR CORP: DOT Approves oneworld Antitrust Immunity Application AMTRUST BANK: RBS Group Wins Bidding for Loan Assets ASPEN MAIN: Can Pay Insurance Premiums from Postpetition Financing ATLANTIC MARINE: S&P Withdraws 'B+' Corporate Credit Rating AUGUSTA APARTMENTS: Wants More Exclusivity to Resolve Claim BLOCKBUSTER INC: Won't Hold Emergency Shareholders' Meeting BLOUNT INC: Moody's Assigns 'Ba3' Rating on Senior Facility BOSQUE POWER: Launches Ch. 11 Plan with $43M Equity Infusion BROWN PUBLISHING: Shareholder Protests Proposed Asset Sale BRUNDAGE-BONE: Wants Access to Wells Fargo's Cash Until August 16 CALPINE CORPORATION: Moody's Assigns 'B1' for New Secured Notes CAPMARK FIN'L: Dewey & LeBoeuf Charging $1.93 Million for May CAPMARK FIN'L: Has Stipulation with Committee on Loan Probe CAPMARK FIN'L: Private Sale of Capmark Securities Shares Approved CATHOLIC CHURCH: Catholic Mutual Answers Fairbanks Complaint CELERITAS TECHNOLOGIES: Voluntary Chapter 11 Case Summary CELERITASWORKS LLC: Case Summary & 20 Largest Unsecured Creditors CENTRAL FALLS, R.I.: New Receiver Kicks Out Mayor CHELMSFORD LLC: Voluntary Chapter 11 Case Summary CHRYSLER LLC: TARP Inspector Finds Fault in Rapid Dealer Cuts CITIGROUP INC: Names Co-Heads to Global Industrials Group COMMERCIAL VEHICLE: Board Okays Salary Adjustment for K. Frailey CONJUCHEM BIOTECHNOLOGIES: Files for Bankruptcy Under CCAA DAREMY ENTERPRISES: Voluntary Chapter 11 Case Summary DAVID LUECKE: Case Summary & 13 Largest Unsecured Creditors DAVID MCLAUGHLIN: Case Summary & 8 Largest Unsecured Creditors DELPHI CORP: Talking to Banks for Possible IPO DENMAN TIRE: Titan Tire Completes Machinery and Equipment Purchase DENNY'S CORP: Directors Report Disposition of Securities DFL CARIBBEAN: Fitch Affirms Issuer Default Rating at 'BB' DOVER MOTORSPORTS: Posts $4.6 Million Net Loss in First Quarter EDUCATE INC: Moody's Affirms Corporate Family Rating at 'B3' ELAN CORP: $203.5 Mil. Settlement Won't Affect S&P's 'B' Rating EMERSON OVERLOOK: Court Fixes August 31 as Claims Bar Date EPV SOLAR: Wins Nod to Sell Manufacturing Assets to Akart Enerji EPV SOLAR: Has Until August 23 to File Reorganization Plan EQUIPMENT ACQUISITION: Wins Approval of Liquidation Plan EXTENDED STAY: Courts Confirms Chapter 11 Exit Plan FIDELITY PROPERTIES: Wants Professionals OK'd Before Filing Plan FOOD SHARE: Financial Problem Prompts Chapter 11 Filing GARLOCK SEALING: Gets OK for Del Sole as Litigation Counsel GARLOCK SEALING: Robinson Bradshaw as Special Counsel Approved GARLOCK SEALING: Has Nod for Rayburn Cooper as Bankruptcy Counsel GARLOCK SEALING: Wins OK to Hire Covington as Insurance Counsel GARY WOODS: Case Summary & 3 Largest Unsecured Creditors GENERAL MOTORS: TARP Inspector Finds Fault in Rapid Dealer Cuts GEOLOGICAL TECHNOLOGIES: Case Summary & 20 Largest Unsec Creditors GREGORY S MORRIS: U.S. Trustee Unable to Form Creditors Committee HEAVY CONSTRUCTION: Voluntary Chapter 11 Case Summary INFOLOGIX INC: Nasdaq Grants Extension to Regain Compliance INNKEEPERS USA: Asks for September 1 Extension for Schedules INNKEEPERS USA: Cash Shortage, Debt Burden Prompted Filing INNKEEPERS USA: Proposes to Assume Plan Support Agreement JAMESTOWN STAMP: Case Summary & 18 Largest Unsecured Creditors JAPAN AIRLINES: Air Cargo Antitrust Litigation Settled JOHN KILPATRICK: Case Summary & 14 Largest Unsecured Creditors LAKEVIEW AT CAROLINA: Asks for Court OK to Use Cash Collateral LESLIE CONTROLS: DIP Financing, Cash Collateral Use Get Interim OK LESLIE CONTROLS: Proposes Plan to Channel Asbestos Claims to Trust LESLIE CONTROLS: Gets Court OK to Hire Epiq as Claims Agent LESLIE CONTROLS: Section 341(a) Meeting Scheduled for Aug. 19 LEVI STRAUSS: Widens Net Loss to $14-Mil. in May 30 Quarter LORENZ RICHLING: Case Summary & 18 Largest Unsecured Creditors LUIS VAZQUEZ: Case Summary & 9 Largest Unsecured Creditors LYONDELL CHEMICAL: Settles $12-Mil. Fight over Utility Fees MASCO CORPORATION: Moody's Affirms 'Ba2' Corporate Family Rating MEDICAL STAFFING: Taps Jefferies as Investment Banker MESA AIR: Ends Fight with United over Regional Air Contract MGM RESORTS: To Release Q2 Financial Results on August 3 MICHAEL BUMGARNER: Case Summary & 20 Largest Unsecured Creditors MIDWEST PROPERTIES: Case Summary & 9 Largest Unsecured Creditors MINSTER INSURANCE: Seeks Chapter 15 Protection from Creditors MOTOROLA INC: Nokia $1.2 Bil. Deal Won't Affect S&P's 'BB+' Rating MSJ INVESTMENT: Plan Confirmation Hearing Set for September 21 NETWORK COMMS: Working with Restructuring Advisors for Options NEWPAGE CORP: Offers to Exchange $70,000,000 in 11.375% Notes NYC OFF-TRACK: Rayburn Wants Restructuring Plan Within 30 Days ORIENTAL FINANCIAL: S&P Revises Outlook on 'BB+' Rating to Stable PACIFICA MESA STUDIOS: Seeks Bankruptcy Protection PENN TRAFFIC: PBGC Objects to Disclosure Statement PERFORMANCE TRANSPORTATION: Sues Truck Makers Over Monopoly Claims PHILADELPHIA NEWSPAPERS: Seeks to Probe Pension Funds PHILLIP KEITH: Voluntary Chapter 11 Case Summary PREMIER HOTEL: Case Summary & 20 Largest Unsecured Creditors PSEG ENERGY: Moody's Withdraws 'Ba3' Corporate Family Rating QWEST COMMS: To Purchase 3.5% Convertible Senior Notes R & S HEATING: Case Summary & 20 Largest Unsecured Creditors RADIENT PHARMACEUTICALS: Enters Letter of Intent to Buy Provista RADIO ONE: S&P Changes Outlook on 'CCC+' Rating to Developing RASER TECHNOLOGIES: Lenders Waive Payments on Power Plant Loan REID ELAM: Case Summary & 20 Largest Unsecured Creditors RIVER BOTTOM: Case Summary & 16 Largest Unsecured Creditors RIVIERA HOLDINGS: Files Reorganization Plan & Disclosure Statement RIVIERA HOLDINGS: Gets Court's Interim Nod to Use Cash Collateral RIVIERA HOLDINGS: Gets Nod to Hire Garden City as Claims Agent SALT LAKE: Voluntary Chapter 11 Case Summary SATER INC: Case Summary & 20 Largest Unsecured Creditors SEQUENOM INC: Mishandling of Test Delays Test for Trisomy 21 SERMO GROUP: Voluntary Chapter 11 Case Summary SHERIDAN GROUP: Moody's Retains Stable Outlook on 'B2' Rating SHERWOOD FARMS: Has Until Tomorrow to Propose Reorganization Plan SMURFIT-STONE: Proposes Reserve Amount for Carroll Claim SMURFIT-STONE: Reaches Settlement With California SMURFIT-STONE: SSCC Merges With SSCEI, Issues New Shares STONEWALL STALLIONS: Files for Bankruptcy Under Chapter 11 STRATOS GLOBAL: S&P Withdraws Long-Term Issuer & Debt Ratings SUDS USA: Case Summary & 9 Largest Unsecured Creditors TAGISH LAKE: New Pacific Formally Commences Offer to Acquire Firm TEXAS RANGERS: Four Groups May Compete with Ryan at Auction TEXAS RANGERS: JPMorgan Sues to Keep Stadium Lease TOG PROPERTIES: Case Summary & 4 Largest Unsecured Creditors TRANS ENERGY: Secures Forbearance from CIT Capital Until Oct. 29 TROPICANA ENT: Adamar of NJ Wins Nod to Expand JH Cohn Work TROPICANA ENT: OpCo Debtors Propose Unresolved Claims Reserve UAL CORP: Profit Beats Analysts' Estimates on Higher Fares UTSTARCOM INC: Inks Common Stock Agreement with Beijing E-Town VALUE CITY: Recovered Over $250,000 in Preferential Payments VENTRUS BIOSCIENCES: To Ask Bondholders to Extend Note Maturity VERENIUM CORP: Marxe and Greenhouse Sell 80,571 Shares VIDEO DISPLAY: Receives RBC Bank Covenant Waiver Until Aug. 31 VINEYARD NATIONAL: Confirmation Hearing Continues on August 6 VISTEON CORP: Has Access to Cash Collateral Until August 19 VISTEON CORP: Plan Exclusivity Extended Until October 15 VISTEON CORP: Suppliers May Buy Equity in Reorganized Entity VISTEON CORP: Unsecureds Panel Seek to Probe Trade Creditors VITRO SAB: Noteholders Reject Restructuring Proposal V.N.H. INC: Case Summary & 11 Largest Unsecured Creditors WASHINGTON MUTUAL: Shareholders Win Probe of JPMorgan Deal W.R. GRACE: Fee Auditor Submits Report for ZAI Counsel Fees W.R. GRACE: Plum Creek Seeks to File Late Claims W.R. GRACE: Settles Wasau Insurance Coverage Issues WYNNE VIEW: Case Summary & 10 Largest Unsecured Creditors * Insurer Losses Trigger Most Regulator Intervention in a Decade * S&P/Experian Index Confirms Declining Trend of Default Rates * Troubled North Carolina Banks Jump 74% to 40 from 2009 * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ******** 35 INNISBROOK: Case Summary & 7 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: 35 Innisbrook, LLC 35 Innisbrook Avenue Las Vegas, NV 89113 Bankruptcy Case No.: 10-22950 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Edward S. Coleman, Esq. Coleman Law Associates 6615 South Eastern Avenue, Suite 108 Las Vegas, NV 89119 Tel: (702) 699-9000 Fax: (702) 699-9006 E-mail: ldeflyer@coleman4law.com Scheduled Assets: $1,000,012 Scheduled Debts: $1,950,000 A list of the Company's 7 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-22950.pdf The petition was signed by Roderick Nielsen, manager. 39-45 N. JAY: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: 39-45 N. Jay Street Corporation 39-45 N. Jay Street Schenectady, NY 12308 Bankruptcy Case No.: 10-12663 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court Northern District of New York (Albany) Judge: Robert E. Littlefield Jr. Debtor's Counsel: Richard H. Weiskopf, Esq. O'Connell & Aronowitz 54 State Street, 9th Floor Albany, NY 12207 Tel: (518) 462-5601 Fax: (518) 462-2670 E-mail: rweiskopf@oalaw.com Scheduled Assets: $1,083,300 Scheduled Debts: $1,061,782 A list of the Company's 5 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nynb10-12663.pdf The petition was signed by JoAnn Cornell Aragosa, president. AAER INC: CCAA Stay Order Extended Until August 11 -------------------------------------------------- AAER Inc. disclosed that pursuant to an order of the Quebec Superior Court issued on July 7, 2010, the initial order granted under the Companies' Creditors Arrangement Act (Canada) in favour of AAER on April 8, 2010, as subsequently extended from time to time by the court, has now been further extended until August 11, 2010, to allow for the filing of a plan of arrangement and for the holding of a creditors' meeting pursuant to the CCAA. Subject to certain conditions, 7549032 Canada Inc., a wholly-owned subsidiary of Pioneer Power Solutions Inc., has agreed to sponsor a plan of arrangement for the continuation of AAER. Upon approval of the Plan by AAER's creditors, Pioneer will contribute an amount of $450,000 to be used to fund the Plan and the filing of articles of reorganization. Under the Plan, Pioneer will subscribe to the new AAER equity and will become the Corporation's sole shareholder. Pursuant to the July 7 Order, Samson Belair / Deloitte Touche, in its capacity as monitor for AAER, will send to each creditor of the Corporation a notice of the creditors' meeting, a copy of the Plan and a proxy form for the creditors' meeting to be held on August 9, 2010 in Bromont, Quebec, for the purposes of considering and, if deemed advisable, approving the Plan. The documentation and information on AAER's restructuring process are available on the monitor dedicated website at http://www.deloitte.com/ca/aaer/ About AAER Inc. AAER Inc. -- http://www.aaer.ca/-- is a wind turbine manufacturer located in Bromont, Quebec that manufactures and maintains high capacity 1 MW or more wind turbines principally for the North American market. Its strategy is to progressively build its products' components to provide a high level of reliability and competitive pricing to its customers. AAER uses a portfolio of proven European technologies to ensure the performance of its turbines in various wind conditions and terrains. Its stock is listed on the TSX Venture Exchange. ABITIBIBOWATER INC: Aurelius Wants $620M Claim Okayed for Offering ------------------------------------------------------------------ Aurelius Capital Management, LP, and Contrarian Capital Management, LLC, ask the Court to temporarily allow, for the purpose of participating in the rights offering that will allow the Debtors to raise up to $500 million through the issuance of notes, and voting to accept or reject the Debtors' First Amended Joint Plan of Reorganization: * their contribution claim for $620,100,000 plus postpetition interest against Bowater Incorporated; and * the Bowater Canada Holdings Inc. interest in a face amount of not less than $600,000,000 or as otherwise determined by the Court as a preferred interest or claim against BCHI. Aurelius and Contrarian further ask Judge Carey to: (i) classify the Contribution Claim as a general unsecured claim against Bowater and the BCHI Interests as a preferred interest or general unsecured claim against BCHI; (ii) deem the Contribution Claim and the BCHI Interests voted in the same manner as the class of Direct Claims under the Plan; and (iii) authorize the holders of the Bowater Canada Finance Corporation Notes to exercise their pro rata portion of the rights which would be distributable to BCFC in the Rights Offering and receive the consideration provided to parties exercising Rights. As previously reported, Judge Carey approved the Backstop Commitment Agreement that the Debtors secured with investors Fairfax Financial Holdings Limited, Avenue Capital Management and certain prepetition noteholders to backstop the Rights Offering. Under the Rights Offering, AbitibiBowater would offer new convertible notes with a seven-year maturity from the date of closing to eligible unsecured creditors. Upon the effective date of the Debtors' Chapter 11 Plan, the notes would be obtained upon exercise of the rights and convertible into common stock of the emerged company. BCFC Contribution Claim & BCHI Interests BCFC was formed as an unlimited company organized under the laws of Nova Scotia for the purpose of engaging in tax-advantaged financing of the Canadian operations of Bowater. In 2001, BCFC issued $600 million of unsecured notes due November 2011 which are guaranteed by Bowater and are BCFC's only material liabilities. Aurelius and Contrarian, through their managed fund entities, hold in excess of one-third of the BCFC Notes. As of the Petition Date, the amount owing under the BCFC Notes was $620,100,000. BCFC's Contribution Claim against Bowater is in an amount sufficient to satisfy all of BCFC's debts and obligations to its creditors. However, the Disclosure Statement contains little description and no discussion of the Contribution Claim, Dennis A. Meloro, Esq., at Greenberg Traurig, LLP, in Wilmington, Delaware, contends on behalf of Aurelius and Contrarian. "The Contribution Claim falls within the definition of Class 8 Intercompany Claim under the Chapter 11 Plan, which treatment is plainly incorrect," Mr. Meloro says. "Under the Plan, Class 8 Intercompany Claims receive no distributions and are extinguished and discharged; [and] allow the Reorganized Debtors to reinstate such Intercompany Claims but apparently without impacting the distributions on account of [those] Claims." As a result of the Intercompany Transactions, BCFC owns the BCHI Interests, which fit within the definition of Intercompany Interests in the Chapter 11 Plan and thus would be classified under Class 8 Interests. Under the Plan, Intercompany Interests do not receive any distribution. Mr. Meloro argues that the Debtors have included provisions in the Rights Offering that would "eliminate BCFC's right to vote its Contribution Claim as well as its BCHI Interests, without an opportunity for [the Bankruptcy] Court to evaluate the merits and the enforceability of both." "The Debtors have created an artificial deadline by requiring that only allowed unsecured claims as of August 18, 2010 may participate in the Rights Offering," Mr. Meloro laments. "Insofar as BCFC currently does not have an unconflicted fiduciary who is able to make the decision to seek immediate allowance of the Contribution Claim or claims related to the BCHI Interests, there is no reasoned basis to believe that the allowability of the Contribution Claim or claims related to the BCHI Interests will be resolved by the August 18 deadline." Under the current Rights Offering process, the BCFC estate will be deprived of its right to participate in the Rights Offering, much less vote its claim and interests prior to the Voting Deadline, Mr. Meloro argues. 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: Disclosure Statement Hearing Reset to July 30 ----------------------------------------------------------------- The hearing to consider the adequacy of the Disclosure Statement accompanying the First Amended Chapter 11 Plan of Reorganization in the cases of AbitibiBowater, Inc., and its debtor affiliates has been scheduled for July 30, 2010, at 9:00 a.m., Eastern Time. Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware previously adjourned the Disclosure Statement Hearing. Prior to the latest rescheduling, the hearing was slated for July 7, 2010, and thereafter moved to July 15. The Court conducted a telephonic scheduling conference in lieu of the July 15 hearing. Judge Carey intends to consider, at the July 30 hearing, approval of AbitibiBowater's proposed solicitation and balloting procedures in relation to the First Amended Plan and Disclosure Statement. Under its First Amended Plan, AbitibiBowater disclosed that it intends to emerge "with a strengthened financial position." The Official Committee of Unsecured Creditors supports the current version of the Plan. Similarly, unsecured creditors of AbitibiBowater's affiliates, which under restructuring proceedings pursuant to the Companies' Creditors Arrangement Act in Canada, are expected to meet on August 26, 2010, to discuss support of the CCAA Applicants' Plan of Reorganization and Compromise. AbitibiBowater noted that it aims to emerge from creditor protection "in the fall of 2010." About AbitibiBowater AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 22 pulp and paper facilities and 26 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey presides over the case. The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serves as the Debtors' co-counsel, while Troutman Sanders LLP in New York, serves as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors are Advisory Services LP, and their noticing and claims agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represent the Chapter 15 Debtors. As of Sept. 30, 2008, the Company had $9,937,000,000 in total assets and $8,783,000,000 in total debts. Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings and parallel proceedings under the Companies' Creditors Arrangement Act in Canada undertaken by Abitibibowater Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). ABITIBIBOWATER INC: Lufkin Mill Auction Set for August 2 -------------------------------------------------------- AbitibiBowater Inc. and its units notified parties-in-interest that the auction for the sale of their "permanently idled" paper mill site located at Highway 103, East Lufkin, in Angelina County, Texas, will take place on August 2, 2010, at 10:00 a.m., prevailing Eastern Time, at the offices of Young Conaway Stargatt & Taylor, LLP, at 1000 West Street, 17th Floor, in Wilmington, Delaware 19801. Only parties that have submitted a Qualified Bid by no later than July 28 at 12:00 p.m., Eastern Time, may participate in the Auction. The Court will consider approval of the Sale of the Lufkin Property to the Successful Bidder free and clear of all liens, claims, and encumbrances at 1:00 p.m., prevailing Eastern Time, on August 4. Objections, if any, are due no later than July 28. Judge Carey approved on July 6 the proposed bidding procedures to govern the Auction. 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: Not Hopelessly Insolvent, Equity Holders Say ---------------------------------------------------------------- Thirty-four equity shareholders that purportedly hold a total of 13,579,432 shares of AbitibiBowater, Inc. stock ask Judge Carey to appoint an official committee of equity security holders in the Debtors' Chapter 11 cases. The Shareholders are Alan Gilbertson, Amy Firek, Bill Graham, Brad Haskins, Bryan Oukrop, Charlie Simpson, Dan Thornton, Daniel & Colette Nelson, Debbie Kraft, Donna and Robert Brooker, Douglas Stein, Elizabeth Romero, Glen Dombeck, Hermony Lee, James Van Sickle, Jasmine Shah, Jason Patel, John Ferrante, Joseph Flesch, Marj Bidwell, Marine Guilbault, Matthew J. Resnick, Michael Kadysh, Mike Jain, Nora/Margo/Michael Dennis, Ramsey Liao, Rav Reddy, Robert Douma, Ron Novak, Roy George, Scott Carison, Thomas O'Donnell, Toby Walker and William Kovach. The Shareholders filed the Equity Committee Appointment Motion in light of Judge Carey's ruling dated April 30, 2010, directing any party who seeks the appointment of an equity committee in the Debtors' cases to file a formal motion. Representing the Shareholders, L. Jason Cornell, Esq., at Fox Rotshchild LLP, in Wilmington, Delaware, notes that the Chapter 11 proceedings have afforded the Debtors an opportunity to reduce substantial claim exposure, eliminate unprofitable contracts, and renegotiate a more favorable debt structure. He adds that while there is no disputing that the paper industry has declined over the years, there is compelling evidence -- including the Debtors' financial forecasts -- to suggest that the Debtors are not "hopelessly insolvent." Despite the improving economics, however, the Shareholders lament that equity holders are not meaningfully represented in the bankruptcy process. The Chapter 11 Joint Plan of Reorganization, as amended, provides that equity will be "wiped out, considered impaired, and prevented from voting on Plan confirmation," the Shareholders cite. Moreover, the Debtors' planning processes are being undertaken without any representation of the Shareholders who own approximately 27% of the Debtors' stock, Mr. Cornell emphasizes. Mr. Cornell points out that (i) the Official Committee of Unsecured Creditors, the Debtors and the lenders all have a prevailing interest in confirming the Plan; (ii) the directors are not financially motivated to represent the shareholders because they will see significant reward for the confirmation of the plan of reorganization regardless of the outcome for current equity holders; and (iii) creditors are motivated to dilute equity as much as possible. Against this backdrop, the principles of fundamental fairness dictate that equity holders be afforded adequate representation to protect and advance their interests at this critical stage of the Chapter 11 process, Mr. Cornell asserts. "In particular, the equity holders should have the opportunity to meaningfully participate in developing a comprehensive strategic plan, financial forecast and business plan. Without an Official Equity Committee, the Shareholders will go unrepresented and lack a voice during the Debtors' negotiations under the Plan." The Shareholders tell Judge Carey that they are mindful of concerns regarding the additional expense associated with the formation of an official equity committee. The additional costs of an equity committee must be weighed against the need for adequate representation of public shareholders, Mr. Cornell maintains, pointing the Court to McLean Indus., 70 B.R. at 860; see also, Enron Corp., 279 B.R. at 694 and Wang Labs., 149 B.R. at 3-4; Beker Indus., 55 B.R. at 949-51. Robert Douma also submitted a letter to the Court, asking Judge Carey to order the appointment of an equity committee in the Debtors' cases. "As a member of the informal equity committee alliance for AbitibiBowater, I believe it is fair to say that we are not adequately represented at these bankruptcy proceedings," Mr. Douma says. 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: Wins OK for APS as Special Advisor ------------------------------------------------------ AbitibiBowater Inc. and its units sought and obtained approval for Bowater Canada Finance Corporation (i) to employ AP Services, LLC, as special advisor; and (ii) designate Lisa Donohue as vice president for Restructuring at Bowater Canada Finance Corporation, with respect to "intercompany conflicts" that are anticipated to arise. BCFC is a wholly owned subsidiary of Bowater Incorporated organized as an unlimited liability company under Nova Scotia law. BCFC issued notes in the principal amount of $600 million pursuant to the indenture for the 7.95% notes due 2011 dated as of October 31, 2001, among BCFC as issuer, Bowater as guarantor, and the Bank of New York, as trustee. The BCFC Notes remain outstanding. BCFC is a financing vehicle with no material operations. In the event of a winding up of BCFC, it may have a wind up claim against Bowater for any amounts outstanding, as well as other potential claims, in connection with the use of proceeds from the issuance of the BCFC Notes. Resolving the Wind-Up Claim and BCFC Claims presents a potential conflict of interest between BCFC and Bowater. Accordingly, retention of a wholly independent officer to investigate the Wind Up Claim and the BCFC Claims and make recommendations to BCFC's board regarding the appropriate prosecution or settlement is warranted, to "avoid undue expense and delay with their reorganization and emergence efforts, and any appearance of impropriety," according to Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The APS and Donahue Application was objected to by Wilmington Trust Company, as successor indenture trustee for the 7.95% Notes due 2011 issued by Bowater Canada Finance Corporation pursuant to an indenture agreement dated as of October 31, 2001; and Noteholders Aurelius Capital Management, LP, and Contrarian Capital Management, LLP. Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, relates that to resolve the Objections, the Debtors, APS, Ms. Donohue and the Responding Parties agreed to modify the proposed order approving the Application, to provide these terms: (a) In the event BCFC seeks to have APS personnel assume additional or different executive officer positions than the position disclosed in the Application, a request to modify the retention will be filed. (b) Success fees, transaction fees or other back-end fees will be subject to approval by the Court at the conclusion of the Chapter 11 cases on a reasonableness standard and are not being pre-approved by the Court. No success fee, transaction fee or back-end fee will be sought upon conversion or dismissal of the Debtors' cases for cause, or appointment of a trustee. (c) APS will make all appropriate disclosures of facts that may have a bearing on whether the firm, its affiliates, or any individuals working on the engagement that have any conflict of interest or material adverse interest to the Debtors, their creditors, or other parties-in-interest. Disclosures will be supplemented on a timely basis as needed throughout the engagement. (4) APS and Ms. Donahue will be authorized to investigate claims, if any, against the directors and officers of BCFC arising in connection with the BCFC Notes. APS and Ms. Donahue will be authorized to investigate whether conversion of BCFC's Chapter 11 case to a case under Chapter 7 of the Bankruptcy Code, or conversion of BCFC's CCAA proceeding into a case under the Bankruptcy and Insolvency Act of Canada, is appropriate. (5) APS and Ms. Donahue will be authorized to investigate causes of action, if any, based on or related to the use, or failure to use, of the proceeds of the BCFC Notes. (6) APS and Ms. Donahue will prepare a formal report of the investigation conducted and recommendations of the course of action to be taken by BCFC in connection with the Wind Up Claims, the BCFC Claims, the D&Q Claims and the Conversion Issue, as defined in the Application. The Report will be available on a strictly confidential basis to counsel for (i) the Indenture Trustee for the BCFC Notes; (ii) Aurelius and Contrarian; and (iii) any other stakeholder, as appropriate. Attorneys for the Noteholders may share the reports with the Noteholders who agree either to become restricted from trading or to set up appropriate ethical walls. 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). ACCURIDE CORPORATION: Moody's Assigns 'B2' Corporate Family Rating ------------------------------------------------------------------ Moody's Investors Service assigned Corporate Family and Probability of Default ratings of B2 to Accuride Corporation. In a related action, Moody's also assigned a B2 rating to the proposed $300 million senior secured notes and assigned an SGL-2 Speculative Grade Liquidity rating. The rating outlook is stable. The B2 Corporate Family Rating reflects Accuride's deleveraged capital structure and the impact of restructuring actions achieved during and prior to the company's tenor in bankruptcy protection which was completed in February 2010. Through the reorganization process, the company reduced debt by approximately $229 million. Management indicates that restructuring actions, including reductions in headcount, facilities, inventory, and freight costs have resulted in the achievement of $60 million in annual cost savings. The company's lower debt costs and improved cost structure serve to support improved credit metrics consistent with the assigned rating over the near-term, as production in the commercial vehicle industry improves in the latter half of 2010 and into 2011. Through the reorganization process, Accuride continued to deliver product to its major and long-standing customers which has preserved the company's competitive position within the industry. The $300 million senior secured note, along with $10 million of borrowing under an unrated asset based revolving credit facility, and cash on hand will be used to refinance the company's existing senior secured term loan and pay related transaction fees and expenses. The notes will be secured by a first priority lien on substantially all of the company's and the guarantors' owned real property and tangible and intangible assets (other than accounts receivable and inventories) including the capital stock of these subsidiaries (limited to 65% of first-tier foreign subsidiaries), and on a second priority lien on the company's and the guarantors' accounts receivable and inventories (behind the $75 million revolving asset based revolving credit facility). The rating of the notes under Moody's Loss Given Default Methodology consider the potential limitation of collateral coverage given its second priority lien position behind the asset based revolver in the event of a default. As a result, a deficiency was applied to the notes under the methodology resulting in the rating being equal to the Corporate Family Rating. The stable rating outlook incorporates Accuride's reduced debt levels and cash debt service requirements, and Moody's expectation of stable industry vehicle production over the near-term. The outlook also incorporates the expectation of continuing restructuring actions over the near-term as the company adjusts operations to the current industry environment. While EBIT/interest coverage (including Moody's standard adjustments) is expected to approximate 0.5x in 2010 on a pro forma basis, this metric is expected to significantly improve in 2011. Accuride is anticipated to have a good liquidity profile over the near-term. Pro forma for the company's recapitalization, cash balances are expected to approximate $43.1 million. With both balance sheet and operational restructuring actions largely accomplished and a stable commercial vehicle industry environment, Accuride is expected to be in a position to generate positive free cash flow over the near-term. Debt amortization requirements will be eliminated with the refinancing of the term loan. In addition, liquidity will be supported by a new $75 million asset based revolving credit facility maturing in 2014. Approximately $10 million will initially be funded under the facility. The company had approximately $16 million of cash collateralized letters of credit, as of March 31, 2010. Post closing the transaction, the company expects to issue letters of credit under the new asset based revolving credit facility; in turn the $16 million of cash will be released to the company. The senior secured note will not have financial covenants. The revolving credit facility will have a springing minimum fixed charge coverage ratio test of 1.1x if excess availability falls below the greater of 15% of the commitment or $10 million. These ratings are assigned: -- Corporate Family Rating, at B2; -- Probability of Default, at B2; -- Senior secured notes, at B2 (LGD-3, 46%); -- Speculative Grade Liquidity Rating, SGL-2 The asset based revolving credit is not rated by Moody's. Accuride Corporation, headquartered in Evansville, IN, is a diversified North American manufacturer and supplier of commercial vehicle components. Principal products include commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis parts, and seating assemblies. Revenues in 2009 were approximately $570 million. ADVERTISING ADVANTAGE: Case Summary & 16 Largest Unsec Creditors ---------------------------------------------------------------- Debtor: Advertising Advantage, LLC 24 East Third St., Suite 300 Jamestown, NY 14701 Bankruptcy Case No.: 10-13133 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court Western District of New York (Buffalo) Judge: Carl L. Bucki Debtor's Counsel: Robert A. Liebers, Esq. 15 E. 15th St. P.O. Box 3090 Jamestown, NY 14702-3090 Tel: (716) 488-3090 E-mail: liebers@burgettandrobbins.com Scheduled Assets: $1,021,425 Scheduled Debts: $3,223,545 A list of the Company's 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nywb10-13133.pdf The petition was signed by Michael L. McVinney, member. AIR CANADA: Moody's Assigns 'B3' Corporate Family Rating -------------------------------------------------------- Moody's Investors Service has assigned ratings to Air Canada, including a B3 corporate family rating, B3 probability of default rating, and an SGL-2 speculative-grade liquidity rating. In a related action, Moody's assigned a B2 rating to Air Canada's proposed US$900 million first lien senior secured notes due 2015. Air Canada plans to use the net proceeds from the notes to prepay its existing C$700 million secured term loan (due 2014) and increase its liquidity. The ratings outlook is stable. Assignments: Issuer: Air Canada -- Corporate Family Rating, Assigned B3 -- Probability of Default Rating, Assigned B3 -- Speculative Grade Liquidity Rating, Assigned SGL-2 -- US$900 million Senior Secured Notes, Assigned B2 (LGD 3, 37%) -- Outlook, Assigned Stable Air Canada's B3 corporate family rating reflects its significant scale and leading market share of domestic, transborder and international routes in and out of Canada. The rating is also favorably influenced by Air Canada's good liquidity and relatively young age of its mainline fleet which should support modest free cash flow generation over the next few years. Benefits from its membership in the Star Alliance network and the carriers' good prospects for capitalizing on an expected increase in international flight volumes also support the rating. These positive attributes are offset by significant and growing competition from lower cost carriers which have steadily reduced Air Canada's market share over the years, the company's high cost structure arising from its legacy carrier status, and EBITDA margins that are expected to remain relatively thin for its rating despite a focus on costs and firming industry fundamentals. The near term need to renew labor contracts, high adjusted leverage, substantial pension funding obligations, and ongoing debt maturities are all additional factors that constrain the rating. Air Canada's pro forma cash balance of about C$2 billion and Moody's expectation of modestly positive free cash flow for the next year support its SGL-2 speculative grade liquidity rating. Tempering these considerations is Moody's belief that Air Canada needs to maintain significant minimum operating cash requirements (towards C$1 billion in Moody's opinion) and that its near-term debt maturities may exceed free cash flow generated. Moreover, the industry is prone to periods of sudden and significant cash consumptiveness through external shocks. Air Canada relies heavily on its cash resources to fund any such cash outflows as it lacks a committed revolving credit facility. A limited amount of unencumbered assets also impedes the company's ability to raise new capital. The proposed notes will be secured by a first priority lien in a diverse pool of collateral, including accounts receivable, certain owned real property, certain Pacific routes and related gate leaseholds and landing slots, landing slots at London Heathrow's and New York's LaGuardia's airports, certain spare engines and ground equipment. The instrument ratings have been assigned pursuant to Moody's Loss-Given-Default methodology. The ratings outlook is stable and reflects Moody's expectation that Air Canada's key credit metrics will steadily improve towards levels appropriate for its rating. Headquartered in Saint-Laurent, Quebec, Air Canada is the largest provider of scheduled passenger services in Canada and beyond its borders and also provides cargo and tour operator services. Revenues for the last twelve months ended March 31, 2010, were approximately $10 billion. AIR CANADA: S&P Puts 'CCC+' Rating on CreditWatch Positive ---------------------------------------------------------- Standard & Poor's Ratings Services placed its 'CCC+' long-term corporate credit rating on Montreal-based Air Canada on CreditWatch with positive implications. At the same time, Standard & Poor's assigned its 'B+' issue-level rating and '1' recovery rating to Air Canada's proposed US$900 million first-lien senior secured notes due 2015. The '1' recovery rating indicates S&P's expectation of very high (90%- 100%) recovery in the event of a default. The issue-level rating will not be placed on CreditWatch. (For the complete corporate credit rating rationale on Air Canada, see the research report to be published on RatingsDirect on the Global Credit Portal, immediately following this media release.) The rating on the proposed notes is subject to its successful issue, and to S&P's review of the final documentation. In the event of any changes to the amount or terms of the notes, the corporate credit and issue-level ratings could be subject to further review. "The CreditWatch placement reflects S&P's view that, on completion of the proposed notes offering, Air Canada's liquidity will improve to a level S&P believes is consistent with that of its rated peers," said Standard & Poor's credit analyst Jamie Koutsoukis. "That, in combination with what S&P believes are improving market conditions for the air carrier through 2010, should strengthen the corporate credit profile to a level that would likely lead us to raise the corporate credit rating on the company to 'B-' and assign a stable outlook," Ms. Koutsoukis added. The ratings on Air Canada reflects Standard & Poor's view of the airline's credit risk profile, which remains constrained by significant financial leverage and debt servicing burden, high operating cost structure, weak industry demand, and increasing competitive pressure in domestic markets. The positive CreditWatch placement reflects S&P's view that the pending notes issue, if successful under the preliminary terms and conditions that S&P has reviewed, will improve Air Canada's liquidity position. The increase in liquidity, in combination with what S&P views as improving market conditions for its operations, could lead us to raise the corporate credit rating on the company to 'B-' and assign a stable outlook. Conversely, should Air Canada not be able to realize the expected increase in liquidity S&P expects from the proposed notes offering, S&P would likely maintain the current rating. Standard & Poor's expects to resolve the CreditWatch on completion of the notes offering or if the issue is delayed or cancelled. ALBION PROPERTY: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Albion Property Management LLC 79-17 Albion Avenue Elmhurst, NY 11373 Bankruptcy Case No.: 10-46769 Chapter 11 Petition Date: July 18, 2010 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Joel B. Rosenthal Debtor's Counsel: Xianfeng Zou, Esq. 136-20 38 Avenue, Suite 10D Flushing, NY 11354 Tel: (718) 661-9562 Fax: (718) 661-2211 E-mail: xfzou@aol.com Scheduled Assets: $1,150,000 Scheduled Debts: $5,358,251 A list of the Company's 3 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nyeb10-46769.pdf The petition was signed by Tin Ming Cheng, member. AMERICAN INT'L: Said to Name Prudential's Tucker as AIA Head ------------------------------------------------------------ American International Group Inc. plans to name former Prudential Plc Chief Executive Officer Mark Tucker to replace Mark Wilson as head of the bailed-out insurer's main Asia unit, Bloomberg News reported, citing two people with direct knowledge of the matter said. AIG CEO Robert Benmosche has already told AIG's board that Mr. Tucker will succeed Mr. Wilson at Hong Kong-based life- insurance unit AIA Group Ltd., one of the people said. According to Bloomberg, the shakeup comes as AIG tries to get the unit ready for an initial public offering. Mr. Tucker, 52, ran Prudential's Asian business for a decade and was the London-based insurer's CEO from 2005 until last year. 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: Taps Goldman and Morgan Stanley to Lead AIA IPO --------------------------------------------------------------- The Wall Street Journal's Alison Tudor reports that people familiar with the matter said on Wednesday American International Group Inc. has chosen Goldman Sachs Group Inc. and Morgan Stanley to take leading roles as global coordinators in listing its Asian life-insurance unit this fall, kick-starting a share sale that could raise up to $23 billion for U.S. taxpayers. A source said AIG has also enlisted Deutsche Bank AG to be a global coordinator for the initial public offering of AIA Group Ltd. The Journal says a key consideration for the banks will be how to minimize the risk of tapping investors for capital when the outlook for equity markets is so uncertain. The Journal notes AIG's management is especially keen to avoid hiccups after Prudential PLC's $35.5 billion bid for AIA collapsed last month, people familiar with the situation said. The Journal also reports bankers expect institutional investors to use Prudential plc's $35.5 billion bid as a yardstick for valuing the AIG unit. Sources told the Journal that advisers to the company have told AIG that it should be able to raise $12 billion to $15 billion from the AIA IPO and another $5 billion to $8 billion from stake sales to strategic investors. According to the report, bankers say it is difficult to find a direct comparison in Asia for AIA to use as a guide for potential investors as it is present in 15 countries across Asia with roots in the region dating back 90 years. One banker suggested that Australia-based financial-services firm AXA Asia Pacific would be used as a benchmark for the lower end of valuation, while Chinese insurers such as Ping An Insurance Co. would be used to mark the upper end of expectations. However, one banker, according to the Journal, said Prudential had made such a huge effort to familiarize investors with AIA that they already had a grip on the company's financials and a speedy process would be possible. The Journal recalls that before the Prudential bid announced in March, AIG asked nine banks to plan an IPO. The biggest roles, commanding the most fees, went to Morgan Stanley and Deutsche Bank, as global coordinators and book runners. This time round, Goldman has been added. One person, the Journal says, suggested that its performance on the sale of American Life Insurance Co, also known as Alico, was a factor in the decision. The deal raised $15.5 billion for AIG. According to the Journal, AIG now has to choose the other book runners on the IPO. Last time round they were Citigroup Inc., Bank of America Merrill Lynch, Credit Suisse Group, UBS AG and Chinese banks CCB International (Holdings) Ltd. and ICBC International Holdings Ltd., as well as Goldman and Morgan Stanley, according to data provider Dealogic. Morgan Stanley is an adviser to the U.S. Federal Reserve while Goldman, Citigroup and Deutsche Bank are advisers to AIG. 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. AMR CORP: DOT Approves oneworld Antitrust Immunity Application -------------------------------------------------------------- The U.S. Department of Transportation on July 20 granted antitrust immunity to American Airlines and four international partners in "oneworld" to form an integrated global alliance, but also imposed several conditions that will protect consumers and preserve competition. The action makes final the Department's tentative decision of Feb. 13. As a result of the Department's action, American and its oneworld alliance partners British Airways, Iberia Airlines, Finnair and Royal Jordanian Airlines will be able to more closely coordinate international services. The Department found that granting antitrust immunity to the oneworld alliance will provide travelers and shippers with a variety of benefits, including lower fares in some markets, new nonstop routes, improved services and better schedules. The Department also said that the alliance will enhance competition around the world by enabling the oneworld alliance to compete more vigorously with Star Alliance and SkyTeam, which operate similar immunized alliances. While the Department found that the alliance, on balance, was pro- competitive, it noted that the alliance could harm competition on select routes between the United States and London's Heathrow Airport, a major hub for oneworld, where the availability of landing and takeoff slots is limited. To remedy this potential problem, the Department required the applicants to make four pairs of slots at Heathrow available to competitors for new U.S.-London service, with two pairs to be used for Boston-London service and the other two for service from any other U.S. cities. The Department also required changes to the alliance to ensure capacity growth, and required the carriers to submit traffic data and to implement the proposed alliance within 18 months. The carriers also must resubmit the alliance agreements for review within five years. The decision, the show-cause order, and other documents in the case are available on the Internet at http://www.regulations.gov/ docket DOT-OST-2008-0252. About AMR Corporation Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, including Brazil, Europe and Asia. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. At March 31, 2010, the Company had total assets of $25.525 billion against total current liabilities of $8.241 billion, long-term debt, less current maturities of $9.861 billion, obligations under capital leases, less current obligations of $559 million, pension and postretirement benefits of $7.531 billion, and other liabilities, deferred gains and deferred credits of $3.225 billion, resulting in stockholder's deficit of $3.892 billion. * * * AMR carries a 'CCC' issuer default rating from Fitch Ratings. It has 'Caa1' corporate family and probability of default ratings from Moody's. It has 'B-' corporate credit rating, on watch negative, from Standard & Poor's. AMTRUST BANK: RBS Group Wins Bidding for Loan Assets ---------------------------------------------------- Bill Rochelle at Bloomberg News reports that the Federal Deposit Insurance Corp. selected a consortium of Residential Credit Solutions Inc., Carval Investors and RBS Financial Products Inc. as the winning bidder of $898 million of primarily non-performing residential loan assets out of AmTrust Bank. AmTrust Bank, Cleveland, Ohio, was closed December 4 by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with New York Community Bank, Westbury, New York, to assume all of the deposits of AmTrust Bank. ASPEN MAIN: Can Pay Insurance Premiums from Postpetition Financing ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Texas authorized Aspen Main Street Partners, L.P. to incur financing to pay postpetition insurance premiums. Dallas, Texas-based Aspen Main Street Partners, L.P., filed for Chapter 11 bankruptcy protection on March 15, 2010 (Bankr. N.D. Texas Case No. 10-31829). Joyce W. Lindauer, Esq., who has an office in Dallas, Texas, assists the Company in its restructuring effort. In its petition, the Company estimated assets and liabilities at $10,000,001 to $50,000,000. ATLANTIC MARINE: S&P Withdraws 'B+' Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on Mobile, Ala.-based ship repair provider Atlantic Marine Holding Co., including the 'B+' corporate credit rating, and removed the ratings from CreditWatch, where S&P had placed them with positive implications on May 18, 2010. The withdrawal follows the completion of BAE Systems PLC's recent acquisition of the company and the repayment of existing rated debt. AUGUSTA APARTMENTS: Wants More Exclusivity to Resolve Claim ----------------------------------------------------------- Augusta Apartments, LLC, et al., ask the U.S. Bankruptcy for the Northern District of West Virginia to extend their exclusive periods to file and solicit acceptances for a Chapter 11 Plan by 120 days and 180 days, respectively. The Debtors filed their request for an extension before the exclusive plan-filing period was set to expire June 21. The Debtors need additional time to resolve the secured claim of their major secured creditor which a third party offered to purchase. The Debtors say that due diligence in regard to said transaction is ongoing, and if it is consummated, it will have an impact of their Chapter 11 plan. About Augusta Apartments, LLC Morgantown, West Virginia-based Augusta Apartments, LLC, filed for Chapter 11 bankruptcy protection on February 19, 2010 (Bankr. N.D. W.Va. Case No. 10-00303). Robert O. Lampl, Esq., at Robert O Lampl Law Office, assists the Company in its restructuring efforts. The Company estimated its assets and debts at $10,000,001 to $50,000,000 as of the Petition Date. BLOCKBUSTER INC: Won't Hold Emergency Shareholders' Meeting ----------------------------------------------------------- Erik Gruenwedel, writing for Home Media, reports that Blockbuster has denied a request by a group of 300 shareholders seeking to hold an emergency meeting to reconsider two measures that led to the Company being removed from the New York Stock Exchange. Mr. Gruenwedel relates that earlier this month, shareholder Niko Celentano sent Blockbuster CEO Jim Keyes a letter representing about 170 shareholders (or 11% of common stock) asking to reconvene a special meeting to revote on measures that combined Class A and B shares and, more importantly, a reverse stock split that would have brought the stock above the $1 per share minimum value required by the NYSE. Mr. Gruenwedel notes both measures were initially declared passed at the June 24 annual shareholders meeting but then reversed after company officials tabulated the actual vote count. According to the report, Rod McDonald, VP, secretary and general counsel, with Blockbuster, expressed support for the shareholders but reiterated his dissatisfaction the measures did not generate the required backing. "We were surprised and disappointed that almost half of your fellow stockholders did not take the time to familiarize themselves with these important matters and vote at the meeting," Mr. McDonald wrote. Mr. Celentano's group has grown to 392 shareholders as of July 20. According to the group's Web site -- http://www.blockbustershareholder.com/-- the group may be deemed to hold: 16,1266038 A shares 20,754,782 B shares 36,880,820 Combined 57,635,602 Voting Shares 19.88% of All Voting Shares According to the report, shareholder Robert Boff on July 19 sent a response on behalf of the group to Mr. McDonald, saying it was unfair to put failure of the measures' passage only on shareholders. "We still believe that not moving the record date was the most damaging event that caused the failure of our two proposals," Mr. Boff wrote. "Surely, Blockbuster must take the responsibility for that. Let's just say we all made mistakes during this important process." The report further notes Edward Woo, analyst with Wedbush Morgan Securities in Los Angeles, said that, regardless of how shareholders feel, Blockbuster has more pressing issues. "Blockbuster is focused on getting its debt recapitalized and not concerned about getting its stock immediately re-listed on the NYSE," Woo said. "It is a sign that equity concerns are not at the top of their priority list, but debt is." Mary Ellen Lloyd at Dow Jones Newswires reports that in an interview Monday, Mr. Celentano said the group has no current plans to file a shareholder lawsuit. Instead, they are hoping for more direct contact with management and directors as Blockbuster pursues a recapitalization. "I like the fact that they want to open a line of communication," Mr. Celentano said. About Blockbuster Inc. Blockbuster Inc. is a global provider of rental and retail movie and game entertainment. It has a library of more than 125,000 movie and game titles. The Company may be accessed worldwide at http://www.blockbuster.com/ Blockbuster's quarterly report on Form 10-Q showed a net loss of $65.4 million on $939.4 million of revenue for the 13 weeks ended April 4, 2010, compared with net income of $27.7 million on $1.086 billion of revenue for the 13 weeks ended April 5, 2009. The Company's balance sheet as of April 4, 2010, showed $1.319 billion in assets and $1.693 billion of liabilities, for a stockholders' deficit of $374.2 million. PricewaterhouseCoopers LLP, in Dallas, expressed substantial doubt about the Company's ability to continue as a going concern following Blockbuster's 2009 results. BLOUNT INC: Moody's Assigns 'Ba3' Rating on Senior Facility ----------------------------------------------------------- Moody's Investors Service assigned a Ba3 rating to the amended and extended senior secured credit facility of Blount, Inc. The amendments will increase the facility size to $425 million and extend its maturities to 2015 for the revolver and to 2016 for the term loans. Proceeds will be used to retire the company's existing debt, including its remaining term loan balances and its $175 million of senior subordinated notes (currently rated B2), all of which mature in 2012. At the same time, Moody's affirmed the company's Ba3 corporate family rating and assigned a B1 probability of default rating. Blount, Inc. is a wholly-owned subsidiary of Blount International, Inc. The rating outlook is stable. The rating actions consider the company's solid market position in its Outdoor Products segment; the high proportion of this segment's sales going towards replacement markets, a factor which provides some smoothing of the cyclicality inherent in the business; its heavy and diversified mix of international sales (approximately 67% of revenues); the strong turnaround in its performance that began in the third quarter ended September 30, 2009; and reasonably consistent cash flow generation, which has permitted the company to de-lever considerably over the past six years. At the same time, the ratings acknowledge the company's relatively small size and the limited diversity of its end markets, which essentially target consumers in one industry, outdoor equipment. This concentration in a narrow end market that has difficult, but not unassailable, barriers to entry magnify the risks inherent in economic cycles as they impact manufacturers oriented towards the construction and forest products sectors. In addition, Blount continues to have exposure to volatile steel and energy prices. The stable outlook reflects the elimination of the potential liquidity events, all in 2012, that loomed over the company. With the refinancing of the $175 million of senior subordinated notes due in 2012 and the extension of the term loans to 2016, the company has acquired substantial breathing room and, in addition, will be able to make sizable optional reductions in the principal. The Ba3 corporate family rating could be negatively impacted in the event that the company's adjusted debt-to-EBITDA ratio exceeded 4.0x due to either diminished operating performance or increased debt. Factors that could negatively impact operating performance include higher product costs; prolonged weakness in the North American and international end markets; and/or the loss of any portion of business with its largest customers. Debt- financed acquisitions or share repurchases could increase debt. Factors that could have favorable rating implications include sustained revenue growth, improvement in operating margins and free cash flow generation resulting in further debt reduction such that both free cash flow as a percentage of debt increases to over 15% and debt-to-EBITDA declines to less than 3.5x on a sustainable basis; and/or material growth in its tangible equity base. These ratings/assessments were affected: -- Corporate family rating, affirmed at Ba3; -- Probability of default rating, lowered to B1 from Ba3; -- $75 million new senior secured revolver due August 2015 assigned a Ba3 (LGD3, 31%); -- $275 million new senior secured term loan due August 2016 assigned a Ba3 (LGD3, 31%); and -- $75 million new delayed draw senior secured term loan due August 2016 assigned a Ba3 (LGD3, 31%). The ratings on these securities will be withdrawn upon the close of the transaction: -- $60 million existing senior secured revolving credit facility, due 2012, Ba1 (LGD2, 19%); -- $103.5 million existing senior secured term loan, due 2012, Ba1 (LGD2, 19%); -- $3.9 million senior secured term loan, due 2010, Ba1 (LGD2 19%); and -- $175 million of 8 7/8% senior subordinated notes, due 2012, B2 (LGD5, 82%). The elimination of the up-notching of the ratings that had been formerly assigned to the existing revolving credit facility and term loans and the reduction in the Probability of Default rating reflect these factors: (i) elimination of the loss absorption that had been provided by the senior subordinated notes, (ii) the move to an all first-lien bank debt capital structure, which resulted in the use by Moody's in its Loss-Given-Default framework of a 65% family recovery rate (per the Moody's Loss-Given-Default methodology) rather than the more common 50% family recovery rate, and (iii) the use of the higher family recovery rate (65% rather than 50%) implies a higher probability of default and therefore a lower (B1) probability of default rating. The senior secured bank credit facility benefits from the collateral package, which consists of (i) a first priority interest in substantially all of the assets of Blount and its domestic subsidiaries, (ii) a pledge of Blount's capital stock (held by its parent, Blount International Inc.), as well as 100% and 65%, respectively, of the stock held at the company's domestic and foreign subsidiaries; and (iii) upstream guarantees from domestic subsidiaries and downstream guarantees from its parent company. Moody's last rating action for Blount, Inc. occurred December 23, 2009, at which time Moody's affirmed the company's Ba3 corporate family and probability of default ratings, Ba1 on its amended and extended senior secured credit facilities, and B2 rating on its senior sub notes. Blount International, Inc., headquartered in Portland, Oregon, is a manufacturer of outdoor products and gear-related products. Revenues and net income for the trailing twelve month period ended March 31, 2010, were $523 million and $31 million, respectively. BOSQUE POWER: Launches Ch. 11 Plan with $43M Equity Infusion ------------------------------------------------------------ Bankruptcy Law360 reports that Bosque Power Co. LLC has launched a proposed blueprint for reorganization that would see its equity sponsor pouring a $42.5 million infusion into the company in exchange for an 85% stake in the reorganized company, a move that has already come under fire from senior lenders. About Bosque Power Laguna Park, Texas-based Bosque Power Company, LLC, owns and operates a natural gas fired power plant with a capacity of 800 megawatts. The power-generating facility, located in Laguna Park, commenced operations as a natural-gas power plant in 2000. Bosque Power Partners owns 100% of the membership interest in Bosque Power. Bosque Power filed for Chapter 11 on March 24, 2010, (Bankr. W.D. Tex. Case No. 10-60348). Henry J. Kaim, Esq., at King & Spalding LLP, serve as bankruptcy counsel to the Debtor. The Debtor tapped Morgan, Lewis & Bockius LLP as special corporate counsel; Greenhill & Co. LLC as financial advisor; and Kurtzman Carson Consultants LLC as claims agent. In its petition, the Debtor listed assets and debts both ranging from $100,000,001 to $500,000,000. BROWN PUBLISHING: Shareholder Protests Proposed Asset Sale ---------------------------------------------------------- Jim Rosenberg at Editor & Publisher reports that Windjammer Mezzanine and Equity Fund II L.P., a minority shareholder of Brown Publishing, objected to the Company's proposed sale of its assets. The shareholder said the Company failed to file notice with the court identifying the successful bidder and appending a copy of that bidder's asset-purchase agreement. The Official Committee of Unsecured Creditors 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. The first lien lenders are owed roughly $72.7 million as of the bankruptcy filing. The Debtors 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. BRUNDAGE-BONE: Wants Access to Wells Fargo's Cash Until August 16 ----------------------------------------------------------------- Brundage-Bone Concrete Pumping, Inc., and affiliate JLS Concete Pumping, Inc., ask the U.S. Bankruptcy Court for the District of Colorado to extend their debtor-in-possession financing agreement with Wells Fargo Bank, N.A., and use of cash collateral until August 16, 2010. The Debtors are negotiating with Wells Fargo and the other major parties-in-interest the terms of amendment to the Debtors' filed plan of reorganization and will be filing a plan and submitting other key documents to parties-in-interest for review over the next 30 days. Additionally, the Debtors and Wells Fargo were negotiating the terms of an amended DIP Financing. Wells Fargo has consented to the use of cash collateral, subject to the same priority provisions, carve out provisions, adequate protection liens, among others. About Brundage-Bone Concrete Pumping Brundage-Bone Concrete Pumping Inc. and JLS Concrete Pumping Inc., claim to be the largest providers of concrete pumping services in the U.S. JLS Concrete Pumping services California and Nevada from its corporate headquarters in Ventura and from satellite yards in Bakersfield, Fresno, Gardena, Lancaster, Las Vegas, Moorpark, Palm Springs, Riverside, San Diego, San Luis Obispo, Santa Clarita, Temecula, Thousand Oaks, and Ventura. Brundage-Bone and JLS filed for Chapter 11 on Jan. 18, 2010 (Bankr. D. Col. Case No. 10-10758). Sender & Wasserman, P.C., assists the Debtors in their restructuring efforts. According to the schedules, the Company has assets of $325,708,061, and total debts of $230,277,103 as of the Petition Date. CALPINE CORPORATION: Moody's Assigns 'B1' for New Secured Notes --------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to Calpine Corporation's (B1 Corporate Family Rating) planned issuance of senior secured notes due 2020. The rating outlook for Calpine is stable. The B1 rating reflects continued improvement in the company's overall financial performance and an expectation for strengthened cash flow and earnings following the recent purchase of Conectiv Energy's generation assets. The rating also considers actions taken by the company to produce more predictable cash flow and earnings over the intermediate term through new contracted projects being developed and bilateral arrangements in place between the company and various end-users. The rating considers the company's hedging program, a favorable environmental profile, and the sustained operating performance of the generation fleet. At 12 months ending March 31, 2010, Moody's calculate the ratio of Calpine's cash flow to debt at 8.4%, its cash flow coverage of interest at 2.0x and its free cash flow to debt at 7.6%. In light of various above-referenced company initiatives and the incremental cash flow and earnings expected from the Conectiv assets, Moody's believe that future financial performance will position the company reasonably well as a strong "B" rated unregulated wholesale power company. Proceeds from the offering will be used to repay a similar amount of debt outstanding under the company's senior secured term loan. Calpine has stated publicly that it plans to refinance the secured term loan prior to its 2014 maturity. Prior to this offering, Calpine had refinanced more than 25% of the original $6.0 billion secured term loan through a $1.2 billion 7.25% senior secured note offering in November 2009 and a $400 million 8.0% senior secured offering in June 2010. The B1 rating assigned to the senior secured notes reflects the pari-passu first lien collateral position of note holders relative to the company's existing secured revolver (RC) and term loan (rated B1) lenders. Moody's observes that while the first lien secured note holders share in the collateral on a pari-passu basis, note holders have limits placed on their voting rights in certain circumstances until such time as the RC and term loan has been reduced to less than $500 million. While these limitations serve to weaken note holders' position relative to the RC and term loan lenders, it is not considered material enough to warrant a different rating on the notes. The stable rating outlook reflects Moody's expectation for continued execution of the company's strategy through strong plant performance and a carefully implemented hedging strategy which is expected to result in free cash flow generation helping to facilitate consolidated debt reduction. In light of the company's recent rating upgrade on May 5th, limited prospects exist for the rating to be upgraded in the near- term. Calpine's Corporate Family Rating could be upgraded if the company's ratio of free cash flow to debt reaches the high single digits, its cash flow to debt exceeds 12%, and cash coverage of interest expense is above 2.5x on a sustainable basis. The rating could be downgraded if the company is not able to continue executing on its current business plan through strong plant performance and a carefully implemented hedging strategy that results in free cash flow generation which facilitates consolidated debt reduction. Specifically, Calpine's CFR could be downgraded if the company's cash flow to debt drops below 7%, and its cash coverage of interest expense falls below 1.8x. Moody's last rating action on Calpine occurred on June 1, 2010, when a B1 rating was assigned to Calpine's issuance of $400 million in senior secured notes due 2019. Assignments: Issuer: Calpine Corporation -- Senior Secured Regular Bond/Debenture, Assigned B1, LGD4, 50% Headquartered in Houston, Texas, Calpine is a major U.S. independent power company that owns 93 operating power plants with an aggregate generation capacity of approximately 28,669 MW, including the Conectiv assets acquired on July 1st. For the twelve month ending March 31, 2010, Calpine had operating revenues of $6.4 billion. CAPMARK FIN'L: Dewey & LeBoeuf Charging $1.93 Million for May ------------------------------------------------------------- Pursuant to Sections 330 and 331 of the Bankruptcy Code, professionals of Capmark Financial and the Official Committee of Unsecured Creditors seek payment of their fees and reimbursement of their expenses: Dewey & LeBoeuf LLP is charging $1,925,287 for work done May 1 to 30. Loughlin Meghji + Company sought approval of $785,267 in fees for work done in April 1 to 30. Kaye Scholer LLP is asking for $372,607 for April while KPMG LLP is seeking $140,200 for the month of May. Kaye Scholer serves as the Debtors' counsel. Dewey & LeBoeuf serves as attorneys for the Debtors. KPMG serves as tax and accounting advisor to the Debtors. Loughlin Meghji acts as the Debtors' financial advisor. As to the Committee's counsel, Kramer Levin Naftalis & Frankel LLP is asking for $208,672 for the same month. Kramer Levin acts as the Committee's counsel. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- is a diversified company that provides a broad range of financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On October 25, 2009, Capmark Financial Group Inc. and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Case No. 09-13684) Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. Capmark has total assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Since filing in Chapter 11, Capmark completed three sales to generate more than $1 billion cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. Bankruptcy Creditors' Service, Inc., publishes Capmark Financial Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Capmark Financial Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) CAPMARK FIN'L: Has Stipulation with Committee on Loan Probe ----------------------------------------------------------- Capmark Financial Group Inc. agreed that the Official Committee of Unsecured Creditors can examine the Company's files as part of an investigation into a $1.5 billion secured loan made 149 days before the Chapter 11 filing in October. The Committee believes loan proceeds were used to pay off unsecured debt owing to practically the same lenders. The Committee and the Debtors entered into a stipulation in connection with the production of documents. The Stipulation provides, among others, that the Debtors will produce to the Committee: (a) All documents and information offered for production by the Debtors in their objection to the 2004 Motion; and (b) From each of the custodians Jay N. Levine, Moshin Meghji, Thomas L. Fairfield, Gregory J. McManus, Paul W. Kopsky, William Gallagher, and Frederick Arnold, all non- privileged documents in the Debtors' possession, custody, or control, that can be identified through a reasonable search of the most likely repositories of information relating to the issue of: * the Secured Credit Facility negotiations; * potential alternatives to the Secured Credit Facility; and * the Debtors' decision to file for bankruptcy. The Stipulation provides that the Custodians do not include the non-employee directors of the Debtors. The Debtors have represented that their non-employee directors' documents and e- mail do not reside on their systems and, thus, are not within the Debtors' possession, custody or control. Pursuant to the Stipulation, production of the Documents will be on a rolling basis beginning August 2, 2010, and with the production to be completed by August 27, 2010. The parties further stipulate that they will work in good faith to agree upon an appropriate form of privilege log to be provided in connection with any documents or communications withheld from production on the basis of an asserted privilege. The Committee and the Debtors also agree to discuss in good faith any requests by the Committee to depose one or more witnesses. Accordingly, the Committee withdrew its 2004 Motion voluntarily and without prejudice, including without prejudice to the rights of the parties to seek or object to discovery in the future. Stipulation Governing Confidential Info. Citibank N.A. and Citicorp North America also entered into a stipulation governing production of confidential information with the Committee. The Stipulation provides, among others, that: (a) All documents, deposition testimony, deposition exhibits, interrogatory responses, admissions, or any other information or material produced to the Committee will be used solely for the purposes of the Committee's investigation of potential claims and objections relating to the Debtors' affairs including the prepetition secured credit facility and may not be used for any other purposes. (b) A Producing Party may designate Discovery Material produced by it as "Confidential" or "Highly Confidential" if the Producing Party believes in good faith that the Discovery Material contains or reflects non-public confidential, personal, financial, propriety, or commercially sensitive information. (c) The Committee is not obliged to challenge the designation of any Discovery Material as "Confidential" or "Highly Confidential" at the time of receipt, disclosure, or designation of the Material, and a failure to do so will not preclude a subsequent challenge to it. Judge Sontchi granted the parties' Stipulation on July 13, 2010. A full-text copy of the Stipulation is available for free at: http://bankrupt.com/misc/Capmark_CommitteeStip.pdf In a separate order, Judge Sontchi approved the stipulation between the Committee and Citibank, N.A., and Citicorp North America, Inc. governing discovery, pursuant to which: (a) Citibank and Citicorp will produce to counsel to the Committee all non-privileged documents responsive to the document requests on a rolling basis as soon as reasonably practicable, but with an initial production by no later than July 23, 2010; (b) If Citibank and Citicorp excluded from production any documents or communications on the basis of an asserted privilege, they will deliver a privilege log to counsel for the Committee. (c) The Committee is permitted to serve deposition notices for a reasonable number of depositions of persons, and Citibank and Citicorp will make those persons available on dates reasonably agreed to by the parties. (d) Citibank and Citicorp reserve their right to object to any or all of the Document Requests on the grounds that those Document Requests impose obligations beyond those set forth in the Federal Rules of Bankruptcy Procedure, are duplicative of other requests, are overly broad or unduly burdensome, are vague or ambiguous, or are not reasonably calculated to lead to the discovery of admissible evidence on any issue that might reasonably be or become pertinent in the Debtors' case. (e) If the Committee and the Producing Parties are unable to consensually resolve any issues, the Committee may seek further Court order compelling production of (i) documents pursuant to the Document Requests, or (ii) witnesses in accordance with the Deposition Notices. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- is a diversified company that provides a broad range of financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On October 25, 2009, Capmark Financial Group Inc. and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Case No. 09-13684) Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. Capmark has total assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Since filing in Chapter 11, Capmark completed three sales to generate more than $1 billion cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. Bankruptcy Creditors' Service, Inc., publishes Capmark Financial Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Capmark Financial Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) CAPMARK FIN'L: Private Sale of Capmark Securities Shares Approved ----------------------------------------------------------------- Capmark Financial Inc. and its units received approval from the U.S. Bankruptcy Court of a private sale to MountainView Capital Holdings, LCC, of all the issued and outstanding shares that Debtor Capmark Capital Inc. holds in Capmark Securities Inc. In the alternative, if the Court declines to approve the Private Sale, the Debtors seek entry of an order: (i) scheduling an auction on August 13, 2010, at 10:00 a.m.; (ii) approving the bidding procedures for the Sale of the Shares; (iii) approving a break-up fee for the stalking horse bidder as protection against a topping bid that represents a higher or otherwise better offer; (iv) scheduling August 16, 2010, at 3:00 p.m. as the date for the hearing to approve the Sale of the Shares to the winning bidder at the Auction; (v) establishing the objection deadline in connection with the proposed Sale; and (vi) approving the proposed form of notice of the Auction and the Sale Hearing. After the sale of the MSB Business to Berkadia, the Debtors had initially determined it would be in the best interest of their estates to wind down Capmark Securities' business and bear the associated shut-down costs. According to the Debtors, based on their understanding that a negotiated purchase price for the equity of a broker-dealer that has been in existence since 1979 would be relatively low, they did not believe a formal and costly marketing process to sell the business was warranted. However, during the week of March 8, 2010, the Debtors received an unsolicited offer of $100,000 from MountainView, which equals the market purchase price offered for broker-dealer "shell" businesses on www.Bdmarket.com -- an online auction Web site where broker-dealer businesses are regularly advertised and sold. The interest of MountainView caused the Debtors to reevaluate the wind-down decision. Given the continued cost of operating Capmark Securities, the Debtors have analyzed whether an expedited sale or wind-down would be the most efficient means to create value and mitigate ongoing costs. Based on this analysis, the Debtors determined that an expeditious sale presents the best option to maximize value of the Shares rather than a wind-down of Capmark Securities. However, the Debtors still attempted to obtain a greater value for the Shares, and after substantial negotiations between the parties, MountainView increased its offer to $250,000, more than twice the initial offer. In late April 2010, after the Debtors had already engaged in substantial discussions with MountainView, another party, Cortlandt Capital Holdings Inc. also made an inquiry about whether the Debtors would sell Capmark Securities. Thereafter, Cortlandt made an offer in writing to purchase the Shares for $250,000. The Debtors carefully considered the two offers with the aid of their legal and financial advisors, including Loughlin Meghji + Company. After consultation with the Official Committee of Unsecured Creditors, the Debtors determined MountainView's offer to be the highest or otherwise best available offer for the Shares. Among other reasons, the Debtors determined that MountainView's offer provides the greatest likelihood of successful and expedient closing because MountainView's offer had fewer contingencies and two of MountainView's officers were former officers of Capmark Securities and, therefore, have greater familiarity with its business operations. The Debtors believe that a public bidding process for the Shares would not create more value than a private sale for their estates, since prospective bidders would need to bid an unrealistically high amount to overcome the cost involved with a bidding process. * * * Judge Sontchi approved a private sale to MountainView Capital Holdings, LCC of all the issued and outstanding shares that Debtor Capmark Capital Inc. holds in Capmark Securities Inc. In accordance with the order, Newman SB Holding Co. LLC, Debtors Capmark Capital Inc., Capmark Affordable Equity Holdings Inc., Capmark Financial Group Inc. and Capmark Finance Inc., will be deemed to have released Capmark Securities and MountainView. Prior to the entry of the Court's order, David Cheung, senior vice president, director of compliance and general counsel of Capmark Securities Inc., filed with the Court an affidavit supporting the request for approval of the Private Sale Order, saying that: (i) the proposed Sale under the Sale Agreement, pursuant to which the Seller will sell all the issued and outstanding shares it holds in Capmark Securities to MountainView Capital Holdings, LLC, represents the highest or otherwise best offer for the sale of Capmark Securities; (ii) the Sale Agreement was negotiated fairly and at arm's- length and entered into good faith; and (iii) the Sale represents the sound exercise of the Seller's business judgment. In a separate affidavit, David Lausa, president of Capmark Securities Inc., supported the Debtors' request for approval of the Private Sale Order, asserting that the proposed Purchase Price of $250,000 (i) is a reasonable price for a broker-dealer business shell like Capmark Securities; (ii) resulted from good faith, arm's-length negotiation between the Seller and MountainView Capital Holdings, LLC; and (iii) represents the sound exercise of the Debtors' business judgment. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- is a diversified company that provides a broad range of financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On October 25, 2009, Capmark Financial Group Inc. and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Case No. 09-13684) Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. Capmark has total assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Since filing in Chapter 11, Capmark completed three sales to generate more than $1 billion cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. Bankruptcy Creditors' Service, Inc., publishes Capmark Financial Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Capmark Financial Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) CATHOLIC CHURCH: Catholic Mutual Answers Fairbanks Complaint ------------------------------------------------------------ The Catholic Mutual Relief Society of America and The Catholic Relief Insurance Company of America -- the Defendants -- tell the U.S. Bankruptcy Court for the District of Alaska that the first amended complaint filed by the Settlement Trustee, Robert L. Berger, failed to state a cause of action for which relief may be granted against them because Catholic Relief Insurance has never issued an insurance policy to CBNA. Mr. Berger previously sought and obtained the Court's authority to replace the Catholic Bishop of Northern Alaska as plaintiff in the adversary proceeding. John C. Wendlandt, Esq., at Sedor, Wendlandt, Evans & Filippi, LLC, in Anchorage, Alaska, contends that the complaint is premature insofar as it seeks a declaratory judgment with respect to Catholic Mutual's duty to indemnify that may only arise, if at all, in the event CBNA, at some future date, becomes legally obligated to make payment in connection with the claims advanced in the clergy abuse cases filed against the Diocese. Since that had not yet occurred -- and may never occur -- the question of whether the Defendants have a duty to indemnify does not present an actual controversy ripe for adjudication under the Declaratory Judgment Act, Mr. Wendlandt argues, citing Sections 2201 et seq. of the Judicial and Judiciary Procedures Code. Coverage under all certificates issued to CBNA by Catholic Relief Society during the calendar period April 15, 1979, to April 15, 1983, extends only to sums the Plaintiff becomes legally obligated to pay as damages because of a "Bodily Injury" -- or, under Umbrella Excess certificates, because of "Personal Injury," which is "caused by an occurrence," Mr. Wendlandt avers. He explains that those certificates define an "occurrence" as "an accident," which results in an injury "neither expected nor intended" from the standpoint of the Plaintiff. Accordingly, Catholic Mutual asserts, among other things, that the Settlement Trustee fails to state a cause of action for which relief may be granted under those coverage certificates to the extent he cannot prove the injuries suffered by Claimants arose from acts of sexual misconduct that were unexpected or unintended. Berger Objects to Motion to Compel In its motion to compel arbitration and stay proceedings related to the post-1990 abuse claims pending arbitration, The Catholic Mutual Relief Society of America asserts that it seeks contractual arbitration of disputes under its 2008-09 contract of insurance with the Catholic Bishop of Northern Alaska, Settlement Trustee Robert L. Berger tells the U.S. Bankruptcy Court for the District of Alaska. "One glance at the 'arbitration clause,' however, reveals that Catholic Mutual actually seeks a pre-determined advisory ruling through a one-sided process more akin to a Stalin era show trial, than a neutral arbitration," argues John C. Manly, Esq., at Manly & Stewart, in Newport Beach, California. The "arbitration clause," which Catholic Mutual curiously fails to set forth in full in its Motion to Compel, requires that disputes involving the Policy be "arbitrated" before officers and directors of Catholic Mutual, Mr. Manly contends. In other words, he alleges, Catholic Mutual will conveniently serve as both party and judge in any dispute concerning the Policy. As if there could be any reasonable doubt concerning the outcome of the "arbitration," the Policy provides that the "arbitration committee" will make its decision based, among other factors, upon what "best protect[s]" Catholic Mutual, Mr. Manly argues. He adds that even if the "arbitration clause" is enforceable, the Motion to Compel would have to be denied as premature. Hence, the Settlement Trustee says that the arbitration clause is unconscionable, and the Motion to Compel must be denied. George W. Bowder and Paul J. Sievers, Esq., filed separate affidavits in support of the Settlement Trustee's objection. Mr. Bowder is the Diocese's Director of Finance, while Mr. Sievers is the special insurance counsel for the Official Committee of Unsecured Creditors. Second Motion Should be Denied, R. Berger Insists In another objection, Mr. Berger argues that Catholic Mutual's second motion for partial summary judgment is expressly based on the factual assertion that "CBNA breached its duty to cooperate by settling with the [Tort] Claimants, admitting liability, and agreeing to liquidation arbitrations, all without [Catholic Mutual's] consent." In its Second Motion, Catholic Mutual seeks declarations that (i) the Diocese has breached its contractual obligations to Catholic Mutual, which had agreed to defend the Diocese in connection with 22 proofs of claim for abuses alleged to have occurred during the period April 15, 1979, to April 15, 1983, by agreeing to a settlement of these Potential Suits, as incorporated into the Diocese's Confirmed Plan, without Catholic Mutual's consent, (ii) by virtue of the breach, the Diocese and the Settlement Trustee have forfeited any coverage Catholic Mutual might have provided in connection with the Potential Suits, and (iii) Catholic Mutual has no duty to defend the Diocese or the Settlement Trustee in connection with the arbitration proceedings established by the Plan. "In the real world, as opposed to the fictional one created by Catholic Mutual, CBNA contributed nearly $10 million of its own funds and assigned its insurance rights to settle over 200 tort claims asserted against it, only 22 of which Catholic Mutual had agreed to defend -- a fact conveniently ignored by Catholic Mutual in the Motion," asserts James I. Stang, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, California. The Diocese did not admit to liability on any claim, even the 180+ claims Catholic Mutual refused to defend, Mr. Stang contends. Rather, he asserts, as expressly recited in the Second Motion, the claims still need to be liquidated, hence, the need for the arbitrations. Even assuming a breach by the Diocese, Catholic Mutual can point to no resulting prejudice because Catholic Mutual remains free to adjust or defend the claims it is defending, and no defenses, even on claims Catholic Mutual has refused to defend, have been waived, Mr. Stang argues. Further and more importantly, it is Catholic Mutual, as opposed to CBNA, that has actually breached certain insurance certificates Catholic Mutual issued to CBNA, he alleges. The offer to settle the claims Catholic Mutual agreed to defend plus the holders of additional covered claims was provided to Catholic Mutual, which refused to even respond, Mr. Stang tells the Court. Left without a defense to the majority of the claims against it, and in light of Catholic Mutual's failure to even discuss settling the claims it was defending, CBNA agreed to the settlement that resulted in the Plan, he continues. The Second Motion is procedurally deficient for it seeks adjudication of defenses and issues that have not been asserted in any pleading in the adversary proceeding, Mr. Stang contends. He adds that the relief sought in the Second Motion fails to completely dispose of a claim or cause of action and hence, it must be denied. Catholic Mutual Replies The Settlement Trustee's objection brief is more noteworthy for what it fails to say than for what it says, Mr. Wendlandt argues. He alleges that the Settlement Trustee simply ignores that under the Plan, CBNA's responsibility for the claims that Catholic Mutual agreed to defend has been "discharged" and "extinguished completely" so that the Claimants cannot recover any damages they win in the arbitrations. As a consequence of the complete release of liability embodied in those provisions of the Plan, CBNA cannot possibly become "legally obligated to pay . . . damages," Mr. Wendlandt contends. Therefore, he points out, as a matter of law, Catholic Mutual can have no obligation to defend or indemnify CBNA in the arbitrations. The Settlement Trustee asserted that the Plan does not constitute an unauthorized confession of judgment because, as of its effective date, it merely deems claims to be "allowed" "for purposes of distribution" and defers "'allowance' for purposes of valuation" until the arbitration proceedings are conducted, Mr. Wendlandt relates. He argues that this curious exercise in semantics cannot withstand scrutiny under the terms of the Plan and the Bankruptcy Code. He insists, among other things, that under the express terms of the Plan, each Allowed Tort Claim constitutes a judgment against CBNA, which is a clear violation of the terms of the Catholic Mutual's insurance certificates. Parties Stipulate The Diocese/Settlement Trustee and Defendant Alaska National Insurance Company agree in a Court-approved stipulation that ANIC is dismissed with prejudice from the adversary proceeding. Each party will bear its own attorneys' fees and costs. About the Diocese of Fairbanks The Roman Catholic Diocese of Fairbanks in Alaska, aka Catholic Bishop of Northern Alaska, aka Catholic Diocese of Fairbanks, aka The Diocese of Fairbanks, aka CBNA -- http://www.cbna.info/-- filed for Chapter 11 bankruptcy on March 1, 2008 (Bankr. D. Alaska Case No. 08-00110). Susan G. Boswell, Esq., at Quarles & Brady LLP represents the Debtor in its restructuring efforts. Michael R. Mills, Esq., of Dorsey & Whitney LLP serves as the Debtor's local counsel and Cook, Schuhmann & Groseclose Inc. as its special counsel. Judge Donald MacDonald, IV, of the United States Bankruptcy Court for the District of Alaska presides over Fairbanks' Chapter 11 case. The Debtor's schedules show total assets of $13,316,864 and total liabilities of $1,838,719. The church's plans to file its bankruptcy plan and disclosure statement on July 15, 2008. Its exclusive plan filing period expires on January 15, 2009. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CELERITAS TECHNOLOGIES: Voluntary Chapter 11 Case Summary --------------------------------------------------------- Debtor: Celeritas Technologies, LLC 7101 College Blvd, Suite 600 Overland Park, KS 66210 Bankruptcy Case No.: 10-22381 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court District of Kansas (Kansas City) Judge: Robert D. Berger Debtor's Counsel: Lisa Epps Dade, Esq. Tel: (816) 292-8881 Fax: (816) 474-3216 E-mail: leppsdade@spencerfane.com Scott J. Goldstein, Esq. Tel: (816) 474-8100 E-mail: sgoldstein@spencerfane.com Spencer Fane Britt & Browne LLP 1000 Walnut, Suite 1400 Kansas City, MO 64106-2140 Estimated Assets: $100,001 to $500,000 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 Brett Lester, managing member. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- CeleritasWorks, LLC 10-22382 07/13/10 CELERITASWORKS LLC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: CeleritasWorks, LLC 7101 College Blvd., Suite 600 Overland Park, KS 66210 Bankruptcy Case No.: 10-22382 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court District of Kansas (Kansas City) Judge: Robert D. Berger Debtor's Counsel: Lisa Epps Dade, Esq. Tel: (816) 292-8881 Fax: (816) 474-3216 E-mail: leppsdade@spencerfane.com Scott J. Goldstein, Esq. Tel: (816) 474-8100 E-mail: sgoldstein@spencerfane.com Spencer Fane Britt & Browne LLP 1000 Walnut, Suite 1400 Kansas City, MO 64106-2140 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ksb10-22382.pdf The petition was signed by Brett Lester, managing member. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Celeritas Technologies, LLC 10-22381 07/13/10 CENTRAL FALLS, R.I.: New Receiver Kicks Out Mayor ------------------------------------------------- The Providence Journal reports that Mark A. Pfeiffer, a retired Superior Court judge appointed by the state to run the city's finances, notified Mayor Charles D. Moreau Monday morning that he was assuming the powers of the city's mayor, demoting Mr. Moreau to advisory status, cutting his pay to $1,000 every two weeks and ordering him to return his city vehicle, cell phone and any other city equipment. "You should contact my assistant . . . to make arrangements to have your personal belongings delivered or otherwise made available to you," Judge Pfeiffer wrote in a letter that was to be hand-delivered to Mr. Moreau Monday morning, according to the report. Mr. Moreau was drawing a salary of about $70,000 a year, or around $1,350 a week, the report notes. Almost immediately, City Councilman James Diossa called for Mr. Moreau's resignation, the report adds. Central Falls has been grappling with a $3 million deficit from last year and a projected $5 million deficit in its current year municipal budget of about $17.8 million. According to the report, Judge Pfeiffer also notified city Personnel Director Eugene Noury that he was being laid off as of Friday and relieved of his duties immediately, "so you should not report for duty." Judge Pfeiffer said he would be bringing in outside staff to supervise the personnel department. Judge Pfeiffer, 62, retired as an active judge in 2009. He is being assisted on the Central Falls assignment by Christy Healey, who, as a compliance manager in the governor's Office of Economic Recovery and Reinvestment, was responsible for the finances of the office and compliance with the federal economic stimulus law. CHELMSFORD LLC: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Chelmsford, LLC 1150 Portion Road, Suite 16 Holtsville, NY 11742 Bankruptcy Case No.: 10-75578 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Alan S. Trust Debtor's Counsel: Kenneth Reynolds, Esq. McBreen & Kopko 500 North Broadway Jericho, NY 11753 Tel: (516) 364-1095 Fax: (516) 364-0612 E-mail: kreynolds@mklawnyc.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 Jerrold Gorelick. CHRYSLER LLC: TARP Inspector Finds Fault in Rapid Dealer Cuts ------------------------------------------------------------- Neil Barofsky, special inspector general for the Troubled Asset Relief Program, said in an audit report that the U.S. Treasury's request that General Motors Co. and Chrysler Group LLC speed up the closing of U.S. dealerships may have contributed to job losses and may have provided little benefit to the long-term viability of the two automakers. In February 2009, prior to filing for bankruptcy, as a condition for further loans, Chrysler and GM were required by the Treasury to submit restructuring plans. The Treasury rejected the automakers' reorganization plans in March 2009, in part citing a "slow pace" for GM to scale back its dealer network. In light of the rejection and their intervening bankruptcies, GM and Chrysler "significantly accelerated" their dealership termination timetables, with Chrysler scrapping 789 dealerships by June 10, 2009, and GM announcing plans to wind down 1,454 dealerships by October 2010. He noted that job losses at terminated dealerships were "apparently not a substantial factor" in the Treasury Auto Team's decision to scrap the more gradual termination plan. He added that Treasury is not insulated from "its responsibility to the broader economy" and should have kept in mind that one goal of the loan agreements was to "preserve and promote jobs of American workers employed directly by the automakers and subsidiaries and in related industries." Mr. Barofsky said the Treasury should have at least considered whether the benefits of speeding up the closings outweighed costs from a potential loss of tens of thousands of jobs. "Such dramatic and accelerated dealership closings may not have been necessary and underscores the need for Treasury to tread very carefully when considering such decisions in the future," Mr. Barofsky concluded. "This sobering report should serve as a wake-up call as to the implications of politically orchestrated bailouts," Representative Darrell Issa, a California Republican and ranking member on the House Committee on Oversight and Government Reform, said in a statement, according to Bloomberg News. Bloomberg relates that Obama's Treasury Department, which has spent $80.7 billion on auto assistance under the TARP program, criticized the inspector's audit and said without government aid both companies faced failure and possible liquidation. A copy of Mr. Barofsky testimony before the Senate Committee on Finance is available at: http://researcharchives.com/t/s?66d5 Pursuant to the Emergency Economic Stabilization Act of 2008, the Office of the Special Inspector General for the Troubled Asset Relief Program must report to Congress on its oversight activities and compile certain specified data and information about the operation of TARP. A copy of the report submitted by SIGTARP to Congress on July 21 is available for free at: http://researcharchives.com/t/s?66d3 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% 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) CITIGROUP INC: Names Co-Heads to Global Industrials Group --------------------------------------------------------- Citigroup Inc.'s Raymond J. McGuire said the bank has named Wes Walraven and Wayne Beckmann co-heads of its Global Industrials Group. According to an internal memo obtained by The New York Citigroup Inc.'s Raymond J. McGuire said the bank has named Wes Walraven and Wayne Beckmann co-heads of its Global Industrials Group. According to an internal memo obtained by The New York Times' DealBook, Mr. Walraven will relocate to New York from Los Angeles to lead Citi's GIG Investment Banking business. About Citigroup Inc. Based in New York, Citigroup Inc. (NYSE: C) -- is a global diversified financial services holding company whose businesses provide a broad range of financial services to consumer and corporate customers. Citigroup has roughly 200 million customer accounts and does business in more than 140 countries. Citigroup's businesses are aligned in three reporting segments: (i) Citicorp, which consists of Regional Consumer Banking (in North America, EMEA, Asia, and Latin America) and the Institutional Clients Group (Securities and Banking, including the Private Bank, and Transaction Services); (ii) Citi Holdings, which consists of Brokerage and Asset Management, Local Consumer Lending, and a Special Asset Pool; and (iii) Corporate/Other. As reported in the Troubled Company Reporter on November 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. The U.S. Treasury and the Federal Deposit Insurance Corporation agreed to provide protection against the possibility of unusually large losses on an asset pool of roughly $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup issued preferred shares to the Treasury and FDIC. The Federal Reserve agreed to backstop residual risk in the asset pool through a non-recourse loan. Citigroup, the third-biggest U.S. bank, received $45 billion in bailout aid. Other bailed-out banks, including Bank of America Corp., Wells Fargo & Co., have pledged to repay TARP money. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, repaid TARP funds in June. Citigroup is selling assets to repay the bailout funds. Citigroup is one of the banks that, according to results of the government's stress test, need more capital. COMMERCIAL VEHICLE: Board Okays Salary Adjustment for K. Frailey ---------------------------------------------------------------- The Compensation Committee of the Board of Directors of Commercial Vehicle Group Inc. approved a market salary adjustment for Kevin R.L. Frailey following his promotion to President of Electrical Systems. Effective July 12, 2010, Mr. Frailey, who previously served as Executive Vice President and General Manager of Electrical Systems, will receive a base salary increase of 5%, along with an increase in his auto allowance in connection with his appointment. Mr. Frailey's target incentive bonus percentage remains the same. About Commercial Vehicle Group New Albany, Ohio-based Commercial Vehicle Group, Inc., (Nasdaq: CVGI) supplies fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agricultural markets, and the specialty and military transportation markets. The products include static and suspension seat systems, electronic wire harness assemblies, controls and switches, cab structures and components, interior trim systems (including instrument panels, door panels, headliners, cabinetry and floor systems), mirrors and wiper systems specifically designed for applications in commercial vehicles. The Company has facilities located in the United States in Arizona, Indiana, Illinois, Iowa, North Carolina, Ohio, Oregon, Tennessee, Virginia and Washington and outside of the United States in Australia, Belgium, China, Czech Republic, Mexico, Ukraine and the United Kingdom. Commercial Vehicle Group Inc.'s balance sheet at December 31, 2009, showed $250.5 million in total assets and $288.2 million in total liabilities, resulting in a $37.7 million stockholders' deficit. * * * Commercial Vehicle carries a 'Caa2' Corporate Family Rating and 'Caa2/LD' Probability of Default Rating from Moody's. It has a 'CCC+' corporate credit rating from Standard & Poor's. CONJUCHEM BIOTECHNOLOGIES: Files for Bankruptcy Under CCAA ---------------------------------------------------------- ConjuChem Biotechnologies Inc. has filed a voluntary assignment in bankruptcy under the Bankruptcy and Insolvency Act (Canada) in order to effect an orderly liquidation of its assets, property and operations. The protection of the Court granted under the Companies' Creditors Arrangement Act (Canada) ended on July 19, 2010. In light of the foregoing, the directors and officers of the Company have resigned. RSM Ritcher Inc. has been appointed as trustee in bankruptcy. Contact: Gilles Robillard CA CIRP Telephone: (514) 934-3484 Facsimile: (514) 934-3504 E-mail: grobillard@rsmrichter.com Ariella Yedid CA Telephone: (514) 934-3532 Facsimile: (514) 934-3504 E-mail: ayedid@rsmrichter.com DAREMY ENTERPRISES: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Daremy Enterprises, Ltd. 1150 Portion Road, Suite 16 Holtsville, NY 11742 Bankruptcy Case No.: 10-75579 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Robert E. Grossman Debtor's Counsel: Kenneth Reynolds, Esq. McBreen & Kopko 500 North Broadway Jericho, NY 11753 Tel: (516) 364-1095 Fax: (516) 364-0612 E-mail: kreynolds@mklawnyc.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 Jerrold Gorelick, president. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Chelmsford, LLC 10-75578 07/16/10 DAVID LUECKE: Case Summary & 13 Largest Unsecured Creditors ----------------------------------------------------------- Joint Debtors: David Luecke Laurie Luecke 1122 Stonebridge Park Dr Franklin, TN 37069 Bankruptcy Case No.: 10-07441 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court Middle District of Tennessee (Nashville) Judge: George C. Paine II Debtor's Counsel: Elliott Warner Jones, Esq. 1600 Division Street, Suite 675 Nashville, TN 37203 Tel: (615) 916-5264 E-mail: elliott@elliottwarnerjones.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' 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/tnmb10-07441.pdf The petition was signed by the Joint Debtors. DAVID MCLAUGHLIN: Case Summary & 8 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: David W. McLaughlin 807 Washington Drive Chesapeake, VA 23322 Bankruptcy Case No.: 10-73260 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court Eastern District of Virginia (Norfolk) Judge: Stephen C. St. John Debtor's Counsel: Joseph T. Liberatore, Esq. Crowley, Liberatore, & Ryan, P.C. 1435 Crossways Boulevard, Suite 300 Chesapeake, VA 23320 Tel: (757) 333-4500 Fax: (757) 333-4501 E-mail: jliberatore@clrfirm.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Debtor's 8 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/vaeb10-73260.pdf The petition was signed by Mr. McLaughlin. DELPHI CORP: Talking to Banks for Possible IPO ---------------------------------------------- Reuters' Soyoung Kim and Kevin Krolicki report that U.S. auto parts maker Delphi Automotive LLP has begun sounding out investment banks about the prospect of an initial public offering that would mark its return as a listed company as early as next year, according to three people familiar with those early-stage discussions. Sources told Reuters the timing of an IPO remains subject to a number of uncertainties, including the strength of the equity markets. The sources told Reuters a pitch to potential investors has not begun and meetings between Delphi representatives led by Chief Executive Rodney O'Neal and investment bankers who might lead an IPO will not begin for weeks. According to Reuters, one banker with knowledge of the initial Delphi discussions said Delphi could be valued at around $7 billion. Reuters also reports the sources said that a Delphi IP will have to be timed to avoid a conflict with the much larger GM IPO that could come later this year. The sources asked not to be named because the discussions remain informal and confidential. Delphi declined to comment, saying decisions on any stock offering would be made by the company's board and investors. A group of lenders led by Silver Point Capital LP and Elliott Management won a battle in bankruptcy court to buy its key assets. That investor group agreed to forgive nearly $4.5 billion of bankruptcy loans it acquired from previous lenders and agreed to invest another $900 million in the company. Delphi posted a $210 million net profit for the first quarter, its first full quarter out of bankruptcy. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- was a global supplier of mobile electronics and transportation systems, including powertrain, safety, steering, thermal, and controls & security systems, electrical/electronic architecture, and in-car entertainment technologies. Delphi had approximately 146,600 employees and operates 150 wholly owned manufacturing sites in 34 countries with sales of $18.1 billion in 2008. The Company filed for Chapter 11 protection on October 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represented the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court confirmed Delphi's plan on January 25, 2008. The Plan was not consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. At the end of July 2009, Delphi obtained confirmation of a revised plan, build upon a sale of the assets to a entity formed by some of the lenders who provided $4 billion of debtor-in-possession financing, and General Motors Company. On October 6, 2009, Delphi Corp.'s Chapter 11 plan of reorganization became effective. A Master Disposition Agreement executed among Delphi Corporation, Motors Liquidation Company, General Motors Company, GM Components Holdings LLC, and DIP Holdco 3, LLC, divides Delphi's business among three separate parties -- DPH Holdings LLC, GM Components, and DIP Holdco 3. Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will remain responsible for the post-Effective Date administration and eventual closing of the Chapter 11 cases as well as the disposition of certain retained assets and payment of certain retained liabilities as provided under the Modified Plan. Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Delphi Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) DENMAN TIRE: Titan Tire Completes Machinery and Equipment Purchase ------------------------------------------------------------------ Titan Tire Corporation, a subsidiary of Titan International Inc., closed on the Denman Tire machinery and equipment purchase that was previously approved by the United States Bankruptcy Court for the Northern District in Ohio. The machinery and equipment, including other inventory items, was purchased for $3 million U.S. Dollars. The purchase did not include any land or buildings. "[The] machinery and equipment purchase for $3 million, along with the previous acquisition of the Denman name, tire specifications, patents, molds and other items for $4.4 million in June 2010, for a total of $7.4 million, is a good deal for Titan," said Chairman and CEO Maurice M. Taylor Jr. "We expect to get our investment back in a short period of time." Titan International, Inc. -- http://www.titan-intl.com-- is a holding company, owns subsidiaries that supply wheels, tires and assemblies for off-highway equipment used in agricultural, earthmoving/construction and consumer (including all terrain vehicles) applications. About Denman Tire Based in Ohio, Denman Tire -- http://www.denmantire.com/-- is a producer of specialty tires. Denman Tire filed for Chapter 7 liquidation in May 2010. The Company had informed workers in February that it may close down due to poor economic conditions. The Company said it is trying to look for a buyer that could reopen its plant. A total of 270 workers have been laid off since November 2009. The petition says the Company owes between $1 million and $10 million to more than 200 creditors. DENNY'S CORP: Directors Report Disposition of Securities -------------------------------------------------------- Mark F. Wolfinger, EVP, Chief Administrative Officer and CFO of Denny's Corporation, disposed of 50,000 Restricted Stock/ Performance Units on July 16, 2010. The RSUs reflect the partial settlement of vested units (previously awarded under the 2004 total shareholder return program -- October 2005 Supplemental Awards) which were paid 50% in Denny's common stock and 50% in cash. Following the transaction, Mr. Wolfinger has 200,000 RSUs. Also on July 16, Mr. Wolfinger disclosed acquiring 25,000 common shares, raising his stake to 148,296 common shares. In a separate filing, Mr. Wolfinger disclosed that on July 9 he disposed of 21,978 Restricted Stock Units. He held 43,956 RSUs following the transaction. The Restricted Stock Units vest in 20% annual installments and are settled in cash equal to the fair market value of the underlying shares as of the vesting date. Mr. Wolfinger also disclosed acquiring -- and then disposing of -- 21,978 common shares. He held 123,296 common shares following those transactions. Jay C. Gilmore, the company's VP, Chief Administrative Officer and Corporate Controller, disposed of 1,667 Restricted Stock/ Performance Units on July 16 as partial settlement of vested units (previously awarded under the 2004 total shareholder return program) which were paid 50% in Denny's common stock and 50% in cash. He also disposed of 6,667 RSUs as partial settlement of vested units (previously awarded under the 2004 total shareholder return program -- October 2005 Supplemental Awards) which were paid 50% in Denny's common stock and 50% in cash. Following the transactions, Mr. Gilmore holds 26,666 RSUs. Also on July 16, Mr. Gilmore acquired 4,166 common shares, raising his stake to 30,449 common shares. Denny's director Robert E. Marks disclosed acquiring 10,000 restricted stock units on June 7, 2010. The Restricted stock units, which were granted under the Denny's Corporation 2004 Omnibus Incentive Plan, vest 100% on the first anniversary of the grant date, and are payable in shares of common stock on a one- for-one basis upon vesting or upon Mr. Marks' termination of service as a director of Denny's, as elected by Mr. Marks. In separate filings, several directors disclosed acquiring Deferred Stock Units on June 30. The Deferred Stock Units were granted under the Denny's Corporation 2004 Omnibus Incentive Plan, were 100% vested upon the date of grant, and are payable, on a "1- for-1" basis, in Denny's common stock upon Ms. Lauderback's termination of service as director. Mr. Marks disclosed acquiring 385 Deferred Stock Units. Mr. Marks may be deemed to hold 83,922 Deferred Stock Units following the transaction. Brenda J. Lauderback disclosed acquiring 577 Deferred Stock Units. Ms. Lauderback may be deemed to hold 69,441 Deferred Stock Units following the transaction. Louis P. Neeb disclosed acquiring 577 Deferred Stock Units. Following the transaction, Mr. Neeb may be deemed to hold 49,432 Deferred Stock Units. Donald C. Robinson acquired 577 Deferred Stock Units. Mr. Robinson may be deemed to hold 42,213 Deferred Stock Units following the transaction. Donald R. Shepard acquired 385 Deferred Stock Units. Mr. Shepard may be deemed to hold 87,008 Deferred Stock Units following the transaction. Debra Smithart-Oglesby acquired 385 Deferred Stock Units. She may be deemed to hold 85,524 Deferred Stock Units following the transaction. Ms. Smithart-Oglesby, the Company's Board Chair, has succeeded Nelson Marchioli, who had served as the Chief Executive Officer and President of Denny's, effective June 30, 2010. Mr. Marchioli stepped down from the Company. Ms. Smithart-Oglesby has been appointed Interim Chief Executive Officer. On July 12, Morgan Stanley disclosed that it no longer holds Denny's shares. About Denny's Corporation Based in Spartanburg, South Carolina, Denny's Corporation (NASDAQ: DENN) -- http://www.dennys.com/-- is one of America's largest full-service family restaurant chains, consisting of 1,322 franchised and licensed units and 237 company-owned units, with operations in the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico. As of March 31, 2010, the Company had total assets of $313.733 million against total liabilities of $432.726 million, resulting in stockholders' deficit of $118.993 million. According to the Troubled Company Reporter on June 14, 2010, Moody's Investors Service stated that the B2 Corporate Family and Probability of Default ratings and the Stable rating outlook for Denny's Holdings, Inc., will not immediately be affected by the departure of Nelson Marchioli as Chief Executive Officer. DFL CARIBBEAN: Fitch Affirms Issuer Default Rating at 'BB' ---------------------------------------------------------- Fitch Ratings affirms these ratings for DFL Caribbean Holdings Limited and its subsidiary, Development Finance Limited: DFL Caribbean Holdings Limited -- Long-term Issuer Default rating at 'BB'; -- Short-Term IDR at 'B'; -- Individual rating at 'D'; -- Support rating at '3'. Development Finance Limited -- Long-term Issuer Default Rating at 'BB'; -- Short-term IDR at 'B'; -- Individual rating at 'D'; -- Support rating at '3'. Fitch also downgrades DFL's preferred stock rating to 'B-' from 'B+'. The Rating Outlook for DFL is Stable. DFL's long-term IDR is underpinned by Fitch's view that there is moderate probability of support, which is reflected in the '3' support rating, from DFL's owners in the event of need. The largest shareholders are RBTT (owned by Royal Bank of Canada) with 31%, the Government of Trinidad and Tobago with 28%, the European Investment Bank with 8.5%, and the Inter-American Investment Corporation with 8.5%. DFL's focus on lending to SMEs and microfinance appears consistent with policy goals of the government, the EIB and IIC. Fitch considers potential support to be institutional in nature, thus there is no rating floor assigned. The Individual rating, which measures standalone financial strength, reflects exposure concentrations, a large level of impaired loans and operations in riskier markets counterbalanced by DFL's solid capital ratio and long-term funding structure. Given its policy related lending focus, DFL's financial measures may not be comparable to those of typical banks and other financial institutions. Under Fitch's criteria, ratings of preferred stock and other hybrid instruments are based on an institution's standalone financial strength as reflected in the Individual rating. With this in mind, the downgrade of DFL's preferred stock rating reflects aforementioned concerns combined with declining financial performance in 2009. The long-term IDR could be affected if Fitch's view of the probability of support changes. Any upside to the long-term IDR or Individual rating is constrained by DFL's small size, limited market position and credit concentration risk. A downgrade of the Individual rating or a further downgrade of the preferred stock rating could occur in the event of significant operating losses and impairment of capital. Established in 1970, DFL converted to a holding company structure in 2007 under parent company, DFL Caribbean Holdings Limited. Subsidiaries of this holding company are Development Finance Limited, DFLSA Incorporated, Caribbean Development Capital Limited, and Caribbean Microfinance Trinidad and Tobago and CDN Management Services Limited. Development Finance Limited is by far the largest component of the group. This unit focuses on lending to SMEs for a variety of industries in T&T and other countries in the region. DOVER MOTORSPORTS: Posts $4.6 Million Net Loss in First Quarter --------------------------------------------------------------- Dover Motorsports, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $4.6 million on $167,000 of revenue for the three months ended March 31, 2010, compared with a net loss of $4.7 million on $85,000 of revenue for the same period of 2009. The Company's balance sheet at March 31, 2010, showed $144.8 million in assets, $86.9 million of liabilities, and $57.9 million of stockholders' equity. As of March 31, 2010, the Company has $41.3 million outstanding under its revolving credit facility which expires on July 1, 2011. The Company believes the current continuing downturn in economic conditions, including those affecting disposable consumer income and corporate budgets, will have an adverse effect on its projected revenues from admissions and sponsorships. Based on its current projected future results, the Company does not expect to be in compliance with the financial covenants of its revolving credit facility in the second quarter. The Company is currently working with the lenders to amend the provisions of the credit agreement including the revision of the financial covenants to levels that it believes it will be able to maintain compliance with for at least the next twelve months. "The projected noncompliance with our revolving credit facility raises substantial doubt about our ability to continue as a going concern." A full-text copy of the Quarterly Report is available for free at: http://researcharchives.com/t/s?66c7 Dover, Del.-based Dover Motorsports, Inc. (NYSE: DVD) - http://www.DoverMotorsports.com/- promotes motorsports events in the United States. DVD subsidiaries operate three tracks in three states, and present several hundred motorsports events each year. For 2009, 14 major national events were held, including races sanctioned by NASCAR and NHRA. Dover Motorsports, Inc. owns and operates Dover International Speedway in Dover, Del., Gateway International Raceway near St. Louis, Mo., and Nashville Superspeedway near Nashville, Tenn. EDUCATE INC: Moody's Affirms Corporate Family Rating at 'B3' ------------------------------------------------------------ Moody's Investors Service affirmed Educate, Inc.'s B3 corporate family and probability-of-default ratings. Concurrently, Moody's affirmed the B3 rating on the second lien term loan. The ratings on the first lien credit facilities have been withdrawn. The ratings outlook was revised to stable from negative. The outlook revision reflects Educate's improved liquidity profile following the recent completion of an amendment to the second lien term loan that improves flexibility under financial covenants. The outlook revision also reflects additional debt paydown that resulted in the full redemption of the first lien term loan, relatively stable earnings levels despite contracting sales, and Moody's expectation that revenue trends will improve over coming quarters based on recent increases in enrollments. Following Educate's full repayment of the first lien term loan and its voluntary termination of the revolving credit facility, the company is no longer subject to those covenants. Educate has available to it a temporary $15 million unsecured line of credit with its financial sponsor (currently undrawn). However, the company expects to close on a new $5 million revolving credit facility within the near-term and the ratings assume this will be completed. The affirmation of the B3 rating reflects credit metrics that are solid for the ratings category, high operating margins, and the strength of the Sylvan brand name. However, the rating also considers the company's modest scale and continued year-over-year revenue declines due to a reduction in royalties. These summarizes the ratings activity: Ratings affirmed: -- Corporate Family Rating at B3; -- Probability-of-Default Rating at B3. -- $75 million second lien term loan due 2014 at B3 (LGD3, 44%). Point estimate revised from (LGD4, 55%). Ratings withdrawn: -- Senior secured revolving credit facility due 2012 at Ba3 (LGD1, 5%); -- First lien term loan B due 2013 at Ba3 (LGD1, 5%). The last rating action was on September 15, 2009, when Moody's lowered Educate's corporate family and probability-of-default ratings to B3 from B2. Moody's also downgraded the rating on the company's first lien senior secured credit facilities to Ba3 from Ba2. The rating on the second lien term loan was affirmed at B3. The ratings outlook remained negative. Headquartered in Baltimore, Maryland, Educate, Inc. is a leading education services company for students ranging from pre- kindergarten through high school. The company's brands includes Sylvan Learning Centers and Ivy West. ELAN CORP: $203.5 Mil. Settlement Won't Affect S&P's 'B' Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that Elan Corp. PLC's (B/Positive/--) announcement on July 15, 2010, that it expects to pay $203.5 million as part of a comprehensive settlement for all U.S. federal and related state Medicaid claims relating to the U.S. Department of Justice's investigation of sales and marketing practices for Zonegran (divested in 2004) has no effect on its ratings or outlook on the company. While the settlement is relatively large for a 'B' rated company, Elan has established a reserve of $206.3 million for the settlement and related costs. Following last year's sale of AIP and the senior unsecured note issuance, which also extended debt maturities, the company has adequate liquidity to absorb this settlement. At March 31, 2010, the company had $863 million of cash on hand and has generated positive free cash flow in two of the past three quarters. While the company does have $300 million of floating rate debt that matures in 2011, the expected separation of EDT could provide additional liquidity to support that maturity. Should the separation of EDT not occur, S&P still expects Elan to have sufficient cash on hand at that time to meet the maturity. EMERSON OVERLOOK: Court Fixes August 31 as Claims Bar Date ---------------------------------------------------------- The Hon. James E. Massey of the U.S. Bankruptcy Court for the Northern District of Georgia established August 31, 2010, as the last day for any individual or entity to file proofs of claim against Emerson Overlook, LLC. Proofs of claim or interest must be filed with: Clerk, U.S. Bankruptcy Court 1340 U. S. Courthouse 75 Spring Street, S.W. Atlanta, GA 30303-3367 Marietta, Georgia-based Emerson Overlook, LLC, filed for Chapter 11 bankruptcy protection on January 4, 2010 (Bankr. N.D. Ga. Case No. 10-60282). Todd E. Hennings, Esq., and William A. Rountree, Esq., at Macey, Wilensky, Kessler & Hennings LLC, assist the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and liabilities in its petition. EPV SOLAR: Wins Nod to Sell Manufacturing Assets to Akart Enerji ---------------------------------------------------------------- The Hon. Michael B Kaplan of the U.S. Bankruptcy Court for the District of New Jersey authorized EPV Solar, Inc., to sell substantially all of its manufacturing assets to Akart Enerji Yatirimlari A.S., or any of its affiliates, free and clear of liens, claims, encumbrances, and interests. The Debtor is represented by: Lowenstein Sandler PC Kenneth A. Rosen, Esq. S. Jason Teele, Esq. Timothy R. Wheeler, Esq. 65 Livingston Avenue Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 Robbinsville, New Jersey-based EPV Solar, Inc., fka Energy Photovoltaics, Inc., filed for Chapter 11 bankruptcy protection on February 24, 2010 (Bankr. D. N.J. Case No. 10-15173). The Company estimated its assets and its debts at $50,000,001 to $100,000,000 as of the Petition Date. EPV SOLAR: Has Until August 23 to File Reorganization Plan ---------------------------------------------------------- The Hon. Michael B Kaplan of the U.S. Bankruptcy Court for the District of New Jersey extended EPV Solar, Inc.'s exclusive periods to file and solicit acceptances for the proposed plan of reorganization until August 23, 2010, and October 22, respectively. Robbinsville, New Jersey-based EPV Solar, Inc., fka Energy Photovoltaics, Inc., filed for Chapter 11 bankruptcy protection on February 24, 2010 (Bankr. D. N.J. Case No. 10-15173). Kenneth Rosen, Esq., and Samuel Jason Teele, Esq., at Lowenstein Sandler PC, assist the Company in its restructuring effort. The Company estimated its assets and its debts at $50,000,001 to $100,000,000. EQUIPMENT ACQUISITION: Wins Approval of Liquidation Plan -------------------------------------------------------- Dawn McCarty at Bloomberg News reports that Equipment Acquisition Resources Inc. won approval of its bankruptcy liquidation plan. Bloomberg relates that Chief Restructuring Officer William Brandt Jr., of the turnaround firm Development Specialists Inc., said in an interview after the bankruptcy filing that he discovered the company was a Ponzi scheme that wiped out as much as $175 million in borrowed funds by paying earlier lenders with proceeds from newer ones. According to the report, Mr. Brandt, who will serve as the plan administrator, will oversee the liquidation of all remaining assets and distributions to creditors. He will have the authority to settle litigation claims as well as pursue litigation claims against third parties. About Equipment Acquisition Palatine, Illinois-based Equipment Acquisition Resources, Inc., was a market maker in semiconductor manufacturing equipment sales and servicing. It owns 2000 pieces of semiconductor manufacturing equipment and was engaged in fraudulent activity. Equipment Acquisition filed for Chapter 11 bankruptcy protection on October 23, 2009 (Bankr. N.D. Ill. Case No. 09-39937). Barry A. Chatz, Esq., at Arnstein & Lehr LLP, assists the Company in its restructuring efforts. The Company listed $10,000,001 to $50,000,000 in assets and $100,000,001 to $500,000,000 in liabilities in its petition. Unsecured creditors are owed about $102 million, according to court papers. The Company has been facing allegations of being a Ponzi scheme. First Premier Capital LLC, claiming to be owed $20 million, alleged that that the scheme has cost creditors up to $175 million. The Company is now being managed by William Brandt, as chief restructuring officer. Mr. Brandt was hired in October when the officers and directors resigned. EXTENDED STAY: Courts Confirms Chapter 11 Exit Plan --------------------------------------------------- U.S. Bankruptcy Judge James Peck has signed off on Extended Stay Inc.'s plan to restructure itself by selling substantially all its assets to a private equity team, according to Bankruptcy Law360. The Plan for ESI's debtor affiliates is hinged on the $3.925 billion sale of the business to a group formed by Centerbridge Partners, Paulson & Co., and Blackstone Real Estate Associates VI L.P. The Centerbridge group was selected as the winning bidder at a May 27, 2010 auction, beating out another bidder led by Starwood Capital Group and TPG by less than $40 million. Centerbridge offered to pay about $3.925 billion in cash and to contribute certificates representing interests in a pre-bankruptcy $4.1 billion mortgage loan for the equity of ESI's debtor affiliates. About Extended Stay Extended Stay is the largest owner and operator of mid-price extended stay hotels in the United States, holding one of the most geographically diverse portfolios in the lodging sector with properties located across 44 states (including 11 hotels located in New York) and two provinces in Canada. As a result of acquisitions and mergers, Extended Stay's portfolio has expanded to encompass over 680 properties, consisting of hotels directly owned or leased by Extended Stay or one of its affiliates. Extended Stay currently operates five hotel brands: (i) Crossland Economy Studios, (ii) Extended Stay America, (iii) Extended Stay Deluxe, (iv) Homestead Studio Suites, and (v) StudioPLUS Deluxe Studios. Extended Stay Inc. and its affiliates filed for Chapter 11 on June 15, 2009 (Bankr. S.D.N.Y. Case No. 09-13764). Judge James M. Peck handles the case. Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, in New York, represents the Debtors. Lazard Freres & Co. LLC is the Debtors' financial advisors. Kurtzman Carson Consultants LLC is the claims agent. Extended Stay had assets of $7.1 billion and debts of $7.6 billion as of the end of 2008. Bankruptcy Creditors' Service, Inc., publishes Extended Stay Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings undertaken by Extended Stay Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). FIDELITY PROPERTIES: Wants Professionals OK'd Before Filing Plan ---------------------------------------------------------------- Fidelity Properties Group, LLC, asks the U.S. Bankruptcy Court for the Middle District of Florida to extend its exclusive period to file, and solicit acceptances for, a proposed Chapter 11 plan by 60 days. The Debtor is seeking to have the case substantively consolidated with the case of Global Associates International Group, Inc. In addition, the Debtor is still awaiting the employment approval of professionals who will assist in the case. About Fidelity Properties Group LLC Orlando, Florida-based Fidelity Properties Group LLC filed for Chapter 11 bankruptcy protection on April 1, 2010 (Bankr. M.D. Fla. Case No. 10-05510). Lawrence M. Kosto, Esq., Kosto & Rotella PA, assists the Company in its restructuring effort. FOOD SHARE: Financial Problem Prompts Chapter 11 Filing ------------------------------------------------------- KKTV.com reports that Food Share America filed for bankruptcy under Chapter 11 after a bank stopped providing more credit. The filing came after Food Share canceled its latest distribution of discount groceries and all future orders. According to person familiar with the matter, the company as more than $100,000 in bounced checks. Food Share America serves communities in Colorado, Kansas, Louisiana, Missouri, Nebraska, New Mexico, Oklahoma, South Dakota, Texas and Wyoming. GARLOCK SEALING: Gets OK for Del Sole as Litigation Counsel ----------------------------------------------------------- Garlock Sealing Technologies LLC and its units received authority from the U.S. Bankruptcy Court for the Western District of North Carolina to employ Del Sole Cavanaugh Stroyd LLC as their special litigation counsel, nunc pro tunc to the Petition Date. DSCS has represented the Debtors as local counsel in the Chapter 11 case of Pittsburg Corning Corporation pending before the U.S. Bankruptcy Court for the Western District of Pennsylvania. Specifically, before the Petition Date, DSCS was engaged to serve as co-counsel with Robinson Bradshaw & Hinson in connection with Garlock Sealing Technologies LLC's objections to Pittsburg Corning's reorganization plan. A trial with respect these objections were scheduled to commence between June 1 and 11, 2010. As the Debtors' special litigation counsel, DSCS' services to the Debtors will include representation of the Debtors in the Pittsburgh Corning bankruptcy case, and any other legal disputes or litigation pending before the Commonwealth of Pennsylvania and the U.S. District Court for the Western District of Pennsylvania. The Debtors will pay DSCS' professionals according to their customary hourly rates: Title Rate per Hour ----- ------------- Partners $295 to $350 Associates and Counsel $210 to $250 Paralegals $95 to $130 Specific DSCS' professionals to render services to the Debtors are: Name Title Rate per Hour ---- ----- ------------- Arthur H. Stroyd, Jr. Partner $350 Stephen Del Sole Partner $295 Patrick Cavanaugh Partner $295 Richard Swanson Associate $250 William Stickman Associate $210 Monisha Still Paralegal $125 The Debtors will also reimburse DCSC for expenses incurred. In the 12 months before the Petition Date, DSCS received payments from the Debtors for services rendered for $12,369. The Debtors have also paid DSCS a retainer to secure the payment of fees before the Petition Date. Arthur H. Stroyd, Jr., Esq., at Del Sole Cavanaugh Stroyd LLC -- astroyd@dscslaw.com -- relates that DSCS formerly represented or currently represents Bank of America, a creditor to the Debtors, and its related companies in a negligence action involving an alleged mistaken foreclosure on residential property before the Court of Common Pleas of Allegheny County, Pennsylvania. However, Mr. Stroyd maintains that DSCS is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor listed $500,000,001 to $1,000,000,000 in assets and $100,000,001 to $500,000,000 in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARLOCK SEALING: Robinson Bradshaw as Special Counsel Approved -------------------------------------------------------------- Garlock Sealing Technologies LLC and its units received the U.S. Bankruptcy Court's permission to employ Robinson, Bradshaw & Hinson, P.A., as their special counsel, nunc pro tunc to June 5, 2010. Robinson Bradshaw has represented and advised the Debtors as general asbestos counsel for over eight years. Robinson Bradshaw has represented and advised EnPro Industries, Inc. and Coltec Industries as outside general corporate counsel for the same time period. As the Debtors' special counsel, Robinson Bradshaw's services will include all matters related to asbestos claims against the Debtors, including: (a) assisting and advising the Debtors relative to matters in the administration of their estates to the extent related to the Asbestos Claims; (b) representing the Debtors at hearings to be held before the Court related to the Asbestos Claims and communicating with the Debtors regarding the matters and issues raised and the decisions and actions of the Court; (c) reviewing, analyzing, or drafting applications, orders, operating reports, schedules and statements filed with the Court by the Debtors or other interested parties in the Chapter 11 cases to the extent related to the Asbestos Claims, and advising the Debtors as to the necessity and propriety of these documents and their impact on the Asbestos Claims; (d) assisting the Debtors in preparing appropriate legal pleadings, motions, adversary proceedings, proposed orders, and other related documents as may be required in support of positions taken by the Debtors relative to the Asbestos Claims; (e) assisting the Debtors in negotiations and other communications related to the Asbestos Claims, whether with the Official Committee of Asbestos Personal Injury Claimants, any legal representative appointed to represent the interests of holders of asbestos claim demands, any Asbestos Claimants or their representatives, or any other person; (f) assisting and advising the Debtors regarding notices and other communications to Asbestos Claimants, holders of Demands, and their lawyers and representatives regarding any motions, applications, or adversary proceedings filed by the Debtors or the Debtors' efforts, progress and recommendations respecting matters arising in the Chapter 11 cases as well as any proposed plan of reorganization; (g) assisting the Debtors in drafting and preparing any plan of reorganization, disclosure statement, or related documents to the extent that those documents address the Asbestos Claims, and the solicitation and filing with the Court of acceptances or rejections of any proposed plan or plans of reorganization by holders of the Asbestos Claims and Demands; (h) assisting, advising and taking action for the Debtors relating to any insurance policy that addresses, or might address, any Debtor's losses associated with the Asbestos Claims; (i) assisting, advising and taking action for the Debtors relating to any bar date for the filing of the Asbestos Claims, the allowance of any Asbestos Claim or Asbestos Claims, or estimation of any Debtor's liability for the Asbestos Claims or Demands; (j) representing the Debtors in any adversary proceeding for injunctive relief protecting, during the pendency of the Chapter 11 cases, the Debtors, their affiliates, employees, representatives, insurers, and other protected persons, and the insurance and other property of the Debtors' estates from the continuation of litigation related to any Asbestos Claims or Demands; (k) assisting, advising and taking action for the Debtors concerning the establishment of a trust under Section 524(g) of the Bankruptcy Code and issuance of a permanent injunction pursuant to Section 524(g) channeling the Asbestos Claims and Demands to that 524(g) Trust for processing and payment and enjoining the holders of Asbestos Claims and Demands from asserting any claim against the Debtors, their affiliates and other persons entitled to protection under the Bankruptcy Code; (l) assisting, advising and taking action for the Debtors related to any adversary proceeding or contested action against any other person or entity, including any Asbestos Claimant or that claimant's representatives, who may have some liability to the Debtors related to the Asbestos Claims, including any proceeding against that person who has participated in the fraudulent or negligent misstatement of material facts or concealment of material evidence in connection with the assertion against any Debtor of an Asbestos Claim; and (m) otherwise assisting, advising and taking action for the Debtors concerning matters and dealings with persons or their representatives that have made or may make the Asbestos Claims or Demands, including matters and dealings with the Official Committee of Unsecured Creditors. Robinson Bradshaw will also advise the Debtors in matters of taxation, including those matters related to the Asbestos Claims or Demands and any trust established pursuant to the Bankruptcy Code. Robin Bradshaw will further represent and advise the Debtors with respect to corporate financing, including the establishment of credit facilities, amendments, and modifications. The Debtors will pay Robinson Bradshaw's professionals according to their customary hourly rates: Title Rate per Hour ----- ------------- Shareholders $295 to $550 Counsel $305 to $475 Associates $185 to $350 Legal Assistants $125 to $170 The professionals proposed to represent the Debtors are: Name Title Rate per Hour ---- ----- ------------- Garland S. Cassada Shareholder $500 Herman Spence Shareholder $440 Stephen M. Lynch Shareholder $430 Stuart H. Johnson Shareholder $380 Matthew S. Churchill Shareholder $355 William W. Toole Shareholder $370 Jonathan C. Krisko Associate $280 Carl S. Beattie Associate $250 Jonathan R. Eide Associate $220 Richard C. Worf Associate $220 Ty E. Shaffer Associate $200 James Cass Associate $185 Satyra L. Riggins Legal assistant $155 The Debtors will also reimburse Robinson Bradshaw for expenses incurred. The Debtors disclose that their obligations to Robinson Bradshaw are current on prepetition services rendered. In the 12 months before the Petition Date, Robinson Bradshaw received payments from the Debtors aggregating $1,514,530. Mr. Cassada relates that Robinson Bradshaw had represented in the past and may in the future represent certain parties, in matters unrelated to the Debtors' Chapter 11 cases. In addition, he notes that certain professionals of Robinson Bradshaw own equity or debt securities in significant creditors of the Debtors, namely: * EnPro Industries, Inc. * Bank of America Corporation * Wells Fargo & Company * SunTrust Banks, Inc. As of April 26, 2010, Robert S. McLean, a former shareholder of Robinson Bradshaw, became employed by EnPro as vice president, legal. Mr. McLean has not been involved in any of the matters for which Robinson Bradshaw seeks employment, and none of the matters for which RBH seeks employment will fall directly within his duties as an employee at EnPro, Mr. Cassada assures the Court. Mr. Cassada maintains that Robinson Bradshaw is a "disinterested person" as that term is defined under Section 101(14) of the Bankruptcy Code. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor listed $500,000,001 to $1,000,000,000 in assets and $100,000,001 to $500,000,000 in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARLOCK SEALING: Has Nod for Rayburn Cooper as Bankruptcy Counsel ----------------------------------------------------------------- Garlock Sealing Technologies LLC and its units received the U.S. Bankruptcy Court's permission to employ Rayburn Cooper & Durham, P.A., as their counsel, nunc pro tunc to June 5, 2010. As the Debtors' counsel, Rayburn Cooper will render services, including: (a) to provide the Debtors legal advice with respect to their powers and duties as debtors-in-possession in the continued operation of its business and management of their properties; (b) to assist in taking all necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of disputes in which the Debtors are involved, and the preparation of objections to claims filed against the Debtors' estates; (c) to prepare or assist in preparing on behalf of the Debtors all necessary schedules, statements, applications, answers, orders, reports, motions and notices in connection with the administration of the Debtors' estates; (d) to appear before the Court and other courts as may be appropriate to represent the interests of the Debtors in matters that require representation and to represent and assist the Debtors in negotiations with other parties-in- interests in the Debtors' Chapter 11cases; (e) to advise and assist in formulating and preparing of a plan of reorganization on behalf of the Debtors, the related disclosure statement, and any revisions, amendments relating to those documents, and all related materials; and (f) to perform other legal services for Debtors which may be necessary in the Debtors' Chapter 11 cases. The Debtors will pay Rayburn Cooper's professionals according to their customary hourly rates: Title Rate per Hour ----- ------------- Partners $260 to $600 Associates $180 to $225 Paraprofessionals $125 to $150 The Debtors will also pay Rayburn Cooper's partners according to their 2009 hourly rates. Rayburn Cooper will be reimbursed for reasonable, out-of-pocket expenses. Albert F. Durham, Esq., a member at Rayburn Cooper, discloses that a year before the Petition Date, his firm provided legal services to the Debtors and has been paid $431,009 for services rendered for the period from December 2009 through June 3, 2010. Rayburn Cooper also received an additional $518,749 from the Debtors which it holds as a retainer for services to be rendered, including the bankruptcy case filing fees totaling $3,117. All of the payments made to Rayburn Cooper before June 4, 2010, were from the prepetition retainer received by the firm. Mr. Durham further discloses that some of Rayburn Cooper's attorneys may in the past have been associated with or been a summer law clerk for other law firms that have appeared or may appear in the Debtors' Chapter 11 cases. However, those relationships did not involve the Debtors, he says. Neither Rayburn Cooper nor any of its shareholders hold any direct equity interest in the Debtors, he adds. Thus, Rayburn Cooper is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code, he maintains. In a related development, Rayburn Cooper filed with the Court a disclosure of compensation, citing the $518,749 received from the Debtors for postpetition fees and $431,009 for prepetition fees 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 OK to Hire Covington as Insurance Counsel --------------------------------------------------------------- Garlock Sealing Technologies LLC and its units received the Court's permission to employ Covington & Burling LLP as their special insurance counsel, nunc pro tunc to June 5, 2010. Covington has represented and advised the Debtors as insurance coverage counsel for over a decade. As the Debtors' insurance counsel, Covington will represent and advise the Debtors in matters related to insurance coverage, rights and obligations, particularly those matters which relate to the resolution of asbestos claims against the Debtors. The Debtors will pay Covington's professionals according to their customary hourly rates: Title Rate per Hour ----- ------------- Attorneys $275 to $940 Paralegals $195 to $355 Specific Covington's professionals to render services to the Debtors are: Full Discounted Name Title Rate Rate ---- ----- ---- ---------- William F. Greaney Partner $890 $757 Michael St. Patrick Baxter Partner $775 $659 Charles Kitcher Associate $430 $366 Joshua D. McKarcher Associate $320 $272 The Debtors and Covington agree that those rates will be discounted at 15%. The Debtors will also reimburse Covington for expenses incurred. Covington received a retainer from the Debtors on May 28, 2010. A portion of the retainer has been applied to the payment of fees and costs incurred prepetition. In the 12 months before the Petition Date, Covington received payments totaling $1,466,140 from the Debtors. As of June 5, 2010, Covington has not rendered postpetition services that have not yet been billed. Mr. Greaney -- wgreaney@cov.com -- discloses that his firm in the last two years: (i) currently represents certain parties, a schedule of which is available for free at: http://bankrupt.com/misc/Garlock_CovingtonCurrentClients.pdf (ii) represented, but does not currently represent certain parties, a schedule of which is available for free at: http://bankrupt.com/misc/Garlock_CovingtonPastClients.pdf in matters unrelated to the Debtors' Chapter 11 cases. Despite those disclosures, Covington is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code, Mr. Greaney assures the Court. 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) GARY WOODS: Case Summary & 3 Largest Unsecured Creditors -------------------------------------------------------- Joint Debtors: Gary A. Woods Karen E. Woods 5960 S 135th St W Clearwater, KS 67026 Bankruptcy Case No.: 10-12397 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court District of Kansas (Wichita) Judge: Robert E. Nugent Debtor's Counsel: J. Michael Morris, Esq. 301 N Main, Suite 1600 Wichita, KS 67202 Tel: (316) 267-0331 E-mail: jmmorris@kmazlaw.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' 3 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ksb10-12397.pdf The petition was signed by the Joint Debtors. GENERAL MOTORS: TARP Inspector Finds Fault in Rapid Dealer Cuts --------------------------------------------------------------- Neil Barofsky, special inspector general for the Troubled Asset Relief Program, said in an audit report that the U.S. Treasury's request that General Motors Co. and Chrysler Group LLC speed up the closing of U.S. dealerships may have contributed to job losses and may have provided little benefit to the long-term viability of the two automakers. In February 2009, prior to filing for bankruptcy, as a condition for further loans, Chrysler and GM were required by the Treasury to submit restructuring plans. The Treasury rejected the automakers' reorganization plans in March 2009, in part citing a "slow pace" for GM to scale back its dealer network. In light of the rejection and their intervening bankruptcies, GM and Chrysler "significantly accelerated" their dealership termination timetables, with Chrysler scrapping 789 dealerships by June 10, 2009, and GM announcing plans to wind down 1,454 dealerships by October 2010. He noted that job losses at terminated dealerships were "apparently not a substantial factor" in the Treasury Auto Team's decision to scrap the more gradual termination plan. He added that Treasury is not insulated from "its responsibility to the broader economy" and should have kept in mind that one goal of the loan agreements was to "preserve and promote jobs of American workers employed directly by the automakers and subsidiaries and in related industries." Mr. Barofsky said the Treasury should have at least considered whether the benefits of speeding up the closings outweighed costs from a potential loss of tens of thousands of jobs. "Such dramatic and accelerated dealership closings may not have been necessary and underscores the need for Treasury to tread very carefully when considering such decisions in the future," Mr. Barofsky concluded. "This sobering report should serve as a wake-up call as to the implications of politically orchestrated bailouts," Representative Darrell Issa, a California Republican and ranking member on the House Committee on Oversight and Government Reform, said in a statement, according to Bloomberg News. Bloomberg relates that Obama's Treasury Department, which has spent $80.7 billion on auto assistance under the TARP program, criticized the inspector's audit and said without government aid both companies faced failure and possible liquidation. A copy of Mr. Barofsky testimony before the Senate Committee on Finance is available at: http://researcharchives.com/t/s?66d5 Pursuant to the Emergency Economic Stabilization Act of 2008, the Office of the Special Inspector General for the Troubled Asset Relief Program must report to Congress on its oversight activities and compile certain specified data and information about the operation of TARP. A copy of the report submitted by SIGTARP to Congress on July 21 is available for free at: http://researcharchives.com/t/s?66d3 About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 207,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At March 31, 2010, GM had US$136.021 billion in total assets, total liabilities of US$105.970 billion and preferred stock of US$6.998 billion, and non-controlling interests of US$814 million, resulting in total equity of US$23.053 billion. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GEOLOGICAL TECHNOLOGIES: Case Summary & 20 Largest Unsec Creditors ------------------------------------------------------------------ Debtor: Geological Technologies, Inc. P.O. Box 70 Falling Waters, WV 25419 Bankruptcy Case No.: 10-01448 Chapter 11 Petition Date: July 7, 2010 Court: United States Bankruptcy Court Northern District of West Virginia (Martinsburg) Judge: BK Patrick M. Flatley Debtor's Counsel: A. Carter Magee, Jr., Esq. Magee Goldstein Lasky and Sayers, PC P.O. Box 404 Roanoke, VA 24003 Tel: (540) 343-9800 Fax: (540) 343-9898 E-mail: cmagee@mglspc.com Scheduled Assets: $4,760,606 Scheduled Debts: $8,738,805 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wvnb10-01448.pdf The petition was signed by Robert R. Adams, president. GREGORY S MORRIS: U.S. Trustee Unable to Form Creditors Committee ----------------------------------------------------------------- Roberta A. DeAngelis, acting U.S. Trustee for Region 3, notified the U.S. Bankruptcy Court for the Western District of Pennsylvania that she was unable to appoint an official committee of unsecured creditors in the Chapter 11 case of Gregory S. Morris. Ms. DeAngelis explained that there were insufficient indications of willingness from the unsecured creditors to serve in the committee. Hollidaysburg, Pennsylvania-based Gregory S. Morris filed for Chapter 11 bankruptcy protection on May 16, 2010 (Bankr. W.D. Pa. Case No. 10-70574). The Debtor estimated assets and debts at $10,000,001 to $50,000,000. HEAVY CONSTRUCTION: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Heavy Construction Lumber, Inc. 380 Morgan Avenue Brooklyn, NY 11211 Bankruptcy Case No.: 10-46608 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Carla E. Craig Debtor's Counsel: Dawn Kirby Arnold, Esq. E-mail: darnold@rattetlaw.com Erica R. Feynman, Esq. E-mail: efeynman@rattetlaw.com Rattet, Pasternak & Gordon Oliver LLP 550 Mamaroneck Avenue Harrison, NY 10528 Tel: (914) 381-7400 Fax: (914) 381-7406 Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Roseann Giorgi, president. INFOLOGIX INC: Nasdaq Grants Extension to Regain Compliance ----------------------------------------------------------- InfoLogix Inc. received a letter from Nasdaq on July 8, 2010, stating that a Nasdaq Hearings Panel granted the Company's request for an extension of time, as permitted under Nasdaq's Listing Rules, to regain compliance with the $2.5 million minimum stockholders' equity requirement for continued listing on the Nasdaq Stock Market. Nasdaq notified the Company on April 20, 2010 that it had not regained compliance with the minimum stockholders' equity requirement and that the Company's common stock was subject to delisting unless the Company requested a hearing. The Company timely requested a hearing and appeared before the Panel on June 10, 2010. The extension granted by the Panel requires, among other things, the occurrence of certain events by August 15, 2010 and the Company's ability to regain compliance with all the requirements for continued listing on Nasdaq by October 18, 2010. Under Nasdaq's Listing Rules, this date represents the maximum length of time that a Panel may grant to regain compliance. While the Company is diligently taking steps to comply with the Panel decision, there can be no assurances that the Company will be able to do so. About InfoLogix Inc. Based in Hatboro, Pennsylvania, InfoLogix, Inc. (NASDAQ: IFLG) -- http://www.infologix.com/-- provides end-to-end solutions for electronic medical record and supply chain implementation and mobilization, with experience in over 2,200 hospitals and businesses nationwide. InfoLogix assists its healthcare and commercial customers by implementing and optimizing EMR and SCM systems, offers mobility to caregivers and workforces by making data accessible directly at the point of care or point of activity, and manages operations with services to improve clinical and financial performance and supply chain with services to drive greater efficiency. The Company's balance sheet at March 31, 2010, showed $34.0 million in total assets and $39.0 million in total liabilities, for a total stockholders' deficit of $4.9 million. McGladrey & Pullen, LLP, in Blue Bell, Pa., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations, has negative working capital and an accumulated deficit as of December 31, 2009. INNKEEPERS USA: Asks for September 1 Extension for Schedules ------------------------------------------------------------ Innkeepers USA Trust and its 91 Debtor affiliates ask the Court to extend until September 1, 2010, the deadline by which they must file schedules of assets and liabilities, schedules of executory contracts and unexpired leases, and statements of financial affairs. Pursuant to Section 521 of the Bankruptcy Code and Rule 1007(c) of the Federal Rules of Bankruptcy Procedure, the Debtors ordinarily would be required to file the Schedules and Statements within 14 days after the Petition Date. The Debtors estimate they have more than 5,000 potential creditors and other parties-in-interest. Further, the conduct and operation of the Debtors' business operations require them to maintain voluminous records and complex accounting systems, relates James H.M. Sprayregen, P.C., Esq., at Kirkland & Ellis LLP, in New York. Due to the nature of the Debtors' business, the pressure incident to the commencement of the Chapter 11 cases, and the fact that certain prepetition invoices have not yet been received or entered into the financial accounting system, the Debtors have begun, but have not yet completed, compiling the information required to complete the Schedules and Statements, Mr. Sprayregen explains. Because of the complexity and diversity of their operations and the numerous critical operational matters that their accounting and legal personnel must address in the early days of the cases, the Debtors anticipate they will be unable to complete the Schedules and Statements in the time required under Rule 1007(c). Adding to the difficulties in compiling the Schedules and Statements is the nature of the Debtors' business, which consists of operating 72 individual hotel properties scattered across 19 states and the District of Columbia, among the Debtor entities, Mr. Sprayregen asserts. He points out that while the Debtors' consolidated ownership and management of the 72 properties allows them to benefit from economies of scale by eliminating many of the duplicative processes and costs that would otherwise apply to properties owned and managed on an individual basis, it also comes with its own burdens, especially with respect to compiling the Schedules and Statements. The substantial size, scope and complexity of the cases and the volume of material that must be compiled and reviewed by the Debtors' personnel to complete the Schedules and Statements for each entity during the initial days of the cases provides ample cause for justifying the requested extension, Mr. Sprayregen further contends. About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and a number of affilaites filed for Chapter 11 on July 19, 2010 (Bankr. S.D.N.Y. Case No. 10-13800). Attorneys at Kirkland & Ellis LLP, serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. The petition listed assets and debts of more than $1 billion. In 2009, Innkeepers' consolidated revenues were approximately $292 million and adjusted EBITDA were approximately $85 million. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred approximately $1.29 billion of secured debt. Bankruptcy Creditors' Service, Inc., publishes Innkeepers USA Bankruptcy News. The newsletter tracks the chapter 11 restructuring proceedings commenced by Innkeepers USA Trust and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). INNKEEPERS USA: Cash Shortage, Debt Burden Prompted Filing ---------------------------------------------------------- Dennis Craven, chief financial officer, treasurer and vice president of Innkeepers USA Trust, relates that although the Companies' business model is sound, their operating losses from decreased room revenue, significant liquidity constraints, and considerable funded debt burden, resulting from unprecedented adverse changes in the economy and hospitality industry generally, have impaired their ability to meet their current debt obligations and certain current obligations under their Franchise Agreements. Moreover, over the last two years, the global travel and tourism industry has faced one of the most difficult operating environments in a number of decades due to the unparalleled turmoil that beset the global and United States economies, Mr. Craven notes. A weak economy and plummeting demand for hotel accommodations, which can be traced to reduced consumer spending, higher fuel prices, increased unemployment, and a severe decline in business travel, have caused one of the deepest and longest recessions in the history of the hospitality and lodging industries, he avers. During this time, he adds, supply also increased within the hospitality industry, exacerbating the negative impact of decreased demand within the industry. Mr. Craven further relates that in addition to reducing overall demand and significantly impairing the Companies' overall revenue, the rapid softening of the economy and tightening of the financial markets have limited their financial flexibility. As a result, the Companies have no real ability to recapitalize or reduce their debt burdens. Strategies that the Companies might have previously employed to extend maturities and maintain liquidity are no longer available, Mr. Craven points out. These adverse changes have severely limited the Companies' ability to satisfy their obligations as they come due, he says. In addition to placing a burden on the Companies' ability to meet debt service obligations and fund day-to-day business operations, the lack of available cash made it impossible for them to sufficiently fund capital expenditures on hotel properties necessary to comply with their obligations under the Franchise Agreements, according to Mr. Craven. Certain of the Franchise Agreements include provisions that require the Companies to comply with property improvement programs under which they are obligated to perform certain renovations and other capital improvements to their hotel properties, such as replacing furniture, fixtures, and equipment. While necessary, the required PIP improvements are costly, subject to delays, and disrupt operations and displace revenue at the hotels while rooms under renovation are out of service, he states. As of July 19, 2010, the Companies have approximately $15.8 million earmarked to perform certain PIP obligations and intend to commence those obligations as they continue to operate their business under the protection of the bankruptcy process. But, this amount is significantly less than the amount required to satisfy all their PIP obligations under the Franchise Agreements, Mr. Craven says. The Companies begun restructuring negotiations in November 2008 and, as a first step, hired Marc Beilinson, an independent director of Innkeepers since 2007, as chief restructuring officer to explore alternative restructuring opportunities. In early 2010, the Companies retained Kirkland & Ellis LLP and Moelis & Co. LLC to initiate discussions with the Companies' constituents regarding a possible comprehensive restructuring and financial alternatives for improving their balance sheet. The Debtor's list of five largest secured creditors has LB-UBS Commercial Mortgage Trust 2007-C6 with a $412,107,271 claim and Lehman ALI Inc. with claims of $238,451,891 and $128,575,861. About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and a number of affilaites filed for Chapter 11 on July 19, 2010 (Bankr. S.D.N.Y. Case No. 10-13800). Attorneys at Kirkland & Ellis LLP, serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. The petition listed assets and debts of more than $1 billion. In 2009, Innkeepers' consolidated revenues were approximately $292 million and adjusted EBITDA were approximately $85 million. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred approximately $1.29 billion of secured debt. Bankruptcy Creditors' Service, Inc., publishes Innkeepers USA Bankruptcy News. The newsletter tracks the chapter 11 restructuring proceedings commenced by Innkeepers USA Trust and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). INNKEEPERS USA: Proposes to Assume Plan Support Agreement --------------------------------------------------------- Innkeepers USA Trust and its 91 Debtor affiliates seek authority from Judge Shelley Chapman of the United States Bankruptcy Court for the Southern District of New York to assume the plan support agreement they entered into with Lehman ALI, Inc. The Plan Support Agreement, according to the Debtors, represents a significant achievement for them because it provides for their comprehensive restructuring, including a significant deleveraging of their balance sheet and permits them to maintain valuable hotel franchise agreements and their existing portfolio of hotel properties. The Plan Term Sheet contemplates, among other things, these terms: (a) entry into two proposed postpetition debtor-in-possession financing facilities consisting of the (a) $50.75 million DIP Facility provided by Five Mile Capital Partners LLC, which proceeds will be used primarily to perform property improvement programs on certain hotels securing the Debtors' obligations under the Fixed Rate Debt; and (b) approximately $17.5 million DIP Facility provided by an affiliate of Lehman, which will be used to perform PIPs and certain other investments on certain hotels securing the Debtors' obligations under the Floating Rate Mortgage Loan Agreement; (b) Lehman receiving, in full and final satisfaction of its approximately $238 million secured claim with respect to the Floating Rate Mortgage Loan Agreement, 100% of the new shares of common stock issued by the Debtors pursuant to the Plan, subject to dilution by a management equity incentive program; (c) the remaining secured lenders under the Debtors' prepetition credit facilities receiving new secured mortgage notes with a value that is no less than the value of the collateral securing their respective prepetition debt, unless the lenders of those facilities otherwise agree (subject to the lenders' right to make an election for application of Section 1111(b)(2) of the Bankruptcy Code); (d) holders of general unsecured claims (other than holders of deficiency claims under the prepetition credit facilities, which will receive no recovery unless Lehman and the Debtors agree otherwise) in a class that votes to accept the Plan and affirmatively release Lehman and its affiliates from all claims and causes of action relating to the Debtors and/or the Floating Rate Debt, receiving a pro rata distribution of cash in the amount of $500,000; (e) holders of interests in the Debtors, including common and preferred stock, receiving no distributions on account of those interests, with those interests being cancelled; (f) customary, consensual releases of liability by the Debtors in favor of Lehman, it s affiliates, and, among others, their respective principals, employees, agents, officers, directors, and professionals; (g) entry into an Agreement for Adequate Assurance of Future Completion of Certain PIPs and Assumption of Agreements with Marriott International, Inc., the franchisor with whom 44 of the Debtors' 72 hotels have entered into franchise agreements, which memorializes the agreements reached with Marriott relating to certain of the Debtors' franchise agreement obligations; and (h) the Debtors securing additional funding of no less than $75 million upon exit from Chapter 11. In addition, to convince Lehman to agree to make the extraordinary concessions under the Plan, Lehman required the Debtors to agree to certain provisions in the Plan Support Agreement and the Plan Term Sheet relating to the termination of the Plan Support Agreement that take effect if the Debtors are unable to confirm a plan consistent with the Plan Term Sheet with the consent of the Debtors' constituents after recognizing those concessions or over the objection of the constituents in accordance with the bankruptcy process. The Plan Support Agreement also provides that it will automatically terminate on the first calendar day immediately following one business day after the date of the occurrence of any Termination Event, unless there is a written waiver of any Termination Event within one business day from the date of the Termination Event. The Plan Support Agreement also requires the Debtors to meet certain Plan Milestones and other milestones requiring (i) the Debtors to pursue a restructuring and plan process diligently and consistent with an agreed upon schedule and (ii) Lehman to consummate a transaction with respect to the sale of 50% of the New Equity. James H.M. Sprayregen, P.C., Esq., at Kirkland & Ellis LLP, in New York -- james.sprayregen@kirkland.com -- relates that Lehman's willingness to enter into the Plan Support Agreement is conditioned on, among other provisions, its ability to sell a portion of its distribution of New Equity to a third party on or after the effective date of the Debtors' confirmed Chapter 11 plan of reorganization, allowing Lehman, which is also in bankruptcy, to liquidate a portion of its plan distributions of New Equity to mitigate the risk of its entire recovery coming in the form of equity. He adds that Lehman's willingness to support the proposed restructuring and to convert its debt to equity, which is necessary to deleverage the Debtors' balance sheet and provide comfort to the Debtors' franchisors that the reorganized Debtors will have a sustainable capital structure, is conditioned on the Debtors' retention of their franchise agreements, which is facilitated by Marriott's forbearance with respect to critical hotel properties. Marriott's willingness to enter into the Marriott Adequate Assurance Agreement, pursuant to which it has agreed to forbear from seeking to exercise its potential rights to terminate its franchise agreements with the Debtors is conditioned on the Debtors' procurement of the DIP Financing, the proceeds of which will be used to fund deferred PIP renovations at critical Marriott-branded hotels, Mr. Sprayregen further relates. In turn, the DIP Financing is conditioned on Marriott's willingness to support the proposed transaction and to forbear from de-flagging any of the Debtors' properties, as well as Lehman's commitment to support an expeditious restructuring process. A full-text copy of the Plan Support Agreement is available for free at http://bankrupt.com/misc/iku_plansupport.pdf A full-text copy of the Plan Term Sheet is available for free at http://bankrupt.com/misc/ikutermsheet.pdf Plan Support Agreement The prepetition restructuring negotiations resulted to a plan support agreement signed on July 17, 2010, by Innkeepers USA Trust and Lehman ALI. The Plan Support Agreement provides for these salient terms: (a) Lehman will receive, in full and final satisfaction of its secured mortgage claims in respect of the Floating Rate Debt, 100% of the issued and outstanding new shares of common stock issued by Innkeepers, subject to dilution by the Management Equity Incentive Program and New Equity distributions, if any, for other Plan uses, as agreed by the parties hereto. (b) The Mezzanine Debt will be deemed cancelled, and the Mezzanine Lender will not retain any property or interest on account of that debt under the Plan. The Mezzanine Lender will be deemed to vote against the Plan. No action by the Mezzanine Lender will be required under the Plan Term Sheet or any definitive documentation with respect to the terms set herein. (c) Holders of the claims against the Company for its obligations under the Fixed Rate Debt Mortgage Loan Agreement will receive, in full and final satisfaction of their claims in respect of that debt, new mortgage notes secured by mortgages on the Fixed Rate Collateral either (a) in an aggregate face amount not to exceed $550 million; or (b) if the holders make an election for application of Section 1111(b)(2) of the Bankruptcy Code, in the amount of the aggregate amount of those holders' Fixed Rate Debt, with a present value of the new mortgage notes not to exceed $550 million. The terms of the new Fixed Rate Debt notes and any security interests to be granted in connection therewith are subject to approval, in form and substance, by Lehman and the Company. (d) Holders of claims against the Company for its obligations under the secured mortgage loan agreements, excluding the Floating Rate Debt or the Fixed Rate Debt, will receive, in full and final satisfaction of their claims in respect of those debt, new mortgage notes secured by liens on the respective holder's Other Secured Debt Collateral either (a) in an aggregate face amount not to exceed $150 million; or (b) if a holder of Other Secured Debt claims makes an election for application of Section 1111(b)(2) of the Bankruptcy Code, in the amount of the aggregate amount of that holder's claims, with present value of the Other Secured Debt New Mortgage Note equaling the value of the collateral securing that holder's claims, provided, however, that the aggregate present value of all Other Secured Debt New Mortgage Notes issued pursuant to (a) and (b) will not exceed $150 million. The terms of the Other Secured Debt New Mortgage Notes are subject to approval, in form and substance, by Lehman and the Company. Debt allocation among the Other Secured Debt Collateral and identification of any Other Secured Debt Collateral that should be removed from the Company's portfolio will be agreed among the parties hereto. (e) "General Unsecured Claim" refer to any unsecured claim against any of the Debtors that is not: (a) an Administrative Claim; (b) a Priority Claim, tax or otherwise; (c) an intercompany claim; or (d) a Section 510(b) claim, if any. If a class of General Unsecured Claims votes to accept the Plan and affirmatively release Lehman and its affiliates from all claims and causes of action relating to the Company and the Floating Rate Debt, then holders of those General Unsecured Claims will receive a pro rata distribution of cash in the amount of $500,000. (f) Intercompany claims will not be entitled to receive any distribution under the Plan on account of those claims and will be deemed to have voted against the Plan. Those claims will be reinstated, extinguished or cancelled as appropriate in the judgment of Lehman and the Company to effectuate the Transaction contemplated by the Plan. (g) Claims subject to subordination pursuant to Section 510(b) of the Bankruptcy Code will not receive any recovery under the Plan and will be deemed to have voted against the Plan. (h) Unsecured deficiency claims of holders of Floating Rate Debt, Fixed Rate Debt and Other Secured Debt will not receive any recovery under the Plan or otherwise without the consent of Lehman and the Company, and, if not receiving any recovery, will be deemed to have voted against the Plan. (i) Allowed administrative claims will be paid in cash in the ordinary course unless the holders of those Administrative Claims agree to different treatment. (j) Priority Claims Allowed priority claims will be paid in cash on the Plan Effective Date; provided, that on the Effective Date, Lehman and the Company may determine to defer priority tax claims in accordance with the Bankruptcy Code. (k) On the Plan Effective Date, all prepetition common and preferred shares of Innkeepers will be cancelled, and holders of those interests will not retain any property on account of those interests under the Plan. To the extent Lehman and the Company determine that the Company's existing corporate structure would be the most tax efficient for Lehman and the Company on the Effective Date, the prepetition equity interests of each of Innkeepers' subsidiaries will be deemed reissued in accordance with the Company's prepetition corporate structure on terms mutually acceptable to the parties hereto. If Lehman and the Company determine that a different structure would be more beneficial to Lehman and the Company on the Effective Date, the Plan will provide for that structure, on terms mutually acceptable to the relevant parties. A full-text copy of the Plan Support Agreement is available for free at http://bankrupt.com/misc/iku_plansupport.pdf A full-text copy of the Plan Term Sheet is available for free at http://bankrupt.com/misc/ikutermsheet.pdf About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and a number of affilaites filed for Chapter 11 on July 19, 2010 (Bankr. S.D.N.Y. Case No. 10-13800). Attorneys at Kirkland & Ellis LLP, serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. The petition listed assets and debts of more than $1 billion. In 2009, Innkeepers' consolidated revenues were approximately $292 million and adjusted EBITDA were approximately $85 million. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred approximately $1.29 billion of secured debt. Bankruptcy Creditors' Service, Inc., publishes Innkeepers USA Bankruptcy News. The newsletter tracks the chapter 11 restructuring proceedings commenced by Innkeepers USA Trust and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). JAMESTOWN STAMP: Case Summary & 18 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Jamestown Stamp Company 341 East Third Street Jamestown, NY 14701 Bankruptcy Case No.: 10-13118 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court Western District of New York (Buffalo) Judge: Carl L. Bucki Debtor's Counsel: Robert A. Liebers, Esq. 15 E. 15th St. P.O. Box 3090 Jamestown, NY 14702-3090 Tel: (716) 488-3090 E-mail: liebers@burgettandrobbins.com Scheduled Assets: $561,137 Scheduled Debts: $1,049,293 A list of the Company's 18 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nywb10-13118.pdf The petition was signed by Sandra Kavanaugh, president. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Sandra Kavanaugh 10-12736 06/22/10 JAPAN AIRLINES: Air Cargo Antitrust Litigation Settled ------------------------------------------------------ Kaplan Fox & Kilsheimer LLP announced a $12 million settlement, subject to court approval, with Japan Airlines in In re: Air Cargo Shipping Services Antitrust Litigation, 06-MD-1775 (JG) (VVP), a multi-district litigation pending in the Eastern District of New York. Kaplan Fox serves as one of four co-lead counsels representing a class of direct purchasers from defendants of air cargo shipping services for shipments to, from and within the United States seeking compensation for alleged overcharges sustained as a result of a price-fixing conspiracy alleged against over two dozen airlines. Japan Airlines, which is based in Tokyo, Japan, filed for bankruptcy in January 2010, and remains in bankruptcy. In addition to the $12 million settlement payment, Japan Airlines has also agreed to provide substantial cooperation in the prosecution of the action against the remaining defendants. On September 25, 2009, Judge John Gleeson granted final approval to an $85 million settlement with Deutsche Lufthansa AG, Lufthansa Cargo AG, and Swiss International Air Lines Ltd. On July 14, 2010, it was announced that a settlement had been reached with defendants Societe Air France, Koninklijke Luchtvaart Maatschappij N.V. and Martinair Holland N.V. for $87 million. Thus, the current settlement will increase the total amount recovered for the class to date to $184 million. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-based company mainly engaged in the provision of air transport services. The Company is active in five business segments through its 203 subsidiaries and 83 associated companies. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. Japan Airlines Corporation, Japan Airlines International Co., Ltd. and JAL Capital Co., Ltd., on January 19, 2010, filed the petitions to commenced corporate reorganization proceedings with the Tokyo District Court. The Court appointed the Enterprise Turnaround Initiative Corporation of Japan and Eiji Katayama, Esq., as reorganization trustees. Japan Airlines Corp. filed for reorganization January 19 in the Tokyo District Court and filed a Chapter 15 petition in New York (Bankr. S.D.N.Y. Case No. 10-10198). The Company said debt is $28 billion. Bankruptcy Creditors' Service, Inc., publishes Japan Airlines Bankruptcy News. The newsletter tracks the Chapter 15 proceedings and the bankruptcy proceedings in Tokyo undertaken by Japan Airlines Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) JOHN KILPATRICK: Case Summary & 14 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: John W. Kilpatrick, Sr. Susan F. Kilpatrick 111 S. Country Club Drive Kenansville, NC 28349 Bankruptcy Case No.: 10-05691 Chapter 11 Petition Date: July 18, 2010 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: Jason L. Hendren, Esq. Hendren & Malone, PLLC 4600 Marriott Drive, Suite 150 Raleigh, NC 27612 Tel: (919) 573-1422 Fax: (919) 420-0475 E-mail: bwood@hendrenmalone.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' 14 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nceb10-05691.pdf The petition was signed by the Joint Debtors. LAKEVIEW AT CAROLINA: Asks for Court OK to Use Cash Collateral -------------------------------------------------------------- Lakeview At Carolina Beach, LLC, has sought authorization from the U.S. Bankruptcy Court for the Northern District of Texas to use the cash collateral securing its obligation to its prepetition lenders. As of the Petition Date, the Debtor was alleged indebted to First Bank, in the approximate amount of $6,550,000. The Debtor was indebted to John S. Clark Construction LLC in the approximately amount of $1,000,000. The Debtor's only source of operating funds is generated by the operation of the Debtor's property and the lease of its units. First asserts a first lien priority on the rents generated by the leases which constitute cash collateral. Eric Liepins, Esq., at Eric Liepins, P.C., the attorney for the Debtor, explains that the Debtor needs the money to fund the Debtor's Chapter 11 case, pay suppliers and other parties. In exchange for using the cash collateral, the Debtor proposes to provide First a replacement lien on post-petition rents and income to protect first to the extent of any diminution in value of its collateral. First has objected to the Debtor's request for authorization to use cash collateral, saying that, among other things, the rents and leases did not become property of the estate on the Petition Date, and that there is no cash collateral for the Debtor to use. First is represented by Cox Smith Matthews Incorporated. Dallas, Texas-based Lakeview at Carolina Beach, LLC, filed for Chapter 11 bankruptcy protection on July 1, 2010 (Bankr. N.D. Tex. Case No. 10-34542). Eric A. Liepins, Esq., who has an office in Dallas, Texas, assists the Company in its restructuring effort. The Company listed $10,902,000 in assets and $9,486,585 in liabilities. LESLIE CONTROLS: DIP Financing, Cash Collateral Use Get Interim OK ------------------------------------------------------------------ Leslie Controls, Inc., sought and obtained interim authorization from the Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware to obtain postpetition secured financing from CIRCOR International, Inc. The DIP lenders have committed to provide up to $10,000,000, including an initial draw of up to $2,000,000, upon or after interim approval of the Debtor's request. A copy of the DIP financing agreement is available for free at: http://bankrupt.com/misc/LESLIE_CONTROLS_dipfinancingpact.pdf Norman L. Pernick, Esq., and Marion M. Quirk, Esq., of Cole, Schotz, Meisel, Forman & Leonard, P.A., the attorneys for the Debtor, explained that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. The Debtor will grant CIRCOR senior secured liens and superpriority claims as postpetition lender. The Debtor will grant CIRCOR a superpriority administrative claim, subordinate only to the care-out expenses, and a senior first priority lien on, and security interest in, substantially all of the Debtor's assets. The DIP facility will mature on November 15, 2010. The DIP facility will incur interest at LIBOR+350 bps, in monthly arrears. The DIP lien is subject to a carve-out, which will include: (a) statutory fees payable to the U.S. Trustee; (b) fees payable to the Clerk of the Bankruptcy Court; (c) professional fees and expenses of any Chapter 7 trustee appointed in an amount of up to $50,000; and (d) after the occurrence of a carve-out event, an amount equal to (x) the reasonable and budgeted professional fees and expense actually incurred in the bankruptcy case by any legal representative appointed by the Court for the representation of persons that might assert future demands against the Debtor and other professionals prior to the occurrence of a carve-out event but not paid on or before the date of the carve-out event and (Y) $350,000 for payment of permitted professional fees incurred after the occurrence of a carve-out- event, in each case to the extent subsequently allowed by the Court. CICOR has made these conditions, among other things: a. The Debtor must file the Plan and the Disclosure Statement, both in form and substance reasonably satisfactory to and previously furnished to CIRCOR. b. Other than the bankruptcy case, no decree or judgment, and no pending or threatened litigation will purport to affect or enjoin execution of the postpetition credit agreement or the transactions contemplated thereby; c. No event of default will have occurred and be continuing; and d. CIRCOR will have received a cash budget. Mr. Pernick and Ms. Quirk said that the Debtor will also use the Cash Collateral to provide additional liquidity. In exchange for using the prepetition collateral, the Debtor will grant CIRCOR replacement liens and administrative claim. The Court has set a final hearing for August 9, 2010, at 1:00 p.m. on the Debtors' request to obtain DIP financing and use cash collateral. Based in Tampa, Florida, Leslie Controls is a manufacturer of process control valves, severe service control valves, on-off valves, regulators, steam water heaters, actuators and controls. Leslie is a unit of CIRCOR International, Inc. The Company filed for Chapter 11 bankruptcy protection on July 12, 2010 (Bankr. D. Del. Case No. 10-12199). Marion M. Quirk, Esq., and Norman L. Pernick, Esq., at Cole, Schotz, Meisel, Forman & Leonard, assist the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. LESLIE CONTROLS: Proposes Plan to Channel Asbestos Claims to Trust ------------------------------------------------------------------ Leslie Controls, Inc. has filed with the U.S. Bankruptcy Court for the District of Delaware a reorganization plan and disclosure statement. The Debtor is soliciting votes for the acceptance of its Plan from holders of Asbestos PI Claims. The Plan contemplates the establishment of a trust (the Asbestos PI Trust) and an injunction (the Asbestos PI Channeling Injunction) that will channel current asbestos-related claims and future asbestos-related demands to the Asbestos PI Trust. The injunction will cover asbestos-related personal injury and wrongful death claims and demands based in whole or in part on the actual or alleged conduct or products of the Debtor. The injunction will also channel current asbestos-related claims and future asbestos-related demands based in whole or in part upon asbestos-related personal injury and wrongful death claims and demands against certain parties arising from the conduct or products of the Debtor, including past and present affiliates of the Debtor, past and present officers and directors of the Debtor, predecessors in interest to the Debtor, and any entity that owned a financial interest in the Debtor or its affiliates of predecessors. The Asbestos PI Trust will be funded with (i) cash contributions from the Debtor and CIRCOR, on behalf of themselves and certain other parties; (ii) the Leslie Promissory Note executed by the Debtor and secured by a pledge by CIRCOR of 100% of the outstanding voting equity interests in reorganized Leslie; and (iii) an assignment of the Asbestos Insurance Rights and Asbestos Insurance Actions. The assets of the Asbestos PI Trust will be used to pay current and future asbestos-related personal injury and wrongful death claimants. The Asbestos PI Trust's assets must be managed by the Asbestos PI Trustees to ensure that funds are available to pay current claimants as well as expected future claimants. The Debtor estimates that $31 million-$34 million would be available for distribution in a liquidation, compared to the $75 million estimated by the Debtor at $45.6 million that will be available under the Plan. Under the Plan, the Debtor will assign to the Asbestos PI Trust the Asbestos Insurance Rights and the Asbestos Insurance Actions, including $2,625,000 of the proceeds of the Insurance Settlement Agreement between Leslie and Continental Casualty company dated April 19, 2010, plus the proceeds, if any, of any other Insurance Settlement Agreement that were received by Leslie on or after January 1, 2010. Copies of the Plan and disclosure statement are available for free at: http://bankrupt.com/misc/LESLIE_CONTROLS_ds.pdf http://bankrupt.com/misc/LESLIE_CONTROLS_plan.pdf Treatment of Claims Under the Plan, the administrative claims will be paid in full. With respect to classified claims: Classification Treatment -------------- ---------- Class 1 - Priority Claims Unimpaired; not entitled to vote; 100% recovery Class 2 - Secured Claims Unimpaired; not entitled to vote; 100% recovery Class 3 - General Unsecured Claims Unimpaired; not entitled to vote; 100% recovery Class 4 - Asbestos PI Claims and Asbestos PI Trust Expenses Impaired; entitled to vote Class 5 - Intercompany Claims Unimpaired; not entitled to Vote Class 6 - Equity Interests in Leslie Unimpaired; not entitled to vote; 100% recovery About Leslie Controls Based in Tampa, Florida, Leslie Controls is a manufacturer of process control valves, severe service control valves, on-off valves, regulators, steam water heaters, actuators and controls. Leslie is a unit of CIRCOR International, Inc. The Company filed for Chapter 11 bankruptcy protection on July 12, 2010 (Bankr. D. Del. Case No. 10-12199). Marion M. Quirk, Esq., and Norman L. Pernick, Esq., at Cole, Schotz, Meisel, Forman & Leonard, assist the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. LESLIE CONTROLS: Gets Court OK to Hire Epiq as Claims Agent ----------------------------------------------------------- Leslie Controls, Inc., sought and obtained authorization from the Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware to employ Epiq Bankruptcy Solutions, LLC, as claims, noticing and balloting agent. Epiq will, among other things: a. maintain copies of proofs of claim and proofs of interest filed; b. create and maintain electronic databases for creditor/party in interest information provided by the Debtor and creditors/parties-in-interest; c. provide access to the public for examination of copies of the proofs of claim or interest without charge during regular business hours; and d. maintain official claims registers. Epiq will be compensated based on its services agreement with the Debtor. A copy of the agreement is available for free at: http://ResearchArchives.com/t/s?66c5 Daniel C. McElhinney, Esq., executive director of Epiq, assured the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Based in Tampa, Florida, Leslie Controls is a manufacturer of process control valves, severe service control valves, on-off valves, regulators, steam water heaters, actuators and controls. Leslie is a unit of CIRCOR International, Inc. The Company filed for Chapter 11 bankruptcy protection on July 12, 2010 (Bankr. D. Del. Case No. 10-12199). Marion M. Quirk, Esq., and Norman L. Pernick, Esq., at Cole, Schotz, Meisel, Forman & Leonard, assist the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. LESLIE CONTROLS: Section 341(a) Meeting Scheduled for Aug. 19 ------------------------------------------------------------- The U.S. Trustee for Region 3 will convene a meeting of Leslie Controls, Inc.'s creditors on August 19, 2010, at 3:30 p.m. The meeting will be held at J. Caleb Boggs Federal Building, 2nd Floor, Room 2112, Wilmington, Delaware 19801. 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. Based in Tampa, Florida, Leslie Controls is a manufacturer of process control valves, severe service control valves, on-off valves, regulators, steam water heaters, actuators and controls. Leslie is a unit of CIRCOR International, Inc. The Company filed for Chapter 11 bankruptcy protection on July 12, 2010 (Bankr. D. Del. Case No. 10-12199). Marion M. Quirk, Esq., and Norman L. Pernick, Esq., at Cole, Schotz, Meisel, Forman & Leonard, assist the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. LEVI STRAUSS: Widens Net Loss to $14-Mil. in May 30 Quarter ----------------------------------------------------------- Levi Strauss & Co. reported its financial results for the second quarter ended May 30, 2010, and filed its second-quarter 2010 results on Form 10-Q with the Securities and Exchange Commission. The Company reported a net loss of $14.38 million on $976.5 million of net sales for the three months ended May 30, 2010, compared with a net loss of $4.13 million on $904.5 million net revenues for the three month ended May 31, 2009. The Company's balance sheet at May 30, 2010, showed $2.837 billion in total assets and $3.136 billion total liabilities, for a stockholder's deficit of $303 million. Second-quarter net revenues increased 8% compared to last year due to the continued worldwide growth of the Levi's brand. Net revenues benefited from business acquisitions made during 2009 and ongoing retail expansion, partially offset by revenue declines in the wholesale channel in certain markets. Excluding the effect of currency, net revenues improved 5%. Operating income improved from $56 million to $69 million through the positive effect of currency translation during the quarter. The Company said it maintained a strong liquidity position during the second quarter. At May 30, 2010, cash and cash equivalents were $353 million and $180 million was available under its revolving credit facility. "We had another good quarter, which gives us solid revenue growth and operating income for the first six months of the year," said John Anderson, president and chief executive officer. "We are seeing the benefit of our investments in the business over recent years. The Levi's brand is performing well, and consumers are responding to our more innovative products." "We delivered solid operating results in the second quarter of 2010," said Blake Jorgensen, chief financial officer. "Our cash flow is strong and we continued to build our liquidity position during the quarter. We also successfully completed the refinancing of our 2013 and 2015 debt maturities, as well as a portion of our 2016 Yen Eurobonds, extending our debt maturities and enabling us to focus on driving our growth strategies. As we continue to invest in the business, we remain focused on controlling costs and managing inventories." A full-text copy of the Company's earnings release is available for free at http://ResearchArchives.com/t/s?6678 A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?6679 About Levi Strauss & Co. Headquartered in San Francisco, California, Levi Strauss & Co. -- http://www.levistrauss.com/-- is one of the world's leading branded apparel companies. The Company designs and markets jeans, casual and dress pants, tops, jackets and related accessories, for men, women and children under the Levi's(R), Dockers(R) and Signature by Levi Strauss & Co.(TM). The Company markets its products in three geographic regions: Americas, Europe, and Asia Pacific. As of February 28, 2010, the Company's balance sheet showed total assets of $2.9 billion and total liabilities of $3.1 billion, resulting in a stockholders' deficit of $265,455,000. * * * The Troubled Company Reporter reported on April 26, 2010, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on San Francisco, Calif.-based Levi Strauss & Co. The outlook is stable. The TCR also reported that Moody's Investors Service assigned a B2 rating to Levi Strauss & Co proposed senior unsecured notes. All other ratings including its B1 Corporate Family Rating were affirmed. The rating outlook remains stable. The TCR reported on April 7, 2010, that Fitch Ratings affirmed Levi Strauss & Co.'s ratings: Issuer Default Rating at 'BB-'; $750 million Bank Credit Facility at 'BB+'; Senior unsecured notes at 'BB-'; Senior unsecured term loan 'BB-'. LORENZ RICHLING: Case Summary & 18 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: Lorenz J. Richling aka Larry J. Richling Mary L. Richling 7755 Main Street, Apt. 4 Ralston, NE 68127 Tel: (402) 496-1130 Bankruptcy Case No.: 10-82039 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court District of Nebraska (Omaha Office) Debtor's Counsel: Robert F. Craig, Esq. 1321 Jones Street Omaha, NE 68102 Tel: (402) 408-6004 Fax: (402) 408-6001 E-mail: robert@craiglaw.org Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 18 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/neb10-82039.pdf The petition was signed by the Joint Debtors. LUIS VAZQUEZ: Case Summary & 9 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Luis Vazquez 105 N Pearl St. Las Vegas, NV 89110 Bankruptcy Case No.: 10-23266 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: Ryan Alexander, Esq. Law Offices of Ryan Alexander 520 S. 4th St., suite 340 Las Vegas, NV 89101 Tel: (702) 868-3311 Fax: (702) 868-3312 E-mail: ryan@ryanalexander.us Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 9 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-23266.pdf The petition was signed by Mr. Vazquez. LYONDELL CHEMICAL: Settles $12-Mil. Fight over Utility Fees ----------------------------------------------------------- A subsidiary of Lyondell Chemical Co. has agreed to allow Morris Cogeneration LLC a cure amount of $12.4 million in the company's bankruptcy, ending a battle with the power station operator over a claim for utility service, Bankruptcy Law360 reports. About Lyondell Chemical LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies. It is the global leader in polyolefins technology, production and marketing; a pioneer in propylene oxide and derivatives; and a significant producer of fuels and refined products, including biofuels. Through research and development, LyondellBasell develops innovative materials and technologies that deliver exceptional customer value and products that improve quality of life for people around the world. Headquartered in The Netherlands, LyondellBasell -- http://www.lyondellbasell.com/-- is privately owned by Access Industries. Basell AF and Lyondell Chemical Company merged operations in 2007 to form LyondellBasell Industries, the world's third largest independent chemical company. LyondellBasell became saddled with debt as part of the US$12.7 billion merger. On January 6, 2009, LyondellBasell Industries' U.S. operations and one of its European holding companies -- Basell Germany Holdings GmbH -- filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code to facilitate a restructuring of the company's debts. The case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell entities, including Equistar Chemicals, LP, Lyondell Chemical Company, Millennium Chemicals Inc., and Wyatt Industries, Inc. filed for Chapter 11. In May 2009, one of the cases was dismissed -- Case No. 09-10068 -- because it is duplicative of Case No. 09- 10040 relating to Debtor Glidden Latin America Holdings. The Hon. Robert E. Gerber presides over the case. Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, serves as the Debtors' bankruptcy counsel. Evercore Partners serves as financial advisors, and Alix Partners and its subsidiary AP Services LLC, serves as restructuring advisors. AlixPartners' Kevin M. McShea acts as the Debtors' Chief Restructuring Officer. Clifford Chance LLP serves as restructuring advisors to the European entities. Lyondell Chemical estimated that consolidated assets total US$27.12 billion and debts total US$19.34 billion as of the bankruptcy filing date. Lyondell has obtained approximately US$8 billion in DIP financing to fund continuing operations. The DIP financing includes two credit agreements: a US$6.5 billion term loan, which comprises a US$3.25 billion in new loans and a US$3.25 billion roll-up of existing loans; and a US$1.57 billion asset-backed lending facility. LyondellBasell Industries AF S.C.A. and another affiliate were voluntarily added to Lyondell Chemical's reorganization filing under Chapter 11 on April 24, 2009, in order to seek protection against claims by certain financial and U.S. trade creditors. On May 8, 2009, LyondellBasell Industries added 13 non-operating entities to Lyondell Chemical Company's reorganization filing under Chapter 11 of the U.S. Bankruptcy Code. All of the entities are U.S. companies and were added to the original Chapter 11 filing for administrative purposes. Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lyondell Chemical Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MASCO CORPORATION: Moody's Affirms 'Ba2' Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service affirmed Masco Corporation's Corporate Family Rating and Probability of Default Rating at Ba2 and senior unsecured notes at Ba2. In a related rating action Moody's changed the company's speculative grade liquidity rating to SGL-1 from SGL-2. The outlook is stable. Masco's Ba2 Corporate Family Rating considers Masco's scale, strong market position, and extensive product offerings. The company sells across a diverse array of building products segments, mitigating the adverse effect of weakness in any single line of business. The Decorative Architectural Products segment and Plumbing Products continue to perform well, and serve to partially offset the lackluster performance in the company's Cabinets and Related Products and Installation and Other Services businesses. Despite the likelihood of margin improvement, Masco's interest coverage and debt leverage credit metrics will remain weak, constraining the rating for an extended period of time. EBITA/interest expense was 2.0 times and (EBITDA - CAPEX)/interest expense was about 2.4 times for the last twelve months through March 31, 2010, while debt/EBITDA was 5.8 times at 1Q10 (all ratios adjusted per Moody's methodology). Significant cash balances of about $1.4 billion at 1Q10 and $1.25 billion available under its revolving credit facility offsets the weak credit metrics, giving Masco significant liquidity cushion as it grapples with ongoing operating weakness in some of its businesses. The change in the speculative grade liquidity rating reflects the extension of Masco's $1.25 billion revolving credit to January 2014, resulting in a very good liquidity profile. Combined cash on hand and revolver availability of $2.6 billion is more than ample to meet any working capital needs and capital expenditures. Now that Masco extended its revolver, the next nearest demand on cash is July 2012 when the company's 5.875% $850 million senior unsecured notes mature of which about $200 million is already prefunded. The stable outlook reflects Moody's belief that the combination of operating margin improvement and about $2.6 billion of cash on hand and revolver availability provides Masco with significant financial flexibility to contend with ongoing economic uncertainties and the resulting impact on the repair and remodeling and new housing construction end markets. These ratings/assessments were affected by this action: -- Corporate Family Rating affirmed at Ba2; -- Probability of Default Rating affirmed at Ba2; -- Senior unsecured notes ratings affirmed at Ba2 (LGD4, 56%); -- Various shelf securities affirmed at (P)Ba2/(P)B1. The company's speculative grade liquidity rating changed to SGL-1 from SGL-2. The last rating action was on March 5, 2010, at which time Moody's affirmed Masco's Corporate Family Rating at Ba2. Masco Corporation, headquartered in Taylor, MI, is one of the largest manufacturers in North America of a number of home improvement and building products, including faucets, cabinets, architectural coatings and windows and is one of the largest installers of insulation for the new home construction market. The Company generally distributes products through multiple channels including home builders and wholesale and retail channels. Revenues for the last twelve months through March 31, 2010 totaled approximately $7.8 billion. MEDICAL STAFFING: Taps Jefferies as Investment Banker ----------------------------------------------------- Medical Staffing Network Holdings, Inc., et al., sought and obtained interim authorization from the Hon. Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida to employ Jefferies & Company, Inc., as investment banker, nunc pro tunc to the Petition Date. Jefferies will provide investment banking services to the Debtors, including: a. providing advice and assistance (testimony and certain other services relating to a potential debtor-in- possession facility of the Company); b. acting as the exclusive financial advisor to the Company in connection with any potential sale, disposition or other business transaction or series of transactions involving a transfer of ownership of all or a material portion of the Company's assets, including under the U.S. Bankruptcy Code; c. providing a fairness opinion with respect to the foregoing, working collaboratively with the Debtors' other professionals; and d. assisting the Debtors in evaluating and implementing strategic and tactical options through the restructuring process. Jefferies will be compensated based on its engagement letter to the Debtor, a copy of which is available for free at: http://bankrupt.com/misc/MEDICALSTAFFING_engagementletter.pdf Leon Szlezinger, managing director of Jefferies, assured the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. The Court has set a final hearing for July 21, 2010, at 9:30: a.m. on the Debtors' request to be allowed to hire Jefferies as investment banker. Boca Raton, Florida-based Medical Staffing Network Holdings, Inc., provides temporary (predominantly healthcare) staffing services including per diem, short term contracts and travel, in the United States. Warburg Pincus Private equity VIII, L.P., owns a 45.4% stake in the Company. The Company filed for Chapter 11 bankruptcy protection on July 2, 2010 (Bankr. S.D. Fla. Case No. 10-29101). Paul Steven Singerman, Esq., who has an office in Miami, Florida, assists the Company in its restructuring effort. The Company estimated its assets and debts at $100,000,001 to $500,000,000. Akerman Senterfitt is the Company's special corporate and transactional counsel. Loughlin Meghji + Company is the Company's corporate restructuring advisor. Ernst & Young LLP is the Company's accounting and tax advisor. The Garden City Group Inc. is the Company's claims and notice agent. MESA AIR: Ends Fight with United over Regional Air Contract ----------------------------------------------------------- Bankruptcy Law360 reports that United Airlines Inc. has ended its fight with Mesa Air Group Inc. over a regional air service contract, following U.S. Bankruptcy Judge Martin Glenn's decision that United can sue the budget airline outside of its Chapter 11 proceedings. About Mesa Air Group Mesa currently operates 130 aircraft with approximately 700 daily system departures to 127 cities, 41 states, Canada, and Mexico. Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 3,500 employees. Mesa Air Group Inc. and its units filed their Chapter 11 petitions Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MGM RESORTS: To Release Q2 Financial Results on August 3 -------------------------------------------------------- MGM Resorts International will release its financial results for the second quarter of 2010 prior to the market open on August 3, 2010. The Company will host a conference call at 11:00 a.m. Eastern Time which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through http://www.mgmresorts.com/and http://www.videonewswire.com/event.asp?id=70960or by calling 1- 800-526-8531 for Domestic callers and 1-706-758-3659 for International callers. The conference call ID # is 87731569. A replay of the call will be available through Tuesday, August 10, 2010. The replay may be accessed by dialing 1-800-642-1687 or 1-706-645-9291. The replay access code is 87731569. The call will also be archived at http://www.mgmresorts.com/and at http://www.videonewswire.com/event.asp?id=70960 About MGM Resorts MGM Resorts International (NYSE: MGM) -- http://www.mgmresorts.com/-- has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, Illinois and Macau. * * * As reported by the Troubled Company Reporter on July 1, 2010, Fitch Ratings affirmed these ratings for MGM Resorts: Issuer Default Rating affirmed at 'CCC'; Senior secured notes due 2013, 2014, and 2017 affirmed at 'B+/RR1' (91%-100% recovery band); Senior secured notes due 2020 rated 'B+/RR1' (91%-100%); Senior credit facility affirmed at 'B-/RR3' (51%-70%); Senior unsecured notes affirmed at 'CCC/RR4' (31%-50%); Convertible senior notes due 2015 rated 'CCC/RR4' (31%-50%); Senior subordinated notes affirmed at 'C/RR6' (0%-10%). MICHAEL BUMGARNER: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Michael Rodney Bumgarner P.O. Box 2286 Hickory, NC 28603 Bankruptcy Case No.: 10-51043 Chapter 11 Petition Date: July 17, 2010 Court: United States Bankruptcy Court Western District of North Carolina (Wilkesboro) Judge: J. Craig Whitley Debtor's Counsel: Jimmy R. Summerlin, Jr., Esq. Young, Morphis, Bach & Taylor, LLP P.O. Drawer 2428 400 Second Ave., NW Hickory, NC 28603 Tel: (828) 322-4663 Fax: (828) 322-2023 E-mail: jimmys@hickorylaw.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 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncwb10-51043.pdf The petition was signed by Mr. Bumgarner. MIDWEST PROPERTIES: Case Summary & 9 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Midwest Properties of Shawano, LLC 902 North Market Street, Suite 704 Wilmington, DE 19801 Bankruptcy Case No.: 10-31515 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Debtor's Counsel: Bruce E. Scott, Esq. Bruce E. Scott Law Firm 204 E. Main Street P.O. Box 46 New Prague, MN 56071 Tel: (952) 758-4761 E-mail: bscott@bevcomm.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 9 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wieb10-31515.pdf The petition was signed by Naomi Isaacson, CEO. MINSTER INSURANCE: Seeks Chapter 15 Protection from Creditors ------------------------------------------------------------- London, United Kingdom-based Minster Insurance Co. sought bankruptcy protection from creditors under Chapter 15 of the U.S. Bankruptcy Code on July 19 in Manhattan (Bankr. S.D.N.Y. Case No. 10-13899). Minster filed for Chapter 15 to protect itself from U.S. lawsuits and creditor claims while it is reorganizing in London. The Company listed both debt and assets of more than $100 million. Minster is asking the U.S. Bankruptcy Court to recognize the proceeding currently pending before the High Court of Justice of England and Wales as a "foreign main proceeding." The proceeding in the English Court commenced in 2009. According to Bloomberg News, Minster and its Malvern Insurance Co. affiliate, which also sought protection, are insurance and reinsurance companies that no longer write new business. Both companies are based in London and their assets are primarily located in England. "The ultimate goal of each of the companies is to satisfy the claims" of creditors and "conclude the business of the companies sooner" than would be the case outside of bankruptcy, James Lee Saitch, foreign representative of Minster and Malvern, said in court papers, according to Bloomberg. Bankruptcy Law360 reports that Minster Insurance and Malvern have asked a bankruptcy judge to issue a ruling that their blueprints for paying off creditors, which have already won court approval in the U.K., are binding on creditors in the U.S. MOTOROLA INC: Nokia $1.2 Bil. Deal Won't Affect S&P's 'BB+' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said that its ratings and outlook on Finland-based mobile telecommunications equipment manufacturer Nokia Corp. (A/Negative/A-1) are unchanged following announcement that 50%-owned Nokia Siemens Networks has entered into an agreement with U.S.-based Motorola Inc. (BB+/Stable/--). Under the agreement, NSN will acquire the majority of Motorola's wireless network infrastructure assets for $1.2 billion in cash. The transaction is subject to regulatory approval and NSN expects it to close by the end of 2010. In S&P's opinion, the acquisition could strengthen NSN's competitive position, particularly in the U.S. and Japan, and could slightly improve NSN's currently weak profitability. S&P understands that NSN intends to finance the acquisition with cash on hand and its existing EUR2 billion multicurrency revolving credit facility, which matures in June 2012. Based on S&P's calculations, the announced acquisition will slightly weaken Nokia's currently robust credit measures. As of March 31, 2010, Nokia's gross debt-to-EBITDA ratio, as adjusted by Standard & Poor's, stood at 1.3x, and the group reported a very robust net (financial) cash position of EUR5 billion. MSJ INVESTMENT: Plan Confirmation Hearing Set for September 21 -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona will consider on September 21, 2010, at 1:30 p.m., the confirmation of MSJ Investment Properties, LLC, and P&G Investment Properties, Inc.'s Plan of Reorganization. Objections, if any, are due five days prior to the hearing. The ballot report will be due two days prior. As reported in the Troubled Company Reporter on June 14, according to the Disclosure Statement, the Plan proposes that, upon confirmation, ownership of the assets of the Chapter 11 estate be vested in the Debtors, and the Debtors will continue to operate the hotel property under the direction of the individuals in control of the Debtors during the administration of the case. This will continue, at least until the unsecured claims in Class 5 have been paid in full. On the effective date, the Reorganized Debtors will establish a Plan Fund consisting of a separate, segregated interest-bearing deposit account, into which the Debtors will deposit funds for distribution to Class 5 claimants. The Plan Fund will be funded initially from all cash funds in the Debtors possession on the Effective Date. Holders of general unsecured Claims will be paid in full, in cash, in semi-annual installments in a pro rata amount from the Plan Fund, together with interest thereon at the federal judgment rate in effect from time to time. The existing shareholder of the Debtors will not receive any distribution on account of his interest unless and until all sums due in Classes 1, 2 and 5 are paid in full pursuant to the Plan. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/MSJINVESTMENT_DS.pdf The Debtors are represented by: Scott D. Gibson, Esq. Kristen M. Green, Esq. E-mail: ecf@gnglaw.com Gibson, Nakamura & Green, P.L.L.C. 2329 N. Tucson Blvd. Tucson, AZ 85716 About MSJ Investment Properties Oro Valley, Arizona-based MSJ Investment Properties, L.L.C., filed for Chapter 11 bankruptcy protection on February 12, 2010 (Bankr. D. Ariz. Case No. 10-03643). The Company estimated its assets and liabilities at $1,000,001 to $100,000,000. NETWORK COMMS: Working with Restructuring Advisors for Options -------------------------------------------------------------- Network Communications, Inc., said last week it is continuing to work with its restructuring advisors to review its financial, strategic and legal restructuring options. On June 28, 2010, the Company filed a form 12b-25 Notification of Late Filing to announce that it had not completed the preparation of the Company's financial statements related to the fiscal year ended March 28, 2010 and that it would be unable to prepare and file its annual report on Form 10-K for the fiscal year ended March 28, 2010 by the June 28, 2010 deadline. The Company has not yet filed the Form 10-K. The Company's management is continuing to work to finalize the Company's financial statements for the fiscal year ended March 28, 2010. Last week, the Company also disclosed it elected not to make the June 1, 2010 interest payment of approximately $9.4 million on its 10 _% Senior Notes due 2013. The Troubled Company Reporter on July 19 said the Company blamed continued challenges in the markets that it serves, the lack of a rebound in revenue and the inability to secure a new revolving loan facility to replace the current commitment that expires in November 2010. As a result of missing the payment, the Company's senior secured lenders accelerated all amounts outstanding under the Company's revolving and term loan credit agreements, which in turn triggered an event of default under the Senior Notes indenture and the senior subordinated credit agreement. The Company's total debt outstanding is approximately $296 million. The Company said it is unable to pay the outstanding debt if it is called. The Company obtained an agreement from its secured lenders dated June 1, 2010, permitting it to have continued access to and use of its cash as it works with its stakeholders to restructure its balance sheet. On July 9, 2010, the Company and its parent, Gallarus Media Holdings, Inc., entered into a second amendment to agreement, dated July 9, 2010, by and among the Company, the lenders party thereto, Toronto Dominion (Texas) LLC, as Administrative Agent under the Company's revolving credit agreement and under the Company's senior term loan agreement and as Collateral Agent for the lenders thereunder, and certain other parties thereto to amend the agreement dated June 1, 2010 such that the definition of "Transaction Event" therein was changed from June 20, 2010 to July 30, 2010. All other terms remain the same. The Company expects to have sufficient cash on hand to fund normal course operations as restructuring negotiations progress. Lawrenceville, Ga.-based Network Communications, Inc., is a leading local media company providing lead generation, advertising and internet marketing services to the housing industry. The Company's leading brands are Apartment Finder, The Real Estate Book, DigitalSherpa, Unique Homes, New England Home and Atlanta Homes & Lifestyles. The Company's balance sheet at December 6, 2009, showed $362.4 million in assets, $330.3 million of liabilities, and $32.1 million of stockholders' equity. NEWPAGE CORP: Offers to Exchange $70,000,000 in 11.375% Notes ------------------------------------------------------------- NewPage Corporation is offering to exchange $70,000,000 in aggregate principal amount of 11.375% Senior Secured Notes due 2014, Series B for all outstanding $70,000,000 in aggregate principal amount of 11.375% Senior Secured Notes due 2014, Series A. The exchange offer will expire at 12:00 midnight, New York City time, on August 11, 2010, which is 20 business days after the commencement of the exchange offer, unless extended. The Original Notes were sold by the Company in a private placement consummated on February 24, 2010. The Original Notes were issued under the same indenture as the existing 11.375% Senior Secured Notes due 2014, which the Company issued in September 2009 in the aggregate principal amount of $1,700,000,000. The New Notes are substantially identical to the Original Notes and are governed by the same indenture governing the Original Notes and the Existing Notes. A full-text copy of the prospectus is available at no charge at http://ResearchArchives.com/t/s?66ca About NewPage Corporation Headquartered in Miamisburg, Ohio, NewPage Corporation -- http://www.NewPageCorp.com/is the largest coated paper manufacturer in North America, based on production capacity, with $3.1 billion in net sales for the year ended December 31, 2009. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty papers. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications and direct mail advertising. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 4.4 million tons of paper, including approximately 3.2 million tons of coated paper, approximately 1.0 million tons of uncoated paper and approximately 200,000 tons of specialty paper. NewPage Corp. reported $4.0 billion in total assets, $468.0 million, $3.0 billion in long term debt, and $493.0 in long-term obligations resulting to a $14.0 million stockholders' equity as of Dec. 31, 2009. * * * As reported by the Troubled Company Reporter on October 7, 2009, Standard & Poor's Ratings Services raised its corporate credit rating on NewPage Corp. to 'CCC+' from 'SD' (selective default). The outlook is negative. S&P raised the issue-level rating on the company's second-lien floating- and fixed-rate notes due 2012 to 'CCC-' (two notches below the corporate credit rating) from 'D'. The recovery rating on these notes remains at '6', indicating S&P's expectation of negligible (0% to 10%) recovery in the event of a payment default. S&P also raised the issue-level rating on the company's subordinated notes to 'CCC-' from 'CC'. The recovery rating is unchanged at '6', indicating S&P's expectation of negligible (0% to 10%) recovery in the event of a payment default. NYC OFF-TRACK: Rayburn Wants Restructuring Plan Within 30 Days -------------------------------------------------------------- Paul Post at The Saratogian reports that Greg Rayburn, the new head of bankrupt New York City Off Track Betting Corp. says he'll have a plan in place for restructuring the firm within 30 days. According to the report, Mr. Rayburn says all stakeholders -- racetracks, breeders, unions and governments -- will have to share some of the pain involved with getting OTB back on solid financial ground. He said he isn't convinced that New York Racing Association should ultimately run OTB. In most states, the racetrack operator controls distribution of the racing product. "We're evaluating everything," the report quotes Mr. Rayburn as saying. "I view this as a very short-term effort. We need to have a plan in 30 days. There's no question that participants in our creditors' group are suffering because of our bankruptcy and inability to make full (statutory) payments." According to the report, New York City OTB owes NYRA more than $20 million and is underpaying by nearly $2 million per month. NYRA says most of its recent $25 million state loan will be gone by 2011 because of OTB's inability to make mandated monthly payments. "It appears that Mr. Rayburn is serious about attacking the significant operating and financial issues of New York City OTB that have been ignored for years," the report quotes NYRA President and CEO Charles Hayward as saying. "New York City OTB is very important to the racing industry in New York and across the country. I assume that all industry participants will be willing to endure some pain to get this entity back on track. NYRA stands ready to assist Mr. Rayburn in any way that he deems appropriate." Former OTB Chairman Meyer Frucher wanted to close more than two thirds of OTB's betting shops and lay off hundreds of workers and replace them with self-service betting machines at venues such as New York sports bars. According to the report, Mr. Rayburn said some closures and layoffs are needed, but not as many as called for by Mr. Frucher. The report notes Mr. Rayburn said OTB should be run by someone with more gaming expertise. At present, it has no rebate rewards program, making it difficult to compete with account deposit wagering firms that do, such as HRTV and Youbet. Mr. Rayburn also said OTB needs to establish a capital reserve fund, allowing it to invest back into the business. About NYC OTB New York City Off-Track Betting Corporation is a public benefit corporation, which operates an off-track pari-mutuel betting system on thoroughbred and harness horse races held at all 11 race tracks located in New York State and certain race tracks located outside of the State. Since NYC OTB's inception in 1971, it has made payments of nearly $2 billion to the State horse racing industry, more than $1.4 billion to New York City and nearly $600 million to the State. In 2008 alone, NYC OTB made statutory contributions in an aggregate amount of $128.6 million to the State horse racing industry, the State, the City, and other local municipalities. NYC OTB's operations are regulated by the State. NYC OTB filed for bankruptcy under Chapter 9 of the Bankruptcy Code on December 3, 2009 (Bankr. S.D.N.Y. Case No. 09-17121). Richard Levin, Esq., at Cravath, Swaine & Moore LLP, in New York, serves as the Debtor's counsel. At September 30, 2009, NYC OTB had $18,468,147 in total assets against $74,912,742 in total current liabilities, $6,982,887 in long-term liabilities, and $201,020,000 in long-term post employment benefits. ORIENTAL FINANCIAL: S&P Revises Outlook on 'BB+' Rating to Stable ----------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on Oriental Financial Group and subsidiary Oriental Bank & Trust to stable from negative. At the same time, Standard & Poor's affirmed its 'BB+' long-term counterparty credit rating on Oriental Financial, and its 'BBB-' long-term counterparty credit rating on Oriental Bank. "The outlook revision reflects reduced credit-sensitive exposures in the relatively large available-for-sale securities book through the sale of a large proportion of non-agency securities, so the risk of substantial near-term securities losses has diminished in its opinion," said Standard & Poor's credit analyst Lidia Parfeniuk. This also strengthened the balance sheet and improved liquidity, in S&P's assessment. S&P expects provisions to remain elevated given the generally weak Puerto Rico economy, although Oriental's loan portfolio is less risky and much smaller compared with those of its Puerto Rican bank peers. Although its Eurobank acquisition, a Federal Deposit Insurance Corp. assisted deal, will increase Oriental's moderate credit risk profile in the loan book with additional exposure to commercial real estate and construction loans, S&P believes the loss-sharing agreement with the FDIC will significantly limit potential losses. Furthermore, S&P expects the Eurobank acquisition to enhance Oriental's retail and commercial banking franchise and reduce the concentration in investment securities. Oriental had previously undertaken highly leveraged interest-rate risk through structured repo transactions, which in S&P's opinion elevated the exposure to interest rate risk. However, improving asset-liability management modeling and stress-testing capabilities should help the bank better manage this risk. The outlook is stable despite continuing challenges in the Puerto Rico economy due to Oriental's more modest exposure to credit risk, which will help preserve the earnings level. Although S&P believes the Eurobank acquisition is a good fit, Oriental faces integration risk as it lacks an acquisition track record. S&P will monitor integration developments closely. Oriental, a financial holding company in Puerto Rico, with $9.5 billion of total assets owned and under management at March 31, 2010, has a fairly modest competitive position, in S&P's opinion. The company has four subsidiaries: Oriental Bank and Trust, the commercial bank, which houses almost all of Oriental's assets; Oriental Financial Services Corp., a securities dealer; Oriental Insurance, Inc.; and Caribbean Pension Consultants, which offers third-party pension plan administration in continental U.S., Puerto Rico, and the Bahamas. PACIFICA MESA STUDIOS: Seeks Bankruptcy Protection -------------------------------------------------- Dawn McCarty at Bloomberg News reports that Pacifica Mesa Studios LLC filed for bankruptcy protection in San Fernando Valley, California (Bankr. C.D. Calif. Case No. 10-18827). Agoura Hills, California-based Pacifica Mesa is the parent company of the New Mexico complex where the movies "The Book of Eli" and "Terminator Salvation" were filmed. The Chapter 11 petition listed assets of $57.7 million and debt of $104.5 million in Chapter 11 documents. Pacifica Mesa holds the title to Albuquerque Studios, a 28-acre site the company valued at $54 million in court papers. PENN TRAFFIC: PBGC Objects to Disclosure Statement -------------------------------------------------- Bankruptcy Law360 reports that the U.S. Pension Benefit Guaranty Corp. has objected to a disclosure statement for a liquidation plan filed by bankrupt grocer The Penn Traffic Co., which sold its stores to former rival Tops Markets LLC for about $155 million earlier this year. About 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. PERFORMANCE TRANSPORTATION: Sues Truck Makers Over Monopoly Claims ------------------------------------------------------------------ Bankruptcy Law360 reports that truck builders including Daimler Trucks North America LLC, Volvo Trucks North America, Peterbilt Motors Co. and Mack Trucks Inc. are facing a proposed class action alleging they conspired to maintain the monopoly power of Eaton Corp. in the market for transmissions used in large trucks. Law360 says Performance Transportation Services Inc. Chapter 7 Trustee Mark S. Wallach filed an amended class action complaint against the truck companies in the U.S. District Court for the District of Delaware. About Performance Transportation Based in Wayne, Michigan, Performance Transportation Services, Inc. provided new and use vehicle delivery services in the United States. Performance Transportation has facilities in the United States and Canada. The Company and its debtor-affiliates filed for Chapter 11 bankruptcy on November 19, 2007 (Bankr. W.D.N.Y. Case No. 07-04746 thru 07-04760). When the Debtors filed for protection from their creditors, they listed more than $100 million each in assets and debts. (Performance Bankruptcy News, Issue No. 55; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000). The Court converted the Debtors' Chapter 11 cases to cases under Chapter 7 of the Bankruptcy Code, effective as of July 14, 2008. Mark S. Wallach was appointed as trustee. Lawyers at Bond, Schoeneck & King, PLLC, Jones Day, and Hodgson Russ LLP, represent the Debtors as counsel. PHILADELPHIA NEWSPAPERS: Seeks to Probe Pension Funds ----------------------------------------------------- Bankruptcy Law360 and Dow Jones Daily Bankruptcy Review report that Philadelphia Newspapers LLC is looking to probe pension funds under F.R.B.P. Rule 2004. The Debtor says that a group of pension funds is embarking on a new strategy in a quest to "saddle" the company with pension liabilities. As reported by the Troubled Company Reporter on July 12, 2010, Andrew Maykuth at The Philadelphia Inquirer said Chief Bankruptcy Judge Stephen Raslavich denied a request by employee pension plans to put Philadelphia Newspapers' reorganization on hold while the pension plans appeal the bankruptcy plan in U.S. District Court. The funds oppose the reorganization because the new owners will be absolved of responsibility for funding pension shortfalls. According to the Inquirer, Judge Raslavich said the pension plans, led by the Teamsters Union fund and including other employee funds, had failed to make a strong case that they would suffer irreparable harm if the reorganization were completed. The judge said the company faced a more immediate threat of insolvency if the 17-month-old bankruptcy case were not concluded by September. Bankruptcy Plan As reported by the Troubled Company Reporter on June 29, 2010, Philadelphia Newspapers received bankruptcy court approval to reorganize and sell its newspapers to a group of its lenders for $139 million. U.S. Bankruptcy Court Judge Stephen Raslavich approved the reorganization plan in Philadelphia after overruling objections from union pension funds. "This is not the end of the day," Judge Raslavich said in court, according to Bloomberg News. "There are still union contracts to be negotiated and the sale to be consummated." The confirmation hearing for approval of the Chapter 11 of Philadelphia Newspapers began on June 24. As reported by the TCR on April 29, 2010, Philadelphia Newspapers held an auction where, senior lenders' $139 million offer emerged as the highest bid. According to a report by the Philadelphia Inquirer, the deal includes: $39.2 million in debt; and $69 million in cash equity, plus $30 million, as the estimated value for the purposes of the bankruptcy auction, of the Company's real estate Dow Jones notes the Chapter 11 plan provides a slight recovery for some lower classes of creditors, despite the fact that the senior secured lenders, which fall ahead in the line to be paid, are owed $318 million, far more than their $135 million offer will cover. Certain holders of pre-bankruptcy mezzanine debt and unsecured creditors are slated to share in a liquidation trust containing proceeds from avoidance actions, and the holders of mezzanine claims will see 2.3% of equity in the new company as well. The lenders will be repaid with their choice of equity in the new company or a cash distribution. Philadelphia Newspapers' plan also contemplates a $39.3 million bankruptcy exit loan from a group of lenders led by Bank of Utah. The money will help pay for the costs accrued since Feb. 22, 2009, when the Debtors filed for bankruptcy protection, and provide the company with working capital moving forward. The reorganized company will be known as Philadelphia Media Network Inc. and led by publisher and Chief Executive Greg Osberg, a former president and publisher of Newsweek, and chief operating chief Bob Hall, who was once publisher of the Inquirer and Daily News. Bruce Meier, an executive with restructuring firm Alvarez & Marsal, who had served as a consultant for Philadelphia Newspapers, will serve as its chief financial officer. About Philadelphia Newspapers Philadelphia Newspapers -- http://www.philly.com/-- owns and operates numerous print and online publications in the Philadelphia market, including the Philadelphia Inquirer, the Philadelphia Daily News, several community newspapers, the region's number one local Web site, philly.com, and a number of related online products. The Company's flagship publications are the Inquirer, the third oldest newspaper in the country and the winner of numerous Pulitzer Prizes and other journalistic recognitions, and the Daily News. Philadelphia Newspapers and its debtor-affiliates filed for Chapter 11 bankruptcy protection on February 22, 2008 (Bankr. E.D. Pa. Case No. 09-11204). Mark K. Thomas, Esq., and Paul V. Possinger, Esq., at Proskauer Rose LLP in Chicago, Illinois; and Lawrence G. McMichael, Esq., Christie Callahan Comerford, Esq., and Anne M. Aaronson, Esq., at Dilworth Paxson LLP, in Philadelphia, Pennsylvania, serve as bankruptcy counsel. The Debtors' financial advisor is Jefferies & Company Inc. The Garden City Group, Inc., serves as claims and notice agent. Ben Logan, Esq., at O'Melveny & Myers LLP in Los Angeles, California; and Gary Schildhorn, Esq., at Eckert Seamans Cherin & Mellott, LLC in Philadelphia, represent the Official Committee of Unsecured Creditors. Fred S. Hodara, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP in New York, represent the Steering Group of Prepetition Secured Lenders. Philadelphia Newspapers listed assets and debts of $100 million to $500 million in its bankruptcy petition. PHILLIP KEITH: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Phillip Dennis Keith 2110 Overland Ave., Suite 117 Billings, MT 59101 Tel: (406) 672-3501 Bankruptcy Case No.: 10-61722 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court District of Montana (Butte) Judge: Ralph B. Kirscher Debtor's Counsel: Allen Beck, Esq. Law Offices of Allen Beck 505 W Main St., Suite 405 Lewistown, MT 59457 Tel: (406) 538-8380 E-mail: becklaw@midrivers.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 Mr. Keith. PREMIER HOTEL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: The Premier Hotel Group LLC dba Baymont Inn and Suites 730 E Xenia Dr Fairborn, OH 45324 Bankruptcy Case No.: 10-34585 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court Southern District of Ohio (Dayton) Judge: Lawrence S. Walter Debtor's Counsel: Delena Edwards, Esq. Delena Edwards Co LPA 2021 E Dublin Granville Rd, Suite 173 Columbus, OH 43229 Tel: (614) 785-9958 Fax: (614) 785-9508 E-mail: dedwardsoffice@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ohsb10-34585.pdf The petition was signed by William Parker, managing member. PSEG ENERGY: Moody's Withdraws 'Ba3' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service has withdrawn the ratings of PSEG Energy Holdings L.L.C. because Moody's believes it lacks adequate information to maintain the rating. The ratings of Public Service Enterprise Group Incorporated ((P)Baa2, senior unsecured), Public Service Electric and Gas Company (Baa1 senior unsecured) and PSEG Power LLC (Baa1 senior unsecured) are unchanged and their rating outlooks remain stable. These ratings were withdrawn: Outlook Actions: Issuer: PSEG Energy Holdings L.L.C. -- Outlook, Changed To Rating Withdrawn From Stable Withdrawals: Issuer: PSEG Energy Holdings L.L.C. -- Probability of Default Rating, Withdrawn, previously rated Ba3 -- Corporate Family Rating, Withdrawn, previously rated Ba3 -- Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated Ba3, LGD4, 50% The previous rating action occurred on June 25, 2008, when Energy Holdings' ratings were affirmed and its rating outlook was revised to stable from negative. Energy Holdings' ratings were assigned by evaluating factors believed to be relevant to the credit profile of the issuer such as i) its business risk and competitive position, ii) its capital structure and financial risk, iii) its projected financial performance over the near to intermediate term and iv) its position and role in the within the PSEG corporate group. PSEG Energy Holdings L.L.C. is a 100% owned subsidiary of Public Service Enterprise Group Incorporated. Headquartered in Newark, New Jersey, Public Service Enterprise Group Incorporated is a diversified energy company. QWEST COMMS: To Purchase 3.5% Convertible Senior Notes ------------------------------------------------------ Qwest Communications International Inc. launched a cash tender offer to purchase any and all of its outstanding 3.50% Convertible Senior Notes due 2025 upon the terms and subject to the conditions set forth in the Company's Offer to Purchase, dated July 13, 2010, and the related Letter of Transmittal. The Offer will expire at 5:00 p.m., New York City time, on Thursday, August 12, 2010, unless the Offer is extended or earlier terminated by the Company. The Offer is subject to the satisfaction or waiver of certain conditions, but is not subject to the receipt of any minimum amount of tenders. As of July 9, 2010, there were Convertible Notes outstanding in an aggregate principal amount of $1,265,000,000. Upon the terms and subject to the conditions of the Offer, holders of Convertible Notes who validly tender and do not validly withdraw their Convertible Notes at or prior to 5:00 p.m., New York City time, on the Expiration Date, will receive, for each $1,000 principal amount of such Convertible Notes, a cash purchase price equal to the sum of: i) the Average VWAP of the Company's common stock multiplied by 206.3354 plus ii) a fixed cash amount of $30.00, provided that in no event will the purchase price be less than $1,000.00 or more than $1,170.00 per $1,000 principal amount of such Convertible Notes. In addition, holders will receive in respect of their Convertible Notes that are accepted for purchase accrued and unpaid interest on such Convertible Notes to, but excluding, the settlement date of the Offer. "Average VWAP" is the arithmetic average of the daily volume weighted average price per share of the Company's common stock on the New York Stock Exchange on each trading day during the period of 20 consecutive trading days beginning on July 14, 2010 and ending on August 10, 2010. The per share volume weighted average price of the Company's common stock for a given day is shown on the Bloomberg Q.NAQR page. Prior to determining the final purchase price, an indicative purchase price will be posted on the website www.gbsc- usa.com/Qwest and will be available from the Information Agent for the offer. The Company will determine the final purchase price promptly after the close of trading on the New York Stock Exchange on August 10, 2010. The final purchase price also will be posted on the above-mentioned website and available from the Information Agent. Additional terms and conditions of the Offer are set forth in the Offer to Purchase and the Letter of Transmittal. Special Stockholder Meeting The Company it will hold a special stockholder meeting on Tuesday, August 24, 2010, at the Denver Marriott City Center. The Company's stockholders will vote on a proposal to adopt the merger agreement with CenturyLink, Inc. The record date for determining the stockholders entitled to vote at the meeting is July 13, 2010. About Qwest Based in Denver, Colorado, Qwest Communications (NYSE: Q) -- http://www.qwest.com/-- offers residential customers a new generation of fiber-optic Internet service, high-speed Internet solutions, as well as digital home phone, wireless service available through Verizon Wireless and DIRECTV services. Qwest is also the choice of 95 percent of Fortune 500 companies, offering a full suite of network, data and voice services for small businesses, large businesses, government agencies and wholesale customers. Additionally, Qwest participates in Networx, the largest communications services contract in the world, and is recognized as a leader in the network services market by leading technology industry analyst firms. At March 31, 2010, the Company had total assets of $19.362 billion from total liabilities of $20.482 billion, resulting in stockholders' deficit of $1.120 billion. The March 31 balance sheet also showed strained liquidity: The Company had total current assets of $4.005 billion from total current liabilities of $4.590 billion. R & S HEATING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: R & S Heating & Air Conditioning 12600 Creek View Avenue Savage, MN 55378 Tel: (952) 894-0376 Bankruptcy Case No.: 10-35110 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court District of Minnesota (St. Paul) Judge: Gregory F. Kishel Debtor's Counsel: Joseph Anthony Wentzell, Esq. Wentzell Law Office, PLLC 2812 Anthony Lane S St. Anthony, MN 55418 Tel: (612) 436-3292 Fax: (612) 788-9879 E-mail: jwentzell@fosterbrever.com Scheduled Assets: $2,708,322 Scheduled Debts: $1,118,189 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mnb10-35110.pdf The petition was signed by Jessica Thielen, president. RADIENT PHARMACEUTICALS: Enters Letter of Intent to Buy Provista ---------------------------------------------------------------- Radient Pharmaceuticals Corporation has entered into a letter of intent to acquire Provista Diagnostics Inc., a Nevada corporation offering laboratory testing services that meet the Clinical Laboratory Improvement Act guidelines. Radient Pharmaceuticals intends to acquire PDI, in a stock-for- stock transaction, when respective due diligence for both companies is successfully completed. The rationale for the merger is that PDI has all rights, patents and trademarks for diagnostic technologies that Radient Pharmaceuticals believes will strengthen and complement its core business. Pursuant to the LOI, Provista will become a wholly-owned subsidiary of Radient Pharmaceuticals. The closing of the transaction is subject to customary closing conditions, including Radient Pharmaceuticals' shareholder approval and securing satisfactory legal and operational due diligence by both companies. Radient Pharmaceuticals and Provista Diagnostics have sixty days to complete due diligence and agree to close the merger within the following ninety days, unless both parties mutually agree to extend the closing date for the purposes of receiving required shareholder approval. If the conditions to be satisfied are not fully met in a timely fashion, the merger contemplated by the LOI may not occur. Provista Diagnostics Inc. is a healthcare and biotechnology development company located in Phoenix, Arizona, that provides innovative tests for early disease detection to medical professionals and patients. The Company's product portfolio includes: * BT Test -- a diagnostic blood test that detects and measures the levels of key biomarkers that are associated with breast cancer. * LymPro Test -- a blood test designed to work with traditional diagnostic methods to assist doctors in a more timely and accurate diagnosis of Alzheimer's disease. * RCP Test -- a diagnostic blood test for the possible presence of ovarian, uterine, and cervical cancer in women. * REDx -- a diagnostic blood test to screen for Mild Cognitive Impairment, Alzheimer's disease and other forms of dementia. "The goal of this proposed merger is to build a more identifiable, broader and more profitable IVD testing business. The proposed merger represents a unique and high-value opportunity to expand CLIA testing services, test kit commercialization and research & development efforts for both RPC and PDI," said Douglas MacLellan, Chairman and CEO of Radient Pharmaceuticals. "PDI has established itself in the area of cancer diagnostics and CLIA laboratory testing, and the company's scientific leadership and expertise represents a strong strategic fit with RPC's existing organization. We look forward to aggressively advancing product commercialization, specifically as it relates to RPC's Onko-Sure IVD cancer test in partnership with PDI." "We are pleased at the prospect of joining and look forward to partnering with RPC to deliver on the promise of potentially life- saving cancer testing services and products to the medical and healthcare industry," said William Gartner, President and CEO of PDI. "Furthermore, we believe our combined knowledge, experience and product portfolio will offer significant market value." About Radient Pharmaceuticals Headquartered in Tustin, Calif., Radient Pharmaceuticals Corporation -- http://www.Radient-Pharma.com/-- is an integrated pharmaceutical company devoted to the research, development, manufacturing, and marketing of diagnostic, and premium skin care products. * * * As reported in the Troubled Company Reporter on April 19, 2010, KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred a significant operating loss and negative cash flows from operations in 2009 and has a working capital deficit of roughly $4.2 million at December 31, 2009. RADIO ONE: S&P Changes Outlook on 'CCC+' Rating to Developing ------------------------------------------------------------- Standard & Poor's Ratings Services revised the CreditWatch implications on its 'CCC+' corporate credit rating for Lanham, Maryland-based radio broadcaster Radio One Inc. to developing from positive. "The revised CreditWatch implications reflect delays and uncertainty in the ultimate outcome of the company's proposal to refinance its capital structure and acquire a controlling stake in TV One LLC, an African-American targeted cable TV network," explained Standard & Poor's credit analyst Michael Altberg. "If the company succeeds in refinancing its capital structure, key rating considerations for an upgrade will include pro forma leverage, EBITDA coverage of interest, discretionary cash flow generation, and the ownership structure of TV One. S&P could lower the rating if the company is unable to resolve its financing needs prior to the end of its forbearance agreement, which expires Aug. 13, 2010." At the same time, S&P has placed its 'BB-' issue-level rating on Radio One's proposed $400 million senior secured credit facility and its 'CCC+' issue-level rating on the company's proposed unsecured exchange notes due 2017 on CreditWatch with negative implications. These actions reflect the possibility that S&P may lower these ratings based on the financial risk associated with the ultimate capital structure. The proposed senior secured credit facility consists of a $50 million revolving credit facility due 2014 and a $350 million term loan B, which matures in seven years. In addition, S&P has withdrawn its 'CCC+' issue-level rating and recovery rating of '6' on the company's previously proposed $100 million secured second-lien notes due 2016, proceeds of which had been intended to acquire an additional 19.4% stake in TV One LLC. The revision of S&P's CreditWatch listing is based on uncertainty surrounding the outcome of the company's refinancing plans, following the extension of its exchange offer for its existing 8.875% senior subordinated and 6.375% senior subordinated notes and the withdrawal of its subscription offer for its proposed 8.5%/9.0% second-lien grid notes. The company is currently subject to a forbearance agreement with existing bank lenders with respect to events of default under its total leverage covenant as of July 1, 2010. If the company is unable to refinance its 8.875% senior subordinated notes, its existing facility will mature on Jan. 1, 2011. In addition, S&P is currently uncertain about the company's funding strategy to acquire a controlling interest in TV One LLC. S&P had viewed the consolidation as a positive factor to help diversify the company's business mix and provide a more stable revenue stream. In resolving the CreditWatch listing, S&P will review the company's progress in refinancing its existing subordinated notes and credit facility, as well as its new funding strategy to acquire a controlling interest in TV One. RASER TECHNOLOGIES: Lenders Waive Payments on Power Plant Loan -------------------------------------------------------------- Raser Technologies, Inc., on July 9, 2010, entered into an Amendment, Consent and Forbearance Agreement with Thermo No. 1 BE-01, LLC, The Prudential Insurance Company of America, Zurich American Insurance Company and Deutsche Bank Trust Company Americas relating to the repayment of a substantial portion of the debt financing for the Thermo No. 1 geothermal power plant. In connection with the Forbearance Agreement, on July 9, 2010, Thermo and Deutsche Bank entered into a Second Amendment to Account and Security Agreement. Pursuant to the Amendments, the lenders of the debt financing for the Thermo No. 1 Plant will receive an immediate payment of $27 million out of Thermo No. 1 Plant escrow accounts and will waive compliance with applicable debt-related covenants and obligations for the next year. During the next year, but no later than June 29, 2011, the lenders are entitled to receive an additional payment of up to $6 million plus the expenses of the administrative lender and agents. The Amendments contemplate that the Company will satisfy the Additional Payment using proceeds from the sale of all or part of its interest in the Thermo No. 1 Plant, but the Amendments permit the Company to satisfy the Additional Payment by using cash from other sources, if available. If the sale includes all of the Company's interests in the Thermo No. 1 Plant, the lenders are entitled to receive 50% of the proceeds of such a sale up to a maximum of $6 million plus the expenses of the administrative lender and agents. If the sale includes only a portion of the Company's interests in the Thermo No. 1 Plant, the Company is obligated to pay the lenders $6 million plus the expenses of the administrative lender and agents. After providing for the $27 million payment to the lenders, approximately $3 million currently in the Thermo No. 1 Plant escrow account will remain in escrow and be used for the operation of the Thermo No. 1 Plant and other related expenses. The Thermo No. 1 Plant is currently producing a little over six megawatts available for sale. The Company entered into a non-binding Memorandum of Understanding on June 28, 2010 with Hyundai Heavy Industries Co. Ltd. The non- binding MOU reflects the Company's and Hyundai's intent to collaborate to jointly develop renewable energy and electric vehicles. The MOU is subject to termination for any reason upon thirty days prior written notice, and the MOU terminates automatically on December 31, 2010 if the Company and Hyundai are unable to reach a definitive, binding agreement relating to the terms specified in the MOU. Raser -- http://www.rasertech.com/-- is an energy technology company focused on geothermal power development and technology licensing. Raser's Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom- cycling. Raser's Transportation & Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser's award-winning Symetron(TM) technology. REID ELAM: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Joint Debtors: Reid P. Elam Susan K. Elam 2162 Gunnison Place Henderson, NV 89044 Bankruptcy Case No.: 10-22994 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Ambrish S. Sidhu, Esq. Sidhu Law Firm 810 S. Casino Center Blvd., Suite 104 Las Vegas, NV 89101 Tel: (702) 384-4436 Fax: (702) 384-4437 E-mail: asidhu@sidhulawfirm.com Scheduled Assets: $1,229,060 Scheduled Debts: $1,548,668 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-22994.pdf The petition was signed by the Joint Debtors. RIVER BOTTOM: Case Summary & 16 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: River Bottom Cattle Company, LLC P.O. Box 96 Mobridge, SD 57601 Bankruptcy Case No.: 10-30050 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court District of South Dakota (Central (Pierre)) Judge: Charles L. Nail, Jr. Debtor's Counsel: Clair R. Gerry, Esq. Gerry & Kulm Ask, Prof LLC P.O. Box 966 Sioux Falls, SD 57101-0966 Tel: (605) 336-6400 E-mail: gerry@sgsllc.com Scheduled Assets: $4,869,000 Scheduled Debts; $2,796,000 A list of the Company's 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/sdb10-30050.pdf The petition was signed by Kent Wientjes, president. RIVIERA HOLDINGS: Files Reorganization Plan & Disclosure Statement ------------------------------------------------------------------ Riviera Holdings Corporation, et al., have filed a Plan of Reorganization and disclosure statement with the U.S. Bankruptcy Court for the District of Nevada. Under the Plan, administrative claims and priority tax claims will be paid in full. Copies of the Plan and disclosure statement are available for free at: http://bankrupt.com/misc/RIVIERA_HOLDINGS_ds.pdf http://bankrupt.com/misc/RIVIERA_HOLDINGS_plan.pdf With respect to classified claims: Classification Treatment -------------- --------- Class 1 - Other Priority Claims Unimpaired; paid in full in cash Class 2 - Other Secured Claims Unimpaired; paid in full in cash or otherwise left unimpaired Class 3 - General Unsecured Claims Impaired; paid in full in cash not to exceed $3,000; Class 4 - First Priority Senior Secured Claims Impaired; pro rate share of the $50,000 Series A Term Loan Class 5 Senior Secured Claims Impaired; dependant on whether the Total New Money Investment Alternative is effectuated or the Partial New Money Investment Alternative is effectuated. Pro rata share of the $50,000 Series A Term Loan less the portion received by the First Priority Senior Secured Lenders, and pro rata of a portion of the Class B Shares Class 6 - 510(b) Claims Impaired; no distribution Class 7 - Intercompany Claims Impaired or unimpaired; reinstated, in full or in part or cancelled in full or in part, at the option of the Debtors Class 8 - Equity Interests in RHC Impaired; no distribution Class 9 - Intercompany Equity Interests Unimpaired; interests remain unaltered About Riviera Holdings Riviera Holdings, through its wholly-owned subsidiary, Riviera Operating Corporation, owns and operates the Riviera Hotel & Casino located in Las Vegas, Nevada, which consists of a hotel comprised of five towers with 2,075 guest rooms, including 177 suites, and which has traditional Las Vegas-style gaming, entertainment and other amenities. In addition, Riviera Holdings, through its wholly-owned subsidiary, Riviera Black Hawk, Inc., owns and operates the Riviera Black Hawk Casino, a casino in Black Hawk, Colorado and has various non-gaming amenities, including parking, buffet-styled restaurant, delicatessen, a casino bar and a ballroom. Riviera Holdings together with the two affiliates filed for Chapter 11 on July 12 in Las Vegas, Nevada (Bankr. D. Nev. Case No. 10-22910). Riviera Holdings' petition listed assets and debts of $100 million to $500 million. Attorneys at Gordon Silver represent the Debtors in the Chapter 11 cases. RIVIERA HOLDINGS: Gets Court's Interim Nod to Use Cash Collateral ----------------------------------------------------------------- Riviera Holdings Corporation, et al., sought and obtained interim authorization from the Hon. Linda B. Riegle of the U.S. bankruptcy Court for the District of Nevada to use the cash collateral securing their obligation to the senior secured creditors and Cantor Fitzgerald Securities. The Agent, on behalf of the Senior Secured Creditors, claims valid, binding, enforceable and perfected first priority security interests and liens in (i) all or substantially all of Debtors' existing and after-acquired personal property, pursuant to that certain Senior Credit Facility Security Agreement; (ii) the ROC Pledged Equity Interests; (iii) the Other Pledged Equity Interest; and (iv) the Mortgage Instruments. On June 8, 2007, Riviera, as borrower, and ROC, RBH and Riviera Gaming Management of Colorado, Inc., a Colorado corporation, as guarantors, entered into that certain Credit Agreement with the lenders party thereto, with the Original Agent, which prior to the Petition Date provided for, among other things, a revolving credit facility of up to a maximum of $20,000,000 and a $225,000,000 term loan. As of the Petition Date, the Debtors' principal obligations outstanding under the Senior Credit Facility were $2,500,000 in respect of the revolving loans made under the revolving credit facility and $225,000,000 in respect of the term loan, plus accrued and unpaid interest, fees, costs and expenses under the Credit Agreement to the Petition Date in the amount of $20,271,523. On March 31, 2007, Riviera and Wachovia Bank, National Association, entered into the ISDA Master Agreement (together with all amendments, supplements, or modifications, the Secured Hedging Agreement), pursuant to which the parties entered into an interest rate swap effective May 31, 2007. Prior to the Petition Date, Wachovia terminated the Secured Hedging Agreement and participated its position thereunder to Cerberus Series Four Holdings, LLC (the Prepetition Secured Counterparty, and together with the Prepetition Secured Lenders, the Senior Secured Creditors). As of the Petition Date, the Debtors owed obligations outstanding under the Secured Hedging Agreement in the amount of $27,861,252. Gerald M. Gordon, Esq, and Thomas H. Fell, Esq., at Gordon Silver, the attorneys for the Debtors, explained that the Debtors need the money to fund their Chapter 11 case, pay suppliers and other parties. The Debtors will use the collateral pursuant to a budget, a copy of which is available for free at: http://bankrupt.com/misc/RIVIERA_BLACK_budget.pdf In exchange for using the cash collateral, the Debtors propose to: (i) grant the Agent and the Senior Secured Creditors replacement liens in the collateral, which will be senior and prior to all other interests or liens whatsoever in or on the collateral subject only to the carve out; (ii) grant the Agent and the Senior Secured Creditors allowed administrative expense Superpriority Claims; (iii) provide payment in full in cash on a monthly basis for the reasonable fees of certain professionals of the Agent and the Designated Consenting Lenders during the course of the Chapter 11 Cases; and (iv) comply with certain reporting, notice, and insurance requirements. The Court has set a final hearing for August 5, 2010, at 11:00 a.m. on the Debtor's request to use cash collateral. About Riviera Holdings Riviera Holdings, through its wholly-owned subsidiary, Riviera Operating Corporation, owns and operates the Riviera Hotel & Casino located in Las Vegas, Nevada, which consists of a hotel comprised of five towers with 2,075 guest rooms, including 177 suites, and which has traditional Las Vegas-style gaming, entertainment and other amenities. In addition, Riviera Holdings, through its wholly-owned subsidiary, Riviera Black Hawk, Inc., owns and operates the Riviera Black Hawk Casino, a casino in Black Hawk, Colorado and has various non-gaming amenities, including parking, buffet-styled restaurant, delicatessen, a casino bar and a ballroom. Riviera Holdings together with the two affiliates filed for Chapter 11 on July 12 in Las Vegas, Nevada (Bankr. D. Nev. Case No. 10-22910). Riviera Holdings' petition listed assets and debts of $100 million to $500 million. Attorneys at Gordon Silver represent the Debtors in the Chapter 11 cases. RIVIERA HOLDINGS: Gets Nod to Hire Garden City as Claims Agent -------------------------------------------------------------- Riviera Holdings Corporation, et al., sought and obtained authorization from the Hon. Linda B. Riegle of the U.S. Bankruptcy Court for the District of Nevada to employ The Garden City Group, Inc., as claims and noticing agent. GCG will, among other things: a. prepare and serve all required notices in these Chapter 11 cases; b. administer claims, and maintain of claims registers; c. acting as balloting agent; and d. provide these additional services: (i) maintain a telephone hotline to handle inquiries relating to procedures for filing proofs of claim and general case information and (ii) assist the Debtors and their professionals with (a) the preparation and maintenance of the list of all creditors and those entities filing a request for notice and (b) the formatting and filing of the Debtors' statements of financial affairs and schedules of assets and liabilities. GCG will be compensated based on its Engagement Agreement with the Debtors. A copy of the Agreement wasn't provided. To the best of the Debtors' knowledge, GCG is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. About Riviera Holdings Riviera Holdings, through its wholly-owned subsidiary, Riviera Operating Corporation, owns and operates the Riviera Hotel & Casino located in Las Vegas, Nevada, which consists of a hotel comprised of five towers with 2,075 guest rooms, including 177 suites, and which has traditional Las Vegas-style gaming, entertainment and other amenities. In addition, Riviera Holdings, through its wholly-owned subsidiary, Riviera Black Hawk, Inc., owns and operates the Riviera Black Hawk Casino, a casino in Black Hawk, Colorado and has various non-gaming amenities, including parking, buffet-styled restaurant, delicatessen, a casino bar and a ballroom. Riviera Holdings together with the two affiliates filed for Chapter 11 on July 12 in Las Vegas, Nevada (Bankr. D. Nev. Case No. 10-22910). Riviera Holdings' petition listed assets and debts of $100 million to $500 million. Attorneys at Gordon Silver represent the Debtors in the Chapter 11 cases. SALT LAKE: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: Salt Lake Wound Care and Hyperbaric Center, LLC dba Salt Lake Wound Care 3949 South 700 East, Suite 180 Salt Lake City, UT 84107 Bankruptcy Case No.: 10-29603 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court District of Utah (Salt Lake City) Judge: Joel T. Marker Debtor's Counsel: Nathan W. Drage, Esq. 35 West Broadway, Suite 104 Salt Lake City, UT 84101 Tel: (801) 519-9300 Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Richard Mucha, manager. SATER INC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Sater Inc. fdba Taylor Rental Center dba Savage Rental P.O. Box 80029 Shreveport, LA 71108 Bankruptcy Case No.: 10-12088 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court Western District of Louisiana (Shreveport) Debtor's Counsel: Robert W. Raley, Esq. 290 Benton Road Spur Bossier City, LA 71111 Tel: (318) 747-2230 Fax: (318) 747-0106 E-mail: rraley52@bellsouth.net Scheduled Assets: $371,389 Scheduled Debts: $3,580,148 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/lawb10-12088.pdf The petition was signed by Lee O. Savage, Jr., company's president. SEQUENOM INC: Mishandling of Test Delays Test for Trisomy 21 ------------------------------------------------------------ Sequenom Inc. said on April 29, 2009, that the expected launch of its noninvasive prenatal test for Trisomy 21 (Down syndrome) had been delayed due to the discovery of employee mishandling of test data and results and that it was no longer relying on its previously announced test data and results for that test. The company said. "[Its board of directors had formed a special committee of independent directors to oversee an independent investigation of the employees' activity related to the test data and results. On September 28, 2009, we announced the results of this investigation, including findings that: * the test data and results in our Trisomy 21 program included inadequately substantiated claims, inconsistencies and errors; * we failed to put in place adequate protocols and controls for the conduct of studies in the Trisomy 21 program at our company; * certain employees failed to provide adequate supervision; and * we failed to have adequate disclosure controls and procedures in place. "We terminated the employment of our Chief Executive Officer, Harry Stylli, our Senior Vice President, Research and Development, Elizabeth Dragon, and other employees. At that time, we again advised investors that our previously announced test data and results from our Trisomy 21 program should no longer be relied upon," the company said. On June 2, 2010, the Securities and Exchange Commission filed a complaint against Dr. Dragon. The complaint alleges that Dr. Dragon made or allowed for the dissemination of materially false and misleading statements regarding our Trisomy 21 test under development, thereby inflating the price of our stock. The SEC sought a permanent injunction against any future violations of the federal securities laws by Dr. Dragon, civil penalties, and imposition of an officer and director bar against her. On the same day, Dr. Dragon filed a consent to judgment of permanent injunction and other relief. In the consent to judgment, Dr. Dragon, without admitting or denying the allegations in the SEC's complaint, agreed to the permanent injunction against future violations of federal securities laws, the director and officer bar, and civil penalties to be determined by the court. On June 2, 2010, the U.S. Attorney for the Southern District of California filed a criminal information against Dr. Dragon. The criminal information charges Dr. Dragon with one count of conspiracy to commit securities fraud by conspiring to disseminate materially false and misleading statements regarding our Trisomy 21 test under development. On the same day, Dr. Dragon pled guilty to the criminal information, and the magistrate judge assigned to this matter recommended that the district court judge accept Dr. Dragon's guilty plea. A full-text copy of the complaint for violation is available for free at http://ResearchArchives.com/t/s?667c Full-text copies of the criminal information, the guilty plea and the findings and recommendation of the magistrate judge are available for free at: http://ResearchArchives.com/t/s?667d http://ResearchArchives.com/t/s?667e http://ResearchArchives.com/t/s?667f About Sequenom Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. The Company's balance sheet for March 31, 2010, showed $70.6 million total assets and $15.5 million total current liabilities, for a $50.0 million stockholders' equity. Ernst & Young LLP of San Diego, California, has expressed substantial doubt against Sequenom's ability as a going concern. The auditor noted that the Company has incurred recurring operating losses and does not have sufficient working capital to fund operations through 2010. SERMO GROUP: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Sermo Group LLC 69-27 66th Road Middle Village, NY 11379 Bankruptcy Case No.: 10-46562 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Elizabeth S. Stong Debtor's Counsel: Vincent Spata, Esq. 8118 13th Avenue Brooklyn, NY 11228 Tel: (718) 928-9406 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 Frank Sercia, company's president. SHERIDAN GROUP: Moody's Retains Stable Outlook on 'B2' Rating ------------------------------------------------------------- Moody's Investors Service commented that the ratings outlook of The Sheridan Group, Inc., remains stable at the B2 corporate family rating level. The stable ratings outlook assumes the company extends its maturity profile, and inability to do so in a timely manner could result in an outlook revision. Sheridan's revolver (no borrowings as of March 31, 2010) matures in March 2011 and its bonds (approximately $143 million outstanding as of March 31, 2010) in August 2011, posing refinancing risk. The company's recent debt reduction and positive free cash flow improve its refinancing prospects, in Moody's opinion. However, Moody's considers leverage of 3.7 times debt-to-EBITDA (as per Moody's standard adjustments) high in light of the industry's weak growth prospects. Sheridan's liquidity remains adequate, supported by internally generated cash flow and the approximately $4.5 million of balance sheet cash as of March 31, 2010. The ability to service debt with internal sources over the next year is key to Moody's assessment given the March 2011 maturity of the revolver. The last rating action on Sheridan was the affirmation of the ratings and stable outlook on August 9, 2007. The Sheridan Group Inc.'s ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of Sheridan's core industry and Sheridan's ratings are believed to be comparable to those of other issuers of similar credit risk. Headquartered in Hunt Valley, Maryland, The Sheridan Group offers printing services to the journal, catalog, magazine, book and article reprint markets. Its annual sales are approximately $300 million. SHERWOOD FARMS: Has Until Tomorrow to Propose Reorganization Plan ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida extended until tomorrow, July 23, 2010, Sherwood Farms, Inc.'s exclusive period to file a plan of reorganization. Groveland, Florida-based Sherwood Farms, Inc., is a grower and wholesaler of orchids. Sherwood said owes $7 million to first and second-lien lenders. Sherwood said in a filing that cash, accounts receivable, inventory, and real property are worth $8 million. The Company filed for Chapter 11 bankruptcy protection on January 15, 2010 (Bankr. M.D. Fla. Case No. 10-00578). Mariane L. Dorris, Esq., at Latham Shuker Eden & Beaudine LLP, 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. The Company's affiliate, Sherwood Investments Overseas Limited Incorporated, filed a separate Chapter 11 petition. SMURFIT-STONE: Proposes Reserve Amount for Carroll Claim -------------------------------------------------------- Richard Carroll filed a $10,100,000 claim against Smurfit-Stone. In one of their notices, the Debtors established $1,200,000 for Mr. Carroll's claim. In the Response, Mr. Carroll noted that he objects to the Debtors' Chapter 11 Plan to the extent the Plan works to disallow the Claim unless he files a motion seeking allowance or estimation of his Claim prior to the Confirmation Hearing. He also argued that when he filed the Claim, there were no objections made by the Debtors. Therefore, he shouldn't be required to file a request to estimate the Claim and the amount should remain at $10,100,000. After Mr. Carroll filed the Response, the Debtors and Mr. Carroll worked together and resolved the issues between them through a proposed order. The Court subsequently entered the Proposed Order, pursuant to which the Distribution Reserve Amount for the Carroll Claim is increased from $1,200,000 to $2,000,000. The Order also provides that Mr. Carroll is not prejudiced from seeking payment from available insurance policy proceeds to the extent the Carroll Claim is liquidated in an amount that exceeds the Reserve Amount, as the Reserve Amount is equal to the Debtors' self-insured retention, and does not include any of the Debtors' insurance policies whose proceeds would cover awards in excess of the Reserve Amount. About Smurfit-Stone Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/-- is one of the leading integrated manufacturers of paperboard and paper-based packaging in North America and one of the world's largest paper recyclers. The Company operates 162 manufacturing facilities that are primarily located in the United States and Canada. The Company also owns roughly one million acres of timberland in Canada and operates wood harvesting facilities in Canada and the United States. The Company employs roughly 21,250 employees, 17,400 of which are based in the United States. For the quarterly period ended September 30, 2008, the Company reported roughly US$7.450 billion in total assets and US$5.582 billion in total liabilities on a consolidated basis. Smurfit-Stone and its U.S. and Canadian subsidiaries filed for Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead Case No. 09-10235). Certain of the company's affiliates, including Smurfit-Stone Container Canada Inc., a wholly owned subsidiary of SSCE, and certain of its affiliates, filed to reorganize under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice in Canada. Smurfit-Stone joined pulp- and paper-related bankruptcies as rising Internet use hurts magazines and newspapers. Corporacion Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy in October. Quebecor World Inc., a magazine printer and Pope & Talbot Inc., a pulp-mill operator, also sought cross-border bankruptcies for their operations in the U.S. and Canada. James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M. Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware, serve as the Debtors' bankruptcy counsel. PricewaterhouseCoopers LLC, serves as the Debtors' financial and investment consultants. Lazard Freres & Co. LLC acts as the Debtors' investment bankers. Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and claims agent. The company's Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court on June 21, 2010, and recognized by a Canadian court order, became effective July 1. The Plan provides that 2.25% of the new Smurfit-Stone common stock pool will be distributed pro rata to the Company's previous preferred stockholders and 2.25% percent of the New Smurfit-Stone common stock pool will be distributed pro rata to the Company's previous common stockholders. SMURFIT-STONE: Reaches Settlement With California ------------------------------------------------- During the confirmation process of Smurfit-Stone's Chapter 11 Plan of Reorganization, the People of the State of California asked the Court to have their claims estimated at $1,000,000 each. California filed two claims against the Debtors: Claim No. 4857 against Smurfit-Stone Container Corporation, and Claim No. 4856 against Smurfit-Stone Container Enterprises, Inc. Both Claims are based on alleged unfair competition in violation of the California Business and Professions Code arising from the Debtors' handling and reporting of workers' compensation claims and industrial injuries of their employees. Before the Petition Date, two former employees of Debtor Smurfit- Stone Container Enterprises, Inc.: David Polk and Douglas Tetaoka, were tried and plead guilty in the Superior Court of the State of California for the County of Monterey for engaging in workers' compensation fraud during their employment. Despite the Defendants' guilty plea, the District Attorney's office of Monterey County asserted that the Debtors themselves could be liable for violations of numerous California laws in the California Action. The Parties discussed an amicable resolution and reached a resolution, pursuant to which California's Claim will be liquidated and paid in exchange for California's withdrawal of its objections. The Settlement was subsequently approved by the Court, and the Debtors paid these amounts: -- $100,000 to the Monterey County District Attorney's Office as civil penalties; -- $4,293 to the Monterey D.A.'s office as share of restitution payable to alleged victims; and -- $710 to the Monterey County Superior Court as first appearance fees. In addition, approval of the Settlement also granted California relief from the automatic stay to file a complaint against the Debtors in the Superior Court of California. About Smurfit-Stone Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/-- is one of the leading integrated manufacturers of paperboard and paper-based packaging in North America and one of the world's largest paper recyclers. The Company operates 162 manufacturing facilities that are primarily located in the United States and Canada. The Company also owns roughly one million acres of timberland in Canada and operates wood harvesting facilities in Canada and the United States. The Company employs roughly 21,250 employees, 17,400 of which are based in the United States. For the quarterly period ended September 30, 2008, the Company reported roughly US$7.450 billion in total assets and US$5.582 billion in total liabilities on a consolidated basis. Smurfit-Stone and its U.S. and Canadian subsidiaries filed for Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead Case No. 09-10235). Certain of the company's affiliates, including Smurfit-Stone Container Canada Inc., a wholly owned subsidiary of SSCE, and certain of its affiliates, filed to reorganize under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice in Canada. Smurfit-Stone joined pulp- and paper-related bankruptcies as rising Internet use hurts magazines and newspapers. Corporacion Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy in October. Quebecor World Inc., a magazine printer and Pope & Talbot Inc., a pulp-mill operator, also sought cross-border bankruptcies for their operations in the U.S. and Canada. James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M. Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware, serve as the Debtors' bankruptcy counsel. PricewaterhouseCoopers LLC, serves as the Debtors' financial and investment consultants. Lazard Freres & Co. LLC acts as the Debtors' investment bankers. Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and claims agent. The company's Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court on June 21, 2010, and recognized by a Canadian court order, became effective July 1. The Plan provides that 2.25% of the new Smurfit-Stone common stock pool will be distributed pro rata to the Company's previous preferred stockholders and 2.25% percent of the New Smurfit-Stone common stock pool will be distributed pro rata to the Company's previous common stockholders. SMURFIT-STONE: SSCC Merges With SSCEI, Issues New Shares -------------------------------------------------------- Pursuant to the confirmed and declared effective Joint Proposed Plan of Reorganization and Plan of Compromise and Arrangement and Disclosure Statement Plan filed by Smurfit-Stone Container Corporation and its U.S. and Canadian subsidiaries, on the Plan Effective Date, prior to the distribution of securities, SSCC merged with and into Smurfit-Stone Container Enterprises, Inc., a wholly-owned subsidiary of SSCC, with the Company surviving the merger and becoming "Reorganized SSCC" under the Plan. In connection with the Merger, the Company changed its corporate name to "Smurfit-Stone Container Corporation." In Form 8-K filed with the Securities and Exchange Commission on July 7, 2010, the Debtors disclosed that they have entered into a "Merger Agreement", which also provides that (i) all shares of common and preferred stock of Old SSCC issued and outstanding immediately prior to the Merger converted into the right to receive shares of New SSCC Common Stock of the Company as provided in the Plan and (ii) all shares of common stock of the Company issued and outstanding immediately prior to the Merger and all rights in respect thereof were cancelled. Furthermore, the certificate of incorporation and bylaws of Old SSCC in effect immediately prior to the Merger became the certificate of incorporation and bylaws of the Company and the directors and officers of Old SSCC immediately prior to the Merger became the directors and officers of the Company. Immediately after the Merger, among other things, the Company issued additional shares of New SSCC Common Stock, certain directors were appointed to and removed from the Company's Board of Directors, and the Company amended and restated its certificate of incorporation and bylaws. Prior to the Effective Date, Smurfit-Stone Container Canada Inc. and Smurfit-MBI were the Company's principal Canadian operating subsidiaries. Pursuant to the Plan, the Debtors established a newly formed partnership, Smurfit-Stone Container Canada, L.P. which is ultimately controlled by New SSCC. On the Effective Date, Canadian Newco, SSC Canada, SMBI, MBI Limited/Limitee, BC and Francobec entered into and consummated the transactions contemplated by an Asset Purchase Agreement, pursuant to which Canadian Newco purchased the assets owned by SSC Canada, SMBI, BC and Francobec and assumed certain liabilities of SSC Canada, SMBI, BC and Francobec. The cash consideration paid by Canadian Newco in the Canadian Asset Sale totaled approximately $440,800,481, which includes: * the repayment of the Prepetition Canadian Revolving Loans; * the repayment of the Prepetition Canadian Term Loans; * the payment of the Other Secured Claims against SSC Canada, SMBI, MBI, BC and Francobec; * the payment of the Administrative Expense Claims, Post- Filing Claims and the amounts secured by the CCAA Charges; and * cash in the amount of $19.5 million for each of the SSC Canada Distribution Pool and the SMBI Distribution Pool. In addition, the consideration paid by Canadian Newco in the Canadian Asset Sale included the assumption by Canadian Newco of the liabilities of SSC Canada and SMBI under the Canadian Collective Bargaining Agreements, the Canadian Pension Plans including all unfunded liabilities and the Canadian Employee Benefit Plans. A copy of the SEC filing is available for free at: http://researcharchives.com/t/s?66c1 Smurfit-Stone Stock Falls After Exit The stocks of Smurfit-Stone Container Corporation fell 11 percent on its first day of trading in the New York Stock Exchange after its exit from bankruptcy, Bloomberg News reported. Shares declined $2.75 to $22 at 4:15 p.m. in NYSE trading, Bloomberg's July 1 report noted. Smurfit-Stone stocks are rated new "Underperform" at BMO Capital Markets by Stephen Atkin, an equity analyst, Bloomberg News reports. The target price of the Stocks for a 12-month period is $20 per share. Despite the fall of investor confidence evidenced by the low price of shares, Patrick Moore assures the public that his company is not looking to sell itself contrary to speculations, Acquisitions, Tenders & Distressed News reports. About Smurfit-Stone Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/-- is one of the leading integrated manufacturers of paperboard and paper-based packaging in North America and one of the world's largest paper recyclers. The Company operates 162 manufacturing facilities that are primarily located in the United States and Canada. The Company also owns roughly one million acres of timberland in Canada and operates wood harvesting facilities in Canada and the United States. The Company employs roughly 21,250 employees, 17,400 of which are based in the United States. For the quarterly period ended September 30, 2008, the Company reported roughly US$7.450 billion in total assets and US$5.582 billion in total liabilities on a consolidated basis. Smurfit-Stone and its U.S. and Canadian subsidiaries filed for Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead Case No. 09-10235). Certain of the company's affiliates, including Smurfit-Stone Container Canada Inc., a wholly owned subsidiary of SSCE, and certain of its affiliates, filed to reorganize under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice in Canada. Smurfit-Stone joined pulp- and paper-related bankruptcies as rising Internet use hurts magazines and newspapers. Corporacion Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy in October. Quebecor World Inc., a magazine printer and Pope & Talbot Inc., a pulp-mill operator, also sought cross-border bankruptcies for their operations in the U.S. and Canada. James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M. Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware, serve as the Debtors' bankruptcy counsel. PricewaterhouseCoopers LLC, serves as the Debtors' financial and investment consultants. Lazard Freres & Co. LLC acts as the Debtors' investment bankers. Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and claims agent. The company's Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court on June 21, 2010, and recognized by a Canadian court order, became effective July 1. The Plan provides that 2.25% of the new Smurfit-Stone common stock pool will be distributed pro rata to the Company's previous preferred stockholders and 2.25% percent of the New Smurfit-Stone common stock pool will be distributed pro rata to the Company's previous common stockholders. STONEWALL STALLIONS: Files for Bankruptcy Under Chapter 11 ---------------------------------------------------------- Ron Mitchell at Bloodhorse.com reports that Stonewall Stallions filed for bankruptcy under Chapter 11 following a lawsuit filed by JPMorgan Chase claiming that the company has defaulted on more than $7 million in loans. The bankruptcy filing, according to the report, blocked the appointed of a receiver to manage the company. Stonewall Stallion operates a thoroughbred stallion farm. STRATOS GLOBAL: S&P Withdraws Long-Term Issuer & Debt Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services said it withdrew all its long- term issuer and debt ratings, and recovery ratings on Canada-based satellite communications provider Stratos Global Corp. In April 2009, Standard & Poor's Ratings Services said it raised its long-term corporate credit rating on Newfoundland-based satellite communications provider Stratos Global Corp. two notches to 'BB' from 'B+'. The withdrawal follows the repayment of all of Stratos' outstanding debt in June 2010, and is in accordance with the company's request. As it had announced in May, Stratos' parent company, Inmarsat PLC (indirect owner of Inmarsat Holdings Ltd.; BB+/Stable/--), has repaid all of Stratos' debt ahead of a reorganization plan that includes making Stratos an indirect 100%- owned subsidiary of Inmarsat Group Ltd., which is the top holding company in Inmarsat's restricted group, as defined under its $500 million senior secured facilities and its $650 million unsecured notes' indentures. Stratos had about $296 million of gross debt at year-end 2009, including about $87 million of its originally issued $150 million unsecured notes, with the remainder held by Inmarsat. SUDS USA: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------ Debtor: Suds USA, LLC dba Suds Car Wash 1541 W Martin Luther King Dr. Fayetteville, AR 72701 Bankruptcy Case No.: 10-73710 Chapter 11 Petition Date: July 18, 2010 Court: United States Bankruptcy Court Western District of Arkansas (Fayetteville) Judge: Ben T. Barry Debtor's Counsel: Stanley V. Bond, Esq. P.O. Box 1893 Fayetteville, AR 72701-1893 Tel: (479) 444-0255 Fax: (479) 444-7141 E-mail: attybond@me.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 9 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/arwb10-73710.pdf The petition was signed by Stanely Rogers, manager. TAGISH LAKE: New Pacific Formally Commences Offer to Acquire Firm ----------------------------------------------------------------- New Pacific Metals Corp. has commenced its formal offer to purchase all of the outstanding common shares and secured and unsecured debt of Tagish Lake Gold Corp. New Pacific has filed its take-over bid circular on SEDAR and will mail the Circular to all Tagish Lake securities holders. Offer to Shareholders: The Offer permits Tagish Lake shareholders, for each Tagish Lake share tendered to the Offer to choose between: a. $0.06 per share in cash; or b. 0.0822 of a New Pacific share, at an implied price of $0.73 per New Pacific share, being the 20 day volume-weighted average closing price of New Pacific shares on the TSX Venture Exchange on July 2, 2010 (being the last trading day prior to the announcement of New Pacific's intention to make an offer to acquire Tagish Lake); or c. a combination of 50% in cash and 50% in New Pacific shares (the "Combined Election"). New Pacific is concurrently offering to purchase for cash the approximately $7.4 million in secured and unsecured debt on the books of Tagish Lake, which would enable Tagish Lake to remove itself from Companies Creditors Arrangement Act protection from creditors. Offer to Secured Creditors: New Pacific is offering to pay Secured Creditors 100% of their proven claim amounts in cash with no conditions. Secured Creditors who accept the offer will be paid regardless of the outcome of the takeover bid Offer to Unsecured Creditors: New Pacific is offering to pay Unsecured Creditors 100% of the value of their proven claim amounts in cash, subject to certain conditions, including the minimum tender condition under the takeover bid being satisfied and New Pacific taking up and paying for common shares under the Offer. The Offer for the Tagish Lake common shares represents a premium of 50% over Tagish Lake's closing share price on July 2, 2010 and a 50% premium to Tagish Lake's 20-day and year to date VWAP on the TSXV. The Offer also represents a premium of approximately 860% over the value implied in the failed acquisition proposed by YS Mining Company Inc. for Tagish Lake in 2009. YS Mining is the principal secured creditor and a shareholder of Tagish Lake. The proposed transaction with YS Mining was approved by the Tagish Lake Board of Directors and valued Tagish Lake at $0.00625 per share or $811,375 for the entire company. The transaction did not receive approval from the TSXV and was subsequently terminated. The Offer also saves Tagish Lake from the potential risk of bankruptcy, or seizure of its Skukum Mineral district properties by secured creditors, and represents a superior alternative to the current situation where Tagish Lake management has petitioned the company into protection under the CCAA. The CCAA protection commenced April 9, 2010, and Tagish Lake management have yet to present a restructuring plan to settle Tagish Lake's debts. The Honourable Jack Austin, Chairman of New Pacific said: "We are offering Tagish Lake shareholders a choice: tender to our offer to receive liquidity, value and certainty or face a risky future with Tagish Lake, whose plan is expected to involve a debt restructuring or liquidation of Tagish Lake's principal asset under the CCAA process. Tagish Lake shareholders also have the opportunity to participate in the future development of the Skukum mineral district if they elect to take New Pacific shares under the Offer." Some important considerations for Tagish Lake shareholders include: -- YS Mining is a wholly owned subsidiary of Yukon-Shaanxi Mining Company, a joint venture between Yukon-Nevada Gold Corp., and Northwest Non-Ferrous International Investment Company Limited. In November 2009 YS Mining acquired from Macquarie Bank the $1.5 million credit facility secured against the Skukum Creek gold property that was then in default. YS Mining also owns as of record approximately 10.8% of the Outstanding common shares of Tagish Lake. -- In contravention of corporate law and TSXV requirements, an annual general meeting of the Tagish Lake shareholders has not been held since March 2007. Only Robert Chaffee has actually been elected by Tagish Lake shareholders. All other directors were appointed by existing directors. -- Tagish Lake is now effectively controlled by its principal Secured creditor, YS Mining. Graham Dickson, the CEO and President of Tagish Lake, is the President and CEO of YS Mining and the COO of Yukon-Nevada Gold Corp, which is a 42% joint venture partner in YS Mining. The Corporate Secretary of Tagish Lake is also the Corporate Secretary of Yukon-Nevada Gold. -- All current Board members of Tagish Lake are connected in some respect to YS Mining or to YS Mining's 42% shareholder, Yukon- Nevada Gold: Messrs. Dickson and Sun are also directors of YS Mining; Robert Chafee, Neil Steenberg, and Peter Holbek were previously Directors of Yukon-Nevada Gold. On July 6, 2010, Tagish Lake announced the appointment of John H. Resing to the Tagish Lake Board. Messrs. Resing and Chafee were management nominees for director of Yukon-Nevada Gold, as set out in Yukon-Nevada's April 14, 2010 Information Circular, although it does not appear that either was elected. Tagish Lake later announced, on July 15, 2010, that concurrently with the appointment of Mr. Resing, Ren Xiaohua, who is currently a director of YS Mining, resigned as a director of Tagish Lake on or about the same day that Mr. Resing waa appointed to the Tagish Lake Board and Mr. Ren resigned, the President of Tagish Lake advised New Pacific that an independent committee had been formed to consider the Offer. Mr. Resing was appointed as the chair of the independent committee. It appears that the Board of Directors and the management of Tagish Lake are closely aligned with YS Mining, the principal creditor and a major shareholder of Tagish Lake. It is the current Board and management team that petitioned Tagish Lake into CCAA protection. Background to the Offer From late February 2010 until prior to announcing this Offer on July 5, 2010, New Pacific, through its management and through intermediaries, attempted to engage Tagish Lake's management or Directors in discussions regarding a possible transaction. No meaningful discussions resulted from these efforts. On July 2, New Pacific presented a written proposal to the Board of Tagish Lake offering to immediately pay off and take an assignment of any outstanding secured loans and to agree not to enforce any security for at least one year, in conjunction with a friendly acquisition of Tagish Lake at $0.06 per common share, pursuant to a statutory Plan of Arrangement. Mr. Dickson advised New Pacific that Tagish Lake was unable to respond within the time contemplated in the proposal, after which New Pacific publicly announced its intentions in order to comply with applicable law and stock exchange rules. Representatives of New Pacific and Tagish Lake have met since July 5 but were unable to progress discussions based on the New Pacific proposal, with the Tagish Lake independent committee taking the position that they were unable to consider the proposal since it was not a formal offer and did not include a term sheet. New Pacific has therefore reluctantly decided to make its proposal directly to Tagish Lake shareholders and creditors, although New Pacific remains open to discussions with the Tagish Lake board, at their discretion. Once New Pacific is successful in acquiring control of Tagish Lake, its priority will be to have Tagish Lake removed from CCAA protection and direct Tagish Lake to make any related court applications, to call an annual general meeting to elect directors, to replace current management, to settle all of its debts, to arrange financing for operating capital, and to use New Pacific's recognized financing, development and mining expertise to rapidly advance Tagish Lake's Skukum mineral district properties towards production. New Pacific currently holds 14.3 million shares of Tagish Lake, which were acquired in the market at prevailing prices. This represents approximately 9.9% of Tagish Lake's issued and outstanding shares. New Pacific may acquire additional Tagish Lake shares during the course of the bid and if it does so it will advise the market in accordance with applicable securities laws. The Offer is open for acceptance until 8:00 p.m. (Vancouver time) on September 2, 2010 unless it is extended or withdrawn. The Offer, and the offer to Unsecured Creditors, is subject to certain customary conditions including: a minimum tender threshold of 66 2/3% of the Tagish Lake Shares, receipt of all required regulatory approvals and third-party consents, the absence of any material adverse change in Tagish Lake; the absence of certain prohibited activities on the part of Tagish Lake between the date hereof and the expiry of the Offer; and no untrue statements or omissions in Tagish Lake's public disclosure. Investors may obtain a free copy of the Circular and other documents filed by New Pacific with the Canadian securities regulators at http://www.sedar.com The Circular and other documents may also be obtained for free from New Pacific's website or by directing a request to New Pacific's investor relations department by telephone at 1-888-224-1881, fax 604-669-9387 or e- mail info@newpacificmetals.com : mailto:info@newpacificmetals.com or by contacting the Information Agent, Kingsdale Shareholder Services Inc., toll free at 1-888-518-6812. Secured and Unsecured Creditors of Tagish Lake may obtain more information by contacting New Pacific at the above phone numbers, or by email to: debtinfo@newpacificmetals.com : mailto:debtinfo@newpacificmetals.com About New Pacific Metals New Pacific -- http://www.newpacificmetals.com-- is engaged in the exploration and development of mineral resources, gold-poly- metallic projects in China and other jurisdictions. New Pacific has extensive experience in implementing high grade resource development projects. TEXAS RANGERS: Four Groups May Compete with Ryan at Auction ----------------------------------------------------------- Michael Bathon at Bloomberg News reports that the Texas Rangers have as many as four potential bidders that may compete in an auction to buy the baseball team besides a group led by Hall of Fame pitcher Nolan Ryan, Chief Restructuring Officer William Snyder said. According to the report, Houston businessman Jim Crane, who unsuccessfully bid for the team before its bankruptcy, is one of the potential bidders, Mr. Snyder said. Dallas businessman Jeff Beck is another. The remaining two haven't been disclosed. Mr. Snyder said the unidentified bidders have done very limited work, and one has only made two phone calls regarding the sale. U.S. Bankruptcy Judge D. Michael Lynn, Bloomberg relates, held a hearing on whether to revise the schedule under which the team will be sold at an auction currently planned for Aug. 4. The hearing will continue July 22. "The bidding procedures do not provide sufficient time for potential bidders to be able to participate meaningfully in the sale process and are too skewed to the advantage" of the Ryan group, lawyers for lenders said in July 15 court papers urging Judge Lynn to delay the auction. Under the new sale procedures, the Debtor will hold an auction on Aug. 4, if competing bids are submitted by Aug. 3. The group led by current team President Nolan Ryan and sports lawyer Chuck Greenberg originally signed prepetition a contract to purchase the club for about $304 million cash. The group has now agreed to modify the original contract by raising the price to $306.7 million. In addition, they sweetened the offer by lowering an escrow holdback from $30 million to $10 million and by not forcing other purchasers to take over the lease for the team airplane. If the Ryan-Greenberg group is outbid, they would receive a $15 million breakup fee. In return for the fee, the stalking-horse agreed to waive exclusivity provisions in the May contract. Before the auction, other bidders must be approved by Major League Baseball. About Texas Rangers Texas Rangers Baseball Partners owns and operates the Texas Rangers Major League Baseball Club, a professional baseball club in the Dallas/Fort Worth Metroplex. TRBP is a Texas general partnership, in which subsidiaries of HSG Sports Group LLC own a 100% stake. Controlled by Thomas O. Hicks, HSG also indirectly wholly-owns Dallas Stars, L.P., which owns and operates the Dallas Stars National Hockey League franchise. The Texas Rangers have had five owners since the club moved to Arlington in 1972. Mr. Hicks became the fifth owner in the history of the Texas Rangers on June 16, 1998. In its petition, Texas Rangers Baseball Partners said it had both assets and debt of less than $500 million. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtor. Forshey & Prostok LLP serves as conflicts counsel. Parella Weinberg Partners LP serves as financial advisor. Lenders to the Texas Rangers sought to force the baseball team's equity owners -- Rangers Equity Holdings, L.P. and Rangers Equity Holdings GP, LLC -- into bankruptcy court protection (Bankr. N.D. Tex. Case No. 10-43624 and 10-43625). The lenders, a group that includes investment funds Monarch Alternative Capital and Kingsland Capital Management, filed an involuntary bankruptcy petition on May 28 against the two companies. The two companies were not included in the May 24 Chapter 11 filing of TRBP. TEXAS RANGERS: JPMorgan Sues to Keep Stadium Lease -------------------------------------------------- Steven Church at Bloomberg News reports that JPMorgan Chase & Co. sued the Texas Rangers, claiming the baseball team breached the terms of a loan by taking over the lease for its stadium, Rangers Ballpark. According to the report, the July 16 complaint said that transferring the lease to Texas Rangers Baseball Partners makes it harder for lenders to collect at least $411 million owed by the team's owner, Tom Hicks's HSG Sports Group LLC, JPMorgan Bloomberg relates that when HSG borrowed the money, it agreed that certain units and affiliates would help pay back the loan if necessary. The HSG unit that controlled the lease was obligated to repay the full amount while Texas Rangers Baseball Partners was liable only for $75 million, New York-based JPMorgan said in court documents. 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. TOG PROPERTIES: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: TOG Properties, LLC 150 Bradley Place Palm Beach, FL 33480 Bankruptcy Case No.: 10-05655 Chapter 11 Petition Date: July 16, 2010 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: George M. Oliver, Esq. Oliver & Friesen, PLLC P.O. Box 1548 New Bern, NC 28563 Tel: (252) 633-1930 Fax: (252) 633-1950 E-mail: efile@oliverandfriesen.com Estimated Assets: $0 to $50,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 4 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nceb10-05655.pdf The petition was signed by Richard S. Weinstein, member manager of 2 Map, LLC, Debtor's manager. TRANS ENERGY: Secures Forbearance from CIT Capital Until Oct. 29 ---------------------------------------------------------------- Trans Energy, Inc., and CIT Capital USA Inc., on July 9, 2010, entered into a forbearance letter agreement whereby CIT agreed to forebear from exercising its rights and remedies against the Company and its property until October 29, 2010. The July Forbearance Letter provides: -- The Company must submit to CIT an operating budget on a weekly basis and conduct bi-weekly status calls with CIT to review its operating budget and discuss any variances therefrom. -- The Company must provide CIT with an updated monthly budget for calendar year 2010 on or before July 15, 2010 and an updated reserve report by July 31, 2010. -- All outstanding forbearance fees, including outstanding delinquency charges payable pursuant to the forbearance letters of June 18, 2010 and June 25, 2010 and an additional delinquency charge of $100,000, are payable on the earlier of (i) July 31, 2010 or (ii) upon the closing of the sale of certain assets by the Company. At the election of CIT, the forbearance fees are payable in either cash or five-year warrants to purchase shares of the Company's common stock. -- The Company shall retain Oppenheimer & Co. Inc. as its restructuring advisor during the forbearance period. -- If the Company sells assets, it shall be permitted to retain the first $5 million of cash proceeds and all additional amounts realized would be applied to the outstanding debt to CIT. -- If any portion of the debt remains outstanding, the Company will be obligated to pay an additional forbearance fee of $150,000 on September 15, 2010 and $150,000 on October 29, 2010, payable in either cash or five-year warrants to purchase shares of the Company's common stock. -- The outstanding debt will continue to accrue interest until paid. As of July 9, 2010, the aggregate indebtedness, including accrued interest, fees and expenses, was $32,320,239. The Company is working with its financial advisor and investment banker in an effort to restructure the credit agreement, sell certain assets or arrange for alternative financing. If the Company is unable to restructure the credit agreement or arrange for alternative financing, the agreement will be in default and the principal amount and accrued interest and fees would become immediately due. West Virginia-based Trans Energy, Inc. -- http://www.transenergyinc.com/-- is an independent exploration and production company focused on exploring, developing and producing oil and natural gas in the Appalachian Basin. The common shares of the Company are listed for trading on the Over The Counter Bulletin Board under the symbol "TENG". TROPICANA ENT: Adamar of NJ Wins Nod to Expand JH Cohn Work ----------------------------------------------------------- Pursuant to Section 327(a) of the Bankruptcy Code, New Jersey Debtors Adamar of New Jersey, Inc., and Manchester Mall, Inc., obtained approval from the Bankruptcy Court for the District of New Jersey to expand the scope of services of their financial advisors, J.H. Cohn LLP, to include the preparation of: (a) The NJ Debtors' federal and New Jersey tax returns for the year ending December 31, 2009, and the period commencing from January 1, 2010, through and including June 9, 2010; and (b) Adamar of NJ In Liquidation, LLC's federal and New Jersey income tax returns for the period commencing from June 9, 2010, through and including the earlier of its dissolution or December 31, 2010. In accordance with the Amended and Restated Purchase Agreement for the sale of substantially all of the NJ Debtors' assets and corresponding Sale order, the NJ Debtors have merged into Adamar of NJ In Liquidation, LLC. J.H. Cohn intends to bill for the tax return preparation work in accordance with its hourly billing rates: Partners $550 - $720 Manager, Sr. manager, Director $420 - $550 Other professional staff $185 - $360 Staff, paraprofessional $155 - $175 In the normal course of business, J.H. Cohn notes that it revises its hourly rates on February 1 of each year. The Firm also intends to seek reimbursement for actual and necessary expenses it incurred or will incur in connection with the contemplated services. Bernard A. Katz, a partner of J.H. Cohn, relates that his Firm has agreed to cap its professional fees. Thus, $45,000 will be billed for the preparation of the NJ Debtors' federal and New Jersey income tax returns for the year ending December 31, 2009, and the period commencing from January 1, 2010, through and including June 9, 2010; and $4,500 will be billed for Adamar In Liquidation's federal and New Jersey income tax returns for the period commencing from June 9, 2010, through and including the earlier of dissolution or December 31, 2010. Mr. Katz maintains that J.H. Cohn does not hold or represent any interest materially adverse to the NJ Debtors or their estates. The Firm remains a disinterested person within the meaning of Sections 327(a) and 101(14) of the Bankruptcy Code, Mr. Katz attests. About Tropicana Entertainment Tropicana Entertainment LLC and its units owned eleven casino properties in eight distinct gaming markets with premier properties in Las Vegas, Nevada, and Atlantic City, New Jersey. Tropicana Entertainment LLC and certain affiliates filed for Chapter 11 protection on May 5, 2008 (Bankr. D. Del. Case No. 08- 10856). Kirkland & Ellis LLP and Mark D. Collins, Esq., at Richards Layton & Finger, represent the Debtors in their restructuring efforts. Their financial advisor is Lazard Ltd. Their notice, claims, and balloting agent is Kurtzman Carson Consultants LLC. Epiq Bankruptcy Solutions LLC is the Debtors' Web site administration agent. AlixPartners LLP is the Debtors' restructuring advisor. Stroock & Stroock & Lavan LLP and Morris Nichols Arsht & Tunnell LLP represent the Official Committee of Unsecured Creditors in this case. Capstone Advisory Group LLC is financial advisor to the Creditors' Committee. The OpCo Debtors, a group of Tropicana entities owning casinos and resorts in Atlantic City, New Jersey and Evansville, Indiana obtained confirmation from the Bankruptcy Court of a reorganization plan. On April 29, 2009, non-debtor units of the OpCo Debtors, designated as the New Jersey Debtors -- Adamar of New Jersey, Inc., and its affiliate, Manchester Mall, Inc. -- filed for Chapter 11 (Bankr. D. N.J. Lead Case No. 09- 20711) to effectuate a sale of the Atlantic City Resort and Casino to a group of Investors-led by Carl Icahn. Judge Judith H. Wizmur presides over the cases. Manchester Mall is a wholly owned subsidiary of Adamar that owns and operates certain real property utilized in the New Jersey Debtors' business operations. Effective March 8, Tropicana Entertainment successfully emerged from the Chapter 11 reorganization process as an Carl Icahn-owned entity. A group of Tropicana entities, known as the LandCo Debtors, which own Tropicana casino property in Las Vegas, have obtained approval of a separate Chapter 11 plan. Ilana Volkov, Esq., and Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, in Hackensack, New Jersey, represented the New Jersey Debtors. Kurtzman Carson Consultants LLC acts as their claims and notice agent. Adamar disclosed $500 million to $1 billion both in total assets and debts in its petition. Manchester Mall disclosed $1 million to $10 million in total assets, and less than $50,000 in total debts in its petition. Bankruptcy Creditors' Service, Inc., publishes Tropicana Bankruptcy News. The newsletter tracks the chapter 11 restructuring proceedings commenced by Tropicana Entertainment LLC and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). TROPICANA ENT: OpCo Debtors Propose Unresolved Claims Reserve ------------------------------------------------------------- The Reorganized OpCo Debtors, a group of Tropicana entities owning casinos and resorts in Atlantic City, New Jersey and Evansville, Indiana, ask the U.S. Bankruptcy Court for the District of Delaware to: (a) approve a certain Reorganized OpCo Warrants Reserve Procedure, including the estimation and establishment of the Reorganized OpCo Warrants Reserve; and (b) authorize a partial distribution to Allowed Class 4 OpCo General Unsecured Claims based on the Reorganized OpCo Warrants Reserve Procedure and the Reorganized OpCo Warrants Reserve. The Reorganized OpCo Debtors specifically seek to establish a reserve of Reorganized OpCo Warrants, for distribution to Holders of Allowed OpCo General Unsecured Claims, in the aggregate amount of $54,427,275. The OpCo Debtors' First Amended Plan of Reorganization provides that holders of Allowed Class 4 OpCo General Unsecured Claims are entitled to receive, among other things, their pro rata share of the Reorganized OpCo Warrants. The initial Distribution Date with respect to the Reorganized OpCo Warrants, however, has not yet occurred because certain of the OpCo General Unsecured Claims are unliquidated, contingent or may be disputed by the Reorganized OpCo Debtors, according to Zachary I. Shapiro, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. The Reorganized OpCo Debtors aver that they do not know the potential universe of Allowed OpCo General Unsecured Claims because they have not completed their claims analysis. They, however, maintain that they have made substantial progress in their claims reconciliation process. Thus, the Reorganized OpCo Debtors believe that it is appropriate and reasonably practicable to make a partial distribution of the Reorganized OpCo Warrants to Holders of Allowed OpCo General Unsecured Claims; provided that appropriate reserves can be established for disputed, contingent or unliquidated OpCo General Unsecured Claims. Proposed Reserve Procedure The Reorganized OpCo Debtors thus reviewed the filed claims to determine the appropriate amounts for the Reorganized OpCo Securities Reserves to make an initial distribution to Holders of Allowed OpCo General Unsecured Claims, and came up with this proposed procedure: * For all OpCo General Unsecured Claims that were filed in a liquidated amount of greater than $300,000 that have not yet been Allowed -- the "Potentially Disputed Liquidated Claims" -- the Reorganized OpCo Debtors propose to reserve the amount asserted on the applicable proof of claim form as the maximum amount that may be potentially be distributed to the Holder of a Potentially Disputed Liquidated Claim. * The Reorganized Debtors compiled a list of "Unliquidated Claims" for which they are unable to conclusively determine upon review if the liquidated amount of the Claim will be less than or equal to $300,000, which amount is the threshold for treatment as a Class 8 Unsecured Convenience Claim. The list includes a column on "reserve amount," which refers to the maximum dollar amount of claims for which the Debtor believe would be required to distribute Reorganized OpCo Warrants under the Plan and accordingly, for which they intend to reserve, on an aggregate basis only, on account of the Unliquidated Claims. * The Reorganized Debtors compiled a list of claims that they believe will be liquidated in an amount between $0 and $300,000 and therefore, will receive a distribution of Cash, if any, under the OpCo Plan. No Reorganized OpCo Warrants need be reserved for these type of claims. * A schedule of (i) the Potentially Disputed Liquidated Claims, (ii) Unliquidated Claims for which Reserves will be Set, and (iii) Claims to be Liquidated in the Amount of $300,000 Will Be Set, and (iv) Claims to be Liquidated in the Amount of $300,000 or Less is available at no charge at: http://bankrupt.com/misc/Tropi_ReserveAGUClaims071410.pdf * The Reorganized OpCo Debtors propose to reserve these amounts with respect to the Identified Claims: Claims Classification Reserve Amount --------------------- -------------- Potentially Disputed Liquidated Claims $40,347,275 Unliquidated Claims, Undetermined 14,080,000 Unliquidated Claims, $300,000 or below 0 * According to Mr. Shapiro, the Reorganized OpCo Debtors applied these protocols to determine the reserve amount for each Unliquidated Claim: (1) If the Claim is covered by insurance and the Reorganized OpCo Debtors have not received a demand on account of that Claim, the reserve has been set at the amount of the deductible or self-insured retention applicable to the Claim; (2) If a demand has been received, the reserve for the Claim has been set at the maximum amount of any demand received on account of that Claim; and (3) If the Claim is not covered by insurance and the Reorganized OpCo Debtors have not received any previous demand on account of the Claim, the reserve has been set at an amount estimated by the Reorganized OpCo Debtors and their advisors as the maximum potential exposure for the Claim, if determined to be meritorious. * To the extent that a Potentially Disputed Liquidated Claim or an Unliquidated Claim becomes an Allowed OpCo General Unsecured Claim in accordance with the OpCo Plan, the Distribution Agent will distribute Reorganized OpCo Warrants to the Holder of the Allowed OpCo General Unsecured Claim and the reserve of the Reorganized OpCo Warrants will be adjusted appropriately. * To the extent that a Potentially Disputed Liquidated Claim or an Unliquidated Claim is disallowed, the Reorganized OpCo Warrants reserved on account of that claim will be distributed to Holders of Allowed OpCo General Unsecured Claims in accordance with the OpCo Plan and the reserve of Reorganized OpCo Warrants will be adjusted appropriately. * The Reorganized OpCo Debtors reserve the right to make any subsequent distributions to Holders of Allowed OpCo General Unsecured Claims on a rolling basis. The Reorganized OpCo Debtors aver that before the hearing on their request, they intend to work with any party-in-interest who seek additional reserve amounts if those parties believe that the maximum potential distribution on account of an Unliquidated Claim has been estimated incorrectly. Moreover, Mr. Shapiro asserts that the proposed Reorganized OpCo Warrants Reserve Procedure does not prejudice holders of the Potentially Disputed Liquidated Claims or the Unliquidated Claims as it provides sufficient, reasonable protection to cover the maximum amounts at which those Claims could be reasonably be expected to be allowed. About Tropicana Entertainment Tropicana Entertainment LLC and its units owned eleven casino properties in eight distinct gaming markets with premier properties in Las Vegas, Nevada, and Atlantic City, New Jersey. Tropicana Entertainment LLC and certain affiliates filed for Chapter 11 protection on May 5, 2008 (Bankr. D. Del. Case No. 08- 10856). Kirkland & Ellis LLP and Mark D. Collins, Esq., at Richards Layton & Finger, represent the Debtors in their restructuring efforts. Their financial advisor is Lazard Ltd. Their notice, claims, and balloting agent is Kurtzman Carson Consultants LLC. Epiq Bankruptcy Solutions LLC is the Debtors' Web site administration agent. AlixPartners LLP is the Debtors' restructuring advisor. Stroock & Stroock & Lavan LLP and Morris Nichols Arsht & Tunnell LLP represent the Official Committee of Unsecured Creditors in this case. Capstone Advisory Group LLC is financial advisor to the Creditors' Committee. The OpCo Debtors, a group of Tropicana entities owning casinos and resorts in Atlantic City, New Jersey and Evansville, Indiana obtained confirmation from the Bankruptcy Court of a reorganization plan. On April 29, 2009, non-debtor units of the OpCo Debtors, designated as the New Jersey Debtors -- Adamar of New Jersey, Inc., and its affiliate, Manchester Mall, Inc. -- filed for Chapter 11 (Bankr. D. N.J. Lead Case No. 09- 20711) to effectuate a sale of the Atlantic City Resort and Casino to a group of Investors-led by Carl Icahn. Judge Judith H. Wizmur presides over the cases. Manchester Mall is a wholly owned subsidiary of Adamar that owns and operates certain real property utilized in the New Jersey Debtors' business operations. Effective March 8, Tropicana Entertainment successfully emerged from the Chapter 11 reorganization process as an Carl Icahn-owned entity. A group of Tropicana entities, known as the LandCo Debtors, which own Tropicana casino property in Las Vegas, have obtained approval of a separate Chapter 11 plan. Ilana Volkov, Esq., and Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, in Hackensack, New Jersey, represented the New Jersey Debtors. Kurtzman Carson Consultants LLC acts as their claims and notice agent. Adamar disclosed $500 million to $1 billion both in total assets and debts in its petition. Manchester Mall disclosed $1 million to $10 million in total assets, and less than $50,000 in total debts in its petition. Bankruptcy Creditors' Service, Inc., publishes Tropicana Bankruptcy News. The newsletter tracks the chapter 11 restructuring proceedings commenced by Tropicana Entertainment LLC and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000 UAL CORP: Profit Beats Analysts' Estimates on Higher Fares ---------------------------------------------------------- Bloomberg News reports that United Airlines parent UAL Corp. posted profit that exceeded analysts' estimates on fuller planes and higher fares. Second-quarter profit excluding some costs was $430 million, or $1.95 a share, topping the $1.75 average of 12 analysts' predictions compiled by Bloomberg. That compares with a loss of $321 million, or $2.21, a year earlier. According to the report, revenue jumped 28% to $5.16 billion as United took advantage of increasing business and leisure travel by raising fares. United and other carriers haven't added back planes that were parked during the recession, giving them more control over pricing as demand improves. About UAL Corporation Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for Chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors. Judge Eugene R. Wedoff confirmed a reorganization plan for United on Jan. 20, 2006. The Company emerged from bankruptcy on Feb. 1, 2006. Reorganized UAL Corp. carries a 'Caa1' probability of default rating from Moody's, 'B-' long term foreign issuer credit rating from Standard & Poor's, and 'CCC' long term issuer default rating from Fitch. UAL Corp. is pursuing a merger with Continental Airlines Inc. to form the world's largest carrier, UTSTARCOM INC: Inks Common Stock Agreement with Beijing E-Town -------------------------------------------------------------- UTStarcom Inc. reported on February 1, 2010, that it had entered into a Common Stock Purchase Agreement with Beijing E-town International Investment and Development Co., Ltd., and a Common Stock Purchase Agreement with Elite Noble Limited and Shah Capital Opportunity Fund LP, pursuant to which the Company proposed to issue and sell common stock to the Investors in a private placement transaction. On May 4, 2010, the Company reported that on April 30, 2010, the company and the Investors entered into an amendment to each of the Purchase Agreements to amend certain terms related to the rights of the Company and the Investors to terminate the Purchase Agreements. The Purchase Agreements initially provided that the Purchase Agreements may be terminated by either the Company or the applicable Investors under certain circumstances if the closing of the Placement had not occurred within 90 days of February 1, 2010. Under the terms of the Amendments, the Purchase Agreements may be terminated by either the Company or the Investors if closing of the Placement has not occurred within 120 days of February 1, 2010. On June 4, 2010, the Company and the Investors entered into a second amendment to each of the Purchase Agreements to amend certain terms related to the rights of the Company and the Investors to terminate the Purchase Agreements. Under the terms of the Second Amendments, the Purchase Agreements may be terminated by either the Company or the Investors if closing of the Placement has not occurred within 150 days of February 1, 2010. On July 7, 2010, the Company and the Investors entered into a third amendment to each of the Purchase Agreements to amend certain terms related to the rights of the Company and the Investors to terminate the Purchase Agreements. Under the terms of the Third Amendments, the Purchase Agreements may be terminated by either the Company or the Investors if closing of the Placement has not occurred within 180 days of February 1, 2010. As of the date hereof, the closing of the Placement has not occurred. A full-text copy of the company's amended common stock agreements is available for free at: http://ResearchArchives.com/t/s?667a http://ResearchArchives.com/t/s?667b UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a global leader in IP-based, end-to-end networking solutions and international service and support. The Company sells its solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks. The Company was founded in 1991 and is headquartered in Alameda, California. The Company's balance sheet at March 31, 2010, showed $882.9 million in total assets and $642.2 million in total liabilities for a $240.7 million stockholders' equity. Going Concern Doubt The Company has recorded operating losses in 19 of the 20 consecutive quarters in the period ended December 31, 2009. At December 31, 2009, the Company had an accumulated deficit of $1.067 billion. While operating results are expected to improve in 2010 compared with prior years, management expects the Company to continue to incur losses in 2010. VALUE CITY: Recovered Over $250,000 in Preferential Payments ------------------------------------------------------------ Value City Holdings, Inc., received almost $265,000 in preference recoveries during June 2010, netDockets Blog reports, citing a report filed by special counsel to the Company. According to netDockets Blog, starting in November of last year, Value City has filed almost 200 adversary complaints seeking recovery of allegedly preferential payments made prior to Value City's October 2008 bankruptcy filing. The report relates that through the end of June, Storch Amini & Munves has recovered over $1.48 million for Value City on account of preference actions. After the firm's fees and expenses, Value City's bankruptcy estates have received almost $1.2 million in proceeds, the report notes. About Value City Headquartered in Columbus, Ohio, Value City Holdings Inc. -- http://www.valuecity.com/-- operates a chain of department stores in the United States. The company and eight of its affiliates filed for Chapter 11 protection on Oct. 26, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-14197). John Longmire, Esq., and Lauren C. Cohen, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors' in their restructuring efforts. Epiq Bankruptcy Solutions LLC is the claims, noticing and balloting agent for the Debtors. Glenn R. Rice, Esq., at Otterbourg Steindler Houston & Rosen, PC, represents the official committee of unsecured creditors as counsel. When the Debtors filed for protection from their creditors, they listed assets and debts between $100 million and $500 million each. In November 2008, Judge James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York granted Value City Holdings permission to conduct going-out-of-business sales to be managed by liquidator and financial consultant Tiger Capital Group LLC. VENTRUS BIOSCIENCES: To Ask Bondholders to Extend Note Maturity --------------------------------------------------------------- Ventrus BioSciences, Inc., warned in a regulatory filing that as of June 30, 2010, it had outstanding convertible notes in the principal amount of $11,923,586, which mature September 10, 2010. Ventrus is planning an offering of up to $19,550,000 in common shares. A full-text copy of the Company's registration statement filed with the Securities and Exchange Commission is available at no charge at http://ResearchArchives.com/t/s?66d2 The Company intends to begin the process to obtain the consent of the holders of the convertible notes to extend the maturity date to December 31, 2010. "We might not receive the consent of any of these note holders in which event we would not be able to repay all of the notes upon their maturity, given our current cash position. The failure to repay these notes upon their maturity could subject us to lawsuits and deplete our cash reserves prior to the completion of this offering," the Company said. The Company also disclosed that as of March 31, 2010, it had outstanding promissory notes in the aggregate principal amount of $1,573,000, with accrued interest of $147,165, which have a maturity date of the earlier of December 31, 2013 or the completion of the offering, provided the Company raises net proceeds of at least $10 million. The notes are held by Paramount Credit Partners, LLC. The Company said repayment of any of the indebtedness would materially and adversely impact its intended uses for proceeds from the offering. "We expect to execute an amendment to the notes to that effect prior to the closing of this offering, but there can be no assurance that the extension will be agreed to in writing or that Paramount Credit Partners will not demand payment on the completion of this offering," the Company said. The Company expects to receive $14.5 million in net proceeds, and plans to use the net proceeds: $8 million to conduct Phase III clinical trial of iferanserin (VEN 309) in the treatment of hemorrhoids, and carcinogenicity testing, as well as developing new intellectual property; $4.2 million to pay to S.L.A. Pharma of its licensing obligations for diltiazem cream (VEN 307) and development of an improved formulation for use in Phase III studies in the U.S. on completion of S.L.A. Pharma's European study and payment to S.L.A. Pharma of the Company's licensing obligations for phenylephrine gel, and preparation of a Phase II clinical trial; and $2.3 million for general and administrative expenses Ventrus Biosciences, Inc., is a specialty pharmaceutical company focused on the development and commercialization of late-stage prescription drugs for gastrointestinal disorders, specifically hemorrhoids, anal fissures and fecal incontinence. VERENIUM CORP: Marxe and Greenhouse Sell 80,571 Shares ------------------------------------------------------ Austin W. Marxe and David M. Greenhouse disclosed selling 80,571 shares of Verenium Corporation common stock on June 30, 2010, for $2.3965 a share. They now hold 1,373,212 shares after the deal. They indirectly hold those shares. Messrs. Marxe and Greenhouse share voting and investment control over all securities owned by Special Situations Fund III QP, LP (QP) and Special Situations Cayman Fund, L.P. According to their filing, 942,587 shares of Common Stock are held by QP and 430,625 shares of Common Stock are held by Cayman. The interest of Messrs. Marxe and Greenhouse in the shares of Common Stock owned by QP and Cayman is limited to the extent of his pecuniary interest. 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. VIDEO DISPLAY: Receives RBC Bank Covenant Waiver Until Aug. 31 -------------------------------------------------------------- Video Display Corporation disclosed in a regulatory filing that as of May 31, 2010, it was in violation of the Asset Coverage Ratio under its credit facility with RBC Bank. The Company received a waiver from RBC Bank for the covenant violation until the next measurement date of August 31, 2010. The waiver agreement was obtained on July 16, 2010 and contains no additional requirements for the Company to meet in order for it to be effective. Management believes that it will be able to meet the existing covenants for the remaining term of the agreement. The Company executed the Loan and Security Agreement with RBC Bank on September 26, 2008, to provide a $17 million line of credit to the Company and a $3.5 million line of credit to the Company's subsidiary Fox International, Ltd. On May 24, 2010, the Company and RBC Bank signed an amendment to the parties' Loan and Security Agreement that extended the maturity dates of both the Company's $17 million and Fox International's $3.5 million lines of credit to September 30, 2010. Although the Company is in active negotiations to secure a new financing arrangement with its current or alternative lenders, no assurance can be given that an agreement will be reached. As of May 31, 2010, the outstanding balances of these lines of credit were $16.6 million and $3.5 million, respectively. The available amounts for borrowing were $400,000 and $0.0, respectively. The loans are secured by all assets and personal property of the Company. Additionally, the Chief Executive Officer of the Company has provided a limited guarantee on the outstanding loan with Fox International Ltd. The agreement contains covenants, including requirements related to tangible cash flow, ratio of debt to cash flow and asset coverage. The agreement also includes restrictions on the incurrence of additional debt or liens, investments (including Company stock), divestitures and certain other changes in the business. The $17 million line of credit was extended to September 2010, and accordingly is classified under short-term liabilities on the Company's balance sheet. The Company's subsidiary, Fox International, Ltd agreement expires in September 2010 and is classified in short term liabilities. The interest rate on these loans is a floating LIBOR rate based on a fixed charge coverage ratio, minimum 4.0%, as defined in the loan documents. In conjunction with the Loan and Security Agreement, the syndicate also executed a $1.7 million term note with the Company repayable in 32 monthly increments of $50,000 each through July 1, 2011, and the Chief Executive Officer of the Company personally provided a $6.0 million subordinated term note to the Company. The Company is a worldwide leader in the manufacture and distribution of a wide range of display devices, encompassing, among others, industrial, military, medical, and simulation display solutions. As of May 31, 2010, the Company had $66,211,000 in total assets against $38,128,000 in total liabilities. VINEYARD NATIONAL: Confirmation Hearing Continues on August 6 ------------------------------------------------------------- Vineyard National Bancorp will return to the Bankruptcy Court on August 6, 2010, for the continuation of the hearing to confirm its Joint Plan of Liquidation. A Joint Plan of Liquidation and Disclosure Statement have been filed with the Court. The Court approved the Disclosure Statement dated February 4, 2010, and solicitation of ballots commenced on March 8, 2010. Balloting was re-opened upon a motion by the Official Committee of the Unsecured Creditors. The confirmation hearing for the Joint Plan of Liquidation was originally scheduled for April 8, 2010. Due to, among other things, an objection to the Joint Plan of Liquidation and Disclosure Statement filed by the Federal Deposit Insurance Corp., the hearing has been continued several times. As reported by the Troubled Company Reporter on April 23, 2010, the FDIC claims a super-priority claim to certain assets of the estate. Vineyard has warned in a regulatory filing that if the FDIC's claim is successful, it will reduce or potentially eliminate any assets available for distribution to the general unsecured creditors. On December 21, 2009, the Unsecured Creditors Committee filed suit against certain directors and officers of the Debtor. About Vineyard National Vineyard National Bancorp (NASDAQ: VNBC) (AMEX: VXC.PR.D) -- http://www.vineyardbank.com/-- was the financial holding company, which provides a variety of lending and depository services to businesses and individuals through its wholly owned subsidiary, Vineyard Bank, National Association. Vineyard Bank was closed July 17 by regulators, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with California Bank & Trust, San Diego, California, to assume all of the deposits of Vineyard Bank, N.A., excluding those from brokers. As of March 31, 2009, Vineyard Bank, N.A., had total assets of $1.9 billion and total deposits of roughly $1.6 billion. In addition to assuming all of the deposits of the failed bank, California Bank & Trust agreed to purchase roughly $1.8 billion of assets. The FDIC will retain the remaining assets for later disposition. California Bank & Trust purchased all deposits, except about $134 million in brokered deposits, held by Vineyard Bank, N.A. Vineyard National Bancorp filed for Chapter 11 on June 21, 2009 (Bankr. C.D. Calif. Case No. 09-26401). VISTEON CORP: Has Access to Cash Collateral Until August 19 ----------------------------------------------------------- U.S. Bankruptcy Judge Christopher Sontchi entered his Sixteenth Supplemental Interim Order, authorizing Visteon Corp. continued use of cash collateral through August 19, 2010. The Debtors' use of the Cash Collateral will be subject to compliance of a prepared budget, a copy of which is available for free at http://bankrupt.com/misc/Visteon_16thlBudget910.pdf A final hearing will be held on August 17, 2010. Objections must be filed no later than August 11. A full-text copy of the 16th Supplemental Cash Collateral Order is available for free at: http://bankrupt.com/misc/Visteon_16thCashCollOrd.pdf About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The Company has corporate offices in Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. The Company has assets of US$4,561,000,000 and debts of US$5,311,000,000 as of March 31, 2009. Visteon Corporation and 30 of its affiliates filed for Chapter 11 protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786 through 09-11818). Judge Christopher S. Sontchi oversees the Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, represent the Debtors in their restructuring efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' investment banker and financial advisor is Rothschild Inc. The Debtors' notice, claims, and solicitation agent is Kurtzman Carson Consultants LLC. The Debtors' restructuring advisor is Alvarez & Marsal North America, LLC. Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Visteon Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) VISTEON CORP: Plan Exclusivity Extended Until October 15 -------------------------------------------------------- Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware extended through October 15, 2010, the exclusive right of Visteon Corporation and its debtor affiliates to file a Chapter 11 plan. The period by which the Debtors can exclusively solicit and obtain acceptances of that plan is also extended through December 15, 2010. At the July 15 hearing on the exclusivity extension request, the Ad Hoc Committee of Equityholders asked Judge Sontchi to terminate the Debtors' Exclusive Periods to enable it to propose its own plan that would be confirmable if it is established that the Debtors' enterprise valuation is wrong and that the Debtors are solvent. The Court overruled the objection, saying he had made his intentions clear the last time the issue came up, Bloomberg News cited. "Why am I hearing this again?" Bloomberg News quoted Judge Sontchi in referring to the exclusivity termination request. "We are retreading ground that we have gone over and over again," Judge Sontchi said after denying the Ad Hoc Equity Committee's request, the report noted. Judge Sontchi approved the Disclosure Statement describing the Debtors' Toggle Plan as containing adequate information pursuant to Section 1125 of the Bankruptcy Code on June 28, 2010. Valuation Issues Prior to the conduct of the July 15 hearing, the Ad Hoc Equity Committee asserted that by arguing that bondholders are better off with Toggle SubPlan A under which they receive 5% of the reorganized debtor's stock and the right to buy 95% at plan value than with Toggle SubPlan B under which they receive 15% of the stock, the Debtors have implicitly admitted their 'plan value' undervalues the stock and makes the right to buy 95% of the stock at 'plan value' worth hundreds of millions of dollars. The Ad Hoc Equity Committee further emphasized that as the Debtors are in the process of soliciting votes for their current plan, the filing of a competing plan will not disrupt the solicitation process but will provide a superior alternative -- and one that will be confirmable. Mona A. Parikh, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, attorney for the Ad Hoc Equity Committee, argued that if the Court ultimately reject the Debtors' low valuation or find that the Debtors' Plan contains other fatal defects at confirmation, it will not have any other plan to confirm and considerable delay will ensue. In reply to the Ad Hoc Equity Committee's contentions, the Debtors cited that each of the points the Objection raised is a valuation argument the Court has heard, considered, and rejected several times before by noting that those issues should be addressed at a confirmation hearing and not before. The Debtors also denied the premise that they have admitted that their Plan undervalues the stock to be issued to the noteholders under Toggle SubPlan A. The Debtors reiterated that the Toggle Plan is confirmable. It has the support of their noteholders in sufficient amount for the Plan to be accepted pursuant to a Court-approved plan support agreement, the Debtors averred. It also has the support of the Official Committee of Unsecured Creditors, the Debtors added. With regards to Johnson Controls, Inc.'s proposal, the Debtors maintained that evidence presented to the Court demonstrated that they carefully considered the JCI proposal and concluded that the additional liabilities triggered by a sale to JCI and the impact of the transaction on their residual reorganized business meant that creditor recoveries would not be improved by pursuing that particular sale. About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The Company has corporate offices in Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. The Company has assets of US$4,561,000,000 and debts of US$5,311,000,000 as of March 31, 2009. Visteon Corporation and 30 of its affiliates filed for Chapter 11 protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786 through 09-11818). Judge Christopher S. Sontchi oversees the Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, represent the Debtors in their restructuring efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' investment banker and financial advisor is Rothschild Inc. The Debtors' notice, claims, and solicitation agent is Kurtzman Carson Consultants LLC. The Debtors' restructuring advisor is Alvarez & Marsal North America, LLC. Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Visteon Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000). VISTEON CORP: Suppliers May Buy Equity in Reorganized Entity ------------------------------------------------------------ Visteon Corporation is working on a deal with bondholder investors that could enable suppliers and other creditors who hold general unsecured claims the opportunity to buy as much as $15 million in shares of new stock the Company will be issuing upon its exit from bankruptcy protection, James J. Mazza, Esq., of Kirkland & Ellis LLP said, according to Bloomberg News. "We'd like to get it done, if it's the right deal," Mr. Mazza told Bloomberg News in an interview. "It's insurance." The current version of the bankruptcy plan Visteon proposed contemplates a rights offering to be sponsored by bondholder investors to raise $1.25 billion to fund its exit from bankruptcy financing. In return, the bondholders will get control of 95% of the Company. Visteon will have to issue more stock to accommodate the suppliers, Bloomberg News quoted Mr. Mazza, Visteon's counsel, as saying. The new development comes in light of an objection lodged by three distressed-debt investors against the current version of the Visteon Plan. The investors, Hain Capital Group, LLC, Liquidity Solutions, Inc., and Fulcrum Credit Partners LLC, are believed to hold about $20 million in supplier claims. The Hain Investors "have collected pledges to vote 'no' on the plan from creditors with at least 60% of the so-called debt trade," according to a person familiar with the tally, Bloomberg News related. A 'no' vote from these set of creditors could block Visteon from gaining Court approval of its bankruptcy plan. The Hain Investors earlier sought the appointment of an official trade creditors committee in Visteon's cases. Judge Sontchi has yet to rule on the matter. About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The Company has corporate offices in Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. The Company has assets of US$4,561,000,000 and debts of US$5,311,000,000 as of March 31, 2009. Visteon Corporation and 30 of its affiliates filed for Chapter 11 protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786 through 09-11818). Judge Christopher S. Sontchi oversees the Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, represent the Debtors in their restructuring efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' investment banker and financial advisor is Rothschild Inc. The Debtors' notice, claims, and solicitation agent is Kurtzman Carson Consultants LLC. The Debtors' restructuring advisor is Alvarez & Marsal North America, LLC. Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Visteon Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000). VISTEON CORP: Unsecureds Panel Seek to Probe Trade Creditors ------------------------------------------------------------ The Official Committee of Unsecured Creditors for Visteon Corp. seeks the Court's authority to conduct discovery of the so-called ad hoc trade committee and its members in relation to representations it has made that it holds or controls sufficient claims to block an accepting vote of Class H claims in connection with its solicitation of creditors to vote against the Debtors' Plan of Reorganization. The Creditors' Committee is concerned that the Ad Hoc Trade Committee may be "mischievously resorting to issuing propaganda that it controls a blocking position for the Class H creditor vote during the solicitation period." The Creditors' Committee asserts that based on publicly available information, the Ad Hoc Trade Committee's assertion that it holds or controls a blocking position appears highly suspect. Representing the Creditors' Committee, Leigh Anne M. Raport, Esq., at Ashby & Geddes, P.A., in Wilmington, Delaware, cites that the Debtors' claims register reflects that the total dollar amount of Class H claims held by members of the Ad Hoc Trade Committee is approximately $17 million -- an amount far less than necessary to constitute a blocking position. If the Ad Hoc Trade Committee's claims are untrue, then the Class H creditors are being misled and harmed by the Ad Hoc Trade Committee's deception, Ms. Raport contends. The Creditors' Committee maintains that it is duty bound to investigate the merits of the Ad Hoc Trade Committee's allegations. The plan voting process in ongoing and is scheduled to conclude on July 30, 2010. The Creditors' Committee relates that in order to assess the representations being made by the Ad Hoc Trade Committee, it seeks certain information from members of the Ad Hoc Trade Committee. The information includes, among others: (1) The identity of all Class H claims held by members of the Ad Hoc Trade Committee other than those currently reflected in the Visteon claims register; (2) The identity of all other Class H claims which, to the knowledge of members of the Ad Hoc Trade Committee, have "pledged" or otherwise agreed to vote to reject the plan; and (3) All communications made by members of the Ad Hoc Trade Committee or its professionals to any party to the effect that members of the Ad Hoc Trade Committee hold or control sufficient claims to constitute a Class H blocking position. The Creditors' Committee asserts that the information it seeks is relevant and critical to determine whether the Ad Hoc Trade Committee is engaging in misleading solicitation. In a separate request, the Creditors' Committee sought to shorten notice of its Discovery Motion so that it may be considered at the omnibus hearing set for July 15, 2010. Judge Sontchi, however, denied the Committee's notice request. About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The Company has corporate offices in Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. The Company has assets of US$4,561,000,000 and debts of US$5,311,000,000 as of March 31, 2009. Visteon Corporation and 30 of its affiliates filed for Chapter 11 protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786 through 09-11818). Judge Christopher S. Sontchi oversees the Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, represent the Debtors in their restructuring efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' investment banker and financial advisor is Rothschild Inc. The Debtors' notice, claims, and solicitation agent is Kurtzman Carson Consultants LLC. The Debtors' restructuring advisor is Alvarez & Marsal North America, LLC. Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Visteon Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) VITRO SAB: Noteholders Reject Restructuring Proposal ---------------------------------------------------- The Steering Group for the Ad Hoc Committee of Vitro Noteholders has rejected the latest restructuring proposal made by VITRO, S.A.B. de C.V., which forms the basis of Vitro's announced "consent solicitation" to holders of the Senior Notes (the Vitro Proposal). The Steering Group is comprised of holders, or investment advisors to holders, of more than $500 million of Vitro's Senior Notes due 2012, 2013, and 2017 (collectively, the Senior Notes) issued by Vitro, S.A.B. de C.V. Vitro has been in default under the Senior Notes for more than 15 months, having failed to make scheduled bi- annual interest payments On February 1, 2009, May 1, 2009, August 1, 2009, November 1, 2009, February 1, 2010, and May 1, 2010. Moreover, the Senior Notes were accelerated by holders of the Senior Notes and/or the indenture trustees for such notes earlier this year -- which makes the full amount of the Senior Notes (approximately $1.2 billion principal amount) plus accrued and unpaid interest immediately due and payable by Vitro and its more than 50 Mexican and U.S. subsidiary guarantors of the Senior Notes. Since the initial default by Vitro in February 2009, certain members of the Steering Group have urged Vitro to engage in a thoughtful, deliberate restructuring process that will maximize recoveries for holders of the Senior Notes. Notably, the Vitro Proposal continues to undervalue the financial condition of Vitro's business and its ability to satisfy claims of holders of the Senior Notes. The Vitro Proposal (and the unsupported consent solicitation) is intended to redistribute value away from Vitro's creditors to its shareholders (including controlling family member shareholders). As a result, the Steering Group reserves all its rights and is reviewing the exercise of appropriate remedies and options to protect holders of the Senior Notes. The Steering Group is represented by White & Case LLP and Chanin Capital Partners LLC as counsel and financial advisors, respectively. Holders of the Senior Notes who are interested in obtaining more information are encouraged to contact these advisors for the Steering Group: White & Case LLP John Cunningham Tel: (305) 995-5252 E-mail: jcunningham@whitecase.com Richard Kebrdle Tel: (305) 995-5276 E-mail: rkebrdle@whitecase.com Chanin Capital Partners Brian Cullen Tel: (310) 445-4010 E-mail: BCullen@chanin.com Mark Catania Tel: (310) 445-4010 E-mail: MCatania@chanin.com About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. * * * In June 2010, Fitch Ratings withdrew all ratings of Vitro, S.A.B. de C.V., given the lack of information following the company's default on Feb. 2, 2009, and consistent with Fitch's policies. Fitch will no longer provide ratings or credit research on the Company. Andres R. Martinez at Bloomberg News said in June that Vitro was suspended from trading in Mexico City after failing to file its fourth-quarter earnings report. The company missed June 2's deadline for the results, Mexico's stock exchange said in an e-mailed statement obtained by the news agency. Vitro plans to file the report once its debt restructuring is complete or if ordered by a judge. Vitro said that the suspension won't affect company operations. In June 30, 2009, Galaz, Yamazaki, Ruiz Urquiza, S.C., member of Deloitte Touche Tohmatsu and C.P.C. Jorge Alberto Villarreal in Monterrey, N.L., Mexico raised substantial doubt about the Company's ability to continue as a going concern after auditing financial results for the period ended Dec. 31, 2007, and 2008. The auditors pointed out to the Company's net loss and its non- compliance with covenants related to its long-term debt obligations. V.N.H. INC: Case Summary & 11 Largest Unsecured Creditors --------------------------------------------------------- Debtor: V.N.H., Inc. 28939 Southfield Road Lathrup Village, MI 48076 Bankruptcy Case No.: 10-62394 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Marci B McIvor Debtor's Counsel: Robert N. Bassel, Esq. P.O. Box T Clinton, MI 49236 Tel: (248) 677-1234 Fax: (248) 369-4749 E-mail: bbassel@gmail.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 11 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mieb10-62394.pdf The petition was signed by Vincent Shina, principal. WASHINGTON MUTUAL: Shareholders Win Probe of JPMorgan Deal ---------------------------------------------------------- Bankruptcy Law360 reports that Washington Mutual Inc. shareholders won a bid Tuesday for an examiner to review a litigation settlement between the bank, JPMorgan Chase & Co. and the Federal Deposit Insurance Corp. that is key to WaMu's emergence from bankruptcy. Judge Mary Walrath of the U.S. Bankruptcy Court for the District of Delaware said she planned on appointing an examiner Monday, according to Law360. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. The Company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. Washington Mutual Bank was taken over September 25 by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns 100% of the equity in WMI Investment. Weil Gotshal & Manges represents the Debtors as counsel. When WaMu filed for protection from its creditors, it listed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment listed assets of $500,000,000 to $1,000,000,000 with zero debts. Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with responsibility for the litigation. Brian Rosen, Esq., at Weil, Gotshal & Manges LLP served as legal counsel to WMI with responsibility for the Chapter 11 case. Bankruptcy Creditors' Service Inc. publishes Washington Mutual Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Washington Mutual Inc. (http://bankrupt.com/newsstand/or 215/945-7000). W.R. GRACE: Fee Auditor Submits Report for ZAI Counsel Fees ----------------------------------------------------------- To recall, U.S. Bankruptcy Judge Judith Fitzgerald awarded parties asserting claims relating to Zonolite Attic Insulation manufactured by W.R. Grace & Co. in Canada, among others, expenses totaling C$55,377 to be paid to Lauzon Belanger S.E.N.C.R.L. and Scarfone Hawkins LLP, as special counsel to represent the Canadian ZAI Claimants' interests in the U.S. proceedings, nunc pro tunc to December 21, 2009, through the Effective Date of the Plan. Warren H. Smith & Associates, P.C., acting in its capacity as fee auditor in the Chapter 11 cases, noted that certain revisions were made to the original fee application of Lauzon and Scarfone for the period from October 1, 2004 through August 31, 2008. The Fee Auditor also recommended the reduction of expenses that the Representative Counsel sought to be reimbursed. Lauzon, Scarfone submitted a statement to the Court certifying the Revisions. The Debtors subsequently certified that they no objections to the Amended Application of Representative Counsel were received. In a final report dated July 12, 2010, the Fee Auditor noted that: (1) In the event the Court determines that Representative Counsel are appropriately compensated by means of a contingency fee, the Fee Auditor recommends approval of $2,000,000 inclusive of fees and expenses, for Representative Counsel's services for the (2) Alternatively, if the Court determines that compensation on an hourly basis is appropriate, the Fee Auditor recommends approval of $818,746 in fees and $107,237 in expenses for Representative Counsel's services for the Application Period, of which (i) $381,251 in fees and $77,562 in expenses are for the services of Lauzon Belanger; and (ii) $437,494 in fees and $29,674 in expenses are for the services of Scarfone Hawkins. 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: Plum Creek Seeks to File Late Claims ------------------------------------------------ Plum Creek Timberlands, L.P., asks the Court to allow the late filing of its proofs of claim asserting undertermined amounts. Plum Creek is in the business of growing and commercially harvesting trees and owns approximately 5,000-6,000 acres of timberlands and a total of approximately 30,000 acres in the vicinity of Libby in Montana. According to John R. Knapp, Jr., Esq., at Miller Nash LLP, in Seattle Washington, the United States Environmental Protection Agency prepared in May 2010, a technical document entitled "Remedial Investigation for Operable Unit 3, Libby Asbestos Superfund Site, Phase IV Sampling and Analysis Plan, Part A, Data to Support Human Health Risk Assessment." The EPA Draft Report raised, for the first time, and recommends testing and analysis on the issue of whether Plum Creek's timberlands in Libby might be unsafe to log because of the presence of vermiculite asbestos released into the atmosphere by one or more of the Debtors' mining operations near Libby. The EPA Draft Report was prepared as part of a joint effort by EPA and the Debtors to conduct a remedial investigation and feasibility study of the Libby Superfund Site pursuant to the requirements of EPA's regulations. The EPA Draft Report concerns only a portion of the Libby Site known as Operable Unit 3, where it appears that asbestos has become embedded into the bark of trees owned by Plum Creek, Mr. Knapp tells the Court. "At present, it is unclear to Plum Creek whether the claims bar date of March 31, 2003 . . . applies to the damages incurred, if at all, with respect to trees owned by Plum Creek. The Instructions printed on the Proof of Claim form state that it applies only to claimants who are 'alleging property damage with respect to asbestos in real property owned by a party . . . as a result of one of Grace's vermiculite mining, milling or processing facilities,'" according to Mr. Knapp. Mr. Knapp notes that to the extent Plum Creek suffered compensable damages, it is most likely to be with respect to its inventory of trees. However, to the extent the Uniform Commercial Code defines "goods" as including "standing timber that is to be cut and removed under a conveyance or contract for sale" but does not specify when the conveyance or contract for sale must arise, the Bar Date applies to Plum Creek's claims and cause exists to allow the late-filed claims given that: (1) it is the first instance where a governmental agency has raised the issue of whether the hazardous substance, asbestos, which has become imbedded into tree bark, may lead to unacceptable health effects if those trees are harvested; and (2) Plum Creek filed its proofs of claim promptly upon learning of the EPA Draft Report. Mr. Knapp notes that payment of Plum Creek's Claim will not jeopardize success of the Debtors' Chapter 11 Plan of Reorganization. Although the amount of Plum Creek's claims is undetermined at present, they are likely to be insubstantial in comparison to the amount of the Debtors' total liabilities of $3.555 billion. 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: Settles Wasau Insurance Coverage Issues --------------------------------------------------- Employers Mutual Liability Insurance Company of Wisconsin issued three policies of excess liability insurance that provide, or are alleged to provide, insurance coverage to Grace. The Subject Policies were issued for the period July 17, 1974 to June 30, 1977. Each of the Subject Policies provides coverage in the amount of $2 million part of a quota share layer of $50 million per occurrence and in the aggregate for products and completed operations hazards, all in excess of $100 million in underlying limits. Grace has incurred and may incur in the future certain liabilities, expenses and losses arising out of asbestos-related claims, for which Grace seeks coverage under the Subject Policies. Disputes have arisen between Grace and Wausau regarding their respective rights and obligations under the Subject Policies with respect to coverage for asbestos-related claims. The First Amended Joint Plan of Reorganization contemplates that Asbestos Personal Injury Claims will be enjoined and channeled to the Asbestos PI Trust. If established as proposed, the Trust will process and resolve Asbestos PI Claims pursuant to the Asbestos PI Trust Distribution Procedures. The Plan further contemplates that Asbestos Insurance Rights, including rights to coverage under the Subject Policies, are to be transferred to the Trust, to be used to fund payment of Asbestos PI Claims. To resolve the disputes, the Debtors, and Nationwide Indemnity Company, solely in its capacity as claims administrator for Wausau entered into a settlement agreement that confers these principal benefits upon the Debtors' estate, among others: (a) The payment by Wausau to the Trust of $3,800,000 as a settlement amount within 30 days of the Trigger Date, as defined in the Agreement. (b) The payment of the Settlement Amount without need for litigation to enforce the assignment by Grace to the Trust of rights under the Subject Policies. (c) A compromise of defenses that Wausau might have with respect to coverage for any individual Asbestos PI Claim. The Agreement also includes a complete, mutual release of all claims under the Subject Policies and is structured as a sale of property pursuant to Section 363 of the Bankruptcy Code. The Agreement further provides that if a Chapter 11 plan of reorganization is confirmed in the Debtors' cases, the Trust, at its own expense, will enforce the Asbestos PI Channeling Injunction with respect to Asbestos PI Claims that are asserted against Wausau and Nationwide Indemnity Company. The Trust's obligation ceases after it has spent a sum equivalent to the Settlement Amount. The Parties ask Judge Fitzgerald to approve the Settlement Agreement. 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) WYNNE VIEW: Case Summary & 10 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Wynne View, Inc P.O. Box 115 Belhaven, NC 27810 Bankruptcy Case No.: 10-05549 Chapter 11 Petition Date: July 13, 2010 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: Robert Lewis, Jr., Esq. The Lewis Law Firm, P.A. 803 C East Main Street Havelock, NC 28532 Tel: (252) 444-1717 Fax: (252) 444-8667 E-mail: lewislaw@embarqmail.com Scheduled Assets: $1,517,815 Scheduled Debts: $781,091 A list of the Company's 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nceb10-05549.pdf The petition was signed by Martin Overholt, CEO. * Insurer Losses Trigger Most Regulator Intervention in a Decade ---------------------------------------------------------------- U.S. life/health (L/H) financial impairments in 2009 totaled 12, a high for this decade and a fourfold increase from a decade low of three in 2006. Accident and health (A&H), group and ordinary life insurance were equally represented in the 2009 financially impaired companies (FIC), with the three business lines making up 92% of the year's impairments. An A&H insurer also was added to 2008, bringing that year's count to nine. Two FICs for 2010 have been identified, so far, and both are A&H insurers. A.M. Best Co. believes that the current economic backdrop and operating environment are conducive to creating more FICs in 2010. Although the L/H industry's financial performance vastly improved in 2009, compared with the battering that balance sheets experienced in 2008 at the height of the global financial crisis, pressures on revenue growth and investment challenges remain. This mixed picture demonstrates that the life/health insurance industry has yet to fully shake off some of the lingering effects of the financial crisis. -- The 12 impairments in 2009 led to the annual financial impairment frequency (FIF) rising to 0.81%, up from 0.59% in 2008. The life/health industry's annual FIF had been as low as 0.19% in 2006. -- Five FICs in 2009 were related to investment problems and another five to inadequate pricing/deficient loss reserves. Nonadmitted assets contributed to the impairment of two other insurers. A few of the FICs also faced operational challenges in recent years in specific business lines. -- Over the near term, A.M. Best expects an increase in the L/H FIF equal or above the historical average, as insurers currently face challenges from macroeconomic issues as well as industry-specific concerns. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. * S&P/Experian Index Confirms Declining Trend of Default Rates -------------------------------------------------------------- Data through June 2010, released today by Standard & Poor's and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, show that the monthly default rates declined for all five credit lines. Defaulting balances of bank card loans were 8.8% in June, down from 8.9% in May. First and second mortgage default rates were 3.3% and 2.4% respectively, with first mortgage default rates declining 5.0% from last month and 45.2% from a year ago. Auto loan defaults were 1.7% in June, down from 1.8% in May. "The consumer credit picture shows encouraging progress as default rates continue to fall across major categories and in the highlighted cities. The data are consistent with reports that people continue to eschew debt and as the slow recovery from recession and financial turmoil continues. For the economy this is mixed news - better credit quality, as seen in this report is clearly positive. However, as reported earlier by the Federal Reserve, consumers credit use is declining, dampening the outlook for spending," says David M. Blitzer, Managing Director and Chairman of the Index Committee at Standard & Poor's. Consumer credit defaults vary across major cities and regions of the U.S. Among the five major Metropolitan Statistical Areas reported each month in this release, New York had the largest decline in defaults in the last month at 12.11% while Dallas showed the smallest decrease of 29.59% in the past year. The sharpest decline was in Miami where defaults have declined 53.55% in the last 12 months. The table gives summary results for June 2010 for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision. * Troubled North Carolina Banks Jump 74% to 40 from 2009 -------------------------------------------------------- David Mildenberg at Bloomberg News reports that 40 of North Carolina's 86 state-chartered banks are on a regulator's list of troubled institutions, a 74% increase from a year earlier. Seven of the 40 banks face regulatory enforcement actions, Ha Nguyen, spokeswoman for the North Carolina Banking Commission, said in a telephone interview with Bloomberg. The commission defines troubled banks as having a composite rating of 3 or greater under the Camel system, which refers to ratings of a bank's capital adequacy, asset quality, management, earnings, liquidity and sensitivity to market risk. Just two North Carolina banks have failed since Jan. 1, 2008, compared with 41 in Georgia, which has had more bank failures than any other state during the past two-and-a-half years, according to the Federal Deposit Insurance Corp. * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ------------------------------------------------------------- Recent Chapter 11 cases filed with assets and liabilities below $1,000,000: In Re Daniel J. Loehnis Bankr. D. Ariz. Case No. 10-20642 Chapter 11 Petition Filed July 1, 2010 See http://bankrupt.com/misc/azb10-20642.pdf In Re Joseph H. Bouise, III aka H Joseph Bouise aka Joe Bouise Marla J. Bouise Bankr. D. Ariz. Case No. 10-20666 Chapter 11 Petition Filed July 1, 2010 Filed As Pro Se In Re Sport Collectors Guild, Inc. Bankr. D. Ariz. Case No. 10-20658 Chapter 11 Petition Filed July 1, 2010 Filed As Pro Se In Re James Sheridan Valentine, II Kimberly Ann Valentine Bankr. D. Ariz. Case No. 10-20843 Chapter 11 Petition Filed July 2, 2010 See http://bankrupt.com/misc/azb10-20843.pdf In Re Eskander Khamooshpour Bankr. D. Ariz. Case No. 10-21773 Chapter 11 Petition Filed July 12, 2010 See http://bankrupt.com/misc/azb10-21773.pdf In Re ROTRANS Bankr. C.D. Calif. Case No. 10-31592 Chapter 11 Petition Filed July 12, 2010 See http://bankrupt.com/misc/cacb10-31592.pdf In Re TLC Kennels, LLC Bankr. D. Conn. Case No. 10-51642 Chapter 11 Petition Filed July 12, 2010 Filed As Pro Se In Re TopSpin Medical, Inc. Bankr. D. Dela. Case No. 10-12213 Chapter 11 Petition Filed July 12, 2010 See http://bankrupt.com/misc/deb10-12213.pdf In Re Stanley Davis Kight aka Stanley D Kight Kathryn M. Kight aka Kathryn M. Hawkins-Kight Bankr. M.D. Fla. Case No. 10-05970 Chapter 11 Petition Filed July 12, 2010 See http://bankrupt.com/misc/flmb10-05970.pdf In Re Bear Investments, LLC Bankr. D. Idaho Case No. 10-41234 Chapter 11 Petition Filed July 12, 2010 See http://bankrupt.com/misc/idb10-41234.pdf In Re Nortronics, Corp. Bankr. S.D. N.Y. Case No. 10-13682 Chapter 11 Petition Filed July 12, 2010 See http://bankrupt.com/misc/nysb10-13682.pdf In Re Knickerbocker Enterprises, LP Bankr. M.D. Tenn. Case No. 10-07225 Chapter 11 Petition Filed July 12, 2010 See http://bankrupt.com/misc/tnmb10-07225.pdf In Re Christ Healing Church Bankr. S.D. Texas Case No. 10-35919 Chapter 11 Petition Filed July 12, 2010 See http://bankrupt.com/misc/txsb10-35919.pdf In Re KRS Inc. dba Sunshine Delivery Bankr. W.D. Wash. Case No. 10-18040 Chapter 11 Petition Filed July 12, 2010 See http://bankrupt.com/misc/wawb10-18040.pdf In Re Stephanie Ann Jurgens Bankr. D. Ariz. Case No. 10-21876 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/azb10-21876.pdf In Re Humantouch, Inc. Bankr. C.D. Calif. Case No. 10-18492 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/cacb10-18492.pdf In Re Victor Gonzalez Ines Santana Gonzalez Bankr. C.D. Calif. Case No. 10-18500 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/cacb10-18500.pdf In Re Beverly Anne Feusier Bankr. N.D. Calif. Case No. 10-47885 Chapter 11 Petition Filed July 13, 2010 Filed As Pro Se In Re Florida Freight & Company, Inc. Bankr. M.D. Fla. Case No. 10-16650 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/flmb10-16650.pdf In Re Gonzalez Family Trust Bankr. S.D. Fla. Case No. 10-29882 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/flsb10-29882.pdf In Re Lobo Ventures, LLC Bankr. D. Idaho Case No. 10-20908 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/idb10-20908.pdf In Re El Matador, Inc. Bankr. C.D. Ill. Case No. 10-72202 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/ilcb10-72202.pdf In Re Eric O. Clay Bankr. D. Md. Case No. 10-25707 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/mdb10-25707.pdf In Re 2800 Huber Heights Drive, LLC Bankr. D. Nev. Case No. 10-22960 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/nvb10-22960.pdf In Re Ralph Stephen Coppola Bankr. D. Nev. Case No. 10-52731 Chapter 11 Petition Filed July 13, 2010 Filed As Pro Se In Re Interaqt Corporation dba Colotraq Bankr. D. N.J. Case No. 10-31401 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/njb10-31401.pdf In Re Commack Road Donuts, LLC Bankr. E.D. N.Y. Case No. 10-75440 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/nyeb10-75440.pdf In Re FPSDA I, LLC Bankr. E.D. N.Y. Case No. 10-75439 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/nyeb10-75439.pdf In Re Everett Lowe Bankr. M.D. Tenn. Case No. 10-07272 Chapter 11 Petition Filed July 13, 2010 See http://bankrupt.com/misc/tnmb10-07272.pdf In Re DSDP, LLC Bankr. D. Ariz. Case No. 10-21918 Chapter 11 Petition Filed July 14, 2010 See http://bankrupt.com/misc/azb10-21918.pdf In Re Anthony Torres Patricia Torres Bankr. C.D. Calif. Case No. 10-38963 Chapter 11 Petition Filed July 14, 2010 See http://bankrupt.com/misc/cacb10-38963.pdf In Re 4550 San Pablo Ave., LLC Bankr. N.D. Calif. Case No. 10-47964 Chapter 11 Petition Filed July 14, 2010 Filed As Pro Se In Re LLC Distinguished Charters Bankr. N.D. Calif. Case No. 10-47975 Chapter 11 Petition Filed July 14, 2010 See http://bankrupt.com/misc/canb10-47975.pdf In Re Nancy Tenuta Bankr. N.D. Calif. Case No. 10-47974 Chapter 11 Petition Filed July 14, 2010 Filed As Pro Se In Re Rosalie Guancione, A Maritime Trust Bankr. N.D. Calif. Case No. 10-57229 Chapter 11 Petition Filed July 14, 2010 Filed As Pro Se In Re Eva Marie Schofield Bankr. D. Nev. Case No. 10-23112 Chapter 11 Petition Filed July 14, 2010 See http://bankrupt.com/misc/nvb10-23112.pdf In Re Richard Griffiths Bankr. D. Nev. Case No. 10-23126 Chapter 11 Petition Filed July 14, 2010 See http://bankrupt.com/misc/nvb10-23126.pdf In Re Blue Point Ventures, LLC Bankr. E.D. N.Y. Case No. 10-75463 Chapter 11 Petition Filed July 14, 2010 See http://bankrupt.com/misc/nyeb10-75463.pdf In Re D3C, LLC Bankr. E.D. N.Y. Case No. 10-75453 Chapter 11 Petition Filed July 14, 2010 See http://bankrupt.com/misc/nyeb10-75453.pdf In Re Hub Hope Corp. Bankr. E.D. N.Y. Case No. 10-46637 Chapter 11 Petition Filed July 14, 2010 See http://bankrupt.com/misc/nyeb10-46637.pdf In Re Cuba Corp. Bankr. E.D. Pa. Case No. 10-15777 Chapter 11 Petition Filed July 14, 2010 See http://bankrupt.com/misc/paeb10-15777.pdf In Re JK N JK Trucking, LLC Bankr. D. Ariz. Case No. 10-22207 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/azb10-22207.pdf In Re Amadeus Trust Bankr. C.D. Calif. Case No. 10-39069 Chapter 11 Petition Filed July 15, 2010 Filed As Pro Se In Re BLUWOLF, Inc. dba Mega Maids Bankr. C.D. Calif. Case No. 10-19721 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/cacb10-19721.pdf In Re Donald David Simpson Bankr. C.D. Calif. Case No. 10-19745 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/cacb10-19745.pdf In Re All Waste Systems, Inc. Bankr. E.D. Calif. Case No. 10-38564 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/caeb10-38564.pdf In Re Salmo Partners LLC Bankr. D. Colo. Case No. 10-27691 Chapter 11 Petition Filed July 15, 2010 Filed As Pro Se In Re James Coten Darling Bankr. D. Md. Case No. 10-25886 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/mdb10-25886.pdf In Re Victor Hugo Sandoval Miriam Yesenia Sandoval Bankr. D. Mass. Case No. 10-17679 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/mab10-17679.pdf In Re Mayo Pizza, Inc. dba Mijo's Pizza Bankr. D. N.J. Case No. 10-31737 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/njb10-31737.pdf In Re Display Group, Inc. Bankr. E.D. N.Y. Case No. 10-75502 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/nyeb10-75502.pdf In Re Industrial Laser Systems, LLC Bankr. W.D. Pa. Case No. 10-25054 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/pawb10-25054.pdf In Re Julia's Fine Jewelry, LLC Bankr. E.D. Va. Case No. 10-15948 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/vaeb10-15948.pdf In Re Shellise Bartom Montgomery Bankr. W.D. Wash. Case No. 10-18175 Chapter 11 Petition Filed July 15, 2010 Filed As Pro Se In Re Aquatic Engineering, lnc. Bankr. W.D. Wis. Case No. 10-15353 Chapter 11 Petition Filed July 15, 2010 See http://bankrupt.com/misc/wiwb10-15353.pdf In Re ENPI, Inc. dba Nathanson's Photography Bankr. C.D. Calif. Case No. 10-39386 Chapter 11 Petition Filed July 16, 2010 See http://bankrupt.com/misc/cacb10-39386.pdf In Re Ywan-Lung Tsay aka Cliff Tsay Hsiu-Mei Tsay aka Sue Tsay Bankr. N.D. Calif. Case No. 10-48088 Chapter 11 Petition Filed July 16, 2010 Filed As Pro Se In Re Kolo, Inc. Bankr. S.D. Fla. Case No. 10-30439 Chapter 11 Petition Filed July 17, 2010 See http://bankrupt.com/misc/flsb10-30439p.pdf See http://bankrupt.com/misc/flsb10-30439c.pdf In Re Redfrog Technology, LLC dba Redfrog Technologies LLC Bankr. W.D. Mich. Case No. 10-08829 Chapter 11 Petition Filed July 16, 2010 See http://bankrupt.com/misc/miwb10-08829.pdf In Re 330 Neptune Avenue Corp. Bankr. E.D. N.Y. Case No. 10-46716 Chapter 11 Petition Filed July 16, 2010 See http://bankrupt.com/misc/nyeb10-46716.pdf In Re Harbor Land Holding Corp Bankr. N.D. N.Y. Case No. 10-12670 10-12663 Chapter 11 Petition Filed July 16, 2010 See http://bankrupt.com/misc/nynb10-12670.pdf See http://bankrupt.com/misc/nynb10-12663.pdf In Re G. Force Investments, Inc. Bankr. N.D. Ohio Case No. 10-34877 Chapter 11 Petition Filed July 16, 2010 See http://bankrupt.com/misc/ohnb10-34877.pdf In Re J & J Restaurant Associates, Inc. Bankr. E.D. Pa. Case No. 10-15902 Chapter 11 Petition Filed July 16, 2010 See http://bankrupt.com/misc/paeb10-15902.pdf In Re Resort Hospitality, LLC fdba Antigua Bay Resort fdba Howard Johnson Antigua Bay Waterpark fdba Sidewinders dba Dells Island Resort Bankr. W.D. Wis. Case No. 10-15385 Chapter 11 Petition Filed July 16, 2010 See http://bankrupt.com/misc/wiwb10-15385.pdf In Re Crystal Clear Glass, Inc. ta Crystal Clear Glass & Mirror Bankr. S.D. Fla. Case No. 10-30438 Chapter 11 Petition Filed July 17, 2010 See http://bankrupt.com/misc/flsb10-30438.pdf ********* 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 ***