/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100830.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, August 30, 2010, Vol. 14, No. 240 Headlines 4 COINS: Case Summary & 20 Largest Unsecured Creditors ABRAXAS PETROLEUM: June 30 Balance Sheet Upside-Down by $1.0MM AHERN RENTALS: Moody's Downgrades Default Rating to 'Caa3' ALLIED ELECTRICAL: Case Summary & 20 Largest Unsecured Creditors AMCORE FINANCIAL: Files Chapter 11 Plan of Liquidation AMERICAN HOMEPATIENT: Stock Buy-Back Offer Now Expires Sept. 1 AMERICAN HOMEPATIENT: Lenders to Restructure Debt After Repurchase AMERICAN LIBERTY: Case Summary & 9 Largest Unsecured Creditors AMERICAS ENERGY: Incurs $4.1 Million Net Loss in June 30 Quarter ANTS SOFTWARE: Posts $6.2 Million Net Loss in June 30 Quarter APARTMENT INVESTMENT: S&P Affirms 'BB+' Corporate Credit Rating ARROW AIR: Auction Cancelled as Bids Not Suitable ASARCO LLC: Bankruptcy Court Closes 22 Affiliates' Cases ASARCO LLC: Firefighters Sue to Stop Consolidation With SCC ASARCO LLC: Plan Admin Gets Sept 17 Extension for Claim Objections ASARCO LLC: To Pay $100,000 for Washington Mine Cleanup AVAYA INC: Bank Debt Trades at 12% Off in Secondary Market BASHAS' INC: Lenders' Compromise to Pave Way for Emergence BIOVANCE TECHNOLOGIES: Case Summary & 20 Largest Unsec Creditors BLOCKBUSTER INC: Prepares for September Chapter 11 Filing BRANSCUM PRODUCE: Files for Chapter 11 Bankruptcy in Kentucky CHEMTURA CORP: Settles Environmental Claims With EPA for $26 Mil. CHEMTURA CORPORATION: Issues $455 Million in Senior Notes CITIZENS DEVELOPMENT: Case Summary & Creditors List CLEAR CHANNEL: To Accelerate CFO Casey's Relocation to San Antonio CN DRAGON: Swings to $24,523 Net Income in June 30 Quarter COLETO CREEK: Bank Debt Trades at 11% Off in Secondary Market COLONIAL BANCGROUP: Says It May be Entitled to Tax Refunds COMPETITIVE TECH: Presented Equity Status for Continued Listing CONTINENTAL AIRLINES: Completes $800 Million Note Private Offering CORNELL COS: S&P Raises Corporate Credit Rating to 'BB-' CORUS BANKSHARES: Wilmington Trust Tapped to Creditors' Committee CRYOPORT INC: Amends Deal to Remove Anti-Dilution Provision DELTA AIR LINES: Board Members Each Acquire 5,900 Shares DELTA AIR LINES: Reports July 2010 Traffic Results DELTA AIR LINES: To Create $1.2 Bil. Expansion at JFK Hub DEFI GLOBAL: Incurs $732,500 Net Loss in June 30 Quarter DEX MEDIA EAST: Bank Debt Trades at 22% Off in Secondary Market DEX MEDIA WEST: Bank Debt Trades at 12% Off in Secondary Market DOLLAR THRIFTY: Investors Ask for Injunction on Hertz Voting E-DEBIT GLOBAL: Posts $145,805 Net Loss for Quarter Ended June 30 EL DORADO RIDGE: Case Summary & 5 Largest Unsecured Creditors EMERALD HOSPITALITY: Voluntary Chapter 11 Case Summary ENERTECK CORP: Posts $512,000 Net Loss in Quarter Ended June 30 EPIC ENERGY: Posts $8.6MM Net Loss in Quarter Ended June 30 ERF WIRELESS: June 30 Balance Sheet Upside-Down by $3.4-Mil. FAIRCHILD SEMICONDUCTOR: Moody's Hikes Corporate Rating to 'Ba2' FAIRPOINT COMMS: Bank Debt Trades at 35% Off in Secondary Market FIRST BANCORP: Completes Exchange Offer of 256,401,610 Shares FORBES MEDI-TECH: Completes Assets Sale to Pharmachem Laboratories FORD MOTOR: Bank Debt Trades at 4% Off in Secondary Market FREESCALE SEMICON: Bank Debt Trades at 10% Off in Secondary Market FX LUXURY: Hearing on Further Cash Use on October 18 GOLDEN EAGLE: Posts $345,600 Net Loss in June 30 Quarter GOODCRANE CORP: Trustee Prepares to Sell Assets on Sept. 8 GREENBRIER LEASING: Amends WLR-Greenbrier Syndication Agreement GUITAR CENTER: Bank Debt Trades at 13% Off in Secondary Market HARRISBURG, PA: Dauphin County Gets $34.7 Million Bill HARVEST OAKS: Plan Confirmation Hearing Set for September 15 HAWKS PRAIRIE: Section 341(a) Meeting Scheduled for Sept. 16 HAWKS PRAIRIE: Taps Ryan Swanson as Bankruptcy Counsel HEALTHSOUTH CORP: Bank Debt Trades at 0.92% Off HSR GENERAL: Case Summary & 20 Largest Unsecured Creditors ICOP DIGITAL: Reports $1.14MM Net Loss for Second Quarter INDUSTRY WEST: Plan of Reorganization Wins Court Approval INTELSAT JACKSON: Bank Debt Trades at 6% Off in Secondary Market INTERMETRO COMMUNICATIONS: Earns $124,000 in June 30 Quarter J.A.G. CARWASH: Case Summary & 20 Largest Unsecured Creditors JEAN DETHIERSANT: Files Schedules of Assets & Liabilities JEAN DETHIERSANT: Section 341(a) Meeting Scheduled for Sept. 29 KENNETH STARR: Sued by American Express for Credit Card Debt KENTUCKY ENERGY: Incurs $1 Million Net Loss in June 30 Quarter KILEY RANCH: Case Summary & 12 Largest Unsecured Creditors KINSLEY FOREST: Chapter 11 Reorganization Case Dismissed LAKE TAHOE: Plan to Pay Off Unsecured Creditors by May 2013 LAS VEGAS SANDS: Bank Debt Due 2016 Trades at 9% Off LAS VEGAS SANDS: Bank Debt Due 2014 Trades at 10% Off LAUREATE EDUCATION: Bank Debt Trades at 8% Off in Secondary Market LEVEL 3 COMMS: Bank Debt Trades at 10% Off in Secondary Market LIN TV: S&P Raises Corporate Credit Rating to 'B' From 'B-' LOVELL'S AMERICAN: Members' Bankruptcy Didn't Dissolve LLC MAGIC BRANDS: Plan Exclusivity Extended to Nov. 17 MASHANTUCKET WESTERN: S&P Withdraws 'D' Issuer Credit Rating MEDICOR LTD: Gets Go Signal to Send Plan to Creditors for Voting MERUELO MADDUX: Plan Confirmation Hearing Set for September 8 METISCAN INC: Posts $134,400 Net Loss in June 30 Quarter MEXICANA AIRLINES: Suspends Flights Until Further Notice MONTGOMERY REALTY: Plan of Reorganization Wins Court Approval MSGI SECURITY: Taps L J Soldinger as New Accountant NATIONAL RESORT: Voluntary Chapter 11 Case Summary NBTY INC: S&P Downgrades Corporate Credit Rating to 'B+' NEXSTAR BROADCASTING: S&P Raises Corporate Credit Rating to 'B' NORTEL NETWORKS: To Sell Multi Service Switch Business NOVA CHEMICALS: S&P Affirms 'B+' Corporate Credit Rating OLD TIME POTTERY: Emerges from Chapter 11 Protection OPTI CANADA: Completes Issuance of US$100 Million Senior Notes OTC HOLDINGS: Moody's Downgrades Unit's Default Rating to 'D' OTC HOLDINGS: S&P Downgrades Unit's Bank Loan Rating to 'D' OTC HOLDINGS: Files for Chapter 11 with Plan Support Deal OTC HOLDINGS: Case Summary & 30 Largest Unsecured Creditors PACIFIC AVENUE: Regions Bank Wants Examiner to Probe Books PEANUT CORP: Judge Backs $12 Million Deal for Peanut Victims PRIVATE MEDIA: Reports EUR931,000 Net Income for June 30 Quarter PROFESSIONAL VETERINARY: Court Okays Sept. 9 Auction PROFESSIONAL VETERINARY: Board OKs Key Employee Incentive Program PROFESSIONAL VETERINARY: $40MM DIP Loan Expires Sept. 30 PROTOSTAR LTD: Court to OK Disclosure Statement QWEST COMMS: Moves to Redeem All Outstanding Convertible Notes RADIO ONE: 2009 Stockholders' Equity Overstated by $46.2 Million RADIO ONE: Files Amended Financial Statements for March 31 Quarter REALOGY CORP: Bank Debt Trades at 13% Off in Secondary Market REFLECT SCIENTIFIC: Reports $132,015 Net Loss for Q2 RICHARD HINDIN: Plan Outline Hearing Continued Until September 7 RIDGE RESTAURANT: Case Summary & 12 Largest Unsecured Creditors RIM DEVELOPMENT: Textron Torpedos Debtor's Chapter 11 Plan RITE AID: Subpoenaed Over Connecticut Drug Pricing ROYAL INVEST: Posts $3.7 Million Net Loss in June 30 Quarter SAINT VINCENTS: To Sell Suburban Psychiatric Services SEARCHMEDIA HOLDINGS: NYSE AMEX Accepts Revised Plan of Compliance SENSATA TECHNOLOGIES: Moody's Upgrades Corp. Family Rating to 'B2' SINGLE TOUCH: June 30 Balance Sheet Upside-Down by $10-Mil. SK HAND TOOL: Seeks Approval of $3.5 Mil. Assets Sale With Ideal SNOQUALMIE ENTERTAINMENT: Moody's Keeps 'Caa3' Corp. Family Rating SONOMA VALLEY: Reports $2.23MM Net Income for Second Quarter SOUTH BAY: Asks for Access to Cash Collateral Until Jan. 31 SOUTH BAY: Proposes Incentive Program for 4 Key Employees SOUTH BAY: Wants Feb. 15 Extension for Removal Period SPHERIS INC: Ch. 11 Liquidation Plan Confirmed ST. JAMES MECHANICAL: Creditor's Excusable Neglect Argument Fails STATES INDUSTRIES: Files for Chapter 11 in Portland STATMON TECHNOLOGIES: Earns $1.2 Million in June 30 Quarter STRATUS MEDIA: Posts $1.8 Million Net Loss in June 30 Quarter TIGRENT INC: Reports $8.2 Million Net Income in June 30 Quarter TRANSAX INTERNATIONAL: Incurs $975,500 Net Loss in June 30 Quarter TRIBUNE CO: Bank Debt Trades at 37% Off in Secondary Market UTE MESA: Files Schedules of Assets & Liabilities UTE MESA: Section 341(a) Meeting Scheduled for Sept. 20 UTE MESA: Taps Bieging Shapiro as Bankruptcy Counsel UNITED ENERGY: Posts $59,383 Net Loss in June 30 Quarter VEBLEN EAST: U.S. Trustee Forms Three-Member Creditors Committee VISTEON CORP: Objects to Tower Automotive Claim VISTEON CORP: Taps Korn/Ferry as Search Advisors VISTEON CORP: Terminates ACH Employee Leasing Pacts VISTEON CORP: Tower Automotive Trustee Wants to Pursue Suit WARNER CHILCOTT: Moody's Upgrades Ratings on Senior Loan to 'Ba3' WECHSLER & CO: Files List of 3 Largest Unsecured Creditors WECHSLER & CO: Section 341(a) Meeting Scheduled for Sept. 29 WECHSLER & CO: Taps Rattet Pasternak as Bankruptcy Counsel WECK CORP: Taps Hahn & Hessen as Bankruptcy Counsel WECK CORP: U.S. Trustee Appoints 7 Members to Creditors Panel WECK CORP: Court Extends Filing of Schedules Until Sept. 27 WECK CORP: Taps Garden City as Claims & Noticing Agent WESTSTAR FINANCIAL: Posts $14.1 Million Net Loss in June 30 Qtr. WILLIAM PLATT: Foreclosure Suit Prompts Chapter 11 Filing WINDMILL DURANGE: Files Schedules of Assets & Liabilities WINSTAR COMMUNICATIONS: IDT Seeks to Revive Suit vs. Blackstone WORLDVEST INC: June 30 Balance Sheet Upside-Down by $1.2-Mil * Business Filings Down, Individual Filings Rise in July * Morgan Joseph Report Says Debt-Maturity Threat Waning * Federal Reserve Seeks Stay of Appeals Court Disclosure Ruling * Paul Weiss, Lowenstein Fined $2 Million for 'Frivolous' Suit * BOND PRICING -- For the Week From August 23 - 27, 2010 ********* 4 COINS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------ Debtor: 4 Coins, Inc. 3070 Moulton Road Martinsville, IN 46151 Bankruptcy Case No.: 10-12671 Chapter 11 Petition Date: August 23, 2010 Court: United States Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: Frank J. Otte Debtor's Counsel: Guy G. Kibbe, Esq. CHILCOTE & KIBBE, P.C. 7119 U.S. Highway 31 South Indianapolis, IN 46227 Tel: (317) 888-2669 Fax: (317) 888 2469 E-mail: chilcoteandkibbe@sbcglobal.net Estimated Assets: $0 to $50,000 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/insb10-12671.pdf The petition was signed by Michael J. Smith, president. ABRAXAS PETROLEUM: June 30 Balance Sheet Upside-Down by $1.0MM -------------------------------------------------------------- Abraxas Petroleum Corporation reported that as of June 30, 2010, it had $173,859,000 in total assets, $174,949,000 in total liabilities, and $1,090,000 in stockholders' deficit. The Company reported net income of $5,300,000 for the three months ended June 30, 2010, from a net loss of $10,032,000 for the same period in 2009. It reported net income of $16,483,000 for the six months ended June 30, 2010, from a net loss of $5,582,000 for the same period in 2009. Total revenue was $14,909,000 for the three months ended June 30, 2010, from $12,368,000 for the same period in 2009. Total revenue was $31,035,000 for the six months ended June 30, 2010, from $23,218,000 for the same period in 2009. A full-text copy of the Company's Form 10-Q report is available at no charge at http://ResearchArchives.com/t/s?6a2b Based in San Antonio, Texas, Abraxas Petroleum Corporation is an independent energy company primarily engaged in the development and production of oil and gas. AHERN RENTALS: Moody's Downgrades Default Rating to 'Caa3' ---------------------------------------------------------- Moody's Investors Service lowered the probability of default rating of Ahern Rentals, Inc., to Caa3 from Caa2, the rating on Ahern's $237 million 9.25% second lien notes due August 2013 to Ca (LGD 5, 72%) from Caa3 (LGD 5, 81%), and the speculative grade liquidity rating to SGL-4 from SGL-3. The corporate family rating of Caa2 has been affirmed. The rating outlook has been revised to negative from stable. Ratings: -- Probability of default to Caa3 from Caa2 -- Corporate family Caa2 -- $237 million 9.25% second priority global notes due August 2013 to Ca LGD5, 72% from Caa3 LGD5, 81% -- Speculative grade liquidity to SGL-4 from SGL-3 Ratings Rationale The downgrades reflect a weak liquidity profile, leverage exceeding 11 times, and Moody's view that non-residential construction activity levels in Ahern's region will not significantly rebound in 2011. Liquidity profile weakness stems from near-term (August 2011) expiration of Ahern's $310 million asset-based revolving credit line, which had borrowings of $284 million on June 30, 2010. The Caa3 probability of default downgrade reflects a challenging revolver refinancing environment and Moody's view that Ahern's very high leverage increases risk of a capital re- structure/creditor loss event that Moody's would probably consider a default. Although the equipment rental sector's demand low point appears to have passed, Moody's do not anticipate demand gains at a level that would sufficiently moderate Ahern's credit profile by mid-2011. The Caa3 probability of default rating does contemplate some possibility of the revolver refinancing effort succeeding without a capital re-structure/creditor loss event taking place. However, an improved liquidity profile thereafter would also depend on the company's potential to repay its $95 million first lien/second out term loan maturing December 2012. The corporate family rating remains unchanged despite the probability of default rating downgrade because Moody's have revised the firm's stress-scenario creditor recovery estimate to 60% from 50%. Ahern's tangible assets to debt ratio of just below 1.0 time, average fleet age of 44 months (June 2010) and expectation of used equipment price stability support the 60% creditor recovery estimate. The revision also encompasses recent developments of Neff Corp.'s Chapter 11 bankruptcy case underway. Moody's estimate of Neff's pending creditor recovery to debtor tangible assets, compared to Ahern's $585 million of tangible assets, would suggest greater than 50% recovery potential for Ahern's creditors. The foregoing statement considers that Neff's fleet likely holds relatively more earth-moving equipment than does Ahern's, mostly high-reach, fleet, and that near-term demand prospects for earth-moving equipment appear more promising than do those for high reach equipment. The higher probability of default and the better creditor recovery estimate, drove the second lien note rating downgrade and loss- given-default assessment change (to 72% from 81%), pursuant to Moody's Loss Given Default methodology. Pronounced downside risk from weak capital structure and liquidity profile underscore the negative rating outlook. The probability of default rating would be downgraded if likelihood of default were to become certain; the rating would be upgraded if the liquidity profile were to improve. Moody's last rating action on Ahern occurred January 27, 2010 when the probability of default rating was changed to Caa2 from Caa3 and a limited default (LD) designation was assigned. Ahern Rentals, Inc., headquartered in Las Vegas, Nevada, is a regional equipment supplier with 71 branches predominately in the Southwest region of the United States. The company specializes in high reach equipment. For the twelve months ended June 2010 Ahern generated revenues of $275 million. ALLIED ELECTRICAL: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Allied Electrical Contractors, LLC 1190 Walker Avenue Memphis, TN 38106-1840 Bankruptcy Case No.: 10-28999 Chapter 11 Petition Date: August 23, 2010 Court: United States Bankruptcy Court Western District of Tennessee (Memphis) Judge: Jennie D. Latta Debtor's Counsel: James D. Gentry, Esq. GENTRY ARNOLD, PLLC 5050 Poplar Avenue, Suite 511 Memphis, TN 38157 Tel: (901) 591-8800 Fax: (888) 492-4905 E-mail: gentrybankruptcy@gentryarnold.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/tnwb10-28999.pdf The petition was signed by Michael Eskridge, manager. AMCORE FINANCIAL: Files Chapter 11 Plan of Liquidation ------------------------------------------------------ AMCORE Financial filed with the U.S. Bankruptcy Court a proposed Chapter 11 Plan of Liquidation and an explanatory Disclosure Statement. BankruptcyData.com reports that the Plan provides for the liquidation of the Debtor's assets and for the distribution of the net available cash to creditors in order of their relative priority of distribution under the Bankruptcy Code. According to the Disclosure Statement, the Plan, BData relates, provides for these terms: * The Federal Deposit Insurance Corp. would receive, among other things: (a) $550,000 in cash; (b) any and all of the state income tax receivable, estimated to be $300,000; (c) any and all of the insurance refund proceeds; (d) a waiver by the Debtor of its right to assert any avoidance actions, including, but not limited to, to those arising under sections 545 to 553 of the Bankruptcy Code, related to the bank portion of the federal tax returns and refunds, both filed and not filed, received and to be received; (e) a release of certain potential claims; and (f) other compensation as set forth more fully in the Plan. * Holders of allowed general unsecured claims would receive their respective pro rata interests in the liquidation trust. As of the petition date, the Debtor had $6.4 million in cash, which includes approximately $3.3 million in short-term investments, from payments made to a trust as part of the Company's deferred compensation program, that is currently being held by the Wilmington Trust Company, as trustee, but that belongs to the Debtor for the benefit of its creditors. Of the cash amount, the Debtor estimates that roughly $1 million will be required to fund the cash reserves for the payment of administrative claims, priority tax claims, and other payments required under the Plan, as well as to pay for anticipated post- confirmation operating expenses in connection with the remaining wind down of the Debtor's affairs. A hearing to consider the Plan and Disclosure Statement is scheduled for September 8, 2010. About AMCORE Financial Rockford, Ill.-based AMCORE Financial is a registered bank holding company for AMCORE Bank. On April 23, 2010, regulators closed the bank and appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Harris National Association to assume all of the deposits of AMCORE Bank, National Association. AMCORE Financial filed for Chapter 11 protection on August 19 in Chicago (Bankr. N.D. Ill. Case No. 10-37144). The Company said in documents attached to the petition that it had assets of $7.2 million against debts of $75.4 million as of the bankruptcy filing. Roughly $57 million owed to Wilmington Trust, as indenture trustee, on account of a junior subordinated debt due 2037. George N. Panagakis, Esq., at Skadden, Arps, Slate, Meagher & Flom, in Chicago, serves as counsel to the Debtor. Kurtzman Carson Consultants LLC serves as claims agent. AMERICAN HOMEPATIENT: Stock Buy-Back Offer Now Expires Sept. 1 -------------------------------------------------------------- American HomePatient, Inc. announced Thursday that it is extending its previously announced self-tender offer for all outstanding shares of common stock of the Company at $0.67 per share, until 5:00 P.M., New York City time, Wednesday, September 1, 2010, unless the tender offer is further extended. The tender offer was previously set to expire at 5:00 P.M., New York City Time, Wednesday, August 25, 2010. Furthermore, American HomePatient (with the consent of Highland Capital Management, L.P.) is modifying the tender offer condition that the number of shares tendered, when added to the number of shares owned by Highland and its affiliates, constitutes at least 90% of the then outstanding shares of common stock (the "Minimum Condition"). Instead of 90%, the Minimum Condition will now be satisfied if the number of shares tendered, when added to the number of shares owned by Highland and its affiliates, constitutes at least 80% of the then outstanding shares of common stock. As of the close of business on August 25, 2010, 6,896,041 shares of common stock had been tendered in and not withdrawn from the offer. These tendered shares, when added to the number of shares owned by Highland and its affiliates, constitute approximately 87% of the outstanding shares of common stock. About American HomePatient Brentwood, Tenn.-based American HomePatient, Inc. (OTC BB: AHOM) is one of the nation's largest home health care providers with operations in 33 states. Its product and service offerings include respiratory services, infusion therapy, parenteral and enteral nutrition, and medical equipment for patients in their home. The Company's balance sheet at June 30, 2010, showed $240.7 million in total assets, $274.4 million in total liabilities, and a stockholders' deficit of $33.7 million. As reported in the Troubled Company Reporter on March 8, 2010, KPMG LLP, in Nashville, Tennessee, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted that at December 31, 2009, the Company had a net capital deficiency and had a net working capital deficiency resulting from $226.4 million of debt that matured on August 1, 2009. AMERICAN HOMEPATIENT: Lenders to Restructure Debt After Repurchase ------------------------------------------------------------------ American HomePatient, Inc., filed on August 26, Amendment No. 3 to its Schedule 13E-3 as filed with the Securities and Exchange Commission on July 7, 2010. The Schedule 13E-3 relates to a self- tender offer by the Company to repurchase all shares of its common stock at $0.67 in cash per share. Highland Crusader Offshore Partners, L.P., and Highland Capital Management, L.P., will not tender their shares in the Offer. The purpose of the Offer is to redeem as many Shares as possible from shareholders other than Highland in order to concentrate Highland's percentage ownership in the Company as a first step in the Company becoming 100% owned by Highland. The Schedule 13E-3 was filed in connection with the Offer, which is being made upon the terms and conditions set forth in the Offer to Purchase, dated July 7, 2010, and in the related Letter of Transmittal, each as originally filed with the Tender Offer Statement by the Company with the SEC on July 7, 2010, and subsequently amended on July 22, 2010, and August 5, 2010. If the Offer successfully closes, then Highland and Crusader, together with the Company's other senior lenders, have agreed to restructure the Company's secured debt, and the Company will be obligated to repurchase the tendered and not withdrawn Shares at the Offer price of $0.67 per share, net to the seller in cash, without interest and less applicable withholding taxes. If following the Offer less than 100% of the Shares are held by Highland, Crusader, or their affiliates, then the Company intends to pursue a second-step merger pursuant to which the remaining Shares not held by one of Highland, Crusader, or one of their affiliates will be repurchased for $0.67 per share, subject to appraisal rights for those shareholders who properly perfect and exercise such rights under Nevada law. If the Offer, and any required second-step merger, are successfully consummated, the Company will no longer be publicly owned, the Shares will cease to be quoted on the Over-the-Counter Bulletin Board, and the Company will cease to be required to make filings with the SEC or to comply with the SEC rules relating to public companies. A full-text copy of the Schedule 13E-3/A is available for free at: http://researcharchives.com/t/s?6a47 About American HomePatient Brentwood, Tenn.-based American HomePatient, Inc. (OTC BB: AHOM) is one of the nation's largest home health care providers with operations in 33 states. Its product and service offerings include respiratory services, infusion therapy, parenteral and enteral nutrition, and medical equipment for patients in their home. The Company's balance sheet at June 30, 2010, showed $240.7 million in total assets, $274.4 million in total liabilities, and a stockholders' deficit of $33.7 million. As reported in the Troubled Company Reporter on March 8, 2010, KPMG LLP, in Nashville, Tennessee, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted that at December 31, 2009, the Company had a net capital deficiency and had a net working capital deficiency resulting from $226.4 million of debt that matured on August 1, 2009. AMERICAN LIBERTY: Case Summary & 9 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: American Liberty For Cosmic Property, LLC P.O. Box 6467 Lake Worth, FL 33466 Bankruptcy Case No.: 10-34949 Chapter 11 Petition Date: August 23, 2010 Court: United States Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Paul G. Hyman Jr. Debtor's Counsel: Susan D. Lasky, Esq. SUSAN D. LASKY, PA 2101 N Andrews Ave. #405 Wilton Manors, FL 33311 Tel: (954) 565-5854 Fax: (954) 462-8411 E-mail: SDLPAECF@bellsouth.net Scheduled Assets: $1,554,264 Scheduled Debts: $3,772,722 A list of the Company's nine largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb10-34949.pdf The petition was signed by Nabil Kishk, as president of Halaal, LLC, Debtor's manager. AMERICAS ENERGY: Incurs $4.1 Million Net Loss in June 30 Quarter ---------------------------------------------------------------- Americas Energy Company-AECo, formerly Trend Technology Corporation, filed its quarterly report on Form 10-Q, reporting a net loss of $4.1 million on $3.6 million of revenue for the three months ended June 30, 2010. No year-over-year results are available for comparison. The Company's balance sheet as of June 30, 2010, showed $39.4 million in total assets, $31.3 million in total liabilities, and a stockholders' deficit of $8.1 million. Weaver & Martin, LLC,in Kansas City, Mo., expressed substantial doubt about the Company's ability to continue as a going concern, after auditing the Company's financial statements for the period from July 13, 2009 (inception), through March 31, 2010. The independent auditors noted that the Company has suffered recurring losses and had negative cash flows from operations. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a4c About Americas Energy Company-AECo Knoxville, Tenn.-based Americas Energy Company-AECo currently operates surface mines in southeastern Kentucky. The Company was incorporated under the name of Trend Technology Corporation in the State of Nevada on February 16, 2001. On October 14, 2009, the Company changed its name to Americas Energy Company-AECo in anticipation of the acquisition of Americas Energy Company, which occurred on January 21, 2010. The merger transaction was accounted for as a reverse acquisition with AECo considered as the accounting acquirer. AECO was organized in Nevada on July 13, 2009. On March 31, 2010, the Company acquired all of the outstanding shares of Evans Coal Corp. in exchange for $7,000,000 in cash, a $25,000,000 promissory note and a 2% overriding royalty on all coal sales generated from the properties acquired from Evans. Evans was organized in Kentucky on July 9, 1987, and is engaged in the business of mining high-grade steam coal from its properties located in Southeast Kentucky. ANTS SOFTWARE: Posts $6.2 Million Net Loss in June 30 Quarter ------------------------------------------------------------- ANTs Software Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $6.2 million on $1.5 million of revenue for the three months ended June 30, 2010, compared with a net loss of $3.9 million on $1.4 million of revenue for the same period of 2009. The Company's balance sheet as of June 30, 2010, showed $30.1 million in total assets, $25.0 million in total liabilities, and stockholders' equity of $5.1 million. According to the Form 10-Q, the Company has a net accumulated deficit during its years of operations totaling $141.4 million as of June 30, 2010. Weiser LLP, in New York, noted in its March 31, 2010, report that the Company has incurred significant recurring operating losses, decreasing liquidity, and negative cash flows from operations. "These factors raise substantial doubt about the Company's ability to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a1f Based in San Francisco, ANTs Software Inc. developed the ANTs Compatibility Server and continues to develop additional ACS products. The ACS brings the promise of a fast, cost-effective method to move applications from one database to another and enables enterprises to achieve cost efficiencies by consolidating their applications onto fewer databases. APARTMENT INVESTMENT: S&P Affirms 'BB+' Corporate Credit Rating --------------------------------------------------------------- Multifamily rental fundamentals are improving; notably, rental rates have been trending higher year-to-date. S&P feels that operating conditions are firming and that apartment REIT portfolio cash flows are near trough levels and should improve sequentially in the second half of 2010. S&P affirmed its 'BB+' corporate credit rating on Apartment Investment & Management Co. and its operating partnership, AIMCO Properties L.P. S&P also affirmed the 'B+' rating assigned to the company's preferred securities. The outlook remains negative. AIMCO's debt protection measures are stabilizing but remain weak. They would face further downward pressure if the already shallow economic recovery falters and derails the nascent apartment recovery. Standard & Poor's Ratings Services affirmed its ratings on Apartment Investment and Management Co. and its operating partnership AIMCO Properties L.P. The outlook remains negative. "The rating on AIMCO reflects the company's significant financial profile, notably higher-than-average leverage, and weak fixed- charge coverage," said Standard & Poor's credit analyst George Skoufis. "AIMCO's aggressive asset recycling has been dilutive to cash flow and contributed to the weaker fixed-charge coverage. However, the portfolio quality has improved." AIMCO's conventional apartment portfolio has performed well relative to its peers and should continue to improve as apartment fundamentals strengthen. Long debt tenor and proactive balance sheet management has positioned the company with modest debt maturities through 2011 and a maturity schedule with manageable annual maturities (less than 10%) beyond 2011. Denver-based AIMCO is one of the nation's largest multifamily real estate investment trusts. The company owns or has an interest in 232 conventional (71,909 units) and 254 affordable (29,540 units) communities spread across 43 states, the District of Columbia, and Puerto Rico. AIMCO also provides property and asset management services to an additional 331 properties (27,901 units). The outlook remains negative. AIMCO's debt protection measures are stabilizing but remain weak. They would face further downward pressure if the already shallow economic recovery falters and derails the nascent apartment recovery. S&P would lower the ratings one notch if coverage measures have not troughed and deteriorate from current levels. There is no momentum for ratings to improve due to AIMCO's highly leverage financial profile and weak coverage metrics. ARROW AIR: Auction Cancelled as Bids Not Suitable ------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Arrow Air Inc. canceled an auction scheduled for August 25 because none of the bids complied with requirements set down by the bankruptcy judge. At the canceled auction, Arrow hoped to sell all its assets, including the operating certificate that allows the company to operate as an airline. About Arrow Air Miami, Florida-based Arrow Air, Inc., provides scheduled and charter cargo logistics services between the United States, Central and South America, and the Caribbean. The Company is a wholly owned subsidiary of Arrow Air Holdings Corp., which is 95% owned by an affiliate of MatlinPatterson Global Opportunities Partners III. Arrow Air, Inc., dba Arrow Cargo, filed for Chapter 11 bankruptcy protection on June 30, 2010 (Bankr. S.D. Fla. Case No. 10-28831). Jordi Guso, Esq., in Miami, Florida, represents the Debtor in its restructuring effort. The Chapter 11 case is Arrow's third. Arrow halted operations the day before the Chapter 11 filing. Arrow Air intends to liquidate under Chapter 11. In its schedules, Arrow Air, Inc., disclosed $40,246,024 in assets and $87,212,942 in debts. ASARCO LLC: Bankruptcy Court Closes 22 Affiliates' Cases -------------------------------------------------------- Judge Richard Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas entered a final decree and order closing the bankruptcy cases of 22 of ASARCO LLC's debtor affiliates. The Bankruptcy Court designates ASARCO LLC's bankruptcy case, Case No. 05-21207, as the surviving case. The 22 ASARCO Affiliates' administered cases are: Company Name Case No. ------------ -------- Lac d'Amiante Du Quebec Ltee 05-20521 CAPCO Pipe Company, Inc. 05-20522 Cement Asbestos Products Company 05-20523 Lake Asbestos of Quebec, Ltd. 05-20524 LAQ Canada, Ltd. 05-20525 ASARCO Consulting, Inc. 05-21346 ASARCO Master, Inc. 05-21883 Bridgeview Management Company, Inc. 05-21884 ASARCO Oil and Gas Company, Inc. 05-21886 ALC, Inc. 05-21888 Covington Land Company 05-21892 AR Mexican Explorations, Inc. 05-21893 American Smelting and Refining Company 05-21894 Southern Peru Holdings, LLC 06-20774 AR Sacaton, LLC 06-20775 ASARCO Exploration Company, Inc. 06-20776 Wyoming Mining and Milling Company 08-20197 Alta Mining and Development Company 08-20198 Tulipan Company, Inc. 08-20199 Blackhawk Mining and Dev. Co., Ltd. 08-20200 Peru Mining Exploration and Dev. Co. 08-20201 Green Hill Cleveland Mining Company 08-20202 Prior to the entry of Bankruptcy Court's Final Order, Stutzman, Bromberg, Esserman & Plifka; Oppenheimer Blend Harrison + Tate, Inc., and Future Claims Representative Robert C. Pate filed a joint objection to the Plan Administrator's request to close the 22 Administered Cases. SBEP serves as counsel to the Official Committee of Asbestos Claimants. Oppenheimer represents the FCR. The Objecting Parties argued that their final fee applications and requests for payment of administrative claims are still outstanding. They pointed out, among other things, that none of the Debtors' reorganization cases are fully administered and hence, the relief sought in the request is premature and inappropriate. Notwithstanding the entry of the Final Order, the Bankruptcy Court avers that it will retain subject matter jurisdiction over: (a) the final fee applications of the Objecting Parties; and (b) the adversary proceeding captioned Lac d'Amiante du Quebec, Ltee, et al. v. Allstate Insurance Company, et al., No. 07-2025 (Bankr. S.D. Tex.). Judge Schmidt directs the Plan Administrator and Reorganized ASARCO to comply with their obligations under the Confirmed Plan, the Confirmation Order, and any other applicable orders of the Bankruptcy Court and the U.S. District Court for the Southern District of Texas, as they relate to any final order resolving the Final Fee Applications. In this light, the contentions of the Objecting Parties are deemed resolved and withdrawn in their entirety. Any requirement that the Plan Administrator and the Reorganized Debtors file further post-confirmation reports is waived in the 22 Administered Cases, and all further reporting relating to the Reorganized Debtors will occur on a consolidated basis in the Surviving Case. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On December 9, 2009, Grupo Mexico, S.A.B., consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by ASARCO LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ASARCO LLC: Firefighters Sue to Stop Consolidation With SCC ----------------------------------------------------------- A firefighters' trust fund sued Southern Copper Corporation and German Larrea over Grupo Mexico, S.A.B. De C.V.'s plan of consolidating SCC with ASARCO LLC into a single business. Mr. Larrea is Grupo Mexico's president and chief executive officer. The Oklahoma Firefighters Pension & Retirement System filed its complaint in Delaware's Chancery Court, arguing that the proposed merger transaction grossly overvalued ASARCO at US$5.9 billion, Reuters reports. The case is Oklahoma Firefighters v. German Larrea and Southern Copper Corp., CA5729, Delaware Chancery Court (Wilmington). According to Bloomberg News, the firefighters assert that Grupo Mexico, which owns 80% of SCC, is not seeking approval of minority shareholders. The complaint seeks class action status. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On December 9, 2009, Grupo Mexico, S.A.B., consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by ASARCO LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ASARCO LLC: Plan Admin Gets Sept 17 Extension for Claim Objections ------------------------------------------------------------------ Mark A. Roberts of Alvarez and Marsal North America LLC, Reorganized Asarco's Plan Administrator, sought and obtained an order from Judge Richard S. Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas for an extension of the time by which he can file objections to claims pursuant to Section 14.2 of the Confirmed Plan of Reorganization and Rule 9006(b)(1)(1) of the Federal Rules of Bankruptcy Procedure, through and including Sept. 17, 2010. The Plan Administrator sought the extension to prevent any unmeritorious claims from becoming allowed merely by the passage of time. The Plan Administrator, along with Reorganized ASARCO LLC, diligently reviewed disputed claims since the effective date of the Debtors' Confirmed Plan, according to Dion W. Hayes, Esq., at McGuirewoods LLP, in Richmond, Virginia. He notes that since the Effective Date, the Plan Administrator distributed approximately $3.349 billion to holders of Allowed Claims. The Plan Administrator distributed an additional $36 million as other claims have become allowed. The Plan Administrator continues to make distributions on account of Allowed Claims as they become allowed or when the Plan Administrator and ASARCO determine not to file an objection, according to Mr. Hayes. He contends that the requested extension will not prejudice the holders of Disputed Claims because postpetition interest on those claims continues to accrue and will be paid on the allowed amount, if any, of a Disputed Class 3 Claim, if and when it becomes an Allowed Claim. In subsequent order, Judge Schmidt extended ASARCO and the Plan Administrator's deadline to object to (i) the Blue Ledge Claim, through September 17, 2010, and (ii) the Kelly Camp Claim through November 1, 2010. The Blue Ledge Claim, also known as Claim No. 18284, is asserted for response costs and natural resource damages at the Blue Ledge Mine in Siskiyou County, California. Pursuant to a settlement, the United States of America and ASARCO have agreed to and will exchange documents requested by each side regarding the Blue Ledge Claim. The parties also agreed to work cooperatively to ensure that those documents are produced, and that a deposition of the custodian of documents for ASARCO will be held, no later than September 10, 2010. Under the Blue Ledge settlement, ASARCO and the Government will file a joint stipulation with the U.S. District Court for the Eastern District of California, agreeing that (i) the Government will have until October 1, 2010, to file any responsive pleading to or motion to dismiss the complaint filed and served by ASARCO in the District Court, Civil Action No. 10-cv-00802-JAM-KJN, and (ii) that all parties reserve all rights and defenses, including relating to any motion to dismiss that action. In full satisfaction and compromise of the Kelly Camp Claim, ASARCO, the Plan Administrator and the Government agree that the Government will be allowed a general unsecured claim for $100,000. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On December 9, 2009, Grupo Mexico, S.A.B., consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by ASARCO LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ASARCO LLC: To Pay $100,000 for Washington Mine Cleanup ------------------------------------------------------- Bankruptcy Law360 reports that Asarco LLC has agreed to pay $100,000 to resolve a claim brought in bankruptcy court by the U.S. Department of Agriculture seeking cleanup costs related to a copper and tungsten mine in Washington state. Asarco's plan administrator filed a notice with the U.S. Bankruptcy Court for the Southern District of Texas on Tuesday indicating that the parties had reached a settlement agreement, according to Law360. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On December 9, 2009, Grupo Mexico, S.A.B., consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by ASARCO LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) AVAYA INC: Bank Debt Trades at 12% Off in Secondary Market ---------------------------------------------------------- Participations in a syndicated loan under which Avaya, Inc., is a borrower traded in the secondary market at 87.58 cents-on-the- dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.97 percentage points from the previous week, The Journal relates. The Company pays 275 basis points above LIBOR to borrow under the credit facility, which matures on October 26, 2014. The loan is not rated by Moody's and Standard & Poor's. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Avaya, Inc., based in Basking Ridge, New Jersey, is a supplier of communications systems and software for enterprise customers. Avaya carries a 'B3' corporate family rating from Moody's Investors Service. In December 2009, Moody's downgraded Avaya's corporate family rating to 'B3' from 'B2', citing that the downgrade was driven by challenges presented by the acquisition of Nortel's enterprise assets as well as the large amount of additional debt incurred to finance the acquisition (around $1 billion). BASHAS' INC: Lenders' Compromise to Pave Way for Emergence ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that secured bank lenders and noteholders reached a settlement with Bashas' Inc. that will result in the withdrawal of appeals from the Aug. 13 confirmation order approving the supermarket operator's Chapter 11 plan. According to the report, the agreement calls for the lenders to be paid each month rather than once a year. The monthly payments are to be "in accord with the debtor's projections," according to a court filing. In addition, the lenders can pursue their claims for default interest, fees, expenses and "yield maintenance." The lenders, owed some $217 million, include Prudential Life Insurance Co. of America, Wells Fargo Bank NA, Bank of America NA, and Compass Bank. Bashas' plan promises to creditors receiving full payment, and shareholders retaining their equity. About Bashas' Inc. Bashas' Inc. is a 77-year-old grocery chain that owns 158 retail stores located throughout Arizona. It is doing business as National Grocery, Bashas Food, Bashas' United Drug, Food City, Eddie's Country Store, A.J. Fine Foods, Western Produce, Bashas' Distribution Center, Sportsman's, and Bashas' Dine. The Company and its affiliates filed for Chapter 11 bankruptcy protection on July 12, 2009 (Bankr. D. Ariz. Case No. 09-16050). Frederick J. Petersen, Esq., at Mesch, Clark & Rothschild, P.C., assists the Debtors in their restructuring efforts. Michael W. Carmel, Ltd., is the Debtors' co-counsel. Deloitte Financial Advisory LLP serves as financial advisors. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. In its bankruptcy petition, Bashas' estimated assets and debts of $100 million to $500 million as of the Petition Date. BIOVANCE TECHNOLOGIES: Case Summary & 20 Largest Unsec Creditors ---------------------------------------------------------------- Debtor: Biovance Technologies, Inc. dba Pro Nutrient Technologies, Inc Biovance Life Sciences, Inc. Biovance R & D, Inc. 11515 No. 84th St. Omaha, NE 68122 Bankruptcy Case No.: 10-82441 Chapter 11 Petition Date: August 23, 2010 Court: United States Bankruptcy Court District of Nebraska (Omaha Office) Judge: Thomas L. Saladino Debtor's Counsel: David Grant Hicks, Esq. POLLAK & HICKS PC 6910 Pacific St. #216 Omaha, NE 68106 Tel: (402) 345-1717 E-mail: dhickslaw@aol.com Estimated Assets: $0 to $50,000 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/neb10-82441.pdf The petition was signed by William E. Julian, president. BLOCKBUSTER INC: Prepares for September Chapter 11 Filing ---------------------------------------------------------- Blockbuster Inc. has informed multiple movie studios that the company is preparing for a chapter 11 bankruptcy filing in mid- September, nertDockets reports, citing The Los Angeles Times. According to the report, the filing, if it occurs, would be the second chapter 11 filing by a major movie rental chain just this year. About Blockbuster Inc. Blockbuster Inc. -- http://www.blockbuster.com/-- 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's balance sheet as of April 4, 2010, showed $1.319 billion in assets, $1.693 billion in liabilities, and 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. In February 2010, Blockbuster hired law firm Weil, Gotshal & Manges and investment bank, Rothschild Inc., to explore strategies for cutting the Company's $1 billion debt load. In March 2010, the Company said it was seeking to refinance its debt and could be forced into bankruptcy. Blockbuster has received from bondholders a series of moratoriums on payment of principal and interest, the latest of which expires September 30, 2010. According to Bloomberg News, Blockbuster received the latest one-month reprieve from creditors so it can prepare for a possible bankruptcy filing in September. BRANSCUM PRODUCE: Files for Chapter 11 Bankruptcy in Kentucky ------------------------------------------------------------- Lesley Chubick at The Packer reports that a meeting of creditors of Branscum Produce LLC is set for Oct. 8, 2010, at 12:00 p.m., at the Bowling Green Courthouse. Scot A. Bachert serves as the company's attorney, Ms. Chubick notes. Red Book Credit Services reported that Branscum's average days-to- pay was at 42 before the Chapter 11 filing. The average days to pay as of August 1 for a chain store or wholesaler was 30, compared with the same time last year, when RBCS was seeing the average days to pay at 31. Branscum Produce LLC filed a Chapter 11 petition on August 6 (Bankr. W.D. Ky. Case No. 10-11226). The Debtor estimated assets and debts of under $1 million in its Chapter 11 petition. See http://bankrupt.com/misc/kywb10-11226.pdf CHEMTURA CORP: Settles Environmental Claims With EPA for $26 Mil. ----------------------------------------------------------------- Chemtura Corporation and its debtor affiliates have entered into an agreement with the United States Environmental Protection Agency, which resolves the Debtors' liabilities at contaminated sites across the U.S. for approximately $26 million. The Agreement settles Chemtura's environmental liabilities under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, commonly known as Superfund), and for violations of the Clean Air Act (CAA), the Clean Water Act (CWA), and the Emergency Planning and Community Right-to-Know Act (EPCRA). Chemtura will pay approximately $26,000,000 in cash and allowed claims for 17 properties, 12 of which are on EPA's list of the most serious hazardous waste sites requiring cleanup. Much of the money paid to the United States will be used by EPA to pay for future cleanup work; more than $8 million will be used to address environmental cleanup and restoration work at the Diamond Alkali Superfund Site in New Jersey. Chemtura will continue to honor its cleanup work obligations at the Laurel Park, Inc. Superfund Site in Naugatuck, Connecticut. The settlement agreement, however, does not resolve Chemtura's environmental liabilities arising out of the Gowanus Canal Superfund Site. Those liabilities, which are expressly excluded from the scope of the Settlement, remain the subject of ongoing negotiation. The settlement also resolves a claim for penalties under CERCLA, CAA, CWA and EPCRA due to violations stemming from a May 2004 fire at Chemtura's Bio-Lab, Inc. facility in Conyers, Georgia. The U.S. Treasury will receive approximately $785,000 for the penalties. Chemtura will make cash payments, aggregating more than $9,000,000, for these Sites: Site Cash Payment ---- ------------ Beacon Heights Landfill Superfund Site $3,800,000 Cleve Reber Site in Louisiana 125,000 Cooper Drum Company Superfund Site, CA 710,000 Delaware Sand and Gravel Superfund Site, DE 1,237,500 Halby Chemical Superfund Site, DE 450,000 Interstate Lead Company Superfund Site, AL 192,752 Stauffer-LeMoyne Superfund Site, AL 1,049,553 Stoney Creek Technologies Site, PA 1,554,618 In addition, EPA will have environmental claims, aggregating more than $16,900,000, allowed against Chemtura: Site Claim Allowed ---- ------------- Beacon Heights Site, CT $1,000,000 Carolawn Site, SC 0 Central Chemical Site, MD 150,000 Cleve Reber Site, LA 20,000 Cooper Drum Site, CA 400,000 Delaware Sand and Gravel Site, DE 300,000 Diamond Alkali Site, NJ (EPA) 7,327,850 Diamond Alkali Site, NJ (Nat'l. Oceanic and Atmospheric Administration) 1,172,150 Halby Site, DE 200,000 ILCO Site, AL 21,359 Jadco Site, NC 1,584 Landia Site, FA 711,111 LWD Site, KY 2,300 Malone Service Site, TX 175,000 Red Panther Site, MS 285,000 Stauffer-LeMoyne Site, AL 85,588 Stoney Creek Site, PA 4,245,382 Swope Oil Site, NJ 0 Bio-Lab Facility, GA 785,714 El Dorado Site, AR 45,000 The settlement agreement will be lodged with the U.S. Bankruptcy Court for the Southern District of New York for a period of 15 days before its entry to provide public notice and to afford members of the public the opportunity to comment on the settlement. About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation (CEM) -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 on March 18, 2009 (Bankr. S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel. Wolfblock LLP serves as the Debtors' special counsel. The Debtors' auditors and accountant are KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors are Joele Frank, Wilkinson Brimmer Katcher; their business advisors are Alvarez & Marsal LLC and Ray Dombrowski serves as their chief restructuring officer; and their claims and noticing agent is Kurtzman Carson Consultants LLC. As of December 31, 2008, the Debtors had total assets of $3.06 billion and total debts of $1.02 billion. Bankruptcy Creditors' Service, Inc., publishes Chemtura Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Chemtura Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHEMTURA CORPORATION: Issues $455 Million in Senior Notes --------------------------------------------------------- Chemtura Corporation, debtor-in possession has completed its previously announced private placement offering of $455 million in principal amount of 7.875% unsecured senior notes due 2018. Chemtura also entered into its previously announced senior secured term loan facility in the principal amount of $295 million. Chemtura issued the senior notes and entered into the term loan to fund its anticipated exit financing package required under its Chapter 11 plan of reorganization, if the Plan is confirmed. The net proceeds of the senior notes and term loan have been funded into segregated escrow accounts for release to Chemtura if the Plan is confirmed by the Bankruptcy Court and certain other conditions are satisfied. Upon satisfaction of the escrow conditions, including confirmation of the Plan, Chemtura intends to use the net proceeds of the senior notes and the term loan, together with cash on hand, to make payments contemplated under the Plan and to fund Chemtura's emergence from Chapter 11. About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation (CEM) -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 on March 18, 2009 (Bankr. S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel. Wolfblock LLP serves as the Debtors' special counsel. The Debtors' auditors and accountant are KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors are Joele Frank, Wilkinson Brimmer Katcher; their business advisors are Alvarez & Marsal LLC and Ray Dombrowski serves as their chief restructuring officer; and their claims and noticing agent is Kurtzman Carson Consultants LLC. As of December 31, 2008, the Debtors had total assets of $3.06 billion and total debts of $1.02 billion. Bankruptcy Creditors' Service, Inc., publishes Chemtura Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Chemtura Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CITIZENS DEVELOPMENT: Case Summary & Creditors List --------------------------------------------------- Debtor: Citizens Development Corp. 1295 Discovery Street San Marcos, CA 92078-4032 Bankruptcy Case No.: 10-15142 Chapter 11 Petition Date: August 26, 2010 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Judge: Margaret M. Mann Debtor's Counsel: Ron Bender, Esq. LEVENE, NEALE, BENDER, YOO & BRILL LLP 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 Fax: (310) 229-1244 E-mail: rb@lnbyb.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Matthew C. DiNofia, sole shareholder and president. Debtor-affiliates that filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- In re LSM Executive Course, LLC 10-07480 04/30/10 In re LSM Hotel, LLC 10-13024 07/26/10 Citizens Development's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ German American Capital Corp Guarantee of debt $11,018,955 60 Wall Street, 10th Floor New York, NY 10005 Ron Frazar Guarantee of debt $6,000,000 P.O. Box 4970 Whitefish, MT 59937 California Credit Union Guarantee of debt $5,922,568 701 N. Brand Boulevard, 3rd Floor Glendale, CA 91203 El Toreador Prop Grp/J Serhan Guarantee of debt $4,000,000 550 W. C. Street, Suite 700 San Diego, CA 92101 Bank of the West Guarantee of debt $3,000,000 180 Montgomery Street, 25th Floor San Francisco, CA 94101 San Diego County Treasurer - Property Tax $237,637 Jani-King of Calif, Inc. - SDO Trade Debt $77,761 CA State Board of Equalization Sales and Use Tax $56,241 Foley & Lardner LLP Trade Debt $36,637 Vallecitos Water District Trade Debt $31,133 San Diego Gas & Electric Trade Debt $31,075 Vanorsdale Insurance Services Trade Debt $25,520 Haineslaw Trade Debt $24,871 Kitabayashi Design Studio Trade Debt $19,428 Steve I. Kastner, Esq. Trade Debt $17,571 Acushnet/Titlest Trade Debt $15,881 Bank of America Trade - Credit Card $13,031 Dept of Water Resources Trade - Gov't Fees $12,500 Worlwide Payment Systems, S.A. Trade Debt $10,597 TIG Global LLC Trade Debt $10,000 CLEAR CHANNEL: To Accelerate CFO Casey's Relocation to San Antonio ------------------------------------------------------------------ Thomas W. Casey became the chief financial officer of Clear Channel Communications Inc. effective as of January 4, 2010. Clear Channel said in an August 20 regulatory filing that pursuant to the terms of his previously disclosed employment agreement, in connection with his relocation to the Company's corporate headquarters in San Antonio, Texas, Mr. Casey is eligible for certain relocation benefits under the Company's relocation policies for a period of 24 months after the effective date of his employment agreement. In order to accelerate Mr. Casey's relocation to San Antonio, Texas from the 24-month period referenced in his employment agreement, a subsidiary of the Company also has entered into a relocation services agreement with a third party relocation company and has agreed to provide Mr. Casey with an amount to cover duplicate housing expenses, if necessary due to his accelerated relocation, each as described below. Clear Channel added in the Securities and Exchange Commission filing that pursuant to the Relocation Agreement, the relocation company will obtain appraisals on the value of Mr. Casey's residence in Washington from two independent professional appraisers and the relocation company will offer to purchase Mr. Casey's home at a purchase price equal to the average of those two appraisals. If Mr. Casey accepts the offer, the relocation company will purchase Mr. Casey's home and subsequently resell it. If Mr. Casey locates a buyer at a purchase price that exceeds that average appraised value, the relocation company will agree to purchase Mr. Casey's home at the higher price and complete the sale to the buyer. If Mr. Casey incurs duplicate housing expenses due to his accelerated relocation to San Antonio and the timing of the sale of his Washington home to the relocation company, a subsidiary of the Company will provide Mr. Casey with up to $25,000 for housing expenses during the period of time after his relocation to San Antonio until the sale of his Washington home to the relocation company. Upon the sale of his Washington home to the relocation company, Mr. Casey will receive the equity value in the home. A subsidiary of the Company also will compensate Mr. Casey up to $270,000 for any losses to him on the sale of his Washington home after the first 10% of any such losses, and also will compensate him for any taxes resulting from these relocation benefits. A subsidiary of the Company will bear the costs associated with the relocation company's purchase and subsequent resale of Mr. Casey's home, as well as the costs of maintaining the home during the resale process. A subsidiary of the Company will receive any gain, and reimburse the relocation company for any loss, on the resale of Mr. Casey's home. About Clear Channel Clear Channel Communications, Inc. -- http://www.clearchannel.com/ -- is a diversified media company with three primary business segments: radio broadcasting, outdoor advertising and live entertainment. Clear Channel Communications is the operating subsidiary of San Antonio, Texas-based CC Media Holdings, Inc. Clear Channel carries a 'Caa2' corporate family rating from Moody's Investors Service. CN DRAGON: Swings to $24,523 Net Income in June 30 Quarter ---------------------------------------------------------- CN Dragon Corporation reported net income of $24,523 on $363,542 of revenue for the transition period from April 1, 2010, to June 30, 2010, compared with a net loss (pro-forma) of $15,480 on no revenue for the three months ended June 30, 2010. The Company changed its accounting year ended from April 30 to March 31 starting from 2011. The prior period is adjusted to reflect the pro-forma result of presentation. The Company's balance sheet as of June 30, 2010, showed $1.88 million in total assets, $1.90 million in total liabilities, and a stockholders' deficit of $22,056. Albert Wong & Co., in Hong Kong, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company has not generated significant revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. In its latest 10-Q, the Company discloses that it as of June 30, 2010, it has incurred an accumulated deficit of $5.22 million, and that its current liabilities exceed its current assets by $62,098, which may not be sufficient to pay for the operating expenses in the next 12 months. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a4f Based in Hong Kong, China, CN Dragon Corporation was incorporated under the laws of the State of Nevada on August 30, 2001, under the name Infotec Business Systems, Inc. On June 8, 2007, the Company changed its name to Wavelit, Inc. On September 14, 2009, the Company changed its name to CN Dragon Corporation and began new business operations in the PRC. On May 17, 2010, the Company acquired CNDC Corporation, as its wholly-owned subsidiary. CNDC is a hotel management, development and consulting group. CNDC was incorporated under the laws of the British Virgin Islands on March 26, 2008. CNDC operates through its wholly-owned subsidiaries, CN Dragon Holdings Ltd and Zhengzhou Dragon Business Ltd, which were incorporated in Hong Kong and the People's Republic of China respectively. COLETO CREEK: Bank Debt Trades at 11% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which Coleto Creek Power L.P. is a borrower traded in the secondary market at 89.40 cents- on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.75 percentage points from the previous week, The Journal relates. The Company pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on June 28, 2013, and carries Moody's B1 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. As reported by the Troubled Company Reporter on August 3, 2010, Standard & Poor's affirmed its 'B+' rating on Coleto Creek Power L.P.'s $735 million senior secured first-lien term loan due 2013, $170 million synthetic letter of credit facility maturing 2013, and $60 million working capital revolving facility maturing 2011. The outlook is stable. The recovery rating is '2'. "The 'B+' rating reflects a high debt burden, substantial refinancing risk when the term loans mature in June 2013, and poor merchant market conditions for the short to medium term," said Standard & Poor's credit analyst Swami Venkataraman. Coleto is an indirect, wholly owned partnership subsidiary of International Power PLC (BB/Watch Dev/--) and owns the 632- megawatt coal-fired Coleto plant in the Electric Reliability Council of Texas region. COLONIAL BANCGROUP: Says It May be Entitled to Tax Refunds ---------------------------------------------------------- The Colonial BancGroup, Inc., said in a regulatory filing that it may be entitled to federal income tax refunds as a result of losses for during tax years 2008 and 2009. On August 26, 2010, the Company filed with the U.S. Bankruptcy Court for the Middle District of Alabama, a second amendment to "Schedule B - Personal Property" section in its schedules of assets and liabilities. The purpose of the Second Amendment is to provide updated information with respect to certain personal property assets of the Company and its entitlement to certain tax refunds. As set forth in the Second Amendment, the Company believes that it may be entitled to federal income tax refunds as a result of losses for tax purposes during tax years 2008 and 2009. A dispute exists between the Company and the FDIC-Receiver regarding entitlement to any tax refunds that may be received from any federal, state or local taxing authority. The issue of ownership of tax refunds is presently pending before the United States District Court for the Middle District of Alabama. Absent the final adjudication of ownership or settlement of any disputes with the FDIC-Receiver, it is not possible to state with certainty the amount of the Company's entitlement to any tax refund received from any federal, state or local taxing authority. If any tax refund is received by the Company or the FDIC-Receiver, that refund is required to be deposited into a separate, segregated account in the Company's name pursuant to the Stipulation and Order Regarding Establishment of Segregated Account for Tax- Related Payments [Doc. No. 621] pending resolution of the issue of ownership. At this time, the Company is unable to state with any degree of certainty the precise manner in which the Company will seek a refund of taxes from the Internal Revenue Service or the amount or timing of any refund, though the Company intends to file its 2009 federal income tax return and make its 5-year carryback election no later than September 15, 2010. A copy of the Form 8-K filing is available for free at http://researcharchives.com/t/s?6a45 A copy of the Second Amendment is available for free at: http://researcharchives.com/t/s?6a46 About The Colonial BancGroup Headquartered in Montgomery, Alabama, The Colonial BancGroup, Inc., (NYSE: CNB) was holding company to Colonial Bank, N.A, its banking subsidiary. Colonial bank -- http://www.colonialbank.com/ -- operated 354 branches in Florida, Alabama, Georgia, Nevada and Texas with over $26 billion in assets. On August 14, 2009, Colonial Bank was seized by regulators and the Federal Deposit Insurance Corporation was named receiver. The FDIC sold most of the assets to Branch Banking and Trust, Winston-Salem, North Carolina. BB&T acquired $22 billion in assets and assumed $20 billion in deposits of the Bank. The Colonial BancGroup filed for Chapter 11 bankruptcy protection on August 25, 2009 (Bankr. M.D. Ala. Case No. 09-32303). W. Clark Watson, Esq., at Balch & Bingham LLP, and Rufus T. Dorsey IV, Esq., at Parker Hudson Rainer & Dobbs LLP, assist the Debtor in its restructuring effort. In its schedules, the Debtor disclosed $45 million in total assets and $380 million in total liabilities as of the Petition Date. COMPETITIVE TECH: Presented Equity Status for Continued Listing --------------------------------------------------------------- Competitive Technologies, Inc. disclosed that John B. Nano, CTT's Chairman, President, and CEO, and other Company executives met with the Listing Qualifications Panel of the NYSE Amex and Exchange Staff members at the previously announced delisting hearing on August 25, 2010. Following the presentation and in depth discussion, members of the Panel advised CTT that they will review all the information at their disposal, including information presented and discussed at the hearing, and make a final listing determination. CTTs' stock will continue to trade on the NYSE Amex and company operations will continue as usual. "We appreciate the opportunity to describe in detail our financial situation and the willingness of the Exchange's Panel and Staff to consider the detailed information that we have presented," said Mr. Nano. About Competitive Technologies Competitive Technologies -- http://www.competitivetech.net-- established in 1968, provides distribution, patent and technology transfer, sales and licensing services focused on the needs of its customers and matching those requirements with commercially viable product or technology solutions. CTT is a global leader in identifying, developing and commercializing innovative products and technologies in life, electronic, nano, and physical sciences developed by universities, companies and inventors. CTT maximizes the value of intellectual assets for the benefit of its customers, clients and shareholders. CONTINENTAL AIRLINES: Completes $800 Million Note Private Offering ------------------------------------------------------------------ Continental Airlines Inc. completed on Aug. 18, 2010, its private offering of $800,000,000 aggregate principal amount of 6.750% Senior Secured Notes due 2015. The Senior Secured Notes were sold only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended. The Senior Secured Notes were issued under an Indenture, dated as of Aug. 18, 2010, among Continental, Continental's wholly-owned subsidiaries Air Micronesia, Inc. and Continental Micronesia, Inc., as guarantors, The Bank of New York Mellon Trust Company, N.A., as trustee, and Wilmington Trust FSB, as collateral trustee. The Senior Secured Notes will mature on September 15, 2015. The Senior Secured Notes bear interest at a rate of 6.750% per annum, payable semi-annually on March 15 and September 15 of each year, beginning March 15, 2011. The indebtedness evidenced by the Senior Secured Notes may be accelerated upon the occurrence of events of default under the Indenture which are customary for financings of this nature. The Senior Secured Notes will be senior secured obligations of Continental, unconditionally guaranteed on a senior secured basis by the Guarantors. The Senior Secured Notes are secured by Continental's route authority to operate between: i) Newark and Tokyo, Japan, ii) Houston and Tokyo, Japan, iii) Newark and Hong Kong, China, iv) Newark and Beijing, China, v) Newark and Shanghai, China, vi) Newark and London, England and vii) Houston and London, England, certain of Continental's airport takeoff and landing slots and rights to use and occupy space at airports utilized in connection with the foregoing routes, the capital stock of AMI and CMI and substantially all of the assets of AMI and CMI. Continental, at its option, may redeem some or all of the Senior Secured Notes at any time on or after September 15, 2012 at specified redemption prices, plus accrued and unpaid interest, if any. In addition, at any time prior to September 15, 2012, Continental, at its option, may redeem: 1) some or all of the Senior Secured Notes at a redemption price equal to 100% of their principal amount plus a "make- whole" premium and accrued and unpaid interest, if any, and 2) up to 35% of the aggregate principal amount of the Senior Secured Notes with the proceeds of certain equity offerings at a redemption price of 106.750% of their principal amount, plus accrued and unpaid interest, if any. In addition, at any time prior to September 15, 2014, Continental, at its option, may redeem, during any 12-month period, up to 10% of the original aggregate principal amount of the Senior Secured Notes at a redemption price of 103% of their principal amount, plus accrued and unpaid interest, if any. A full-text copy of the Indenture dated Aug. 18, 2010, is available for free at http://ResearchArchives.com/t/s?69ca About Continental Airlines Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,700 daily departures throughout the Americas, Europe and Asia, serving 132 domestic and 137 international destinations. Continental is a member of Star Alliance. Continental has total assets of $13.60 billion against total debts of $12.87 billion as of June 30, 2010. In May 2010, Continental announced an agreement to merge with UAL Corp. The merger has not yet been completed. In August 2010, Moody's Investors Service affirmed its 'B2' corporate family, with negative outlook, for Continental Airlines. Moody's said the affirmation, among other things, signifies the potential for it to maintain the B2 rating if the proposed merger with UAL (B3 corporate family from Moody's, on review for upgrade) is completed under terms that enable the combined entity to achieve the potential revenue and cost synergies that have been identified. However, the outlook remains negative because of the industry's weak track record in successfully executing large business combinations. Continental caries a 'B' corporate rating, on watch negative, from Standard & Poor's. CORNELL COS: S&P Raises Corporate Credit Rating to 'BB-' -------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its long- term corporate credit rating on U.S. private corrections operator Cornell Cos. Inc. to 'BB-' from 'B+' following the completion of The GEO Group Inc.'s (BB-/Stable/--) acquisition of Cornell on Aug. 13, 2010. The outlook is stable. The ratings were then removed from CreditWatch, where they were placed with positive implications on April 20, 2010. The ratings on Cornell Cos. are subsequently withdrawn as the $112 million 10.75% senior notes due July 2012 have been repaid. CORUS BANKSHARES: Wilmington Trust Tapped to Creditors' Committee ----------------------------------------------------------------- Wilmington Trust has been appointed by the United States Trustee to serve as a member of the unsecured creditors' committee in the bankruptcy of Corus Bankshares, Inc. Wilmington Trust is indenture trustee for bondholders who hold approximately $98 million of principal in subordinated debt. Corus's bankruptcy filing poses no credit or investment risk to Wilmington Trust, nor does it affect Wilmington Trust's balance sheet. Wilmington Trust is paid a fee for the services it provides in this case. Wilmington Trust's CCS business offers institutional trustee, agency, asset management, retirement plan, and administrative services for clients worldwide, many of which use capital market financing structures or seek to establish or maintain legal residency for special purpose entities. Because Wilmington Trust does not underwrite securities offerings or provide investment banking services, it is able to deliver corporate trust services that are conflict-free. About Wilmington Trust Wilmington Trust Corporation is a financial services holding company that provides Regional Banking services throughout the mid-Atlantic region, Wealth Advisory Services for high-net-worth clients in 36 countries, and Corporate Client Services for institutional clients in 89 countries. Its wholly owned bank subsidiary, Wilmington Trust Company, which was founded in 1903, is one of the largest personal trust providers in the United States and the leading retail and commercial bank in Delaware. Wilmington Trust Corporation and its affiliates have offices in Arizona, California, Connecticut, Delaware, Florida, Georgia, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, Pennsylvania, South Carolina, Vermont, the Cayman Islands, the Channel Islands, London, Dublin, Frankfurt, Luxembourg, and Amsterdam. About Corus Bankshares Chicago, Illinois-based Corus Bankshares, Inc., is a bank holding company. Its lone operating unit, Corus Bank, N.A., closed September 11, 2009, by regulators and the Federal Deposit Insurance Corporation was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Corus Bank. The Company filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Ill. Case No. 10-26881). Kirkland & Ellis LLP's James H.M. Sprayregen, Esq., David R. Seligman, Esq., and Jeffrey W. Gettleman, Esq., serve as the Debtor's bankruptcy counsel. Kinetic Advisors is the Company's restructuring advisor. Plante & Moran is the Company's auditor and accountant. Kilpatrick Stockton LLP's Todd Meyers, Esq., and Sameer Kapoor, Esq.; and Neal Gerber & Eisenberg LLP's Mark Berkoff, Esq., Deborah Gutfeld, Esq., and Nicholas M. Miller, Esq., represent the official committee of unsecured creditors. As of June 15, 2010, the Company listed $314,145,828 in assets and $532,938,418 in liabilities. CRYOPORT INC: Amends Deal to Remove Anti-Dilution Provision ----------------------------------------------------------- On August 9, 2010, CryoPort Inc. entered into definitive agreements for a private placement of its securities to certain institutional and accredited investors for aggregate gross proceeds of $3,202,201 pursuant to the Securities Purchase Agreements between the Registrant and each Investor and the Registration Rights Agreement among the Registrant, Maxim Group LLC, Emergent Financial Group, Inc., and the Investors. The Company intends to use the proceeds for working capital purposes. Subsequent to entering into the definitive agreements but prior to the closing of the private placement, the Company determined that certain anti-dilution provisions added to the form of purchase agreement and form of warrant at the request of certain institutional investors prior to their execution would trigger a default under the securities purchase agreements entered into by the Company in connection with its prior debenture financings in October 2007 and May 2008. On Aug. 19, 2010, the Company and Investors modified the Purchase Agreements and the form of warrant to remove the anti-dilution provisions that would have triggered a default under the prior debenture financings and to grant the Investors a right to participate in future private placements for a period of 24 months following the closing. The Company closed the private placement with respect to proceeds of approximately $3,000,000 on August 20, 2010 and anticipates closing on the remaining proceeds early next week. Pursuant to the Revised Purchase Agreements, the Investors purchased an aggregate of 4,574,573 units, with each Unit consisting of: i) one share of common stock of the Registrant, and ii) one warrant to purchase one share of Common Stock at an exercise price of $0.77 per share. In addition, pursuant to the Revised Purchase Agreement, the Company also issued to certain Investors who were also investors in connection with the Company's underwritten public offering registered on Form S-1 (File No. 333-162350), which was declared effective by the Securities and Exchange Commission on Feb. 25, 2010, warrants to purchase in the aggregate 445,001 shares of Common Stock at an exercise price of $0.77 per share. The warrants are immediately exercisable and have a term of five years. Pursuant to the Registration Rights Agreement, the Company is obligated to file a registration statement with the SEC registering the resale of the shares of Common Stock issued to the Investors and the shares of Common Stock underlying the warrants issued to the Investors within 60 days following the close of the transaction. The Registration Rights Agreement also provides for: i) certain payments by the Registrant to the Investors if such registration statement is not filed within such period and ii) indemnification by each of the Company and the Investors to the other party and certain affiliates of such party against certain liability related to such registration statement. Maxim Group LLC and Emergent Financial Group, Inc. served as the Registrant's placement agents in this transaction and both received a customary fee of 7% of the aggregate gross proceeds received from the Investors, plus reimbursement of expenses, and were issued a warrant to purchase 334,500 and 305,940 shares of Common Stock, respectively, at an exercise price of $0.77 per share. Going Concern KMJ Corbin & Company LLP expressed substantial doubt against CryoPort Inc.'s ability as a going concern. The firm noted that the Company has incurred recurring losses and negative cash flows from operations since inception. Although the Company has working capital of $1,994,934 and cash and cash equivalents balance of $3,629,886 at March 31, 2010, management has estimated that cash on hand, which include proceeds from the offering received in the fourth quarter of fiscal 2010, will only be sufficient to allow the Company to continue its operations only into the second quarter of fiscal 2011. About CryoPort Inc. Headquartered in Lake Forest, Calif., CryoPort, Inc. (OTC BB: CYRXD) -- http://www.cryoport.com/-- provides innovative cold chain frozen shipping system dedicated to providing superior, affordable cryogenic shipping solutions that ensure the safety, status and temperature of high value, temperature sensitive materials. The Company has developed a line of cost-effective reusable cryogenic transport containers capable of transporting biological, environmental and other temperature sensitive materials at temperatures below 0o Celsius. The Company's balance sheet at March 31, 2010 showed $4.7 million in total assets and $5.6 million in total liabilities, for a stockholder's deficit of $914,575. DELTA AIR LINES: Board Members Each Acquire 5,900 Shares -------------------------------------------------------- Members of the Board of Directors at Delta Air Lines, Inc., filed separate reports informing the U.S. Securities and Exchange Commission on July 30, 2010, that they each acquired 5,900 shares of Delta common stock: The Directors are: Director Shares Owned Post-Transaction -------- ---------------------------- Roy J.Bostock 33,378 John S. Brinzo 25,473 Daniel A. Carp 30,353 John M. Engler 30,628 Mickey P. Foret 35,255 David R. Goode 35,423 Paula Rosput Reynolds 25,423 Rodney E. Slater 30,628 Douglas M. Steenland 468,479 Kenneth Woodrow 25,423 Non-employee members of Delta's Board of Directors receive an annual restricted stock award of $70,000, based on current market price. The Shares reported by the Directors represent the annual restricted stock award grant to them, as approved by the Delta Board on July 30, 2010. Mr. Foret, as the sole member of Aviation Consultants, LLC, also acquired 89 shares of Delta common stock that were distributed by Delta in accordance with the First Amended Joint and Consolidated Plan of Reorganization under Chapter 11 of the Bankruptcy Code for Northwest Airlines Corporation and its affiliated entities, with respect to a prepetition unsecured claim held by Aviation Consultants. Northwest became a Delta subsidiary on October 29, 2008. Pursuant to the Chapter 11 Plan, Aviation Consultants has in the past received shares of Northwest common stock. These shares were converted to Delta common stock upon consummation of the merger of Northwest and Delta. Aviation Consultants may, in the future, receive additional shares of Delta common stock with respect to this same claim as all unsecured claims held by creditors of the Debtors continue to be reconciled. Roy Bostock Roy J. Bostock, a director at Delta Air Lines, Inc., reported to the Securities and Exchange Commission on July 30, 2010, that he acquired 5,900 shares of Delta common stock. Non-employee members of Delta's Board of Directors receive an annual restricted stock award of $70,000, based on current market price. The Shares reported by Mr. Bostock represent the annual restricted stock award granted to him, as approved by the Board of Directors on July 30, 2010. Following the transaction, Mr. Bostock beneficially owned 33,378 shares of Delta common stock. About Delta Air Lines Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or http://www.nwa.com/-- provides scheduled air transportation for passengers and cargo throughout the United States, and around the world. The Company's route network is centered on the hub system it operate at airports in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo- Narita. The hub operations include flights, which gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The network is supported by a fleet of aircraft, which is varied in terms of size and capabilities. On December 31, 2009, the Company's wholly owned subsidiary Northwest Airlines, Inc., merged with and into Delta. The wholly owned subsidiary of the Company is Northwest Airlines Corporation. Northwest and 12 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). On May 21, 2007, the Court confirmed the Northwest Debtors' amended plan. That amended plan took effect May 31, 2007. Delta and 18 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented the Delta Debtors in their restructuring efforts. On April 25, 2007, the Court confirmed the Delta Debtors' plan. That plan became effective on April 30, 2007. (Bankruptcy Creditors Service Inc. publishes Delta Air Lines Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000). * * * Delta Air Lines and Northwest Airlines carry a 'B/Negative/--' corporate ratings from Standard & Poor's. They also continue to carry 'B2' corporate family ratings from Moody's and "B-" LT Issuer Default rating from Fitch. Delta Air carries a 'B-' issuer default rating from Fitch Ratings. DELTA AIR LINES: Reports July 2010 Traffic Results -------------------------------------------------- Delta Air Lines (NYSE: DAL) reported traffic results for July 2010. System traffic in July 2010 increased 0.5 percent compared to July 2009 on a 0.3 percent decrease in capacity. Load factor increased 0.7 points to 88.3 percent. Domestic traffic decreased 2.1 percent year over year on a 1.7 percent decrease in capacity. Domestic load factor decreased 0.3 points to 88.2 percent. International traffic increased 4.5 percent year over year on a 1.8 percent increase in capacity, and load factor increased 2.2 points to 88.5 percent. Delta Air Lines Monthly Traffic Results July 2010 July 2009 Change --------- --------- ------ RPMs (000): Domestic 11,533,242 11,779,758 (2.1%) Mainline 9,157,168 9,294,345 (1.5%) Regional 2,376,074 2,485,413 (4.4%) International 8,088,194 7,740,653 4.5% Latin America 1,220,016 1,127,906 8.2% Mainline 1,187,803 1,102,803 7.7% Regional 32,213 25,103 28.3% Atlantic 4,730,274 4,644,142 1.9% Pacific 2,137,904 1,968,605 8.6% System 19,621,436 19,520,411 0.5% ASMs (000): Domestic 13,082,921 13,304,560 (1.7%) Mainline 10,232,410 10,300,942 (0.7%) Regional 2,850,511 3,003,618 (5.1%) International 9,135,804 8,970,015 1.8% Latin America 1,386,003 1,296,857 6.9% Mainline 1,344,700 1,267,394 6.1% Regional 41,303 29,463 40.2% Atlantic 5,311,578 5,285,756 0.5% Pacific 2,438,223 2,387,402 2.1% System 22,218,725 22,274,575 (0.3%) Load Factor Domestic 88.2% 88.5% (0.3) pts Mainline 89.5% 90.2% (0.7) pts Regional 83.4% 82.7% 0.7 pts International 88.5% 86.3% 2.2 pts Latin America 88.0% 87.0% 1.0 pts Mainline 88.3% 87.0% 1.3 pts Regional 78.0% 85.2% (7.2) pts Atlantic 89.1% 87.9% 1.2 pts Pacific 87.7% 82.5% 5.2 pts System 88.3% 87.6% 0.7 pts Passengers Boarded 15,765,141 16,065,048 (1.9%) Mainline Completion Factor 97.7% 99.4% (1.7) pts Cargo Ton Miles (000): Passenger Cargo 203,092 153,876 32.0% Freighter Cargo 0 50,309 (100.0%) System 203,092 204,185 (0.5%) Delta Air Lines Year to Date Traffic Results July 2010 July 2009 Change --------- --------- ------ RPMs (000): Domestic 68,680,697 69,163,145 (0.7%) Mainline 54,119,014 54,379,814 (0.5%) Regional 14,561,683 14,783,331 (1.5%) International 43,201,911 42,370,713 2.0% Latin America 7,500,141 7,121,813 5.3% Mainline 7,320,999 6,998,141 4.6% Regional 179,142 123,672 44.9% Atlantic 23,256,910 24,208,186 (3.9%) Pacific 12,444,860 11,040,714 12.7% System 111,882,608 111,533,858 0.3% ASMs (000): Domestic 82,077,199 83,330,399 (1.5%) Mainline 63,680,088 64,075,891 (0.6%) Regional 18,397,111 19,254,508 (4.5%) International 52,140,812 53,712,868 (2.9%) Latin America 9,478,265 9,167,034 3.4% Mainline 9,236,705 8,988,507 2.8% Regional 241,560 178,527 35.3% Atlantic 28,052,096 30,782,100 (8.9%) Pacific 14,610,451 13,763,734 6.2% System 134,218,011 137,043,267 (2.1%) Load Factor Domestic 83.7% 83.0% 0.7 pts Mainline 85.0% 84.9% 0.1 pts Regional 79.2% 76.8% 2.4 pts International 82.9% 78.9% 4.0 pts Latin America 79.1% 77.7% 1.4 pts Mainline 79.3% 77.9% 1.4 pts Regional 74.2% 69.3% 4.9 pts Atlantic 82.9% 78.6% 4.3 pts Pacific 85.2% 80.2% 5.0 pts System 83.4% 81.4% 2.0 pts Passengers Boarded 94,518,767 95,431,123 (1.0%) Cargo Ton Miles (000): Passenger Cargo 1,276,206 912,915 39.8% Freighter Cargo 0 302,299 (100.0%) System 1,276,206 1,215,214 5.0% About Delta Air Lines Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or http://www.nwa.com/-- provides scheduled air transportation for passengers and cargo throughout the United States, and around the world. The Company's route network is centered on the hub system it operate at airports in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo- Narita. The hub operations include flights, which gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The network is supported by a fleet of aircraft, which is varied in terms of size and capabilities. On December 31, 2009, the Company's wholly owned subsidiary Northwest Airlines, Inc., merged with and into Delta. The wholly owned subsidiary of the Company is Northwest Airlines Corporation. Northwest and 12 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). On May 21, 2007, the Court confirmed the Northwest Debtors' amended plan. That amended plan took effect May 31, 2007. Delta and 18 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented the Delta Debtors in their restructuring efforts. On April 25, 2007, the Court confirmed the Delta Debtors' plan. That plan became effective on April 30, 2007. (Bankruptcy Creditors Service Inc. publishes Delta Air Lines Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000). * * * Delta Air Lines and Northwest Airlines carry a 'B/Negative/--' corporate ratings from Standard & Poor's. They also continue to carry 'B2' corporate family ratings from Moody's and "B-" LT Issuer Default rating from Fitch. Delta Air carries a 'B-' issuer default rating from Fitch Ratings. DELTA AIR LINES: To Create $1.2 Bil. Expansion at JFK Hub --------------------------------------------------------- Delta Air Lines (NYSE: DAL), the Port Authority of New York and New Jersey and JFK International Air Terminal LLC (JFKIAT) unveiled plans for the enhancement and expansion of Terminal 4 at John F. Kennedy International Airport. The $1.2 billion project will create a state-of-the-art facility for New York's fastest growing global airline. "The newly expanded and enhanced Terminal 4, one of many substantial investments we're making in New York, will provide significant benefits to our customers, employees and the city of New York for decades to come," said Delta Chief Executive Officer Richard Anderson. "Following a multi-year effort, we are very pleased to have reached a decision with the Port Authority of New York and New Jersey, JFKIAT and Schiphol USA. This plan allows us to move forward with the enhancement of our JFK hub, one that will showcase modern, welcoming facilities and meet the needs of the world's most competitive and largest aviation market." "John F. Kennedy Airport, one of the world's busiest airports, will continue its transformation into one of the nation's most state-of the-art airports with the approval of this plan and the construction of a new billion dollar extension to the international terminal," said New York Gov. David Paterson. "The Terminal 4 expansion will not only help increase customer service for thousands of travelers and bring much-needed renovations and upgrades to handle the demands of 21st century air travel, but it will create hundreds of construction jobs for New York residents. I would like to thank Port Authority Executive Director Chris Ward and Delta Air Lines CEO Richard Anderson for their commitment to this project, and for laying the groundwork for a new, world-class terminal at JFK Airport." "Ensuring reliable air transportation to and from New York City is crucial to strengthening our economy. And the decision by Delta Air Lines to expand its international terminal at Kennedy Airport will make it easier for even more people to travel to this city in the coming years," said New York City Mayor Michael Bloomberg. "Not only will this $1.2 billion project cement New York City's status as the nation's top travel destination, it will also create an additional 10,000 jobs over the next three years." "This Delta-Port Authority announcement launches a billion dollar expanded and enhanced facility for JFK that will create new jobs and a state-of-the-art portal to the world's greatest city," said U.S. Sen. Charles Schumer. "JFK is the gateway to New York City. And with Delta flying non-stop to five continents, this new facility will enable travelers to fly to and from our great city with ease and comfort. Terminal 4 will greatly improve traveling for New Yorkers -- and travelers across the globe -- and showcase New York as the transportation hub of not only the nation, but the world." "I applaud Delta Air Lines and the Port Authority of New York and New Jersey for working together to bring this major investment to John F. Kennedy International Airport," said U.S. Sen. Kirsten Gillibrand. "This $1.2 billion project represents a firm commitment from Delta Air Lines to further deepen its ties to New York's economy by providing jobs and enhancing our transportation infrastructure. I look forward to working with our airline carriers and airport operators to further upgrade our aviation infrastructure and ensure good jobs and quality air transit for New York's economy." "The announcement of a new Delta Air Lines terminal expansion and enhancement at JFK Airport is a great moment for the Sixth Congressional District," said U.S. Rep. Gregory W. Meeks. "Thousands of jobs will be created with badly needed revenue to aid our economic recovery. I would like to commend Delta Air Lines, the Port Authority and everyone involved for their commitment to the people of New York and those who will visit our great city." "New York works best when New Yorkers are working," said New York Senate Majority Conference Leader John L. Sampson. "Today's announcement secures the type of sound business initiatives we need to create the jobs and grow the industries that will help New York retain its standing as the Empire State. I applaud Gov. Paterson, Mayor Bloomberg, our U.S. Senate and Congressional delegation, Port Authority Executive Director Chris Ward, Delta CEO Richard Anderson, as well as Senate President Pro Tempore Malcolm A. Smith and Senator Shirley Huntley for their collective efforts to rebuild our economy." "The economic stability of New York State depends upon our ability to create jobs and to retain and attract businesses," said New York Senate President Pro Tempore Malcolm A. Smith. "This announcement today by Delta Air Lines to expand their terminal is exactly the type of investment that secures these key goals, resulting in thousands of jobs and billions of dollars to the region. I congratulate Gov. Paterson, Mayor Bloomberg, Port Authority Executive Director Chris Ward, Delta CEO Richard Anderson and Senator Shirley Huntley for their successful perseverance over the last year and a half in making this critical economic development initiative a reality." "Today, we welcome Delta Air Lines and CEO Richard Anderson and commend their decision to build a state-of-the-art, showcase terminal facility at JFK. Substantial investments like the one Delta is making will create much needed economic development, thousands of jobs and helps us build a bigger, brighter New York," said New York State Assembly Speaker Sheldon Silver. Terminal 4 Improvements and Customer Benefits Currently, Delta operates predominantly out of Terminal 2 for domestic flights and Terminal 3 for international service. The expansion of Terminal 4 -- which has been successfully managed by JFKIAT for over a decade -- will replace the outdated Terminal 3 facilities to enhance the customer experience for the 11 million passengers Delta serves at JFK annually. Delta anticipates that customers will experience an improvement in operational performance through dual taxiways, resulting in reduced taxi times and better on-time performance. Delta is also upgrading its inter-terminal passenger connectors between Terminals 2 and 4 for faster transit between the facilities. Delta customers will further benefit from the airline's ability to continue expanding its international network, which currently includes non-stop service to 94 destinations from JFK and more than 1,200 weekly departures. International service includes non- stop service to Africa, Europe, the Middle East, Asia, Latin America and the Caribbean, with new service being offered to Tokyo, Tel Aviv and Iceland among other destinations. Economic Impact to the Region Since making a strategic decision to build New York into a hub earlier this decade, Delta has made major investments across the New York region, boosting its economic impact to more than $13 billion annually. Delta's current JFK operation generates 49,000 jobs in the region. The Terminal 4 expansion project will create an additional 10,000 jobs in the New York Metropolitan Region by 2014, including airport and construction jobs. Over the next 60 months, the $1.2 billion project will generate $500 million of personal income in the region and $1.6 billion of economic output from the purchases of goods and services. When completed, the total economic impact of Delta's New York operation will contribute more than $19 billion annually to the state of New York. "Over the past decade, we've invested billions to improve the customer experience for the 46 million passengers that fly through JFK each year," said Port Authority Chairman Anthony R. Coscia. "This partnership with Delta Air Lines is our latest effort to ensure that JFK is an airport for the 21st century." "This is a game-changing deal for our customers and the entire regional aviation system," said Port Authority Executive Director Chris Ward. "It increases JFK's capacity, vastly improves the customer experience and strengthens the economic competitiveness of the most important gateway in the country. I want to thank Delta Air Lines, Schiphol and the Port Authority's dedicated staff for completing a deal that has been years in the making." Expansion Project Highlights Construction is scheduled to begin in September 2010, with anticipated completion of phase one and relocation of Delta's Terminal 3 operations to Terminal 4 in May 2013. Delta's JFK terminal project includes the expansion of Concourse B at Terminal 4, with nine new international gates; the construction of a passenger connector between Terminal 2 and Terminal 4; expanded areas for baggage claim and Customs and Border Protection; and the demolition of Terminal 3 in May 2015. The Terminal 3 site will then be used for aircraft parking. Photos of the planned renovations are available online at http://news.delta.com/index.php?s=13&cat=14&mode=gallery Schiphol Group and JFKIAT "Schiphol is honored that Delta has chosen Terminal 4 to serve as the main hub of its New York operations," said Jos Nijhuis, president and CEO of Schiphol Group. "Delta Air Lines is a key member of the SkyTeam alliance, and, together with its partner Air France-KLM, this will further strengthen their North Atlantic network, facilitated by the airports of Amsterdam, Paris and New York. Our added value as a leading airport operator is our ability to harmonize the processes needed to achieve a world-class travel experience and serve our airlines in a cost-effective and flexible way. In addition, Delta's choice reflects the success of Terminal 4 after nearly a decade in operation. At the same time, the terminal will continue to serve independent airlines and host current customers." "Our team is looking forward to making this plan happen in the best interest of all stakeholders," said Alain Maca, president of JFKIAT. "It is an exciting challenge to continue to serve our customers while expanding our facilities. The implementation of the ambitious development plan with Delta represents a major new milestone in the history of our terminal." About JFKIAT JFKIAT LLC, which operates Terminal 4 at John F. Kennedy International Airport, is wholly owned by Schiphol USA, Inc., a subsidiary of Schiphol North America Holding Inc., an indirect subsidiary of NV Luchthaven Schiphol, a Dutch company based in Amsterdam. JFKIAT is the only private, non-airline company to be selected by the Port Authority of New York & New Jersey to operate a terminal at JFK. The 1.5-million-square-foot Terminal 4 opened in May 2001 and reached an annual passenger volume of 9.5 million air travelers in 2009. Terminal 4 is one of the largest terminals in the New York area, serving nearly 40 international and domestic airlines. About Delta Air Lines Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or http://www.nwa.com/-- provides scheduled air transportation for passengers and cargo throughout the United States, and around the world. The Company's route network is centered on the hub system it operate at airports in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo- Narita. The hub operations include flights, which gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The network is supported by a fleet of aircraft, which is varied in terms of size and capabilities. On December 31, 2009, the Company's wholly owned subsidiary Northwest Airlines, Inc., merged with and into Delta. The wholly owned subsidiary of the Company is Northwest Airlines Corporation. Northwest and 12 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). On May 21, 2007, the Court confirmed the Northwest Debtors' amended plan. That amended plan took effect May 31, 2007. Delta and 18 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented the Delta Debtors in their restructuring efforts. On April 25, 2007, the Court confirmed the Delta Debtors' plan. That plan became effective on April 30, 2007. (Bankruptcy Creditors Service Inc. publishes Delta Air Lines Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000). * * * Delta Air Lines and Northwest Airlines carry a 'B/Negative/--' corporate ratings from Standard & Poor's. They also continue to carry 'B2' corporate family ratings from Moody's and "B-" LT Issuer Default rating from Fitch. Delta Air carries a 'B-' issuer default rating from Fitch Ratings. DEFI GLOBAL: Incurs $732,500 Net Loss in June 30 Quarter -------------------------------------------------------- DeFi Global, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $732,461 on $71,296 of revenue for the three months ended June 30, 2010, compared with a net loss of $999,713 on $9,839 of revenue for the same period of 2009. As of June 30, 2010, the Company had an accumulated deficit of $10.9 million, significant negative working capital, and is in default on various notes payable. The Company's balance sheet as of June 30, 2010, showed $2.6 million in total assets, $6.9 million in total liabilities, and a shareholders' deficit of $4.3 million. As reported in the Troubled Company Reporter on May 25, 2010, Chisholm, Bierwolf, Nilson & Morrill, in Bountiful, Utah, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has suffered recurring losses from operations, has a working capital deficit and is dependent of financing to continue operations. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a44 About DeFi Global Scottsdale, Ariz.-based DeFi Global, Inc. (OTC BB: LCHL) through its subsidiary DeFi Mobile, Ltd., has architected, built and deployed, a Large IP Network infrastructure that can host, support and deliver Applications and Services including voice, video, gaming, multi-media, and digital content over the internet to hot spots, desktop computers and all manner of handheld devices. Called the "DeFi Global Network", this Network can provide global mobile broadband service at speed comparable to fixed wire broadband for multiple mobile Internet access devices, or IADs. DEX MEDIA EAST: Bank Debt Trades at 22% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media East, LLC, is a borrower traded in the secondary market at 78.09 cents- on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 1.89 percentage points from the previous week, The Journal relates. The Company pays 250 basis points above LIBOR to borrow under the facility. The bank loan matures on October 24, 2014. The debt is not rated by Moody's and Standard & Poor's. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Dex Media East Based in Cary, North Carolina, R.H. Donnelley Corp., fka The Dun & Bradstreet Corp. (NYSE: RHD) -- http://www.rhdonnelley.com/-- publishes and distributes print and online directories in the U.S. It offers print directory advertising products, such as yellow pages and white pages directories. R.H. Donnelley Inc., Dex Media, Inc., and Local Launch, Inc., are the company's only direct wholly owned subsidiaries. Dex Media East, LLC, is a publisher of the official yellow pages and white pages directories for Qwest Communications International Inc. (Qwest) in the states, where Qwest is the primary incumbent local exchange carrier, such as Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection on May 28, 2009 (Bank. D. Del. Case No. 09- 11833 through 09-11852), after missing a $55 million interest payment on its senior unsecured notes due April 15. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois represent the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' financial advisor is Deloitte Financial Advisory Services LLP while its investment banker is Lazard Freres & Co. LLC. The Garden City Group, Inc., is claims and noticing agent. Bankruptcy Creditors' Service, Inc., publishes R.H. Donnelley Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of R.H. Donnelley Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) DEX MEDIA WEST: Bank Debt Trades at 12% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media West, LLC, is a borrower traded in the secondary market at 87.77 cents- on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 1.40 percentage points from the previous week, The Journal relates. The Company pays 450 basis points above LIBOR to borrow under the facility, which matures on October 24, 2014. The debt is not rated by Moody's and Standard & Poor's. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Dex Media West Dex Media West, LLC, is a subsidiary of Dex Media West, Inc., and an indirect wholly owned subsidiary of Dex Media, Inc. Dex Media is a direct wholly owned subsidiary of R.H. Donnelley Corporation. Dex Media West is the exclusive publisher of the official yellow pages and white pages directories for Qwest Corporation, the local exchange carrier of Qwest Communications International Inc., in Arizona, Idaho, Montana, Oregon, Utah, Washington, and Wyoming. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media Inc., filed for Chapter 11 protection on May 28, 2009 (Bank. D. Del. Case No. 09-11833 through 09-11852), after missing a $55 million interest payment on its senior unsecured notes due April 15. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois represent the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' financial advisor is Deloitte Financial Advisory Services LLP while its investment banker is Lazard Freres & Co. LLC. The Garden City Group, Inc., is claims and noticing agent. Bankruptcy Creditors' Service, Inc., publishes R.H. Donnelley Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of R.H. Donnelley Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) DOLLAR THRIFTY: Investors Ask for Injunction on Hertz Voting ------------------------------------------------------------ Ellen Rosen at Bloomberg News reported Aug. 26 that Dollar Thrifty Automotive Group Inc. investors asked a judge to stop a shareholder vote on Hertz Global Holdings Inc.'s $1.1 billion acquisition of Dollar Thrifty. According to the report, lawyers for disgruntled Dollar Thrifty shareholders told Delaware Chancery Court Judge Leo Strine at a August 25 hearing in Wilmington that Dollar Thrifty's board isn't giving enough credence to a $1.3 billion competing offer from Avis Budget Group Inc. and acceded to Hertz's demands that it not seek other bids. Bloomberg relates that Judge Strine said he'd rule later on whether a Sept. 16 shareholder vote over the buyout can proceed. Hertz's offer amounts to a "terrible price" for Dollar Thrifty's shares, Stephen Grygiel, Esq., a lawyer from Wilmington's Grant & Eisenhofer who represents the shareholders, said at the hearing, according to Bloomberg. About Avis Budget Group Avis Budget Group -- http://www.avisbudgetgroup.com/-- provides vehicle rental services, with operations in more than 70 countries. Through its Avis and Budget brands, the Company is a leading vehicle rental company in each of North America, Australia, New Zealand and certain other regions based on published airport statistics. Avis Budget Group is headquartered in Parsippany, N.J. and has more than 22,000 employees. At March 31, 2010, the Company had total assets of $10.257 billion; total current liabilities of $1.328 billion, total liabilities exclusive of liabilities under vehicle programs of $4.044 billion, and liabilities under vehicle programs of $5.987 billion; and stockholders' equity of $226 million. * * * Avis Budget Car Rental LLC continues to carry Moody's Investors Service's B2 corporate family rating. Avis Budget Group Inc. carries Standard & Poor's Ratings Services' B+ corporate credit rating. About Hertz Corp. Hertz Corporation, headquartered in Park Ridge, New Jersey, is an automobile and equipment rental company. Hertz carries Moody's B1 Corporate Family Rating and Probability of Default Rating. About Dollar Thrifty Dollar Thrifty Automotive Group, Inc., is headquartered in Tulsa, Oklahoma. Driven by the mission "Value Every Time," the Company's brands, Dollar Rent A Car and Thrifty Car Rental, serve value- conscious travelers in over 70 countries. Dollar and Thrifty have over 600 corporate and franchised locations in the United States and Canada, operating in virtually all of the top U.S. and Canadian airport markets. The Company's approximately 6,400 employees are located mainly in North America, but global service capabilities exist through an expanding international franchise network. At March 31, 2010, the Company had total assets of $2,470,879,000, total liabilities of $2,047,769,000, and stockholders' equity of $423,110,000. * * * As reported by the Troubled Company Reporter on May 5, 2010, Dominion Bond Rating Service placed the ratings of Dollar Thrifty Automotive Group, Inc., including its Issuer Rating of B (high), Under Review with Positive Implications. This ratings action follows the announcement that the Company has reached a definitive agreement to be acquired by the higher-rated Hertz Corporation. DBRS rates Hertz BB, at the issuer level. In November 2009, Standard & Poor's Ratings Services raised its corporate credit rating of Dollar Thrifty to 'B-' from 'CCC', in light of the Company's improved operating and financial performance that began in mid-2009. Moody's Investors Service also upgraded Dollar Thrifty's Probability of Default Rating to 'B3' from 'Caa2' and Corporate Family Rating to 'B3' from 'Caa3'. DBRS has commented that the ratings of Dollar Thrifty Automotive Group, Inc., including its Issuer Rating of B (high) are unaffected following the Company's announcement of 2Q10 earnings results. All ratings remain Under Review Positive, where they were placed on April 28, 2010. E-DEBIT GLOBAL: Posts $145,805 Net Loss for Quarter Ended June 30 ----------------------------------------------------------------- E-Debit Global Corporation, formerly known as Westsphere Asset Corporation, Inc., filed its quarterly report on Form 10-Q, reporting a net loss from operations of $145,805 for three months ended June 30, 2010, compared with a net loss from operations of $616,991 for the same period in 2009. For six months ended June 30, 2010, the Company reported a net loss from operations of $332,196 compared with a net loss of $770,181 for the same period ended June 2009. The Company's balance sheet at June 30, showed total assets of $1,810,771, total liabilities of $1,953,181, and a stockholders' deficit of $142,410. Cordovano and Honeck LLP expressed substantial doubt about E- Debit's ability to continue as a going concern in its opinion letter dated April 15, 2010, concerning the company's 2009 financial statements. The auditors noted that the Company has suffered recurring losses, has a working capital deficit at December 31, 2009, and has an accumulated deficit of $760,509 as of December 31, 2009. E-Debit acknowledged in the Form 10-Q that it did not generate sufficient revenues to meet overhead needs. This is due to E- Debit switch operations which was launched in January 2009 and commence rollover of ATMs to process all transactions. The switch operations did not generate sufficient revenue to cover its expenses. A full-text copy of the quarterly report is available for free at: http://ResearchArchives.com/t/s?6a0a Based in Calgary, Alberta, E-Debit Global Corportion's primary business is the sale and operation of cash vending (ATM) and point of sale (POS) machines in Canada. EL DORADO RIDGE: Case Summary & 5 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: El Dorado Ridge IV, LLC 3604 Fair Oaks Blvd. #180 Sacramento, CA 95864 Bankruptcy Case No.: 10-42384 Chapter 11 Petition Date: August 23, 2010 Court: United States Bankruptcy Court Eastern District of California (Sacramento) Judge: Christopher M. Klein Debtor's Counsel: Megan A. Lewis, Esq. WILKE, FLEURY, HOFFELT, GOULD & BIRNEY 400 Capitol Mall, 22nd Floor Sacramento, CA 95814 Tel: (916) 441-2430 Fax: (916) 442-6664 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/caeb10-42384.pdf The petition was signed by Benjamin s. Catlin IV, manager. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Benjamin S. Catlin, IV 09-43616 10/30/09 EMERALD HOSPITALITY: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Emerald Hospitality, LLC 3400 Parkwood Blvd. Frisco, TX 75034 Bankruptcy Case No.: 10-20851 Chapter 11 Petition Date: August 23, 2010 Court: United States Bankruptcy Court Western District of Louisiana (Lake Charles) Judge: Robert Summerhays Debtor's Counsel: William C. Vidrine, Esq. VIDRINE & VIDRINE 711 W. Pinhook Road Lafayette, LA 70503 Tel: (337) 233-5195 Fax: (337) 233-3897 E-mail: williamv@vidrinelaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $100,001 to $500,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Scott Nadell, manager. ENERTECK CORP: Posts $512,000 Net Loss in Quarter Ended June 30 --------------------------------------------------------------- EnerTeck Corporation filed a quarterly report on Form 10-Q, reporting a net loss of $511,519 for three months ended June 30, 2010, compared with a net loss of $579,003 for the same period in 2009. In the six months ended June 30, the Company posted a net loss of $945,057 compared with a net loss of $876,212 in the same period in 2009. The Company's balance sheet at June 30, showed total assets of $1,903,292, total current liabilities of $1,676,641, total long term liabilities of $86,589, and stockholders' equity of $140,062. In the Form 10-Q, the Company said its incurred net losses and an accumulated deficit raise substantial doubt about the Company's ability to continue as a going concern. The Company's continuation as a going concern is contingent upon its ability to obtain additional financing and to generate revenues and cash flow to meet its obligations on a timely basis. A full-text copy of the quarterly report is available for free at: http://ResearchArchives.com/t/s?6a09 Stafford, Texas-based EnerTeck Corporation specializes in the sales and marketing, and since August 2006, in the manufacturing of a fuel borne catalytic engine treatment for diesel engines known as EnerBurn(R). EPIC ENERGY: Posts $8.6MM Net Loss in Quarter Ended June 30 ----------------------------------------------------------- Epic Energy Resources, Inc., filed its quarterly report on Form 10-Q reporting a net loss of $8,615,000 for three months ended June 30, 2010, compared with a net loss of $3,929,000 for the same period ended June 2009. In the six months ended June 30, the Company posted a net loss of $14,251,000 compared with a net loss of $4,949,000 in the same period in the previous year. The Company's balance sheet at June 30 showed total assets of $18,568,000, total liabilities of $20,010,000, and a stockholders' deficit of $1,442,000. M&K CPAS, PLLC, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern in its report on the Company's 2009 financial statements. The independent auditors noted that the Company sustained a significant net loss in 2009, experienced a substantial revenue decrease and maintains a working capital deficit. According to the Form 10-Q, the Company reduced cash required for operations by reducing operating costs and reducing staff levels. In addition, the Company said it is working to manage its current liabilities while it continues to make changes in operations to improve its cash flow and liquidity position. A full-text copy of the Quarterly Report on Form 10-Q is available for free at: http://ResearchArchives.com/t/s?6a08 The Woodlands, Texas-based Epic Energy Resources, Inc. (OTC BB: EPCC) -- http://www.1Epic.com/-- is an integrated energy services company. Epic provides business and operations consulting; engineering, procurement, and construction management; production operations & maintenance; specialized training, operating manuals, data management and data integration focused primarily on the upstream, midstream and downstream energy infrastructure. Failed Banks May 21, 2010. ERF WIRELESS: June 30 Balance Sheet Upside-Down by $3.4-Mil. ------------------------------------------------------------ ERF Wireless, Inc., reported that as of June 30, 2010, it had $7,945,000 in total assets, $11,389,000 in total liabilities, and $3,444,000 in shareholders' deficit. ERF Wireless posted a net loss of $1,859,000 for the three months ended June 30, 2010, from a net loss of $2,099,000 for the three months ended June 30, 2009. The Company posted a net loss of $3,934,000 for the six months ended June 30, 2010, from a net loss of $4,458,000 for the same period in 2009. Total sales were $1,576,000 for the three months ended June 30, 2010, from $1,278,000 for the three months ended June 30, 2009. Total sales were $3,055,000 for the six months ended June 30, 2010, from $2,601,000 for the same period in 2009. A full-text copy of the Company's Form 10-Q report is available at no charge at http://ResearchArchives.com/t/s?6a27 Based in League City, Texas, ERF Wireless, Inc., provides secure, high-capacity wireless products and services to a broad spectrum of customers in primarily underserved, rural and suburban parts of the United States. FAIRCHILD SEMICONDUCTOR: Moody's Hikes Corporate Rating to 'Ba2' ---------------------------------------------------------------- Moody's Investors Service raised Fairchild Semiconductor Corporation's (a wholly owned subsidiary of Fairchild Semiconductor International, Inc.) corporate family rating to Ba2 from Ba3, the probability-of-default rating to Ba3 from B1, and the rating on the senior secured credit facilities to Ba1 from Ba2. The ratings outlook remains stable. The speculative grade liquidity rating was affirmed at SGL-1. These ratings were upgraded: -- Corporate family rating to Ba2 from Ba3; -- Probability-of-default rating to Ba3 from B1; -- $100 million sr. secured revolving credit facility due 2012 to Ba1 (LGD2, 19%) from Ba2 (LGD2, 25%); -- $322 million sr. secured term loan due 2013 to Ba1 (LGD2, 19%) from Ba2 (LGD2, 25%). Ratings Rationale The change in the ratings reflects Fairchild's strong operating trends in recent quarters and material debt reduction, all of which Moody's expects to translate into sustainably improved credit metrics. Additionally, the rating change acknowledges the cyclical upturn in the global semiconductor industry. Fairchild's Ba2 corporate family rating reflects its modest leverage with debt to EBITDA below 2.0 times, strong interest coverage, favorable business profile as a large-scale global supplier of power semiconductors, core technological competency in power products, and Moody's view that it managed the business well during the downturn. Fairchild's rating is also supported by its product portfolio that features well-diversified end-markets and long life cycles. However, the rating is constrained by the company's small scale relative to other higher-rated semiconductor companies. The stable outlook is supported by Moody's expectation that Fairchild will sustain recent improvements in operating performance and that it will maintain its very good liquidity profile, supported by high levels of unrestricted cash and significantly positive free cash flow. The current rating tolerates small acquisitions within its core competency, but does not consider large-scale acquisitions. Further upwards rating movement can result from sustainable organic growth and increased profitability while avoiding increases in debt levels. The ratings or outlook could be pressured if a change in Fairchild's financial policy, such as a large-scale acquisition or share repurchase, results in debt to EBITDA exceeding 2.5 times. The affirmation of the SGL-1 speculative grade liquidity rating continues to reflect Moody's expectation that Fairchild's liquidity profile will remain very good in the near-term, supported by a large unrestricted cash balance, expectations for positive quarterly cash flow, and modest near-term debt maturities. Additional information can be found in the Fairchild Credit Opinion published on Moodys.com. Fairchild Semiconductor Corporation, based in South Portland, Maine, is a global supplier of power semiconductors. The company reported sales of approximately $1.5 billion through the twelve months ended June 27, 2010. FAIRPOINT COMMS: Bank Debt Trades at 35% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which FairPoint Communications, Inc., is a borrower traded in the secondary market at 64.79 cents-on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.33 percentage points from the previous week, The Journal relates. The Company pays 275 basis points above LIBOR to borrow under the facility, which matures on March 31, 2015. Moody's has withdrawn its rating, while Standard & Poor's has assigned a default rating on the bank debt. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. FairPoint Communications, Inc. (NYSE: FRP) -- http://www.fairpoint.com/-- is an industry-leading provider of communications services to communities across the country. FairPoint owns and operates local exchange companies in 18 states offering advanced communications with a personal touch, including local and long distance voice, data, Internet, television and broadband services. FairPoint is traded on the New York Stock Exchange under the symbols FRP and FRP.BC. FairPoint and its affiliates filed for Chapter 11 on October 26, 2009 (Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as financial advisor for the Company; AlixPartners, LLP as the restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP is the Company's counsel. BMC Group is claims and notice agent. As of June 30, 2009, FairPoint reported $3.24 billion in total assets, $321.41 million in total current liabilities, $2.91 billion in total long-term liabilities, and $1.23 million in total stockholders' equity. Bankruptcy Creditors' Service, Inc., publishes FairPoint Communications Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of FairPoint Communications Inc. and its debtor- affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FIRST BANCORP: Completes Exchange Offer of 256,401,610 Shares ------------------------------------------------------------- First BanCorp disclosed final results of its offer to exchange up to 256,401,610 newly issued shares of its common stock, par value US$0.10 per share, for any and all of the issued and outstanding shares of Non-Cumulative Perpetual Monthly Income Preferred Stock, Series A through E. The Exchange Offer expired at 9:30 a.m., New York City time, on August 25, 2010. In accordance with the terms of the Exchange Offer, the number of shares of Common Stock into which each share of tendered Preferred Stock will be exchanged will be the number determined by dividing the Exchange Value per share of Preferred Stock, or US$13.75, by the Relevant Price of US$1.18, or 11.6525 shares. No fractional shares will be issued. The Exchange Offer resulted in US$487.1 million, or 88.54%, of the aggregate liquidation preference of the Preferred Stock being validly tendered. These tenders will result in the issuance of approximately 227 million new shares of the Corporation's Common Stock. Mr. Aurelio Aleman, President and Chief Executive Officer of the Corporation, commented, "We are extremely pleased with the results achieved through the Exchange Offer. The successful exchange will result in improving our tangible common equity ratio as of June 30, 2010, on a pro forma basis, to approximately 5.22%. This is a significant step towards the execution of our capital plan, and we thank our shareholders for their support in this exchange offer. For the immediate future, a capital raise continues to be our focus." About First BanCorp First BanCorp is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp and FirstBank Puerto Rico operate under U.S. banking laws and regulations. The Corporation operates a total of 175 branches, stand-alone offices and in-branch service centers throughout Puerto Rico, the U.S. and British Virgin Islands, and Florida. Among the subsidiaries of FirstBank Puerto Rico are First Federal Finance Corp., a small loan company; First Leasing and Rental Corp., a leasing company; FirstBank Puerto Rico Securities, a broker-dealer subsidiary; First Management of Puerto Rico; and FirstMortgage, Inc., a mortgage origination company. In the U.S. Virgin Islands, FirstBank operates First Insurance VI, an insurance agency, and First Express, a small loan company. First BanCorp's common and publicly-held preferred shares trade on the New York Stock Exchange under the symbols FBP, FBPPrA, FBPPrB, FBPPrC, FBPPrD and FBPPrE. * * * As of June 18, 2010, the bank continues to carry Standard & Poor's "CCC+" long-term issuer credit ratings. As reported by the Troubled Company Reporter on June 21, 2010, FirstBank Puerto Rico agreed to a Consent Order with the Federal Deposit Insurance Corporation and the Office of the Commissioner of Financial Institutions of Puerto Rico and that First BanCorp agreed to enter into a written agreement with the Federal Reserve Bank of New York. FirstBank and the Corporation have agreed to take certain actions intended to address various matters, including among others, the development and adoption of a plan to attain certain capital levels, and the reduction of non-performing and classified assets that have impacted FirstBank's financial condition and performance. FORBES MEDI-TECH: Completes Assets Sale to Pharmachem Laboratories ------------------------------------------------------------------ Forbes Medi-Tech Inc. disclosed that on August 26, 2010 the Company completed the previously announced sale of substantially all of its assets to Pharmachem Laboratories, Inc. for cash consideration of US$4.0 million. The Asset Sale was approved by shareholders at its reconvened special meeting of shareholders on August 24, 2010. In connection with the completion of the Asset Sale, the Company has changed its name to FMI Holdings Ltd. At the Meeting, shareholders of the Company also approved the liquidation of the Company and the appointment of Abakhan & Associates Inc. as liquidator. The Company currently anticipates that the Abakhan will be formally appointed as liquidator on or about September 1, 2010. Other Information In connection with the wind-up of the Company, one distribution will be made to shareholders which will include the cash proceeds realized under the Asset Sale less any payments made in respect of the Company's remaining ongoing costs and liabilities. The Company expects the net proceeds of the Liquidation to be in the range of Cdn $0.50 to Cdn $0.58 per share. The distribution is expected to occur within six months following completion of a claims procedure that will be established under the supervision of the appointed liquidator, Abakhan & Associates Inc. It is expected that, following the distribution, the Company's common shares will be cancelled and de-listed from the OTCBB. It is anticipated that the wind-up of the Company will be completed in the first quarter of 2011, although the ultimate timing of a distribution and the wind-up of the Company may vary from what is expected. In addition, to the extent that, among other things: (i) transaction and wind-up costs; (ii) the Company's net cash position at closing; (iii) the absence of unidentified claims; or (iv) foreign exchange rates are, in each case, different than assumptions made by management, shareholders may receive aggregate distributions amounting to less than the range noted. Accordingly, the Company can give no assurances as to the total amount and timing of distributions to the Company's shareholders. About Forbes Medi-Tech Based in Vancouver, British Columbia, Canada, Forbes Medi-Tech Inc. -- http://www.forbesmedi.com/-- is a life sciences company focused on evidence-based nutritional solutions. Forbes is a provider of value-added products and cholesterol-lowering ingredients for use in functional foods and dietary supplements. Forbes successfully developed and commercialized its Reducol(TM) plant sterol blend, which has undergone clinical trials in various matrices and has been shown to lower "LDL" cholesterol levels safely and naturally. * * * As reported in the Troubled Company Reporter on April 14, 2010, KPMG LLP, in Vancouver, B.C., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit as of December 31, 2009. FORD MOTOR: Bank Debt Trades at 4% Off in Secondary Market ---------------------------------------------------------- Participations in a syndicated loan under which Ford Motor Co. is a borrower traded in the secondary market at 96.19 cents-on-the- dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.31 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Dec. 15, 2013, and carries Moody's Ba3 rating and Standard & Poor's BB rating. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The Company provides financial services through Ford Motor Credit Company. Ford Motor's balance sheet at June 30, 2010, showed $179.75 billion in total assets, $183.29 billion in total liabilities, and a $3.54 billion stockholders' deficit. * * * In August 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Ford Motor Co. and FordMotor Credit Co. LLC to 'B+' from 'B-'. "The upgrade reflects S&P's reassessment of Ford's business risk profile to weak from vulnerable, and its financial risk profile to aggressive from highly leveraged," said Standard & Poor's credit analyst Robert Schulz. S&P believes Ford is making progress in stabilizing, and perhaps improving, its U.S. market shares Still, S&P believes underlying business risks remain high. Ford Motor and its unit, Ford Motor Credit, carry 'BB-' issuer default ratings from Fitch Ratings. In August 2010, when Fitch raised the rating from 'B', it said, Ford's ratings reflect its continued strong financial performance and the substantial debt reduction accomplished in the second quarter." Ford Motor has a 'B1' corporate family rating from Moody's. FREESCALE SEMICON: Bank Debt Trades at 10% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Freescale Semiconductor, Inc., is a borrower traded in the secondary market at 89.68 cents-on-the-dollar during the week ended August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 1.43 percentage points from the previous week, The Journal relates. The Company pays 425 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 16, 2016, and carries Moody's B2 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Freescale Semiconductor, Inc. -- http://www.freescale.com/-- once Motorola's Semiconductor Products Sector, is one of the oldest and most diverse makers of microchips in the world. It produces many different kinds of chips for use in automobiles, computers, industrial equipment, wireless communications and networking equipment, and other applications. The company's global client roster includes such blue-chip companies as Alcatel-Lucent, Bosch, Cisco Systems, Fujitsu, Hewlett-Packard, QUALCOMM, and Siemens, as well as former parent Motorola. Freescale nets about half of its sales from the Asia/Pacific region. The Blackstone Group, The Carlyle Group, Permira Advisers, and TPG Capital own the company. * * * As reported by the Troubled Company Reporter on April 30, 2010, Fitch Ratings affirmed these ratings for Freescale Semiconductor Inc. -- Issuer Default Rating 'CCC'; Senior secured bank revolving credit facility 'CCC/RR4'; Senior secured notes 'CCC/RR4'; Senior secured term loans 'CCC/RR4'; Senior unsecured notes 'C/RR6'; and senior subordinated notes 'C/RR6'. FX LUXURY: Hearing on Further Cash Use on October 18 ---------------------------------------------------- The Hon. Bruce A. Markell of the U.S. Bankruptcy Court for the District of Nevada has continued until October 18, 2010, at 9:30 a.m. (prevailing Pacific Standard Time), the hearing to consider FX Luxury Las Vegas I, LLC's further access to the cash collateral securing their obligation to their prepetition lenders. Objections, if any, are due on October 4. The Bankruptcy Court previously entered an interim order allowing the Debtor to use the cash collateral until October 21 to fund its Chapter 11 case, pay suppliers and other parties. As reported in the Troubled Company Reporter on May 5, Landesbank Baden-Wurttemberg, New York Branch, as administrative agent and the collateral agent for the first lien lenders, asserts an interest on the Debtor's assets, including its cash. Second lien lenders also have liens on the Debtor's assets. In exchange for using the cash collateral, the Debtor will grant the prepetition lenders adequate protection liens to protect the lenders from the diminution in value of the collateral. The Debtor consented to provide certain adequate protection for the first lien lenders in consideration for its consent to Debtor's use of cash collateral. The Debtor will also grant the first and second lien lenders replacement liens. The lenders' adequate protection obligations will constitute allowed administrative expense claims. The Debtor will grant junior adequate protection to second lien lenders that is comparable to the adequate protection granted to the first lien lenders even though the Debtor believes based on independent third-party appraisals that the second lien lenders are undersecured. Pursuant to an amended and restated Intercreditor Agreement dated as of July 6, 2007, the second lien lenders are deemed to consent to debtor's use of cash collateral so long as they receive comparable junior liens as the first lien lenders. About FX Luxury New York-based FX Luxury Las Vegas I, LLC, fka Metroflag BP, LLC, owns approximately 17.72 contiguous acres of real property located at the southeast corner of Las Vegas Boulevard and Harmon Avenue in Las Vegas, Nevada, which secures its mortgage loans in the aggregate principal amount of $454 million as of April 21, 2010. FX Luxury is the remaining Las Vegas subsidiary of FX Real Estate and Entertainment Inc. The Company filed for Chapter 11 bankruptcy protection on April 21, 2010 (Bankr. D. Nev. Case No. 10-17015). Deanna L. Forbush, Esq., at Fox Rothschild, LLP, assists the Company in its restructuring effort as the Company's bankruptcy counsel. Greenberg Traurig, LLP, is the Company's special counsel. Sierra Consulting Group, LLC, is the Company's financial advisor. Kent Appraisal Services is the Company's real estate appraiser. The Company disclosed $139,636,791 in assets and $492,568,036 in debts in its Chapter 11 petition. GOLDEN EAGLE: Posts $345,600 Net Loss in June 30 Quarter -------------------------------------------------------- Golden Eagle International Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $345,607 on zero revenues for the three months ended June 30, 2010, compared with a net loss of $495,411 on $3.36 million of revenues for the same period a year earlier. The Company's balance sheet at June 30, 2010, showed $5.16 million in total assets, $3.19 million in total liabilities, and $1.97 million in stockholders' equity. A full-text copy of the quarterly report on Form 10-Q is available for free at http://ResearchArchives.com/t/s?69c9 Going Concern Chisholm, Bierwolf, Nilson & Morrill, in Bountiful, Utah, expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2009 results. The independent auditors noted that the Company has a significant working capital deficit, has incurred significant losses since inception, and is dependent of financing to continue operations. About Golden Eagle Based in Salt Lake City, Golden Eagle International, Inc. Golden Eagle International, Inc. (OTC BB: MYNG) was previously focused on minerals exploration and mining and milling operations in Bolivia through its Bolivian-based wholly-owned subsidiary, Golden Eagle International, Inc. (Bolivia). However, in late 2008 the Company suspended these operations, and in March 2010 transferred control of its Bolivian assets and operations to an unaffiliated third party. The Company expects to transfer ownership of those assets and operations during the second quarter of 2010, although there can be no assurance that it will be able to complete the transactions with the purchaser. GOODCRANE CORP: Trustee Prepares to Sell Assets on Sept. 8 ---------------------------------------------------------- Janet Northrup, the Trustee appointed in Goodcrane Corporation's bankruptcy proceeding, published notice in The Houston Chronicle that she filed a Motion for Approval of Sale of Assets Free and Clear of Liens, Claims, Interests and Encumbrances Under 11 U.S.C. Sec. 363(f) that requests Bankruptcy Court approval of the sale of substantially all of Goodcrane Corporation's assets. A hearing on the motion will be held at 9:30 a.m. on Sept. 8, 2010, in Houston, Tex. Houston, Texas-based Goodcrane Corporation designs and manufactures custom designed cranes and deck equipment for marine offshore applications, including offshore drilling platforms, mobile drilling rigs, floating dry docks, dockside operations and shipboard services. The Company sought Chapter 11 protection (Bankr. S.D. Tex. Case No. 09-34031) on June 5, 2009, represented by Vy Thuan Nguyen, Esq. The Debtor estimated its assets at $10 million to $50 million and its debts at $1 million to $10 million at the time of the filing. GREENBRIER LEASING: Amends WLR-Greenbrier Syndication Agreement --------------------------------------------------------------- Greenbrier Leasing Company LLC, a subsidiary of The Greenbrier Companies Inc., and WLR-Greenbrier Rail Inc., entered on Aug. 18, 2010, into an amendment of the Syndication Agreement dated April 29, 2010. Under the Syndication Agreement, the Company was appointed as the exclusive agent for the purpose of seeking investors to purchase an interest in a portion of WLR Inc.'s interest in, or newly issued equity interests of, WLR Inc.'s subsidiary, WL Ross- Greenbrier Rail Holdings I LLC, the parent corporation of WL Ross- Greenbrier Rail I LLC. Pursuant to the Amendment, the Company paid Holdings a $130,000 fee to delete certain obligations of GLC that would require registration as a broker dealer under the federal and state securities laws and agreed to pay Holdings reasonable out-of-pocket fees and expenses incurred in connection with the Amendment. The Company will continue to provide certain specialized services to WLR Inc. under the Syndication Agreement, for which WLR Inc. will be compensating the Company upon the terms set forth in the Syndication Agreement. In connection with certain services originally contemplated by the Syndication Agreement, Holdings is entering into an engagement letter dated Aug. 18, 2010, with GSF Capital Markets, LLC, and the Beneficiary is simultaneously entering into a Registered Representative Agreement with an employee of GLC in connection therewith. Under the Engagement Letter, the Beneficiary will act as placement agent with respect to the sale of membership interests in Holdings. Pursuant to the Amendment, the Company has agreed to indemnify Holdings to the extent Holdings is required to indemnify the Beneficiary under the Engagement Letter. The Beneficiary has made it a condition of the Agreements that the Company also provide a guarantee of the obligations of Holdings pursuant to the Engagement Letter, and on Aug. 18, 2010, the Company entered into a Guaranty for the benefit of the Beneficiary. Under the Guaranty, the Company guarantees to the Beneficiary the due and punctual performance of all of the obligations of Holdings arising under or pursuant to the Agreements, including payment and indemnity. The Company is contingently liable under the Guaranty and could become directly liable for payment and performance under the Engagement Letter if Holdings defaults on its obligations thereunder. The exact dollar value of the above transactions cannot readily be determined as it is based on a number of variables that have not yet occurred or cannot yet be measured and depends, in part, upon the amount of funds raised by Holdings from a new investor or investors, as contemplated by the Agreements. The maximum potential amount of future payments that the Company could be required to make under the Guaranty is unable to be determined at this time. The Company's liability, if any, under the Guaranty could exceed the ultimate purchase price of the sale of membership interests in Holdings eventually sold. The Company believes the likelihood of the Company being required to make payments pursuant to the Guaranty is remote. For accounting purposes, the Company will be required to establish a fair value on the Guaranty and the Company currently believes the fair value of the Guaranty is immaterial. The Guaranty is accounted for as an "off balance sheet arrangement." A full-text copy of the Amendment to the Syndication Agreement is available for free at http://ResearchArchives.com/t/s?69c6 A full-text copy of the Guaranty dated Aug. 18, 2010, is available for free at http://ResearchArchives.com/t/s?69c7 About Greenbrier Companies The Greenbrier Companies, Inc., manufactures railroad freight cars, is a the leading producer of intermodal flat cars, and also repairs railroad freight cars and provide wheels and various car parts. Greenbrier owns a portfolio of 8,000 railcars, which it leases to third parties, and provides a range of management services for approximately 225,000 other railcars. * * * According to the Troubled Company Reporter on Aug. 19, 2010, Moody's Investors Service has raised the Speculative Grade Liquidity Rating for The Greenbrier Companies, Inc., to SGL-3 from SGL-4. At the same time, Moody's has affirmed the company's existing ratings, including the corporate family rating of Caa1. Greenbrier's rating outlook is negative in consideration of the continued sluggish demand for new railcars and the company's need to address certain refinancing needs. GUITAR CENTER: Bank Debt Trades at 13% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Guitar Center, Inc., is a borrower traded in the secondary market at 87.36 cents- on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.48 percentage points from the previous week, The Journal relates. The Company pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on October 9, 2014, and carries Moody's B3 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Guitar Center, Inc., headquartered in Westlake Village, California, is the largest musical instrument retailer with 312 stores and a direct response segment, which operates its websites. It operates three distinct musical retail business - Guitar Center (about 70% of revenue), Music & Arts (about 7% of revenue), and Musician's Friend (its direct response subsidiary with 24% of revenue). Total revenue is about $2 billion. HARRISBURG, PA: Dauphin County Gets $34.7 Million Bill ------------------------------------------------------ Dunstan McNichol at Bloomberg News reports that Dauphin County, home to Pennsylvania's capital of Harrisburg, may have to pay $34.7 million by Dec. 1 on notes issued in 2007 to cover costs tied to a municipal incinerator, if it can't refinance the debt. According to the report, the county received notice it has to make the payments on the notes, which the county co-guaranteed, after the city said it couldn't cover the cost. There's just $1.34 in accounts set up to service the zero-coupon debts, which mature on Dec. 15, according to the trustee for the issues. The city's "financial situation precludes it from making the payments," Chuck Ardo, a spokesman for Mayor Linda Thompson, said in an e-mail to Bloomberg. The city of 47,000 residents has considered seeking bankruptcy protection to cope with payments due on Harrisburg Authority debt, Mr. Ardo said. About Harrisburg, PA Harrisburg is coping with debt related to a failed revamp of an incinerator. The outstanding principal on the Incinerator debt is $288 million. Total principal and interest on this debt would amount to approximately $458 million. Debt service payments on the total incinerator debt are $20 million per year. Of this total, Dauphin County, Pennsylvania, is responsible for approximately $10 million and the City of Harrisburg is responsible for the other $10 million. The City is guarantor on 100% of the $288 million Incinerator debt. HARVEST OAKS: Plan Confirmation Hearing Set for September 15 ------------------------------------------------------------ The Hon. Stephani W. Humrickhouse of the U.S. Bankruptcy Court for the Eastern District of North Carolina will consider on September 15, 2010, at 11:00 a.m., the confirmation of Harvest Oaks Drive Associates, LLC's Plan of Reorganization. The Court also fixed September 8, as the last day for filing objections and written acceptances or rejections of the Plan. According to the Disclosure Statement, the Plan contemplates a continuation of the Debtor's business. The Debtor intends to satisfy creditor claims from income earned through operations of its shopping center business, and from funds advanced by the guarantors of the Wachovia obligation. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/HARVESTOAKS_DS.pdf About Harvest Oaks Raleigh, North Carolina-based Harvest Oaks Drive Associates, LLC, filed for Chapter 11 bankruptcy protection on April 21, 2010 (Bankr. E.D. N.C. Case No. 10-03145). Trawick H Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., assists the Company in its restructuring effort. In its schedules, the Company disclosed $15,832,000 in assets and $14,634,161 in debts. HAWKS PRAIRIE: Section 341(a) Meeting Scheduled for Sept. 16 ------------------------------------------------------------ The U.S. Trustee for Region 18 will convene a meeting of Hawks Prairie Investment LLC's creditors on September 16, 2010, at 3:00 p.m. The meeting will be held at Courtroom J, Union Station, 1717 Pacific Avenue, Tacoma, WA 98402. 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. Olympia, Washington-based Hawks Prairie Investment LLC owns real property in Thurston County, Washington. It filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. W.D. Wash. Case No. 10-46635). Timothy W. Dore, Esq., at Ryan Swanson & Cleveland PLLC, assists the Debtor in its restructuring effort. The Debtor estimated assets at $50 million to $100 million and its debts at $10 million to $50 million as of the Petition Date. An affiliate, Pacific Investment Group LLC, filed a separate Chapter 11 petition on October 22, 2009 (Bankr. W.D. Wash. Case No. 09-47915). HAWKS PRAIRIE: Taps Ryan Swanson as Bankruptcy Counsel ------------------------------------------------------ Hawks Prairie Investment LLC asks for authorization from the U.S. Bankruptcy Court for the Western District of Washington to employ Ryan, Swanson & Cleveland, PLLC, as general counsel. Ryan Swanson will represent the Debtor in its Chapter 11 bankruptcy case. On April 29, 2010, Triway Enterprises LLC paid a $20,000 advance fee deposit to Ryan Swanson on behalf of Hawks Prairie for services in this bankruptcy case. Triway Enterprises is owned by the Debtor's sole manager, Tri M. Vo. Vo also the indirectly owns the Debtor through other limited liability companies. To the best of the Debtors' knowledge, Ryan Swanson is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Olympia, Washington-based Hawks Prairie Investment LLC owns real property in Thurston County, Washington. It filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. W.D. Wash. Case No. 10-46635). The Debtor estimated assets at $50 million to $100 million and debts at $10 million to $50 million in its Chapter 11 petition. An affiliate, Pacific Investment Group LLC, filed a separate Chapter 11 petition on October 22, 2009 (Bankr. W.D. Wash. Case No. 09-47915). HEALTHSOUTH CORP: Bank Debt Trades at 0.92% Off ----------------------------------------------- Participations in a syndicated loan under which HealthSouth Corporation is a borrower traded in the secondary market at 99.08 cents-on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.02 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on March 10, 2013, and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About HealthSouth Corp. Birmingham, Alabama-based HealthSouth Corporation (NYSE: HLS) -- http://www.healthsouth.com/-- is the nation's largest provider of inpatient rehabilitative healthcare services. Operating in 26 states across the country and in Puerto Rico, HealthSouth serves patients through its network of inpatient rehabilitation hospitals, long-term acute care hospitals, outpatient rehabilitation satellites, and home health agencies. The Company's balance sheet at June 30, 2010, showed $1.7 billion in total assets, $2.1 billion in total liabilities, and shareholders' deficit of $817.3 million. HealthSouth continues to carry a 'B2' corporate family rating with "stable" outlook, from Moody's. It has 'B' foreign and local issuer credit ratings, with "positive" outlook, from Standard & Poor's. HSR GENERAL: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: HSR General Engineering Contractors Inc. aka HSR, Inc. 1345 Vander Way San Jose, CA 95112 Tel: (408) 562-9956 Bankruptcy Case No.: 10-58737 Chapter 11 Petition Date: August 23, 2010 Court: United States Bankruptcy Court Northern District of California (San Jose) Judge: Charles Novack Debtor's Counsel: William J. Healy, Esq. CAMPEAU, GOODSELL AND SMITH 440 N. 1st St. #100 San Jose, CA 95112 Tel: (408) 295-9555 E-mail: whealy@campeaulaw.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/canb10-58737.pdf The petition was signed by Keith Dorsa, president. ICOP DIGITAL: Reports $1.14MM Net Loss for Second Quarter --------------------------------------------------------- Icop Digital, Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $1.14 million for the three months ended June 30, 2010, compared with a net loss of $1.39 million for the same period a year ago. The Company's balance sheet at June 30, 2010, showed $6.76 million in total assets; $2.18 million of total current liabilities, $317,496 in unearned revenue - long term portion liabilities, and $4.26 million in stockholders' equity. According to the Form 10-Q, the Company has incurred significant losses, negative cash flow from operations, and has no history of operating at profitable levels. During the six months ended June 30, 2010, the Company incurred net losses of $2,800,000 and could continue to incur losses in the future until product sales are sufficient to sustain profitability. These matters, among others, raise substantial doubt about its ability to continue as a going concern. Until the Company can demonstrate sustained profitability, its ability to continue as a going concern is dependent upon obtaining additional financing in the future. The Company has primarily relied on financing through the sale of common stock. There can be no assurance that additional financing will be available, according to the Form 10-Q. A full-text copy of the quarterly report on Form 10-Q is available for free at http://ResearchArchives.com/t/s?6a03 About ICOP Digital, Inc. ICOP Digital, Inc. -- http://www.ICOP.com/-- is a leading provider of in-car video and mobile video solutions for Law Enforcement, Fire, EMS, Military, and Transportation markets, worldwide. ICOP solutions help the public and private sectors mitigate risks, reduce losses, and improve security through the live streaming, capture and secure management of high quality video and audio. INDUSTRY WEST: Plan of Reorganization Wins Court Approval --------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California confirmed Industry West Commerce Center, LLC's Plan of Reorganization, amended as of August 16, 2010. The Plan provides for the Reorganized Debtor to operate its business without further supervision or control by the Bankruptcy Court and free of any restrictions imposed by the Bankruptcy Code. Specifically, and without limitation, the Reorganized Debtor may sell, lease, or refinance its properties without further order of Court. The Reorganized Debtor will continue to be managed by Rizzo & Associates, LLC. Under the Plan, the Debtor proposes satisfaction of certain allowed claims, and the distribution thereafter of all remaining assets to the Debtor's equity security holders. On or before the effective date, the Debtor's members will make a $200,000 capital contribution to the Debtor. Allowed general unsecured claims will be paid 100% of the amount of the claims, with interest at the legal rate from the Petition Date. A full-text copy of the Plan, as amended, is available for free at: http://bankrupt.com/misc/IndustryWest_modifiedPlan.pdf About Industry West Santa Rosa, California-based Industry West Commerce Center, LLC, a California limited liability company, filed for Chapter 11 bankruptcy protection on January 14, 2010 (Bankr. N.D. Calif. Case No. 10-10088). John H. MacConaghy, Esq., at MacConaghy and Barnier, assists the Company in its restructuring effort. The Company estimated assets and debts at $10 million to $50 million in its Chapter 11 petition. INTELSAT JACKSON: Bank Debt Trades at 6% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which Intelsat Jackson Holdings Ltd. is a borrower traded in the secondary market at 93.60 cents-on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.98 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 5, 2014, and carries Moody's B3 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Intelsat Jackson Holdings is an indirect subsidiary of Intelsat Ltd. Headquartered in Pembroke, Bermuda, Intelsat is the largest fixed satellite service operator in the world and is privately held by financial investors. As reported by the Troubled Company Reporter on October 16, 2009, Standard & Poor's assigned its 'B+' issue-level and '2' recovery ratings to Intelsat Jackson Holdings Ltd.'s proposed $500 million senior notes due 2019. The '2'-recovery rating indicates expectations for substantial (70%-90%) recovery in the event of a payment default. Intelsat Subsidiary Holding Co. Ltd also guarantees the proposed notes. Issue proceeds will be used to purchase and retire about $400 million of the 11.5%/12.5% senior paid-in-kind election notes due 2017 that reside at Intelsat Bermuda Ltd. ($2.4 billion outstanding as of June 30, 2009) and for general corporate purposes. Ratings are based on preliminary documentation and are subject to review of final documents. In addition, S&P lowered the issue-level ratings on Intelsat Sub Holdco's unsecured debt to 'B+' from 'BB-'. This rating action also applies to the debt at Intelsat Jackson Holdings that is guaranteed by Sub Holdco. The downgrade of about $3.7 billion in debt is due to the increased debt that is guaranteed by Intelsat Sub Holdco. S&P revised the recovery rating on these notes to '2' from '1'. Also, S&P affirmed the 'B' corporate credit rating on parent Intelsat Ltd. The outlook is stable. The TCR reported on October 16, 2009, that Moody's assigned a B3 rating to Intelsat Jackson Holdings, Ltd.'s new $500 million 10- year note issue. The new notes are guaranteed by Intelsat Jackson's indirect, wholly owned subsidiary, Intelsat Subsidiary Holding Company, Ltd. and, as they rank equally with existing B3- rated senior notes issued by Intelsat SubHoldCo (and with senior notes at Intelsat SubHoldCo's sister company, Intelsat Corporation), they are rated at the same B3 level. INTERMETRO COMMUNICATIONS: Earns $124,000 in June 30 Quarter ------------------------------------------------------------ InterMetro Communications, Inc., filed its quarterly report on Form 10-Q, reporting net income of $124,000 on $5.8 million of revenue for the three months ended June 30, 2010, compared with a loss of $1.7 million on $5.5 million of revenue for the same period of 2009. The Company's balance sheet as of June 30, 2010, showed $4.6 million in total assets, $23.8 million in total liabilities, and a stockholders' deficit of $19.2 million. Gumbiner Savett Inc., in Santa Monica, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred net losses of $4.9 million and $9.4 million for 2009 and 2008, respectively; and as of December 31, 2009, the Company had a working capital deficit of $21.5 million and a stockholders' deficit of $20.5 million. In its latest 10-Q, the Company says that it anticipates it may not have sufficient cash flows to fund its operations through fiscal 2010 without the completion of additional financing. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a4e About InterMetro Communications Simi Valley, Calif.-based InterMetro Communications, Inc. is a Nevada corporation which, through its wholly owned subsidiary, InterMetro Communications, Inc. (Delaware), is engaged in the business of providing voice over Internet Protocol communications services. The Company owns and operates state-of-the-art VoIP switching equipment and network facilities that are utilized to provide traditional phone companies, wireless phone companies, calling card companies and marketers of calling cards with wholesale voice and data services, and voice-enabled application services. J.A.G. CARWASH: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: J.A.G. Carwash, LLC dba Fox All Pro Car Wash 3801 N. Dixie Hwy Boca Raton, FL 33431 Bankruptcy Case No.: 10-34890 Chapter 11 Petition Date: August 23, 2010 Court: United States Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Erik P. Kimball Debtor's Counsel: Julie E. Hough, Esq. 2450 Hollywood Blvd. #706 Hollywood, FL 33020 Tel: (954) 239-4760 E-mail: jhough@houghrobson.com Scheduled Assets: $26,266 Scheduled Debts: $2,492,759 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb10-34890.pdf The petition was signed by Jason Graff, managing member of JMG Realty LLC. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- J.A.G Car Wash Holdings, LLC 10-34451 08/18/10 JEAN DETHIERSANT: Files Schedules of Assets & Liabilities --------------------------------------------------------- Jean Dethiersant has filed with the U.S. Bankruptcy Court for the Central District of California its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $11,027,000 B. Personal Property $31,225 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $13,773,704 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $566,117 ----------- ----------- TOTAL $11,058,225 $14,339,821 West Hollywood, California-based Jean Dethiersant filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. C.D. Calif. Case No. 10-44108). Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger, assists the Debtor in his restructuring effort. According to his schedules, the Debtor disclosed $11,058,225 in total assets and $14,339,820 in total liabilities as of the Petition Date. JEAN DETHIERSANT: Section 341(a) Meeting Scheduled for Sept. 29 --------------------------------------------------------------- The U.S. Trustee for Region 16 will convene a meeting of Jean Dethiersant's creditors on September 29, 2010, at 10:00 a.m. The meeting will be held at RM 2610, 725 S Figueroa Street, Los Angeles, CA 90017. 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. West Hollywood, California-based Jean Dethiersant filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. C.D. Calif. Case No. 10-44108). Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger, assists the Debtor in his restructuring effort. In his schedules, the Debtor disclosed $11,058,225 in total assets and $14,339,820 in total liabilities as of the Petition Date. KENNETH STARR: Sued by American Express for Credit Card Debt ------------------------------------------------------------ Bloomberg News reports that Kenneth Starr and his company were sued by two units of American Express Co. for not paying about $350,000 in card charges. According to the report, American Express Bank FSB and American Express Centurion Bank brought the suit in New York state Supreme Court in Manhattan. Mr. Starr owes $343,431 on his American Express Platinum Card and he and Starr & Company owe $7,365 on their American Express Business Gold Rewards Card. Mr. Starr is a New York financial adviser accused of defrauding his celebrity clients and other investors out of about $59 million. Mr. Starr, 66, has been jailed since his arrest on May 27 on fraud and other charges. He has pleaded not guilty to those charges. In July he was conditionally granted $10 million bail. Mr. Starr isn't the Kenneth Starr who was special prosecutor in the Whitewater investigation during the Clinton administration. KENTUCKY ENERGY: Incurs $1 Million Net Loss in June 30 Quarter -------------------------------------------------------------- Kentucky Energy, Inc., formerly Quest Minerals & Mining Corp., filed its quarterly report on Form 10-Q, reporting a net loss of $1.0 million on $774,846 of revenue for the three months ended June 30, 2010, compared with a net loss of $662,958 on no revenue for the same period of 2009. The Company's balance sheet as of June 30, 2010, showed $5.5 million in total assets, $8.5 million in total liabilities, and a shareholders' deficit of $3.0 million. RBSM, LLP, in New York, expressed substantial doubt about Quest Minerals' ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company has suffered recurring losses from operations and that its only operating subsidiary, Gwenco, Inc., has filed for reorganization under Chapter 11 of U.S. Bankruptcy Code. In its latest 10-Q, the Company discloses that it has obtained exit facility financing through the Gwenco bankruptcy proceedings to fund the capital requirements of Gwenco; however, the borrowings under this financing may not be sufficient to address all of it capital requirements for the next 12 months, as it has exceeded the maximum capacity under the line. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a49 About Kentucky Energy Paterson, N.J.-based Kentucky Energy, Inc. (formerly Quest Minerals & Mining Corp.) acquires and operates energy and mineral related properties in the southeastern part of the United States. The Company focuses its efforts on operating properties that produce quality compliance blend coal, generating revenues and cash flow through the mining, processing, and selling of the coal located on these properties. The Company is a holding company for Quest Minerals & Mining, Ltd., a Nevada corporation, which in turn is a holding company for Quest Energy, Ltd., a Kentucky corporation, and of Gwenco, Inc., a Kentucky corporation. Quest Energy, Ltd., is the parent corporation of E-Z Mining Co., Inc, a Kentucky corporation, and of Quest Marine Terminal, Ltd., a Kentucky corporation. Gwenco leases over 700 acres of coal mines, with approximately 12,999,000 tons of coal in place in six seams. In 2004, Gwenco had reopened Gwenco's two former drift mines at Pond Creek and Lower Cedar Grove, and had begun production at the Pond Creek seam. This seam of high quality compliance coal is located at Slater's Branch, South Williamson, Kentucky. In 2009, the United States Bankruptcy Court for the Eastern District of Kentucky confirmed Gwenco's Plan of Reorganization pursuant to Chapter 11 of the U.S. Bankruptcy Code. The Plan became effective on October 12, 2009. KILEY RANCH: Case Summary & 12 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Kiley Ranch Communities 10625 Double R Boulevard, Suite 100 Reno, NV 89521 Bankruptcy Case No.: 10-53393 Chapter 11 Petition Date: August 26, 2010 Court: U.S. Bankruptcy Court District of Nevada (Reno) Judge: Gregg W. Zive Debtor's Counsel: Stephen R. Harris, Esq. BELDING, HARRIS & PETRONI, LTD 417 W. Plumb Lane Reno, NV 89509 Tel: (775) 786-7600 Fax: (775) 786-7764 E-mail: steve@renolaw.biz Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by Matthew Kiley, president. Debtor's List of 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Cav Investments, LLC -- $11,685,592 10625 Double R Boulevard, #200 Reno, NV 89521 Kiley Community Property Trust -- $2,378,100 10625 Double R Boulevard, #100 Reno, NV 89521 Mountain West Excavation -- $431,726 7955 Sugar Pine Court, #200 Reno, NV 89523 Signature Landscapes -- $228,435 City of Sparks -- $173,025 City of Sparks -- $146,985 Northern Nevada Concrete -- $101,277 Titan Electrical Contracting -- $7,300 Silver State Fence & Stain -- $6,624 Tetrus Building Materials -- $6,089 Places Consulting Services -- $3,075 Hawley Troxell Ennis & Hawley LLP -- $1,150 KINSLEY FOREST: Chapter 11 Reorganization Case Dismissed -------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Missouri dismissed Kinsley Forest Estates, LLC's Chapter 11 case. As reported in the Troubled Company Reporter on July 23, 2010, Nancy J. Gargula, the U.S. Trustee for Region 13, sought for the dismissal or conversion of the Debtor's case to one under Chapter 7 of the Bankruptcy Code, explaining that the Debtor's primary asset is subject to foreclosure and the Debtor is unlikely to be able to rehabilitate its financial operations. Lenexa, Kansas City-based Kinsley Forest Estates, LLC, filed for Chapter 11 bankruptcy protection on March 2, 2010 (Bankr. W.D. Mo. Case No. 10-40896). Nancy S. Jochens, Esq., at Jochens Law Office, Inc., assists the Company in its restructuring effort. In its schedules, the Company disclosed assets of $16,250,485, and total debts of $7,859,000. LAKE TAHOE: Plan to Pay Off Unsecured Creditors by May 2013 ----------------------------------------------------------- Lake Tahoe Development Co., LLC, submitted to the U.S. Bankruptcy Court for the Eastern District of California a proposed Plan of Reorganization and an explanatory Disclosure Statement. The Debtors will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, the Plan provides that the Debtor will market and sell its Chateau properties as a single development project, and Gateway project property to pay claims. Holders of General Unsecured Claims will receive upon the sale or disposition of the Debtor's real property a pro rata share of 80% of the net proceeds, after payment of the closing costs, administrative claims and postpetition advances by J.S. Devco, and secured creditors. Class 3 Claims will be due in full on the earlier of (1) the date of the closing of a sale or disposition of the Debtor's real property, or (2) May 1, 2013. Holder of the unsecured claim of J.S. Devco Limited Partnership, an insider, will receive equity in the reorganized Debtor upon the effective date. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/LakeTahoe_DS.pdf About Lake Tahoe Development Based in Zepher Cove, Nevada, Lake Tahoe Development Co., LLC, is a real estate development company with substantial expertise in the real estate land entitlement and permitting areas in the unique geographic location of South Lake. Its principal, Randy Lane, who is the sole owner of Mountain Ventures, LLC, which is the managing member of the Debtor, has resided and developed real estate in South Lake Tahoe since 1976. The Company owns an interest in two separate real estate development projects. The first project owned exclusively by the Debtor is a large, mixed use, condominium, 19 hotel and retail space development comprised of 29 separate real estate parcels with multiple lien holders holding liens against various parcels located at the California/Nevada state line on Highway 50, South Lake Tahoe, California. The second is property owned by the Debtor located at 1259 Emerald Bay Road, South Lake Tahoe, CA (the "Gateway Project"), which is separate and apart from the Project, 24 and is being developed by Danny Freeman pursuant to a development agreement. The Company filed for Chapter 11 protection on Oct. 5, 2009 (Bankr. E.D. Calif. Case no. 09-41579). Daniel L. Egan, Esq., Megan A. Lewis, Esq., and Jason G. Cinq-Mars, Esq., at Wilke, Fleury, Hoffelt, Gould & Birney, LLP, serve as counsel to the Debtor. The Debtor estimated assets at $100 million and $500 million, and debts at $50 million and $100 million in its Chapter 11 petition. LAS VEGAS SANDS: Bank Debt Due 2016 Trades at 9% Off ---------------------------------------------------- Participations in a syndicated loan under which Las Vegas Sands Corp. is a borrower traded in the secondary market at 91.33 cents- on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 1.93 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on November 26, 2016. The loan is not rated by Moody's and Standard & Poor's. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS) -- http://www.lasvegassands.com/-- owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo and convention center. The company also owns and operates the Sands Macao, the first Las Vegas-style casino in Macao, China. Las Vegas Sands has a 'B-' corporate family rating from Standard & Poor's Ratings Services. As reported in the TCR on July 30, 2010, Standard & Poor's placed its 'B-' corporate credit rating on the Las Vegas Sands Corp. family of companies, as well as its issue- level ratings on the companies' debt, on CreditWatch with positive implications. "In addition to announcing strong performance across its portfolio of properties during the second quarter on its earning call, Las Vegas Sands also indicated that it will pursue an amend-and-extend transaction with lenders in its U.S. credit facilities," S&P pointed out. LAS VEGAS SANDS: Bank Debt Due 2014 Trades at 10% Off ----------------------------------------------------- Participations in a syndicated loan under which Las Vegas Sands Corp. is a borrower traded in the secondary market at 90.08 cents- on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 2.19 percentage points from the previous week, The Journal relates. The Company pays 175 basis points above LIBOR to borrow under the facility. The bank loan matures on May 1, 2014. Moody's has withdrawn its rating on the bank debt while it carries Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS) -- http://www.lasvegassands.com/-- owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo and convention center. The company also owns and operates the Sands Macao, the first Las Vegas-style casino in Macao, China. Las Vegas Sands has a 'B-' corporate family rating from Standard & Poor's Ratings Services. As reported in the TCR on July 30, 2010, Standard & Poor's placed its 'B-' corporate credit rating on the Las Vegas Sands Corp. family of companies, as well as its issue- level ratings on the companies' debt, on CreditWatch with positive implications. "In addition to announcing strong performance across its portfolio of properties during the second quarter on its earning call, Las Vegas Sands also indicated that it will pursue an amend-and-extend transaction with lenders in its U.S. credit facilities," S&P pointed out. LAUREATE EDUCATION: Bank Debt Trades at 8% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Laureate Education, Inc., is a borrower traded in the secondary market at 91.55 cents-on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.50 percentage points from the previous week, The Journal relates. The Company pays 325 basis points above LIBOR to borrow under the facility. The bank loan matures on August 17, 2014, and carries Moody's B1 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Laureate Education, Inc., is based in Baltimore, Maryland, and operates a leading international network of accredited campus- based and online universities with 26 institutions in 15 countries, offering academic programs to about 311,000 students through 74 campuses and online delivery. Laureate offers a broad range of career-oriented undergraduate and graduate programs through campus-based universities located in Latin America, Europe, and Asia. Through online universities, Laureate offers the growing population of non-traditional, working-adult students the convenience and flexibility of distance learning to pursue undergraduate, master's and doctorate degree programs in major career fields including engineering, education, business, and healthcare. In July 2010, Moody's Investors Service revised Laureate Education, Inc's ratings outlook to stable from negative. Concurrently, Moody's affirmed the company's B2 corporate family rating, B2 probability-of-default rating, and its various debt ratings. "The outlook revision reflects the company's solid enrollment growth supported by the breadth of its presence in multiple geographies, many of which are growing." LEVEL 3 COMMS: Bank Debt Trades at 10% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Level 3 Communications, Inc., is a borrower traded in the secondary market at 89.58 cents-on-the-dollar during the week ended August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.30 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on March 1, 2014, and carries Moody's B1 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Broomfield, Colorado, Level 3 Communications, Inc., is a publicly traded international communications company with one of the world's largest communications and Internet backbones. Level 3 Communications carries a 'Caa1' corporate family rating, and 'Caa2' probability of default rating, with negative outlook from Moody's, a 'B-' issuer default rating from Fitch, and 'B-' long term issuer credit ratings from Standard & Poor's. LIN TV: S&P Raises Corporate Credit Rating to 'B' From 'B-' ----------------------------------------------------------- Standard & Poor's Ratings Services said it raised its corporate credit rating on Providence, R.I.-based TV broadcaster LIN TV Corp. to 'B' from 'B-'. The rating outlook is stable. At the same time, S&P raised its issue-level rating on subsidiary LIN Television Corp.'s $200 million senior unsecured notes (which are guaranteed by LIN TV Corp.) to 'BB-' (two notches higher than the 'B' corporate credit rating on the parent company) from 'B+'. The recovery rating remains unchanged at '1', indicating S&P's expectation of very high (90%-100%) recovery for noteholders in the event of a payment default. S&P also raised the issue-level ratings on LIN Television's subordinated debt to 'B-' (one notch lower than the 'B' corporate credit rating) from 'CCC+'. The recovery rating on this debt remains unchanged at '5', indicating S&P's expectation of modest (10%-30%) recovery for debtholders in the event of a payment default. "The 'B' rating reflects S&P's expectation that LIN will be able to reduce its leverage further by the end of 2010 through revenue and EBITDA growth and repayment of debt," said Standard & Poor's credit analyst Deborah Kinzer. Lease-adjusted debt to EBITDA declined to 6.5x as of June 30, 2010, from 8.1x at year-end 2009. Fully adjusted to include LIN's guarantee of joint-venture debt, debt to EBITDA was 11.0x as of June 30, 2010, down from 14.0x at year-end 2009. "S&P expects leverage to rise somewhat in 2011 due to the typical sharp decline in political ad revenue that is normal in a nonelection year, but that it will remain below the very high levels of 2009," added Ms. Kinzer. LOVELL'S AMERICAN: Members' Bankruptcy Didn't Dissolve LLC ---------------------------------------------------------- WestLaw reports that a debtor limited liability company that had been formed under Wyoming law had not ceased to exist upon all of its members filing of bankruptcy, and therefore it was a "person" eligible for bankruptcy protection, since Wyoming law provided for continued existence of an LLC in the process of dissolution. Although a dissolving event had occurred and the debtor's existence was limited to "winding up of its business," the debtor had not yet been "dissolved." In re Lovell's American Car Care, LLC, 2010 WL 2769056, slip op. http://is.gd/eGxuz(10th Cir. BAP (Wyo.)). Lovell's American Car Care, LLC, is a tire store and auto repair shop that was initially operated by Robert and Lisa Rael as a proprietorship in Lovell, Wyoming. In August 2007, the Raels organized the business as a Wyoming Limited Liability Company, with themselves its only members. Seven months later, on March 17, 2008, the Debtor filed its petition (Bankr. D. Wyo. Case No. 08-20128) for Chapter 11 relief. A copy of that petition is available at http://bankrupt.com/misc/wyb08-20128.pdfat no charge. On May 1, 2008, Mr. and Mrs. Rael filed a chapter 11 petition (Bankr. D. Wyo. Case No. 08-20251). A copy of that joint petition is available at http://bankrupt.com/misc/wyb08-20251.pdf at no charge. Additionally, on May 1, 2008, Professional Contractors, Inc., another affiliate, filed a chapter 11 petition (Bankr. D. Wyo. Case No. 08-20252). A copy of PCI's chapter 11 petition is available at http://bankrupt.com/misc/wyb08-20252.pdf at no charge. The United States Trustee moved to convert or dismiss Lovell's chapter 11 case, or directing the Debtor to file a liquidating plan. Wells Fargo Bank, owed about $681,000, joined in that request. The Bankruptcy Court declined that invitation, and all four Debtors filed a Joint Plan on Jan. 9, 2009. That joint plan drew fire from Wells Fargo when it learned that the Debtors proposed to pay the bank nothing. The Bankruptcy Court, in turn, dismissed Lovell's case on Apr. 20, 2009. The Debtor appealed that decision, and the 10th Cir. BAP says the case shouldn't have been dismissed. MAGIC BRANDS: Plan Exclusivity Extended to Nov. 17 -------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Magic Brands LLC was given a three-month extension of the exclusive right to propose a Chapter 11 plan. The new deadline is Nov. 17. Headquartered in Austin, Texas, Magic Brands, LLC -- http://www.fuddruckers.com/-- operated 62 Fuddruckers locations in 11 states and 3 Koo Koo Roo restaurants in California. Magic Brands, LLC, and its operating units filed for Chapter 11 protection on April 21, 2010 (Bankr. D. Del. Lead Case No. 10- 11310). It estimated assets of up to $10 million and debts at $10 million to $50 million in its Chapter 11 petition. Affiliate Fuddruckers, Inc., also filed, estimating assets and debts at $50 million to $100 million. FocalPoint Securities, LLC, serves as investment banker to Magic Brands, and Goulston & Storrs serves as lead bankruptcy counsel. Kurtzman Carson Consultants, LLC, is the claims and notice agent. In July 2010, Magic Brands closed the sale of the Fuddruckers stores and franchise business to restaurant operator Luby's Inc. for $63.5 million. The company changed its name to Deel LLC following the completion of the sale. MASHANTUCKET WESTERN: S&P Withdraws 'D' Issuer Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services said it withdrew its ratings on the Mashantucket Western Pequot Tribe. S&P lowered its issuer credit rating on the Tribe to 'D' on Nov. 16, 2009, following the Tribe's announcement that it did not make the full interest payment due on its notes. MEDICOR LTD: Gets Go Signal to Send Plan to Creditors for Voting ---------------------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court affirmed the adequacy of the information in explaining the disclosure statement explaining the proposed Chapter 11 plan of liquidation of Medicor Ltd. The hearing to consider confirmation of the Plan is scheduled for October 20, 2010. The Plan, as twice amended, provides that net proceeds of the prior sale of the Debtors' assets will be distributed to certain holders of allowed claims. The Plan provides for these terms: -- MediCor's prepetition senior lenders owed in excess of $57 million will receive the cash, along with their pro rata share of certain proceeds of litigation to be pursued by a liquidating trustee; and -- Holders of allowed general unsecured claims will receive (i) $700,000 cash; (ii) an additional $275,000 pursuant to a D&O settlement, and; and (iii) certain proceeds of litigation to be pursued by the liquidating trustee. About Medicor Ltd. Headquartered in North Las Vegas, Nevada, MediCor Ltd. -- http://www.medicorltd.com/-- manufactures and markets products primarily for aesthetic, plastic and reconstructive surgery and dermatology markets. The company and seven of its affiliates filed for Chapter 11 protection on June 29, 2007 (Bankr. D. Del. Lead Case No. 07-10877) to effectuate the orderly marketing and sale of their business. Dennis A. Meloro, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP, represent the Debtors' as Delaware counsel. The Debtors engaged Alvarez & Marsal North America, LLC as their restructuring advisor. David W. Carickhoff, Jr., Esq., at Blank Rome LLP represents the Official Committee of Unsecured Creditors as counsel. In its schedules of assets and debts, MediCor Ltd. disclosed total assets of $96,553,019, and total debts of $158,137,507. MERUELO MADDUX: Plan Confirmation Hearing Set for September 8 ------------------------------------------------------------- The Hon. Kathleen Thompson of the U.S. Bankruptcy Court for the Central District of California will consider on September 8, 2010, at 10:00 a.m., the confirmation of Meruelo Maddux Properties, Inc.'s Plan of Reorganization. The hearing will be held at Courtroom 301, 21041 Burbank Blvd, Woodland Hills, California. As reported in the Troubled Company Reporter on August 11, 2010, the Company's reorganization plan includes a 100% payment to all creditors of the company. The Court will also consider the confirmation of the Plan proposed by East West Bank, Legendary Investors Group No. 1, LLC, secured creditors of certain of the Debtors and unsecured guaranty creditors of the parent corporation Meruelo Maddux Properties, Inc. Legendary and EWB's Plan provides for the reorganization of the Debtors' affairs to create a strong, well-managed and well- financed operation. The Plan's foundation is an $80 million recapitalization via a $5 million cash infusion by Legendary, conversion of approximately $65 million of the proponents' debt to equity and a $10 million rights offering to Holders of MMPI Existing Common Stock. Lenders Amend Plan BankruptcyData.com reports that Legendary Investors Group No. 1, LLC and East West Bank filed a First Amended Plan of Reorganization for the Debtor. According to the Disclosure Statement, "The Plan provides for the reorganization of the Debtors' affairs to create a strong, well managed and well-financed operation. The Plan's foundation is an $80 million recapitalization via a $5 million cash infusion by Legendary, conversion of approximately $65 million of the proponents' debt to equity and a $10 million Rights Offering to Holders of MMPI Existing Common Stock as of the Effective Date. Such Holders will be offered the right to purchase up to a total of 2,202,500 additional shares of Reorganized MMPI Common Stock, equal to a 10% stake in Reorganized MMPI." EWB and Legendary are represented by: Jeremy V. Richards, Esq. Jeffrey W. Dulberg, Esq. PACHULSKI STANG ZIEHL & JONES LLP 10100 Santa Monica Blvd., 11th Floor Los Angeles, California 90067-4100 Tel: (310) 277-6910 About Meruelo Maddux Meruelo Maddux and its affiliates filed for Chapter 11 protection on March 26, 2009 (Bankr. C. D. Calif. Lead Case No. 09-13356). Aaron De Leest, Esq., John J. Bingham, Jr., Esq., and John N. Tedford, Esq., at Danning Gill Diamond & Kollitz, represent the Debtors in their restructuring efforts. Asa S. Hami, Esq., Tamar Kouyoumjian, Esq., and Victor A. Sahn, Esq., at SulmeyerKupetz, A Prof Corp, represent the official committee of unsecured creditors as counsel. The Debtors' financial condition as of December 31, 2008, showed $681,769,000 in assets and $342,022,000 of debts. METISCAN INC: Posts $134,400 Net Loss in June 30 Quarter -------------------------------------------------------- Metiscan, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $134,389 on $514,862 of revenue for the three months ended June 30, 2010, compared with net income of $60,348 on $349,423 of revenue for the same period of 2009. The Company experienced a net loss from operations of $96,450 during the three months ended June 30, 2010, as compared to a net loss from operations of $177,843 during the three months ended June 30, 2009. During the three months ended June 30, 2010, the Company experienced a net loss on the settlement of debt in the amount of $28,333. The Company experienced a net gain on the settlement of debt in the amount of $309,455 during the same period of 2009. The Company had a working capital deficit of $4.3 million at June 30, 2010. The Company's balance sheet as of June 30, 2010, showed $12.1 million in total assets, $4.5 million in total liabilities, and stockholders' equity of $7.6 million. Eugene M. Egeberg, CPA, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company has restricted a significant portion of its cash and cash equivalents and also has a large accumulated deficit through December 31, 2009. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a41 About Metiscan Inc. Dallas, Tex.-based Metiscan, Inc. (OTC PK: MTIZ) -- http://www.metiscan.com/-- is the parent company of a portfolio of enterprises with operations in healthcare, healthcare IT, mobile technology and employment services. MEXICANA AIRLINES: Suspends Flights Until Further Notice -------------------------------------------------------- Nuevo Grupo Aeronautico, S.A. de C.V. disclosed that as a result of the group's delicate financial situation when it changed owners a week ago, compounded by failure to reach agreements that would allow for the capitalization of its three airlines, Mexicana Airlines, MexicanaClick and MexicanaLink flights will suspend operations until further notice as of midday (12:00 p.m.) on Saturday, August 28, 2010. Among the factors that have contributed to this announcement are: Grupo Mexicana's fragile financial situation, which has deteriorated further over the last four weeks due to the previous management's decision to suspend ticket sales, forcing the company to continue operating in the interests of passengers without receiving any revenue. No substantial agreements were reached to give companies in the Group long-term viability. Lack of effectiveness in the insolvency (Concurso Mercantil) process intended to protect additional financial resources available to the company so it could to continue operating. Given the uncertainty of the situation, certain suppliers have begun demanding advanced payment of services that are essential to the airlines' operations. The decision is a painful one for the 8,000-strong Grupo Mexicana family, but we will continue seeking out ways of securing the company's long-term financial viability, so our passengers can once again enjoy the quality services they are accustomed to. The company hope to be back in the air soon and would like to thank everyone involved in this process for their support and understanding. If you have bookings or/and have paid for a Grupo Mexicana flight and have a reservation code, we would like to inform you that: All Mexicana, MexicanaLink and MexicanaClick flights will be suspended until further notice as of midday on Saturday, August 28, 2010. All flights programmed to depart after this hour will be canceled. Grupo Mexicana deeply regrets any inconvenience this decision may cause and will continue to assist passengers to the full extent of its abilities. Passengers who have already flown a leg of their journey and who are scheduled to fly with a Grupo Mexicana airline after Saturday, August 28, 2010 are advised to consult the websites or contact us at the numbers listed below. Priority will be given to minors traveling unaccompanied, passengers traveling with children under age 3 and special needs passengers. If you have not yet begun your journey, we recommend you make alternative travel arrangements. For information on how to apply for a refund, visit http://www.mexicana.com or http://www.cmainforma.com or contact the Company at any of the numbers listed below: Mexico City 5448-8634 5998-5998 Elsewhere in Mexico 01 800 837 6150 01 800 801 2010 United States and Canada 1 877 801 2010 1 888 882 9994 About Mexicana Airlines Compania Mexicana de Aviacion or Mexicana Airlines -- http://www.mexicana.com/-- is a privately held airline and a subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana is the oldest commercial carrier in North America. Charles Lindbergh piloted the first trip for Mexicana between Brownsville, Texas, and Mexico City. Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and Mexicana Inter S.A. de C.V. (Mexicana Link). Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's largest airline, filed for bankruptcy in the U.S. and Mexico on August 2, 2010. In the U.S., the company filed in the U.S. Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection (case no. 10-14182), and in Mexico, it filed for the equivalent of Chapter 11. Maru E. Johansen, foreign representative of Compania Mexicana, estimated in the Chapter 15 petition that the company has assets of US$500 million to US$1 billion and debts of more than US$1 billion. William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to Ms. Johansen. Mexicana de Aviacion stated that despite its bankruptcy filing, it expects to continue to operate normally, and that such filings Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines Bankruptcy News. The newsletter tracks the chapter 11 proceedings and the ancillary proceedings undertaken by Compania Mexicana de Aviacion and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MONTGOMERY REALTY: Plan of Reorganization Wins Court Approval ------------------------------------------------------------- The Hon. Dennis Montali on the U.S. Bankruptcy Court for the Northern District of California confirmed Montgomery Realty Group Inc.'s Plan of Reorganization, as amended and restated. According to the restated Plan, the Debtor intends to resolve all claims against it and the real property located at 710 Sansome Street, San Francisco, California, 447 Battery Street, San Francisco, California and 1007 E. Rundberg, Austin, Texas that constitute its principal assets. The Plan provides for a restructuring of the debts encumbering two continuing properties, a surrender of the Glen Oaks Apartments to its secured creditors and for payment of all other claims against the Debtor. On the Effective Date, the Debtor will fund the treatment of all unclassified claims, and every other payment required to be made on the Effective Date. Full-text copy of the Disclosure Statement, as amended, is available for free at: http://bankrupt.com/misc/MONTGOMERYREALTY_AmendedPlan.pdf Based in San Francisco, Montgomery Realty Group, Inc. filed for Chapter 11 relief on July 6, 2009 (Bankr. C.D. Calif. Case No. 09-31879). Montgomery leases and operates improved properties. Michael St. James, Esq., at St. James Law, represents the Debtor as counsel. In its petition, the Debtor estimated between $10 million and $50 million each in assets and debts. MSGI SECURITY: Taps L J Soldinger as New Accountant --------------------------------------------------- MSGI Security Solutions Inc. terminated on Aug. 19, 2010 the services of Amper, Politziner & Mattia LLP as the Company's Independent Registered Public Accounting Firm. On the same date, the Company, with the approval of the Audit Committee, engaged L J Soldinger Associates LLC as the Company's new independent accountants. As AP&M, the firm served as the Company's Independent Registered Public Accounting Firm for each of the fiscal years ended June 30, 2003, 2004, 2005, 2006, 2007, 2008, and 2009, and for the first, second and third quarters of the fiscal year ended June 30, 2010. The decision to terminate the services of AP&M was approved by the Audit Committee of the Company's Board of Directors. About MSGI Security MSGI Security Solutions, Inc. (Other OTC: MSGI) -- http://www.msgisecurity.com/-- is a provider of proprietary solutions to commercial and governmental organizations. The Company is developing a global combination of innovative emerging businesses that leverage information and technology. The Company is headquartered in New York City where it serves the needs of counter-terrorism, public safety, and law enforcement and is developing new technologies in nanotechnology and alternative energy as a result of its recently formed relationship with The National Aeronautics and Space Administration. The Company's balance sheet at March 31, 2010, showed $2.1 million in total assets, $20.3 million in liabilities, and a stockholders' deficit of $18.2 million. Amper, Politziner & Mattia, LLP, in Edison, New Jersey, expressed substantial doubt about MSGI Security Solutions, Inc.'s ability to continue as a going concern after auditing the Company's consolidated financial statements for the years ended June 30, 2009, and 2008. The auditing firm reported that the Company has suffered recurring losses from operations, and negative cash flows from operations, and has a substantial amount of notes payable due on demand or within the next 12 months and has very limited capital resources. NATIONAL RESORT: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: National Resort, LLC 100 Heatherbrook Park Drive Birmingham, AL 35242 Bankruptcy Case No.: 10-51957 Chapter 11 Petition Date: August 23, 2010 Court: United States Bankruptcy Court Southern District of Mississippi (Gulfport Divisional Office) Judge: Neil P. Olack Debtor's Counsel: William P. Wessler, Esq. WILLIAM P. WESSLER 1624 24th Avenue P.O. Box 175 Gulfport, MS 39502 Tel: (228) 863-3686 Fax: (228) 863-7877 E-mail: wwessler@cableone.net 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 James M. Clark. NBTY INC: S&P Downgrades Corporate Credit Rating to 'B+' -------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on NBTY Inc. to 'B+' from 'BB' and removed all the ratings from CreditWatch negative, where they were placed on July 15, 2010. The outlook is stable. S&P also lowered the issue-level rating on NBTY's senior secured credit facility to 'BB' from 'BBB-'. The recovery rating is '1', which indicates S&P's expectation of very high (90% to 100%) recovery for debt holders in the event of payment default. S&P also lowered the issue-level rating on NBTY's senior subordinated notes due 2015 to 'B+' from 'BB'. The recovery rating is '3', which indicates S&P's expectation of meaningful (50% to 70%) recovery for debt holders in the event of payment default. Concurrently, S&P assigned a preliminary 'BB' issue-level rating on the proposed $1.7 billion senior secured credit facility, which is comprised of a $200 million revolver, $200 million term loan A and $1.3 billion term loan B. The recovery rating is '1', which indicates S&P's expectation of very high (90% to 100%) recovery for debt holders in the event of payment default. S&P also assigned a preliminary 'B' issue-level rating on the proposed $900 million bridge facility/senior unsecured notes. The recovery rating is '5', which indicates S&P's expectation of modest (10% to 30%) recovery for debt holders in the event of payment default. The preliminary issue and recovery ratings on the company's proposed senior secured credit facility and bridge facility/senior unsecured notes are based on preliminary terms and closing conditions, subject to review upon receipt of final documentation. Upon closing of the transaction, S&P will withdraw its ratings on the existing senior secured credit facility and senior subordinated debt. "The lower rating reflects weakened credit measures following the proposed capital structure, which will include about $2 billion in additional debt," said Standard & Poor's credit analyst Jacqueline Hui. S&P estimates pro forma adjusted leverage, as of trailing 12-months June 30, 2010, to be about 5.4x compared with 1.7x prior to the transaction during the same period. S&P views the company's financial profile as highly leveraged due to the significant debt burden and its aggressive financial policy. In addition to the weaker credit metrics and aggressive financial policy, the 'B+' rating on NBTY also reflects the company's participation in the highly competitive vitamins, minerals, and supplements industry, which S&P believes supports a fair business risk profile. Other factors include the company's distribution channel and product diversity, and scale. NBTY is a vertically integrated VMS manufacturer and marketer. S&P believes the company's vertical integration, manufacturing efficiency and scale allow it to produce low-cost products that are diversely distributed through wholesale, retail and direct- response channels (including mail order and internet sales). The company maintains a strong market position; however, the VMS market remains highly competitive and fragmented in all distribution channels and is characterized by promotional and discount activity. The outlook on NBTY is stable, reflecting S&P's expectation that the company will maintain pro forma credit metrics in line with the current rating over the near term. S&P expects NBTY's operating performance to remain strong as it gradually reduces debt levels. S&P could consider a downgrade if operating performance weakens and adjusted leverage increases to 6.5x. S&P estimates this could occur if EBITDA declined 18% (assuming debt levels do not significantly change from current levels). Alternatively, however unlikely, S&P could consider an upgrade if the company pays down debt and if operating performance continues to strengthen, causing leverage to decrease to 4x over the near term. S&P estimates that this could occur if EBITDA increased 19% (assuming debt levels do not significantly change). NEXSTAR BROADCASTING: S&P Raises Corporate Credit Rating to 'B' --------------------------------------------------------------- Standard & Poor's Ratings Services said it raised its corporate credit rating on Irving, Texas-based TV broadcaster Nexstar Broadcasting Group Inc. to 'B' from 'B-'. The rating outlook is stable. S&P also raised the issue-level rating on the $175 million senior secured credit facilities of Nexstar Broadcasting Inc. and Mission Broadcasting Inc. to 'BB-' (two notches higher than the parent's 'B' corporate credit rating) from 'B+'. The recovery rating remains unchanged at '1', indicating S&P's expectation of very high (90%-100%) recovery for lenders in the event of a payment default. The credit facilities are guaranteed by parent Nexstar Broadcasting Group Inc. In addition, S&P raised the issue-level rating on the $325 million second-lien notes co-issued by Nexstar Broadcasting Inc. and Mission Broadcasting Inc., and guaranteed by Nexstar Broadcasting Group Inc., to 'B' (at the same level as the 'B' corporate credit rating) from 'B-'. The recovery rating on this debt also remains unchanged, at '3', indicating S&P's expectation of meaningful (50%-70%) recovery for noteholders in the event of a payment default. Finally, S&P raised the issue-level rating on the 7% senior subordinated notes issued by Nexstar Broadcasting Inc. and the 11.375% senior discount notes issued by Nexstar Finance Holdings Inc. to 'CCC+' (two notches lower than the parent's 'B' corporate credit rating) from 'CCC'. The recovery rating on these issues remains unchanged at '6', indicating S&P's expectation of negligible (0%-10%) recovery for noteholders in the event of a payment default. "The 'B' corporate credit rating reflects S&P's expectation that Nexstar's core ad revenue will continue growing modestly in 2010 and 2011," said Standard & Poor's credit analyst Deborah Kinzer. The EBITDA growth resulting from the rebound in core advertising, combined with political ad revenue from the 2010 midterm elections, should, in S&P's view, enable Nexstar to reduce its leverage significantly by the end of the year. NORTEL NETWORKS: To Sell Multi Service Switch Business ------------------------------------------------------ Nortel Networks has plans to sell substantially all of the assets of its North America, Caribbean and Latin America and Asia Multi Service Switch business to PSP Holding for US$39 million. The deal is a "stalking horse" asset sale, which means other companies can come in an trump the offer. These agreements include the planned sale of substantially all assets of the MSS business globally including the associated Data Packet Network and Shasta product groups. These agreements also include certain intellectual property related to the MSS business. Currently, subject to the terms of these agreements as well as any changes that may occur through the stalking horse and sale process, substantially all MSS employees would have the opportunity to continue employment with PSP. This includes the employees assigned to the MSS business in certain EMEA jurisdictions who would transfer to PSP by operation of law. Commenting on the announcement, John Luszczek, General Manager of Nortel's MSS business said: "Today's announcement is welcome news to all MSS customers, suppliers, partners and employees. The proposed transaction represents a clear and positive step forward and is a testament of our continued commitment to innovation and customer support that resulted in the creation of the business value evident by today's announcement. Throughout this process we will remain focused on providing our customers with the highest level of service, support and responsiveness that they have come to expect." About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- delivers communications capabilities that make the promise of Business Made Simple a reality for the Company's customers. The Company's next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate the barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138). Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. The Nortel Companies related in a press release that Nortel Networks UK Limited and certain subsidiaries of the Nortel group incorporated in the EMEA region have each obtained an administration order from the English High Court of Justice under the Insolvency Act 1986. The applications were made by the EMEA Subsidiaries under the provisions of the European Union's Council Regulation (EC) No. 1346/2000 on Insolvency Proceedings and on the basis that each EMEA Subsidiary's centre of main interests is in England. Under the terms of the orders, representatives of Ernst & Young LLP have been appointed as administrators of each of the EMEA Companies and will continue to manage the EMEA Companies and operate their businesses under the jurisdiction of the English Court and in accordance with the applicable provisions of the Insolvency Act. Several entities, particularly, Nortel Government Solutions Incorporated have material operations and are not part of the bankruptcy proceedings. As of September 30, 2008, Nortel Networks Corp. reported consolidated assets of US$11.6 billion and consolidated liabilities of US$11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of September 30, 2008, NNI had assets of about US$9 billion and liabilities of US$3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about US$4.2 billion of unsecured public debt. Bankruptcy Creditors' Service, Inc., publishes Nortel Networks Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Nortel Networks Corp. and its various affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) NOVA CHEMICALS: S&P Affirms 'B+' Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its ratings, including its 'B+' long-term corporate credit rating on NOVA Chemicals Corp. The outlook is stable. "The ratings on NOVA Chemicals reflect S&P's view of the company's exposure to volatile commodity chemicals, heavy reliance on one asset for the majority of cash flows, and concerns about declining ethane volume at the Joffre, Alta. Plant," said Standard & Poor's credit analyst Jatinder Mall. These weaknesses are counterbalanced in S&P's opinion by NOVA Chemicals' cost-competitive olefins/polyolefins business, which generates good cash flow through the cycle; improving leverage; and parental support from International Petroleum Investment Co. (AA/Stable/A-1+). NOVA Chemicals produces commodity chemicals and plastics used in consumer, industrial, and packaging products. The company has an annual production capacity of 6,600 million pounds of ethylene and 3,620 million pounds of polyethylene. It also produces a small amount of performance styrenics, which includes expandable polystyrene and styrenic polymer performance products. Nova Chemicals' Ineos Nova joint venture produces styrene monomer and solid polystyrene in North America and Europe. The stable outlook reflects Standard & Poor's view of NOVA Chemicals' improving financial performance and the parental support S&P believes IPIC will provide. Although credit metrics have improved S&P remain cautious given the inherent volatility in demand and prices for the company's product. S&P believes credit metrics can quickly change as seen in 2008-2009 and, as such, the stable outlook takes into account a through-the-cycle EBITDA. However, S&P could lower the ratings on the company if market conditions quickly deteriorate due to an economic slowdown or the Joffre plant production reduces significantly due to lower ethane supply, or if S&P views that IPIC has changed its parental support or financial policy toward NOVA Chemicals. Given the reliance on a single asset and volatility in cash flows, an upgrade would require the company to have adjusted debt of below US$2 billion with through-the-cycle EBITDA of US$400 million-US$500 million, leading to sustained leverage of about 3.5x-4.0x. OLD TIME POTTERY: Emerges from Chapter 11 Protection ---------------------------------------------------- Susan Dickenson at Home Accents Today reports that Old Time Pottery emerged from Chapter 11 bankruptcy protection. The Company, according to the report, closed seven underperforming stores as part of the plan. The Company now operates 30 stores in 10 states with corporate headquarters and distribution services based in Murfreesboro, Tennenssee. As reported in the TCR on June 16, Old Time Pottery received confirmation of a Chapter 11 plan where SunTrust Bank, the secured lender owed $15 million at the outset of bankruptcy, will have the remainder of its claim paid with a new $20 million revolving credit from FirstMerit Bank NA from Cincinnati. SunTrust's loan was paid down in part with proceeds from inventory in the stores that closed. Unsecured creditors, who were listed as having $23 million in claims, will receive payment of 75% of their approved claims when the plan is implemented. The remaining 25%, plus interest on the deferred portion, will be paid by Dec. 25, 2010. Old Time Pottery is a home decor retailer. It filed for Chapter 11 with 37 stores. Eight were closed. The Company filed for Chapter 11 on Aug. 21, 2009 (Bankr. M.D. Tenn. Case No. 09-09548). G. Rhea Bucy, Esq., Linda W. Knight, Esq., and Thomas H. Forrester, Esq. at Gullett, Sanford, Robinson, Martin represent the Debtor in its restructuring efforts. In its petition, the Debtor listed $50,000,001 to $100,000,000 in assets and $10,000,001 to $50,000,000 in debts. OPTI CANADA: Completes Issuance of US$100 Million Senior Notes -------------------------------------------------------------- OPTI Canada Inc. has completed the issuance of US$100 million face value of 9.0% First Lien Senior Secured Notes due Dec. 15, 2012 and US$300 million face value of 9.750% First Lien Senior Secured Notes due Aug. 15, 2013. The new 2012 Notes and 2013 Notes were issued at a price of 99.5% and 96.5% respectively, resulting in a yield to maturity of approximately 9.2% and 11.2% respectively. Using the Aug. 19, 2010 Bank of Canada closing exchange rate of US$0.9623 = C$1.00, the net proceeds to the Company from the sale of the Notes is approximately C$392 million, after deducting certain fees and expenses related to the offerings and adjusting for the offering prices. The purpose of the offerings is to maintain sufficient liquidity through the ramp-up period of the Long Lake Project and to allow the Company to continue with its previously announced review of strategic alternatives. The Company intends to use the net proceeds to repay outstanding borrowings of C$50 million under its revolving credit facility, to fund an interest escrow account of approximately US$87 million relating to the 2013 Notes, and for general corporate purposes. The issuance of the Notes was led by Credit Suisse Securities (USA) LLC as Sole Book-Running Manager, TD Securities (USA) LLC and Scotia Capital (USA) Inc. as joint lead managers, and RBC Capital Markets Corporation and HSBC Securities (USA) Inc. as co- managers. In conjunction with the issuance of the Notes, the company amended certain terms and conditions of its Credit Facility which included increasing the maximum allowable debt-to-capitalization ratio to 75%. The Company's Credit Facility remains in the aggregate amount of C$190 million, maturing on Dec. 15, 2011. About OPTI OPTI Canada Inc. is a Calgary, Alberta-based company focused on developing major oil sands projects in Canada using its proprietary OrCrude(TM) process. OPTI's common shares trade on the Toronto Stock Exchange under the symbol OPC. * * * OPTI Canada carries a 'CCC+' long-term corporate credit rating from Standard & Poor's Ratings Services. It has a 'Caa2' corporate family rating from Moody's Investors Service. "S&P base its decision to lower the ratings on the increasing financing burden associated with OPTI's debt and the widening gap between potential cash flow generation, and financing and spending obligations," said Standard & Poor's credit analyst Michelle Dathorne in August 2010, to explain S&P's downgrade of the corporate rating to 'CCC+' from 'B-'. "Our estimates of the operating cash flows necessary for the company to fund all required financing obligations and capital spending internally provide no allowances for production shortfalls or commodity-price weakness from now until 2012. This lack of financial flexibility is characteristic of a credit profile in the 'CCC' category," Ms. Dathorne added. OTC HOLDINGS: Moody's Downgrades Unit's Default Rating to 'D' ------------------------------------------------------------- Moody's Investors Service downgraded Oriental Trading Company Inc.'s Probability of Default Rating to D from Ca/LD. The downgrade was prompted by OTC's July 25, 2010 announcement that it entered chapter 11 in the United States Bankruptcy Court. Ratings Rationale Subsequent to the actions, Moody's will withdraw the ratings because OTC has entered bankruptcy. These ratings were downgraded and will be withdrawn: -- Probability of Default Rating to D from Ca/LD These ratings will be withdrawn: -- Corporate Family Rating at Ca -- Probability of Default Rating at D -- 1st lien credit facilities at Caa2 (LGD 2, 26%) -- 2nd lien term loan at C (LGD 5, 74%) OTC is a direct marketer of novelties, toys, party supplies, and home d�cor products. The company generates annual revenue of about $485 million. OTC HOLDINGS: S&P Downgrades Unit's Bank Loan Rating to 'D' ----------------------------------------------------------- Standard & Poor's Ratings Services said it has lowered its bank loan rating on the company's $460 million first-lien facility to 'D' from 'CC' and kept the '4' recovery rating on this debt, indicating S&P's expectation for an average (30% to 50%) recovery of principal. The downgrade resulted from OTC's filing a voluntary petition for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court in Delaware on Aug. 25, 2010. OTC indicated that it obtained a $40 million debtor-in-possession facility from existing lenders. The company's proposed restructuring plan would allow it reduce its debt by about 70% and continue its operations. Ratings List Downgraded Oriental Trading Co. Inc. Senior Secured To From -- ---- US$50 mil sr secd revolv cred fac D CC bank ln due 07/31/2012 Recovery Rating 4 4 To From -- ---- US$410 mil first lien term bank ln D CC due 07/31/2013 Recovery Rating 4 4 OTC HOLDINGS: Files for Chapter 11 with Plan Support Deal --------------------------------------------------------- OTC Holdings Corporation, together with affiliates, including Oriental Trading Co., filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 10-12636) on August 25, with an agreement with first-lien lenders for a Chapter 11 plan. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that second-lien lenders, owed $180 million plus interest, are not parties to the plan support agreement. Another group of creditors, the mezzanine lenders, is owed a total of $120 million. According to the report, the Plan would give first-lien lenders, owed $403.6 million, all of the new stock plus a new $200 million second-lien note to the senior lenders. If the plan goes through, second-lien creditors would be given warrants for 2.5% of the stock with a strike price based on an enterprise value of $427.5 million. The first-lien lenders, the Bloomberg report relates, will provide a $40 million of DIP financing to fund the Chapter 11 case. At confirmation of the plan, there would be a $50 million first-lien term loan to pay off the DIP loan. JPMorgan Chase Bank NA is agent for the first-lien creditors while Wilmington Trust FSB is agent on the second-lien credit. Wachovia Bank NA serves as agent for the mezzanine debt holders. Joel A. Waite, Esq., and Kenneth J. Enos, Esq., at Young, Conaway, Stargatt & Taylor, serve as counsel to the Debtor. Operating company Oriental Trading Co. is a direct marketer of home decor products, toys, and novelties. An affiliate of The Carlyle Group purchased 68% of OTC in July 2006 from private- equity investor Brentwood Associates, which continues to own about 24 percent of the equity. OTC said it has assets of $463 million and liabilities of $757 million as of April 3. According to Bloomberg, the Company said that prepetition efforts to negotiate a standalone plan between first- and second-lien lenders were unsuccessful. OTC then searched for a purchaser. None of the offers was enough to pay first-lien debt in full. OTC HOLDINGS: Case Summary & 30 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: OTC Holdings Corporation 5455 South 90th Street Omaha, NE 68127 Bankruptcy Case No.: 10-12636 Chapter 11 Petition Date: August 25, 2010 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Judge: Kevin J. Carey Debtor-affiliates filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- OTC Investors Corporation 10-12637 8/25/10 Oriental Trading Company, Inc. 10-12638 8/25/10 Fun Express, Inc. 10-12639 8/25/10 Oriental Trading Marketing, Inc. 10-12640 8/25/10 Debtors' Local Counsel: Joel A. Waite, Esq. Kenneth J. Enos, Esq. YOUNG, CONAWAY, STARGATT & TAYLOR The Brandywine Building 1000 West Street, 17th Floor P.O. Box 391 Wilmington, DE 19899-0391 Tel: (302) 571-6600 Fax: (302) 571-0453 E-mail: bankfilings@ycst.com Debtors' Bankruptcy Counsel: Richard Hahn, Esq. My Chi To, Esq. Jae-Sun Chung, Esq. Huyue Angela Zhang, Esq. Jessica Katz, Esq. DEBEVOISE & PLIMPTON LLP 919 Third Avenue New York, NY 10022 Tel: (212) 909-6000 Fax: (212) 909-6836 Debtors' Financial Advisors: JEFFERIES & COMPANY, INC. Debtors' Restructuring Consultant: PROTIVITI, INC. Debtors' Claims Agent: KURTZMAN CARSON CONSULTANTS LLC Stated Assets: $463 million Stated Debts: $757 million The petitions were signed by Steven G. Mendlik, chief financial officer. Oriental Trading Company's List of 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Second Lien Holders Bank Loan $185,837,870 1100 North Market Street Wilmington, DE 19890 Mezzanine Debt Holders Bank Loan $85,706,030 1100 North Market Street Wilmington, DE 19890 BSM Enterprise Ltd Trade Debt $4,256,606 Min'An Commercial Building No. 160-162 Jin Yuan East Lane Jiangdong Ningbo City 315040 China World Color Logistics Trade Debt $2,767,260 N63 W23075 State Highway 74 Sussex, WI 53089-2827 Yeko Traders/China Trade Debt $2,001,367 Yee Kuk Industrial Centre, 2nd Floor 555 Yee Kuk Street Cheung Sha Wan Kowloon, Hong Kong Google Trade Debt $1,720,443 1600 Ampitheatre Parkway Mountain View, CA 94043 Intertek Testing Services Hongkong Trade Debt $1,230,679 Garment Centre, 2nd Floor 576 Castle Peak Road Kowloon, Hong Kong UPS Trade Debt $706,253 2535 Edward Babe Gomez Avenue Omaha, NE 68107 Epsilon Data Management LLC Trade Debt $570,000 41 Metropolitan Road Toronto, ON Canada M1R2T5 Forsythe Solutions Group, Inc. Trade Debt $504,089 7770 Frontage Road Skoke, IL 60077 Federal Express Corp. Trade Debt $445,035 105 NW 44th Street Kansas City, MO 64116 Lucky Worldwide Trade Debt $362,250 95, Section 2 Nan Kang Road, 10th Floor Taipei, Taiwan ROC Omniglow Corporation Trade Debt $355,878 91 Pinevale Street Indian Orchard, MA 01151 American President Lines, Ltd Trade Debt $354,957 116 Inverness Drive East, Suite 400 Englewood, CO 80112 New Success Trade Debt $350,968 Inter-Continental Plaza, 5th Floor 94 Granville Road Tsim Sha Tsui East Kowloon, Hong Kong Gleacher & Company Securities Inc Professional Fee $345,000 1290 Avenue of the Americas, 4th Floor New York, NY 10104 Diversified Solutions Trade Debt $295,524 17117 Oak Drive, Suite B Omaha, NE 68130 Hershey's Chocolate USA Trade Debt $256,029 100 Crystal Drive Hershey, PA 17033 Crayola, LLC Trade Debt $234,155 Experian Marketing Solutions Trade Debt $233,093 Yahoo! Search Marketing Trade Debt $193,882 Alisios International Corp Trade Debt $192,975 Microsoft Corp Trade Debt $187,841 Hay Nien Company, Limited Trade Debt $176,336 Creative Converting Trade Debt $165,400 Jiesen Trade Co., Ltd Trade Debt $162,929 Nestle USA Inc. Trade Debt $139,338 Concord Division of Tri Sales Trade Debt $124,054 Hospitality Mints Trade Debt $114,368 Tootsie Roll Industries Trade Debt $108,086 PACIFIC AVENUE: Regions Bank Wants Examiner to Probe Books ---------------------------------------------------------- Kerry Hall Singe at The Charlotte Observer reports that Regions Bank is asking the Bankruptcy Court to order the appointment of an examiner to study the EpiCentre project's record-keeping, claiming "self-dealing," "suspicious transactions" -- including one involving the city -- and financial irregularities. "Despite restaurants and bars that appear to be thriving and popular, the project itself generates relatively insignificant net cash flow," Region Bank said, according to the report. The bank started foreclosure proceedings in July, claiming the EpiCentre had stopped paying on a $90 million loan in December. A hearing on the bank's request is set for Sept. 15. About Pacific Avenue Pacific Avenue, LLC, is a North Carolina limited liability company whose principal place of business is located in Charlotte, North Carolina. Together with Pacific Avenue II, LLC, the Company owns and operates the EpiCentre, a mixed-use commercial development consisting of approximately 302,000 rentable square feet of office and retail/entertainment space, plus an underground parking deck, located at 210 E. Trade St. in the city block surrounded by the light rail line, Fourth Street, College Street, and Trade Street in uptown Charlotte, North Carolina. Pacific Avenue, LLC, filed for Chapter 11 bankruptcy protection on July 22, 2010 (Bankr. W.D. N.C. Case No. 10-32093). The Company's affiliate, Pacific Avenue II, filed a separate Chapter 11 petition. Joseph W. Grier, III, Esq., at Grier, Furr & Crisp, P.A., assists the Company in its restructuring effort. The Company estimated up to $50,000 in assets and $50 million to $100 million in debts in its bankruptcy petition. PEANUT CORP: Judge Backs $12 Million Deal for Peanut Victims ------------------------------------------------------------ U.S. Magistrate Judge Michael Urbanski of the U.S. District Court for the Western District of Virginia on Wednesday recommended approving a settlement in which the trustee for Peanut Corp. of America would distribute $12 million to resolve more than 120 tort claims arising from people who became ill or died after eating salmonella-tainted peanut products, Bankruptcy Law360 reports. Following a nationwide outbreak of Salmonella poisoning that reports say sickened more than 700 people and killed nine, Peanut Corporation of America -- http://www.peanutcorp.com/-- filed a Chapter 7 bankruptcy petition in February 2009 (Bankr. W.D. Va. Case No. 09-60452). The Company estimated its assets and liabilities in the range of $1 million to $10 million at the time of the filing. PRIVATE MEDIA: Reports EUR931,000 Net Income for June 30 Quarter ---------------------------------------------------------------- Private Media Group filed its quarterly report on Form 10-Q, reporting net income of EUR931,000 on EUR6.0 million of revenue for the three months ended June 30, 2010, compared with a net loss of EUR 1.6 million on EUR6.2 million of revenue for the same period of 2009. The Company reported an operating profit of EUR 1.0 million for the three months ended June 30, 2010, compared to an operating loss of EUR 2.2 million for the three months ended June 30, 2009. The EUR 3.2 million improvement was the result of change in fair value of contingent consideration payable and reduced selling, general and administrative expenses offset by reduced gross profit. The Company's balance sheet at June 30, 2010, showed EUR 45.3 million in total assets, EUR 17.6 million in total liabilities, and EUR 27.7 million in shareholders' equity. As reported in the Troubled Company Reporter on May 31, 2010, BDO Auditores S.L., in Barcelona, Spain, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company has suffered recurring losses from operations over the past years and has not yet reestablished profitable operations. In its latest 10-Q, the Company discloses that it currently has no additional availability under its existing credit facilities. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a3f About Private Media Based in Barcelona, Spain, Private Media Group, Inc., is an international provider and distributor of adult media content. The Company acquires or licenses content from independent studios and directors and processes these images into products suitable for popular media formats such as digital media content for Broadcasting, Mobile and Internet distribution, and print publications and DVDs. In addition to media content, the Company also generates additional sales through the licensing of its Private trademark to third parties. The Company's U.S. headquarters are located at 537 Stevenson Street, in San Francisco, California. PROFESSIONAL VETERINARY: Court Okays Sept. 9 Auction ---------------------------------------------------- Dow Jones' DBR Small Cap reports that Professional Veterinary Products Ltd., won court approval to put its operating assets on the block next month. Judge Timothy J. Mahoney of the U.S. Bankruptcy Court in Omaha, Neb., on Thursday said Professional Veterinary Products may sell such assets as inventory, equipment, software and intellectual property to the highest bidder at a Sept. 9 auction, court papers show. DBR says Professional Veterinary Products is asking bidders to submit their offers by Sept. 7, and Judge Mahoney said he'd consider approving the winning bid at a Sept. 10 sale hearing. Professional Veterinary Products said it has received a nonbinding offer of $18 million from rival Animal Health International Inc. The publicly traded company is also offering to take over Professional Veterinary Products' lease to its York, Pa., facility as well as offering to consider hiring some of its employees. Professional Veterinary Products and its ProConn subsidiary on August 20, 2010, completed the sale of their inventory of certain animal health products and miscellaneous related assets to Micro Beef Technologies, Ltd. The assets sold to Micro Beef primarily consisted of inventory located in the delivery vehicles operated by salespersons of the Company who accepted employment offers with Micro Beef. The purchase price for the Micro Beef transaction was based on the cost of the inventory to the Company and ProConn, which amount totaled approximately $1.5 million plus the assumption of certain vehicle leases. On August 17, 2010, the Company completed the sale of its inventory of certain swine products and miscellaneous related assets to Lextron, Inc. The purchase price for the Lextron transaction was based on the cost of the inventory to the Company, which amount totaled approximately $2.5 million. The proceeds of the Micro Beef and Lextron transactions were paid to Wells Fargo Bank, National Association, and used to reduce the obligations owing under the terms of the Credit and Security Agreement dated January 29, 2010. About Professional Veterinary Professional Veterinary Products Ltd. -- http://.pvpl.com/-- operates a veterinary supply company owned and managed by veterinarians. Includes company information, products, and an online tour. Professional Veterinary sought Chapter 11 protection from creditors on August 20 in Omaha, Nebraska (Bankr. D. Neb. Case No. 10-82436). Affiliates ProConn and Exact Logistics also filed for Chapter 11. The Company reported $89.79 million in total assets, $78.23 million in total liabilities, and $11.56 million in stockholders' equity as of June 30, 2010. The Company has hired McGrath North Mullin & Kratz PC LLO, as bankruptcy counsel and Alliance Management as financial and restructuring advisors. PROFESSIONAL VETERINARY: Board OKs Key Employee Incentive Program ----------------------------------------------------------------- The Board of Directors of Professional Veterinary Products, Ltd., on August 24, 2010, approved Key Executive Employee Incentive Agreements with each of these officers: (a) Stephen J. Price, President and Chief Executive Officer; (b) Jamie Meadows, Chief Operating Officer; and (c) Vicky Winkler, Director of Finance (principal financial officer). The Incentive Agreements are subject to Bankruptcy Court approval and structured to incentivize such officers to, among other things, consummate a sale of substantially all of the Company's inventory to a buyer pursuant to Section 363 of the Bankruptcy Code. The Incentive Agreements provide for these payments to each officer: -- bonuses of $72,000 to Mr. Price, $35,000 to Mr. Meadows and $22,000 to Ms. Winkler, if the officer is employed by the Company on the date the Bankruptcy Court confirms a sale of substantially all of the Company's inventory to a buyer pursuant to Section 363 of the Bankruptcy Code; and -- bonuses of $40,000 to Mr. Price and $14,000 to Ms. Winkler, if the officer is employed by the Company on (a) November 30, 2010 or (b) the date a distribution is made to general unsecured creditors (other than a distribution from the sale of substantially all of the Company's inventory to a buyer pursuant to Section 363 of the Bankruptcy Code). About Professional Veterinary Professional Veterinary Products Ltd. -- http://.pvpl.com/-- operates a veterinary supply company owned and managed by veterinarians. Includes company information, products, and an online tour. Professional Veterinary sought Chapter 11 protection from creditors on August 20 in Omaha, Nebraska (Bankr. D. Neb. Case No. 10-82436). Affiliates ProConn and Exact Logistics also filed for Chapter 11. The Company reported $89.79 million in total assets, $78.23 million in total liabilities, and $11.56 million in stockholders' equity as of June 30, 2010. The Company has hired McGrath North Mullin & Kratz PC LLO, as bankruptcy counsel and Alliance Management as financial and restructuring advisors. PROFESSIONAL VETERINARY: $40MM DIP Loan Expires Sept. 30 -------------------------------------------------------- Professional Veterinary Products, Ltd., and its subsidiaries, ProConn, LLC, and Exact Logistics, LLC, in connection with their bankruptcy filing, entered into a Stipulation For Secured Borrowing and Adequate Protection on August 20, 2010, with their existing lender, Wells Fargo Bank, National Association. The DIP Facility contemplates that the Lender will make revolving loans available to the Debtors under the terms of the Credit and Security Agreement dated January 29, 2010 by and among the Debtors and the Lenders, together with the loan documents related thereto. The loans available to the Debtors under the DIP Facility are in an aggregate amount of up to $40 million, subject to borrowing base and budget limitations, for working capital and other general corporate purposes. The loans bear interest at the rate of 3-month LIBOR plus 8.50% per annum, and require payment of a $75,000 commitment fee. The DIP Facility is subject to the approval of the Bankruptcy Court. Wells Fargo also permits the Debtors to use cash collateral. Pursuant to the Stipulation, Wells Fargo Lender holds $8,454,032 in claims against the Debtors as of August 19, 2010, which includes $85,436 in interest. The DIP Facility terminates, and the loans under the DIP Facility mature, on the earliest to occur of (a) September 30, 2010, (b) the failure of the Debtors to achieve certain milestones with respect to the sale of assets pursuant to Section 363 of the Bankruptcy Code during September 2010, (c) the occurrence of an event of default under the DIP Facility, or (d) the approval of the Bankruptcy Court of the sale of assets pursuant to Section 363 of the Bankruptcy Code and the payment of the proceeds thereof to the Lender in an amount sufficient to pay the obligations owing to the Lender in full. The DIP Facility requires monthly interest payments, and principal and accrued interest are payable on the applicable maturity date described above. The Debtors' obligations under the DIP Facility are secured by a lien on substantially all of the assets of the Debtors, as well as a superpriority administrative claim in the Bankruptcy Case. The DIP Facility contains various representations, warranties and covenants by the Debtors, and events of default, that are customary for transactions of this nature. Wells Fargo Bank is represented by: Cassandra L. Writz, Esq. Laurence M. Frazen, Esq. Cassandra L. Writz, Esq. BRYAN CAVE LLP One Kansas City Place 1200 Main Street, Suite 3500 Kansas City, Missouri Telephone: (816) 374-3200 Facsimile: (816) 374-3300 A full-text copy of the Stipulation For Secured Borrowing and Adequate Protection is available at no charge at http://ResearchArchives.com/t/s?6a50 Under the terms of the Debtors' Existing Credit Facility with Wells Fargo, pursuant to which the Debtors have outstanding obligations in the approximate amount of $5.9 million as of August 23, 2010, an event of default occurred on August 20, 2010 due to the filing of the Bankruptcy Case. As a result, the Existing Credit Facility provides that the Lender may terminate its commitment to make additional advances to, and issue letters of credit for the account of, the Debtors thereunder and that the obligations owing to the Lender thereunder are automatically due and payable. The ability of the Lender to seek remedies to enforce its rights under the Existing Credit Facility is automatically stayed as a result of the filing of the Bankruptcy Case, and the Lender's rights of enforcement are subject to applicable provisions of the Bankruptcy Code. About Professional Veterinary Professional Veterinary Products Ltd. -- http://.pvpl.com/-- operates a veterinary supply company owned and managed by veterinarians. Includes company information, products, and an online tour. Professional Veterinary sought Chapter 11 protection from creditors on August 20 in Omaha, Nebraska (Bankr. D. Neb. Case No. 10-82436). Affiliates ProConn and Exact Logistics also filed for Chapter 11. The Company reported $89.79 million in total assets, $78.23 million in total liabilities, and $11.56 million in stockholders' equity at June 30, 2010. The Company has hired McGrath North Mullin & Kratz PC LLO, as bankruptcy counsel and Alliance Management as financial and restructuring advisors. PROTOSTAR LTD: Court to OK Disclosure Statement ----------------------------------------------- Judge Mary Walrath of the U.S. Bankruptcy Court for the District of Delaware said she will approve the disclosure statement explaining the Chapter 11 plan of ProtoStar Ltd., subject to a clarificatory language regarding the treatment and consolidation of creditor classes, Bankruptcy Law360 reports. According to Law360, Judge Walrath saw merit in Kiskadee Communications' objections to a "global settlement" that ProtoStar reached with major parties. The Chapter 11 plan reserves $10.65 million for unsecured creditors who were initially thought to be out of the money. About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petitions, the Debtors each estimated assets and debts of $100 million and US$500 million. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of $463,000,000 against debts of $528,000,000. QWEST COMMS: Moves to Redeem All Outstanding Convertible Notes -------------------------------------------------------------- Qwest Communications International Inc. on August 20 responded to queries received from holders of the Company's outstanding 3.50% convertible senior notes due 2025. The Company said, "Pursuant to the Agreement and Plan of Merger between the Company and CenturyLink, Inc., a Louisiana corporation, and SB44 Acquisition Company, a Delaware corporation and wholly owned subsidiary of CenturyLink, the Company has agreed to take all necessary action to exercise its right under the indenture governing the terms of the Convertible Notes to redeem all of the outstanding Convertible Notes at a redemption price in cash equal to 100% of the principal amount thereof, together with accrued and unpaid interest, on November 20, 2010. "Upon the issuance by the Company of a notice of such redemption, holders of Convertible Notes will be entitled to surrender for conversion any Convertible Notes called for redemption at any time until the close of business on the business day immediately preceding the redemption date specified in such redemption notice. Settlement of any such conversions of Convertible Notes will take place following the end of an 'Applicable Conversion Reference Period,' as defined in the indenture governing the terms of the Convertible Notes. "On each date during this Applicable Conversion Reference Period, the amounts due to holders on settlement of their conversion will be calculated pursuant to the formula set forth in the indenture governing the terms of the Convertible Notes. In the event that the Company announces a dividend on its common stock with a record date falling during the Applicable Conversion Reference Period, the Company will make a corresponding adjustment to the Conversion Rate applicable to the Convertible Notes. Such adjustment will take effect on the record date with respect to such dividend and will be applied to the conversion settlement calculations described above for each date during the Applicable Conversion Reference Period that is after the record date with respect to such dividend. As described more fully in the indenture governing the Convertible Notes, holders who surrender Convertible Notes for conversion will not generally be entitled to receive any accrued and unpaid interest on such Convertible Notes." 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. Qwest carries a 'Ba1' corporate family and probability of default ratings from Moody's and has 'BB' issuer credit ratings from Standard & Poor's. "Our high debt levels pose risks to our viability and may make us more vulnerable to adverse economic and competitive conditions, as well as other adverse developments," the Company said in its Form 10-K for the year ended Dec. 31, 2009. At Dec. 31, the Company's consolidated debt was approximately $14.2 billion. Approximately $5.8 billion of its debt obligations come due over the next three years. This amount includes $1.265 billion of our 3.50% Convertible Senior Notes due 2025, which it may elect to redeem at any time on or after November 20, 2010 and holders may require the Company to repurchase for cash on November 15, 2010. The Company's balance sheet at June 30, 2010, showed $18.95 billion in total assets, $20.20 billion in total liabilities, and a stockholders' deficit of $1.24 billion. RADIO ONE: 2009 Stockholders' Equity Overstated by $46.2 Million ---------------------------------------------------------------- Radio One, Inc., filed on August 23, 2010, an amendment to its annual report on Form 10-K for the year ended December 31, 2009, to correct an error in the measurement and classification of a noncontrolling interest in Reach Media, Inc., that resulted in overstated consolidated stockholders' equity and understated mezzanine equity by equal amounts. The adjustments decreased total stockholders' equity by approximately $46.2 million through December 31, 2009. The restatements do not result in a change to the Company's previously reported financial results in the consolidated statements of operations or consolidated statements of cash flows for the Company, and, hence, will not affect previously reported net income or earnings per share. Ernst & Young LLP, in Baltimore, Maryland, expressed substantial doubt about the Company's ability to continue as a going concern in its report on the Company's restated consolidated financial statements for 2009. The independent auditors noted that in June and July 2010 the Company violated certain covenants of its loan agreements, which ultimately may result in significant amounts of outstanding debt becoming callable by lenders. The Company reported a net loss of $48.6 million on $272.1 million of revenue for 2009, compared to a net loss of $298.9 million on $313.4 million of revenue for 2008. As restated, the Company's balance sheet at December 31, 2009, showed $1.036 billion in total assets, $787.5 million in total liabilities, $52.2 million in redeemable noncontrolling interests, and stockholders' equity of $195.8 million. A full-text copy of the Form 10-K/A is available for free at: http://researcharchives.com/t/s?6a20 About Radio One Lanham, Maryland-based Radio One, Inc. (Nasdaq: ROIAK and ROIA) -- http://www.radio-one.com/-- is a diversified media company that primarily targets African-American and urban consumers. The Company is one of the nation's largest radio broadcasting companies, currently owning 53 broadcast stations located in 16 urban markets in the United States. The Company owns a controlling interest in Reach Media, Inc. -- http://www.blackamericaweb.com/-- owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner. Beyond its core radio broadcasting business, Radio One owns Interactive One -- http://www.interactiveone.com/-- an online platform serving the African-American community through social content, news, information, and entertainment, which operates a number of branded sites, including News One, UrbanDaily, HelloBeautiful, Community Connect Inc. -- http://www.communityconnect.com/-- an online social networking company, which operates a number of branded Web sites, including BlackPlanet, MiGente, and Asian Avenue and an interest in TV One, LLC -- http://www.tvoneonline.com/-- a cable/satellite network programming primarily to African- Americans. RADIO ONE: Files Amended Financial Statements for March 31 Quarter ------------------------------------------------------------------ Radio One, Inc., filed on August 23, 2010, an amendment to its quarterly report on Form 10-Q for the quarterly period ended March 31, 2010, to correct an error in the measurement and classification of a noncontrolling interest in Reach Media, Inc., that resulted in overstated consolidated stockholders' equity and understated mezzanine equity by equal amounts. The adjustments decreased total stockholders' equity by approximately $37.5 million and $46.2 million as of March 31, 2010, and December 31, 2009, respectively. The restatements do not result in a change to the Company's previously reported financial results in the consolidated statements of operations or consolidated statements of cash flows for the Company, and, hence, will not affect previously reported net income or earnings per share. The Company reported a net loss of $4.6 million on $59.0 million of revenue for the first three months of 2010, compared to a net loss of $58.6 million on $60.3 million of revenue for the same period in 2009. As restated, the Company's balance sheet at March 31, 2010, showed $1.025 billion in total assets, $779.4 million in total liabilities, $43.5 million in redeemable noncontrolling interests, and stockholders' equity of $202.1 million. A full-text copy of the Form 10-Q/A for the first quarter of 2010 is available for free at: http://researcharchives.com/t/s?6a21 The Company also filed amended quarterly reports for each quarterly financial reporting period from January 1, 2009, through September 30, 2009. A full-text copy of the Form 10-Q/A for the first quarter of 2009 is available for free at: http://researcharchives.com/t/s?6a22 A full-text copy of the Form 10-Q/A for the second quarter of 2009 is available for free at: http://researcharchives.com/t/s?6a23 A full-text copy of the Form 10-Q/A for the third quarter of 2009 is available for free at: http://researcharchives.com/t/s?6a24 About Radio One Lanham, Maryland-based Radio One, Inc. (Nasdaq: ROIAK and ROIA) -- http://www.radio-one.com/-- is a diversified media company that primarily targets African-American and urban consumers. The Company is one of the nation's largest radio broadcasting companies, currently owning 53 broadcast stations located in 16 urban markets in the United States. The Company owns a controlling interest in Reach Media, Inc. -- http://www.blackamericaweb.com/-- owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner. Beyond its core radio broadcasting business, Radio One owns Interactive One -- http://www.interactiveone.com/-- an online platform serving the African-American community through social content, news, information, and entertainment, which operates a number of branded sites, including News One, UrbanDaily, HelloBeautiful, Community Connect Inc. -- http://www.communityconnect.com/-- an online social networking company, which operates a number of branded Web sites, including BlackPlanet, MiGente, and Asian Avenue and an interest in TV One, LLC -- http://www.tvoneonline.com/-- a cable/satellite network programming primarily to African- Americans. Ernst & Young LLP, in Baltimore, Maryland, expressed substantial doubt about the Company's ability to continue as a going concern in its report on the Company's restated consolidated financial statements for 2009. The independent auditors noted that in June and July 2010 the Company violated certain covenants of its loan agreements, which ultimately may result in significant amounts of outstanding debt becoming callable by lenders. REALOGY CORP: Bank Debt Trades at 13% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which Realogy Corporation is a borrower traded in the secondary market at 86.73 cents-on-the-dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.35 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on September 30, 2013, and carries Moody's Caa1 rating and Standard & Poor's CCC- rating. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Realogy Corp. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have approximately 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. The Company's balance sheet at June 30, 2010, showed $8.18 billion in total assets, $9.13 billion in total liabilities, and a stockholders' deficit of $951.00 million. Realogy carries a 'CC' corporate credit rating with a "developing" outlook from Standard & Poor's Ratings Services. S&P noted that leverage was high, at 15x at March 2010, although this was an improvement compared to 20x one year ago. It has 'Caa3' corporate family and probability of default ratings, with negative outlook, from Moody's Investors Service. REFLECT SCIENTIFIC: Reports $132,015 Net Loss for Q2 ---------------------------------------------------- Reflect Scientific, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $132,015 on $529,102 of total revenues for the three months ended June 30, 2010, from a $1.44 million net loss on $1.05 million of total revenue in the same period last year. The Company's balance sheet at June 30, 2010, showed $4.62 million in total assets, $3.85 million of total liabilities, and $774,093 in stockholders' equity. Mantyla McReynolds, LLC, in Salt Lake City, Utah, in its March 31, report, expressed substantial doubt about the Company's ability to continue as a going concern. The Company has experienced recurring losses from operations and negative operating cash flows from operations. The Company is in default on its debentures. According to the Form 10-Q, while the Company is working diligently to secure funding to enable it to retire the debenture obligations, there can be no assurance that such funding will be available. A full-text copy of the quarterly report on Form 10-Q is available for free at: http://ResearchArchives.com/t/s?6a15 Reflect Scientific, Inc. (OTC:RSCF) designs, develops and sells scientific equipment for the life science and manufacturing industries. The Company's business activities include the manufacture and distribution of laboratory consumables and disposables, such as filtration and purification products, customized sample handling vials, electronic wiring assemblies, high-temperature silicone, graphite and vespel/graphite sealing components for use by original equipment manufacturers (OEM) in the chemical analysis industries, primarily in the field of gas/liquid chromatography. Its products range from non-mechanical Cyrometrix freezers, products and parts for life science industry to tools and analytical services for industrial manufacturing. The Company's chemical detector products serve the analytical instrumentation sector of the life sciences market. Image Labs and Miralogix, which manufactured and sold inspection and testing equipment, were divested effective March 2, 2010. RICHARD HINDIN: Plan Outline Hearing Continued Until September 7 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Virginia has continued until September 7, 2010, at 11:00 a.m., the adequacy of the Disclosure Statement explaining Richard J. Hindin's Plan of Reorganization. As reported in the Troubled Company Reporter on June 14, the Plan proposes the liquidation of the Debtor's two Virginia properties and the distribution of the net proceeds from the sale of those properties. In addition to this, the Plan proposes a series of bi-annual payments to creditors over the course of five calendar years equal to the approximate fair market value of the Debtor's remaining non-exempt -- and chiefly, illiquid -- assets, totaling $700,000, plus annual interest of 3%. The Plan payments will be generated from the Debtor's post- confirmation employment with Chicken Out Rotisserie, Inc., from salary or other shareholder distributions expected to be received from the Debtor's remaining closely-held investments and from cost savings associated with no longer having to service the debt encumbering 407 Chain Bridge Road. All holders of allowed unsecured claims will receive pro rata payments to be paid from the proceeds of the sale of the Plan Property and from the Debtor Payments, in full satisfaction of the claims. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/RichardHindin_DS.pdf About Richard J. Hindin McLean, Virginia-based Richard J. Hindin filed for Chapter 11 on November 27, 2009 (Bankr. E.D. Va. Case No. 09-19741.) Stephen W. Nichols, Esq. at Cooter, Mangold, Deckelbaum & Karas, LLP represents the Debtor in his restructuring effort. In his petition, the Debtor estimated assets and debts at $10 million to $50 million. RIDGE RESTAURANT: Case Summary & 12 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Ridge Restaurant Lounge Inc. dba Nickobees 10301 Southwest Highway Chicago Ridge, IL 60415 Bankruptcy Case No.: 10-37641 Chapter 11 Petition Date: August 23, 2010 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: A. Benjamin Goldgar Debtor's Counsel: Chad M. Hayward, Esq. 343 W. Erie, Suite 510 Chicago, IL 60610 Tel: (312) 867-3640 Fax: (312) 276-4539 E-mail: courtnotice@haywardlawoffices.com Scheduled Assets: $2,630,000 Scheduled Debts: $635,979 A list of the Company's 12 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb10-37641.pdf The petition was signed by George Tsonis, president. RIM DEVELOPMENT: Textron Torpedos Debtor's Chapter 11 Plan ---------------------------------------------------------- WestLaw reports that successive Chapter 11 plans filed by a single-asset Chapter 11 debtor, each of which provided less favorable treatment for a creditor that held mortgages on the debtor's town home development and that had moved for relief from the stay, by reducing the interest payable on the creditor's claim to a rate below either the default or regular contract rate and ultimately requiring the creditor to wait for years before receiving anything but these reduced interest payments, while distributions were made to creditors holding claims of lesser priority and the debtor's principals were allowed to retain their equity interests for seemingly minimal contributions to the debtor's reorganization, did not have a reasonable possibility of being confirmed. This was especially true given that the success of the debtor's final plan depended on the availability of near- term government guaranteed 100 percent financing for the purchase of the debtor's 72 town home and on a thriving market for owner- occupants to purchase properties that were presently occupied by military personnel and college students, two transient populations. Thus, the stay had to be lifted. In re RIM Development, LLC, --- B.R. ----, 2010 WL 3259492 (Bankr. D. Kan.) (Nugent, J.). The Honorable Robert E. Nugent granted Textron Financial Corporation's motion for relief from the automatic stay on Aug. 13, 2010. Accordingly, it would be impossible for the Court to confirm the Debtor's proposed chapter 11 plan described in the Troubled Company Reporter on June 22, 2010, and amended on July 1, 2010. Judge Nugent says that Textron may "proceed with the realization of its contractual rights and claims in any appropriate forum, provided, however, that so long as the debtor remains in bankruptcy before this Court, TFC be required to report to the Court and all other parties concerning any relief it secures in another forum and any surplus it receives upon commencement and completion of any foreclosure or other collection proceeding." Roca, Nebraska-based RIM Development, LLC, sought Chapter 11 protection (Bankr. D. Kan. Case No. 10-10132) on Jan. 22, 2010. Susan G. Saidian, Esq., who has an office in Wichita, Kan., represents the company. The Debtor disclosed $20.2 million in assets and $11.6 million in liabilities in its Amended Schedules of Assets and Liabilities delivered to the Bankruptcy Court in March 2010. RITE AID: Subpoenaed Over Connecticut Drug Pricing -------------------------------------------------- Bloomberg News reports that Rite Aid Corp. was subpoenaed by the Connecticut attorney general, who is seeking information about drug price increases that he said the company falsely blamed on a new state law. Connecticut law requires pharmacies to provide Medicaid and other government programs the same prescription-drug discounts they do other consumers, Attorney General Richard Blumenthal said in a statement. According to the report, Mr. Blumenthal said Rite Aid increased the cost of a 30-day supply of selected generic drugs by $2 in its Rx Savings program and eliminated a $15.99 90-day-supply option for some generic drugs. The chain also scrapped discounts for oral contraceptives, brand medications and medical supplies including diabetic strips, he said. About Rite Aid Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation (NYSE: RAD) -- http://www.riteaid.com/-- is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. The Company operates more than 4,900 stores in 31 states and the District of Columbia. The Company's balance sheet at May 29, 2010, showed $8.0 billion in total assets, $9.7 billion in total liabilities, and $1.7 billion in stockholders' deficit. * * * Rite Aid carries 'Caa2' probability of default and corporate family ratings from Moody's Investors Service. It has a 'B-' corporate credit rating from Standard & Poor's Ratings Services. ROYAL INVEST: Posts $3.7 Million Net Loss in June 30 Quarter ------------------------------------------------------------ Royal Invest International Corp. filed its quarterly report on Form 10-Q, reporting a net loss of $3.7 million on $2.0 million of revenue for the three months ended June 30, 2010, compared with a net loss of $1.2 million on $2.9 million of revenue for the same period of 2009. The Company's balance sheet as of June 30, 2010, showed $81.3 million in total assets, $133.6 million in total liabilities, and a stockholders' deficit of $52.3 million. As reported in the Troubled Company Reporter on April 21, 2010, Meyler & Company, LLC, in Middletown, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a net loss of $44.0 million for the year ended December 31, 2009, an accumulated deficit of $65.1 million at December 31, 2009, is in default of one of the mortgages payable and related debt covenants at December 31, 2009, and there are existing uncertain conditions which the Company faces relative to its obtaining financing and capital in the equity markets. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a40 About Royal Invest Westport, Conn.-based Royal Invest International Corp. (OTC BB: RIIC) -- http://www.royalinvestinternational.com/-- owns, operates and manages real estate in Europe. At June 30, 2010, and December 31, 2009, the Company owned 18 properties. The properties aggregate approximately 88,077 square meters (approximately 948,053 square feet), which are comprised of office buildings and business centers. The properties are located in Germany and the Netherlands. SAINT VINCENTS: To Sell Suburban Psychiatric Services ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that St. Vincent Catholic Medical Centers has a deal to sell its inpatient and outpatient behavioral health services operations in Westchester County, New York, to St. Joseph's Medical Center. The price is $18 million cash and the assumption of $5 million in debt. About SVCMC Saint Vincents Catholic Medical Centers -- http://www.svcmc.org/ -- was anchored by St. Vincent's Hospital Manhattan, an academic medical center located in Greenwich Village and the only emergency room on the Westside of Manhattan from Midtown to Tribeca, St. Vincent's Westchester, a behavioral health hospital in Westchester County, and continuing care services that include two skilled nursing facilities in Brooklyn, another on Staten Island, a hospice, and a home health agency serving the Metropolitan New York area. Saint Vincent Catholic Medical Centers of New York and six of its affiliates first filed for Chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951). St. Vincents Catholic Medical Centers returned to bankruptcy court by filing another Chapter 11 petition April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed assets of $348 million against debts totaling $1.09 billion. Although the hospitals emerged from the prior reorganization in July 2007 with a Chapter 11 plan said to have "a realistic chance" of paying all creditors in full, the bankruptcy left the medical center with more than $1 billion in debt. The new filing occurred after a $64 million operating loss in 2009 and the last potential buyer terminated discussions for taking over the flagship hospital. Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer Levin Naftalis & Frankel LLP, represent the Debtor in its Chapter 11 effort. SEARCHMEDIA HOLDINGS: NYSE AMEX Accepts Revised Plan of Compliance ------------------------------------------------------------------ SearchMedia Holdings Limited disclosed that the NYSE AMEX LLC has accepted the Company's revised plan of compliance. In accepting the Company's revised plan, the Exchange granted the Company an extension until October 15, 2010 to file its Annual Report on Form 10-K for the year ended December 31, 2009 and until November 15, 2010 to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2010. About SearchMedia SearchMedia is a leading nationwide multi-platform media company and one of the largest operators of integrated outdoor billboard and in-elevator advertising networks in China. SearchMedia currently operates a network of over 1,500 high-impact billboards with over 500,000 square feet of surface display area and one of China's largest networks of in-elevator advertisement panels consisting of approximately 125,000 frames in 50 cities throughout China. Additionally, SearchMedia operates a network of large- format light boxes in concourses of eleven major subway lines in Shanghai. SearchMedia's core outdoor billboard and in-elevator platforms are complemented by its subway advertising platform, which together enable it to provide a multi-platform, "one-stop shop" services for its local, national and international advertising clients. SENSATA TECHNOLOGIES: Moody's Upgrades Corp. Family Rating to 'B2' ------------------------------------------------------------------ Moody's Investors Service has upgraded Sensata Technologies B.V.'s Corporate Family and Probability of Default ratings to B2 from B3. In a related action, the company's senior secured credit facility was affirmed B1, senior unsecured notes affirmed Caa1, and senior subordinated notes upgraded to Caa1 from Caa2. Moody's also upgraded the company's Speculative Grade Liquidity rating to SGL-2 from SGL-3. The rating outlook is positive. These ratings/assessments have been upgraded: -- Corporate family rating to B2 from B3; -- Probability of default rating to B2 from B3; -- EUR177.1 million (originally ?245 million) 9% senior subordinated notes due 2016 to Caa1 (LGD6, 93%) from Caa2 (LGD6, 91%); -- Speculative grade liquidity rating to SGL-2 from SGL-3. These ratings/assessments have been affirmed: -- Senior secured credit facility, B1 (LGD3, 37%); -- $201 million (originally $450 million) 8% senior unsecured notes due 2014, Caa1 (LGD5, 85%). Ratings Rationale The upgrade of the company's CFR to B2 reflects the recent strong year over year and sequential improvement in Sensata's operating and financial performance. Additionally, as a result of the company's IPO in March 2010, Sensata has reduced debt by over $300 million. The positive rating outlook reflects the anticipation for continued improvement in Sensata's credit metrics as the company benefits from increased demand from its end markets as well as a leaner cost structure. The upgrade to Sensata's SGL rating to SGL-2 from SGL-3 incorporates the company's positive free cash flow generation, full revolver availability, as well as increased covenant cushion as a result of the company's debt reduction in association with the IPO. Moody's believes that the company will maintain a good liquidity profile over the next twelve months. The rating could be upgraded if year over year and sequential operating results continue to improve, and the company continues to reduce debt. The outlook could stabilize if the company's leverage was no longer deemed to be improving. Moody's last rating action on Sensata was February 22, 2010, when the company's Corporate Family Rating and Probability of Default Rating were upgraded to B3 from Caa1. For more information see Moodys.com. Sensata Technologies B.V., incorporated under the laws of The Netherlands and with U.S. headquarters in Attleboro, Massachusetts, is a global designer, manufacturer, and marketer of customized and highly-engineered sensors and control products. Revenues for the LTM period ended 6/30/10 totaled approximately $1.4 billion. SINGLE TOUCH: June 30 Balance Sheet Upside-Down by $10-Mil. ----------------------------------------------------------- Single Touch Systems, Inc., reported that as of June 30, 2010, it had $7,009,622 in total assets, $17,074,072 in total liabilities, and $10,064,450 in stockholders' deficit. The Company reported a net loss of $14,872,535 for the three months ended June 30, 2010, from a net loss of $3,713,273 for the same period in 2009. It reported a net loss of $16,943,810 for the nine months ended June 30, 2010, from a net loss of $7,584,799 for the same period in 2009. Total revenue from wireless applications was $131,451 for the three months ended June 30, 2010, from $133,866 for the same period in 2009. Total revenue was $265,546 for the nine months ended June 30, 2010, from $775,760 for the same period in 2009. A full-text copy of the Company's Form 10-Q report is available at no charge at http://ResearchArchives.com/t/s?6a2d Based in Encinitas, California, Single Touch Systems Inc., initially developed software applications utilized by end users in downloading images, ringtones, games, and other content into their cell phones and other wireless communication devices. The Company has transitioned to a transaction based revenue model facilitating mobile commerce and advertising using software based services. The Company generates revenue from each voice call, data transmission, advertisement and mobile payment transaction its services enable. SK HAND TOOL: Seeks Approval of $3.5 Mil. Assets Sale With Ideal ---------------------------------------------------------------- Lorene Yue at Chicago Business reports that SK Hand Tool Assets is seeking approval to sell certain assets to Ideal Industries Inc. for $3.5 million. Ideal Industries stated it will decide with 30 days whether to make SK Hand products after the closing of the sale. A full-text copy of the Assets Purchase Agreement is available for free at http://bankrupt.com/misc/SK_HAND_apa.pdf SK Hand Tool Corporation was founded in Chicago in 1921 as a manufacturer of hand tools and power tools, which it distributes through independent dealers. It has manufacturing facilities in Chicago and Defiance, Ohio, although Defiance is currently not operating. SK Hand filed for Chapter 11 protection on June 29, 2010 (Bankr. N.D. Ill. Case No. 10-28882). Colleen E. McManus, Esq., and Kurt M. Carlson, Esq., at Much Shelist, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10 million to $50 million. SNOQUALMIE ENTERTAINMENT: Moody's Keeps 'Caa3' Corp. Family Rating ------------------------------------------------------------------ Moody's Investors Service changed Snoqualmie Entertainment Authority's rating outlook to stable from negative following the recent improvement in its operating performance. The Authority's ratings, including its Caa3 Corporate Family Rating, remain unchanged. The revision of rating outlook to stable incorporates Snoqualmie Casino's improved operating trend in the first six months of 2010 and Moody's expectation that the operating performance would likely continue to stabilize in the near term. Moody's believes that the improvement in the Authority's operating performance in the first half could be attributed to its more focused and effective marketing program, aided by the moderated unemployment rate in the Seattle metro area as well as a less inclement weather condition in the first quarter of this year as compared to the prior year. Despite the aforesaid positive trends, the run-rate revenue and EBITDA remained well below Authority's original plan. Further, the Caa3 CFR continues to reflect the uncertainty surrounding the Authority's capital structure, given the high leverage and risk of potential covenant violations. Particularly, Snoqualmie may face a possible covenant violation when the financial covenants under the FF&E (Furniture, Furnishing & Equipment) loan credit agreement are reset to their original levels in the fourth quarter 2010, should a further amendment/waiver not be obtained on time. The rating upside is limited at this time until Snoqualmie has addressed Moody's concern on its capital structure. Rating announcement is: Outlook revised to stable from negative These ratings were unchanged: -- Corporate Family Rating at Caa3 -- Probability of Default Rating at Caa3 -- $130 million floating rate senior notes due 2014 at Caa3 (LGD3, 46%) -- $200 million 9.125% senior notes due 2015 at Caa3 (LGD3, 46%) The last rating action was on December 21, 2009, when Moody's downgraded Snoqualmie's all ratings to Caa3 from Caa1. Snoqualmie is an unincorporated instrumentality of the Snoqualmie Indian Tribe, formed in September 2006 to develop and operate all gaming and related businesses of the Tribe, including Snoqualmie Casino. Snoqualmie Casino is located 26 miles east of downtown Seattle, Washington. SONOMA VALLEY: Reports $2.23MM Net Income for Second Quarter ------------------------------------------------------------ Sonoma Valley Bancorp filed its quarterly report on Form 10-Q, reporting net income of $2.23 million for the three months ended June 30, 2010, from a $1.48 million net loss in the same period last year. The Company's balance sheet at June 30, 2010, showed $337.18 million in total assets, $318.95 million of total liabilities, and $18.23 million in stockholders' equity. A full-text copy of the quarterly report on Form 10-Q is available for free at http://ResearchArchives.com/t/s?6a17 About Sonoma Valley Bancorp. Sonoma Valley Bancorp (OTC:SBNK) is a holding company. The Company operated through its wholly owned subsidiary, Sonoma Valley Bank. Sonoma Valley Bank of Sonoma, Calif., was closed August 20, 2010, by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Westamerica Bank of San Rafael, Calif., to assume all of the deposits of Sonoma Valley Bank. SOUTH BAY: Asks for Access to Cash Collateral Until Jan. 31 ----------------------------------------------------------- South Bay Expressway, L.P., and California Transportation Ventures, Inc., ask the United States Bankruptcy Court for the Southern District of California to: (a) extend the final order authorizing the use of cash collateral to and including January 31, 2011; and (b) approve a new budget covering the period commencing on and after October 1, 2010, and continuing through January 31, 2011. On April 26, 2010, the Court entered the Final Order, which provides for, among other things, the Debtors' use of Cash Collateral until September 30, 2010. However, the Debtors may extend the use of Cash Collateral beyond September 30, 2010, with the consent of the Secured Financing Parties, which comprise of Banco Bilbao Vizcaya Argentaria, S.A., DEPFA Bank plc, Wells Fargo Bank, N.A., and the United States Department of Transportation, acting by and through the Federal Highway Administrator. R. Alexander Pilmer, Esq., at Kirkland & Ellis LLP, in Los Angeles, California, tells Judge Adler that the Secured Financing Parties have consented to an extension of the Debtors' use of Cash Collateral through and including January 31, 2011. Nevertheless, he notes, approval of the New Budget requires either consent from the Official Committee of Unsecured Creditors or Court approval. He discloses that the Debtors are engaged in discussions with the Creditors Committee to obtain approval of the New Budget. In exchange for the continued use of Cash Collateral, the Debtors will continue to abide by the terms of the Final Order, including making monthly adequate protection payments, Mr. Pilmer asserts. The Debtors believe that the Adequate Protection Payments remain appropriate, and hence, their continued use of Cash Collateral under the terms of the Final Order is fair and reasonable and sufficient to satisfy the requirements of Sections 363(c)(2) and 363(e) of the Bankruptcy Code. The Debtors continue to progress towards successfully exiting Chapter 11 by, among other things, engaging with creditors and key constituencies on forming a plan of reorganization, Mr. Pilmer relates. He points out that without the continued use of the Cash Collateral, the Debtors will have no ability to operate their business, thereby causing immediate and irreparable harm to the bankruptcy estates. The Debtors' ability to finance their operations and the availability to the Debtors of sufficient working capital and liquidity through the continued use of Cash Collateral is vital to the preservation and maintenance of the going-concern value and other values of the estates, Mr. Pilmer further contends. He adds that the New Budget is appropriate because it strikes a balance between preserving and maximizing the value of the Debtors' assets and ensuring the Debtors' continued access to Cash Collateral to operate the business in the ordinary course. In his declaration in support of the request, Anthony G. Evans says that authorizing the Debtors to continue to use Cash Collateral pursuant to the New Budget is essential to maintaining their ongoing business operations and preserving the value of their assets. Mr. Evans is the Debtors' chief financial officer. A copy of the New Budget is available for free at: http://bankrupt.com/misc/SBX_New_Budget_08232010.pdf The Court will convene a hearing on September 23, 2010, to consider the request. About South Bay Expressway South Bay Expressway, L.P., dba San Diego Expressway, L.P., filed for Chapter 11 on March 22, 2010 (Bankr. S.D. Calif. Case No. 10-04516). Its affiliate, California Transportation Ventures Inc., also filed for bankruptcy. The Debtors developed and operate a four lane, nine mile express toll road in Southern California commonly referred to as the South Bay Expressway or State Road 125. Both estimated assets and debts of $500 million to $1 billion in their bankruptcy petitions. Robert Pilmer, Esq., at Kirkland & Ellis LLP, represents the Debtors in their restructuring effort. PricewaterhouseCoopers LLP is auditor and tax advisor. Imperial Capital LLC is financial advisor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The Debtors say that as of the bankruptcy filing, they have roughly $640 million in book value of total assets and roughly $570 million in book value of total liabilities. Bankruptcy Creditors' Service, Inc., publishes South Bay Expressway Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by South Bay Expressway LP and California Transportation Ventures Inc. (http://bankrupt.com/newsstand/or 215/945-7000). SOUTH BAY: Proposes Incentive Program for 4 Key Employees --------------------------------------------------------- South Bay Expressway, L.P., and California Transportation Ventures, Inc., seek the U.S. Bankruptcy Court's authority, but not direction, to implement a proposed key employee incentive program for four members of the Debtors' senior management, two of whom are "insiders" as defined under Section 101(31) of the Bankruptcy Code and two of whom the Debtors believe are not insiders as defined under Section 101(31). The Incentive Program contemplates performance incentive payments to: (1) Greg Hulsizer, chief executive officer; (2) Anthony Evans, chief financial officer; (3) Theresa Weeks, chief accounting officer; and (4) Shane Savgur, chief technology officer. Under no circumstances will the total incentive payments due to any of the Key Employees in a calendar year exceed 100% of his or her base salary, R. Alexander Pilmer, Esq., at Kirkland & Ellis LLP, in Los Angeles, California, tells the Court. Performance incentive payments will be based on performance of the Debtors, as measured by (i) the 2010 operating budget approved by the Debtors' board of directors and senior secured lenders, (ii) the project completion budget approved by the Board and the Secured Financing Parties, and (iii) the timing of the Debtors' emergence from Chapter 11 protection. The calculations of the bonuses under the Incentive Program based on the three Performance Metrics are: I. Performance Metric No. 1: Operating Cash Flows Relevant parties: Greg Hulsizer, Anthony Evans, Theresa Weeks, and Shane Savgur This provides opportunities for cash awards to each of the Key Employees based upon a comparison of the Debtors' earnings or "Actual EBITDA" and the budgeted EBITDA shown in the Budget. If Actual EBITDA and Budgeted EBITDA are the same, each Key Employee will receive a cash award at the "target" rate, calculated as a percentage of annual base salary: Target Bonus as Target Bonus as Key Employee % of Base Salary as Cash Amount ------------ ---------------- -------------- Greg Hulsizer 50% $137,500 Anthony Evans 50% 120,000 Theresa Weekes 40% 55,600 Shane Savgur 40% 55,600 --------- Target Bonus Pool $368,700 Each Key Employee's maximum bonus under Performance Metric No. 1 will be equal to 150% of his or her Target Bonus. If actual EBITDA is less than 90% of Budgeted EBITDA, no incentive payments will be made. Maximum Key Employee Cash Award ------------ ---------- Greg Hulsizer $206,250 Anthony Evans 180,000 Theresa Weekes 83,400 Shane Savgur 83,400 ---------- Total $553,050 II. Performance Metric No. 2: Project Completion Cost Relevant parties: Greg Hulsizer and Anthony Evans This provides for annual cash awards to the Debtors' CEO and CFO if outstanding capital expenditures and completion obligations under the Project Completion Budget are completed in a timely and cost-effective manner, meaning below budgeted cost. The pool for cash awards under this metric will equal 15% of the net cost savings. The Cost Savings will be the cumulative net total of the permanent cost savings and permanent cost increases calculated by looking at the work completed on each individual project. Expenditures deferred beyond 2010 will not constitute permanent savings and will not be included in the bonus calculation. The Cost Savings will be determined by the Board, subject to concurrence by the Secured Financing Parties' technical advisor, which will not be unreasonably withheld or delayed. The allocation of the bonus pool is: Project Completion Cost Savings Payout Allocation ------------------------------- Greg Hulsizer | 50% Anthony Evans | 50% If project completion costs exceed the Project Completion Budget, neither the CEO nor the CFO will receive a cash award on the basis of this metric. III. Performance Metric No. 3: Emergence Relevant parties: Greg Hulsizer and Anthony Evans This provides that the Debtors' CEO and CFO will be eligible for cash awards based on how quickly the Debtors emerge from Chapter 11 protection after the entry of an order by the Court determining the lien priority between the Secured Financing Parties and the mechanics lien claimants. Cash awards will be calculated as a percentage of base salary: Emergence after Resolution of Cash Award Priority Dispute as % of Base Salary ---------------- ------------------- Within 90 days 50% Within 135 days 25% Within 180 days 10% Maximum Total Awards: $257,500 The CEO and CFO will receive cash bonuses under the third metric only if the Debtors are able to formulate a plan of reorganization, solicit votes sufficient for confirmation, and substantially consummate the plan within six months of the Court entering an order determining the lien priority dispute. Accordingly, the third metric is not merely a reward for continued employment with the Debtors through emergence from Chapter 11. R. Alexander Pilmer, Esq., at Kirkland & Ellis LLP, in Los Angeles, California, contends that the Incentive Program, which will cost the Debtors' bankruptcy estates a maximum of $681,800, provides for the payment of performance-based cash bonuses that are commensurate with market practice; is cost-effective; and has been carefully tailored to ensure that the Key Employees remain focused on financial, operational and restructuring goals that will directly benefit the estates and their creditors. Beginning well before the Petition Date, the Debtors have relied and continue to rely on the Key Employees to discharge significant responsibilities related to the cases in addition to their regular duties, Mr. Pilmer tells Judge Louise DeCarl Adler. At the same time, he asserts, the Key Employees have seen their compensation suffer as a result of the cases and face uncertainty regarding employment upon the Debtors' emergence from Chapter 11. In the past and immediately prior to the Petition Date, the Debtors provided the Key Employees with opportunities to earn cash bonuses upon achieving budgeted financial goals, which have motivated the Key Employees to perform at a superlative level and increase the value of the Debtors' business, Mr. Pilmer says. He adds, among other things, that the Incentive Program aligns the interests of the Key Employees with the interests of the Debtors and the Debtors' stakeholders by rewarding the Key Employees' accomplishment of financial and bankruptcy-related milestones that directly increase the value of the estates. Judge Adler will convene a hearing on September 23, 2010, to consider the request. About South Bay Expressway South Bay Expressway, L.P., dba San Diego Expressway, L.P., filed for Chapter 11 on March 22, 2010 (Bankr. S.D. Calif. Case No. 10-04516). Its affiliate, California Transportation Ventures Inc., also filed for bankruptcy. The Debtors developed and operate a four lane, nine mile express toll road in Southern California commonly referred to as the South Bay Expressway or State Road 125. Both estimated assets and debts of $500 million to $1 billion in their bankruptcy petitions. Robert Pilmer, Esq., at Kirkland & Ellis LLP, represents the Debtors in their restructuring effort. PricewaterhouseCoopers LLP is auditor and tax advisor. Imperial Capital LLC is financial advisor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The Debtors say that as of the bankruptcy filing, they have roughly $640 million in book value of total assets and roughly $570 million in book value of total liabilities. Bankruptcy Creditors' Service, Inc., publishes South Bay Expressway Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by South Bay Expressway LP and California Transportation Ventures Inc. (http://bankrupt.com/newsstand/or 215/945-7000). SOUTH BAY: Wants Feb. 15 Extension for Removal Period ----------------------------------------------------- South Bay Expressway, L.P., and California Transportation Ventures, Inc., ask the U.S. Bankruptcy Court to extend to February 15, 2011, their deadline for filing notices of removal of civil actions pending as of the Petition Date, without prejudice to their right to seek further extensions. The current Removal Period will expire on October 18, 2010. Anthony G. Evans, the Debtors' chief financial officer, filed a declaration in support of the request. R. Alexander Pilmer, Esq., at Kirkland & Ellis LLP, in Los Angeles, California, relates that the Debtors are involved in a variety of Civil Actions in California, Virginia and New York that stem from the construction and operation of the Expressway. He asserts that for the Debtors, the determination of whether to seek removal of any particular Civil Action will require the analysis of a number of factors, including the importance of the Civil Action to the expeditious resolution of the Chapter 11 cases. Mr. Pilmer contends that at this stage of the cases, the Debtors have not had an opportunity to determine conclusively which Civil Actions they will seek to remove and instead have been focused on activities that are critically important to their reorganization, including, among other things, negotiating the structure for a consensual plan of reorganization and litigating the mechanics lien dispute with Otay River Constructors and InTranS Group, Inc. The outcome of the mechanics lien dispute may negate the need to remove Civil Actions relating to the Contractors to the extent the Court determines that the Contractors have no liens on the Debtors' property or the liens are subordinate to the secured lenders' liens, Mr. Pilmer tells Judge Adler. Importantly, he adds, parties to the Civil Actions will not be unduly prejudiced by the extension requested because those parties will retain their rights under Section 1452 (b) of the Judicial and Judiciary Procedures Code to have the Civil Actions remanded. A hearing will be held on September 23, 2010, to consider the request. About South Bay Expressway South Bay Expressway, L.P., dba San Diego Expressway, L.P., filed for Chapter 11 on March 22, 2010 (Bankr. S.D. Calif. Case No. 10-04516). Its affiliate, California Transportation Ventures Inc., also filed for bankruptcy. The Debtors developed and operate a four lane, nine mile express toll road in Southern California commonly referred to as the South Bay Expressway or State Road 125. Both estimated assets and debts of $500 million to $1 billion in their bankruptcy petitions. Robert Pilmer, Esq., at Kirkland & Ellis LLP, represents the Debtors in their restructuring effort. PricewaterhouseCoopers LLP is auditor and tax advisor. Imperial Capital LLC is financial advisor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The Debtors say that as of the bankruptcy filing, they have roughly $640 million in book value of total assets and roughly $570 million in book value of total liabilities. Bankruptcy Creditors' Service, Inc., publishes South Bay Expressway Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by South Bay Expressway LP and California Transportation Ventures Inc. (http://bankrupt.com/newsstand/or 215/945-7000). SPHERIS INC: Ch. 11 Liquidation Plan Confirmed ----------------------------------------------- Bankruptcy Law360 reports that Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware signed off on the Chapter 11 liquidation plan of defunct medical documentation technology company Spheris Inc. Thursday after the debtors resolved Internal Revenue Service objections. About Spheris Inc. Headquartered in Franklin, Tennessee, Spheris Inc. -- http://www.spheris.com/-- is a global provider of clinical documentation technology and services. Spheris Inc., along with five affiliates, filed for Chapter 11 on Feb. 3, 2010 (Bankr. D. Del. Case No. 10-10352). Attorneys at Young Conaway Stargatt & Taylor, LLP, and Willkie Farr & Gallagher LLP represent the Debtors in their Chapter 11 effort. Jefferies & Company serves as financial advisors to the Debtors. Attorneys at Schulte Roth & Zabel LLP and Landis Rath & Cobb LLP serve as counsel to the prepetition and DIP lenders. Garden City Group Inc. is claims and notice agent. The petition says that assets range from $50 million to $100 million while debts range from $100 million to $500 million. The estate of Spheris Inc. is now formally named SP Wind Down Inc. after it sold the business in April. CBay Inc.'s MedQuist Inc. purchased the domestic business of Spheris for $98.8 million. ST. JAMES MECHANICAL: Creditor's Excusable Neglect Argument Fails ----------------------------------------------------------------- WestLaw reports that a creditor that acknowledged receiving adequate notice of the debtor's Chapter 11 filing and of the claims bar date, and that had been an active participant throughout the debtor's bankruptcy, was not entitled to file an untimely, postconfirmation proof of claim on an "excusable neglect" theory. As a result of the plan confirmation order, the creditor no longer had a prepetition claim for which it could file a proof of claim, but only the contractual rights granted to it under the plan. A bankruptcy judge in New York also rejected the creditor's argument that a Notice of Appointment filed by the Office of the United States Trustee, indicating that the creditor was a member of the official creditors' committee, qualified as an "informal proof of claim." There was nothing in this Notice evidencing an intent on part of the creditor to hold the estate liable. In re St. James Mechanical, Inc., --- B.R. ----, 2010 WL 3212039 (Bankr. E.D.N.Y.) (Grossman, J.!). St. James Mechanical, Inc., located in Brentwood, N.Y., sought chapter 11 protection (Bankr. E.D.N.Y. Case No. 09-70124) on Jan. 9, 2009. Avrum J. Rosen, Esq. -- ajrlaw@aol.com -- and Fred S. Kantrow, Esq. -- fkantrow@avrumrosenlaw.com -- at The Law Offices of Avrum J. Rosen, PLLC, in Huntington, N.Y., represent the Debtor. The Debtor disclosed $1,339,735 in assets and $1,892,608 in liabilities at the time of the filing. The Bankruptcy Court confirmed the Debtor's Second Amended Plan of Reorganization on May 17, 2010, returning about 75 cents-on-the- dollar to unsecured creditors. If ITT Sheraton Corporation, the creditor seeking to file a tardy proof of claim, had been successful, its claim would have diluted other unsecured creditors' recoveries to about 22 cents-on-the-dollar. ITT's claim relates to a $1 million settlement in connection with a worker's injury when the Debtor was installing air conditioning equipment at ITT's New York Sheraton Hotel. The Honorable Robert E. Grossman makes it clear that while ITT Sheraton's excusable neglect argument fails, and it will not be allowed to file a tardy proof of claim against the Debtor, Arrowood Indemnity Company, the Debtor's general liability carrier, is mistaken in its belief that the bankruptcy court's confirmation of the debtor's chapter 11 plan terminated everybody's rights to make a claim against an insurance policy that is the subject of a declaratory action pending before the New York Supreme Court in Suffolk County. STATES INDUSTRIES: Files for Chapter 11 in Portland --------------------------------------------------- States Industries Inc., filed for Chapter 11 on August 24 in Eugene, Oregon (Bankr. D. Ore. Case No. 10-65148). States Industries produces wood paneling in Eugene, Oregon. It owes $15.5 million to secured lender Renwood States Lending LLC. Renwood is offering to provide $1.5 million in financing for the reorganization effort. States Industries listed assets of $20.6 million and debt of $28.5 million. STATMON TECHNOLOGIES: Earns $1.2 Million in June 30 Quarter ----------------------------------------------------------- Statmon Technologies Corp. filed its quarterly report on Form 10-Q, reporting net income of $1.19 million on $1.16 million of revenue for the three months ended June 30, 2010, compared with a net loss of $3.57 million on $530,692 of revenue for the three months ended June 30, 2009. The Company had operating income of $173,228 for the three months ended June 30, 2010, compared to an operating loss of $573,138 for the three months ended June 30, 2009. Other income was $1.02 million for the three months ended June 30, 2010, compared to other expense of $2.99 million for the three months ended June 30, 2009. The Company's balance sheet as of June 30, 2010, showed $1.37 million in total assets, $10.25 million in total liabilities, and a stockholders' deficit of $8.88 million. The Company has incurred net losses of $27.09 million since inception. Additionally, the Company had a net working capital deficiency of $8.96 million at June 30, 2010. As of June 30, 2010, the Company has $2.49 million of Convertible Debentures due before June 30, 2011, of which $1.12 million became due on May 31, 2010, and $648,000 became due on June 30, 2010. Subsequent to June 30, 2010, $562,500 was paid to the holders of the debentures that became due on May 31, 2010. The Company is currently in negotiations to extend the due date or to obtain additional financing to settle the outstanding debentures. The Company also has $1.10 million in unsecured notes payable that are in default and has accrued payroll tax obligations of $2.11 million including penalties and interest. "These conditions raise substantial doubt about the Company's ability to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a1e About Statmon Technologies Bannockburn, Ill.-based Statmon Technologies Corp. Statmon Technologies Corp. is a wireless and fiber infrastructure network management solution provider. STRATUS MEDIA: Posts $1.8 Million Net Loss in June 30 Quarter ------------------------------------------------------------- Stratus Media Group, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.8 million for the three months ended June 30, 2010, compared with a net loss of $709,803 for the same period of 2009. There were no revenues in the current period or the prior period. The Company's balance sheet as of June 30, 2010, showed $6.0 million in total assets, $4.4 million in total liabilities, and stockholders' equity of $1.6 million. As reported in the Troubled Company Reporter on April 21, 2010, Goldman Parks Kurland Mohidin LLP, in Encino, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company has suffered recurring losses and has negative cash flow from operations. In its latest 10-Q, the Company discloses that without additional capital, it may not be able to meet its current obligations. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a25 Based in Los Angeles, Stratus Media Group, Inc. (OTC BB: SMDI) -- http://www.stratusmediagroup.com/-- specializes in sports and entertainment events that it owns, and intends to operate, manage, market and sell in national markets. In addition, Stratus acquired the business of Stratus Rewards, LLC in August 2005. Stratus Rewards is a credit card rewards marketing program that uses the Visa card platform that offers a unique luxury rewards redemption program, including private jet travel, premium travel opportunities, exclusive events and luxury merchandise. TIGRENT INC: Reports $8.2 Million Net Income in June 30 Quarter --------------------------------------------------------------- Tigrent Inc. filed its quarterly report on Form 10-Q, reporting net income of $8.2 million on $36.2 million of revenue for the three months ended June 30, 2010, compared with a net loss of $7.4 million on $29.1 million of revenue for the same period of 2009. The Company's balance sheet as of June 30, 2010, showed $43.8 million in total assets, $80.7 million in total liabilities, and a stockholders' deficit of $36.9 million. The Company said in the Form 10-Q, "We have continued to experience a decline in sales of both Proprietary brands and the RDE brands in the second quarter of 2010. During the first six months of 2010, we reduced our event schedule and focused primarily on events that we believed to have higher potential for profitability. The reduction in events, and the related decline in marketing expenditures, resulted in a decrease in registrants for product and services related to all of the brands we offer of approximately 17.5%. The percentage of customers who attended our workshops and purchased our basic training courses in the first six months of 2010 was approximately 19%, which is flat as a percentage, but generated lower dollars per head as compared with the same period last year. We believe that, while there is still consumer interest in our brand offerings, a combination of deteriorating demand for live seminar events, product fatigue, our price points and the economic environment will continue to have significant impact on our total sales and profitability." Management has evaluated whether we have sufficient liquidity to fund the Company's working capital needs through December 31, 2010. In its analysis, management analyzed projected sales and expenses and considered the scalability of the Company's business expenses relative to the size of its revenues. Significant efforts to control costs through reductions in staff and other cost-cutting measures, as well as potential additional cash flow received upon its continued efforts to sell our non-core assets, were taken into consideration. However, the Company continues to incur a negative cash flow (totaling $5.9 million for the period ending June 30, 2010) due to the on-going challenges with sales of our products. "We have insufficient working capital to meet operating needs, raising substantial doubt about the ability of the Company to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a42 About Tigrent Inc. Cape Coral, Fla.-based Tigrent Inc. (OTC BB: TIGE) -- http://www.tigrent.com/-- is a provider of practical, high- quality and value-based training, conferences, publications, technology-based tools and mentoring to help customers become financially literate. The Company provides customers with comprehensive instruction and mentoring in the topics of real estate and financial instruments investing and entrepreneurship in the United States, the United Kingdom, and Canada. TRANSAX INTERNATIONAL: Incurs $975,500 Net Loss in June 30 Quarter ------------------------------------------------------------------ Transax International Limited filed its quarterly report on Form 10-Q, reporting a net loss of $975,480 on $1.0 million of revenue for the three months ended June 30, 2010, compared with a net loss of $3.4 million on $1.1 million of revenue for the same period of 2009. The Company has incurred cumulative net losses of $18.6 million since inception, and has a working capital deficit of $7.2 million at June 30, 2010. The Company's balance sheet as of June 30, 2010, showed $1.1 million in assets, $9.8 million in total liabilities, and a stockholders' deficit of $8.7 million. As reported in the Troubled Company Reporter on April 21, 2010, MSPC Certified Public Accountants and Advisors, P.C., in New York, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company has accumulated losses from operations of $17.2 million, a working capital deficiency of $6.2 million and a stockholders' deficiency of $7.4 million at December 31, 2009. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?69f9 About Transax International Transax International Limited -- http://www.transax.com/-- primarily through its 55% owned subsidiary, Medlink Conectividade em Saude Ltda is an international provider of information network solutions specifically designed for healthcare providers and health insurance companies. The Company's MedLink Solution enables the real time automation of routine patient eligibility, verification, authorizations, claims processing and payment functions. The Company has offices located in Plantation, Florida and Rio de Janeiro, Brazil. The Company currently trades on the OTC Pink Sheet market under the symbol "TNSX" and the Frankfurt and Berlin Stock Exchanges under the symbol "TX6". TRIBUNE CO: Bank Debt Trades at 37% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Tribune Co. is a borrower traded in the secondary market at 62.83 cents-on-the- dollar during the week ended Friday, August 27, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.79 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility, which matures on May 17, 2014. Moody's has withdrawn its rating while Standard & Poor's does not rate the bank debt. The loan is one of the biggest gainers and losers among 216 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection on December 8, 2008 (Bankr. D. Del. Lead Case No. 08- 13141). The Debtors proposed Sidley Austion LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. And Alvarez & Marsal North Americal LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of December 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) UTE MESA: Files Schedules of Assets & Liabilities ------------------------------------------------- Ute Mesa Lot 1, LLC, has filed with the U.S. Bankruptcy Court for the District of Colorado its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $10,000,000 B. Personal Property $17,983 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $353,048 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $11,279,976 ----------- ----------- TOTAL $10,017,983 $11,633,024 Denver, Colorado-based Ute Mesa Lot 1, LLC, filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. D. Colo. Case No. 10-30620). Duncan E. Barber, Esq., at Bieging Shapiro & Burrus LLP, assists the Debtor in its restructuring effort. UTE MESA: Section 341(a) Meeting Scheduled for Sept. 20 ------------------------------------------------------- The U.S. Trustee for Region 19 will convene a meeting of Ute Mesa Lot 1, LLC's creditors on September 20, 2010, at 1:00 p.m. The meeting will be held at U.S. Custom House, 721 19th St., Room 106, Denver, CO 80202. 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. Denver, Colorado-based Ute Mesa Lot 1, LLC, filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. D. Colo. Case No. 10-30620). Duncan E. Barber, Esq., at Bieging Shapiro & Burrus LLP, assists the Debtor in its restructuring effort. In its schedules, the Debtor disclosed $10,017,982 in total assets and $11,633,024 in total liabilities. UTE MESA: Taps Bieging Shapiro as Bankruptcy Counsel ---------------------------------------------------- Ute Mesa Lot 1, LLC, asks for authorization from the U.S. Bankruptcy Court for the District of Colorado to employ Bieging Shapiro & Burrus, LLP, as bankruptcy counsel, nunc pro tunc to August 13, 2010. Bieging Shapiro will, among other thinsg: a. aid the Debtor in the development of a plan or reorganization under Chapter 11; b. file petitions, schedules, pleadings, reports, and actions which may be required in the continued administration of the Debtor's property under Chapter 11 and in the course of the Debtor's Chapter 11 proceedings; c. analyze claims and causes of action of the Debtor and to object to claims and commence and prosecute adversary proceedings as necessary in the administration of the Debtor's bankruptcy case; and d. perform any and all other legal services for the Debtor which may be necessary herein or in connection with the case or any proceeding herein or in the administration hereof. Bieging Shapiro will be paid based on the hourly rates of its personnel: Duncan E. Barber $350 Steven T. Mulligan $285 Attorneys $200-$325 Paralegals $50-$145 Duncan E. Barber, Esq., a partner at Bieging Shapiro, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Denver, Colorado-based Ute Mesa Lot 1, LLC, filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. D. Colo. Case No. 10-30620). Duncan E. Barber, Esq., at Bieging Shapiro & Burrus LLP, assists the Debtor in its restructuring effort. In its schedules, the Debtor disclosed $10,017,982 in total assets and $11,633,024 in total liabilities. UNITED ENERGY: Posts $59,383 Net Loss in June 30 Quarter -------------------------------------------------------- United Energy Corp. filed its quarterly report on Form 10-Q, reporting a net loss of $59,383 on $443,505 revenues for the three months ended June 30, 2010, compared with a net loss of $181,853 on $394,004 revenues for the same period a year ago. The Company's balance sheet at June 30, 2010, showed $1.06 million in total assets, $1.08 million in total current liabilities, and a $20,878 stockholders' deficit. As reported in the TCR on July 20, 2010, Jewett, Schwartz, Wolfe & Associates, in Hollywood, Fla., expressed substantial doubt about the Company's ability to continue as a going concern following the Company's financial results for the fiscal year ended March 31, 2010. The independent auditors noted that the Company has operating and liquidity concerns, and has incurred net losses of $23,546,072 as of March 31, 2010. A full-text copy of the quarterly report on Form 10-Q is available for free at http://ResearchArchives.com/t/s?6a16 United Energy Corp. -- http://www.unitedenergycorp.net/-- develops and distributes environmentally friendly specialty chemical products with applications in several industries and markets. Through its wholly owned subsidiary, Green Globe Industries, Inc., the Company provides the U.S. military with a variety of solvents, paint strippers and cleaners under its trade name "Qualchem." The Company is headquartered in Secaucus, New Jersey. VEBLEN EAST: U.S. Trustee Forms Three-Member Creditors Committee ---------------------------------------------------------------- Habbo G. Fokkena, U.S. Trustee for Region 12, appointed three members to the official committee of unsecured creditors in the Chapter 11 cases of Veblen East Dairy Limited Partnership. The Creditors Committee members are: 1. Stockmen's Supply, Inc. Attn: Robert Jameson* 802 West Main Avenue West Fargo, ND 58078 Tel: (701) 297-4502 Cell: (701) 361-3255 2. Farmer's Elevator, Inc. Attn: Jeff Topp P.O. Box 7 Grace City, ND 58445 Tel: (701) 674-3144 (701) 652-5156 3. Paul's Electric, Inc. Attn: Paul Dotzenrod P.O. Box 95 Wyndmere, ND 58081 Tel: (701) 439-2216 (701) 640-0062 * acting chairperson pending selection by the Committee members of a permanent chairperson. Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtor's expense. They may investigate the Debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. About Veblen East Veblen, South Dakota-based Veblen East Dairy Limited Partnership filed for Chapter 11 bankruptcy protection on July 2, 2010 (Bankr. D.S.D. Case No. 10-10146). The Company estimated its assets and debts at $50 million to $100 million. The Company's affiliate, Veblen West Dairy, LLP, filed a separate Chapter 11 petition on April 7, 2010 (Case No. 10-10071). VISTEON CORP: Objects to Tower Automotive Claim ----------------------------------------------- Visteon Corp. and its units dispute the validity of Claim No. 1876 filed by Tower Automotive, Inc. Unsecured Creditors Trust. Tower filed a complaint against Visteon Corporation on Jan. 31, 2007, in the U.S. Bankruptcy Court for the Southern District of New York. After commencement of the Adversary Complaint, the TAI Unsecured Creditors Trust substituted Tower as plaintiff in the Complaint. The TAI Trust filed a proof of claim on October 13, 2009, alleging that it is entitled to recover $7,817,897 as avoidable preferential transfers pursuant to Section 547(b) of the Bankruptcy Code or in the alternative, as constructive fraudulent transfers pursuant to Section 548 of the Bankruptcy Code. By this objection, the Debtors ask Judge Sontchi disallow and expunge the TAI Trust's proof of claim because the Trust is unable to meet its burden of proof under Sections 547(b) and 548 of the Bankruptcy Code. Moreover, the Debtors maintain that if the TAI Trust is able to prove preferential transfers or constructive fraudulent transfers were made, they have defenses which effectively reduce the amount of the TAI Trust's claim to $0. About Visteon Corp Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for automakers. 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 disclosed 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 effort. 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: Taps Korn/Ferry as Search Advisors ------------------------------------------------ Visteon Corp. and its units sought and obtained permission from the Court to employ Korn/Ferry International, Inc., as advisors nunc pro tunc to July 19, 2010. The Debtors specifically sought the assistance of Korn/Ferry in the process of identifying individuals to serve as members of their board of directors upon their exit from Chapter 11. The Rights Offering Sub Plan proposed by the Debtors provides that the initial board of directors of reorganized Visteon will consist of the individuals selected in accordance with a Board Selection Term Sheet. The process outlined in the Board Selection Term Sheet was agreed upon by the Debtors and the investors in connection with the execution of a related Equity Commitment Agreement. The Board Selection Term Sheet contemplates the selection of a "Direct Pool" of potential candidates and provides that the Debtors and the "Participating Lead Investors" will jointly select an independent national search firm to assist with the selection of potential candidates for the Direct Pool. The Board Selection Term Sheet further calls for a nine-member Board, consisting of: (1) the current Chief Executive Officer of Visteon as chairman of the New Board; (2) two individuals designated by Visteon from the Director Pool, subject to the approval of the Majority Lead Investors; and (3) six individuals designated by the Majority Lead Investors. The Debtors and the Participating Investors have conferred on the selection of an independent national search firm and have concluded that Korn/Ferry is best suited to provide the specialized services required in selecting the Director Pool for the New Board. As search advisors, Korn/Ferry is expected: (a) identify qualified candidates based on defined criteria and competencies; (b) screen and interview candidates; (c) present the Debtors with information on the best-qualified candidates; (d) conduct reference checks on successful candidates; (e) facilitate offer negotiation; and (f) continue search services for the New Board until 100% successfully completed. The Debtors aver that they selected Korn/Ferry because of the firm's extensive experience in developing boards of directors and its expertise in recruiting superior board members. The Debtors paid Korn/Ferry a $250,000 retainer for the firm's services. Korn/Ferry will also receive a $250,000 performance bonus, which will be linked to the successful and timely recruitment of quality board of directors. In addition, if more than five directors are confirmed from the candidates recommended by Korn/Ferry, an additional recruitment fee of $90,000 per additional director will be payable to Korn/Ferry. Korn/Ferry will also charge an administrative fee of 4% of the total professional fees charges, due upon payment of all or any portion of the performance bonus. In any event, the maximum professional fees paid to Korn/Ferry will be $600,000, regardless of the number of directors selected. The Debtors will also reimburse Korn/Ferry for all direct, out- of-pocket expenses the firm incurred or will incur. Bradford B. Marion, senior client partner of Korn/Ferry, assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. In a certification of counsel, the Debtors inform the Court that they received an informal response to the Korn/Ferry Application from the Office of the U.S. Trustee, requesting that the proposed order approving the Application be revised to address certain concerns. To resolve the U.S. Trustee's informal response, the Debtors have agreed to modify the Original Proposed Order to provide that Korn/Kerry is further required to maintain general, daily records of the time spent by its professionals reflecting the category and nature of the services provided and the number of hours spent each day. Moreover, Korn/Kerry may file monthly applications for reimbursement of all reasonable, direct, out-of-pocket, recruiting expenses the firm incurs on interim basis and may seek final approval of those amounts in connection with its final fee application. B. Marion's Affidavit In a supplemental affidavit submitted to the Court, Bradford B. Marion, senior client partner of Korn/Ferry, relates that the Debtors and Korn/Ferry have engaged in discussions with the Office of the U.S. Trustee regarding certain questions about the Application. According to Mr. Marion, the professional fees set forth in the Engagement Letter are intended to compensate Korn/Ferry for the time and efforts of its consultants who will provide the Debtors with executive search services. Those fees do not reflect any of the necessary services provided by Korn/Ferry's staff and employees provided in support of the consultants on executive search engagements. However, the support services are required to complete the executive search process for Visteon, Mr. Marion says. He avers that on a project with a tight timeline, like the executive search Korn/Ferry is conducting for Visteon, those administrative support efforts are considerable. The Engagement Letter provides that Korn/Kerry will charge a 4% administrative fee on the professional compensation earned on the engagement, according to Mr. Marion. The administrative fee will be applied toward the administrative services associated with performing an executive search for Visteon. Mr. Marion clarifies that the administrative fee does not reflect a mark-up on out-of-pocket expenses incurred by Korn/Ferry for which Korn/Ferry is entitled to reimbursement under the terms of the Engagement Letter. Those out-of-pocket expenses will be billed to Visteon at cost. Korn/Ferry's standard administrative fee is 12%, and this rate is consistent with industry practice, Mr. Marion insists. Mr. Marion adds that in compliance with the request of the U.S. Trustee, the Korn/Ferry consultants working on the Visteon project will maintain a general, hourly accounting of the time they spend on the Visteon project and will submit that accounting to the U.S. Trustee in connection with Korn/Ferry's final fee application. About Visteon Corp Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for automakers. 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 disclosed 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 effort. 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: Terminates ACH Employee Leasing Pacts --------------------------------------------------- Visteon Corp. and its units sought and obtained a Court ruling authorizing: (a) Visteon Corporation and Visteon Global Technologies, Inc., to enter into a termination agreement with Automotive Components Holdings, LLC, and Ford Motor Company, dated as of July 26, 2010, pursuant to which Visteon and ACH will terminate certain agreements governing the lease of employees and the provision of services to ACH and facilitate the transition of those leased employees to ACH; and (b) Visteon Corp. and VGTI to assume an intellectual property contribution agreement, by and among Visteon, VGTI, Automotive Components Holdings, Inc., and ACH LLC, dated as of October 1, 2005, as amended, under which certain intellectual property rights are licensed between Visteon Corp. and VGTI on the one hand, and ACH on the other hand. The Employee Leasing Agreements Visteon Corp. was originally incorporated in January 2000 as a wholly owned subsidiary of Ford. Visteon was spun off from Ford in June 2000, and its common stock was distributed to Ford's shareholders. By 2005, Visteon negotiated with Ford regarding the acquisition of some of the assets spun off to Visteon. As a result of those negotiations, in September 2005, Visteon entered into a number of restructuring transactions pursuant to which it transferred 23 of its North American facilities and certain other related assets and liabilities to ACH, an indirect, wholly owned subsidiary of Visteon at the time. Visteon subsequently sold the stock in ACH's parent company -- ACH, Inc. -- to Ford in exchange for $300 million in cash, the forgiveness of certain liabilities, and the assumption of certain other liabilities by Ford. In order to facilitate a seamless transfer of the plants from Visteon to ACH and to allow ACH to continue to conduct manufacturing at its plants, Visteon agreed to lease certain of its hourly and salaried employees to ACH and to provide certain services to ACH. To that end, Visteon and ACH entered into three agreements: (1) a Visteon Salaried Employee Lease Agreement between Visteon and ACH, dated as of October 1, 2005; (2) a Visteon Hourly Employee Lease Agreement between Visteon and ACH, dated October 1, 2005; and (3) a Master Services Agreement between Visteon and ACH, dated September 30, 2005. James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, relates that Visteon has suffered financially as a result of extending the Employee Leasing Agreements beyond the originally anticipated short timeframe. While the Employee Leasing Agreements were designed to be cost- neutral, in practice Visteon has incurred significant administrative costs that are not required to be reimbursed by ACH and certain of the methodologies used to calculate the reimbursement amounts do not equal the actual costs incurred by Visteon, Mr. O'Neill adds. In light of these circumstances, and in order to allow Visteon to focus on its core business post-emergence, Visteon informed ACH that absent a termination agreement, it would reject the Employee Leasing Agreements through the bankruptcy process. At the same time, Visteon was mindful of the fact that rejection of these important agreements would likely give rise to additional and significant unsecured claims by ACH and Ford. Furthermore, the lack of a negotiated resolution between Visteon and ACH would adversely impact Ford, which could harm Visteon's significant business relationship with Ford. Thus, to avoid the adverse impacts of those rejections and resulting claims and provide for a mutually agreeable and orderly transfer of the leased employees from Visteon to ACH, the parties negotiated and agreed to enter into a termination agreement. The Termination Agreement specifically: -- contemplates the termination of the Employee Leasing Agreements effective as of August 31, 2010; -- contemplates the termination of that certain Payment Acceleration Agreement among Visteon, Ford, and ACH dated March 30, 2006, and that certain Escrow Agreement dated as of August 2, 2006, among Visteon, ACH, and Comerica Bank, as escrow agent; -- provides for a general waiver and release of potential claims related to the Employee Leasing Agreements and further provides for the resolution of all of ACH's claims related to the Employee Leasing Agreements that have been asserted against Visteon in these Chapter 11 cases. Specifically, pursuant to the Termination Agreement, 20 proofs of claim asserted by ACH for nearly $13.5 million will be disallowed and expunged from the Debtors' claim register. The IP Contribution Agreement Visteon, VGTI, ACH Inc., and ACH LLC are parties to an IP Contribution Agreement. As part of the transfer of the ACH facilities in 2005, Visteon and VGTI entered into the IP Contribution Agreement to provide ACH LLC and ACH Inc. with certain intellectual property assets related to ACH businesses acquired by Ford. Under the IP Contribution Agreement, Visteon transferred ownership to ACH of certain intellectual property rights, but retained a license back to support Visteon's own ongoing operations. Visteon continues to use that licensed back technology in its current business. Because certain aspects of the IP Contribution Agreement are co- terminous with the MSA, terminating the MSA under the Termination Agreement could also result in the termination of those aspects of the IP Contribution Agreement, with adverse consequences for ACH's ongoing business, Mr. O'Neill tells the Court. Thus, the parties to the IP Contribution Agreement have agreed to modify the IP Contribution Agreement pursuant to a certain fifth amendment, and the Debtors have agreed to assume the IP Contribution Agreement as so amended. A full-text copy of the Visteon/ACH Termination Agreement is available for free at: http://bankrupt.com/misc/Visteon_EmployeeTerminationAgmt.pdf A full-text copy of the Amended IP Contribution Agreement is available for free at: http://bankrupt.com/misc/Visteon_AmendedIPAgmt.pdf Prior to the entry of the Court's order, the Debtors certified to Judge Sontchi that no objection was filed as to their Motion. About Visteon Corp Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for automakers. 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 disclosed 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 effort. 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: Tower Automotive Trustee Wants to Pursue Suit ----------------------------------------------------------- Eugene I. Davis, as Liquidating Trustee of the Tower Automotive Inc. Unsecured Creditors Liquidating Trust, asks the U.S. Bankruptcy Court for the District of Delaware to lift the automatic stay to allow him to pursue an adversary proceeding against Visteon Corporation pending before the U.S. Bankruptcy Court for the Southern District of New York. The Tower Trust was created in accordance with a liquidating bankruptcy plan confirmed by the New York Court in the jointly administered bankruptcy cases of Tower Automotive, Inc., and its affiliates. Prior to Visteon's Petition Date, several of the Tower Debtors filed an adversary proceeding against Visteon seeking to avoid and recover transfers and to disallow any claims filed by Visteon in the Tower bankruptcy. In accordance with the Tower Plan, the Tower Trustee assumed responsibility of prosecuting the Avoidance Action brought by Visteon. Thus, Mr. Davis asks the Delaware Court to modify the automatic stay to permit it to continue prosecuting the Avoidance Action to a final, non-appealable judgment for the purpose of establishing the existence and amount of Visteon's preference liability. About Visteon Corp Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for automakers. 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 disclosed 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 effort. 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). WARNER CHILCOTT: Moody's Upgrades Ratings on Senior Loan to 'Ba3' ----------------------------------------------------------------- Moody's Investors Service upgraded the rating on the 2009 senior secured credit facilities of Warner Chilcott Company, LLC, Warner Chilcott Corporation, and WC Luxco S.� r.l. (subsidiaries of Warner Chilcott plc) to Ba3 from B1. At the same time, Moody's converted the provisional ratings assigned on August 5, 2010 to definitive ratings, including a Ba3 rating on the new senior secured term loan and a B3 rating on the new senior unsecured notes. In addition, Moody's upgraded the Probability of Default rating to B1 from B2. There is no change to the B1 Corporate Family Rating or SGL-1 Speculative Grade Liquidity Rating. The rating outlook remains stable. Proceeds of the offerings are expected to be used for a special dividend payment of $2.14 billion, announced on July 30, 2010. Ratings upgraded: Warner Chilcott Company, LLC -- Probability of Default Rating to B1 from B2 Warner Chilcott Corporation, Warner Chilcott Company, LLC and WC Luxco S.� r.l. (Borrowers): -- Sr. secured Term Loan A due 2014 to Ba3 [LGD3, 41%] from B1 [LGD3, 33%] -- Sr. secured Term Loan B due 2015 to Ba3 [LGD3, 41%] from B1 [LGD3, 33%] -- Sr. secured revolving credit faclity due 2014 to Ba3 [LGD3, 41%] from B1 [LGD3, 33%] Ratings revised (with face amounts adjusted): Warner Chilcott Corporation, Warner Chilcott Company, LLC and WC Luxco S.� r.l. (Borrowers): -- Senior secured Term Loan A-1 of $480 million due 2014 to Ba3 [LGD3, 41%] from (P)Ba3 [LGD3, 41%] -- Senior secured Term Loan B-3 of $770 million due 2016 to Ba3 [LGD3, 41%] from (P)Ba3 [LGD3, 41%] Warner Chilcott Corporation -- (P)B3 [LGD6, 92%] senior unsecured notes of $750 million to B3 [LGD6, 92%] from (P)B3 [LGD6, 92%] Rating assigned: Warner Chilcott Corporation, Warner Chilcott Company, LLC and WC Luxco S.� r.l. (Borrowers): -- Ba3 [LGD3, 41%] Term Loan B-4 of $250 million due 2016 Ratings Rationale Warner Chilcott's B1 Corporate Family Rating primarily reflects Moody's view that pro forma Debt/EBITDA (which Moody's estimated at 3.7 times) remains within the expectations for Warner Chilcott's ratings. The B1 rating also reflects good free cash flow and the company's prior history of deleveraging. Risk factors included in the B1 rating include high product concentration risk, declining Actonel sales, an unresolved patent challenge on Asacol 400mg, and the company's appetite for leverage. The upgrade of the Probability of Default Rating to B1 from B2 reflects Moody's application of the Loss Given Default Rating Methodology. Following issuance of the new senior unsecured notes, Warner Chilcott's capital structure now contains a mix of secured bank debt and unsecured bonds resulting in a 50% family- wide LGD assumption, and a PDR equal to the Corporate Family Rating. The rating outlook is stable. In the future, positive rating pressure could occur based on steady operating progress including successful PGP integration, favorable execution of life cycle management plans and a disciplined approach to any additional acquisitions or shareholder-friendly strategies. Conversely, acquisitions or financial policies that result in leverage or cash flow to debt metrics below the high end of Moody's "B" ranges could create negative rating pressure. Headquartered in Ardee, Ireland, Warner Chilcott plc is a specialty pharmaceutical company currently focused on women's healthcare, gastroenterology, dermatology and urology. For the first six months of 2010, the company reported total revenue of approximately $1.57 billion. WECHSLER & CO: Files List of 3 Largest Unsecured Creditors ---------------------------------------------------------- Wechsler & Co., Inc., has filed with the U.S. Bankruptcy Court for the Southern District of New York an amended list of its three largest unsecured creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ NYS Dept of Tax & Finance Bankruptcy/Special Procedure P.O. Box 5300 Albany, NY 12205 $10,600,516 Internal Revenue Service P.O. Box 21126 Philadelphia, PA 19114 $4,396,048 Blank Rome, LLP Harold Pappas, Esq. 405 Lexington Avenue New York, NY 10174 Attorneys Fees $9,900 Mount Kisco, New York-based Wechsler & Co., Inc., filed for Chapter 11 bankruptcy protection on August 18, 2010 (Bankr. S.D.N.Y. Case No. 10-23719). Jonathan S. Pasternak, Esq., at Rattet, Pasternak & Gordon Oliver, LLP, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. WECHSLER & CO: Section 341(a) Meeting Scheduled for Sept. 29 ------------------------------------------------------------ The U.S. Trustee for Region 2 will convene a meeting of Wechsler & Co., Inc.'s creditors on September 29, 2010, at 1:00 p.m. The meeting will be held at United States Bankruptcy Court, SDNY, 300 Quarropas Street, Room 243A, White Plains, NY 10601-5008. 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. Mount Kisco, New York-based Wechsler & Co., Inc., filed for Chapter 11 bankruptcy protection on August 18, 2010 (Bankr. S.D.N.Y. Case No. 10-23719). Jonathan S. Pasternak, Esq., at Rattet, Pasternak & Gordon Oliver, LLP, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. WECHSLER & CO: Taps Rattet Pasternak as Bankruptcy Counsel ---------------------------------------------------------- Wechsler & Co., Inc., asks for authorization from the U.S. Bankruptcy Court for the Southern District of New York to employ Rattet, Pasternak & Gordon-Oliver, LLP as bankruptcy counsel. RPGO will, among other things: a. negotiate with creditors of the Debtor and work out a plan of reorganization and take the necessary legal steps in order to effectuate a plan including, if need be, negotiations with the creditors and other parties in interest; b. prepare the necessary answers, orders, reports and other legal papers required for the Debtor who seeks protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code; c. attend meetings and negotiate with representatives of creditors and other parties in interest; and d. advise the Debtor in connection with any potential refinancing of secured debt and any potential sale of the business and its assets. RPGO will be paid based on the hourly rates of its personnel: Partners $475-$650 Of Counsel $475 Associates $200-$450 Paraprofessionals $150 Jonathan S. Pasternak, Esq., a member at RPGO, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Wechsler & Co., Inc., is a private investment firm that invests in public and privately held companies in New York. It filed for Chapter 11 bankruptcy protection on August 18, 2010 (Bankr. S.D.N.Y. Case No. 10-23719). The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. WECK CORP: Taps Hahn & Hessen as Bankruptcy Counsel --------------------------------------------------- The Weck Corporation, et al., ask for authorization from the U.S. Bankruptcy Court for the Southern District of New York to employ Hahn & Hessen LLP as bankruptcy counsel. H&H will, among other things: (a) attend meetings and negotiate with representatives of creditors and other parties-in-interest and advise and consult on the conduct of the Debtors' Chapter 11 cases, including all of the legal and administrative requirements of operating in Chapter 11; (b) take all necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on behalf of the Debtors' estates, the defense of any actions commenced against the estates, negotiations concerning litigation in which the Debtors may be involved, and objections to claims filed against the estates; (c) prepare motions, applications, answers, orders, reports, and papers necessary to the administration of the estates; and (d) prepare and negotiate plan(s) of reorganization, disclosure statement(s) and all related agreements and/or documents and take any necessary action on behalf of the Debtors to obtain confirmation of the plan(s). H&H will be paid based on the hourly rates of its personnel: Roseanne T. Matzat, Bankruptcy Partner $760 Mark T. Power, Bankruptcy Partner $760 Don D. Grubman, Corporate Partner $710 Janince M. Cerbone, Bankruptcy Associate $485 Sharon Tishco, Corporate Associate $425 Alison M. Paplexis, Bankruptcy Associate $270 Mark Thomas Power, Esq., a member at H&H, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in New York, The Weck Corporation operates a housewares and home furnishings business at six retail store locations, utilizing seven store leases, a warehouse lease and an office lease, and an internet-based business, all under the name Gracious Home. Gracious Home offers a wide range of customized products and services, including personal shopping, corporate and bridal gifts, decorative hardware, lighting and plumbing, key making, knife sharpening, lamp re-wiring, vacuum repairs, custom window treatments and stationary. The Weck filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. S.D.N.Y. Case No. 10-14349). The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. Affiliates Weck Chelsea, LLC (Bankr. S.D.N.Y. Case No. 10-14353), Gracious Home.com, LLC (Bankr. S.D.N.Y. Case No. 10-14351), and West Weck, LLC (Bankr. S.D.N.Y. Case No. 10-14350) filed separate Chapter 11 petitions on August 13, 2010. WECK CORP: U.S. Trustee Appoints 7 Members to Creditors Panel ------------------------------------------------------------- Tracy Hope Davis, the U.S. Trustee for Region 2, appoints seven members to the Official Committee of Unsecured Creditors in The Weck Corporation, et al.'s Chapter 11 cases. The Committee members include: 1) True Value Company Attention: Stuart McInnis, Director, Credit Services 30 Melody Lane Mills River, North Carolina 28759 Telephone: (828) 891-2889 Fax: (828) 891-2889 2) John Matouk & Co., Inc. Attention: George Matouk Jr., President 925 Airport Road Fall River, Massachusetts 02720 Telephone: (508) 997-3444 Fax: (508) 675-5112 3) Habidecor & Abyss, Inc. Attention: Leslie Connell, Vice President Windsor Industrial Park 92 North Main Street Windor, New Jersey Telephone: (609) 426-4780 Fax: (609) 426-4486 4) Yves Delorme, Inc. Attention: Jason Reitsma, Treasurer and CFO 1725 Broadway Street Charlottesville, Virginia 22902 Telephone: (434) 979-3911 Fax: (434) 979-7886 5) Satco Products, Inc. Attention: Kathleen Porretta, Credit Manager 110 Heartland Blvd Brentwood, New York 111717 Telephone: (631) 243-2022 Fax: (631) 243-2796 6) The Townsend House Corporation Attention: Sandy Kutz, President 176 East 71st Street New York, New York 10021 Telephone: (212) 988-9357 Fax: (212) 650-0686 7) Hanover Estates LLC Attention: Alan N. Locker, Manager c/o Bonafide Estates, Inc. 630 Fifth Avenue - Suite 3165 New York, New York10111 Telephone: (212) 757-6027 Fax: (212) 333-4259 Headquartered in New York, The Weck Corporation operates a housewares and home furnishings business at six retail store locations, utilizing seven store leases, a warehouse lease and an office lease, and an internet-based business, all under the name Gracious Home. Gracious Home offers a wide range of customized products and services, including personal shopping, corporate and bridal gifts, decorative hardware, lighting and plumbing, key making, knife sharpening, lamp re-wiring, vacuum repairs, custom window treatments and stationary. The Weck filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. S.D.N.Y. Case No. 10-14349). Mark T. Power, Esq., at Hahn & Hessen LLP, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. Affiliates Weck Chelsea, LLC (Bankr. S.D.N.Y. Case No. 10-14353), Gracious Home.com, LLC (Bankr. S.D.N.Y. Case No. 10-14351), and West Weck, LLC (Bankr. S.D.N.Y. Case No. 10-14350) filed separate Chapter 11 petitions on August 13, 2010. WECK CORP: Court Extends Filing of Schedules Until Sept. 27 ----------------------------------------------------------- The Hon. Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York extended, at the behest of The Weck Corporation, et al., the deadline for the filing of schedules of assets and liabilities, schedules of current income and expenditures, schedules of executory contracts and unexpired leases, and statements of financial affairs until September 27, 2010. The Debtors said that they will be unable to complete their schedules and statements in the previous 14-day deadline due to the complexity and diversity of their operations and large number of vendors, and the burdens occasioned by preparing on an expedited basis for their Chapter 11 cases. Headquartered in New York, The Weck Corporation operates a housewares and home furnishings business at six retail store locations, utilizing seven store leases, a warehouse lease and an office lease, and an internet-based business, all under the name Gracious Home. Gracious Home offers a wide range of customized products and services, including personal shopping, corporate and bridal gifts, decorative hardware, lighting and plumbing, key making, knife sharpening, lamp re-wiring, vacuum repairs, custom window treatments and stationary. The Weck filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. S.D.N.Y. Case No. 10-14349). Mark T. Power, Esq., at Hahn & Hessen LLP, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. Affiliates Weck Chelsea, LLC (Bankr. S.D.N.Y. Case No. 10-14353), Gracious Home.com, LLC (Bankr. S.D.N.Y. Case No. 10-14351), and West Weck, LLC (Bankr. S.D.N.Y. Case No. 10-14350) filed separate Chapter 11 petitions on August 13, 2010. WECK CORP: Taps Garden City as Claims & Noticing Agent ------------------------------------------------------ The Weck Corp., et al., sought and obtained authorization from the Hon. Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York to employ The Garden City Group, Inc., as claims and noticing agent. Garden City will, among other things: (a) notify potential creditors of the filing of the bankruptcy petitions and of the setting of the date for the first meeting of creditors; (b) maintain an official copy of the Debtors' schedules of assets and liabilities and statement of financial affairs, listing the Debtors' known creditors and the amounts owed thereto; (c) notify potential creditors of the existence and amount of their respective claims as evidenced by the Debtors' books and records and as set forth in the schedules; and (d) furnish a notice of the last date for the filing of proofs of claim and a form for the filing of a proof of claim, after such notice and form are approved by the Court. Garden City professionals will be paid at these rates: Hourly Rate ----------- Administrative & Data Entry $45 to $55 Mailroom and Claims Control $55 Customer Service Representatives $57 Project Administrators $70 to $85 Quality Assurance Staff $80 to $125 Project Supervisors $95 to $110 Systems & Technology Staff $100 to $200 Graphic Support for web site $125 Project Managers $125 to $175 Directors, Sr. Consultants and Asst VP $200 to $295 Vice President and above $295 Garden City Group will also charge the Debtor for its noticing, document management, claims administration and balloting services at the rates agreed by the parties. A copy of the Retention Agreement is available for free at http://bankrupt.com/misc/WECK_claimsagentretentionpact.pdf Jeffrey Stein, Garden City's vice president, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. About The Weck Corp. Headquartered in New York, The Weck Corporation operates a housewares and home furnishings business at six retail store locations, utilizing seven store leases, a warehouse lease and an office lease, and an internet-based business, all under the name Gracious Home. Gracious Home offers a wide range of customized products and services, including personal shopping, corporate and bridal gifts, decorative hardware, lighting and plumbing, key making, knife sharpening, lamp re-wiring, vacuum repairs, custom window treatments and stationary. The Weck filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. S.D.N.Y. Case No. 10-14349). Mark T. Power, Esq., at Hahn & Hessen LLP, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. Affiliates Weck Chelsea, LLC (Bankr. S.D.N.Y. Case No. 10-14353), Gracious Home.com, LLC (Bankr. S.D.N.Y. Case No. 10-14351), and West Weck, LLC (Bankr. S.D.N.Y. Case No. 10-14350) filed separate Chapter 11 petitions on August 13, 2010. WESTSTAR FINANCIAL: Posts $14.1 Million Net Loss in June 30 Qtr. ---------------------------------------------------------------- Weststar Financial Services Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $14.1 million for the three months ended June 30, 2010, compared with net income of $433,869 for the same period of 2009. Net interest income for the quarter ended June 30, 2010, totaled $1.7 million compared to $2.1 million in 2009. The decrease was attributable to decreases in net earning assets and net interest margin. The Company recorded a provision for loan losses of $14.1 million for the three months ended June 30, 2010, compared to $221,310 for the same period in 2009. The Company's balance sheet as of June 30, 2010, showed total assets of $214.2 million, total liabilities of $211.2 million, and stockholders' equity of $3.0 million. This compares with total assets of $223.7 million, total liabilities of $206.9 million, and stockholders' equity of $16.8 million at December 31, 2009. Non-performing assets totaled $27.8 million and $26.0 million at June 30, 2010, and December 31, 2009, respectively. Loans outstanding decreased 8.11% to $170.4 million, when compared to December 31, 2009, primarily as a result of loan charge-offs and write-downs. Net charge-offs during the six month period ended June 30, 2010, totaled $13.8 million, compared to $158,363 during the six month period ended June 30, 2009. In its latest 10-Q, the Company discloses that due to the significant decline in capital, it is anticipated that The Bank of Asheville will be required to enter into a formal consent order with the North Carolina Commissioner of Banks and the FDIC. "An enforcement action of this nature would most likely require higher regulatory capital requirements than would otherwise be required. A consent order could also result in requiring the Bank to raise additional capital within a specified timeframe, limit access to the brokered CD market, restrict rates it can offer on customer deposits and necessitate a corrective plan for the reduction of non-performing assets, among other matters. Furthermore, because such consent orders are public, there could be an adverse customer or market reaction to such announcement. These matters potentially raise substantial doubt about the Bank's ability to continue as a going concern. If the Bank is unable to comply with the terms of any such consent order, further regulatory actions could be taken." A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6a43 About Weststar Financial Ashville, N.C.-based Weststar Financial Services Corporation (OTC BB: WFSC) is the parent company of The Bank of Asheville. Weststar Financial Services Corporation owns 100% interest in Weststar Financial Services Corporation I, a statutory trust. The Bank operates five full-service banking offices in Buncombe County, North Carolina - Downtown Asheville, Candler, Leicester, South Asheville and Reynolds. WILLIAM PLATT: Foreclosure Suit Prompts Chapter 11 Filing --------------------------------------------------------- Crain's Chicago Business reports that developer William Platt filed for bankruptcy under Chapter 11 in the U.S. Bankruptcy Court in Chicago listing both assets and liabilities between $1 million and $10 million. The filing came after a foreclosure suit on Mr. Platt's property sought by Citigroup Inc., seeking to collect $1.8 million on a $1.95 million secured loan. The property is located at 3728-30 N. Southport Ave., which houses two of Mr. Platt's businesses, Platt Construction Inc. and Access Realty Group Inc., as well as a Chase Bank branch, according to the report. The Company said it owes $3.2 million to Bridgeview Bank Group; $2.6 million, and Ravenswood Bank. Ravenswood Bank was shut down by regulators on Aug. 6, 2010. A unit of Wintrust Financial Corp. bought most of its assets and deposits. WINDMILL DURANGE: Files Schedules of Assets & Liabilities --------------------------------------------------------- Windmill Durango Office, LLC, has filed with the U.S. Bankruptcy Court for the District of Nevada its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $20,000,000 B. Personal Property $1,389,775 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $16,500,000 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $268,000 ----------- ----------- TOTAL $21,389,775 $16,768,000 Las Vegas, Nevada-based Windmill Durango Office, LLC, filed for Chapter 11 protection on August 17, 2010 (Bankr. D. Nev. Case No. 10-25594). Zachariah Larson, Esq., at Larson & Stephens, assists the Debtor in its restructuring effort. According to its schedules, the Debtor disclosed $21,389,775 in total assets and $16,768,000 in total liabilities. Affiliates Windmill Durango Op, LLC (Bankr. D. Nev. Case No. 10- 18058) and Windmill Durango Retail, LLC (Bankr. D. Nev. Case No. 10-18056) on May 3, 2010. WINSTAR COMMUNICATIONS: IDT Seeks to Revive Suit vs. Blackstone --------------------------------------------------------------- IDT Corp. and Winstar Holdings LLC are trying to revive their lawsuit accusing Blackstone Group LP and two other financial firms of misrepresenting the value of Winstar Communications prior to its $42.5 million sale to IDT, according to Bankruptcy Law360. Winstar Holdings and IDT filed a notice of appeal Wednesday in the U.S. Bankruptcy Court for the District of Delaware. Based in New York, Winstar Communications, Inc., provides broadband services to business customers. The company and its debtor-affiliates filed for chapter 11 protection on April 18, 2001 (Bankr. D. Del. Case Nos. 01-01430 through 01-01462). As part of their chapter 11 restructuring strategy, the Debtors sold their domestic telecom assets to IDT Winstar Acquisition, Inc. IDT later sold the Winstar Assets to GVC Networks, LLC, resulting in the creation of GVCwinstar, a wholly owned subsidiary of GVC Networks. On January 24, 2002, the Bankruptcy Court converted the Debtors' cases to a Chapter 7 liquidation proceeding . Christine C. Shubert serves as the Debtors' Chapter 7 trustee. The Chapter 7 trustee is represented by Fox Rothschild LLP and Kaye Scholer LLP. When the Debtors filed for bankruptcy, they listed $4,975,437,068 in total assets and $4,994,467,530 in total debts. The Debtors are currently embroiled in a legal battle before the U.S. Court of Appeals for the Third Circuit to recover about $200 million in payments made to Lucent Technologies. The parties also allege breach of contract claims. WORLDVEST INC: June 30 Balance Sheet Upside-Down by $1.2-Mil ------------------------------------------------------------ WorldVest Inc. reported that as of June 30, 2010, it had $1,024,334 in total assets, $2,291,480 in total liabilities, and $1,267,146 in stockholders' deficit. WorldVest reported a net loss of $123,331 for the three months ended June 30, 2010, from a net loss of $473,674 for the same period in 2009. It reported a net loss of $49,967 for the six months ended June 30, 2010, from a net loss of $667,971 for the same period in 2009. Total revenue was $70,608 for the three months ended June 30, 2010, from $2,320 for the same period in 2009. Total revenue was $367,675 for the six months ended June 30, 2010, from $27,320 for the same period in 2009. In its Form 10-Q report, the Company said, "We believe we can satisfy our cash requirements for the next twelve months with our current cash, expected revenues and continued funding from WV55 Partners. However, completion of our plan of operation is subject to attaining adequate revenue and additional financing. We cannot assure investors that adequate revenues will be generated. In the absence of our projected revenues, we may be unable to proceed with our plan of operations. Even without adequate revenues within the next twelve months, we still anticipate being able to continue with our present activities, but we may require financing to potentially achieve our profit, revenue, and growth goals. "In the event we are not successful in reaching our initial revenue targets, additional funds may be required, and we may not be able to proceed with our business plan for the development and growth of our Iron Ore mining business. Should this occur, we would likely seek additional financing to support the continued operation of our business. We anticipate that depending on market conditions and our plan of operations, we may incur operating losses in the foreseeable future. Therefore, our auditors have raised substantial doubt about our ability to continue as a going concern," the Company said. A full-text copy of the Company's Form 10-Q report is available at no charge at http://ResearchArchives.com/t/s?6a29 New York-based WorldVest, Inc., was organized in September 2007 under the name Catalyst Ventures Incorporated. The Company filed for a name change on July 2, 2009. The business of the Company is to grow as a global merchant bank that offers traditional investment banking, asset management and advisory services, as well as direct investments as a principal in select high-growth transactions on a global basis. Recognizing the disconnect that exists between the needs of companies and the limitations of traditional investment banking, private equity, and venture capital institutions, WorldVest seeks to set a new standard, emerging as a partner and solution provider where one did not previously exist. Recently the company has increased the business for its Ore Mining subsidiary with its focus on the acquisition and development of certain Iron Ore properties. WorldVest anticipates closing of the pending acquisition of Chile Invesriones de Minerales, Ltda., which owns two large Iron Ore reserves in Chile. It is anticipated that shortly after closing of the CIM acquisition, WorldVest will begin producing Iron Ore and selling against its Chinese Purchase Contracts. * Business Filings Down, Individual Filings Rise in July -------------------------------------------------------- Bill Rochelle, bankruptcy columnist at Bloomberg News, reports that commercial and Chapter 11 filings declined in July 2010 from the year before while total bankruptcies, compromised mostly of filings by individuals, increased. Total bankruptcy filings in July were 134,600, the third-highest monthly total since bankruptcy laws were tightened in 2005. At a daily rate, July filings were 7.7% more than the year before, according to data compiled from court records by Automated Access to Court Electronic Records. Mr. Rochelle said that, according to AACER, a service of Oklahoma City-based Jupiter ESources LLC the 1,217 Chapter 11 filings in July represented a 5% decline from July 2009. Commercial filings of 7,256 were down 6% from the same month in 2009, at the daily filing rate. Commercial filings mostly include Chapter 11 cases plus businesses under Chapter 7. Bankruptcy filings last year totaled 1.44 million, a 32% increase from 2008. * Morgan Joseph Report Says Debt-Maturity Threat Waning ------------------------------------------------------- The new capital provided by the recent bond market surge is going towards uses other than paying off creditors or refinancing debt as was primarily the case in prior periods, according to Morgan Joseph LLC's newly issued Restructuring Quarterly Newsletter. Moreover, the trend is beginning to be felt in a variety of other favorable ways as well, including greater attention being paid by lenders to middle market companies. "Compared to 2009, when 3 out of every 4 dollars from new high yield issues went to refinancing existing debt, thus far in 2010 only 2 out of 3 dollars are used for refinancing," says James D. Decker, a Morgan Joseph Managing Director who heads the Restructuring Group. "While a far cry from 2007, when only 30% of proceeds went towards refinancing debt, along with M&A and recapitalizations, the ability for business to tap debt capital for reasons other than simply debt repayment is certainly a positive trend and one that could lead to more corporate spending and growth initiatives in the future." Among other trends, the Morgan Joseph Restructuring Newsletter also noted: -- One beneficiary of the high yield exuberance has been the loan provider that has been repaid and now has capital to deploy. As a consequence of their holdings of outstanding leveraged loans, the primary recipient of such capital has been CLO funds, which for the most part, remain in their investment windows and are incentivized or required to put capital back to work in the loan market. Accordingly, The Morgan Joseph Restructuring Group points out that "despite the fact that only a handful of CLO funds have been raised this year (mostly for repackaging of loans rather than new money vehicles), CLOs have actually grown their presence in the loan market from just north of 40% in 2008 to approximately 50% in this year's first half." -- Despite a recovered credit market and increasing M&A activity providing exit options for lenders, inter-lender dynamics and institutional concerns are still allowing many borrowers to push out maturities -- using so-called "amend to extend" options -- without resorting to new money financings. -- Combined with amend to extend activity, the loan supply resurgence has caused the near term wall of maturities to diminish. Over the past 18 months, 2011 maturities have been almost fully addressed, and 2012-2013 maturities have been essentially cut in half. -- Credit market participants are hungry for yield, and spreads between first and second lien loans remained below 100 basis points for the third straight month in July 2010, compared with a year earlier when spreads were almost 800 basis points. "One can easily see that the price of risk in the market has diminished dramatically," the Newsletter notes. -- The restructuring market overall is in a prolonged pause, with defaults having fallen sharply and lenders leaning towards flexibility rather than pushing for exits. "On an annualized year-to-date basis," reports the Morgan Joseph Restructuring Group, "principal defaults are now hovering around 2 percent and trending below 1 percent, well below averages of 3 to 4 percent during the last decade, and even further short of the mid-2009 peak of nearly 11 percent." Even when defaults occur, borrowers are not being forced to restructure their balance sheets as lenders continue to exhibit a willingness to amend and extend. -- The increasing availability of capital is beginning to stimulate credit providers to search for yield in less liquid and smaller deals. Thus, the market for cash flow term loans and second lien loans for middle market borrowers is once again becoming competitive as new funds enter the market. Morgan Joseph LLC, a New York City-headquartered full service investment bank, provides financial advisory and capital raising services to the Middle Market. The firm's services include M&A and restructuring advice, equity and debt private placements, as well as public offerings. In addition, Morgan Joseph provides equity research and sales and trading services for institutional clients. Morgan Joseph's staff of over 125 is heavily weighted to highly experienced professionals mostly from major Wall Street firms and intimately familiar with the issues facing middle market companies. The firm is a member of both the Financial Industry Regulatory Authority and the Securities Investors Protection Corp. The five Principals managing the Morgan Joseph Financial Restructuring Group collectively have over 70 years of financing and restructuring experience. Since 2001, they have completed more than 80 company and creditor transactions, and restructured approximately $25 billion of debt in in-court and out-of-court transactions. * * * Eric Morath, writing for Dow Jones' Daily Bankruptcy Review, reports that as of July 2010, about $133 billion in loans were set to come due between 2011 and 2013, down from about $280 billion as of the end of 2008. Mr. Morath also reports that not everyone believes the debt- maturity threat has passed. According to Mr. Morath, David M. Feldman, co-chairman of Gibson, Dunn & Crutcher's restructuring practice, said he is still seeing banks extending maturities, but for much shorter time frames, typically six to 12 months. "Most people in the restructuring space still believe there is a maturity problem," Mr. Feldman said. "We expect there will be another wave of restructurings. The only question is when." * Federal Reserve Seeks Stay of Appeals Court Disclosure Ruling --------------------------------------------------------------- Bloomberg News reports that the Federal Reserve Board asked a U.S. appeals court to delay implementation of a ruling that compels the central bank to release documents identifying banks that might have failed without the U.S. government bailout. According to Bloomberg, the request for a stay follows an Aug. 20 decision by the U.S. Court of Appeals for the Second Circuit to deny the Fed's request that the court reconsider its decision requiring the agency to release records of the $2 trillion U.S. bank loan program. At issue are 231 "term sheets" documenting Fed loans to financial firms during 2008. The records, which include the banks' names and the amounts borrowed, were originally requested by late Bloomberg News reporter Mark Pittman through the Freedom of Information Act, which allows citizens access to government papers. The case is Bloomberg LP v. Board of Governors of the Federal Reserve System, 09-04083, U.S. Court of Appeals for the Second Circuit (New York). * Paul Weiss, Lowenstein Fined $2 Million for 'Frivolous' Suit -------------------------------------------------------------- Bankruptcy Law360 reports that a New Jersey judge has ordered Paul Weiss Rifkind Wharton & Garrison LLP and Lowenstein Sandler PC to pay nearly $2 million to their opposing counsel for pursuing a frivolous "promise" claim they filed on behalf of billionaire Ronald O. Perelman, who was seeking to inherit half of his disabled 84-year-old father-in-law's estate. According to Law360, Judge Ellen L. Koblitz of the New Jersey Superior Court said the $1.96 million hit was levied to discourage the firms from repeating an "objectionable litigation strategy." * BOND PRICING -- For the Week From August 23 - 27, 2010 -------------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- --------- 155 E TROPICANA 8.750% 4/1/2012 5.375 ABITIBI-CONS FIN 7.875% 8/1/2009 10.750 ADVANTA CAP TR 8.990% 12/17/2026 13.400 AHERN RENTALS 9.250% 8/15/2013 36.750 AMBAC INC 9.375% 8/1/2011 41.750 AMBASSADORS INTL 3.750% 4/15/2027 50.000 AT HOME CORP 0.525% 12/28/2018 0.016 BANK NEW ENGLAND 8.750% 4/1/1999 12.813 BANK NEW ENGLAND 9.875% 9/15/1999 10.000 BANKUNITED FINL 6.370% 5/17/2012 5.250 BEARINGPOINT INC 5.000% 4/15/2025 1.963 BLOCKBUSTER INC 9.000% 9/1/2012 4.375 BLOCKBUSTER INC 11.750% 10/1/2014 47.500 BOWATER INC 6.500% 6/15/2013 23.000 BOWATER INC 9.500% 10/15/2012 28.000 CAPMARK FINL GRP 5.875% 5/10/2012 34.250 CELL THERAPEUTIC 7.500% 4/30/2011 80.600 CHENIERE ENERGY 2.250% 8/1/2012 43.000 EDDIE BAUER HLDG 5.250% 4/1/2014 5.000 EVERGREEN SOLAR 4.000% 7/15/2013 30.000 FAIRPOINT COMMUN 13.125% 4/2/2018 8.813 GASCO ENERGY INC 5.500% 10/5/2011 59.750 GENERAL MOTORS 7.125% 7/15/2013 30.200 GENERAL MOTORS 7.700% 4/15/2016 29.000 GENERAL MOTORS 9.450% 11/1/2011 30.000 GREAT ATLA & PAC 5.125% 6/15/2011 69.000 GREAT ATLA & PAC 6.750% 12/15/2012 50.950 HAWAIIAN TELCOM 9.750% 5/1/2013 1.875 INDALEX HOLD 11.500% 2/1/2014 0.550 INN OF THE MOUNT 12.000% 11/15/2010 49.000 INTL LEASE FIN 4.350% 9/15/2010 98.000 KEYSTONE AUTO OP 9.750% 11/1/2013 38.500 KMI-CALL09/10 6.500% 9/1/2013 3.250 LEHMAN BROS HLDG 0.250% 2/16/2012 18.500 LEHMAN BROS HLDG 4.500% 8/3/2011 18.760 LEHMAN BROS HLDG 4.700% 3/6/2013 19.750 LEHMAN BROS HLDG 4.800% 2/27/2013 19.500 LEHMAN BROS HLDG 4.800% 3/13/2014 19.500 LEHMAN BROS HLDG 5.000% 1/22/2013 17.500 LEHMAN BROS HLDG 5.000% 2/11/2013 19.600 LEHMAN BROS HLDG 5.000% 3/27/2013 18.670 LEHMAN BROS HLDG 5.000% 8/3/2014 19.500 LEHMAN BROS HLDG 5.000% 8/5/2015 18.750 LEHMAN BROS HLDG 5.100% 1/28/2013 18.000 LEHMAN BROS HLDG 5.150% 2/4/2015 18.760 LEHMAN BROS HLDG 5.250% 2/6/2012 20.500 LEHMAN BROS HLDG 5.250% 1/30/2014 18.950 LEHMAN BROS HLDG 5.250% 2/11/2015 17.875 LEHMAN BROS HLDG 5.350% 2/25/2018 18.750 LEHMAN BROS HLDG 5.500% 4/4/2016 21.000 LEHMAN BROS HLDG 5.500% 2/4/2018 18.750 LEHMAN BROS HLDG 5.500% 2/19/2018 18.750 LEHMAN BROS HLDG 5.550% 2/11/2018 18.000 LEHMAN BROS HLDG 5.600% 1/22/2018 19.600 LEHMAN BROS HLDG 5.625% 1/24/2013 21.875 LEHMAN BROS HLDG 5.700% 1/28/2018 18.750 LEHMAN BROS HLDG 5.750% 4/25/2011 21.000 LEHMAN BROS HLDG 5.750% 7/18/2011 20.250 LEHMAN BROS HLDG 5.750% 5/17/2013 19.500 LEHMAN BROS HLDG 5.875% 11/15/2017 21.125 LEHMAN BROS HLDG 6.000% 7/19/2012 21.375 LEHMAN BROS HLDG 6.000% 6/26/2015 16.600 LEHMAN BROS HLDG 6.000% 12/18/2015 18.120 LEHMAN BROS HLDG 6.000% 2/12/2018 18.250 LEHMAN BROS HLDG 6.200% 9/26/2014 21.000 LEHMAN BROS HLDG 6.600% 10/3/2022 18.000 LEHMAN BROS HLDG 6.625% 1/18/2012 19.550 LEHMAN BROS HLDG 6.750% 11/22/2027 15.900 LEHMAN BROS HLDG 6.875% 5/2/2018 21.938 LEHMAN BROS HLDG 7.000% 4/16/2019 18.250 LEHMAN BROS HLDG 7.000% 5/12/2023 17.750 LEHMAN BROS HLDG 7.100% 3/25/2038 17.900 LEHMAN BROS HLDG 7.250% 4/29/2038 18.000 LEHMAN BROS HLDG 7.350% 5/6/2038 16.600 LEHMAN BROS HLDG 7.500% 5/11/2038 0.010 LEHMAN BROS HLDG 7.875% 11/1/2009 19.000 LEHMAN BROS HLDG 8.000% 3/5/2022 19.375 LEHMAN BROS HLDG 8.050% 1/15/2019 18.000 LEHMAN BROS HLDG 8.400% 2/22/2023 17.100 LEHMAN BROS HLDG 8.500% 8/1/2015 18.000 LEHMAN BROS HLDG 8.500% 6/15/2022 18.550 LEHMAN BROS HLDG 8.750% 12/21/2021 18.500 LEHMAN BROS HLDG 8.800% 3/1/2015 20.375 LEHMAN BROS HLDG 8.920% 2/16/2017 18.600 LEHMAN BROS HLDG 9.000% 3/7/2023 19.000 LEHMAN BROS HLDG 9.500% 12/28/2022 18.950 LEHMAN BROS HLDG 9.500% 1/30/2023 19.375 LEHMAN BROS HLDG 9.500% 2/27/2023 17.510 LEHMAN BROS HLDG 10.000% 3/13/2023 18.950 LEHMAN BROS HLDG 10.375% 5/24/2024 19.000 LEHMAN BROS HLDG 11.000% 6/22/2022 17.760 LEHMAN BROS HLDG 11.000% 3/17/2028 18.500 LEHMAN BROS HLDG 11.500% 9/26/2022 18.750 LEHMAN BROS HLDG 18.000% 7/14/2023 18.735 LOCAL INSIGHT 11.000% 12/1/2017 31.750 MAGNA ENTERTAINM 7.250% 12/15/2009 9.000 MAGNA ENTERTAINM 8.550% 6/15/2010 17.000 MERRILL LYNCH 3.030% 3/9/2011 100.000 MFCCN-CALL09/10 5.200% 9/15/2030 97.202 NEWPAGE CORP 10.000% 5/1/2012 34.000 NEWPAGE CORP 12.000% 5/1/2013 19.524 NORTH ATL TRADNG 9.250% 3/1/2012 47.500 PALM HARBOR 3.250% 5/15/2024 68.000 RASER TECH INC 8.000% 4/1/2013 39.000 RESTAURANT CO 10.000% 10/1/2013 29.750 RESTAURANT CO 10.000% 10/1/2013 30.100 SPHERIS INC 11.000% 12/15/2012 24.750 STATION CASINOS 6.875% 3/1/2016 0.500 STATION CASINOS 7.750% 8/15/2016 0.500 THORNBURG MTG 8.000% 5/15/2013 3.970 TIMES MIRROR CO 7.250% 3/1/2013 40.660 TOREADOR RESOURC 5.000% 10/1/2025 96.200 TOUSA INC 10.375% 7/1/2012 0.750 TRICO MARINE 3.000% 1/15/2027 6.250 TRICO MARINE SER 8.125% 2/1/2013 17.750 VIRGIN RIVER CAS 9.000% 1/15/2012 45.500 WASH MUT BANK FA 5.650% 8/15/2014 0.200 WASH MUT BANK NV 5.500% 1/15/2013 0.200 WASH MUT BANK NV 6.750% 5/20/2036 0.650 WCI COMMUNITIES 4.000% 8/5/2023 1.000 WCI COMMUNITIES 9.125% 5/1/2012 1.250 WYNN LAS VEGAS 6.625% 12/1/2014 103.313 WYNN LAS VEGAS 6.625% 12/1/2014 103.610 ********* 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 ***