/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100913.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, September 13, 2010, Vol. 14, No. 254 Headlines ADVANTA CORP: Court Approves Settlement Agreement with FDIC ALLIED DEFENSE: Gets Delisting Notice From NYSE Amex APPALACHIAN POWER: Fitch Affirms Preferred Stock Rating at 'BB+' ASSOCIATED MATERIALS: S&P Puts 'B-' on CreditWatch Developing BEST BIODIESEL: Wisc. Receiver Taking Bids for Biodiesel Plant BILLING SERVICES: S&P Affirms 'B+' Corporate Credit Rating BOSQUE POWER: Bank Debt Trades at 32% Off in Secondary Market CALIFORNIA COASTAL: Taps Imperial Capital as Financial Advisor CARIBBEAN PETROLEUM: Taps Kurtzman Carson as Claims Agent CARITAS HEALTH: Attorney-Client Confusion Not Excusable Neglect CASCADE BANCORP: Posts $337,000 Net Loss in June 30 Quarter CENTAUR LLC: Court Approves Disclosure Statement CHAPARRAL ENERGY: Starts Private Placement of $300MM of Sr. Notes CHARTER COMMS: Bank Debt Trades at 5% Off in Secondary Market CHRYSLER LLC: Former Executives File Claim for Lost Pensions CIENA CAPITAL: Confirmation Hearing Set for November 3 CLAIM JUMPER: Files for Bankruptcy; Has $24MM Sale Offer CLAIM JUMPER: Case Summary & 20 Largest Unsecured Creditors CLOPAY AMES: S&P's Assigns BB+ on $125-Mil. Revolving Facility COMMERCIAL VEHICLE: Amends Loan Deal With Bank of America CONSOLIDATED RESORTS: Arthur Spector Acquires Timeshare Assets CONTINENTAL AIRLINES: Fitch Affirms at 'B-' IDR; Outlook Positive DARYL DELIMAN: Voluntary Chapter 11 Case Summary DANAOS CORP: Posts $14.7 Million Net Loss in June 30 Quarter DAYTON OAKS: Plan Contemplates Sale of Properties to Pay Claims DAYTON OAKS: Taps Tydings & Rosenberg to Handle Chapter 11 Case DAZ VINEYARDS: November 1 Fixed as General Claims Bar Date DISCOVERY LABS: Posts $6.3 Million Net Loss in June 30 Quarter DOLLAR THRIFTY: Hertz Raises Offer to $50 a Share EDIETS.COM INC: Incurs $34.6 Million Net Loss in June 30 Quarter EMDEON BUSINESS: S&P Affirms 'BB-' Corporate Credit Rating ENERGY FUTURE HOLDINGS: Fitch Rates Oncor Notes at 'BBB' EXCO RESOURCES: S&P Puts 'B' Issue-Level Rating on $750MM Notes FLEXTRONICS INTERNATIONAL: Bank Debt Trades at 4% Off FLORIDA FISHERMAN: In Bankruptcy to Reclaim Boat GARY DEJOHN: Voluntary Chapter 11 Case Summary GILMORE ERICKSON: Court to Convert Case to Chapter 7 Liquidation GRAHAM PACKAGING: S&P Affirms 'B' Corporate Family Rating GRAHAM PACKAGING: Moody's Affirms B2 Rating on $375MM Sub. Notes GRAHAM PACKAGING: To Borrow $600MM to Acquire Liquid Containers GRAY COMMS: Bank Debt Trades at 5% Off in Secondary Market GSC GROUP: Proposes October 7 Auction for All Assets GSI GROUP: Reschedules Shareholder Meeting to November 23 GUITAR CENTER: Bank Debt Trades at 11% Off in Secondary Market HARRINGTON WEST: Files for Chapter 11 Bankruptcy Protection HARRISBURG, PA: Commonwealth to Aid City with Expedited Payments HARRISBURG, PA: Offers Partial Reimbursement to Ambac HARVARD GRAND: Has Until November 9 to Propose Reorganization Plan HAWKER BEECHCRAFT: Bank Debt Trades at 19% Off in Secondary Market HERCULES OFFSHORE: Bank Debt Trades at 13% Off in Secondary Market HORIZON BANK: Closed; Bank of the Ozarks Assumes All Deposits HOVNANIAN ENTERPRISES: Incurs $72.8MM Net Loss in July 31 Qtr. HUGHES ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors HUNTSMAN ICI: Bank Debt Trades at 5% Off in Secondary Market INERGY: Tres Palacios Acquisition Cues S&P to Revise Outlook ISE CORPORATION: U.S. Trustee Forms 5-Member Creditors Committee JANICE BECKER: Court Approves Alter Goldman as Bankruptcy Counsel JANICE BECKER: Files List of 20 Largest Unsecured Creditors JANICE BECKER: Files Schedules of Assets and Liabilities JAVA DETOUR: Files Voluntary Petition for Chapter 11 JBS USA: Fitch Rates Proposed Reopening of Sr. Notes at 'BB-' JOSEPH BURALLI: Voluntary Chapter 11 Case Summary JPMCC 2002-CIBC4: Bankruptcy Judge Dismisses Chapter 11 Case LAKERIDGE CENTRE: Case Summary & 8 Largest Unsecured Creditors LAS VEGAS SANDS: Bank Debt Trades at 9% Off in Secondary Market LOCAL INSIGHT: Sept. 10 Call Cancelled; Parent Mulls Restructuring M-WISE INC: Posts $230,200 Net Loss in June 30 Quarter MARVKY CORPORATION: Voluntary Chapter 11 Case Summary MERUELO MADDUX: Court Rebuffs East West Bank Hostile Takeover Plan MICHAELS STORES: Bank Debt Trades at 5% Off in Secondary Market MINSTER INSURANCE: Chapter 15 Recognition Order Entered MOLECULAR INSIGHT: Gets Sept. 17 Extension of Waiver Agreement MONDRIAN TTL: Access to Prepetition Lenders' Cash Expires Today MONDRIAN TTL: Files Schedules of Assets and Liabilities MONDRIAN TTL: Plan Proposes Sale of Mondrian Project to Pay Claims MYONG KIM: Case Summary & 11 Largest Unsecured Creditors NAVISTAR INT'L: Reports $137 Million Net Income for 3rd Qtr. NEVADA POWER: Moody's Withdraws 'Ba1' Corporate Family Rating NEWTON MULLINS: Debtor's Plan Violated Absolute Priority Rule NEXT INC: Adjourns Special Shareholders Meeting to September 15 NORTH AMERICAN PETROLEUM: Wants to Resolve Concerns on Assets Sale NORTH GENERAL: Disputes Committee Bid for Financial Docs NORTHWEST 15TH: Architect Gets Okay to Repossess Plans OWENS-ILLINOIS: Moody's Affirms 'Ba2' Corporate Family Rating PAID INC: Incurs $805,100 Net Loss in June 30 Quarter PAREX BANK: Moody's Withdraws B2 Rating on Local Currency Deposit PATRIOT NATIONAL: Posts $1.4 Million Net Loss in June 30 Quarter PEARL COMPANIES: Debtor & Union Must Arbitrate Benefit Changes PEREGRINE PHARMA: Posts $7.7 Million Net Loss in July 31 Quarter PETTERS COMPANY: Trustee Appointment Immediately Appealable PROFESSIONAL VETERINARY: Sells Assets to Micro Beef & Lextron PTS CARDINAL: Bank Debt Trades at 9% Off in Secondary Market QUANTUM TECHNOLOGIES: Receives Delisting Notice From NASDAQ RAINBOW SUNSET: Case Summary & Largest Unsecured Creditor RASCALS CASINOS: Case Summary & 13 Largest Unsecured Creditors RIVIERA MARINE: Chapter 15 Case Summary ROBERT NUCCI: In Dispute Over AFL Team Investment ROCKWOOD SPECIALTIES: Fitch Upgrades IDR to 'B+' SEA ISLAND: U.S. Trustee Forms 7-Member Creditors Committee SEA ISLAND: Committee Taps Berger Singerman as Bankr. Counsel SEA ISLAND: Committee Taps GlassRatner as Financial Advisor SEA ISLAND: Starwood-Anschutz Submits $199-Mil. Offer for Assets SEDONA DEVELOPMENT: Court Approves Unsecured Loan from Recap SHELDRAKE LOFTS: Taps Davidoff Malito as Bankruptcy Counsel SRKO FAMILY: Has Until September 19 to Propose Reorganization Plan ST. MARY'S: S&P Cuts Long-Term Rating to 'BB+' From 'BBB' SUN COUNTRY: Wins Confirmation of Plan of Reorganization SWB WACO: Voluntary Chapter 11 Case Summary TRAFFORD DISTRIBUTING: Judge's Fiance Doesn't Warrant Recusal TRIBUNE CO: Bank Debt Trades at 36% Off in Secondary Market TRICO MARINE: DIP Financing, Cash Collateral Use Gets Interim OK TRICO MARINE: Section 341(a) Meeting Scheduled for Oct. 6 UAL CORP: Fitch Hikes Ratings to 'B-' Prior to Closing of Merger UNIVERSAL BUILDING: Court Approves Sale to Oaktree and Solus VALEANT PHARMACEUTICALS: S&P Affirms 'BB-' Corporate Family Rating VAN HAM DAIRY: Files for Bankruptcy Protection in Toledo VERENIUM CORP: Closes Sale of Cellulosic Biofuels Business to BP WALLACE THEATER: S&P Junks Corporate Credit Rating WASHINGTON CARD: Case Summary & 2 Largest Unsecured Creditors WEST COAST: N.D. Ind. Correct Venue Under "Nerve Center" Test W.L. DUNN: Case Summary & 20 Largest Unsecured Creditors YELLOWSTONE CLUB: Ch. 11 Trustee to Appeal Blixseth Ruling ZBB ENERGY: $46.9MM Accumulated Deficit Cues Going Concern Doubt * Fitch: Record Loan Resolutions Stem Climb in Delinquencies * Alan Halperin Among Law360's 10 Most Admired Bankruptcy Attys * Sean Lane Named as Bankruptcy Judge for So. Dist. of New York * BOND PRICING -- For the Week From Sept. 6 to 10, 2010 ********* ADVANTA CORP: Court Approves Settlement Agreement with FDIC ----------------------------------------------------------- Advanta Corp. previously disclosed that the Federal Deposit Insurance Corporation, as receiver for Advanta Bank Corp., the Company's wholly-owned bank subsidiary, had asserted claims of over $200 million against the Company and certain of its subsidiaries in the Chapter 11 cases pending before the U.S. Bankruptcy Court for the District of Delaware. In a regulatory filing Friday, the Company discloses that the FDIC claim has been settled in a manner that will result in either no claim against any of the Debtors or a $50 million general unsecured claim against the Company. The settlement of the FDIC claim will also potentially add $5.4 million to the assets of the Company's bankruptcy estate. A settlement agreement resolving the FDIC claim and other related matters was entered into on August 27, 2010, and the Bankruptcy Court approved it on September 7, 2010. The FDIC claim principally related to the $628 million tax loss the Company reported on its consolidated federal income tax return for 2009. The Company elected not to carryback any of the loss. This was in large part because carryback would have resulted in a tax refund of approximately $54 million but would also have resulted in a $170 million claim against the Company under the governing intercompany tax sharing agreement. This would have substantially reduced the recoveries available for other claimants with claims in the Company's bankruptcy proceedings. In the Company's view, Advanta Bank was not entitled to anything under the intercompany tax sharing agreement as a result of the Company not carrying back the loss and preserving the loss to carryforward to future years. The official committee of unsecured creditors in the Company's bankruptcy proceedings fully supported the Company's position. The FDIC contended that $170 million was owed regardless of whether the loss was carried back and also contended that it could independently ask the Internal Revenue Service to honor an FDIC election to carry the loss back to recover the $54 million refund from the IRS. On June 22, 2010, the Debtors filed a proof of claim against Advanta Bank in the FDIC receivership in the amount of at least $19 million. The Settlement Agreement provides that, subject to satisfaction of certain preconditions which have now been met, the FDIC shall be permitted to file competing federal tax returns on behalf of Advanta Bank with an election to carryback up to five years the 2009 net operating loss. If the IRS pays any refund in connection with any carryback of the 2009 net operating loss, the FDIC shall have no claims against the Debtors and the tax refund will be shared among the Company and the FDIC such that the Company receives 10% of the refund and the FDIC receives 90% of the refund. In this circumstance, the effect of the Settlement Agreement will be to eliminate the FDIC Claim and in addition benefit the Company's estate by the amount of its portion of any refund. If the IRS determines that it will not pay any refund in connection with any carryback of the 2009 net operating loss, then the FDIC will have an allowed general unsecured claim against the Company's Chapter 11 estate in the amount of $50 million that will receive the same treatment provided for other allowed general unsecured claims against the Company pursuant to any confirmed Chapter 11 plan. In this circumstance, the effect of the Settlement Agreement is to cap the amount of the FDIC's claims at $50 million, an amount that is significantly less than the FDIC Claim of in excess of $200 million. The Settlement Agreement also requires the Company to withdraw its $19 million claim against Advanta Bank in the FDIC receivership and includes mutual releases from each party to the other parties for the purpose of fully and finally resolving the matters in dispute. About Advanta Corp. Advanta Corp. -- http://www.advanta.com/-- has had a 59-year history of being a leading innovator in the financial services industry and of providing great value to its stakeholders, including its senior retail note holders and shareholders, prior to the recent reversals. It has also been a major civic and charitable force in the communities in which it is based, particularly in the Greater Philadelphia area. In June 2009, the Federal Deposit Insurance Corporation placed significant restrictions on the activities and operations of Advanta Bank Corp., a wholly owned subsidiary of the Company, as the Bank's capital ratios were below required regulatory levels. On November 8, 2009, Advanta Corp. filed for Chapter 11 (Bankr. D. Del. Case No. 09-13931). Attorneys at Weil, Gotshal & Manges LLP, and Richards, Layton & Finger, P.A., serve as bankruptcy counsel. Alvarez & Marsal serves as financial advisor. The Garden City Group, Inc., serves as claims agent. The filing did not include Advanta Bank Corp. The petition says that Advanta Corp.'s assets totaled $363,000,000 while debts totaled $331,000,000 as of September 30, 2009. ALLIED DEFENSE: Gets Delisting Notice From NYSE Amex ---------------------------------------------------- The Allied Defense Group, Inc., on September 2 received a staff determination letter from NYSE Amex LLC indicating that the Company no longer complies with the requirements for continued listing set forth in NYSE Amex LLC Company Guide Section 1003(c)(i) as a result of the sale of substantially all of the Company's assets as previously reported by the Company on a Form 8-K filed on September 2, 2010, and that shares of the Company's common stock are, therefore, subject to being delisted from the Exchange. The Company does not intend to appeal the Staff Determination. The Exchange has notified that if the Company does not appeal the Staff Determination, the determination will become final on September 10, 2010, and the Exchange will suspend trading of the Company's common stock and submit an application to the Securities and Exchange Commission to strike the Company's common stock from listing and registration on the Exchange in accordance with Section 12 of the Securities and Exchange Act of 1934 and the rules promulgated thereunder. The exchange has advised the Company that September 17, will be the last trading day of its common stock on the exchange. The Company will explore alternative marketplaces in which its common stock is eligible to trade, but there can be no assurance that the Company will seek or find any such alternatives. APPALACHIAN POWER: Fitch Affirms Preferred Stock Rating at 'BB+' ---------------------------------------------------------------- Fitch Ratings has affirmed the ratings of Appalachian Power Co.: -- Issuer Default Rating (IDR) at 'BBB-'; -- Senior unsecured debt and pollution control revenue and solid waste disposal bonds at 'BBB'; -- Preferred Stock at 'BB+'. Approximately $3.8 billion of debt is affected. The Rating Outlook for the company is Stable. Key drivers of the rating are the company's affiliation with parent, American Electric Power Co. (AEP; IDR 'BBB' with a Stable Outlook), regulated electric utility operations, and solid liquidity position. While the utility is able to participate in the AEP power pool and AEP money pool, given AEP's highly centralized treasury and electric operations, any deterioration in the credit quality of the parent company could impair the ratings of APCo. Rating concerns primarily relate to below average credit metrics through 2013 due to regulatory lag and a recent $54 million disallowance in Virginia, a relatively restrictive outcome in the company's most recent rate case in Virginia, and uncertainty regarding the pending base rate request in West Virginia. Recent financial performance was negatively impacted by higher operating and maintenance expenses, and continued elevated balances of under-recovered fuel costs, currently estimated to be approximately $354 million, including carrying costs. As a result, the company's ratio of normalized EBITDA to interest and debt to EBITDA are below average for the 'BBB-' rating category at 3.31 times (x) and 5.45x, respectively, for the twelve-month period ended June 30, 2010. Fitch's affirmation of APCo's ratings and the continuation of the Stable Outlook reflect the expectation that the company's credit metrics will improve over the next three years, with EBITDA to interest forecasted to approximate 4.0x and leverage to decline to 3.8x by 2014, as a result of phased-in recovery of under-recovered fuel costs in West Virginia through 2013. Fitch notes that capital spending at the utility is relatively modest, averaging approximately $420 million per year through 2012. APCo's internally generated cash flows are more than sufficient to finance the company's capex program and the company is projected to be free cash flow positive through the next several years. In July 2010, the Virginia State Commerce Commission (VSCC) issued an order approving a $62 million base rate increase for APCo, based on a 10.53% return on equity (ROE). The order also allowed the deferral of approximately $25 million of incremental storm expense incurred in 2009. The order denied recovery of the Virginia share of the Mountaineer Carbon Capture and Storage (CCS) Project in base rates, which resulted in a pre-tax write-off of $54 million in the second quarter of 2010. APCo initially filed a generation and distribution base rate request for $154 million, based on a 13.35% ROE in July 2009. The company filed for reconsideration of the order as it relates to the Mountaineer project, however, it was denied on Aug. 5, 2010. Through June 30, 2010, the utility has recorded a noncurrent regulatory asset of $58 million, consisting of $38 million in project costs and $20 million in asset retirement costs. APCo and Alstom Power Inc. jointly constructed a CO2 capture validation facility, which was placed into service in September 2009. APCo also constructed and owns the necessary facilities to store the CO2. The company has requested regulatory recovery of and a return on its estimated increased Virginia and West Virginia jurisdictional share of its project costs and recovery of the related regulatory asset amortization. In May 2010, APCo filed a $156 million base rate increase request with the West Virginia Public Service Commission (WVPSC), based on an 11.75% ROE to be effective March 2011. Hearings are scheduled for December of this year. In July 2010, the WVPSC approved a settlement agreement for $96 million, including $10 million of construction surcharges, related to APCo's second year expanded net energy charge (ENEC) increase. APCo is currently operating under an order that will provide the recovery of under-recovered fuel expenses through 2013. The overall increase is for $355 million, with the first year increase of $124 million effective October 2009. APCo's liquidity position remains strong, with $600 million of available capacity under the AEP money pool. Total AEP available liquidity of approximately $2.9 billion as of June 30, 2010, including $838 million of cash on hand. AEP's credit facilities are comprised of a $1.454 billion facility that matures in April 2012, a $1.5 billion facility that matures in June 2013 and a $478 facility that matures in April 2011. The credit agreements contain a covenant that requires AEP to maintain a debt to total capitalization at or below 67.5%. APCo and certain other companies in the AEP system also have a $478 million three-year agreement. Under the facility, letters of credit may be issued. As of June 30, 2010, APCo had $232 million of letters of credit outstanding under this agreement to support variable-rate pollution control bonds. The company's borrowing limit is $300 million. Debt maturities over the next five years are considered manageable and are as follows: $300 million in 2010, $250 million in 2011, $250 million in 2012, $70 million in 2013 and $0 in 2014. Fitch expects the company to refinance its maturing debt. ASSOCIATED MATERIALS: S&P Puts 'B-' on CreditWatch Developing ------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings, including the 'B-' corporate credit ratings, on siding and windows manufacturer Associated Materials LLC, and its parent Company AMH Holdings LLC, on CreditWatch with developing implications. The CreditWatch listing follows the announcement that Hellman & Friedman LLC had signed a definitive agreement to acquire Cuyahoga Falls, Ohio-based Associated Materials LLC for approximately $1.3 billion in total consideration. As a result of the transaction, S&P expects Associated's existing debt will be replaced with a new, simplified capital structure, the terms of which are yet to be disclosed. "The CreditWatch developing reflects the potential for Standard & Poor's to either raise, lower, or affirm its ratings on Associated Materials, depending on our assessment of the changes from this transaction on the Company's financial risk profile, including its ownership structure, capital structure, liquidity profile, and expected financial policy," said Standard & Poor's credit analyst Thomas Nadramia. Associated Materials is leading manufacturer and North American distributor of exterior residential building products. The Company's core products are vinyl windows and siding, aluminum trim coil, and aluminum and steel siding and accessories. In resolving the CreditWatch listing, Standard & Poor's expects to meet with management and assess the sustainability of the Company's most recent operating performance improvement and review the Company's capital structure posttransaction close in light of our expectations for a gradual recovery in residential construction and remodeling end markets, where Associated derives the majority of its sales. S&P could raise the corporate credit ratings on both if Associated's total leverage after the transaction and expected improvements in operating performance results in credit measures more consistent with a higher rating. Conversely, if the proposed transaction leads to a meaningful deterioration of the financial profile, S&P could lower the rating. S&P could affirm the ratings if the Company's leverage increases modestly from current levels and its liquidity profile, coverage of interest and, fixed charges improve as a result of the transaction. BEST BIODIESEL: Wisc. Receiver Taking Bids for Biodiesel Plant -------------------------------------------------------------- BEST Biodiesel Cashton, LLC, owns and operates a plant located in Sashton, Wisc., capable of producing eight million gallons of B- 100 biodiesel per year. The plant employs unique, proprietary process technology to produce biodiesel from a wide variety of feedstock, including crude corn oil from ethanol production. More public information is available at http://www.bestenergies.com/ The Receiver of the company's assets, appointed pursuant to Chapter 128 of the Wisconsin Statutes: Michael S. Polsky, Esq. Beck, Chaet, Bamberger & Polsky SC Two Plaza East, Suite 1085 330 East Kilbourn Avenue Milwaukee, WI 53202 Telephone: 414-273-4200 E-mail: mpolsky@bcblaw.net has obtained approval from the state court to hire: Laxson Boyd Wadsworth Whitestar Consultants 250 E. Wisconsin Ave. Milwaukee, WI 53202 Telephone: 414-257-1500 E-mail: laxson@wadsworthwhitestar.com as his financial advisor to oversee the operation and sale of the plant. An auction is scheduled for 10:00 a.m. on Mon., Oct. 4, 2010, in Madison, Wisc. BILLING SERVICES: S&P Affirms 'B+' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services raised its issue-level rating on Billing Services Group North America Inc.'s senior secured term loan to 'BB' from 'B+'. S&P also revised its recovery rating on the loan to '1' from '3'. The '1' recovery rating indicates S&P's expectation for very high (90%-100%) recovery in the event of payment default. At the same time, S&P affirmed its 'B+' corporate credit rating on San Antonio-based parent Billing Services Group Ltd. The outlook is stable. Total debt outstanding as of June 30, 2010 was approximately $74.5 million. "The issue-level and recovery rating changes reflect our revised expectation for recovery in the event of default, primarily resulting from Company's substantial debt reduction since its December 2007 recapitalization," said Standard & Poor's credit analyst Allyn Arden. BOSQUE POWER: Bank Debt Trades at 32% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which Bosque Power Company, LLC, is a borrower traded in the secondary market at 68.00 cents-on-the-dollar during the week ended Friday, September 10, 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 525 basis points above LIBOR to borrow under the facility. which matures on December 22, 2014. Moody's has withdrawn its rating while Standard & Poor's does not rate the bank loan. The loan is one of the biggest gainers and losers among 217 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Laguna Park, Texas-based Bosque Power Company, LLC, owns and operates an 800-megawatt natural gas fired power plant. The power-generating facility, located in Laguna Park, commenced operations as a natural-gas power plant in 2000. Bosque Power Partners owns 100% of the membership interest in Bosque Power. Bosque Power filed for Chapter 11 protection on March 24, 2010 (Bankr. W.D. Tex. Case No. 10-60348). Henry J. Kaim, Esq., at King & Spalding LLP, serves as bankruptcy counsel to the Debtor. The Debtor also tapped Morgan, Lewis & Bockius LLP as special corporate counsel; Greenhill & Co. LLC as financial advisor; and Kurtzman Carson Consultants LLC as claims agent. In its petition, the Debtor estimated assets and debts both ranging from $100 million to $500 million. CALIFORNIA COASTAL: Taps Imperial Capital as Financial Advisor -------------------------------------------------------------- California Coastal Communities, Inc., et al., ask the U.S. Bankruptcy Court for the Central District of California for permission to employ Imperial Capital, LLC as financial advisor. Imperial will, among other things: i) analyze the Debtors' business, operations, properties, financial condition, competition, forecast, prospects and management; ii) assist the Debtors in developing, evaluating, structuring and negotiating the terms and conditions of a potential restructuring plan; and iii) assist the Debtors in arranging and preparing for due diligence investigations and participating in meetings with the Debtors' creditor groups related to a restructuring. Imperial's compensation includes: -- monthly fees of $100,000, payable in advance; -- a 700,000 restructuring transaction fee; and -- reimbursement of expenses incurred. Imperial says it is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About California Coastal Irvine, California-based California Coastal Communities, Inc. -- http://www.californiacoastalcommunities.com/-- is a residential land development and homebuilding company with properties owned or controlled primarily in Orange County, California, and also in Lancaster in Los Angeles county. The Company's primary asset is a 356-home luxury coastal community known as Brightwater in Huntington Beach, California. California Coastal Communities, Inc. and certain of its direct and indirect wholly-owned subsidiaries filed for Chapter 11 bankruptcy protection on October 27, 2009 (Bankr. C.D. Calif. Case No. 09-21712). Joshua M. Mester, Esq., in Los Angeles, California, serves as counsel to the Debtors. The Company's financial advisor is Imperial Capital, LLC. California Coastal estimated $100 million to $500 million in assets and debts in its Chapter 11 petition. CARIBBEAN PETROLEUM: Taps Kurtzman Carson as Claims Agent --------------------------------------------------------- Caribbean Petroleum Corporation and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Kurtzman Carson Consultants LLC as noticing, claims, and balloting agent. KCC will, among other things: -- prepare and serve required notices in the Debtors' Chapter 11 cases; -- provide access to the public of examination of claims and the claims register at no charge; and -- maintain and update the master mailing lists of creditors. The Debtors propose to compensate KCC for all fees and expenses incurred in an amount not to exceed $25,000 per month, on average. The hourly rates of KCC's personnel are: Clerical $45 - $60 Project Specialist $80 - $140 Technology/Programming Consultant $140 - $190 Consultant $165 - $220 Senior Consultant $165 - $220 Senior Managing Consultant $295 To the best of the Debtors' knowledge, KCC is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Caribbean Petroleum San Juan, Puerto Rico-based Caribbean Petroleum Corporation, aka CAPECO, owns and operates certain facilities in Bayomon, Puerto Rico for the import, offloading, storage and distribution of petroleum products. Cribbean Petroleum filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-12553) on August 12, 2010, nearly 10 months after a massive explosion at its major Puerto Rican fuel storage depot virtually shut down the company's operations. The Debtor estimated assets at $100 million to $500 million and debts at $500 million to $1 billion as of the Petition Date. Affiliates Caribbean Petroleum Refining, L.P., and Gulf Petroleum Refining (Puerto Rico) Corporation filed separate Chapter 11 petitions on August 12, 2010. The Debtors' lead counsel is Cadwalader, Wickersham & Taft LLP. The Debtors' financial advisor is FTI Consulting Inc. The Debtors' chief restructuring officer is Kevin Lavin of FTI Consulting Inc. CARITAS HEALTH: Attorney-Client Confusion Not Excusable Neglect --------------------------------------------------------------- WestLaw reports that an error on the part of an attorney representing a creditor in jointly administered Chapter 11 cases, in not communicating effectively with the creditor to determine who would file a proof of claim, with the result that no proof of claim was filed on the creditor's behalf before the bar date expired, was not in the nature of "excusable neglect," and did not support an extension of the claims bar date. It did not matter that the creditor's delay in seeking to file a proof of claim only one week late, before a plan had been confirmed, was not substantial, even assuming that allowance of the creditor's untimely claim would result in no prejudice to the debtor. In re Caritas Health Care, Inc., --- B.R. ----, 2010 WL 3452369 (Bankr. E.D.N.Y.) (Craig, J.). Caritas Health Care Inc. was the owner of Mary Immaculate Hospital and St. John's Queens Hospital. Caritas, created by Wyckoff Heights Medical Center, purchased the two hospitals in a bankruptcy sale in early 2007 from St. Vincent Catholic Medical Centers of New York. St. John's has 227 generate acute-care beds while Mary Immaculate has 189. Caritas Health Care, Inc., and eight of its affiliates sought chapter 11 protection (Bankr. E.D.N.Y., Case No. 09-40901) on Feb. 6, 2009. Jeffrey W. Levitan, Esq., and Adam T. Berkowitz, Esq., at Proskauer Rose, LLP, represent the Debtors. Martin G. Bunin, Esq., and Craig E. Freeman, Esq., at Alston & Bird LLP, represent the official committee of unsecured creditors. Caritas sold the hospitals to Joshua Guttman in November 2009 for $17.7 million. At July 31, 2010, Caritas Health Care, Inc.'s balance sheet shows $40 million in assets available to satisfy $167 million in liabilities. The Honorable Carla E. Craig entered an order on May 24, 2010, extending the Debtors' exclusive period to file a chapter 11 plan through Aug. 6, 2010, and no further request to extend exclusivity has been presented to the Court. The Court held a status conference on Aug. 11, 2010, and the next hearing in the Debtors' cases is scheduled for Oct. 20, 2010. CASCADE BANCORP: Posts $337,000 Net Loss in June 30 Quarter ----------------------------------------------------------- Cascade Bancorp filed its quarterly report on Form 10-Q, reporting a net loss of $337,000 on $16.0 million of net interest income for the three months ended June 30, 2010, compared with a net loss of $28.1 million on $18.9 million of net interest income for the same period of 2009. The Company's balance sheet at June 30, 2010, showed $1.919 billion in total assets, $1.907 billion in total liabilities, and shareholders' equity of $12.1 million. Delap LLP, in Lake Oswego, Oregon, 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 a significant level of nonperforming assets, and is currently operating under written agreements with its principal banking regulators which require management to take a number of actions, including, among other things, restoring and maintaining capital levels to amounts that are in excess of the Company's current capital levels. In its latest 10-Q, the Company discloses that it submitted a strategic plan on October 28, 2009, and as of June 30, 2010, management believes that the Company is in compliance with the terms of the written agreements with the exception of requirements tied to or dependent upon increasing capital. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b0c About Cascade Bancorp Bend, Ore.-based Cascade Bancorp (Nasdaq: CACB) through its wholly-owned subsidiary, Bank of the Cascades, offers full-service community banking through 32 branches in Central Oregon, Southern Oregon, Portland/Salem Oregon and Boise/Treasure Valley Idaho. Cascade Bancorp has no significant assets or operations other than the Bank. Weiss Ratings has assigned its E- rating to Bend, Ore.-based Bank of The Cascades. The rating company says that the institution currently demonstrates what it considers to be significant weaknesses and has also failed some of the basic tests it uses to identify fiscal stability. "Even in a favorable economic environment," Weiss says, "it is our opinion that depositors or creditors could incur significant risks." As of March 31, 2010, the institution's balance sheet showed $2,083,883,000 in assets. CENTAUR LLC: Court Approves Disclosure Statement ------------------------------------------------ U.S. Bankruptcy Judge Kevin Carey in Delaware approved the disclosure statement explaining the Chapter 11 plan for Centaur LLC but requested further submissions from the Debtor and the unsecured creditors committee to come to a decision on whether the committee will be allowed to pursue $192 million in claims against the Debtor, according to Bankruptcy Law360. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported in July that Centaur filed a revised plan that provides for these terms: * holders of $405 million in first-lien debt are slated to recover about 83% from a combination of mostly new stock and debt. * Holders of $207 million in second-lien debt will see 1.4% through a share of $3 million in pay-in-kind notes and recoveries from a litigation trust if the class votes in favor of the Plan. * Unsecured creditors of Valley View Downs with $61.2 million in claims are to have a 0.75 recovery from receiving a share of $400,000 in new pay-in-kind notes and some recoveries by the litigation trust if they vote for the Plan. * Other general unsecured creditors, for their $17.2 million in claims, are to have a share of the litigation trust. About Centaur LLC Indianapolis, Indiana-based, Centaur, LLC, aka Centaur Indiana, LLC -- http://www.centaurgaming.net/-- is an company involved in the development and operation of entertainment venues focused on horse racing and gaming. The Company and its affiliates filed for Chapter 11 bankruptcy protection on March 6, 2010 (Bankr. D. Del. Case No. 10-10799). Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, assists the Company in its restructuring effort. The Company disclosed assets of $584 million and debt of $681 million as of the Petition Date. Affiliates Centaur PA Land LP and Valley View Downs LP filed for bankruptcy reorganization in October 2009 to keep alive a project to develop a racetrack in Pennsylvania. The filings were made following the failure to make payments due in October on a $382.5 million first-lien debt and a $192 million second-lien credit. All the companies are subsidiaries of closely held Centaur Inc., which isn't in bankruptcy. CHAPARRAL ENERGY: Starts Private Placement of $300MM of Sr. Notes ----------------------------------------------------------------- Chaparral Energy Inc. said in a regulatory filing that it commenced on Sept. 8, a private placement of $300 million of its senior notes due 2020. Because the offering is intended to be a private placement, the form of investor presentation has been redacted to remove all information describing the offering or the terms of the Senior Notes being offered. A copy of the redacted Investor Presentation is available for free at http://ResearchArchives.com/t/s?6b11 About Chaparral Energy Headquartered in Oklahoma City, Chaparral Energy, Inc. -- http://www.chaparralenergy.com/-- is an independent oil and natural gas company engaged in the production, exploitation, and acquisition of oil and natural gas properties. The Company's core areas of operation include the Mid-Continent and Permian Basin with additional operations in the Gulf Coast, Ark-La-Tex, North Texas, and the Rocky Mountains. * * * Chaparral Energy carries a 'B' issuer credit rating, with "stable" outlook, from Standard & Poor's. It has 'B3' corporate and probability of default ratings from Moody's Investors Service. CHARTER COMMS: Bank Debt Trades at 5% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which Charter Communications, Inc., is a borrower traded in the secondary market at 95.20 cents-on-the-dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.55 percentage points from the previous week, The Journal relates. The Company pays 262.5 basis points above LIBOR to borrow under the facility, which matures on March 6, 2014. Moody's has withdrawn its rating on the bank debt while it carries Standard & Poor's BB+ rating. The loan is one of the biggest gainers and losers among 217 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Charter Communications Based in St. Louis, Missouri, Charter Communications, Inc. (Pink OTC: CHTRQ) -- http://www.charter.com/-- is a broadband communications company and the fourth-largest cable operator in the United States. Charter Communications and more than a hundred affiliates filed voluntary Chapter 11 petitions on March 27, 2009 (Bankr. S.D.N.Y. Case No. 09-11435). The Hon. James M. Peck presides over the cases. Richard M. Cieri, Esq., Paul M. Basta, Esq., and Stephen E. Hessler, Esq., at Kirkland & Ellis LLP, in New York, served as counsel to the Debtors, excluding Charter Investment Inc. Albert Togut, Esq., at Togut, Segal & Segal LLP in New York, served as Charter Investment, Inc.'s bankruptcy counsel. Charter Communications, Inc., emerged from Chapter 11 under its pre-arranged Joint Plan of Reorganization, which was confirmed by the United States Bankruptcy Court for the Southern District of New York on Nov. 17, 2009. CHRYSLER LLC: Former Executives File Claim for Lost Pensions ------------------------------------------------------------ A group of over 450 former employees and managers from Chrysler and DaimlerChrysler today filed a class action claim in Wayne County Circuit Court against Daimler and Cerberus to regain their supplemental pensions that were lost during Chrysler's reorganization and bankruptcy last year. The guaranteed pensions were not transferred to the new Chrysler during those proceedings and, as a result, each of the plaintiffs lost large percentages of their earned retirement pensions. Attorneys Sheldon L. Miller of Farmington Hills and Mayer Morganroth of Birmingham are the lead attorneys representing the plaintiffs in the case. "The Chrysler bankruptcy was devastating to virtually everyone involved," said Miller. "Many of the men and women participating in this lawsuit worked their entire lives at the company under the repeated promise that these pensions would be there and intact for their retirement years. The direct financial loss, in combination with the serious reduction in medical, health care and auto benefits resulting from the bankruptcy, is causing them to make drastic changes to their retirement plans at a time when they can't go out and find other jobs to supplement their incomes. These are good, hard working people who are being severely punished through absolutely no fault of their own." Miller said there are no plans for any action against the new Chrysler. "Everybody involved in this suit loves that company and like everybody else wants to see it succeed," Miller said. "The plaintiffs in our case are trying to assure that there won't be similar hardships for Chrysler's current employees, many of whom worked for and with the people involved in this suit. Nobody wants to hurt them or the new company's chances for success." About Chrysler Group LLC Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30, 2009, sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20% equity interest in Chrysler Group. Dow Jones reports that the U.S. and Canadian governments provided Chrysler with $4.5 billion to finance its bankruptcy case. Those loans are to be repaid with the proceeds of the bankruptcy estate's liquidation. CIENA CAPITAL: Confirmation Hearing Set for November 3 ------------------------------------------------------ The Honorable Allan J. Gropper put his stamp of approval on the Disclosure Statement explaining Ciena Capital LLC's Third Amended Chapter 11 Plan on Sept. 1, 2010, allowing the Debtors to transmit their restructuring plan to creditors and ask them to vote to accept that plan. Judge Gropper will convene a hearing at 2:00 p.m. on Nov. 3, 2010, in Manhattan, to consider confirmation of the Debtor's chapter 11 plan. Creditors must cast their ballots by Oct. 25, 2010, and objections, if any, must be filed and served by 5:00 p.m., prevailing Eastern time, on Oct. 25, 2010. The Debtors' plan projects full payment of administrative and unsecured priority claims. Secured lenders, owed $327 million, are projected to recover less than 25%, and take ownership of the reorganized company. General unsecured creditors are projected to recover 50% of the amount they're owed, and subordinated creditors, owed $120 million, will recover nothing under the plan. Copies of the Debtors' Disclosure Statement, Third Amended Plan, and solicitation materials are available at: http://www.donlinrecano.com/ciena/ The Debtors are represented by: Peter S. Partee, Esq. Scott H. Bernstein, Esq. HUNTON & WILLIAMS LLP 200 Park Avenue, 53rd Floor New York, NY 10166-0136 Telephone: (212) 309-1000 - and - Andrew Kamensky, Esq. HUNTON & WILLIAMS LLP 1111 Brickell Ave., Ste. 2500 Miami, FL 33131 Telephone: (305) 810-2500 The Official Committee of Unsecured Creditors is represented by: Mark T. Power, Esq. Jeffrey Zawadzki, Esq. HAHN & HESSEN LLP 488 Madison Avenue New York, NY 10022 Telephone: (212) 478-7200 Commercial real estate loan servicer Ciena Capital LLC fdba Business Loan Express, LLC, and its debtor-affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 08-13783) on Sept. 30, 2008. In its Schedules of Assets and Liabilities, Ciena Capital disclosed $361 million in assets and $397 million in liabilities as of the Petition Date. CLAIM JUMPER: Files for Bankruptcy; Has $24MM Sale Offer -------------------------------------------------------- Claim Jumper Restaurants LLC, a restaurant chain inspired by inspired by California's Gold Rush history, filed a Chapter 11 petition (Bankr. D. Del. Case No. 10-12819) on Friday, September 10. An affiliate, Claim Jumper Management, LLC, also sought Chapter 11 protection on September 10, 2010 (Bankr. D. Del. Case No. 10-12820). Dow Jones' DBR Small Cap reports that Claim Jumper plans to sell its assets. DBR relates an affiliate of Canyon Capital Advisors LLC, a Los Angeles-based alternative asset manager, has offered to purchase Claim Jumper's assets for $24.5 million in cash. The Canyon Capital affiliate's offer also includes $5 million in cash to collateralize the restaurant chain's existing letters of credit, as well as a pledge to assume up to $23.3 million in liabilities, according to court papers filed Friday. The Canyon Capital affiliate's offer will be subject to higher offers at auction and bankruptcy-court approval. CLAIM JUMPER: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Claim Jumper Restaurants, LLC 16721 Millikan Ave. Irvine, CA 92606 Bankruptcy Case No.: 10-12819 Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. ------ -------- Claim Jumper Management, LLC 10-12820 Type of Business: Claim Jumper Restaurants, LLC operates a chain of casual dining restaurants. It was founded in 1977 and is based in Irvine, California. It has locations in Arizona, California, Colorado, Illinois, Nevada, Oregon, Washington, and Wisconsin. Web site: http://www.claimjumper.com/ Chapter 11 Petition Date: September 10, 2010 Bankruptcy Court: U.S. Bankruptcy Court District of Delaware Bankruptcy Judge: Kevin Gross Debtors' Local Counsel: Curtis A. Hehn, Esq. James E. O'Neill, Esq. Laura Davis Jones, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705 Tel: (302) 652-4100 Fax: (302) 652-4400 E-mail: chehn@pszjlaw.com joneill@pszjlaw.com ljones@pszjlaw.com Debtors' General Bankruptcy Counsel: MILBANK, TWEED, HADLEY & MCCLOY LLP Debtors' Financial Advisors and Investment Bankers: PIPER JAFFRAY & CO. Debtors' Claims Agent: KURTZMAN CARSON CONSULTANTS LLC Estimated Assets: $50 million to $100 million Estimated Debts: $100 million to $500 million The petitions were signed by William G. Taves, secretary and chief financial officer. Claim Jumper Restaurants' List of 20 Largest Unsecured Creditors: Entity/Person Nature of Claim Claim Amount ------------- --------------- ------------ Private Capita Partners Unsecured Lender $112,136,733 2000 Ave of the Stars 11th Flr. Los Angeles, CA 90067 Rogers Poultry Company Trade Debt (Food) $778,920 5050 Santa Fe Ave. Vermon, CA 90058 D & D Wholesale Inc. Trade Debt (Food) $420,262 777 Baldwin Park Blvd City of Industry CA 91746 Hannay Investments Landlord $379,451 Bruckmann Rosser & Other (contract $375,000 Sherrill & Co., LLC counterparty) Edward Don & Company Other $370,429 US Foodservice $320,647 CNA Risk Insurance $300,859 Get Fresh Produce Trade Debt (Food) $181,623 Company LA Specialty Produce Trade Debt (Food) $169,579 Company Anderson Seafoods Inc Trade Debt (Food) $165,896 General Produce Company Trade Debt (Food) $123,870 Midco Wheeling LLC Landlord $117,087 Turnberry Centra Sub LLC Landlord $96,930 Charlies Produce Trade Debt (Food) $82,320 Galossos Bakery Trade Debt (Food) $77,032 South Coast Plaza Rent Landlord $71,787 Southern Wine & Spirits Trade Debt (Food) $71,662 National Retail Properties Landlord $70,913 New City Packing Company Trade Debt (Food) $66,370 CLOPAY AMES: S&P's Assigns BB+ on $125-Mil. Revolving Facility -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'BB+' issue-level rating to New York City-based Clopay Ames' proposed $125 million asset-based revolving credit facility due 2015 and proposed $375 million term loan due 2016, (two notches above the preliminary corporate credit rating). S&P has assigned '1' preliminary recovery ratings to this debt, indicating lenders can expect very high recovery (90% to 100%) in the event of a payment default. The terms of these facilities have been revised from the previously proposed $150 million asset-based revolving credit facility and $500 million term loan which S&P assigned ratings to on Aug. 2, 2010. As a result, S&P has withdrawn its preliminary ratings issued on these proposed facilities. Proceeds from the proposed financings, combined with cash from parent Company Griffon Corp. (unrated entity) will be used to fund the acquisition of Ames True Temper and thus create Clopay Ames. The stable rating outlook reflects S&P's expectation that end- market demand for Clopay Ames' businesses will modestly increase over the next several quarters, in line with higher housing starts and a moderate uptick in repair and remodeling spending due to a gradual economic recovery. As a result, S&P expects credit metrics to strengthen from pro forma levels, with adjusted leverage improving to less than 3x by the end of fiscal 2011 and to about 2.5x by the end of fiscal 2012. In addition, S&P believes total liquidity will be sufficient to meet capital expenditures and fixed charges over the next year of $60 million. For a higher rating, S&P would expect Clopay Ames' operating performance to exceed expectations due to a rapid recovery in housing starts and increased consumer spending such that leverage would decline to below 2.5x. In S&P's view, this would be possible if housing starts in 2011 returned to 1 million and remodeling spending increased by 8% to 10%. S&P could take a negative rating action during this period if sales and EBITDA were to unexpectedly deteriorate due to a "double dip" recession and reduced construction activity such that total adjusted leverage exceeded 5x. For this to occur, S&P expects that housing starts would revert to fewer than 500,000 new units and that remodeling spending would be reduced over the next year. S&P could also consider a negative rating action if the Company completed a debt-financed acquisition that would result in increased leverage. COMMERCIAL VEHICLE: Amends Loan Deal With Bank of America --------------------------------------------------------- Commercial Vehicle Group Inc. entered on Sept. 7, 2010, into a third amendment to the Loan and Security Agreement dated Jan. 7, 2009, by and among the Company, certain of the Company's direct and indirect U.S. subsidiaries, as borrowers, and Bank of America, N.A., as agent and lender. Pursuant to the Third Amendment, the applicable margin for borrowings by the borrowers was amended to reduce the applicable margin and include grid pricing based upon the Company's fixed charge coverage ratio for the most recently ended fiscal quarter: Domestic Base LIBOR Level Ratio Rate Loans Revolver Loans ----- ----- ------------- -------------- III 1.25 to 1.00 2.00% 3.00% II 1.25 to 1.00 but < 1.75 to 1.00 1.75% 2.75% I 1.75 to 1.00 1.50% 2.50% Until delivery of the financial statements and corresponding compliance certificate for the fiscal year ending Dec. 31, 2010, the applicable margin shall be set at Level II. Thereafter, the applicable margin shall be subject to increase or decrease following receipt by the Agent of the financial statements and corresponding compliance certificate for each fiscal quarter. If the financial statements or corresponding compliance certificate are not timely delivered, then the highest rate shall be applicable until the first day of the calendar month following actual receipt. The Agreement was also amended to delete the definition of "Margin Reduction" in its entirety. In addition, the unused commitment fee was reduced to: i) 0.875% per annum during any fiscal quarter in which the aggregate average daily unused commitment is equal to or greater than 50% of the revolver commitments or ii) 0.625% per annum times the unused commitment during any fiscal quarter in which the aggregate average daily unused commitment is less than 50% of the revolver commitments. In addition, the Third Amendment contained amendments to certain of the restrictive covenants, including increases in the general basket for indebtedness, the general basket for investments and the basket for permitted foreign investments. About Commercial Vehicle Group New Albany, Ohio-based Commercial Vehicle Group, Inc., (Nasdaq: CVGI) supplies fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agricultural markets, and the specialty and military transportation markets. The Company has facilities located in the United States in Arizona, Indiana, Illinois, Iowa, North Carolina, Ohio, Oregon, Tennessee, Virginia and Washington and outside of the United States in Australia, Belgium, China, Czech Republic, Mexico, Ukraine and the United Kingdom. * * * Commercial Vehicle carries a 'Caa2' Corporate Family Rating and 'Caa2/LD' Probability of Default Rating from Moody's. It has 'CCC+' issuer credit ratings from Standard & Poor's. CONSOLIDATED RESORTS: Arthur Spector Acquires Timeshare Assets -------------------------------------------------------------- The Arthur Spector Companies completed the acquisition of all of the remaining timeshare inventory and operating assets comprising the Tahiti Village, Tahiti and Club de Soleil vacation ownership resorts in Las Vegas and other resorts in Hawaii. The Arthur Spector Companies were the successful bidder in U.S. bankruptcy court Judge Linda Riegle's courtroom on July 20, 2010. William A. Leonard, Jr. was the trustee. In 2007, a Whitehall Fund, sponsored by Goldman Sachs, made a substantial investment by acquiring a 75 percent majority interest in the Consolidated Resorts group of companies. The Spector family retained a 25 percent interest in the Consolidated Resorts group of companies. Consolidated Resorts discontinued its operations in June 2009 due to the devastating effects of the credit crisis and the slumping economy, and filed for bankruptcy in July 2009 when its major lenders discontinued funding. Whitehall has since terminated its interest in the Consolidated Resorts group of companies. The closing of the sale from the bankruptcy estate is the first in a series of planned transactions that will result in the Spector family investing more than $30 million back into the local Las Vegas economy. "We are pleased to bring this business back under the control of our local family that has succeeded in the timeshare business for over thirty years," stated Arthur Spector. "We are especially thankful that we were able to assist the trustee to protect the interests of over 100,000 timeshare owners in these difficult times. All of the timeshare resorts have remained fully operational, the owners have had uninterrupted use of their vacation plans and continue to choose Las Vegas and Hawaii as their vacation destinations. We look forward to rebuilding this vital sector of the Las Vegas economy." About The Arthur Spector Companies The Arthur Spector Companies have been leading timeshare resort developers in Las Vegas, Hawaii and Florida for more than 30 years. Arthur Spector is a trustee member of the American Resort Development Association and is regularly invited to speak on its industry leadership panels. The Arthur Spector Companies are affiliated with Interval International, a prominent timeshare exchange company, and are frequent contributors to industry leadership conferences. About Consolidated Resorts Consolidated Resorts filed for Chapter 7 bankruptcy protection (Bankr. D. Nev. Lead Case No. 09-22035) on July 7, 2009. William A. Leonard, Jr., serves as Chapter 7 Trustee. Lenard E. Schwartzer, Esq., at Schwartzer & McPherson Law Firm in Las Vegas, serves as counsel to the Debtor. James P. Hill, Esq., Christine A. Roberts, Esq., and Elizabeth E. Stephens, Esq., at Sullivan, Hill, Lewin, Rez & Engel in Las Vegas, serves as general counsel for the Chapter 7 Trustee. CONTINENTAL AIRLINES: Fitch Affirms at 'B-' IDR; Outlook Positive ----------------------------------------------------------------- Fitch Ratings has affirmed the Issuer Default Rating for Continental Airlines, Inc., at 'B-' and the senior unsecured rating at 'CC/RR6' prior to the closing of the planned merger between CAL and United Airlines, Inc. In addition, Fitch is assigning a rating of 'BB-/RR1' to CAL's recently issued $800 million of senior secured notes due 2015. The Rating Outlook for CAL has been revised to Positive from Stable. The Outlook revision reflects a steady strengthening of CAL's stand-alone credit profile during 2010 and clear progress toward the resolution of merger-related issues in recent weeks, as CAL and United look to close the transaction next month. CAL's stand- alone profile has been supported by steady improvements in revenue performance and a relatively benign jet fuel price environment since the air travel demand recovery began to take shape a year ago. Industry capacity constraint and a consistent rebound in business travel demand since last fall have helped drive solid gains in passenger yields and revenue per available seat mile (RASM), expanding margins and leading to improvements in free cash flow (FCF) generation during the early stages of the economic recovery. CAL's stand-alone revenue performance in 2010 has been strong, as a continuing recovery in high-fare travel demand and reduced discounting have supported solid RASM growth from recessionary levels in 2009. During the second quarter, CAL reported a 20% increase in consolidated passenger RASM on essentially flat capacity. The revenue turnaround helped drive $1 billion of first half operating cash flow and an improvement in the carrier's unrestricted liquidity to $3.5 billion at June 30. The unrestricted cash and investments balance is likely to increase at Sept. 30, incorporating approximately $450 million in net proceeds from CAL's August secured note issuance. Following the Aug. 27 decision by the U.S. Department of Justice (DOJ) to end its antitrust investigation of the proposed United- Continental merger, the last significant obstacle to the close of the transaction has been removed. Both carriers have indicated that they expect the merger to be closed on Oct. 1. In addition to the elimination of regulatory uncertainty, prospects for the eventual integration of the two airlines' unionized work groups have improved following the establishment of a transition and process framework for negotiations involving pilots at both airlines. Fitch continues to believe that the merger will ultimately support sustainable improvements in margins and FCF generation relative to other U.S. airlines, and will generally contribute to the establishment of a more disciplined approach toward capacity management in a cyclical industry that remains uniquely vulnerable to external demand and fuel price shocks. Management's commitment to a continuation of capacity discipline in 2011 and beyond represents an important risk mitigant at a time when the sustainability of the global economic recovery has become more uncertain. Even as industry revenue comparisons become more challenging, Fitch believes that the combined carrier retains sufficient fleet and network planning flexibility to successfully manage a more difficult demand environment, should it emerge, in 2011 and beyond. Calls on cash flow for the post-merger airline are substantial, due in large part to high stand-alone leverage levels at both CAL and United. Including convertible note issues that can be put back to the new United next year ($876 million face value for two United convertible issues), 2011 debt maturities total $2.5 billion. Strong FCF generation will therefore be critical next year if the post-merger carrier is to continue the de- levering process that has begun in 2010. Liquidity for the post-merger airline will be strong, providing significant flexibility to reduce debt levels without pushing cash below 20%-25% of pro forma revenue in 2011. Following CAL's August secured note issuance of $800 million, combined unrestricted cash and investments at closing will likely approach $9 billion. This reflects not only the FCF turnaround witnessed in 2010, but also the liberalization of capital market access that has allowed both carriers to raise debt on much more attractive terms since the summer of 2009. The combined CAL-United route network offers clear opportunities for the post-merger carrier to deliver a sustainable RASM premium to the industry. The two stand-alone networks are very complementary, with United's notable strength in trans-Pacific routes meshing well with CAL's strong market position in New York and into Latin America via the Houston hub. The depth and breadth of the combined route network, together with the premium product focus of both carriers, should put post-merger United in a strong position to deepen penetration in key high-fare business markets, laying a foundation for better RASM premiums over time. Revenue-related synergies will ultimately be more decisive in determining the long-term financial success of the merger. Recognizing immediate cost-saving opportunities associated with the elimination of duplicative operations (in particular, headquarters and certain overlapping airport operations), 2011 unit costs will likely be materially higher as pay rates and benefits are pushed toward industry-leading levels. One-time cash integration costs, moreover, are likely to be significant, and will put some pressure on FCF for both UAL and CAL this year and into 2011. Assuming a slow and uneven U.S. economic expansion, relatively stable jet fuel prices below $2.50 per gallon and mid-single digit RASM growth during 2011, Fitch expects the combined carrier to generate positive FCF in excess of $1.5 billion next year, providing room to push pro forma lease-adjusted leverage down, while maintaining unrestricted cash balances above $7 billion. Fuel price volatility remains a major concern for CAL and the entire industry, and most carriers have resumed fairly active fuel hedging programs in 2010 as energy prices rebounded from low levels during the recession. For the remainder of 2010, United has hedged over 75% of projected fuel consumption through swaps and call options with average crude oil equivalent price caps of approximately $80 per barrel. CAL also has protection in place through the end of the year (approximately 50% of projected consumption hedged with crude oil caps at approximately $85 per barrel). An upgrade of CAL's post-merger IDR to 'B' is possible in 2011 if a continuation of positive yield and RASM comparisons, coupled with a generally favorable fuel price scenario (average jet fuel prices below $2.50 per gallon) drive strongly positive FCF and allow the post-merger airline to fund next year's maturities largely out of internally generated cash flow and excess cash on the balance sheet. Conversely, a revision of the Rating Outlook to Stable could occur if a sharp slowdown in U.S. economic growth contributes to stagnating industry unit revenue growth or if a spike in global energy prices pressures the new United's 2011 operating margins, thereby weakening the carrier's FCF profile next year. Following the close of the transactions, ratings for CAL and United will be closely linked as wholly-owned subsidiaries of the newly created United Continental Holdings parent. Once a single operating certificate is received, more complete linkage of the two separately rated entities will likely occur. DARYL DELIMAN: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Daryl George Deliman dba Delinco 2949 Rosemary Fullerton, CA 92835 Bankruptcy Case No.: 10-22627 Chapter 11 Petition Date: September 8, 2010 Court: United States Bankruptcy Court Central District of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Todd B. Becker, Esq. LAW OFFICES OF TODD B BECKER 3750 E Anaheim St., Suite 100 Long Beach, CA 90804 Tel: (562) 495-1500 Fax: (562) 494-8904 E-mail: veloz@toddbeckerlaw.com Scheduled Assets: $2,247,900 Scheduled Debts: $2,874,700 The Debtor did not file a list of its largest unsecured creditors together with its petition. DANAOS CORP: Posts $14.7 Million Net Loss in June 30 Quarter ------------------------------------------------------------ Danaos Corporation reported a net loss of $14.7 million on $84.9 million of revenue for the three months ended June 30, 2010, compared with net income of $15.9 million on $79.1 million of revenue for the same period of 2009. Loss on fair value of derivatives, increased by $37.0 million, to a loss of $43.9 million in the three months ended June 30, 2010, from a loss of $6.9 million in the same period of 2009. As of December 31, 2009, the Company was in breach of various covenants in its credit facilities, for some of which it had obtained waivers and for others it had not. The waivers the Company has obtained are for a period through October 1, 2010. Furthermore, as of June 30, 2010, there are further breaches for which the Company has not obtained waivers. The Company's working capital deficit was $2.449 billion as of June 30, 2010, compared to working capital deficit of $2.217 billion as of December 31, 2009. The deficits as of June 30, 2010, and December 31, 2009, are due to the reclassification of long-term debt to current liabilities due to breaches under the Company's credit facilities. The Company's balance sheet at June 30, 2010, showed $3.124 billion in total assets, $2.934 billion in total liabilities, and stockholders' equity of $189.8 million. A full-text copy of the "Operating and Financial Review and Prospects and Condensed Consolidated Financial Statements (Unaudited) for the Three Months Ended June 30, 2010", is available for free at http://researcharchives.com/t/s?6b12 About Danaos Corporation Headquartered in Piraeus, Greece, Danaos Corporation (NYSE: DAC) -- http://danaos.com/-- is an international owner of containerships, chartering its vessels to many of the world's largest liner companies. The Company operates through a number of subsidiaries incorporated in Liberia and Cyprus. As of May 31, 2010, the Company had a fleet of 45 containerships aggregating 193,629 TEUs, making the Company among the largest containership charter owners in the world, based on total TEU capacity. As reported in the Troubled Company Reporter on June 22, 2010, PricewaterhouseCoopers S.A., in Athens, Greece, 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 Company noted of the Company's inability to comply with financial covenants under its current debt agreements as of December 31, 2009, and its negative working capital deficit. DAYTON OAKS: Plan Contemplates Sale of Properties to Pay Claims --------------------------------------------------------------- Dayton Oaks, LLC, and Compass Homes, LLC, submitted to the U.S. Bankruptcy Court for District of Maryland a proposed Plan of Reorganization. The funds necessary to implement the Plan will be generated solely from the sale of the Saleable One Acre Platted Lots, Lot No. 1 and the Model Home, Parcel A, and Parcel H at The Preserve at Clarksville. The Debtor's net proceeds from the sales of the Platted Lots, the Model Home, and Parcel H will be paid to creditors in the portion as is necessary for the execution of the Plan. The Plan also provides that Compass, as the new member of the reorganized Debtor, will, from time to time during the development of the Preserve at Clarksville, a subdivision located in Clarksville, Maryland, make materials and other services available to the Debtor for completion of the Preserve at Clarksville. All membership interests in the Debtor as of the Effective Date will be extinguished, and new membership interests in the reorganized and newly constituted Debtor will be issued to Compass. Under the Plan, general unsecured claims, excluding insider claims will be paid on a pro rata basis, without interest. A full-text copy of the Plan is available for free at: http://bankrupt.com/misc/DAYTONOAKS_Plan.pdf About Dayton Oaks, LLC Clarksville, Maryland-based Dayton Oaks, LLC, filed for Chapter 11 bankruptcy protection on June 7, 2010 (Bankr. D. Md. Case No. 10- 22702). Gary R. Greenblatt, Esq., at Mehlman, Greenblatt & Hare, LLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10 million to $50 million. Failed Banks Sept. 10, 2010. DAYTON OAKS: Taps Tydings & Rosenberg to Handle Chapter 11 Case --------------------------------------------------------------- The U.S. Bankruptcy Court for District of Maryland will convene a hearing on October 6, 2010, at 11:00 a.m., to consider Dayton Oaks, LLC's employment of Tydings & Rosenberg LLP as its counsel. T&R will, among other things: -- provide the Debtor with legal advise with respect to its powers and duties as debtor-in-possession and in the operation of its business and management of its property; -- represent the Debtor in defense of proceedings instituted to reclaim property or to obtain relief from the automatic stay; and -- assist the Debtor in the preparation of a plan of reorganization and a disclosure statement. T&R received an initial $45,000 retainer to be applied towards future services rendered and expenses to be incurred. To the best of the Debtor's knowledge, T&R is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Dayton Oaks, LLC Clarksville, Maryland-based Dayton Oaks, LLC, filed for Chapter 11 bankruptcy protection on June 7, 2010 (Bankr. D. Md. Case No. 10- 22702). Gary R. Greenblatt, Esq., at Mehlman, Greenblatt & Hare, LLC, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10 million to $50 million. DAZ VINEYARDS: November 1 Fixed as General Claims Bar Date ---------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California has established November 1, 2010, as the last day for any individual or entity to file proofs of claim against DAZ Vineyards, LLC. November 1 is also set as governmental unit bar date. Los Olivos, California-based DAZ Vineyards, LLC, dba Demetria Estate Winery, filed for Chapter 11 bankruptcy protection on February 15, 2010 (Bankr. C.D. Calif. Case No. 10-10689). William C. Beall, Esq., at Beall and Burkhardt, assists the Company in its restructuring effort. DISCOVERY LABS: Posts $6.3 Million Net Loss in June 30 Quarter -------------------------------------------------------------- Discovery Laboratories, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $6.3 million for the three months ended June 30, 2010, compared with a net loss of $7.9 million for the same period of 2009. The Company did not generate any revenues in both periods. On June 22, 2010, the Company completed a public offering of 35.7 million shares of its common stock, five-year warrants to purchase 17.9 million shares of its common stock, and short-term (nine month) warrants to purchase 17.9 million shares of its common stock, resulting in gross proceeds to the Company of $10 million ($9.1 million net). If exercised in full, the short-term warrants would result in additional proceeds to the Company of roughly $5 million, and the long-term warrants, $7.1 million. This offering was made pursuant to the Company's existing shelf registration statement on Form S-3 (File No. 333-151654), which was filed with the SEC on June 13, 2008, and declared effective by the SEC on June 18, 2008. The Company's balance sheet as of June 30, 2010, showed $28.4 million in total assets, $10.4 million in total liabilities, and stockholders' equity of $18.0 million. Ernst & Young LLP, in Philadelphia, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted of the Company's recurring operating losses and negative cash flows form operations since inception. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b03 About Discovery Laboratories Warrington, Pa.-based Discovery Laboratories, Inc. (Nasdaq: DSCO) -- http://www.Discoverylabs.com/-- is a biotechnology company developing KL4 surfactant therapies for respiratory diseases. DOLLAR THRIFTY: Hertz Raises Offer to $50 a Share ------------------------------------------------- The Wall Street Journal's Gina Chon reports that Hertz Global Holdings Inc. on Sunday raised its offer for Dollar Thrifty Automotive Group Inc. to $50 a share, or about $1.56 billion, topping a proposal from Avis Budget Group Inc. The Journal says Hertz and Dollar Thrifty amended their merger agreement, first agreed to in April, to reflect the new price. Other substantive terms of the merger agreement, including a $44.6 million reverse breakup fee, remain unchanged. The revised price represents an increase of $10.80 per share in the cash portion of the offer. Hertz would pay for the deal mostly in cash, with the remainder in stock. The Journal relates that, to ensure the deal closes, Hertz has also begun the process of divesting its deep-discount Advantage Rent-a-Car brand. According to the report, to give Dollar Thrifty shareholders time to assess the new Hertz offer, a vote on the deal has been postponed to Sept. 30 from Sept. 16. On Sept. 2, rival Avis raised the cash portion of its cash-and- stock offer to about $47.13 a share, or about $1.35 billion, which topped Hertz's proposal of about $1.1 billion. But Avis continued to decline to offer a reverse breakup fee, which was a condition requested by Dollar Thrifty in a letter early last month. According to the Journal, Dollar Thrifty's stock closed at $48.01 a share Friday on the New York Stock Exchange, giving it a market capitalization of about $1.38 billion. Analysts said Hertz probably needed to make a move to keep its deal with Dollar alive. The proxy advisory firm Institutional Shareholder Services Inc. recently said Dollar shareholders should vote against the Hertz deal because Hertz wasn't offering a high enough price. The Journal notes Hertz's merger agreement with Dollar includes unlimited matching rights, or the ability for Hertz to match any competing bid on a recurring basis. The deal also says Hertz is willing to sell assets with $175 million in revenue. Avis has said it would divest itself of businesses with $325 million in revenue. 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. The Company's balance sheet at June 30, 2010, showed $2.5 billion in total assets and $2.0 billion in total liabilities, for $467.8 million in total stockholders' equity. * * * As reported by the Troubled Company Reporter on August 2, 2010, Standard & Poor's Ratings Services said its ratings on Dollar Thrifty (DTAG; B-/Watch Pos/--) remain on CreditWatch with positive implications. This follows Avis' (B+/Stable/--) July 28, 2010 bid to acquire DTAG. S&P initially placed the ratings on DTAG on CreditWatch with positive implications on April 26, 2010, when the company announced that it had signed a definitive agreement to be acquired by another competitor, Hertz Global Holdings Inc. (B/Watch Pos/--). S&P said the acquisition would result in an increase in market share for either Avis Budget or Hertz in the U.S. There currently are three major on-airport car rental companies: Hertz, Avis (parent of the Avis and Budget brands), and Enterprise Rent-A-Car Co. (parent of the Enterprise, Alamo, and National brands), each with about a 30% market share. DTAG accounts for most of the balance. As reported by the TCR on August 10, 2010, Dominion Bond Rating Service commented that Dollar Thrifty's ratings, including its Issuer Rating of B (high) are unaffected following the Company's announcement of second quarter 2010 earnings results. All ratings remain Under Review Positive, where they were placed on April 28, 2010. DBRS acknowledged DTAG's continued progress in refinancing maturing debt and improved access to the capital markets. During the quarter, DTAG established two new funding facilities totaling $500 million and repaid $200 million of maturing notes. DTAG's next medium term note maturity is $600 million, which will begin to amortize in December 2010. Given the Company's solid liquidity and improved access to the capital markets, DBRS sees these maturities as manageable. In November 2009, S&P 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'. EDIETS.COM INC: Incurs $34.6 Million Net Loss in June 30 Quarter ---------------------------------------------------------------- eDiets.com, Inc., filed its quarterly report, showing a net loss of $34.6 million on $5.4 million of revenue for the three months ended June 30, 2010, compared with a net loss of $2.6 million on $4.7 million of revenue for the same period last year. The Company used approximately $3.9 million of cash in its operations for the six months ended June 30, 2010. As of June 30, 2010, the Company has an accumulated deficit of approximately $98.5 million. The Company's balance sheet as of June 30, 2010, showed $7.3 million in total assets, $4.9 million in total liabilities, and stockholders' equity of $2.4 million. As reported in the Troubled Company Reporter on March 15, 2010, Ernst & Young LLP expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that of the Company's recurring operating losses, working capital deficiency and net capital deficiency. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b09 About eDiets.com, Inc. Fort Lauderdale, Fla.-based eDiets.com, Inc. (NASDAQ: DIET) -- http://www.eDiets.com/-- is a provider of personalized nutrition, fitness and weight-loss programs. EMDEON BUSINESS: S&P Affirms 'BB-' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed 'BB' rating on Nashville-based Emdeon Business Services LLC's senior secured term loan due November 2013 following the Company's $100 million add- on. S&P also affirmed 'BB-' corporate credit rating on the Company and 'B' rating on the Company's $170 million second-lien term loan C. The outlook is stable. The Company exercised its accordion feature in its credit agreement to increase its existing $755 million term loan to $855 million. The incremental $100 million of proceeds, along with approximately $163 million of cash on hand, will be used to fund Emdeon's acquisition of Chamberlin Edmonds & Associates Inc., a provider of government program eligibility and enrollment services. "The ratings on Emdeon reflect the Company's narrow business profile and the competitive and still-evolving nature of the health care transaction-processing industry and improved, but still significant leverage," said Standard & Poor's credit analyst Jennifer Pepper. Positive operating and credit trends and a good track record of effectively integrating acquisitions partially offset these factors. ENERGY FUTURE HOLDINGS: Fitch Rates Oncor Notes at 'BBB' -------------------------------------------------------- Fitch has assigned a rating of 'BBB' to the $475 million 5.25% senior secured notes issued by Oncor Electric Delivery, LLC. The new secured notes will mature on Sept. 30, 2040. The notes are secured by a first mortgage lien on Oncor's transmission and distribution assets and rank equally with other senior secured debt of Oncor. Proceeds from the notes are expected to be used to reduce revolving credit facility borrowings and for general corporate purposes. Key rating factors are the stability of existing regulated utility cash flows, credit ratios commensurate with the rating, and effective ring-fencing from a highly leveraged parent company, Energy Future Holdings Corp. (EFH; Fitch IDR of 'CCC', with a Stable Outlook). Oncor's ratings are supported by a healthy regulated transmission and distribution (T&D) utility business that has steady cash flow with rate-base growth opportunities related to transmission projects to connect West Texas wind power to load centers, the 2009 rate order, and advanced metering investments. Credit ratios are consistent with the investment-grade rating, with a funds from operations (FFO) coverage ratio of 3.9 times (x) for the trailing 12 months (TTM) ended June 30, 2010. Oncor bears no commodity price risk and has low business risk as a pure T&D utility with a relatively strong service territory economy. While Fitch considers Oncor to be effectively ring-fenced from the rest of the EFH group, its credit market access or credit spreads could nonetheless become constrained by any deterioration in the financial condition of EFH and non-ring-fenced affiliates. Importantly, the Public Utilities Commission of Texas (PUCT) recognized Oncor's ring-fencing in the 2009 base-rate order by rejecting a proposed consolidated tax savings adjustment. Large capital spending plans are expected to constrain its dividends to EFH as Oncor is expected to maintain equity to capital within the 40% maximum PUCT-required level (excluding bank facility borrowings), and funds external needs with a balanced mix of debt and equity. Liquidity is satisfactory. Oncor has a $2 billion revolving credit facility due 2013. There were borrowings of $948 million as of June 30, 2010. Bank facility borrowings are expected to be reduced with a portion of the proceeds from the new secured notes. Fitch expects Oncor to begin to pre-fund significant debt maturities in 2012 ($700 million) and 2013 ($650 million) through debt exchange efforts. EXCO RESOURCES: S&P Puts 'B' Issue-Level Rating on $750MM Notes --------------------------------------------------------------- Standard & Poor's Ratings Services assigned issue-level and recovery ratings to EXCO Resources Inc.'s proposed $750 million senior unsecured notes due 2018. The issue-level rating is 'B' (two notches below the corporate credit rating). The recovery rating on this debt is '6', indicating S&P's expectation of negligible (0%-10%) recovery in the event of a payment default. "Our recovery analysis incorporates EXCO's plans to use the proceeds from the proposed notes offering to redeem its $450 million senior notes due 2011 and to repay outstanding balances under its secured revolving credit facility," said Standard & Poor's credit analyst Patrick Lee. Dallas-based EXCO is an oil and gas Company engaged in the exploration and production of crude oil and primarily natural gas. S&P's corporate credit rating on EXCO is 'BB-', and the outlook is stable. RATING ACTIONS: Rating Transaction Class To From Bristol CDO I Ltd. A-1 AA (sf) AA (sf)/Watch Neg Bristol CDO I Ltd. A-2 AA (sf) AA (sf)/Watch Neg C-Bass CBO V Ltd. B AA (sf) AA (sf)/Watch Neg C-Bass CBO V Ltd. C A+ (sf) A+ (sf)/Watch Neg C-Bass CBO V Ltd. D-1 BB (sf) BB (sf)/Watch Neg C-Bass CBO V Ltd. D-2 BB (sf) BB (sf)/Watch Neg Commodore CDO I Ltd. A BB+ (sf) BBB (sf)/Watch Neg MKP CBO IV Ltd. A-1 CCC (sf) BB+ (sf)/Watch Neg Phoenix CDO II Ltd. A AA (sf) AA (sf)/Watch Neg Porter Square CDO I Ltd. A-3 AA (sf) AA (sf)/Watch Neg Porter Square CDO I Ltd. B B- (sf) B- (sf)/Watch Neg Saturn Ventures I Ltd. A-1 AA (sf) AA (sf)/Watch Neg Saturn Ventures I Ltd. A-2 BB- (sf) BB+ (sf)/Watch Neg SFA CABS II CDO Ltd. A A (sf) A (sf)/Watch Neg Tricadia CDO 2006-5 Ltd. B B (sf) BB (sf)/Watch Neg Tricadia CDO 2006-5 Ltd. C CCC- (sf) CCC+ (sf)/Watch Neg Vermeer Funding Ltd. A-1 A+ (sf) A+ (sf)/Watch Neg Vermeer Funding Ltd. A-2 B (sf) BB (sf)/Watch Neg RATINGS AFFIRMED: Transaction Class Rating Bristol CDO I Ltd. B CC (sf) Bristol CDO I Ltd. C CC (sf) Commodore CDO I Ltd. B CCC- (sf) Commodore CDO I Ltd. C CC (sf) MKP CBO IV Ltd. C CC (sf) Porter Square CDO I Ltd. C CC (sf) Saturn Ventures I Ltd. A-3 CC (sf) Saturn Ventures I Ltd. B CC (sf) Tricadia CDO 2006-5 Ltd. D CC (sf) Tricadia CDO 2006-5 Ltd. E CC (sf) Tricadia CDO 2006-5 Ltd. F CC (sf) Vermeer Funding Ltd. B CC (sf) Vermeer Funding Ltd. C CC (sf) OTHER RATINGS OUTSTANDING: Transaction Class Rating MKP CBO IV Ltd. A-2 D (sf) MKP CBO IV Ltd. B D (sf) FLEXTRONICS INTERNATIONAL: Bank Debt Trades at 4% Off ----------------------------------------------------- Participations in a syndicated loan under which Flextronics International Ltd. is a borrower traded in the secondary market at 95.88 cents-on-the-dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.42 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The debt matures on Oct. 1, 2012. Moody's has withdrawn its rating on the bank debt while it carries Standard & Poor's BB+ rating. The loan is one of the biggest gainers and losers among 217 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 July 2, 2010, Fitch Ratings upgraded Flextronics International Ltd.'s Issuer Default Rating to 'BBB-' from 'BB+'; senior unsecured credit facility to 'BBB-' from 'BB+'; and senior subordinated notes to 'BBB-' from 'BB+'. The Rating Outlook is Stable. Liquidity as of March 31, 2010, was solid with $1.9 billion in cash and a fully available $2 billion senior unsecured revolving credit facility which expires in May 2012. Additionally, Fitch expects Flextronics to produce strong free cash flow, even in the current environment with minimal working capital requirements and reduced capital spending plans. Fitch estimates that Flextronics has produced average annual free cash flow in excess of $500 million each of the past three years. Flextronics utilizes an accounts receivable securitization facility as well as accounts receivable sales agreements for additional liquidity purposes. Total debt as of March 31, 2010, was $2.3 billion and consisted primarily of $1.7 billion outstanding under a senior unsecured term loan facility, of which around $500 million is due in October 2012 with the remainder due in October 2014; $240 million in 1% convertible subordinated notes due August 2010; and $300 million in 6.25% senior subordinated notes due November 2014. Flextronics also has around $417 million outstanding under its accounts receivable securitization facilities and $164 million outstanding under various accounts receivable sales agreements. Headquartered in Singapore, Flextronics International Ltd. (NasdaqGS: FLEX; Singapore Reg. No. 199002645H) -- http://www.flextronics.com/-- is an Electronics Manufacturing Services provider focused on delivering design, engineering and manufacturing services to automotive, computing, consumer digital, industrial, infrastructure, medical and mobile OEMs. Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in over 30 countries on four continents. FLORIDA FISHERMAN: In Bankruptcy to Reclaim Boat ------------------------------------------------ Becky Bowers at the St. Petersburg Times reports that Florida Fisherman Inc., doing business as Marina in John's Pass Village, sought Chapter 11 protection last month to reclaim its double- decker deep-sea fishing boat after it was seized over debts to Bank of America. According to the report, owner Mark Hubbard said that Florida Fisherman, one of his companies, filed for Chapter 11 reorganization after the bank turned down his offers to restructure the debt. The Company assets and estimated debts of less than $1 million, including two loans with Bank of America worth $620,305, and $36,000 owed to a fuel company. Mr. Hubbard, the Times relates, said he would work with the court to show his Madeira Beach company was stable and would "proceed forward serving the fishing community." As reported in the TCR's Thursday Column on August 26, 2010, Florida Fisherman, Inc., filed for Chapter 11 (Bankr. M.D. Fla. No. 10-19926) on August 19, 2010. A copy of the petition is available at http://bankrupt.com/misc/flmb10-19926.pdf GARY DEJOHN: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Gary K. DeJohn ods DeJohn Housemoving Inc. mem GKD LLC 1860 23rd Ave. Greeley, CO 80634 Bankruptcy Case No.: 10-32768 Chapter 11 Petition Date: September 7, 2010 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Michael E. Romero Debtor's Counsel: Gregory S. Bell, Esq. BELL, GOULD & SCOTT PC 322 E. Oak St. Fort Collins, CO 80524 Tel: (970) 493-8999 Fax: (970) 224-9188 E-mail: lfirnett@bell-law.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. GILMORE ERICKSON: Court to Convert Case to Chapter 7 Liquidation ---------------------------------------------------------------- Diane Smith at suite10.com reports that Gilmore Erickson's Delmas Towers condominium development project in San Jose will be in Chapter 7 liquidation effective September 30, 2010. According to the report, the U.S. Bankruptcy Court in the Northern District of California on August 30 decided to convert the Chapter 11 case to Chapter 7. The conversion will be stayed for 15 days, and then the debtor, Gilmore Erickson, who manages the company under several other business names, will have another 15 days to file a schedule of unpaid debts. Erickson's other names that govern the Delmas Towers project are Grandpoint Community Builders, Northpoint Development and Next Group. Gilmore Erickson is the developer of Delmas Tower condominium project. GRAHAM PACKAGING: S&P Affirms 'B' Corporate Family Rating --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Graham Packaging Holdings Co. andits subsidiaries. At the same time, S&P affirmed ratings on the Company's existing senior secured debt, which is rated 'B+', with a recovery rating of '2'. These ratings indicate S&P's expectation of substantial (70% to 90%) recovery in the event of a payment default. S&P also affirmed ratings on the Company's subordinated debt, which is rated 'CCC+' with a recovery rating of '6'. These ratings reflect S&P's expectation for negligible (0% to 10%) recovery in the event of a payment default. In addition, based on S&P's updated recovery analysis, S&P raised its senior unsecured debt rating on Graham to 'B-' from 'CCC+' and revised the recovery rating to '5' from '6'. These ratings reflect S&P's expectation of modest (10% to 30%) recovery in the event of a payment default. Finally, based on preliminary terms and conditions, S&P assigned a senior secured debt rating of 'B+' and a recovery rating of '2' to the proposed $913 million term loan D issued by Graham Packaging Co. L.P. and GPC Capital Corp. I maturing in 2016. This loan consists of the $563 million currently outstanding under Graham's term loan B maturing in October 2011 (which will be repaid with the proceeds) and $350 million of new acquisition financing. S&P also assigned a 'B-' senior unsecured debt rating with a recovery rating of '5' to the proposed $250 million senior unsecured notes due 2018 to be co-issued by Graham Packaging Co. L.P. and GPC Capital Corp. I, which will be used to help fund the Liquid Container acquisition. "The affirmation of our corporate credit rating on Graham and the maintenance of the positive outlook reflect that, despite a slight increase in debt leverage associated with the planned acquisition of Liquid Container, we believe credit measures can strengthen and come into line with our expectations for a modestly higher rating within the next year," said Standard & Poor's credit analyst Cynthia Werneth. In addition, the planned refinancing of Graham's term loan maturing in October 2011 leaves the Company with no significant debt maturities during the next few years. Pro forma for the planned acquisition and refinancing, total adjusted debt will be about $3 billion, with total adjusted debt to EBITDA in the low 5x area and funds from operations (FFO) to total adjusted debt of 11%-12%. S&P currently adjusts debt to include about $120 million of capitalized operating leases, $16 million of accounts receivable financing, as well as $10 million of tax-effected unfunded postretirement and $7 million of tax-effected asset retirement obligations. If Graham can achieve and sustain debt to EBITDA below 5x and FFO to debt above 12%, S&P could raise the ratings by one notch. GRAHAM PACKAGING: Moody's Affirms B2 Rating on $375MM Sub. Notes ---------------------------------------------------------------- Moody's Investors Service revised the ratings outlook for Graham Packaging Company L.P. to stable from developing and affirmed the B2 Corporate Family Rating. Moody's also rated approximately $600 million of new debt issued to finance the recently announced acquisition of Liquid Container, L.P. Moody's took the following rating actions for Graham: * Affirm B2 corporate family rating * Affirm B2 probability of default rating * Affirm SGL-2 speculative grade liquidity rating * Affirm $253 million 8.25% senior unsecured notes due January 1, 2017, Caa1 (LGD 5 - 83% from 82%). * Assign $250 million new senior unsecured notes due 2018, Caa1 (LGD 5 -- 83%) * Affirm $135 million revolver due October 7, 2010, B1 (LGD 3 - 35% from 36%) * Affirm $124.8 million revolver due October 1, 2013, B1 (LGD 3 - 35% from 36%) * Affirm $563.1 million Term Loan B due October 7, 2011, B1 (LGD 3 - 35% from 36%) (To be withdrawn after the transaction is completed) * Affirm $1038.2 million Term Loan C due April 5, 2014, B1 (LGD 3 - 35% from 36%) * Assign $913 million new Term Loan D due 2016, B1 (LGD 3 - 35%) * Affirm $375 million of 9.875% subordinated notes due October 7, 2014, Caa1 (LGD 6 - 94% from 93%) The ratings outlook is revised to stable from developing. On September 7, 2010, Graham Packaging Company Inc. announced that it will issue $250 million of senior unsecured notes due 2018 and $350 million of senior secured term loan D due in 2016. The proceeds will be used to finance the acquisition of Liquid Container and pay transaction fees. The company also announced that lenders agreed to extend the maturity of term loan B to 2016 from 2011 and roll it into the new term loan D. The revision of the outlook to stable from developing reflects the impact of the debt financed acquisition on credit metrics; IPO proceeds and subsequent deleveraging that was lower than anticipated; and the impact of the recent tax sharing agreement on future free cash flow. Pro-forma for the debt financed acquisition, debt to EBITDA will be over 5.0 times, debt to revenue approximately 115%, EBIT interest coverage just over 1.5 times, and free cash flow to debt in the low single digits. Moody's projects that credit metrics will remain in the rating category over the intermediate term, but not improve to levels necessary to warrant an upgrade as outlined in the credit opinion on moodys.com. The B2 Corporate Family Rating reflects Graham's high customer concentration of sales, exposure to discretionary products and low organic growth. Approximately 70% of sales come from the top twenty customers with 20% from the top two. Graham's free cash flow to debt and debt to revenue have historically been weak for the rating category. The company is acquisitive and some acquisitions have been debt financed. The ratings are supported by the company's strong competitive position, large number of co-located facilities and high percentage of sales from custom made products. Graham also has a track record of successful innovation and long standing customer relationships. Approximately one-third of Graham's manufacturing facilities are located on its customers' sites, making it difficult for the customers to easily switch suppliers. The company is expected to continue to pursue higher value new business that offers greater growth potential, higher margins and reduces the concentration of sales as well as seek geographic expansion into faster growing markets. The principal methodologies used in rating Graham Packaging Company L.P. were Global Packing Manufacturers: Metal, Glass, and Plastic Containers published in June 2009, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. GRAHAM PACKAGING: To Borrow $600MM to Acquire Liquid Containers --------------------------------------------------------------- Graham Packaging Holdings Company said in a regulatory filing on September 8 that it has provided information to lenders in connection with its acquisition of Liquid Containers, L.P. On August 9, Graham Packaging Acquisition Corp., a Delaware corporation and a subsidiary of Graham Packaging Holdings Company, entered into a definitive Stock and Unit Purchase Agreement with (a) Liquid Container L.P., a Delaware limited partnership, (b) each of Liquid Container's limited partners and (c) each of the stockholders of (i) Liquid Container Inc., a Delaware corporation, (ii) CPG-L Holdings, Inc., a Delaware corporation, and (iii) WCK-L Holdings, Inc., a Delaware corporation. Pursuant to the Purchase Agreement, Graham Packaging Acquisition Corp. or its wholly owned subsidiaries and/or affiliates will purchase all of the shares from the Stockholders and all of the limited partnership units from the Liquid Container Limited Partners for a purchase price of $568.0 million, plus cash, minus certain indebtedness and subject to a potential net working capital adjustment. Part of the purchase price will be used to repay the outstanding indebtedness of the Liquid Container Entities. Consummation of the Liquid Container Acquisition is subject to several conditions, including the obtaining of certain consents and other customary closing conditions. In addition to the proposed Acquisition, Graham Packaging Company, L.P. is also seeking to refinance the existing $563 million Term Loan B due 2011 and amend various provisions to the existing senior secured credit agreement. In support of the Acquisition, Graham has engaged Deutsche Bank Securities Inc. and Citigroup to act as Joint Lead Arrangers and Joint Bookrunners and Goldman Sachs to act as Co-Manager. The Acquisition will be financed through: * $350 million of Term Loan D; and * $250 million senior unsecured debt. About Graham Packaging Headquartered in York, Pennsylvania, Graham Packaging Holdings Company, -- http://www.grahampackaging.com/-- the parent company of Graham Packaging Company, L.P., is engaged in the design, manufacture and sale of customized blow molded plastic containers for the branded food and beverage, household, automotive lubricants and personal care/specialty product categories. As of the end of June 2008, the company operated 83 manufacturing facilities throughout North America, Europe and South America. The Company's balance sheet for June 30, 2010, showed $2.09 billion in total assets, $368.26 million total current liabilities, $2.20 billion in long term debt, $17.57 million in deferred income taxes, $91.73 million in other non-current liabilities, and a stockholders' deficit of $586.82 million. Graham Packaging carries 'B' issuer credit ratings from Standard & Poor's. GRAY COMMS: Bank Debt Trades at 5% Off in Secondary Market ---------------------------------------------------------- Participations in a syndicated loan under which Gray Communications System, presently known as Gray Television, Inc., is a borrower traded in the secondary market at 94.85 cents-on- the-dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.54 percentage points from the previous week, The Journal relates. The Company pays 150 basis points above LIBOR to borrow under the facility. The bank loan matures on December 21, 2014, and carries Moody's B2 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 217 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Formerly known as Gray Communications System, Atlanta, Georgia- based Gray Television, Inc., is a television broadcast company. Gray currently operates 36 television stations serving 30 markets. Each of the stations are affiliated with either CBS (17 stations), NBC (10 stations), ABC (8 stations) or FOX (1 station). In addition, Gray currently operates 38 digital second channels including 1 ABC, 4 Fox, 7 CW, 16 MyNetworkTV and 1 Universal Sports Network affiliates plus 8 local news/weather channels and 1 "independent" channel in certain of its existing markets. Gray Television carries 'CCC' issuer credit ratings from Standard & Poor's and 'Caa1' corporate family rating from Moody's. GSC GROUP: Proposes October 7 Auction for All Assets ---------------------------------------------------- GSC Group, Inc., et al., ask for authorization from the Hon. Arthur J. Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York to sell all or substantially all of their assets, free and clear of liens, claims encumbrance, and other interests through an auction. The assets consist primarily of the assets owned, held, or used in the Debtors' investment management business, including debt and equity interests in partnerships, limited liability companies and investment vehicles to which the Debtors provide investment management services or serve as general partner, limited partner, member or in a similar capacity. A hearing to consider approval of the proposed bidding procedures is set for September 15, 2010, at 10:00 a.m. (prevailing Eastern Time). Objections are due September 13. The deadline for submission of bids is October 5, 2010. If one or more qualified bids are received by the Debtors, an auction will be held on October 7, 2010, starting at 10:00 a.m. (prevailing Eastern Time). A sale hearing to approve a proposed sale of the assets to one or more successful bidders will take place on October 22, 2010. Bids must include (i) a commitment to close on or before October 25, 2010; (ii) an acknowledgement and representation that the bidder will assume the Debtors' obligations under the executory contracts and unexpired leases proposed to be assigned; (iii) a cash deposit in the amount of the lesser of $1 million and the amount of the bidder's bid (except in the case of a credit bid); (iv) an irrevocable agreement to increase the bidder's deposit to the greater of 10% of the bid price or $1 million (but in no event more than the bid price), within three business days after the bidder is selected as a successful bidder (except in the case of a credit bid); and (v) a provision for liquidated damages in the event of the bidder's breach of contract equal to 50% of the bid price. The initial overbid must have a value of at least 110% of the starting bid following the initial overbid. Subsequent bids must be in such increments as announced by the Debtors for such lot at the start of the relevant auction. Deposits will be returned to each bidder not selected as the successful bidder by no later than the fifth business day following the conclusion of the auction, provided that the interest on the deposit may not be returned until the second business day of the month following the conclusion. A copy of the Bidding Procedures is available for free at: http://bankrupt.com/misc/GSC_salebiddingprocedures.pdf About GSC Group Florham Park, New Jersey-based GSC Group, Inc. -- http://www.gsc.com/-- is a private equity firm specializing in mezzanine and fund of fund investments. It filed for Chapter 11 bankruptcy protection on August 31, 2010 (Bankr. S.D.N.Y. Case No. 10-14653). Michael B. Solow, Esq., at Kaye Scholer LLP, assists the Debtor in its restructuring effort. Epiq Bankruptcy Solutions, LLC, is the Debtor's notice and claims agent. Capstone Advisory Group, LLC, is the Debtor's financial advisor. The Debtor estimated its assets at $1 million to $10 million and debts at $100 million to $500 million. GSI GROUP: Reschedules Shareholder Meeting to November 23 --------------------------------------------------------- GSI Group Inc. has moved its annual meeting of shareholders to November 23, 2010 from its previously scheduled date of September 30. The company expects to set October 18 as the record date for this meeting. The Company also announced that it expects to file its Annual Report on Form 10-K for the year ended Dec. 31, 2009 and Quarterly Reports on Form 10-Q for the fiscal quarters ended April 3, July 3, and October 2, 2009, on or before October 15, 2010, thereby providing shareholders with 2009 financial information prior to the annual meeting. Additionally, the Company expects to file its Quarterly Reports on Form 10-Q for the fiscal quarters ended April 2, July 2, and October 1, 2010, on or before December 31, 2010. The Company also announced that it continues to make progress on its financial performance. For the second quarter of 2010, bookings were approximately $100 million, compared to bookings of approximately $95 million in the first quarter of 2010 and approximately $40 million in the second quarter of 2009. At July 2, 2010, the Company's consolidated backlog was approximately $100 million. The Board of Directors recently retained the executive recruiting firm Lancor Partners LLC to assist in identifying and recruiting a permanent Chief Executive Officer for the Company. Lancor will work with the search committee of the Board with the goal of filling this position by year end. Stephen W. Bershad, GSI's Chairman of the Board said, "While I'm disappointed that the shareholder meeting is being postponed, I am pleased that the shareholders will have access to the Company's 2009 Form 10K prior to the meeting. The quarter's bookings demonstrate the strength of the Company's industry-leading technologies, loyal customer base and talented people. I believe GSI is positioned for long-term profitable growth, delivering quality services to our customers and innovative product initiatives. The Company is committed to improving shareholder value, and will seek to grow its core businesses and focus on efficiencies and integration opportunities." Michael Katzenstein, Principal Executive Officer, said of the results, "We are continuing to win profitable business in highly competitive markets and this quarter demonstrates the strength of our offerings and our operating teams. We emerged from Chapter 11 re-energized due in large part to the hard work and dedication of our employees who worked diligently during the reorganization process and remained focused on providing outstanding value and service to our customers. While we operate in a competitive and dynamic marketplace, we see growth in demand for our products and services, and customer faith in our ability to invent and innovate to their needs. We believe that we are well-positioned--by geography, in our customer segments, and in our key product categories--as our customers increase their technology and infrastructure investments. While many exciting challenges are still ahead, I remain optimistic about GSI's prospects for the future." On July 2, 2010, the Company had cash and cash equivalents of approximately $87.4 million. During the third quarter of 2010, as a result of the Company's emergence from bankruptcy on July 23, 2010, the Company made cash distributions under its court approved plan of reorganization (including payments of accrued interest and principal to its noteholders on account of the pre-petition and post-petition interest, a backstop fee related to its rights offering and professional fees) of approximately $46.3 million. On September 3, 2010, the Company had cash and cash equivalents of approximately $51.1 million (before payment of accrued bankruptcy payments in an amount of approximately $8.6 million). On July 2, 2010, the Company had long-term debt of $210.0 million. During the third quarter of 2010, as a result of the consummation of its court-approved plan with the receipt of proceeds from its rights offering, the Company reduced its long-term debt to $107.0 million as of September 3, 2010. Also, on July 2, 2010 the Company had approximately 48.4 million common shares issued and outstanding. During the third quarter of 2010, as a result of the Company's emergence from bankruptcy, including the completion of its rights offering, the Company had approximately 100.0 million common shares issued and outstanding on September 3, 2010. The bookings and balance sheet data included above have not been reviewed by our auditors and are subject to change as a result of their review as well as the completion of the 2009 audit. Please note that bookings and backlog may not result in revenue, as they are subject to termination or cancellation under certain circumstances. About GSI Group GSI Group Inc. supplies precision technology to the global medical, electronics, and industrial markets and semiconductor systems. GSI Group Inc.'s common shares are quoted on Pink Sheets OTC Markets Inc. (GSIGQ). The Company and two of its affiliates filed for Chapter 11 protection on Nov. 20, 2009 (Bankr. D. Del. Lead Case No. 09- 14110). William R. Baldiga, Esq., at Brown Rudnick LLP, represents the Debtors as lead counsel. Mark Minuti, Esq., at Saul Ewing LLP, as its local counsel. The Debtors selected Garden City Group Inc. as their claims and notice agent. The Debtors disclosed $555,000,000 in total assets and $370,000,000 in total liabilities as of Nov. 6, 2009. GSI Group successfully emerged from Chapter 11 restructuring in July 2010. Under the plan that was confirmed in May, noteholders received 86.1% of the stock of the reorganized company's. GUITAR CENTER: Bank Debt Trades at 11% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Guitar Center, Inc., is a borrower traded in the secondary market at 88.68 cents- on-the-dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.54 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 217 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. Guitar Center carries 'Caa1' corporate family and probability of default ratings from Moody's Investors Service. In December 2009, Moody's said, "The Caa1 Corporate Family Rating reflects Guitar Center's very weak credit metrics, particularly its interest coverage, as a result of its very high level of debt." HARRINGTON WEST: Files for Chapter 11 Bankruptcy Protection ----------------------------------------------------------- Harrington West Financial Group, Inc. filed a voluntary petition to liquidate its assets under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Calif. Case No. 10-14677) on September 10, 2010 . HWFG, the Debtor, continues to operate its business as a debtor in possession under sections 1107(a) and 1108 of the Bankruptcy Code. On August 20, 2010, the Office of Thrift Supervision closed HWFG's subsidiary bank and principal asset, Los Padres Bank, FSB (LPB), and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of LPB. On the same day, the FDIC facilitated the acquisition of most of the loans, some securities, and the assumption of the deposits and various other liabilities of LPB by Pacific Western Bank. HWFG intends to file a liquidating plan within a few months. In the Schedules of Assets and Liabilities filed by HWFG along with the Chapter 11 petition, HWFG reported that its total assets as of the petition date were approximately $579,282, plus a potential tax refund of an unknown amount. Its total liabilities were approximately $26,004,000. HARRISBURG, PA: Commonwealth to Aid City with Expedited Payments ---------------------------------------------------------------- Governor Edward G. Rendell announced this morning that the commonwealth will partner with the City of Harrisburg by providing $4.3 million in expedited payments and economic development assistance and loans. The funds will be used to help the city pay a bond obligation that's due this week and hire a financial management firm to craft a plan to return it to solid financial footing. The Governor was joined at the news conference by Harrisburg Mayor Linda D. Thompson, Representative Ron Buxton, City Council President Gloria Martin-Roberts, PA Housing Finance Agency Executive Director Brian Hudson, and GreenWorks Development CEO Doug Neidich, representing the Harrisburg business community. "This is an investment in a vital Pennsylvania city that is in critical need of the state's help," Governor Rendell said. "In return, I can't stress enough how important it is for the mayor, city council and other Harrisburg officials to improve their working relationships to solve the challenges that they face - challenges that affect not just Harrisburg, but central Pennsylvania." The $4.3 million package includes expedited payments, which were already in process, of $1 million for fire protection and $2.6 million for the annual payment from the Municipal Pension Assistance Fund. Those funds will help the city with its cash flow. The State Treasurer and State Auditor General worked together to expedite these payments to the city. Another $850,000 will help the city hire Scott Balice Strategies, a financial management firm that will work with Mayor Thompson and city council to develop a comprehensive plan for the city's financial stability. The money includes a $500,000 loan to be repaid when the city's financial situation improves. Harrisburg is facing a Sept. 15 deadline to make a $3.3 million payment on a refinanced 1997 debt. Before the Governor's announcement today, the city has said it would not be able to meet its obligation. Governor Rendell said missing the crucial $3.3 million payment is not an option. "Harrisburg's financial future is still very cloudy, and difficult decisions still need to be made to return this city to fiscal stability. Allowing a missed bond payment, however, would not be a good decision," the Governor said. "It would devastate not only the city, but the school district, the county, and Central Pennsylvania's reputation as a great place to live, work, and play." The Governor also stressed that bankruptcy should not be an option for Harrisburg until all other options have been explored and exhausted. The short-term fix for Harrisburg won't change the muni market's perception of the city as a troubled issuer, analysts said, according to Dow Jones Newswires. "Everyone will continue to wait and see what the long-term solutions might be," said Gordon Murray, senior credit analyst at Belle Haven Investments, according to Dow Jones. About Harrisburg, PA The city of 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 roughly $10 million and Harrisburg is responsible for the other $10 million. The city is guarantor on 100% of the $288 million Incinerator debt. As reported by the Troubled Company Reporter on August 19, 2010, Harrisburg hired Scott Balice Strategies to help plot a financial recovery plan. As reported by the TCR on September 7, 2010, Dow Jones' DBR Small Cap said elected officials in Harrisburg met to discuss hiring a bankruptcy adviser and handing over control of their troubled municipal authority to a receiver as the city's fiscal problems mount. As reported by the TCR on September 1, Harrisburg will skip $3.29 million in debt-service payments on general obligation debt from 1997 due Sept. 15. Ambac Assurance Corp., which insures the GO bonds, will meet payments to investors. HARRISBURG, PA: Offers Partial Reimbursement to Ambac ----------------------------------------------------- Dow Jones' DBR Small Cap reports that the fiscally strapped capital city of Harrisburg, Pa., which intends to default on a $3.29 million bond payment this week, is offering to reimburse the bond insurer for some of the cash it will have to lay out on the city's behalf. DBR relates city officials on Thursday met with representatives of Ambac Assurance, a unit of Ambac Financial Group that insured the general-obligation debt and will make the payment to bond holders on Wednesday. According to DBR, Harrisburg has proposed paying the insurer $1.1 million this year, said spokesman Chuck Ardo. Ambac didn't comment. "There was a very frank discussion about the course the city was taking," said Mr. Ardo, who added that there was no resolution made at the meeting. Ambac made it clear it "would like to see payment as due," he said, according to DBR. About Harrisburg, PA The city of 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 roughly $10 million and Harrisburg is responsible for the other $10 million. The city is guarantor on 100% of the $288 million Incinerator debt. As reported by the Troubled Company Reporter on August 19, 2010, Harrisburg hired Scott Balice Strategies to help plot a financial recovery plan. As reported by the TCR on September 7, 2010, Dow Jones' DBR Small Cap said elected officials in Harrisburg met to discuss hiring a bankruptcy adviser and handing over control of their troubled municipal authority to a receiver as the city's fiscal problems mount. As reported by the TCR on September 1, Harrisburg will skip $3.29 million in debt-service payments on general obligation debt from 1997 due Sept. 15. Ambac Assurance Corp., which insures the GO bonds, will meet payments to investors. HARVARD GRAND: Has Until November 9 to Propose Reorganization Plan ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Central District of California extended until November 9, 2010, Harvard Grand Investment, Inc.'s exclusive period to submit a proposed Plan of Reorganization and Disclosure Statement. Carson, California-based Harvard Grand Investment, Inc., a California corporation, filed for Chapter 11 bankruptcy protection on May 28, 2010 (Bankr. C.D. Calif. Case No. 10-31833). David B. Golubchik, Esq., at Levene Neale Bender Rankin & Brill LLP, assists the Debtor in its restructuring effort. The Debtor disclosed $26,309,114 in assets and $23,244,002 in liabilities. HAWKER BEECHCRAFT: Bank Debt Trades at 19% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Hawker Beechcraft is a borrower traded in the secondary market at 80.50 cents-on- the-dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.64 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on March 26, 2014, and carries Moody's Caa1 rating and Standard & Poor's CCC+ rating. The loan is one of the biggest gainers and losers among 217 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Hawker Beechcraft Acquisition Company, LLC, headquartered in Wichita, Kansas, is a leading manufacturer of business jets, turboprops and piston aircraft for corporations, governments and individuals worldwide. Hawker Beechcraft Acquisition Company LLC reported a net loss of $63.4 million on $568.2 million of total sales for the three months ended March 28, 2010, compared with net income of $53.1 million on $537.6 million of sales for the three months ended March 29, 2009. The Company's balance sheet at March 28, 2010, showed $3.41 billion in total assets, $3.36 billion in total liabilities, and stockholders' equity of $56.5 million. HERCULES OFFSHORE: Bank Debt Trades at 13% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Hercules Offshore is a borrower traded in the secondary market at 87.30 cents-on- the-dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.83 percentage points from the previous week, The Journal relates. The Company pays 650 basis points above LIBOR to borrow under the facility. The bank loan matures on July 11, 2013, and carries Moody's B2 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 217 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Hercules Offshore, Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. As reported in the Troubled Company Reporter on June 10, 2010, Standard & Poor's took several rating actions on eight U.S. oil and gas companies, including Hercules Offshore, Inc., following an industry review. S&P reviewed companies with operating exposure to the Gulf of Mexico following the U.S. Department of the Interior's extension of the moratorium on drilling permits. S&P believes that when the moratorium is eventually lifted, there could be extensive delays in issuing new permits due to high initial volume and new safety and operating standards imposed. S&P downgraded Hercules Offshore's rating from (B/Negative/--) to (B-/Negative/--). The rating actions also reflect S&P's heightened concerns about the burgeoning scope of the Macondo well disaster. The flow of oil into the Gulf of Mexico is likely to continue until at least August. Uncertainty about the ultimate remediation cost and potential financial liabilities associated with the disaster has already resulted in a rating downgrade of the corporate credit rating of BP PLC (AA-/Watch Neg/A-1+). HORIZON BANK: Closed; Bank of the Ozarks Assumes All Deposits ------------------------------------------------------------- Horizon Bank of Bradenton, Fla., was closed on Friday, September 10, 2010, by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks in Little Rock, Ark., to assume all of the deposits of Horizon Bank. The four branches of Horizon Bank will reopen during normal banking hours as branches of Bank of the Ozarks. Depositors of Horizon Bank will automatically become depositors of Bank of the Ozarks. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of Horizon Bank should continue to use their existing branch until they receive notice from Bank of the Ozarks that it has completed systems changes to allow other Bank of the Ozarks branches to process their accounts as well. As of June 30, 2010, Horizon Bank had around $187.8 million in total assets and $164.6 million in total deposits. Bank of the Ozarks did not pay the FDIC a premium for the deposits of Horizon Bank. In addition to assuming all of the deposits of the failed bank, Bank of the Ozarks agreed to purchase essentially all of the assets. The FDIC and Bank of the Ozarks entered into a loss-share transaction on $150.4 million of Horizon Bank's assets. Bank of the Ozarks will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-405-1439. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/horizonfl.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $58.9 million. Compared to other alternatives, Bank of the Ozarks' acquisition was the least costly resolution for the FDIC's DIF. Horizon Bank is the 119th FDIC-insured institution to fail in the nation this year, and the twenty-third in Florida. The last FDIC-insured institution closed in the state was Community National Bank at Bartow, Bartow, on August 20, 2010. HOVNANIAN ENTERPRISES: Incurs $72.8MM Net Loss in July 31 Qtr. -------------------------------------------------------------- Hovnanian Enterprises Inc. filed its quarterly report on Form 10-Q, with the Securities and Exchange Commission. The Company incurred a net loss of $72.85 million on total revenues of $380.6 million in three months ended July 31, 2010, compared with a net loss of $168.91 million on total revenues of $387.11 million in the same period in 2009. The Company's balance sheet at July 31, 2010, showed $1.91 billion in total assets, $2.12 billion in total liabilities, and a stockholders' deficit of $207.43 million. A full-text copy of the quarterly report on Form 10-Q is available for free at http://ResearchArchives.com/t/s?6b15 A full-text copy of the Company's earnings release is available for free at http://ResearchArchives.com/t/s?6ac8 About Hovnanian Enterprises Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV) -- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian, is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes. * * * Hovnanian has a 'CCC' issuer default rating from Fitch Ratings. In April 2010, Fitch said, "While Fitch expects somewhat better prospects for the housing industry this year, the Rating Outlook for HOV remains Negative given the challenges still facing the housing market, which are likely to meaningfully moderate the early stages of this recovery, and the company's still substantial debt position and high leverage." HUGHES ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Hughes Enterprises, Inc. aka Hooters of Renton 760 Village Center Drive, Suite 200 Burr Ridge, IL 60527 Bankruptcy Case No.: 10-40096 Chapter 11 Petition Date: September 7, 2010 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Bruce W. Black Debtor's Counsel: William J. Factor, Esq. THE LAW OFFICE OF WILLIAM J. FACTOR, LTD 1363 Shermer Road, Suite 224 Northbrook, IL 60062 Tel: (847) 239-7248 Fax: (847) 574-8233 E-mail: wfactor@wfactorlaw.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/ilnb10-40096.pdf The petition was signed by Gary Grasso, vice president - Legal. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Rascals Casinos LLC 10-40083 09/07/10 HUNTSMAN ICI: Bank Debt Trades at 5% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which Huntsman ICI is a borrower traded in the secondary market at 94.83 cents-on-the- dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.52 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 April 23, 2014, and carries Moody's Ba2 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 217 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Huntsman Corp. -- http://www.huntsman.com/-- is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman has more than 12,000 employees and operates from multiple locations worldwide. The Company had 2008 revenues exceeding $10 billion. In March 2010, Moody's Investors Service affirmed the debt ratings of Huntsman Corporation (B1 Corporate Family Rating) and Huntsman International LLC, a subsidiary of Huntsman. INERGY: Tres Palacios Acquisition Cues S&P to Revise Outlook ------------------------------------------------------------ Standard & Poor's Ratings Services revised the outlook on Inergy to stable from positive following its announced acquisition of the Tres Palacios natural gas storage facility. At the same time, S&P affirmed the 'BB-' corporate credit rating and 'B+' senior unsecured issue rating on Inergy. The recovery rating of '5' remains unchanged. As of June 30, 2010, Inergy had total debt, adjusted for operating leases and self-insurance reserves, of $1.3 billion. The outlook revision reflects S&P's view that the partnership's total adjusted debt to EBITDA pro forma for the acquisition will be higher than S&P's initially assumed when S&P revised its outlook to positive in March 2010. While S&P recognizes that the partnership is raising about $350 million of net equity to fund the acquisition, the transaction will be leveraging due to the limited cash flows that Tres Palacios is now generating. On the positive side, about 90% of the current 27.1 billion cubic feet of capacity is under firm agreements with gas distribution companies and marketers that have weighted average rating of 'BBB'. In addition, S&P views the partnership's plans to merge with its general partner, Inergy Holdings L.P., as generally supportive of credit because it simplifies the corporate structure and will reduce its cost of capital by eliminating the incentive distributions rights. ISE CORPORATION: U.S. Trustee Forms 5-Member Creditors Committee ---------------------------------------------------------------- Tiffany L. Carroll , U.S. Trustee for Region 15, appointed five members to the official committee of unsecured creditors in the Chapter 11 case of ISE Corporation. The Creditors Committee members are: 1. Suntron Corporation Attn: Jeff Wanago 2401 West Grandview Phoenix, AZ 85023 Tel: (602) 282-5053 Fax: (602) 282-1275 E-mail: Jeff.wanago@suntroncorp.com 2. Second Star Inc. Attn: Jennifer Rey 11556 Alkaid Drive San Diego, CA 92126 Tel: (858) 220-8893 Fax: (858) 368-9324 E-mail: Jenrey@secondstarinc.com 3. RR Donrelly Receivables, Inc. Attn: Dan Pevonka 3075 Highland Parkway Downers Grove, IL 60515 Tel: (630) 322-6931 E-mail: dan.peconka@rd.com 4. Ballard Power Systems Attn: Kerry Hillier 9000 Glenlyon Parkway Burnaby British Columbia Canada V5J 5J8 Tel: (604) 453-3529 Fax: (604) 412-4716 E-mail: Kerry.hillier@ballard.com 5. Wrightbus, Ltd. Attn: Mark Nodder Galgorm Ind Estate Fenaghy Road Galgorm Ballymena, BT 42 IPY GB Tel: +44 (0)(282) 564-1212 Fax: +44 (0)(282) 566-3030 E-mail: marrk.nodder@wright-bus.com 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. ISE Corporation, a California corporation, fka ISE Research Corporation, is the operating subsidiary of Ise Limited. ISE Corp -- http://www.isecorp.com/ -- makes drive train systems for hybrid gasoline/electric buses. Established in 1995, ISE is headquartered in San Diego, California. It filed for Chapter 11 protection on August 10, 2010 (Bankr. S.D. Calif. Case No. 10- 14198). Marc J. Winthrop, Esq., at Winthrop Couchot Professional Corp, assists the Debtor in its restructuring effort. The Debtor estimated its assets at $10 million to $50 million and its debts at $10 million to $50 million as of the Petition Date. JANICE BECKER: Court Approves Alter Goldman as Bankruptcy Counsel ----------------------------------------------------------------- The Honorable Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York authorized Janice Marie Becker to employ Alter, Goldman & Brescia, LLP as her bankruptcy counsel. The firm will represent the Debtor in the Chapter 11 proceedings. Bruce R. Alter, a member of Alter Goldman, assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. New York-based Janice Marie Becker filed for Chapter 11 protection on August 11, 2010 (Bankr. S.D.N.Y. Case No. 10-14314). Dana Patricia Brescia, Esq., at Alter, Goldman & Brescia, LLP, assists the Debtor in her restructuring effort. The Debtor estimated her assets at $10 million to $50 million and her debts at $1 million to $10 million as of the Petition Date. JANICE BECKER: Files List of 20 Largest Unsecured Creditors ----------------------------------------------------------- Janice Marie Becker filed with the U.S. Bankruptcy Court for the Southern District of New York a list of its largest unsecured creditors, disclosing: Entity Nature of Claim Claim Amount ------ --------------- ------------ Saks Fifth Avenue Consumer Credit $20,183 P.O. Box 17157 Baltimore, MD 21297-1157 HSBC Mastercard Consumer Credit $1,639 P.O. Box 80029 Salinas, CA 93912-0029 New York-based Janice Marie Becker filed for Chapter 11 protection on August 11, 2010 (Bankr. S.D.N.Y. Case No. 10-14314). Dana Patricia Brescia, Esq., at Alter, Goldman & Brescia, LLP, assists the Debtor in her restructuring effort. The Debtor estimated her assets at $10 million to $50 million and her debts at $1 million to $10 million as of the Petition Date. JANICE BECKER: Files Schedules of Assets and Liabilities -------------------------------------------------------- Janice Marie Becker filed with the U.S. Bankruptcy Court for the Southern District of New York its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $10,750,000 B. Personal Property $35,323 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $8,385,000 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $21,822 ----------- ----------- TOTAL $10,785,323 $8,406,822 New York-based Janice Marie Becker filed for Chapter 11 protection on August 11, 2010 (Bankr. S.D.N.Y. Case No. 10-14314). Dana Patricia Brescia, Esq., at Alter, Goldman & Brescia, LLP, assists the Debtor in her restructuring effort. The Debtor estimated her assets at $10 million to $50 million and her debts at $1 million to $10 million as of the Petition Date. JAVA DETOUR: Files Voluntary Petition for Chapter 11 ---------------------------------------------------- Java Detour Inc. and its wholly owned subsidiary JDCO Inc. filed voluntary petitions on September 9, 2010 for reorganization under Chapter 11 of the U. S. Bankruptcy Code with the U. S. Bankruptcy Court in San Francisco, California. The protection of Chapter 11 allows the Companies to reorganize their business operations and finances. The Companies plan to use existing cash, revenue generated from certain business activities, the sale of certain assets, and post-petition financing to finance operations and continue their domestic and international store expansion. Harry R. Kraatz, the Companies' Chief Restructuring Officer and recently appointed Chairman and Chief Executive Officer, stated, "The filing is a proactive step for the Companies. We believe that the filing is in the best interests of all the creditors and stakeholders. It provides an opportunity to restructure the Companies' balance sheets, reduce costs, implement a revised strategic plan and position the entities for new business opportunities." The Chapter 11 filing will be seamless to customers and franchisees, who will continue to receive our great products, including gift cards and customer service without interruption. All of the companies' post-petition obligations to vendors will be paid promptly in the normal course of business. Employees will continue to receive full salary, health and welfare benefits without interruption, Kraatz stated. Mr. Kraatz also announced that the law firm of Manasian & Rougeau LLP has been retained as the Companies' reorganization counsel. The Chapter 11 case number assigned by the United States Bankruptcy Court for the Northern District of California for Java Detour's reorganization proceeding is 10-33530; the case number assigned for JDCO Inc.'s reorganization proceeding is 10-33531. The Companies, through their counsel, expect the cases to be jointly administered. JBS USA: Fitch Rates Proposed Reopening of Sr. Notes at 'BB-' ------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating to the proposed reopening of JBS's 8.25% notes due Jan. 29, 2018. This add-on issuance is expected to raise at least US$300 million and the proceeds are expected to be used to refinance shorter maturity indebtedness and for general corporate purposes. The notes will be issued by JBS Finance II Ltd., a special-purpose vehicle wholly owned by JBS and incorporated in the Cayman Island, and is unconditionally guaranteed by JBS and its subsidiary JBS Hungary Holdings Kft. Fitch currently rates JBS: -- Local currency Issuer Default Rating (IDR) 'BB-'; -- Foreign currency IDR 'BB-'; -- Senior unsecured notes 'BB-'; -- Long-term national scale rating 'A-(bra)'. The Rating Outlook of the corporate ratings is Stable. JBS's ratings are supported by its strong global business position, the result of numerous acquisitions including Pilgrim's Pride Co and Bertin. The ratings take into consideration the commodity and cyclical risks associated with the meat business, the company's high financial leverage and negative free cash flow, which are partially mitigated by its strong liquidity position and manageable debt amortization profile. Geographic and Product Diversification Strengthen Business Profile: JBS has a strong business position due to a number of acquisitions that have improved its product portfolio and geographic presence. These factors should enable the company to better withstand cyclical downturns in the industry. They should partially mitigate risks related to disease, the imposition of sanitary restrictions by governments, market concentrations, as well as tariffs or quotas applied regionally by some importing blocs or countries. The recent acquisitions of PCC and Bertin have solidified JBS's position as the largest producer and exporter of fresh meat and meat by-products in Brazil, Argentina and Australia and as the third largest in the U.S. These acquisitions have also enabled JBS to become one of the leading processors of leather and have enhanced the company's position in the Brazilian dairy sector. Free Cash Flow, Leverage are Expected to Improve: JBS's capital structure continues to be leveraged with pro forma June 2010 LTM total debt/EBITDA and net debt/EBITDA of 4.5 times (x) and 3.0x, respectively. While the rapid expansion of the company has been financed by a combination of debt and equity, strong working capital needs have resulted in increasing outstanding debt in recent years, and also resulting in negative FCF; in June 2010 LTM, FCF remained negative. Fitch expects the improving EBITDA generation to result in net leverage reduction to levels consistently below 3.0x in 2011 as the consolidation of these new assets is expected to strengthen the consolidated profitability of JBS through synergies of about BRL950 million. Fitch expects FCF will improve, while the company consolidates the recent acquisitions, reduces its costs and improves the profitability, allowing the company to reduce debt and strengthen liquidity. The company's liquidity is supported by BRL3.5 billion of cash and marketable securities. In June 2010, short-term debt was BRL5.2 billion (or 30% of the total debt) and corresponded mainly to outstanding trade finance lines. The availability of about US$1 billion in revolving credit lines at JBS USA and PPC also enhances JBS' liquidity and mitigate refinancing risk. JBS's track record of integration of new acquired assets is solid despite of the challenges to combining new operations. The company has successfully consolidated prior acquisitions such as Swift, Tasman Group and Smithfield Beef in 2007 and 2008 as well as its joint venture with Inalca in 2008. JBS completed the acquisition of PPC's shares for US$800 million, and the merger with Bertin for an exchange of shares both during December 2009. Total combined revenue of BRL53 billion and BRL3.3 billion in EBITDA is expected. Key Rating Drivers: JBS's rating could be positively affected by some combination of the following: a significant decrease in leverage, generation of positive FCF, completion of its planned growth strategy via acquisitions, reduction of the company's heavy reliance in short- term debt and further revenue diversification. A rating downgrade could be triggered by a deterioration or lack of improvement in the company's leverage, or by a low level of cash liquidity, an inability to roll over short-term credit lines, a continuation of negative FCF generation and/or a significant deterioration of operations due to trade restrictions or sanitary outbreaks. JOSEPH BURALLI: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Joseph A. Buralli 2222 Cuhlman Road McHenry, IL 60051 Bankruptcy Case No.: 10-74494 Chapter 11 Petition Date: September 8, 2010 Court: United States Bankruptcy Court Northern District of Illinois (Rockford) Judge: Manuel Barbosa Debtor's Counsel: Steven J. Brody, Esq. BRODY & GRAY LLC 15 W. Woodstock St. Crystal Lake, IL 60014 Tel: (815) 479-8800 Fax: (815) 479-8880 E-mail: sjbrody@brody-gray.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. JPMCC 2002-CIBC4: Bankruptcy Judge Dismisses Chapter 11 Case ------------------------------------------------------------ Francisco Vara-Orta, staff writer at Austin Business Journal, reports that a bankruptcy judge dismissed the Chapter 11 bankruptcy case of Highland Mall at the behest of the Company's tenant, Dillard's. The judge said the Company's attempt to reorganize debt was too premature for a bankruptcy proceeding and a clear result of the Company's owners avoiding two litigation battles -- (1) a dispute with Dillard's over the store wanting to break its lease because of Highland Mall's physical decline (ii) and a lawsuit against an AIG affiliate, American General Life and Accident Insurance Co., over a ground lease. AIG supported Dillard's in its motion for dismissal of the Chapter 11 case. JPMCC 2002-CIBC4 Highland Retail, LLC, is the owner of the Highland Mall in Austin, Texas. Highland Mall, opened in 1971, was the first enclosed, air-conditioned mall in Austin. It is owned by a pass-through trust for which Wells Fargo Bank NA serves as trustee. JPMCC 2002-CIBC4 filed for Chapter 11 bankruptcy protection on May 12, 2010 (Bankr. W.D. Tex. Case No. 10-11331). Charles R. Gibbs, Esq., at Akin, Gump, Strauss, Hauer, & Feld, assists the Debtor in its restructuring effort. The Company estimated $10 million to $50 million in assets, and $500,001 to $1 million in debts in its Chapter 11 petition. LAKERIDGE CENTRE: Case Summary & 8 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Lakeridge Centre Office Complex, LP 6100 Plumas Street Reno, NV 89519 Bankruptcy Case No.: 10-53612 Chapter 11 Petition Date: September 8, 2010 Court: U.S. Bankruptcy Court District of Nevada (Reno) Judge: Gregg W. Zive Debtor's Counsel: Alan R. Smith, Esq. 505 Ridge Street Reno, NV 89501 Tel: (775) 786-4579 E-mail: mail@asmithlaw.com Estimated Assets: $10,000,000 to $50,000,000 Estimated Debts: $10,000,000 to $50,000,000 The petition was signed by Nathan L. Topol, general partner. Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- West Shore Resort Properties III, LLC 10-51101 03/30/10 West Shore Resort Properties, LLC 10-50506 02/22/10 Lakeridge Centre's List of Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Berkadia Commercial Mortgage 6005 Plumas Street, $6,169,658 118 Welsh Road Reno, NV; Office Horsham, PA 19044 Building First Independent Bank Vacant Real $5,087,231 P.O. BOX 11100 Properties Reno, NV 89510 Topol, Nathan L. Entitlement $867,685 6100 Plumas Street Expenses Reno, NV 89519 Ward Young Goods/Services $23,919 Washoe County Treasurer Real Property $18,502 Taxes Washoe County Treasurer Real Property $15,188 Taxes Morris Peterson Goods/Services $12,627 Jones Vargas Goods/Service s $6,860 LAS VEGAS SANDS: Bank Debt Trades at 9% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Las Vegas Sands Corp. is a borrower traded in the secondary market at 90.89 cents- on-the-dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.85 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 217 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. LOCAL INSIGHT: Sept. 10 Call Cancelled; Parent Mulls Restructuring ------------------------------------------------------------------ On September 8, 2010, Local Insight Media Holdings, Inc., the indirect parent of Local Insight Regatta Holdings, Inc., announced that it has engaged Lazard Freres & Co LLC as a financial advisor to assist in the evaluation of LIMH's capital structure, including balance sheet restructuring options. LIMH also announced that it plans to initiate discussions with certain of its creditors about amending, refinancing or restructuring certain of its debt obligations. Local Insight Regatta Holdings Inc. cancelled its second quarter conference call for investors, which was originally scheduled for Sept. 10, 2010. About Local Insight Headquartered in Englewood, Colorado, Local Insight Regatta Holdings -- http://www.localinsightregattaholdings.com/ -- is a publisher of print and online yellow page directories in the United States. * * * Local Insight Regatta carries 'CCC-' ratings from Standard & Poor's Services. In August 2010, when S&P lowered the ratings to 'CCC-' from 'CCC+', S&P said, "The rating downgrade reflects S&P's belief that the consolidated group of Local Insight Media companies will be challenged to service its current capital structure, given S&P's performance expectations, as well as covenant tightness and other liquidity pressures at various operating subsidiaries. S&P believes that credit measures of the consolidated group will continue to deteriorate over the near term at an accelerated pace, resulting in S&P's expectation for a deterioration of interest coverage to just over 1.0x by the end of 2010 and to 1.0x in 2011. M-WISE INC: Posts $230,200 Net Loss in June 30 Quarter ------------------------------------------------------ m-Wise, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $230,256 on $621,609 of revenue for the three months ended June 30, 2010, compared with a net loss of $62,352 on $681,816 of revenue for the same period last year. As at June 30, 2010, and December 31, 2009, the Company had a working capital deficit of $470,579 and $381,116, respectively. The Company's balance sheet at June 30, 2010, showed $1.0 million in total assets, $1.5 million in total liabilities, and a stockholders' deficit of $533,904. As reported in the Troubled Company Reporter on March 15, 2010, SF Partnership LLP, Chartered Accounts, in Toronto, Canada, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted of the Company's recurring losses from operations. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b0a About m-Wise, Inc. Based in Herzeliya Pituach, Israel, m-Wise, Inc. is a Delaware corporation that develops interactive messaging platforms for mobile phone-based commercial applications, transactions, and information services with internet billing capabilities. The Company's wholly-owned subsidiaries are: m-Wise Ltd., which is located in Israel and was incorporated in 2000 under the laws of Israel; and m-Wise Tecnologia LTDA., which is located in Brazil and was incorporated in 2009 under the laws of Brazil. MARVKY CORPORATION: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Marvky Corporation 4420 FM 1960 West, Suite 224 Houston, TX 77068 Bankruptcy Case No.: 10-37786 Chapter 11 Petition Date: September 6, 2010 Court: U.S. Bankruptcy Court Southern District of Texas (Houston) Judge: Marvin Isgur Debtor's Counsel: John Akard, Jr., Esq. JOHN AKARD JR. P.C. 7500 San Felipe, Suite 700 Houston, TX 77063 Tel: (832) 237-8600 Fax: (832) 237-8610 E-mail: johnakard@attorney-cpa.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Chowdary "Charlie" Yalamanchili, president. The Company did not file a list of creditors together with its petition. MERUELO MADDUX: Court Rebuffs East West Bank Hostile Takeover Plan ------------------------------------------------------------------ Meruelo Maddux Properties said that the disclosure statement explaining a proposed competing plan by East West Bancorp (EWBC), effectively amounting to a hostile takeover of Meruelo Maddux Properties, was not approved by presiding Judge Kathleen Thompson, determining the EWBC Disclosure Statement to be insufficient. EWBC's filing is another in a string of delays caused by the community bank. According to Pasadena Star-News, the reorganization plan proposed by East West and Legendary Investors is designed to de-leverage the Company and "create an operating entity which reliably delivers positive net operating income from stabilized assets," according to the bank's disclosure statement. The Plan's foundation is an $80 million recapitalization via a $5 million cash infusion by Legendary, conversion of about $65 million of debt to equity and a $10 million rights offering to holders of Meruelo Maddux existing common stock. "Despite yet another delay caused by East West Bank, Meruelo Maddux Properties will continue on its path to complete its bankruptcy reorganization as expeditiously as possible," said Chairman and Chief Executive Officer Richard Meruelo. "The reorganization plan submitted by MMPI has already been approved so there is no need to proceed with a half-baked plan that attempts to take MMPI over. East West's efforts are not in the best interest of our company nor in the best interest of MMPI's creditors." Last month MMPI's Disclosure Statement was approved in court, paving the way to repay all of its creditors. Of particular note, MMPI's reorganization plan includes a 100% payment to all creditors of the company. Through its Disclosure Statement, EWBC is attempting to convert its real estate loans into approximately 70 to 80 percent of the reorganized MMPI, in lieu of receiving 100% of its loans repaid, including interest. Taking such a predatory action -- converting real estate debt of one of its customers into a controlling interest of that company -- is a move lawyers involved in the case have never seen a community bank like East West Bancorp take. EWBC also appears to be proposing it use TARP money obtained by the federal government as a part of its effort to complete its hostile takeover of MMPI, despite being unable to repay more than $306 million in bailout money back to the federal government. EWBC also received nearly $300 million in additional bailout money of United Commercial Bank, which it acquired as part of an FDIC subsidized bank bailout. "As a taxpayer, I am offended that East West would try to use federal TARP money, which is supposed to be used to help consumers, to help finance its hostile takeover attempt of Meruelo Maddux Properties. Rather than use taxpayer money in real estate speculation, East West ought to repay its debt to taxpayers and use the balance to help small business owners flourish instead of try to take them over," concluded Meruelo. 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. MICHAELS STORES: Bank Debt Trades at 5% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Michaels Stores, Inc., is a borrower traded in the secondary market at 94.94 cents- on-the-dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.53 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 Oct. 31, 2013, and carries Moody's B2 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 217 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Michaels Stores Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $1 million for the quarter ended July 31, 2010, compared to net income of $2 million for the quarter ended August 1, 2009. The Company had net sales of $831 million for the quarter ended July 31, 2010 compared with $807 million during the comparable period in 2009. The Company's balance sheet at July 31, 2010, showed $1.58 billion in total assets, $4.34 billion in total liabilities, and a stockholders' deficit of $2.75 billion. Headquartered in Irving, Texas, Michaels Stores, Inc., is the largest arts and crafts specialty retailer in North America. As of March 9, 2009, the Company operated 1,105 "Michaels" retail stores in the United States and Canada and 161 Aaron Brothers Stores. MINSTER INSURANCE: Chapter 15 Recognition Order Entered ------------------------------------------------------- The Honorable Allan L. Gropper entered and order on Sept. 1, 2010, recognizing proceedings currently pending before the High Court of Justice of England and Wales since 2009 concerning Minster Insurance Company Limited and Malvern Insurance Company Limited as the foreign main proceeding. Entry of this order means that creditors' claims will be classified and treated as described in the companies' scheme of arrangement approved by the U.K. court. Minster Insurance Co. and Malvern Insurance Company Limited sought protection under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case Nos. 10-13899 and 10-13900 on July 19, 2010. The Petitioner estimated the insurers' assets at more than $100 million at the time of the filing. The Petitioner's U.S. Counsel is: Gary S. Lee, Esq. Kathleen E. Schaaf, Esq. MORRISON & FOERSTER LLP 1290 Avenue of the Americas New York, NY 10104 Telephone: (212) 469-7900 E-mail: glee@mofo.com kschaaf@mofo.com According to Bloomberg News, Minster and Malvern are insurance and reinsurance companies that no longer write new business. Both companies are based in London and their assets are primarily located in England. "The ultimate goal of each of the companies is to satisfy the claims" of creditors and "conclude the business of the companies sooner" than would be the case outside of bankruptcy, James Lee Saitch, the foreign representative for Minster and Malvern, said in court papers, according to Bloomberg. MOLECULAR INSIGHT: Gets Sept. 17 Extension of Waiver Agreement -------------------------------------------------------------- Molecular Insight Pharmaceuticals, Inc. has received a ninth extension of its waiver agreement with its Bond holders, allowing debt restructuring discussions to continue. Earlier this year, Molecular Insight executed the waiver agreement and subsequent amendments with holders of the Company's outstanding Senior Secured Bonds and the Bond Indenture trustee and announced ongoing discussions with the Bond holders concerning a restructuring of its outstanding debt. Under terms of the ninth extension announced today, the Bond holders and Bond Indenture trustee agreed to extend the waiver of a default arising from the inclusion of a going concern explanatory paragraph in the independent auditor's report on the Company's financial statements for the year ended December 31, 2009, any default arising from the Company's failure to comply with the minimum liquidity requirements set forth in the Bond Indenture, and other technical defaults under the Bond Indenture. The term of the waiver is extended until 12:00 PM Eastern Standard Time on September 17, 2010. During this waiver extension period, the Company will continue to discuss with its Bond holders various proposals which generally contemplate, among other things, a deleveraging of the Company through a debt for equity exchange. There are no assurances, however, that such discussions will be successful. The waiver continues to be subject to a number of terms and conditions relating to the provision of certain information to the Bond holders, among other conditions and matters. In the event that the waiver expires or terminates prior to the successful conclusion of the Company's negotiations with its Bond holders regarding the restructuring of its outstanding debt, the Company will be in default of its obligations under the Indenture and the Bond holders may choose to accelerate the debt obligations under the Indenture and demand immediate repayment in full and seek to foreclose on the collateral supporting such obligations. If the Company's debt obligations are accelerated or are not restructured on acceptable terms, it is likely the Company will be unable to repay such obligations and may seek protection under the U.S. Bankruptcy Code or similar relief. About Molecular Insight Cambridge, Mass.-based Molecular Insight Pharmaceuticals, Inc. (NASDAQ: MIPI) -- http://www.molecularinsight.com/-- is a clinical-stage biopharmaceutical company and pioneer in molecular medicine. The Company is focused on the discovery and development of targeted therapeutic and imaging radiopharmaceuticals for use in oncology. Molecular Insight has five clinical-stage candidates in development. Molecular Insight had assets of $49.39 million against debts of $193 million, mostly current, as of June 30, 2010. As reported in the Troubled Company Reporter on March 17, 2010, Deloitte & Touche LLP 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 of the Company's difficulties in meeting its bond indenture covenants and its recurring losses from operations. Molecular Insight inked with bondholders a waiver agreement that expires August 16, 2010. The bondholders agreed to waive a default arising from the inclusion of a going concern explanatory paragraph in the 2009 financial statements and other technical defaults under the bond indenture. The Company said that if its debt obligations are accelerated following termination of the waiver agreement or the debts are not restructured on acceptable terms, it is likely the Company will be unable to repay such obligations and may seek protection under the U.S. Bankruptcy Code or similar relief. MONDRIAN TTL: Access to Prepetition Lenders' Cash Expires Today --------------------------------------------------------------- The Hon. Randolph J. Haines of the U.S. Bankruptcy Court for the District of Arizona will consider at a hearing today, September 14, 2010, at 10:30 a.m., the request of Mondrian TTL, L.L.C., and Grigio TTL, L.L.C., to access cash securing obligation to their prepetition lenders. The Court previously authorized the Debtors to use the cash collateral to fund their Chapter 11 case, pay suppliers and other parties until September 14. The Court did not authorize the Debtors to pay $3,463 per pay period in the detail category shared services. Picerne/Key has not consented to reimbursement of charges from Gray Services L.L.C. for shared services used by Mondrian and other Gray company apartment projects. As reported in the Troubled Company Reporter on May 27, 2010, Mondrian's principal secured debt is $62,675,000, collateralized by a first priority security interest in the Apartment Building. The lenders were KeyBank and TPG (Grigio) Note Acquisition, LLC, as successor-in-interest to KeyBank. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the prepetition lenders replacement liens on all property and assets of Debtors. The Debtors will also deposit and segregate all cash, postpetition revenue, and account proceeds in separate bank accounts maintained and serving as a debtor-in-possession bank account, with a tenant security deposit account continuing to be segregated from other accounts. The Debtors may withdraw funds from the debtor-in- possession accounts as necessary to pay operating and essential expenses. About Mondrian TTL Phoenix, Arizona-based Mondrian TTL, L.L.C., dba Mondrian Tempe Town Lake, owns the leasehold interest in an apartment complex known as Grigio Tempe Town Lakes, in Tempe, Arizona, and is affiliated with multiple entities owned by Bruce Gray or entities he controls. The Company filed for Chapter 11 bankruptcy protection on May 9, 2010 (Bankr. D. Ariz. Case No. 10-14140). Susan M. Freeman, Esq., at Lewis and Roca, assists the Company in its restructuring effort. The Company estimated assets and debts at $50 million to $100 million. MONDRIAN TTL: Files Schedules of Assets and Liabilities ------------------------------------------------------- Mondrian TTL, L.L.C., filed with the U.S. Bankruptcy Court for the District of Arizona its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $70,000,000- $78,000,000 B. Personal Property $5,499,618 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $72,514,588 E. Creditors Holding Unsecured Priority Claims $127,793 F. Creditors Holding Unsecured Non-priority Claims $12,416,218 ----------- ----------- TOTAL $75,499,618- $85,058,599 $83,499,618 A full-text copy of the schedules are available for free at: http://bankrupt.com/misc/MONDRIANTTL_SAL.pdf About Mondrian TTL Phoenix, Arizona-based Mondrian TTL, L.L.C., dba Mondrian Tempe Town Lake, owns the leasehold interest in an apartment complex known as Grigio Tempe Town Lakes, in Tempe, Arizona, and is affiliated with multiple entities owned by Bruce Gray or entities he controls. The Company filed for Chapter 11 bankruptcy protection on May 9, 2010 (Bankr. D. Ariz. Case No. 10-14140). Susan M. Freeman, Esq., at Lewis and Roca, assists the Company in its restructuring effort. The Company estimated assets and debts at $50 million to $100 million. MONDRIAN TTL: Plan Proposes Sale of Mondrian Project to Pay Claims ------------------------------------------------------------------ Mondrian TTL, L.L.C., and Grigio TTL, L.L.C., submitted to the U.S. Bankruptcy Court for the District of Arizona 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 Debtors propose to sell the Mondrian project and distribute the proceeds, resulting in full payment of Picerne/Key and full payment of the prepetition claim amount plus reasonable attorneys' fees of the City of tempe, full payment of trade creditors extending new trade credit, and a distribution to Picerne/Babson and other unsecured creditors. GDG Enterprises, LLC, is also extending to Picerne/Babson and any Class 5 creditors an investment opportunity, whereby they can invest in the project as non-managing members of a Delaware Investors LLC non-managing member of GDG Grigio Tempe Towm Lake LLC. The Plan separately classifies and treat claims and interests in Mondrian and Grigio. Under the Plan, unsecured vendor claims against Mondrian will be paid in full without in interest with funds received by Mondrian from the purchaser. Other unsecured claims against Mondrian will receive pro rata with Picerne/Babson via a distribution of $150,000 eceived by Mondrian from the purchaser. Unsecured claims against Grigio will be waived. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/MOndrianTTL_AmendedDS.pdf About Mondrian TTL Phoenix, Arizona-based Mondrian TTL, L.L.C., dba Mondrian Tempe Town Lake, owns the leasehold interest in an apartment complex known as Grigio Tempe Town Lakes, in Tempe, Arizona, and is affiliated with multiple entities owned by Bruce Gray or entities he controls. The Company filed for Chapter 11 bankruptcy protection on May 9, 2010 (Bankr. D. Ariz. Case No. 10-14140). Susan M. Freeman, Esq., at Lewis and Roca, assists the Company in its restructuring effort. The Company estimated assets and debts at $50 million to $100 million. MYONG KIM: Case Summary & 11 Largest Unsecured Creditors -------------------------------------------------------- Joint Debtors: Myong Chun Kim So Y. Kim 432 Kingsford Drive Moraga, CA 94556-2125 Bankruptcy Case No.: 10-70305 Chapter 11 Petition Date: September 8, 2010 Court: United States Bankruptcy Court Northern District of California (Oakland) Judge: Edward D. Jellen Debtor's Counsel: H. Kenneth Ahn, Esq. LAW OFFICES OF H. KENNETH AHN 1426 Fillmore St. #305 San Francisco, CA 94115 Tel: (415) 474-8160 E-mail: ahnlawfirm@yahoo.com Scheduled Assets: $2,406,325 Scheduled Debts: $2,574,315 A list of the Joint Debtors' 11 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb10-70305.pdf NAVISTAR INT'L: Reports $137 Million Net Income for 3rd Qtr. ------------------------------------------------------------ Navistar International Corporation reported net income of $137 million on $3.162 billion of sales for three months ended July 31, 2010, compared with a net loss of $12 million on $2.506 billion of revenues for the fiscal third quarter of 2009. The Company's balance sheet at July 31, 2010, showed $9.418 billion in total assets, $10.458 billion in total liabilities, and a $1.049 billion stockholders' deficit. "Third-quarter results showed a continuation of the company's ability to be profitable in difficult economic conditions. Beyond strong military sales, we saw improved performance from our core businesses in truck, engine and particularly service parts," said Daniel C. Ustian, Navistar chairman, president and chief executive officer, in an earnings release. Even though the industry continues at a nearly 50-year low, net income attributable to Navistar or the third quarter ended July 31, 2010, totaled $137 million, equal to $1.83 of diluted earnings per share. Revenues for the third quarter totaled $3.2 billion. Net loss for the third quarter a year ago was $12 million, equal to $0.16 of diluted net loss per share. "All of our businesses continue to perform well," said Mr. Ustian. "We are encouraged by the results of the third quarter and expect to deliver full year results toward the upper end of our earnings guidance. In addition, we are experiencing several successful product launches and are actively delivering 2010-compliant products to our customers." While the company is reducing revenue guidance, primarily as a result of deferring military revenue to fiscal 2011, the company has found other measures to stay within previously anticipated earnings guidance. The company is reaffirming its guidance of $2.75 to $3.25 per diluted share on lower full-year revenue of $12 billion. The North American traditional industry demand is expected between 190,000 to 195,000 units for Navistar's fiscal year ending Oct. 31, 2010, an increase of between 9 percent and 12 percent from fiscal 2009. For the first nine months of fiscal 2010, net income was $184 million, equal to $2.51 of diluted earnings per share, compared with year-ago nine months net income of $234 million, equal to $3.27 of diluted earnings per share, including the favorable effects from the settlement with Ford of $176 million. A full-text copy of the Company's earnings release is available for free at http://ResearchArchives.com/t/s?6b13 A full-text copy of the quarterly report on Form 10-Q is available for free at http://ResearchArchives.com/t/s?6b14 About Navistar International Navistar International Corporation (NYSE: NAV) -- http://www.Navistar.com/-- is a holding company whose subsidiaries and affiliates subsidiaries produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine parts and service. Another affiliate offers financing services. Navistar has a 'BB-' issuer default rating from Fitch Ratings. In March 2010, Fitch revised the outlook to "positive" from negative, citing that the revisions "are driven by improvement in the financial profile of NFC following the signing of an operating agreement with GE Capital and by NAV's financial performance in the past year." Navistar carries a 'B1' long-term rating from Moody's Investors Service. NEVADA POWER: Moody's Withdraws 'Ba1' Corporate Family Rating ------------------------------------------------------------- Moody's Investors Service assigned a Baa3 rating to Nevada Power Company's planned issuance of $250 million of General & Refunding mortgage bonds, consistent with the ratings of its other outstanding G&R mortgage bonds. Concurrent with this rating assignment, Moody's withdrew the Ba1 Corporate Family Rating, the Ba2 Probability of Default Rating, and the SGL-3 Speculative Grade Liquidity Rating for NPC's parent company, NV Energy, Inc, as well as the individual security level Loss Given Default Assessments. The withdrawal of these ratings for NV Energy reflects the fact that the vast majority of the company's consolidated debt is comprised of the Baa3 rated G&R mortgage bond debt of NPC and its affiliate, Sierra Pacific Power Company. Moody's also affirmed the Issuer Rating and senior unsecured debt ratings of NV Energy at Ba3 and affirmed the senior secured debt ratings of NPC and SPPC, including secured tax exempt debt representing senior secured obligations of NPC and SPPC, at Baa3. The rating outlook for NV Energy, NPC and SPPC is stable. At the same time, Moody's also took several other actions as noted below. Downgrades: Issuer: NV Energy Inc. * Multiple Seniority Shelf, Downgraded to (P)B1 from (P)Ba3 Upgrades: Issuer: Clark (County of) NV * Senior Unsecured Revenue Bonds, Upgraded to Ba2, Ba2 from Ba3, Ba3 Issuer: Nevada Power Company * Issuer Rating, Upgraded to Ba2 from Ba3 Issuer: Sierra Pacific Power Company * Issuer Rating, Upgraded to Ba2 from Ba3 Assignments: Issuer: NV Energy Inc. * Multiple Seniority Shelf, Assigned a range of (P)B1 to (P)Ba3 Issuer: Nevada Power Company * Multiple Seniority Shelf, Assigned a range of (P)Ba3 to (P)Baa3 * Senior Secured Regular Bond/Debenture, Assigned Baa3 Issuer: Sierra Pacific Power Company * Multiple Seniority Shelf, Assigned a range of (P)Ba3 to (P)Baa3 Withdrawals: Issuer: NV Energy Inc. * Probability of Default Rating, Withdrawn, previously rated Ba2 * Speculative Grade Liquidity Rating, Withdrawn, previously rated SGL-3 * Corporate Family Rating, Withdrawn, previously rated Ba1 * Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated LGD5, 83% * Senior Unsecured Shelf, Withdrawn, previously rated LGD5, 83% Issuer: Nevada Power Company * Senior Secured First Mortgage Bonds, Withdrawn, previously rated LGD2, 25% * Senior Secured Regular Bond/Debenture, Withdrawn, previously rated LGD2, 24% Issuer: Sierra Pacific Power Company * Senior Secured First Mortgage Bonds, Withdrawn, previously rated LGD2, 25% * Senior Secured Medium-Term Note Program, Withdrawn, previously rated LGD2, 24% * Senior Secured Regular Bond/Debenture, Withdrawn, previously rated LGD2, 24% Issuer: Washoe (County of) NV * Senior Secured Revenue Bonds, Withdrawn, previously rated LGD2, 24% The upgrade of the Issuer Ratings for NPC and SPPC and NPC's senior unsecured debt rating related to one of its tax exempt debt issues produces a two notch rating differential between senior secured and senior unsecured obligations. This is consistent with Moody's practice for most investment grade regulated electric and gas utilities. Other rating upgrades and downgrades as outlined above also reflect notching adjustments in conjunction with withdrawal of the NV Energy's CFR, PDR and SGL ratings. The ratings of NV Energy, NPC and SPPC continue to reflect a business strategy that focuses on core regulated utility operations; constructive relationships with key constituents, including customers, regulators, legislators, and investors; significant progress toward achieving self sufficiency in meeting utility customers' power demands, and solidifying the company's credit quality by strengthening the balance sheet and improving key cash flow related credit metrics. Executing this strategy has led to improvement in the consolidated business and regulatory risk profile, including better regulatory support for recovery of utility costs of service, additions to rate base, profitable results, and better cash flow coverage metrics compared to the low points reached during the height of the western energy crisis. Moreover, NVE's liquidity appears sufficient, notwithstanding the tighter credit markets that currently exist, with committed utility bank facilities successfully renewed for three years to supplement internally generated cash flows and ample access to capital through both debt and common equity issuance. Although capital spending estimates and external financing requirements have been reduced in recent periods as certain construction projects have been scaled back or tabled, Moody's remains focused on the recent regulatory approvals in Nevada for integrated resource plans and how that might change spending and financing requirements going forward, particularly at NPC, which is the largest utility in the family by far. The stable rating outlook for NV Energy, NPC and SPPC reflects a trend of sound financial performance, helped by credit supportive decisions from the Public Utility Commission of Nevada (PUCN) and effective cost controls. The stable outlook is also premised on continuation of a conservative strategy to fund any external financing needs within the corporate family. In the near term, an upgrade appears unlikely for NV Energy, NPC and SPPC given the expected slow gradual recovery of economic conditions in Nevada and the expected reduction in cash flows as the cash recovery of remaining significant deferred energy costs tapers off. Over the medium-term, achieving CFO Pre-W/C coverage of interest and debt metrics of 3x and 12%, respectively, for an extended period, could have positive effects on the outlook or ratings. Downward rating pressure would be introduced if there is an unexpected and material new debt issuance at NV Energy or the company diverges from its past practice of issuing common equity to balance any new utility debt issues. Also, any unexpected return to less supportive treatment by the PUCN that causes CFO Pre-W/C coverage of debt and interest ratios to fall below 8% and 2.3x, respectively, for an extended period, could lead to lower ratings. NV Energy, Inc., is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are electric and electric and gas utilities, respectively, that operate within the state of Nevada. NV Energy's headquarters are in Las Vegas, NV. The principal methodology used in rating NV Energy Inc. was Regulated Electric and Gas Utilities rating methodology published in August 2009. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. NEWTON MULLINS: Debtor's Plan Violated Absolute Priority Rule ------------------------------------------------------------- WestLaw reports that statutes which amended the Bankruptcy Code to provide that, for purposes of the "fair and equitable" prong of the Chapter 11 "cramdown" test, an individual debtor could retain estate assets consisting of property and earnings acquired postpetition did not, as to the cases of individual Chapter 11 debtors, eliminate the absolute priority rule, which generally barred any junior class of interests from receiving or retaining any interest if any senior impaired class did not accept a plan, a Virginia bankruptcy court has ruled, agreeing with the minority approach. Instead, the court ruled, the amendments excepted from the absolute priority rule only an individual debtor's postpetition earnings and other property acquired after case commencement. In so holding, the court concluded that the majority approach was consistent with the broader intent of provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act that were intended to make individual Chapter 11 cases more similar to Chapter 13 cases, but was not consistent with the statutory language. That language, the court acknowledged, might not have been "well thought out," but it did address the problem apparently being addressed, that postpetition earnings of Chapter 11 debtors were not deemed to be estate property pre-BAPCPA. In re Mullins, --- B.R. ----, 2010 WL 3359668 (Bankr. W.D. Va.) (Stone, J.). Based on this ruling, the Honorable William F. Stone, Jr., denied confirmation of the Debtor's Third Amended Plan of Reorganization filed on April 20, 2010. Judge Stone says that he disagrees with decisions in In re Shat, 424 B.R. 854, 862-68 (Bankr. D. Nev. 2010); In re Roedemeier, 374 B.R. 264, 273-76 (Bankr. D. Kan. 2007); and In re Tegeder, 369 B.R. 477, 480 (Bankr. D. Neb. 2007), that conclude the absolute prioirty rule is not applicable in individual chapter 11 cases. Judge Stone agrees with Judge Tchaikovsky in In re Gbadebo, 431 B.R. 222, 2010 WL 1568609 at *3- 6, Bankr. L. Rep. P 81,753 (Bankr. N.D. Cal. April 16, 2010) (covered in the July 23, 2010, edition of the Troubled Company Reporter), that the language of 11 U.S.C. Sec. 1129(b)(2)(B)(ii) is not ambiguous and that it only excepts from the absolute priority rule the debtor's post-petition earnings and other property acquired after the commencement of the case. Newton C. Mullins (fdba Chadds Ford Dental Associates and Drexel Hill Dental Associates) practices dentistry through a wholly owned professional corporation known as Newton C. Mullins, Jr., D.D.S., P.C. Dr. Mullins sought chapter 11 protection (Bankr. W.D. Va. Case No. 09-70595) on March 16, 2009. A copy of the Debtor's Chapter 11 petition is available at http://bankrupt.com/misc/vaeb09-70595.pdfat no charge. NEXT INC: Adjourns Special Shareholders Meeting to September 15 --------------------------------------------------------------- On September 10, 2010, Next, Inc., announced that it adjourned the special meeting at which its stockholders were to have considered and voted on (i) the sale of certain of the assets of Next Marketing, Inc., pursuant to the Asset Purchase Agreement by and among T-Shirt International, Inc., Next Marketing and the Company, dated August 16, 2010, and (ii) the voluntary dissolution and liquidation of the Company, in order to provide its stockholders additional time to consider and vote upon each proposal. The Special Meeting will reconvene at 10:00 a.m., local time on September 15, 2010, at its original location, the executive offices of Next Marketing, Inc., located at 1295 Vernon Street, in Wabash, Indiana. The record date for the Special Meeting remains August 23, 2010. The asset sale is an important step in a contemplated liquidation of the Company. T-Shirt International, Inc., will pay for the purchased assets at closing total consideration of $3,184,000. Payment will consist of cash directly to Next, Inc., and a cash payment of the aggregate principal amount of indebtedness owed by the Company as of the date of closing on its revolving credit facility with National City Bank of Indiana, made directly to National City Bank of Indiana. The total consideration will be adjusted up or down as measured by the difference between (a) the value of the Company's Inventory and Prepaid Royalties (each as defined in the Asset Purchase Agreement) as of the Closing Date and (b) $934,000. In addition, T-Shirt International, Inc., will assume certain liabilities associated with the purchased assets. Next, Inc.'s board of directors has unanimously approved the Asset Purchase Agreement. About Next, Inc. Chattanooga, Tenn.-based Next, Inc. -- http://www.nextinc.net/-- designs, develops, embellishes, markets, and distributes licensed and branded imprinted sportswear primarily through key licensing agreements as well as the Company's own proprietary brands. The Company's balance sheet at May 30, 2010, showed $7.15 million in total assets, $6.93 million in total liabilities, and stockholders' equity of $221,042. * * * As reported in the Troubled Company Reporter on March 18, 2010, Joseph Decosimo and Company, PLLC, in Chattanooga, Tenn., expressed substantial doubt about the Company's ability to continue as a going concern, following its results for the year ended November 29, 2009. The independent auditors noted that the Company is in violation of certain term loan financial covenants as of November 29, 2009, and has experienced difficulty in obtaining debt financing at acceptable terms to fund continuing operations. The Company has also suffered recurring losses from operations and has a working deficit as of November 29, 2009, due to all financing obligations being classified as current liabilities. In its quarterly report on Form 10-Q for the three months ended May 31, 2010, the Company said it is dependent upon available cash, operating cash flow, its term loans with Crossroads Bank and its revolving line of credit to meet its capital needs. "The Company is currently in a technical, undeclared state of default under its term loans with Crossroads Bank, despite having made all payments on time under the agreements, due to its failure to satisfy the fixed charge ratio covenant. Additionally, the revolving line of credit agreement contains a cross-default provision enabling the lender to exercise available rights and remedies prior to the scheduled termination date of November 30, 2010, if the Company defaults under other indebtedness and the third party lender accelerates the time for payment of such borrowed amounts." NORTH AMERICAN PETROLEUM: Wants to Resolve Concerns on Assets Sale ------------------------------------------------------------------ North American Petroleum Corp. USA, and Prize Petroleum LLC, ask the U.S. Bankruptcy Court for the District of Delaware to extend their exclusive periods to file and solicit acceptances for the proposed Chapter 11 Plan until May 31, 2011, and July 29, respectively. The Debtors explain that they need additional time to resolved three critical issues on: -- continued prosecution of a seven-count adversary proceeding against Enterra and related litigation commenced by the Debtors' prepetition bank lenders; -- conclusion of certain arbitration proceedings currently pending with Enterra regarding the status of the Farmout Agreement; and -- a decision regarding the Debtors' development of a value- maximizing restructuring strategy which may involve a sale of all or substantially all of the Debtors' assets. The Debtors scheduled a hearing on the requested exclusivity extension on September 20 at 1:00 p.m. (EDT). Objections were due September 13. About North American Petroleum Corp. USA Denver, Colorado-based North American Petroleum Corp. USA is a natural gas driller. North American Petroleum and Prize Petroleum are subsidiaries of Petroflow Energy Corporation. North American Petroleum filed for Chapter 11 bankruptcy protection on May 25, 2010 (Bankr. D. Del. Case No. 10-11707). Attorneys at Kirkland & Ellis LLP serve as bankruptcy counsel. Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg LLP, is the Debtor's Delaware counsel. Kinetic Advisors LLC is the Company's restructuring advisor. Epiq Bankruptcy Solutions, LLC, is the Debtor's notice, claims and balloting agent. The Debtor disclosed $140,678,983 in assets and $125,595,183 in liabilities as of the Petition Date. The Debtor's affiliate, Prize Petroleum LLC, filed a separate Chapter 11 petition on May 25, 2010 (Case No. 10-11708). Prize Petroleum scheduled $121,945,092 in liabilities. NORTH GENERAL: Disputes Committee Bid for Financial Docs -------------------------------------------------------- Crain's New York Business reports that Marty Bunin, Esq., at Alston & Bird, who represents the official committee of unsecured creditors in the bankruptcy case of North General Hospital last week filed an application for the court to get involved in pushing the hospital to produce financial documents. Mr. Bunin wrote of limited access to the hospital's chief restructuring officer and acting president, John Maher, and of roadblocks to common documents such as billing information and a schedule of accounts payable. "The Committee merely seeks access to basic information and documents" on North General's business operations and financial affairs "for its investigation of potential challenges," wrote Mr. Bunin, according to Crain's. Crain's reports that North General Hospital's counsel, Charles Simpson, Esq., at Windels Marx Lane & Mittendorf, objects to the application, which he says Mr. Bunin filed "due to what he perceived as a lack of cooperation and unresponsiveness" to the document requests. According to Crain's, Mr. Simpon said responding quickly to the requests is "simply not possible," and blames any delays on the hospital having fewer than 40 workers, with many documents warehoused. Mr. Simpson also called Mr. Bunin's document "fishing expedition." According to the report, Mr. Simpson also indicated that "the claims of secured creditors far exceed the value" of North General's assets, so there "will be very little if any money" left over for the unsecured creditors. The committee consists of 1199 SEIU, Healthcare ROI, and Sodexo. About North General New York-based North General Hospital is a not-for-profit 200-bed community hospital in upper Manhattan that has serviced the communities of East and Central Harlem since the 1970s. The Hospital filed for Chapter 11 bankruptcy protection on July 2, 2010 (Bankr. S.D.N.Y. Case No. 10-13553). Charles E. Simpson, Esq., at Windels, Marx, Lane & Mittendorf, LLP, assists the Debtor in its restructuring effort. Garfunkel Wild, P.C., is the Company's healthcare counsel. Alvarez & Marsal is the Company's restructuring consultant. The Debtor disclosed $47,670,748 in assets and $279,519,927 in debts as of the Petition Date. NORTHWEST 15TH: Architect Gets Okay to Repossess Plans ------------------------------------------------------ WestLaw reports that while it was arguably inappropriate, in a contested matter arising from an architect's motion for the relief from stay to exercise the rights that it allegedly still possessed in architectural plans that it had developed for a Chapter 11 debtor, to resolve a disputed question of whether the architect still owned those plans or whether title had passed to the debtor pursuant to the terms of the architectural services agreement, this did not mean that the court had to deny the motion and require the architect to commence an adversary proceeding. Rather, given the summary nature of stay relief motions, it was appropriate for the court to conclude, based on the doctrine of contra proferentem and on the ambiguous nature of the change-of- ownership provision that the debtor had drafted, that the debtor had not demonstrated the requisite likelihood of success in its position and to grant the architect's motion. In re Northwest 15th Street Associates, --- B.R. ----, 2010 WL 3398830 (Bankr. E.D. Pa.) (Frank, J.). A copy of the Honorable Eric L. Frank's Memorandum decision dated Aug. 27, 2010, is available at: http://www.leagle.com/unsecure/page.htm?shortname=inbco20100827701 Northwest 15th Street Associates, located in West Conshohocken, Pa., owns the surface and air rights to a parcel of real property located on the northwest corner of 15th and Arch Streets in Philadelphia, Pa. The company sought Chapter 11 protection (Bankr. E.D. Pa. Case No. 10-15129) on June 23, 2010; is represented by Ashely M. Chan, Esq., and James M. Matour, Esq., at Hangley Aronchick Segal & Pudlin in Philadelphia, and estimated its assets and debts at $1 million to $10 million at the time of the filing. OWENS-ILLINOIS: Moody's Affirms 'Ba2' Corporate Family Rating ------------------------------------------------------------- Moody's Investors Service affirmed the Ba2 Corporate Family Rating and the stable ratings outlook for Owens-Illinois, Inc., and assigned a Ba2 rating to the new EUR500 million of senior notes due 2020 issued by OI European Group B.V., an indirect wholly- owned subsidiary of O-I. The rating is in response to the company's announcement that it intends to offer, subject to market and other conditions, EUR500 million aggregate principal amount of Senior Notes due 2020 in a private offering. OI European Group B.V. expects to use the net proceeds received from this offering to repay borrowings under Owens-Illinois Group, Inc.'s revolving credit facility and for general corporate purposes, including funding Owens-Illinois Group, Inc.'s strategic priorities. Moody's took the following rating actions for Owens Illinois, Inc.: * Affirmed Corporate Family Rating, Ba2 * Affirmed Probability of Default Rating, Ba2 * Affirmed $250 million senior unsecured notes due May 15, 2018, B1 (LGD 6, 94%) * Affirmed Speculative Grade Liquidity Rating SGL-2 Moody's took the following rating actions for Owens-Brockway Glass Container Inc.: * Affirmed $900 million senior secured first lien revolving credit facility due June 15, 2012, Baa2 (LGD 1, 8% from 9%) * Affirmed $191 million senior secured first lien term loan B due June 14, 2013, Baa2 (LGD 1, 8% from 9%) * Affirmed EUR225 million senior unsecured notes due December 1, 2014, Ba3 ( LGD 5, 78% from 73% ) * Affirmed $1,000 million senior unsecured notes due 2014-2016, Ba3 (LGD 5, 78% from 73%) * Affirmed $690 million exchangeable senior unsecured notes due June 1, 2015, Ba3 (LGD 5, 78% from 73%) Moody's took the following rating actions for OI European Group BV (Netherlands): * Affirmed EUR191.5 million (EUR189.5 million) senior secured first lien term loan D due June 14, 2013, Baa2 (LGD 1, 8% from 9%) * Affirmed EUR300 million senior unsecured notes due March 31, 2017, Ba2 (LGD 3, 40% from 39%) * Assigned EUR500 million senior notes due 2020, Ba2 (LGD 3, 40%) Moody's took the following rating actions for ACI Operations Pty. Ltd. and O-I Canada Corp: * Affirmed AUD 225 million senior secured first lien term loan A due June 15, 2012, Baa2 (LGD 1, 8% from 9%) * Affirmed CAD 110.8 million senior secured first lien term loan C due June 15, 2012, Baa2 (LGD 1, 8% from 9%) The ratings outlook remains stable. The Corporate Family Rating of Ba2 reflects pro-forma credit metrics that are in line with the rating category with the potential for further improvement over the rating horizon and strong liquidity. The rating also reflects OI's leading position in the industry, wide geographic footprint and focus on profitability rather than volume. Despite the proposed debt issuance, OI's pro-forma credit metrics remain largely in line with the rating category even before consideration of a potential increase in operating income from potential acquisitions, cost cutting/productivity and the improvement in contract structures in North America. The company should also benefit from any rebound in volumes. Liquidity is strong as the company has good free cash flow, significant availability under its credit facility, a large cash balance, and adequate cushion under its covenants. The ratings are constrained by the concentration of sales, potential acquisition risk and the asbestos liabilities. The ratings are also constrained by the mature state of the industry, cyclical nature of glass packaging and low growth in developed markets. OI is heavily concentrated with a few customers in the beer industry and has benefited from the growth in premium beers. Additionally, OI generates approximately 76% of sales internationally. The company has disclosed its intention to pursue acquisitions in faster growing markets which entails some level of risk despite the potential upside. The principal methodologies used in rating Owens-Illinois, Inc. and subsidiaries were Global Packing Manufacturers: Metal, Glass, and Plastic Containers published in June 2009, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. PAID INC: Incurs $805,100 Net Loss in June 30 Quarter ----------------------------------------------------- Paid, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $805,140 on $1.19 million of revenue for the three months ended June 30, 2010, compared with a net loss of $1.11 million on $1.62 million of revenue for the same period last year. The Company had cash and cash equivalents of $2.76 million at June 30, 2010, compared to $730,400 at December 31, 2009. The Company had approximately $2.30 million of working capital at June 30, 2010, compared to $1.99 million at December 31, 2009. At June 30, 2010, current liabilities were $3.65 million compared to $942,819 at December 31, 2009. Current liabilities increased at June 30, 2010, compared to December 31, 2009, primarily due to the increase of accounts payable, and deferred revenues due to touring activity. The Company had an accumulated deficit of $41.12 million at June 30, 2010. The Company's balance sheet at June 30, 2010, showed $6.01 million in total assets, $3.65 million in total liabilities, and stockholders' equity of $2.36 million. As reported in the Troubled Company Reporter on March 15, 2010, CCR LLP, in Westborough, Mass., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted of the Company's substantial net losses and accumulated deficit of $39.53 million at December 31, 2009. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b05 About Paid, Inc. Based in Worcester, Massachusetts, Paid, Inc. (OTC BB: PAYD) -- http://www.paid.com/-- provides businesses and clients with brand management, brand marketing, product merchandising, online merchandise and fulfillment services, website development, and hosting and authentication services for the entertainment, sports and collectible industries. PAREX BANK: Moody's Withdraws B2 Rating on Local Currency Deposit ----------------------------------------------------------------- Moody's Investors Service has withdrawn all ratings of Parex Bank. The following ratings of Parex Bank have been withdrawn: * Bank financial strength rating (BFSR) of E (stable outlook) * Long-term local currency deposit rating of B2 (review for possible downgrade) * Long-term foreign currency deposit rating of B2 (review for possible downgrade) On August 6, 2010, Moody's Investors Service placed on review for possible downgrade Parex Banka's B2 long-term local and foreign currency deposit ratings. The E bank financial strength rating (BFSR), which currently translates into a Caa1 baseline credit assessment, has a stable outlook. Moody's decision to initiate this review was prompted by the bank's restructuring by the Latvian government as well as by the uncertainty surrounding the final form of Parex Banka. On August 1, 2010, the Latvian government implemented a restructuring plan for Parex Banka by transferring the bank's performing loan assets and most deposits to the new bank, Citadele Banka. Parex Banka will be focused on maximising the recovery of its remaining non-performing assets and will run down its remaining assets in the long term. Moody's decision to review for possible downgrade Parex Banka's B2 deposit ratings reflected the uncertainty surrounding the final form of Parex Banka following the restructuring -- in particular, the specific split of assets and liabilities between the two entities and the level of support from the government that the remaining entity is likely to benefit from. The credit rating has been withdrawn because Moody's Investors Service believes it has insufficient or otherwise inadequate information to support the maintenance of the credit rating. Please refer to Moody's Investors Service's Withdrawal Policy. The principal methodologies used in rating Parex Bank were Bank Financial Strength Ratings: Global Methodology published in February 2007, and Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. Headquartered in Riga, Latvia, Parex Bank reported unaudited, consolidated assets of LVL2.6 billion at the end of March 2010. Moody's Investors Service has today withdrawn all ratings of Parex Bank. PATRIOT NATIONAL: Posts $1.4 Million Net Loss in June 30 Quarter ---------------------------------------------------------------- Patriot National Bancorp, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.4 million on $5.9 million of net interest income for the three months ended June 30, 2010, compared with a net loss of $4.6 million on $4.4 million of net interest income for the same period of 2009. During 2009, the net losses of the Company resulted in a shift in capital categories from classification as well-capitalized to classification as adequately capitalized as of September 30, 2009. Patriot National Bank remains adequately capitalized as of June 30, 2010. Should the Bank continue to incur losses of the same magnitude experienced in 2009 resulting in further erosion of capital, the Bank's regulatory capital classification could be downgraded. The Company's balance sheet as of June 30, 2010, showed $816.5 million in total assets, $784.9 million in total liabilities, and stockholders' equity of $31.6 million. As reported in the Troubled Company Reporter on March 18, 2010, McGladrey & Pullen, LLP, in New Haven, Conn., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted of the Company's net losses for 2009 and 2008 and uncertainty about the Company's and Patriot National Bank's ability to maintain compliance with regulatory capital requirements. In February 2009, Patriot National Bank entered into a formal written agreement with its primary regulator which required the Bank to develop and maintain a capital plan. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b0b About Patriot National Bancorp Stamford, Conn.-based Patriot National Bancorp, Inc. (NASDAQ: PNBK) is the parent company of Patriot National Bank, a national banking association headquartered in Stamford, Fairfield County, in Connecticut. Patriot National Bank has 19 full service branches, 16 in Connecticut and three in New York. PEARL COMPANIES: Debtor & Union Must Arbitrate Benefit Changes -------------------------------------------------------------- WestLaw reports that the arbitration of a dispute that resulted from a Chapter 11 debtor's prepetition conduct in unilaterally changing the health insurance plan covering bargaining unit members in violation of a collective bargaining agreement did not conflict with the underlying purposes of the Bankruptcy Code, which barred the application of the automatic stay to permit a debtor to achieve the unilateral termination or modification of a CBA without complying with the statutory requirements for rejecting CBAs. Therefore, the CBA's arbitration provisions could be enforced, even though the dispute was a core matter, and the automatic stay did not apply. In re Pearl Companies, Inc., --- B.R. ----, 2010 WL 3359671 (Bankr. S.D. Fla.) (Olson, J.). A copy of the Honorable John K. Olson's Amended Order dated Sept. 2, 2010, is available at: http://www.leagle.com/unsecure/page.htm?shortname=inbco20100902479 Pearl Companies, Inc., located in Fort Lauderdale, Fla., sought Chapter 11 protection (Bankr. S.D. Fal. Case No. 10-19336) on April 9, 2010; is represented by Martin L. Sandler, Esq., in Miami Beach, Fla.; and estimated its assets at less than $10 million and its debts at more than $10 million at the time of the filing. PEREGRINE PHARMA: Posts $7.7 Million Net Loss in July 31 Quarter ---------------------------------------------------------------- Peregrine Pharmaceuticals, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $7.69 million on $3.21 million of revenue for the three months ended July 31, 2010, compared with a net loss of $2.43 million on $6.75 of revenue for the three months ended July 31, 2009. During the quarter ended July 31, 2010, the Company raised $6.64 million in gross proceeds through the issuance of equity. As of July 31, 2010, gross proceeds of up to $23.92 million remained available under an effective shelf registration statement. The Company's balance sheet at July 31, 2010, showed $29.30 million in total assets, $16.46 million in total liabilities, and stockholders' equity of $12.84 million. Ernst & Young LLP, in Orange County, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following its results for the fiscal year ended April 30, 2010. The independent auditors noted of the Company's recurring losses from operations and recurring negative cash flows from operating activities. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b04 About Peregrine Pharmaceuticals Tustin, Calif.-based Peregrine Pharmaceuticals, Inc. (NASDAQ: PPHM) -- http://www.peregrineinc.com/-- is a biopharmaceutical company with a portfolio of innovative monoclonal antibodies in clinical trials for the treatment of cancer and serious viral infections. The Company is pursuing multiple clinical programs in cancer and hepatitis C virus infection with its lead product candidate bavituximab and novel brain cancer agent Cotara(R). Peregrine also has in-house cGMP (current Good Manufacturing Practices) manufacturing capabilities through its wholly-owned subsidiary Avid Bioservices, Inc. -- http://www..avidbio.com/-- which provides development and biomanufacturing services for both Peregrine and outside customers. PETTERS COMPANY: Trustee Appointment Immediately Appealable ----------------------------------------------------------- Addressing an issue of apparent first impression for the court and joining the majority of its sister circuits, WestLaw reports that the Eighth Circuit Court of Appeals has ruled that a bankruptcy court order appointing a bankruptcy trustee is an immediately appealable, final order. The Eighth Circuit found persuasive the Third Circuit's reasoning that, were the Court of Appeals to "put off hearing an appeal of the district court's order appointing a trustee until after the entire bankruptcy proceeding, allowing the possibility of an order returning this bankruptcy to its very beginning for a second round, the concept of judicial efficiency would be effectively turned on its head." In the case at bar, the bankruptcy court's order overruling the creditors' objection and approving the appointment of the debtors' district court-appointed receiver as their Chapter 11 trustee left nothing more for the bankruptcy court to do but execute the order. Although the creditors could seek the individual's removal for cause, they would be unable to obtain the relief they sought, namely, the appointment of a different person at the outset of the bankruptcy proceedings, in the absence of the court's immediate review. Ritchie Special Credit Investments, Ltd. v. U.S. Trustee, --- F.3d ----, 2010 WL 3431833 (8th Cir.). This decision affirms the Honorable Ann D. Montgomery's ruling in Ritchie, et al. v. U.S. Trustee, 415 B.R. 391 (D. Minn.) (covered in the Troubled Company Reporter on Oct. 26, 2009), and the trial court ruling by the Honorable Gregory F. Kishel in In re Petters Company, Inc., et al., 401 B.R. 391 (Bankr. D. Minn.). In the Bankruptcy Court, the United States Trustee appointed Douglas A. Kelley, Esq., who was the debtors' district court-appointed receiver to serve also as the Chapter 11 trustee in their jointly administered bankruptcy cases which he filed, over some creditors' objection. About Petters Group Worldwide Based in Minnetonka, Minn., Petters Group Worldwide LLC is named for founder and chairman Tom Petters. The group is a collection of some 20 companies, most of which make and market consumer products. It also works with existing brands through licensing agreements to further extend those brands into new product lines and markets. Holdings include Fingerhut (consumer products via its catalog and Web site), SoniqCast (maker of portable, WiFi MP3 devices), leading instant film and camera company Polaroid (purchased for $426 million in 2005), Sun Country Airlines (acquired in 2006), and Enable Holdings (online marketplace and auction for consumers and manufacturers' overstock inventory). Petters formed the company in 1988. Petters Company, Inc., is the financing and capital-raising unit of Petters Group Worldwide, LLC. Petters Company, Inc., Petters Group Worldwide, LLC, and eight other affiliates filed separate petitions for Chapter 11 protection (Bankr. D. Minn. Case No. 08-45257) on Oct. 11, 2008. James A. Lodoen, Esq., at Lindquist & Vennum P.L.L.P., represents the Debtors as counsel. In its petition, Petters Company, Inc., estimated its debts at $500 million and $1 billion. Its parent, Petters Group Worldwide, LLC, estimated its debts at not more than $50,000. As reported in the Troubled Company Reporter on October 7, 2008, Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing business as Sun Country Airlines, Inc., and MN Airline Holdings, Inc., filed separate petitions for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the District of Minnesota on October 6, 2008 (Case Nos. 08-45136, 08-35197 and 08- 35198). Petters Aviation, LLC is a wholly owned unit of Thomas Petters Inc. and owner of MN Airline Holdings, Inc., Sun Country's parent company. PROFESSIONAL VETERINARY: Sells Assets to Micro Beef & Lextron ------------------------------------------------------------- Professional Veterinary Products Ltd. and its subsidiary ProConn LLC completed on Aug. 20 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 Aug. 17, 2010, the Debtors completed the sale of their 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 the Debtors' lender and used to reduce the obligations owing under the existing credit facility. Omaha World-Herald, citing government documents, said the $4 million in proceeds from the sales were paid to Wells Fargo Bank, the company's lender. Incentive Program On Aug. 24, 2010, the Company's board of director approved Key Executive Incentive Agreement with Stephen J. Price, president and chief executive officer; Jamie Meadows, chief operating officer; and Vicky Winkler, director of finance. The agreement is subject to bankruptcy approval. The Incentive Agreements provide for the following 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. A full-text copy of the Key Executive Employee Incentive Agreement dated August 19, 2010 by Stephen J. Price is available for free at http://ResearchArchives.com/t/s?6b0d A full-text copy of the Key Executive Employee Incentive Agreement dated August 19, 2010 by Jamie Meadows is available for free at http://ResearchArchives.com/t/s?6b0e A full-text copy of the Key Executive Employee Incentive Agreement dated August 19, 2010 by Vicky Winkler is available for free at http://ResearchArchives.com/t/s?6b0f About Professional Veterinary Professional Veterinary Products Ltd. -- http://www.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 LLC, as bankruptcy counsel and Alliance Management as financial and restructuring advisors. PTS CARDINAL: Bank Debt Trades at 9% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which PTS Cardinal Health is a borrower traded in the secondary market at 90.95 cents-on-the-dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.85 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 April 10, 2014, and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 217 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. In April 2007, Cardinal Health completed the sale of its Pharmaceutical Technologies and Services segment to The Blackstone Group for approximately $3.3 billion. PTS provides advanced technologies and outsourced services for the pharmaceutical, biotechnology and consumer health industry. PTS develops, manufactures and packages pharmaceutical and other products. QUANTUM TECHNOLOGIES: Receives Delisting Notice From NASDAQ ----------------------------------------------------------- Quantum Fuel Systems Technologies Worldwide, Inc. received a Nasdaq Staff determination letter on September 2, 2010 stating that the Company has not regained compliance with the $1.00 minimum closing bid price requirement for continued listing on The Nasdaq Global Market under Nasdaq Listing Rule 5450(a)(1). On September 9, 2010, the Company submitted its request for a hearing before a Nasdaq Listing Qualifications Panel at which time it will request for continued listing on The Nasdaq Global Market pending its return to compliance with the Minimum Bid Price Rule. The Company's request for a hearing automatically stays the delisting process until a determination is made by the Panel. In anticipation that the Company would be receiving the Nasdaq Staff determination letter, the Company included a proposal in its definitive proxy materials filed on August 27, 2010 for its Annual Meeting of Stockholders to be held on September 30, 2010, which, if approved, would give the Company's board of directors the discretion to implement a 1-for-20 reverse stock split at any time before February 28, 2011. If the proposal is approved by the Company's stockholders and if required to be implemented by the Company's board of directors, the Company believes that it will result in the Company regaining compliance with the Minimum Bid Price Rule, thus, allowing the Company to maintain the listing of its common stock on The Nasdaq Global Market. About Quantum Quantum Fuel Systems Technologies Worldwide, Inc., a fully integrated alternative energy company, is a leader in the development and production of advanced propulsion systems, energy storage technologies, and alternative fuel vehicles. Quantum's wholly owned subsidiary, Schneider Power Inc., complements Quantum's emerging renewable energy presence through the development and ownership of wind and solar farms. Quantum's portfolio of technologies includes electronic controls, hybrid electric drive systems, hydrogen storage and metering systems, and alternative fuel technologies that enable fuel efficient, low emission hybrid, plug-in hybrid electric, fuel cell, and natural gas vehicles. Quantum's powertrain engineering, system integration, vehicle manufacturing, and assembly capabilities provide fast-to-market solutions to support the production of hybrid and plug-in hybrid, hydrogen-powered hybrid, fuel cell, alternative fuel, and specialty vehicles, as well as modular, transportable hydrogen refueling stations. Quantum's customer base includes automotive OEMs, dealer networks, fleets, aerospace industry, military and other government entities, and other strategic alliance partners. RAINBOW SUNSET: Case Summary & Largest Unsecured Creditor --------------------------------------------------------- Debtor: Rainbow Sunset Pavilion Building A, LLC 5495 Rainbow Boulevard, Suite 202 Las Vegas, NV 89118 Tel: (702) 489-4440 Bankruptcy Case No.: 10-26963 Chapter 11 Petition Date: September 7, 2010 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Jon E. Field, Esq. FIELD LAW GROUP 316 E. Bridger Avenue, Suite 202 Las Vegas, NV 89101 Tel: (702) 489-4440 E-mail: jon@fieldlawltd.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by William Plise, manager. The list of unsecured creditors filed together with its petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Lewis Brisbois Judgment $180,000 6385 Rainbow Boulevard, #600 Las Vegas, NV 89118 RASCALS CASINOS: Case Summary & 13 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Rascals Casinos LLC 760 Village Center Drive, Suite 200 Burr Ridge, IL 60527 Bankruptcy Case No.: 10-40083 Chapter 11 Petition Date: September 7, 2010 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Bruce W. Black Debtor's Counsel: William J Factor, Esq. THE LAW OFFICE OF WILLIAM J. FACTOR, LTD 1363 Shermer Road, Suite 224 Northbrook, IL 60062 Tel: (847) 239-7248 Fax: (847) 574-8233 E-mail: wfactor@wfactorlaw.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 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb10-40083.pdf The petition was signed by Gary Grasso, vice president-Legal. RIVIERA MARINE: Chapter 15 Case Summary --------------------------------------- Chapter 15 Petitioner: Stephen James Parbery, As foreign representative Chapter 15 Debtor: Riviera Marine (Int.) Pty Limited 50 Waterway Drive Coomera, Queensland 4209 Australia Chapter 15 Case No.: 10-21722 Type of Business: The Debtor is Australia's largest and most awarded luxury boat builder and exporter of Flybridge Convertibles, Offshore Express and Sport Yachts. Chapter 15 Petition Date: September 8, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Judge: Caryl E. Delano Debtor's Counsel: Daniel C. Guarnieri, Esq. NELSON HESSE, LLP 2070 Ringling Boulevard Sarasota, FL 34237 Tel: (941) 366-7550 Fax: (941) 955-3708 E-mail: dguarnieri@nelsonhesse.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Assets: $10,000,001 to $50,000,000 The Company did not file a list of creditors together with its petition. Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Riviera Coomera Pty Limited 10-21728 09/08/10 Riviera Marine (MFG) Pty Limited 10-21730 09/08/10 Riviera Runaway Bay Pty Limited 10-21732 09/08/10 R Marine Pittwater Pty Limited 10-21726 09/08/10 ROBERT NUCCI: In Dispute Over AFL Team Investment ------------------------------------------------- Robert C. Nucci filed for Chapter 11 (Bankr. M.D. Fla. Case No. 10-21419) in Tampa, Florida, on September 2, 2010. Harley E. Riedel, Esq., at Stichter, Riedel, Blain & Prosser, serves as counsel. The debtor estimated assets of $1 million to $10 million and debts of $10 million to $50 million in its Chapter 11 petition. Michael Sasso at the Tampa Tribune reports that it was not immediately clear why Robert C. Nucci filed for bankruptcy. Mr. Nucci has been in litigation regarding the Storm of the Arena Football League lately. In June, Mr. Nucci sued in Storm coach Tim Marcum and businessman Woody Kern to recoup a $9.6 million he paid Mr. Kern for 51% of the team as well as additional monetary damages. ROCKWOOD SPECIALTIES: Fitch Upgrades IDR to 'B+' ------------------------------------------------ Fitch Ratings has upgraded the Issuer Default Rating and outstanding debt ratings on Rockwood Specialties Group, Inc.: -- IDR to 'B+' from 'B'; -- Senior secured credit facility to 'BB+/RR1' from 'BB/RR1'; -- Senior secured term loans to 'BB+/RR1'from 'BB/RR1'; -- Senior subordinated notes to 'B+/RR4' from'B-/RR5'. The Rating Outlook is Stable. Rockwood's ratings reflect leading positions in many of its product lines, diversification by market and end-use, good profit margins, and consistent generation of free cash flow. Pro forma for the $200 million debt repayment on July 29, 2010, total debt was $2.1 billion or 3.33 times (x) latest 12 months EBITDA. Pro forma cash on hand at June 30, 2010, was $164 million and availability under the $180 million revolver due July 30, 2012, after $25.1 million in letters of credit was $155 million. Fitch expects cash generation after $170 million capital expenditures for 2010 to comfortably service debt. Current maturities are estimated as $31 million due in the second half of 2010, $73 million due in 2011, $228 million due in 2012, $204 million due in 2013 and $1.516 billion due in 2014. The senior secured credit facilities contain financial covenants. The maximum senior secured debt ratio of 4.25x through Sept. 30, 2010, and 4.00x thereafter, is defined as net senior secured debt (total debt excluding senior subordinated notes plus capital lease obligations minus cash up to a maximum of $100 million) to adjusted EBITDA. Rockwood reported that it complied with the senior secured debt ratio covenant limit with a ratio of 2.79x for the period ending June 30, 2010. There is a minimum interest coverage ratio of 2.00x defined as adjusted EBITDA to cash interest expense (interest expense, net excluding deferred debt issuance cost amortization and the movements in the mark-to-market value of the interest rate and cross-currency interest rate derivatives). Rockwood reported that it complied with the interest coverage ratio covenant limit with a ratio of 3.55x for the period ending June 30, 2010. Fitch expects Rockwood to be well within compliance with its covenants over the next 12-18 months. The Stable Outlook reflects Fitch's expectations that margins should remain stable, liquidity should remain ample and leverage should decline modestly over the next 12-18 months. SEA ISLAND: U.S. Trustee Forms 7-Member Creditors Committee ----------------------------------------------------------- Donald F. Walton, the U.S. Trustee for Region 21, appointed seven members to the official committee of unsecured creditors in the Chapter 11 cases of Sea Island Company, et al. The Creditors Committee members are: 1. Dennie McCrary P.O. Box 30037 Sea Island, GA 31561 Tel: (404) 523-5300 (Rufus Dorsey) (912) 638-8035 (Mr. McCrary) E-mail: RTD@phrd.com denniemccrary@comcast.net 2. TJF Golf Inc. Attn: Dan Hitchcock, Esq. Adams, Hendon, Carson, Crow & Saenger, P.A. 72 Patton Avenue Asheville, NC 28801 Tel: (828) 252-7381 Fax: (828) 252-5081 E-mail: dhitchcock@adamsfirm.com 3. Matthew Hodgdon Georgia Aquarium, Inc. 225 Baker Street NW Atlanta, GA 30313 Tel: (404) 581-4102 Fax: (404) 581-4303 E-mail: mhodgdon@georgiaaquarium.org 4. William Ralph Graham 172 Merion Saint Simons Island, GA 31522 Tel: (912) 638-8075 Fax: (912) 638-9719 E-mail: williamgraham@bellsouth.net 5. Billy R. Gibson 4401 Altama Avenue Brunswick, GA 31520-3006 Tel: (912) 264-7533 Extn. 109 Fax: (912) 265-7370 E-mail: billygibson@fredericacreditunion.org 6. Network Services Plus Attn: Stephen Moss 5080 Old Ellis Pointe Roswell, GA 30076 Tel: (770) 752-0900 Fax: (770) 752-0221 E-mail: swmoss@nspi.com 7. M. Alanson Johnson II P.O. Box 30751 Sea Island, GA 31561 Tel: (912) 634-0219 E-mail:Maj2jake@aol.com 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 Sea Island St. Simons Island, Georgia-based Sea Island Company -- http://www.seaisland.com/-- aka Sea Island Shooting School, Sea Island Yacht Club, Sea Island Stables, and Cabin Bluff, is a private resort and real estate development company founded in 1926. Sea Island Company owns and operates Sea Island Resorts, featuring two of the world's most exceptional destinations: the Forbes Five-Star Cloister at Sea Island and The Lodge at Sea Island. Sea Island is filing a Chapter 11 plan based upon an agreement to sell substantially all of its assets to Sea Island Acquisition LP, a limited partnership formed by investment funds managed by the global investment firms Oaktree Capital Management, L.P., and Avenue Capital Group. Sea Island filed for Chapter 11 protection on August 10, 2010 (Bankr. S.D. Ga. Case No. 10-21034). Sarah R. Borders, Esq.; Harris Winsberg, Esq.; Sarah L. Taub, Esq.; and Jeffrey R. Dutson, Esq., at King & Spalding LLP, assists the Debtor in its restructuring effort. Robert M. Cunningham, Esq., at Gilbert, Harrell, Sumerford & Martin PC, is the Debtor's co-counsel. FTI Consulting, Inc., is the Debtor's restructuring advisor. EPIQ Bankruptcy Solutions, LLC, is the Debtor's claims and notice agent. The official committee of unsecured creditors has retained Jordi Guso, Esq. and Berger Singerman, P.A. as its counsel. The Debtor estimated its assets and debts at $500 million to $1 billion as of the Petition Date. Affiliates Sea Island Coastal Properties, LLC; Sea Island Services, Inc.; Sea Island Resort Residences, LLC; Sea Island Apparel, LLC; First Sea Island, LLC; and Sical, LLC, filed separate Chapter 11 petitions on August 10, 2010. SEA ISLAND: Committee Taps Berger Singerman as Bankr. Counsel ------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Sea Island Company, et al., asks the U.S. Bankruptcy Court for the Southern District of Georgia for permission to employ Jordi Guso, Esq. and Berger Singerman, P.A. as its counsel. Berger Singerman will, among other things: -- consult with the Committee concerning the administration of the Debtors' cases; -- investigate the acts, conduct, assets and liabilities, and financial condition of the Debtors; and -- participate in the negotiations in respect of the formulation of a Plan of Reorganization for the Debtors. Mr. Guso, a shareholder of Berger Singerman, tells the Court that the hourly rates of the firm's personnel are: Paul Steven Singerman $560 Mr. Guso $525 Associate Attorneys $260 - $425 Legal Assistants and Parlegals $75 - $195 Mr Guso assures the Court that Berger Singerman is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Guso can be reached at: BERGER SINGERMAN, P.A. 350 E. Las Olas Boulevard, Suite 1000 Fort Lauderdale, FL 33301 BERGER SINGERMAN, P.A. 200 South Biscayne Boulevard, Suite 1000 Miami, FL 33131 BERGER SINGERMAN, P.A. 2650 North Military Trail, Suite 240 Boca Raton, FL 33431-7291 BERGER SINGERMAN, P.A. 125 South Gadsden Street, Suite 300 Tallahassee, FL 32301 About Sea Island St. Simons Island, Georgia-based Sea Island Company -- http://www.seaisland.com/-- aka Sea Island Shooting School, Sea Island Yacht Club, Sea Island Stables, and Cabin Bluff, is a private resort and real estate development company founded in 1926. Sea Island Company owns and operates Sea Island Resorts, featuring two of the world's most exceptional destinations: the Forbes Five-Star Cloister at Sea Island and The Lodge at Sea Island. Sea Island is filing a Chapter 11 plan based upon an agreement to sell substantially all of its assets to Sea Island Acquisition LP, a limited partnership formed by investment funds managed by the global investment firms Oaktree Capital Management, L.P., and Avenue Capital Group. Sea Island filed for Chapter 11 protection on August 10, 2010 (Bankr. S.D. Ga. Case No. 10-21034). Sarah R. Borders, Esq.; Harris Winsberg, Esq.; Sarah L. Taub, Esq.; and Jeffrey R. Dutson, Esq., at King & Spalding LLP, assists the Debtor in its restructuring effort. Robert M. Cunningham, Esq., at Gilbert, Harrell, Sumerford & Martin PC, is the Debtor's co-counsel. FTI Consulting, Inc., is the Debtor's restructuring advisor. EPIQ Bankruptcy Solutions, LLC, is the Debtor's claims and notice agent. The Debtor estimated its assets and debts at $500 million to $1 billion as of the Petition Date. Affiliates Sea Island Coastal Properties, LLC; Sea Island Services, Inc.; Sea Island Resort Residences, LLC; Sea Island Apparel, LLC; First Sea Island, LLC; and Sical, LLC, filed separate Chapter 11 petitions on August 10, 2010. SEA ISLAND: Committee Taps GlassRatner as Financial Advisor ----------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Sea Island Company, et al., asks the U.S. Bankruptcy Court for the Southern District of Georgia for permission to employ GlassRatner Advisory & Capital Group, LLC as its financial advisor. GlassRatner will assist the Committee in collecting and analyzing financial and other information in relation to the Debtors' Chapter 11 cases. Ronald L. Glass, principal of GlassRatner, tells the Court that the hourly rates of GlassRatner's personnel range from $150 to $500. Mr. Glass assures the Court that GlassRatner is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Sea Island St. Simons Island, Georgia-based Sea Island Company -- http://www.seaisland.com/-- aka Sea Island Shooting School, Sea Island Yacht Club, Sea Island Stables, and Cabin Bluff, is a private resort and real estate development company founded in 1926. Sea Island Company owns and operates Sea Island Resorts, featuring two of the world's most exceptional destinations: the Forbes Five-Star Cloister at Sea Island and The Lodge at Sea Island. Sea Island is filing a Chapter 11 plan based upon an agreement to sell substantially all of its assets to Sea Island Acquisition LP, a limited partnership formed by investment funds managed by the global investment firms Oaktree Capital Management, L.P., and Avenue Capital Group. Sea Island filed for Chapter 11 protection on August 10, 2010 (Bankr. S.D. Ga. Case No. 10-21034). Sarah R. Borders, Esq.; Harris Winsberg, Esq.; Sarah L. Taub, Esq.; and Jeffrey R. Dutson, Esq., at King & Spalding LLP, assists the Debtor in its restructuring effort. Robert M. Cunningham, Esq., at Gilbert, Harrell, Sumerford & Martin PC, is the Debtor's co-counsel. FTI Consulting, Inc., is the Debtor's restructuring advisor. EPIQ Bankruptcy Solutions, LLC, is the Debtor's claims and notice agent. The official committee of unsecured creditors has retained Jordi Guso, Esq. and Berger Singerman, P.A. as its counsel. The Debtor estimated its assets and debts at $500 million to $1 billion as of the Petition Date. Affiliates Sea Island Coastal Properties, LLC; Sea Island Services, Inc.; Sea Island Resort Residences, LLC; Sea Island Apparel, LLC; First Sea Island, LLC; and Sical, LLC, filed separate Chapter 11 petitions on August 10, 2010. SEA ISLAND: Starwood-Anschutz Submits $199-Mil. Offer for Assets ---------------------------------------------------------------- J. Scott Trubey at the Atlanta Journal-Constitution reports that Starwood Capital Group and Anschutz Entertainment Group made a $199 million offer for the assets of Sea Island Co., surpassing the $197.5 million bid of Oaktree Capital Management and Avenue Capital Group. Mr. Trubey said a federal bankruptcy judge nixed the new bid, saying that if the Starwood-Anschutz partnership wanted to bid for the asset, it will have to do so at an auction set for Oct. 1, 2010. A group of unsecured creditors backed the Starwood-Anschutz bid. Synovus Financial, Bank of America and Back of Scottland owed Sea Island about $500 million, he adds. A break-up fee of $5.9 million is in place under the deal with Oaktree and Avenue, meaning a bid would have to top $203.4 million to exceed its value including that fee, relates Mr. Trubey. About Sea Island St. Simons Island, Georgia-based Sea Island Company -- http://www.seaisland.com/-- aka Sea Island Shooting School, Sea Island Yacht Club, Sea Island Stables, and Cabin Bluff, is a private resort and real estate development company founded in 1926. Sea Island Company owns and operates Sea Island Resorts, featuring two of the world's most exceptional destinations: the Forbes Five-Star Cloister at Sea Island and The Lodge at Sea Island. Sea Island is filing a Chapter 11 plan based upon an agreement to sell substantially all of its assets to Sea Island Acquisition LP, a limited partnership formed by investment funds managed by the global investment firms Oaktree Capital Management, L.P., and Avenue Capital Group. Sea Island filed for Chapter 11 protection on August 10, 2010 (Bankr. S.D. Ga. Case No. 10-21034). Sarah R. Borders, Esq.; Harris Winsberg, Esq.; Sarah L. Taub, Esq.; and Jeffrey R. Dutson, Esq., at King & Spalding LLP, assists the Debtor in its restructuring effort. Robert M. Cunningham, Esq., at Gilbert, Harrell, Sumerford & Martin PC, is the Debtor's co-counsel. FTI Consulting, Inc., is the Debtor's restructuring advisor. EPIQ Bankruptcy Solutions, LLC, is the Debtor's claims and notice agent. The official committee of unsecured creditors has retained Jordi Guso, Esq. and Berger Singerman, P.A. as its counsel. The Debtor estimated its assets and debts at $500 million to $1 billion as of the Petition Date. Affiliates Sea Island Coastal Properties, LLC; Sea Island Services, Inc.; Sea Island Resort Residences, LLC; Sea Island Apparel, LLC; First Sea Island, LLC; and Sical, LLC, filed separate Chapter 11 petitions on August 10, 2010. SEDONA DEVELOPMENT: Court Approves Unsecured Loan from Recap ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Arizona authorized Sedona Development Partners, LLC, and The Club at Seven Canyons, LLC, to borrow up to $300,000 from Seven Canyons Recap, LLC. As reported in the Troubled Company Reporter on August 19, 2010, the financing terms include: Principal Amount $300,000 Interest Rate 7.5% per annum Maturity Date June 11, 2013 Monthly Payments None (Principal and accrued interest are due upon maturity. Priority Funds advanced would constitute an administrative expense against the Debtors' estate. The Debtor would use the money to maintain its operations and to preserve the 18-hole golf course and related facilities, including luxury villas, a practice park, range house, and tennis courts in Sedona, Arizona, known generally as Seven Canyons. Recap will be entitled to an administrative-expense priority for the repayment of any funds advanced as part of the unsecured advance. About Sedona Development Partners Sedona Development Partners owns an 18-hole golf course and related properties, including luxury villas, a practice park, range house, tennis courts and related facilities in Sedona, Arizona, known generally as Seven Canyons. The Club at Seven Canyons, LLC, operates the golf course and related facilities for SDP. SDP is the manager and sole member of the Club. Sedona Development Partners filed for Chapter 11 bankruptcy protection on May 27, 2010 (Bankr. D. Ariz. Case No. 10-16711). The Club At Seven Canyons filed a separate Chapter 11 petition (Bankr. D. Ariz. Case No. 10-16714). Polsinelli Shughart PC assists the Debtors in their restructuring efforts. Lender Specialty Trust is represented by Joseph E. Cotterman, Esq., and Nathan W. Blackburn, Esq., at Gallagher & Kennedy, P.A. Sedona disclosed $29,171,168 in assets and $121,679,994 in liabilities. SHELDRAKE LOFTS: Taps Davidoff Malito as Bankruptcy Counsel ----------------------------------------------------------- Sheldrake Lofts LLC, asks the U.S. Bankruptcy Court for the Southern District of New York for permission to employ Davidoff Malito & Hutcher LLP as counsel. Davidoff Malito will represent the Debtor in the Chapter 11 proceedings. David Wander, Esq., a partner at Davidoff Malito, tells the Court that the hourly rates of Davidoff Malito's personnel are: Partners $410 - $675 Senior Counsel and Of Counsel $235 - $500 Associates $235 - $420 Paralegals $120 - $185 Mr. Wander assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Wander can be reached at: DAVIDOFF MALITO & HUTCHER LLP 605 Third Avenue, 34th Floor New York, NY 10158 E-mail: dhw@dmlegal.com About Sheldrake Lofts LLC New Rochelle, New York-based Sheldrake Lofts LLC filed for Chapter 11 protection on August 10, 2010 (Bankr. S.D.N.Y. Case No. 10- 23650). David H. Wander, Esq., at Davidoff, Malito & Hutcher, LLP, assists the Debtor in its restructuring effort. The Debtor estimated assets at $50 million to $100 million and debts at $10 million to $50 million as of the Petition Date. SRKO FAMILY: Has Until September 19 to Propose Reorganization Plan ------------------------------------------------------------------ The Hon. Sidney B. Brooks of the U.S. Bankruptcy Court for the District of Colorado extended until September 19, 2010, SRKO Family Limited Partnership's exclusive period to file a proposed Plan of Reorganization. The Court also granted the Debtor additional days in soliciting acceptances for the Plan. The SRKO Family Limited Partnership, dba Colorado Crossing, is based in Colorado Springs, Colorado. The Company filed for Chapter 11 bankruptcy protection on February 19, 2010 (Bankr. D. Colo. Case No. 10-13186). The Company estimated $10 million to $50 million in assets and $50 million to $100 million in liabilities. ST. MARY'S: S&P Cuts Long-Term Rating to 'BB+' From 'BBB' --------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term rating to 'BB+' from 'BBB-' on Mount St. Mary's University, Md.'s outstanding debt issued by Frederick County and Frederick County Educational Facilities. The outlook is stable. "The lowered rating reflects our view of the university's continued operating losses and steady increases in total debt levels," said Standard & Poor's credit analyst Jessica Matsumori. "Further weakening the rating is the deterioration of the university's financial resources and its weak demand profile -- as evidenced by declining enrollment, high acceptance rates, low matriculation rates, and declining retention rates." "Further deterioration of financial resources or additional debt could have negative credit implications, while balanced operations combined with stronger demand characteristics and growth in financial resource indicators could positively impact the rating," Ms. Matsumori said. Founded in 1808, Mount St. Mary's University is a private, Catholic, liberal arts institution located on a 1,400-acre campus near Emmitsburg, Md. The institution became a university in 2004. In addition to the main campus, the university has additional academic sites in Frederick, Westminster, and Hagerstown. The university also hosts a seminary on campus. The largest majors are business, education, and biology. Graduate programs include a master's degree in business administration and a master's degree of arts in teaching. SUN COUNTRY: Wins Confirmation of Plan of Reorganization -------------------------------------------------------- Sun Country Airlines disclosed the confirmation of its plan of reorganization which allows the company to exit bankruptcy. The plan was confirmed by Judge Robert J. Kressel during a court hearing this morning in Minneapolis and was overwhelmingly approved by the creditors eligible to vote. The plan provides for cash payments to certain creditors, as well as a distribution of equity in the reorganized company to other creditors. "Today marks an important step in the company's emergence from bankruptcy," said Stan Gadek, Sun Country Airlines president and CEO. "I wish to thank both our employees and our customers who continued to support the company during this process. The plan's confirmation highlights the successful turnaround of Sun Country Airlines which will emerge as a profitable and debt-free company." Gadek went on to say, "Going forward, Sun Country is well positioned for growth and success as The Hometown Airline." David Shaffer at the Star Tribune reports the plan of reorganization gives a court-appointed receiver about 75% of the stock, and it sets the stage for an eventual sale of Sun Country to a new owner. Some of the proceeds of the sale will partly repay investors burned in a $3.6 million Ponzi scheme that sent Tom Petters to prison for 50 years. Receiver Doug Kelley said the airline is on the market. According to the Star Tribune, some of the airline's creditors opted for partial cash settlements. More than 40 claimants that were owed $684,000 accepted 40 cents on the dollar. Four other unsecured creditors with claims of about $1 million, including the Metropolitan Airports Commission, will be paid 35 cents on the dollar in three installments, he adds. According to the Star Tribune, the airline plans to lease three more Boeing 737-800s, bringing its full-time fleet to 12, and add 100 jobs, including pilots and flight attendants. Sun Country will launch new routes from Lansing, Michigan, to Mexico, Florida and the Caribbean, along with the usual additional winter routes from Minneapolis-St.Paul to those vacation spots. About Sun Country St. Paul, Minnesota-based Sun Country Airlines (MN Airlines, LLC, d.b.a. Sun Country Airlines) -- http://www.SunCountry.com/-- flies to popular destinations in the U.S., Mexico and the Caribbean. Sun Country Airlines and its debtor-affiliates Petters Aviation LLC and MN Airline Holdings Inc. filed separate petitions for Chapter 11 relief on Oct. 6, 2008 (Bankr. D. Minn. Lead Case No. 08-45136). Brian F. Leonard, Esq., Matthew R. Burton, Esq., at Leonard O'Brien et al., represent the Debtors as counsel. In its petition, Petters Aviation LLC estimated $50 million and $100 million in total assets and debts. SWB WACO: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: SWB Waco SH, L.P. 13135 Dairy Ashford, Suite 150 Sugar Land, TX 77478 Bankruptcy Case No.: 10-38001 Chapter 11 Petition Date: September 7, 2010 Court: U.S. Bankruptcy Court Southern District of Texas (Houston) Judge: Marvin Isgur Debtor's Counsel: David Ronald Jones, Esq. PORTER AND HEDGES LLP 1000 Main Street, 36th Floor Houston, TX 77002-6336 Tel: (713) 226-6653 Fax: (713) 226-6253 E-mail: djones@porterhedges.com -- and -- WALKER & PATTERSON, P.C. P.O. Box 61301 Houston, TX 77208-1301 Tel: (713) 956-5577 Fax: (713) 956-5570 E-mail: jjp@walkerandpatterson.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Kevin Matocha, President, SWB Waco SH GP, LLC. The Company did not file a list of creditors together with its petition. TRAFFORD DISTRIBUTING: Judge's Fiance Doesn't Warrant Recusal ------------------------------------------------------------- WestLaw reports that a bankruptcy judge's fiance, as a mere salaried employee of the law firm that represented the Chapter 7 trustee in an adversary proceeding before the judge, who was not shown to have any personal involvement in the proceeding, did not have a "financial interest" in the outcome of the proceeding, such as could provide a basis for the judge's recusal. Moreover, mere speculation by the movants that the judge's fiance may have worked on the proceeding, which was grounded solely upon the fiance's employment by the firm and on the bankruptcy judge's adverse rulings, was insufficient to require the judge's recusal. In re Trafford Distributing Center, Inc., --- B.R. ----, 2010 WL 3419669 (Bankr. S.D. Fla.) (Olson, J.). A copy of the Honorable John K. Olson's Order dated Aug. 3, 2010, is available at: http://www.leagle.com/unsecure/page.htm?shortname=inbco20100830392 "My fiance is not involved in these proceedings and he is not an equity partner at Ruden McClosky," Judge Olson says. "The grounds for recusal asserted by the movants are explicitly addressed by Sec. 455(b), and I find that recusal is not required under any of its provisions. I further find that no well-informed, thoughtful, and objective observer would argue that a sitting federal judge should recuse himself from every matter in which his spouse's firm represents a party, so long as: (1) his spouse is not involved in the case; (2) his spouse is not an equity partner in the firm; and (3) the guidelines imposed by Congress in Sec. 455(b) are otherwise followed." Trafford Distributing Center, Inc., a/k/a Trafford Distribution Center, Inc., sought Chapter 11 protection (Bankr. S.D. Fla. Case No. 08-17980) on June 13, 2008. Soneet R. Kapila was appointed as the Chapter 11 trustee in the Debtor's chapter 11 case and, following its conversion to a chapter 7 liquidation proceeding, now serves as the Chapter 7 Trustee. The Trustee is represented by lawyers at the law firm of Ruden McClosky. TRIBUNE CO: Bank Debt Trades at 36% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Tribune Co. is a borrower traded in the secondary market at 63.56 cents-on-the- dollar during the week ended Friday, September 10, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.59 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 217 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) TRICO MARINE: DIP Financing, Cash Collateral Use Gets Interim OK ---------------------------------------------------------------- Trico Marine Services, Inc., et al., ask for authorization from the Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware to obtain postpetition secured financing from Tennenbaum Opportunities Partners V, LP, Special Value Continuation Partners, LP, and Tennenbaum DIP Opportunity Fund, LLC, and to use the cash collateral. The DIP lenders have committed to provide up to $35 million in secured superpriority priming senior credit facility, consisting of: (i) DIP financing new money loans and, upon entry of the final order, (ii) the refinancing loan to refinance the amended U.S. credit facility debt. Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell LLP, explained that the Debtors need the money to fund their Chapter 11 case, pay suppliers and other parties. The DIP facility will mature on March 11, 2011. The Debtor will pay interest on unpaid principal under the DIP loans at a rate of 11.5% per annum plus the greater of (i) the LIBOR rate or (ii) 2.5%. In the event of default, the Debtor will pay an additional 2% interest. The liens granted pursuant to the DIP financing agreement on collateral securing the DIP financing agreement will be valid, fully perfected, first priority and superior to any other security, mortgage, or collateral interest, lien, or claim to the DIP collateral. The loan parties will grant these liens and security interests on all assets: (i) liens on unencumbered property; (ii) priming liens; (iii) liens on property subject to prior liens; (iv) avoidance actions. DIP obligations will constitute an allowed superpriority administrative expense claim having priority over any and all other administrative claims against the Debtors. The Debtors' obligations under the DIP facility are secured by substantially all of the Debtors' assets in California. However, their building in Los Angeles is excluded. The DIP lien is subject to a carveout for U.S. Trustee and Clerk of Court fees; up to $500,000 for the fees and expenses of Vinson & Elkins LLP, Cahill Gordon & Reindel LLP and Morris, Nichols, Arsht & Tunnell LLP; up to $500,000 for the fees and expenses o other professionals retained by the Debtors, and up to $150,000 for the fees and expenses of the creditors' committee professionals. The Debtors are required to pay these fees to the DIP lenders: (i) exit fee of 1% of amount prepaid or repaid or required to be prepaid or repaid payable upon the date of each repayment or prepayment of any DIP loans or the amount of commitments terminated without being funded and (ii) reasonable and documented costs and expenses of the DIP Lenders incurred in connection with the execution, administration, amendment and enforcement of the interim court order and the DIP financing agreement and all related documents. The Debtors covenant with the Lenders not to let the consolidated EBITDA for any month ending on these date to be less than the amount set forth: Minimum Monthly Consolidated EBITDA Period Ended (in millions) August 31, 2010 ($3.50) September 30, 2010 ($1.50) October 31, 2010 ($1.75) November 30, 2010 ($1.75) December 31, 2010 ($1.60) January 31, 2011 ($1.40) February 28, 2011 ($1.40) The Debtors must not let its consolidated cash flow for the period beginning on the effective date or the day immediately following the last day of the prior period, as applicable, and ending on the date set forth to be less than the amount set forth: Minimum Monthly Consolidated Cash Flow Trailing Four Week Period Ending (in millions) September 10, 2010 ($3.75) October 8, 2010 ($6.60) November 5, 2010 ($0.75) December 3, 2010 ($0.25) December 31, 2011 ($1.50) January 28, 2011 ($8.00) February 25, 2011 ($1.00) The Debtors must not let its consolidated cash flow for the period beginning on August 20, 2010, and ending on the date set forth below to be less than the amount set fort: Minimum Cumulative Consolidated Cash Flow Cumulative Period Ending (in millions) September 10, 2010 ($3.75) October 8, 2010 ($10.00) November 5, 2010 ($11.00) December 3, 2010 ($10.00) December 31, 2011 ($11.50) January 28, 2011 ($18.00) February 25, 2011 ($18.75) The Debtors must not let liquidity as of the date set forth to be less than the amount set forth in: Period Ended Minimum Liquidity Requirement (in millions) September 3, 2010 $7.5 September 17, 2010 $5.5 October 1, 2010 $4.0 October 15, 2010, and the last day of each two week period $3.5 thereafter A copy of the DIP financing is available for free at: http://bankrupt.com/misc/TRICO_dipfinancingpact.pdf http://bankrupt.com/misc/TRICO_dipfinancingpact2.pdf http://bankrupt.com/misc/TRICO_dipfinancingpact3.pdf Certain beneficial holders of 3.00% senior convertible debentures due 2027 issued by the Debtor objected to the Debtors' request to obtain DIP financing and use cash collateral, saying that The Debtors do not provide any meaningful disclosure of what they hope to accomplish in Chapter 11. "Yet the Debtors' proposed 13- week DIP budget indicates that the Debtors will bleed nearly $6.5 million, primarily on professional fees of $5.6 million. The bleeding would be even worse but for proposed asset sales that purportedly will generate $10 million," the 3% debenture holders said. The 3% debenture holders are represented by Pacusk1i Stang Ziehl & Jones LLP and Kasowitz, Benson, Torres & Friedman LLP Mr. Dehny said that the Debtors will also use cash collateral to provide additional liquidity. The Debtors will use the collateral pursuant to a weekly budget, a copy of which is available for free at http://bankrupt.com/misc/TRICO_budget.pdf The Court has set a final hearing for September 21, 2010, at 9:00 a.m. prevailing Eastern time on the Debtors' request to obtain DIP financing and use cash collateral. About Trico Marine Texas-based Trico Marine Services, Inc. -- http://www.tricomarine.com-- provides subsea services, subsea trenching and protection services, and towing and supply vessels. Trico filed for Chapter 11 protection on August 25, 2010 (Bankr. D. Del. Case No. 10-12653). John E. Mitchell, Esq., Angela B. Degeyter, Esq., and Harry A. Perrin, Esq., at Vinson & Elkins LLP, assist the Debtor in its restructuring effort. The Debtor disclosed $30,562,681 in total assets and $353,606,467 in total liabilities as of the Petition Date. Affiliates Trico Marine Assets, Inc. (Bankr. D. Del. Case No. 10- 12648), Trico Marine Operators, Inc. (Case No. 10-12649), Trico Marine International, Inc. (Case No. 10-12650), Trico Marine Cayman, L.P. (Case No. 10-12651), and Trico Holdco, LLC (Case No. 10-12652) filed separate Chapter 11 petitions. Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell LLP, is the Debtors' Delaware counsel. Cahill Gordon & Reindell LLP is the Debtors' special counsel. Alix Partners Services, LLC, is the Debtors' chief restructuring officer. Epiq Bankruptcy Solutions is the Debtors' claims and notice agent. TRICO MARINE: Section 341(a) Meeting Scheduled for Oct. 6 --------------------------------------------------------- The U.S. Trustee for Region 3 will convene a meeting of Trico Marine Services, Inc., et al.'s creditors on October 6, 2010, 9:30 a.m. (Eastern Time). The meeting will be held at 824 North Market Street, Wilmington, Delaware 19801. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Texas-based Trico Marine Services, Inc. -- http://www.tricomarine.com/-- provides subsea services, subsea trenching and protection services, and towing and supply vessels. Trico filed for Chapter 11 protection on August 25, 2010 (Bankr. D. Del. Case No. 10-12653). John E. Mitchell, Esq., Angela B. Degeyter, Esq., and Harry A. Perrin, Esq., at Vinson & Elkins LLP, assist the Debtor in its restructuring effort. The Debtor disclosed $30,562,681 in total assets and $353,606,467 in total liabilities as of the Petition Date. Affiliates Trico Marine Assets, Inc. (Bankr. D. Del. Case No. 10- 12648), Trico Marine Operators, Inc. (Case No. 10-12649), Trico Marine International, Inc. (Case No. 10-12650), Trico Marine Cayman, L.P. (Case No. 10-12651), and Trico Holdco, LLC (Case No. 10-12652) filed separate Chapter 11 petitions. Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell LLP, is the Debtors' Delaware counsel. Cahill Gordon & Reindell LLP is the Debtors' special counsel. Alix Partners Services, LLC, is the Debtors' chief restructuring officer. Epiq Bankruptcy Solutions is the Debtors' claims and notice agent. UAL CORP: Fitch Hikes Ratings to 'B-' Prior to Closing of Merger ---------------------------------------------------------------- Fitch Ratings has upgraded the debt ratings of UAL Corp. and its principal operating subsidiary United Airlines, Inc., prior to the expected closing of the merger between United and Continental Airlines. Fitch has also assigned a rating of 'BB-/RR1' to certain senior secured issues, which are obligations of United and guaranteed by UAL. The Rating Outlook for both UAL and United is Positive. The upgrade follows steady strengthening in United's stand-alone credit profile during 2010 and clear progress toward the resolution of merger-related issues in recent weeks, as the two airlines look to close the transaction next month. United's stand- alone profile has been supported by steady improvements in revenue performance and a relatively benign jet fuel price environment since the air travel demand recovery began to take shape a year ago. Industry capacity constraint and a consistent rebound in business travel demand since last fall have helped drive solid gains in passenger yields and revenue per available seat mile (RASM), expanding margins and leading to a sharp turnaround in free cash flow (FCF) generation during the economic recovery. Throughout 2010, United's yield and RASM growth has consistently led the industry, with solid international market performance driving much of United's year-over-year unit revenue recovery from recessionary levels in 2009. During the second quarter, United's consolidated passenger RASM increased by 27%. The carrier generated $1.2 billion of FCF in the first half of the year, supporting a significant improvement in unrestricted liquidity to $4.9 billion as of June 30. Following the Aug. 27 decision by the U.S. Department of Justice to end its antitrust investigation of the proposed United- Continental merger, the last significant obstacle to the close of the transaction has been removed. Both carriers have indicated that they expect the merger to be closed on Oct. 1. In addition to the elimination of regulatory uncertainty, prospects for the eventual integration of the two airlines' unionized work groups have improved following the establishment of a transition and process framework for negotiations involving pilots at both airlines. The transition agreement reduces the risk that protracted negotiations over pay rates and seniority could significantly delay the full integration of the two labor groups after the merger is closed. Fitch continues to believe that the merger will ultimately support sustainable improvements in margins and FCF generation relative to other U.S. airlines, and will generally contribute to the establishment of a more disciplined approach toward capacity management in a cyclical industry that remains uniquely vulnerable to external demand and fuel price shocks. Management's commitment to a continuation of capacity discipline in 2011 and beyond represents an important risk mitigant at a time when the sustainability of the global economic recovery has become more uncertain. Even as industry revenue comparisons become more challenging, Fitch believes that the combined carrier retains sufficient fleet and network planning flexibility to successfully manage a more difficult demand environment, should it emerge, in 2011 and beyond. Calls on cash flow for the post-merger airline are substantial, due in large part to high stand-alone leverage levels at both United and Continental. Including convertible note issues that can be put back to the new United next year ($876 million face value for two United convertible issues), 2011 combined debt maturities total $2.5 billion. Strong FCF generation will therefore be critical next year if the post-merger carrier is to continue the de-levering process that has begun in 2010. Liquidity for the post-merger airline will be strong, providing significant flexibility to reduce debt levels without pushing cash below 20%-25% of pro forma revenue in 2011. Following CAL's August secured note issuance of $800 million, combined unrestricted cash and investments at closing will likely approach $9 billion. This reflects not only the FCF turnaround witnessed in 2010, but also the liberalization of capital market access that has allowed both carriers to raise debt on much more attractive terms since the summer of 2009. The combined United-CAL route network offers clear opportunities for the post-merger carrier to deliver a sustainable RASM premium to the industry. The two stand-alone networks are very complementary, with United's notable strength in trans-Pacific routes meshing well with CAL's strong market position in New York and into Latin America via the Houston hub. The depth and breadth of the combined route network, together with the premium product focus of both carriers, should place post-merger United in a strong position to deepen penetration in key high-fare business markets, laying a foundation for better RASM premiums over time. Revenue-related synergies will ultimately be more decisive in determining the long-term financial success of the merger. Recognizing immediate cost-saving opportunities associated with the elimination of duplicative operations (in particular, headquarters and certain overlapping airport operations), 2011 unit costs will likely be materially higher as pay rates and benefits are pushed toward industry-leading levels. One-time cash integration costs, moreover, are likely to be significant, and will put some pressure on FCF for both UAL and CAL this year and into 2011. Assuming a slow and uneven U.S. economic expansion, relatively stable jet fuel prices below $2.50 per gallon and mid-single digit RASM growth during 2011, Fitch expects the combined carrier to generate positive FCF in excess of $1.5 billion next year, providing room to push pro forma lease-adjusted leverage down, while maintaining unrestricted cash balances above $7 billion. Fuel price volatility remains a major concern for United and the entire industry, and most carriers have resumed fairly active fuel hedging programs in 2010 as energy prices rebounded from low levels during the recession. For the remainder of 2010, United has hedged over 75% of projected fuel consumption through swaps and call options with average crude oil equivalent price caps of approximately $80 per barrel. CAL also has protection in place through the end of the year (approximately 50% of projected consumption hedged with crude oil caps at approximately $85 per barrel). An upgrade of United's post-merger IDR to 'B' is possible in 2011 if a continuation of positive yield and RASM comparisons, coupled with a generally favorable fuel price scenario (average jet fuel prices below $2.50 per gallon) drive strongly positive FCF and allow the post-merger airline to fund next year's maturities largely out of internally generated cash flow and excess cash on the balance sheet. Conversely, a revision of the Rating Outlook to Stable could occur if a sharp slowdown in U.S. economic growth contributes to stagnating industry unit revenue growth or if a spike in global energy prices pressures the new United's 2011 operating margins, thereby weakening the carrier's FCF profile next year. Following the close of the transactions, ratings for CAL and United will be closely linked as wholly-owned subsidiaries of the newly created United Continental Holdings parent. Once a single operating certificate is received, more complete linkage of the two separately rated entities will likely occur. United's ratings, which were placed on Rating Watch Positive in May at the time the merger plan was announced, have been upgraded: United -- Issuer Default Ratings (IDR) to 'B-' from 'CCC'; -- Secured bank credit facility to 'BB-/RR1' from 'B+/RR1'; -- Senior unsecured to 'CC/RR6' from 'C/RR6'. In addition, Fitch has upgraded UAL's ratings: -- IDR to 'B-' from 'CCC'; -- Senior unsecured to 'CC/RR6' from 'C/RR6'. Fitch has also assigned a rating of 'BB-/RR1' to each of these senior secured issues, which are obligations of United and guaranteed by UAL: -- $175 million senior secured notes due 2012; -- $500 million senior secured notes due 2013; -- $200 million senior second lien notes due 2013. UNIVERSAL BUILDING: Court Approves Sale to Oaktree and Solus ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware approved the sale pursuant to Section 363 of the U.S. Bankruptcy Code of certain assets of Universal Building Products, Inc. and certain of its subsidiaries (Universal) to UBP Acquisition Corporation (UBPAC). UBPAC was formed by certain funds managed by Oaktree Capital Management, L.P. (Oaktree) and Solus Alternative Asset Management LP (Solus) for the purpose of acquiring these assets at the time Universal voluntarily filed under Chapter 11 of the U.S. Bankruptcy Code on August 4, 2010. UBPAC owns 100% of the senior secured debt of Universal and bid a portion of its senior secured debt in connection with the acquisition. UBPAC also agreed to provide a $6 million debtor-in- possession financing inside of bankruptcy in order to complete the asset sale and Chapter 11 process. UBPAC will transfer substantially all of the assets acquired from Universal to Dayton Superior Corporation (Dayton), the leading North American provider of specialized products for the nonresidential concrete construction market. Oaktree and Solus are the majority equity holders of Dayton. "We will consolidate the Universal assets under the Dayton umbrella," said Jordon Kruse, a Managing Director at Oaktree. "This represents a significant expansion of Dayton's product portfolio and market coverage. We look forward to working with the Dayton management team as we continue to enhance Dayton's leading positions in the supply of products and services to the concrete construction industry." Oaktree is a premier global alternative and non-traditional investment manager with $75 billion in assets under management as of June 30, 2010. Solus is a New York-based alternative asset management firm. About Universal Building Westminster, California-based Universal Building Products, Inc., dba UBP, filed for Chapter 11 bankruptcy protection on August 3, 2010 (Bankr. D. Del. Case No. 10-12453). Mark Minuti, Esq., MaryJo Bellew, Esq., and Teresa K.D. Currier, Esq., at Saul Ewing LLP, assists the Debtor in its restructuring effort. UBP estimated $1 million to $10 million in assets and $10 million to $50 million in debts in its petition. The Debtor's affiliates Accubrace, Inc. (Bankr. D. Del. Case No. 10-12454), Don De Cristo Concrete Accessories, Inc. (Case No. 10- 12455), Form-Co, Inc. (Case No. 10-12456), and Universal Form Clamp, Inc. (Case No. 10-12457), filed separate Chapter 11 petitions on August 4, 2010. Accubrace estimated $500,001 to $1 million in assets and $10 million to $50 million in debts. VALEANT PHARMACEUTICALS: S&P Affirms 'BB-' Corporate Family Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on Aliso Viejo, Calif.-based Valeant Pharmaceuticals International. At the same time, S&P affirmed its 'B' issue-level and '6' recovery ratings on the Company's existing subordinated notes due 2013. In addition, S&P assigned a preliminary 'BB+' issue-level rating and preliminary '1' recovery rating to the Company's proposed $1.875 billion senior secured credit facility. The facility consists of a $250 million revolver due 2015, a $750 million term loan A due 2015, a $725 million term loan B due 2016, and a $150 million delayed-draw term loan B due 2016. S&P also assigned a preliminary 'B+' issue-level rating and preliminary '5' recovery rating to the proposed $1 billion of senior unsecured notes due no earlier than 2017. The Company will use proceeds from the proposed financing to pay current Valeant shareholders a special dividend, a one-time post- merger dividend, and expenses related to the transaction. "Our ratings on Valeant reflect its continued reliance on acquisitions for growth, a weak internal research and development (R&D) program, and an aggressive financial risk profile," said Standard & Poor's credit analyst Michael G. Berrian. These factors outweigh the broader product portfolio from the combined companies and strong liquidity. VAN HAM DAIRY: Files for Bankruptcy Protection in Toledo -------------------------------------------------------- Larry P. Vellequette at ToledoBlade.com reports that Van Ham Dairy Leasing LLC, a subsidiary of Vreba-Hoff Dairy Development LLC, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Toledo, Ohio, listing assets of less than $50,000 and liabilities of between $10 million and $50 million. According to Mr. Vellequette, the company shares its main business address with Vreba-Hoff Dairy, a Wauseon firm that has battled lawsuits from farmers and lenders alike as dairy prices have foundered in recent years. Two other Vreba-Hoff real-estate subsidiaries filed bankruptcy reorganizations in U.S. Bankruptcy Court in Indianapolis, said a person with knowledge of the matter. Midwest AG Investments LLC filed for reorganization in June to protect its assets, including agricultural land in Sandusky County, Ohio, and Lenawee County, Michigan, the person added. Van Ham Dairy Leasing LLC is a rural megadairy associated with a Wauseon firm that recruited Dutch dairy farmers to the Midwest. Van Ham Dairy Leasing, LLC, filed for Chapter 11 (Bankr. N.D. Ohio Case No. 10-36120) on Sept. 3, 2010. The Debtor estimated assets of up to $10 million and debts of $10 million to $50 million in its Chapter 11 petition. An affiliate, Van Ham Dairy, LLC, filed for Chapter 11 (Bankr. N.D. Ohio Case No. 10-33231) on May 10, 2010. David J. Coyle, Esq., at Shumaker, Loop & Kendrick, LLP, serves as counsel to the Debtors. VERENIUM CORP: Closes Sale of Cellulosic Biofuels Business to BP ---------------------------------------------------------------- Verenium Corporation has closed on the sale of its cellulosic biofuels business to BP Biofuels North America for $98.3 million, subject to the additional financial terms of the transaction announced on July 15, 2010. As reported in the Troubled Company Reporter on July 21, 2010, Verenium retains its commercial enzyme business, including its biofuels enzyme products, and has the right to develop its own cellulosic enzyme program. Verenium also retains select R&D capabilities, as well as the potential option to access select biofuels technology developed by BP using the technology acquired from Verenium through this transaction. UBS Investment Bank acted as financial advisor to Verenium in connection with this transaction. About Verenium Corporation Cambridge, Mass.-based Verenium Corporation (NASDAQ: VRNM) -- http://www.verenium.com/-- is a pioneer in the development and commercialization of high-performance enzymes for use in industrial processes. Verenium currently sells enzymes developed using its R&D capabilities to industrial customers globally for use in markets including grain and oilseed processing, biofuels, animal health and nutrition and other specialty industrial processes. The Company's balance sheet as of June 30, 2010, showed $146.3 million in total assets, $136.1 million in total liabilities, and stockholders' equity of $10.2 million. * * * As reported in the Troubled Company Reporter on March 19, 2010, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring operating losses and accumulated deficit of $630.0 million at December 31, 2009. WALLACE THEATER: S&P Junks Corporate Credit Rating -------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Portland, Ore.-based Wallace Theater Holdings Inc. to 'CCC+' from 'B-'. The rating outlook is negative. S&P rated Wallace on a consolidated basis with subsidiary Hollywood Theaters Inc. S&P also lowered issue-level rating on Wallace Theater's senior secured notes due 2013 to 'CCC+' (at the same level as the 'CCC+' corporate credit rating on the Company). The recovery rating on this debt remains unchanged at '3', indicating expectation of meaningful (50%-70%) recovery for noteholders in the event of a payment default. "The rating downgrade reflects Wallace Theater's narrowing liquidity in light of its fractional EBITDA coverage of interest and likely tough comparisons during the upcoming holiday and winter seasons," said Standard & Poor's credit analyst Hal Diamond. S&P's 'CCC+' rating reflects S&P's expectation that the Company's leverage will remain high, its EBITDA coverage of interest will continue to be thin, its discretionary cash flow generation will be weak, and that liquidity will be limited. S&P considers Wallace's business risk to be "vulnerable" because of its concentrated cash flow, the mature and highly competitive nature of the movie exhibition industry, and its exposure to the fluctuating popularity of movies. S&P also believes there is meaningful risk that proliferation of competing entertainment alternatives and shorter periods in theatrical release prior to home video and video-on-demand release could pressure U.S. movie exhibitors' attendance. Wallace operates in small-to-midsize markets, primarily in 15 states in the South Central, Midwestern, and Western U.S. It has upgraded its theater circuit over the past several years by closing poorly performing theaters and opening several new ones. Wallace's venues are relatively modern, and a large proportion of its screens have stadium seating. The proportion of its theaters with unfettered access to all films in release compares favorably with leading movie exhibitors. The Company's EBITDA margin, at around 15%, is toward the middle of its peer group. The limited appeal of Wallace's markets to competitors and the industry's currently low level of new theater development provide a modest degree of protection. Wallace has a "highly leveraged" financial profile. Lease- adjusted leverage was very high, at roughly 8.4x as of June 30, 2010, and in line with the debt-to-EBITDA ratio for the rating category. Leverage increased from 7.2x a year earlier as a result of declines in EBITDA and higher debt balances. EBITDA coverage of interest is now fractional, at 0.9x for the 12 months ended June 30, 2010. Discretionary cash flow was negative for the 12 months ended June 30, 2010, with interest expense consuming the majority of the Company's cash flow. S&P expects capital spending to moderate in 2011; however, discretionary cash flow could remain negative if box-office attendance does not increase. WASHINGTON CARD: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Washington Card Rooms LLC 760 Village Center Drive, Suite 200 Burr Ridge, IL 60527 Bankruptcy Case No.: 10-40087 Chapter 11 Petition Date: September 7, 2010 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Bruce W. Black Debtor's Counsel: William J Factor, Esq. THE LAW OFFICE OF WILLIAM J. FACTOR, LTD 1363 Shermer Road, Suite 224 Northbrook, IL 60062 Tel: (847) 239-7248 Fax: (847) 574-8233 E-mail: wfactor@wfactorlaw.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 two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb10-40087.pdf The petition was signed by Gary Grasso, vice-president- Legal. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Rascals Casinos LLC 10-40083 09/07/10 WEST COAST: N.D. Ind. Correct Venue Under "Nerve Center" Test ------------------------------------------------------------- WestLaw reports that the principal place of business, for venue purposes, of corporate or other non-individual Chapter 11 debtors that, following suspension of their license to do business as professional medical corporations in California, had no further business activities, other than the collection of unpaid accounts receivable, was the Northern District of Indiana where debtors' principal had relocated with all of the debtors' business records, and which was also the state in which the debtors' tax returns were filed. It did not matter that a receiver appointed to administer the accounts for the benefit of a California judgment creditor was appointed by a California court and was located in California. The receiver had no authority to act on behalf of the debtors, whose nerve center for any remaining management or operational decisions, such as they were, was the state to which their principal had moved. In re West Coast Interventional Pain Medicine, Inc., --- B.R. ----, 2010 WL 3385411 (Bankr. N.D. Ind.). West Coast Interventional Pain Medicine, Inc., San Diego Pain Management Consultants, Inc., Surgical Leasing Company, Inc., CV Surgical Management, Inc., and The Pain Management Group, Inc., sought chapter 11 protection (Bankr. N.D. Ind. Case No. 09-24379) on Oct. 9, 2009; are represented by Jeffrey C. Dan, Esq., and David K. Welch, Esq., at Crane, Heyman, Simon, Welch & Clar in Chicago, Ill.; and estimated their assets at more than $1 million and their debts at less than $1 million at the time of the filings. W.L. DUNN: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: W.L. Dunn Construction Company 180 N. Franklin Street Cochranton, PA 16314-9706 Bankruptcy Case No.: 10-11599 Chapter 11 Petition Date: September 3, 2010 Court: United States Bankruptcy Court Western District of Pennsylvania (Erie) Judge: Thomas P. Agresti Debtor's Counsel: Guy C. Fustine, Esq. KNOX MCLAUGHLIN GORNALL & SENNETT, P.C. 120 West Tenth Street Erie, PA 16501 Tel: (814) 459-2800 E-mail: mwernick@kmgslaw.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/pawb10-11599.pdf The petition was signed by Lisa Dunn Adams. YELLOWSTONE CLUB: Ch. 11 Trustee to Appeal Blixseth Ruling ---------------------------------------------------------- Dow Jones' DBR Small Cap reports that Marc S. Kirschner, the trustee of a trust set up to pay Yellowstone Club LLC's creditors under its Chapter 11 plan of reorganization, is appealing a court order directing club founder Timothy Blixseth to pay creditors $40.1 million rather than the $286.4 million he had sought. Mr. Kirschner is appealing the ruling to the Bankruptcy Appellate Panel for the Ninth Circuit, court papers show. The Troubled Company Reporter on September 9, 2010, ran a story on the bankruptcy court's order. About Yellowstone Club Located near Big Sky, Montana, Yellowstone Club -- http://www.theyellowstoneclub.com/-- is a private golf and ski community with more than 350 members, including Bill Gates and Dan Quayle. The Company was founded in 1999. Yellowstone Mountain Club LLC and its affiliates filed for Chapter 11 on Nov. 10, 2008 (Bankr. D. Mont. Case No. 08-61570). The Company's owner affiliate Edra D. Blixseth, filed for Chapter 11 on March 27, 2009 (Bankr. D. Mont. Case No. 09-60452). In June 2009, the Bankruptcy Court entered an order confirming Yellowstone's Chapter 11 Plan. Pursuant to the Plan, CrossHarbor Capital Partners, LLC, acquired equity ownership in the reorganized club for $115 million. Attorneys at Bullivant Houser Bailey PC and Bekkedahl & Green PLLC, represented the Debtors. The Debtors hired FTI Consulting Inc. and Ronald Greenspan as CRO. The official committee of unsecured creditors were represented by Parsons, Behle and Latimer, as counsel, and James H. Cossitt, Esq., at local counsel. Credit Suisse, the prepetition first lien lender, was represented by Skadden, Arps, Slate, Meagher & Flom. ZBB ENERGY: $46.9MM Accumulated Deficit Cues Going Concern Doubt ---------------------------------------------------------------- ZBB Energy Corporation filed on September 10, 2010, its annual report on Form 10-K for the fiscal year ended June 30, 2010. PKF LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company continues to incur significant operating losses and has an accumulated deficit of $46.9 million as of June 30, 2010. The Company reported a net loss of $9.6 million on $1.5 million of revenue for fiscal 2010, compared with a net loss of $5.6 million on $1.2 million of revenue for fiscal 2009. The increase in net loss was primarily the result of increases in advanced engineering and development expenses, selling, general and administrative expenses, and equipment impairment expenses, totaling $3.6 million. At June 30, 2010, the Company had a working capital deficit of $800,204 compared to a June 30, 2009 working capital surplus of $3.8 million. A full-text copy of the Form 10-K is available for free at: http://researcharchives.com/t/s?6b10 About ZBB Energy Menomonee Falls, Wis.-based ZBB Energy Corporation (NYSE Amex: ZBB) -- http://www.zbbenergy.com/-- designs, develops, manufactures and markets distributed intelligent power management platforms that integrate all types of renewable and conventional power sources with advanced large format storage technology. * Fitch: Record Loan Resolutions Stem Climb in Delinquencies ------------------------------------------------------------ While the pace of defaults remains elevated, a record number of loan resolutions in August 2010 again tempered the effect of $3.1 billion of new delinquencies, according to the latest U.S. CMBS delinquency index results from Fitch Ratings. The full results are in the agency's weekly U.S. CMBS newsletter. Recent defaults on five loans greater than $100 million contributed to a 23-basis point (bp) net increase in the U.S. CMBS delinquency rate to 8.48%. Meanwhile, $2.1 billion of loans were resolved or liquidated last month. 'Though special servicers are working out loans at an increased rate, the volume of new delinquencies has not yet subsided,' said Senior Director Adam Fox. 'Highly levered loans originated at the market's peak continue to default as borrowers seek modifications or hand back the keys to underperforming assets.' In August, three Fitch-rated loans in excess of $100 million became newly delinquent due to performance issues, including: -- $825.4 million Innkeepers Portfolio; -- $140 million Hyatt Regency - Bethesda; and -- $129.5 million Lynnewood Gardens. Current delinquency rates by property type are: -- Hotel: 20.80% (from 18.64%); -- Multifamily: 14.18% (from 13.87%); -- Retail: 6.11% (from 6.35%); -- Industrial: 5.55% (from 5.20%); -- Office: 5.06% (from 5.08%). * Alan Halperin Among Law360's 10 Most Admired Bankruptcy Attys --------------------------------------------------------------- Regarded by clients as a brilliant strategist who gets the job done and by peers as a someone who marries legal smarts with deal- making acumen, Halperin Battaglia Raicht LLP's Alan Halperin has earned a spot on Law360's list of 10 Most Admired Bankruptcy Attorneys. * Sean Lane Named as Bankruptcy Judge for So. Dist. of New York --------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that Sean H. Lane was sworn in as a U.S. bankruptcy judge in Manhattan on Tuesday. * BOND PRICING -- For the Week From Sept. 6 to 10, 2010 ------------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- --------- 155 E TROPICANA 8.750% 4/1/2012 5.375 ABITIBI-CONS FIN 7.875% 8/1/2009 8.000 ADVANTA CAP TR 8.990% 12/17/2026 11.000 AES CORP 9.375% 9/15/2010 100.125 AFFINITY GROUP 10.875% 2/15/2012 47.250 AHERN RENTALS 9.250% 8/15/2013 36.000 AMBAC INC 9.375% 8/1/2011 40.033 AMBASSADORS INTL 3.750% 4/15/2027 50.000 AMER GENL FIN 4.600% 9/15/2010 99.200 AMER GENL FIN 5.200% 9/15/2010 99.617 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 5.000 BLOCKBUSTER INC 9.000% 9/1/2012 6.500 BLOCKBUSTER INC 11.750% 10/1/2014 47.500 BOWATER INC 6.500% 6/15/2013 22.000 BOWATER INC 9.000% 8/1/2009 19.652 BOWATER INC 9.375% 12/15/2021 26.000 BOWATER INC 9.500% 10/15/2012 29.000 CAPMARK FINL GRP 5.875% 5/10/2012 34.500 CELL THERAPEUTIC 7.500% 4/30/2011 80.600 CHENIERE ENERGY 2.250% 8/1/2012 41.000 CHK-CALL09/10 6.250% 1/15/2018 101.420 CHK-CALL09/10 6.625% 1/15/2016 103.313 CHK-CALL09/10 7.000% 8/15/2014 102.330 CLEAR CHANNEL 7.650% 9/15/2010 100.100 DR HORTON 9.750% 9/15/2010 100.250 EDDIE BAUER HLDG 5.250% 4/1/2014 5.000 ELEC DATA SYSTEM 3.875% 7/15/2023 96.500 EOP OPERATING LP 4.650% 10/1/2010 98.500 EVERGREEN SOLAR 4.000% 7/15/2013 33.250 F-CALL09/10 6.050% 3/20/2012 99.500 FAIRPOINT COMMUN 13.125% 4/2/2018 12.500 FEDDERS NORTH AM 9.875% 3/1/2014 0.500 FORD MOTOR CRED 9.750% 9/15/2010 100.000 GENERAL MOTORS 7.125% 7/15/2013 29.506 GENERAL MOTORS 7.700% 4/15/2016 28.000 GENERAL MOTORS 9.450% 11/1/2011 27.750 GMAC LLC 7.500% 9/15/2010 99.800 GMAC LLC 8.000% 9/15/2010 98.950 GREAT ATLA & PAC 5.125% 6/15/2011 70.250 GREAT ATLA & PAC 6.750% 12/15/2012 53.464 HAWAIIAN TELCOM 9.750% 5/1/2013 0.900 INDALEX HOLD 11.500% 2/1/2014 0.550 INN OF THE MOUNT 12.000% 11/15/2010 40.000 INTL LEASE FIN 4.300% 9/15/2010 98.780 INTL LEASE FIN 4.850% 10/15/2010 96.875 JOHN HANCOCK LIF 4.250% 9/15/2010 99.900 KEYSTONE AUTO OP 9.750% 11/1/2013 40.000 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 20.000 LEHMAN BROS HLDG 5.000% 1/22/2013 18.750 LEHMAN BROS HLDG 5.000% 2/11/2013 19.600 LEHMAN BROS HLDG 5.000% 3/27/2013 18.000 LEHMAN BROS HLDG 5.000% 8/3/2014 19.500 LEHMAN BROS HLDG 5.000% 8/5/2015 19.000 LEHMAN BROS HLDG 5.100% 1/28/2013 18.250 LEHMAN BROS HLDG 5.150% 2/4/2015 18.760 LEHMAN BROS HLDG 5.250% 2/6/2012 20.100 LEHMAN BROS HLDG 5.250% 1/30/2014 19.000 LEHMAN BROS HLDG 5.250% 2/11/2015 19.000 LEHMAN BROS HLDG 5.350% 2/25/2018 19.000 LEHMAN BROS HLDG 5.500% 4/4/2016 19.602 LEHMAN BROS HLDG 5.500% 2/19/2018 18.500 LEHMAN BROS HLDG 5.550% 2/11/2018 19.000 LEHMAN BROS HLDG 5.600% 1/22/2018 17.750 LEHMAN BROS HLDG 5.625% 1/24/2013 20.300 LEHMAN BROS HLDG 5.700% 1/28/2018 18.750 LEHMAN BROS HLDG 5.750% 4/25/2011 18.700 LEHMAN BROS HLDG 5.750% 7/18/2011 21.000 LEHMAN BROS HLDG 5.750% 5/17/2013 19.200 LEHMAN BROS HLDG 5.875% 11/15/2017 20.250 LEHMAN BROS HLDG 6.000% 7/19/2012 19.700 LEHMAN BROS HLDG 6.000% 12/18/2015 19.000 LEHMAN BROS HLDG 6.000% 2/12/2018 18.250 LEHMAN BROS HLDG 6.200% 9/26/2014 21.625 LEHMAN BROS HLDG 6.600% 10/3/2022 18.000 LEHMAN BROS HLDG 6.625% 1/18/2012 19.250 LEHMAN BROS HLDG 6.875% 5/2/2018 22.125 LEHMAN BROS HLDG 7.000% 4/16/2019 18.125 LEHMAN BROS HLDG 7.000% 10/4/2032 19.000 LEHMAN BROS HLDG 7.000% 9/28/2037 19.000 LEHMAN BROS HLDG 7.100% 3/25/2038 17.900 LEHMAN BROS HLDG 7.250% 4/29/2038 19.000 LEHMAN BROS HLDG 7.350% 5/6/2038 19.000 LEHMAN BROS HLDG 7.500% 5/11/2038 0.010 LEHMAN BROS HLDG 7.730% 10/15/2023 17.375 LEHMAN BROS HLDG 7.875% 11/1/2009 19.000 LEHMAN BROS HLDG 7.875% 8/15/2010 19.000 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 19.000 LEHMAN BROS HLDG 8.500% 6/15/2022 19.000 LEHMAN BROS HLDG 8.750% 12/21/2021 18.500 LEHMAN BROS HLDG 8.800% 3/1/2015 19.000 LEHMAN BROS HLDG 8.920% 2/16/2017 19.000 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 16.000 LEHMAN BROS HLDG 11.000% 6/22/2022 19.000 LEHMAN BROS HLDG 11.000% 3/17/2028 19.000 LEHMAN BROS HLDG 11.500% 9/26/2022 18.750 LEHMAN BROS HLDG 18.000% 7/14/2023 18.735 LEHMAN BROS INC 7.500% 8/1/2026 11.000 LOCAL INSIGHT 11.000% 12/1/2017 31.500 MAGNA ENTERTAINM 8.550% 6/15/2010 17.000 MERRILL LYNCH 1.580% 3/9/2011 99.500 NETWORK COMMUNIC 10.750% 12/1/2013 35.013 NEWPAGE CORP 10.000% 5/1/2012 43.650 NEWPAGE CORP 12.000% 5/1/2013 19.800 NORTH ATL TRADNG 9.250% 3/1/2012 60.250 PALM HARBOR 3.250% 5/15/2024 68.000 PL-CALL10/10 5.000% 4/15/2014 97.000 RASER TECH INC 8.000% 4/1/2013 37.000 RESTAURANT CO 10.000% 10/1/2013 27.500 RESTAURANT CO 10.000% 10/1/2013 26.125 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 4.250 TIMES MIRROR CO 7.250% 3/1/2013 42.100 TOUSA INC 7.500% 1/15/2015 0.250 TRICO MARINE 3.000% 1/15/2027 9.750 TRICO MARINE SER 8.125% 2/1/2013 17.250 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 0.375 WASH MUT BANK NV 6.750% 5/20/2036 0.625 WCI COMMUNITIES 4.000% 8/5/2023 1.000 ********* 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 ***