/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100927.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 27, 2010, Vol. 14, No. 268 Headlines 53;59 1/2 TENTH: Case Summary & 2 Largest Unsecured Creditors ABDUL HAMIDI: Case Summary & 5 Largest Unsecured Creditors ABTS HOLDINGS: Case Summary & 20 Largest Unsecured Creditors ADVANTAGE BANK: Weiss Gives Colo. Bank Very Weak E Rating ALLIANT BANK: Weiss Gives Kan. Bank Very Weak E- Rating AMERICAN HOMEPATIENT: Shareholders Meet Oct 12 on Sale to Highland AMERICAN INT'L: Sees $2-Bil. FY2010 Operating Profit for AIA Unit ARINC INC: S&P Raises Corporate Credit Rating to 'BB-' ARROW AIR: JW Acquisitions Buys Airline for $800,000 ATLANTIC BANK: Weiss Gives S.C. Bank Very Weak E- Rating BAILEYSVILLE STATE: Weiss Gives Kan. Bank Very Weak E+ Rating BANK 360: Weiss Gives S.D. Bank Very Weak E+ Rating BANK MIDWEST: Weiss Gives Mo. Bank Very Weak E Rating BANK OF ASHEVILLE: Weiss Gives N.C. Bank Very Weak E- Rating BANK OF GRANITE: Receives NASDAQ Notice BANK OF NAPLES: Weiss Gives Fla. Bank Very Weak E+ Rating BANK OF WHITMAN: Weiss Gives Wash. Bank Very Weak E- Rating BASS RIVER: Case Summary & 2 Largest Unsecured Creditors BAYONNE HOSPITAL: Liquidating Trustee Recover More than $12MM BION ENVIRONMENTAL: GHP Horwath Raises Going Concern Doubt BLAST ENERGY: Closes Purchase of Sugar Valley Field in Matagorda BLAST ENERGY: Posts $202,184 Net Loss in June 30 Quarter BLOCKBUSTER INC: Fitch Downgrades Issuer Default Rating to 'D' BLOCKBUSTER INC: Moody's Downgrades Default Rating to 'D' BOSTON GENERATING: Secured Lenders Want Sale Documents SUMMIT BRANTLEY: To Present Plan for Confirmation on Nov. 3 BREITBURN ENERGY: Moody's Assigns 'B1' Corporate Family Rating CANTON STATE: Weiss Gives Mo. Bank Very Weak E Rating CAROLINA FIRST: Weiss Gives S.C. Bank Very Weak E+ Rating CARVER STATE: Weiss Gives Ga. Bank Very Weak E- Rating CBGB HOLDINGS: Guitar Hero Deal Okayed; Deal Proceeds in Escrow CCGI HOLDING: S&P Assigns Corporate Credit Rating at 'B-' CENTAUR LLC: Jr. Lenders Try to Block Credit Suisse Foreclosure CF BANK: Weiss Gives Ohio Bank Very Weak E- Rating CHAMPION ENTERPRISES: Files Joint Plan of Liquidation CIRCUIT CITY: Workers Want Class Status on WARN Claim CITIZENS BANK: Weiss Gives Tenn. Bank Very Weak E- Rating CLEAR CREEK: Weiss Gives Colo. Bank Very Weak E+ Rating CLOVERLEAF ENTERPRISES: Attorney's Fees Not Based on Results COLONIAL BANCGROUP: Consents to Revocation of Securities COLORADO VALLEY: Weiss Gives Tex. Bank Very Weak E+ Rating COMMUNITY BANK: Weiss Gives Ga. Bank Very Weak E+ Rating COMMUNITY BANK: Weiss Gives Ill. Bank Very Weak E+ Rating COMMUNITY BANK: Weiss Gives Mo. Bank Very Weak E Rating COMMUNITYONE BANK: Weiss Gives N.C. Bank Very Weak E Rating CONSTITUTION CORPORATE: Undercapitalized; In Conservatorship CONTECH CONSTRUCTION: Bank Debt Trades at 16% Off CONTINENTAL TRUSTEES: S&P Assigns 'BB' Rating on $200 Mil. Notes CORNERSTON BANK: Weiss Gives N.D. Bank Very Weak E- Rating COVENANT BANK: Weiss Gives Ill. Bank Very Weak E Rating CREEKSIDE SENIOR: Voluntary Chapter 11 Case Summary CROSSTOWN STOR-N-MORE: Gets Interim OK to Pay Insider Salary CYSTALLEX INTERNATIONAL: Posts $13.2MM Net Loss in June 30 Quarter DAMON PURSELL: Section 341(a) Meeting Scheduled for Oct. 14 DAMON PURSELL: Files Schedules of Assets & Liabilities DAMON PURSELL: Taps Dunn & Davison as Bankruptcy Counsel DAVID MARCOE: Files Schedules of Assets & Liabilities DAVID MARCOE: Section 341(a) Meeting Scheduled for Oct. 19 DARYL PRICE: Case Summary & 20 Largest Unsecured Creditors DEEP DOWN: Posts $452,000 Net Loss in June 30 Quarter DELAWARE COUNTY BANK: Weiss Gives Ohio Bank Very Weak E+ Rating DENNIS NESMITH: Case Summary & 11 Largest Unsecured Creditors DESERT SPRINGS: Case Summary & 8 Largest Unsecured Creditors DEX MEDIA EAST: Bank Debt Trades at 24% Off in Secondary Market DOLLAR THRIFTY: Avis Budget Hikes Cash Offer to $45.79 a Share ELLIE CHAPPEL: Case Summary & 4 Largest Unsecured Creditors EMPIRE RESORTS: Enters Into Settlement with Noteholders ENTERGY LOUISIANA: Moody's Affirms Ba1 Preferred Stock Rating ERICSON STATE: Weiss Gives Neb. Bank Very Weak E Rating EUROBANK: Weiss Gives Fla. Bank Very Weak E+ Rating EXCEL NATIONAL: Weiss Gives Calif. Bank Very Weak E Rating EZRI NAMVAR: Indicted For Alleged $20 Million Fraud FARMERS & MERCHANT: Weiss Gives Iowa Bank Very Weak E+ Rating FARMERS STATE: Weiss Gives Ill. Bank Very Weak E- Rating FARMERS STATE: Weiss Gives Neb. Bank Very Weak E+ Rating FGIC CORP: Sharps Hikes Consent Fee; Exchange Offer Due Oct. 22 FIRST AMERICAN: Weiss Gives Colo. Bank Very Weak E+ Rating FIRST BANK: Weiss Gives Fla. Bank Very Weak E+ Rating FIRST COMMUNITY: Weiss Gives Fla. Bank Very Weak E+ Rating FIRST HOME: Weiss Gives Fla. Bank Very Weak E- Rating FIRST INTERNATIONAL: Weiss Gives Tex. Bank Very Weak E+ Rating FIRST NATIONAL: Weiss Gives Fla. Bank Very Weak E+ Rating FIRST NATIONAL: Weiss Gives Wisc. Bank Very Weak E Rating FIRST STATE: Weiss Gives S.D. Bank Very Weak E- Rating FRANK MONGELLUZZI: Case Summary & 20 Largest Unsecured Creditors FREEPORT STATE: Weiss Gives Kan. Bank Very Weak E- Rating FREESCALE SEMICON: Bank Debt Trades at 9% Off in Secondary Market FRONTENAC BANK: Weiss Gives Mo. Bank Very Weak E- Rating G. KLAPPENBACH: Case Summary & 16 Largest Unsecured Creditors GANNETT CO: Moody's Gives Stable Outlook; Retains 'Ba1' Rating GENERAL CHEMICAL: Moody's Assigns 'B1' Corporate Family Rating GLIMCHER REALTY: Moody's Gives Stable Outlook; Affirms 'B2' Rating GRAY TV: Bank Debt Trades at 4% Off in Secondary Market GREAT EASTERN: Weiss Gives Fla. Bank Very Weak E+ Rating GROVE STREET: Committee Taps Benesch Friedlander as its Counsel HASTINGS STATE: Weiss Gives Neb. Bank Very Weak E- Rating HAVEN TRUST BANK: Closed; First Southern Bank Assumes All Deposits HAWAIIAN TELCOM: PUC Approves Plan of Reorganization HEALTHSPRING INC: Moody's Assigns 'Ba3' Rating on Senior Debt HERBST GAMING: Bank Debt Trades at 45% Off in Secondary Market HERITAGE FIRST: Weiss Gives Ga. Bank Very Weak E Rating HERITAGE CONSOLIDATED: Asks for OK of Plan Support Pact HHI HOLDINGS: Moody's Affirms Corporate Family Rating at 'B2' HIGHLAND COMMUNITY: Weiss Gives Ill. Bank Very Weak E Rating HILDA GONZALEZ: Case Summary & 15 Largest Unsecured Creditors HILEX POLY: Moody's Assigns 'B3' Corporate Family Rating HILEX POLY: S&P Assigns Preliminary Corporate Credit Rating at 'B' HOME FEDERAL: Weiss Gives Fla. Bank Very Weak E- Rating HOSIAN AZIZIAN: Golden Security Bank Has $250,000 Secured Claim HP DISTRIBUTION: Auxiers Suit Remanded to State Court IMPERIAL CAPITAL: Opposes FDIC's $48 Million Capital Demand INNKEEPERS USA: Midland Wants Cash Use Order Reconsidered INNKEEPERS USA: Proposes to Assume Marriott Assurance Agreement INTEGRITY FIRST: Weiss Gives Wisc. Bank Very Weak E Rating KENDALL STATE: Weiss Gives Kan. Bank Very Weak E+ Rating KENNETH ANDERSON: Reorganization Case Transferred to Utah District KENNETH HALE: No Fees for U.S. Trustee from Loan Transfer KENNETH JAMES EGLI: E.D. Wash. Ct. Confirms Amended Plan KENNETH STEVENSON: Case Summary & 20 Largest Unsecured Creditors LANDAMERICA FINANCIAL: Severance Pay Earned on Termination Date LEGACY BANK: Weiss Gives Wisc. Bank Very Weak E- Rating LEHMAN BROTHERS: LBIE Extends Proofs of Debt Deadline LEHMAN BROTHERS: PwC to Appeal UK Court Ruling on Payout LEHMAN BROTHERS: Wants to Reject Revenue Bond Contracts LEONARD ROSS: Section 341(a) Meeting Scheduled for Nov. 8 LIBERTY MEDIA: Share Repurchase Won't Affect Moody's 'B1' Rating LIBERTY BANK: Weiss Gives Utah Bank Very Weak E Rating LOEHMANN'S CAPITAL: Seeks to Extend Debt Maturity to 2014 LUCKY CHASE: Court Approves FDIC-Led Auction on November 2 LUCKY CHASE: Trustee May Use Cash to Repair or Modify Property LUDO MENSCH: Case Summary & 16 Largest Unsecured Creditors LYDIAN PRIVATE: Weiss Gives Fla. Bank Very Weak E Rating MAJESTIC STAR: Hearing on End of Plan Exclusivity on Sept. 28 MCHENRY SAVINGS: Weiss Gives Ill. Bank Very Weak E Rating MCP ONTARIO: Case Summary & 8 Largest Unsecured Creditors MEMBERS UNITED: Undercapitalized; Placed in Conservatorship MERIDIAN PARTNERSHIP: Trustee Can Employ Brokers to Sell Assets METRO-GOLDWYN-MAYER: Bank Debt Trades at 54% Off MEXICANA AIRLINES: Conciliator, Administrator Appointed MEXICANA AIRLINES: Misses Sept. 15 Payments to Airports MEXICANA AIRLINES: Sept. 29 U.S. Court Hearing on Recognition Plea MICHAEL IRVING: Case Summary & 7 Largest Unsecured Creditors MICHAELS STORES: Bank Debt Trades at 4% Off in Secondary Market MILACRON INC: Judge Aug Requires Rule 2019 Disclosure MISSION OAKS: Weiss Gives Calif. Bank Very Weak E- Rating MONARCH COMMUNITY: Weiss Gives Mich. Bank Very Weak E- Rating MOREBANK: Weiss Gives Pa. Bank Very Weak E+ Rating NORTEL NETWORKS: Ericsson Enters Pact to Acquire Switch Business NORTH COUNTY BANK: Closed; Whidbey Island Bank Assumes Deposits NUHI METAJ: Case Summary & 20 Largest Unsecured Creditors NXT ENERGY: Posts C$890,700 Net Loss in June 30 Quarter NXT NUTRITIONALS: Earns $2.3 Million in June 30 Quarter O L DEVELOPMENT: Voluntary Chapter 11 Case Summary OLDE PRAIRIE: Plan Provides Sale of Properties to Pay Creditors ONE GEORGE: Weiss Gives Ga. Bank Very Weak E- Rating OPEN SOLUTIONS: Bank Debt Trades at 17% Off in Secondary Market OSI RESTAURANT: Bank Debt Trades at 9% Off in Secondary Market OTC HOLDINGS: Court Grants 60-Day Extension in Schedules Filing OTC HOLDINGS: Gets Final Approval to Obtain $40MM DIP Financing OTC HOLDINGS: Taps Young Conaway to Handle Reorganization Case PALI HOLDINGS: Sues to Get Lloyd's Indemnification PANAMSAT CORP: Bank Debts Trade at 4% Off in Secondary Market PASCUAL ACEVEDO: Specific Performance Order Stops Rejection PEOPLES STATE: Weiss Gives Minn. Bank Very Weak E+ Rating PENN TRAFFIC: Chapter 11 Plan Voting Deadline Fixed on October 20 PHILADELPHIA NEWSPAPERS: Lenders Win New Auction with $105MM Bid PISGAH COMMUNITY: Weiss Gives N.C. Bank Very Weak E- Rating PLAYERS TURF: Associated Fails to Prove Nondischargeability Claim PRECISION OPTICS: Recurring Net Losses Cue Going Concern Doubt PRIVATE ESCAPES: Case Summary & 20 Largest Unsecured Creditors PROMETRIC INC: Moody's Raises Corporate Family Rating to 'B1' PUBLIC SAVINGS: Weiss Gives Pa. Bank Very Weak E+ Rating QUALITY BANK: Weiss Gives N.D. Bank Very Weak E Rating RAJ RAKKAR: Case Summary & Largest Unsecured Creditor RAY ANTHONY: Gets Court's Nod to Tap Lampl as Bankruptcy Counsel RAYMOND BABCOCK: Voluntary Chapter 11 Case Summary RCS BANK: Weiss Gives Mo. Bank Very Weak E- Rating REALOGY CORP: Bank Debt Trades at 13% Off in Secondary Market RESIDENTIAL PROPERTY: Case Summary & Creditors List RICH CAPITOL: Court Won't Equitably Subordinate Wachovia's Claim RITE AID: Bank Debt Trades at 11% Off in Secondary Market ROADHOUSE FINANCING: Moody's Assigns 'B2' Corporate Family Rating ROBERTO ALMARAZ: Case Summary & 20 Largest Unsecured Creditors ROCK & REPUBLIC: Asks Court to Approve Exclusive Sale Talks ROCK US: Investors Object to Prepack Chapter 11 Plan ROCK US: Asks for OK on Bid Incentives for Purchasers of Assets RONIELIO GARCIA: Case Summary & 20 Largest Unsecured Creditors RUSTICK LLC: In-Court Auction Scheduled for Oct. 7 SAXBY'S COFFEE: Pa. Court Denies Confirmation of Amended Plan SCHOLASTIC CORPORATION: Repurchase Won't Affect Moody's Ba2 Rating SCOTTSDALE DOWNTOWN: Case Summary & 5 Largest Unsecured Creditors SEA ISLAND: Creditors Can Vote for Ch. 11 Reorganization Plan SECURITY STATE: Weiss Gives Iowa Bank Very Weak E Rating SECURITY STATE: Weiss Gives Iowa Bank Very Weak E+ Rating SEMGROUP LP: Court Declines to Subordinate Harvest's Claims SEMGROUP LP: Former Execs to Pay $30 Million to Settle Suit SHORE BANK: Weiss Gives Va. Bank Very Weak E+ Rating SIX FLAGS: Receives $41-Mil. Payout From Dick Clark Stake SOUTH COUNTY: Weiss Gives Calif. Bank Very Weak E Rating SOUTHWEST CORPORATE: Undercapitalized; Placed in Conservatorship SPIVEY STATE: Weiss Gives Ga. Bank Very Weak E+ Rating SPRINGBOK SERVICES: Fifth Third Processing Purchases Firm's Assets STATE BANK: Weiss Gives Neb. Bank Very Weak E- Rating SUMMIT BANK: Weiss Gives Wash. Bank Very Weak E+ Rating SUNRISE BANK: Weiss Gives Calif. Bank Very Weak E+ Rating SUSANNE OLSEN: Chapter 15 Case Summary TAYLOR BEAN: Submits Plan of Liquidation THOR OLSEN: Chapter 15 Case Summary TIDELANDS BANK: Weiss Gives S.C. Bank Very Weak E- Rating TOD GRISWOLD: Case Summary & 10 Largest Unsecured Creditors TPC GROUP: Moody's Affirms 'B1' Corporate Family Rating TPC GROUP: S&P Assigns Corporate Credit Rating at 'B+' TRANS PACIFIC: Weiss Gives Calif. Bank Very Weak E+ Rating TREATY OAK: Weiss Gives Tex. Bank Very Weak E- Rating TRICO MARINE: Committee Taps Kasowitz Benson as Counsel TRIZETTO GROUP: Moody's Affirms Corporate Family Rating at 'B1' TRUC NGUYEN: Case Summary & 20 Largest Unsecured Creditors TRUMP ENTERTAINMENT: Hearing on Settlement Deal Set for October 5 TSO HOLDING: Chapter 15 Case Summary UAL CORP: Bank Debt Trades at 8% Off in Secondary Market UAL CORP: Continental & United Commit to Cleveland ULTIMATE ESCAPES: Wants Club Holdings Barred from Tapping Members UNION BANK: Weiss Gives Mo. Bank Very Weak E- Rating URBAN BRANDS: Seeks Court Approval to Sell Assets Next Month US CORRUGATED: S&P Gives Stable Outlook, Affirms 'B' Rating VALUE CITY: Judge Rejects 10% Holdback in Professionals' Fees VICTOR LOGAN: Case Summary & 10 Largest Unsecured Creditors VISTEON CORP: Opens Manufacturing Facility in Russia WALTER CLIFT: Case Summary & 10 Largest Unsecured Creditors WASHINGTON MUTUAL: Balks at Black Horse-Led Investors' Suit WASHINGTON MUTUAL: Denies Any Liability to Broadbill Investment WASHINGTON MUTUAL: Says PFG's $37 Mil. Claim on Account of Equity WAYTRONX INC: Earns $3.5 Million in June 30 Quarter WEI CHEN: Case Summary & 15 Largest Unsecured Creditors WEST CORP: Bank Debt Trades at 2% Off in Secondary Market WEST FRASER: S&P Raises Corporate Credit Rating to 'BB+' WESTERN NATIONAL: Weiss Gives Ariz. Bank Very Weak E- Rating WILLIAM LYON: S&P Raises Rating on Senior Unsec. Notes to 'CC' WINDSTREAM CORPORATION: Moody's Puts Ba3 Rating on $500 Mil. Notes ZOLTAN SZAKALY: Case Summary & 17 Largest Unsecured Creditors * Auto-Parts Deals Near Record Pace as Buyout Firms, Ross Invest * Chief Executives Of Small Banks May Shun $30 Billion Program * CQS Said to Plan Fund Investing in Distressed Corporate Debt * Moody's Reports B3 Negative & Lower List Dips Below 200 Cos. * BOND PRICING -- For Week From September 20 to 24, 2010 ********* 53;59 1/2 TENTH: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: 53;59 1/2 Tenth Street LP 2350 W. Sepulveda Boulevard, Suite P Torrance, CA 90501 Bankruptcy Case No.: 10-50693 Chapter 11 Petition Date: September 23, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Debtor's Counsel: Jerry A. Chad, Esq. LAW OFFICES OF JERRY A. CHAD P.O. Box 358 Topanga, CA 90290 Tel: (310) 739-4616 Fax: (310) 455-3079 E-mail: jerrychadjd@aol.com Scheduled Assets: $2,925,220 Scheduled Debts: $2,223,763 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-50693.pdf The petition was signed by Brian Burrescia, general partner. ABDUL HAMIDI: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------- Joint Debtors: Abdul W. Hamidi Razia Zabizda 3400 Ashbourne Circle San Ramon, CA 94583 Bankruptcy Case No.: 10-70960 Chapter 11 Petition Date: September 24, 2010 Court: U.S. Bankruptcy Court Northern District of California (Oakland) Judge: Edward D. Jellen Debtors' Counsel: Sandra F. Banks, Esq. LAW OFFICES OF SANDRA F. BANKS 3941 Lincoln Avenue Oakland, CA 94602 Tel: (510) 336-2369 E-mail: sandrabankslaw@yahoo.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb10-70960.pdf ABTS HOLDINGS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: ABTS Holdings, LLC 1165 State Route 27, Suite A-1011 Somerset, NJ 08873 Bankruptcy Case No.: 10-39287 Chapter 11 Petition Date: September 22, 2010 Court: U.S. Bankruptcy Court District of New Jersey (Trenton) Judge: Kathryn C. Ferguson Debtor's Counsel: Lawrence Morrison, Esq. 110 East 59th Street, 23rd Floor New York, NY 10022 Tel: (212-655-3582 Fax: (646) 514-3172 E-mail: morrlaw@aol.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb10-39287.pdf The petition was signed by Frank Mongelluzi, president. ADVANTAGE BANK: Weiss Gives Colo. Bank Very Weak E Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Advantage Bank based in Loveland, Colo. 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 June 30, 2010, the institution's balance sheet showed $380.4 million in assets. ALLIANT BANK: Weiss Gives Kan. Bank Very Weak E- Rating ------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Alliant Bank based in Segdwick, Kan. 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 June 30, 2010, the institution's balance sheet showed $14.3 million in assets. AMERICAN HOMEPATIENT: Shareholders Meet Oct 12 on Sale to Highland ------------------------------------------------------------------ American HomePatient, Inc., filed with the Securities and Exchange Commission on September 20, 2010, a definitive proxy statement on Schedule 14A relating to a special meeting of shareholders to be held October 12. The special meeting has been called by the Company's board of directors for the purpose of obtaining shareholder approval of an agreement and plan of merger dated September 2, 2010, between the Company and AHPC Merger Co. ("Merger Sub"), a wholly owned subsidiary of the Company, pursuant to which: (i) Merger Sub will merge with and into the Company; (ii) the Company will become a wholly owned subsidiary of funds managed by Highland Capital Management, L.P.; (iii) shareholders of the Company other than Highland will be entitled to receive $0.67 per share in cash for each share of Company common stock owned, without interest and less any required withholding taxes; and (iv) all outstanding options to purchase shares of Company common stock, whether vested or unvested, will be converted into the right to receive an amount in cash equal to the product of the number of shares of Company common stock subject to such option multiplied by the excess, if any, of $0.67 over the exercise price per share of each such option, and when so converted, will automatically be canceled and retired and will cease to exist. Following the completion of the Company's recent self-tender offer, Highland is the beneficial owner of approximately 78.5% of the Company's outstanding shares of common stock. Since Highland has agreed to vote its shares in favor of the merger, the Company expects that the merger agreement will be approved whether or not shareholders vote their shares. Upon consummation of the second-step merger, the Company will no longer be publicly owned, the Company's shares will cease to be quoted on the Over-the-Counter Bulletin Board, and the Company will cease to be required to make filings with the SEC or to comply with the SEC rules relating to public companies. A full-text copy of the Proxy Statement is available for free at: http://researcharchives.com/t/s?6ba5 About American HomePatient Brentwood, Tenn.-based American HomePatient, Inc. (OTC BB: AHOM) claims to be one of the nation's largest home health care providers with operations in 33 states. Its product and service offerings include respiratory services, infusion therapy, parenteral and enteral nutrition, and medical equipment for patients in their home. The Company's balance sheet at June 30, 2010, showed $240.7 million in total assets, $274.4 million in total liabilities, and a stockholders' deficit of $33.7 million. As reported in the Troubled Company Reporter on March 8, 2010, KPMG LLP, in Nashville, Tennessee, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that at December 31, 2009, the Company had a net capital deficiency and had a net working capital deficiency resulting from $226.4 million of debt that matured on August 1, 2009. AMERICAN INT'L: Sees $2-Bil. FY2010 Operating Profit for AIA Unit ----------------------------------------------------------------- Dow Jones Newswires' Erik Holm reports that American International Group Inc. said it expects its AIA Group Ltd. life-insurance business will likely have an operating profit of at least $2 billion in the fiscal year ending Nov. 30. Dow Jones relates premium income at AIA, which AIG plans to list on the Hong Kong stock exchange in October, increased by 11% in the first nine months of the year to $9.3 billion, according to an unaudited accounting released by AIG on Saturday. The increase was driven by growth in Thailand and South Korea. According to Dow Jones, pre-marketing of the IPO is scheduled to begin on Monday. The stock offering is expected to be priced on Oct. 21. One person familiar with the deal said earlier that AIG was considering selling as much as 50% of AIA, but that no decision had been made. Dow Jones reports that AIG released the latest profit estimate and updated results after it first provided the information to analysts in Hong Kong, according to an AIG statement Saturday. AIA's largest markets are Hong Kong, Thailand, Singapore and Malaysia. The figures released Saturday may not compare exactly to previously announced results released in the U.S. AIG cautioned in its statement that the data corresponded with international financial reporting standards, which differ from U.S. guidelines. As reported by the Troubled Company Reporter on September 24, 2010, The Wall Street Journal's Nisha Gopalan said AIG received approval in Hong Kong for a US$10 billion to US$15 billion initial public offering of AIA. According to the Journal, one person familiar with the deal said Tuesday that AIG was considering selling as much as 50% of AIA, but no decision had been made. AIA's IPO has 11 bookrunners, people familiar with the matter have said, according to the Journal. That is a record, according to Dealogic, and indicates AIG is determined to raise as much money as possible. Agricultural Bank of China had 10 bookrunners for its offering. According to the Journal, the bookrunners on AIA's IPO are: Barclays Capital, the investment-banking arm of Barclays PLC; J.P. Morgan Chase & Co.; Malaysian financial-services firm CIMB Group Holdings Bhd.; Citigroup Inc.; Goldman Sachs Group Inc.; Morgan Stanley; Deutsche Bank AG; Bank of America Corp.'s Bank of America Merrill Lynch; Credit Suisse Group; UBS AG; and the investment- banking arm of ICBC, ICBC International Holdings Ltd. Bookrunners help banks in charge of the sale, known as global coordinators, to sell the shares to investors. Citigroup, Goldman, Morgan Stanley and Deutsche Bank are the global coordinators, people familiar with the matter previously said, according to the Journal. About AIG American International Group, Inc. -- http://www.aig.com/-- is an international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. In September 2008, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. AIG almost collapsed under the weight of bad bets it made insuring mortgage- backed securities. The Company, however, was bailed out by the Federal Reserve, but even after an initial infusion of $85 billion, losses continued to grow. The later rescue packages brought the total to $182 billion, making it the biggest federal bailout in U.S. history. AIG has been working to protect and enhance the value of its key businesses, execute an orderly asset disposition plan, and position itself for the future. AIG has sold a number of its subsidiaries and other assets to pay down loans received from the U.S. government, and continues to seek buyers of its assets. ARINC INC: S&P Raises Corporate Credit Rating to 'BB-' ------------------------------------------------------ Standard & Poor's Ratings Services said that it has raised its corporate credit rating on Annapolis, Md.-based ARINC Inc. to 'BB-' from 'B'. At the same time, S&P raised the issue level rating on the company's first-lien secured debt to 'BB' from 'B+', while maintaining the '2' recovery rating. S&P also raised the issue level rating on the firm's second-lien secured debt to 'B' from 'CCC+', while maintaining the '6' recovery rating. The outlook is stable. "The upgrade reflects ARINC's improving credit protection measures stemming from lower debt levels and higher earnings over the past year," said Standard & Poor's credit analyst Christopher DeNicolo. "The rating also incorporates the company's participation in the competitive and cyclical aviation services market, leading positions in its niche markets, modest size compared with competitors, aggressive financial policy, and adequate profitability. S&P assess the firm's business risk profile as fair and financial risk profile as aggressive." The Carlyle Group acquired ARINC in October 2007, using a combination of debt and equity. Although debt to capital increased modestly -- to about 75% from 70%, benefiting from the sizable equity contribution -- lease-adjusted debt to EBITDA increased to almost 7x in 2007 from about 3.5x in 2006. Since then, good earnings growth and lower debt levels due to the repayment of some first-lien term debt (purchased at a price well below par) have resulted in debt to EBITDA of 4x, funds from operations to total debt around 15%, EBITDA interest coverage of more than 3.5x, and debt to capital of 70%. Although revenues are likely to decline modestly in 2010 due to a reduction in work on a large helicopter project that ends in 2011, S&P expects earnings to continue to improve and revenue growth should resume in 2011 with the recovering commercial aviation markets and steady defense demand. Therefore, S&P expects earnings growth and debt repayment with excess cash flows to result in steadily improving credit protection measures in 2011 with debt to EBITDA declining to 3x- 3.5x and FFO to total debt around 20%. The company does not report its financial results publicly. The outlook is stable. Steady demand in the defense business, a recovery in the commercial aviation markets, and acceptable operating performance should continue to result in growing revenues and earnings over the next 12-24 months. In addition, S&P expects the company to continue to pay down debt with free cash flow. It's unlikely that S&P will raise the ratings due to the company's ownership by a private equity firm and the potential for a debt-financed dividend or other transaction that could result in much higher leverage. "S&P could lower the ratings if a large debt-financed acquisition or dividend results in debt to EBITDA increasing to above 4x and FFO to debt declining to the low-teens percentage area," Mr. DeNicolo added. ARROW AIR: JW Acquisitions Buys Airline for $800,000 ---------------------------------------------------- Arrow Air Inc. has been sold to JW Acquisitions Inc. for $800,000, according to Bankruptcy Law360. About Arrow Air Miami, Florida-based Arrow Air, Inc., provides scheduled and charter cargo logistics services between the United States, Central and South America, and the Caribbean. The Company is a wholly owned subsidiary of Arrow Air Holdings Corp., which is 95% owned by an affiliate of MatlinPatterson Global Opportunities Partners III. Arrow Air, Inc., dba Arrow Cargo, filed for Chapter 11 bankruptcy protection on June 30, 2010 (Bankr. S.D. Fla. Case No. 10-28831). Jordi Guso, Esq., in Miami, Florida, represents the Debtor in its restructuring effort. The Chapter 11 case is Arrow's third. Arrow halted operations the day before the Chapter 11 filing. Arrow Air intends to liquidate under Chapter 11. In its schedules, Arrow Air, Inc., disclosed $40,246,024 in assets and $87,212,942 in debts. ATLANTIC BANK: Weiss Gives S.C. Bank Very Weak E- Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Atlantic Bank & Trust based in Charleston, S.C. 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 June 30, 2010, the institution's balance sheet showed $270.6 million in assets. BAILEYSVILLE STATE: Weiss Gives Kan. Bank Very Weak E+ Rating ------------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Baileysville State Bank based in Seneca, Kan. 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 June 30, 2010, the institution's balance sheet showed $37.4 million in assets. BANK 360: Weiss Gives S.D. Bank Very Weak E+ Rating --------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Bank 360 based in Beresford, S.D. 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 June 30, 2010, the institution's balance sheet showed $50.8 million in assets. BANK MIDWEST: Weiss Gives Mo. Bank Very Weak E Rating ----------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Bank Midwest, N.A. based in Kansas City, Mo. 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 June 30, 2010, the institution's balance sheet showed $4.1 billion in assets. BANK OF ASHEVILLE: Weiss Gives N.C. Bank Very Weak E- Rating ------------------------------------------------------------ Weiss Ratings has assigned its "very weak" E- rating to Bank of Asheville based in Asheville, N.C. 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 June 30, 2010, the institution's balance sheet showed $213.9 million in assets. BANK OF GRANITE: Receives NASDAQ Notice --------------------------------------- Bank of Granite Corporation received a letter from The NASDAQ Stock Market notifying the Company that, because the bid price for its stock has fallen below $1.00 per share, it no longer complies with the minimum bid price requirement for continued listing on The NASDAQ Global Select Market. Rule 5450(a)(1) of NASDAQ's Listing Rules requires a minimum bid price of $1.00 per share. Based on the closing bid price of the Company's common stock for the 30 consecutive business days prior to the date of NASDAQ's letter, the Company does not meet this requirement. The notification does not result in the immediate delisting of the Company's common shares from The NASDAQ Global Select Market. In accordance with NASDAQ Listing Rules, the Company has a 180 day grace period until March 21, 2011 to regain compliance with the minimum closing bid price requirement. To regain compliance, the closing bid price of the Company's common shares must meet or exceed $1.00 per share for at least ten consecutive business days prior to March 21, 2011. If the Company does not regain compliance by March 21, 2011, NASDAQ will provide written notification of the delisting of the Company's shares. At that time, the Company may appeal NASDAQ's delisting determination to a NASDAQ Hearing Panel. Alternatively, the Company may be eligible for an additional grace period if it applies to transfer the listing of its common shares to The NASDAQ Capital Market and satisfies all criteria for initial listing on The NASDAQ Capital Market other than the minimum bid price requirement. The Company is considering actions that it may take in response to this notification in order to regain compliance with the continued listing requirements, but no decisions about a response have been made at this time. Bank of Granite Corporation's common stock trades on The NASDAQ Global Select Market under the symbol "GRAN." Bank of Granite Corporation is the parent company of Bank of Granite. Bank of Granite operates twenty full-service banking offices in eight North Carolina counties -- Burke, Caldwell, Catawba, Forsyth, Iredell, Mecklenburg, Watauga, and Wilkes. BANK OF NAPLES: Weiss Gives Fla. Bank Very Weak E+ Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Bank of Naples based in Naples, Fla. 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 June 30, 2010, the institution's balance sheet showed $220.8 million in assets. BANK OF WHITMAN: Weiss Gives Wash. Bank Very Weak E- Rating ----------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Bank of Whitman based in Colfax, Wash. 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 June 30, 2010, the institution's balance sheet showed $744.8 million in assets. BASS RIVER: Case Summary & 2 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Bass River Properties, LLC P.O. Box 352 Clayton, GA 30525 Bankruptcy Case No.: 10-24272 Chapter 11 Petition Date: September 23, 2010 Court: U.S. Bankruptcy Court Northern District of Georgia (Gainesville) Debtor's Counsel: Cameron M. McCord, Esq. JONES & WALDEN, LLC 21 Eighth Street, NE Atlanta, GA 30309 Tel: (404) 564-9300 Fax: (404) 564-9301 E-mail: cmccord@joneswalden.com Scheduled Assets: 4,007,013 Scheduled Debts: $3,866,041 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb10-24272.pdf The petition was signed by Wayne Nesmith, owner/manager. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Dennis Wayne and Catherine Brown Nesmith 10-24270 09/23/10 BAYONNE HOSPITAL: Liquidating Trustee Recover More than $12MM ------------------------------------------------------------- The liquidating trustee and estate representative of Bayonne Medical Center, Allen D. Wilen, successfully recovered more than $12 million for both secured and unsecured creditors and parties in interest. Mr. Wilen, a restructuring and bankruptcy partner with EisnerAmper LLP, was appointed liquidating trustee and estate representative through the confirmation of a chapter 11 plan of reorganization in April 2009. Since that time, Mr. Wilen has pursued preference and fraudulent conveyance claims, claims against the former trustees and officers of BMC and claims against BMC's former auditors. The claims against the former trustees and officers were based on breaches of fiduciary duties and negligence while the claims against the former auditor were based on professional negligence. Mr. Wilen utilized a deepening insolvency measure of damages in these claims. The claims against the former trustees and officers and claims against the former auditor resulted in settlements in excess of $10 million. Mr. Wilen worked closely with Sills Cummis & Gross' attorneys, Andrew H. Sherman, Philip R. White and Boris I. Mankovetskiy, in pursuing these claims. Sills Cummis & Gross is a full-service corporate law firm with over 155 attorneys in New Jersey and New York. The Firm's work is diversified among industries such as pharmaceutical and medical device, health care, life sciences, banking and finance, retail and commercial real estate, manufacturing, technology and telecommunications. EisnerAmper is the 14th largest accounting firm in the United States and has offices in eleven locations along the New York/New Jersey/Philadelphia corridor and in the Cayman Islands. About Bayonne Hospital Center Established in 1888, Bayonne Hospital Center -- http://www.BayonneMedicalCenter.org/-- operated a 278-bed, fully accredited, award-winning acute-care hospital located in Hudson County, N.J. Bayonne Medical Center sought Chapter 11 protection (Bankr. D. N.J. Case No. 07-15195) April 16, 2007. Lawrence C. Gottlieb, Esq., Adam C. Rogoff, Esq., and Eric J. Haber, Esq., at Cooley Godward Kronish LLP, represent the Debtor in its restructuring efforts. Stephen V. Falanga, Esq., at Connell Foley LLP, is the Debtor's local counsel. Kurtzman Carson Consultants LLC is the Debtor's claims and noticing agent. Andrew H. Sherman, Esq., and Boris I. Mankovetskiy, Esq., at Sills Cummis Epstein & Gross PC, represent the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it estimated assets and debts of less than $100 million. The Bankruptcy Court approved the sale of the hospital for $41.5 million, consisting of $100,000 in cash, assumption of $7 million owed to one secured creditor, and assumption of other pre- and post-bankruptcy obligations. The Debtor filed its first amended joint plan of liquidation on Feb. 23, 2009, and the Bankruptcy Court confirmed the plan on Apr. 9, 2009. BION ENVIRONMENTAL: GHP Horwath Raises Going Concern Doubt ---------------------------------------------------------- Bion Environmental Technologies, Inc., filed on September 21, 2010, its annual report on Form 10-K for the fiscal year ended June 30, 2010. GHP Horwath, P.C., in Denver, Colo., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has not generated revenue and has suffered recurring losses from operations. The Company reported a net loss of $3.0 million for fiscal 2010, compared to a net loss of $1.3 million for fiscal 2009. The Company has not recorded any revenue from operations for either of the years ended June 30, 2010, or June 30, 2009. As of June 30, 2010, the Company had cash and cash equivalents of approximately $1.0 million. During the year ended June 30, 2010, net cash used in operating activities was $2.1 million, primarily consisting of cash operating expenses. The Company does not anticipate generating sufficient revenues to offset operating and capital costs for a minimum of two to five years. The Company's balance sheet at June 30, 2010, showed $2.0 million in total assets, $909,916 in total liabilities, $2.5 million in redeemable convertible preferred stock, and a stockholders' deficit of $1.4 million. A full-text copy of the Form 10-K is available for free at: http://researcharchives.com/t/s?6b8f About Bion Environmental Crestone, Colo.-based Bion Environmental Technologies, Inc. (OTC BB: BNET) has provided environmental treatment solutions to the agriculture and livestock industry since 1990. Bion's patented next-generation technology provides a unique comprehensive treatment of livestock waste that achieves substantial reductions in nitrogen and phosphorus, ammonia, greenhouse and other gases, as well as pathogens, hormones, herbicides and pesticides. BLAST ENERGY: Closes Purchase of Sugar Valley Field in Matagorda ---------------------------------------------------------------- In a regulatory filing Thursday, Blast Energy Services, Inc., disclosed that on September 9, 2010, it entered into an 'Agreement to Purchase Sugar Valley Interest' with Sun Resources Texas, Inc., a privately-held company based in Longview, Texas to acquire (a) Sun's oil and gas interests in the Sugar Valley Field located in Matagorda County, Texas, encompassing approximately 217 total acres, and including an approximately 66% working interest in three wells currently producing a total of approximately 43 gross barrels per day with an estimate of more than 60,000 barrels of net in recoverable reserves to Blast, and (b) certain surface and production equipment related to the leases. The closing of the acquisition of the Property occurred on September 21, 2010. Under the terms of the Sun Agreement, Blast agreed to provide Sun the following consideration for Sun's interest in the Property: a) A cash payment of $600,000, which Blast paid on September 20, 2010; b) A promissory note for $300,000, which note does not accrue interest, and is payable at a rate of $10,000 per month commencing October 31, 2010, with the final balance payable in full on or before October 8, 2011, secured by a deed of trust, providing Sun a security interest in the Property, which Note has been issued to date; and c) 6,000,000 shares of restricted common stock, valued at $300,000, which have been issued to the shareholders of Sun, based upon the $0.05 per share closing market price of Blast's common stock on the Over-The-Counter Bulletin Board on the day the Sun Agreement was signed. Pursuant to the Sun Agreement, Sun is to manage and operate the Property after Closing until such time as the Note is repaid in full. Upon the repayment of the Note, Blast and Sun may mutually agree to enter into a joint operating agreement in connection with the management and operation of the Property. Blast also agreed that Sun would retain a one percent of 8/8ths working interest in the Property as long as Sun serves as the operator of the Property. Blast funded the initial cash portion of the acquisition from a portion of the $1.4 million in funds, net of attorney's fees, which Blast received from Quicksilver Resources, on or around September 20, 2010, in connection with the Compromise Settlement and Release Agreement entered into with Quicksilver in September 2008. The monthly payments toward the Note are expected to be paid from a portion of the net operating cash flow generated by the Property. The balloon payment on the Note is expected to be paid from a portion of the fourth and final Quicksilver settlement payment of a net $1.4 million due in September 2011. About Blast Energy Based in Houston, Blast Energy Services, Inc. is an emerging technology company in the energy sector and strives to assist oil and gas companies in producing more economically. The Company's balance sheet at June 30, 2010, showed $4.1 million in total assets, $1.9 million in total liabilities, and stockholders' equity of $2.2 million. * * * As reported in the Troubled Company Reporter on April 5, 2010, GBH CPAs, PC, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred a loss from continuing operations for the year ended December 31, 2009, and has an accumulated deficit at December 31, 2009. BLAST ENERGY: Posts $202,184 Net Loss in June 30 Quarter -------------------------------------------------------- Blast Energy Services, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $202,184 on $69,623 of revenue for the three months ended June 30, 2010, compared to a net loss of $593,682 on $84,319 of revenue for the same period last year. The Company has an accumulated deficit of $73 million as of June 30, 210. The cash balance of $22,638 as of June 30, 2010 is not sufficient to fund the Company's operations for the next twelve months. The Company's balance sheet at June 30, 2010, showed $4.1 million in total assets, $1.9 million in total liabilities, and stockholders' equity of $2.2 million. As reported in the Troubled Company Reporter on April 5, 2010, GBH CPAs, PC, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred a loss from continuing operations for the year ended December 31, 2009, and has an accumulated deficit at December 31, 2009. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b95 About Blast Energy Based in Houston, Blast Energy Services, Inc. is an emerging technology company in the energy sector and strives to assist oil and gas companies in producing more economically. BLOCKBUSTER INC: Fitch Downgrades Issuer Default Rating to 'D' -------------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating of Blockbuster Inc. to 'D' from 'RD' and has withdrawn the ratings on Blockbuster's $630 million senior secured notes and $300 million senior subordinated notes. Fitch expects to withdraw its IDR on Blockbuster within 30 days. The downgrade of the IDR to 'D' or 'Default' and the withdrawal of the security ratings follow Blockbuster's Chapter 11 bankruptcy filing. Under the terms of the proposed reorganization plan, the company's 11.75% senior secured note will be exchanged for equity of a reorganized Blockbuster. The company's plan anticipates that there will be no recovery by the holders of the $300 million senior subordinated notes. The only debt expected to remain on the company's balance sheet upon its emergence from Chapter 11 under the proposed plan will be the amounts drawn under the $125 million debtor-in-possession financing that the company has secured from the senior noteholders, which will convert to an exit loan facility upon consummation of the plan, and a new exit revolving credit facility of up to $50 million. The recapitalization plan would substantially reduce the company's nearly $1 billion of debt. Blockbuster also announced plans to continue operating its current 3,000 stores, although the company will evaluate its U.S. store portfolio with potential store closings expected. Fitch has taken these rating actions: Blockbuster Inc. -- Long-term IDR downgraded to 'D' from 'RD'; -- $630 million senior secured notes 'C/RR4' withdrawn; -- $300 million senior subordinated notes 'C/RR6' withdrawn. BLOCKBUSTER INC: Moody's Downgrades Default Rating to 'D' --------------------------------------------------------- Moody's Investors Service downgraded Blockbuster, Inc.'s Probability of Default Rating to D from Ca/LD. The downgrade was prompted by Blockbuster's September 23, 2010 announcement that it entered Chapter 11 in the United States Bankruptcy Court. Ratings Rationale Subsequent to the actions, Moody's will withdraw the ratings because Blockbuster has entered bankruptcy. This rating was downgraded and will be withdrawn: * Probability of Default Rating to D from Ca/LD These ratings will be withdrawn: * Corporate Family Rating at Ca * Probability of Default Rating at D * Senior secured notes at Caa1 (LGD 2, 19%) * Senior subordinated notes at C (LGD 5, 79%) Blockbuster Inc. provides in-home movie and game entertainment through several channels including; its store base, website, digital download, and vending kiosks. Blockbuster's approximately 5,800 stores are located throughout the United States, its territories, and 16 other countries. Annual revenues are about $3.7 billion. BOSTON GENERATING: Secured Lenders Want Sale Documents ------------------------------------------------------ Secured lenders CarVal Investors, LLC, and Fortress Investment Group LLC, ask the U.S. Bankruptcy Court for the Southern District of New York to adjourn the hearing scheduled for September 27, 2010, to consider Boston Generating, LLC, et al.'s request to sell substantially all of their assets. The Lenders explained that the Debtors refused to cooperate with them and failed to provide them with access to important information. The Lenders requested that the hearing be adjourned until the Debtors produce the information requested. Boston Generating, LLC and its affiliates want to sell their business to Constellation Holdings, Inc., for $1.1 billion, absent higher and better offers for the assets. They propose that: -- October 4, 2010, be the last date by which potential bidders may deliver preliminary bid documents required to participate in the auction; -- October 25, 2010, at 4:00 p.m., prevailing Eastern Time, be the deadline for objections to the sale and/or the assumption and assignment of assumed contracts or cure amounts related thereto; -- October 25, 2010, at 5:00 p.m. prevailing Eastern Time, be the deadline by which all binding bids must be actually received pursuant to the bidding procedures; -- October 29, 2010, be the date of the auction, if one is needed; and -- November 2, 2010, be the date for the sale hearing. A copy of the APA and proposed bidding procedures is available for free at http://ResearchArchives.com/t/s?69df About Boston Generating New York-based Boston Generating, LLC, owns nearly 3,000 megawatts of mostly modern natural gas-fired power plants in the Boston area. Privately held Boston Generating is an indirect subsidiary of US Power Generating Co., and considers itself as the third- largest fleet of plants in New England. Boston Generating filed for Chapter 11 protection on August 18, 2010 (Bankr. S.D.N.Y. Case No. 10-14419). Boston Generating estimated its assets and debts at more than $1 billion as of the Petition Date. EBG Holdings LLC; Fore River Development, LLC; Mystic, LLC; Mystic Development, LLC; BG New England Power Services, Inc.; and BG Boston Services, LLC, filed separate Chapter 11 petitions. D. J. Baker, Esq., at Latham & Watkins LLP, serves as bankruptcy counsel for the Debtors. JP Morgan Securities is the Debtors' investment banker. Perella Weinberg Partners, LP, is the Debtors' financial advisor. Brown Rudnick LLP is the Debtors' regulatory counsel. FTI Consulting, Inc., is the Debtors' restructuring consultant. Anderson Kill & Olick, P.C., is the Debtors' conflicts counsel. The Garden City Group, Inc., is the Debtors' claims agent. SUMMIT BRANTLEY: To Present Plan for Confirmation on Nov. 3 ----------------------------------------------------------- JacksonSun.com reports that a federal bankruptcy judge approved the disclosure statement describing the restructuring plan of Summit Brantley Building Innovations. The bankruptcy court will confirm a hearing to consider confirmation of the Plan on November 3. According to JacksonSun, under the Plan, creditors are expected to receive only part of what is owed to them. Former workers, on the other hand, will be paid in full in cash within 30 days of confirmation of the plan, or on Dec. 31, whichever is later. Summit Brantley Building Innovations filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of Tennessee on January 22, 2010 (Bankr. W.D. Tenn. Case No. 10-10234). The Company disclosed $811,190 in assets and $1,238,558 in liabilities in its schedules. BREITBURN ENERGY: Moody's Assigns 'B1' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service assigned BreitBurn Energy Partners L.P. a B1 Corporate Family Rating and a B3 rating to its proposed offering of $250 million of senior notes due 2020. Moody's also assigned a SGL-3 Speculative Grade Liquidity rating to BreitBurn. The rating outlook is stable. Ratings Rationale "BreitBurn's durable property base, balanced exposure to oil and natural gas and relatively low leverage on reserves supports its B1 rating," stated Pete Speer, Moody's Vice President. "However, the rating also reflects the partnership's small production scale and its distribution burden to its common unit holders." The partnership's property base is anchored by its Antrim Shale holdings in Michigan, which produces primarily natural gas and accounted for approximately 68% of total proved reserves at December 31, 2009. This proved reserve concentration is moderated by production from long lived oil producing properties located in California, Wyoming and Florida. In the second quarter of 2010, BreitBurn's production was 49% oil. The durability of this property base was demonstrated in 2009 when the partnership significantly reduced capital expenditures with only a modest decline in production. The partnership's leverage on proved reserves is also lower than all B1 rated peers. These strengths are tempered by BreitBurn being a master limited partnership that accordingly distributes a high proportion of its operating cash flow. The partnership also has relatively modest production volumes, which at around 18,500 boepd is among the smallest of all B1 and B2 rated independent exploration and production companies. BreitBurn's leverage as measured on production volumes is correspondingly high. The SGL-3 rating is based on Moody's expectation that BreitBurn will have adequate liquidity over the next twelve months. The proceeds of the senior notes offering will be used to repay borrowings under the partnership's senior secured revolving credit facility. Pro forma for the offering and the corresponding reduction to the borrowing base, BreitBurn would have had approximately $380 million of availability on its revolver at June 30, 2010. The partnership's revenues are supported by a policy of consistently hedging a high proportion of production, which provides predictability to its cash flows, supports the borrowing base for its revolver, and should maintain adequate headroom under the debt covenants. Moody's expect this revolver availability to be more than adequate to fund the forecasted negative free cash flow over the remainder of 2010 and first half of 2011. The B3 senior unsecured notes rating reflects both the overall probability of default of BreitBurn, to which Moody's assigns a PDR of B1, and a loss given default of LGD 5 (87%). The proposed senior notes are unsecured and guaranteed by the restricted subsidiaries on a senior unsecured basis. The revolving credit facility will have an estimated borrowing base of $673 million and a senior secured claim to substantially all of the company's assets. The size of the credit facility's potential priority claim in comparison to the senior notes results in the notes being rated two notches beneath BreitBurn's B1 CFR, in accordance with Moody's Loss Given Default Methodology. BreitBurn Energy Partners L.P. is an independent exploration and production master limited partnership headquartered in Los Angeles, California. CANTON STATE: Weiss Gives Mo. Bank Very Weak E Rating ----------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Canton State Bank based in Canton, Mo. 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 June 30, 2010, the institution's balance sheet showed $34.1 million in assets. CAROLINA FIRST: Weiss Gives S.C. Bank Very Weak E+ Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Carolina First Bank based in Greenville, S.C. 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 June 30, 2010, the institution's balance sheet showed $11.5 billion in assets. CARVER STATE: Weiss Gives Ga. Bank Very Weak E- Rating ------------------------------------------------------ Weiss Ratings has assigned its "very weak" E- rating to Carver State Bank based in Savannah, Ga. 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 June 30, 2010, the institution's balance sheet showed $41.7 million in assets. CBGB HOLDINGS: Guitar Hero Deal Okayed; Deal Proceeds in Escrow --------------------------------------------------------------- Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review, reports that Judge Stuart M. Bernstein of the U.S. Bankruptcy Court in Manhattan on Thursday signed off on a licensing agreement between CBGB Holdings LLC and game developer Activision that allows the CBGB stage -- which, during 30-some years a punk-rock music club, hosted the likes of Blondie and the Ramones -- to appear as one of the venues on Guitar Hero. CBGB Holdings stands to receive a $30,000 flat fee in exchange for the game's use of its name, an asset it purchased not long after the club's closure and the death of founder Hilly Kristal. CBGB Holdings filed for Chapter 11 protection amid a dispute with the Kristal estate over a $2.4 million note as well as the fate of the purchased assets, which the estate has accused CBGB Holdings of squandering. The estate didn't oppose the Guitar Hero licensing agreement but held that the deal offers "minimal economic benefit." "Unfortunately, the agreement is a perfect example of the type of business the debtor has engaged in since acquiring the Kristal estate's assets over two years ago -- it has minimal economic value and has only a highly-speculative chance of enhancing and raising the profile of the CBGB brand," the estate said in court papers earlier this month, according to Ms. Palank. "While the Kristal estate does not have an issue with the agreement per se, it questions the value or necessity of the agreement to the debtor which has to restructure millions of dollars in obligations, and propose a viable business plan in order to exit Chapter 11." DBR further relates that the estate also claims that in light of CBGB Holdings' default on a promissory note it purchased from the company, it's now the owner of the intellectual property that's at the heart of the licensing agreement. Should the bankruptcy court take its side, the estate said it would be entitled to the proceeds of the licensing agreement, not CBGB Holdings. According to DBR, with that issue yet to be worked out, the Kristal estate asked the licensing payments be set aside. Judge Bernstein ordered CBGB Holdings to set aside the licensing fees it receives under the Guitar Hero agreement and forbade the company from spending those fees without his permission. About CBGB Holdings CBGB Holdings LLC purchased the name and copyrights associated with Manhattan's legendary punk-rock club CBGB in 2008. CBGB Holdings filed for bankruptcy on June 11, 2010 (Bankr. S.D.N.Y. Case No. 10-13130). Judge Stuart M. Bernstein presides over the case. Kenneth A. Reynolds, Esq., at McBreen & Kopko, in Jericho, New York, serves as the Debtor's counsel. The petition listed $1 million to $10 million in assets and debts. CCGI HOLDING: S&P Assigns Corporate Credit Rating at 'B-' --------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its preliminary 'B-' corporate credit rating to CCGI Holding Corp. At the same time, S&P assigned a preliminary 'B-' issue rating and '4' preliminary recovery rating to the proposed $250 million term loan B and $25 million revolving credit facility to be issued by co-borrowers MegaPath Inc. and Covad Communications Group Inc. The '4' recovery rating indicates prospects for average (30%-50%) recovery in the event of a payment default. CCGI is a telecom provider that will result from the combination of Covad, MegaPath, and Speakeasy. The company intends to use proceeds from the term loan, conversion of $46 million of subordinated debt into preferred stock, and approximately $13.1 million of cash on hand to fund the $24 million cash consideration for Speakeasy, as well as repay nearly $255 million of total debt, including debt at MegaPath and Covad. The outlook is stable. The ratings on CCGI reflect the highly competitive nature of the telecom sector that the company serves and a potential lack of a defensible long-term competitive position. "The company also faces potential integration risks, including the challenge of combining three separate billing systems, which, in S&P's view, could prompt customer service issues and accelerate churn, the latter of which is an ongoing challenge for all companies in this space," said Standard & Poor's credit analyst Catherine Cosentino. "Despite these risks," added Ms. Cosentino, "S&P believes the company has potential upside to its operating cash flows through 2011 from significant targeted cost synergies associated with the combination." Even though S&P has not assumed full realization of the company's targeted $43.6 million in cost synergies, S&P does assume the company will improve leverage from around the mid-9x area S&P expects for 2010 on a pro forma basis. That figure includes S&P's adjustment to treat 100% of the preferred as debt (around 4x, excluding the preferred) to around the low-8x area by 2012 (around 3x without preferred). S&P also assume the company will improve its EBITDA margin from nearly 13% that S&P expects for 2010 to nearly 14% by 2012. CENTAUR LLC: Jr. Lenders Try to Block Credit Suisse Foreclosure --------------------------------------------------------------- Bankruptcy Law360 reports that Wells Fargo Bank NA and other junior lenders in Centaur LLC's bankruptcy are trying to block to a move by Credit Suisse Group AG to foreclose on more than $50 million in assets associated with Valley View Downs, an aborted casino project in western Pennsylvania. Indianapolis, Indiana-based, Centaur, LLC, aka Centaur Indiana, LLC -- http://www.centaurgaming.net/-- is a 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. CF BANK: Weiss Gives Ohio Bank Very Weak E- Rating -------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to CF Bank based in Fairlawn, Ohio 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 June 30, 2010, the institution's balance sheet showed $273.3 million in assets. CHAMPION ENTERPRISES: Files Joint Plan of Liquidation ----------------------------------------------------- BankruptcyData.com reports that Champion Enterprises filed with the U.S. Bankruptcy Court a Joint Plan of Liquidation and related Disclosure Statement. BData says the Plan provides for the payment of administrative claims and priority claims and the creation of a creditor trust that will administer and liquidate certain litigation claims for the benefit of general unsecured creditors. The Plan further provides for the substantive consolidation of all of the Debtors except CEI Liquidation Estate (formerly known as Champion Enterprises), for voting and distribution purposes, the termination of all equity interests in the Debtors, and the dissolution and winding up of the Debtors' affairs. A hearing to consider the Disclosure Statement is scheduled for October 26, 2010. About Champion Enterprises, Inc. Troy, Michigan-based Champion Enterprises, Inc., and its subsidiaries are international manufacturers of factory-built homes and steel-framed modular buildings, with operations in the United States, Canada and the United Kingdom. Buildings constructed by Champion and its subsidiaries consist of both single and multi-module units designed for either commercial or residential purposes. Champion products range from single-module HUD-Code homes to sophisticated commercial structures such as hotels. The Company filed for Chapter 11 protection on November 15, 2009 (Bankr. D. Del. Case No. 09-14019). The Company's affiliates also filed separate bankruptcy petitions. James E. O'Neill, Esq., Laura Davis Jones, Esq., Mark M. Billion, Esq., Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, assist Champion in its restructuring effort. The Company disclosed $576,527,000 in asset and $521,337,000 in liabilities as of October 3, 2009. CIRCUIT CITY: Workers Want Class Status on WARN Claim ----------------------------------------------------- Bankruptcy Law360 reports that Circuit City Stores Inc. employees alleging violations of the Worker Adjustment and Retraining Notification Act are fighting to be treated as a class in the Company's bankruptcy case, saying there is no reason for individual members to each file their own claims. About Circuit City Headquartered in Richmond, Virginia, Circuit City Stores Inc. (NYSE: CC) -- http://www.circuitcity.com/-- was a specialty retailer of consumer electronics, home office products, entertainment software and related services in the U.S. and Canada. Circuit City Stores together with 17 affiliates filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code on November 10, 2008 (Bankr. E.D. Va. Lead Case No. 08-35653). InterTAN Canada, Ltd., which runs Circuit City's Canadian operations, also sought protection under the Companies' Creditors Arrangement Act in Canada. Gregg M. Galardi, Esq., and Ian S. Fredericks, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, are the Debtors' general restructuring counsel. Dion W. Hayes, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, are the Debtors' local counsel. The Debtors also tapped Kirkland & Ellis LLP as special financing counsel; Wilmer, Cutler, Pickering, Hale and Dorr, LLP, as special securities counsel; and FTI Consulting, Inc., and Rotschild Inc. as financial advisors. The Debtors' Canadian general restructuring counsel is Osler, Hoskin & Harcourt LLP. Kurtzman Carson Consultants LLC is the Debtors' claims and voting agent. The Debtors disclosed total assets of $3,400,080,000 and debts of $2,323,328,000 as of August 31, 2008. Circuit City has opted to liquidate its 721 stores. It has obtained the Bankruptcy Court's approval to pursue going-out-of- business sales, and sell its store leases. In May 2009, Systemax Inc., a multi-channel retailer of computers, electronics, and industrial products, acquired certain assets, including the name Circuit City, from the Debtors through a Court- approved auction. CITIZENS BANK: Weiss Gives Tenn. Bank Very Weak E- Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Citizens Bank of Spencer based in Spencer, Tenn. 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 June 30, 2010, the institution's balance sheet showed $43.3 million in assets. CLEAR CREEK: Weiss Gives Colo. Bank Very Weak E+ Rating ------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Clear Creek National Bank based in Georgetown, Colo. 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 June 30, 2010, the institution's balance sheet showed $23.6 million in assets. CLOVERLEAF ENTERPRISES: Attorney's Fees Not Based on Results ------------------------------------------------------------ WestLaw reports that in assessing the reasonableness of fees requested by a debtor's attorney, a court must consider whether, at the time the services were rendered, a reasonable attorney would have believed that they would benefit the estate, rather than the practical effects actually achieved by the attorney's services. A bankruptcy judge in Maryland disagreed with a lone contrary Fifth Circuit decision. While the most critical factor in determining the reasonableness of a fee award is the degree of success obtained, debtors' attorneys are not guarantors of favorable results. In re Cloverleaf Enterprises, Inc., --- B.R. - ---, 2010 WL 2774823 (Bankr. D. Md.). Fort Washington, Maryland-based Cloverleaf Enterprises Inc. -- http://www.rosecroft.com/-- owns the Rosecroft Raceway, a harness track. The Company filed for Chapter 11 protection (Bankr. D. Md. Case No. 09-20056) on June 3, 2009, represented by Nelson C. Cohen, Esq., at Zuckerman Spaeder LLP in Washington, D.C. The Company estimated $10 million to $50 million in assets and $1 million to $10 million in debts in its Chapter 11 petition. The Company's operations were halted in June 2010. COLONIAL BANCGROUP: Consents to Revocation of Securities -------------------------------------------------------- In connection with the public administrative proceedings that the U.S. Securities and Exchange Commission instituted against The Colonial BancGroup, Inc. (Administrative Proceeding File No. 3-13967) to revoke the registration of the Company's securities registered under Section 12 of the Securities Exchange Act of 1934, as amended, the Company, on September 20, 2010, submitted to the Staff of the Commission an original executed Offer of Settlement setting forth proposed terms of settlement of the administrative proceeding and the revocation of the registration of the Company's securities. The Company expects that the Offer of Settlement will be submitted by the Staff to the Commission with a recommendation of approval. If approved, the registration of the Company's securities will be revoked. A full-text copy of the Offer of Settlement is available for free at http://researcharchives.com/t/s?6ba6 About The Colonial BancGroup Headquartered in Montgomery, Alabama, The Colonial BancGroup, Inc., (NYSE: CNB) was holding company to Colonial Bank, N.A, its banking subsidiary. Colonial bank -- http://www.colonialbank.com/ -- operated 354 branches in Florida, Alabama, Georgia, Nevada and Texas with over $26 billion in assets. On August 14, 2009, Colonial Bank was seized by regulators and the Federal Deposit Insurance Corporation was named receiver. The FDIC sold most of the assets to Branch Banking and Trust, Winston-Salem, North Carolina. BB&T acquired $22 billion in assets and assumed $20 billion in deposits of the Bank. The Colonial BancGroup filed for Chapter 11 bankruptcy protection on August 25, 2009 (Bankr. M.D. Ala. Case No. 09-32303). W. Clark Watson, Esq., at Balch & Bingham LLP, and Rufus T. Dorsey IV, Esq., at Parker Hudson Rainer & Dobbs LLP, assist the Debtor in its restructuring effort. In its schedules, the Debtor disclosed $45 million in total assets and $380 million in total liabilities as of the Petition Date. COLORADO VALLEY: Weiss Gives Tex. Bank Very Weak E+ Rating ---------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Colorado Valley Bank SSB based in La Grange, Tex. 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 June 30, 2010, the institution's balance sheet showed $27.4 million in assets. COMMUNITY BANK: Weiss Gives Ga. Bank Very Weak E+ Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Community Bank of Pickens County based in Jasper, Ga. 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 June 30, 2010, the institution's balance sheet showed $315.4 million in assets. COMMUNITY BANK: Weiss Gives Ill. Bank Very Weak E+ Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Community Bank-Wheaton/Glen Ellyn based in Glen Ellyn, Ill. 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 June 30, 2010, the institution's balance sheet showed $334.8 million in assets. COMMUNITY BANK: Weiss Gives Mo. Bank Very Weak E Rating ------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Community Bank of Shell Knob based in Shell Knob, Mo. 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 June 30, 2010, the institution's balance sheet showed $11.4 million in assets. COMMUNITYONE BANK: Weiss Gives N.C. Bank Very Weak E Rating ----------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to CommunityOne Bank, N.A. based in Asheboro, N.C. 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 June 30, 2010, the institution's balance sheet showed $2 billion in assets. CONSTITUTION CORPORATE: Undercapitalized; In Conservatorship ------------------------------------------------------------ The National Credit Union Administration on Friday assumed control of three undercapitalized corporate credit unions, announced a plan to isolate the impaired assets in the corporate credit union system, and finalized a set of stronger regulations -- key elements in its efforts to resolve the financial challenges facing corporate credit unions without disrupting consumer service. "The steps NCUA has taken [Fri]day represent a comprehensive solution to the problems afflicting the corporate credit union system," said NCUA Chairman Debbie Matz. "Just as important, this plan puts consumers first and ensures that there will be no loss to taxpayers. This plan also provides an orderly transition to a new regulatory regime for corporates. In addition, we are affording local credit unions greater choice in selection of their liquidity and back office provider." The Temporary Corporate Credit Union Share Guarantee Program remains fully in effect for the entire corporate system through December 31, 2012. In addition, NCUA continues to insure credit union and consumer deposits up to $250,000 per account. Setting the plan into motion required conservatorship of three additional corporate credit unions that are not viable: -- Members United Corporate Federal Credit Union of Warrenville, Illinois; -- Southwest Corporate Federal Credit Union of Plano, Texas; and -- Constitution Corporate Federal Credit Union of Wallingford, Connecticut. In March 2009, U.S. Central Corporate Federal Credit Union of Lenexa, Kansas, and Western Corporate Federal Credit Union of San Dimas, California, were also placed into conservatorship. In a conservatorship, NCUA replaces an institution's management and board, operating it in a way that protects taxpayers' and members' interests during its orderly transition and resolution. The plan to address the impaired assets and resolve these troubled institutions involves several interrelated steps: -- Isolating the impaired securities (legacy assets) held by these five corporate credit unions; -- Repackaging the legacy assets into new securities with an NCUA guarantee backed by the unconditional full faith and credit of the United States government; -- Issuing the new securities to investors on the open market; -- Transferring the corporates' still-valuable assets to newly created "bridge banks" that will allow for continued operations; and -- Transitioning operations now under NCUA conservatorship over a target of 24 months to other service providers. NCUA has consulted with the Treasury, Federal Reserve and other federal financial regulators in developing these plans, and will continue to work closely with these agencies to ensure the orderly resolution of conserved corporates, the effective implementation of the steps outlined, and the continued smooth operation of the credit union system. In particular, the life of the Temporary Corporate Credit Union Stabilization Fund has been extended to June 30, 2021, with the concurrence of Treasury Secretary Timothy F. Geithner. This will provide the NCUA Board with important flexibility in mitigating the impact of the annual assessments to credit unions for the costs over this period. It should be noted that the costs will be borne exclusively by the credit union industry, and will not result in any loss to taxpayers. NCUA adopted a new set of regulatory reforms aimed at strengthening the corporate credit union system. The new corporate regulation (NCUA Rules and Regulations, Part 704): -- Implements stronger capital requirements and establishes prompt corrective action measures for corporate credit unions; -- Establishes clear concentration limits on investments that will require corporate credit unions to better diversify their portfolios; -- Improves asset-liability management requirements to avoid liquidity and interest rate risks; and -- Raises governance standards to improve levels of experience and expertise on corporate boards. "NCUA's action to deal with the troubled institutions and the impaired securities on the corporates' books -- together with reforms to the NCUA regulation that governs the corporate system -- will create stronger safeguards for the nation's entire credit union system," said Chairman Matz. "The credit union community has long hoped to see a coordinated, market-based, least-cost solution to the corporate crisis, and we have delivered that [Fri]day." NCUA Board Member Gigi Hyland noted, "The regulatory reforms and plan to resolve the troubled institutions and their impaired assets are key steps to allow the credit union system to move forward. The corporate rule is stronger thanks to the 815 commenters who provided NCUA feedback. And, these actions reflect the key principle that has guided NCUA's efforts -- finding a solution that minimizes, as much as possible, the cost to the credit union system while spreading that cost out over time." NCUA Board Member Michael Fryzel commented that "NCUA, along with the entire credit union industry, has struggled with the corporate problem for over two years. [Fri]day's Board actions culminate months of analysis, review and planning and establish a regulatory framework and viable options that will prevent a reoccurrence of this crisis and give credit unions a choice for the future." Chairman Matz also emphasized that the future of the remainder of the corporate credit union system will be determined by the private sector's judgment, not by any government dictate. "The leaders of the nation's consumer credit unions must make the strategic business decisions about whether to recapitalize some of the remaining, viable corporates, switch to a different corporate, or seek services at some other type of institution," said Chairman Matz. "NCUA is confident that the new framework will enable the choices ahead to be made in the context of strong and safe credit union operations. The credit union industry, and the 90 million consumers it serves, deserve nothing less." * * * The Wall Street Journal's Mark Maremont and Victoria McGrane report that the three credit unions seized last week had a total of $19.67 billion in assets as of July 2010: Assets ------ Members United Corporate Federal Credit Union $8.93 billion Southwest Corporate Federal Credit Union $9.52 billion Constitution Corporate Federal $1.22 billion Credit Union The two credit unions seized in March 2009 had these assets: Assets ------ U.S. Central Corporate Federal Credit Union $34 billion Western Corporate Federal Credit Union $23 billion NCUA is the independent federal agency that regulates, charters and supervises federal credit unions. With the backing of the full faith and credit of the U.S. government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of over 90 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. CONTECH CONSTRUCTION: Bank Debt Trades at 16% Off ------------------------------------------------- Participations in a syndicated loan under which CONTECH Construction Products, Inc., is a borrower traded in the secondary market at 84.30 cents-on-the-dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.30 percentage points from the previous week, The Journal relates. CONTECH pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 31, 2013, and carries Moody's B3 rating and Standard & Poor's CCC+ rating. The loan is one of the biggest gainers and losers among 215 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Contech Construction Headquartered in West Chester, Ohio, CONTECH Construction Products, Inc. -- http://www.contech-cpi.com/-- makes, distributes, and installs civil engineering products related to environmental storm water, drainage, bridges, walls, and earth stabilization. CONTECH has dealers, distributors, or manufacturing plants in all 50 U.S. states and a national sales organization of more than 350 people. Investment firm Apax Partners owns CONTECH. As reported by the Troubled Company Reporter on September 17, 2010, Standard & Poor's lowered its ratings on Contech Construction Products Inc., including the corporate credit rating to 'CCC' from 'B-'. All ratings remain on CreditWatch, where they were placed with negative implications on June 18, 2010. "The downgrade and CreditWatch status reflects S&P's assessment that continued challenging levels of commercial construction activity and lower-than-expected residential construction activity are likely to continue to constrain Contech's operating results in the near term," said Standard & Poor's credit analyst Thomas Nadramia. CONTINENTAL TRUSTEES: S&P Assigns 'BB' Rating on $200 Mil. Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'BB' rating to Continental Trustees Ltd.'s $200 million fixed- /floating-rate step-up notes due 2040. The transaction structure is intended to mirror the credit risk of the underlying collateral in the form of a participation interest in a Banco Continental subordinated loan. S&P considers the credit quality of the underlying loan to be below S&P's long-term counterparty rating on the bank, reflecting both the incremental risk to creditors related to the subordinated position of these notes to the bank's senior creditors and the bank's flexibility in making interest payments. (S&P's ratings on this type of hybrid security generally incorporate the risk of nonpayment despite the permissibility of such nonpayment under the terms of the issue.) Banco Continental may opt to suspend interest payments on this note issue if it determines that canceling such interest payments is necessary or desirable to enable the bank to remain in compliance during the next 12 months with its minimum regulatory capital requirements, in accordance with Peruvian banking laws and regulations. In addition, interest on this security will be mandatorily suspended if Banco Continental is not in compliance with its applicable regulatory capital requirements, if the sector's regulatory body (the Superintendency of Banks, Insurance and Private Pension Fund Administrators) mandates a prohibition of such interest payments, or if there are no distributable profits for the bank as of the latest fiscal year end. The transaction rating reflects S&P's view that despite this flexibility and the possibility for a suspension in the payment of interest, S&P views such suspension as remote. If circumstances lead to an increased risk of a suspension of payments, S&P would consider further widening the difference between the transaction rating and the bank's counterparty credit rating. Standard & Poor's 'BBB-/A-3' counterparty credit ratings on Banco Continental primarily reflect the bank's strong market position as the second-largest player in the Peruvian financial system, its sound management team, and a solid financial risk profile. The bank's financial strength is evidenced mainly by its ample, stable, and low-cost deposit base, which represents the bank's main funding source; its high profitability and liquidity; healthy asset quality indicators; and good operating efficiency, enhanced by the involvement one of its two main owners, Banco Bilbao Vizcaya Argentaria S.A. (BBVA; AA/Negative/A-1+). Partially offsetting these strengths are the bank's exposure to Peru and the high competitive pressures in that country's financial system. The rating also reflects the role of Credit Suisse AG as lender under the subordinated loan. According to the transaction documents, Credit Suisse is responsible for transferring all payments received under the loan within 24 hours to the transaction trust, thereby mitigating any commingling risk. The interest rate on the notes will mirror that of the underlying collateral and will be fixed for the first 10 years, after which the notes will accrue interest at a floating rate equal to LIBOR plus a spread. As long as the step-up in the interest rate at year 10 does not exceed 200 basis points, S&P will characterize the loan as having "intermediate strong" equity credit until 2020 due to the loan's flexibility of payments, long-dated maturity, and significant subordination. Ratings List Banco Continental Rating ----------------- ------ Counterparty credit rating BBB-/Positive/A-3 Preliminary Rating Assigned Continental Trustees Ltd. $200 million fixed-/floating-rate step-up junior subordinated notes due 2040 BB CORNERSTON BANK: Weiss Gives N.D. Bank Very Weak E- Rating ---------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Cornerstone Bank based in Ederlin, N.D. 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 June 30, 2010, the institution's balance sheet showed $339.9 million in assets. COVENANT BANK: Weiss Gives Ill. Bank Very Weak E Rating ------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Covenant Bank based in Chicago, Ill. 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 June 30, 2010, the institution's balance sheet showed $76.4 million in assets. CREEKSIDE SENIOR: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Creekside Senior Apartments, LP 340 Royal Ponciana Way, Suite 305 Palm Beach, FL 33480 Bankruptcy Case No.: 10-53019 Chapter 11 Petition Date: September 22, 2010 Court: United States Bankruptcy Court Eastern District of Kentucky (Lexington) Debtor's Counsel: Douglas T. Logsdon, Esq. 201 E Main Street, #1000 Lexington, KY 40507 Tel: (859) 231-8780 E-mail: dlogsdon@mmlk.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Brian Doran, president of sole member of general partner. CROSSTOWN STOR-N-MORE: Gets Interim OK to Pay Insider Salary ------------------------------------------------------------ The Hon. Caryl E. Delano of the U.S. Bankruptcy Court for the Middle District of Florida authorized, on an interim basis, Crosstown Stor-N-More Self Storage, LLC, to pay insider management fees and salary. The Debtor may pay its general manager, D&S Management and Consulting Inc., a $3,200 management fee; and its insider Dawson Kleist an hourly rate of $10. The Court scheduled a final evidentiary hearing on September 28, 2010, at 1:30 p.m., to consider the Debtor's request to pay insider management fees and salary. About Crosstown Stor-N-More Self Storage, LLC Bradenton, Florida-based Crosstown Stor-N-More Self Storage, LLC's business consists of a self storage facility, an executive office center, and a car wash in Tampa, Florida. Crosstown Stor-N-More filed for Chapter 11 protection on August 20, 2010 (Bankr. M.D. Fla. Case No. 10-20055). Alberto F. Gomez, Jr., Esq., at Morse & Gomez, PA, assists the Debtor in its restructuring effort. The Debtor estimated assets at $10 million to $50 million and debts at $1 million to $10 million in its Chapter 11 petition. CYSTALLEX INTERNATIONAL: Posts $13.2MM Net Loss in June 30 Quarter ------------------------------------------------------------------ Crystallex International Corporation reported a net loss of $13.2 million for the three months ended June 30, 2010, compared to a net loss of $6.8 million for the same period last year. The Company recorded a loss from continuing operations for the three months ended June 30, 2010, of $12.8 million, compared to a loss of $6.3 million for the comparable periods in 2009. The increased loss is mainly due to the write-down of property, plant and equipment of $4.1 million, provision for recovery of value added taxes of $1.9 million, decreased foreign exchange gains of $2.4 million, increased interest expense of $273,000, and increased administration costs of $554,000 offset by reduced litigation expenses of $1.7 million and future income tax recoveries of $1.0 million. The Company's balance sheet at June 30, 2010, showed $74.2 million in total assets, $109.6 million in total liabilities, and a stockholders' deficit of $35.4 million. As at June 30, 2010, the Company had working capital of $20.0 million, including cash of $32.1 million. Management estimates that these funds will be sufficient to meet the Company's obligations and budgeted expenditures for the foreseeable future, but may not be sufficient to repay the $100.0 million notes payable due on December 23, 2011. The Company is currently pursuing a strategic partnership which, if concluded as currently envisaged, would result in the extinguishment of the Notes prior to maturity. In the event that the strategic partnership is not concluded and alternate sources of cash or other consideration are not available prior to maturity of the Notes, the Company may have to negotiate a payment or other settlement with the Noteholders to extinguish this obligation through a variety of payment consideration, which it believes is possible based on prior communications. "There is, however, no assurance that the Company would be successful in repaying or settling the Notes prior to or at maturity and, accordingly, substantial doubt exists as to the appropriateness of the use of accounting principles applicable to a going concern." A full-text copy of the unaudited financial statements for the three months ended June 30, 2010, is available for free at: http://researcharchives.com/t/s?6b96 About Crystallex International Crystallex International Corporation (TSX: KRY) (NYSE Amex: KRY) -- http://www.crystallex.com/-- is a Canadian based company, whose principal asset is its interest in the Las Cristinas gold project located in Bolivar State, Venezuela. DAMON PURSELL: Section 341(a) Meeting Scheduled for Oct. 14 ----------------------------------------------------------- The U.S. Trustee for Region 13 will convene a meeting of Damon Pursell Construction Company's creditors on October 14, 2010, at 2:00 p.m. The meeting will be held at US Courthouse, Room 2110A, 400 E. 9th Street, Kansas City, Missouri. 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. Kansas City, Missouri-based Damon Pursell Construction Company filed for Chapter 11 bankruptcy protection on September 15, 2010 (Bankr. W.D. Mo. Case No. 10-44965). Thomas G. Stoll, Esq., at Dunn & Davison, LLC, assists the Debtor in its restructuring effort. According to its schedules, the Debtor disclosed $18,458,000 in total assets and $11,981,801 in total liabilities as of the Petition Date. DAMON PURSELL: Files Schedules of Assets & Liabilities ------------------------------------------------------ Damon Pursell Construction Company has filed with the U.S. Bankruptcy Court for the Western District of Missouri its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $8,000,000 B. Personal Property $10,458,000 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $10,606,133 E. Creditors Holding Unsecured Priority Claims $438,446 F. Creditors Holding Unsecured Non-priority Claims $937,223 ----------- ----------- TOTAL $18,458,000 $11,981,801 Kansas City, Missouri-based Damon Pursell Construction Company filed for Chapter 11 bankruptcy protection on September 15, 2010 (Bankr. W.D. Mo. Case No. 10-44965). Thomas G. Stoll, Esq., at Dunn & Davison, LLC, assists the Debtor in its restructuring effort. DAMON PURSELL: Taps Dunn & Davison as Bankruptcy Counsel -------------------------------------------------------- Damon Pursell Construction Company asks for authorization from the U.S. Bankruptcy Court for the Western District of Missouri to employ Dunn & Davison, LLC, as bankruptcy counsel. Dunn & Davison will, among other things: a. prepare and file any petition, schedules, motions, statement of affairs, plan of reorganization, or other pleadings or documents which may be required in the proceedings; b. represent the Debtor at meetings of creditors, plan disclosure, confirmation and related hearings, and any adjourned hearings therefore; c. represent the Debtor in adversary proceedings and other contested bankruptcy matters; and, d. represent the Debtor in any other matter that may arise in connection with the Debtor's reorganization proceeding and its business operations. The hourly rates of Dunn & Davison's personnel are: Partners $225 Associates $175 Paralegals $115 Thomas G. Stoll, Esq., a shareholder of Dunn & Davison, assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Kansas City, Missouri-based Damon Pursell Construction Company filed for Chapter 11 bankruptcy protection on September 15, 2010 (Bankr. W.D. Mo. Case No. 10-44965). Thomas G. Stoll, Esq., at Dunn & Davison, LLC, assists the Debtor in its restructuring effort. According to its schedules, the Debtor disclosed $18,458,000 in total assets and $11,981,801 in total liabilities as of the Petition Date. DAVID MARCOE: Files Schedules of Assets & Liabilities ----------------------------------------------------- David Brian Marcoes and Lori Lucille Marcoe have filed with the U.S. Bankruptcy Court for the Western District of Washington its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $9,861,000 B. Personal Property $478,222 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $10,468,753 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $104,450 ----------- ----------- TOTAL $10,339,222 $10,573,203 Seattle, Washington-based David Brian Marcoe and David Brian Marcoe and Lori Lucille Marcoe filed for Chapter 11 bankruptcy protection on September 15, 2010 (Bankr. W.D. Wash. Case No. 10- 20975). Cynthia A. Kuno, Esq., at Hanson Baker Ludlow Drumheller PS, assists the Debtors in their restructuring effort. DAVID MARCOE: Section 341(a) Meeting Scheduled for Oct. 19 ---------------------------------------------------------- The U.S. Trustee for Region 18 will convene a meeting of David Brian Marcoe and Lori Lucille Marcoe's creditors on October 19, 2010, at 1:00 p.m. The meeting will be held at US Courthouse, Room 4107, Seattle, Washington. 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. Seattle, Washington-based David Brian Marcoe and David Brian Marcoe and Lori Lucille Marcoe filed for Chapter 11 bankruptcy protection on September 15, 2010 (Bankr. W.D. Wash. Case No. 10- 20975). Cynthia A. Kuno, Esq., at Hanson Baker Ludlow Drumheller PS, assists the Debtors in their restructuring effort. According to their schedules, the Debtors disclosed $10,339,221 in total assets and $10,573,203 in total liabilities. DARYL PRICE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Daryl Price 2520 E. Downs Ridge Appleton, WI 54913 Bankruptcy Case No.: 10-35400 Chapter 11 Petition Date: September 22, 2010 Court: U.S. Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Judge: Susan V. Kelley Debtor's Counsel: John W. Menn, Esq. Paul G. Swanson, Esq. STEINHILBER, SWANSON, MARES 107 Church Avenue P.O. Box 617 Oshkosh, WI 54903 Tel: (920) 426-0456 Fax: (920) 426-5530 E-mail: jmenn@oshkoshlawyers.com pswanson@oshkoshlawyers.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wieb10-35400.pdf DEEP DOWN: Posts $452,000 Net Loss in June 30 Quarter ----------------------------------------------------- Deep Down, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $452,000 on $9.6 million of revenue for the three months ended June 30, 2010, compared with a net loss of $1.8 million on $6.2 million of revenue for the same period last year. The Company's balance sheet at June 30, 2010, showed $51.3 million in total assets, $13.9 million in total liabilities, and stockholders' equity of $37.4 million. The Company discloses that it will need to raise additional debt or equity capital or renegotiate or refinance its existing debt to fund working capital requirements, to support selling, general and administrative expenses and to pay all outstanding debt maturing on April 15, 2011, under the Whitney National Bank New Amended and Restated Credit Agreement. "We cannot provide any assurance that any financing will be available to us in the future on acceptable terms or at all. Any such financing could be dilutive to our shareholders. If we cannot raise required funds on acceptable terms, we may not be able to, among other things, (i) maintain SG&A; (ii) expand operations; (iii) hire and train new employees; (iv) respond to competitive pressures or unanticipated capital requirements; or (v) pay all outstanding debt maturing under the New Agreement. Per the terms of the New Agreement, we no longer have access to a line of credit and must rely solely on our cash position and operating cash flows for liquidity. Therefore, we are currently in discussions with several lenders who have expressed interest in refinancing our debt. While we believe that our results of operations, including gross profit and operating cash flows, will continue to improve over the remainder of the year, additional debt or equity capital will be necessary to fund working capital requirements, to support SG&A and to pay all outstanding debt under the New Agreement if our planned results of operations are not achieved. Further, failure to achieve our planned results could result in violation of certain of our loan covenants and require us to raise additional debt or equity capital. "The foregoing and other matters raise substantial doubt about our ability to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b94 About Deep Down Deep Down, Inc. (OTC BB: DPDW) -- http://www.deepdowncorp.com/-- is an oilfield services company serving the worldwide offshore exploration and production industry. Deep Down's proven services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, distributed and drill riser buoyancy, ROVs and tooling, marine vessel automation, control, and ballast systems. Deep Down supports subsea engineering, installation, commissioning, and maintenance projects through specialized, highly experienced service teams and engineered technological solutions. The Company's primary focus is on more complex deepwater and ultra-deepwater oil production distribution system support services and technologies, used between the platform and the wellhead. DELAWARE COUNTY BANK: Weiss Gives Ohio Bank Very Weak E+ Rating --------------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Delaware County Bank & Trust Co. based in Lewis Center, Ohio 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 June 30, 2010, the institution's balance sheet showed $643.8 million in assets. DENNIS NESMITH: Case Summary & 11 Largest Unsecured Creditors ------------------------------------------------------------- Joint Debtors: Dennis Wayne NeSmith Catherine Brown NeSmith P.O. Box 352 Clayton, GA 30525 Bankruptcy Case No.: 10-24270 Chapter 11 Petition Date: September 23, 2010 Court: U.S. Bankruptcy Court Northern District of Georgia (Gainesville) Debtors' Counsel: Cameron M. McCord, Esq. JONES & WALDEN, LLC 21 Eighth Street, NE Atlanta, GA 30309 Tel: (404) 564-9300 Fax: (404) 564-9301 E-mail: cmccord@joneswalden.com Scheduled Assets: $3,817,820 Scheduled Debts: $5,142,551 A list of the Joint Debtors' 11 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb10-24270.pdf DESERT SPRINGS: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Desert Springs Equestrian Center, LLC 9200 N Ghost Ranch Trail Marana, AZ 85653 Bankruptcy Case No.: 10-30267 Chapter 11 Petition Date: September 22, 2010 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: Eileen W. Hollowell Debtor's Counsel: Eric Slocum Sparks, Esq. ERIC SLOCUM SPARKS PC 110 S Church Ave #2270 Tucson, AZ 85701 Tel: (520) 623-8330 Fax: (520) 623-9157 E-mail: eric@ericslocumsparkspc.com Scheduled Assets: $1,897,780 Scheduled Debts: $960,637 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-30267.pdf The petition was signed by Lorilei Peters, manager/member of manager. DEX MEDIA EAST: Bank Debt Trades at 24% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media East LLC is a borrower traded in the secondary market at 75.80 cents-on- the-dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.96 percentage points from the previous week, The Journal relates. The Company pays 250 basis points above LIBOR to borrow under the facility. The bank loan matures on October 24, 2014. The debt is not rated by Moody's and Standard & Poor's. The loan is one of the biggest gainers and losers among 215 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Dex Media East Based in Cary, North Carolina, R.H. Donnelley Corp., fka The Dun & Bradstreet Corp. (NYSE: RHD) -- http://www.rhdonnelley.com/-- publishes and distributes print and online directories in the U.S. It offers print directory advertising products, such as yellow pages and white pages directories. R.H. Donnelley Inc., Dex Media, Inc., and Local Launch, Inc., are the company's only direct wholly owned subsidiaries. Dex Media East, LLC, is a publisher of the official yellow pages and white pages directories for Qwest Communications International Inc. (Qwest) in the states, where Qwest is the primary incumbent local exchange carrier, such as Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection on May 28, 2009 (Bank. D. Del. Case No. 09- 11833 through 09-11852), after missing a $55 million interest payment on its senior unsecured notes due April 15. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois represent the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' financial advisor is Deloitte Financial Advisory Services LLP while its investment banker is Lazard Freres & Co. LLC. The Garden City Group, Inc., is claims and noticing agent. Bankruptcy Creditors' Service, Inc., publishes R.H. Donnelley Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of R.H. Donnelley Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) DOLLAR THRIFTY: Avis Budget Hikes Cash Offer to $45.79 a Share -------------------------------------------------------------- Avis Budget Group, Inc., on Thursday issued a statement regarding its outstanding offer to acquire Dollar Thrifty Automotive Group, Inc.: "We continue to believe in the merits of an Avis Budget-Dollar Thrifty transaction, and we are therefore increasing the cash portion of our offer from $40.75 to $45.79 per share (which would include the proceeds of a pre-closing special dividend to be paid by Dollar Thrifty consistent with our previous proposal). Our revised offer of $45.79 in cash and 0.6543 shares of Avis Budget stock represents a meaningful premium over the revised offer from Hertz Global Holdings, Inc. (NYSE: HTZ). We believe that the increased value is warranted based on improving fundamentals in the industry and at Dollar Thrifty in particular. We would be willing to offer an even higher price in the absence of the break- up fee that Dollar Thrifty's Board has provided for in its agreement with Hertz. "We believe it would be beneficial for Dollar Thrifty shareholders if the Dollar Thrifty Board of Directors engaged in a process to maximize value, rather than letting Hertz dictate timing and process. "Dollar Thrifty's Board continues to disappoint. Not only have they once again failed to engage in any discussions with Avis Budget prior to entering into the new binding agreement with Hertz, but they have also failed to use the renegotiation with Hertz as an opportunity to create a level playing field for all potential bidders. Dollar Thrifty's failure to remove Hertz's matching rights makes no sense given that Hertz characterized its revised offer as "non-negotiable and final." "Based on the analyses typically performed by regulatory authorities, a number of airports will become highly concentrated if Hertz acquires Dollar Thrifty (as traditionally defined by FTC analysis). A sale by Hertz of its Advantage brand -- a trivial operation that has no presence at several dozen airports -- is by itself unlikely to be a meaningful or sufficient remedy for any antitrust issues. Moreover, the real pricing picture, as shown in the materials posted today to the Investor Relations section of the Avis Budget Group website, tells the true story about Hertz's exclusive relationship with AAA: With more than $500 million of leisure revenue, Hertz's offering to AAA members clearly competes directly with Dollar, Thrifty and other value brands. "In light of these concerns, there is no justification for Dollar Thrifty holding a shareholder meeting before the FTC completes its review of the Avis Budget and Hertz submissions." Citigroup and Morgan Stanley & Co. Incorporated are acting as financial advisors to Avis Budget Group, and Kirkland & Ellis LLP and Arnold & Porter LLP are acting as legal counsel. * * * The Hertz proposal includes a $44.6 million termination fee payable should a potential deal not survive regulatory scrutiny. Lou Whiteman, senior writer at TheDeal.com, says Avis isn't trying very hard. Mr. Whiteman wrote that analysts have said from the beginning that either Hertz or Avis would have a difficult time convincing regulators to sign off on a deal for Dollar Thrifty, and the target's management has made it clear that the lack of a termination fee is a deal-breaker. Mr. Whiteman notes Dollar Thrifty CEO Scott Thompson in August said that while the Avis offer was "more favorable, from a financial point of view," the lack of a termination fee "can only represent to us, to the market and to any objective observer a lack of confidence by Avis Budget in its position." According to Mr. Whiteman, Avis' participation has been a cause for celebration and frustration on the part of Dollar Thrifty shareholders. While the rival bidder has already led to one Hertz price boost, the lack of a termination fee has led some to believe Avis is more interested in complicating Hertz's effort and boosting its cost than actually buying the company. "Dollar Thrifty drew them a road map back in August, and Avis ignored it," one investor said, according to Mr. Whiteman. Mr. Whiteman said the next move likely will depend on Hertz's willingness to match, and Avis' willingness to talk termination fees. According to Mr. Whiteman, there is risk in halting procedures indefinitely and waiting for the FTC: Shares of Dollar Thrifty, trading above $52 today, hovered below $10 apiece as recently as last summer and were as low as $17.72 late last year. The auto rental business is both competitive and vulnerable to a potential economic double dip. "Dollar Thrifty already delayed its shareholder meeting once to allow time for an Avis response, only to see one of its primary issues not addressed in that response. If Hertz were to match Avis' offer before the Sept. 30 meeting, and perhaps even if not, the company might see no reason to postpone the vote again," Mr. Whiteman wrote. 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'. ELLIE CHAPPEL: Case Summary & 4 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Ellie N. Chappel 578 Wahington Boulevard, #753 Marina Del Rey, CA 90292 Bankruptcy Case No.: 10-50621 Chapter 11 Petition Date: September 23, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Barry Russell Debtor's Counsel: James M. Powell, Esq. LAW OFFICES OF JAMES M. POWELL 1894 Commercenter Drive W, Suite 108 San Bernardino, CA 92408 Tel: (951) 275-9667 Scheduled Assets: $2,272,000 Scheduled Debts: $1,689,000 A list of the Debtor's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-50621.pdf EMPIRE RESORTS: Enters Into Settlement with Noteholders ------------------------------------------------------- Empire Resorts, Inc has entered into a settlement agreement with the holders of over 93% of the outstanding principal amount of the Company's 51/2% Senior Convertible Notes Due 2014 and the Trustee under the indenture governing the Notes, pursuant to which the parties have agreed to settle the proceeding commenced by the Company in August 2009 in the Supreme Court of New York, Sullivan County relating to the exercise of the put right contained in the indenture governing the Notes. Empire Resort Chairman of the Board Emanuel R. Pearlman commented, "The Board has worked diligently over the past months to forge the best possible outcome for our company and its various stakeholders. We are pleased to have reached this agreement with our Noteholders which resolves pending litigation and significantly deleverages the company." Under the terms of the settlement agreement, the Company has agreed to repay $22.5 million in aggregate principal amount of Notes and offer to exchange up to 100% of the aggregate principal amount of the Notes that remain outstanding after giving effect to the such repayments for $32.5 million in aggregate principal amount of 12% Senior Convertible Notes due 2014 to be issued by the Company and a pro rata share of one million shares of the Company's common stock. The Company also has the option to seek alternative financing to repurchase all Notes on or before November 22, 2010 for an amount equal to the sum of all outstanding principal and interest owed on the Notes plus $975,000. The Company will redeem any Notes held by a beneficial owner that does not accept the Company's offer, if made, to exchange the remaining Notes for the Restated Notes and common stock, subject to the terms of the settlement agreement. In addition to the foregoing, the Company repaid an aggregate of $10 million of principal amount of the Notes in July and August 2010 in connection with settlement discussions with the Trustee and the holders of the Notes. Upon the closing of the settlement agreement, the parties to the pending litigation will release all claims known, unknown or suspected that each may have against the other at such time and execute and file a Stipulation of Discontinuance providing for the dismissal of the pending litigation with prejudice and without costs to any party. The Restated Notes, if issued, will bear interest on the principal amount thereof at the rate of 12% per annum, 8% of which will be payable in cash and 4% of which will be payable in cash or, at the Company's option, in additional Restated Notes. The Restated Notes will be convertible, at the option of the holder, into shares of Common Stock based upon a conversion rate of 1,132 shares per $1,000 in principal amount subject to certain anti- dilution adjustment from time to time. The Restated Indenture governing the Restated Notes will set forth other important terms of the Restated Notes, including, without limitation, provisions relating to the holders' put option, mandatory and option redemptions, interest make-whole provisions, and restrictive covenants. The closing of the settlement agreement is subject to, among other things, the approval by the Company's stockholders of the transactions contemplated by the settlement agreement and of a corresponding increase in the Company's authorized capital stock and upon the acceptance of the company's exchange offer by holders of at least 90% of the then outstanding aggregate principal amount of Notes. Empire Resorts CEO Joseph D'Amato concluded, "This settlement is an important milestone for Empire Resorts. We are pleased to have crafted an agreement that resolves the uncertainty of litigation and also provides us with the flexibility to seek alternative financing arrangements to satisfy our obligations under the Notes until November 22, 2010. We are optimistic that resolving the pending litigation as provided under the settlement agreement will allow Empire Resorts to focus on our ongoing efforts to enhance shareholder value." About Empire Resorts Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY) -- http://www.empireresorts.com/-- currently owns and operates Monticello Casino & Raceway, a video gaming machine and harness racing track and casino located in Monticello, New York, 90 miles northwest of New York City. The Company's balance sheet at June 30, 2010, showed $85.95 million in total assets, $73.60 million in total liabilities, and $12.35 million in stockholders' equity. Auditor Friedman LLP, in New York, after auditing the Company's 2009 results, said Empire Resorts' ability to continue as a going concern depends on the Company's ability to fulfill its obligations with respect to its $65 million of 5-1/2% senior convertible notes. Friedman also noted of the Company's continuing net losses and negative cash flows from operating activities. ENTERGY LOUISIANA: Moody's Affirms Ba1 Preferred Stock Rating ------------------------------------------------------------- Moody's Investors Service assigned a senior secured rating of A3 to Entergy Louisiana's new issuance of first mortgage bonds. The bonds will be used to refinance outstanding first mortgage bonds. Concurrent with this rating assignment, Moody's affirmed all of Entergy Louisiana's existing ratings, including its A3 senior secured; Baa2 senior unsecured and Issuer Rating; and Ba1 preferred stock rating. The rating outlook is stable. Entergy Louisiana's ratings reflect the regulatory clarity provided by the extension of its formula rate plan, the recent recovery of 2008 storm costs through a securitized bond issue, and financial and cash flow coverage metrics that are adequate for its rating, partly because the storm cost securitization debt is not reported on its balance sheet. Ratings are constrained by capital expenditures that are projected to be elevated over the next several years, a low growth and economically depressed service territory, and event risk related to potential hurricanes in its service territory. In October 2009, the Louisiana Public Service Commission extended the company's formula rate plan for three years at the same ROE mid-point of 10.25% and a +/- 80 basis point bandwidth. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company. Louisiana regulators have been relatively supportive in terms of storm cost recovery, approving the recent issuance of $468.9 million of system restoration bonds for the recovery of costs associated with hurricanes Gustav and Ike in 2008 and to establish $200 million of reserves for future storms. The utility has also received initial regulatory support for the recovery of virtually all costs related to the now cancelled repowering of its Little Gypsy power plant from the LPSC staff. While the amount and timing of the recovery is still somewhat uncertain until the LPSC rules on the matter, the staff recommendation was supportive from a credit standpoint. Hearings are scheduled to begin in November 2010. Entergy Louisiana's financial and cash flow coverage metrics have exhibited significant variability in recent years due to the costs incurred and subsequent recovery of costs associated with severe hurricanes that affected the utility in both 2005 and 2008. Despite this variability, metrics have been generally adequate for the mid-Baa senior unsecured rating range, including CFO pre- working capital plus interest to interest of 3.7x and CFO pre- working capital to debt of 15.8% for the twelve months ended June 30, 2010. Following its most recent securitization, there are now more than $1 billion of off-balance sheet securitization bonds outstanding that are being serviced by Entergy Louisiana ratepayers. The utility does not report the securitized bonds that have been issued by state authorities for storm cost recovery ("Act 55 financings") on its balance sheet. If interest and debt associated with these financings are included in its coverage metrics, these metrics would be considerably lower, with CFO pre- working capital plus interest to interest of 3.1x and CFO pre- working capital to debt of 12.2% for the twelve months ended June 30, 2010. Although there is no recourse to Entergy Louisiana on these bonds in an event of default, the utility is the servicer of the bonds and its ratepayers are responsible for paying principal and interest on the bonds through system restoration or similar charges. The utility's capital expenditures are projected to increase substantially over the next several years as it undertakes the replacement of a steam generator at its Waterford 3 nuclear plant, and considers alternative generation to replace the capacity that will be necessary with the suspension of the repowering project at the Little Gypsy plant, in addition to the pending purchase of the 580 MW Acadia Unit 2 combined cycle power plant from Cleco. The utility maintains adequate liquidity, relying for the most part on its participation in the Entergy system money pool for short-term funding needs, which allows it to access both inter- company borrowings and funds from the parent company Entergy's $3.5 billion credit facility. The parent company recently improved its liquidity position by reducing its revolver borrowings by approximately $1 billion following the issuance of senior notes. In addition to accessing the money pool, Entergy Louisiana maintains its own $200 million bank credit facility expiring in August 2012, which was fully available as of June 30, 2010. Entergy Louisiana's rating outlook is stable, reflecting Moody's expectation the utility will continue to exhibit financial metrics that are adequate for its rating, that its major capital expenditure projects will be prudently financed with a balanced mix of debt and equity, and that the Louisiana regulatory environment will continue to allow for the full and reasonably timely recovery of prudently incurred costs, including those related to Little Gypsy. Ratings could be increased if economic conditions improve in its service territory, if Louisiana regulation continues to be relatively supportive, or if there is a sustained increase in reported credit metrics, including CFO pre-working capital plus interest to interest above 4.0x and CFO pre-working capital to debt above 20%. Ratings could be lowered if there is a decline in the supportiveness of the regulatory environment for utilities in Louisiana, if there is a substantial increase in debt to finance new capital projects or for new storm costs, or a sustained decline in reported cash flow coverage metrics, including CFO pre- working capital to interest below 3.3x and CFO pre-working capital to debt below 16%. Ratings assigned: * Entergy Louisiana, LLC $250 million First Mortgage Bonds 4.44% Series due January 15, 2026 at A3. Ratings affirmed: * Entergy Louisiana's A3 senior secured; Baa2 senior unsecured and Issuer Rating; and Ba1 preferred stock rating. Entergy Louisiana, LLC, is a public utility headquartered in Baton Rouge, Louisiana and a subsidiary of Entergy Corporation, an integrated energy company headquartered in New Orleans, Louisiana. ERICSON STATE: Weiss Gives Neb. Bank Very Weak E Rating ------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Ericson State Bank based in Ericson, Neb. 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 June 30, 2010, the institution's balance sheet showed $53 million in assets. EUROBANK: Weiss Gives Fla. Bank Very Weak E+ Rating --------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Eurobank based in Coral Gables, Fla. 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 June 30, 2010, the institution's balance sheet showed $106.4 million in assets. EXCEL NATIONAL: Weiss Gives Calif. Bank Very Weak E Rating ---------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Excel National Bank based in Beverly Hills, Calif. 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 June 30, 2010, the institution's balance sheet showed $219.4 million in assets. EZRI NAMVAR: Indicted For Alleged $20 Million Fraud --------------------------------------------------- Bankruptcy Law360 reports that Ezri Namvar, a Los Angeles real estate tycoon who's seen both his companies go bankrupt in the past 18 months, has been indicted on charges that he stole more than $20 million of client money from one company to pay off the debts of the other. Law360 says Mr. Namvar was charged with five counts of wire fraud Tuesday for allegedly stealing about $23 million from five clients of his business Namco Financial Exchange Corp. Ezri Namvar, Chairman, CEO, is founder and principal shareholder of Namco Capital Group, Inc., a privately held holding company for companies engaged in real estate investments and financial services. Creditors with $7.7 million in claims filed involuntary Chapter 11 petitions on December 22, 2008, against Mr. Namvar and Namco Capital (Bankr. C.D. Calif. Case No. 08-32349, and 08- 32333). FARMERS & MERCHANT: Weiss Gives Iowa Bank Very Weak E+ Rating ------------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Farmers & Merchant Bank & Trust based in Burlington, Iowa 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 June 30, 2010, the institution's balance sheet showed $202.9 million in assets. FARMERS STATE: Weiss Gives Ill. Bank Very Weak E- Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Farmers State Bank of Sublette based in Sublette, Ill. 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 June 30, 2010, the institution's balance sheet showed $63.2 million in assets. FARMERS STATE: Weiss Gives Neb. Bank Very Weak E+ Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Farmers State Bank based in Fairmont, Neb. 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 June 30, 2010, the institution's balance sheet showed $9.9 million in assets. FGIC CORP: Sharps Hikes Consent Fee; Exchange Offer Due Oct. 22 --------------------------------------------------------------- Sharps SP I LLC on Friday issued a supplement to the offer to exchange residential mortgage-backed securities and asset-backed securities insured by Financial Guaranty Insurance Company. Pursuant to the Supplement, Sharps SP I has increased the cash consent fee and other consideration being offered for certain classes of Eligible Insured Securities and has added 10 classes of securities to the offer as Eligible Insured Securities. The expiration date as to such added Eligible Insured Securities is 11:59 p.m., New York City time, on October 22, 2010. Holders of Eligible Insured Securities should refer to the Supplement for any revised terms to the offer and updated disclosure regarding FGIC. In addition, FGIC has informed Sharps SP I that the New York State Insurance Department has indicated that it will not permit FGIC to consent to the extension of the Offer beyond 11:59 p.m., New York City time, on October 22, 2010, the current Expiration Date. On September 15, Sharps SP I reported that as of September 14, (i) Eligible Insured Securities representing $2,572,480,485 in current unpaid principal balance measured as of April 30, 2010 have been tendered into the offer, (ii) non-binding agreements have been reached by Sharps or FGIC and Eligible Insured Securities holders to tender Eligible Insured Securities totaling $121,808,237 in aggregate current unpaid principal balance measured as of April 30, 2010, and (iii) letters of transmittal have been completed, although the Eligible Insured Securities have not yet been delivered, with respect to Eligible Insured Securities totaling $559,997,560 in current unpaid principal balance measured as of April 30, 2010. The aggregate current unpaid principal balance of the Eligible Insured Securities referenced in clauses (i), (ii) and (iii) of the preceding sentence represent 34.5% of all Eligible Insured Securities subject to the exchange offer. The offer is being conducted only with qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended, that are also qualified purchasers as defined in Section 2(a)(51) under the Investment Company Act of 1940, as amended. The certificates that may be issued pursuant to the offer have not been and, at the time of the closing of the transaction, will not be registered under the Securities Act or any state securities laws. The certificates may not be offered, sold or transferred in or outside of the United States except in reliance on the exemption from the registration requirements of the Securities Act afforded by Rule 144A thereunder and in accordance with applicable state and foreign securities laws to Qualified Institutional Buyers that are also Qualified Purchasers. About FGIC Corp. New York-based FGIC Corporation is a privately held insurance holding company. FGIC Corp's main business interest lies in the holdings of the bond insurer Financial Guaranty Insurance Company -- http://www.fgic.com/-- and it depends on dividend payments by FGIC for sustaining its operations. FGIC had stopped paying dividends to parent FGIC Corp. since January 2008. FGIC Corp. filed for Chapter 11 bankruptcy protection on August 3, 2010 (Bankr. S.D.N.Y. Case No. 10-14215). Paul M. Basta, Esq., Brian S. Lennon, Esq., and Patrick J. Nash, Jr., Esq., at Kirkland & Ellis LLP, serve as counsel to the Debtor. Garden City Group, Inc., is the Debtor's claims and notice agent. The Company disclosed $11,539,834 in assets and $391,555,568 in liabilities as of the petition Date. As reported by the Troubled Company Reporter on August 16, 2010, FGIC filed a plan of reorganization and disclosure statement. The Plan negotiated between FGIC Corp. and its key creditors and shareholders will allow the FGIC Corp. to cancel debt obligations in the aggregate amount of $391.5 million. The Plan provides that holders of general unsecured claims against FGIC Corp. -- which include holders of outstanding debt under FGIC Corp.'s prepetition revolving credit facility and holders of FGIC Corp.'s 6% Senior Notes due 2034 -- will receive substantially all of its $11.5 million in cash and the common stock in Reorganized FGIC Corp. The three largest common shareholders of FGIC Corp., representing over 90% of its common stock, have agreed to the cancellation of their equity interests pursuant to the Plan and have agreed to waive general unsecured claims against the estate in the aggregate amount of $7.2 million. As agreed upon with FGIC Corp.'s major creditors, Reorganized FGIC Corp. will be capitalized with no more than $400,000 to fund its business needs and will continue to operate as an insurance holding company after the Effective Date of the Plan. FIRST AMERICAN: Weiss Gives Colo. Bank Very Weak E+ Rating ---------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to First American State Bank based in Greenwood Village, Colo. 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 June 30, 2010, the institution's balance sheet showed $244.4 million in assets. FIRST BANK: Weiss Gives Fla. Bank Very Weak E+ Rating ----------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to First Bank of the Palm Beaches based in West Palm Beach, Fla. 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 June 30, 2010, the institution's balance sheet showed $74.8 million in assets. FIRST COMMUNITY: Weiss Gives Fla. Bank Very Weak E+ Rating ---------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to First Community Bank of America based in Pinellas Park, Fla. 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 June 30, 2010, the institution's balance sheet showed $518.1 million in assets. FIRST HOME: Weiss Gives Fla. Bank Very Weak E- Rating ----------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to First Home Bank based in Seminole, Fla. 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 June 30, 2010, the institution's balance sheet showed $94.5 million in assets. FIRST INTERNATIONAL: Weiss Gives Tex. Bank Very Weak E+ Rating -------------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to First International Bank based in Plano, Tex. 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 June 30, 2010, the institution's balance sheet showed $388.5 million in assets. FIRST NATIONAL: Weiss Gives Fla. Bank Very Weak E+ Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to First National Bank of Crestview based in Crestview, Fla. 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 June 30, 2010, the institution's balance sheet showed $137.8 million in assets. FIRST NATIONAL: Weiss Gives Wisc. Bank Very Weak E Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to First National Bank & Trust based in Barron, Wisc. 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 June 30, 2010, the institution's balance sheet showed $46.3 million in assets. FIRST STATE: Weiss Gives S.D. Bank Very Weak E- Rating ------------------------------------------------------ Weiss Ratings has assigned its "very weak" E- rating to First State Bank of Warner South based in Warner, S.D. 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 June 30, 2010, the institution's balance sheet showed $49.2 million in assets. FRANK MONGELLUZZI: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Frank Mongelluzzi 1165 State Route 27, Suite A-1011 Somerset, NJ 08873 Bankruptcy Case No.: 10-39289 Chapter 11 Petition Date: September 22, 2010 Court: U.S. Bankruptcy Court District of New Jersey (Trenton) Judge: Michael B. Kaplan Debtor's Counsel: Lawrence Morrison, Esq. 110 East 59th Street, 23rd Floor New York, NY 10022 Tel: (212-655-3582 Fax: (646) 514-3172 E-mail: morrlaw@aol.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb10-39289.pdf Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- ABTS Holdings, LLC 10-39287 09/22/10 FREEPORT STATE: Weiss Gives Kan. Bank Very Weak E- Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Freeport State Bank based in Harper, Kan. 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 June 30, 2010, the institution's balance sheet showed $21.6 million in assets. FREESCALE SEMICON: Bank Debt Trades at 9% Off in Secondary Market ----------------------------------------------------------------- Participations in a syndicated loan under which Freescale Semiconductor, Inc., is a borrower traded in the secondary market at 90.71 cents-on-the-dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.61 percentage points from the previous week, The Journal relates. The Company pays 425 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 16, 2016, and carries Moody's B2 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 215 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 September 16, 2010, Fitch Ratings affirmed these ratings for Freescale Semiconductor Holdings I, Ltd.: -- Issuer Default Rating at 'CCC'; -- Senior unsecured notes at 'C/RR6'; -- Senior subordinated notes at 'C/RR6'. Fitch has upgraded these senior secured ratings: -- Senior secured bank revolving credit facility to 'B- /RR3' from 'CCC/RR4'; -- Senior secured term loans to 'B-/RR3' from 'CCC/RR4'; -- Senior secured notes to 'B-/RR3' from 'CCC/RR4'; The Rating Outlook is Positive. Fitch's actions affect approximately $7.7 billion of total debt, including undrawn amounts under the RCF. Freescale Semiconductor, Inc. -- http://www.freescale.com/-- once Motorola's Semiconductor Products Sector, is one of the oldest and most diverse makers of microchips in the world. It produces many different kinds of chips for use in automobiles, computers, industrial equipment, wireless communications and networking equipment, and other applications. The company's global client roster includes such blue-chip companies as Alcatel-Lucent, Bosch, Cisco Systems, Fujitsu, Hewlett-Packard, QUALCOMM, and Siemens, as well as former parent Motorola. Freescale nets about half of its sales from the Asia/Pacific region. The Blackstone Group, The Carlyle Group, Permira Advisers, and TPG Capital own the company. FRONTENAC BANK: Weiss Gives Mo. Bank Very Weak E- Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Frontenac Bank based in Earth City, Mo. 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 June 30, 2010, the institution's balance sheet showed $425.5 million in assets. G. KLAPPENBACH: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: G. Jorge Klappenbach 23600 El Toro Rd, D308 Lake Forest, CA 92630 Bankruptcy Case No.: 10-23403 Chapter 11 Petition Date: September 22, 2010 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Arthur F. Stockton, Esq. STOCKTON LAW OFFICES 8655 E Via De Ventura Ste G200 Scottsdale, AZ 85258 Tel: (866) 682-8776 Fax: (866) 207-4082 E-mail: art@stocktonlawoffices.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-23403.pdf GANNETT CO: Moody's Gives Stable Outlook; Retains 'Ba1' Rating -------------------------------------------------------------- Moody's Investors Service changed Gannett Co, Inc.'s rating outlook to stable from negative and assigned Baa3 ratings to the company's proposed $500 million guaranteed senior unsecured notes due 2015 and 2018 following the company's announcement of the bond offerings and amendment and extension of its revolving credit facilities. Gannett's Ba1 Corporate Family Rating, Ba1 Probability of Default Rating and SGL-2 speculative-grade liquidity rating are not affected. Loss given default assessments were updated to incorporate the effect of the refinancing and revolver commitment reduction. Assignments: Issuer: Gannett Co., Inc. -- Senior Unsecured Guaranteed Bonds (Due 2015), Assigned Baa3, LGD3 - 34% -- Senior Unsecured Guarantees Bonds, (Due 2018), Assigned Baa3, LGD3 - 34% LGD Updates: Issuer: Gannett Co., Inc. -- Senior Unsecured Bank Credit Facilities (Revolver and Term Loan), Changed to LGD3 - 34% from LGD3 - 36% (no change to Baa3 rating) -- Senior Unsecured Guaranteed Bonds (Due 2014, 2015, 2016 and 2017), Changed to LGD3 - 34% from LGD3 - 36% (no change to Baa3 rating) -- Senior Unsecured Unguaranteed Bonds (Due 2011 and 2012), Changed to LGD5 - 86% from LGD5 - 87% (no change to Ba2 rating) Outlook Actions: Issuer: Gannett Co., Inc. -- Outlook, Changed To Stable From Negative The change to a stable rating outlook reflects Moody's view that the proposed transactions meaningfully reduce refinancing risk over the intermediate term as Gannett plans to utilize the proceeds to reduce its term loan and revolver borrowings, and extend the expiration date on $1.14 billion of its revolving credit commitments to September 2014 from March 2012. Gannett has traditionally utilized a high proportion of shorter-term debt, but is taking steps to term out maturities and reduce the amount falling due in any one year. Moody's believes a longer and more laddered maturity profile diminishes annual debt repayment needs, better matches the tenor of Gannett's assets and is more manageable within cash, projected free cash flow, and unused revolver capacity. Moody's expects Gannett's efforts to monetize its content in a variety of non-print channels and reinvest through acquisitions will partially mitigate declines in its newspaper business. This coupled with continued debt reduction should maintain debt-to- EBITDA leverage (approximately 2.8x LTM 6/27/10 incorporating Moody's standard adjustments) in a mid to high 2x range over the next 12-24 months. Moody's does not expect the increase in cash interest costs associated with the refinancing to materially reduce Gannett's free cash flow. The reduction in the revolver commitment to $1.63 billion from $2.75 billion also does not meaningfully weaken Gannett's liquidity as it is balanced by a reduction in revolver drawdowns, the more laddered maturity profile, and the commitment extension. Moody's anticipates Gannett will maintain in excess of $300 million of unused revolver capacity over the next two years. Gannett's material domestic subsidiaries provide unconditional senior unsecured guarantees on the proposed notes, which is identical to the guarantees provided to Gannett's bank credit facilities and its $760 million of notes maturing from 2014-2017. The proposed notes have covenants, including limitation on liens and change of control provisions, that are substantially the same as the 2014-2017 notes. The guaranteed debt remains structurally senior to the $740 million of remaining unguaranteed notes with respect to material domestic subsidiaries (approximately 70% of consolidated revenue). A refinancing of the June 2011 notes ($433 million face value outstanding) with cash flow or guaranteed debt (including revolver borrowings) would reduce the amount of unguaranteed debt that is structurally junior to the guaranteed notes and credit facilities. Moody's believes that retirement of the 2011 notes in such a manner could cause the rating on Gannett's guaranteed debt -- including the proposed bonds -- to decline to Ba1 from Baa3. The last rating action on Gannett was July 29, 2010, when Moody's upgraded the Speculative Grade Liquidity Rating to SGL-2 from SGL- 3. Gannett, headquartered in McLean, Virginia, is a diversified local newspaper and broadcast operator that also has ownership interests in a number of online ventures including a majority stake in CareerBuilder. Revenue for the LTM ended June 27, 2010 is approximately $5.4 billion factoring in recent divestitures. GENERAL CHEMICAL: Moody's Assigns 'B1' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service assigned ratings to General Chemical Holding Company, a specialty chemical manufacturer, for its recapitalization. GCHC was assigned a B1 Corporate Family Rating. The existing ratings of GenTek Holding, LLC, are affirmed. The proposed rating outlook is stable. Ratings Rationale In October 2009, GenTek Inc.was acquired by ASP GT Holding Corp., a wholly-owned subsidiary of investment funds managed by American Securities LLC, a private equity firm. GCHC has proposed a refinancing of the existing Credit Facilities with a new $30 million, 4-year, senior secured revolver and $425 million, 5- year, senior secured term loan. The proceeds of which will be used to 1) refinance the Company's existing credit facilities, 2) fund a $150 million distribution to GCHC shareholders, and 3) pay related fees and expenses. GCHC's ratings and outlook are subject to review of the final documentation of the financing and closing of the transaction as described. Ratings Assigned: -- General Chemical Holding Company Corporate Family Rating -- B1 -- Probability of Default Rating -- B1 -- General Chemical Corporation -- $30 million Sr Sec Revolver due 2014 -- B1 (LGD3, 44%) -- $425 million Sr Sec Term Loan B due 2015 - -- B1 (LGD3, 44%) Ratings Affirmed GenTek Holding, LLC* -- $30 million Sr Sec Revolver due 2013 -- B1 (LGD3, 42%)* -- $325 million Sr Sec Term Loan B due 2014 -- B1 (LGD3, 42%)* * these ratings will be withdrawn upon completion of the recapitalization GCHC's BI CFR is weakly positioned in the B1 category and reflects significant debt leverage, a relatively small revenue base relative to adjusted debt balances (revenues were $392 million for the LTM period ending August 30, 2010), negative tangible net worth and reduced asset profile in its restructured operations. Debt, when adjusted for Moody's standard adjustments, (including unfunded pensions of $71 million and capitalized rents of $10 million) is about $506 million, assuming no borrowings under GCHC's revolver, a material increase over the $390 million of adjusted debt when it was initially acquired. At this level of debt proforma estimated leverage for 2010 would be about 3.7 times up from 3.1 times. In 2009 GCHC benefited from a decrease in raw material costs while a portion of revenues were contractually set at prices negotiated when raw material prices were high. As these contracts have been renegotiated in 2010, EBITDA has dropped to more normalized levels and absent debt reduction leverage in 2011 would likely increase. While GCHC has a small business profile, the rating reflects the less cyclical nature of the company's water treatment revenue base, improved financial performance in recent years, and free cash flow generation used for debt reduction. In addition, the rating recognizes the potential benefits from a number of restructuring and cost-cutting initiatives that the company has undertaken, as well as the prospect of reduced levels of capital spending that should aid in the generation of free cash flow for debt reduction. GCHC's B1 CFR also takes into consideration the sponsor's initial publicly stated focus on debt reduction, a business strategy less focused on driving market share growth and more on improving free cash flow with proceeds to be used for de-levering. While some debt reduction occurred since October 2009, this transaction suggests a need for a renewed focus on debt reduction. The rating outlook for GCHC is stable. Factors that could have negative rating implications include a failure to maintain historical margins as raw material prices decrease and deterioration in its key end-market conditions. Factors that could have positive rating implications include a substantial improvement in financial performance and meaningful permanent debt reductions. GCHC, after a business segment restructuring of GenTek Inc.'s assets, is a company that operates in three business segments. The largest segment, with some 73% of revenues (for the LTM period ending August 31, 2010), is the water treatment segment. This segment provides inorganic coagulants for water treatment applications to customers that include municipalities and industrial users for primarily paper making applications. The municipal customers supply agreements are often structured with one year terms based on sealed bids; while, the Industrial agreements are negotiated at varying lengths. Moody's project revenues from continuing operations for the year ending December 31, 2010, will approach $400 million and EBITDA will be well above $100 million. The B1 rating on the senior secured revolver and term loan B reflects their dominant position in the company's debt structure, relative proximity to the chemical operating assets, being issued from GenTek Holding, LLC, and benefits of the collateral package. The facility will be secured by a first priority lien on the capital stock as well as all domestic assets of the company and its subsidiaries, and will be guaranteed on a senior secured basis by all current and future domestic subsidiaries. GCHC is also expected to guarantee the credit facilities. GLIMCHER REALTY: Moody's Gives Stable Outlook; Affirms 'B2' Rating ------------------------------------------------------------------ Moody's Investors Service revised the rating outlook for Glimcher Realty Trust to stable from negative. The REIT's B2 preferred rating was affirmed. According to the rating agency, the revised outlook reflects an improved liquidity position as well as better prospects for the company's growth and credit profile. According to Moody's, Glimcher's ability to access capital and stabilize its liquidity position were instrumental in its improved rating outlook. The issuer has tapped the common equity, preferred equity and CMBS markets. It has also raised capital through asset contributions to joint ventures. In addition, it was able to negotiate a longer term for its credit facility, although this was in exchange for a smaller commitment and mandatory pay-downs. Importantly, the company has no major debt maturities remaining this year. Finally, Glimcher's malls exhibit good quality and average occupancy is solid at nearly 93%. Nonetheless, Glimcher's credit metrics remain well below investment grade. Effective leverage (debt + preferred equity / gross assets) has improved to 71.4% as of 2Q10 from 76.4% as of 2Q09 and net debt / EBITDA measured 8.7x compared to 9.6x respectively, however leverage remains among the highest of the retail REITs rated by Moody's. Secured debt is also high, limiting financial flexibility, at 58% of gross assets. Fixed charge coverage is low at 1.4x, or 1.2x including principal amortization. Moody's would likely upgrade Glimcher's rating should it reduce leverage metrics below 8.5x net debt / EBITDA and effective leverage below 65% of gross assets, as well as achieve fixed charge coverage of 1.7x or better. Conversely, Moody's would likely downgrade Glimcher's rating should the REIT's fixed charge coverage fall below current levels, effective leverage reach 80% of gross assets or net debt / EBITDA rise over 10x. This rating was affirmed with a stable outlook: * Glimcher Realty Trust -- B2 preferred rating. Moody's most recent rating activity with respect to Glimcher was on September 18, 2009 when the rating agency lowered the preferred equity rating for Glimcher Realty Trust to B2 from B1 and maintained its negative rating outlook. Glimcher Realty Trust is a real estate investment trust based in Columbus, Ohio which owns, manages, acquires and develops malls, which include enclosed regional malls and open-air lifestyle centers as well as community centers. Glimcher(R) is a registered trademark of Glimcher Realty Trust. GRAY TV: Bank Debt Trades at 4% 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 95.63 cents-on- the-dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.56 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 215 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. GREAT EASTERN: Weiss Gives Fla. Bank Very Weak E+ Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Great Eastern Bank of Florida based in Miami, Fla. 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 June 30, 2010, the institution's balance sheet showed $65.9 million in assets. GROVE STREET: Committee Taps Benesch Friedlander as its Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 case of Grove Street Realty Urban Renewal, LLC, asks the U.S. Bankruptcy Court for the District of New Jersey for permission to employ Benesch, Friedlander, Coplan & Aronoff LLP, as its counsel. Benesch will, among other things: -- advice the Committee of its rights, powers and duties in the Chapter 11 case of the Debtor; -- attend all Committee meetings; and -- represent the Committee's interest in all negotiations and discussions with counsel for the Debtor. The hourly rates of Benesch's personnel are: Raymond H. Lemisch, partner $595 Scott B. Lepene, associate $290 Elizabeth Hein, paralegal $230 To the best of the Committee's knowledge, Benesch is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Raymond H. Lemisch, Esq. BENESCH, FRIEDLANDER, COPLAN & ARONOFF LLP 222 Delaware Avenue, Suite 801 Wilmington, DE 19801 Tel: (302) 442-7010 Fax: (302) 442-7012 About Grove Street Sewell, New Jersey-based Grove Street Realty Urban Renewal, LLC, owns certain parcels of real property at 370 Grove Street in the Township of West Deptford, County of Gloucester, State of New Jersey, commonly known as RiverWinds Cove Apartments. The land consists of improvements generally consisting of two buildings containing in the aggregate approximately 215,832 square feet of Class A residential apartment space, comprised of approximately 200 units, and having approximately 259 parking spaces. The Company filed for Chapter 11 bankruptcy protection on July 1, 2010 (Bankr. D.N.J. Case No. 10-30427). Albert A. Ciardi, III, Esq., at Ciardi Ciardi & Astin, P.C., assists the Debtor in its restructuring effort. The Company estimated its assets and debts HASTINGS STATE: Weiss Gives Neb. Bank Very Weak E- Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Hastings State Bank based in Hastings, Neb. 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 June 30, 2010, the institution's balance sheet showed $142.1 million in assets. HAVEN TRUST BANK: Closed; First Southern Bank Assumes All Deposits ------------------------------------------------------------------ Haven Trust Bank Florida of Ponte Vedra Beach, Fla., was closed on Friday, September 24, 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 First Southern Bank of Boca Raton, Fla., to assume all of the deposits of Haven Trust Bank Florida. The two branches of Haven Trust Bank Florida will reopen during normal business hours as branches of First Southern Bank. Depositors of Haven Trust Bank Florida will automatically become depositors of First Southern Bank. 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 Haven Trust Bank Florida should continue to use their existing branch until they receive notice from First Southern Bank that it has completed systems changes to allow other First Southern Bank branches to process their accounts as well. As of June 30, 2010, Haven Trust Bank Florida had around $148.6 million in total assets and $133.6 million in total deposits. First Southern Bank did not pay the FDIC a premium for the deposits of Haven Trust Bank Florida. In addition to assuming all of the deposits of the failed bank, First Southern Bank agreed to purchase essentially all of the assets. The FDIC and First Southern Bank entered into a loss-share transaction on $127.3 million of Haven Trust Bank Florida's assets. First Southern Bank 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 1-800-430-6165. Interested parties also can visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/haventrust_fl.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $31.9 million. Compared to other alternatives, First Southern Bank's acquisition was the least costly resolution for the FDIC's DIF. Haven Trust Bank Florida is the 126th FDIC-insured institution to fail in the nation this year, and the twenty-fourth in Florida. The last FDIC-insured institution closed in the state was Horizon Bank, Bradenton, on September 10, 2010. HAWAIIAN TELCOM: PUC Approves Plan of Reorganization ---------------------------------------------------- Hawaiian Telcom disclosed that the Hawaii Public Utilities Commission has approved its Plan of Reorganization. With the regulatory approval process now completed, the Company will emerge from bankruptcy with a strong and stable financial position. The Company will finalize agreements and documents which are necessary to exit Chapter 11. The Company will complete this process and emerge within thirty days. "We are extremely pleased with the PUC's approval today, which concludes the regulatory approval process. Our Plan of Reorganization creates a business structure which allows us to grow and flourish. In the very near future, we will be announcing and unveiling exciting new plans. We will continue our focus on our customers and develop dynamic and innovative products and services to meet their ever changing needs" said Eric Yeaman, Hawaiian Telcom's president and CEO. "Hawaiian Telcom has served the people and businesses of Hawaii for more than 125 years and we look forward to beginning an exciting new chapter in our history." Hawaiian Telcom filed for Chapter 11 Bankruptcy protection in December 2008. In June 2009, the Company filed a Plan of Reorganization that reduced its debt from $1.15 billion to $300 million. The United States Bankruptcy Court for the District of Hawaii in Honolulu orally confirmed the Plan in November 2009 and issued its written confirmation Order on December 30, 2009. About Hawaiian Telcom Based in Honolulu, Hawaii, Hawaiian Telcom Communications, Inc. -- http://www.hawaiiantel.com/-- operates a telecommunications company, which offers an array of telecommunications products and services including local and long distance service, high-speed Internet, wireless services, and print directory and Internet directory services. The Company and seven of its affiliates filed for Chapter 11 protection on December 1, 2008 (Bankr. D. Del. Lead Case No. 08-13086). As reported by the TCR on December 30, 2008, Judge Peter Walsh of the U.S. Bankruptcy Court for the District of Delaware approved the transfer of the Chapter 11 cases to the U.S. Bankruptcy Court for the District of Hawaii before Judge Lloyd King (Bankr. D. Hawaii Lead Case No. 08-02005). Richard M. Cieri, Esq., Paul M. Basta, Esq., and Christopher J. Marcus, Esq., at Kirkland & Ellis LLP, represent the Debtors in their restructuring efforts. The Debtors proposed Lazard Freres & Co. LLC as investment banker; Zolfo Cooper Management LLC as business advisor; Deloitte & Touche LLP as independent auditors; and Kurztman Carson Consultants LLC as notice and claims agent. An official committee of unsecured creditors has been appointed and is represented by Christopher J. Muzzi, Esq., at Moseley Biehl Tsugawa Lau & Muzzi LLC, in Honolulu, Hawaii. When the Debtors filed for protection from their creditors, they disclosed total assets of $1,352,000,000 and total debts of $1,269,000,000 as of September 30, 2008. Bankruptcy Judge Lloyd King entered on December 30, 2009, an order confirming a plan of reorganization for Hawaiian Telcom. HEALTHSPRING INC: Moody's Assigns 'Ba3' Rating on Senior Debt ------------------------------------------------------------- Moody's Investors Service has assigned Ba3 senior secured debt ratings to HealthSpring, Inc.'s two new term loans totaling $400 million. The proceeds from these loans, along with cash on hand and an additional $100 million draw down on an existing revolving credit facility will be used to fund HealthSpring's recently announced agreement to acquire Bravo Health, Inc. The targeted completion date for the acquisition is on or before the end of 2010, pending regulatory approval. The outlook on the ratings is stable. These ratings were assigned with a stable outlook: * HealthSpring, Inc. -- $150 million new term loan A: senior secured debt rating at Ba3; $250 million term loan B: senior secured debt rating at Ba3. Ratings Rationale Moody's had previously affirmed HealthSpring's ratings on August 27, 2010, after the announcement of the acquisition. While HealthSpring will increase its outstanding debt by $500 million to finance the acquisition, its leverage metrics (Debt to Capital and Debt to EBITDA) are expected to remain consistent with the current rating level. In addition, the rating agency noted that the acquisition is expected to provide HealthSpring a larger membership base, providing opportunities for operating efficiencies in offering its Medicare Advantage products. HealthSpring, Inc., is headquartered in Nashville, Tennessee. For the first six months of 2010 total revenue was $1.5 billion with Medicare Advantage membership (excluding Part D stand alone) of approximately 197,400. As of June 30, 2010, the company reported shareholders' equity of approximately $1.0 billion. Moody's insurance financial strength ratings are opinions about the ability of insurance companies to punctually pay senior policyholder claims and obligations. HERBST GAMING: Bank Debt Trades at 45% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Herbst Gaming, Inc., is a borrower traded in the secondary market at 55.35 cents- on-the-dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.82 percentage points from the previous week, The Journal relates. The Company pays 187.5 basis points above LIBOR to borrow under the facility, which matures on December 8, 2013. Moody's has withdrawn its rating, while Standard & Poor's does not assign a rating, on the bank debt. The loan is one of the biggest gainers and losers among 215 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 April 12, 2010, Standard & Poor's withdrew its ratings on Las Vegas-based Herbst Gaming Inc. at the company's request. Herbst filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in Nevada on March 22, 2009. The Bankruptcy Court issued an order on January 22, 2010, confirming the company's amended joint plan of reorganization. Although the plan became effective February 5, 2010, it will not be fully implemented until the substantial consummation date; this will not occur until certain conditions, including approval of gaming authorities in Nevada, Missouri, and Iowa have been satisfied. About Herbst Gaming Headquartered in Reno, Nevada, Herbst Gaming, Inc. -- http://www.herbstgaming.com/-- is a diversified gaming company. The Company and its subsidiaries focus on two business lines, slot route operations and casino operations. The Company's route operations involves the exclusive installation and, as of September 30, 2009, operation of around 6,300 slot machines in non-casino locations, such as grocery stores, drug stores, convenience stores, bars and restaurants. The casino operations consist of 16 casinos located in Nevada, Iowa and Missouri. The Company and 17 of its affiliates filed for Chapter 11 protection on March 22, 2009 (Bankr. D. Nev. Lead Case No. 09- 50752). Thomas H. Fell, Esq., and Gerald M. Gordon, Esq., at Gordon Silver, represent the Debtors in their restructuring efforts. Herbst Gaming had $919.1 million in total assets; and $33.5 million in total liabilities not subject to compromise and $1.24 billion in liabilities subject to compromise, resulting in $361.0 million in stockholders' deficiency as of March 31, 2009. At December 31, 2009, Herbst Gaming, Inc., had $612.8 million in total assets and $1.232 billion in total liabilities. Cash and cash equivalents were $32.6 million at December 31, 2009. HERITAGE FIRST: Weiss Gives Ga. Bank Very Weak E Rating ------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Heritage First Bank based in Rome, Ga. 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 June 30, 2010, the institution's balance sheet showed $116 million in assets. HERITAGE CONSOLIDATED: Asks for OK of Plan Support Pact ------------------------------------------------------- Heritage Consolidated LLC, et al., ask the U.S. Bankruptcy Court for the Northern District of Texas to approve the plan support agreement, sale procedures and bid protections in connection with sale of assets. Under the plan of reorganization, the Debtors propose to, among other things, effectuate the sale and transfer of assets under the purchase and sale agreement dated as of September 7, 2010, by and among Permian Atlantis LLC, Permian Phoenix LLC and the Debtors subject to higher and better offers. A copy of the agreement is available for free at: http://bankrupt.com/misc/HERITAGE_CONSOLIDATED_apa.pdf Under the Purchase and Sale Agreement, the Permian Entities agree to serve as the stalking horse bidder with respect to certain assets and to purchase those assets free and clear of any and all liens, claims, rights, interests, and encumbrances except as otherwise provided under the Plan. Under the Purchase and Sale Agreement, the Permian Entities generally agree to assume substantial claims of CIT Capital and the secured lender and to satisfy substantial claims of Heritage Standard Corporation under its joint operating agreements. If the qualified bid is determined to be the highest and best bid and the bid provides for the consummation of the sale through a stand-alone sale hearing, the Plan may be withdrawn upon the closing of the sale. If the sale doesn't close or if the Plan doesn't go effective, then, at the option of CIT Capital, the Debtors must pursue the transaction under a back-up purchase and sale agreement for non-Section 6 assets by and among the Permian Entities and the Debtors on terms similar to those set forth in the Purchase and Sale Agreement and for consideration including the assumption or other satisfaction of approximately $12 million of the lender secured claim and one-quarter of the DIP claim, and the payment of up to $3.56 million in satisfaction of all claims under the Non-Section 6 JOAs. In connection with the Plan, Disclosure Statement, and Purchase and Sale Agreement, the Debtors, the Permian Entities, CIT Capital, Cross Canyon and Michael B. Wisenbaker executed the Plan Support Agreement dated as of September 14, 2010, under which those parties agreed to, among other things, support the sale and confirmation of the Plan. A copy of the agreement is available for free at: http://bankrupt.com/misc/HERITAGE_CONSOLIDATED_plansupportpact.pdf The Debtors request authority to pay the Permian Entities $800,000 plus reimbursement of actual and reasonable out-of-pocket expenses of no more than $400,000 if the conditions set forth in the sale procedures are satisfied. A copy of the procedures is available for free at: http://bankrupt.com/misc/HERITAGE_CONSOLIDATED_saleprocedures.pdf The Debtors propose that the Break-Up Fee constitute an administrative expense claim against any Debtor. The Break-Up Fee is approximately 3% of the consideration to be received by Debtors under the Purchase and Sale Agreement. The Debtors request that, at the confirmation hearing or sale hearing, the Court will consider approval of the Back-Up Purchase and Sale Agreement which, at the election of CIT Capital, may be effectuated without further court order as (a) a primary transaction in the event that the sale is denied or the sale is not approved on or before December 13, 2010; or (b) a back-up or secondary transaction under the Back-Up Bidders section of the Sale Procedures in the event that the Sale is approved but does not close on or before December 28, 2010. CIT Capital is represented by Vinson & Elkins LLP. About Heritage Consolidated Heritage Consolidated LLC filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 10-36484) on September 14, 2010, in Dallas, Texas. Its affiliate, Heritage Standard Corporation, also filed for Chapter 11 (Bankr. N.D. Tex. Case No. 10-36485). The Debtors each listed assets and debts of $10 million to $50 million. Kevin D. McCullough, Esq., in Dallas, Texas, serves as counsel to the Debtors. HHI HOLDINGS: Moody's Affirms Corporate Family Rating at 'B2' ------------------------------------------------------------- Moody's Investors Service affirmed the Corporate Family and Probability of Default Ratings of HHI Holdings, LLC, at B2, following the company's announcement of increasing its senior secured term loan facility to $227.5 million from $197 million. In a related action the rating on the senior secured term loan was affirmed at B3. The rating outlook remains stable. HHI plans to use the $30 million of proceeds from the increase in the senior secured term loan along with approximately $13 million of funding under the asset based revolving credit facility, and cash on hand, to fund an additional $50 million special dividend distribution to the company's shareholders (including the company's sponsor, KPS Capital Partners) and pay related fees and expenses. The total distribution to company's shareholders remains consistent with Moody's initial expectation in Moody's initial rating in February 2010. The affirmation of HHI's B2 Corporate Family Rating reflects Moody's view that while the company's leverage following the incremental shareholder distribution increases, it remains strong for the assigned ratings, and the company's overall risk profile remains unchanged. HHI's performance during the first half of 2010 has outperformed Moody's expectations. This performance has been supported by continued improvement in North American automotive production through the company's second quarter and successful integration of the acquired businesses. The CFR continues to embody the company's modest size, high regional exposure to North America, and high customer concentrations to the Detroit-3 (63% of revenues). The stable ratings outlook continues to incorporate Moody's expectation that HHI will continue to benefit from recovering industry conditions over the near-term resulting in operating performance sufficient to support the increased term loan. HHI is anticipated to have good liquidity over the near-term supported by a $100 million asset based revolving credit facility and expected free cash flow generation. Cash balances are expected to be modest following the dividend transaction. The $100 million asset based revolving credit facility (unrated by Moody's) is expected have nominal amounts of funding following the shareholder dividend. Moody's believes the facility will remain largely unused, given the expected strong operating margins leading to the likely generation of positive free cash flow over the next twelve months, inclusive of small amounts of required amortization under the term loan. Moody's notes that the company's current assets permit access to the full revolving credit facility. Financial covenant cushions are expected to support adequate headroom for access to the revolver's availability over the near-term. Alternate liquidity is limited as essentially all of the company's assets secure the credit facilities. The rating and/or outlook could improve if HHI were to demonstrate a continuation of its record of successful integration of recent acquisitions, maintenance of its strong niche market position, and revenue participation in the industry's recovery. Further customer and industry diversification could also result in positive ratings momentum. The outlook or rating could be lowered if North American automotive production levels do not recover as anticipated, resulting in substantially weaker profitability or a deterioration in liquidity. If operations were to weaken such that debt to EBITDA were to increase over 4.5 times or free cash flow generation was not realized, the company's rating and/or outlook could be lowered. These ratings were affirmed: -- Corporate Family Rating, B2; -- Probability of Default, B2; -- B3 (LGD4, 59%), for the $227.5 million senior secured term loan The last rating action was on March 12, 2010, when the B2 Corporate Family Rating was affirmed. HHI Holdings, LLC, headquartered in Royal Oak, Michigan, is a full service supplier of highly engineered metal forgings and machined components, wheel bearings, and powdered metal engine and transmission components for automotive and industrial customers. Operations are conducted through three subsidiaries: HHI Forging Holdings, LLC; Bearing Holdings, LLC, and Cloyes Gear and Products, Inc. HIGHLAND COMMUNITY: Weiss Gives Ill. Bank Very Weak E Rating ------------------------------------------------------------ Weiss Ratings has assigned its "very weak" E rating to Highland Community Bank based in Chicago, Ill. 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 June 30, 2010, the institution's balance sheet showed $119 million in assets. HILDA GONZALEZ: Case Summary & 15 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Hilda B. Pino Gonzalez aka BELKYS PINO Urb. Las Colinas B-58 Guaynabo, PR 00969 Bankruptcy Case No.: 10-08767 Chapter 11 Petition Date: September 22, 2010 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Carmen D. Conde Torres, Esq. 254 San Jose Street, 5th Floor San Juan, PR 00901-1523 Tel: (787) 729-2900 Fax: (787) 729-2203 E-mail: notices@condelaw.com Scheduled Assets: $785,441 Scheduled Debts: $1,382,230 A list of the Debtor's 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb10-08767.pdf HILEX POLY: Moody's Assigns 'B3' Corporate Family Rating -------------------------------------------------------- Moody's Investors Service assigned a B3 corporate family rating to Hilex Poly Co. LLC with a stable ratings outlook. Moody's also rated assigned a B3 rating to the new $160 million senior secured second lien term loan facility. The proceeds of the new issuance will be used to refinance outstanding debt and pay a dividend to shareholders. Moody's took this action: * Assigned Corporate Family rating, B3 * Assigned Probability of Default rating, B3 * Assigned $160 million senior secured term loan facility due 2016, B3 (LGD 4, 57%) The ratings outlook is stable. Ratings Rationale The B3 Corporate Family Rating reflects Hilex's narrow operating margins due to the largely commoditized product line, the fragmented industry and high customer concentration. Approximately 94% of the company's sales are plastic t-shirt bags. Top 10 customers generate approximately 60% of revenue and Wal- Mart is the largest customer. The rating is also constrained by the company's small size, lack of pricing power, short history of operating improvements and new management and ownership post bankruptcy. Strengths in the company's profile include its leading position in the industry, long standing customer relationships with well- established companies. Between 70%-75% of Hilex's sales stem from economically resistant food and drug retailers. The company also benefits from completed restructuring and cost cutting initiatives, improved contract structure with raw material cost pass-through provisions, and new and renewed anti-dumping tariffs on Asian imports. Approximately 72% of top 20 customers have monthly pass-throughs for resin, while the rest have quarterly pass-throughs. Hilex also owns a recycling plant which helps source recycled material and reduces the cost of that material to the company. What Could Change the Rating -- Up The ratings could be upgraded if Hilex demonstrates an ability to sustain the recent improvement in credit metrics. An upgrade would also be contingent upon the maintenance of adequate liquidity and stability in the operating and competitive environment. Specifically, the ratings could be upgraded if the EBIT margin increases to the high single digits, EBIT to Gross Interest Expense increases above 1.3 times and Debt to EBITDA remains below 5.7 times. What Could Change the Rating -- Down The ratings or the outlook could be revised downward if liquidity or operating performance decline or there is a deterioration in the operating and competitive environment. The ratings could also be downgraded if there is significant debt financed acquisition or another dividend recapitalization. Specifically, the ratings could be downgraded if FCF to Debt falls below 3%, Debt to EBITDA increases above 6.5 times and the EBIT margin falls below 3.5%. HILEX POLY: S&P Assigns Preliminary Corporate Credit Rating at 'B' ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it assigned its 'B' preliminary corporate credit rating to plastic bag producer Hilex Poly Co. LLC. The outlook is stable. S&P also assigned a 'B' preliminary issue-level rating and a '3' preliminary recovery rating to the company's proposed $160 million first-lien secured term loan, based on preliminary terms and conditions. These ratings indicate S&P's expectation that term loan lenders would experience meaningful (50% to 70%) recovery in a payment default scenario. Proceeds from the $160 million term loan will be used to repay existing debt, fund a dividend to shareholders, and for ongoing working capital purposes. As part of the financing plan, the company is also placing an unrated $25 million asset-based revolving credit facility. "The preliminary ratings on Hilex reflect a vulnerable business position in a niche segment for plastic bags and film products used mainly in high-volume grocery stores, and an aggressive financial profile," said Standard & Poor's credit analyst Liley Mehta. Business risks include a narrow product mix, heavy customer concentration, and the threat of imports and legislative actions banning the use of plastic bags in certain states. In addition, a shifting consumer preference toward paper and reusable bags is an increasing risk over the long term. These risk factors are partly offset by the company's favorable market share, competitive advantages from the relatively large scale of operations, in-house recycling capabilities, effective raw material pass through provisions, and an improved cost position as a result of restructuring actions completed in the past few years. HOME FEDERAL: Weiss Gives Fla. Bank Very Weak E- Rating ------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Home Federal Bank of Hollywood based in Hallandale Beach, Fla. 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 June 30, 2010, the institution's balance sheet showed $82.1 million in assets. HOSIAN AZIZIAN: Golden Security Bank Has $250,000 Secured Claim --------------------------------------------------------------- The Hon. Alan Jaroslovsky held the second amended chapter 11 plan of Hosian and Fatemeh Azizian will be confirmed if amended to provide that Golden Security Bank will have a secured claim of $250,000 and will be paid interest at the rate of 8.75%. Judge Jaroslovsky said the Azizians' Second Amended Plan meets all the requirements of Sec. 1129(a) of the Bankruptcy Code except Sec. 1129(a)(8) because the Class 10 claimant, Golden Security Bank, has rejected the plan. The Plan calls for the Bank to retain its lien on the gas station premises to the extent it is secured. It is to receive monthly payments of principal and interest at the rate of 7%, amortized over a 30-year period and all due an payable ten years after confirmation. The Bank objects that the debtors undervalue its security and that the interest rate is too low. The Azizians' expert values the gas station at $200,000 to $250,000. The Bank's expert values the gas station at $880,000. The court finds that the value of the gas station is $250,000. A copy of the Court's opinion is available at: http://www.leagle.com/unsecure/page.htm?shortname=inbco20100922598 Based in Belvedere Tiburon, California, Hosain Azizian and Fatemeh H. Azizian own and operate a small gas station and convenience store in Vallejo, California. Prior to bankruptcy, their business suffered due to re-routing of the local highway resulting in more difficult access by motorists. The Azizian filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 09-13181) on September 29, 2009. David N. Chandler, Esq., in Santa Rosa, California, serves as bankruptcy counsel. According to the schedules, the Joint Debtors had $1,768,845 in assets and $4,116,891 in liabilities. HP DISTRIBUTION: Auxiers Suit Remanded to State Court ----------------------------------------------------- The Hon. Robert E. Nugent of the U.S. Bankruptcy Court for the District of Kansas granted the motion by James and Barbara Auxier to remand an adversary proceeding against XTRA Lease L.L.C. to the Circuit Court of Platte County, Missouri. The Auxiers sued XTRA in February 2010 for damages Mr. Auxier sustained when he fell from a semi-tractor trailer leased by XTRA to HP Distribution, Inc. The Auxiers demanded a jury trial. HP has previously asserted in a separate declaratory action that its relationship with XTRA should be recharacterized as a security interest instead of a true lease. As a result of HP taking that position, XTRA removed the State Case, first to the U.S. Bankruptcy Court for the Western District of Missouri which, in turn, transferred the resulting adversary proceeding to the Kansas Bankruptcy Court. XTRA claims that because the ownership of the trailer may be in dispute and because HP is obligated under the "lease" to indemnify XTRA for the Auxiers' damages, the State Case is closely related to the bankruptcy case and is a case over which the Kansas Court has jurisdiction. The Auxiers contend that the Kansas Court lacks subject matter jurisdiction because the State Case is not "related to" HP's bankruptcy case and moreover, even if there were "related to" jurisdiction, the Kansas Court is required to exercise mandatory abstention. On August 31, 2010, HP filed a motion for approval of a compromise of the Lease Adversary between it and XTRA that would require HP to assume XTRA's lease and dismiss the declaratory action. The September 21 objection deadline to the intended compromise has passed without an objection being filed and the Kansas Court will enter an appropriate Order approving the compromise of the Lease Adversary. "With the apparent agreement that XTRA's relationship with HP is that of a lessor under the pending compromise of the Lease Adversary, the Court can conclude that XTRA owns the subject trailer on which Auxier was allegedly injured. XTRA is a Missouri entity and Auxier a Missouri domiciliary. There is no diversity of citizenship and the only basis for this proceeding being in federal court is this bankruptcy case," Judge Nugent held. "Assuming arguendo that the Court has related to jurisdiction over the State Case, there is no reason why this Court should not abstain from hearing this non-core proceeding and many reasons why it should: in the absence of the parties' consent, this Court simply cannot try the jury trial demanded by Auxier. Moreover, the Court is satisfied that the State Case can be timely adjudicated in the Circuit Court of Platte County where it was commenced and that its proceeding forward there will not adversely affect the administration of HP's bankruptcy case," Judge Nugent said. A copy of the Kansas Court's order is available at: http://www.leagle.com/unsecure/page.htm?shortname=inbco20100922602 Hitchin Post Steak Co. is a decade-old meat processor based in Kansas City, Kansas. Hitchin Post and HP Distribution, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. Kans. Lead Case No. 09-12308) on July 21, 2009. Chief Judge Robert E. Nugent presides over the case. Mark J. Lazzo, Esq., in Wichita, Kansas, serves as bankruptcy counsel. Hitchin estimated under $50,000 in assets and $1 million to $10 million in debts. IMPERIAL CAPITAL: Opposes FDIC's $48 Million Capital Demand ----------------------------------------------------------- Imperial Capital Bancorp Inc. is protesting a Federal Deposit Insurance Corp.-imposed $48 million capital requirement the bank said would force it into Chapter 7, Bankruptcy Law360 reports. Imperial argued it never agreed to the capital maintenance claim the FDIC wants to impose on it and that the FDIC's attempts to quash its objection fail, according to Law360. About Imperial Capital La Jolla, California-based Imperial Capital Bancorp, Inc., filed for Chapter 11 bankruptcy protection on December 18, 2009 (Bankr. S.D. Calif. Case No. 09-19431). Gregory K. Jones, Esq., at Stutman, Treister & Glatt, P.C., assists the Company in its restructuring effort. The Company estimated $10 million to $50 million in assets and up to $100 million in debts in its Chapter 11 petition. INNKEEPERS USA: Midland Wants Cash Use Order Reconsidered --------------------------------------------------------- Midland Loan Services, Inc., asks the U.S. Bankruptcy Court to reconsider its final order authorizing Innkeepers USA Trust and its units to use their lenders' cash collateral entered on September 2, 2010. Lenard Parkins, Esq., at Haynes and Boone, LLP, in New York, argues that the Cash Collateral Order includes two provisions that should be reconsidered: (a) a "Carve Out" of $5.5 million that would be a reduction in the collateral of secured creditors like Midland; and (b) paragraph 6(c) of the Cash Collateral Order that indicates that the provisions of Section 507(b) of the U.S. Bankruptcy Code regarding claims arising for the failure of adequate protection does not apply in the bankruptcy cases. Mr. Parkins argues that the two provisions are improper, and should be excised from the Cash Collateral Order. He contends that the Carve Out, as it might be applied to Midland and its collateral, should be excised because the Debtors have not satisfied their burden to justify its amount, to justify its usage, to show Midland's consent or to prove that there is any adequate protection for the funds used to pay estate professional fees without Midland's consent. The language in Paragraph 6(c) would impair the application of Section 507(b) by precluding certain property of the estate from being available to satisfy claims, Mr. Parkins asserts. He insists that the provision of the Cash Collateral Order that purports to earmark, isolate or exempt certain assets from being used to satisfy Section 507(b) claims conflicts with other provisions of the Cash Collateral order, is without any legal underpinning, and should likewise be excised from the Cash Collateral Order. About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and a number of affilaites filed for Chapter 11 on July 19, 2010 (Bankr. S.D.N.Y. Case No. 10-13800). Attorneys at Kirkland & Ellis LLP, serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. The petition estimated assets and debts of more than $1 billion as of the bankruptcy filing. In 2009, Innkeepers' consolidated revenues were approximately $292 million and adjusted EBITDA were approximately $85 million. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred approximately $1.29 billion of secured debt. Bankruptcy Creditors' Service, Inc., publishes Innkeepers USA Bankruptcy News. The newsletter tracks the chapter 11 restructuring proceedings commenced by Innkeepers USA Trust and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). INNKEEPERS USA: Proposes to Assume Marriott Assurance Agreement --------------------------------------------------------------- Innkeepers USA Trust and its units seek the Court's authority to assume an agreement for adequate assurance of completion of certain property improvement programs (PIPs) and assumption of agreements, dated June 25, 2010, between the Debtors and Marriott International, Inc. The Adequate Assurance Agreement extends the Debtors' deadlines to comply with certain property improvement plans required under applicable franchise agreements with Marriott. Previously, Marriott had issued notices of default with respect to 23 out of the Debtors' 44 franchise agreements with Marriott relating to the Debtors' failure to perform certain PIP obligations. After the Debtors filed the Chapter 11 cases, a dispute between the Debtors and Marriott arose over the treatment of a franchise agreement for one of the Debtors' hotels located in Troy, Michigan, which was not covered by the Adequate Assurance Agreement. The parties subsequently filed a sealed stipulation to settle Marriott's motion for limited modification of the automatic stay. In consideration for the provisions of the stipulation, the Debtors agreed to seek authority from the Court to assume the Adequate Assurance Agreement, which provides that, for so long as the Debtors are in compliance with the parties' PIP completion schedule, Marriott will: (a) forbear from exercising its remedies under its franchise agreements with the Debtors arising out of or in connection with its default letters, as defined in the Adequate Assurance Agreement; and (b) forbear from seeking relief from the automatic stay to exercise those remedies. In addition, Marriott agreed to consent to the Debtors' assumption of (i) those defaulted franchise agreements, excluding the Troy Central Franchise Agreement, if and when the Debtors complete the PIP for the particular Marriott hotel, and (ii) all Marriott franchise agreements, both defaulted and non-defaulted franchise agreements, again excluding the Troy Central Franchise Agreement, if the Debtors comply with the PIP Completion Schedule as of the time the Debtors file a disclosure statement in the Chapter 11 Cases. About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and a number of affilaites filed for Chapter 11 on July 19, 2010 (Bankr. S.D.N.Y. Case No. 10-13800). Attorneys at Kirkland & Ellis LLP, serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. The petition estimated assets and debts of more than $1 billion as of the bankruptcy filing. In 2009, Innkeepers' consolidated revenues were approximately $292 million and adjusted EBITDA were approximately $85 million. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred approximately $1.29 billion of secured debt. Bankruptcy Creditors' Service, Inc., publishes Innkeepers USA Bankruptcy News. The newsletter tracks the chapter 11 restructuring proceedings commenced by Innkeepers USA Trust and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). INTEGRITY FIRST: Weiss Gives Wisc. Bank Very Weak E Rating ---------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Integrity First Bank based in Wausau, Wisc. 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 June 30, 2010, the institution's balance sheet showed $119.4 million in assets. KENDALL STATE: Weiss Gives Kan. Bank Very Weak E+ Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Kendall State Bank based in Valley Falls, Kan. 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 June 30, 2010, the institution's balance sheet showed $35.5 million in assets. KENNETH ANDERSON: Reorganization Case Transferred to Utah District ------------------------------------------------------------------ The Hon. Thomas C. Holman of the U.S. Bankruptcy Court for the Eastern District of California entered an order transferring the Chapter 11 case of Kenneth Roderick Anderson to the U.S. Bankruptcy Court for the District of Utah. Creditors Beatrice M. Lowney, John J. Lowney, Annette A. Lee, Dwendon M. Lee sought for the dismissal or for transfer of the Debtor's case. Hurricane, Utah-based Kenneth Roderick Anderson -- dba Pah Tempe Hot Springs Resort,Zion VRC Zip Tour LLC, The Roderick Family Trust, and Kolob Mountain Ranch Resort -- filed for Chapter 11 protection on August 18, 2010 (Bankr. D. Utah Case No. 10-41789). The case was subsequently transferred to California (Bankr. C.D. Calif. Case No. 10-31252). Helga A. White, Esq., who has an office in Auburn, California, assists the Debtor in his restructuring effort. According to his schedules, the Debtor disclosed $36,297,305 in assets and $5,979,064 in liabilities as of the Petition Date. KENNETH HALE: No Fees for U.S. Trustee from Loan Transfer --------------------------------------------------------- WestLaw reports that a chapter 11 debtor-in-possession had no interest in, or control over, a postpetition lender's decision to purchase and accept the assignment of prepetition loans secured by the debtor's real property and no interest in, or control over, the money used by the lender to acquire the loans. Therefore, the inter-creditor transfer of debt was not a "disbursement" upon which the United States Trustee was entitled to collect quarterly fees, even if the resulting debt restructuring was a part of a larger agreement negotiated with the debtor, and even if the restructuring was done on behalf of and for the debtor's benefit. In re Hale, --- B.R. ----, 2010 WL 3554720 (Bankr. E.D. Cal.) (Lee, J.). Kenneth R. Hale operated a farming enterprise known as Double H Farms and filed a chapter 12 petition (Bankr. E.D. Calif. Case No. 09-13995) on May 1, 2009, after a lender sued in state court. For eligibility reasons, the case was converted to chapter 11 on May 6, 2009. Thereafter, the Debtor continued to oversee the farming operation in his capacity as a debtor-in-possession. The Debtor confirmed his chapter 11 plan on June 25, 2010. KENNETH JAMES EGLI: E.D. Wash. Ct. Confirms Amended Plan -------------------------------------------------------- The Hon. Frank L. Kurtz on September 22 confirmed the Amended Plan of Reorganization filed July 7, by debtors Kenneth James & Leslie Anne Egli. The Court held that confirmation of the Plan is not likely to be followed by the liquidation, or the need for further financial reorganization of the Debtors. Creditors were given Notice of Confirmation and no objections were made, or if made, have been resolved. A copy of the Confirmation Order is available at: http://www.leagle.com/unsecure/page.htm?shortname=inbco20100922617 Based in Kennewick, Washington, Kenneth James and Leslie Anne Egli -- dba Ken and Leslie Egli Family, LLC, La Piel 2 LLC dba Dermacare of Tri-Cities, and fdba La Piel 1, LCC -- filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wash. Case No. 09- 06143) on November 2, 2009. Dan O'Rourke, Esq., at Southwell & O'Rourke, in Spokane, Washington, serves as bankruptcy counsel. According to the schedules, the Joint Debtors had assets of $4,506,727, and debts of $1,383,594 as of the petition date. KENNETH STEVENSON: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Kenneth L. Stevenson dba T & K Enterprises T & K Auto Sales Inmate No.: 227409A Yuma County Adult Detention Facilty YUMA, AZ 85364 Bankruptcy Case No.: 10-30556 Chapter 11 Petition Date: September 23, 2010 Court: U.S. Bankruptcy Court District of Arizona (Yuma) Judge: James M. Marlar Debtor's Counsel: Robert M. Cook, Esq. LAW OFFICES OF ROBERT M. COOK PLLC 219 W. Second Street Yuma, AZ 85364 Tel: (928) 782-7771 Fax: (928) 782-7778 E-mail: robertmcook@yahoo.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-30556.pdf LANDAMERICA FINANCIAL: Severance Pay Earned on Termination Date --------------------------------------------------------------- Addressing an issue of apparent first impression for the court, WestLaw reports that a Virginia bankruptcy court has ruled that a liquidating trustee's method for calculating the portion of the severance claims of the Chapter 11 debtors' former employees entitled to priority treatment under 11 U.S.C. Sec. 507(a)(4), which prorated the severance pay over the entire period of a claimant's employment and allowed only the amount that would be apportioned to the 180 days before the petition date to be given priority treatment, was inconsistent with the Bankruptcy Code. Severance pay is "earned," for priority purposes, on the date of an employee's termination, the court reasoned, agreeing with the approach followed in the Second Circuit and noting that this is recognized to be the minority approach. In re LandAmerica Financial Group, Inc., --- B.R. ----, 2010 WL 2803808 (Bankr. E.D. Va.). About LandAmerica Financial LandAmerica Financial Group, Inc., provides real estate transaction services with offices nationwide and a vast network of active agents. LandAmerica and its affiliates operate through approximately 700 offices and a network of more than 10,000 active agents throughout the world, including Mexico, Canada, the Caribbean, Latin America, Europe, and Asia. LandAmerica Financial Group and its affiliate LandAmerica 1031 Exchange Services, Inc. filed for Chapter 11 protection Nov. 26, 2008 (Bankr. E.D. Va. Lead Case No. 08-35994). Attorneys at Willkie Farr & Gallagher LLP and McGuireWoods LLP serve as co- counsel. Zolfo Cooper is the restructuring advisor. Epiq Bankruptcy Solutions serves as claims and notice agent. Attorneys at Akin Gump Strauss Hauer & Feld LLP and Tavenner & Beran, PLC, serve as counsel to the Creditors Committee of 1031 Exchange. Bingham McCutchen LLP and LeClair Ryan serve as counsel to the Creditors Committee of LFG. In its bankruptcy petition, LFG reported total assets of $3,325,100,000, and total debts of $2,839,800,000 as of Sept. 30, 2008. On March 6, 2009, affiliate LandAmerica Assessment Corporation, aka National Assessment Corporation, filed its own petition for Chapter 11 relief. Affiliate LandAmerica Title Company filed for for Chapter 11 relief on March 27, 2009. LandAmerica Credit Services, Inc., filed for Chapter 11 in July 2009. LandAmerica filed a Joint Plan of Liquidation on Sept. 9, 2009. The Bankruptcy Court confirmed that plan on Nov. 23, 2009, and the plan took effect on Dec. 7, 2009. LEGACY BANK: Weiss Gives Wisc. Bank Very Weak E- Rating ------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Legacy Bank based in Milwaukee, Wisc. 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 June 30, 2010, the institution's balance sheet showed $216.2 million in assets. LEHMAN BROTHERS: LBIE Extends Proofs of Debt Deadline ----------------------------------------------------- On 16 June 2010, the Joint Administrators of Lehman Brothers International Europe announced that they would be testing the feasibility of the Consensual Approach to the resolution of LBIE's unsecured creditor claims. LBIE also informed claimants that if they wished to be considered for the Consensual Approach, they would need to submit a proof of debt. The expectation at the time was that, if the Consensual Approach was formally launched later this year, a creditor would need to submit a proof of debt before September 17, 2010, to be considered for participation. LBIE has since made significant progress in engaging with creditors and the Joint Administrators have been greatly encouraged by the extent of positive interest in the Consensual Approach. Over the last few weeks, LBIE has both solicited and received feedback from counterparties regarding the proposed Consensual Approach. A consistent request from many counterparties has been to extend the deadline of September 17, 2010, in particular given the complexity of many creditors' positions. Accordingly, the Joint Administrators have agreed, in conjunction with the Unsecured Creditors' Resolution Working Group, a working group which includes members of the creditors' committee, that the September 17, 2010 deadline for proof submission will be extended. The Joint Administrators continue to develop the Consensual Approach. In consultation with the UCRWG, they are currently considering an appropriate date to set as a revised deadline. The Joint Administrators are also reviewing feedback from counterparties to assess whether any other refinements may be desirable in order to proceed. The Joint Administrators will communicate further developments regarding the Consensual Approach in their 4th Progress Report, including an update on the period of extension that will be allowed for submission of proofs, unless that has been separately communicated in the intervening period. The 4th Progress Report is due to be published on October 14, 2010. In the meantime, LBIE's counterparties should continue to finalize their submission of proofs of debt as soon as possible, as these will be required in order to comply with the revised timetable, when announced. Anyone who has questions regarding this update may contact the Counterparty Communications and Management team at unsecuredcreditors@lbia-eu.com About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: PwC to Appeal UK Court Ruling on Payout -------------------------------------------------------- PricewaterhouseCoopers LLP is set to appeal against a United Kingdom court ruling that foiled plans to return around $2 billion of cash to secured creditors, according to a September 12, 2010 report by Express.co.uk. Last month, the U.K. Court of Appeals handed down a ruling that hedge funds and other unsecured creditors of Lehman Brothers International Europe should also share the cash. Fund managers and Lehman account holders would get reduced payouts from PWC if it failed to get the CA ruling overturned, Express reported. The LBIE administrator has yet to make an official announcement but it will reportedly file the appeal before the September 23 deadline and take its case to the Supreme Court, according to the report. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Wants to Reject Revenue Bond Contracts ------------------------------------------------------- In connection with the issuance of revenue bonds, many state and local governments or their agencies establish a debt service fund to accumulate funds to pay debt service on the Revenue Bonds and a reserve fund to serve as a source of backup for payment of their debt service obligations on the Revenue Bonds. Revenue Bonds are generally issued pursuant to an indenture or similar agreement between the issuer and a trustee. The Trustee holds and administers the Debt Service Fund and the Reserve Fund and uses the assets of the Debt Service Fund to pay scheduled interest and principal payments on the Revenue Bonds and the assets of the Reserve Fund to pay scheduled interest and principal payments on the Revenue Bonds when sufficient funds are not otherwise available to the issuer. The Trustee typically invests the funds in a Debt Service Fund or a Reserve Fund in certain eligible investments. The eligible investments are restricted to qualifying securities, which generally are high quality securities with short terms to maturity. Under the debt service fund agreements and the reserve fund agreements, generally, Lehman Brothers Special Financing, Inc., agreed to sell Qualified Securities to the Trustee on scheduled dates throughout the term of an issuance of Revenue Bonds at a price that generates a specific fixed rate of return, thereby enabling the issuer and the Trustee to meet credit quality and liquidity requirements of the Debt Service Fund or Reserve Fund without exposure to decreases in interest rates. LBSF avers that it has been diligently reviewing its executory contracts to identify contracts that are appropriate for rejection, and has determined that the Contracts, a list of which is available for free at http://bankrupt.com/misc/lehm11201.pdf are not its receivables. Because the counterparties to the Contracts have not terminated the Contracts, LBSF is not able to fix its liabilities under the Contracts unless a Counterparty defaults or until the Contracts mature in accordance with their terms, which in most cases will not occur for a long period of time, the Debtors tell the Court. Accordingly, the Debtors seek Court for authority to permit LBSF to reject the Contracts. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEONARD ROSS: Section 341(a) Meeting Scheduled for Nov. 8 --------------------------------------------------------- The U.S. Trustee for Region 18 will convene a meeting of Leonard M. Ross' creditors on November 8, 2010, at 1:15 p.m. The meeting will be held at 725 S Figueroa Street, Room 2610, Los Angeles, CA 90017. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Beverly Hills, California-based Leonard M. Ross, aka Trustee of Leonard M. Ross Revocable Trust, filed for Chapter 11 bankruptcy protection on September 15, 2010 (Bankr. C.D. Calif. Case No. 10- 49358). Robert M. Yaspan, Esq., at the Law Offices of Robert M. Yaspan, assists the Debtor in his restructuring effort. The Debtor estimated his assets at $100 million to $500 million and debts at $50 million to $100 million as of the Petition Date. Affiliates Colony Lodging, Inc. (Bankr. C.D. Calif. Case No. 10- 60909), Rossco Plaza, Inc. (Bankr. C.D. Calif. Case No. 10-60917), LJR Properties, Ltd. (Bankr. C.D. Calif. Case No. 10-60919), Monte Nido Estates, LLC (Bankr. C.D. Calif. Case No. 10-60920), WM Properties, Ltd. (Bankr. C.D. Calif. Case No. 10-60918), and Rossco Holdings, Inc. (Bankr. C.D. Calif. Case No. 10-60953) filed separate Chapter 11 petitions. LIBERTY MEDIA: Share Repurchase Won't Affect Moody's 'B1' Rating ---------------------------------------------------------------- Moody's Investors Service said Liberty Media LLC's B1 Corporate Family Rating, SGL-1 speculative-grade liquidity rating and the review for possible downgrade of Liberty's B1 senior unsecured note ratings are not affected by Liberty Media Corporation's (Liberty's parent) authorization to repurchase up to an additional $500 million shares of Liberty Capital and announcement that it intends to transfer/reattribute certain assets and liabilities to Liberty Starz from LCAPA. Moody's last rating on action Liberty occurred on June 21, 2010, when the company's B1 senior unsecured bond ratings and Ba3 Probability of Default Rating were placed on review for possible downgrade following the company's announcement of plans to spin- off the Starz and LCAPA tracking stock groups. Liberty's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (iii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside Liberty's core industry and believes Liberty's ratings are comparable to those of other issuers with similar credit risk. Liberty, headquartered in Englewood, Colorado, is a holding company that owns and operates a broad range of electronic retailing, communications, and entertainment businesses and also owns equity and debt positions in wide variety of technology, media and telecommunications companies. Annual revenue is approximately $10 billion. LIBERTY BANK: Weiss Gives Utah Bank Very Weak E Rating ------------------------------------------------------ Weiss Ratings has assigned its "very weak" E rating to Liberty Bank based in Salt Lake City, Utah 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 June 30, 2010, the institution's balance sheet showed $13.8 million in assets. LOEHMANN'S CAPITAL: Seeks to Extend Debt Maturity to 2014 --------------------------------------------------------- Loehmann's Capital Corp. on Friday said it is commencing a private offer to exchange its outstanding 12% Senior Secured Class A Notes due 2011, Senior Secured Class A Floating Rate Notes due 2011 and 13% Senior Secured Class B Notes due 2011 for 12% Senior Secured Class A Notes due 2014, Senior Secured Class A Floating Rate Notes due 2014 and 13% Senior Secured Class B Notes due 2014. In conjunction with the exchange offer, Loehmann's is also soliciting consents to (i) amend the indenture governing the old notes, along with other related documents, to add the new series of notes, (ii) increase the priority lien cap under the lease agreement and intercreditor agreement to which Loehmann's is a party, and (iii) waive certain provisions of the indenture, lease agreement, intercreditor agreement and related documents insofar as such provisions would otherwise prevent or restrict certain proposed actions by Loehmann's Operating Co. Holders tendering old notes for exchange will be deemed to consent to the proposed amendments and waivers, and holders may not deliver consents in the consent solicitation without tendering their old notes for exchange. The exchange offer and consent solicitation will expire at 11:59 p.m., New York City time, on October 27, 2010. Eligible holders that validly tender their old notes and validly consent to the proposed amendments and waivers at or prior to 11:59 p.m., New York City time, on October 13, 2010, will receive $1,000 principal amount of new notes of the same class for each $1,000 principal amount of their old notes that are accepted for exchange. Eligible holders that validly tender their old notes and validly consent to the proposed amendments and waivers after the early tender date but at or prior to the expiration date will receive $970 principal amount of new notes of the same class for each $1,000 principal amount of their old notes that are accepted for exchange. Loehmann's has entered into agreements with holders of approximately 34% of the old notes pursuant to which those holders have agreed to tender their old notes in the offer and consent to the amendments and waivers. The consummation of the exchange offer and consent solicitation will be subject to customary conditions, including the receipt of valid and unrevoked tenders of at least a majority in principal amount of the outstanding old notes, in the case of the consent solicitation, and at least 97% in principal amount of the outstanding old notes, in the case of the exchange offer. Subject to applicable law, the company may terminate or amend, modify or waive the terms of the exchange offer and consent solicitation. The new notes have not been and will not be registered under the Securities Act of 1933, as amended, or any state securities laws, may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements, and will therefore be subject to substantial restrictions on transfer. The exchange offer and consent solicitation are only being made, and copies of the exchange offer documents will only be made available to, holders of old notes who have certified to Loehmann's in an eligibility letter as to certain matters, including their status as "qualified institutional buyers," as that term is defined under the Securities Act, "qualified purchasers," as that term is defined under the Investment Company Act of 1940 and "disqualified Non-U.S. Holders," as that term is defined in the eligibility letter. Copies of the eligibility letter are available to qualified holders through the information agent, Global Bondholder Services Corporation, Attn: Corporate Actions, at 65 Broadway, Suite 404, New York, New York 10006, telephone number: 212-430-3774. A confidential offering memorandum, dated today, will be distributed to qualified holders. As reported by the Troubled Company Reporter on June 18, 2010, Bill Rochelle at Bloomberg News said Loehmann's Inc. hired three financial advisory firms with experience in turnarounds and bankruptcy reorganizations. The firms are AlixPartners LLP, Perella Weinberg Partners and Clear Thinking Group LLC, according to people with knowledge of the situation. Reuters on April 6 reported that Loehmann's said it was fulfilling its financial obligations in response to new questions about its ability to keep its operations afloat. According to Reuters, Loehmann's denied a report in The New York Post that it missed a $6 million interest payment on its debt the previous week. But a source briefed on the situation said the store chain had delayed payments to CIT Group Inc. in order to make the interest payment. Reuters also reported that the NY Post, citing sources close to the situation, also said suppliers to the company were holding back shipments due to its deteriorating financial situation. A source told Reuters that CIT had suspended its factoring approvals for Loehmann's because the company had slowed payments to vendors and to CIT due to the interest payment. It was not immediately clear if CIT had reinstated its factoring approval, Reuters said. Loehmann's received a speculative-grade "CC" corporate credit rating from Standard & Poor's. The ratings agency said in March 2010, "we believe that current cash on hand and availability under the company's revolver may not be sufficient to cover operating needs over the near term." Loehmann's is a discount retailer with more than 60 stores. The Bronx, New York-based company is owned indirectly by Istithmar PJSC, an investment firm owned by the government of Dubai. Loehmann's emerged from a 14-month Chapter 11 reorganization with a confirmed plan in September 2000. At the time, it operated 44 stores in 17 states. LUCKY CHASE: Court Approves FDIC-Led Auction on November 2 ---------------------------------------------------------- The Hon. Robert A. Mark of the U.S. Bankruptcy Court for the Southern District of Florida authorized Kenneth A. Welt, Chapter 11 trustee in the Chapter 11 case of Lucky Chase II, LLC, to sell the Debtor's assets in an auction led by Federal Deposit Insurance Corporation, as receiver for AmTrust Bank. FDIC agreed to purchase the Debtor's assets for $8,762,867, subject to the lien of the Miami-Dade County Tax Collector. The FDIC will advance up to $68,000 in marketing and advertising costs to the trustee's auctioneer, with all advances being added to the FDIC's allowed secured claim. In the event that a bidder other than the FDIC is the successful bidder, the marketing advance will be repaid from the sale proceeds. The property will be sold in its "as is", "where is" condition and with all faults, with no guarantees or warranties express or implied. The trustee scheduled an auction November 2, 2010 at 13841 S.W. 90th Avenue, Miami, Florida. Qualified bids are due October 29 at 5:00 p.m. EDT. The Court will consider the sale of the assets to FDIC or the winning bidder at a hearing on November 3, 2010 at 10:00 a.m. Objections, if any are due 5:00 p.m., two business days prior to the sale hearing. If the FDIC is the successful bidder, the auctioneer will receive a fee of 4% of the ultimate sale price, to be paid by the FDIC within 4 business days following the sale hearing, with 1% of the ultimate sale price to be allocated for the benefit of the Debtor's general unsecured creditors. If a bidder other than the FDIC is the successful bidder, the auctioneer will receive a fee of 5% of the ultimate sale price, to be paid out of the sales proceeds, with 1% of the ultimate sale price to be allocated for the benefit of the Debtor's general unsecured creditors. About Lucky Chase II, LLC Headquartered in Pittsburgh, Pennsylvania, Lucky Chase II, LLC, operates a single-asset, real estate company. The Company filed for Chapter 11 protection on April 29, 2009 (Bankr. S.D. Fla. Case No. 09-18087). Arthur J. Spector, Esq., represents the Debtor in its restructuring effort. The Debtor estimated assets and debts between $10 million and $50 million each. LUCKY CHASE: Trustee May Use Cash to Repair or Modify Property -------------------------------------------------------------- The Hon. Robert A. Mark of the U.S. Bankruptcy Court for the Southern District of Florida, in a tenth interim order, authorized Kenneth A. Welt, Chapter 11 trustee in the Chapter 11 case of Lucky Chase II, LLC, until November 4, 2010, unless superseded by a final order, or extended by further order of this Court. A further hearing on the Trustee's continued use of cash collateral will be convened on November 3 at 10:00 a.m. Federal Deposit Insurance Corporation, as receiver for AmTrust Bank, consents to the trustee's use of cash collateral to pay the ordinary and necessary business expenses of the Debtor, without exceeding 10% of the line item amounts in the budget. To ensure the safety of the conditions on the Debtor's real property, the Trustee may use the cash collateral to pay for the repair, replacement and modification of the Debtor's real property other than in the ordinary course of business. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant AmTrust replacement liens upon all postpetition assets of the Debtor. The Trustee will also maintain all necessary insurance, and obtain additional insurance in an amount as is appropriate for the business in which the Debtor is engaged, naming AmTrust as an additional insured and loss payee with respect thereto. About Lucky Chase II, LLC Headquartered in Pittsburgh, Pennsylvania, Lucky Chase II, LLC, operates a single-asset, real estate company. The Company filed for Chapter 11 protection on April 29, 2009 (Bankr. S.D. Fla. Case No. 09-18087). Arthur J. Spector, Esq., represents the Debtor in its restructuring effort. The Debtor estimated assets and debts between $10 million and $50 million each. LUDO MENSCH: Case Summary & 16 Largest Unsecured Creditors ---------------------------------------------------------- Joint Debtors: Ludo Gust Mensch Lorraine Patricia Mensch 31227 Lobo Canyon Road Agoura Hills, CA 91301 Bankruptcy Case No.: 10-22102 Chapter 11 Petition Date: September 24, 2010 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Maureen Tighe Debtors' Counsel: Michael Jay Berger, Esq. 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212-2929 Tel: (310) 271-6223 Fax: (310) 271-9805 E-mail: michael.berger@bankruptcypower.com Scheduled Assets: $2,115,688 Scheduled Debts: $2,510,488 A list of the Joint Debtors' 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-22102.pdf LYDIAN PRIVATE: Weiss Gives Fla. Bank Very Weak E Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Lydian Private Bank based in Palm Beach, Fla. 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 June 30, 2010, the institution's balance sheet showed $1.9 billion in assets. MAJESTIC STAR: Hearing on End of Plan Exclusivity on Sept. 28 ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will convene a hearing on September 28, 2010, at 10:00 a.m. (Eastern Standard Time), to consider the termination of The Majestic Star Casino, LLC, et al.'s exclusive rights to file and solicit acceptances for the proposed Chapter 11 Plan. The Official Committee of Unsecured Creditors in the Debtors' cases sought for the termination the Debtors' exclusive periods the Debtors decided to propose a plan of reorganization in bad faith, which purportedly settles core restructuring controversies with the Senior Secured Noteholders over the objection of the Committee. The Debtors' Plan encompasses three settlements: the Gaming License Settlement, the Cash Collateral Settlement and the Standing Motion Settlement. The Plan Settlements also purport to resolve critical valuation issues relating to the value of the Debtors' Gaming Licenses and the enterprise value of the Reorganized Debtors. The Committee intends to file under seal the Committee Plan, which will be premised upon the prosecution of the claims and defenses inappropriately compromised in the Plan Settlements. About Majestic Star The Majestic Star Casino, LLC -- aka Majestic Star Casino, aka Majestic Star -- is based in Las Vegas, Nevada. It is a wholly owned subsidiary of Majestic Holdco, LLC, which is a wholly owned subsidiary of Barden Development, Inc. The Company was formed on December 8, 1993, as an Indiana limited liability company to provide gaming and related entertainment to the public. The Company commenced gaming operations in the City of Gary at Buffington Harbor, located in Lake County, Indiana on June 7, 1996. The Company is a multi-jurisdictional gaming company with operations in three states -- Indiana, Mississippi and Colorado. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 09-14136) on November 23, 2009. The Company's affiliates -- The Majestic Star Casino II, Inc., The Majestic Star Casino Capital Corp., Majestic Star Casino Capital Corp. II, Barden Mississippi Gaming, LLC, Barden Colorado Gaming, LLC, Majestic Holdco, LLC, and Majestic Star Holdco, Inc. -- also filed separate Chapter 11 petitions. Kirkland & Ellis LLP is the Debtors' bankruptcy counsel. James E. O'Neill, Esq., Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP are the Debtors' Delaware counsel. Xroads Solutions Group, LLC, is the Debtors' financial advisor, while EPIQ Bankruptcy Solutions LLC are the Debtors' claims and notice agent. The Majestic Star Casino's balance sheet at June 30, 2009, showed total assets of $406.42 million and total liabilities of $749.55 million. When it filed for bankruptcy, the Company estimated up to $500 million in assets and up to $1 billion in debts. MCHENRY SAVINGS: Weiss Gives Ill. Bank Very Weak E Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to McHenry Savings Bank based in McHenry, Ill. 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 June 30, 2010, the institution's balance sheet showed $270.7 million in assets. MCP ONTARIO: Case Summary & 8 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: MCP Ontario Festival LLC 4100 Newport Place Suite 770 Newport Beach, CA 92660 Bankruptcy Case No.: 10-23351 Chapter 11 Petition Date: September 22, 2010 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Cory J. Briggs, Esq. BRIGGS LAW CORPORATION 99 E. "C" St Ste 111 Upland, CA 91786 Tel: (909) 949-7115 Scheduled Assets: $8,126,400 Scheduled Debts: $31,060,521 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-23351.pdf The petition was signed by Ronald L. Meer, manager of Meer MCP Ontario Festival LLC, sole member of Debtor. MEMBERS UNITED: Undercapitalized; Placed in Conservatorship ----------------------------------------------------------- The National Credit Union Administration on Friday assumed control of three undercapitalized corporate credit unions, announced a plan to isolate the impaired assets in the corporate credit union system, and finalized a set of stronger regulations -- key elements in its efforts to resolve the financial challenges facing corporate credit unions without disrupting consumer service. "The steps NCUA has taken [Fri]day represent a comprehensive solution to the problems afflicting the corporate credit union system," said NCUA Chairman Debbie Matz. "Just as important, this plan puts consumers first and ensures that there will be no loss to taxpayers. This plan also provides an orderly transition to a new regulatory regime for corporates. In addition, we are affording local credit unions greater choice in selection of their liquidity and back office provider." The Temporary Corporate Credit Union Share Guarantee Program remains fully in effect for the entire corporate system through December 31, 2012. In addition, NCUA continues to insure credit union and consumer deposits up to $250,000 per account. Setting the plan into motion required conservatorship of three additional corporate credit unions that are not viable: -- Members United Corporate Federal Credit Union of Warrenville, Illinois; -- Southwest Corporate Federal Credit Union of Plano, Texas; and -- Constitution Corporate Federal Credit Union of Wallingford, Connecticut. In March 2009, U.S. Central Corporate Federal Credit Union of Lenexa, Kansas, and Western Corporate Federal Credit Union of San Dimas, California, were also placed into conservatorship. In a conservatorship, NCUA replaces an institution's management and board, operating it in a way that protects taxpayers' and members' interests during its orderly transition and resolution. The plan to address the impaired assets and resolve these troubled institutions involves several interrelated steps: -- Isolating the impaired securities (legacy assets) held by these five corporate credit unions; -- Repackaging the legacy assets into new securities with an NCUA guarantee backed by the unconditional full faith and credit of the United States government; -- Issuing the new securities to investors on the open market; -- Transferring the corporates' still-valuable assets to newly created "bridge banks" that will allow for continued operations; and -- Transitioning operations now under NCUA conservatorship over a target of 24 months to other service providers. NCUA has consulted with the Treasury, Federal Reserve and other federal financial regulators in developing these plans, and will continue to work closely with these agencies to ensure the orderly resolution of conserved corporates, the effective implementation of the steps outlined, and the continued smooth operation of the credit union system. In particular, the life of the Temporary Corporate Credit Union Stabilization Fund has been extended to June 30, 2021, with the concurrence of Treasury Secretary Timothy F. Geithner. This will provide the NCUA Board with important flexibility in mitigating the impact of the annual assessments to credit unions for the costs over this period. It should be noted that the costs will be borne exclusively by the credit union industry, and will not result in any loss to taxpayers. NCUA adopted a new set of regulatory reforms aimed at strengthening the corporate credit union system. The new corporate regulation (NCUA Rules and Regulations, Part 704): -- Implements stronger capital requirements and establishes prompt corrective action measures for corporate credit unions; -- Establishes clear concentration limits on investments that will require corporate credit unions to better diversify their portfolios; -- Improves asset-liability management requirements to avoid liquidity and interest rate risks; and -- Raises governance standards to improve levels of experience and expertise on corporate boards. "NCUA's action to deal with the troubled institutions and the impaired securities on the corporates' books -- together with reforms to the NCUA regulation that governs the corporate system -- will create stronger safeguards for the nation's entire credit union system," said Chairman Matz. "The credit union community has long hoped to see a coordinated, market-based, least-cost solution to the corporate crisis, and we have delivered that [Fri]day." NCUA Board Member Gigi Hyland noted, "The regulatory reforms and plan to resolve the troubled institutions and their impaired assets are key steps to allow the credit union system to move forward. The corporate rule is stronger thanks to the 815 commenters who provided NCUA feedback. And, these actions reflect the key principle that has guided NCUA's efforts -- finding a solution that minimizes, as much as possible, the cost to the credit union system while spreading that cost out over time." NCUA Board Member Michael Fryzel commented that "NCUA, along with the entire credit union industry, has struggled with the corporate problem for over two years. [Fri]day's Board actions culminate months of analysis, review and planning and establish a regulatory framework and viable options that will prevent a reoccurrence of this crisis and give credit unions a choice for the future." Chairman Matz also emphasized that the future of the remainder of the corporate credit union system will be determined by the private sector's judgment, not by any government dictate. "The leaders of the nation's consumer credit unions must make the strategic business decisions about whether to recapitalize some of the remaining, viable corporates, switch to a different corporate, or seek services at some other type of institution," said Chairman Matz. "NCUA is confident that the new framework will enable the choices ahead to be made in the context of strong and safe credit union operations. The credit union industry, and the 90 million consumers it serves, deserve nothing less." * * * The Wall Street Journal's Mark Maremont and Victoria McGrane report that the three credit unions seized last week had a total of $19.67 billion in assets as of July 2010: Assets ------ Members United Corporate Federal Credit Union $8.93 billion Southwest Corporate Federal Credit Union $9.52 billion Constitution Corporate Federal $1.22 billion Credit Union The two credit unions seized in March 2009 had these assets: Assets ------ U.S. Central Corporate Federal Credit Union $34 billion Western Corporate Federal Credit Union $23 billion NCUA is the independent federal agency that regulates, charters and supervises federal credit unions. With the backing of the full faith and credit of the U.S. government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of over 90 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. MERIDIAN PARTNERSHIP: Trustee Can Employ Brokers to Sell Assets --------------------------------------------------------------- Wallace Manfrin at Personal Finance Bulletin reports that a federal bankruptcy judge authorized bankruptcy trustee Mark Calvert to employ brokers to dispose of the assets of Meridian Partnership Management Inc. current under investigation for operating an illegal Ponzi scheme. As part of the order the bankruptcy trustee is seeking to liquidate a 5,400 square-foot home as well as a yacht, which belonged to the owner of the investment firm, Frederick Darren Berg, according the Bulletin. The bankruptcy trustee was appointed to track down and return nearly $211 million in investor funds that are at the center of the investigation. The Company is believed to have attracted approximately 700 investors. "Much of the money was appropriated by Mr. Berg for his personal use including the operation of a luxury bus company," say Mr. Manfrin quotes the bankruptcy trustee as stating. Creditors submitted involuntary Chapter 11 petitions for Meridian Mortgage Investors Fund V, LLC (Bankr W.D. Wash. Case No. 10- 17952), Meridian Mortgage Investors Fund VII, LLC (Bankr W.D. Wash. Case No. 10-17953), Meridian Mortgage Investors Fund VIII, LLC (Bankr W.D. Wash. Case No. 10-17958), and Meridian Mortgage Investors Fund II (Bankr W.D. Wash. Case No. 10-17976). Meridian Partnership Management Inc. and MPM Investor Services, Inc., were also sent by creditors to Chapter 11. Attorneys at Foster Petter PLLC serve as counsel to the Meridian entities. METRO-GOLDWYN-MAYER: Bank Debt Trades at 54% Off ------------------------------------------------ Participations in a syndicated loan under which Metro-Goldwyn- Mayer, Inc., is a borrower traded in the secondary market at 45.61 cents-on-the-dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 2.54 percentage points from the previous week, The Journal relates. The Company pays 275 basis points above LIBOR to borrow under the facility, which matures on April 8, 2012. The debt is not rated by Moody's and Standard & Poor's. The loan is one of the biggest gainers and losers among 215 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. r. About Metro-Goldwyn-Mayer Metro-Goldwyn-Mayer, Inc., is an independent, privately held motion picture, television, home video, and theatrical production and Distribution Company. The Company owns the world's largest library of modern films, comprising approximately 4,000 titles, and over 10,400 episodes of television programming. An investor consortium, comprised of Providence Equity Partners, TPG Capital, Sony Corporation of America, Comcast Corporation, DLJ Merchant Banking Partners and Quadrangle Group, owns MGM. MGM is grappling with $3.7 billion in debt. MGM has received a series of forbearance agreements from its bondholders and lenders, wherein the lenders extended the period during which MGM won't have to pay principal and interest on its bank debt, including a revolving credit facility. The latest forbearance agreement expires October 29. As reported by the Troubled Company Reporter on August 12, 2010, sources told The Wall Street Journal that MGM hopes to file a "prepackaged" bankruptcy sometime in mid-September, when the latest waiver on debt payments expires. J.P. Morgan Chase & Co., a major MGM creditor, is working on providing between $150 million and $200 million in debtor-in-possession financing to steer the studio through bankruptcy, one of the sources told the Journal. MGM tried to sell itself in March 2010 but received low bids. MGM has hired investment bank Moelis & Company and the law firm Skadden, Arps, Slate, Meagher & Flom. In August 2009, it hired the restructuring expert Stephen F. Cooper to help lead the company. MEXICANA AIRLINES: Conciliator, Administrator Appointed ------------------------------------------------------- Mexico's Federal Institute of Business Reorganization Specialists appointed Jose Gerardo Badin Cherit as conciliator in the insolvency proceeding of Compania Mexicana de Aviacion, S.A. de C.V. FIBRS, a branch of the Mexican federal judiciary, appointed Mr. Badin Cherit following an order from the Mexican Court, which approved the airline's petition and moving its case into the "conciliation" or reorganization phase. Mr. Badin Cherit has already accepted his appointment as conciliator, according to court papers filed by Francisco Javier Christlieb Morales, who was recently appointed as the airline's administrator by the Mexican Ministry of Transport and Communications. As administrator, Mr. Morales is tasked to work with the conciliator to effect the restructuring of Mexicana Airlines as the company operates under a "concession title" from the transportation ministry. Both the administrator and the conciliator have affirmed the appointment of Maru Johansen as Mexicana Airlines' foreign representative in the Chapter 15 case the airline filed before the U.S. Bankruptcy Court for the Southern District of New York. They have also agreed that Ms. Johansen will continue serving as the airline's foreign representative. According to Mexicana Airlines, the objective of the Concurso Mercantil -- as insolvency proceedings are referred to in Mexican law -- is to restructure costs and secure financial viability. The decision marked the beginning of the conciliation phase and, pursuant to the procedures stipulated by law and at the proposal of the Department of Communications and Transportation, the judge approved the appointment of Mr. Javier Christlieb Morales as administrator of Mexicana Airlines. Mr. Christlieb Morales assumed his duties on September 8. Mexicana also said that at the behest of the Department of Communications and Transportation, in its capacity as the granting authority, Mr. Gerardo Badin Cherit's appointment as arbitrator was approved by the judge. Mr. Badin Cherit will be responsible for facilitating restructuring agreements between the company and its creditors. About Mexicana Airlines Compania Mexicana de Aviacion or Mexicana Airlines -- http://www.mexicana.com/-- is a privately held airline and a subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana is the oldest commercial carrier in North America. Charles Lindbergh piloted the first trip for Mexicana between Brownsville, Texas, and Mexico City. Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and Mexicana Inter S.A. de C.V. (Mexicana Link). Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's largest airline, filed for bankruptcy in the U.S. and Mexico on August 2, 2010. In the U.S., the company filed in the U.S. Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection (case no. 10-14182), and in Mexico, it filed for the equivalent of Chapter 11. Maru E. Johansen, foreign representative of Compania Mexicana, estimated in the Chapter 15 petition that the company has assets of US$500 million to US$1 billion and debts of more than US$1 billion. William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to Ms. Johansen. Mexicana de Aviacion stated that despite its bankruptcy filing, it expects to continue to operate normally, and that such filings Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines Bankruptcy News. The newsletter tracks the chapter 11 proceedings and the ancillary proceedings undertaken by Compania Mexicana de Aviacion and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MEXICANA AIRLINES: Misses Sept. 15 Payments to Airports ------------------------------------------------------- Mexicana Airlines drew criticism anew from a consortium of airports and airport authorities after it allegedly failed to pay its debt due September 15, 2010, as agreed at the status conference held early this month. The airport group's attorney, Selinda Melnik, Esq., at Edwards Angell Palmer & Dodge LLP, in New York, says Mexicana Airlines has failed to provide any of the protections required other than payment of passenger facility charges and the initial funding of the PFC reserve account which the airline failed to replenish in violation of Federal law. Mexicana Airlines reportedly does not have available funds to pay its debt. Its attorneys have already informed the group that the airline would coordinate with the airport authorities for the turnover of space it uses at the airports next month if it failed to pay its debt by September 30, 2010. The objection drew support from The Greater Orlando Aviation Authority and The Port Authority of New York and New Jersey. About Mexicana Airlines Compania Mexicana de Aviacion or Mexicana Airlines -- http://www.mexicana.com/-- is a privately held airline and a subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana is the oldest commercial carrier in North America. Charles Lindbergh piloted the first trip for Mexicana between Brownsville, Texas, and Mexico City. Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and Mexicana Inter S.A. de C.V. (Mexicana Link). Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's largest airline, filed for bankruptcy in the U.S. and Mexico on August 2, 2010. In the U.S., the company filed in the U.S. Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection (case no. 10-14182), and in Mexico, it filed for the equivalent of Chapter 11. Maru E. Johansen, foreign representative of Compania Mexicana, estimated in the Chapter 15 petition that the company has assets of US$500 million to US$1 billion and debts of more than US$1 billion. William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to Ms. Johansen. Mexicana de Aviacion stated that despite its bankruptcy filing, it expects to continue to operate normally, and that such filings Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines Bankruptcy News. The newsletter tracks the chapter 11 proceedings and the ancillary proceedings undertaken by Compania Mexicana de Aviacion and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MEXICANA AIRLINES: Sept. 29 U.S. Court Hearing on Recognition Plea ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York will hold a hearing on September 29, 2010, to consider the motion for recognition of Mexicana Airlines' insolvency case as a foreign main proceeding. The Bankruptcy Court will also hold a telephone status and scheduling conference on September 27, 2010, to discuss matters to be addressed at the hearing. Anyone who wants to participate in the conference may contact the Bankruptcy Court to make arrangements. The hearing was supposed to take place September 8, 2010, but Mexicana Airlines asked for an adjournment in light of the appointment of the conciliator and administrator in its insolvency case in Mexico. Mexicana Wants Banco Mercantile Objection Overruled Mexicana Airlines asked the U.S. Bankruptcy Court to overrule the objection of Banco Mercantil del Norte S.A., saying the conditions which the bank asked the Bankruptcy Court to impose before granting recognition is "outrageous" and "unsupportable." Banco Mercantil, a secured lender of Mexicana Airlines, earlier complained of a ruling handed down by the Mexican court enjoining the bank from taking any action involving the funds held as collateral in two deposit accounts. It argued that the ruling contradicts the August 18 order issued by the Bankruptcy Court, which excluded the bank from the scope of injunctive protections granted to Mexicana Airlines. The funds serve as collateral for the US$123.6 million that Mexicana Airlines owes to Banco Mercantil under a 2008 credit agreement. Although Banco Mercantile did not question the basis for granting recognition, one of the bank's conditions would require the Bankruptcy Court to sit in judgment of the Mexico Court and of the procedures permitted under the Concurso law, according to William Heuer, Esq., at Duane Morris LLP, in New York. "In sum and substance, [Banco Mercantile] has asked this Bankruptcy Court to partially overrule or render moot an order entered by the Mexico Court providing Mexicana injunctive relief," Mr. Heuer says. He points out that the bank made the request despite the fact that the airline is not asking the Bankruptcy Court to enforce an order of the Mexico Court. "[Banco Mercantile's request has no basis in public policy and is, in and of itself, contrary to any meaningful concept of public policy," Mr. Heuer explains. Mr. Heuer says Banco Mercantile also wants the Bankruptcy Court to grant it "adequate protection" but the bank failed to address basic principles of bankruptcy law concerning claims of and protections provided to secured creditors. According to Mr. Heuer, the stay that was imposed on Banco Mercantile by the Mexico Court in the insolvency proceeding stemmed from a number of actions taken by the bank against the airline and its assets, many of which relate to funds that were on deposit in trust accounts in Mexico. He points out that those assets are beyond the jurisdiction of the Bankruptcy Court and that asking the Bankruptcy Court to compel the airline to provide adequate protection to the bank will undermine the jurisdiction and authority of the Mexico Court. According to Mr. Heuer, Banco Mercantile is also not entitled to adequate protection this early because U.S. judicial power does not prevent the bank from seizing its collateral. He also criticized the bank's assertion that the Mexican law and the procedure employed by the Mexican court are so repugnant as to violate public policy in the U.S. Banco Mercantile Responds Banco Mercantile's lawyer, Paul Hessler, Esq., at Linklaters LLP, in New York, clarifies that the bank is not seeking "true injunctions" against Mexicana Airlines or any action against the Mexican Court. "[Banco Mercantile] simply asks that the Court condition any relief it may grant on [Mexicana Airlines] respecting certain fundamental public policies of the United States," Mr. Hessler says in court papers. Mr. Hessler says the Bankruptcy Court has the "inherent power" to condition the granting of Chapter 15 relief on the airline's agreement not to pursue inconsistent rulings in its insolvency case in light of the public policy requiring the protection of secured creditors and the airline's decision to seek assistance from the Bankruptcy Court. "The Court has the power to deny recognition to [Mexicana Airlines] and necessarily has the ability to take the lesser step of conditioning the granting of such relief on [Mexicana Airlines] taking or refraining from taking certain actions," Mr. Hessler says. According to Mr. Hessler, if the Bankruptcy Court granted the bank's request, Mexicana Airlines would simply be unable to seek the protections of Chapter 15 recognition in the U.S. while simultaneously depriving the bank of its rights on the U.S. properties as a secured creditor. He points out that the airline, however, would remain free to seek whatever relief it chooses with respect to its property and insolvency case in Mexico. Federico Santos Cernuda, a legal director of Banco Mercantil, and Jorge Sepulveda, Esq., a partner at Mexico-based Bufete Garcia Jimeno S.C., filed statements with the Bankruptcy Court in support of the bank's objection. Mr. Cernuda says Banco Mercantil relies on the cash held in the bank accounts to offset or mitigate any potential damages to the bank and that it is not willing to risk its collateral without some form of protection for that collateral. For his part, Mr. Sepulveda says that even if Banco Mercantil were entitled to be treated as a "creditor with collateral," the superior priority of statutorily required labor credits would likely materially reduce the bank's recovery on its collateral in the insolvency case if it prohibited use of those funds. He points out that those labor credits are decided by special administrative courts and not bound by the insolvency case. About Mexicana Airlines Compania Mexicana de Aviacion or Mexicana Airlines -- http://www.mexicana.com/-- is a privately held airline and a subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana is the oldest commercial carrier in North America. Charles Lindbergh piloted the first trip for Mexicana between Brownsville, Texas, and Mexico City. Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and Mexicana Inter S.A. de C.V. (Mexicana Link). Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's largest airline, filed for bankruptcy in the U.S. and Mexico on August 2, 2010. In the U.S., the company filed in the U.S. Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection (case no. 10-14182), and in Mexico, it filed for the equivalent of Chapter 11. Maru E. Johansen, foreign representative of Compania Mexicana, estimated in the Chapter 15 petition that the company has assets of US$500 million to US$1 billion and debts of more than US$1 billion. William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to Ms. Johansen. Mexicana de Aviacion stated that despite its bankruptcy filing, it expects to continue to operate normally, and that such filings Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines Bankruptcy News. The newsletter tracks the chapter 11 proceedings and the ancillary proceedings undertaken by Compania Mexicana de Aviacion and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MICHAEL IRVING: Case Summary & 7 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Michael B. Irving 1325 S. Butler Avenue Compton, CA 90221-5204 Tel: (213) 223-2085 Bankruptcy Case No.: 10-50827 Chapter 11 Petition Date: September 24, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Vincent P. Zurzolo Debtor's Counsel: Aurora Talavera, Esq. THE AURORA LAW GROUP 633 W 5th St 26th Floor, Suite 26072 Los Angeles, CA 90071 Tel: (213) 223-2085 Fax: (213) 596-3737 E-mail: aurora@theauroralawgroup.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's seven largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-50827.pdf MICHAELS STORES: Bank Debt Trades at 4% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Michaels Stores, Inc., is a borrower traded in the secondary market at 95.97 cents- on-the-dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.71 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 215 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. MILACRON INC: Judge Aug Requires Rule 2019 Disclosure ----------------------------------------------------- WestLaw reports that an entity which, through its submissions in a Chapter 11 case, indicated that "[i]t d[id] not represent any creditors other than its members" qualified as an "entity or committee representing more than one creditor," that could be required, pursuant to the plain terms of Bankruptcy Rule 2019, to file a verified statement disclosing, among other things, the names and addresses of creditors that it represented in filing a Gibson motion with the court for leave to commence a cause of action against the debtor's officers and directors. Full disclosure was necessary to permit court to determine whether the entity had a colorable claim that the debtor had unjustifiably refused to bring, as required for it to prevail on its Gibson motion. In re Milacron, Inc., --- B.R. ----, 2010 WL 3604188 (Bankr. S.D. Ohio) (Aug, J.). This dispute arises in the context of a July 16, 2010, motion authorizing certain noteholders to commence and prosecute various causes of action valued at $50 million against certain directors and officers of the Debtor, also known as a "Gibson" motion. In that motion, the movants identified themselves as "Certain Holders of Milacron 11-1/2% Senior Secured Notes issued by MI 2009 Inc. (f/k/a Milacron, Inc.) managed by Avenue Capital Group and DDJ Capital Management LLC." One of the directors and officers, Ronald Brown, filed the motion, requesting that the "nameless movants" comply with Rule 2019. The nameless movants responded with an amended Gibson motion wherein they further identify themselves as being Avenue Special Situations Fund IV, L.P., Avenue Investments, L.P., Avenue CDP Global Opportunites Fund, L.P., Avenue International Master, L.P. and Avenue Special Situations Fund V, L.P. It appears to the Honorable J. Vincent Aug, Jr., that the Avenue Movants are two Delaware foreign limited partnerships, a Delaware limited partnership, a Cayman Islands foreign limited partnership, and a Cayman Islands exempted limited partnership. Judge Aug directs the Avenue Movants to file a verified statement setting forth the data required by Rule 2019(a) by Sept. 29, 2010, and says that, pursuant to Rule 2019(b), the Avenue Movants are prohibited from being heard on any matter in this case until they have complied with this disclosure requirement. About Milacron Inc. Headquartered in Batavia, Ohio, Milacron Inc. (Pink Sheets: MZIAQ) supplies plastics-processing technologies and industrial fluids, with major manufacturing facilities in North America, Europe and Asia. First incorporated in 1884, Milacron also manufactures synthetic water-based industrial fluids used in metalworking applications. The Company and six of its affiliates filed for chapter 11 protection (Bankr. S.D. Ohio Case No. 09-11235) on March 10, 2009. On the same day, the Company filed an ancillary proceeding for reorganization of its Canadian subsidiary under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice in Canada. The petitions include the Company and its U.S. and Canadian subsidiaries and its non-operating Dutch holding company subsidiary only, and do not include any of the Company's operating subsidiaries outside the U.S. and Canada. Kim Martin Lewis, Esq., Tim J. Robinson, Esq., and Patrick D. Burns, Esq., at Dinsmore & Shohl LLP, represent the Debtors in their restructuring efforts. Conway, Del Genio, Gries Co., LLC, is the Debtors' financial advisor. Rothschild Inc. is the Debtors' investment banker and financial advisor. Kurtzman Carson Consultants LLC is the noticing, balloting and disbursing agent for the Debtors. Paul, Hastings, Janofsky & Walker LLP, represents DIP Lender General Electric Capital Corp. Timothy J. Hurley, Esq., and W. Timothy Miller, Esq., at Taft Stettinius & Hollister LLP serve as counsel for the Official Committee of Unsecured Creditors. At September 30, 2008, the Company's balance sheet showed $586.1 million in assets and $648.5 million in debts. On August 21, 2009, the Company completed a sale of substantially all of its assets to Milacron LLC, a company formed by affiliates of Avenue Capital Group, certain funds and accounts managed by DDJ Capital Management LLC and certain other entities that held roughly 93% of the Company's 11.5% Senior Secured Notes. Milacron Inc. asked the Bankruptcy Court to change its name to MI 2009 Inc. following the asset sale. MISSION OAKS: Weiss Gives Calif. Bank Very Weak E- Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Mission Oaks National Bank based in Temecula, Calif. 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 June 30, 2010, the institution's balance sheet showed $187.1 million in assets. MONARCH COMMUNITY: Weiss Gives Mich. Bank Very Weak E- Rating ------------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Monarch Community Bank based in Coldwater, Mich. 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 June 30, 2010, the institution's balance sheet showed $262.8 million in assets. MOREBANK: Weiss Gives Pa. Bank Very Weak E+ Rating -------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Morebank based in Philadelphia, Pa. 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 June 30, 2010, the institution's balance sheet showed $72.3 million in assets. NORTEL NETWORKS: Ericsson Enters Pact to Acquire Switch Business ---------------------------------------------------------------- Ericsson has entered into an asset purchase agreement to acquire Nortel's Multi-Service Switch business. This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the MSS platform for the recently acquired CDMA and GSM units. An important part of the CDMA ecosystem, MSS offers the sale and support of data networks and switching platforms for core networks within the recently acquired wireless and carrier voice divisions. MSS serves a valuable need for a multiplicity of services that the backbone network provides today for our customers. The purchase is structured as an asset purchase at a cash purchase price of US$65 million on a cash and debt free basis, subject to adjustments. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to court approval and customary regulatory approvals. "Today's announcement is further evidence of our commitment to our CDMA portfolio as we continue to strengthen our in-house R&D and services muscle to deliver on the innovation, collaboration and support that our customers have come to expect from us." said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems. Consummation of the transaction is subject to approval by the relevant Bankruptcy Courts and the satisfaction of regulatory and other conditions. SEB Enskilda is acting as Ericsson's sole financial advisor in the transaction. Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices. Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (US$27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- delivers communications capabilities that make the promise of Business Made Simple a reality for the Company's customers. The Company's next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate the barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138). Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. The Nortel Companies related in a press release that Nortel Networks UK Limited and certain subsidiaries of the Nortel group incorporated in the EMEA region have each obtained an administration order from the English High Court of Justice under the Insolvency Act 1986. The applications were made by the EMEA Subsidiaries under the provisions of the European Union's Council Regulation (EC) No. 1346/2000 on Insolvency Proceedings and on the basis that each EMEA Subsidiary's centre of main interests is in England. Under the terms of the orders, representatives of Ernst & Young LLP have been appointed as administrators of each of the EMEA Companies and will continue to manage the EMEA Companies and operate their businesses under the jurisdiction of the English Court and in accordance with the applicable provisions of the Insolvency Act. Several entities, particularly, Nortel Government Solutions Incorporated have material operations and are not part of the bankruptcy proceedings. As of September 30, 2008, Nortel Networks Corp. reported consolidated assets of US$11.6 billion and consolidated liabilities of US$11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of September 30, 2008, NNI had assets of about US$9 billion and liabilities of US$3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about US$4.2 billion of unsecured public debt. Bankruptcy Creditors' Service, Inc., publishes Nortel Networks Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Nortel Networks Corp. and its various affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) NORTH COUNTY BANK: Closed; Whidbey Island Bank Assumes Deposits --------------------------------------------------------------- North County Bank of Arlington, Wash., was closed on Friday, September 24, 2010, by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Whidbey Island Bank of Coupeville, Wash., to assume all of the deposits of North County Bank. The four branches of North County Bank will reopen during normal banking hours as branches of Whidbey Island Bank. Depositors of North County Bank will automatically become depositors of Whidbey Island Bank. 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 North County Bank should continue to use their existing branch until they receive notice from Whidbey Island Bank that it has completed systems changes to allow other Whidbey Island Bank branches to process their accounts as well. As of June 30, 2010, North County Bank had around $288.8 million in total assets and $276.1 million in total deposits. Whidbey Island Bank will pay the FDIC a premium of 2.0 percent to assume all of the deposits of North County Bank. In addition to assuming all of the deposits of the failed bank, Whidbey Island Bank agreed to purchase essentially all of the assets. The FDIC and Whidbey Island Bank entered into a loss-share transaction on $221.9 million of North County Bank's assets. Whidbey Island Bank 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 1-800-508-8289. Interested parties also can visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/northcounty.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $72.8 million. Compared to other alternatives, Whidbey Island Bank's acquisition was the least costly resolution for the FDIC's DIF. North County Bank is the 127th FDIC-insured institution to fail in the nation this year, and the ninth in Washington. The last FDIC-insured institution closed in the state was The Cowlitz Bank, Longview, on July 30, 2010. NUHI METAJ: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Joint Debtors: Nuhi Metaj aka Eric Metaj Meria Metaj fka Meria Stucke 306 McCloud Drive Fort Lee, NJ 07024 Bankruptcy Case No.: 10-39286 Chapter 11 Petition Date: September 22, 2010 Court: U.S. Bankruptcy Court District of New Jersey (Newark) Judge: Donald H. Steckroth Debtors' Counsel: Daniel J. Yablonsky, Esq. YABLONSKY & ASSOCIATES, LLC 1430 Route 23 North Wayne, NJ 07470 Tel: (973) 686-3800 Fax: (973) 686-3801 E-mail: ecfmail@yablaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb10-39286.pdf Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Seas Star Food USA, Inc. 10-47208 07/29/10 NXT ENERGY: Posts C$890,700 Net Loss in June 30 Quarter ------------------------------------------------------- NXT Energy Solutions Inc. reported a net loss of C$890,673 on C$444,958 of revenue for the three months ended June 30, 2010, compared with net income of C$283,005 on C$2.6 million of revenue for the same period of 2009. The Company's balance sheet at June 30, 2010, showed C$3.8 million in total assets, C$650,066 in total liabilities, and stockholders' equity of C$3.1 million. The Company says its ability to continue as a going concern will ultimately be dependent upon its ability to sustain positive cash flow from operations and obtain additional financing. "There is significant doubt about the appropriateness of the use of the going concern assumption because the company has experienced losses in 2008 through to the present, has experienced negative cash flow from operations over these years and management believes working capital as at June 30, 2010, of C$2.5 million is not sufficient to support the company's operations for the next twelve months without additional revenue or capital." A full-text copy of the interim financial statements for the three month period ended June 30, 2010, is available for free at: http://researcharchives.com/t/s?6b91 A full-text copy of the interim Management's Discussion and Analysis of the interim financial statements for the three month period ended June 30, 2010, is available for free at: http://researcharchives.com/t/s?6b92 About NXT Energy Based in Calgary, Canada, NXT Energy Solutions Inc. (TSX: SFD; OTC BB: NSFDF) -- http://www.nxtenergy.com/-- provides airborne survey solutions that enable NXT's clients to focus their exploration decisions concerning land commitments, data acquisition expenditures or prospect prioritization onto the areas with the greatest hydrocarbon potential. Utilizing its proprietary airborne Stress Field Detection ("SFD(R)") survey system, NXT provides a unique survey method that is environmentally noninvasive and unaffected by ground security issues or difficult terrain. Additionally, surveys can generally be conducted year round and are effective both onshore and offshore. NXT NUTRITIONALS: Earns $2.3 Million in June 30 Quarter ------------------------------------------------------- NXT Nutritionals Holdings, Inc. filed its quarterly report on Form 10-Q, reporting net income of $2.3 million on $49,057 of revenue for the three months ended June 30, 2010, compared with a net loss of $1.8 million on $247,891 of revenue for the same period last year. Other income (expenses) increased by approximately $4.1 million to $2.9 million for the three months ended June 30, 2010, as compared to $(1.2 million) during the corresponding three months ended June 30, 2009. Other income and expenses increased dramatically as a result of the fair market accounting associated with embedded derivatives in the 2010 secured convertible note offering. The change in fair value of $4.5 million was primarily attributable to the significant decrease in the Company's per share value as quoted on the Over-the Counter Bulletin Board. The above fair market value increase was offset by a $1.4 million increase in interest expense during the three months ended June 30, 2010, as compared to the comparable three months ended June 30, 2009. This is a result of a significant increase in convertible debt outstanding. The Company's balance sheet at June 30, 2010, showed $4.4 million in total assets, $6.7 million in total liabilities, and a stockholders' deficit of $2.3 million. Berman & Company, P.A., in Boca Raton, Fla., 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 net loss of $24.0 million and net cash used in operations of $2.1 million for 2009; and has a working capital deficit of $1.5 million, and a stockholders' deficit of $3.3 million at December 31, 2009. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b90 About NXT Nutritionals Holyoke, Mass.-based NXT Nutritionals Holdings, Inc. (OTC: NXTH) - - http://www.nxtnutritionals.com/-- through its wholly owned subsidiary NXT Nutritionals, Inc., is engaged in developing and marketing of a proprietary, patent-pending, all-natural sweetener sold under the brand name SUSTA(TM) and other food and beverage products. SUSTA(TM) is being sold as a stand-alone product and it is the common ingredient for all of the Company's products. O L DEVELOPMENT: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: O L Development, LLC 1300 Griffin Road Greenwood, AR 72936 Bankruptcy Case No.: 10-75022 Chapter 11 Petition Date: September 23, 2010 Court: U.S. Bankruptcy Court Western District of Arkansas (Fort Smith) Debtor's Counsel: Derrick Mark Davidson, Esq. DERRICK DAVIDSON, P.A. 3061 N. Market Avenue, Suite 8 Fayetteville, AR 72703 Tel: (479) 935-4100 Fax: (479) 856-6168 E-mail: derrick@davidsonbusinessattorney.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Robert Griffin, manager. Debtor-affiliates that filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Robert and Julia Griffin 10-73471 07/06/10 The Plantation, LLC 10-74742 09/08/10 Oakview Homes, LLC 10-74830 09/14/10 Iron Tree Homes, Inc. 10-74832 09/14/10 Fairview Construction Co. LLC 10-74834 09/14/10 Corinthian Court, LLC 10-74837 09/14/10 O L Frisco, LLC 10-74838 09/14/10 Sabram Estates, LLC 10-74847 09/15/10 Silver Leaf West, LLC 10-74850 09/15/10 Silver Leaf East, LLC 10-74860 09/15/10 Trinity Estates, LLC 10-74858 09/15/10 J & R Development, LLC 10-74885 09/16/10 OLDE PRAIRIE: Plan Provides Sale of Properties to Pay Creditors --------------------------------------------------------------- Olde Prairie Block Owner, LLC, submitted to the U.S. Bankruptcy Court for the Northern District of Illinois a proposed Plan of Reorganization and an explanatory Disclosure Statement. The Debtor will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, the Plan provides for transfer by deed the entire Olde Prairie Property to CenterPoint Properties Trust in a "dirt for debt" transaction and will credit its value against the amount of the Allowed Class 3 Claim. CenterPoint is the holder of a mortgage secured by the Olde Prairie Property, the Lakeside Property, the Parking Lease, the Olde Prairie Lease, the Lakeside Property Parking Lease, the Olde Prairie Office Lease and the MPEA Condemnation Action, and any of its successors and assigns. The Plan also provides for the sale of the Lakeside Property and the Parking Lease. The Debtor expects to procure a commitment for a $4 million debtor-in-possession loan for purposes of paying the administrative expenses of the case, including any adequate protection payments that might be ordered by the Bankruptcy Court. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/OLDEPRAIRE_Plan.pdf The Debtor is represented by: John Ruskusky, Esq. George R. Mesires, Esq. Nile N. Park, Esq. UNGARETTI & HARRIS LLP 3500 Three First National Plaza Chicago, IL 60602 Tel: (312) 977-4400 Fax: (312) 977-4405 E-mail: grmesires@uhlaw.com npark@uhlaw.com About Olde Prairie Block Owner, LLC Chicago, Illinois-based Olde Prairie Block Owner, LLC, owns two adjacent parcels of land just north of McCormick Place. The Company filed for Chapter 11 protection on May 18, 2010 (Bankr. N.D. Ill. Case No. 10-22668). John E. Gierum, Esq., at Gierum & Mantas, assists the Debtor in its restructuring effort. The Company estimated assets at $100 million to $500 million in assets and $10 million to $50 million in liabilities. ONE GEORGE: Weiss Gives Ga. Bank Very Weak E- Rating ---------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to One George Bank based in Atlanta, Ga. 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 June 30, 2010, the institution's balance sheet showed $214.5 million in assets. OPEN SOLUTIONS: Bank Debt Trades at 17% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Open Solutions, Inc., is a borrower traded in the secondary market at 83.15 cents- on-the-dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 1.05 percentage points from the previous week, The Journal relates. The Company pays 212.50 basis points above LIBOR to borrow under the facility. The bank loan matures on January 18, 2014, and carries Moody's B1 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 215 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Glastonbury, Connecticut, Open Solutions, Inc., is a privately-held provider of core data processing and information management software solutions for financial institutions including community banks / thrifts and credit unions. In January 2007, the company was acquired by The Carlyle Group and Providence Equity Partners in a leveraged transaction of roughly $1.4 billion including the assumption of debt. Revenues for the last twelve month period ended September 2008 was $438 million. OSI RESTAURANT: Bank Debt Trades at 9% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which OSI Restaurant Partners, Inc., is a borrower traded in the secondary market at 90.85 cents-on-the-dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.60 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 May 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 215 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. OSI Restaurant Partners, Inc., is the #3 operator of casual-dining spots (behind Darden Restaurants and Brinker International), with more than 1,400 locations in the U.S. and 20 other countries. Its flagship Outback Steakhouse chain boasts more than 950 locations that serve steak, chicken, and seafood in Australian-themed surroundings. OSI also operates the Carrabba's Italian Grill chain, with about 240 locations. Other concepts include Bonefish Grill, Fleming's Prime Steakhouse, and Cheeseburger In Paradise. Most of the restaurants are company owned. A group led by Chairman Chris Sullivan took the company private in 2007. The Company's balance sheet at June 30, 2010, showed $2.34 billion in total assets, $2.450 billion in total liabilities, and a total deficit of $106.2 million. OTC HOLDINGS: Court Grants 60-Day Extension in Schedules Filing --------------------------------------------------------------- The Hon. Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware extended to 60 days, after the commencement date, OTC Holdings Corporation, et al.'s time to file their schedules of assets and liabilities and statement of financial affairs. Omaha, Nebraska-based OTC Holdings Corporation filed for Chapter 11 protection on August 25, 2010 (Bankr. D. Del. Case No. 10- 12636). Affiliates OTC Investors Corporation (Bankr. D. Del. Case No. 10-12637), Oriental Trading Company, Inc. (Bankr. D. Del. Case No. 10-12638), Fun Express, Inc. (Bankr. D. Del. Case No. 10- 12639), and Oriental Trading Marketing, Inc. (Bankr. D. Del. Case No. 10-12640), filed separate Chapter 11 petitions on August 25, 2010. The Debtors disclosed $463 million in total assets and $757 million in total liabilities as of the Petition Date. Richard Hahn, Esq., My Chi To, Esq., Jae-Sun Chung, Esq., Huyue Angela Zhang, Esq., and Jessica Katz, Esq., at Debevoise & Plimpton LLP, assist the Debtors in their restructuring efforts. Joel A. Waite, Esq., and Kenneth J. Enos, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' local counsel. Jefferies & Company, Inc., is the Debtors' financial advisor. Protiviti, Inc., is the Debtors' restructuring consultant. Kurtzman Carson Consultants LLC is the Debtors' claims agent. OTC HOLDINGS: Gets Final Approval to Obtain $40MM DIP Financing --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware, in a final order, authorized OTC Holdings Corporation, et al., to: -- obtain $40 million postpetition financing consisting of up to $33 milion of term loans and u to $6.5 million of revolving loans and letters of credit from JPMorgan Chase Bank, N.A., as administrative agent for itself and a syndicate of lenders; -- use cash collateral of prepetition secured lenders; and -- deem the approximately $1.9 million of outstanding letters of credit issued under the the first lien credit agreement to have been issued under the DIP agreement. The Debtors would use the money to fund their Chapter 11 cases, pay suppliers and other parties. The Debtors are also authorized to use proceeds of initial borrowing under the DIP agreement to pay in full the $2.5 million aggregate principal amount of first priority term loans, plus any accrued and unpaid interest. As reported in the Troubled Company Reporter on September 9, 2010, as of the Petition Date, the Debtors owed the first lien lenders an aggregate principal amount of at least $403,000,000. As of the Petition Date, the Debtors owed the second lien lenders an aggregate principal amount of at least $180,000,000. The DIP facility will mature in February 2011. The Debtors may elect that the DIP Loans comprising each borrowing bear interest at a rate per annum equal to the ABR plus the applicable margin or the Eurodollar rate plus the applicable margin. ABR is the highest of (i) rate of interest publicly announced by JPMorgan as its prime rate in effect at its principal office in New York City, (ii) the federal funds effective rate from time to time plus 0.5%, (iii) the Eurodollar Rate for one- month interest period, plus 1%, and (iv) 3.0%. Applicable Margin means (i) 4.75% in the case of ABR loans and (ii) 5.75% in the case of Eurodollar Loans. Eurodollar Rate means the greater of (i) rate for Eurodollar deposits for a period equal to one, two or three months appearing on Reuters Screen LIBOR01 Page and (ii) 2.0%. The Debtors will pay various commitment, underwriting, arranger and administrative agency fees to the DIP Agent, the arranger and the DIP Lenders, in the aggregate amount of approximately 4% of the aggregate amount of the commitments available under the DIP facilities. The Debtors will pay: (i) a fee calculated at a rate per annum equal to 0.75% on the average daily unused portion of the DIP facilities, payable monthly in arrears; (ii) a fee on all outstanding letters of credit at a per annum rate equal to the Applicable Margin then in effect with respect to Eurodollar loans on the face amount of each letter of credit. The fee will be shared ratably among the DIP Lenders participating in the revolving facility and will be payable in monthly in arrears; and (iii) a fronting fee equal to 0.125% per annum on the face amount of each letter of credit will be payable monthly in arrears to the issuing lender for its own account. Customary administrative, issuance, amendment, payment and negotiation charges will be payable to the issuing lender for its own account. At any time after the occurrence and during the continuance of an event of default, all outstanding DIP Loans will bear interest at 2% above the rate otherwise applicable thereto and all other obligations will bear interest at 2% above the rate applicable to the relevant ABR loans. The DIP obligations will constitute allowed senior administrative expense claims against the Debtors with priority over any and all administrative expenses, adequate protection and all other claims against the Debtors. As security for the Debtors' obligations, these security interests and liens will be granted by the Debtors to the DIP Agent, for itself and the benefit of the DIP Lenders: (i) first lien on unencumbered property; (ii) liens junior to certain existing liens; and (iii) liens priming first lien lenders' and second lien lenders' liens. As adequate protection for the use of cash collateral, the first lien agent and the first lien lenders will be granted: (i) first lien adequate protection liens; (ii) first lien Section 507(b) claims; (iii) interest, fees, and expenses; and (iv) credit bidding. The second lien agent and the second lien lenders will also be granted: (i) second lien adequate protection liens; (ii) second lien 507(b) claims. The DIP Agent will receive (i) a monthly budget for the six months after the Petition Date and (ii) an initial 13-week cash flow forecast for the period beginning with the week which includes the Petition Date through the 13-week thereafter. About OTC Holdings Omaha, Nebraska-based OTC Holdings Corporation filed for Chapter 11 protection on August 25, 2010 (Bankr. D. Del. Case No. 10- 12636). Affiliates OTC Investors Corporation (Bankr. D. Del. Case No. 10-12637), Oriental Trading Company, Inc. (Bankr. D. Del. Case No. 10-12638), Fun Express, Inc. (Bankr. D. Del. Case No. 10- 12639), and Oriental Trading Marketing, Inc. (Bankr. D. Del. Case No. 10-12640), filed separate Chapter 11 petitions on August 25, 2010. The Debtors disclosed $463 million in total assets and $757 million in total liabilities as of the Petition Date. Richard Hahn, Esq., My Chi To, Esq., Jae-Sun Chung, Esq., Huyue Angela Zhang, Esq., and Jessica Katz, Esq., at Debevoise & Plimpton LLP, assist the Debtors in their restructuring efforts. Joel A. Waite, Esq., and Kenneth J. Enos, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' local counsel. Jefferies & Company, Inc., is the Debtors' financial advisor. Protiviti, Inc., is the Debtors' restructuring consultant. Kurtzman Carson Consultants LLC is the Debtors' claims agent. OTC HOLDINGS: Taps Young Conaway to Handle Reorganization Case -------------------------------------------------------------- The Hon. Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware authorized OTC Holdings Corporation, et al., to employ Young Conaway Stargatt & Taylor, LLP as bankruptcy co-counsel. Young Conaway will, among other things: -- pursue the orderly reorganization of the Debtors' assets; -- prepare on behalf of the Debtors necessary applications, motions, answers, orders, reports and other legal papers; and -- appear in Court and otherwise protect the interests of the Debtors before the Court. Young Conaway have discussed division of responsibilities with Debevoise and Plimpton LLP, the Debtors' co-counsel, to make very effort to avoid duplication of effort in the Chapter 11 cases. Joel A. Waite, Esq., an attorney at Young Conaway, tells the Court the Court that Young Conaway received a $100,000 retainer and a $95,330 payment. After applying the August payment and a portion of the retainer to the outstanding balance existing as of the petition date, Young Conaway will continue to hold the balance of the retainer as security for postpetition services and expenses until the conclusion of the cases. The hourly rates of Young Conaway's personnel are: Mr. Waite $660 Kenneth J. Enos $335 Andrew L. Magaziner $275 Melissa Bertsch, paralegal $165 Mr. Waite assures the Court that Young Conaway is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Waite can be reached at: YOUNG CONAWAY STARGATT & TAYLOR, LLP The Brandywine Building 1000 West Street, 17th Floor P.O. Box 391 Wilmington, DE 19801 Tel: (302) 571-6600 Fax: (302) 571-1253 The Debtors' co-counsel can be reached at: Richard F. Hahn, Esq. My Chi To, Esq. DEBEVOISE & PLIMPTON LLP 919 Third Avenue New York, NY 10022 Tel: (212) 909-6000 Fax: (212) 909-6836 About OTC Holdings Corporation Omaha, Nebraska-based OTC Holdings Corporation filed for Chapter 11 protection on August 25, 2010 (Bankr. D. Del. Case No. 10- 12636). Affiliates OTC Investors Corporation (Bankr. D. Del. Case No. 10-12637), Oriental Trading Company, Inc. (Bankr. D. Del. Case No. 10-12638), Fun Express, Inc. (Bankr. D. Del. Case No. 10- 12639), and Oriental Trading Marketing, Inc. (Bankr. D. Del. Case No. 10-12640), filed separate Chapter 11 petitions on August 25, 2010. The Debtors disclosed $463 million in total assets and $757 million in total liabilities as of the Petition Date. Richard Hahn, Esq., My Chi To, Esq., Jae-Sun Chung, Esq., Huyue Angela Zhang, Esq., and Jessica Katz, Esq., at Debevoise & Plimpton LLP, assist the Debtors in their restructuring efforts. Joel A. Waite, Esq., and Kenneth J. Enos, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' local counsel. Jefferies & Company, Inc., is the Debtors' financial advisor. Protiviti, Inc., is the Debtors' restructuring consultant. Kurtzman Carson Consultants LLC is the Debtors' claims agent. PALI HOLDINGS: Sues to Get Lloyd's Indemnification -------------------------------------------------- Dawn McCarty at Bloomberg News reported that Pali Holdings Inc., early this month commenced an adversary proceeding against Lloyd's of London to seek payments under its $10 million directors and officers insurance policy. "Lloyd's has refused to cover Pali for all losses" from litigation," including defense and indemnity costs, Pali contends in the lawsuit. Lloyd's told Pali it was denying coverage based on policy exclusions. Bloomberg recounts that some Pali shareholders sued company officials in June and August 2008 in behalf of the company alleging violation of fiduciary duties, conspiracy and abuse of control, according to bankruptcy court papers. One suit was dismissed in February and the other is pending. Pali Holdings is a New York-based broker dealer. It filed for Chapter 11 protection on April 1, 2010 (Bankr. S.D.N.Y. Case No. 10-11727). Mark S. Indelicato, Esq., at Hahn & Hessen LLP, in New York, serves as counsel. The Debtor disclosed $716,257 in assets and $31,764,247 debts in its schedules. PANAMSAT CORP: Bank Debts Trade at 4% Off in Secondary Market ------------------------------------------------------------- Participations in three syndicated loans under which PanAmSat Corporation, now known as Intelsat Corporation, is a borrower traded in the secondary market at 95.86 cents-on-the-dollar for each loan during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.41 percentage points per loan from the previous week, The Journal relates. PanAmSat pays 250 basis points above LIBOR to borrow under each facility, which mature simultaneously on Jan. 3, 2014. The bank debts are not rated by Moody's and Standard & Poor's. The loan is one of the biggest gainers and losers among 215 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Intelsat Corporation, -- http://www.intelsat.com/-- formerly known as PanAmSat Corporation, is a global provider of video, corporate, Internet, voice and government communications services with a fleet of 25 satellites in-orbit. The Company provides transponder capacity to customers on Company-owned and operated satellites, and deliver third-party entertainment and information to cable television systems, television broadcasters, direct-to- home, television operators, Internet service providers, telecommunications companies, governments and other corporations. It also provides satellite services and related technical support for live transmissions for news and special events coverage. In addition, the Company provides satellite services to telecommunications carriers, corporations and Internet service providers for the provision of satellite-based communications networks, including private corporate networks. Intelsat Ltd.'s balance sheet showed total assets of $12.05 billion, total debts of $12.77 billion and stockholders' deficit of $722.3 million as of March 31, 2008. PASCUAL ACEVEDO: Specific Performance Order Stops Rejection ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that U.S. Bankruptcy Judge Arthur Gonzalez in Manhattan ruled a bankruptcy trustee must carry out a pre-bankruptcy order from a state court requiring specific performance of a real estate contract. According to Mr. Rochelle, the case involved an individual who was under contract to sell real property. Before bankruptcy, the buyer obtained a final order from the state appellate court requiring specific performance. The order of specific performance commanded the seller to transfer title in return for payment of the remainder of the purchase price. The seller later filed bankruptcy and found another buyer willing to pay several times more for the property. Judge Gonzalez, Mr. Rochelle relates, concluded that the sale to the original purchaser had to be completed, even in light of the higher offer. To reach the result, Judge Gonzalez first ruled that the contract was no longer an executory contract when the state court entered an order calling for specific performance. Judge Gonzalez also ruled that the buyer didn't have a claim in the bankruptcy case because a claim exists only when the creditor has a right to payment. Pascual Acevedo, also known as Pascual Acevedo Santos, filed a Chapter 7 petition on June 7, 2007 (Bankr. S.D.N.Y. Case No. 07-11702-ajg). Edward L. Koester -- edkoester@optonline.net -- in Bronx, New York, served as counsel to the Debtor. PEOPLES STATE: Weiss Gives Minn. Bank Very Weak E+ Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Peoples State Bank Madison Lake based in Madison Lake, Minn. 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 June 30, 2010, the institution's balance sheet showed $27.5 million in assets. PENN TRAFFIC: Chapter 11 Plan Voting Deadline Fixed on October 20 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has established October 20, 2010, at 5:00 p.m. as the deadline for ballots accepting or rejecting The Penn Traffic Company, et al.'s Chapter 11 Plan, as amended. The deadline for filing ballot report and certification is on October 22 at 5:00 p.m. The deadline for filing plan supplement is on October 13 at 5:00 p.m. The Court will convene a hearing on October 27 at 1:30 p.m. Objections, if any are due on October 20 at 4:00 p.m. As reported in the Troubled Company Reporter on September 20, the Plan provides a means by which the Debtors' Estates will be liquidated under Chapter 11 of the Bankruptcy Code, and sets forth the treatment of all claims against and equity interests in the Debtors. The Debtors consummated the sale of substantially all of their assets, pursuant to a comprehensive sale transaction with Tops PT, LLC as assignee of Tops Markets, LLC, including settlements and other arrangements with other significant creditors. The Plan implements the distribution of the remaining sale proceeds in accordance with the priorities set forth in the Bankruptcy Code and the substantive consolidation of the Debtors' Estates. A full-text copy of the amended Disclosure Statement is available for free at http://bankrupt.com/misc/PennTraffic_amendedDS.pdf About Penn Traffic Syracuse, New York-based The Penn Traffic Company -- dba P&C Foods, Bi-Lo Foods, and Quality Markets -- operates supermarkets in Pennsylvania, upstate New York, Vermont, and New Hampshire under the Bilo, P&C and Quality trade names. The Company filed for Chapter 11 bankruptcy protection on November 18, 2009 (Bankr. D. Del. Case No. 09-14078). Ann C. Cordo, Esq., and Gregory W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell assist the Company in its restructuring effort. Donlin Recano is the Company's claims agent. The Company disclosed $150,347,730 in assets and $136,874,394 in liabilities as of May 4, 2009. The Company's affiliates also filed separate Chapter 11 petitions -- Sunrise Properties, Inc.; Pennway Express, Inc.; Penny Curtiss Baking Company, Inc.; Big M Supermarkets, Inc.; Commander Foods Inc.; P and C Food Markets, Inc. of Vermont; and P.T. Development, LLC. Following a bankruptcy court-sanctioned auction, Tops Markets LLC purchased almost all of Penn Traffic's stores as a going concern by paying $85 million cash. The sale was structured so Penn Traffic avoided a $72 million claim for pension plan termination and a $27 million claim by the principal supplier. PHILADELPHIA NEWSPAPERS: Lenders Win New Auction with $105MM Bid ---------------------------------------------------------------- Lenders of Philadelphia Newspapers again came out on top in the fight for the publisher of Philadelphia's two major daily newspapers, besting a rival group led by local philanthropist Raymond Perelman with a cash offer of $105 million. According to The Associated Press, the lenders group surpassed the $85 million offer of local philanthropist and business mogul, Raymond Perelman. The AP relates that the lenders' bid is roughly equivalent to their $139 million winning deal at the first auction, and includes $105 million cash plus the newspaper building, valued at about $30 million, and a few million in costs. The sale is expected to close by mid-October, according to the AP. The auction is part of Philadelphia Newspapers' Chapter 11 reorganization plan. A plan confirmation hearing is set for Sept. 30, 2010. Revised Plan Rachel Feintzeig, writing for Dow Jones' Daily Bankruptcy Review says the new bid is set to be folded into a revised reorganization plan that still must be approved by the U.S. bankruptcy court in Philadelphia. A second plan-confirmation hearing is set to start this Thursday. "We will close this transaction under any circumstances," said Fred Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, who represents the lenders, according to DBR. The lenders prevailed at the April auction for the company with an offer that totaled $139 million, including the value of real estate included in the deal. The original sale deal fell apart earlier this month over a union contract dispute, sending the publisher back to the auction block for a second round of bidding. DBR relates that the lender group -- which includes Alden Global Capital and Angelo Gordon & Co. -- faced off at last week's auction against one opponent, a duo comprising Mr. Perelman, 93 years old, and the Carpenters Union pension fund. DBR relates Mr. Perelman and the Carpenters Union offered $85 million and hoped that their decision to forgo certain employment stipulations initially folded into the lenders' offer would ultimately find favor with the publisher. According to DBR, J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom, representing the Perelman group, said his clients were confident they could work with the current newspaper employees and also thought they could successfully strike a union contract with the Teamsters, the one union holdout that had derailed the lenders' initial deal. DBR relates the lenders ultimately consented to incorporate the contracts they had already struck with all but one of the unions representing the company's employees into the new sale deal, pushing the company to deem their offer the "highest and best," and leaving Mr. Perelman behind for the second time. "We already were the second-place bidder once," Mr. Milmoe said, alluding to Mr. Perelman's finish at the April auction. About Philadelphia Newspapers Philadelphia Newspapers -- http://www.philly.com/-- owns and operates numerous print and online publications in the Philadelphia market, including the Philadelphia Inquirer, the Philadelphia Daily News, several community newspapers, the region's number one local Web site, philly.com, and a number of related online products. The Company's flagship publications are the Inquirer, the third oldest newspaper in the country and the winner of numerous Pulitzer Prizes and other journalistic recognitions, and the Daily News. Philadelphia Newspapers and its debtor-affiliates filed for Chapter 11 bankruptcy protection on February 22, 2008 (Bankr. E.D. Pa. Case No. 09-11204). Mark K. Thomas, Esq., and Paul V. Possinger, Esq., at Proskauer Rose LLP in Chicago, Illinois; and Lawrence G. McMichael, Esq., Christie Callahan Comerford, Esq., and Anne M. Aaronson, Esq., at Dilworth Paxson LLP, in Philadelphia, Pennsylvania, serve as bankruptcy counsel. The Debtors' financial advisor is Jefferies & Company Inc. The Garden City Group, Inc., serves as claims and notice agent. Ben Logan, Esq., at O'Melveny & Myers LLP in Los Angeles, California; and Gary Schildhorn, Esq., at Eckert Seamans Cherin & Mellott, LLC in Philadelphia, represent the Official Committee of Unsecured Creditors. Fred S. Hodara, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP in New York, represent the Steering Group of Prepetition Secured Lenders. Philadelphia Newspapers estimated assets and debts of $100 million to $500 million in its bankruptcy petition. PISGAH COMMUNITY: Weiss Gives N.C. Bank Very Weak E- Rating ----------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Pisgah Community Bank based in Asheville, N.C. 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 June 30, 2010, the institution's balance sheet showed $57.6 million in assets. PLAYERS TURF: Associated Fails to Prove Nondischargeability Claim ----------------------------------------------------------------- Chief Bankruptcy Judge Thomas L. Perkins holds that Associated Bank, N.A., has failed to prove its claim of nondischargeability against Raymond J. Sever. Associated sued Mr. Sever seeking a determination that a debt to Associated is nondischargeable under Section 523(a)(4) of the Bankruptcy Code. Associated alleges Mr. Sever hid property from the bankruptcy estate of Players Turf International, LLC. Mr. Sever was the manager and 83.027% member of Players Turf International, a business engaged in the sale and installation of synthetic turf. PTI ceased is operations end of September 2006. PTI filed a voluntary Chapter 11 petition on July 24, 2007, with hopes of a quick sale of substantially all of its assets under Section 363 of the Bankruptcy Code. Associated blocked the sale and foreclosed on the encumbered assets. PTI's case was converted to Chapter 7 on November 21, 2007, after it was determined that Mr. Sever possessed certain vehicles, machinery and equipment not encumbered by Associated's lien. The case was closed on April 6, 2010. Mr. Severs and his spouse filed a Chapter 7 petition on May 29, 2008. The Chapter 11 case is Raymond J. Sever and Linda A. Sever (Bankr. C.D. Ill. Case No. 08-81432). The adversary case is Associated Bank, N.A. v. Raymond J. Sever and Linda A. Sever Adv. No. 08-8124 (Bankr. C.D. Ill.). A copy of the Court's decision is available at: http://www.leagle.com/unsecure/page.htm?shortname=inbco20100922601 PRECISION OPTICS: Recurring Net Losses Cue Going Concern Doubt -------------------------------------------------------------- Precision Optics Corporation, Inc., filed on September 21, 2010, its annual report on Form 10-K for the fiscal year ended June 30, 2010. Stowe & Degon LLC, in Westborough, Mass., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring net losses and negative cash flows from operations. The Company reported a net loss of $660,882 on $3.1 million of revenue for fiscal 2010, compared to a net loss of $992,135 on $3.5 million of revenue for fiscal 2009. The Company has sustained recurring net losses for several years. As of June 30, 2010, the Company has an accumulated deficit of $38.4 million. As of June 30, 2010, cash and cash equivalents were $416,040, accounts receivable were $505,200, and current liabilities were $2.1 million. The Company anticipates that deferred officers' salaries and director consulting expenses accrued at June 30, 2010, will be settled by issuing restricted common stock rather than by cash payments. These deferred amounts included in current liabilities at June 30, 2010, total roughly $574,000. The Company's balance sheet at June 30, 2010, showed $1.9 million in total assets, $2.1 million in total liabilities, and a stockholders' deficit of $164,249. A full-text copy of the Form 10-K is available for free at: http://researcharchives.com/t/s?6b8e About Precision Optics Gardner, Mass.-based Precision Optics Corporation, Inc. (OTC BB: PEYE) -- http://www.poci.com/-- designs, develops, manufactures and sells specialized optical systems and components and optical thin-film coatings. The Company conducts business in one industry segment only and its customers are primarily domestic. The Company's products and services fall into two principal areas: (i) medical products for use by hospitals and physicians; and (ii) advanced optical system design and development services and products used by industrial customers. PRIVATE ESCAPES: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Private Escapes Platinum Link, LLC 3501 West Vine Street, Suite 225 Kissimmee, FL 34741 Bankruptcy Case No.: 10-13092 Chapter 11 Petition Date: September 23, 2010 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Debtors' Counsel: Scott D. Cousins, Esq. GREENBERG TRAURIG LLP The Nemours Building 1007 North Orange Street, Suite 1200 Wilmington, DE 19801 Tel: (302) 661-7000 Fax: (302) 661-7360 Debtors' Chief Restructuring Officer: CRG PARTNERS GROUP LLC Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 Debtor-affiliates that filing separate Chapter 11 petitions on September 20, 2010: Ultimate Escapes Holdings, LLC (Case No. 10-12915) Ultimate Resort, LLC Ultimate Operations, LLC Ultimate Resort Holdings, LLC Ultimate Escapes, Inc. (fka Secure America Acquisition Corporation) P & J Partners, LLC UE Holdco, LLC UE Member, LLC Ultimate Escapes Clubs, LLC Ultimate Escapes Elite Club, LLC Ultimate Escapes Signature Club, LLC Ultimate Escapes Premiere Club, LLC Ultimate Scottsdale, LLC Ultimate Lake Tahoe, LLC Ultimate Colorado, LLC Ultimate Telluride Mountain Village, LLC Ultimate Naples Strada Bella, LLC Ultimate Naples Monteverde, LLC Ultimate Palm Beach Ocean, LLC Ultimate Maui Wailea Beach, LLC Ultimate Sun Valley MacKenzie, LLC Ultimate Sun Valley Plaza Townhouse, LLC Ultimate New York Trp International, LLC Ultimate Kiawah Turtle Beach, LLC Ultimate Park City Silverlake, LLC Ultimate Jackson Hole Snake River, LLC Bahamas Investments I, LLC Bahamas Investments II, LLC Bahamas Investments III, LLC Bahamas Investments IV, LLC Cabo Casa Tortuga, LLC Cabo Esperanza #1501, LLC Cabo Esperanza #1502, LLC Cabo Esperanza #1503, LLC Cabo Esperanza #1601, LLC Cabo Esperanza #1602, LLC Cabo Esperanza #1603, LLC Cabo Villa Del Sol, LLC Cabo Villa Eternidad, LLC Cabo San Lucas Villa Paraiso, LLC Ultimate Nevis Investments, LLC Snowflake Investments I, LLC Sunny Isles Investments I, LLC Tahoe Investments I, LLC Cabo Investments I, LLC Mahogany Run Investments I, LLC Candlewood Investments I, LLC Ultimate Scottsdale Rocks, LLC Ultimate Beaver Creek, LLC Ultimate Indian Rocks Beach, LLC Ultimate Key West, LLC Ultimate Lake Las Vegas, LLC Ultimate Newport Americas, LLC Private Escapes of La Quinta Platinum, LLC Private Escapes La Quinta I, LLC Private Escapes La Quinta II, LLC Private Escapes Platinum of Copper Mountain, LLC Private Escapes Platinum Telluride, LLC Private Escapes of Steamboat, LLC Private Escapes of Lake Oconee, LLC Private Escapes of Waikoloa, LLC Private Escapes of Waikoloa II, LLC Private Escapes of Chicago, LLC Private Escapes of Currituck, LLC Private Escapes Platinum Currituck, LLC Private Escapes of Tahoe, LLC Private Escapes of Platinum Lake George, LLC Private Escapes of One Central Park West, LLC Private Escapes 1600 Broadway LLC Private Escapes Link, LLC Private Escapes Platinum One Central Park West, LLC Private Escapes of Kiawah, LLC Private Escapes of Platinum Kiawah, LLC Private Escapes of Jackson Hole, LLC Private Escapes Villa 304, LLC Private Escapes Platinum Cabo, LLC Private Escapes La Playa, LLC Private Escapes of Cabo, LLC Private Escapes Platinum TCI, LLC Private Escapes Platinum Chicago, LLC Private Escapes of Fox Acres, LLC Private Escapes of Stow, LLC Private Escapes La Costa, LLC Private Escapes Platinum La Costa, LLC Private Escapes Borgo di Vagli, LLC Type of Business: Ultimate Escapes, Inc., is a luxury destination club that sells club memberships offering members reservation rights to use its vacation properties, subject to the rules of the club member's Club Membership Agreement. The Company's properties are located in various resort locations throughout the world. Web site: http://www.ultimateescapes.com/ A list of Private Escapes Platinum's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/deb10-13092.pdf Ultimate Escapes' List of 20 Largest Unsecured Creditors: Entity/Person Nature of Claim Claim Amount ------------- --------------- ------------ Trump International Hotel Trade Debt $496,029 & Tower 1 Central Part West New York, NY 10023 Weinstock & Scavo, P.C. Professional $400,561 3405 Peidmont Road N.E. Service Suite 300 Atlanta, GA 30305 Mintz Levin Coch Ferris Professional $375,000 Glovsky & Pompeo Service Attn: Jeffrey Schultz 66 Third Avenue Chrysler Center New York, NY 10017 Dennis Evans Liquidation $231,000 Settlement Francisco Acosta Trade Debt $208,000 Michael Parker Trade Debt $181,800 Strauss Zelnick Litigation $171,666 Settlement Condominium Esperanza Trade Debt $158,069 A.C. (WIRE) Blaine Parrott Trade Debt $157,600 Clive Buckley and Keri Litigation $152,305 Buckley Settlement Kenneth D. Phillips Trade Debt $150,000 WorlHotels Trade Debt $148,793 Ito Group Litigation $140,266 Settlement Maxwell Rhee and S. Kim Trade Debt $140,000 P&S LLC Litigation $135,000 Settlement Creg McDonald Trade Debt $132,610 Greg Dugas Trade Debt $123,000 Marcus Acheson Trade Debt $120,900 Ian Mead Trade Debt $120,333 Patrick Reardon Trade Debt $119,066 PROMETRIC INC: Moody's Raises Corporate Family Rating to 'B1' ------------------------------------------------------------- Moody's Investors Service raised Prometric Inc.'s corporate family rating to B1 from B2, the probability-of-default rating to B1 from B2, and the rating on the senior secured credit facilities to Ba2 from Ba3. The ratings outlook was changed to stable from positive. These ratings were upgraded: -- Corporate family rating to B1 from B2; -- Probability-of-default rating to B1 from B2; -- $25 million senior secured revolving credit facility due 2012 to Ba2 (LGD2, 19%) from Ba3 (LGD2, 24%); -- $129 million senior secured term loan due 2013 to Ba2 (LGD2, 19%) from Ba3 (LGD2, 24%). Ratings Rationale The change in the corporate family rating to B1 reflects Prometric's improved operating performance and Moody's expectation that operating performance will continue to improve through new business. Combined with mandatory debt reduction over the past year (associated with an excess cash flow sweep provision in the credit agreement), Moody's expect sustainable improvements in credit metrics. Prometric's B1 rating is supported by its moderate leverage with debt to EBITDA below 4.0 times, EBITDA less capex coverage of interest expense in excess of 2.5 times, positive cash flow generation that has accommodated debt reduction, operating margin expansion, and, in Moody's view, a good liquidity profile due to a relatively large unrestricted cash balance and expectations for free cash flow generation. However, the rating remains constrained by the company's somewhat moderate scale, its niche focus, reliance on relatively large contracts, and pressure on certain of its verticals. The stable outlook reflects Moody's expectation that Prometric will continue to organically expand its seat capacity and revenue/earnings, and reduce debt levels such that credit metrics continue to improve from current levels. While Prometric's relatively moderate scale constrains the rating, in the event that it sustainably increases its relative scale without incrementally increasing leverage, the ratings could be upgraded. A positive action would also require that the company maintain a good liquidity profile. If the loss of a material contract and/or erosion in margins (potentially implying a change in business mix) pressures Prometric's operating performance such that debt to EBITDA exceeds 4.0 or EBITDA less capex coverage of interest expense falls below 2.0 times, this could pressure the outlook and/or ratings. A weakening of the company's liquidity profile or any use of cash outside of Moody's expectation, including debt-financed acquisitions, could also pressure the ratings. Headquartered in Baltimore, Maryland, Prometric Inc. is a provider of technology-based assessment solutions including test development and delivery for government entities, professional organizations, academic institutions, corporations and information technology clients. PUBLIC SAVINGS: Weiss Gives Pa. Bank Very Weak E+ Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Public Savings Bank based in Huntingdon Valley, Pa. 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 June 30, 2010, the institution's balance sheet showed $50.9 million in assets. QUALITY BANK: Weiss Gives N.D. Bank Very Weak E Rating ------------------------------------------------------ Weiss Ratings has assigned its "very weak" E rating to Quality Bank based in Page, N.D. 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 June 30, 2010, the institution's balance sheet showed $27.2 million in assets. RAJ RAKKAR: Case Summary & Largest Unsecured Creditor ----------------------------------------------------- Debtor: Raj Rakkar, LLC 18555 Pistacchio Dr Madera, CA 93637 Bankruptcy Case No.: 10-60943 Chapter 11 Petition Date: September 22, 2010 Court: United States Bankruptcy Court Eastern District of California (Fresno) Judge: Whitney Rimel Debtor's Counsel: Hilton A. Ryder, Esq. MCCORMICK BARSTOW LLP 5 River Park Place East P.O. Box 28912 Fresno, CA 93729-8912 Tel: (559) 433-1300 Scheduled Assets: $1,855,000 Scheduled Debts: $1,780,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Debra Hood, CPA $10,000 160 N. O Street Exeter, CA 93221 The petition was signed by Raj Rakkar, managing member. RAY ANTHONY: Gets Court's Nod to Tap Lampl as Bankruptcy Counsel ---------------------------------------------------------------- Ray Anthony International, LLC, sought and obtained authorization from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Robert O. Lampl, John P. Lacher and Elsie R. Lampl as bankruptcy counsel. Messrs. and Ms. Lampl will, among other things: -- assist in the administration of the Debtor's state; -- represent the Debtor on matters involving legal issues that are present or are likely to arise in the case; -- prepare any legal documentation on behalf of the Debtor; and -- review reports for legal sufficiency and furnish information on legal matters regarding legal actions and consequences. The hourly rates of Messrs. and Ms. Lampl's personnel are: a. Robert O. Lampl $400 b. John P. Lacher $375 c. Elsie R. Lampl $250 d. Paralegal $125 The Debtor assured the Court that the Lampls are "disinterested persons" as that term is defined in Section 101(14) of the Bankruptcy Code. West Mifflin, Pennsylvania-based Ray Anthony International, Inc., filed for Chapter 11 bankruptcy protection on September 15, 2010 (Bankr. W.D. Pa. Case No. 10-26576). The Debtor estimated its assets and debts at $50 million to $100 million as of the Petition Date. Affiliate Ray G. Anthony filed a separate Chapter 11 petition on September 14, 2010 (Bankr. W.D. Pa. Case No. 10-26552). RAYMOND BABCOCK: Voluntary Chapter 11 Case Summary -------------------------------------------------- Joint Debtors: Raymond Babcock Susan Babcock 28039 Scott Rd., D-222 Murrieta, CA 92563 Bankruptcy Case No.: 10-40660 Chapter 11 Petition Date: September 22, 2010 Court: United States Bankruptcy Court Central District Of California (Riverside) Judge: Catherine E. Bauer Debtor's Counsel: Ali E. Galam, Esq. GALAM LAW OFFICES 26193 Jefferson Ave., Suite B Murrieta, CA 92562 Tel: (951) 445-4890 Fax: (951) 445-4893 E-mail: aeligalam@gmail.com Scheduled Assets: $1,335,525 Scheduled Debts: $2,360,466 The Joint Debtors did not file a list of its largest unsecured creditors together with its petition. RCS BANK: Weiss Gives Mo. Bank Very Weak E- Rating -------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to RCS Bank based in New London, Mo. 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 June 30, 2010, the institution's balance sheet showed $60.6 million in assets. REALOGY CORP: Bank Debt Trades at 13% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which Realogy Corp. is a borrower traded in the secondary market at 87.36 cents-on-the- dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.61 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on September 30, 2013, and carries Moody's B1 rating and Standard & Poor's CCC- rating. The loan is one of the biggest gainers and losers among 215 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Realogy Corp. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have around 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. The Company's balance sheet at June 30, 2010, showed $8.18 billion in total assets, $9.13 billion in total liabilities, and a stockholders' deficit of $951.00 million. Realogy carries a 'CC' corporate credit rating with a "developing" outlook from Standard & Poor's. S&P noted that leverage was high, at 15x at March 2010, although this was an improvement compared to 20x one year ago. It has 'Caa2' corporate family and probability of default ratings, with negative outlook, from Moody's. RESIDENTIAL PROPERTY: Case Summary & Creditors List --------------------------------------------------- Debtor: Residential Property Investments, LLC 302 West Commerce Street Dallas, TX 75208 Bankruptcy Case No.: 10-36604 Chapter 11 Petition Date: September 22, 2010 Court: U.S. Bankruptcy Court Northern District of Texas (Dallas) Judge: Stacey G. Jernigan Debtor's Counsel: Eric A. Liepins, Esq. ERIC A. LIEPINS, P.C. 12770 Coit Road, Suite 1100 Dallas, TX 75251 Tel: (972) 991-5591 E-mail: eric@ealpc.com Scheduled Assets: $1,874,706 Scheduled Debts: $2,022,650 A list of the Company's 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb10-36604.pdf The petition was signed by Eric Hill, managing member. RICH CAPITOL: Court Won't Equitably Subordinate Wachovia's Claim ---------------------------------------------------------------- WestLaw reports that a financial institution's prepetition conduct, after being named as a defendant in a lawsuit brought by a Chapter 11 debtor, in refusing to convert a construction loan that it had extended to the debtor into permanent or "mini- permanent" financing, in accelerating obligations owed by the debtor based on an alleged default, in freezing the debtor's bank accounts, and in seeking to foreclose its interests, all in an alleged bad faith attempt to coerce the debtor into abandoning its legal claims, did not provide a basis for equitable subordination of the financial institution's claim, as the claim of a non-inside creditor. Regardless of the financial institution's motives in acting as it did, all of its actions were permitted under the terms of the financial documents between parties, which, for example, did not require conversion of the construction loan unless the debtor met certain ratios of net income to debt service coverage that it failed to achieve. In re Rich Capitol, LLC, --- B.R. ----, 2010 WL 3611452 (Bankr. S.D. Fla.) (Kimball, J.). Rich Capitol, LLC d/b/a Capital Walk Apartments sued Wachovia Bank, N.A. (Bankr. S.D. Fla. Adv. Pro. No. 09-01965) on Aug. 28, 2009, seeking to equitably subordinate the lender's $20.7 million claim. Wachovia moved for summary judgment and won. "Because Wachovia is not an insider or fiduciary of the Debtor, the first prong of the equitable subordination test requires the Debtor to prove with particularity that Wachovia's actions were egregious, tantamount to fraud, spoliation or overreaching," the Honorable Erik P. Kimball explains. "There is sufficient evidence in the form of the Affidavit, the Loan Documents and correspondence between Wachovia and the Debtor, to negate the allegations made by the Debtor in the Complaint. The Debtor did not respond with specific facts showing that Wachovia's acts were egregious. Thus, there is no genuine issue of material fact relating to Wachovia's conduct. As the Debtor failed to satisfy this first requirement in the equitable subordination analysis, it is not necessary for the Court to address whether there was injury to creditors or an unfair advantage conferred on Wachovia, or whether subordination would be inconsistent with the provisions of the Bankruptcy Code." Headquartered in Boca Raton, Florida, Rich Capitol, LLC dba Capital Walk Apartments, filed for Chapter 11 protection (Bankr. S. D. Fla. Case No. 09-25422) on July 28, 2009. Heather L. Harmon, Esq., represents the Debtors in its restructuring efforts. In its petition, the Debtor estimated its assets and debts at $10 million to $50 million. Heather L. Ries, Esq., and Michael R. Bakst, Esq., at Ruden, McClosky, Smith, Schuster & Russell, P.A., in West Palm Beach, Fla., represent Wachovia Bank, N.A. RITE AID: Bank Debt Trades at 11% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which Rite Aid Corp. is a borrower traded in the secondary market at 88.98 cents-on-the- dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.79 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 25, 2014, and carries Moody's B3 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 215 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Rite Aid Corp. Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation (NYSE: RAD) -- http://www.riteaid.com/-- is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. The Company operates more than 4,900 stores in 31 states and the District of Columbia. The Company's balance sheet at May 29, 2010, showed $8.0 billion in total assets, $9.7 billion in total liabilities, and $1.7 billion in stockholders' deficit. * * * Rite Aid carries 'Caa2' probability of default and corporate family ratings from Moody's Investors Service. It has a 'B-' corporate credit rating from Standard & Poor's Ratings Services. ROADHOUSE FINANCING: Moody's Assigns 'B2' Corporate Family Rating ----------------------------------------------------------------- Moody's Investors Service assigned a B2 Corporate Family Rating and Probability of Default Rating to Roadhouse Financing Inc. (Roadhouse, merger sub). At the same time, Moody's assigned a B2 rating to the proposed $335 million 2nd lien senior secured notes due 2017. The rating outlook is negative. It is Moody's understanding that at the close of the transaction, Roadhouse Finance Inc. will merge into Logan's Roadhouse, Inc. (Newco -- Logan's) as the surviving entity of such transaction. The rating has been assigned subject to the completion of the proposed acquisition and the review of the executed documentation. These ratings were assigned: Roadhouse Financing Inc. -- Corporate family rating at B2; -- Probability-of-default rating at B2; -- $355 million senior secured notes due 2017 at B2 (LGD4, 50%); Rating outlook: negative All of the existing ratings of Logan's Roadhouse Inc. (Oldco -- Logan's), including its B2 corporate family rating and B2 probability of default rating, are unchanged and remain under review for possible downgrade. The review was initiated on August 31, 2010. Moody's expects to conclude review and withdraw all Oldco's ratings upon closing of the transaction. Ratings Rationale The proceeds from the issuance, along with cash equity from new owners and management and existing cash balance will be used to finance a planned acquisition by an affiliate of Kelso & Company from its current owners for a total consideration of approximately $585 million. The proposed debt structure will be primarily comprised of a $30 million 1st lien senior secured revolving credit facility (not rated by Moody's) and the $355 million 2nd lien sr. secured notes. The assigned B2 CFR reflects Logan's high leverage, yet the demonstrated relatively resilient operating performance in the past year under a challenging operating environment and Moody's expectation that its revenue and operating profit will continue to grow as industry condition stabilizes in the medium term . Moody's believes that Logan's Roadhouse outperformed its casual dining peers in terms of same store sales growth and guest traffic over the past two years, in part due to strong appeal for value proposition in a recessionary economy. Despite the increase in financial leverage as a result of LBO, the B2 reflects Moody's view that the leverage as measured by debt/EBITDA would gradually decrease to below 6.0x over the next 12-18 months, mainly driven by EBITDA growth due to continued store expansion and organic revenue growth as SSS revert to positive. Deleveraging could also come from debt reduction as the bond indenture would allow modest optional redemption with excess free cash flow. However, Moody's expects free cash flow generation would be very modest in the first few years as Logan's will likely focus on opening new restaurants, which will require significant amount of capital. Proforma adjusted debt/EBITDA (based on May 2010 results and incorporating Moody's analytic adjustments) would be approximately 6.2x. The B2 rating also incorporates Logan's modest scale and notable regional geographic concentration as compared to other much bigger competitors in the casual dining steakhouse or bar and grill segments of the restaurant industry. In addition, its menu item with a high focus on beef, might expose the company with beef- related food safety risk and commodity pricing volatilities. In Moody's opinion, Logan's primarily company-owned business model makes its operating results more susceptible to fluctuations in commodity and operating costs, and execution risk associated with capital spending. Favorably, the B2 CFR considers management's ability to sustain a relatively stable profitability through the economic downturn by effectively controlling cost and improving efficiency to offset the adverse topline pressure. Further, Moody's expects short-term liquidity will be adequate and the store expansion will be implemented at a measured pace without depressing free cash flow to negative over an extended period. The negative outlook, however, encompasses the higher financial leverage, materially weakened balance sheet and somewhat weaker liquidity (albeit adequate) from the transaction. The outlook also considers the uncertainty on consumer spending as unemployment rate remains stubbornly high as well as potential margin impact from commodity input cost inflation such as beef in the future, either factor might delay Logan's deleveraging pace. In Moody's view, inability to reduce leverage below 6.0x in the next 12-18 months would warrant a lower rating. Conversely, the rating outlook could be stabilized if the debt/EBITDA sustains well below 6.0x and free cash flow remains positive. Roadhouse Financing Inc. is in the process of acquiring Logan's Roadhouse Inc., which operates 188 and franchises 26 traditional American roadhouse-style steakhouses in 23 states across the country. Company-owned units are largely concentrated in the south and southeastern United States with franchise locations in California and the Carolinas. ROBERTO ALMARAZ: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Roberto Almaraz aka Robert Almaraz dba Apartments Repair Services 3915 West 111th Place Inglewood, CA 90303 Bankruptcy Case No.: 10-50424 Chapter 11 Petition Date: September 22, 2010 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Victoria S. Kaufman Debtor's Counsel: David A. Tilem, Esq. LAW OFFICES OF DAVID A TILEM 206 N Jackson St., Ste 201 Glendale, CA 91206 Tel: (818) 507-6000 Fax: (818) 507-6800 E-mail: davidtilem@tilemlaw.com Scheduled Assets: $7,263,668 Scheduled Debts: $8,090,244 A list of the Debtor's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-50424.pdf ROCK & REPUBLIC: Asks Court to Approve Exclusive Sale Talks ----------------------------------------------------------- Rock & Republic Enterprises Inc. is seeking bankruptcy-court permission to carry out exclusive negotiations with a potential buyer of its assets that has submitted a non-binding letter of intent to acquire the apparel company for at least $33 million, Dow Jones' DBR Small Cap reports. New York-based Rock & Republic Enterprises, Inc., is a wholesale and retail apparel company specializing in an avant-garde and distinctive line of clothing. Originally started in 2002 by its Chief Executive Officer, Michael Ball, primarily as an American jeans company, the Debtors have expanded their lines to include high fashion clothing for men, women and children as well as shoes, cosmetics and accessories. The Company's merchandise can be found at most high end retail stores such as Nordstrom, Neiman Marcus, Bergdorf Goodman, Bloomingdales, Lord & Taylor, Harvey Nichols and Saks Fifth Avenue, as well as in small upscale boutiques. The Company filed for Chapter 11 bankruptcy protection on April 1, 2010 (Bankr. S.D.N.Y. Case No. 10-11728). Alex Spizz, Esq., and Arthur Goldstein, Esq., at Todtman, Nachamie, Spizz & Johns, P.C., assist the Company in its restructuring effort. Manderson, Schaefer & McKinlay, LLP, is the Company's special corporate counsel. The Company estimated $50 million to $100 million in assets and $10 million to $50 million in liabilities. The Company's affiliate, Triple R, Inc., filed a separate Chapter 11 petition on April 1, 2010 (Bankr. S.D.N.Y. Case No. 10- 11729). ROCK US: Investors Object to Prepack Chapter 11 Plan ---------------------------------------------------- Bankruptcy Law360 reports that two former U.S. executives of Rock US Holdings Inc. are fighting the Chapter 11 reorganization plan of the real estate company and three other affiliates of insolvent U.K. parent Rock Joint Ventures Ltd., arguing the proposal includes unlawful liability releases. Scott Pudalov and Alan Wildes filed a preliminary objection in the U.S. Bankruptcy Court for the District of Delaware on Thursday. The U.S. Bankruptcy Court will consider the adequacy of the Disclosure Statement and confirmation of the Plan during a hearing set for November 9, 2010, at 9:30 a.m. prevailing Eastern Time. Objections to the Disclosure Statement and the Plan must be filed with the Clerk of the Court by October 18, 2010. The Plan is intended to facilitate the sale of the Debtors' properties. The process in place is intended to maximize the recoveries available for the benefit of the estates, and the Bank of Scotland plc is agreeing to fund the costs of operation of the properties, the payment of ordinary course obligations of the properties and special capital improvements, and the costs of confirming the Plan, out of its cash collateral and asset sale proceeds. Secured and priority liabilities are being funded as part of the transactions contemplated by the Plan. Given the Debtors' current debt obligations and lack of adequate liquidity to fund all of its operating needs, the Debtors have no choice but to pursue the sale process in the manner described. The transactions proposed under the Plan will (i) pay all allowed administrative claims, priority tax claims, other secured claims and other priority claims in full; (ii) facilitate the sale or other disposition of the properties and other assets of the Debtors; (iii) provided a mechanism for relieving the properties of the encumbrances caused by the ROFR, ROFO, and Landmark Designation Process; and (iv) allow the orderly wind down of the operations of the Debtors. The transactions will convey clean title to the Fifth Avenue Property to its purchaser and the Madison Avenue Property to its purchaser in exchange for, as applicable, cash consideration and the assumption of mortgage debt and other liabilities, or cancellation of debt if the senior lenders determine to take title to the properties. The Plan provides that, if the Madison Avenue and the Fifth Avenue Purchase Agreements have terminated prior to their respective closing dates, at the senior lenders' option, the senior lenders may convey title to either or both of the properties to the senior lenders in full satisfaction of their Class 1 claims or designate one more entities, as applicable, as purchasers of the properties. Copies of the Plan and the Disclosure Statement are available for free at: http://bankrupt.com/misc/ROCK_US_plan.pdf http://bankrupt.com/misc/ROCK_US_plan2.pdf http://bankrupt.com/misc/ROCK_US_ds.pdf http://bankrupt.com/misc/ROCK_US_ds2.pdf About Rock US Rock US Holdings Inc. filed for Chapter 11 bankruptcy protection on September 15, 2010 (Bankr. D. Del. Case No. 10-12892). Affiliates Rock US Investments LLC (Bankr. D. Del. Case No. 10- 12893), Rock New York (100-104) Fifth Avenue LLC (Bankr. D. Del. Case No. 10-12894), and Rock New York (183 Madison Avenue) LLC (Bankr. D. Del. Case No. 10-12895) filed separate Chapter 11 petitions. Rock US Holdings estimated assets at up to $50,000 debts at $100 million to $500 million as of the Petition Date. Rock US Investments estimated its assets at up to $50,000 and debts at $100 million to $500 million; Rock New York (100-104) estimated its assets at $100 million to $500 million and debts at $100 million to $500 million; and Rock New York (183 Madison) estimated its assets at $100 million to $500 million and debts at $100 million to $500 million as of the Petition Date. Jamie Lynne Edmonson, Esq., Neil B. Glassman, Esq., at Bayard PA, are the Debtors' general bankruptcy counsel. Hogan Lovells US LLP is the Debtors' special corporate and Litigation counsel. Jones Day is the Debtors' special real estate counsel. ROCK US: Asks for OK on Bid Incentives for Purchasers of Assets --------------------------------------------------------------- Rock US Holdings Inc., et al., ask for the U.S. Bankruptcy Court for the District of Delaware to approve certain bid incentives for purchasers of the Debtors' properties. The Debtors seek to sell substantially all of their assets, consisting primarily of two commercial office buildings at 183 Madison Avenue, New York, New York, and 100-104 Fifth Avenue, New York, New York. The sales of the properties will fully liquidate the assets of the Debtors' estates, with proceeds to be applied in accordance with the Debtors' reorganization plan. In August 2010, Rock New York (183 Madison Avenue LLC), the Madison Avenue Debtor, entered into an agreement of sale and purchase with Rigby 183 LLC for the sale of the Madison Avenue Property for a purchase price of $75,244,144, plus assumption of the assumed liabilities. A copy of the agreements is available for free at: http://bankrupt.com/misc/ROCK_US_madisonavenue_apa.pdf http://bankrupt.com/misc/ROCK_US_madisonavenue_apa2.pdf In September 2010, Rock New York (100-104 Fifth Avenue) LLC, the Fifth Avenue Debtor, entered into a sale and purchase agreement with 100-104 Fifth, LLC, for the sale of the Fifth Avenue property for a purchase price of $93,500,000, plus assumption of the assumed liabilities. A copy of the agreement is available for free at http://bankrupt.com/misc/ROCK_US_fifthavenue_apa.pdf The Debtors are seeking to sell the properties through confirmation of the Plan without conducting a further auction for the sale of the properties. The bid incentives, requested by the Purchasers from the Debtors, include (i) approval of a break-up fee equal to 1% of the purchase price under the purchase agreements, payable in the event that the agreements are terminated for certain limited reasons and a competing transaction is closed; and (ii) certain no-solicitation and overbid protections with appropriate fiduciary "outs". Bank of Scotland plc, which holds mortgages, liens and security interests securing indebtedness of the Debtors in the aggregate amount of at least $303 million, and whose claims are significantly undersecured, has accepted the Plan and consents to the sale of the properties to the Purchasers. Rock US Holdings Inc. filed for Chapter 11 bankruptcy protection on September 15, 2010 (Bankr. D. Del. Case No. 10-12892). Affiliates Rock US Investments LLC (Bankr. D. Del. Case No. 10- 12893), Rock New York (100-104) Fifth Avenue LLC (Bankr. D. Del. Case No. 10-12894), and Rock New York (183 Madison Avenue) LLC (Bankr. D. Del. Case No. 10-12895) filed separate Chapter 11 petitions. Rock US Holdings estimated assets at up to $50,000 debts at $100 million to $500 million as of the Petition Date. Rock US Investments estimated its assets at up to $50,000 and debts at $100 million to $500 million; Rock New York (100-104) estimated its assets at $100 million to $500 million and debts at $100 million to $500 million; and Rock New York (183 Madison) estimated its assets at $100 million to $500 million and debts at $100 million to $500 million as of the Petition Date. Jamie Lynne Edmonson, Esq., Neil B. Glassman, Esq., at Bayard PA, are the Debtors' general bankruptcy counsel. Hogan Lovells US LLP is the Debtors' special corporate and Litigation counsel. Jones Day is the Debtors' special real estate counsel. RONIELIO GARCIA: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: Ronielio Garcia Theresa Garcia 1947 W. 237th Place Torrance, CA 90501 Bankruptcy Case No.: 10-50600 Chapter 11 Petition Date: September 23, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Debtors' Counsel: Jerry A. Chad, Esq. LAW OFFICES OF JERRY A. CHAD P.O. Box 358 Topanga, CA 90290 Tel: (310) 739-4616 Fax: (310) 455-3079 E-mail: jerrychadjd@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-50600.pdf RUSTICK LLC: In-Court Auction Scheduled for Oct. 7 -------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Pennsylvania has approved uniform bidding procedures proposed by Rustick, LLC, in connection with the sale of substantially all of its assets (excluding cash, deposits, a collateral account and the estate's avoidance actions). The Sale Transaction underpins the Debtor's Amended Plan of Reorganization filed with the Court. The Debtor will receive bids until 5:00 p.m. on Sept. 20, 2010, and hold an auction at 3:00 p.m. on Oct. 7, 2010, in the Bankruptcy Court in Erie, Pa. The deadline for filing any Objection to the sale is Sept. 29, 2010. The Debtor intends to seek confirmation of the Plan and approval of the Sale to the highest bidder at a hearing scheduled to be held on Oct. 21, 2010 at 3:00 p.m. Information about the sale can be obtained from: Richard Sterner STERNER CONSULTING 19 Waterfront Drive Pittsburgh, PA 15222 Telephone: (412) 562-0891 Fax: (412) 562-0892 E-mail: richardsterner@msn.com Copies of the court-approved bidding procedures can be obtained from the Debtor's lawyers: Lawrence C. Bolla, Esq. Nicholas R. Pagliari, Esq. QUINN, BUSECK, LEEMHUIS, TOOHEY, & KROTO, INC. 2222 West Grandview Blvd. Erie, PA 16506 Fax: (814) 835-2076 E-mail: lbolla@quinnfirm.com npagliari@quinnfirm.com - and - Jennifer L. Maleski, Esq. Peter C. Hughes, Esq. DILWORTH PAXSON LLP 1500 Market Street, Suite 3500E Philadelphia, PA 19102 Telephone: (215) 575-7000 Fax: (215) 575-7200 E-mail: jmaleski@dilworthlaw.com phughes@dilworthlaw.com Kane, Pa.-based landfill owner and operator Rustick, LLC, sought Chapter 11 protection (Bankr. W.D. Pa. Case No. 10-10902) on May 13, 2010. The Company estimated its assets at less than $10 million and its debts at more than $50 million at the time of the filing. The United States Trustee has appointed an official committee of unsecured creditors in the case. The Committee has retained Robert S. Bernstein, Esq., and Kirk B. Burkley, Esq., at Bernstein Law Firm, P.C. as counsel; and James W. Fox and Executive Sounding Board Associates, Inc., as its Financial Advisor. Merrill Lynch is Rustick's largest creditor and provided post-petition financing. SAXBY'S COFFEE: Pa. Court Denies Confirmation of Amended Plan ------------------------------------------------------------- The Hon. Eric L. Frank denied confirmation of the Second Amended Chapter 11 Plan of Reorganization of Saxby's Coffee Worldwide, LLC, holding that the general unsecured creditors would receive only a modest distribution under the Plan and have rejected the Plan. The parties that would be restrained from proceeding against the Releasees under the Plan would receive little or no distribution under the Plan and would be precluded from asserting their claims against the Releasees. If the Plan were confirmed, the rights of the refrained parties effectively would be nullified without any commensurate benefit to them under the Plan. The Court held a confirmation hearing on August 20 and 23, 2010. The U.S. Trustee and creditors Marshall Katz, Greg Bayer and John Larson objected to the Plan. The Debtor requested that the Plan be confirmed under 11 U.S.C. Sec. 1129(b). The Debtor asserted that a proposed contribution to the Debtor of $250,000 by its members Joseph Grasso and Kevin Meakim is sufficient to satisfy the "new value" corollary/ exception to the absolute priority rule and to permit the court to find that the Plan is "fair and equitable" within the meaning of 11 U.S.C. Sec. 1129(b)(2)(B). The centerpiece of the Debtor's reorganization strategy is contained in Paragraph V.B.7 of the Plan. Paragraph V.B.7. effectively would enjoin any party that has asserted or could assert a claim against the Debtor from, inter alia, commencing or continuing any litigation against Nicholas Bayer, the Debtor's chief executive officer, Messrs. Grasso and Meakim and Coffee Shops International, LLC, a company also controlled by Messrs. Grasso and Meakim, based on claims arising before the commencement of the Debtor's bankruptcy case, including the enforcement of any judgments against the Releasees. CSI is in the business of roasting and distributing coffee beans. "While the Debtor's reorganization goals are worthy, the end does not justify the means. To confirm the Plan proposed here would establish an unprecedented, unwarranted and inequitable expansion to any exception to 11 U.S.C. Sec. 524(e) that may exist," Judge Frank held A hearing on the U.S. Trustee's Motion to Dismiss or Convert the case is scheduled on September 29, 2010. Judge Frank said the Debtor during the hearing can advise the court whether it wishes propose and seek confirmation of a further amended chapter 11 plan. If the U.S. Trustee wishes to press her motion, the Debtor will need to make some showing regarding the likely terms and the feasibility of any amended plan it might propose. Such a showing is necessary in light of the evidence the Debtor presented at the confirmation hearing that Bancorp Bank's exit financing was necessary and was conditioned on the confirmation of a plan containing third party release, a condition that cannot be satisfied. A copy of the Court's memorandum is available at" http://www.leagle.com/unsecure/page.htm?shortname=inbco20100922613 Conshohocken, Pennsylvania-based Saxby's Coffee Worldwide, LLC, is a 37-store chain that operates 14 stores in Pennsylvania, where it acquired parts of the former Bucks County Coffee Co. in 2008, along with others scattered from Washington and Atlanta to California. The Company filed for Chapter 11 bankruptcy protection on August 5, 2009 (Bankr. E.D. Pa. Case No. 09-15898). Paul J. Winterhalter, Esq., assists the Company in its restructuring efforts. The Company estimated up to $50,000 in assets and $1 million to $10 million in debts when it filed for bankruptcy. SCHOLASTIC CORPORATION: Repurchase Won't Affect Moody's Ba2 Rating ------------------------------------------------------------------ Moody's Investors Service said Scholastic Corporation's Ba2 Corporate Family Rating and positive rating outlook are not affected by its announced intention to repurchase up to $150 million of common stock through a tender offer or its reported earnings decline for the first quarter. The last rating action was on February 26, 2010, when Moody's changed Scholastic's rating outlook to positive from stable and affirmed the Ba2 CFR as well as the company's other ratings. Scholastic's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (iii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside Scholastic's core industry and believes Scholastic's ratings are comparable to those of other issuers with similar credit risk. Scholastic, headquartered in New York, N.Y., is a publisher and distributor of children's books, classroom and professional magazines, educational technology, and instructional materials, with operations in the United States, Canada, the United Kingdom, Australia, New Zealand and Southeast Asia. Revenue for the LTM ended August 31, 2010, was approximately $1.9 billion. SCOTTSDALE DOWNTOWN: Case Summary & 5 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Scottsdale Downtown Investments, LLC 6820 E. 5th Street Scottsdale, AZ 85251 Tel: (602) 307-0837 Bankruptcy Case No.: 10-30709 Chapter 11 Petition Date: September 24, 2010 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Redfield T. Baum, Sr. Debtor's Counsel: Mark J. Giunta, Esq. LAW OFFICE OF MARK J. GIUNTA 1413 N. 3rd Street Phoenix, AZ 85004-1612 Tel: (602) 307-0837 Fax: (602) 307-0838 E-mail: mark.giunta@azbar.org Scheduled Assets: $1,196,747 Scheduled Debts: $1,348,157 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-30709.pdf The petition was signed by Thomas Anderson, managing member. SEA ISLAND: Creditors Can Vote for Ch. 11 Reorganization Plan ------------------------------------------------------------- Russ Bynum at The Associated Press reports that a federal bankruptcy judge approved the disclosure statement explaining the Chapter 11 plan of Sea Island Company. Creditors must vote whether to approve or reject the Company's plan by Oct. 29, 2010. The Debtor will present the Plan for confirmation on Nov. 4, 2010. Under the Plan, the Company is selling its holdings for about $197.5 million. Lenders including Synovus Bank, Bank of America and Bank of Scotland would recoup about $180 million, less than a third of outstanding loans. Unsecured creditors would be paid shares from a pool totaling just $3 million. They include former Sea Island president Dennie McCrary, who is owed about $27 million. The Company estimates that unsecured creditors, at best, would receive about 3 cents per dollar owed to them. The AP relates the Company has already agreed to sell its four resorts, three golf courses, two private clubs and other properties for $197.5 million to a joint venture managed by Oaktree Capital Management LP of Los Angeles and Avenue Capital Group of New York. 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. 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. 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. SECURITY STATE: Weiss Gives Iowa Bank Very Weak E Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to Security State Bank based in Hubbard, Iowa 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 June 30, 2010, the institution's balance sheet showed $57.8 million in assets. SECURITY STATE: Weiss Gives Iowa Bank Very Weak E+ Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Security State Bank based in Radcliffe, Iowa 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 June 30, 2010, the institution's balance sheet showed $44.7 million in assets. SEMGROUP LP: Court Declines to Subordinate Harvest's Claims ----------------------------------------------------------- WestLaw reports that SemGroup, L.P., and SemGroup Holdings, L.P., failed to carry their burden of proving that a non-debtor limited partnership in which a creditor had purchased an equity interest that allegedly resulted in the damages forming the basis of its proof of claim qualified as an "affiliate" of the debtor, as required for the creditor's claim to be subject to mandatory subordination as one for damages arising from the purchase or sale of a security of the debtor or an affiliate of the debtor. While the limited partnership, whose general partner was wholly owned by one of the debtors, was in the same family of businesses as the debtor and might colloquially qualify as an "affiliate," there was no evidence that its business was operated by the debtor pursuant to a lease or operating agreement, or that it otherwise satisfied the Code definition of an "affiliate." In re SemCrude, L.P., --- B.R. ----, 2010 WL 2822467 (Bankr. D. Del.) (Shannon, J.). The Debtors objected to four proofs of claim filed by Harvest Fund Advisors, arguing that Harvest's claims should be subordinated pursuant to 11 U.S.C. Sec. 510(b) because section 510(b), by its plain terms, did not apply to the Claims. The Honorable Brendan Linehan Shannon disagreed. About SemGroup, L.P. SemGroup, L.P. -- http://www.semgrouplp.com/-- is a midstream service company that provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids and refined products. Services include purchasing, selling, processing, transporting, terminalling and storing energy. SemGroup serves customers in the United States, Canada, Mexico and Wales. SemGroup L.P. and its debtor-affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 08-11525) on July 22, 2008. John H. Knight, Esq., L. Katherine Good, Esq. and Mark D. Collins, Esq., at Richards Layton & Finger; Harvey R. Miller, Esq., Michael P. Kessler, Esq., and Sherri L. Toub, Esq., at Weil, Gotshal & Manges LLP; and Martin A. Sosland, Esq., and Sylvia A. Mayer, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. Kurtzman Carson Consultants L.L.C. is the Debtors' claims agent. The Debtors' financial advisors are The Blackstone Group L.P. and A.P. Services LLC. Margot B. Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber Silverstein, Esq., at Potter Anderson & Corroon LLP, represent the Debtors' prepetition lenders. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc., is the appointed monitor of SemCanada Crude Company and its affiliates' reorganization proceedings before the Canadian Companies' Creditors Arrangement Act. SemGroup L.P.'s consolidated, unaudited financial conditions as of June 30, 2007, showed $5,429,038,000 in total assets and $5,033,214,000 in total debts. SemGroup, LP, won confirmation from the Bankruptcy Court of its Fourth Amended Plan of Reorganization on October 28, 2008. The Plan, distributing more than $2.5 billion in value to stakeholders, was declared effective on November 30, 2008. SEMGROUP LP: Former Execs to Pay $30 Million to Settle Suit ----------------------------------------------------------- Bankruptcy Law360 that five former SemGroup, L.P., executives have agreed to fork over $30 million to settle breach of contract and other charges related to the unauthorized sale of crude oil options that led to the now-solvent petroleum distributor's bankruptcy. Bettina Whyte, the trustee for the SemGroup litigation trust, asked for approval of the settlement in a motion filed Wednesday in the U.S. Bankruptcy Court for the District of Delaware, according to Law360. About SemGroup, L.P. SemGroup, L.P. -- http://www.semgrouplp.com/-- is a midstream service company that provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids and refined products. Services include purchasing, selling, processing, transporting, terminalling and storing energy. SemGroup serves customers in the United States, Canada, Mexico and Wales. SemGroup L.P. and its debtor-affiliates filed for Chapter 11 protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-11525). John H. Knight, Esq., L. Katherine Good, Esq. and Mark D. Collins, Esq., at Richards Layton & Finger; Harvey R. Miller, Esq., Michael P. Kessler, Esq., and Sherri L. Toub, Esq., at Weil, Gotshal & Manges LLP; and Martin A. Sosland, Esq., and Sylvia A. Mayer, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. Kurtzman Carson Consultants L.L.C. is the Debtors' claims agent. The Debtors' financial advisors are The Blackstone Group L.P. and A.P. Services LLC. Margot B. Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber Silverstein, Esq., at Potter Anderson & Corroon LLP, represent the Debtors' prepetition lenders. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc., is the appointed monitor of SemCanada Crude Company and its affiliates' reorganization proceedings before the Canadian Companies' Creditors Arrangement Act. The CCAA stay expires on November 21, 2008. SemGroup L.P.'s consolidated, unaudited financial conditions as of June 30, 2007, showed $5,429,038,000 in total assets and $5,033,214,000 in total debts. SemGroup, LP, won confirmation from the Bankruptcy Court of its Fourth Amended Plan of Reorganization on October 28, 2008. The Plan, which distributes more than $2.5 billion in value to its stakeholders, was declared effective November 30. SHORE BANK: Weiss Gives Va. Bank Very Weak E+ Rating ---------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Shore Bank based in Onley, Va. 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 June 30, 2010, the institution's balance sheet showed $335.9 million in assets. SIX FLAGS: Receives $41-Mil. Payout From Dick Clark Stake --------------------------------------------------------- Kevin Kingsbury, writing for Dow Jones Newswires, reports that Six Flags Entertainment Corp. said it has received $41 million as part of its stake in dick clark productions, producer of television shows such as the Golden Globe awards. The company was sold in 2002 by an investor group, while Six Flags bought a 40% stake in 2007 as a private-equity firm co-founded by then-Six Flags Chairman Daniel Snyder acquired the rest. The total purchase price was $175 million. Dow Jones notes the reason for the $41 million payout wasn't disclosed in a short statement, but Six Flags said it will retain its equity stake in dick clark productions. A company spokesman wasn't immediately available for comment. About Six Flags Headquartered in New York City, Six Flags, Inc., is the world's largest regional theme park company with 20 parks across the United States, Mexico and Canada. Six Flags filed for Chapter 11 protection on June 13, 2009 (Bankr. D. Del. Lead Case No. 09-12019). Paul E. Harner, Esq., Steven T. Catlett, Esq., and Christian M. Auty, Esq., at Paul, Hastings, Janofsky & Walker LLP in Chicago, Illinois, served as the Debtors' lead counsel. Daniel J. DeFranceschi, Esq., and L. Katherine Good, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, served as local counsel. Cadwalader Wickersham & Taft LLP, served as special counsel. Houlihan Lokey Howard & Zukin Capital Inc., served as financial advisors, while KPMG LLC served as accountants. Kurtzman Carson Consultants LLC served as claims and notice agent. As of March 31, 2009, Six Flags had $2,907,335,000 in total assets and $3,431,647,000 in total liabilities. Judge Christopher S. Sontchi on April 29, 2010, confirmed the Modified Fourth Amended Plan of Reorganization of Six Flags Inc. and its debtor affiliates. On April 30, the Debtors consummated their restructuring through a series of transactions contemplated by the Plan and the Plan became effective pursuant to its terms. On the Effective Date, Six Flags, Inc. changed its corporate name to "Six Flags Entertainment Corporation." SOUTH COUNTY: Weiss Gives Calif. Bank Very Weak E Rating -------------------------------------------------------- Weiss Ratings has assigned its "very weak" E rating to South County Bank, N.A. based in Irvine, Calif. 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 June 30, 2010, the institution's balance sheet showed $200.6 million in assets. SOUTHWEST CORPORATE: Undercapitalized; Placed in Conservatorship ---------------------------------------------------------------- The National Credit Union Administration on Friday assumed control of three undercapitalized corporate credit unions, announced a plan to isolate the impaired assets in the corporate credit union system, and finalized a set of stronger regulations -- key elements in its efforts to resolve the financial challenges facing corporate credit unions without disrupting consumer service. "The steps NCUA has taken [Fri]day represent a comprehensive solution to the problems afflicting the corporate credit union system," said NCUA Chairman Debbie Matz. "Just as important, this plan puts consumers first and ensures that there will be no loss to taxpayers. This plan also provides an orderly transition to a new regulatory regime for corporates. In addition, we are affording local credit unions greater choice in selection of their liquidity and back office provider." The Temporary Corporate Credit Union Share Guarantee Program remains fully in effect for the entire corporate system through December 31, 2012. In addition, NCUA continues to insure credit union and consumer deposits up to $250,000 per account. Setting the plan into motion required conservatorship of three additional corporate credit unions that are not viable: -- Members United Corporate Federal Credit Union of Warrenville, Illinois; -- Southwest Corporate Federal Credit Union of Plano, Texas; and -- Constitution Corporate Federal Credit Union of Wallingford, Connecticut. In March 2009, U.S. Central Corporate Federal Credit Union of Lenexa, Kansas, and Western Corporate Federal Credit Union of San Dimas, California, were also placed into conservatorship. In a conservatorship, NCUA replaces an institution's management and board, operating it in a way that protects taxpayers' and members' interests during its orderly transition and resolution. The plan to address the impaired assets and resolve these troubled institutions involves several interrelated steps: -- Isolating the impaired securities (legacy assets) held by these five corporate credit unions; -- Repackaging the legacy assets into new securities with an NCUA guarantee backed by the unconditional full faith and credit of the United States government; -- Issuing the new securities to investors on the open market; -- Transferring the corporates' still-valuable assets to newly created "bridge banks" that will allow for continued operations; and -- Transitioning operations now under NCUA conservatorship over a target of 24 months to other service providers. NCUA has consulted with the Treasury, Federal Reserve and other federal financial regulators in developing these plans, and will continue to work closely with these agencies to ensure the orderly resolution of conserved corporates, the effective implementation of the steps outlined, and the continued smooth operation of the credit union system. In particular, the life of the Temporary Corporate Credit Union Stabilization Fund has been extended to June 30, 2021, with the concurrence of Treasury Secretary Timothy F. Geithner. This will provide the NCUA Board with important flexibility in mitigating the impact of the annual assessments to credit unions for the costs over this period. It should be noted that the costs will be borne exclusively by the credit union industry, and will not result in any loss to taxpayers. NCUA adopted a new set of regulatory reforms aimed at strengthening the corporate credit union system. The new corporate regulation (NCUA Rules and Regulations, Part 704): -- Implements stronger capital requirements and establishes prompt corrective action measures for corporate credit unions; -- Establishes clear concentration limits on investments that will require corporate credit unions to better diversify their portfolios; -- Improves asset-liability management requirements to avoid liquidity and interest rate risks; and -- Raises governance standards to improve levels of experience and expertise on corporate boards. "NCUA's action to deal with the troubled institutions and the impaired securities on the corporates' books -- together with reforms to the NCUA regulation that governs the corporate system -- will create stronger safeguards for the nation's entire credit union system," said Chairman Matz. "The credit union community has long hoped to see a coordinated, market-based, least-cost solution to the corporate crisis, and we have delivered that [Fri]day." NCUA Board Member Gigi Hyland noted, "The regulatory reforms and plan to resolve the troubled institutions and their impaired assets are key steps to allow the credit union system to move forward. The corporate rule is stronger thanks to the 815 commenters who provided NCUA feedback. And, these actions reflect the key principle that has guided NCUA's efforts -- finding a solution that minimizes, as much as possible, the cost to the credit union system while spreading that cost out over time." NCUA Board Member Michael Fryzel commented that "NCUA, along with the entire credit union industry, has struggled with the corporate problem for over two years. [Fri]day's Board actions culminate months of analysis, review and planning and establish a regulatory framework and viable options that will prevent a reoccurrence of this crisis and give credit unions a choice for the future." Chairman Matz also emphasized that the future of the remainder of the corporate credit union system will be determined by the private sector's judgment, not by any government dictate. "The leaders of the nation's consumer credit unions must make the strategic business decisions about whether to recapitalize some of the remaining, viable corporates, switch to a different corporate, or seek services at some other type of institution," said Chairman Matz. "NCUA is confident that the new framework will enable the choices ahead to be made in the context of strong and safe credit union operations. The credit union industry, and the 90 million consumers it serves, deserve nothing less." * * * The Wall Street Journal's Mark Maremont and Victoria McGrane report that the three credit unions seized last week had a total of $19.67 billion in assets as of July 2010: Assets ------ Members United Corporate Federal Credit Union $8.93 billion Southwest Corporate Federal Credit Union $9.52 billion Constitution Corporate Federal $1.22 billion Credit Union The two credit unions seized in March 2009 had these assets: Assets ------ U.S. Central Corporate Federal Credit Union $34 billion Western Corporate Federal Credit Union $23 billion NCUA is the independent federal agency that regulates, charters and supervises federal credit unions. With the backing of the full faith and credit of the U.S. government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of over 90 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. SPIVEY STATE: Weiss Gives Ga. Bank Very Weak E+ Rating ------------------------------------------------------ Weiss Ratings has assigned its "very weak" E+ rating to Spivey State Bank based in Swainsboro, Ga. 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 June 30, 2010, the institution's balance sheet showed $89.9 million in assets. SPRINGBOK SERVICES: Fifth Third Processing Purchases Firm's Assets ------------------------------------------------------------------ Dow Jones' DBR Small Cap reports that the payment processing joint venture of Advent International Corp. and Fifth Third Bank continues to be acquisitive, buying certain assets of Springbok Services Inc. Englewood, Colorado-based Springbok Services, Inc., fka The Best Present Company, Inc.; and fdba Springbok Card Processing Services, fka Springbok Card Processing Services, Inc., filed for Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. D. Colo. Case No. 10-25285). Duncan E. Barber, Esq., who has an office in Denver, Colorado, assists the Company in its restructuring effort. The Company estimated its assets and debts at $10,000,001 to $50,000,000. STATE BANK: Weiss Gives Neb. Bank Very Weak E- Rating ----------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to State Bank of Odell based in Odell, Neb. 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 June 30, 2010, the institution's balance sheet showed $24.4 million in assets. SUMMIT BANK: Weiss Gives Wash. Bank Very Weak E+ Rating ------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Summit Bank based in Burlington, Wash. 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 June 30, 2010, the institution's balance sheet showed $156.8 million in assets. SUNRISE BANK: Weiss Gives Calif. Bank Very Weak E+ Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Sunrise Bank based in San Diego, Calif. 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 June 30, 2010, the institution's balance sheet showed $257.1 million in assets. SUSANNE OLSEN: Chapter 15 Case Summary -------------------------------------- Chapter 15 Petitioner: Michala Roepstorff c/o Schian Walker, PLC 3550 N. Central Ave., Suite 1700 Phoenix, AZ 85012 Tel: (602) 277-1501 Chapter 15 Debtor: Susanne Olsen 3209 Dolphin Dr. Lake Havasu City, AZ 86403 Case No.: 10-30246 Petition Date: September 22, 2010 Court: District of Arizona (Yuma) Judge: Randolph J. Haines Petitioner's Counsel: Cody J. Jess, Esq. SCHIAN WALKER, PLC 3550 N. Central Ave., #1700 Phoenix, AZ 85012-2115 Tel: (602) 277-1501 Fax: (602) 297-9633 E-mail: ecfdocket@swazlaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,000 to $10,000,000 Debtor-affiliates that filed separate petitions: Petition Debtor Case No. Date ------ -------- ---- Susanne Olsen SKS 50-201/2010 04/20/2010 Thor Olsen SKS 50-200/2010 04/20/2010 TSO Holding ApS SKS 50-199/2010 04/20/2010 Thor Olsen 10-30231 09/22/2010 TAYLOR BEAN: Submits Plan of Liquidation ---------------------------------------- Taylor, Bean & Whitaker Mortgage Corp., submitted to the U.S. Bankruptcy Court for the Middle District of Florida a Plan of Liquidation and an explanatory Disclosure Statement. The Plan Proponents are the Debtors and the Official Committee of Unsecured Creditors. The Debtors will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, the Plan contemplates the formation of a single liquidating trust for the benefit of creditors, which will succeed to all assets of the Debtors. The Plan trustee will, among other things, liquidate the non-cash assets transferred to the plan trust, reconcile claims against the Debtors, make distributions to holders of allowed claims, and wind down the Chapter 11 cases and the Debtors' respective estates. There are no guaranteed recovery and there are no guaranteed amounts of recovery for any holder of claim. There will be no recovery for any holder of an interest. In addition, the Plan provides for the establishment of a cash reserve for disputed claims within any particular class. The process of distributing cash under the Plan will be completed over time. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/TaylorBean_DS.pdf The Debtors are represented by: Russel M. Blain, Esq. Edward J. Peterson, III, Esq. STITCHTER, RIEDEL, BLAIN & PROSSER, P.A. 110 East Madison Street, Suite 200 Tampa, FL 33602 Tel: (813) 229-0144 Fax: (813) 229-1811 E-mail: rblain@srbp.com epeterson@srbp.com Jeffrey W. Kelly, Esq. J. David Dantzler, Jr., Esq. TROUTMAN SANDERS LLP 600 Peachtree Street, Suite 5200 Atlanta, GA 30308 Tel: (404) 885-3358 Fax: (404) 885-3995 E-mail: jeff.kelly@troutmansanders.com david.dantzler@troutmansanders.com About Taylor Bean Taylor, Bean & Whitaker Mortgage Corp. grew from a small Ocala- based mortgage broker to become one of the largest mortgage bankers in the United States. In 2009, Taylor Bean was the country's third largest direct-endorsement lender of FHA-insured loans of the largest wholesale mortgage lenders and issuer of mortgage backed securities. It also managed a combined mortgage servicing portfolio of approximately $80 billion. The company employed more that 2,000 people in offices located throughout the United States. Taylor Bean filed for Chapter 11 bankruptcy protection August 24 (Bankr. M.D. Fla. Case No. 09-07047). Taylor Bean filed the Chapter 11 petition three weeks after federal investigators searched its offices. The day following the search, the Federal Housing Administration, Ginnie Mae and Freddie Mac prohibited the company from issuing new mortgages and terminated servicing rights. Taylor Bean estimated more than $1 billion in both assets and liabilities in its bankruptcy petition. Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA, in Tampa, Florida, represents the Debtor. Troutman Sanders LLP is special counsel. BMC Group, Inc., serves as claims agent. THOR OLSEN: Chapter 15 Case Summary ----------------------------------- Chapter 15 Petitioner: Michala Roepstorff c/o Schian Walker, PLC 3550 N. Central Ave., Suite 1700 Phoenix, AZ 85012 Tel: (602) 277-1501 Chapter 15 Debtor: Thor Olsen 3209 Dolphin Dr. Lake Havasu City, AZ 86403 Chapter 15 Case No.: 10-30231 Chapter 15 Petition Date: September 22, 2010 Court: District of Arizona (Yuma) Judge: Randolph J. Haines Petitioner's Counsel: Cody J. Jess, Esq. SCHIAN WALKER, PLC 3550 N. Central Ave., #1700 Phoenix, AZ 85012-2115 Tel: (602) 277-1501 Fax: (602) 297-9633 E-mail: ecfdocket@swazlaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,000 to $10,000,000 Debtor-affiliates that filed separate petitions: Petition Debtor Case No. Date ------ -------- ---- Thor Olsen SKS 50-200/2010 04/20/2010 Susanne Olsen SKS 50-201/2010 04/20/2010 TSO Holding ApS SKS 50-199/2010 04/20/2010 TIDELANDS BANK: Weiss Gives S.C. Bank Very Weak E- Rating --------------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Tidelands Bank based in Mount Pleasant, S.C. 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 June 30, 2010, the institution's balance sheet showed $582.4 million in assets. TOD GRISWOLD: Case Summary & 10 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Tod William Griswold 3340 Durand Drive Los Angeles, CA 90068 Bankruptcy Case No.: 10-50520 Chapter 11 Petition Date: September 22, 2010 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Barry Russell Debtor's Counsel: Leonard Pe�a, Esq. PE�A & SOMA, APC 555 W Fifth St 31st Fl Los Angeles, CA 90013 Tel: (213) 996-8336 E-mail: lpena@penalaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-50520.pdf TPC GROUP: Moody's Affirms 'B1' Corporate Family Rating ------------------------------------------------------- Moody's Investors Service affirmed TPC Group LLC's B1 Corporate Family Rating, and assigned a B1 rating to the proposed senior secured notes due 2017. The $325 million of proceeds from the notes, combined with $60 million of existing liquidity sources, will refinance the company's $269 million term loan and fund a distribution to parent company TPC Group Inc. for general corporate purposes, which may include dividends, stock repurchases or other returns of capital to its shareholders. The outlook remains stable. Ratings Rationale TPC's transaction will secure attractive financing for the company and allow it to reward its shareholders at a time when the company is benefiting from the returns from recent capital investments, generating positive free cash flow and not engaged in significant expansionary capital projects. The financing will extend TPC's debt maturity from 2013 to 2017, eliminate the need for debt amortization payments, and possibly improve flexibility under certain covenants and terms. The transactions, including the anticipated $105.5 million distribution, will consume approximately $35 million of cash and increase balance sheet debt by $80 million, adding approximately 0.8 turns of leverage (as of June 30, 2010, pro forma for the transactions and including Moody's adjustments). Pro forma for the transactions, TPC would have a debt / EBITDA ratio of 4.4x as of June 30, 2010. The affirmation of TPC's CFR reflects the modest leverage TPC currently has for its rating category and Moody's expectation that TPC will reduce leverage by growing its EBITDA and repaying the draw down under the revolver. TPC's B1 CFR reflects its narrow commodity based product line, large market shares within its niche product lines where it is either the largest or second largest supplier, concentrated operational and geographical profile and modest EBITDA margins. Over 70% of its sales volumes are contractually insulated from fluctuations in feedstock, sales price and energy price fluctuations to protect margins. The company's profits have rebounded from the trough profitability levels of FY2009, but remain below FY2008 levels, when it benefited from higher crude oil prices. TPC recently announced that its CEO plans to retire and the Board of Directors is actively engaged in the succession planning process. The company stated that the current CEO is expected to continue in his roles until the earlier of December 31, 2011 or the naming of his successor. This raises concerns about further event risk. Moody's also note that should a change in control occur, a provision in the proposed notes gives investors the opportunity to sell their notes to the company at a price of 101. The ratings are summarized below. TPC Group LLC Rating assigned: * $325mm sr sec notes due 2017 -- B1 (LGD4, 57%) Ratings affirmed: * Corporate Family Rating -- B1 * Probability of Default Rating -- B1 Ratings to be withdrawn: * Gtd Sr Sec Term Loan due 2013 - B1 (LGD4, 54%) from B1 (LGD4, 53%) Outlook: Stable The rating on the existing term loan will be withdrawn after it is repaid with the proceeds from the notes offering. The stable outlook reflects Moody's expectations for improvement in revenues and profitability for FY2011, and positive free cash flow. The rating could be upgraded, should the company generate free cash flow to debt of 7%, its debt to EBITDA fell below 4x on a sustained basis and industry conditions be supportive of an upgrade. Moody's most recent announcement concerning the ratings for TPC was on May 13, 2010. At that time, Moody's withdrew the B1 rating assigned to TPC's proposed amended and extended term loan due 2016. That action followed TPC's cancellation of the transaction to amend and extend its existing term loan due 2013. TPC Group LLC is a processor of crude C4 hydrocarbons (primarily butadiene, butene-1, isobutylene), differentiated isobutylene derivatives and nonene and tetramer. For its product lines, TPC is either the largest or second largest independent North American producer. The company operates three Texas-based manufacturing facilities in Houston, Baytown and Port Neches. Revenues were $1.7 billion for the twelve months ended June 30, 2010. TPC GROUP: S&P Assigns Corporate Credit Rating at 'B+' ------------------------------------------------------ Standard & Poor's Ratings Services said that it assigned a 'B+' corporate credit rating to Houston-based TPC Group LLC (formerly Texas Petrochemicals L.P.). The outlook is stable. At the same time, S&P assigned a 'B+' issue-level rating (same as the corporate credit rating) to TPC's proposed $325 million senior secured notes due 2017. The recovery rating is '4', indicating S&P's expectation of average (30%-50%) recovery in the event of a payment default. The rating is based on preliminary terms and conditions. "The rating on publicly listed TPC reflects its narrow product range of commodity compounds, concentration of revenue and earnings from a few customers and products, cyclicality in its key markets, modest operating margins, and susceptibility to operating disruptions exacerbated by limited geographic diversity," said Standard & Poor's credit analyst Ket Gondha. "These risk factors are partially offset by credit metrics that support the rating -- albeit without the benefit of clearly defined financial policies - - the company's favorable competitive position with leading market shares in key products including butadiene, and contracts with suppliers and customers that offer it some margin protection." TRANS PACIFIC: Weiss Gives Calif. Bank Very Weak E+ Rating ---------------------------------------------------------- Weiss Ratings has assigned its "very weak" E+ rating to Trans Pacific National Bank based in San Francisco, Calif. 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 June 30, 2010, the institution's balance sheet showed $160.5 million in assets. TREATY OAK: Weiss Gives Tex. Bank Very Weak E- Rating ----------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Treaty Oak Bank based in Austin, Tex. 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 June 30, 2010, the institution's balance sheet showed $118.6 million in assets. TRICO MARINE: Committee Taps Kasowitz Benson as Counsel ------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Trico Marine Services, Inc., et al., asks the U.S. Bankruptcy Court for the District of Delaware for permission to employ Kasowitz, Benson, Torres & Friedman LLP as its counsel. KBTF will, among other things: -- provide the Committee with legal advice with respect to its rights, duties and powers as an official committee appointed under Section 1102 of the Bankruptcy Code; -- assist the Committee in investigating the acts, conduct, assets, liabilities and financial condition of the Debtors, the operation of the Debtors' businesses and the desirability of the continuance of the businesses and any other matter relevant to the Chapter 11 cases; and -- take all necessary actions to protect and to preserve the interests of unsecured creditors during the administration of the Chapter 11 cases, including, as applicable, prosecuting and defending actions on behalf of the estates. The hourly rates of KBTF's personnel are: Partners $600 - $1,000 Special Counsel $525 - $750 Associates $250 - $675 Staff Attorneys $235 - $390 Paralegals $135 - $225 To the best of the Committee's knowledge, KBTF is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The Committee proposes an October 6 hearing on the employment of KBTF as counsel. 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 assets and $353,606,467 in 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. 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. TRIZETTO GROUP: Moody's Affirms Corporate Family Rating at 'B1' --------------------------------------------------------------- Moody's Investors Service affirmed the B1 Corporate Family Rating of The TriZetto Group, Inc., and maintained a stable ratings outlook in connection with the Company's plans to repay its $187.5 million of outstanding senior notes due in 2016. The Company is pursuing an amendment to its existing credit agreement to facilitate the repayment of junior debt, and subsequently plans to raise approximately $100 million of incremental Term Loan C through exercise of the accordion feature in its existing credit agreement. The proceeds from the incremental term loans and approximately $107 million of existing cash will be used to redeem the senior notes and pay the call premium and fees and expenses for the transaction. As part of the ratings action, Moody's lowered TriZetto's probability of default rating to B2 from B1, and the ratings for its senior secured credit facilities to B1 from Ba3, reflecting the resulting change in capital structure following the transaction. Pro forma for the redemption of senior notes, TriZetto's debt structure will essentially comprise of the senior secured bank debt only, which previously received support from the structurally subordinate senior notes. The outlook for ratings remains stable. Moody's affirmed these rating(s): * Corporate Family Rating -- B1 Moody's lowered these rating(s): * Probability of Default Rating to B2 from B1 * $65 million senior secured revolving credit facility due 2014 to B1 (LGD3, 33%) from Ba3 (LGD3, 34%) * $71 million senior secured Term Loan A facility due 2014 to B1 (LGD3, 33%) from Ba3 (LGD3, 34%) * $315 million senior secured Term Loan B facility due 2015 to B1 (LGD3, 33%) from Ba3 (LGD3, 34%) Moody's assigned these rating(s): * Proposed $100 million senior secured Term Loan C facility due 2015 -- B1 (LGD3, 33%) Ratings Rationale Moody's estimates the proposed transaction, coupled with the anticipated repayment of approximately $38 million of subordinated notes to its parent, will reduce TriZetto's LTM 2Q 2010 Debt-to- EBITDA leverage by approximately one turn to 3.9x (incorporating Moody's standard analytical adjustments including 25% of debt attribution to the preferred stock at intermediate holding company). Moody's believes that TriZetto's Corporate Family Rating is solidly positioned in the B1 rating category and reflects the Company's good business execution, which the Company has demonstrated with sustained revenue and EBITDA growth and EBITDA margin expansion, including through a weak capital spending environment during a severe recession and in the midst of regulatory uncertainly in anticipation of the healthcare reform legislation. The B1 rating also reflects TriZetto's moderate leverage, strong free cash flow generation relative to debt, and its good market position as a provider of information technology solutions to the healthcare industry. The B1 CFR is additionally supported by the favorable growth trends in the healthcare information technology industry, the Company's stable customer base, its unique investor and customer relationship with the BlueCross BlueShield of Tennessee, and Regence, and a good backlog of revenues under contract, which provides stability and visibility of revenue and cash flows. In Moody's view, TriZetto's moderate financial risk affords the Company ample cushion to pursue its expansion strategy, including small acquisitions, to exploit the additional revenue opportunity in the healthcare information technology industry, which the rating agency expects to grow rapidly driven by the growth in the U.S. healthcare industry and the need for improving productivity. TriZetto's B1 CFR is constrained by the Company's moderate scale and its highly competitive, albeit largely fragmented, operating environment. In addition, the rating reflects the risk that the sponsor's interests may not be aligned with those of debt holders, and in Moody's view, further de-leveraging potential could be consumed by shareholder-oriented financial policies. The stable outlook considers the potential for improved cash flow generation driven by revenue growth in mid single-digit percentages and additional EBITDA margin expansion reflecting operating leverage in the business. The ratings or the outlook could experience upward pressure if TriZetto's revenues grow organically at mid single-digit rates, and its scale and profitability increase, such that it drives more robust earnings and cash flow from operations. Upward rating pressure could develop if the Company demonstrates it can accommodate its growth strategy and fiscal objectives, including potential debt-financed shareholder returns, and still sustain a moderately levered balance sheet with Total Debt/EBITDA (Moody's adjusted) of less than 4.0x. While not anticipated in the near term, TriZetto's ratings could be downgraded if the Company's financial policies become oriented towards shareholders, or the Company undertakes a transforming acquisition which increases execution risks, such that Debt-to- EBITDA leverage increases above 5.0x. The last rating action on TriZetto took place on July 24, 2008 when Moody's assigned a B1 corporate family rating and Ba3 ratings to its senior secured credit facilities. Headquartered in Greenwood Village, Colorado, TriZetto is a provider of information technology solutions to the healthcare industry. TRUC NGUYEN: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Joint Debtors: Truc C. Nguyen Binh C. Phung 155 Canterbury Avenue Daly City, CA 94015 Bankruptcy Case No.: 10-33720 Chapter 11 Petition Date: September 23, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Francisco) Judge: Dennis Montali Debtors' Counsel: Drew Henwood, Esq. LAW OFFICES OF DREW HENWOOD 41 Sutter Street, #621 San Francisco, CA 94104 Tel: (415) 362-7412 E-mail: dfhenwood@aol.com Scheduled Assets: $985,792 Scheduled Debts: $1,888,149 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb10-33720.pdf TRUMP ENTERTAINMENT: Hearing on Settlement Deal Set for October 5 ----------------------------------------------------------------- The Hon. Judith H. Wizmur of the U.S. Bankruptcy Court for the District of New Jersey will convene a hearing on October 5, 2010, at 10:00 a.m. (prevailing eastern time), to consider approval of Trump Entertainment Resorts, Inc., et al.'s global settlement agreement dated as of September 21. Objections, if any, are due September 30, at 4:00 p.m. The agreement was entered among (i) the Reorganized Debtors; (ii) Beal Bank, SSB, in its capacity as administrative and collateral agent under the Prepetition First Lien Credit Agreement and the Amended and Restated Credit Agreement and as a prior lender under the Prepetition First Lien Credit Agreement; and (iii) Icahn Partners LP, Icahn Partners Master Fund LP, Icahn Partners Master Fund II LP, and Icahn Partners Master Fund III LP. The highlights of the Settlement Agreement are: a. Dismissal of All Pending Litigation: The agreement will resolve all pending litigation among the parties, including without limitation, the confirmation appeal, the recharacterization motion, the crda lawsuit, the pending fee objections, the prepayment disallowance motion, well as the intercreditor lawsuit. b. Mutual Releases: c. New Term Loan Amendment: The principal balance of the interest-bearing portion of the New Term Loan as of the Plan Effective Date will be increased by $12.5 million to $346.5 million, and the non-interest bearing portion of the New Term Loan will be eliminated as of the plan Effective Date. The remaining terms of New Term Loan will remain unaltered. d. Allowance of First Lien Lender Claims: The First Lien Lender Claims, including all payments made to the First Lien Lenders during the Chapter 11 Cases, will be allowed and no longer subject to recharacterization. e. Lender Consent to CRDA Transaction: The First Lien Lenders and First Lien Agent consent to the CRDA credit donation transaction pursuant to which the Debtors release a CRDA investment of approximately $27 million and receive approximately $9.6 million in cash, which may be used by the Reorganized Debtors as general working capital. f. Fees and Expenses: All accrued and unpaid fees and expenses, as of the Settlement Effective Date, of the First Lien Lenders and First Lien Agent in connection with the Chapter 11 Cases, the Litigation Matters, or the settlement have been fixed at $15 million. Upon the Settlement Effective Date, the Reorganized Debtors will make a $15 million cash payment to the First Lien Lenders on account of such fees and expenses. In addition, the First Lien Lenders and First Lien Agent have agreed to support the final fee applications filed by the Debtors' professionals well as the Section 503(b) Application filed by the Ad Hoc Committee. About Trump Entertainment Based in Atlantic City, New Jersey, Trump Entertainment Resorts Inc. (NASDAQ: TRMP) -- http://www.trumpcasinos.com/-- owns and operates three casino hotel properties in Atlantic City, New Jersey, which include Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino, and Trump Marina Hotel Casino. The Company conducts gaming activities and provides customers with casino resort and entertainment. Donald Trump is a shareholder of the Company and, as its non- executive Chairman, is not involved in the daily operations of the Company. The Company is separate and distinct from Mr. Trump's privately held real estate and other holdings. Trump Entertainment Resorts, TCI 2 Holdings, LLC, and other affiliates filed for Chapter 11 protection on February 17, 2009 (Bankr. D. N.J., Lead Case No. 09-13654). The Company has tapped Charles A. Stanziale, Jr., Esq., at McCarter & English, LLP, as lead counsel, and Weil Gotshal & Manges as co-counsel. Ernst & Young LLP is the Company's auditor and accountant and Lazard Freres & Co. LLC is the financial advisor. Garden City Group is the claims agent. The Company disclosed assets of $2,055,555,000 and debts of $1,737,726,000 as of December 31, 2008. Trump Hotels & Casino Resorts, Inc., filed for Chapter 11 protection on Nov. 21, 2004 (Bankr. D. N.J. Case No. 04-46898 through 04-46925). Trump Hotels' obtained the Court's confirmation of its Chapter 11 plan on April 5, 2005, and in May 2005, it exited from bankruptcy under the name Trump Entertainment Resorts Inc. TSO HOLDING: Chapter 15 Case Summary ------------------------------------ Chapter 15 Petitioner: Michala Roepstorff c/o Schian Walker, PLC 3550 N. Central Ave., Suite 1700 Phoenix, AZ 85012 Tel: (602) 277-1501 Chapter 15 Debtor: TSO Holding ApS c/o Thor & Susanne Olsen 3209 Dolphin Dr. Lake Havasu City, AZ 86403 Chapter 15 Case No.: 10-30259 Chapter 15 Petition Date: September 22, 2010 Court: District of Arizona (Yuma) Judge: Randolph J. Haines Petitioner's Counsel: Cody J. Jess, Esq. SCHIAN WALKER, PLC 3550 N. Central Ave., #1700 Phoenix, AZ 85012-2115 Tel: (602) 277-1501 Fax: (602) 297-9633 E-mail: ecfdocket@swazlaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,000 to $10,000,000 Debtor-affiliates that filed separate petitions: Petition Debtor Case No. Date ------ -------- ---- TSO Holding ApS SKS 50-199/2010 04/20/2010 Thor Olsen SKS 50-200/2010 04/20/2010 Susanne Olsen SKS 50-201/2010 04/20/2010 Thor Olsen 10-30231 09/22/2010 Susanne Olsen 10-30246 09/22/2010 UAL CORP: Bank Debt Trades at 8% Off in Secondary Market -------------------------------------------------------- Participations in a syndicated loan under which United Air Lines, Inc., is a borrower traded in the secondary market at 91.94 cents- on-the-dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.69 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 February 1, 2014, and carries Moody's B1 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 215 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About UAL Corporation Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for Chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors. Judge Eugene R. Wedoff confirmed a reorganization plan for United on Jan. 20, 2006. The Company emerged from bankruptcy on Feb. 1, 2006. Reorganized UAL Corp. carries a 'B3' corporate family and probability of default ratings from Moody's, 'B-' long term foreign issuer credit rating from Standard & Poor's, and 'CCC' long term issuer default rating from Fitch. At June 30, 2010, UAL had $20.134 billion in total assets against total current liabilities of $8.573 billion, long-term debt of $6.281 billion, long-term obligations under capital leases of $1.01 billion, other liabilities and deferred credits of $7.022 billion, and a stockholders' deficit of $2.756 billion. UAL and Continental Airlines expect to close their merger by Friday, Oct. 1, 2010. Upon the closing of the merger, the holding company, UAL Corporation, will be renamed United Continental Holdings, Inc. UAL CORP: Continental & United Commit to Cleveland -------------------------------------------------- Continental Airlines (NYSE: CAL) and UAL Corporation (NASDAQ: UAUA), the holding company whose primary subsidiary is United Airlines, reaffirmed their commitment to Cleveland, agreeing to maintain specified levels of air service at Cleveland Hopkins International Airport when the two airlines combine their global networks upon closing of their proposed merger. Continental and United made the commitment in an agreement with the Ohio Attorney General, whose office has been reviewing the merger. The carriers believe the merger, which has been cleared by the U.S. Department of Justice and European Commission, will enhance competition and entered into the agreement in the interests of bringing about an expeditious completion of the Attorney General's review. Continental and Cleveland have a long partnership and this agreement is evidence that the partnership will continue after the merger. The carriers believe the merger will deliver air service for Cleveland and its other hubs that will be far superior to the service that the carriers could have provided if they had not combined. Cleveland and Northeast Ohio customers will benefit from same-carrier service to more than 350 destinations worldwide, improved flight connections across a combined global network and a more valuable frequent flyer program. United and Continental would like to acknowledge the efforts of the Ohio Attorney General Richard Cordray, Mayor Frank Jackson and the Cleveland Air Service Working Group, which the Mayor co-chairs along with Bill Christopher, chairman of the Greater Cleveland Partnership; and the support of Governor Ted Strickland; U.S. Senators Sherrod Brown and George Voinovich, and members of the Northeast Ohio Congressional Delegation. Continental and United announced an all-stock merger of equals on May 3, 2010. Both companies have scheduled special stockholder votes on the merger on Sept. 17, 2010. About UAL Corporation Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The Company filed for Chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors. Judge Eugene R. Wedoff confirmed a reorganization plan for United on Jan. 20, 2006. The Company emerged from bankruptcy on Feb. 1, 2006. Reorganized UAL Corp. carries a 'B3' corporate family and probability of default ratings from Moody's, 'B-' long term foreign issuer credit rating from Standard & Poor's, and 'CCC' long term issuer default rating from Fitch. At June 30, 2010, UAL had $20.134 billion in total assets against total current liabilities of $8.573 billion, long-term debt of $6.281 billion, long-term obligations under capital leases of $1.01 billion, other liabilities and deferred credits of $7.022 billion, and a stockholders' deficit of $2.756 billion. UAL and Continental Airlines expect to close their merger by Friday, Oct. 1, 2010. Upon the closing of the merger, the holding company, UAL Corporation, will be renamed United Continental Holdings, Inc. About Continental Airlines Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,700 daily departures throughout the Americas, Europe and Asia, serving 132 domestic and 137 international destinations. Continental is a member of Star Alliance. Continental has total assets of $13.60 billion against total debts of $12.87 billion as of June 30, 2010. In May 2010, Continental announced an agreement to merge with UAL Corp. The merger has not yet been completed. In August 2010, Moody's Investors Service affirmed its 'B2' corporate family, with negative outlook, for Continental Airlines. Moody's said the affirmation, among other things, signifies the potential for it to maintain the B2 rating if the proposed merger with UAL (B3 corporate family from Moody's, on review for upgrade) is completed under terms that enable the combined entity to achieve the potential revenue and cost synergies that have been identified. However, the outlook remains negative because of the industry's weak track record in successfully executing large business combinations. Continental caries a 'B' corporate rating, on watch negative, from Standard & Poor's. * * * In September 2010, Fitch Ratings 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. 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 upgraded UAL's ratings: -- IDR to 'B-' from 'CCC'; -- Senior unsecured to 'CC/RR6' from 'C/RR6'. ULTIMATE ESCAPES: Wants Club Holdings Barred from Tapping Members ----------------------------------------------------------------- Ultimate Escapes Holdings, LLC, et al., ask the U.S. Bankruptcy Court for the District of Delaware to: -- direct Club Holdings, LLC, to refrain from using the Debtors' confidential and propriety membership lists and related information and from soliciting the Debtors' members; -- declare automatic stay barring Club Holdings' conduct in this regard; and -- avoid as fraudulent and preferential conveyances the transfer of valuable property by the Debtor in connection with the agreement dated August 6, 2010, without having received reasonably equivalent value in exchange and at a time when Ultimate Escapes was insolvent or became insolvent as a result of the transfer. The Debtors explain that the member lists and other identifying information regarding the Debtors members are important and valuable assets of the Debtors' estates. The member information also serves as part of the collateral for the Debtors' secured loan obligations involving CapitalSource. The Debtors relate that Club Holdings solicited approximately 200 Ultimate escapes' members to be Club Holdings' members. About Ultimate Escapes, Inc. Ultimate Escapes, Inc. -- http://www.ultimateescapes.com/-- is a luxury destination club that sells club memberships offering members reservation rights to use its vacation properties, subject to the rules of the club member's Club Membership Agreement. The Company's properties are located in various resort locations throughout the world. Kissimmee, Florida-based Ultimate Escapes Holdings, LLC, filed for Chapter 11 bankruptcy protection on September 20, 2010 (Bankr. D. Del. Case No. 10-12915). Affiliates Ultimate Resort, LLC; Ultimate Operations, LLC; Ultimate Resort Holdings, LLC; Ultimate Escapes, Inc. (fka Secure America Acquisition Corporation); P & J Partners, LLC; UE Holdco, LLC; UE Member, LLC, et al., filed separate Chapter 11 petitions. CRG Partners Group LLC is the Debtors' chief restructuring officer. Ultimate Escapes estimated assets at $10 million to $50 million and debts at $100 million to $500 million as of the Petition Date. UNION BANK: Weiss Gives Mo. Bank Very Weak E- Rating ---------------------------------------------------- Weiss Ratings has assigned its "very weak" E- rating to Union Bank based in Kansas City, Mo. 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 June 30, 2010, the institution's balance sheet showed $611 million in assets. URBAN BRANDS: Seeks Court Approval to Sell Assets Next Month ------------------------------------------------------------ Urban Brands Inc., parent of the Ashley Stewart women's clothing stores, asked the court overseeing its bankruptcy case for permission to sell its assets at an auction next month, Dow Jones' DBR Small Cap reports. About Urban Brands Urban Brands, Inc., operates as a women's specialty retailer. Its products include tops, such as knit tops, shirts and blouses, and tanks and camis; bottoms, which include shorts and capris, skirts, and pants; sweaters; and denim apparel, including denim jeans, skirts, denim sets, and jackets. The company also provides dresses, career and related separates, jackets, intimates, hosiery, swimwear, activewear, linen wear, extended sizes, bras and panties, maxi dresses, ruffles, tunics, and accessories. Urban Brands Inc. sought bankruptcy protection under Chapter 11 (Bankr. D. Del. Case No. 10-13005) on September 21, 2010. The Company estimated assets of $10 million to $50 million and debts of $100 million to $500 million in its Chapter 11 petition. Chun I Jang, Esq., Mark D. Collins, Esq., and Paul N. Heath, Esq., at Richards, Layton Finger, P.A., in Wilmington, Delaware, serve as counsel to the Debtors. BMC Group, Inc., is the claims and notice agent. US CORRUGATED: S&P Gives Stable Outlook, Affirms 'B' Rating ----------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on U.S. Corrugated Inc. to stable from negative. At the same time, S&P affirmed its ratings on U.S. Corrugated, including the 'B' corporate credit rating. "The rating outlook revision reflects Standard & Poor's view that favorable containerboard and corrugated products industry conditions will likely allow U.S. Corrugated to maintain its adjusted EBITDA over the next several quarters at or above its trailing-12-month level of approximately $35 million, as of July 3, 2010," said Standard & Poor's credit analyst Tobias Crabtree. As a result, S&P expects the company to sustain at least 20% covenant cushion under the credit agreement governing its $30 million asset-based lending facility. In addition, S&P's outlook reflects its view that the company's liquidity is adequate and that its leverage may decline to about 5.5x over the next 12 months, a level in line with a 'B' rating given its weak business profile. The stable rating outlook reflects S&P's expectations that the company's operating conditions will remain favorable as a result of a gradual improvement in economic conditions coupled with S&P's expectations for no significant increase in raw materials costs. Based upon its operating assumptions, S&P also believe that the company's liquidity should improve over the next 12 months given that company will likely maintain a covenant cushion under its $30 million asset-based lending facility above 20%. In addition, S&P estimates leverage could decline to about 5.5x over the next 12 months, a level in line with the 'B' rating, from more than 7x as of July 3, 2010. S&P could lower the ratings if market conditions deteriorate because of a tepid recovery in the U.S. economy, or if input costs, especially for old corrugated containers, remain elevated and sales price increases do not take hold, which S&P thinks could cause cash flow to decline and liquidity to tighten considerably. Specifically, a negative rating action could occur if S&P thinks EBITDA was likely to decline over the next several quarters by at least 20% from its trailing-12 month level at July 3, 2010. Rating upside potential is unlikely in the near term given the company's high degree of leverage and weak business risk profile. VALUE CITY: Judge Rejects 10% Holdback in Professionals' Fees ------------------------------------------------------------- The Hon. Judge James M. Peck overruled the U.S. Trustee's objection to final fee applications submitted by Willkie Farr & Gallagher LLP as counsel for Value City Holdings, Inc., and Otterbourg, Steindler, Houston & Rosen P.C., as counsel for the Official Committee of Unsecured Creditors, to the extent the U.S. Trustee seeks a 10% reduction or holdback. The Court reserves judgment on the Objection as it relates to specific time entries or fee requests of Willkie. The Professionals seek final compensation totaling $7,051,938.88 in fees and $226,745.81 in expenses. The U.S. Trustee expresses concern that unsecured creditors have not yet received distributions in the liquidating chapter 11 case and recommends either a 10% reduction in fees or a 10% holdback on payment pending distributions to unsecured creditors as contemplated in Debtor's plan. Willkie and OSH&R oppose any reduction or holdback, noting that the Professionals worked diligently in formulating a liquidating plan that has been confirmed by the Court, that they have done all that is necessary under the Bankruptcy Code to earn an award of final compensation and that their right to compensation should not be tied to the timing or amount of distributions to creditors under the confirmed plan. The Court has been advised that the U.S. Trustee and Willkie are in the process of reviewing and discussing these specific issues relating to compensation. As a result, the Court will defer ruling on those particular aspects of the Objection to give the parties the opportunity to pursue a consensual resolution. The parties are directed to advise the Court regarding the status of currently open issues by Sept. 12. A copy of the Court's memorandum decision is available at: http://www.leagle.com/unsecure/page.htm?shortname=inbco20100922610 Headquartered in Columbus, Ohio, Value City Holdings Inc. -- http://www.valuecity.com/-- operates a chain of department stores in the United States. The company and eight of its affiliates filed for Chapter 11 protection on Oct. 26, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-14197). John C. Longmire, Esq., Andrew D. Sorkin, Esq., and Lauren C. Cohen, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors' in their restructuring efforts. Epiq Bankruptcy Solutions LLC is the claims, noticing and balloting agent for the Debtors. Bijan Amini, Esq., and Avery Samet, Esq., at Storch Amini & Munves, P.C., in New York, served as special counsel for the Debtors. Glenn R. Rice, Esq., and David M. Posner, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. in New York, served as attorneys for the Official Committee of Unsecured Creditors. Adam L. Rosen, Esq., Silvermanacampora LLP, in Jericho, New York, served as conflicts counsel to the Committee. Value City estimated assets and debts between $100 million and $500 million each. On February 4, 2010, the Debtors filed the Joint Chapter 11 Plan of Liquidation for Value City Holdings, Inc and Its Affiliates and the Disclosure Statement with respect to the Plan. On March 15, 2010, the Debtors filed the First Amended Plan and related Disclosure Statement. On March 18, 2010, the Bankruptcy Court entered an order approving the Disclosure Statement with respect to the Debtors' First Amended Plan. On March 23, 2010, the Debtors filed a modified version of the First Amended Plan and Disclosure Statement. On May 17, 2010, the Plan was confirmed. On June 10, 2010, the Effective Date occurred. Pursuant to the Confirmation Order, as of the Effective Date, each of the Debtors' Cases were closed except for Lead Case No. 08-14197. VICTOR LOGAN: Case Summary & 10 Largest Unsecured Creditors ----------------------------------------------------------- Joint Debtors: Victor R. Logan Wendy R. Logan 6156 Logans Lane Rappahannock, VA 22538-2043 Bankruptcy Case No.: 10-36585 Chapter 11 Petition Date: September 22, 2010 Court: U.S. Bankruptcy Court Eastern District of Virginia (Richmond) Judge: Kevin R. Huennekens Debtors' Counsel: Robert Easterling, Esq. 2217 Princess Anne Street, Suite 100-2 Frederickburg, VA 22401 Tel: (540)373-5030 E-mail: eastlaw@easterlinglaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/vaeb10-36585.pdf VISTEON CORP: Opens Manufacturing Facility in Russia ---------------------------------------------------- Visteon Corporation has opened an automotive interiors manufacturing facility in Kaluga, one of Russia's main centers for automotive production, approximately 180 kilometers (112 miles) southwest of Moscow. Based in the Kaluga Supplier Park, the new facility manufactures injection molded door panels and other interior components for the new Volkswagen Polo, which is to be sold in the domestic Russian market. Visteon plans to reach full production in the first quarter of 2011. Equipped with advanced injection molding lines and ultrasonic welding assembly cells, the new plant can be expanded as Visteon develops business in the region. "The Kaluga plant demonstrates Visteon's commitment to establishing a strong presence in the growing Russian market in support of our global growth objectives," said Steve Meszaros, Visteon product group president. Pierre Boulet, Visteon's general manager for Europe and South America, added: "This new facility provides a platform for Visteon to expand our relationships with the increasing number of global vehicle manufacturers in the region." Visteon's strong product portfolio and established supply base in Russia position the company to support additional customers as they expand in the Russian market. Visteon currently supplies interior, climate, electronics and lighting components to global vehicle manufacturers' Russian locations. Visteon recently announced the formation of a joint venture, OOO Visteon Avtopribor Electronics, to supply a wide range of cockpit electronics products to vehicle manufacturers in Russia. About Visteon Corp Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for automakers. The Company has corporate offices in Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. The Company disclosed assets of US$4,561,000,000 and debts of US$5,311,000,000 as of March 31, 2009. Visteon Corporation and 30 of its affiliates filed for Chapter 11 protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786 through 09-11818). Judge Christopher S. Sontchi oversees the Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, represent the Debtors in their restructuring effort. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' investment banker and financial advisor is Rothschild Inc. The Debtors' notice, claims, and solicitation agent is Kurtzman Carson Consultants LLC. The Debtors' restructuring advisor is Alvarez & Marsal North America, LLC. Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware entered an order on August 31, 2010, confirming the Fifth Amended Plan of Reorganization of Visteon Corporation and its debtor affiliates. Visteon expects to emerge from Chapter 11 upon completion of necessary closing conditions, which the Company expects to occur by October 1. WALTER CLIFT: Case Summary & 10 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Walter Clift 26895 Aliso Creek Road, #B92 Aliso Viejo, CA 92629 Bankruptcy Case No.: 10-23402 Chapter 11 Petition Date: September 22, 2010 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Judge: Erithe A. Smith Debtor's Counsel: Arthur F. Stockton, Esq. STOCKTON LAW OFFICES 8655 E Via De Ventura Ste G200 Scottsdale, AZ 85258 Tel: (866) 682-8776 Fax: (866) 207-4082 E-mail: art@stocktonlawoffices.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-23402.pdf WASHINGTON MUTUAL: Balks at Black Horse-Led Investors' Suit ----------------------------------------------------------- Washington Mutual, Inc., alleges that the adversary complaint commenced by a group of sophisticated investors led by Black Horse Capital LP is nothing more than an attempt by the plaintiffs to overturn the priority regime of the U.S. Bankruptcy Code and receive a windfall ahead of true creditors and ordinary investors. Black Horse and the other plaintiffs who actually bought Trust Preferred Securities prior to a conditional exchange dated September 25, 2008, were fully informed that they were taking risk that the Office of Thrift Supervision could, at its sole discretion, direct a Conditional Exchange of the Trust Preferred Securities for preferred shares in WaMu Inc. at any time, Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, counsel to the Debtors, contends. The Plaintiffs were also fully informed that the Conditional Exchange would operate automatically, and that the Trust Preferred Securities which they held would be legally deemed to represent preferred shares in WaMu Inc. upon the declaration of the Confidential Exchange, rather than waiting for the physical exchange of securities, Mr. Collins points out. "Because they had full knowledge and prior disclosure that the purpose of the Trust Preferred Securities offerings was to raise capital for Washington Mutual Bank and the fact that Trust Preferred Securities would constitute 'core' capital of WMB, the Plaintiffs' contention is absurd that investors were somehow misled because they were not informed that OTS would further direct that the Trust Preferred Securities would be downstreamed from WaMu Inc. to Washington Mutual Bank," Mr. Collins argues. He further notes that the Plaintiffs purchased the purported rights to the Trust Preferred Securities after the Conditional Exchange, at which time the Bank itself was sold and allegations about fraud and mismanagement in WMB were disseminated. Mr. Collins also contends that if the Plaintiffs truly believed that they continued to own the Trust Preferred Securities after the Conditional Exchange was announced, they would have filed an adversary proceeding, seeking a declaration of ownership soon after September 25, 2008. Instead, they waited almost two years after the date until the Global Settlement Agreement has been reached and a Plan of Reorganization proposed in the Debtors' cases, he emphasizes. "Clearly, those Plaintiffs who purchased rights to the Trust Preferred Securities have been disappointed that their hoped for windfall has not occurred, and are trying to use this belated proceeding as leverage to sweeten the pot," he maintains. WaMu Inc. thus denies all allegations in the Black Horse Complaint. WaMu Inc. also asserts affirmative defenses, including that the Complaint fails to state a claim upon which relief can be granted, and the damages allegedly suffered by the Plaintiffs were not the proximate or foreseeable result of acts or omissions of WaMu Inc. WaMu Inc. further asserts a counterclaim, asking the Court to order that any claims asserted by the Plaintiffs against it are subordinated to all claims or interests that are senior to or equal to preferred equity interests. JPMorgan Chase Seeks Dismissal of Complaint JPMorgan Chase Bank, N.A., generally denies allegations in the Black Horse Complaint. In further response to the Complaint, JPMorgan Chase asserts these affirmative defenses, namely: (1) The Complaint fails to state a claim upon which relief can be granted; (2) The Court lacks subject matter jurisdiction over the Plaintiffs' claims in this adversary action; (3) FIRREA bars the Court or any other court in the District of Delaware from exercising jurisdiction over the Plaintiffs' claims; (4) The Plaintiffs lack standing to maintain some or all of the claims alleged in the Complaint; (5) The Plaintiffs are barred from seeking or obtaining some or all of the relief sought in the Complaint by the doctrines of waiver and estoppels; (6) The Plaintiffs' claims are barred, in whole or in part, (i) for failure to join one or more indispensable parties; (ii) by applicable banking rules, regulations, and statutes; and (iii) by the statutes of frauds; (7) The Plaintiffs failed to exhaust their administrative remedies; (8) The Plaintiffs cannot be granted some or all of the relief they seek because (i) they have unclean hands; (ii) JPMorgan Chase is a holder in due course or a bona fide purchaser of value; and (iii) even if they were to prevail on the merits of their claims, the remedy they seek is unavailable for their claims; and (9) The Plaintiffs' claims against JPMorgan Chase Bank, JPMorgan Chase & Co., WMPFF, WaMu Cayman, WaMu Delaware I, WaMu Delaware II, WaMu Delaware III and WaMu Delaware IV will be barred, released and extinguished if the GSA is approved or the Plan is confirmed by the Court. JPMorgan Chase thus demands judgment dismissing the claims asserted against it. According to an entry in the Court's docket, mediation in the Black Horse Adversary Complaint is due January 12, 2011. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. The Company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. Washington Mutual Bank was taken over September 25 by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns 100% of the equity in WMI Investment. Weil Gotshal & Manges represents the Debtors as counsel. When WaMu filed for protection from its creditors, it listed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500,000,000 to $1,000,000,000 with zero debts. Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with responsibility for the litigation. Brian Rosen, Esq., at Weil, Gotshal & Manges LLP served as legal counsel to WMI with responsibility for the Chapter 11 case. Bankruptcy Creditors' Service Inc. publishes Washington Mutual Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Washington Mutual Inc. (http://bankrupt.com/newsstand/or 215/945-7000). WASHINGTON MUTUAL: Denies Any Liability to Broadbill Investment --------------------------------------------------------------- Washington Mutual Inc. generally denies the allegations asserted by Broadbill Investment Corp., Nantahala Capital Partners, LP., and Blackwell Capital Partners, LLC, in the amended complaint they filed. Broadbill's Amended Complaint asserts a class action for a declaratory judgment relating to the conveyance by Dime Bancorp and its board of directors of the net proceeds, if any, from a litigation entitled Anchor Savings Bank FSB v. United States, No. 95-39C. The Dime Board issued "litigation tracking warrants" for the conveyance of such value. WaMu assumed the Dime obligation on the LTWs following WaMu's acquisition of Dime. WaMu specifically denies any and all liability to the Plaintiffs' claims based on securities that the Plaintiffs' purportedly hold, namely, the LTW, which are exercisable for shares of WaMu Inc. common stock. Moreover, WaMu asserts that the Plaintiffs lack standing to bring the claims asserted in the Complaint. Chun I. Jang, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, on the Debtors' behalf, further contends that the claims against WaMu in the Complaint are barred by the doctrine of laches; the doctrine of estoppel; the doctrine of waiver; the doctrine of unclean hands; the parol evidence rule; the Plaintiffs' failure to mitigate damages; the Plaintiffs' failure to exhaust their contractual remedies; and the Plaintiffs' failure to set forth a basis for their attorneys' fees. By its response, WaMu asks the Court that the Broadbill Complaint and each cause of action be dismissed with prejudice, and that it be awarded costs of the lawsuit and the related attorney's fees. According to WaMu, the Debtors and counsel for the Plaintiffs are currently negotiating a stipulation that will address issues related to certification of the putative class. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. The Company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. Washington Mutual Bank was taken over September 25 by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns 100% of the equity in WMI Investment. Weil Gotshal & Manges represents the Debtors as counsel. When WaMu filed for protection from its creditors, it listed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500,000,000 to $1,000,000,000 with zero debts. Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with responsibility for the litigation. Brian Rosen, Esq., at Weil, Gotshal & Manges LLP served as legal counsel to WMI with responsibility for the Chapter 11 case. Bankruptcy Creditors' Service Inc. publishes Washington Mutual Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Washington Mutual Inc. (http://bankrupt.com/newsstand/or 215/945-7000). WASHINGTON MUTUAL: Says PFG's $37 Mil. Claim on Account of Equity ----------------------------------------------------------------- Washington Mutual Inc. asks the U.S. Bankruptcy Court to find that Claim No. 3835 filed by Principal Financial Group, Inc., for $37,949,134 has the same priority as common equity interests within the meaning of their Chapter 11 Plan of Reorganization. Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, contends that each portion of the Claim arises under a stock purchase agreement among Washington Mutual, Inc., New American Capital, Inc., PFG and Principal Management Corporation and would not exist but for PFG's purchase of the stock of WM Advisors, Inc. Thus, Claim No. 3835 is "a claim . . . for damages arising from the purchase or sale of [a security of . . . an affiliate of the debtor]" and must be subordinated pursuant to Section 510(b) of the Bankruptcy Code, he points out. Mr. Collins also insists that Section 510(b) subordination is required even though Claim No. 3835 is alleged to arise, at least in part, from contractual obligations that were unmatured as of the Petition Date; and even though PFG holds the stock of a former indirect subsidiary of Washington Mutual, Inc., rather than WaMu Inc.'s own stock. In response, PFG insists that the Claim is a claim for payments that are wholly unrelated to the purchase, sale or value of stock. Instead, it is simply a claim for damages arising from WaMu Inc.'s failure to continue to make available and sell a certain amount of business to PFG as required by the various agreements, including a Bank Channel Distribution Agreement, Richard W. Riley, Esq., at Duane Morris LLP, in Wilmington, Delaware -- rwriley@duanemorris.com -- counsel to PFG, argues. Put simply, the payments do not even have a causal relationship to the purchase of stock and do not even in any way fall within the purview of Section 510(b), Mr. Riley maintains. PFG thus asks the Court to allow its Claim as a general unsecured claim for $39,002,621. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. The Company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. Washington Mutual Bank was taken over September 25 by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns 100% of the equity in WMI Investment. Weil Gotshal & Manges represents the Debtors as counsel. When WaMu filed for protection from its creditors, it listed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500,000,000 to $1,000,000,000 with zero debts. Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with responsibility for the litigation. Brian Rosen, Esq., at Weil, Gotshal & Manges LLP served as legal counsel to WMI with responsibility for the Chapter 11 case. Bankruptcy Creditors' Service Inc. publishes Washington Mutual Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Washington Mutual Inc. (http://bankrupt.com/newsstand/or 215/945-7000). WAYTRONX INC: Earns $3.5 Million in June 30 Quarter --------------------------------------------------- Waytronx, Inc., filed its quarterly report on Form 10-Q, reporting net income of $3.5 million on $10.7 million of revenue for the three months ended June 30, 2010, compared with a net loss of $282,187 on $6.0 million of revenue for the same period of 2009. The Company had an accumulated deficit of $52.4 million and a working capital deficiency of $17.5 million as of June 30, 2010. The Company recorded $0 in impairment losses during the three months ended June 30, 2010. For the same period in 2009, the Company recorded a $10.7 million impairment loss related to goodwill and a $136,811 impairment loss related to patents. During the three months ended June 30, 2010, and 2009, Waytronx recognized gain on settlements of debt of $5.6 million and $11.8 million, respectively. The Company's balance sheet at June 30, 2010, showed $39.7 million in total assets, $29.8 million in total liabilities, and stockholders' equity of $9.9 million. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b93 As reported in the Troubled Company Reporter on April 6, 2010, Webb & Company, P.A., in Boynton Beach, Fla., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted that the Company has a net loss of $4.2 million and an accumulated deficit of $54.8 million at December 31, 2009. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6b93 About Waytronx Inc. Based in Tualatin, Oregon, Waytronx, Inc. (OTC BB: WYNX) has pioneered and is developing innovative thermal management solutions capable of revolutionizing the semiconductor, solar and electronic packaging industries, among others, utilizing its patented WayCool(TM)/WayFast(TM) hybrid mesh architecture. In addition, through its acquisition of CUI in May 2008, Waytronx has developed the infrastructure, expertise, and platform necessary to acquire, develop, and commercialize new technologies. CUI is a solutions provider of electromechanical components and industrial controls for OEM manufacturing. WEI CHEN: Case Summary & 15 Largest Unsecured Creditors ------------------------------------------------------- Joint Debtors: Wei Chen Erika P. Chen 177 Greengable Way Chesapeake, VA 23322 Bankruptcy Case No.: 10-74482 Chapter 11 Petition Date: September 22, 2010 Court: U.S. Bankruptcy Court Eastern District of Virginia (Norfolk) Judge: Stephen C. St. John Debtors' Counsel: Joseph T. Liberatore, Esq. CROWLEY, LIBERATORE, & RYAN, P.C. 1435 Crossways Boulevard, Suite 300 Chesapeake, VA 23320 Tel: (757) 333-4500 Fax: (757) 333-4501 E-mail: jliberatore@clrfirm.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/vaeb10-74482.pdf WEST CORP: Bank Debt Trades at 2% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which West Corp. is a borrower traded in the secondary market at 98.00 cents-on-the- dollar during the week ended Friday, September 24, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.92 percentage points from the previous week, The Journal relates. The Company pays 237.5 basis points above LIBOR to borrow under the facility. The bank loan matures on May 11, 2013, and carries Moody's B1 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 215 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About West Corporation Founded in 1986 and headquartered in Omaha, Nebraska, West Corporation --http://www.west.com/-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West Corporation has a team of 41,000 employees based in North America, Europe and Asia. West Corporation had total assets of $3,008,762,000, total liabilities of $4,068,914,000, Class L Common Stock of $1,413,958,000, and stockholders' deficit of $2,474,110,000 as of June 30, 2010. West Corp. carries a 'B2' corporate rating from Moody's and 'B+' corporate rating from Standard & Poor's. WEST FRASER: S&P Raises Corporate Credit Rating to 'BB+' -------------------------------------------------------- Standard & Poor's Ratings Services said it raised its long-term corporate credit rating on West Fraser Timber Co. Ltd. to 'BB+' from 'BB'. The outlook is stable. At the same time, S&P raised its issue-level rating on WFT's secured debt to 'BB+' from 'BB'. The recovery rating is unchanged at '4', reflecting what S&P considers average (30%-50%) recovery in a default scenario. "S&P base the upgrade on its opinion of WFT's low leverage and good operating performance," said Standard & Poor's credit analyst Jatinder Mall. The ratings on WFT reflect S&P's view of the company's position as a leading North American lumber producer, its low-cost lumber operations, a high degree of fiber integration, good product diversity, and low leverage. These strengths are somewhat offset, in S&P's opinion, by the company's participation in the cyclical housing construction and volatile pulp markets. WFT is an integrated wood products company with operations in western Canada and the southern U.S. Although its core business is lumber production, it also produces panels, pulp, and newsprint. The company has an annual production capacity of 5.5 billion board feet of lumber. Standard & Poor's considers WFT's business risk profile as fair, which is reflective of the company's exposure to the cyclical North American housing construction market despite its low cost position, and its financial risk profile as intermediate. While the company has sufficient fiber supply for its lumber mills in Canada through long-term timber tenures, S&P's concern is the long-term availability of sufficient fiber for the company's lumber mills in the interior B.C, which represent close to half of its production capacity. Specifically, S&P is worried that the mountain pine beetle infestation in the interior B.C., where WFT's operations are, will eventually lead to a lower annual allowable cut, but at present it's not clear how much lower. The stable outlook reflects S&P's expectations that WFT's debt levels should remain flat for the next year-and-a-half and that, while U.S. housing market conditions remain weak, there is significant room in the current credit metrics to absorb a decline in lumber and pulp prices. Even if the company's EBITDA were to decline by 50% from last 12 months June 30, 2010, levels of C$382 million, leverage would be about 2.5x. S&P could lower the ratings on WFT if lumber and pulp prices decline sharply as seen in recent history and if the company's leverage is 3.5x-4.0x. An upgrade would require improvement in the company's business risk profile, which in turn would require marked improvement in U.S. housing starts. WESTERN NATIONAL: Weiss Gives Ariz. Bank Very Weak E- Rating ------------------------------------------------------------ Weiss Ratings has assigned its "very weak" E- rating to Western National Bank based in Phoenix, Ariz. 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 June 30, 2010, the institution's balance sheet showed $221.4 million in assets. WILLIAM LYON: S&P Raises Rating on Senior Unsec. Notes to 'CC' -------------------------------------------------------------- Standard & Poor's Ratings Services raised its rating on William Lyon Homes' 10.75% senior unsecured notes due 2013 to 'CC' from 'D' after the company repurchased $10.5 million of outstanding principal for $9.0 million. S&P lowered its rating on the notes to 'D' because S&P considered the discounted repurchase to be tantamount to default under its criteria for exchange offers and similar restructurings. In accordance with its criteria, S&P is now raising its rating on these notes because the company completed its repurchase, and S&P is not aware of additional discounted repurchases at this time. Newport Beach, Calif.-based William Lyon is a privately-held, moderately-sized regional homebuilder with operations in California, Arizona, and Nevada. S&P view the company's business risk profile to be vulnerable based on sustained operating losses. S&P also views the company to have a highly leveraged financial risk profile with a less-than-adequate liquidity position. Capital constraints may impede the company's ability to add to its small platform of relatively well-positioned communities in key California housing markets and return to consistent profitability. Rating List William Lyon Homes Corporate credit rating CCC/Negative/-- Rating Raised William Lyon Homes Rating ------ To From -- ---- Senior notes due 2013 CC D Recovery rating 6 WINDSTREAM CORPORATION: Moody's Puts Ba3 Rating on $500 Mil. Notes ------------------------------------------------------------------ Moody's Investors Service has assigned a Ba3 rating to Windstream Corporation's proposed $500 million issuance of senior unsecured notes due 2020. The company expects to use the net proceeds primarily to fund the estimated $580 million in cash, debt repayment needs, and other transaction fees and expenses for the acquisition of Q-Comm Corporation and its wholly-owned subsidiaries, Kentucky Data Link and Norlight, Inc. Moody's believes that Windstream will fund the remaining cash uses from internal cash resources. Windstream expects to close the acquisition by the end of 2010. Ratings Rationale As part of the rating action, Moody's raised Windstream's Speculative Grade Liquidity Rating back to SGL-1 from SGL-2 due to the restoration of the company's very good liquidity profile. Moody's has taken these rating actions: Assignments: Issuer: Windstream Corporation * US$500M Senior Unsecured Regular Bond/Debenture, Assigned Ba3, LGD4 -- 69% Upgrades: Issuer: Windstream Corporation * Speculative Grade Liquidity Rating, Upgraded to SGL-1 from SGL-2 * Outlook -- Stable Overall, the Company's liquidity rating continues to reflect the strength and predictability of internal cash generation capabilities, expectations of measured use of the revolving credit facilities, and sufficient cushion with respect to financial maintenance covenants associated with its credit facilities. Although the company contributes a substantial portion of free cash flow to dividends, it has generated cash flow from operations in excess of $1 billion for the past two years, well in excess of working capital needs and capital expenditures. Moody's expects the company to maintain strong, albeit modestly declining cash flow from operations for the next twelve months ending September 30, 2011. Debt maturities through year-end 2011 remain modest. Moody's most recent rating action for Windstream was on July 12, 2010, when Moody's assigned a Ba3 rating to the company's senior unsecured note offering. Windstream, headquartered in Little Rock, AR, is an ILEC providing telecommunications services in 21 states and generated about $3.3 billion in annual revenues in the twelve months ended June 30, 2010. ZOLTAN SZAKALY: Case Summary & 17 Largest Unsecured Creditors ------------------------------------------------------------- Joint Debtors: Zoltan Szakaly Klara Paksy 6171 Indian View Dr Fallbrook, CA 92028 Bankruptcy Case No.: 10-16756 Chapter 11 Petition Date: Septmber 22, 2010 Court: United States Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: Joseph J. Rego, Esq. LAW OFFICE OF JOSEPH REGO 8765 Aero Drive, Suite 306 San Diego, CA 92123 Tel: (858) 598-6628 Fax: (858) 598-6631 E-mail: joerego@regolaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Joint Debtors' 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/casb10-16756.pdf * Auto-Parts Deals Near Record Pace as Buyout Firms, Ross Invest ---------------------------------------------------------------- Mark Clothier at Bloomberg News reported that auto-parts supplier acquisitions are back in fashion after a two-year slowdown as billionaire investor Wilbur Ross scouts deals in Asia and Texas Pacific Group helps set a near-record pace. According to the report, PRTM, a consulting firm in Waltham, Massachusetts, said that globally, 108 acquisitions took place in the industry through May of this year, the fastest pace in nine years, and more than 300 deals are likely. PRTM in its third annual study said that additional likely buyers include Eaton Corp. and Johnson Controls Inc. Bloomberg relates that possible sellers include Hitachi Ltd., Continental AG, Visteon Corp., TRW Automotive Holdings Corp. and Delphi Corp. Private-equity groups such as TPG are "hugely interested" as confidence in the industry starts to rebound, PRTM said. Mr. Ross said he's hunting for acquisitions in China and India for International Automotive Components Group's interior-parts business and those that make other components. * Chief Executives Of Small Banks May Shun $30 Billion Program -------------------------------------------------------------- Dow Jones' DBR Small Cap reports that a $30 billion program backed by the Obama administration to encourage community banks to lend to small businesses is missing one thing: demand from banks. * CQS Said to Plan Fund Investing in Distressed Corporate Debt -------------------------------------------------------------- London-based money manager CQS U.K. LLP opened a new fund to invest in the securities of distressed companies, John Glover at Bloomberg News reported, citing a person familiar with the plans. CQS, which has $8 billion of assets, has put up the $50 million CQS Distressed Opportunities Fund, targeting distressed investments including corporate bonds, loans and leases, the person said. * Moody's Reports B3 Negative & Lower List Dips Below 200 Cos. -------------------------------------------------------------- Moody's Investors Service said the number of companies on its B3 Negative and Lower Corporate Ratings List fell below 200 in the third quarter, a sign of improving credit quality for speculative- grade companies. There were 195 companies on the list as of Sept. 1, 2010 -- the lowest level in two years -- compared with a peak of 288 in June 2009, Moody's said in a new report. Companies on the list have a probability of default rating of Caa1 or lower, or a B3 PDR with a negative outlook or a rating under review for a possible downgrade. Moody's noted that the rate of decline in the size of the list is slowing, suggesting that it could be approaching a "new normal" level after the credit crisis greatly inflated the ranks of lower- rated companies. Many companies still on the list are struggling with tepid business conditions and high leverage, Moody's said. Further economic weakness or a shift in financial market conditions could lead to more companies appearing on the list, although the rating agency has yet to see signs of such an inflection in speculative-grade credit quality. "The question now is whether speculative-grade credit quality will take a turn for the worse, re-inflating the size of the B3 Negative and Lower list," said David Keisman, Moody's senior vice president and author of the report. "That will be determined largely by the direction of consumer confidence, unemployment and capital spending, as well as the willingness of investors to continue lending to companies at higher risk of default in a quest for higher yields. The significant amount of debt coming due over the next five years also remains a critical hurdle." According to the report, most removals from the list are now occurring due to positive rating actions rather than defaults or rating withdrawals. The number of companies added to the list each month as a result of rating downgrades has declined substantially since mid 2009. Like the B3 Negative and Lower list, other Moody's proprietary indicators are showing positive signs for corporate credit quality. The ratio of corporate upgrades to downgrades has been solidly positive since last fall. Moody's Liquidity-Stress Index, a liquidity indicator for speculative-grade companies, is at pre- credit-crisis levels. "Firming credit quality and stronger corporate earnings have pulled many companies off the B3 Negative and Lower list through rating upgrades," said Keisman. "While many companies still on the list are highly leveraged and facing challenging business conditions, continued access to capital markets and significant refinancing activity in the past year should enable many to avoid default, even if they remain in deep speculative-grade rating territory. " Trends in the B3 Negative and Lower List support Moody's expectation that the U.S. speculative-grade default rate will decline from 5.1% in August to 2.9% in December and 2.3% in August 2011. * BOND PRICING -- For Week From September 20 to 24, 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 12.000 AFFINITY GROUP 10.875% 2/15/2012 47.250 AHERN RENTALS 9.250% 8/15/2013 44.250 AMBAC INC 9.375% 8/1/2011 37.000 AMBASSADORS INTL 3.750% 4/15/2027 50.000 AT HOME CORP 0.525% 12/28/2018 0.016 BANK NEW ENGLAND 8.750% 4/1/1999 12.813 BANK NEW ENGLAND 9.875% 9/15/1999 12.625 BANKUNITED FINL 6.370% 5/17/2012 5.000 BLOCKBUSTER INC 9.000% 9/1/2012 3.125 BOWATER INC 6.500% 6/15/2013 28.375 BOWATER INC 9.000% 8/1/2009 23.000 BOWATER INC 9.500% 10/15/2012 23.000 BRODER BROS CO 11.250% 10/15/2010 98.000 C&D TECHNOLOGIES 5.500% 11/15/2026 70.813 C&D TECHNOLOGIES 5.500% 11/15/2026 69.000 CAPMARK FINL GRP 5.875% 5/10/2012 33.500 CELL GENESYS INC 3.125% 5/1/2013 35.000 CHENIERE ENERGY 2.250% 8/1/2012 41.125 CIR-CALL10/10 10.250% 5/1/2014 103.875 COMERICA CAP TR 6.576% 2/20/2037 100.050 EDDIE BAUER HLDG 5.250% 4/1/2014 5.000 EK-CALL10/10 3.375% 10/15/2033 97.000 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 37.000 FAIRPOINT COMMUN 13.125% 4/1/2018 8.000 FAIRPOINT COMMUN 13.125% 4/2/2018 9.000 FEDDERS NORTH AM 9.875% 3/1/2014 0.500 GAMESTOP CORP/IN 8.000% 10/1/2012 102.000 GENERAL MOTORS 7.125% 7/15/2013 31.500 GENERAL MOTORS 7.700% 4/15/2016 30.100 GENERAL MOTORS 9.450% 11/1/2011 28.000 GREAT ATLA & PAC 5.125% 6/15/2011 77.750 GREAT ATLA & PAC 6.750% 12/15/2012 57.576 HSBC-CALL10/10 5.650% 8/15/2019 98.000 INDALEX HOLD 11.500% 2/1/2014 0.500 INTL LEASE FIN 4.850% 10/15/2010 96.875 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 19.000 LEHMAN BROS HLDG 4.800% 2/27/2013 19.750 LEHMAN BROS HLDG 4.800% 3/13/2014 21.938 LEHMAN BROS HLDG 5.000% 1/22/2013 18.750 LEHMAN BROS HLDG 5.000% 2/11/2013 19.750 LEHMAN BROS HLDG 5.000% 3/27/2013 19.750 LEHMAN BROS HLDG 5.000% 8/3/2014 19.750 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 19.200 LEHMAN BROS HLDG 5.250% 2/6/2012 21.500 LEHMAN BROS HLDG 5.250% 1/30/2014 19.000 LEHMAN BROS HLDG 5.250% 2/11/2015 19.750 LEHMAN BROS HLDG 5.500% 4/4/2016 22.250 LEHMAN BROS HLDG 5.550% 2/11/2018 19.000 LEHMAN BROS HLDG 5.600% 1/22/2018 19.250 LEHMAN BROS HLDG 5.625% 1/24/2013 22.813 LEHMAN BROS HLDG 5.700% 1/28/2018 19.021 LEHMAN BROS HLDG 5.750% 4/25/2011 21.150 LEHMAN BROS HLDG 5.750% 7/18/2011 21.000 LEHMAN BROS HLDG 5.750% 5/17/2013 21.000 LEHMAN BROS HLDG 5.875% 11/15/2017 20.750 LEHMAN BROS HLDG 6.000% 4/1/2011 18.500 LEHMAN BROS HLDG 6.000% 7/19/2012 20.500 LEHMAN BROS HLDG 6.000% 12/18/2015 19.000 LEHMAN BROS HLDG 6.000% 2/12/2018 18.000 LEHMAN BROS HLDG 6.000% 1/29/2021 15.250 LEHMAN BROS HLDG 6.200% 9/26/2014 21.034 LEHMAN BROS HLDG 6.600% 10/3/2022 18.000 LEHMAN BROS HLDG 6.625% 1/18/2012 21.500 LEHMAN BROS HLDG 6.875% 5/2/2018 23.375 LEHMAN BROS HLDG 6.875% 7/17/2037 0.010 LEHMAN BROS HLDG 7.000% 4/16/2019 19.000 LEHMAN BROS HLDG 7.000% 10/4/2032 18.125 LEHMAN BROS HLDG 7.875% 11/1/2009 20.150 LEHMAN BROS HLDG 8.000% 3/5/2022 19.375 LEHMAN BROS HLDG 8.000% 3/17/2023 19.000 LEHMAN BROS HLDG 8.050% 1/15/2019 18.000 LEHMAN BROS HLDG 8.400% 2/22/2023 19.750 LEHMAN BROS HLDG 8.500% 8/1/2015 21.500 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 20.900 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 19.944 LEHMAN BROS HLDG 9.500% 1/30/2023 19.760 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 18.500 LEHMAN BROS HLDG 11.500% 9/26/2022 19.750 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 33.000 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 52.833 NEWPAGE CORP 12.000% 5/1/2013 29.000 NORTH ATL TRADNG 9.250% 3/1/2012 63.250 PALM HARBOR 3.250% 5/15/2024 66.550 PHARM RESOURCES 2.875% 9/30/2010 100.000 RASER TECH INC 8.000% 4/1/2013 37.000 RESTAURANT CO 10.000% 10/1/2013 26.001 RESTAURANT CO 10.000% 10/1/2013 29.625 SPHERIS INC 11.000% 12/15/2012 21.000 STATION CASINOS 6.500% 2/1/2014 0.200 THORNBURG MTG 8.000% 5/15/2013 4.498 TIMES MIRROR CO 7.250% 3/1/2013 44.000 TOYOTA-CALL10/10 5.070% 4/1/2019 100.000 TRANS-LUX CORP 8.250% 3/1/2012 10.200 TRICO MARINE 3.000% 1/15/2027 10.000 TRICO MARINE SER 8.125% 2/1/2013 15.500 WCI COMMUNITIES 4.000% 8/5/2023 1.000 XRX-CALL10/10 7.625% 6/15/2013 99.530 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***