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/raid1/www/Hosts/bankrupt/TCR_Public/101007.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, October 7, 2010, Vol. 14, No. 278 Headlines 2001 PROPERTIES: Files Schedules of Assets and Liabilities AG ENERGY: Gets Nod to Hire Sandberg Phoenix as Bankr. Counsel ALASKA COMMUNICATIONS: Moody's Assigns 'Ba3' Rating on New Loan ALLY FINANCIAL: Connecticut AG Wants Foreclosures Halted ALLY FINANCIAL: Says Foreclosure Practices Not Fraudulent AMERICAN MORTGAGE: Court Confirms Reorganization Plan BLOCKBUSTER INC: Initial Case Conference Set for Oct. 19 BLOCKBUSTER INC: Menter Rudin, et al., Represent Landlords BNA SUBSIDIARIES: Organizational Meeting to Form Panel on Oct. 8 BOSTON GENERATING: Fortress, MatlinPatterson Oppose "Quick" Sale BURGER KING: S&P Retains CreditWatch Negative on 'BB-' Rating C&D TECHNOLOGIES: NYSE Suspends Trading Effective Oct. 8 C&D TECHNOLOGIES: To Proceed With Dual-Track Restructuring CB RICHARD: Moody's Assigns 'Ba1' Rating on $350 Mil. Notes CB RICHARD: S&P Affirms Counterparty Credit Rating at 'BB' CENTAUR LLC: Multiple Bids Received for Valley View Downs Project CHINA TEL GROUP: Posts $29 Million Net Loss in June 30 Quarter CHESTER LYN: Case Summary & 20 Largest Unsecured Creditors CHINA VILLAGE: Case Summary & 20 Largest Unsecured Creditors CIT GROUP: To Redeem Additional $860 Million in Series B Notes CMB III: Union Fidelity Tries to Block Cash Collateral Use COLONIAL BANCGROUP: Top Hat Plan Assets Property of the Estate CPJFK, LLC: Voluntary Chapter 11 Case Summary DAVIS HERITAGE: Section 341(a) Meeting Scheduled for Nov. 3 DAVITA INC: Fitch Assigns 'BB' Rating on $3 Bil. Senior Loan DIVERSIFIED LENDING: Owner Arrested for $220MM Ponzi Scheme DJO FINANCE: Moody's Assigns 'Caa1' Rating on $300 Mil. Notes DJO INC: S&P Assigns 'CCC+' Rating on $300 Mil. Senior Notes EAST PALMDALE: Voluntary Chapter 11 Case Summary EMBASSY DELUJO: Case Summary & 20 Largest Unsecured Creditors ENVOY CAPITAL: Notified by NASDAQ on Low Bid Price EVERTEC INC: S&P Assigns Corporate Credit Rating at 'B+' FIRSTFED FINANCIAL: Files Chapter 11 Plan of Liquidation FONTAINEBLEAU LAS VEGAS: Icahn Holds Fire Sale FRANK BYERS: Voluntary Chapter 11 Case Summary GARLOCK SEALING: Seeks to Pay Appeal Bond Invoice GARLOCK SEALING: Wins Nod for Grant Thornton as Audit Accountant GARLOCK SEALING: Says Orrick Herrington Fees Excessive GARY COWAN: Case Summary & 20 Largest Unsecured Creditors GENERAL MOTORS: Unsecureds at Odds with Treasury on Assets GRACE LIM: Case Summary & 31 Largest Unsecured Creditors GRACEWAY PHARMACEUTICALS: Moody's Cuts Corp. Family Rating to 'Ca' GREAT ATLANTIC: Owes Detroit Landlords Nearly $150-Mil. in Rent GREAT FALLS: Voluntary Chapter 11 Case Summary GREENVILLE UNITED: Case Summary & 7 Largest Unsecured Creditors HARRISBURG PA: Water, Parking Debt Under Review for Downgrade HARRY JEREMIAS: U.S. Bancorp Seeks to Foreclose on Renwick Condo HAWK CORP: S&P Retains CreditWatch Developing on 'B' Rating HERTZ CORPORATION: Fitch Assigns 'BB-' Rating on $700 Mil. Notes HOLLINGER INC: Enters Settlement Agreement With KPMG LLP HOSPITAL DAMAS: Taps Charles A. Cuprill as Bankruptcy Counsel IMPERIAL CAPITAL: Court Limits Transfers of Equity Interests IMPERIAL CAPITAL: Files Chapter 11 Plan of Liquidation INTERNATIONAL GARDEN: Receives Court Okay of All 1st Day Motions INTERSTATE BAKERIES: Ct. Rejects $56MM U.S. Bank Claim v. Insurers INVACARE CORPORATION: Tender Offer Won't Move Moody's 'B1' Rating ITC DELTACOM: S&P Puts 'B' Rating on CreditWatch Positive JACKSON VALLEY: Voluntary Chapter 11 Case Summary JAMES CAVINESS: Voluntary Chapter 11 Case Summary JAZZBONES VENTURES: Voluntary Chapter 11 Case Summary JEFFERSON COUNTY: Commission President Favors Bankruptcy JEFFREY FRIMMERSDORF: Voluntary Chapter 11 Case Summary JOE MIRANDA: Case Summary & 20 Largest Unsecured Creditors JOINT THEATER: Bankruptcy Filing Averts Foreclosure Sale KENT SWIG: Real Estate Firm Buys 5 Hanover Square Mortgage LAKE STREET: In Bankruptcy, Has 2 Mos. to Redeem Petoskey Project LAWRENCE BUILDING: Case Summary & Creditors List LEAR CORPORATION: Moody's Raises Corporate Family Rating to 'Ba3' LESLIE NEYHART: Voluntary Chapter 11 Case Summary LODGENET INTERACTIVE: S&P Withdraws 'B' Rating on $435 Mil. Notes LONGHORN PARK: Case Summary & 3 Largest Unsecured Creditors LOREN CHRISTOPHEL: Case Summary & 20 Largest Unsecured Creditors LA BOTA DEVELOPMENT: Files Full-Payment Reorganization Plan LINCOLNSHIRE CAMPUS: Combined Plan Hearing on Nov. 10 MARVIN RICHER: Section 341(a) Meeting Scheduled for Oct. 20 MARVIN RICHER: Asks for Court's Nod to Use Cash Collateral MARVIN RICHER: Taps Holmstrom & Kennedy as Bankruptcy Counsel MIDWEST BANC: U.S. Trustee Forms 5-Member Creditors Committee MIDWEST BANC: Committee Taps Freeborn & Peters as Counsel MOLECULAR INSIGHT: Gets Oct. 15 Extension of Waiver Agreement MPC COMPUTERS: Proposes Settlement with Gateway Inc. NAKNEK ELECTRIC: Files for Chapter 11 to Void Liens NAKNEK ELECTRIC: Case Summary & 20 Largest Unsecured Creditors NEC HOLDINGS: To Close Lenexa Facility & Cut 206 Jobs NEVADA GEOTHERMAL: Posts $18 Million Net Loss in Fiscal 2010 OPUS EAST: Ch. 7 Trustee Wins Nod for Ciardi as Counsel OPUS SOUTH: Trustee Wants Claim vs. Waters Edge Deemed Timely OPUS SOUTH: BofA Wants Lift Stay to Include Debtor as Defendant OPUS SOUTH: Greenberg Traurig Bills $774,392 for Work as Counsel OPUS WEST: Files Omnibus Claims Objections OPUS WEST: Bechthold & Sullivan Agree on Expungement of Claims PETTERS GROUP: Trustee Sues Arrowhead to Recoup $105.4 Million PFG ASPENWALK: Gets Court's Interim Nod to Obtain DIP Financing PFG ASPENWALK: Taps Leonard Street as Bankruptcy Counsel POLYMER GROUP: Blackstone Deal Cues Moody's to Withdraw Ratings PRIMUS TELECOMMUNICATIONS: S&P Puts 'B-' Rating on Negative Watch QOC I: Wants to Hire Cole Schotz as Co-Counsel QOC I: Wants to Use Wells Fargo's Cash Collateral QUALITY PROPERTIES: Case Summary & 5 Largest Unsecured Creditors RENEGADE HOLDINGS: Chinqua Penn Mansion Remains Open for Business RIVIERA HOLDINGS: Court Approves Incentive Program ROBERT LEACH: Case Summary & 9 Largest Unsecured Creditors ROSS NETWORK: Organizational Meeting to Form Panel on Oct. 8 ROTECH HEALTHCARE: Moody's Upgrades Corp. Family Rating to 'Caa1' SANITARY AND IMPROVEMENT: Chapter 9 Case Summary & Creditors List SAVANNAH OUTLET: Case Summary & 20 Largest Unsecured Creditors SEA ISLAND: Starwood Presents $197.5 Million Competing Offer SEATTLE LANGUAGE: Files for Ch. 11; To Continue Classes This Fall SENTINEL MANAGEMENT: Ex-Auditor Fined Over Securities Scandal SHANE CO: Can Send Reorganization Plan to Creditors for Vote ST. GEORGE: Voluntary Chapter 11 Case Summary STUYVESANT TOWN: Foreclosure Auction Moved; Lenders Work on Deal T. TRAN: Case Summary & 8 Largest Unsecured Creditors TERRY GALLIMORE: Voluntary Chapter 11 Case Summary TIMOTHY MARTIN: Case Summary & 13 Largest Unsecured Creditors TRUMP ENTERTAINMENT: Court Approves Settlement With Icahn TRUMP ENTERTAINMENT: Oct. 19 Hearing Set for Bondholders' Fees TRUVO USA: Creditors Committee Lodges Support to Plan TRUVO USA: Bondholders to Get More Under New Plan TURKPOWER CORPORATION: MaloneBaley LLP Raises Going Concern Doubt UNITED CONTINENTAL: I. Walter Acquires UAL Shares UNITED CONTINENTAL: UAL Releases Corp. Responsibility Report UNITED CONTINENTAL: Files Prospectus Supplements with SEC UNIVISION COMMUNICATIONS: S&P Puts 'B-' Rating on Positive Watch VERASUN ENERGY: Aurora Coop Won't Repay for Sold Corn VICTOR HERNANDEZ: Voluntary Chapter 11 Case Summary VIEW ACRE: Voluntary Chapter 11 Case Summary WASHINGTON MUTUAL: Files Amended Plan of Reorganization YAIR LEVY: Bank to Set Rector Square Foreclosure Auction Date YONG AHN: Case Summary & 10 Largest Unsecured Creditors * Highland's Daugherty Says Technical Trade in Distressed Gone * BankUnited's CEO Says U.S. May Lose a Third of Its Banks * Consumer Bankruptcies Up 11% So Far in 2010, Says ABI * Bankruptcy Filings Rise in South Texas * C. Scott Wilson Joins Huron Consulting Group * Orrick and Akin Gump Cancel Merger Plans * Judge Kagan Dives Into Case on First Day With Supreme Court * Chapter 11 Cases With Assets & Liabilities Below $1,000,000 ********* 2001 PROPERTIES: Files Schedules of Assets and Liabilities ---------------------------------------------------------- 2001 Properties, LLC, filed with the U.S. Bankruptcy Court for the District of Colorado its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $35,000,000 B. Personal Property $32 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $30,477,229 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $13,927,015 ----------- ------------ TOTAL $35,000,032 $44,404,244 Mission Hills, Kansas-based 2001 Properties, LLC, filed for Chapter 11 bankruptcy protection on August 31, 2010 (Bankr. D. Colo. Case No. 10-32331). Guy B. Humphries, Esq., in Denver, Colorado, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million in its Chapter 11 petition. AG ENERGY: Gets Nod to Hire Sandberg Phoenix as Bankr. Counsel -------------------------------------------------------------- AG Energy Resources, Inc., sought and obtained authorization from the Hon. Laura K. Grandy of the U.S. Bankruptcy Court for the Southern District of Illinois to employ Sandberg, Phoenix, & von Gontard, P.C., as bankruptcy counsel. Sandberg Phoenix will, among other things: a. advise and consult with Debtor regarding alternatives for reorganization including, but not limited to, refinancing of existing debt, injection of additional capital, or sale of some or all of Debtor's assets; b. evaluate and attack claims of various creditors who may assert security interests in the assets and who may seek to disturb the continued operation of the business; c. appear in, prosecute or defend suits and proceedings, and take all necessary and proper steps and other matters and things involved in or connected with the affairs of the estate of Debtor; and d. represent Debtor in court hearings and assist in the preparation of contracts, reports, accounts, petitions, applications, orders and other papers an documents as may be necessary in the Chapter 11 proceeding. Sandberg Phoenix will be paid based on the hourly rates of its personnel: Keith D. Price $280 Scott Greenberg $305 Mara J. Ising $165 Paralegals/Assistants $120-$130 Keith D. Price, Esq., an attorney at Sandberg Phoenix, assures the Court that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. Benton, Illinois-based Ag Energy Resources, Inc., filed for Chapter 11 bankruptcy protection on September 23, 2010 (Bankr. S.D. Ill. Case No. 10-41440). In its schedules, the Debtor disclosed $14,133,914 in total assets and $9,651,006 in total liabilities as of the Petition Date. ALASKA COMMUNICATIONS: Moody's Assigns 'Ba3' Rating on New Loan --------------------------------------------------------------- Moody's Investors Service has assigned a Ba3 rating to Alaska Communications Systems Holdings, Inc. new senior secured credit facility. Moody's also affirmed ACSH's B1 Corporate Family Rating, its B1 Probability of Default Rating and the company's SGL-3 Speculative Grade Liquidity rating. The outlook remains stable. The proceeds from this new credit facility will be used to retire the existing credit facility that is scheduled to mature in 2012. Issuer: Alaska Communications Systems Holdings, Inc. -- Corporate Family Rating - B1 -- Probability of Default Rating - B1 -- $30m Senior Secured RCF due 2015.Ba3/LGD-3 (39%) -- $440m Senior Secured Term Loan due 2016Ba3/LGD-3 (39%) -- SGL / Short-Term Rating - SGL-3 -- Outlook - Stable Ratings Rationale The B1 CFR reflects the ACSH's deteriorating legacy wire-line subscriber base and the competitive challenges within the wireless segment. The company's ILEC operations face the typical subscriber loss characteristics common in the industry, as wireless substitution erodes the company's customer base. ACSH has done well in offsetting this decline through enterprise business growth, but not without suffering modest margin compression. Going forward, Moody's expect this trend to continue, as wire-line customers abandon traditional telephone services and rely upon wireless. Moody's rates the company's Senior Secured Term Loan and Senior Secured Revolving Credit Facility Ba3, one notch above the B1 CFR due to the support offered by the company's $125m subordinated convertible notes. Within its wireless segment, the company has come under fire from a well-equipped competitor and seen competitive losses to its high-value subscriber base. AT&T, through its acquisition of Dobson Wireless, entered the Alaska market in late 2007. ACSH, with its high-end customer focus, was unable to compete with AT&T's iPhone despite a quality network and good service reputation. Moody's expect the losses to moderate as ACSH introduces a number of Android based devices that should compete more effectively against AT&T. Moody's expects ACSH's wireless business to stabilize in 2011, returning to net subscriber growth in 2012. Moody's expect ARPU to remain strong, as data revenues continue to grow and offset voice revenue weakness while ETC revenues continue to push ARPU higher. ACSH plans to introduce Alaska's first 4G services with an LTE-based network build in 2011. This service launch, combined with a better menu of handsets is expected to result in a return to wireless growth in 2012. Yet, total company EBITDA is likely to fall as the wireless turnaround is too slow to offset the wire-line weakness, despite the wire-line segment's strong enterprise business growth. Moody's anticipates that leverage will be 5.0x at year-end 2010, growing slightly thereafter as incremental debt from the revolver draw (to fund LTE) and slight EBITDA deterioration take effect. Liquidity could be strained as the company maintains essentially no cash buffer and continues to pay an aggressive dividend. The stable rating reflects Moody's expectations that over the rating horizon, ACSH's operations will leave its credit profile largely unchanged from that which exists currently and that liquidity will remain adequate while the company deploys its LTE network. The ratings may face downward pressure if ACSH cannot demonstrate the ability to become FCF positive. Adverse ratings actions could also develop if the company is involved in material debt-financed acquisition activity or in the event of adverse liquidity developments leading to Debt/EBITDA leverage remaining above 5.5x or FCF/TD remaining negative on a sustained basis. While not expected over the rating horizon, upward ratings pressure may develop if ACSH is able to repay some debt such that Debt/EBITDA leverage improves towards 4.0x and FCF/TD improves to 5% on a sustainable basis. Moody's most recent rating action was taken on November 20, 2009, at which time Moody's affirmed ACSH's B1 CFR and PDR along with the stable outlook and SGL-3 liquidity rating (indicating adequate liquidity). ACSH is a leading integrated communications provider based in Anchorage, Alaska. ACSH is the state's incumbent wire-line operator, owns an extensive IP backbone serving the enterprise segment with sub-sea cables connecting to the lower 48 States and also operates an extensive 3G wireless network in the state of Alaska. ALLY FINANCIAL: Connecticut AG Wants Foreclosures Halted -------------------------------------------------------- Bloomberg News reports that Connecticut Attorney General Richard Blumenthal said his office is investigating defective foreclosure documents filed by GMAC/Ally Finance Inc. and demanding that the company freeze foreclosures in the state. "The GMAC/Ally foreclosure steamroller should be stopped so the company can be held accountable," Mr. Blumenthal said in a statement. "My office has already confirmed that some defective documents were filed in Connecticut." Mr. Blumenthal's action follows news of investigations by Texas, Iowa and Illinois into mortgage practices at Ally. About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. With more than $176 billion in assets as of June 30, 2010, Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3% stake. Private equity firm Cerberus Capital Management LP keeps 14.9%, while General Motors Co. owns 6.7%. The Company has tapped Goldman Sachs Group Inc. and Citigroup Inc. to advise on a range of issues, including strategic alternatives for the mortgage business and repayment of taxpayer funds. Ally Financial carries "C" short term issuer credit ratings, and "B" long term issuer credit ratings, all with stable outlook, from Standard & Poor's. It has a "B3" issuer rating, with stable outlook, from Moody's. It has a "B" issuer default rating, with positive outlook, from Fitch. ALLY FINANCIAL: Says Foreclosure Practices Not Fraudulent --------------------------------------------------------- GMAC Mortgage believes there was nothing fraudulent or deceitful about its foreclosure practices. If procedural mistakes were made in the completion of certain legal documents, GMAC Mortgage reacted proactively to the issue and immediately undertook steps to remedy the situation. As previously stated, there have not been any inappropriate foreclosures. Typically a foreclosure is not filed until the borrowers are six to 12 months delinquent, and all other alternatives to foreclosure have been pursued such as loan modifications, repayment plans, short sales or deeds in lieu. The fact of default and the right to foreclose are not in dispute. GMAC Mortgage will vigorously defend this lawsuit and expects to be fully vindicated by the Ohio courts. About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. With more than $176 billion in assets as of June 30, 2010, Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3% stake. Private equity firm Cerberus Capital Management LP keeps 14.9%, while General Motors Co. owns 6.7%. The Company has tapped Goldman Sachs Group Inc. and Citigroup Inc. to advise on a range of issues, including strategic alternatives for the mortgage business and repayment of taxpayer funds. Ally Financial carries "C" short term issuer credit ratings, and "B" long term issuer credit ratings, all with stable outlook, from Standard & Poor's. It has a "B3" issuer rating, with stable outlook, from Moody's. It has a "B" issuer default rating, with positive outlook, from Fitch. AMERICAN MORTGAGE: Court Confirms Reorganization Plan ----------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court signed an order confirming American Mortgage Acceptance's First Amended Chapter 11 Plan of Reorganization. Bdata previously reported that under the Plan, the Debtor will transfer certain assets to Taberna Preferred Funding I in satisfaction of Taberna's $25 million in claims against the Debtor. The old common stock of the Debtor will be cancelled, and the reorganized Debtor will issue the new common stock to C-III Capital Partners, in satisfaction of C-III's $93 million in claims against the Debtor. Any administrative claims, allowed tax claims, allowed priority non-tax claims and allowed unsecured claims other than the claims of C-III and Taberna will be paid in full under the Plan. Holders of existing equity interests will receive no distribution under the Plan, and all equity interests will be cancelled. The Debtor will maintain REIT status, and as soon as practicable after the effective date, the Debtor will issue new preferred shares to raise capital to fund ongoing operations. About American Mortgage American Mortgage Acceptance Co. is a New York-based real estate investment trust. It filed for Chapter 11 protection on April 26, 2010 (Bankr. S.D.N.Y. Case No. 10-12196). Carol A. Felicetta, Esq., at Reid and Riege, P.C., and Sherri D. Lydell, Esq., and Teresa Sadutto-Carley, Esq., at Platzer, Swergold, Karlin, Levine Goldberg & Jaslow, LLP, assist the Company in its restructuring effort. The Company scheduled assets totaling $6,366,680 and debts totaling $119,968,443 as of the Petition Date. BLOCKBUSTER INC: Initial Case Conference Set for Oct. 19 -------------------------------------------------------- U.S. Bankruptcy Judge Burton Lifland has scheduled an initial case conference to be conducted in the Chapter 11 cases of Blockbuster Inc. and its debtor-affiliates on October 19, 2010, at 10:00 a.m., at Room 623 of the United States Bankruptcy Court for the Southern District of New York, in One Bowling Green, New York. Pursuant to Section 105(d) of the Bankruptcy Code, the Initial Case Conference will be held to consider the efficient administration of the Debtors' Chapter 11 cases, which may tackle, among other things, retention of the Debtors' professionals, use of alternative dispute resolution, timetables, and scheduling of additional case management conferences. The Court has directed the Debtors to give notice of the Initial Case Conference Order, at least seven days prior to the scheduled Conference, to: -- each committee appointed to serve in the cases pursuant to Section 1102 of the Bankruptcy Code, or if no committee has been appointed, the holders of the 30 largest unsecured claims determined on a consolidated basis; -- the holders of the five largest secured claims determined on a consolidated basis; -- the Office of the United States Trustee; -- the attorneys for the lenders under the Debtor-in- Possession Revolving Credit Agreement; and -- other parties, including indenture trustees. Judge Lifland also directed the Debtors to promptly file proof of service of the Notice with the Clerk of the Court. About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA, BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a library of more than 125,000 movie and game titles. Blockbuster said it had assets of $1,017,035,832 and debts of $1,464,939,759 as of August 1, 2010. Blockbuster Inc. and 12 U.S. affiliates initiated Chapter 11 bankruptcy proceedings with a pre-arranged reorganization plan in Manhattan on September 23, 2010 (Bankr. S.D.N.Y. Case No. 10-14997). Martin A Sosland, Esq., and Stephen Karotkin, Esq., at Weil, Gotshal & Manges, serve as counsel to the Debtors. Rothschild Inc. is the financial advisor. Alvarez & Marsal is the restructuring advisor with A&M managing director Jeffery J. Stegenga as chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. A steering group of senior secured noteholders is represented by James P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley Austin LLP. U.S. Bank National Association as trustee and collateral agent for the senior secured notes is represented by David McCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter & Hampton LLP. BDO Consulting is the financial advisor for U.S. Bank. Lenders led by Wilmington Trust FSB are providing the DIP financing. The DIP Agent is represented by Peter Neckles, Esq. and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York. Blockbuster's non-U.S. operations and its domestic and international franchisees, all of which are legally separate entities, were not included in the filings and are not parties to the Chapter 11 proceedings. Bankruptcy Creditors' Service, Inc., publishes BLOCKBUSTER BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Blockbuster Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) BLOCKBUSTER INC: Menter Rudin, et al., Represent Landlords ---------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, Kevin M. Newman, Esq., at Menter, Rudin & Trivelpiece, P.C., in Syracuse, New York -- knewman@menterlaw.com -- discloses that his firm represents these landlords in connection with Blockbuster Inc.'s bankruptcy cases: Dicephalous Properties II Company, LLC c/o Widewaters Group, Inc. Attn: Legal Department 5786 Widewaters Parkway DeWitt, NY 13214 WW Knightdale Property, LLC c/o Widewaters Group, Inc. 5786 Widewaters Parkway DeWitt, NY 13214 Northwood Plaza, LLC c/o Rivercrest Realty Associates, LLC 8816 Six Forks Road, Suite 201 Raleigh, NC 27615-2983 South Boston Properties, LLC c/o Rivercrest Realty Associates, LLC 8816 Six Forks Road, Suite 201 Raleigh, NC 27615-2983 Lilac Mall Associates, LLC c/o The Kernpner Corporation 257 Mamaroneck Avenue White Plains, NY 10605 South Plaza Center Associates, LLC c/o Wheeler Industries, Inc. 2529 Virginia Beach Boulevard, Suite 200 Virginia Beach, VA 23452 The Landlords currently hold or will hold unsecured and secured prepetition claims, rejection damages claims and administrative priority claims for unpaid postpetition rent and other charges. The full amount of each of the Landlords' claims is undetermined at this time, Mr. Newman says. In addition, Richard L. Zucker, Esq., at Lasser Hochman, LLC, in Roseland, New Jersey -- RZucker@LasserHochman.com -- informs the Court, pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, that his firm represents these landlords and creditors in their claims against Blockbuster Inc.'s bankruptcy estates: 95 Washington, LLC c/o Allied Management, Inc. 19 South Livingston Avenue Livingston, New Jersey 07039 Arlington Associates Parsippany, L.L.C. Garden Homes-Commercial 820 Morris Turnpike Short Hills, New Jersey 07078 Union Hill Nine Associates, L.L.C. Garden Homes-Commercial 820 Morris Turnpike Short Hills, New Jersey 07078 95 Washington, et al.'s claims are for unpaid prepetition rent, additional rent and other charges, unpaid stub rent, additional rent and other charges from September 23, 2010, to September 30, 2010, and, perhaps, unpaid postpetition rent, additional rent and other charges from October 1, 2010, Mr. Zucker tells the Court. He adds that the claims may also involve rejection damages subject to Section 502(b)(6) of the Bankruptcy Code. Moreover, James V. Lombardi, III, Esq., at Ross, Banks, May, Cron & Cavin, P.C., in Houston, Texas -- jlombardi@rossbanks.com -- discloses that his firm represents these landlords in connection with their claims in the Debtors' bankruptcy cases: AmREIT Casa Linda, LP 8 Greenway Plaza, Suite 1000 Houston, Texas 77046 AmREIT, a Texas real estate investment trust 8 Greenway Plaza, Suite 1000 Houston, Texas 77046 AmREIT Olmos Creek, LP 8 Greenway Plaza, Suite 1000 Houston, Texas 77046 AmREIT C-Ranch, LP 8 Greenway Plaza, Suite 1000 Houston, Texas 77046 AmREIT Lantern Lane, LP 8 Greenway Plaza, Suite 1000 Houston, Texas 77046 The AmREIT entities currently hold or will hold various claims with respect to certain non-residential real property leases, Mr. Lombardi reveals. He notes that the full amount of each of the Landlords' claims is undetermined at this time. About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA, BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a library of more than 125,000 movie and game titles. Blockbuster said it had assets of $1,017,035,832 and debts of $1,464,939,759 as of August 1, 2010. Blockbuster Inc. and 12 U.S. affiliates initiated Chapter 11 bankruptcy proceedings with a pre-arranged reorganization plan in Manhattan on September 23, 2010 (Bankr. S.D.N.Y. Case No. 10-14997). Martin A Sosland, Esq., and Stephen Karotkin, Esq., at Weil, Gotshal & Manges, serve as counsel to the Debtors. Rothschild Inc. is the financial advisor. Alvarez & Marsal is the restructuring advisor with A&M managing director Jeffery J. Stegenga as chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. A steering group of senior secured noteholders is represented by James P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley Austin LLP. U.S. Bank National Association as trustee and collateral agent for the senior secured notes is represented by David McCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter & Hampton LLP. BDO Consulting is the financial advisor for U.S. Bank. Lenders led by Wilmington Trust FSB are providing the DIP financing. The DIP Agent is represented by Peter Neckles, Esq. and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York. Blockbuster's non-U.S. operations and its domestic and international franchisees, all of which are legally separate entities, were not included in the filings and are not parties to the Chapter 11 proceedings. Bankruptcy Creditors' Service, Inc., publishes BLOCKBUSTER BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Blockbuster Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) BNA SUBSIDIARIES: Organizational Meeting to Form Panel on Oct. 8 ---------------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on October 8, 2010, at 10:00 a.m. in the bankruptcy case of BNA Subsidiaries, LLC. The meeting will be held at The DoubleTree Hotel, 700 King Street, Wilmington, DE 19801. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. About BNA Bureau of National Affairs is an independent publisher of information and analysis products for professionals in business and government. Petersborough, New Hampshire-based BNA Subsidiaries, LLC -- aka G-2 Reports, et al. -- was formed on January 1, 2009, through the merger of Kennedy Information, Inc., which was acquired by BNA in 2000, and the Institute of Management and Administration, Inc. (or IOMA), which was acquired in 1997. BNA Subsidiaries filed for Chapter 11 bankruptcy protection on September 23, 2010 (Bankr. D. Del. Case No. 10-13087). Marion M. Quirk, Esq., and Norman L. Pernick, Esq., at Cole, Schotz, Meisel, Forman & Leonard, assist the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $1 million to $10 million. BOSTON GENERATING: Fortress, MatlinPatterson Oppose "Quick" Sale ---------------------------------------------------------------- David McLaughlin at Bloomberg News reports that Fortress Investment Group LLC and other creditors objected to Boston Generating LLC's effort to proceed with its $1.1 billion sale to Constellation Energy Group Inc. MatlinPatterson Global Advisers LLC, which owns second-lien debt, said the sale process "is nothing more than a fire sale of a fundamentally healthy company." It added that the Constellation bid is "artificially low" and selling the business at this time is one of the worst times because of "regulatory uncertainty." Fortress and CarVal Investors LLC said in their objection that they are prepared to invest "substantial amounts" of new equity into Boston Generating as well as provide a loan to the company during its bankruptcy. They say any sale should take place only as part of a bankruptcy plan, which would require creditor support. The sale is backed by lenders who hold about half of Boston Generating's $1.1 billion in first-lien debt, according to court papers. The company also has about $773 million in second-lien and mezzanine debt. The Debtors intend to sell their business to Constellation Holdings, Inc., for $1.1 billion, absent higher and better offers or the assets. The bid procedures proposed by the Debtors provide for these milestones: -- October 4, 2010, 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, 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, the deadline by which all binding bids must be actually received pursuant to the bidding procedures; -- October 29, 2010, the date of the auction, if one is needed; and -- November 2, 2010, 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. JPMorgan 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. The Official Committee of Unsecured Creditors in the Chapter 11 cases of Boston Generating, LLC, and its debtor-affiliates asks the U.S. Bankruptcy Court for the Southern District of New York for permission to employ the law firm of Jager Smith P.C. as its counsel. BURGER KING: S&P Retains CreditWatch Negative on 'BB-' Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB-' corporate credit rating on Miami-based Burger King Corp., a subsidiary of Burger King Holdings Inc., remains on CreditWatch with negative implications. S&P placed the rating on CreditWatch on Sept. 2, 2010, after an affiliate of 3G Capital Inc. announced that it had entered into a definitive agreement to purchase the company for $24.00 per share. S&P is affirming the 'BB-' issue-level rating on the company's $2 billion term loan, consisting of a $1.85 billion term loan and a $150 million revolving credit facility. The recovery rating on the debt remains '1'. S&P is also affirming the senior unsecured notes rating of 'B-'. The '5' recovery rating on the notes remains unchanged. This action comes after the amounts of the debt financing changed. Initially, the size of the term loan was to be $1.75 billion and the unsecured notes were to be $900 million. The total funded debt does not change and thus leverage ratios are unaffected as a result of the change. Pro- forma interest costs decrease by approximately $4 million as a result of the change, but that does not have a meaningful affect on interest coverage and cash flow ratios. "The rating on Burger King reflects S&P's belief that it will be difficult for the company to grow comparable-store sales in the U.S. because of both its participation in the highly competitive quick-service restaurant industry and the likelihood that domestic unemployment will remained elevated in the near term," explained Standard & Poor's credit analyst Charles Pinson-Rose. S&P expects that the company can improve operating performance through international restaurant growth and cost management. S&P also expects Burger King to use most of its free cash flow generation to reduce debt, leading to credit metric enhancement. Nonetheless, S&P expects the company to be highly leveraged in the near term. C&D TECHNOLOGIES: NYSE Suspends Trading Effective Oct. 8 -------------------------------------------------------- The NYSE Regulation, Inc., on October 4, 2010, provided C&D Technologies, Inc., with notice that trading on the New York Stock Exchange of the Company's common stock would be suspended prior to the market opening on October 8, 2010. The New York Stock Exchange in its October 4, 2010 press release stated, "The decision to suspend the Company's common stock was reached in view of the fact that the Company has fallen below the New York Stock Exchange's continued listing standard regarding average global market capitalization over a consecutive 30 trading day period of less than $15 million, which is a minimum threshold for listing." The New York Stock Exchange press release also stated, "The Company has a right to a review of this determination by a Committee of the Board of Directors of NYSE Regulation. Application to the Securities and Exchange Commission to delist the issue is pending the completion of applicable procedures, including any appeal by the Company of the NYSE Regulation staff's decision." The Company plans to appeal the determination. About C&D Technologies Based in Blue Bell, Pennsylvania, C&D Technologies, Inc. (NYSE: CHP) -- http://www.cdtechno.com/-- engineers, manufactures, sells and services fully integrated reserve power systems for regulating and monitoring power flow and providing backup power in the event of primary power loss until the primary source can be restored. The Company's balance sheet at July 31, 2010, showed $239.4 million in assets, $251.1 million in total liabilities, and a stockholders' deficit of $11.7 million. The Company says that its cumulative losses, substantial indebtedness and likely future inability to comply with certain covenants in the agreements governing its indebtedness, including among others, covenants related to continued listing on a national automated stock exchange and future EBITDA requirements, and in addition, its current current liquidity situation, raise substantial doubt as to its ability to continue as a going concern for a period longer than 12 months from July 31, 2010. On September 14, 2010, the Company entered into a restructuring support agreement with two convertible noteholders who together hold approximately 56% of the aggregate principal amount of the 2005 Notes and the 2006 Notes. The supporting noteholders have agreed to a proposed restructuring of the 2005 Notes and the 2006 Notes which will be effected through (i) an offer to exchange the outstanding 2005 Notes and 2006 Notes for up to 95% of the Company's common stock, or (ii) a prepackaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company has agreed to solicit votes from the Company's stockholders and the holders of the Notes to accept the prepackaged plan concurrently with the exchange offer. The Company also continues to be engaged in active discussions with lenders under its Credit Facility regarding a restructuring of its capital structure. C&D TECHNOLOGIES: To Proceed With Dual-Track Restructuring ---------------------------------------------------------- C&D Technologies, Inc., said it is moving forward on a plan, announced on September 14, 2010, to launch an out-of-court exchange offer for its outstanding convertible notes and to simultaneously seek support for a voluntary prepackaged plan of reorganization as a back-up alternative. Based in Blue Bell, Pennsylvania, C&D Technologies, Inc. (NYSE: CHP) -- http://www.cdtechno.com/-- engineers, manufactures, sells and services fully integrated reserve power systems for regulating and monitoring power flow and providing backup power in the event of primary power loss until the primary source can be restored. The Company's balance sheet at July 31, 2010, showed $239.4 million in assets, $251.1 million in total liabilities, and a stockholders' deficit of $11.7 million. The Company says that its cumulative losses, substantial indebtedness and likely future inability to comply with certain covenants in the agreements governing its indebtedness, including among others, covenants related to continued listing on a national automated stock exchange and future EBITDA requirements, and in addition, its current current liquidity situation, raise substantial doubt as to its ability to continue as a going concern for a period longer than 12 months from July 31, 2010. On September 14, 2010, the Company entered into a restructuring support agreement with two convertible noteholders who together hold approximately 56% of the aggregate principal amount of the 2005 Notes and the 2006 Notes. The supporting noteholders have agreed to a proposed restructuring of the 2005 Notes and the 2006 Notes which will be effected through (i) an offer to exchange the outstanding 2005 Notes and 2006 Notes for up to 95% of the Company's common stock, or (ii) a prepackaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company has agreed to solicit votes from the Company's stockholders and the holders of the Notes to accept the prepackaged plan concurrently with the exchange offer. The Company also continues to be engaged in active discussions with lenders under its Credit Facility regarding a restructuring of its capital structure. CB RICHARD: Moody's Assigns 'Ba1' Rating on $350 Mil. Notes ----------------------------------------------------------- Moody's Investors Service assigned a (P)Ba1 rating to CB Richard Ellis' proposed $350 million senior unsecured debt issuance and a (P)Ba1 to the company's proposed $1.35 billion senior bank credit facility and, simultaneously, placed the senior subordinated rating (at Ba3) on review for upgrade. The new senior unsecured notes will have a maturity of 10 years, will rank pari passu with other unsecured debt and will be guaranteed by most of the company's wholly-owned domestic subsidiaries on an unsecured basis. The senior bank credit facility will replace the existing $2 billion bank facility (senior debt at Ba2). The ratings outlook was revised to stable from negative. On Review for Upgrade: Issuer: CB Richard Ellis Services, Inc. -- Senior Subordinated Regular Bond/Debenture, Ba3 Assignments: Issuer: CB Richard Ellis Services, Inc. -- Senior Secured Bank Credit Facility (Revolver), Assigned (P)Ba1 -- Senior Secured Bank Credit Facility (Term Loans), Assigned (P)Ba1 -- Senior Unsecured Regular Bond/Debenture, Assigned (P)Ba1 Outlook Actions: Issuer: CB Richard Ellis Services, Inc. -- Outlook, Changed To Stable From Negative Ratings Rationale The review for upgrade and newly assigned ratings reflect the substantive deleveraging that will result from CBRE's recently announced new $1.35 billion secured credit facility and $350 million proposed unsecured note offering. The proceeds of the new issues, in conjunction with cash on balance sheet, will be used to repay all existing term and revolver debt. This results in marked improvement in the company's credit metrics, with debt/EBITDA declining to 3.53x as of 6/30/10 on a TTM pro-forma basis from 4.71x. In addition, the company's debt maturity profile will be extended resulting in a simpler, more flexible capital structure. The ratings also take into consideration stabilization and improvement in all of CBRE's global markets, and in particular transaction activity in the Americas, which contributed 62% of 2Q10 revenues. The (P)Ba1 senior unsecured ratings reflect CBRE's dominant position in the commercial real estate services industry and strong global platform, with a diversified revenue base. The ratings also account for the cash flow volatility inherent in its transaction businesses and its appetite for on-going balance sheet leverage. The stable outlook reflects Moody's expectation that operating performance and cash flow leverage will improve with the recovery in the commercial property market fundamentals. Moody's expects Debt to EBITDA to reach approximately 3.0X by YE10 and to be maintained between 2.0X and 3.0X over the intermediate term; fixed charge coverage is expected to exceed 3.0X by YE10. A rating upgrade would be predicated upon a permanent reduction in leverage as defined by Debt/EBITDA below 2X (accounting for CBRE's proportionate share of notes payable), fixed charge coverage sustained above 4.5X and broader global diversification. A downgrade would result should Debt/EBITDA increase to greater than 3X and fixed charge coverage decline to below 3X, both on a sustained basis. Erosion in market leadership or a large leveraged acquisition could also result in a downgrade. Moody's last rating action with respect to CB Richard Ellis was on June 10, 2009 when Moody's affirmed the senior secured bank credit facility at Ba2 and assigned a Ba3 rating to its senior subordinated debt. The rating outlook was negative. CB Richard Ellis' ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against issuers both within and outside of CBRE's core industry and the company's ratings are believed to be comparable to those of other issuers of similar credit risk. CB Richard Ellis Group, Inc., a direct parent of CB Richard Ellis Services, Inc., is the largest global provider of commercial real estate services in terms of revenue. Services it provides include property sales/leasing brokerage, property management, corporate services and facilities management, capital markets advice and execution, appraisal/valuation services, research and consulting. CB Richard Ellis is headquartered in Los Angeles, California, USA, and has approximately 29,000 employees and over 300 offices across more than 50 countries. CB RICHARD: S&P Affirms Counterparty Credit Rating at 'BB' ---------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'BB' long-term counterparty credit rating on CB Richard Ellis Services Inc. and changed its outlook to stable from negative. At the same time, S&P assigned a 'BB' debt rating and a recovery rating of '3'to CBRE's announced $1.35 billion credit facility. The recovery rating reflects S&P's expectation that lenders would realize a meaningful (50%-70%) recovery of principal in the event of a payment default. S&P also assigned a 'B+' senior unsecured debt rating and a recovery rating of '6'to CBRE's announced $350 million in senior unsecured notes. The recovery rating reflects S&P's expectation that lenders would realize negligible (0%-10%) recovery of principal in the event of a payment default. "The stable outlook reflects S&P's expectation that CBRE's financial performance will benefit from gradually improving economic conditions, cost saving initiatives, and the reduced leverage that will accompany its proposed refinancing transaction," said Standard & Poor's credit analyst Rian Pressman, CFA. By virtue of its industry-leading franchise in CRE services, S&P believes that CBRE will benefit as gradually improving economic conditions drive increased CRE market activity. CBRE's earnings improved materially during the first half of 2010, driven by year- over-year gains in sales, leasing, and outsourcing services. S&P expects this trend to continue, especially in the fourth quarter, which typically benefits from seasonally higher sales and leasing volume. The global nature of its franchise allows the company to benefit from the more-rapid economic recovery in certain parts of the world. Lastly, CBRE's profitability should benefit from positive operating leverage, given $600 million of cost-saving initiatives implemented during the past few years. CBRE's proposed refinancing transaction also supports the stable outlook, as it will reduce outstanding debt and extend debt maturities. As part of its proposed transaction, S&P expects CBRE to reduce outstanding recourse debt by about $500 million to $1.4 billion, pro-forma as of June 30, 2010. (Total debt is also adjusted for the $150 million repayment of existing secured debt on July 1, 2010.) S&P expects the anticipated reduction in recourse indebtedness, along with gradually increasing levels of adjusted EBITDA, to improve CBRE's leverage and debt-service ratios, which heretofore had been relatively weak for the rating. The proposed transaction will also materially extend debt maturities, thereby reducing refinancing risk. The $350 million of unsecured notes will be due in 2020. S&P believes this time frame allows for a recovery of the CRE markets, while enabling CBRE to lock in economically attractive financing. The stable outlook reflects CBRE's market-leading franchise in CRE services and S&P's expectation that its financial profile will be strengthened by the refinancing transaction and gradually improving economy. Continued improvement in leverage and debt- service ratios could result in positive ratings action. The company's historically aggressive financial management, the cyclical nature of CRE sales and leasing activity, and the lack of tangible equity -- which S&P believes is important to support CBRE's direct real estate investment businesses -- limit upward rating movement. CENTAUR LLC: Multiple Bids Received for Valley View Downs Project ----------------------------------------------------------------- Mary Grzebieniak, writing for The Vindicator, reports that multiple bids have been received for the Valley View Downs project. The Vindicator relates that Lawrence County Commissioner Dan Vogler said Tuesday that commissioners "are all very pleased with the news" and noted that the fact that several bids were received means "there is still life in the project." An auction has been slated before the U.S. Bankruptcy Court for the District of Delaware on Oct. 20. According to the Vindicator, Mr. Vogler made the announcement at the end of Tuesday's regular commissioners meeting. He said Valley View Downs' general manager of gaming, Joe DeRosa, contacted the commissioners' office earlier Tuesday and informed them that bids had been received, though Mr. Vogler said the number of bids and bidders' names were not released. Valley View Downs filed for Chapter 11 bankruptcy protection in October 2009, followed in March, 2010, by its parent company, Centaur LLC of Indianapolis and two other Centaur subsidiaries. About Centaur, LLC 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 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 estimated its assets and debts at $500 million to $1 billion as of the Petition Date. CHINA TEL GROUP: Posts $29 Million Net Loss in June 30 Quarter -------------------------------------------------------------- China Tel Group, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $29.0 million on $236,584 of revenue for the three months ended June 30, 2010, compared with a net loss of $10.4 million on $199,238 of revenue for the comparable period in 2009. The Company has incurred cumulative losses since inception (April 4, 2008) of $201.6 million. In addition, the Company has negative working capital of $25.6 million as of June 30, 2010, and a stockholder's deficit of $17.3 million. Historically, the Company has financed its operations through the sale of equity and convertible debt, as well as borrowings from related parties. As of June 30, 2010, the Company had cash of $138,495 and current liabilities of approximately $26.2 million. The Company expects to continue to incur net losses for the foreseeable future. The Company's balance sheet at June 30, 2010, showed $8.9 million in total assets, $26.2 million in total liabilities, and a stockholders' deficit of $17.3 million. Mendoza Berger & Company, LLP, in Irvine, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has incurred a net loss of $56.0 million for 2009, cumulative losses of $165.4 million since inception, a negative working capital of $68.8 million and a stockholders' deficit of $63.2 million, and that the Company's viability is dependent upon its ability to obtain future financing and the success of its future operations. A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6c23 About China Tel Based in San Diego, California, and Shenzhen, China, China Tel Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/-- provides high speed wireless broadband and telecommunications infrastructure engineering and construction services. Through its controlled subsidiaries, the Company provides fixed telephony, conventional long distance, high-speed wireless broadband and telecommunications infrastructure engineering and construction services. ChinaTel is presently building, operating and deploying networks in Asia and South America: a 3.5GHz wireless broadband system in 29 cities across the People's Republic of China with and for CECT-Chinacomm Communications Co., Ltd., a PRC company that holds a license to build the high speed wireless broadband system; and a 2.5GHz wireless broadband system in cities across Peru with and for Perusat, S.A., a Peruvian company that holds a license to build high speed wireless broadband systems. CHESTER LYN: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Joint Debtors: Chester A. Lyn Brenda A. Lyn 129 Cornwelll Drive Bear, DE 19701 Bankruptcy Case No.: 10-13214 Chapter 11 Petition Date: October 4, 2010 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Debtors' Counsel: Christopher Dean Loizides, Esq. LOIZIDES & ASSOCIATES 1225 King Street, Suite 800 Wilmington, DE 19801 Tel: (302) 654-0248 Fax: (302) 654-0728 E-mail: loizides@loizides.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/deb10-13214.pdf Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- JB & CAL Inc. 10-13215 10/04/10 JBC Properties 13216 10/04/10 CHINA VILLAGE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: China Village, LLC 428 South Main Street Milpitas, CA 95035 Bankruptcy Case No.: 10-60373 Chapter 11 Petition Date: October 4, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Jose) Judge: Arthur S. Weissbrodt Debtor's Counsel: Lawrence A. Jacobson, Esq. LAW OFFICES OF COHEN AND JACOBSON 900 Veterans Boulevard, #600 Redwood City, CA 94063 Tel: (650) 261-6280 E-mail: laj@jacobsonattorneys.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Thomas Nguyen, member. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Fresh & Natural, Inc. -- $600,000 426 South Main Street Milpitas, CA 95035 BSB Design -- $148,304 1601 West Lake Parkway, Suite 200 Des Moines, IA 50266 Interface Engineering, Inc. -- $103,783 708 SW Third Avenue, Suite 400 Portland, OR 97204 Dennis Brown -- $61,912 Kobza & Associates -- $49,859 Berliner Cohen -- $34,928 Professional Services Industries -- $27,297 RTKL -- $27,000 Sandis -- $25,440 Gates & Associates -- $17,734 Kleinfelder -- $14,189 City of Fremont -- $12,893 Do, Le & Co -- $10,000 Republic ITS -- $9,275 Twinwood -- $8,893 Acanthus Architecture & Design -- $7,320 Structural Engineers, Inc. -- $5,000 Statewide Roofing -- $4,106 Last & Faoro -- $3,776 Foley Electric -- $3,326 CIT GROUP: To Redeem Additional $860 Million in Series B Notes -------------------------------------------------------------- CIT Group Inc. will redeem all of its outstanding 10.25% Series B Second Lien Notes maturing in 2015 and 2016. The Company has provided a redemption notice to the trustee and intends to complete the redemption on November 4, 2010. "We will continue to proactively improve our cost of capital through repayment or refinancing with lower cost funding as we revitalize the CIT franchise and deepen our support of our clients." The aggregate principal amount of the 10.25% Series B Notes to be redeemed is approximately $860 million. As provided under the terms of the Series B Notes, the redemption price will be 103.5% of the aggregate principal amount redeemed. After this redemption, approximately $750 million of Series B Notes maturing in 2017 will remain outstanding. "Improving our cost of funds by reducing our existing high cost debt facilitates our critically important role as a provider of essential financing to small business and middle market companies," said John A. Thain, Chairman and Chief Executive Officer. "We will continue to proactively improve our cost of capital through repayment or refinancing with lower cost funding as we revitalize the CIT franchise and deepen our support of our clients." Last month, the Company provided a redemption notice to the trustee to redeem all of its outstanding 10.25% Series B Second Lien Notes maturing in 2013 and 2014. Combined with the 2015 and 2016 maturities, the Company has now announced the redemption of approximately $1.4 billion of Series B Second Lien Notes in total. Earlier this year, the Company also repaid $4.5 billion, or 60%, of its First Lien debt and successfully refinanced the balance at a lower cost and with more flexible terms. About CIT Group Founded in 1908, CIT Group Inc. (NYSE: CIT) -- http://www.cit.com/ -- is a bank holding company with more than $40 billion in finance and leasing assets. It provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. About CIT Founded in 1908, CIT Group (NYSE: CIT) -- http://www.cit.com/-- is a bank holding company with more than $40 billion in finance and leasing assets. It provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. CIT Group Inc. and affiliate CIT Group Funding Company of Delaware LLC announced a Chapter 11 filing on November 1, 2009 (Bankr. S.D.N.Y. Case No. 09-16565). Evercore Partners, Morgan Stanley and FTI Consulting served as the Company's financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel in connection with the restructuring plan. Sullivan & Cromwell served as legal advisor to CIT's Board of Directors. CIT Group on November 1 announced that, with the overwhelming support of its debtholders, the Board of Directors voted to proceed with the prepackaged plan of reorganization for CIT Group Inc. and a subsidiary that will restructure the Company's debt and streamline its capital structure. None of CIT's operating subsidiaries, including CIT Bank, a Utah state bank, were included in the filings. On December 8, the Court confirmed the Debtors' prepackaged plan. On December 11, CIT emerged from bankruptcy. * * * As reported by the Troubled Company Reporter on May 25, 2010, DBRS has assigned various ratings including an Issuer Rating of B (high) to CIT Group Inc. Concurrently, DBRS has assigned a BB (high) rating to CIT's First Lien Secured Credit Facility, a BB (low) rating to the second lien Series B Notes, a B (high) rating to the Series A Notes, a B rating to the Unsecured Long-Term Debt and a Short-Term rating of R-4. The trend on all long-term ratings is Positive. The TCR on August 4, 2010, reported that DBRS affirmed those ratings. DBRS expects CIT should continue to make progress in improving and diversifying its funding profile, while restoring underlying profitability. On May 25, the TCR also reported that Moody's Investors Service assigned a B3 corporate family rating to CIT Group Inc. The TCR said May 3, 2010, Standard & Poor's Ratings Services assigned its 'B+/B' counterparty credit rating to CIT. CMB III: Union Fidelity Tries to Block Cash Collateral Use ---------------------------------------------------------- Union Fidelity Life Insurance Company has asked the U.S. Bankruptcy Court for the District of Arizona to not allow C.M.B. III, L.L.C., to use cash collateral. The Debtor hasn't sought court approval on cash collateral use. Union Fidelity asserts that it is entitled to an super-priority administrative claim, replacement liens, adequate protection payments, and/or sanctions. In September 2006, Union Fidelity made a loan to the Debtor evidenced by, among other things, the Promissory Note dated September 7, 2006, in the original principal amount of $18,000,000 executed by the Debtor in favor of Union Fidelity. As of August 31, 2010, the outstanding amounts owing from the Debtor to Union Fidelity were at least $17,033,009.78. Union Fidelity says that it holds a valid and perfected first priority lien and security interest in the Debtor's assets, including cash collateral and rents generated from the Debtor's single asset real estate. Union Fidelity's cash collateral is being segregated and sequestered in a separate bank account pending further proceedings before the Court. Union Fidelity wants an accounting of all cash collateral in the possession of the Debtor as of the Petition Date, and all proceeds of any collateral obtained postpetition. Union Fidelity says that prepetition, the Debtor failed to remit any rents to Union Fidelity collected during July, August, or September 2010. To obtain control of the rents and to ensure proper collection and turnover of rents going forward, on September 14, 2010, Union Fidelity filed a complaint for appointment of a receiver ex parte in Maricopa County Superior Court to enforce its rights and remedies. The Superior Court set a hearing on the Receivership Complaint on September 24, 2010, but on September 23, 2010, the Debtor already filed for bankruptcy protection. Union Fidelity is represented by Quarles & Brady LLP. Phoenix, Arizona-based C.M.B. III, L.L.C., filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 10-30496) on September 23, 2010. Richard M. Lorenzen, Esq., Perkins Coie Brown & Bain P.A., assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Chapter 11 filing. COLONIAL BANCGROUP: Top Hat Plan Assets Property of the Estate -------------------------------------------------------------- WestLaw reports that a deferred compensation plan that a Chapter 11 debtor had established for the benefit of its key executives, in order to provide such executives with an opportunity to defer taxation on a portion of their earnings, qualified as an "unfunded," "top hat plan," any contributions to which were included in the "property of the estate" and subject to the claims of the debtor's creditors. The plan specified that participants would have "no legal or equitable rights, interest, or claims in any property or assets of the company," but would merely have a right to file claims under plan for the payment of benefits. It also provided that the debtor's obligation under the plan would be "an unfunded and unsecured promise" to pay money in the future. Language in the plan to the effect that all amounts contributed by participating employees would be "100% vested at all times" did not create an ambiguity. Employees could have "vested" rights in an "unfunded" plan in that their right to file a claim for benefits was not subject to forfeiture. In re The Colonial Bancgroup, Inc., --- B.R. ----, 2010 WL 2595289, slip op. https://ecf.almb.uscourts.gov/docpub/01606561715 (Bankr. M.D. Ala.) (Williams, J.). About The Colonial BancGroup Headquartered in Montgomery, Alabama, The Colonial BancGroup, Inc., (NYSE: CNB) owned 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 (Bankr. M.D. Ala. Case No. 09-32303) on August 25, 2009. 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. CPJFK, LLC: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: CPJFK, LLC 250 Pharr Road, Suite 2109 Atlanta, GA 30305 Bankruptcy Case No.: 10-89928 Chapter 11 Petition Date: October 4, 2010 Court: U.S. Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: John A. Moore, Esq. THE MOORE LAW GROUP, LLC 1745 Martin Luther King Jr. Drive Atlanta, GA 30314 Tel: (678) 288-5600 Fax: (888) 553-0071 E-mail: jmoore@moorelawllc.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Sunil Mir, manager. DAVIS HERITAGE: Section 341(a) Meeting Scheduled for Nov. 3 ----------------------------------------------------------- The U.S. Trustee for Region 21 will convene a meeting of Davis Heritage GP Holdings, LLC's creditors on November 3, 2010, at 1:30 p.m. The meeting will be held at Jury Assembly Room, U.S. Courthouse, 401 S.E. First Avenue, Gainesville, FL. 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. Newberry, Florida-based Davis Heritage GP Holdings, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Fla. Case No. 10- 10515) on September 26, 2010. Justin M. Luna, Esq., at Latham, Shuker, Eden & Beaudine, LLP, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. DAVITA INC: Fitch Assigns 'BB' Rating on $3 Bil. Senior Loan ------------------------------------------------------------ Fitch Ratings has assigned a 'BB' rating to Davita Inc.'s proposed $3 billion senior secured bank credit facility and a 'BB-' rating to its proposed $1.45 billion senior unsecured notes. In addition, Fitch has affirmed DaVita's existing ratings: -- Issuer Default Rating at 'BB-'; -- Senior secured bank credit facility at 'BB+'; -- Senior unsecured notes at 'BB-'; -- Senior subordinated notes at 'B'. The Rating Outlook is Stable. The ratings apply to approximately $3.38 billion of debt outstanding as of June 30, 2010. Fitch expects to withdraw Davita's existing debt issue ratings upon the closing of the proposed senior secured bank credit facility and the Nov. 1, 2010 expiration of the company's pending tender offers for its outstanding senior unsecured notes and senior subordinated notes, assuming that the tender offers result in an immaterial amount of the existing notes remaining outstanding. Fitch expects that Davita will use the proceeds of the proposed senior secured bank credit facility and proposed senior unsecured notes to retire the existing bank facility, as well as fund the tender offers for the existing notes and for other purposes including acquisitions and share repurchases. DaVita's 'BB-' IDR and Stable Outlook reflect these key rating drivers: -- The near-term potential for margin compression from governmental reimbursement pressure, especially related to the switch to the new Medicare end-stage renal disease bundled prospective payment system to take effect Jan. 1, 2011; -- The historically acquisitive nature of the company's operations and management's willingness to increase debt leverage; -- DaVita's adequate liquidity position, good financial flexibility, and ability to consistently generate meaningful free cash flow; -- Long-term growth potential that is largely unaffected by healthcare reform. Near-Term Potential for Margin Pressure, New Bundling Rule: On July 23, 2010, The Centers for Medicaid and Medicare Services issued its final rule outlining the terms of its new bundled Medicare ESRD PPS. The bundled PPS will take effect Jan. 1, 2011. Most significantly, the new bundling rule brings injectable drugs, including erythropoietin stimulating agents, into the bundle. Medicare currently reimburses ESRD treatment providers for these drugs on a per unit basis, outside of the bundle. Fitch notes that ESAs account for approximately 60% of separately billable services and 25% of the total payment for ESRD services. Top-line and margin pressure from the new bundling system is probable for dialysis providers, as CMS estimates that the 2011 base rate per dialysis treatment will reimburse large dialysis organizations at a level 3.7% lower than that at which the current ESRD reimbursement system would have in 2011. Fitch believes that DaVita can effectively mitigate this revenue pressure by using its large scale and low operating leverage to manage costs and to negotiate pricing for the products and services it uses, thereby increasing profitability within the bundle. Historically Acquisitive Operations: The company has been operating in a relatively conservative manner over the past 12-18 months as a result of several factors, including some uncertainty surrounding the industry's operating and financial outlook due to healthcare reform and the pending switch to bundled Medicare reimbursement for ESRD. Although DaVita has historically been highly acquisitive, this uncertainty, combined with recently high asset valuations of potential targets, has somewhat curtailed M&A activity. Since the end of 2009, debt leverage had recently been trending below the company's stated target level of debt-to-EBITDA net of cash on hand of 3.0 times to 3.5x (for the latest 12 months ended June 30, 2010, Fitch calculated net debt-to-EBITDA of 2.3x and gross debt-to-EBITDA of 2.7x) and Fitch expected the company's leverage to increase to within its target range in the near term. In general, Fitch anticipates DaVita will manage its capital structure slightly more aggressively now that there is incremental clarity with respect to the impacts of healthcare reform and Medicare ESRD reimbursement. Pro forma for the pending refinancing, the capital structure will be upsized by about $1 billion, and Fitch anticipates a Dec. 31, 2010 debt balance of $4.2 billion. Pro forma gross leverage based Fitch's projected Dec. 31, 2010 EBITDA level is 2.2x through the secured bank debt, and 3.3x through the unsecured notes. While Fitch did not anticipate that the company would have difficulty accessing the capital markets for refinancing of its 2011-2012 bank debt maturities, the action to address near-term debt maturities does removes some risk from Davita's otherwise solid liquidity profile. Fitch expects that DaVita will deploy cash raised through upsizing the capital structure to fund acquisitions and share repurchases. Consistent FCF, Solid Liquidity, and Good Financial Flexibility: Free cash flow for the LTM period ending June 30, 2010, was approximately $642 million, significantly higher than the $392 million for the year ended Dec. 31, 2009. Increased FCF has been supported almost entirely by positive working capital trends, including an impact on cash flow of $142 million from working capital in the second quarter of 2010 alone. Fitch expects DaVita to generate between $300 million and $400 million in FCF for the year ending Dec. 31, 2010. Liquidity at June 30, 2010, comprised $597 million in cash, cash equivalents, and short-term investments as well as $198 million of availability under the company's $250 million secured revolving credit facility (net of approximately $52 million of outstanding letters of credit). DaVita has good financial flexibility as a result of relatively low fixed costs (approximately 35% of total) and a high percentage of total capital expenditures that are discretionary. Margin compression from government reimbursement pressure has been mitigated by sales growth and fairly good SG&A control, resulting in relatively dependable cash flow generation. Long-Term Growth Potential Largely Unaffected by Healthcare Reform: Unlike much of the rest of the healthcare industry, which is likely to see increased volumes and utilization, long-term growth potential for DaVita and its peers will be largely unaffected by healthcare reform, since Medicare already covers most Americans who require ESRD treatment. Nevertheless, Fitch expects 3% to 3.5% annual patient growth in the ESRD market, driven by an aging patient population and lifestyle trends that increase the incidence of diabetes and hypertension, which are two leading causes of ESRD. Additionally, DaVita's advancements in dialysis techniques, technology, and supportive therapies could extend the lives of existing patients, further adding to the growth rate of this patient population. New technologies and supportive therapies could provide additional opportunities for revenue growth as well. Guidelines for Further Rating Actions: As reflected in the Stable Outlook, Fitch believes movement in the ratings is unlikely based on its near- to medium-term operating outlook for DaVita. However, a downgrade of the ratings could be precipitated by gross debt-to-EBITDA sustained above 4.0x, which would probably be the result of poor EBITDA trends due to a pressured operating profile. In general, Fitch expects DaVita's financial results to be somewhat volatile in 2011 as the industry shifts to reimbursement under the Medicare bundle. However, it expects DaVita will be able to mostly offset pressure on top-line revenues and maintain its profitability on the basis of cost savings under the bundle. Other potential operating strain could come from increased pressure on relatively higher margin commercial insurer reimbursement rates exacerbated by negative patient mix shift to lower margin government payors. At June 30, 2010, DaVita had approximately $3.38 billion in outstanding debt, consisting of approximately $1.8 billion in term loans under its senior secured credit facility and $1.55 billion of senior and senior subordinated notes. Debt maturities are: Senior secured credit facility: -- $43.8 million due for the remainder of 2010; -- $65.6 million due in 2011; -- $1.7 billion due in 2012. Senior unsecured notes: -- $700 million due 2013. Senior subordinated notes: -- $850 million due 2015. DIVERSIFIED LENDING: Owner Arrested for $220MM Ponzi Scheme ----------------------------------------------------------- Bloomberg News reports that California businessman Bruce Fred Friedman, 60, has been arrested in France in connection with a $225 million Ponzi scheme. According to prosecutors in Los Angeles, Mr. Friedman, the owner of Sherman Oaks, California-based Diversified Lending Group Inc., offered investors secured notes promising annual returns of 9% or 12% and told them the company bought, rehabilitated and rented out real estate properties. He used the investors' funds for other business ventures, including those of family members, and a charitable foundation. Mr. Friedman's victims lost an estimated $191 million. The charges against Mr. Friedman include money laundering and fraud. DJO FINANCE: Moody's Assigns 'Caa1' Rating on $300 Mil. Notes ------------------------------------------------------------- Moody's Investors Service assigned a Caa1 (LGD6, 93%) rating to DJO Finance LLC's proposed offering of $300 million of senior subordinated notes due 2017. Proceeds are expected to repay the existing $200 million subordinated notes and approximately $77 million of the proceeds will be used to repay a portion of its existing term loan debt. Upon the repayment of the term debt, Moody's will upgrade the ratings on the company's existing bank facilities to Ba2 (LGD2, 21%) from Ba3 (LGD2, 24%). Moody's also affirmed the other ratings of DJO, including the B2 Corporate Family and Probability of Default Ratings. The ratings outlook is stable. Ratings Rationale The proposed refinancing will extend out the maturity on the company's subordinated debt, reduce its interest obligations and supports its liquidity by providing some cushion under its net senior secured leverage covenant in the bank's credit agreement. The transaction increases the amount of junior subordinated debt though does not result in an increase in total debt. The relative increase in junior debt in the capital structure resulted in the upgrade to the senior secured credit facilities. DJO's B2 Corporate Family Rating continues to reflect the company's considerable financial leverage, limited interest expense coverage and modest free cash flow generation. Credit metrics have not improved significantly over the past nine months and margins have deteriorated slightly, mostly due to a change in the company's sales mix. However, the ratings also capture DJO's ongoing cost savings and organic improvement in revenue growth. The stable rating outlook reflects Moody's expectation that achieved cost savings and an improving economic environment will help support stable profitability and moderate cash flow generation in future periods. Growing use of braces and supports for non-urgent care also serves to mitigate some of the risk to a continuing weak economic environment. Moody's could consider downgrading the rating if the company is not able to meaningfully delever through improvements in operating performance or free cash flow. Additionally, while Moody's acknowledges the expected improvement in levels of compliance with the required financial covenant, negative rating pressure could be considered if headroom under the covenant was tighter than Moody's currently expect or if compliance with the financial covenant step downs were less certain. Given the weak financial metrics, Moody's does not foresee an upgrade of the ratings in the near term. However, if the company is able to generate positive free cash flow and demonstrate a sustained ability to repay debt with cash from operations, Moody's could consider changing the outlook to positive. Moody's could consider a change in the outlook to positive or a ratings upgrade if adjusted debt to EBITDA was expected to decline below 5.5 times or free cash flow to debt increased above 8% on a sustained basis, which would be more consistent with the upper end of the single B rating category under the Global Medical Products and Device Rating Methodology. Following is a summary of Moody's rating actions. DJO Finance, LLC: Ratings assigned: -- $300 million senior subordinated notes due 2017, Caa1 (LGD6, 93%) Ratings upgraded: -- $100 million senior secured revolving credit facility due 2013, to Ba2 (LGD2, 21%) from Ba3 (LGD2, 24%); -- $928 million senior secured term loan due 2014, to Ba2 (LGD2, 21%) from Ba3 (LGD2, 24%); Ratings affirmed/LGD assessments revised: -- Corporate Family Rating at B2 -- Probability of Default Rating at B2 -- Speculative Grade Liquidity Rating at SGL-3 -- $680 million senior unsecured notes due 2014, at B3 (LGD5, 70%) from B3 (LGD5, 75%); Ratings to be withdrawn upon completion of the proposed transaction: -- $200 million senior subordinated notes due 2014, at Caa1 (LGD6, 94%); Moody's last rating action was on January 14, 2010, when Moody's assigned a B3 to the company's senior notes offering, upgraded the existing senior notes and affirmed the other ratings of the company. DJO, through its subsidiaries, is a provider of orthopedic devices used in rehabilitation, pain management and physical therapy. The company also develops, manufactures and distributes a broad range of reconstructive joint implant products. The company recognized approximately $976 million of revenue for the twelve months ended July 3, 2010. DJO INC: S&P Assigns 'CCC+' Rating on $300 Mil. Senior Notes ------------------------------------------------------------ Standard & Poor's Ratings Services said that it assigned its 'CCC+' subordinated rating to Vista, Calif.-based DJO Inc.'s proposed $300 million senior subordinated notes maturing 2017. At the same time, S&P assigned its '6' recovery rating to the notes, indicating its expectation for negligible (0%-10%) recovery in the event of a default. The notes will be issued by DJO Finance LLC and DJO Finance Corp. The company intends to use the proceeds to tender its existing $200 million 11.75% senior subordinated notes due 2014, fund transaction expenses, and repay a portion of the term loan outstanding under its existing senior secured credit facilities. The issuance of these notes will leave the company's total debt outstanding nearly unchanged, push out the maturity of its subordinated debt, and provide enhanced flexibility with respect to its senior secured leverage covenants. All other ratings on the company, including the 'B' corporate credit rating, remain unchanged and the outlook remains stable. The ratings on DJO overwhelmingly reflect the company's large debt burden and associated interest expense as a result of the merger between DJO and ReAble Therapeutics, Inc. in November 2007. To a lesser degree, the ratings also reflect the tempering impact of the still-weak global economy on the company's volumes and the potential for increased pricing pressure or adverse changes to third-party reimbursement. DJO's established position in niche orthopedic markets, product and customer diversity, and long- standing customer relationships offset those considerations only somewhat. Rating List DJO Inc. Corporate credit rating B/Stable/-- Rating Assigned DJO Finance Corp. DJO Finance LLC Senior Subordinated $300 mil notes due 2017 CCC+ Recovery rating 6 EAST PALMDALE: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: East Palmdale Enterprises, LLC 24933 Ariella Drive Calabasas, CA 91302-0000 Bankruptcy Case No.: 10-22478 Chapter 11 Petition Date: October 1, 2010 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Geraldine Mund Debtor's Counsel: Glenn Ward Calsada, Esq. 9924 Reseda Boulevard Northridge, CA 91324 Tel: (818) 477-0314 Fax: (818) 473-4277 E-mail: glenn@calsadalaw.com Scheduled Assets: $5,000,000 Scheduled Debts: $1,482,700 The list of unsecured creditors filed together with its petition does not contain any entry. The petition was signed by Peiman Shayan, managing member. EMBASSY DELUJO: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Embassy Delujo Apartments, LLC 946 Senate Street Costa Mesa, CA 92627 Bankruptcy Case No.: 10-24114 Chapter 11 Petition Date: October 3, 2010 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Theodor Albert Debtor's 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: $2,803,700 Scheduled Debts: $2,833,820 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-24114.pdf The petition was signed by Marcos Romero, limited liability company member/owner. ENVOY CAPITAL: Notified by NASDAQ on Low Bid Price -------------------------------------------------- Envoy Capital Group Inc. received written notification from The NASDAQ Stock Market on October 4, 2010 advising the Company that because the bid price of the Company's common shares for the previous 30 consecutive trading days had closed below the minimum U.S. $1.00 per share required for continued listing on the NASDAQ Capital Market, the Company is not in compliance with NASDAQ Listing Rule 5550(a)(2). The notification letter has no effect on the listing of the Company's common shares at this time. Pursuant to NASDAQ Listing Rule 5810(c)(3)(A), the Company has been provided an initial grace period of 180 calendar days, or until April 4, 2011, to regain compliance with the Minimum Price Requirement, which requires a closing bid price of the Company's common shares at or above U.S. $1.00 per share for a minimum of 10 consecutive business days. In the event the Company does not regain compliance April 4, 2011, NASDAQ will provide written notification that the Company's common shares are subject to delisting. If the Company is not deemed in compliance prior to April 4, 2011, but demonstrates that it meets all applicable standards for initial listing on the NASDAQ Capital Market on such date, it will be afforded an additional 180 calendar day compliance period. The Company intends to monitor the bid price of its common shares between now and April 4, 2011, and will consider available options to regain compliance with the Minimum Price Requirement. About Envoy Capital Envoy Capital Group Inc. -- http://www.envoy.to/-- is a merchant banking organization that focuses on providing financial services as well as equity and debt capital, to small and mid-cap companies. EVERTEC INC: S&P Assigns Corporate Credit Rating at 'B+' -------------------------------------------------------- Standard and Poor's has assigned 'B+' corporate credit rating on EVERTEC Inc. and rated its senior secured debt at 'BB-'. S&P is assigning its 'B+' corporate credit rating with a stable outlook to Puerto-Rico-based EVERTEC, a payment processing and technology services provider operating in Puerto Rico, the Caribbean, and Latin America. S&P is also assigning its 'BB-' issue rating to the company's $50 million senior secured revolving credit facility and $355 million term loan B. The company used the proceeds of the senior secured credit facility to finance in part a carve-out acquisition of EVERTEC from a subsidiary of Popular Inc. The stable outlook reflects EVERTEC's relatively stable revenues and consistent profitability and cash flow generation. FIRSTFED FINANCIAL: Files Chapter 11 Plan of Liquidation -------------------------------------------------------- FirstFed Financial Corp. filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Liquidation. Pursuant to the Plan, the Debtors' assets will be transferred to a liquidating trust. According to BankruptcyData.com, under the Plan: * Holders of administrative claims, priority tax claims, secured claims and other priority claims will be paid in full in cash on the effective date; * Holders of general unsecured claims will receive their pro rata share of available cash as soon as practical; and * Holders of FirstFed's common stock will receive no distribution under the Plan, and all common stock interests will be canceled. About FirstFed Financial Irvine, Calif.-based FirstFed Financial Corp. is the bank holding company for First Federal Bank of California and its subsidiaries. The Bank was closed by federal regulators on December 18, 2009. FirstFed Financial Corp. filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 10-10150) on Jan. 6, 2010. Jon L. Dalberg, Esq., at Landau Gottfried & Berger LLP, represents the Debtor in its restructuring efforts. In its petition, the Debtor estimated assets between $1 million and $10 million, and debts between $100 million and $500 million. FONTAINEBLEAU LAS VEGAS: Icahn Holds Fire Sale ---------------------------------------------- Carl Icahn, who bought the Fontainebleau Las Vegas casino resort that he bought in January, has begun selling the furnishings and fitments at the unfinished casino report, the New York Post reported, citing an unidentified informant. Fontainebleau Las Vegas -- http://www.fontainebleau.com/-- is constructing a luxury resort, Fontainebleu Las Vegas, on the northern end of the Las Vegas Strip. Fontainebleau Las Vegas Holdings, LLC and its units filed for Chapter 11 protection on June 9, 2009 (Bankr. S.D. Fla. Lead Case No. 09-21481). Scott L Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP, represented the Debtors in their restructuring effort. The Debtors' claims agent is Kurtzman Carson Consulting LLC. Attorneys at Genovese Joblove & Battista, P.A., and Fox Rothschild, LLP, represent the Official Committee of Unsecured Creditors. Fontainebleau Las Vegas LLC listed more than $1 billion in debt and a similar amount in assets, while each of Fontainebleau Las Vegas Capital Corp. and Fontainebleau Las Vegas Holdings, LLC, listed less than $50,000 in assets and more than $1 billion in debts. In February 2010, Icahn Enterprises L.P. acquired from Fontainebleau Las Vegas and certain affiliated entities, the Fontainebleau property and improvements thereon located in Las Vegas, Nevada, for an aggregate purchase price of around $150 million. The bankruptcy case was subsequently converted to Chapter 7. Soneet R. Kapila has been named the trustee for the Chapter 7 case of Fontainebleau Las Vegas. FRANK BYERS: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Frank J. Byers 204 Bishop Road Richwood, NJ 08074 Bankruptcy Case No.: 10-13206 Chapter 11 Petition Date: October 4, 2010 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Debtor's Counsel: Donna L. Harris, Esq. PINCKNEY, HARRIS & WEIDINGER, LLC 1220 N. Market Street, Suite 950 Wilmington, DE 19801 Tel: (302) 504-1499 - Direct Fax: (302) 442-7046 E-mail: dharris@phw-law.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not have creditors to file with its petition. Debtor-affiliates that filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Byers Electrical Construction, LLC 10-13205 10/04/10 American Sign & Graphics, LLC 10-11226 04/12/10 GARLOCK SEALING: Seeks to Pay Appeal Bond Invoice ------------------------------------------------- Garlock Sealing Technologies LLC is the principal on a certain appeal bond for $531,119 in favor of Olwen Moeller, individually and as executrix of the estate of Robert L. Moeller, effective May 26, 2010. Garlock received an invoice for $3,783 as due and owing with respect to the Appeal Bond, made up of: (a) $93 as due and owing before the Petition Date; and (b) $3,690 as owing after the Petition Date. By this motion, the Debtors seek the Court's permission to pay the Invoice in full. The Debtors believe that it would be in the best interests of their estates to maintain the status quo by making the premium payments to the surety for the Appeal Bond. The sum set forth in the Invoice is de minimis, and the prepetition portion, particularly, is a miniscule amount, the Debtors relate. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D. N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARLOCK SEALING: Wins Nod for Grant Thornton as Audit Accountant ---------------------------------------------------------------- Garlock Sealing Technologies LLC and its units received the U.S. Bankruptcy Court's permission to employ Grant Thornton LLP as their audit accountant, effective as of August 8, 2010. As the Debtors' audit accountant, Grant Thornton will: (a) perform an audit of the balance sheet and related financial documents of the Debtors and their subsidiaries as of December 31, 2010, in accordance with auditing standards generally accepted in the U.S.; (b) prepare a report containing an opinion as to whether the financial statements, taken as a whole, are fairly presented based on accounting principles generally accepted in the U.S.; and (c) other services as might be reasonably sought by the Debtors. According to the Debtors, Grant Thornton intends to engage third- party service providers, which are member firms of Grant Thornton International, to perform audit procedures for the Debtors' subsidiaries: Third-Party Provider Garlock Entity -------------------- --------------- Salles Sainz Grant Thornton Garlock de Mexico, S.A. Grant Thornton Australia Garlock Pty Limited Raymond Chabot Grant Thornton LLP Garlock of Canada Ltd. The Debtors expect to pay Grant Thornton $327,500 for its professional services in connection with the auditing functions, exclusive of out-of-pocket expenses incurred during the course of representation. The Debtors will reimburse Grant Thornton for expenses incurred. Grant Thornton will be paid those fees in monthly increments of $55,000, subject to Court-approved compensation procedures. Janet Malzone, Esq., a partner at Grant Thornton LLP, discloses that her firm has represented, represents or may represent certain parties in the Debtors' Chapter 11 cases in matters unrelated to the bankruptcy cases. A list of these parties is available for free at: http://bankrupt.com/misc/Garlock_GrantThorntonClients.pdf Ms. Malzone also relates that certain Grant Thornton employees and their spouses own shares of Bank of America stock, or are hired by Bank of America, which is a creditor of the Debtors. Certain Grant Thornton employees own shares of the stock of Oracle Corporation, which is also a creditor of the Debtors, she adds. Ms. Malzone, however, assures the Court that despite these disclosures, Grant Thornton is a "disinterested person" as that term is defined under Section 101(14) of the Bankruptcy Code. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D. N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARLOCK SEALING: Says Orrick Herrington Fees Excessive ------------------------------------------------------ Joseph W. Wrier, III, the Court-appointed legal representative for future asbestos claimants, seeks the Court's permission to retain Orrick, Herrington & Sutcliffe LLP as his counsel, effective as of September 16, 2010. The Future Claims Representative propose that the Debtors pay Orrick's professionals according to their customary hourly rates: Title Rate per Hour ----- ------------- Partners $675 to $995 Senior lawyers $330 to $570 Associates $95 to $420 Specific professionals that will be engaged in this matter are: Name Title Rate per Hour ---- ----- ------------- Richard H. Wyron Partner $850 Jonathan P. Guy Partner $810 Debra L. Felder Senior Associate $640 James Burke Associate $445 Debra O. Fullem Senior Legal Asst. $265 Debtors Respond The Debtors complain of the excessive rates of compensation proposed to be paid to Orrick, Herrington & Sutcliffe LLP as counsel to Joseph W. Grier, III, the court-appointed legal representative for future asbestos claimants. Counsel to the Debtors, Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, P.A., in Charlotte, North Carolina, argues that Orrick's rates are unreasonable and go well beyond rates charged by any legal professionals in these Chapter 11 cases or firms with comparable practices. Specifically, the individual lawyers at Orrick who are proposed to represent the FCR have rates substantially higher than comparable professionals, he asserts. Indeed, Mr. Cassada notes, a portion of a monthly fee statement filed by Young Conaway Stargatt & Taylor LLP in the Pittsburgh Corning case demonstrates a rate scale 25% to almost 50% lower than Orrick proposes. Young & Conaway has equivalent, if not deeper, experience than Orrick, he stresses. At best, Orrick's levels of compensation should not exceed those of Caplin & Drysdale, Chartered's rates, the Debtors insist. To recall, the Debtors questioned Caplin's rates on the ground of reasonableness. FCR Talks Back "The Debtors' Objection asserts, without questioning Orrick's skill, qualifications, professionalism, expertise or experience, that Orrick's hourly rates are 'unreasonable' and go well beyond those rates charged by any professionals in the Chapter 11 cases," A. Cotten Wright, Esq., at Grier Furr & Crisp, PA, in Charlotte, North Carolina, counsel to the FCR, tells the Court. Mr. Wright reminds the Court that in overruling the Debtors' objection to Caplin's retention, the Court stated that the relevant market that the Court has to use as a determinant is one that is a lot broader in scope than the Western District of North Carolina. Mr. Wright also points out that a comparison between a Delaware-based firm like Young & Conaway and Orrick, a national firm is misleading. He argues that the Debtors fail to analyze hourly rates charged by nationals firms involved in asbestos bankruptcy cases like Kirkland & Ellis LLP. He insists that there are few law firms with Orrick's breadth and depth of experience and expertise in the asbestos arena, having acted as counsel for debtors and asbestos co-defendants. Thus, in analyzing the reasonableness of Orrick's hourly rates, these should be compared with rates charged by comparable firms with comparable practices in other asbestos bankruptcy cases across the country, Mr. Wright maintains. About Garlock Sealing Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is an EnPro Industries, Inc. company (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D. N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for Asbestos matters. Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Garlock Sealing Technologies LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GARY COWAN: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Joint Debtors: Gary D. Cowan Kathryn L. Cowan 19110 SE 44th Way Issaquah, WA 98027 Bankruptcy Case No.: 10-21537 Chapter 11 Petition Date: September 28, 2010 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Marc Barreca Debtor's Counsel: Christopher F. Dale, Esq. CROCKER LAW GROUP PLLC 720 Olive Way, Ste 1000 Seattle, WA 98101 Tel: (206) 624-9894 E-mail: cdale@crockerlaw.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/wawb10-21537.pdf GENERAL MOTORS: Unsecureds at Odds with Treasury on Assets ---------------------------------------------------------- BankruptcyData.com reports that the official committee of unsecured creditors formed in the Chapter 11 cases of Motors Liquidation, formerly General Motors Company, filed with the U.S. Bankruptcy Court for the Southern District of New York a motion to enforce the bankruptcy judge's previous order approving a DIP financing and the wind-down process for Old GM. The Creditors Committee, according to BData, explains that on August 26, 2010 -- more than a year after the Committee sued for the return of $1.5 billion paid on account of an apparently voidable security interest ("Term Loan Litigation") -- the U.S. Treasury for the first time asserted that Treasury, not the unsecured creditors, owned the Term Loan Litigation. On August 31, 2010, the Debtors filed a Joint Chapter 11 Plan, which, at the Treasury's request, provided that ownership of the Term Loan Litigation would be determined by the Court or by negotiation between Treasury and the Committee. The Committee, BData relates, asserts that the Treasury's position with respect to the Term Loan Litigation contradicts the order approving Old GM's $33.3 billion debtor-in-possession facility funded by the Treasury and the Wind-Down Order. The Court scheduled an October 21, 2010 hearing to consider the Motion to Compel. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is China, followed by the United States, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. is 60.8% owned by the U.S. Government. It was formed to acquire the operations of General Motors Corporation through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The deal was closed on July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM remains subject to a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At June 30, 2010, GM had $131.899 billion in total assets, $101.00 billion in total liabilities, $6.998 billion in preferred stock, and $23.901 billion in stockholders' equity. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP serve as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long serve as counsel regarding supplier contract matters. FTI Consulting, Inc., serves as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Asbestos Committee. Legal Analysis Systems, Inc., serves as asbestos valuation analyst. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GRACE LIM: Case Summary & 31 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Grace Sue Lim dba Settlement Properties, LLC 1313 Spectrum Irvine, CA 92618 Bankruptcy Case No.: 10-24119 Chapter 11 Petition Date: October 4, 2010 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Robert N. Kwan Debtor's Counsel: Michael R Totaro, Esq. TOTARO & SHANAHAN P.O. Box 789 Pacific Palisades, CA 90272 Tel: (310) 573-0276 Fax: (310) 496-1260 E-mail: mtotaro@aol.com Scheduled Assets: $1,162,630 Scheduled Debts: $1,757,106 A list of the Debtor's 31 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-24119.pdf GRACEWAY PHARMACEUTICALS: Moody's Cuts Corp. Family Rating to 'Ca' ------------------------------------------------------------------ Moody's Investors Service lowered the ratings of Graceway Pharmaceuticals, LLC, including the Corporate Family Rating to Ca from Caa3 and the Probability of Default Rating to D from Caa3. Ratings on Graceway's first and second-line credit facilities have also been lowered. Following this rating action the rating outlook remains negative. Ratings downgraded: -- Corporate Family Rating to Ca from Caa3 -- Probability of Default Rating to D from Caa3 -- First lien senior secured Term Loan of $600 million due 2012 to Caa2 (LGD2, 23%) from Caa1 (LGD2, 26%) -- First lien senior secured revolving credit facility of $30 million due 2012 to Caa2 (LGD2, 23%) from Caa1 (LGD2, 26%) -- Second lien senior secured credit facility of $330 million due 2013 to C (LGD5, 74%) from Ca (LGD5, 77%) Ratings Rationale The ratings downgrade reflects a missed interest payment on Graceway's second lien loan, as well as Moody's latest estimates for recovery prospects. Moody's understands that Graceway is in the process of seeking covenant waivers with lenders. Moody's continues to view Graceway's debt structure as unsustainable based on increasing amortization requirements and maturities of the first-lien debt in May 2012 and the second-line debt in May 2013. The rating outlook remains negative until there is greater clarity on the status of covenant negotiations. The ratings could be downgraded if waivers are not reached, or if recovery prospects appear worse than Moody's current expectations. Conversely, the rating outlook could stabilize if covenants are successfully waived and Moody's remains comfortable with recovery estimates. Moody's last rating action on Graceway took place on March 17, 2010 when Moody's lowered Graceway's ratings including the Corporate Family Rating to Caa3 from Caa1. Headquartered in Bristol, Tennessee, Graceway Holdings, LLC, and Graceway Pharmaceuticals, LLC, is a specialty pharmaceutical company focused on the dermatology, respiratory, and women's health markets. GREAT ATLANTIC: Owes Detroit Landlords Nearly $150-Mil. in Rent --------------------------------------------------------------- Daniel Duggan, writing for Crain's Detroit, reports that The Great Atlantic & Pacific Tea Co. owes nearly $150 million in unpaid rent in Detroit, after stopping payments on nearly 2 million square feet of retail and industrial space in the area and triggering 24 lawsuits. Crain's Detroit notes that A&P decided to leave Detroit three years ago, vacating 66 stores. Kroger Co. bought or leased 20, and several others have been leased or subleased. Leases are in the name of Borman's Inc., the Farmer Jack parent company prior to A&P. Crain's Detroit relates that for about three years, A&P paid the rent and sought subleases. In June, Crain's Detroit notes, Mark Krysinski, Esq., a partner at Jaffe Raitt Heuer & Weiss, informed landlords that Borman's "has decided to return possession of the leased premises" to the owner and that the company will "cease paying rent." The letter was cause for nearly all of its recipients to file lawsuits, alleging breach of contract, among other charges. Representing five cases against A&P, Michelle Harrell, Esq., managing shareholder at Maddin Hauser Wartell Roth & Heller, said the cases are fairly unusual actions for a company not in bankruptcy. About A&P Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP), founded in 1859, is one of the nation's first supermarket chains. The Company operates 429 stores in 8 states and the District of Columbia under the following trade names: A&P, Waldbaum's, Pathmark, Pathmark Sav-a- Center, Best Cellars, The Food Emporium, Super Foodmart, Super Fresh and Food Basics. The Company's balance sheet at June 19, 2010, showed $2.6 billion in total assets, $897.0 million in total current liabilities, $2.3 billion in total non-current liabilities, $135.0 million series A redeemable preferred stock, and $659.0 million in stockholders' deficit. Great Atlantic carries 'Caa3' probability of default and corporate family ratings from Moody's Investors Service and a 'CCC' corporate credit rating from Standard & Poor's. At the end of July 2010, when Moody's downgraded the SGL rating to SGL-4 (reflecting weak liquidity), Moody's said, "A&P does have sufficient liquidity to meet immediate operating needs, but liquidity is strained over the next four quarters as a result of the company's debt maturity in June 2011." S&P, in July 2010, when it lowered the corporate rating to 'CCC' from 'CCC+', said it "expects weak trends to continue and the company to be significantly cash flow negative." GREAT FALLS: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Great Falls Haven LLC 1312 Yellow Tavern Court Herndon, VA 20170 Bankruptcy Case No.: 10-18208 Chapter 11 Petition Date: September 28, 2010 Court: United States Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Stephen S. Mitchell Debtor's Counsel: Timothy J. McGary, Esq. 10500 Sager Avenue, Suite G Fairfax, VA 22030-2414 Tel: (703) 352-4985 Fax: (703) 591-2253 E-mail: tjm@mcgary.com Scheduled Assets: $1,543,530 Scheduled Debts: $975,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Paul Arnone, manager. GREENVILLE UNITED: Case Summary & 7 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Greenville United Christian Ministries aka New Birth Greenville a South Carolina Non Profit Corporation P.O. Box 1273 Greer, SC 29652 Bankruptcy Case No.: 10-07014 Chapter 11 Petition Date: September 29, 2010 Court: United States Bankruptcy Court District of South Carolina (Spartanburg) Judge: Helen E. Burris Debtor's Counsel: Robert H. Cooper, Esq. THE COOPER LAW FIRM 3523 Pelham Road, Suite B Greenville, SC 29615 Tel: (864) 271-9911 E-mail: bknotice@thecooperlawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's seven largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/scb10-07014.pdf The petition was signed by Getties L. Jackson, president and CEO. HARRISBURG PA: Water, Parking Debt Under Review for Downgrade ------------------------------------------------------------- Dow Jones' DBR Small Cap reports Moody's Investors Service said that the deepening fiscal stress of Harrisburg, Pa. may spread to the bonds of municipal authorities, debt with no connection to the causes of the capital city's woes. According to the report, Moody's Investors Service said that it may cut the ratings of $68 million in water refunding bonds sold by the Harrisburg Authority and $18 million in parking revenue bonds issued by the Harrisburg Parking Authority. The report relates that Moody's cited the city's "continued financial stress" and Mayor Linda Thompson's application to have Harrisburg declared a distressed municipality under a state oversight program known as Act 47. The report relates Moody's Investors said that both of the affected authorities transfer funds to the city, which "brings into question whether parking or water system financial operations could be weakened or disrupted, even temporarily, by continued stress at the city, including actions that could be taken by an Act 47 coordinator or a federal bankruptcy judge." About Harrisburg, PA The city of Harrisburg is coping with debt related to a failed revamp of an incinerator. The outstanding principal on the Incinerator debt is $288 million. Total principal and interest on this debt would amount to approximately $458 million. Debt service payments on the total incinerator debt are $20 million per year. Of this total, Dauphin County, Pennsylvania, is responsible for roughly $10 million and Harrisburg is responsible for the other $10 million. The city is guarantor on 100% of the $288 million Incinerator debt. The City Council of Harrisburg, Pennsylvania, voted 5-2 on September 28 to seek professional advice on bankruptcy or state oversight. Harrisburg needed state aid to avoid default on $3.3 million of bond payments this month. The city has missed about $8 million in debt-service payments this year on bonds issued in connection with a trash-to-energy incinerator. The city owes another $40 million by the end of the year, and was sued by its home county Dauphin County; bond insurer Assured Guaranty Municipal Corp., a unit of Assured Guaranty Ltd.; and bond trustees TD Bank and M&T Bank Corp. over $19 million in skipped bond payments. HARRY JEREMIAS: U.S. Bancorp Seeks to Foreclose on Renwick Condo ---------------------------------------------------------------- David Jones, writing for The Real Deal, reports that U.S. Bancorp has filed a foreclosure lawsuit against Harch Group's founder, Harry Jeremias, for allegedly defaulting on a $55.3 million loan to develop the Renwick condominium in Soho. According to Real Deal, U.S. Bancorp filed the suit in New York State Supreme Court on Sept. 14. U.S. Bancorp alleges that by August 2009, it notified Mr. Jeremias and the other guarantors -- which include Harch partners Henry Orlinsky and Francisco Pujol -- that the loan was being accelerated and became fully due. The lender previously filed for a judgment in lieu of complaint against the developers, but that was later rejected by Judge Emily Goodman, so the lender filed suit to foreclose on the properties. According to Real Deal, U.S. Bancorp also alleges that Harch failed to pay monthly debt service, outstanding mechanics liens, taxes and insurance on the property. It claims the developers also defaulted by allowing the project budget to go $6 million out of balance and that the project fell more than 12 months behind schedule after construction was halted. U.S. Bancorp is demanding the remaining principal balance of $28 million, plus interest, taxes and fees. Real Deal further relates that the developer is facing a series of lawsuits over the project: -- Brooklyn-based Kiska Development Group, in October 2009, filed suit in state Supreme Court against Harch, alleging that it wasn't paid for construction work at 15 Renwick. Kiska was later told, however, that the bank never approved the firm to perform the work, and filed suit to foreclose on a $384,000 lien. Peter Kutil, Esq., attorney for Kiska, was not immediately available for comment. -- Records from the city Department of Buildings show a partial stop work order in February 2009, after pile driving caused the building to shake and a full stop-work order was issued in February 2010. -- Mr. Jeremias was previously sued after defaulting on $83 million in loans for the Jasper, at 114 East 32nd Street. -- He faced similar litigation for allegedly defaulting on $48 million in loans from Bank of America, used to purchase and renovate a 13-story office tower at 216 West 18th Street. HAWK CORP: S&P Retains CreditWatch Developing on 'B' Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on Cleveland, Ohio-based Hawk Corp., including the 'B' corporate credit rating, remain on CreditWatch with developing implications, where they were initially placed July 2, 2010. Developing implications indicate that S&P could raise, lower, or affirm the ratings. "Hawk's board of directors continues to explore and consider possible strategic alternatives to improve shareholder value, including a possible sale of the company. The company has retained a financial advisor to assist in this process," said Standard & Poor's credit analyst Gregoire Buet. The business environment for the manufacturer of brakes, clutches, and transmissions parts used in airplanes, trucks, construction and mining equipment, farm equipment, and recreational and performance automotive vehicles has been improving in the first half of 2010; the company reported a 38% percent increase in revenues in the period and adjusted operating margins (before depreciation and amortization) have recovered to levels in line with historical highs of more than 20%. As of June 30, 2010, Hawk's credit measures had improved to about 2.0x total adjusted debt to EBITDA and to 35% funds from operation to total debt. "S&P expects to resolve the CreditWatch listing after the company announces or completes a specific transaction or otherwise concludes the review of strategic alternatives. S&P could revise the CreditWatch implications to positive or negative as more information related to these alternatives emerges. S&P could raise the corporate credit rating if these alternatives positively affect Hawk's business risk and/or financial risk profiles. Conversely, if these alternatives lead to a meaningful deterioration in the business and/or financial profile, S&P could lower the rating. S&P could also affirm the existing ratings if S&P considers that the company's business and financial risk profile will remain unchanged," Mr. Buet added. HERTZ CORPORATION: Fitch Assigns 'BB-' Rating on $700 Mil. Notes ---------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating to The Hertz Corporation's $700 million issuance of senior unsecured notes. The senior unsecured notes will mature on Oct. 15, 2018. The notes bear interest at a rate per annum of 7.5% from Sept. 30, 2010. Interest is payable semi-annually on April 15 and Oct. 15 of each year, commencing April 15, 2011. The rating is consistent with Fitch's earlier statement provided in a release dated Sept. 16, 2010. Hertz's 'BB-' Issuer Default Rating and Stable Rating Outlook are unaffected by the assignment of this rating. Fitch has assigned this rating: Hertz Corporation -- $700 million senior unsecured notes 'BB-'. HOLLINGER INC: Enters Settlement Agreement With KPMG LLP -------------------------------------------------------- The Litigation Trustee of Hollinger Inc. has entered into a settlement agreement with KPMG LLP to resolve all claims against Hollinger's former advisor advanced by the Litigation Trustee on behalf of Hollinger. The settlement entails no admission of liability on the part of KPMG LLP. The terms of the settlement include releases in favour of KPMG LLP from Hollinger and its subsidiaries, as well as from third parties involved in related Hollinger litigation. The settlement and the releases are subject to court approval, which will be sought on notice to other affected parties. The rest of the terms of the settlement agreement are confidential. Hollinger previously issued a news release on July 15, 2010 regarding the settlement agreement entered into with Torys LLP. Hollinger and its subsidiaries, Sugra Ltd. and 4322525 Canada Inc., are currently subject to proceedings in Canada under the Companies' Creditors Arrangement Act (Canada) and in the United States under Chapter 15 of the U.S. Bankruptcy Code. The securities of Hollinger are subject to a cease trade order issued by the Ontario Securities Commission on July 23, 2008. Hollinger's common shares and Series II preference shares were delisted from the Toronto Stock Exchange on August 22, 2008. About Hollinger Inc. Based in Toronto, Ontario, Hollinger Inc. (TSX: HLG.C)(TSX: HLG.PR.B) -- http://www.hollingerinc.com/-- owns approximately 70.1% voting and 19.7% equity interest in Sun-Times Media Group Inc., formerly Hollinger International Inc., a media company with assets which include the Chicago Sun-Times newspaper and Suntimes.com and a number of community newspapers and websites serving communities in the Chicago area. The company, along with two affiliates, 4322525 Canada Inc. and Sugra Limited, filed separate Chapter 15 petitions on Aug. 1, 2007 (Bankr. D. Del. Case Nos. 07-11029 through 07-11031). Hollinger also initiated Court-supervised restructuring under the Companies' Creditors Arrangement Act (Canada) on the same day. Derek C. Abbott, Esq., and Kelly M. Dawson, Esq., at Morris, Nichols, Arsht & Tunnell LLP, represents the Debtors in their U.S. proceedings. As reported in the Troubled company Reporter on Feb. 22, 2008, Hollinger Inc.'s consolidated balance sheet at Dec. 31, 2007, showed C$79.8 million in total assets and C$219.3 million in total liabilities, resulting in a C$139.5 million total stockholders' deficit. HOSPITAL DAMAS: Taps Charles A. Cuprill as Bankruptcy Counsel ------------------------------------------------------------- Hospital Damas, Inc., asks for authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Charles A. Cuprill, P.S.C., Law Offices, as bankruptcy counsel. Charles A. cuprill will represent the Debtor in its restructuring effort. The Firm will be paid based on the hourly rates of its personnel: Charles A. Cuprill-Hernandez $350 Associate $200 Paralegals $75 Charles A. Cuprill-Hernandez, Esq., the principal of the Firm, assures the Court that the Firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. Ponce, Puerto Rico-based Hospital Damas, Inc., filed for Chapter 11 bankruptcy protection on September 24, 2010 (Bankr. D. P.R. Case No. 10-08844). According to its schedules, the Debtor disclosed $24,017,166 in total assets and $21,267,263 in total liabilities. IMPERIAL CAPITAL: Court Limits Transfers of Equity Interests ------------------------------------------------------------ In a regulatory filing late last month, Imperial Capital Bancorp, Inc., disclosed that the U.S. Bankruptcy Court for the Southern District of California on August 16, 2010, granted the Company's motion for an order limiting certain transfers of equity interests in the Company and approving related notice procedures. The purpose of the motion was to restrict certain transfers of the Company's common stock that could potentially limit the Company's ability to utilize net operating loss carryovers for federal income tax purposes in the event that the Company pursues a plan of reorganization rather than a plan of liquidation. The restrictions apply to any person or entity who is, or who as a result of a proposed transaction would become, a "Substantial Equityholder" in the Company. A "Substantial Equityholder" means an entity that (1) has tax ownership of at least 244,294 shares of stock or (2) at any time is or is deemed to be or was or was deemed to be a 5-percent shareholder of the Debtor within the meaning of Treasury Regulations section 1.382-2T. A copy of the Order is available for free at: http://researcharchives.com/t/s?6c2b About Imperial Capital La Jolla, California-based Imperial Capital Bancorp, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Calif. Case No. 09-19431)on December 18, 2009. 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. IMPERIAL CAPITAL: Files Chapter 11 Plan of Liquidation ------------------------------------------------------ Imperial Capital Bancorp filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Liquidation and related Disclosure Statement. BankruptcyData.com reports that under the Plan: * To the extent there are any secured claims, those claims would be left unimpaired; * Each holder of allowed unsecured claims will receive its pro-rata share of the Net Estate Proceeds. Net Estate Proceeds are the monies remaining after all costs and expenses of administration have either been paid or reserved for and all senior claims have been paid in full. * Holders of allowed convenience claims -- unsecured claims that each has allowed amounts of $10,000 or less or which are reduced to $10,000 -- will receive cash equal to 100% of the amount of the allowed convenience claim. * Holders of interests in the Debtor will neither receive nor retain any property under the Plan, and all interests of the Debtor will be cancelled as of the effective date of the Plan. 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. INTERNATIONAL GARDEN: Receives Court Okay of All 1st Day Motions ---------------------------------------------------------------- International Garden Products, Inc. has received approval from the United States Bankruptcy Court for the District of Delaware for all of the First Day Motions that the Company believes will enable it to continue to conduct its business during the reorganization, including operations of its Iseli Nursery and Weeks Wholesale Rose Grower affiliates. Included among the motions, IGP received approval to use the $7.5 million in Debtor-in-Position (DIP) financing that it secured from a group led by Harris Bank. IGP said it believes DIP facility will be adequate to meet the needs of Iseli and Weeks and to continue operations during the reorganization process. In addition, the Company received approval to use cash collateral; to continue making wage and benefit payments and expense reimbursement payments to employees; to continue making commission payments to independent contractors, and to continue its current cash management system for operations. The company noted that securing court approval of its First Day Motions was a critical first step in IGP's court-supervised reorganization process. These approvals will allow Iseli and Weeks to continue operations while the Company focuses on resolving several issues including three contingent liability issues totaling approximately $27.2 million that have negatively affected finances. The Company is confident that this process will allow both Iseli and Weeks to become much stronger, and better positioned, to capitalize on industry opportunities. IGP and four of its affiliates, including Iseli and Weeks, filed voluntary petitions for Chapter 11 reorganization on Oct. 4, 2010. The case number for IGP's filing is 10-13207-KJC. Additional information about the filing can be found on the Company's case website, http://www.gcginc.com/cases/igp/ About International Garden Products International Garden Products, Inc. was incorporated in 1996 as a holding company for Iseli Nursery, Inc., California Nursery Supply, Weeks Wholesale Rose Grower, and Old Skagit, Inc. The company's operating businesses, Iseli and Weeks, focus primarily on growing horticultural products for nationwide sale to independent garden centers, landscape suppliers, landscapers and similar parties. Iseli's is known in the industry as the premium source of dwarf conifers, Japanese maples and unique companion plants. Weeks is one of the largest wholesale breeders and growers of premium roses in the U.S. International Garden Products, Inc., and its affiliates filed for Chapter 11 protection on Oct. 4, 2010 (Bankr. Lead Case No. 10- 13207). Andrew R. Remming, Esq., at Morris, Nichols, Arsht & Tunnell, serves as bankruptcy counsel. Bryan Cave LLP is the legal counse. FTI Consulting is the restructuring advisor. International Garden estimated assets and debts at $10 million to $50 million in its Chapter 11 petition. INTERSTATE BAKERIES: Ct. Rejects $56MM U.S. Bank Claim v. Insurers ------------------------------------------------------------------ The Kansas City Star reports that U.S. District Judge Howard Sachs denied U.S. Bank's claim that it was entitled to $56 million as part of a settlement with a former Interstate Bakeries Corp. executive. U.S. Bank served as the trustee of the unsecured creditors committee in the Interstate bankruptcy. The Star relates that U.S. Bank sued in March 2010, arguing that it was entitled to a payout from Interstate insurers based on the actions of Paul Yarick, the company's treasurer before the bankruptcy filing. In an earlier legal action, U.S. Bank accused Mr. Yarick of understating Interstate's workers' compensation reserve by $40 million. The Star says Mr. Yarick settled that earlier case with U.S. Bank for $56 million on the condition that he could not be pursued personally for the settlement. His work was insured through an employment agreement with Interstate. The Star says Federal Insurance Co. and several other insurers argued that Mr. Yarick did not suffer a loss based on the settlement. Judge Sachs agreed, saying the policy's limited coverage did not allow U.S. Bank to recover $56 million from the insurers when Mr. Yarick was "absolved from payment." About Interstate Bakeries Interstate Bakeries Corporation is a wholesale baker and distributor of fresh-baked bread and sweet goods, under various national brand names, including Wonder(R), Baker's Inn(R), Merita(R), Hostess(R) and Drake's(R). The Company and eight of its subsidiaries and affiliates filed for chapter 11 protection on Sept. 22, 2004 (Bankr. W.D. Mo. Case No. 04-45814). J. Eric Ivester, Esq., and Samuel S. Ory, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $1,626,425,000 in total assets and $1,321,713,000 (excluding the $100,000,000 issue of 6% senior subordinated convertible notes due Aug. 15, 2014) in total debts. The Debtors first filed their Chapter 11 Plan and Disclosure Statement on Nov. 5, 2007. On Jan. 30, 2008, the Debtors received court approval of the disclosure statement explaining their first amended plan. IBC did not receive any qualifying alternative proposals for funding its plan in accordance with the court- approved alternative proposal procedures. The Debtors, on Oct. 4, 2008, filed another Plan, which contemplates IBC's emergence from Chapter 11 as a stand-alone company. The filing of the Plan was made in connection with the plan funding commitments, on Sept. 12, 2008, from an affiliate of Ripplewood Holdings L.L.C. and from Silver Point Finance, LLC, and Monarch Master Funding Ltd. On December 5, 2008, the Bankruptcy Court confirmed IBC's Amended New Joint Plan of Reorganization. The plan was filed October 31, 2008. The exit financings that form the basis for the Plan are reflected in corresponding debt and equity commitments. Interstate Bakeries emerged from Chapter 11 on February 3, 2009. Upon emergence, the Company moved its headquarters from Kansas City, Missouri, to Dallas, Texas. INVACARE CORPORATION: Tender Offer Won't Move Moody's 'B1' Rating ----------------------------------------------------------------- In Moody's view, Invacare Corporation's tender offer for its $146 million of senior notes will not impact the company's B1 corporate family and probability of default ratings. The ratings and positive outlook continues to reflect the company's strong operating performance and the notable de-leveraging over the past several years. However, current uncertainty regarding Medicare reimbursement prospects for Invacare's key customers has tempered Moody's position and ratings are not expected to be reviewed before the first quarter of 2011. Should the tender offer successfully replace the entire note offering with senior secured bank debt, Moody's would withdraw the current B1 rating on the notes. However, the rating on any remaining notes may be lowered given the potential for the elimination of restrictive covenants on the remaining notes, in addition to the increase in effective subordination. Following the refinancing of Invacare's senior secured bank facility, the rating on the existing senior secured revolving credit facility would be withdrawn. The B1 CFR and positive outlook continue to reflect Invacare's scale, good product and geographic diversification and leading market position as the largest global supplier of home health care equipment. The ratings are also supported by Invacare's commitment to use free cash flow to repay debt which has resulted in a significant reduction in financial leverage over the past several years. The company's financial leverage, interest coverage ratios and cash flow generation relative to debt, are strong for the B1 rating category. The ratings remain constrained by ongoing pressures on Invacare's customers due to government and other payor reimbursement policies which results in significant pricing pressure on Invacare. Further, the industry is highly competitive and subject to competition from lower cost regions, such as Asia. Moody's expect the impact to pricing of home healthcare services from the Medicare Competitive Bidding program will ultimately have an impact on Invacare. About 30% of the company's customers' revenues will ultimately be subject to competitive bidding with respect to Medicare durable medical equipment, prosthetics, orthotics, and supplies. Invacare, based in Elyria, Ohio, is the leading manufacturer and distributor of non-acute health care products for home health care, retail and extended care markets worldwide. The company's products are principally sold to over 25,000 home healthcare and medical equipment providers across five segments/geographies, namely: North America / Home Medical Equipment, Invacare Supply Group, Institutional Products Group, Europe and Asia/Pacific. For the last 12 months ended June 2010, the company reported revenues of about $1.7 billion. ITC DELTACOM: S&P Puts 'B' Rating on CreditWatch Positive --------------------------------------------------------- Standard & Poor's Ratings Services said it placed its 'B' corporate credit rating and all other ratings on Huntsville, Ala.-based competitive local exchange carrier ITC DeltaCom Inc. on CreditWatch with positive implications. "The rating action follows the company's announcement that it has entered into a definitive agreement to be acquired by Internet service provider Earthlink Inc. in a transaction valued at $516 million," said Standard & Poor's credit analyst Catherine Cosentino, "including the assumption of $325 million of ITC DeltaCom's debt." While S&P does not currently rate Earthlink, based on the company's public financials and preliminary information, S&P estimate pro forma leverage for the combined entity to be around 2x, substantially lower than ITC DeltaCom's leverage of 3.9x at the end of second-quarter 2010. Moreover, Earthlink has a large cash position of about $562 million and generates solid net free cash flow. "S&P will monitor events closely as they occur," added Ms. Cosentino, "and upon completion of the acquisition, if S&P rate the combined entity, S&P could raise the corporate credit rating on ITC DeltaCom or affirm the rating at its present level. Otherwise, S&P could withdraw the ratings." The ITC DeltaCom senior secured notes have a change-of-control provision whereby ITC DeltaCom would be required to offer to purchase the notes in connection with the acquisition, although some of the notes may remain outstanding. JACKSON VALLEY: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Jackson Valley Ranch LLC 19501 312th Ave. NE Duvall, WA 98019 Bankruptcy Case No.: 10-21712 Chapter 11 Petition Date: September 30, 2010 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Marc Barreca Debtor's Counsel: Michael P. Harris, Esq. LAW OFFICES OF MICHAEL P. HARRIS 2125 5th Ave Seattle, WA 98121 Tel: (206) 622-7434 E-mail: mph4@quidnunc.net Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Lisa Shilling, manager. JAMES CAVINESS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Joint Debtors: James A. Caviness Adrianne R. Caviness 9830 E. Thompson Peak Parkway, #903 Scottsdale, AZ 85255 Bankruptcy Case No.: 10-31708 Chapter 11 Petition Date: October 1, 2010 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Redfield T. Baum Sr. Debtors' Counsel: D. Lamar Hawkins, Esq. AIKEN SCHENK HAWKINS & RICCIARDI PC 4742 North 24th Street, Suite 100 Phoenix, AZ 85016 Tel: (602) 248-8203 Fax: (602) 248-8840 E-mail: dlh@ashrlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Joint Debtors did not file a list of creditors together with its petition. JAZZBONES VENTURES: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Jazzbones Venture Inc. fdba Jazzbones dba Station 56 Inc fdba Station 56 2803 6th Ave. Tacoma, WA 98406 Tel: (206) 696-3533 Bankruptcy Case No.: 10-47976 Chapter 11 Petition Date: September 28, 2010 Court: United States Bankruptcy Court Western District of Washington (Tacoma) Judge: Brian D. Lynch Debtor's Counsel: Karl Y. Park, Esq. LAW OFFICES OF KARL PARK 1010 S 336th St Ste 320 Federal Way, WA 98003 Tel: (253) 815-1400 E-mail: karlpark99@yahoo.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Terry Suzuki, vice president. JEFFERSON COUNTY: Commission President Favors Bankruptcy -------------------------------------------------------- NBC 13's Bettina Boateng reports that one of Jefferson County's key commissioners adamantly against bankruptcy is changing her tune. On Tuesday, Commission President Bettye Fine Collins told reporters circumstances have changed. According to the report, Jefferson County Commission President Bettye Fine Collins said, "If we get to the point, when people refuse to cooperate with us, as hard as we have worked on this, then I myself will have no problem in filing for Chapter 9." "We have been going through this (sewer debt negotiation and resolutions talks with creditors) a very long time . . . with the receiver coming in and if creditors decide to balk on this (settlement or resolution attempts offered by the county), then we just need to go on with it and let those investment brokers decide what they want to do. This county is a victim," Ms. Collins said, according to NBC 13. The report notes that in the past, Commissioners Jim Carns and Bobby Humphryes favored bankruptcy while the remaining three commissioners, including Ms. Collins did not. Commissioners tell Alabama's 13 News that so far no official talks or filings for bankruptcy over the sewer debt have taken place but bankruptcy is still an option on the table. About Jefferson County Jefferson County has its seat in Birmingham, Alabama. It has a population of 660,000. It ended its 2006 fiscal year with a $42.6 million general fund balance, according to Standard & Poor's. Jefferson County is trying to restructure $3.2 billion in sewer debt. A bankruptcy by Jefferson County stands to be the largest municipal bankruptcy in U.S. history. It could beat the record of $1.7 billion set by Orange County, California in 1994. According to the Troubled Company Reporter on September 24, 2010, Dow Jones Newswires' Kelly Nolan said Alabama Circuit Court Judge Albert Johnson named John S. Young Jr. LLC as receiver for the sewer system. * * * In August 2010, Standard & Poor's Ratings Services withdrew its underlying rating on Jefferson County, Ala.'s series 2001B general obligation warrants. S&P lowered the SPUR to 'D' from 'B' on Sept. 24, 2008, due to the county's failure to make a principal payment on the bank warrants due Sept. 15, 2008, in accordance with the terms of the Standby Warrant Purchase Agreement. The county and the banks entered into a forbearance agreement that effectively delayed payments due under the SWPA. JEFFREY FRIMMERSDORF: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Joint Debtors: Jeffrey K. Frimmersdorf Kelly L. Frimmersdorf 17550 Old Summit Road Los Gatos, CA 95033 Bankruptcy Case No.: 10-60357 Chapter 11 Petition Date: October 1, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Jose) Judge: Roger L. Efremsky Debtors' Counsel: Perry D. Popovich, Esq. LAW OFFICES OF PERRY POPOVICH 2903 Simkins Court Palo Alto, CA 94303 Tel: (650) 856-0672 E-mail: popovchp@pacbell.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Joint Debtors did not file a list of creditors together with its petition. JOE MIRANDA: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Joint Debtors: Joe Ortaliz Miranda Imelda Vicencio Miranda 3502 Milburn Street San Jose, CA 95148 Bankruptcy Case No.: 10-60343 Chapter 11 Petition Date: October 1, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Jose) Judge: Charles Novack Debtors' Counsel: David A. Boone, Esq. LAW OFFICES OF DAVID A. BOONE 1611 The Alameda San Jose, CA 95126 Tel: (408)291-6000 E-mail: ecfdavidboone@aol.com Scheduled Assets: $2,030,960 Scheduled Debts: $6,027,551 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb10-60343.pdf JOINT THEATER: Bankruptcy Filing Averts Foreclosure Sale -------------------------------------------------------- Joint Theater Center LLC, doing business as Prince Music Theater, filed for Chapter 11 protection (Bankr. E.D. Pa. Case No. 10- 18693) on October 5, 2010, in Philadelphia. The Debtor estimated total assets of $1 million to $10 million in its Chapter 11 petition. Stephan Salisbury, writing for The Philadelphia Inquirer, reports that owners of the Prince Music Theater filed for Chapter 11 bankruptcy protection on Tuesday, hours before a scheduled sheriff's sale and preventing TD Bank from seizing the 446-seat venue. The Inquirer says the theater's principal debt -- about $4.8 million -- is owed to TD Bank, which had foreclosed on the property, securing a judgment on Christmas Eve 2008 and pushing it to sheriff's sale. The Inquirer relates Marjorie Samoff, the theater's producing director, said the filing will allow the theater time to restructure its debts with court protection and supervision. Ms. Samoff also said the filing will not affect scheduled events, including upcoming Philadelphia Film Festival screenings, educational programming and cabaret events. According to the Inquirer, Rebecca S. Acevedo, a spokeswoman for the bank, issued a statement by e-mail following the bankruptcy filing in Philadelphia: "TD Bank has been a long time supporter of the mission of the Prince Music Theater. We will continue to work through the legal process, now the bankruptcy court, on a resolution of this matter. Given the pending litigation, it would be inappropriate to comment further." KENT SWIG: Real Estate Firm Buys 5 Hanover Square Mortgage ---------------------------------------------------------- Theresa Agovino, writing for Crain's New York Business, reports that sources said real estate firm Savanna has purchased the mortgage on 5 Hanover Square, the tower owned by developer Kent Swig. According to Ms. Agovino, Capital One Bank started marketing the mortgage, which has a face value of about $60 million, over the summer through Robert Knakal, chairman of Massey Knakal Realty Services. Ms. Agovino says it is unclear what Savanna paid for the loan. She relates Savanna executives didn't return calls for comment, and Mr. Knakal declined to comment. According to Ms. Agovino, Mr. Swig is believed to have defaulted on the 325,000-square-foot property's loan. Ms. Agovino notes Mr. Swig lost several properties amid the recession and has been besieged by lawsuits. He is said to owe as much as $50 million to various creditors and has threatened to file for personal bankruptcy. Over the summer, Mr. Swig sold 140 William St. for $11.5 million through Mr. Knakal. LAKE STREET: In Bankruptcy, Has 2 Mos. to Redeem Petoskey Project ----------------------------------------------------------------- 9&10 News' Christina Vecchioni reports that according to the Emmet County Register of Deeds Office, the Petoskey Pointe property is now owned by PNC Bank. On April 1, the Emmet County Sheriff's Department auctioned off the site and PNC Bank had the highest bid. 9&10 News reports that developer Lake Street Petoskey Associates had six months to redeem the property, but missed the October 1 deadline. Lake Street filed Chapter 11 bankruptcy on September 30 and still has 60 days to reclaim the property. LAWRENCE BUILDING: Case Summary & Creditors List ------------------------------------------------ Debtor: The Lawrence Building Company 883 Santa Cruz Avenue, 202 Menlo Park, CA 94025 Bankruptcy Case No.: 10-33938 Chapter 11 Petition Date: October 4, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Francisco) Judge: Dennis Montali Debtor's Counsel: Sheila Gropper Nelson, Esq. LAW OFFICES OF SHEILA GROPPER NELSON 456 Montgomery Street, #1700 San Francisco, CA 94104 Tel: (415)362-2221 E-mail: SheDoesBKLaw@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's nine largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb10-33938.pdf The petition was signed by Malcom L. Durham, president. LEAR CORPORATION: Moody's Raises Corporate Family Rating to 'Ba3' ----------------------------------------------------------------- Moody's Investors Service raised the ratings of Lear Corporation, Corporate Family Rating and Probability of Default Rating to Ba3 from B1. In a related action, the ratings of the company's guaranteed unsecured notes were raised to Ba3. The rating outlook remains positive. The Speculative Grade Liquidity Rating also was affirmed at SGL-2. The raising of Lear's Corporate Family Rating to Ba3 reflects the company's better than expected performance since the positive outlook was assigned in March 2010. Lear's strong operating trends have caused it to raise its 2010 guidance in May and again in August. Recovering global automotive production and the benefits of the company's operational restructuring actions taken during 2009 result in Lear's EBIT margins (including Moody's standard adjustments) returning to pre-industry downturn levels of approximately 5.3% in the first half of 2010. Lear is expected to continue to benefit from the gradual recovery of the automotive industry over the intermediate term. However, Lear will continue to be faced with the challenges of high customer concentrations to the Detroit-3 (in 2009, GM and Ford, together accounted for approximately 36% of net sales, excluding net sales to Saab and Volvo), and approximately 47% of 2009 net sales to Europe. While first half 2010 car registrations in Europe also have improved over prior period levels, the second half of 2010 is expected to reflect seasonal softness and the impact of expired government scrappage programs. In addition 2011 European demand may be adversely impacted by government austerity measures. The positive rating outlook incorporates Moody's view that Lear's continued strong performance and modest debt debts levels should position the company to generate EBIT/Interest over 3x even if the pace of auto demand begins to soften. Lear's good liquidity profile should support financial flexibility in the event that general economic growth temporarily stalls. The SGL-2 Speculative Grade Liquidity Rating continues to indicate the expectation of a good liquidity profile over the next twelve months supported by cash balances and expected free cash flow generation. As of July 3, 2010, the company maintained $1.4 billion of cash and cash equivalents. With the company's lower cost structure and no debt amortization requirements, Moody's expects continued growth in global automotive production to support positive free cash flow generation over the near-term. Liquidity is also supported by a modestly sized $110 million revolving credit facility, which was unfunded as of July 3, 2010. Lear's cash balances and Moody's estimation of ample headroom under the revolver's financial covenants over the near-term will support financial flexibility in the event of a temporary stall in general economic growth. Alternate liquidity is limited as essentially all of the company's assets secure the revolving credit facility. However, given the modest size of the revolver and resulting over collateralization, there is opportunity for Lear to up-size the facility if needed. Ratings raised: -- Corporate Family Rating, to Ba3 from B1; -- Probability of Default Rating, to Ba3 from B1; -- Senior unsecured notes due 2018, to Ba3 (LGD4 55%) from B1 (LGD4 55%); -- Senior unsecured notes due 2020, to Ba3 (LGD4 55%) from B1 (LGD4 55%); -- Senior unsecured shelf, to (P)Ba3 from (P)B1; This rating was affirmed: -- Speculative Grade Liquidity Rating, at SGL-2 The last rating action for reorganized Lear Corporation was on March 22, 2010, when the Corporate Family Rating of B1 and the positive rating outlook were affirmed. Lear Corporation, headquartered in Southfield, MI, is focused on providing complete seat systems, electrical distribution systems and various electronic products to major automotive manufacturers across the world. The company had net sales of $9.7 billion in 2009 and had approximately 75,000 employees in 35 countries LESLIE NEYHART: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Leslie A Neyhart 120 Sandy Ford Road Fairhope, AL 36532 Bankruptcy Case No.: 10-04599 Chapter 11 Petition Date: October 4, 2010 Court: U.S. Bankruptcy Court Southern District of Alabama (Mobile) Debtor's Counsel: Marcus E. McDowell, Esq. P.O. Box 400 Bay Minette, AL 36507 Tel: (251) 937-7024 Fax: (251) 937-6190 E-mail: mmcdowell@wbblaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of creditors together with its petition. LODGENET INTERACTIVE: S&P Withdraws 'B' Rating on $435 Mil. Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B' issue-level rating and '4' recovery rating on LodgeNet Interactive Corp.'s proposed $435 million secured second lien notes due 2016. The action followed the company's decision to withdraw the debt offering. LodgeNet indicated that the pricing and terms were not acceptable. The company planned to use proceeds to fully repay borrowings and to terminate the commitments under its existing credit facilities, pay certain financing and swap breakage fees, and for general corporate purposes. S&P's corporate credit rating on LodgeNet remains at 'B', and the rating outlook is stable. For the 12 months ended June 30, 2010, LodgeNet's lease-adjusted EBITDA coverage of interest (including preferred dividends) and lease-adjusted total debt to EBITDA (including preferred stock) were 2.8x and 4.0x, respectively. The company has directed most of its discretionary cash flow to debt reduction to ensure compliance with financial covenants, and S&P expects it to continue to do so. The debt leverage covenant tightened to 3.5x at the end of Sept. 30, 2010. S&P expects the company to be in compliance with the final leverage covenant step-down. Furthermore, with its good discretionary cash flow, LodgeNet should be able to obtain necessary covenant waivers and/or amendments from its bank group, in S&P's view. For the 12 months ended June 30, 2010, the company converted about 70% of EBITDA to discretionary cash flow. The stable rating outlook reflects S&P's expectation that LodgeNet will be able to maintain sufficient cushion with regard to covenants or obtain necessary waivers and amendments, and that credit ratios will remain appropriate for the rating. Longer term, S&P could raise the rating if business trends improve, leading to sustainable revenue and EBITDA (most likely coming from increased guest spending) growth in the absence of increased competitive pressure from alternative in-room entertainment alternatives. Ratings List LodgeNet Interactive Corp. Corporate Credit Rating B/Stable/-- Withdrawn LodgeNet Interactive Corp. To From -- ---- $435M secd second-lien nts due 2016 NR B Recovery Rating NR 4 LONGHORN PARK: Case Summary & 3 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Longhorn Park II LLC 457 Riviera Dr. Canyon Lake, TX 78133 Bankruptcy Case No.: 10-12737 Chapter 11 Petition Date: September 29, 2010 Court: United States Bankruptcy Court Western District of Texas (Austin) Judge: H. Christopher Mott Debtor's Counsel: Ron Satija, Esq. THE SATIJA LAW FIRM Hall, A Professional Corporation 701 Brazos Street, Suite 500 Austin, TX 78701 Tel: (512) 247-7086 Fax: (512) 692-2833 E-mail: RJ@texbankruptcylaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txwb10-12737.pdf The petition was signed by Tim Clifton, manager. LOREN CHRISTOPHEL: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Joint Debtors: Loren Eldon Christophel Patricia Gail Christophel fka Patricia Gail Riker aka Trish Gail Christophel 2685 Greensburg Road Martinsburg, WV 25404 Bankruptcy Case No.: 10-02027 Chapter 11 Petition Date: September 28, 2010 Court: United States Bankruptcy Court Northern District of West Virginia (Martinsburg) Judge: BK Patrick M. Flatley Debtor's Counsel: Aaron C. Amore, Esq. KRATOVIL & AMORE PLLC 211 West Washington Street P.O. Box 337 Charles Town, WV 25414 Tel: (304) 728-7718 Fax: (304) 728-7720 E-mail: amore@charlestownlaw.com Scheduled Assets: $343,548 Scheduled Debts: $1,255,484 A list of the Joint Debtors' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wvnb10-02027.pdf LA BOTA DEVELOPMENT: Files Full-Payment Reorganization Plan ----------------------------------------------------------- La Bota Development Company, Inc., and Laredo Rock Tech Sand & Gravel, L.P., submitted to the U.S. Bankruptcy Court for the Southern District of Texas a proposed plan of reorganization and an explanatory disclosure statement. The Debtors will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, the Plan provides that the Debtors will satisfy (i) all allowed secured claims to the extent of the value of their collateral; (ii) all administrative claims will be paid under the terms of the Joint Plan from the Distributable Proceeds; and (iii) all allowed unsecured claims of both La Bota and Rock Tech will be paid in full. Satisfaction of La Bota's creditor's claims will be derived from the transfer of certain real property and post-confirmation operating revenue. Payment of Rock Tech's Creditor's claims will be derived from post-confirmation operating revenue and other monies that may be available to satisfy the indebtedness. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/LABOTA_ds.pdf The Debtors are represented by: Wayne Kitchens, Esq. Steven Shurn, Esq. Simon Mayer, Esq. HUGHESWATTERSASKANASE, LLP 333 Clay Street, 29th Floor Houston, Texas 77002 Tel: (713) 759-0818 Fax: (713) 759-6834 E-mail: wkitchens@hwa.com sshurn@hwa.com smayer@hwa.com About La Bota Development Sugar Land, Texas-based La Bota Development Company, Inc., is a real estate development company that owns and sells residential and commercial real estate to developers. It also owns a mobile home park in Nueces County, Texas and a mini-storage facility in Harris County, Texas. Rock Laredo Rock Tech Sand & Gravel, L.P. mines, extracts and sells sand and gravel in Webb County, Texas. La Bota filed for Chapter 11 bankruptcy protection (Bankr. S.D. Texas Case No. 10-20376) on May 3, 2010. The Company estimated $50 million to $100 million in assets and $10 million to $50 million in liabilities in its petition. Tech filed a separate Chapter 11 petition. LINCOLNSHIRE CAMPUS: Combined Plan Hearing on Nov. 10 ----------------------------------------------------- Lincolnshire Campus, LLC, and its debtor-affiliates will seek confirmation of their proposed plan of reorganization on November 10. The Court will consider objections to the Plan at the hearing. The Court has conditionally approved the explanatory disclosure statement. The order, however, reserves the rights of all parties to raise objections to the adequacy in the information in the Disclosure Statement. The Court has set this schedule: * Voting Record Date: Sept. 23, 2010 * Voting Deadline: Nov. 8, 2010 at 5:00 p.m. (CT) * Objection To Adequacy of Disclosure Statement and Confirmation of Plan Deadline: Nov. 8, 2010 at 5:00 p.m. (CT) * Combined Hearing: Nov. 10, 2010 at 9:30 a.m. (CT) The latest iteration of the Plan provides for the payment or full satisfaction of all secured tax claims, senior mechanic's lien claims, administrative claims, and unsecured priority claims. The Plan also provides that the holders of secured claims will receive cash equal to their pro rata share of the cash proceeds after the payment of administrative claims, senior mechanic's lien claims, and the costs for administering the Plan. Holders of unsecured claims will be entitled to receive cash from fund available after payment of all senior claims. The Debtors expect that unsecured creditors, with claims expected to aggregate $500,000, won't get anything. Holders of subordinated claims and equity interests also won't receive any distributions. Impaired creditors -- other than those receiving no distributions -- are entitled to vote on the Plan. Unsecured creditors and equity holders are deemed to reject the Plan. A full-text copy of the Disclosure Statement, as last amended September 30, 2010, is available for free at: http://bankrupt.com/misc/Lincolnshire_DS_093010.pdf The Debtors have amended their Plan and Disclosure Statement three times. Attorneys for Lincolnshire are: Vincent P. Slusher, Esq. Thomas R. Califano, Esq. DLA Piper LLP (US) 1717 Main Street, Suite 4600 Dallas, Texas 75201 Tel: (214) 743-4572 (212) 335-4500 Fax: (972) 813-6267 (212) 335-4501 E-mail: vince.slusher@dlapiper.com thomas.califano@dlapiper.com Attorneys for Monarch Landing, Inc. and Sedgebrook, Inc. are: J. Mark Chevallier, Esq. James G. Rea, Esq. McGUIRE, CRADDOCK & STROTHER, P.C. 3550 Lincoln Plaza 500 N. Akard St. Dallas, TX 75201 Tel: (214) 954-6800 Fax: (214) 954-6850 E-mail: mchevallier@mcslaw.com jrea@mcslaw.com -- and -- Martin T. Fletcher, Esq. Stephen F. Fruin, Esq. Thomas J. Francella, Jr., DE Bar No 3835 WHITEFORD, TAYLOR AND PRESTON, L.L.P. Seven Saint Paul Street Baltimore, MD 21202 Tel: (410) 347-8700 Fax (410) 752-7092 E-mail: mfletcher@wtplaw.com sfruin@wtplaw.com tfrancella@wtplaw.com About the Debtors Lincolnshire Campus and Naperville Campus, LLC, filed for Chapter 11 bankruptcy protection on June 15, 2010 (Bankr. N.D. Tex. Lead Case No. 10-34176). Vincent P. Slusher, Esq., at DLA Piper LLP US, assists the Lincolnshire Debtors in their restructuring effort. BMC Group serves as claims and notice agent. Lincolnshire estimated its assets and debts at $100 million to $500 million. Not-for-Profit Entities Sedgebrook, Inc., and Monarch Landing Inc. filed for Chapter 11 protection on June 15, 2010. The Lincolnshire Debtors and the NFP Debtors are affiliate of Erickson Retirement Communities LLC. Baltimore, Maryland-based Erickson Retirement, along with affiliates, filed for Chapter 11 protection on Oct. 19, 2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves as counsel to the Debtors. Judge Stacey G.C. Jernigan confirmed Erickson's Plan of Reorganization on April 16, 2010. The confirmed Chapter 11 Plan is premised on the $365 million sale of substantially all of the Erickson Retirement assets to Redwood Capital Investments LLC and its affiliates. The Plan became effective on April 30, 2010. BMC Group Inc. served as claims and notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., was investment and financial consultant. Alvarez & Marsal served as restructuring adviser. Erickson own 20 continuing care retirement communities in 11 states. Among Erickson's 20 communities, eight are completed, 11 are open although in construction, and one is in development. They have 23,000 residents in total. MARVIN RICHER: Section 341(a) Meeting Scheduled for Oct. 20 ----------------------------------------------------------- The U.S. Trustee for Region 11 will convene a meeting of Marvin H. Richer and Gail L. Richer's creditors on October 20, 2010, at 12:00 p.m. The meeting will be held at Stewart Square, 308 West State Street, Room 40, Rockford, Illinois 61101. 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. Crystal Lake, Illinois-based Marvin H. Richer and Gail L. Richer filed for Chapter 11 bankruptcy protection on September 27, 2010 (Bankr. N.D. Ill. Case No. 10-74803). Bradley T. Koch, Esq., at Holmstrom & Kennedy P.C., assists the Debtors in their restructuring effort. The Debtors estimated their assets and debts at $10 million to $50 million as of the Chapter 11 filing. MARVIN RICHER: Asks for Court's Nod to Use Cash Collateral ---------------------------------------------------------- Marvin H. Richer and Gail L. Richer ask for authorization from the U.S. Bankruptcy Court for the Northern District of Illinois to use the cash collateral derived from the rents payable by Friendship House and Brilliance Honda. Home State Bank is the Debtors' largest creditor, possessing a claim against the Debtors in the approximate amount of $7,050,000. To secure the repayment of the Debtors' obligations, the Bank claims to possess a mortgage, lien and encumbrance against the real estate and rents derived therefrom. The Debtors estimate the fair market value of the real estate at $19,750,000. A portion of the real estate is leased to Friendship House and Brilliance Honda for a monthly rental payment in these amounts: Friendship House $21,144 Brilliance Honda $4,750 Prior to the commencement of the Debtors' bankruptcy proceeding for a period of several months the rentals payable by Friendship House and Brilliance Honda were paid to the Bank and held in escrow pursuant to an order entered by the Circuit Court of the 22nd Judicial Circuit, McHenry County, Illinois. Bradley T. Koch, Esq., at Holmstrom & Kennedy, P.C., explains that the Debtors need the money to fund their Chapter 11 case, pay suppliers and other parties. The Debtors will use the collateral pursuant to a monthly budget, a copy of which is available for free at http://bankrupt.com/misc/MARVIN_RICHER_budget.pdf In exchange for using the cash collateral, the Debtors propose to grant the Bank postpetition security interest, lien and encumbrance in and to the collateral which security interest, lien and encumbrance will have the same priority as the security interest, lien and encumbrance possessed by the Bank in and to the collateral as of the commencement of the Debtors' bankruptcy proceeding. Crystal Lake, Illinois-based Marvin H. Richer and Gail L. Richer filed for Chapter 11 bankruptcy protection on September 27, 2010 (Bankr. N.D. Ill. Case No. 10-74803). Bradley T. Koch, Esq., at Holmstrom & Kennedy P.C., assists the Debtors in their restructuring efforts. The Debtors estimated their assets and debts at $10 million to $50 million. MARVIN RICHER: Taps Holmstrom & Kennedy as Bankruptcy Counsel ------------------------------------------------------------- Marvin H. Richer and Gail L. Richer to employ Holmstrom & Kennedy, P.C. as bankruptcy counsel. Holmstrom & Kennedy will, among other things: a. prepare pleadings, applications and conduct examinations incidental to any related proceedings or to the administration of the Debtors' bankruptcy proceeding; b. review, evaluate and, if necessary, objection to the claims of any creditors in the Debtors' bankruptcy proceeding; c. take any and all other actions necessary or incidental to the proper preservation and administration of the Debtors' bankruptcy estate in the Debtors' Chapter 11 bankruptcy proceeding; and d. advise and assist the Debtors in the formation and presentation of a plan and disclosure statement pursuant to Chapter 11 of the U.S. Bankruptcy Code. Holmstrom & Kennedy will be paid $170-$300 per hour for its services. Bradley T. Koch, Esq., a principal of Holmstrom & Kennedy, assures the Court that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. Crystal Lake, Illinois-based Marvin H. Richer and Gail L. Richer filed for Chapter 11 bankruptcy protection on September 27, 2010 (Bankr. N.D. Ill. Case No. 10-74803). Bradley T. Koch, Esq., at Holmstrom & Kennedy P.C., assists the Debtors in their restructuring efforts. The Debtors estimated their assets and debts at $10 million to $50 million. MIDWEST BANC: U.S. Trustee Forms 5-Member Creditors Committee ------------------------------------------------------------- William T. Neary, U.S. Trustee for Region 11, appointed five members to the official committee of unsecured creditors in the Chapter 11 cases of Midwest Banc Holdings, Inc. The Creditors Committee members are: 1. Bowne & Co., Inc. 55 Water Street New York City, NY 10041 Tel: (212) 658-5805 Fax: (212) 658-5898 E-mail: scott.spitzer@bowne.com Represented by: Schuyler Carroll, Esq. Arent Fox, LLP 1675 Broadway New York City, NY 10019 Tel: (212) 484-3955 Fax: (212) 484-3990 E-mail: schuyler.carroll@arentfox.com 2. Daniel R. Kadolph 519 Arbor Lane South Elgin, IL 60177 Tel : (708) 805-3197 (847) 697-6393 E-mail: dkadolph@aol.com 3. MBHI Captial Trust IV c/o Wilmington Trust Company, as Trustee 1100 North Market Street Wilmington, DE 19890 Tel: (302) 636-6395 Fax: (302) 651-8882 E-mail: scimalore@wilmingtontrust.com Represented by: Jason J. Solomon, Esq. Tel: (704) 444-1295 Fax: (704) 444-1111 E-mail: jason.solomon@alston.com J. William Boone, Esq. Tel: (404) 881-7282 Fax: (404) 253-8494 E-mail: bill.boone@alston.com 4. M & I Marshall & Ilsley Bank 770 N. Water Street Milwaukee, WI 53202 Tel: (414) 765-7996 Fax: (414) 765-7436 E-mail: john.kadlac@micorp.com Represented by: Mary C. Turke, Esq. Michael Best & Friedrich, LLP 1 S. Pinckney Street P.O. Box 1806 Madison, WI 53701-1806 Tel: (608) 283-0113 Fax: (608) 283-2275 E-mail: mcturke@michaelbest.com 5. David Peck 1301 Brighton Drive Wheaton, IL 60189 Tel: (630) 388-8201 E-mail: dcpeck44@gmail.com Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtor's expense. They may investigate the Debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. Midwest Banc Holdings is the holding company for Midwest Bank and Trust Company. The bank, however, became subject to FDIC receivership this May. Midwest Banc Holdings filed for chapter 11 protection (Bankr. N.D. Ill. Case No. 10-37319) in Chicago on August 20, 2010. Hinshaw & Culbertson serves as bankruptcy counsel to the Debtor. Midwest Banc disclosed assets of $9,690,937 and debts of $144,746,169 as of the bankruptcy filing. MIDWEST BANC: Committee Taps Freeborn & Peters as Counsel --------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter case of Midwest Banc Holdings, Inc., asks the U.S. Bankruptcy Court for the Northern District of Illinois for permission to employ Freeborn & Peters LLP as its counsel. F&P will, among other things: a. advise the Committee on all legal issues as they arise; b. represent and advise the Committee regarding the terms of any sales of assets or plans of reorganization or liquidation, and assist the Committee in negotiations with the Debtor and other parties-in-interest; and c. investigate the Debtor's assets and pre-bankruptcy conduct, and investigate the validity, priority and extent of any liens asserted against the Debtor's assets; The hourly rates of F&P's personnel are: Senior Partners $730 New Associates $255 Paraprofessionals $150 - $270 F&P agreed to apply a reduction of 10% from standard rates for the Chapter 11 case of the Debtor. To the best of the Committee's knowledge, F&P is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Midwest Banc Holdings is the holding company for Midwest Bank and Trust Company. The bank, however, became subject to FDIC receivership this May. Midwest Banc Holdings filed for chapter 11 protection (Bankr. N.D. Ill. Case No. 10-37319) in Chicago on August 20, 2010. Hinshaw & Culbertson serves as bankruptcy counsel to the Debtor. Midwest Banc disclosed assets of $9,690,937 and debts of $144,746,169 as of the bankruptcy filing. MOLECULAR INSIGHT: Gets Oct. 15 Extension of Waiver Agreement ------------------------------------------------------------- Molecular Insight Pharmaceuticals, Inc. has received an eleventh extension of its waiver agreement with its Bond holders, allowing debt restructuring discussions to continue. Earlier this year, Molecular Insight executed the waiver agreement and subsequent amendments with holders of the Company's outstanding Senior Secured Bonds and the Bond Indenture trustee and announced ongoing discussions with the Bond holders concerning a restructuring of its outstanding debt. Under terms of the eleventh extension announced today, the Bond holders and Bond Indenture trustee agreed to extend the waiver of a default arising from the inclusion of a going concern explanatory paragraph in the independent auditor's report on the Company's financial statements for the year ended December 31, 2009, any default arising from the Company's failure to comply with the minimum liquidity requirements set forth in the Bond Indenture, and other technical defaults under the Bond Indenture. The term of the waiver is extended until 11:59 PM Eastern Standard Time on October 15, 2010. During this waiver extension period, the Company will continue to discuss with its Bond holders various proposals. There are no assurances, however, that such discussions will be successful. The waiver continues to be subject to a number of terms and conditions relating to the provision of certain information to the Bond holders, among other conditions and matters. In the event that the waiver expires or terminates prior to the successful conclusion of the Company's negotiations with its Bond holders regarding the restructuring of its outstanding debt, the Company will be in default of its obligations under the Indenture and the Bond holders may choose to accelerate the debt obligations under the Indenture and demand immediate repayment in full and seek to foreclose on the collateral supporting such obligations. If the Company's debt obligations are accelerated or are not restructured on acceptable terms, it is likely the Company will be unable to repay such obligations and may seek protection under the U.S. Bankruptcy Code or similar relief. About Molecular Insight Cambridge, Mass.-based Molecular Insight Pharmaceuticals, Inc. (NASDAQ: MIPI) -- http://www.molecularinsight.com/-- is a clinical-stage biopharmaceutical company and pioneer in molecular medicine. The Company is focused on the discovery and development of targeted therapeutic and imaging radiopharmaceuticals for use in oncology. Molecular Insight has five clinical-stage candidates in development. Molecular Insight had assets of US$49.39 million against debts of US$193 million, mostly current, as of June 30, 2010. As reported in the Troubled Company Reporter on March 17, 2010, Deloitte & Touche LLP expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted of the Company's difficulties in meeting its bond indenture covenants and its recurring losses from operations. Molecular Insight inked with bondholders a waiver agreement that expires August 16, 2010. The bondholders agreed to waive a default arising from the inclusion of a going concern explanatory paragraph in the 2009 financial statements and other technical defaults under the bond indenture. The Company said that if its debt obligations are accelerated following termination of the waiver agreement or the debts are not restructured on acceptable terms, it is likely the Company will be unable to repay such obligations and may seek protection under the U.S. Bankruptcy Code or similar relief. MPC COMPUTERS: Proposes Settlement with Gateway Inc. ---------------------------------------------------- MPC Computers LLC is asking the U.S. Bankruptcy Court for the District of Delaware to approve a settlement resolving all its disputes with Gateway Inc., which has claimed that MPC owes it nearly $16 million, Bankruptcy Law360 reports. The Official Committee of Unsecured Creditors is a party to the settlement. About MPC Corporation Headquartered in Nampa, Idaho, MPC Corporation -- http://www.mpccorp.com-- sells personal computer and provides computer software and hardware to mid-size businesses, government agencies and education organizations. MPC acquired Gateway Professional Divison from Gateway Inc. and Gateway Technologies Inc. in October 1, 2007. MPC and eight of its affiliates filed for Chapter 11 protection on November 6, 2008 (Bankr. D. Del. Lead Case No. 08-12667). Richard A. Robinson, Esq., at Reed Smith LLP, represents the Debtors in their restructuring efforts. The Debtor selected Focus Management Group USA, LLC, as its financial advisors. The United States Trustee appointed seven members to the Official Committee of Unsecured Creditors on November 25, 2008. Hahn & Hessen LLP represents the Committee. As of June 30, 2008, the Debtors have $258.3 million in total assets and $277.8 million in total debts NAKNEK ELECTRIC: Files for Chapter 11 to Void Liens --------------------------------------------------- Naknek Electric Association Inc. filed a Chapter 11 petition on Sept. 29, 2010, in Anchorage, Alaska (Bankr. D. Alaska Case No. 10-00824). Naknek Electric is a non-profit corporation supplying electric power to Naknek, Alaska. The association has a diesel-powered electric generation plant with 591 customers who are members of the cooperative. The existing plant has a depreciated value of $8.7 million. The association is developing a geothermal plan that would supply 60% of peak electric demands in summer. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the association filed for Chapter 11 to set aside judgment liens. In July, CoBank ACB recorded a judgment for $6.9 million. In the same month, Baker Hughes Oilfield Operations Inc. recorded a $3.6 million judgment. Both judgments became liens on the association's property. Mr. Rochelle also relates that the association already filed suit in bankruptcy court seeking to set aside the judgment liens as preferences. The association relies on the theory that securing a previously unsecured debt is a preference that the bankruptcy judge can set aside as long as the security interest was obtained within 90 days of bankruptcy. According to Mr. Rochelle, the association also owes $3.1 million to the Rural Utilities Service, an agency of the U.S. Department of Agriculture. The association says that the agency has a first lien. NAKNEK ELECTRIC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Naknek Electric Association, Inc. 101 School Rd., P.O. Box 118 Naknek, AK 99633 Bankruptcy Case No.: 10-00824 Chapter 11 Petition Date: September 29, 2010 Court: United States Bankruptcy Court Alaska (Anchorage) Debtor's Counsel: Erik LeRoy, Esq. ERIK LEROY P.C. 500 L Street, Suite 302 Anchorage, AK 99501 Tel: (907) 277-2006 E-mail: leroy@alaska.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Donna Vukich, general manager. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ CoBANK ACB Bank loan $7,035,791 P O Box 5110 Denver, CO 80217-5110 Baker Hughes trade $3,564,673 Business Support P O Box 200415 Houston, TX 77216-0415 BJ Services trade $892,884 PO Box 4346, Dept 393 Houston, TX 77210-4346 GBR Equipment Inc. trade $339,561 6300 Petersburg Anchorage, AK 99507 Weaver Bros. trade $300,000 PO Box 2229 Kenai, AK 99611 Northern Air Cargo trade $272,701 3900 Old Intn'l Airport Rd Anchorage, AK 99502 Tecton Geologic, LLC trade $232,107 3883 Airway Dr., ste 340 Santa Rosa, CA 95403 NOV Rig Solutions trade $219,147 PO Box 210202 Dallas, TX 75320-1202 National Oilwell trade $210,500 Varco LP PO Box 200838 Dallas, TX 75320-0838 Weatherford Drilling trade $201,863 Services PO Box 200019 Houston, TX 77216-0019 Tatonduk Outfitters Ltd trade $197,705 Alaska Earth Science trade $192,468 ThermaSource Inc. trade $176,781 Bristol Bay Contractors trade $166,389 Workstring Alaska trade $164,640 BC Contractors trade $123,602 TIW Corporation trade $118,543 Centrifuge Services, LLC trade $108,096 DHS Drilling Co. trade $104,479 Chancellor Oil trade debt $103,780 Tools, Inc. NEC HOLDINGS: To Close Lenexa Facility & Cut 206 Jobs ----------------------------------------------------- Suzanna Stagemeyer, staff writer for Kansas City Business Journal, reports that National Envelope Corp. is closing down its Lenexa facility and laying off more than 200. Business Journal relates Terry Fahn, a spokesman for the company's owner, said in an e-mail response that the layoffs would be phased. A filing with the state of Kansas indicated that most of the 206 layoffs would be effective by the Dec. 2 facility closing. According to Business Journal, Mr. Fahn said National Envelope is consolidating some facilities to try to "streamline the cost structure of the business." The 178,000-square-foot Lenexa facility, 16000 W. 108th St., is among the facilities that will be shut down. The Lenexa employees will be given the potential opportunity to transfer to other National Envelope facilities. About NEC Holdings Uniondale, New York-based National Envelope Corporation -- http://www.nationalenvelope.com/-- is the largest manufacturer of envelopes in the world with 14 manufacturing facilities and two distribution centers and approximately 3,500 employees in the U.S. and Canada. NEC Holdings Corp., together with affiliates, including National Envelope Inc., filed for Chapter 11 on June 10, 2010 (Bankr. D. Del. Lead Case No. 10-11890). Kara Hammond Coyle, Esq., at Young Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel. David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R. Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The Garden City Group is the claims and notice agent. NEC Holdings estimated assets and debts of $100 million to $500 million in its Chapter 11 petition. In September 2010, National Envelope was bought in a roughly $208 million deal by The Gores Group LLC, a West Coast private equity firm that manages about $2.9 billion of capital. NEVADA GEOTHERMAL: Posts $18 Million Net Loss in Fiscal 2010 ------------------------------------------------------------ Nevada Geothermal Power Inc. filed on October 4, 2010, its audited annual financial statements for the fiscal year ended June 30, 2010. The Company reported a net loss of $18.0 million on $11.8 million of revenue for fiscal 2010, compared to a net loss of $5.1 million on $0 revenue for fiscal 2009. The net loss for fiscal 2010 was mostly due to an increase in the interest expense of $15.4 million. The Company's balance sheet at June 30, 2010, showed $187.3 million in total assets, $161.5 million in total liabilities, and stockholders' equity of $25.8 million. At June 30, 2010, the Company was not in compliance with all the terms of its Trust Company of the West loan, and accordingly the loan was classified as a short-term liability. Consequently, as at June 30, 2010, the Company had a working capital deficiency of $145.8 million. In addition, the Company's cumulative operating losses and development costs have resulted in accumulated losses totaling $35.4 million. In the notes to the consolidated financial statements for the year ended June 30, 2010, the Company discloses that although it has successfully declared commercial operation at its Blue Mountain power plant facility, there exists substantial doubt regarding the going concern assumption since the Company has no track record of operating profitably, and the Company must increase power production to meet loan covenants, such as a covenanted interest coverage ratio. A full-text copy of the audited financial statements is available for free at http://researcharchives.com/t/s?6c2e A full-text copy of the Annual Management's Discussion and Analysis is available for free at: http://researcharchives.com/t/s?6c2f About Nevada Geothermal Inc. Vancouver, B.C.-based Nevada Geothermal Power Inc. -- http://www.nevadageothermal.com/-- was incorporated on April 13, 1995, under the laws of British Columbia and became a revenue generating company during the second fiscal 2010 quarter, the fourth calendar quarter of 2009. The Company was in the development stage until that point. The Company's common shares are traded on the TSX Venture Exchange under the trading symbol NGP and on the OTC Bulletin Board in the United States under the symbol NGLPF. The Company is a generator of geothermal electrical power and a developer of geothermal projects. Nevada Geothermal's principal operation is the Faulkner I power plant located in northern Nevada ("Blue Mountain"). Revenue is generated by the Company from selling electrical power to NV Energy under a 20-year Power Purchase Agreement. The Company is also continuing its exploration, evaluation and further development of other geothermal property interests at Pumpernickel Valley, Black Warrior and Edna Mountain in Nevada, as well as Crump Geyser in Oregon. OPUS EAST: Ch. 7 Trustee Wins Nod for Ciardi as Counsel ------------------------------------------------------- Jeoffrey L. Burtch, the Chapter 7 Trustee of Opus East Corp. and its affiliates, received authority from the U.S. Bankruptcy Court for the District of Delaware to employ Ciardi Ciardi & Astin as his special counsel nunc pro tunc to March 6, 2010. As previously reported, the Court approved the employment of Young Conaway Stargatt and Taylor LLP as co-counsel to the Chapter 7 Trustee. The principal attorney responsible for the Young Conaway engagement was John D. McLaughlin, Jr., who, effective March 6, 2010, became a partner in the Ciardi firm. Mr. McLaughlin had substantial involvement in the early stages of Opus East's case administration. In this light, the Chapter 7 Trustee relates that it desires (i) that Mr. McLaughlin remain available for discrete consultations, and (ii) that the Ciardi Firm, which maintains a substantial office in the City of Philadelphia, serve as the Chapter 7 Trustee's special litigation counsel in a state receivership action initiated in the Court of Common Pleas of Philadelphia County against real property owned by 1919 Market Street Philadelphia LLC, a wholly owned asset of Opus East. Ciardi Ciardi will be paid for its service at its customary hourly rates: Attorneys $225 to $525 Paraprofessionals $120 to $180 Mr. Laughlin assures the Court that his firm is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code. About Opus East Rockville-based Opus East LLC has developed more than 13.3 million square feet of space since starting operations in 1994. It filed for Chapter 7 liquidation in the U.S. Bankruptcy Court for the District of Delaware. Opus East LLC listed $100 million to $500 million in debts, against $50 million to $100 million in assets in its Chapter 7 petition. Jeoffrey L. Burtch, the Chapter 7 Trustee of the Opus East, has tapped Ciardi Ciardi & Astin as his special counsel. Young Conaway Stargatt and Taylor LLP is co-counsel to the Chapter 7 Trustee. OPUS SOUTH: Trustee Wants Claim vs. Waters Edge Deemed Timely ------------------------------------------------------------- Jeoffrey L. Burtch, Chapter 7 Trustee of Opus South Contractors LLC, asks the Court to deem a certain contractor claim asserted against Waters Edge One LLC as timely filed. The Chapter 7 Trustee filed a proof of claim against Waters Edge for an outstanding account receivable for $2,305,026 on August 5, 2010. R. Grant Dick IV, Esq., at Cooch and Taylor P.A., in Wilmington, Delaware, contends that Waters Edge would not be prejudice by the Chapter 7 Trustee's request. The length of the delay is also negligible in terms of both the actual time and the status of the proceedings, he asserts. The Claims Bar Date for persons and entities holding a claim against Waters Edge was established as January 20, 2010. The Bar Date Order required the service of the notice of the General Bar Date via first class mail to all parties-in-interest. The Chapter 7 Trustee however relates that he did not receive the Bar Date Notice and was unaware of the Bar Date until after it had expired. Representing the Chapter 7 Trustee, Mr. Dick asserts that the Chapter 7 Trustee was not among the list of those who received the Bar Date Notice. Mr. Dick relates that on July 29, 2010, the Chapter 7 Trustee contacted counsel for Executive Sounding Board Associates, Inc., the Liquidation Trustee for Waters Edge, to (i) report that it did not receive proper notice of the General Bar Date and (ii) seek that the Contractors' claim against the Waters Edge estate be deemed as timely filed. After providing counsel to the Liquidation Trustee with information regarding the Contractors' claim and an exchange of e-mails, counsel to the Liquidation Trustee however informed the Chapter 7 Trustee that it would not agree to have the Claim deemed timely filed. About Opus South Headquartered in Atlanta, Georgia, Opus South Corporation -- http://www.opuscorp.com/-- provides an array of real estate related services across the United States including real estate development, architecture & engineering, construction and project management, property management and financial services. The Company and its affiliates filed for Chapter 11 on April 22, 2009 (Bankr. D. Del. Lead Case No. 09-11390). Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP, represents the Debtors in their restructuring efforts. The Debtors propose to employ Landis, Rath & Cobb, LLP, as conflicts counsel, Chatham Financial Corporation as real estate broker, Delaware Claims Agency LLC as claims agent. The Debtors have assets and debts both ranging from $50 million to $100 million. The U.S. Bankruptcy Court for the District of Delaware confirmed the Chapter 11 Plan of Liquidation filed by Wachovia Bank, National Association, as administrative agent, and certain lender parties for Waters Edge One, L.L.C., one of the Opus South Debtors, on February 18, 2010. Opus South sought and obtained an order from the U.S. Bankruptcy Court for the District of Delaware converting its case from Chapter 11 to Chapter 7 of the Bankruptcy Code on August 27, 2010. Roberta A. DeAngelis, the Acting U.S. Trustee for Region 3, has appointed Jeoffrey L. Burtch as interim trustee of the Chapter 7 estate of Opus South Corp. OPUS SOUTH: BofA Wants Lift Stay to Include Debtor as Defendant --------------------------------------------------------------- By this motion, Bank of America, N.A. seeks a modification of the automatic stay so that it may include Opus South Corporation as a defendant in a pending foreclosure action against Debtor Nature Coast Commons LLC, in Hernando County, Florida. Nature Coast, as borrower; Opus South, as guarantor; and BofA, as Lender, entered into an Amended and Restated Loan Agreement on June 20, 2008, for the construction of certain improvements to a Spring Hill, Florida retail center owned by Nature Coast. The Loan is evidenced by two currently outstanding Promissory Notes, dated January 3, 2007, executed by Nature Cost and aggregating $39,140,000. In consideration of the Loan and as security for the Notes and Nature Coast's obligations, Nature Coast entered into that (i) a Mortgage, Assignment of Rents and Security Agreement dated as of January 3, 2007, as amended by a Mortgage Modification and Spreader Agreement dated as of November 15, 2007; and (ii) a Guaranty Agreement dated as of January 3, 3007, executed by Opus South as guarantor in favor of BofA. Pursuant to the Loan Documents, Nature Coast granted BofA a first lien and security interest on the Project, including, without limitation, all related real estate and improvements and all of its other assets including fixtures, cash, rents, issue, profits, revenues and receivables generated by the Project. BofA maintains that it properly perfected its interest in the Collateral by filing financing statements, recording the necessary Loan Documents, and taking other necessary actions. Counsel to BofA, Stuart M. Brown, Esq., at Edwards Angell Palmer & Dodge LLP, in Wilmington, Delaware, relates that as of the Petition Date, the outstanding amount due on the Notes comprised of principal and accrued interest in the amount of $29,735,971, plus other amounts as may be due under the Loan Documents. The Court previously entered an order granting BofA relief from the automatic stay to, among other things, seek the appointment in state court of a receiver to operate the Project. An order was subsequently entered by the Circuit Court of the Fifth Judicial Circuit in and for Hernando County, Florida, on May 27, 2009, appointing Daren Rubenfeld as receiver of the Project. Mr. Brown relates that despite the efforts of the Receiver to solicit potential purchasers, no purchase offers were received for the Project at an amount equal to or above the Indebtedness owed to BofA under the Loan Documents, which by virtue of further advances made to the Receiver by BofA continues to increase. BofA thus filed a Motion for Modification of the Automatic Stay in the Nature Coast on May 11, 2010, to allow it exercise its rights and remedies under the Loan Documents, including to continue prosecution of its pending foreclosure action against Nature Coast in Hernando County, Florida. Mr. Brown notes that no objections were asserted against the Lift Stay Motion and the only substantive changes to the form of order included a request by the Chapter 7 trustee to include language that all interests of the Nature Coast estate in the Project were abandoned. A review of a Nature Coast report reveals that Opus South filed several mechanics' liens for services which are listed as interior improvements, site work, plumbing, electrical, mechanical and drywall, Mr. Brown notes. In light of these mentioned Opus South liens on Nature Coast, Mr. Brown maintains that "all of the Mechanics' Liens are junior and subordinate to [BofA's] lien pursuant to the Loan Documents." About Opus South Headquartered in Atlanta, Georgia, Opus South Corporation -- http://www.opuscorp.com/-- provides an array of real estate related services across the United States including real estate development, architecture & engineering, construction and project management, property management and financial services. The Company and its affiliates filed for Chapter 11 on April 22, 2009 (Bankr. D. Del. Lead Case No. 09-11390). Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP, represents the Debtors in their restructuring efforts. The Debtors propose to employ Landis, Rath & Cobb, LLP, as conflicts counsel, Chatham Financial Corporation as real estate broker, Delaware Claims Agency LLC as claims agent. The Debtors have assets and debts both ranging from $50 million to $100 million. The U.S. Bankruptcy Court for the District of Delaware confirmed the Chapter 11 Plan of Liquidation filed by Wachovia Bank, National Association, as administrative agent, and certain lender parties for Waters Edge One, L.L.C., one of the Opus South Debtors, on February 18, 2010. Opus South sought and obtained an order from the U.S. Bankruptcy Court for the District of Delaware converting its case from Chapter 11 to Chapter 7 of the Bankruptcy Code on August 27, 2010. Roberta A. DeAngelis, the Acting U.S. Trustee for Region 3, has appointed Jeoffrey L. Burtch as interim trustee of the Chapter 7 estate of Opus South Corp. OPUS SOUTH: Greenberg Traurig Bills $774,392 for Work as Counsel ---------------------------------------------------------------- By virtue of the conversion of the case of Opus South Corporation into a proceeding under Chapter 7, Greenberg Traurig LLP and Landis Rath & Cobb LLP filed with the Court final fee applications for services they rendered for Opus South's benefit for the duration of its Chapter 11 case for the period from April 22, 2009 through August 27, 2010: Fees Expenses Professional Role Sought Sought ------------ -------------- --------- --------- Greenberg Traurig LLP Opus South's $774,392 $77,249 lead counsel Landis Rath & Cobb LLP Opus South's $29,955 $622 conflicts counsel Greenberg Traurig specifically seeks: -- fees, totaling $21,783, and reimbursement of expenses, totaling $620, for professional services rendered in July 2010; and -- fees, totaling 20,154, and reimbursement of expenses, totaling $504, for professional services rendered in August 2010. Greenberg Traurig also asks the Court to grant it an allowed administrative claim in the Chapter 7 case of Opus South for $66,237 in fees and $1,124 in expenses. Landis Rath, for its part, specifically seeks the allowance of fees, totaling $3,376, and the reimbursement of expenses, aggregating $55, for the period from February 1, 2010 through August 27, 2010. About Opus South Headquartered in Atlanta, Georgia, Opus South Corporation -- http://www.opuscorp.com/-- provides an array of real estate related services across the United States including real estate development, architecture & engineering, construction and project management, property management and financial services. The Company and its affiliates filed for Chapter 11 on April 22, 2009 (Bankr. D. Del. Lead Case No. 09-11390). Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP, represents the Debtors in their restructuring efforts. The Debtors propose to employ Landis, Rath & Cobb, LLP, as conflicts counsel, Chatham Financial Corporation as real estate broker, Delaware Claims Agency LLC as claims agent. The Debtors have assets and debts both ranging from $50 million to $100 million. The U.S. Bankruptcy Court for the District of Delaware confirmed the Chapter 11 Plan of Liquidation filed by Wachovia Bank, National Association, as administrative agent, and certain lender parties for Waters Edge One, L.L.C., one of the Opus South Debtors, on February 18, 2010. Opus South sought and obtained an order from the U.S. Bankruptcy Court for the District of Delaware converting its case from Chapter 11 to Chapter 7 of the Bankruptcy Code on August 27, 2010. Roberta A. DeAngelis, the Acting U.S. Trustee for Region 3, has appointed Jeoffrey L. Burtch as interim trustee of the Chapter 7 estate of Opus South Corp. OPUS WEST: Files Omnibus Claims Objections ------------------------------------------ Opus West Corp. and its affiliates delivered to the Bankruptcy Court 52 separate omnibus objections to various claims in mid- August 2010. The Opus West Debtors dispute the allowance of the claims as filed for reasons that the claims, among other things, were asserted with priority status in an amount that exceeds the amount authorized under Section 507 of the Bankruptcy Code; are duplicative of other filed claims; were filed after the expiration of the Claims Bar Date; or have already been satisfied. Several parties have submitted responses to the Debtors' Omnibus Claims Objections. They include: -- Coreslab Structures (Texas) Inc., -- Maricopa County Arizona, -- Wells Fargo Bank, N.A., -- Daniel T. Haug, -- Charles Vogel, -- Linnaea M. and James E. Godwin, -- Craig Zupancic, -- Carla Jo Clary, -- Vickie M. Sixta, -- Jason Caruthers, -- Claire C. Janssen, and -- R.L. Murphey Commercial Roof Systems, L.P. About Opus West Corporation Based in Phoenix, Arizona, Opus West Corporation is a full-service real estate development firm that focuses on acquiring, constructing, operating, managing, leasing and/or disposing of real estate development projects primarily located in the western United States. Opus West and its affiliates filed for Chapter 11 on July 6, 2009 (Bankr. N.D. Tex. Case No. 09-34356). Clifton R. Jessup, Jr., at Greenberg Traurig, LLP, represents the Debtors in their restructuring efforts. Franklin Skierski Lovall Hayward, LLP, is co-counsel to the Debtors. Pronske & Patel, P.C., is conflicts counsel. Chatham Financial Corp. is financial advisor. BMC Group is the Company's claims and notice agent. As of May 31, Opus West -- together with its non-debtor affiliates -- had $1,275,334,000 in assets against $1,462,328,000 in debts. In its bankruptcy petition, Opus West said it had assets and debts both ranging from $100 million to $500 million. Opus West joins affiliates that previously filed for bankruptcy. Opus East LLC, a real estate operator from Rockville, Maryland, commenced a Chapter 7 liquidation on July 1 in Delaware. Opus South Corp., a Florida condominium developer based in Atlanta, filed a Chapter 11 petition April 22 in Delaware. OPUS WEST: Bechthold & Sullivan Agree on Expungement of Claims -------------------------------------------------------------- Opus West Corp. and its units entered into separate Court-approved stipulations with Michael Sullivan and Ned Bechthold for the disallowance of the Creditors' claims. The Debtors previously scheduled Mr. Sullivan as having a claim of $651,416 and Mr. Bechthold as having a claim for $590,425 against them. The Debtors objected to the Claims in August 2010 on that basis that the Claims should be equitably subordinated. Pursuant to the Stipulations, the Claimants agreed not to burden unsecured creditors by seeking compensation from the Debtors' estates subject to the Debtors' withdrawal of their claim objections. The Debtors' claims objections allege that the Claimants engaged in inequitable conduct or misconduct through breach of any fiduciary duty, and aiding and abetting the breach of any fiduciary duty. About Opus West Corporation Based in Phoenix, Arizona, Opus West Corporation is a full-service real estate development firm that focuses on acquiring, constructing, operating, managing, leasing and/or disposing of real estate development projects primarily located in the western United States. Opus West and its affiliates filed for Chapter 11 on July 6, 2009 (Bankr. N.D. Tex. Case No. 09-34356). Clifton R. Jessup, Jr., at Greenberg Traurig, LLP, represents the Debtors in their restructuring efforts. Franklin Skierski Lovall Hayward, LLP, is co-counsel to the Debtors. Pronske & Patel, P.C., is conflicts counsel. Chatham Financial Corp. is financial advisor. BMC Group is the Company's claims and notice agent. As of May 31, Opus West -- together with its non-debtor affiliates -- had $1,275,334,000 in assets against $1,462,328,000 in debts. In its bankruptcy petition, Opus West said it had assets and debts both ranging from $100 million to $500 million. Opus West joins affiliates that previously filed for bankruptcy. Opus East LLC, a real estate operator from Rockville, Maryland, commenced a Chapter 7 liquidation on July 1 in Delaware. Opus South Corp., a Florida condominium developer based in Atlanta, filed a Chapter 11 petition April 22 in Delaware. PETTERS GROUP: Trustee Sues Arrowhead to Recoup $105.4 Million -------------------------------------------------------------- John Welbes at The Pioneer Press reports that Doug Kelley, the court-appointed trustee handling the Petters corporate bankruptcy, filed a lawsuit Tuesday to recoup $105.4 million in "false profits" from Minnetonka-based Arrowhead Capital Management and several related corporations that invested in the Tom Petters Ponzi scheme. The Pioneer Press reports that the lawsuit indicates that Arrowhead and other companies were among the earliest investors in the Petters scheme, starting in 1996. The companies received $5.1 billion in gross transfers from Petters Co. Inc. and related entities over the years, the lawsuit filed in federal court says. According to the report, the lawsuit also names James N. Fry of Orono as a defendant. Mr. Fry was a managing partner or principal in Arrowhead Capital Partners II and other firms named in the suit. He declined to comment when contacted Tuesday. The report notes Arrowhead Capital Partners has indicated it had more than $100 million in unsecured claims against Petters Co. Inc. and other Petters-owned entities. However, the report continues, an in-depth accounting of Petters' businesses that lasted almost two years showed the money some investors took out of the Ponzi scheme totaled more than what they put in, according to Mr. Kelley. The report relates lawsuits against more than 200 net winners in the Petters scheme are expected to be filed by early next week, when the statute of limitations for such suits expires. Targets include investors, former employees and charities that received more cash from Petters than they invested. About Petters Group Worldwide LLC Based in Minnetonka, Minnesota, Petters Group Worldwide LLC is named for founder and chairman Tom Petters. The group is a collection of some 20 companies, most of which make and market consumer products. It also works with existing brands through licensing agreements to further extend those brands into new product lines and markets. Holdings include Fingerhut (consumer products via its catalog and Web site), SoniqCast (maker of portable, WiFi MP3 devices), leading instant film and camera company Polaroid (purchased for $426 million in 2005), Sun Country Airlines (acquired in 2006), and Enable Holdings (online marketplace and auction for consumers and manufacturers' overstock inventory). Petters formed the company in 1988. Petters Company, Inc., is the financing and capital-raising unit of Petters Group Worldwide, LLC. Petters Company, Inc., Petters Group Worldwide, LLC, and eight other affiliates filed separate petitions for Chapter 11 protection (Bankr. D. Minn. Case No. 08-45257) on October 11, 2008. James A. Lodoen, Esq., at Lindquist & Vennum P.L.L.P., serves as the Debtors' counsel. In its petition, Petters Company, Inc., estimated debts of between $500 million and $1 billion, while its parent, Petters Group Worldwide, LLC, estimated debts of not more than $50,000. Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing business as Sun Country Airlines, Inc., and MN Airline Holdings, Inc., filed separate petitions for Chapter 11 bankruptcy protection (Bankr. D. Minn. Case Nos. 08-45136, 08-35197 and 08-35198) on October 6, 2008 . Petters Aviation, LLC is a wholly owned unit of Thomas Petters Inc. and owner of MN Airline Holdings, Inc., Sun Country's parent company. PFG ASPENWALK: Gets Court's Interim Nod to Obtain DIP Financing --------------------------------------------------------------- PFG AspenWalk, LLC, seeks authorization from the Hon. Robert J. Kressel of the U.S. Bankruptcy Court for the District of Minnesota to obtain postpetition secured financing from Bank of America, N.A. The Debtor is seeking to obtain up to $1,400,000 DIP financing, which may be drawn on by the Debtor on a non-revolving basis to fund costs associated with final Planned Unit Development of the Development Project by the City of Aspen. That DIP loan would mature in twelve months, and will bear interest at an annual rate of the 13%. Additionally, the DIP Lender will receive 5% of the common equity interests in the Debtor. A copy of the motion is available for free at: http://bankrupt.com/misc/PFG_ASPENWALK_dipfinancingmotion.pdf $132,000 Available on Interim The Court has entered an interim order, allowing the Debtor to access to draw $132,000 under the debtor-in-possession loan in accordance with the stipulation reached by BofA and the Debtor. A copy of the Stipulation is available for free at: http://bankrupt.com/misc/PFG_ASPENWALK_dipfinancingstipulation.pdf By October 8, 2010, the Debtor and the DIP lender will execute a loan agreement in form and substance reasonably satisfactory to Bank of America and consistent with the terms of the stipulation. Adam D. Maier, Esq., at Leonard, Street And Deinard P.A., explained that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. Under the stipulation, the Debtor may grant Bank of America replacement liens in the Debtor's postpetition assets of the same type and nature as are subject to the prepetition liens of Bank of America. Except for the priming lien on the development property granted to the debtor-in-possession lender, the liens will have the same priority, dignity and effect as prepetition liens on the prepetition property of the Debtor. The replacement lien granted by the Debtor will be deemed properly perfected without further act or deed on the part of the debtor or Bank of America. The Court has set a final hearing for October 13, 2010, at 10:00 a.m. on the Debtor's request to obtain DIP financing. Minneapolis, Minnesota-based PFG AspenWalk, LLC, filed for Chapter 11 bankruptcy protection on September 23, 2010 (Bankr. D. Minn. Case No. 10-47089). Robert T. Kugler, Esq., at Leonard Street & Deinard P.A., assists the Debtor in its restructuring effort. According to its schedules, the Debtor disclosed $12,004,580 in total assets and $7,535,608 in total liabilities as of the Petition Date. PFG ASPENWALK: Taps Leonard Street as Bankruptcy Counsel -------------------------------------------------------- PFG Aspenwalk, LLC, asks for authorization from the U.S. Bankruptcy Court for the District of Minnesota to employ Leonard, Street and Deinard Professional Association as bankruptcy counsel. Leonard Street will, among other things: (a) analyze the Debtor's financial situation and rendering advice and assistance in determining how to proceed, which has included advice, negotiation, and preparation of documents for a Chapter 11 filing; (b) assist in the preparation of filing the petition, exhibits, attachments, schedules, statements, and lists, first day motions, and other documents required by the U.S. Bankruptcy Code, the Bankruptcy Rules, the Local Rules or the Court in the course of this bankruptcy case; (c) represent the Debtor at the meeting of creditors; and (d) negotiate with creditors and other parties in interest. Leonard Street will be paid based on the hourly rates of its personnel: Robert T. Kugler, Shareholder $460 Lara O. Glaesman, Associate $325 Adam D. Maier, Associate $270 Robert T. Kugler, Esq., a shareholder of Leonard Street, assures the Court that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. Minneapolis, Minnesota-based PFG AspenWalk, LLC, filed for Chapter 11 bankruptcy protection on September 23, 2010 (Bankr. D. Minn. Case No. 10-47089). According to its schedules, the Debtor disclosed $12,004,580 in total assets and $7,535,608 in total liabilities as of the Petition Date. POLYMER GROUP: Blackstone Deal Cues Moody's to Withdraw Ratings --------------------------------------------------------------- Moody's Investors Service said Polymer Group, Inc.'s announcement that it has entered into a definitive agreement to be acquired by an affiliate of Blackstone Capital Partners V L.P. will likely result in the withdrawal of Moody's ratings on PGI's existing bank debt upon closing of the transaction. The previous rating action on PGI occurred on July 28, 2009, when Moody's affirmed the B1 Corporate Family Rating and assigned a Ba3 rating to PGI's new credit facility tranches. Headquartered in Charlotte, North Carolina, PGI is one of the world's leading producers of nonwoven materials. The company reported revenues of approximately $1.0 billion in the twelve months ended July 3, 2010. PRIMUS TELECOMMUNICATIONS: S&P Puts 'B-' Rating on Negative Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services said it placed its ratings on McLean, Va.-based Primus Telecommunications Group Inc. and related entities, including the 'B-' corporate credit rating, on CreditWatch with negative implications. The action follows recent disclosures by the company that its Board of Directors terminated the employment of both the company's former President and CEO and its former CFO. The Board has filled both positions with acting appointees. Primus, a multinational provider of integrated telecommunications services, reported approximately $244 million of debt outstanding at June 30, 2010. In resolving the CreditWatch, Standard & Poor's will evaluate what impact, if any, the departure of these two key individuals may have on the company's operational strategy and its financial policies. QOC I: Wants to Hire Cole Schotz as Co-Counsel ---------------------------------------------- QOC I LLC asks for authorization from the U.S. Bankruptcy Court for the Southern District of Florida to employ Cole, Schotz, Meisel, Forman & Leonard, P.A., as bankruptcy co-counsel, nunc pro tunc to the Petition Date. Cole Schotz will, among other things: a. attend meetings and negotiate with representatives of creditors and other parties-in-interest and advise and consult on the conduct of the Debtor's bankruptcy case, including all of the legal administrative requirements of operating in Chapter 11; b. advise the Debtor in connection with any contemplated sales of assets or business combinations, including the negotiation of sales promotion, liquidation, stock purchase, merger or joint venture agreements, formulate and implement bidding procedures, evaluate competing offers, draft appropriate corporate documents with respect to the proposed sales, and counsel the Debtor in connection with the closing of the sales; c. advise the Debtor in connection with postpetition financing and cash collateral arrangements, provide advice and counsel with respect to prepetition financing arrangements, and provide advice to the Debtor in connection with the emergence financing and capital structure, and negotiate and draft documents relating thereto; and d. advise the Debtor on matters relating to the evaluation of the assumption, rejection or assignment of unexpired leases and executor contracts. Cole Schotz will be paid based on the hourly rates of its personnel: Attorneys $195-$750 Gerald Gline $690 David Bass $550 Legal Assistants $170-$235 Gerald H. Gline, Esq., a shareholder of Cole Schotz, assures the Court that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. Boca Raton, Florida-based QOC I LLC owns previously issued life insurance policies purchased in the life settlement market. QOC I filed for Chapter 11 bankruptcy protection on October 1, 2010 (Bankr. S.D. Fla. Case No. 10-40153). The Debtor estimated its assets and debts at $100 million to $500 million as of the Petition Date. QOC I: Wants to Use Wells Fargo's Cash Collateral ------------------------------------------------- QOC I LLC asks for authorization from the U.S. Bankruptcy Court for the Southern District of Florida to use $1,112,766 of Wells Fargo Bank, National Association's cash collateral. In May 2008, the Debtor, along with its parent, Q Opportunity Corp., entered into that certain Loan and Security Agreement with Wachovia Capital Markets, Inc., as administrative agent. Wells Fargo, as custodian, pursuant to which Wells Fargo's predecessor, Wachovia Bank, National Association, agreed to advance $120 million to the Debtor for the purchase of previously issued life insurance policies. The Debtor owed Wells Fargo $120 million on account of the Loan and Security Agreement and approximately an additional $15.2 million (as of August 31, 2010) on account of a hedge breakage costs should the hedging agreement with Wells Fargo be terminated and unwound. The Debtor currently owns 283 Policies on 223 lives with a face value of approximately $550 million. The discounted current value of the policies is at least $164,465,812 as of August 31, 2010. The Policies comprising the Debtor's life settlement portfolio are the Debtor's primary asset and the principal collateral securing the obligations to Wells Fargo. Glenn D. Moses, Esq., at Genovese Joblove & Battista, P.A., explains that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. Mr. Moses says that the Debtor's value as a going concern, and to its stakeholders, is dependent upon the use of the Cash Collateral to ensure that the Debtor, through its servicer, Q Capital Strategies, is able to pay pending premiums and any related costs and servicing charges to Strategies in relation to the Policies. The Debtor wants to use the Cash Collateral to satisfy the premiums of approximately $1.06 million that are due to be paid on or about October 1, 2010, and to pay the October monthly servicing charges to Q Capital of $35,375 and other obligations relating to the preservation/ monitoring of the collateral. The Debtor will use the Cash Collateral pursuant to a weekly budget, a copy of which is available for free at: http://bankrupt.com/misc/QOC_I_budget.pdf According to Mr. Moses, Wells Fargo is adequately protected by, among other protections, an equity cushion of over $32,000,000, or nearly 30%. Boca Raton, Florida-based QOC I LLC owns previously issued life insurance policies purchased in the life settlement market. QOC I filed for Chapter 11 bankruptcy protection on October 1, 2010 (Bankr. S.D. Fla. Case No. 10-40153). Glenn D. Moses, Esq., and Heather L Harmon, Esq., at Genovese Joblove & Battista, P.A., assist the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $100 million to $500 million as of the Petition Date. QUALITY PROPERTIES: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Quality Properties, LLC P.O. Box 2415 Albertville, AL 35950 Bankruptcy Case No.: 10-42783 Chapter 11 Petition Date: October 1, 2010 Court: U.S. Bankruptcy Court Northern District of Alabama (Anniston) Judge: James J. Robinson Debtor's Counsel: Harry P. Long, Esq. P.O. Box 1468 Anniston, AL 36202 Tel: (256) 237-3266 E-mail: hlonglegal@aol.com Scheduled Assets: $6,255,000 Scheduled Debts: $6,932,388 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/alnb10-42783.pdf The petition was signed by Jeffery A. Beck, managing partner. RENEGADE HOLDINGS: Chinqua Penn Mansion Remains Open for Business ----------------------------------------------------------------- Mary Dolan, writing for Media General's GoDanRiver.com, reports that the Chinqua Penn Plantation remains open for business, after the site was seized September 28 by U.S. Marshals. As reported by the Troubled Company Reporter on September 30, 2010, Richard Craver at Winston-Sale Journal said federal agents seized Chiqua Penn Plantation's operations after a lawsuit was filed against owners Calvin Phelps and his wife Lisa Yamaoka Phelps, by Gene Tarr, the bankruptcy examiner for Renedage Holdings, et al. The examiner asked a federal judge to approve the creation of a trust for the plantation and its arts and artifacts, or transfer its ownership to the Renegade debtors. The examiner said the lawsuit aims to void and recover "fraudulent transfer of assets" from the tobacco companies that went to either Mr. Phelps, his wife or the LLCs. That transfer damaged the tobacco companies by at least $8.1 million, Mr. Craver said. GoDanRiver.com relates the 80-year-old mansion and its more than 20 acres of grounds continue to be open to visitors. The site continues to accept bookings for weddings and special events. Peter Tourtellot, with Anderson, Bauman, Tourtellot and Vos, is the bankruptcy trustee for Renegade Holdings, Renegade Tobacco and Alternative Brands. Mr. Phelps and his wife purchased Chinqua Penn in 2006 from N.C. State University. About Renegade Holdings Renegade Holdings and two affiliates -- Alternative Brands, Inc. and Renegade Tobacco Company -- filed for Chapter 11 protection on Jan. 28, 2009 (Bankr. M.D. N.C. Lead Case No. 09-50140C). ABI is a federally licensed manufacturer of tobacco products consisting primarily of cigarettes and cigars. RTC distributes the tobacco products produced by ABI through wholesalers and retailers in 19 states and for export. ABI also is a contract fabricator for private label brands of cigarettes and cigars which are produced for other licensed tobacco manufacturers. ABI and RTC are subsidiaries of RHI. The stock of RHI is owned indirectly by Calvin A. Phelps through his ownership of the stock of Compliant Tobacco, LLC which, in turn, owns all of the stock of RHI which in turn owns all of the stock of RTC and ABI. Until his resignation shortly before the June 26 hearing, Mr. Phelps was the chief executive officer of all three companies. All three of the Debtors' have their offices and production facilities in Mocksville, North Carolina. RIVIERA HOLDINGS: Court Approves Incentive Program -------------------------------------------------- The U.S. Bankruptcy Court granted Riviera Holdings' request to implement a milestone incentive program, BankruptcyData.com reports. Approximately 60 employees and some officers participate in the program and are eligible to receive quarterly and annual cash awards based on achievement of predetermined financial targets. About Riviera Holdings Riviera Holdings Corporation, through its wholly-owned subsidiary, Riviera Operating Corporation, owns and operates the Riviera Hotel & Casino located in Las Vegas, Nevada, which consists of a hotel comprised of five towers with 2,075 guest rooms, including 177 suites, and which has traditional Las Vegas-style gaming, entertainment and other amenities. In addition, Riviera Holdings, through its wholly-owned subsidiary, Riviera Black Hawk, Inc., owns and operates the Riviera Black Hawk Casino, a casino in Black Hawk, Colorado and has various non-gaming amenities, including parking, buffet-styled restaurant, delicatessen, a casino bar and a ballroom. Riviera Holdings together with the two affiliates filed for Chapter 11 on July 12 in Las Vegas, Nevada (Bankr. D. Nev. Case No. 10-22910). Riviera Holdings estimated assets and debts of $100 million to $500 million in its petition. Thomas H. Fell, Esq., at Gordon Silver, represents the Debtors in the Chapter 11 cases. XRoads Solutions Group, LLC, is the financial and restructuring advisor. Garden City Group Inc. is the claims and notice agent. ROBERT LEACH: Case Summary & 9 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Robert D. Leach 30226 Corte Cantinia Temecula, CA 92591 Bankruptcy Case No.: 10-42023 Chapter 11 Petition Date: October 1, 2010 Court: U.S. Bankruptcy Court Central District of California (Riverside) Judge: Ellen Carroll Debtor's Counsel: Robert B. Rosenstein, Esq. ROSENSTEIN & HITZEMAN 28600 Mercedes Street, Suite 100 Temecula, CA 92590 Tel: (951) 296-3888 Fax: (951) 296-3889 E-mail: robert@rosenhitz.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Debtor's nine largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-42023.pdf Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Eliminator Custom Boats, Inc. 10-35393 08/11/10 ROSS NETWORK: Organizational Meeting to Form Panel on Oct. 8 ------------------------------------------------------------ Tracy Hope Davis, United States Trustee for Region 2, will hold an organizational meeting on October 8, 2010, at 2:00 p.m. in the bankruptcy case of Ross Network, Inc., dba Print International. The meeting will be held at the United States Trustee Meeting Rooms, 80 Broad Street, 4th Floor, New York, NY 10004. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. Based in New York, Ross Network, Inc. -- http://www.printint.com- - doing business as Print International, offers digital imaging, cross-media publishing, and fulfillment services in the United States, Canada, Europe, and the Asia-Pacific. Its services include pre-press and media asset management, offset printing, bindery, finishing, distribution of various graphic communications products, planning, digital photography, scanning, color correction and retouching, creative retouching, page assembly, and photo lab. The Company's services also comprise repurposing of digital data to CMYK and RBG outputs, data management and file transmission, large format and digital large format printing for out-of-home, and direct-to-plate technology, as well as intranet, extranet, and e-commerce Web development. Its clients include corporate and advertising agency accounts in retail, direct mail, outdoor advertising, fashion, eyewear, accessories, jewelry, cosmetic, fragrance, liquor, automotive, high-tech, and financial industries. On July 21, 2010, an involuntary petition for liquidation under Chapter 7 was filed against Ross Network, Inc., in the U.S. Bankruptcy Court for the Southern District of New York. ROTECH HEALTHCARE: Moody's Upgrades Corp. Family Rating to 'Caa1' ----------------------------------------------------------------- Moody's Investors Service upgraded Rotech Healthcare, Inc.'s corporate family rating and probability of default rating to Caa1 from Caa2 following the successful execution of $230 million of senior secured notes due 2015. In addition, Moody's upgraded Rotech's senior subordinated notes rating to Caa2 from Caa3 and confirmed the B1 rating on the senior secured notes. These rating actions conclude the review for possible upgrade initiated on September 27, 2010. The rating outlook is now stable. Ratings Rationale The Caa1 corporate family rating primarily reflects Moody's concerns regarding refinancing risk, specifically, the November 2011 maturity of the majority of Rotech's senior subordinated notes ($287 million outstanding). Further, the company operates in an industry which has faced significant Medicare reimbursement cuts in the past and there is continued uncertainty around the reimbursement environment and the potential for further negative impact on oxygen and other home medical equipment providers. Notably, Rotech's operating performance has improved due both to cost cutting initiatives and increasing market share. Moreover, Moody's anticipates that Rotech will continue to de-lever modestly over time through EBITDA growth. Moody's believes the success of the senior secured notes offering supports the likelihood that Rotech will be able refinance the senior subordinated notes before they come due. However, a deterioration in the credit markets could force Rotech to consider a distressed exchange. What Could Change the Rating -- Up Upward rating pressure is likely should Rotech be able to beneficially address concerns regarding its debt maturity profile. Also influencing upward momentum would be market share gains and ongoing cost control such that EBITDA and free cash flow exhibit sustainable growth. What Could Change the Rating -- Down If Rotech faces further significant reimbursement cuts that are not likely to be offset by additional cost cutting measures or market share gains, there could be downward pressure on the ratings. Moody's believes continued negative developments in the industry would heighten refinancing risk. Over the next several months, if the company does not evidence any progress in refinancing the senior subordinated notes, there could be downward rating pressure. Ratings Upgraded: Rotech Healthcare, Inc.: -- Corporate Family Rating to Caa1 from Caa2; -- Probability of Default Rating to Caa1 from Caa2; -- $287 million senior subordinated notes due 2012 to Caa2 (LGD5, 77%) from Caa3 (LGD5, 79%); Rating Confirmed: -- $230 million senior secured first lien notes due 2015 at B1 (LGD2, 19%); The outlook is stable. Moody's last rating action for Rotech was on September 27, 2010, when Moody's placed the company's ratings under review for possible upgrade. Rotech, headquartered in Orlando, Florida, is one of the largest providers of home medical equipment and related products and services in the US, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. Rotech provides equipment and services in 48 states through approximately 450 operating centers located primarily in non-urban markets. For the twelve months ended June 30, 2010, Rotech reported revenue of approximately $493 million. SANITARY AND IMPROVEMENT: Chapter 9 Case Summary & Creditors List ----------------------------------------------------------------- Debtor: Sanitary and Improvement District #507 of Douglas County, Nebraska 11506 Nicholas Street, Suite 100 Omaha, NE 68154 Bankruptcy Case No.: 10-82794 Chapter 9 Petition Date: September 28, 2010 Court: U.S. Bankruptcy Court District of Nebraska (Omaha Office) Debtor's Counsel: William L. Biggs, Jr., Esq. GROSS & WELCH 2120 So. 72 Street 1500 Omaha Tower Omaha, NE 68124 Tel: (402) 392-1500 Fax: (402) 392-8101 E-mail: bbiggs@grosswelch.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Patrick G. Day, chairman. Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Lozier, Allan G./Dianne S. Lozier Construction Fund $1,400,880 TTEES Warrants Allan G. Lozier Rev. Tr 636 Pershing Drive Omaha, NE 68110 D.A. Davidson & Co. Construction Fund $604,590 1111 N. 102nd Court, Suite 300 Warrants Omaha, NE 68114 Saylan, Steve Construction Fund $371,224 Jacki Saylan JT TEN Warrants 9738 Ascot Drive Omaha, NE 68114-3846 Sommerhalder, Joy A. TTEE Construction Fund $313,355 Joy A. Sommerhalder Trust Warrants 8523 Thackery Street, Apt. #9215 Dallas, TX 75225 Traudt, Mary L. TTEE Construction Fund $288,019 Mary L. Traudt Rev. Trust Warrants 1390 Caxambas Court Marco Island, FL 3415-6602 Reed, Robert A. Successor TTEE Construction Fund $153,610 Warrants Progressive Municipal Bond Fund Construction Fund $128,008 Warrants Censtate Financial Services Construction Fund $128,008 Warrants Reed, Betsy Jo Successor TTEE Construction Fund $115,207 Warrants Sheets, Donald J. Construction Fund $76,805 Warrants McVey, William F. Construction Fund $70,405 Warrants Peterson, Richard B. TTEE Construction Fund $64,004 Warrants Greenber Kreisberg, Elise Ann B. Construction Fund $64,004 Greenberg Revoc Trust Warrants Rich, Louis A. TTEE Construction Fund $64,004 Warrants Cizek, Ronald J. TTEE Construction Fund $64,004 Warrants Rich, Louis A. TTEE TTEE Construction Fund $61,232 Warrants Devereaux, Michael D. TOD Account Construction Fund $45,183 Warrants Saylan, Kevin A./marcy B. Saylan Construction Fund $44,803 Warrants Kreisberg, E.L. Freeman Construction Fund $43,150 Greenberg Mrtl Gst Non Exmp Trust Warrants Chomac LLC Construction Fund $38,402 Warrants SAVANNAH OUTLET: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Savannah Outlet Shoppes, LLC 655 Adirondack Lane Claremont, CA 91711 Bankruptcy Case No.: 10-42135 Chapter 11 Petition Date: October 4, 2010 Court: U.S. Bankruptcy Court Southern District of Georgia (Savannah) Debtor's Counsel: Karen F. White, Esq. COHEN POLLOCK MERLIN & SMALL PC 3350 Riverwood Parkway, Suite 1600 Atlanta, GA 30339 Tel: (770) 857-4812 Fax: (770) 857-4813 E-mail: kfwhite@cpmas.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Giuseppe Fusco, managing member. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Chatham Co. Tax Commissioner Property Tax $75,165 133 Montgomery Street, 1st Floor P.O. Box 9827 Savannah, GA 31412 Morris & Templeton Trade Debt $31,642 Insurance Agency, Inc. P.O. Box 15088 Savannah, GA 31416-1788 Robert Markowitz Adv. Trade Debt $14,975 109 E. Montgomery Crossroads Savannah, GA 31406-4732 Lamar Companies Trade Debt $5,810 DSI Security Services Trade Debt $2,626 Georgia Power Utility Service - $2,379 Multiple Accts City of Savannah Rev. Dept. Utility Service $1,833 Mike's Lawn & Landscaping Trade Debt $1,750 Lewis Color Trade Debt $1,260 McCallar Law Firm Attorney Fees $1,238 Atlantic Waste Services Trade Debt $1,213 Marlin Outdoor Advertising Trade Debt $950 Morrison Chemical Co., Inc. Trade Debt $454 AT&T Trade Debt $272 Metal Crafts, Inc. Trade Debt $260 Trugreen Trade Debt $235 Ziplocal Trade Debt $223 John Hallman Trade Debt $220 Catham Co. Tax Commissioner Personal Property $162 Tax Official Guides of Savannah Trade Debt $100 SEA ISLAND: Starwood Presents $197.5 Million Competing Offer ------------------------------------------------------------ The Associated Press reports that Starwood Capital Group made a formal offer to Sea Island Co. and its creditors Monday, the deadline for potential buyers to give notice. The AP relates Starwood has pledged to buy Sea Island's resorts, golf courses and private clubs for more than $197.5 million -- the sale price the Debtor negotiated with a partnership of two equity firms, Oaktree Capital Management of Los Angeles and Avenue Capital Group of New York. The auction is scheduled for October 11 at the Atlanta law office of King & Spalding. The AP notes Starwood's offer isn't surprising. Starwood had made a previous bid for Sea Island before its bankruptcy filing, and last month it tried to enter a late bid of about $199 million for the company that was rejected by a judge. Sea Island has filed a bankruptcy-exit plan premised on the asset sale. Hearing to confirm the plan is slated for November 4. Creditors have until October 29 to vote on the Plan. 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. A full-text copy of the amended and restated Disclosure Statement is available for free at: http://bankrupt.com/misc/SEAISLAND_AmendedDS.pdf 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. SEATTLE LANGUAGE: Files for Ch. 11; To Continue Classes This Fall ----------------------------------------------------------------- Seattle Language Academy filed a Chapter 11 petition (Bankr. W.D. Wash. Case No. 10-21915) in Seattle on October 5, 2010. The Seattle Language Academy is a nonprofit school and one of the city's leading providers of foreign-language instruction. The Debtor estimated assets of up to $50,000 and debts of $100,000 to $500,000 in its Chapter 11 petition. Carly Flandro, writing for The Seattle Times, reports that Wayne Widdis, the corporation's general manager, said the filing will give the school more space and time to try to survive. According to the report, Mr. Widdis estimates two to three months. The academy will continue its classes this fall, but after that, its future is uncertain. The school raised more than $100,000 last summer. SENTINEL MANAGEMENT: Ex-Auditor Fined Over Securities Scandal ------------------------------------------------------------- Bankruptcy Law360 reports that the U.S. Securities and Exchange Commission has fined accounting firm Altschuler Melvoin & Glasser LLP, finding it did not properly audit investment company Sentinel Management Group Inc. Without admitting guilt, the accounting firm and one of its former partners G. Victor Johnson II agreed to pay a $24,176 fine and abide by a cease-and-desist order, Law360 says. Based in Northbrook, Illinois, Sentinel Management Group Inc. -- http://www.sentinelmgi.com/-- was a full service firm offering a variety of security solutions. The Company filed a voluntary Chapter 11 petition on August 17, 2007 (Bankr. N.D. Ill. Case No. 07-14987). Ronald Barliant, Esq., Randall Klein, Esq., and Kathryn A. Pamenter, Esq., at Goldberg, Kohn, Bell & Black Rosenbloom & Moritz, Ltd., represent the Debtor. Lawyers at Quinn, Emanuel Urquhart Oliver & Hedges, LLP, represents the Official Committee of Unsecured Creditors. When the Debtor sought bankruptcy protection, it estimated assets and debts of more than $100 million. On August 28, 2007, the Court approved Frederick Grede as the Debtor's Chapter 11 Trustee. Marc I. Fenton, Esq., at DLA Piper US LLP, and Vincent E. Lazar, Esq, at Jenner & Block LLP, represent the Chapter 11 Trustee. The Court confirmed a plan of liquidation for Sentinel on December 15, 2008, and Mr. Grede is managing the liquidation. SHANE CO: Can Send Reorganization Plan to Creditors for Vote ------------------------------------------------------------ Don Jeffrey at Bloomberg News reports that Shane Co. is sending its bankruptcy reorganization plan to creditors for a vote. U.S. Bankruptcy Judge Howard Tallman, after a two-day hearing last month, approved Shane's disclosure statement. Shane Co. scheduled a Nov. 10 confirmation hearing for a plan that proposes to pay secured and unsecured creditors in full, over time. According to Bill Rochelle, the bankruptcy columnist for Bloomberg News, relates that Chief Executive Officer Thomas M. Shane is deferring payment on more than $30 million in loans he made to the company he controls. By providing full payment to creditors, Mr. Shane and family trusts will retain ownership. Mr. Shane will defer principal payments on a $10.5 million secured loan he advanced to finance the Chapter 11 case. He will likewise defer payments on $20 million in pre-bankruptcy secured loans until unsecured creditors have been paid. Some of the deferred payments to unsecured creditors will be secured by a second lien on inventory. Mr. Shane will loan the company half of any tax refunds he receives as a result of the company's net operating losses. About Shane Co. Headquartered in Centennial, Colorado, Shane Co. -- http://www.shaneco.com/-- operates 20 jewelry stores. The Company filed for Chapter 11 protection on January 12, 2009 (Bankr. D. Col. Case No. 09-10367). Gregg M. Galardi, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, serves as the Debtor's counsel, and Caroline C. Fuller, Esq., at Fairfield and Woods, P.C., serves as the Debtor's local counsel. Cohen Tauber Spievack & Wagner P.C. represents the Official Committee of Unsecured Creditors. The Debtor proposed Kurtzman Carson Consultants LLC as its claims agent. The Company filed formal lists showing assets for $130 million and debt totaling $103 million, including $31.4 million owing on secured claims. ST. GEORGE: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: St. George Hotel P.O. Box 9 Volcano, CA 95689 Bankruptcy Case No.: 10-46365 Chapter 11 Petition Date: October 1, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Thomas Holman Debtor's Counsel: David Foyil, Esq. 18 Bryson Drive Sutter Creek, CA 95685 Tel: (209) 223-5363 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 Gary Little, general partner. STUYVESANT TOWN: Foreclosure Auction Moved; Lenders Work on Deal ---------------------------------------------------------------- Theresa Agovino, writing for Crain's New York Business, reports that the foreclosure auction of Stuyvesant Town/Peter Cooper Village -- slated for Monday -- has been postponed until next week. Sources told Crain's the senior lenders are working on a deal to purchase a mezzanine loan held by a partnership led by hedge fund billionaire William Ackman. Ms. Agovino says it was unclear why CWCapital Asset Management -- the special servicer that represents the lenders who hold the $3 billion senior mortgage -- would buy the $300 million loan held by the Ackman-led partnership, since it isn't necessary for the foreclosure. However, some speculated that owning the loan could lessen the transfer or mortgage taxes that will eventually be owed when CW sells the property. Those taxes could total about $200 million. Last week, Ms. Agovino reported that a panel of New York Appeals court judges denied a bid by the Ackman-led joint venture to block Monday's foreclosure sale. Ms. Agovino notes Mr. Ackman's Pershing Square Capital Management and Winthrop Realty Services over the summer bought the $300 million junior loan on Manhattan's largest housing complex for $45 million and had hoped to use their position to foreclose on the property. To date, their legal steps have been unsuccessful, but there is still one case outstanding. According to the Crain's report, sources said any deal between the partnership and CW Capital will have to be very carefully structured because they don't want to raise city and state regulator's suspicions that it was only done to avoid paying taxes. Crain's relates Mr. Ackman didn't return a call and his spokesman declined comment. Crain's also says a spokesman for CW declined comment on the reasons for the postponement of the foreclosure. According to Crain's, the company said in a statement the foreclosure would be held on Oct. 13 and that after taking control it would appoint Rose Associates as the property's manager. Crain's notes Rose has acting as a consultant since earlier this year, when the Tishman Speyer-led partnership that bought the complex for $5.4 billion in 2006 defaulted on a loan. Until CW takes over, Tishman Speyer will continue managing the complex. Stuyvesant Town-Peter Cooper Village comprises 56 multi-story buildings, situated on 80 acres, and includes a total of 11,227 apartments. The loan sponsors, Tishman Speyer Properties, LP and BlackRock Realty, acquired the property with the intent of converting rent-stabilized units to market rents as tenants vacated the property; however, the conversion of units has since been determined to be illegal by the New York State Court of Appeals. In addition to the $3 billion securitized balance, there is an additional $1.5 billion of mezzanine debt held outside the trust. As reported by the TCR on January 26, 2010, a group led by Tishman Speyer Properties has decided to give up the Peter Cooper Village and Stuyvesant Town apartment complex in Manhattan to its creditors. The decision comes after the venture between Tishman and BlackRock defaulted on the $4.4 billion debt used to help finance the acquisition of those properties. T. TRAN: Case Summary & 8 Largest Unsecured Creditors ----------------------------------------------------- Debtor: T. Tran, Inc. dba Eden Mini Mall 3864 Barcroft Lane Alexandria, VA 22312 Bankruptcy Case No.: 10-18194 Chapter 11 Petition Date: September 28, 2010 Court: United States Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Stephen S. Mitchell Debtor's Counsel: Mark Christian Orndorff, Esq. M. CHRISTIAN ORNDORFF, P.C. 6059-C Arlington Blvd. Falls Church, VA 22044 Tel: (703) 536-3800 Fax: (703) 536-3802 E-mail: mcolaw@vacoxmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/vaeb10-18194.pdf The petition was signed by Thuan Tran, president. TERRY GALLIMORE: Voluntary Chapter 11 Case Summary -------------------------------------------------- Joint Debtors: Terry Gallimore Rochelle C. Gallimore aka Rochelle C Weber 24233 Nottingham Court Valencia, CA 91355 Bankruptcy Case No.: 10-52373 Chapter 11 Petition Date: October 2, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Barry Russell Debtors' Counsel: Louis J. Esbin, Esq. 25129 The Old Road, Suite 114 Stevenson Ranch, CA 91318-2244 Tel: (661) 254-5050 Fax: (661) 254-5252 E-mail: Esbinlaw@sbcglobal.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Joint Debtors did not file a list of creditors together with its petition. TIMOTHY MARTIN: Case Summary & 13 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Timothy Reeves Martin 9226 Jollyville Rd. #151 Austin, TX 78759 Bankruptcy Case No.: 10-12736 Chapter 11 Petition Date: September 29, 2010 Court: United States Bankruptcy Court Western District of Texas (Austin) Judge: H. Christopher Mott Debtor's Counsel: Michael V. Baumer, Esq. LAW OFFICE OF MICHAEL BAUMER 7600 Burnet Road, Suite 530 Austin, TX 78757 Tel: (512) 476-8707 E-mail: baumerlaw@baumerlaw.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Debtor's 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txwb10-12736.pdf TRUMP ENTERTAINMENT: Court Approves Settlement With Icahn --------------------------------------------------------- As widely reported, U.S. Bankruptcy Court for the District of New Jersey approved a global settlement that ends the disputes between Carl Icahn and Donald Trump over the reorganization plan for Trump Entertainment Resorts Inc. Donald Wittkowski, writing for the Press of Atlantic City, reports that Carl Icahn has withdrawn his appeal that had challenged a U.S. Bankruptcy Court ruling in April giving control of the company to a group of corporate bondholders aligned with Donald Trump. Trump Entertainment, in return, has agreed to drop all of its litigation against Mr. Icahn. The report notes Mr. Icahn sought to acquire Trump Entertainment out of bankruptcy by converting the $486 million mortgage he holds on the Trump casinos into ownership of the company. A bankruptcy judge sided with the Trump-backed bondholders in their $225 million buyout. Bondholders have agreed to give Trump a minority stake in the company in exchange for the continued use of his name on the casinos. 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. TRUMP ENTERTAINMENT: Oct. 19 Hearing Set for Bondholders' Fees -------------------------------------------------------------- Donald Wittkowski, writing for the Press of Atlantic City, reports Bankruptcy Judge Judith H. Wizmur has scheduled an Oct. 19 hearing in Camden, New Jersey, to consider the U.S. Trustee's request to reject $19.5 million in legal and professional fees sought by bondholders of Trump Entertainment Resorts Inc. The bondholders also want Trump Entertainment to reimburse them for $2.2 million in fees paid to their financial adviser. According to the report, the U.S. trustee says if the bondholders are successful in having Trump Entertainment pay their fees, the company will also be on the hook for $15 million in legal and professional expenses incurred by Carl Icahn and his financial partner. 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. TRUVO USA: Creditors Committee Lodges Support to Plan ----------------------------------------------------- BankruptcyData.com reports that Truvo USA has reached an agreement in principle with its official committee of unsecured creditors and the coordinating committee of senior lenders concerning certain modifications to the Debtors' proposed Chapter 11 Plan of Reorganization. Bdata says the Company announced its intentions to file with the Court an amended plan and supplement to the disclosure statement reflecting the terms of this agreement on or before October 5, 2010. The Creditors Committee agrees to actively support and not object to the amended plan. About Truvo USA Wilmington, Delaware-based Truvo USA LLC is a non-operating subsidiary of Belgium-based Truvo Luxembourg S.a.r.l, which publishes print and online directories through its operating subsidiaries. Truvo USA and other non-operating affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-13513) on July 1, 2010. The Company estimated $500 million to $1 billion in assets and more than $1 billion in debts in its Chapter 11 petition. Sean A. O'Neal, Esq., and Thomas J. Moloney, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, and Vincent Edward Lazar, Esq., at Jenner & Block LLP, assist the Company in its restructuring effort. Jenner & Block LLP and Simpson Thacher & Bartlett LLP are the Company's special counsel. Houlihan Lokey Howard & Zukin (Europe), Limited, is the Company's restructuring and financial advisor. Truvo Luxembourg and its operating subsidiaries have not sought protection under Chapter 11 protection or any other insolvency regime. TRUVO USA: Bondholders to Get More Under New Plan ------------------------------------------------- Joseph Checkler, writing for Dow Jones' Daily Bankruptcy Review, reports that Truvo Group has struck a deal with its unsecured creditors that would give them a greater recovery when the Company exits from Chapter 11 protection. According to DBR, the revised proposal: -- would increase to EUR20 million ($27.4 million) from EUR15 million the amount to be divvied up among holders of Truvo's high-yield bonds; and -- entitles the high-yield bondholders to: * warrants good for a higher percentage of the reorganized Truvo's shares than they would have previously received; and * cash good for 7.5% of Truvo's U.S. tax proceeds, if that money is available. DBR notes the bondholders, owed $700 million, had been balking at a restructuring plan that would put Truvo in the hands of its senior lenders but would have provided the bondholders with a recovery of just pennies on the dollar. DBR relates that at a hearing early last month, a lawyer for unsecured lawyers lashed out at the "runaway train" timetable for the case and said Truvo's Chapter 11 was being run simply to benefit senior lenders who are getting much more substantial recoveries. DBR relates that holders of the high-yield notes will get the better recovery only if they vote for Truvo's new bankruptcy-exit plan. DBR relates that Truvo's committee of unsecured creditors, which is representing the bondholders, has agreed to support the plan and withdraw all litigation regarding it. Judge Arthur Gonzalez was slated to decide at a Wednesday hearing whether to allow Truvo to resolicit creditor votes on the amended plan. As reported in the Troubled Company Reporter on Sept. 8, 2010, the unsecured creditors' committee -- comprised of two holders of second-lien debt and their indenture trustee -- doesn't support the Debtors' Plan. The committee members are AllianceBernstein LP, Normandy Hill Capital LP, and Bank of New York Mellon-London Branch as indenture trustee. Under the prior Plan, the senior lenders under are to receive the new equity plus EUR600 million new debt. In return for the EUR595 million on two issues of second-priority notes, the holders are to be given EUR15 million and warrants for 14% of the stock at a EUR150 million price. If the second lien lenders vote against the plan, they are to receive nothing. For the EUR174 million on pay-in-kind third-priority notes, holders will receive warrants for 1% of the new equity. If the class votes against the plan, they are to receive nothing. The new debt for the senior lenders is to consist of EUR350 million in first-lien debt, EUR100 million in second-lien debt, and EUR150 million in pay-in-kind debt. About Truvo USA Wilmington, Delaware-based Truvo USA LLC is a non-operating subsidiary of Belgium-based Truvo Luxembourg S.a.r.l, which publishes print and online directories through its operating subsidiaries. Truvo USA and other non-operating affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-13513) on July 1, 2010. The Company estimated $500 million to $1 billion in assets and more than $1 billion in debts in its Chapter 11 petition. Sean A. O'Neal, Esq., and Thomas J. Moloney, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, and Vincent Edward Lazar, Esq., at Jenner & Block LLP, assist the Company in its restructuring effort. Jenner & Block LLP and Simpson Thacher & Bartlett LLP are the Company's special counsel. Houlihan Lokey Howard & Zukin (Europe), Limited, is the Company's restructuring and financial advisor. The Unsecured Creditors' Committee is represented by Gregory M. Petrick, Esq., Ingrid Bagby, Esq., and Sharon J. Richardson, Esq., at Cadwalader Wickersham & Taft LLP, in New York. Truvo Luxembourg and its operating subsidiaries have not sought protection under Chapter 11 protection or any other insolvency regime. TURKPOWER CORPORATION: MaloneBaley LLP Raises Going Concern Doubt ----------------------------------------------------------------- TurkPower Corporation filed on October 4, 2010, its annual report on Form 10-K/A for the fiscal year ended May 31, 2010. MaloneBailey LLP, in Houston, Tex., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred losses from operations and has a working capital deficit as of May 31, 2010. The Company reported a net loss of $511,149 on $215,050 of revenues for fiscal 2010, compared with a net loss of $12,130 on $0 revenue for fiscal 2009. The increase in revenue was due to the Company commencing its business operations in Turkey in fiscal 2010. A full-text copy of the Company's Form 10-K/A is available for free at http://researcharchives.com/t/s?6c30 About TurkPower Corporation New York-based TurkPower Corporation was incorporated in the State of Delaware on November 4, 2004, as Global Ink Supply Company and was organized for the purpose of forming a vehicle to pursue a business combination. On May 11, 2010, an amendment was filed with the Secretary of State of Delaware to change the name of the Company to TurkPower Corporation. At this time, the Company is engaged in the business of energy consulting and development, as well as mining exploration and operation in Turkey. UNITED CONTINENTAL: I. Walter Acquires UAL Shares ------------------------------------------------- In a Form 4 filing with the Securities and Exchange Commission, Isaacson Walter, a director at United Continental Holdings, Inc., disclosed that he acquired 823.13 derived share units of UAL common stock on September 30, 2010. Mr. Walter elected to defer $19,500 of retainer and meeting fees for the third quarter 2010 in exchange for share units. The number of share units was determined by dividing $19,500 by $23.69, the average of the high and low sale prices of a share of the Company's common stock on September 30, 2010. Delivery of a cash payment in settlement of the share units will be made in January of the year following the calendar year in which Mr. Walter ceases to be a director of the Company. Mr. Walter beneficially owned 19,307.6 derived shares of UAL common stock following the transaction. About United Continental United Continental Holdings, Inc. (NYSE: UAL) is the holding company for both United Airlines and Continental Airlines. Together with United Express, Continental Express and Continental Connection, these airlines operate a total of approximately 5,800 flights a day to 371 airports throughout the Americas, Europe and Asia from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, Tokyo and Washington, D.C. United and Continental are members of Star Alliance, which offers more than 21,200 daily flights to 1,172 airports in 181 countries worldwide through its 28 member airlines. United's and Continental's more than 80,000 employees reside in every U.S. state and in many countries around the world.For more information about United Continental Holdings, Inc., go to UnitedContinentalHoldings.com. For more information about the airlines, see http://www.united.com/and http://www.continental.com/, and follow each company on Twitter and Facebook. United Continental carries 'B2' corporate family and probability of default ratings, with stable outlook, from Moody's, 'B' issuer credit ratings, with stable outlook, from Standard & Poor's, and 'B-' issuer default rating from Fitch. UNITED CONTINENTAL: UAL Releases Corp. Responsibility Report ------------------------------------------------------------ United Airlines released its 2009-2010 Corporate Responsibility Report, Every Action Counts(R): Making Lasting Connections, highlighting the company's actions and commitments to promoting environmental solutions, fueling social spirit, a sustainable business agenda and measuring progress. United is making tangible progress to improve environmental impact by expanding its onboard recycling programs on U.S. routes, promoting alternative fuels and advocating for regulatory change. Customer satisfaction levels are strongly improving and the company continues to support important programs that meet the critical health care, educational and economic needs of the communities United serves. "In towns and cities across America and around the world, United connects families and friends, colleagues and companies. We help drive tourism, generate business opportunities, and contribute to economic growth and exports. Most importantly, the actions we take matter," said Glenn Tilton, United Airlines chairman and CEO. "More is expected of us and we rise to that expectation with commitment and a true sense of responsibility," continued Tilton. Among the highlights included in the report are: Path to Environmental Solutions United develops and implements environmental programs in its operations and collaborates with the industry to promote solutions that have a positive impact on the environment - in the air, on the ground and in our communities. - United flew the first flight by a U.S. commercial airline using natural gas synthetic jet fuel - United flew the first trans-Atlantic "Green Corridor" roundtrip flight on World Environment Day in 2010, reducing CO2 emissions by 20,000 pounds - United increased the number of its electric and alternative fuel vehicles in its ground service equipment fleet by 15 percent in 2009 Fueling Social Spirit United connects with and supports the needs of its communities, using its resources -- aircraft, people, and global network -- to make a difference. In 2009: - United flew seven relief missions for Haiti disaster relief, and transported more than 150,000 pounds of aid and relief supplies to Haiti - United increased its charitable contributions, providing more than $8.2 million in travel, monetary, and in-kind support to its community partner organizations - More than 196 million miles were donated to United's nonprofit partners through its Mileage Plus(R) Charity Miles Program Sustainable Business Agenda United is working to create a financially stable company by improving its airline and focusing on the future. Our people are our biggest asset and empowering them is fundamental to making us a leading airline. - More than 892,231 training and development courses were completed by employees through the United Learning Network in 2009 - United's customer satisfaction scores rose nearly 20 percent in 2009, while its Employee Courtesy Index jumped 30 percent in two years - Frontline employees earned more than $34 million in performance bonuses tied directly to operational improvements To access the Corporate Responsibility Report-Every Action Counts (R): Making Lasting Connections online, please visit united.com/responsibility or contact us directly at crinfo@united.com About United Continental United Continental Holdings, Inc. (NYSE: UAL) is the holding company for both United Airlines and Continental Airlines. Together with United Express, Continental Express and Continental Connection, these airlines operate a total of approximately 5,800 flights a day to 371 airports throughout the Americas, Europe and Asia from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, Tokyo and Washington, D.C. United and Continental are members of Star Alliance, which offers more than 21,200 daily flights to 1,172 airports in 181 countries worldwide through its 28 member airlines. United's and Continental's more than 80,000 employees reside in every U.S. state and in many countries around the world.For more information about United Continental Holdings, Inc., go to UnitedContinentalHoldings.com. For more information about the airlines, see http://www.united.com/and http://www.continental.com/, and follow each company on Twitter and Facebook. United Continental carries 'B2' corporate family and probability of default ratings, with stable outlook, from Moody's, 'B' issuer credit ratings, with stable outlook, from Standard & Poor's, and 'B-' issuer default rating from Fitch. UNITED CONTINENTAL: Files Prospectus Supplements with SEC --------------------------------------------------------- United Continental Holdings, Inc. filed two prospectus supplements with the Securities and Exchange Commission with respect to the Prospectuses dated December 1, 2008. One supplement was with respect to an offering by United Continental, formerly UAL Corporation, of up to 684,072 shares of its common stock, par value $0.01 per share, that are issuable to certain former employees of the company's wholly owned subsidiary, Continental Airlines, Inc., upon the exercise of options granted pursuant to the terms of (a) the Continental Airlines, Inc. 1997 Stock Incentive Plan, (b) the Continental Airlines, Inc. 1998 Stock Incentive Plan, (c) Continental Airlines, Inc. Incentive Plan 2000, (d) the Continental Airlines, Inc. 2005 Broad Based Employee Stock Option Plan and (e) the Continental Airlines, Inc. 2005 Pilot Supplemental Option Plan. A full-text copy of the prospectus supplement may be accessed for free at: http://sec.gov/Archives/edgar/data/100517/000119312510221661/d424b 5.htm The other supplement was with respect to an offering by United Continental of up to 25,671,138 shares of company common stock, par value $0.01 per share, that it may issue from time to time upon the conversion of existing convertible securities of its wholly owned subsidiary, Continental Airlines, Inc. A full-text copy of the prospectus supplement may be accessed for free at: http://sec.gov/Archives/edgar/data/100517/000119312510221669/d424b 5.htm On October 1, 2010, Continental became UAL's wholly owned subsidiary as a result of a merger of its wholly owned subsidiary, JT Merger Sub Inc., with and into Continental. Upon effectiveness of the merger, UAL's name was changed to "United Continental Holdings, Inc." and each outstanding share of Continental Class B common stock, par value $0.01 per share, was converted into the right to receive 1.05 shares of UAL's Common Stock. At the effective time of the merger, the Continental Benefit Plans were assumed by UAL. All options outstanding under the Continental Benefit Plans at the effective time of the merger, including outstanding options held by former Continental employees, that were not otherwise settled upon the merger were assumed by UAL and converted into options referenced by UAL's Common Stock subject to the same terms and conditions applicable to the corresponding Continental option, except that the number of shares of Common Stock subject to each converted option is equal to the product, rounded down to the nearest whole number of shares of Common Stock, of (i) the number of shares of Continental Common Stock subject to the corresponding Continental stock option and (ii) 1.05. The exercise price for each converted option is equal to the applicable per share exercise price for the shares of Continental Common Stock underlying the option, divided by 1.05. The company will receive the exercise price of stock options granted pursuant to Continental Benefit Plans and held by former Continental employees if and when the options are exercised. On September 30, 2010, the last reported sale price of the Common Stock on The NASDAQ Global Select Market under the symbol "UAUA" was $23.66. Beginning on October 1, 2010, the Common Stock will be listed on The New York Stock Exchange under the symbol "UAL." As of October 1, 2010, Continental has outstanding $174,950,000 aggregate principal amount of 5% Convertible Notes due 2023, $247,732,000 aggregate principal amount of 6% Convertible Junior Subordinated Debentures due 2030, and $230,000,000 aggregate principal amount of 4.5% Convertible Notes due 2015. Pursuant to the terms of the indentures governing the Continental Convertible Securities, UAL and Continental have entered into supplemental indentures which provide that the Continental Convertible Securities will be convertible, upon the terms and conditions specified in the applicable indenture, into shares of Common Stock. The 5% Convertible Notes will initially be convertible into Common Stock at a conversion price of approximately $19.0476 per share, the 6% Convertible Debentures will initially be convertible at a conversion price of approximately $57.1429 per share, and the 4.5% Convertible Notes will initially be convertible into shares of Common Stock at a conversion rate of approximately 52.8302 shares of Common Stock per $1,000 principal amount (subject in each case to adjustments in the future and payments in lieu of fractional shares in accordance with the terms of the applicable indenture). Other than with respect to the conversion rights, the Continental Convertible Securities will remain obligations solely of Continental. United Continental will not receive any proceeds from the offering of Common Stock under the prospectus supplement. About United Continental United Continental Holdings, Inc. (NYSE: UAL) is the holding company for both United Airlines and Continental Airlines. Together with United Express, Continental Express and Continental Connection, these airlines operate a total of approximately 5,800 flights a day to 371 airports throughout the Americas, Europe and Asia from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, Tokyo and Washington, D.C. United and Continental are members of Star Alliance, which offers more than 21,200 daily flights to 1,172 airports in 181 countries worldwide through its 28 member airlines. United's and Continental's more than 80,000 employees reside in every U.S. state and in many countries around the world.For more information about United Continental Holdings, Inc., go to UnitedContinentalHoldings.com. For more information about the airlines, see http://www.united.com/and http://www.continental.com/, and follow each company on Twitter and Facebook. United Continental carries 'B2' corporate family and probability of default ratings, with stable outlook, from Moody's, 'B' issuer credit ratings, with stable outlook, from Standard & Poor's, and 'B-' issuer default rating from Fitch. UNIVISION COMMUNICATIONS: S&P Puts 'B-' Rating on Positive Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B-' corporate credit rating for New York City-based Univision Communications Inc., as well as all related issue-level ratings, on CreditWatch with positive implications. The CreditWatch placement follows the announcement that Grupo Televisa S.A.B. will invest $1.2 billion in Univision and contribute its 50% interest in TuTV in exchange for a 5% equity stake in Univision and debentures convertible into an additional 30% equity stake in the future. Additionally, the programming license agreement expiration date will be extended to 2020 from 2017, with the potential to be extended to 2025 if certain conditions are met. Under the terms of the amended PLA, Univision will gain exclusive U.S. Spanish-language digital rights to Televisa audiovisual programming. In exchange for the extension and expanded content rights, royalty payments to Televisa will increase to 11.91% as a percentage of revenue, from 9.36%. In December 2017, the royalty payment will increase to 16.22% of revenue. December 2017 is the current expiration of Univision's programming agreement with Corporacion Venezolana de Television C.A., which S&P does not view as strategically important to the company. "In S&P's opinion, the announcement alleviates risks surrounding the company's advantageous contract with Televisa, which S&P believes supports its strong audience ratings, revenue, and high EBITDA margins," noted Standard & Poor's credit analyst Heather Goodchild. Additionally, S&P views investment from a key strategic partner as providing increased liquidity and flexibility to meet its maturing obligations. Despite the nominal increase in royalty payments, S&P expects this could be more than offset by the potential digital revenues that could be generated as a result of the agreement. Securing long-term content from Televisa could also reduce Univision's need to invest in in-house programming capabilities, which S&P regards as having uncertain returns. VERASUN ENERGY: Aurora Coop Won't Repay for Sold Corn ----------------------------------------------------- The Associated Press reports that the Aurora Cooperative, a central Nebraska grain elevator cooperative, won't have to repay for corn it sold to VeraSun Energy Corp. According to the AP, the Aurora Cooperative said Tuesday it successfully argued against repaying anything to VeraSun. Last week, lawyers representing the VeraSun bankruptcy trustee said they would not pursue payments from individual farmers. About VeraSun Energy Headquartered in Sioux Falls, South Dakota, VeraSun Energy Corp. -- http://www.verasun.com/or http://www.VE85.com/-- produces and markets ethanol and distillers grains. Founded in 2001, the company has a fleet of 16 production facilities in eight states, with 14 in operation. The Company and certain affiliates filed for Chapter 11 protection on October 31, 2008 (Bankr. D. Del. Case No. 08-12606). Mark S. Chehi, Esq., at Skadden Arps Slate Meagher & Flom LLP represents the Debtors in their restructuring efforts. AlixPartners LLP serves as their restructuring advisor. Rothschild Inc. is their investment banker and Sitrick & Company is their communication agent. The Debtors' claims noticing and balloting agent is Kurtzman Carson Consultants LLC. The Debtors' total assets as of June 30, 2008, was $3,452,985,000 and their total debts as of June 30, 2008, was $1,913,214,000. VeraSun closed on April 1, 2009, the sale of substantially all of its assets to Valero Renewable Fuels, a subsidiary of Valero Energy Corporation, North America's largest petroleum refiner and marketer. Valero paid $350 million for the ethanol production facilities in Aurora, Fort Dodge, Charles City, Hartley and Welcome, in addition to the Reynolds site. Valero also successfully bid $72 million for the Albert City facility and $55 million for the Albion facility. VeraSun also completed on April 9 the sale to AgStar Financial Services PCA of substantially all of the assets relating to the company's production facilities in Dyersville, Iowa; Hankinson, North Dakota; Janesville, Minnesota; Central City and Ord, Nebraska; and Woodbury, Michigan. AgStar released the USBE Subsidiaries from their obligations under $319 million of existing indebtedness and assumed certain liabilities relating to the AgStar Facilities. Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware confirmed on October 23, 2009, the Chapter 11 Plan of Liquidation filed by VeraSun Energy Corporation and its debtor affiliates. VICTOR HERNANDEZ: Voluntary Chapter 11 Case Summary --------------------------------------------------- Joint Debtors: Victor P. Hernandez Lerma G. Hernandez 2345 Jeffrey Road Camarillo, CA 93012 Bankruptcy Case No.: 10-15134 Chapter 11 Petition Date: October 4, 2010 Court: U.S. Bankruptcy Court Central District of California (Santa Barbara) Debtors' Counsel: James Studer, Esq. 1420 Los Angeles Avenue, Suite 203 Simi Valley, CA 93065 Tel: (805) 582-9191 Fax: (805) 830-0446 E-mail: jamesstuderesq@aol.com Scheduled Assets: $2,758,850 Scheduled Debts: $0 The list of unsecured creditors filed together with its petition does not contain any entry. VIEW ACRE: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: View Acre Meadows, LLC 516 S.SE. Morrison, Suite 1000 Portland, OR 97214 Bankruptcy Case No.: 10-39296 Chapter 11 Petition Date: September 29, 2010 Court: United States Bankruptcy Court District of Oregon Judge: Randall L. Dunn Debtor's Counsel: David B. Shannon, Esq. TODD AND SHANNON, LLP 516 SE Morrison #1000 Portland, OR 97214 Tel: (503) 232-2600 E-mail: david.tslaw@gmail.com Scheduled Assets: $3,112,000 Scheduled Debts: $2,905,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Richard W. Todd, managing member. WASHINGTON MUTUAL: Files Amended Plan of Reorganization ------------------------------------------------------- Washington Mutual, Inc. has filed with the United States Bankruptcy Court for the District of Delaware an amended Plan of Reorganization and Disclosure Statement. The Plan and Disclosure Statement are premised upon consummating an amended and restated global settlement agreement among WMI, the Federal Deposit Insurance Corporation and JPMorgan Chase Bank, N.A. The terms of the Settlement are reflected in the Plan and Disclosure Statement filed with the Bankruptcy Court. The parties have agreed to modify the terms of the initial global settlement agreement announced earlier this year in order to address changed circumstances, including the appointment of an examiner in connection with the Company's bankruptcy proceedings and subsequent agreement with certain holders of indebtedness issued by Washington Mutual Bank. As previously announced, the Plan contemplates, among other things, distribution of funds to holders of allowed claims against the estate in excess of approximately $7 billion, including approximately $4 billion of previously disputed funds on deposit with JPMC. WMI believes the Settlement will result in significant recoveries for the estate's stakeholders and is in the best interests of the estate. The Bankruptcy Court will hold a hearing on October 18, 2010 to consider approval of the Disclosure Statement. Following approval of the Disclosure Statement, WMI will ask the Bankruptcy Court to confirm the Plan. The Disclosure Statement filed contains historical information regarding WMI and certain of its affiliates, a description of proposed distributions to creditors, an analysis of the Plan's feasibility, as well as many of the technical matters required for the solicitation process, such as descriptions of who will be eligible to vote on the Plan and the voting process itself. 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 disclosed 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). YAIR LEVY: Bank to Set Rector Square Foreclosure Auction Date ------------------------------------------------------------- Amanda Fung, writing for Crain's New York Business, last week said Anglo Irish Bank Corp. is expected to soon set the date for the foreclosure auction for all the unsold units of developer Yair Levy's failed condo conversion, Rector Square in Battery Park City. Ms. Fung reports that Chris Sullivan, Esq., at Herrick Feinstein, which represents Anglo Irish, said the 232 units, along with the parking garage and commercial space in the residential tower, located at 225 Rector Pl., will be auctioned off in a bulk sale on Nov. 17. Ms. Fung says Anglo Irish is owed roughly $135 million, according to the court order filed Sept. 28. The Crain's report notes Anglo Irish has determined -- upon recommendation by a hired expert -- that the higher bid would be obtained if the building was sold as one parcel, according to the court filing. Only 72 units at the building have been sold to date. Related Cos. was appointed by Rector Square's receiver, Michael Miller, to manage the property. Crain's says the receiver is also rumored to be interested in bidding on the site. The new owner of the building could choose to continue the conversion or maintain it as a rental property. Crain's notes the 45 tenants at Rector Square who are suing Mr. Levy and other parties involved in the botched condo conversion project for $100 million are anxiously awaiting the results of the auction. The decision on their lawsuit is still pending. Marc Held, Esq., at Lazarowitz & Manganillo, represents the Rector Square tenants. Crain's notes Anglo Irish was granted the right to foreclose on the 304-unit Rector Square earlier this year. In 2009, Mr. Levy's development firm, YL Real Estate Developers, defaulted on its $165 million mortgage on Rector Square. In its defense, YL Real Estate claimed that Anglo Irish did not comply with its loan obligations, which stalled the condo-conversion project. Crain's also relates the New York attorney general's office filed a lawsuit against Mr. Levy this summer, charging him with defrauding condo purchasers out of about $7.4 million. According to that suit, the developer raided the building's reserve fund, which was supposed to be used to ensure that repairs and improvements were made at the building. YONG AHN: Case Summary & 10 Largest Unsecured Creditors ------------------------------------------------------- Joint Debtors: Yong Kun Ahn Sunnie Heon Ahn P.O. Box 23445 Federal Way, WA 98093 Bankruptcy Case No.: 10-48160 Chapter 11 Petition Date: September 30, 2010 Court: United States Bankruptcy Court Western District of Washington (Tacoma) Judge: Paul B. Snyder Debtor's Counsel: Masafumi Iwama, Esq. IWAMA LAW FIRM 333 5th Ave S Kent, WA 98032 Tel: (253) 520-7671 E-mail: matt@iwamalaw.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/wawb10-48160.pdf * Highland's Daugherty Says Technical Trade in Distressed Gone -------------------------------------------------------------- The technical trade in distressed debt investing is over and managers will have to take a more active role in order to gain the high returns seen in the past, said Patrick Daugherty, partner at Highland Capital Management LP, according to reporting by Jonathan Keehner and Richard Bravo at Bloomberg News. "It's fair to say the technical trade is long gone, and that was driven by the liquidity crisis in late 2008 and early 2009," said Mr. Daugherty, who heads distressed and private equity investments at Dallas-based Highland Capital, speaking at Bloomberg LP's Dealmakers Summit. Bloomberg relates that distressed-debt and restructuring hedge funds have returned 4% this year through August, according to Hedge Fund Research Inc. That compares with an average 1.45% return for the overall hedge-fund industry in the same period, according to the Chicago-based research firm. The distressed-asset funds returned 28% last year, according to HFR. Investors have placed $2.6 billion in such funds in the first half of this year, according to the firm. Distressed managers have $111.5 billion in assets, according to HFR. * BankUnited's CEO Says U.S. May Lose a Third of Its Banks ----------------------------------------------------------- The United States may lose about a third of its banks as the weakening economy weeds out the least healthy institutions, said John Kanas, chief executive officer of BankUnited, according to reporting by Dawn Kopecki and Zachary R. Mider at Bloomberg News. "Most of us in the business think we probably need 5,000 and think we are on our way to 5,000 as this cycle, if this is a cycle, unfolds," Kanas, 63, said at the Bloomberg Dealmakers Summit in New York last week. "We simply chartered too many banks." The Federal Deposit Insurance Corp. said it insured deposits at 7,830 financial institutions as of June 30. * Consumer Bankruptcies Up 11% So Far in 2010, Says ABI ------------------------------------------------------- U.S. consumers filed almost 1.2 million bankruptcies in the nine months through Sept. 30, increase of 11% from a year earlier, and the total may approach 1.6 million by year end, according to the American Bankruptcy Institute. * Bankruptcy Filings Rise in South Texas ---------------------------------------- Carolyn Vaughn, writing for Personal Finance Bulletin, reports that the number of Chapter 11 bankruptcies reported rose 50% from last year, at 9 this September, compared to 6 last September 2009. Ms. Vaughn notes August held 7 reports of Chapter 11 cases. Ms. Vaughn also relates South-Central Texas saw a drastic rise in personal bankruptcy reorganizations filed, this recent month showing an increase in 35% over last year. * C. Scott Wilson Joins Huron Consulting Group ---------------------------------------------- C. Scott Wilson has joined Huron Consulting Group's Restructuring & Turnaround practice as a Director in the Houston office. Mr. Wilson has more than 30 years of financial services experience focused primarily in the energy industry. He has worked with oil and gas producers, gathering and transportation pipelines, refineries, and oilfield service providers. He has served as a senior executive/director for public and privately-held oil and gas exploration and production and oilfield service companies. Prior to joining Huron, Mr. Wilson founded Wolfden Corporation, a financial consulting firm focused on the energy sector. Other previous positions held include: president and CEO of United Heritage Corporation, chief financial officer of Big Lake Services Company, and senior-level positions at Sterling Bank (energy lending group), CIBC World Markets (energy corporate finance/underwriting & distribution), and First City National Bank of Houston (petroleum & minerals division). Mr. Wilson has a Master of International Management degree from the Thunderbird School of Global Management and a Bachelor of Arts degree from Ohio Wesleyan University. He is a member of the Independent Petroleum Association of America, Turnaround Management Association and the Association for Corporate Growth. Huron Consulting Group is a management consulting firm. * Orrick and Akin Gump Cancel Merger Plans ------------------------------------------ Orrick Herrington & Sutcliffe and Akin Gump Strauss Hauer & Feld have called off their merger plans, according to their joint statement issued Monday. "Orrick and Akin Gump [Akin Gump and Orrick] have mutually agreed to conclude preliminary discussions regarding the possibility of a merger," the statement said. "The firms appreciated the opportunity to have the discussions, which confirmed their mutual respect for one another. However, the firms have determined not to proceed." Orrick and Akin Gump declined to give details on why the deal fell apart. The Troubled Company Reporter on September 29, 2010, reported that both firms entered preliminary merger talks. According to The Wall Street Journal's Law Blog, David Schaefer, a spokesperson for Orrick, said: "Orrick and Akin Gump have held preliminary discussions about the possibility of a merger. At this time, it is premature and inappropriate to speak publicly in any detail about the process." Law Blog reported that Kathryn Holmes Johnson, a spokeswoman for Akin, said, "Akin Gump and Orrick are in exploratory discussions regarding the possibility of a merger." Zach Lowe, writing for The Am Law Daily, said the combined firm would have about 1,800 lawyers, according to the most recent Am Law 100 headcount numbers. Akin Gump had slightly higher profits per equity partner of $1.455 million in 2009 compared to a PPP figure of $1.36 million for Orrick, Mr. Lowe reported. Hilary Potkewitz, writing for Crain's New York Business, reports Orrick has been down the aisle several times over the past few years, only to call things off short of the altar. It nearly merged with U.K.-based SJ Berwin in May 2010. In 2006, it approved a merger with New York-based Dewey Ballantine, but when Dewey partners started exiting in advance of the deal's closing, the firms cancelled the merger. * Judge Kagan Dives Into Case on First Day With Supreme Court ------------------------------------------------------------- Justice Elena Kagan began her Supreme Court tenure dealing with bankruptcy, Dow Jones' DBR Small Cap reports. According to the report, for the first Monday in October -- the court's annual opening day -- the justices decided to weigh whether Jason Ransom, a Las Vegas man who declared bankruptcy with $82,000 in credit card debt, could shield $471 from his monthly payment to creditors under the standard exemption for vehicle ownership costs. The report relates Justice Samuel Alito fired off the first question at Ransom's attorney, Christopher Burke, followed by volleys from Justices Ruth Bader Ginsburg, Antonin Scalia and Stephen Breyer. Seated at the far end of the bench, according to seniority, Justice Kagan watched expectantly, wearing a slight smile, following each question from her new colleagues, the report notes. About fifteen minutes into the argument, she leaned forward, like a new kid in class weighing whether to jump into the discussion, the report adds. * Chapter 11 Cases With Assets & Liabilities Below $1,000,000 ------------------------------------------------------------- Recent Chapter 11 cases filed with assets and liabilities below $1,000,000: In Re Juan Angelo Veronica Angelo Bankr. D. Nev. Case No. 10-28186 Chapter 11 Petition filed September 25, 2010 See http://bankrupt.com/misc/nvb10-28186.pdf In Re C & S Trucking, LLC Bankr. N.D. Texas Case No. 10-46230 Chapter 11 Petition filed September 25, 2010 See http://bankrupt.com/misc/txnb10-46230.pdf In Re Builder's Edge, Inc. Bankr. N.D. Ill. Case No. 10-42944 Chapter 11 Petition filed September 26, 2010 See http://bankrupt.com/misc/ilnb10-42944.pdf In Re Jack L. Schofield, Jr. Janette T. Schofield Bankr. D. Nev. Case No. 10-28189 Chapter 11 Petition filed September 26, 2010 See http://bankrupt.com/misc/nvb10-28189.pdf In Re Jack Friedman dba Tucson Coinless Laundry Janice Rose Friedman fka Janice Rose Rubin Bankr. D. Ariz. Case No. 10-30940 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/azb10-30940.pdf In Re John Michael Powers, Sr. Melissa Jan Powers Bankr. D. Ariz. Case No. 10-30855 Chapter 11 Petition filed September 27, 2010 filed pro se In Re Scott Allen Colletti Bankr. D. Ariz. Case No. 10-30869 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/azb10-30869.pdf In Re Soundbites Restaurant, LLC fdba PHASE 54 Bankr. D. Ariz. Case No. 10-30897 Chapter 11 Petition filed September 27, 2010 filed pro se In Re CWC Architectural Woodworking, Inc. fka Colonial Woodcraft Incorporated Bankr. D. Conn. Case No. 10-23315 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/ctb10-23315p.pdf See http://bankrupt.com/misc/ctb10-23315c.pdf In Re New Haitian Alliance Church of Boynton Beach, Inc. Bankr. S.D. Fla. Case No. 10-39163 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/flsb10-39163.pdf In Re DeKalb Event Center, Inc. dba Mansion Elan Nightclub Bankr. N.D. Ga. Case No. 10-88430 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/ganb10-88430.pdf In Re Whitney Todd Deutsch Bankr. N.D. Ind. Case No. 10-14198 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/innb10-14198.pdf In Re 601 Ordinance Road, LLC Bankr. S.D. Iowa Case No. 10-04783 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/iasb10-04783.pdf In Re A & A Machine Shopp II, Co. Bankr. E.D. Mich. Case No. 10-35196 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/mieb10-35196p.pdf See http://bankrupt.com/misc/mieb10-35196c.pdf In Re Winding Road Ventures, Inc. Bankr. E.D. Mich. Case No. 10-69831 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/mieb10-69831p.pdf See http://bankrupt.com/misc/mieb10-69831c.pdf In Re Alumni House, Inc. Bankr. S.D. Miss. Case No. 10-03377 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/mssb10-03377p.pdf See http://bankrupt.com/misc/mssb10-03377c.pdf In Re JPM Realty, Inc. Bankr. M.D. Pa. Case No. 10-07868 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/pamb10-07868.pdf In Re Henry Jason Ritchmond aka Jason Ritchmond Bankr. S.D. Texas Case No. 10-38435 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/txsb10-38435.pdf In Re Brave General Contracting, LLC Bankr. E.D. Va. Case No. 10-74539 Chapter 11 Petition filed September 27, 2010 filed pro se In Re Bellemonte Farms Corporation Bankr. W.D. Va. Case No. 10-51580 Chapter 11 Petition filed September 27, 2010 See http://bankrupt.com/misc/vawb10-51580.pdf In Re Max Chris Monson Irene Murray Monson Bankr. D. Ariz. Case No. 10-31122 Chapter 11 Petition filed September 28, 2010 See http://bankrupt.com/misc/azb10-31122.pdf In Re John Lawson Harris Kathy L. Harris Bankr. D. Colo. Case No. 10-34614 Chapter 11 Petition filed September 28, 2010 See http://bankrupt.com/misc/cob10-34614.pdf In Re James Loyd Crockett Bankr. D. Ariz. Case No. 10-31333 Chapter 11 Petition filed September 29, 2010 See http://bankrupt.com/misc/azb10-31333.pdf In Re Global Management, Inc. Bankr. D. D.C. Case No. 10-00964 Chapter 11 Petition filed September 29, 2010 See http://bankrupt.com/misc/dcb10-00964.pdf In Re Rapid Graphix, Inc. Bankr. M.D. Fla. Case No. 10-17384 Chapter 11 Petition filed September 29, 2010 See http://bankrupt.com/misc/flmb10-17384.pdf In Re Firehouse 66, Inc. Bankr. S.D. Ga. Case No. 10-21288 Chapter 11 Petition filed September 29, 2010 See http://bankrupt.com/misc/gasb10-21288.pdf In Re One Poor Student, Inc. aka One Eyed Jake's Bankr. S.D. Iowa Case No. 10-04845 Chapter 11 Petition filed September 29, 2010 See http://bankrupt.com/misc/iasb10-04845.pdf In Re The Summit Restaurant & Bar, Inc. Bankr. S.D. Iowa Case No. 10-04846 Chapter 11 Petition filed September 29, 2010 See http://bankrupt.com/misc/iasb10-04846.pdf In Re David Wayne Fleetwood Kathleen Marie Fleetwood Bankr. D. Ariz. Case No. 10-31654 Chapter 11 Petition filed September 30, 2010 See http://bankrupt.com/misc/azb10-31654.pdf In Re Humiston Inga & Company Inc. Bankr. C.D. Calif. Case No. 10-51994 Chapter 11 Petition filed September 30, 2010 See http://bankrupt.com/misc/cacb10-51994.pdf In Re Mark Duncan Osborne Bankr. C.D. Calif. Case No. 10-52091 Chapter 11 Petition filed September 30, 2010 See http://bankrupt.com/misc/cacb10-52091.pdf In Re American Sushi, LLC dba Sushi Itto Bankr. S.D. Calif. Case No. 10-17463 Chapter 11 Petition filed September 30, 2010 See http://bankrupt.com/misc/casb10-17463.pdf In Re Odds & Ends Furniture, LLC Bankr. M.D. Fla. Case No. 10-23549 Chapter 11 Petition filed September 30, 2010 filed pro se In Re US General Homes, Corporation Bankr. M.D. Fla. Case No. 10-23603 Chapter 11 Petition filed September 30, 2010 See http://bankrupt.com/misc/flmb10-23603.pdf In Re 2413 Fisher, Inc. Bankr. S.D. Fla. Case No. 10-39789 Chapter 11 Petition filed September 30, 2010 See http://bankrupt.com/misc/flsb10-39789.pdf ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***