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/raid1/www/Hosts/bankrupt/TCR_Public/110525.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, May 25, 2011, Vol. 15, No. 143 Headlines 2333 GRAND: Voluntary Chapter 11 Case Summary 303 SANTA: Case Summary & 2 Largest Unsecured Creditors ACCREDITED HOME: Wins OK for Lone Star-Backed Liquidating Plan ADINO ENERGY: Incurs $493,500 Net Loss in First Quarter AEOLUS PHARMACEUTICALS: Reports $3.77-Mil. Profit in March 31 Qtr. ALLY FINANCIAL: Amends Prospectus for Sale of Treasury's Shares AMARU, INC: Posts $500,000 Net Loss in First Quarter AMERICAN INT'L: Treasury Cuts Stake to 77% in Tuesday's Share Sale AMERICAN PACIFIC: Christopher Barclay Appointed as Ch. 11 Trustee AMERISAFE INC: A.M. Best Upgrades Debt Ratings to 'bb+' AMTRUST FINANCIAL: Amends Plan of Reorganization ANCHOR BANCORP: Fails to Comply with Nasdaq's Minimum Bid Price ANGEL ACQUISITION: Delays Filing of 1st Quarter Form 10-Q APOLLO MEDICAL: Incurs $156,000 Net Loss in Fiscal 2011 ARK DEVELOPMENT: Court OKs Shraiberg Ferrara as Bankruptcy Counsel ASSET ACCEPTANCE: S&P Lowers Counterparty Credit Rating to 'B+' ATLANTA MANDALAY: Case Summary & 13 Largest Unsecured Creditors AVSTAR AVIATION: Reports $21,200 First Quarter Net Income AXION INTERNATIONAL: Richard Rosenblum Holds 6.3% Equity Stake BANK OF GRANITE: Seven Directors Elected at Annual Meeting BANK OF NT BUTTERFIELD: Fitch Assigns Individual 'C/D' Rating BANKATLANTIC BANCORP: Three Directors Elected at Annual Meeting BARNES BAY: Committee Can Retain C.R. Hodge as its Foreign Counsel BERNARD L MADOFF: Trustee Hits Banque Syz With $73-Million Suit BIOPACK ENVIRONMENTAL: Delays First Quarter Financials BLOCKBUSTER CANADA: Grant Thornton Initiates Sales Process BONDS.COM GROUP: Delays Filing of First Quarter Form 10-Q BRADKEN INC: S&P Withdraws 'B+' Corporate Credit Rating BRIGHAM EXPLORATION: Prices $300 Million of Senior Notes BROADCAST INT'L: Appoints Steven Ledger to Board of Directors CALYPTE BIOMEDICAL: Delays Filing of 1st Quarter Financials CAPITAL GROWTH: Gets OK for Asset Xfer to Pivotal in Most States CAPSALUS CORP: Amend Forms 10-K and 10-Qs to Correct Errors CARIBBEAN PETROLEUM: To Pay $8.2 Million for Blast Site Cleanup CARIBE MEDIA: S&P Withdraws 'D' CCR Following Bankruptcy Filing CASCADE BANCORP: Again Amends Prospectus for 44.5MM Shares CASPIAN SERVICES: Posts $2.1 Million Net Loss in March 31 Quarter CATASYS, INC: Incurs $1.95 Million First Quarter Net Loss CELL THERAPEUTICS: Board OKs Adjustments to 2009 Rights Pact CENTRAL PACIFIC: Fitch Upgrades IDRs to 'B+' from 'B-' CHAMPION ENTERPRISES: Plan of Liquidation Declared Effective CHRYSLER LLC: Repays Loans to U.S. and Canadian Governments COLONIAL BANCGROUP: Court Denies Chapter 11 Plan Confirmation COMCAM INTERNATIONAL: Posts $554,000 First Quarter Net Loss COMMERCIAL TRAVELERS: A.M. Best Cuts FSR to 'B'; Outlook Stable COMSTOCK MINING: Incurs $2.38-Mil. First Quarter Net Loss CONSTAR INT'L: Court Confirms Amended Plan of Reorganization CULLIGAN INTERNATIONAL: S&P Junks Corporate Credit Rating CYTOMEDIX INC: Posts $1.4MM Loss in Q1 2011; Warns of Bankruptcy DA-LITE SCREEN: S&P Withdraws 'B' CCR on Tender Offer Completion DAIS ANALYTIC: Posts $3.3 Million Net Loss in First Quarter DAIS ANALYTIC: Leonard Samuels Discloses 32.9% Equity Stake DEEP DOWN: Delays Filing of First Quarter Form 10-Q DELTATHREE, INC: Reports $28,000 Net Income in First Quarter DOLPHIN ENTERPRISES: Case Summary & 4 Largest Unsecured Creditors DOUGLAS SQUARE: Case Summary & 9 Largest Unsecured Creditors E*TRADE FINANCIAL: DBRS Assigns 'B' Rating to Unsec. Sr. Notes E-DEBIT GLOBAL: Initiates Switching Transition to Digital ENCINO CORPORATE: Files Schedules of Assets & Liabilities ENCINO CORPORATE: Section 341(a) Meeting Scheduled for June 1 ENCINO CORPORATE: Taps Levene Neale as Bankruptcy Counsel ENCORIUM GROUP: Delays Filing of First Quarter Financials ENERJEX RESOURCES: Delays Filing of First Quarter Form 10-Q ENVIRONMENTAL SOLUTIONS: Warns of Bankruptcy or Insolvency EVERGREEN ENERGY: Provides Updates on 2011 Corporate Objectives FIRST COMMUNITY BANK: Bank to Merge With Community Bank & Company FLINT TELECOM: Delays Filing of March 31 Form 10-Q FLORIDA GAMING: Incurs $1.73 Million First Quarter Net Loss FNB UNITED: Delays Filing of First Quarter Form 10-Q FOREVERGREEN WORLDWIDE: Posts $342,800 Net Loss in Q1 2011 FUSION TELECOMMUNICATIONS: Q1 Net Loss from Ops. at $2.1-Mil. GAMETECH INTERNATIONAL: Kevin Painter Appointed Board Chairman GATORLAND CROSSINGS: Case Summary & 5 Largest Unsecured Creditors GENERAL MARITIME: Authorized Common Shares Hiked to $390 Million GENERAL MOTORS: Moody's Rates Senior Unsecured Notes at 'B1' GENTA INC: Reports $513,000 Net Income in First Quarter GLC LIMITED: Wants to Sell Miscellaneous Inventory for $250,000 GUIDED THERAPEUTICS: Incurs $726,000 First Quarter Net Loss HAWKS PRAIRIE: Selling Commercial Real Property for $27-Mil. HERTZ CORP: DBRS Puts 'BB' Issuer Rating Under Review Developing IDO SECURITY: Delays Filing of First Quarter Form 10-Q IMAGE METRICS: Reports $689,000 Net Income in March 31 Quarter IMR CONTRACTOR: Case Summary & 20 Largest Unsecured Creditors INDIANA ASSETS: Case Summary & 2 Largest Unsecured Creditors INNKEEPERS USA: Files Reorganization Plan, Disclosure Statement INTEGRATED BIOPHARMA: Incurs $876,000 Net Loss in March 31 Qtr. INTERMETRO COMMUNICATIONS: Reports $2MM Net Income in Q1 2011 INTERNATIONAL ENERGY: Amends Schedules of Assets & Liabilities INTERNATIONAL ENERGY: Wins OK for McIntyre Panzarella as Counsel INTERNATIONAL FUEL: Posts $523,300 Net Loss in First Quarter IVAX DIAGNOSTICS: Posts $1 Million Net Loss in March 31 Quarter IVOICE INC: Delays Filing of First Quarter Form 10-Q J PASS: Case Summary & 15 Largest Unsecured Creditors JACKSON HEWITT: Files for Bankruptcy Protection JOHN D OIL: Incurs $554,950 First Quarter Net Loss JUMA TECHNOLOGY: Adam Benowitz Discloses 83.1% Equity Stake JUNIPER GROUP: Incurs $4.16 Million First Quarter Net Loss JVC HOMES: Case Summary & 20 Largest Unsecured Creditors KB HOME: Moody's Downgrades CFR to 'B2'; Outlook Stable KEYUAN PETROCHEMICALS: Receives NASDAQ Delinquency Notice KINGSWAY AMIGO: A.M. Best Withdraws 'C++' Fin'l Strength Rating KT SPEARS: Files List of 20 Largest Unsecured Creditors LA JOLLA: Incurs $6.51-Mil. First Quarter Net Loss LA JOLLA: Has 13.53 Million Issued and Outstanding Common Shares LAKE PLEASANT: Files Schedules of Assets and Liabilities LIBERTY BANKERS: A.M. Best Places 'B' FSR Under Review LIBERTY MEDIA: S&P Keeps 'BB-' Rating on CreditWatch Developing LIQUIDMETAL TECHNOLOGIES: Incurs $9.19-Mil. 1st Qtr. Net Loss LITHIUM TECHNOLOGY: Delays First Quarter Form 10-Q LOCATEPLUS HOLDINGS: Incurs $224,260 Net Loss in 1st Quarter LONGVIEW POWER: Moody's Rates Secured Credit Facilities at 'B3' MAJESTIC TOWERS: Has Interim Access True North's Cash Collateral MASTER SILICON: Incurs $177,621 Net Loss in March 31 Quarter MAYA ASSURANCE: A.M. Best Cuts Financial Strength Rating to 'D' MEDICAL CONNECTIONS: Posts $867,400 Net Loss in March 31 Quarter MEDPACE INC: S&P Gives 'B+' Corp. Credit Rating; Outlook Stable MEDPACE INC: Moody's Assigns 'B2' CFR; Outlook Stable METROPARK USA: Has Interim Access to Wells Fargo's Cash Collateral MGM RESORTS: To Sell 760MM Shares at HK$12.36-HK$15.34 Apiece MIT HOLDING: Delays Filing of First Quarter Form 10-Q MONEYGRAM INT'L: Request for Injunction in "Pittman" Suit Denied MONEYGRAM INT'L: Stockholders OK 2005 Incentive Plan Amendments MONTPELIER RE HOLDINGS: A.M. Best Affirms 'bb' Debt Ratings MXENERGY HOLDINGS: Delays Filing of March 31 Form 10-Q NEONODE INC: Incurs $9.72 Million Net Loss in March 31 Quarter NET TALK.COM: Incurs $24.16 Million Net Loss in March 31 Quarter NORCRAFT COMPANIES: Moody's Affirms B3 Rating; Outlook Stable NORCRAFT HOLDINGS: S&P Puts 'B-' Rating on CreditWatch Positive NORD RESOURCES: Incurs $2.27 Million Net Loss in March 31 Quarter NORTEL NETWORKS: Buys Flagship Property in Telecom Corridor NOWAUTO GROUP: Incurs $442,667 Net Loss in March 31 Quarter NUMOBILE INC: Posts $750,700 Net Loss in March 31 Quarter NXT NUTRITIONALS: Incurs $187,612 Net Loss in March 31 Quarter ORANGE GROVE: Can Use Signal Walnut's Cash Collateral Until May 31 OUTSOURCE HOLDINGS: Files Schedules of Assets and Liabilities OVERLAND STORAGE: Files Form 10-Q; Posts $3.3MM Loss in Fiscal Q3 PALM HARBOR: T. Smith Rescinds Resignation from Board of Directors PARK CENTRAL: Has Interim Access to Lenders' Cash Collateral PLATINUM ENERGY: Delays Filing of First Quarter Form 10-Q PLATINUM STUDIOS: Delays Filing of First Quarter Form 10-Q PRIUM SPOKANE: Wants Until June 17 to Propose Chapter 11 Plan PROTEIN POLYMER: Files for Chapter 7 Protection PURESPECTRUM, INC: Delays Filing of First Quarter Form 10-Q QUANTUM CORP: Incurs $1.65 Million Net Loss in March 31 Quarter QUICK-MED TECHNOLOGIES: Posts $611,900 Net Loss in March 31 Qtr. RADIENT PHARMA: Settles with Noteholders for $10MM in Shares RADIENT PHARMA: Delays Filing of March 31 Form 10-Q RASER TECHNOLOGIES: Creditors Merrill Lynch Wants DIP Loan Denied RASER TECHNOLOGIES: Wants to Linden-Led Auction for Equity Sponsor REGENCY ENERGY: Moody's Rates Proposed $500-Mil. Notes at 'B1' RURAL/METRO CORP: S&P Lowers CCR to 'B' on Warburg Acquisition SARDIS DEVELOPMENT: Case Summary & 7 Largest Unsecured Creditors SAVANNA ENERGY: DBRS Gives Final 'B' Rating to Sr. Unsec. Notes SEAHAWK DRILLING: Shareholders Want to Sue Ex-Owner Over Spinoff SEAHAWK DRILLING: Files Chapter 11 Plan, Disclosure Statement SECUREALERT INC: Incurs $2.51 Million Net Loss in 1st Quarter SENSATA TECHNOLOGIES: Waives Certain Conditions to Tender Offers SENSATA TECHNOLOGIES: Subsidiary Refinances Existing Indebtedness SIMON WORLDWIDE: Incurs $490,000 Net Loss in First Quarter SINOBIOMED INC: Delays Filing of 1st Quarter Report SOLUTIONS, INC: Case Summary & 20 Largest Unsecured Creditors SPHERIX INC: Regains Compliance With NASDAQ Listing Rule SPJST: A.M. Best 'B' Affirms Financial Strength Rating STERLING ESTATES: Seeks to Employ Bauch & Michaels as Counsel STRATUS MEDIA: Incurs $1.71 Million First Quarter Net Loss SUGARHOUSE HSP: S&P Gives 'B-' Rating to $235MM Sr. Secured Notes T3 MOTION: Delays Filing of First Quarter Form 10-Q T3 MOTION: Increases Size of Public Offering to $11.1 Million TELKONET INC: Incurs $982,478 Net Loss in March 31 Quarter TELTRONICS INC: Delays Filing of First Quarter Form 10-Q TEXAS STATE: S&P Lowers Long-term Rating on 2002A Bonds to 'D' TRA TRANSPORTATION: Case Summary & 20 Largest Unsecured Creditors TOWNSENDS INC: Committee Wants Claims Satisfied Thru $15.6MM Fund TRAILER BRIDGE: Moody's Downgrades CFR to Caa2; Outlook Negative TRANS ENERGY: Delays Form 10-Q as CFO Resigned April TRANS-LUX CORPORATION: Incurs $1.67-Mil. Net Loss in March Qtr. TRANS-LUX CORPORATION: GAMCO Asset Discloses 3.58% Equity Stake TREY RESOURCES: Delays Filing of Quarterly Report on Form 10-Q TRICO MARINE: Judge Clears Chapter 11 Plan for Creditor Vote ULURU INC: Posts $1.2 Million Net Loss in March 31 Quarter UNIVERSAL BIOENERGY: Delays Filing of Quarterly Report US AIRWAYS: Fitch Affirms Issuer Default Rating at 'CCC' VERTICAL COMPUTER: Reports $52,955 Net Income in March 31 Quarter VIASPACE INC: Incurs $767,000 Comprehensive Loss in March Quarter VIEW SYSTEMS: Posts $106,000 Net Loss in First Quarter VYTERIS, INC: Delays Filing of Quarterly Report on Form 10-Q WACHOVIA BANK: DBRS Cuts Rating on Class O Notes to 'CC (sf)' WASHINGTON MUTUAL: Hedge Funds, Shareholders Strike Deal WYKA L.L.C.: Case Summary & 20 Largest Unsecured Creditors YRC WORLDWIDE: Executes $400MM ABL Facility with Morgan Stanley YRC WORLDWIDE: Proposes Fin. Restructuring to Improve Liquidity YRC WORLDWIDE: Has Deal With Creditors to Provide Equity Share * ABI Poll: Debt Buyers Expect Same Recovery as Original Claimants * Upcoming Meetings, Conferences and Seminars ********* 2333 GRAND: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: 2333 Grand Avenue Housing Devel. Fund Corp. 2333 Grand Avenue Bronx, NY 10468 Bankruptcy Case No.: 11-12388 Chapter 11 Petition Date: May 19, 2011 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Judge: Martin Glenn Debtor's Counsel: Gerard M. Karlen, Esq. 420 Lexington Avenue, Suite 300 New York, NY 10170 Tel: (212) 867-0303 Fax: (212) 986-1952 E-mail: gmk1059@yahoo.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The list of unsecured creditors filed together with its petition does not contain any entry. The petition was signed by Eileen Peralta, president. 303 SANTA: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------- Debtor: 303 Santa Fe Dr Properties, LLC 303 Santa Fe Drive Encinitas, CA 92024 Bankruptcy Case No.: 11-08355 Chapter 11 Petition Date: May 20, 2011 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: Richard S. Van Dyke, Esq. VAN DYKE & ASSOCIATES, APLC 4660 La Jolla Village Drive, Suite 1070 San Diego, CA 92122 Tel: (858) 558-8475 Fax: (858) 356-5584 E-mail: rsvandyke@vdalaw.com Scheduled Assets: $1,817,932 Scheduled Debts: $2,700,000 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/casb11-08355.pdf The petition was signed by Gil Q. Galloway, manager. ACCREDITED HOME: Wins OK for Lone Star-Backed Liquidating Plan -------------------------------------------------------------- American Bankruptcy Institute reports that Accredited Home Lenders Holding Co. will liquidate its assets through a plan funded by parent company Lone Star Fund V (U.S.) LP. Bill Rochelle, Bloomberg News' bankruptcy columnist, reported that according to the explanatory Disclosure Statement, the Debtors and their advisors expect unsecured creditors and operating companies to receive significant recoveries that very well may reach 100% and expect unsecured creditors of the holding company to receive recoveries of approximately 65%. At the beginning of the cases in May 2009, the Debtors and their advisors expected returns of 5% to 10% to unsecured creditors. The housing crisis had increased the Debtors' liabilities while depleting the value of the Debtors' remaining assets, and the Debtors were faced with the prospect of initiating and funding prolonged, expensive and risky litigation to increase recoveries to creditors. About Accredited Home San Diego, California-based Accredited Home Lenders Holding Co. -- http://www.accredhome.com/-- was a mortgage banker servicing U.S. markets for conforming and non-prime residential mortgage loans operating throughout the U.S. and in Canada. Accredited sold its mortgage-servicing business in July 2009 as part of its bankruptcy. Accredited Home Lenders and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 09-11516) on May 1, 2009. Gregory G. Hesse, Esq., Lynnette R. Warman, Esq., and Jesse T. Moore, Esq., at Hunton & William LLP, serve as the Debtors' bankruptcy counsel. Laura Davis Jones, Esq., James E. O'Neill, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as Delaware counsel. Kurtzman Carson Consultants is the Debtors' claims agent. Andrew I Silfen, Esq., Schuyler G. Carroll, Esq., Robert M. Hirsch, Esq., at Arent Fox LLP in New York, and Jeffrey N. Rothleder, Esq., at Arent Fox LLP in Washington, DC, represent the official committee of unsecured creditors as co-counsel. Neil R. Lapinski, Esq., and Shelley A. Kinsella, Esq., at Elliott Greenleaf, represent the Committee as Delaware and conflicts counsel. Accredited Home Lenders estimated its assets at $10 million to $50 million and its debts at $100 million to $500 million in its Chapter 11 petition. ADINO ENERGY: Incurs $493,500 Net Loss in First Quarter ------------------------------------------------------- Adino Energy Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $493,472 on $486,203 of total revenues for the three months ended March 31, 2011, compared with net income of $129,867 on $655,967 of total revenues for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $3.36 million in total assets, $6.30 million in total liabilities, and a $2.94 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/x8oVoK About Adino Energy Based in Houston, Texas, Adino Energy Corporation (OTC BB: ADNY) -- http://www.adinoenergycorp.com/-- through its wholly owned subsidiary Intercontinental Fuels, LLC, specializes in fuel terminal operations for retail, wholesale, and governmental suppliers. The Company reported a net loss of $277,802 on $2.00 million of total revenues for the year ended Dec. 31, 2010, compared with net income of $23,029 on $2.18 million of total revenues during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $3.74 million in total assets, $6.24 million in total liabilities, and a $2.50 million shareholders' deficit. As reported by the TCR on April 8, 2011, M&K CPAS, PLLC, in Houston, Texas, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations and maintains a working capital deficit. AEOLUS PHARMACEUTICALS: Reports $3.77-Mil. Profit in March 31 Qtr. ------------------------------------------------------------------ Aeolus Pharmaceuticals, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $3.77 million on $785,000 of miscellaneous income for the three months ended March 31, 2011, compared with net income of $6.91 million on $0 of miscellaneous income for the same period during the prior year. The Company also reported a net loss of $3.84 million on $1.12 million of miscellaneous income for the six months ended March 31, 2011, compared with a net loss of $8.35 million on $0 of miscellaneous income for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $2.59 million in total assets, $30.57 million in total liabilities, and a $27.98 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/oeByOE About Aeolus Pharmaceuticals Based in Mission Viejo, California, Aeolus Pharmaceuticals Inc. (OTC BB: AOLS) -- http://www.aeoluspharma.com/-- is developing a variety of therapeutic agents based on its proprietary small molecule catalytic antioxidants, with AEOL 10150 being the first to enter human clinical evaluation. AEOL 10150 is a patented, small molecule catalytic antioxidant that mimics and thereby amplifies the body's natural enzymatic systems for eliminating reactive oxygen species, or free radicals. Studies funded by the National Institutes for Health are currently underway evaluating AEOL 10150 as a treatment for exposure to radiation, sulfur mustard gas and chlorine gas. A second compound, AEOL 11207, has demonstrated efficacy in animal models of Parkinson's disease and is currently being evaluated as a potential treatment for epilepsy. Haskell & White LLP, in Irvine, California, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has suffered recurring losses, negative cash flows from operations and management believes the Company does not currently possess sufficient working capital to fund its operations past the second quarter of fiscal 2012. The Company reported a net loss of $25.9 million, which included a non-cash charge of $21.3 million related to increases in the fair value of warrants, for fiscal 2010, compared with a net loss of $2.3 million for fiscal 2009. The Company did not generate any revenue during fiscal 2010 or fiscal 2009. ALLY FINANCIAL: Amends Prospectus for Sale of Treasury's Shares --------------------------------------------------------------- Ally Financial Inc. filed with the U.S. Securities and Exchange Commission Amendment No. 1 to Form S-1 registration statement relating to the United States Department of Treasury's offering of [ ] shares of common stock of Ally Financial Inc. Ally Financial Inc. will not receive any of the proceeds from the sale of shares of common stock by the selling stockholder. The Company intends to apply to list the common stock on the New York Stock Exchange under the symbol "ALLY". Concurrently with this offering, Treasury is also making a public offering of [ ] tangible equity units issued by the Company. Treasury has granted the underwriters of that offering the right to purchase up to [ ] additional Units to cover over- allotments, if any, at the public offering price of the Units, less the underwriters' discount for the Units, within 30 days from the date of the prospectus for the concurrent Units offering. The closing of the offering of Units is conditioned upon the closing of the offering of the Company's common stock, and the closing of the offering of the Company's common stock is conditioned upon the closing of the offering of Units. A full-text copy of the amended preliminary prospectus is available for free at http://is.gd/7qQoTK 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. 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. * * * In January 2011, Standard & Poor's Ratings Services raised its rating on the preferred stock of Ally Financial Inc. (Ally; B/Stable/C) to 'CC' from 'C'. The ratings firm noted that Ally improved its liquidity position and alleviated some funding pressure at its holding Company in recent months, making it easier to meet obligations on its preferred stock. Nevertheless, the Company faces significant debt maturities at its holding Company in 2011 and 2012, which is reflected in the 'CC' rating. As reported by the TCR on May 6, 2011, Standard & Poor's Ratings Services raised its long-term counterparty credit ratings on both Ally Financial Inc. (formerly GMAC Inc.) and subsidiary Residential Capital LLC (ResCap) to 'B+' from 'B'. The outlook on both ratings is stable. "Ally, an automobile- and mortgage- finance and servicing company, and ResCap, its mortgage subsidiary, improved their capital, credit quality, earnings, and liquidity in recent months," said Standard & Poor's credit analyst Brendan Browne. They also settled a material portion of their mortgage repurchase risk and have been profitable. In February 2011, Moody's Investors Service upgraded the issuer and senior unsecured ratings of Ally Financial Inc. and its supported subsidiaries to B1 from B3. Concurrently, Moody's upgraded the senior secured (second lien) and senior unsecured ratings of mortgage finance subsidiary Residential Capital LLC to Caa3 and Ca, respectively, from C. The rating outlook for both Ally and ResCap is stable. Moody's said the Ally and ResCap upgrades reflect a decline in ResCap's exposure to portfolio under-performance and mortgage repurchase risks and an associated decrease in contingent risks to Ally relating to its support of ResCap. Additional factors supporting Ally's upgrade include its strengthened liquidity and capital positions and prospects for continued profitability in its core auto finance and mortgage businesses based upon positive asset quality performance trends. AMARU, INC: Posts $500,000 Net Loss in First Quarter ---------------------------------------------------- Amaru, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $500,013 on $3,143 of revenue for the three months ended March 31, 2011, compared with a net loss of $423,545 on $5,598 of revenue for the same period last year. The Company's balance sheet at March 31, 2011, showed $3.1 million in total assets, $3.4 million in total liabilities, and a stockholders' deficit of $343,026. As reported in the TCR on April 26, 2011, Mendoza Berger & Company, LLP, in Irvine, California, expressed substantial doubt about Amaru, Inc.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has sustained accumulated losses from operations totaling $38.5 million at Dec. 31, 2010. A complete text of the Form 10-Q is available for free at: http://is.gd/RqGsy0 Singapore-based Amaru, Inc., a Nevada corporation, is in the business of broadband entertainment-on-demand, streaming via computers, television sets, PDAs (Personal Digital Assistant) and the provision of broadband services. The Company's business includes channel and program sponsorship (advertising and branding); online subscriptions, channel/portal development (digital programming services); content aggregation and syndication, broadband consulting services, broadband hosting and streaming services and E-commerce. AMERICAN INT'L: Treasury Cuts Stake to 77% in Tuesday's Share Sale ------------------------------------------------------------------ The Wall Street Journal's Serena Ng and Randall Smith report that American International Group Inc. and the U.S. Treasury sold $8.7 billion in shares Tuesday in a landmark stock offering that eked out a small profit for taxpayers and began the government's exit from the insurer 2-1/2 years after its bailout. According to the Journal, AIG and the Treasury sold 300 million shares at $29 apiece, putting U.S. taxpayers in line to recoup at least $5.8 billion and reducing the government's stake in the insurer to 77% from 92%. More shares may be sold in the coming days, which could lower U.S. ownership in AIG to around 74%. The Journal notes the sale price was slightly higher than Treasury's effective "breakeven" price of about $28.73 per AIG share, meaning the government reaped a profit of roughly $54 million on the first leg of its share sales. The Journal notes Officials had anticipated large profits for taxpayers last year when AIG shares were trading far higher, but recent weakness in AIG's stock left little room for the government to make money. AIG is aiming to return to independence in 2012. The AIG offering is being led by Bank of America Corp.'s Bank of America Merrill Lynch, Deutsche Bank AG, Goldman Sachs Group Inc., and J.P. Morgan Chase & Co. Their fee of roughly 0.5 percentage point for the offering is low, reflecting the U.S. government's role in the deal. Most big initial public offerings carry fees of closer to 3%. About AIG Inc. American International Group, Inc. -- http://www.aig.com/-- is an insurance organization with operations in more than 130 countries and jurisdictions. AIG companies provide life insurance and retirement services in the United States. AIG operates in three segments: Chartis, SunAmerica Financial Group (SunAmerica) and Financial Services. Its property and casualty operations are conducted through multiple line companies writing all commercial and consumer lines both domestically and abroad. SunAmerica offers a suite of products and services to individuals and groups, including term life, universal life, accident and health, fixed and variable deferred annuities, fixed payout annuities, mutual funds and financial planning. AIG's financial services businesses engages in commercial aircraft leasing through International Lease Finance Corporation and the remaining Capital Markets portfolios through AIG Financial Products Corp. and AIG Trading Group Inc. and their respective subsidiaries. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. In September 2008, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. AIG almost collapsed under the weight of bad bets it made insuring mortgage- backed securities. The Company, however, was bailed out by the Federal Reserve, but even after an initial infusion of $85 billion, losses continued to grow. The later rescue packages brought the total to $182 billion, making it the biggest federal bailout in U.S. history. AIG has been working to protect and enhance the value of its key businesses, execute an orderly asset disposition plan, and position itself for the future. AIG has sold a number of its subsidiaries and other assets to pay down loans received from the U.S. government, and continues to seek buyers of its assets. AMERICAN PACIFIC: Christopher Barclay Appointed as Ch. 11 Trustee ----------------------------------------------------------------- Christopher R. Barclay has been named Chapter 11 trustee for American Pacific Financial Corporation. On May 12, 2011, Bankruptcy Judge Bruce A. Markell ordered for an appointment of a Chapter 11 trustee. August B. Landis, the Acting U.S. Trustee for Region 17, asked for the appointment of a Chapter 11 trustee in the bankruptcy case of the Debtor. The U.S. Trustee explained that Larry R. Polhill, the Debtor's representative, president, director, 100% equity owner, and a creditor for $442,554, withheld material information from Paul Hazell, a creditor of American Pacific, concerning notes received for Mr. Hazell's investment. According to the U.S. Trustee, Mr. Pohill told Mr. Hazell and his wife that one of their notes was secured by the assets of U.S. Plastic Lumber Corp. and another note was secured by real property, but failed to tell them that USPL had recently filed bankruptcy, and that the real property was subject to a secured claim that was in default. About American Pacific Financial Las Vegas, Nevada-based American Pacific Financial Corporation has been involved in private equity and sub-debt investment in various types of companies since 1978. APFC's assets include loans and investments in distressed real estate development projects and in other types of distressed operating companies throughout various industries. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-27855) on Sept. 21, 2010. Kaaran Thomas, Esq., and Ryan J. Works, Esq., at McDonald Carano Wilson, LLP, in Las Vegas, Nevada, represent the Debtor. The Company disclosed $16,597,647 in assets and $160,977,435 in liabilities as of the Chapter 11 filing. As reported in the TCR on April 27, 2011, August B. Landis, the Acting U.S. Trustee for Region 17, asked the U.S. Bankruptcy Court for the District of Nevada to appoint a Chapter 11 trustee in the bankruptcy case of American Pacific Financial Corporation. The hearing on the Motion was set for April 18, 2011, but the Court rescheduled it to May 4, 2011 at 9:30 a.m. AMERISAFE INC: A.M. Best Upgrades Debt Ratings to 'bb+' ------------------------------------------------------- A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and issuer credit ratings (ICR) to "a" from "a-" of Amerisafe Insurance Group (Amerisafe) and its pool members. Amerisafe includes American Interstate Insurance Company, Silver Oak Casualty, Inc. and American Interstate Insurance Company of Texas (Austin, TX); all are operating subsidiaries of AMERISAFE, Inc. [NASDAQ: AMSF]. Concurrently, A.M. Best has upgraded the ICR to "bbb" from "bbb-" and debt ratings to "bb+" from "bb" of AMERISAFE, Inc. The outlook for all ratings has been revised to stable from positive. All companies are headquartered in DeRidder, LA, unless otherwise specified. (See below for a detailed listing of the debt ratings.) These rating actions reflect Amerisafe's excellent capitalization, strong operating profitability, which has outperformed the peer composite over the long term, and the group's established market presence and experience operating in a workers' compensation market for high hazard risks. Amerisafe's solid operating performance has been driven by its strong underwriting results given management's adherence to prudent underwriting and pricing discipline, focused loss control and safety programs and active claims management, which have allowed for favorable calendar year reserve development trends in recent years. These positive rating factors are somewhat offset by Amerisafe's product concentration and pockets of adverse loss reserve development, which caused earnings volatility in earlier years. The stable outlook reflects A.M. Best's expectation that operating results will remain strong and will contribute towards maintaining solid capitalization that is well supportive of Amerisafe's ratings. The following debt ratings have been upgraded: AMERISAFE, Inc.- -- to "bb+" from "bb" on $25.8 million subordinated trust preferred securities, due 2034 -- to "bb+" from "bb" on $10.3 million subordinated trust preferred securities, due 2034 AMTRUST FINANCIAL: Amends Plan of Reorganization ------------------------------------------------ BankruptcyData.com reports that AmTrust Financial filed with the U.S. Bankruptcy Court an Amended Joint Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, the AmFin Plan incorporates a proposed compromise and settlement regarding the holders of the senior notes claims. holders of the senior notes claims have agreed to (a) be treated as holders of unsecured claims against AFC, (b) have any liens, security interests, mortgages or guaranties be disregarded for all purposes under the AmFin Plan, and (c) the substantive consolidation of the Debtors' estates pursuant to the AmFin Plan. In consideration for such agreements by the holders of the senior notes claims, the Debtors have agreed that the senior notes claims will be deemed Allowed in the aggregate amount of $100,763,415. In addition, the Debtors have agreed not to object to any claims filed by (i) the holders of the senior notes, or their professionals or (ii) the Bank of New York Mellon, as collateral agent for the Senior Notes, or its professionals, for substantial contribution under Section 503(b) of the Bankruptcy Code up to an aggregate amount of $950,000." On the Effective Date of the AmFin Plan, the assets of each of the Debtors' bankruptcy estates will revest in the Reorganized Debtors free and clear of all liens and other encumbrances. Thereafter, the Reorganized Debtors will operate their businesses free of the restrictions contained in the Bankruptcy Code and will implement the terms of the AmFin Plan. The Reorganized Debtors are expected to remain in existence until their assets have been wholly converted to cash or abandoned, and all costs and expenses incurred in administering the AmFin Plan have been fully paid and all remaining proceeds have been distributed in accordance with the AmFin Plan. About AmTrust Financial AmTrust Financial Corp (PINK: AFNL) was the owner of the AmTrust Bank. AmTrust was the seventh-largest holder of deposits in South Florida, with $4.7 billion in deposits and 21 branches. In November 2008, the Office of Thrift Supervision issued a cease and desist order requiring AmTrust to improve its capital ratios. AmTrust Financial, together with affiliates that include AmTrust Management Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ohio Case No. 09-21323) on Nov. 30, 2009. The debtor subsidiaries include AmFin Real Estate Investments, Inc., formerly AmTrust Real Estate Investments, Inc. (Case No. 09- 21328). G. Christopher Meyer, Esq., Christine M. Piepont, Esq., and Sherri L. Dahl, Esq., at Squire Sanders & Dempsey (US) LLP, in Cleveland, Ohio; and Stephen D. Lerner, Esq., at Squire Sanders & Dempsey (US) LLP, in Cincinnati, Ohio, serve as counsel to the Debtors in the Chapter 11 cases. Kurtzman Carson Consultants serves as claims and notice agent. Attorneys at Hahn Loeser & Parks LLP serve as counsel to the Official Committee of Unsecured Creditors. AmTrust Management estimated $100 million to $500 million in assets and liabilities in its Chapter 11 petition. AmTrust Bank was not part of the Chapter 11 filings. On Dec. 4, 2009, AmTrust Bank was closed by regulators and the Federal Deposit Insurance Corporation was named receiver. New York Community Bank, in Westbury, New York, assumed all of the deposits of AmTrust Bank pursuant to a deal with the FDIC. ANCHOR BANCORP: Fails to Comply with Nasdaq's Minimum Bid Price --------------------------------------------------------------- Anchor BanCorp Wisconsin Inc., on May 13, 2011, received a letter from The Nasdaq Stock Market stating that it no longer complies with Nasdaq Marketplace Rule 5450(a)(1) because the bid price of the Company's common stock closed below the required minimum $1.00 per share for the previous 30 consecutive business days (March 30, 2011 through May 12, 2011). The letter also indicated that, in accordance with Marketplace Rule 5810(c)(3)(A), the Company has a period of 180 calendar days, until Nov. 9, 2011, to regain compliance with Rule 5450(a)(1). If at any time before Nov. 9, 2011, the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, Nasdaq will notify the Company that it has regained compliance with Rule 5450(a)(1). In the event the Company does not regain compliance with Rule 5450(a)(1) prior to the expiration of the 180-day period, Nasdaq will notify the Company that its common stock is subject to delisting. The Company may appeal the delisting determination to a Nasdaq hearing panel. At such hearing, the Company would present a plan to regain compliance and Nasdaq would then subsequently render a decision. The Company is currently evaluating its alternatives to resolve the listing deficiency. About Anchor Bancorp Headquartered in Madison, Wisconsin, Anchor Bancorp Wisconsin Inc. (NASDAQ: ABCW) is a registered savings and loan holding company incorporated under the laws of the State of Wisconsin. The Company is engaged in the savings and loan business through its wholly owned banking subsidiary, AnchorBank, fsb. AnchorBank, fsb was organized in 1919 as a Wisconsin chartered savings institution and converted to a federally chartered savings institution in July 2000. AnchorBank, fsb is the third largest depository institution headquartered in the state of Wisconsin and its largest thrift in terms of assets. The Company's balance sheet at Dec. 31, 2010, showed $3.58 billion in total assets, $3.59 billion in total liabilities, and a $9.52 million stockholders' deficit. "Management has proactively continued to address both problem credits and the effect of the protracted recessionary impact in its key markets and on its customers," said Chris Bauer, president and chief executive officer Anchor Bancorp. and its banking unit. As reported in the Troubled Company Reporter on July 5, 2010, McGladrey & Pullen, LLP, in Madison, Wisconsin, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that at March 31, 2010, all of the subsidiary bank's regulatory capital amounts and ratios are below the required levels and the bank is considered "undercapitalized" under the regulatory framework for prompt corrective action. The subsidiary bank has also suffered recurring losses from operations. Failure to meet the capital requirements exposes the Company's to regulatory sanctions that may include restrictions on operations and growth, mandatory asset dispositions, and seizure of the subsidiary bank. ANGEL ACQUISITION: Delays Filing of 1st Quarter Form 10-Q --------------------------------------------------------- Angel Acquisition Corp. notified the U.S. Securities and Exchange Commission that it will be late in filing its quarterly report on Form 10-Q for the period ended March 31, 2011. The Company said it did not provide its auditors with all of the information necessary for the auditors to complete the review of the financial statements prior to the date on which the Form 10-Q was required to be filed. About Angel Acquisition Carson City, Nev.-based Angel Acquisition Corp. was incorporated under the laws of the state of Nevada on March 10, 1999, under the name Palomar Enterprises, Inc. On February 5, 2008, the Company changed its name to Angel Acquisition Corp. to properly reflect the change in business direction. The Company assists private companies in the process of going public as well as being a licensed mortgage broker and developer. The Company's balance sheet at Dec. 31, 2010, showed $1.79 million in total assets, $2.15 million in total liabilities, and a $360,899 stockholders' deficit. As reported by the TCR on April 13, 2011, Gruber & Company, LLC, Lake Saint Louis, Missouri, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditor noted that the Company has been unable to generate sufficient operating revenues and has incurred operating losses. APOLLO MEDICAL: Incurs $156,000 Net Loss in Fiscal 2011 ------------------------------------------------------- Apollo Medical Holdings, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $156,331 on $3.89 million of revenue for the year ended Jan. 31, 2011, compared with a net loss of $196,280 on $2.44 million of revenue during the prior year. The Company's balance sheet at Jan. 31, 2011, showed $1.25 million in total assets, $1.34 million in total liabilities, and a $83,194 total stockholders' deficit. A full-text copy of the Form 10-K is available for free at: http://is.gd/fjXODi About Apollo Medical Glendale, Calif.-based Apollo Medical Holdings, Inc., provides hospitalist services in the Greater Los Angeles, California area. Hospitalist medicine is organized around the admission and care of patients in an inpatient facility such as a hospital or skilled nursing facility and is focused on providing, managing and coordinating the care of hospitalized patients. As reported in the Troubled Company Reporter on June 2, 2010, Kabani & Company, Inc., in Los Angeles, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for the fiscal year ended Jan. 31, 2010. The independent auditors noted that the Company has an accumulated deficit of $1.24 million as of Jan. 31, 2010, working capital of $1.07 million and cash flows used in operating activities of $338,141. ARK DEVELOPMENT: Court OKs Shraiberg Ferrara as Bankruptcy Counsel ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Florida authorized Ark Development/Oceanview LLC to employ Shraiberg, Ferrara & Landau, P.A., as bankruptcy counsel: Philip J. Landau, Esq. Lenore M. Rosetto, Esq. SHRAIBERG, FERRARA & LANDAU, P.A. 2385 NW Executive Center Drive, #300 Boca Raton, FL 33431 Telephone: (561) 443-0800 Facsimile: (561) 998-0047 E-mail: plandau@sfl-pa.com lrosetto@sfl-pa.com The firm will be paid at these rates: Legal assistants $110 Attorneys $225-$425 Philip J. Landau, Esq. $425 Mr. Landau, a partner at the firm, attests that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Pre-bankruptcy, the Debtor paid the firm a $25,000 retainer. Isaac Kodsi, the Debtor's managing member or another guarantor, will pay the firm an additional $25,000 by May 10, increasing the retainer to $50,000. About Ark Development/Oceanview Ark Development/Oceanview LLC owns three pieces luxury homes in Fort Lauderdale, Florida -- at 1431 North Atlantic Boulevard; 1427 North Atlantic Boulevard; and 1423 North Atlantic Boulevard. All three properties are in the final stages of the construction process. The Debtor estimates that the value of each property is roughly $4 million. Ark Development/Oceanview filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-20382) on April 18, 2011. Judge John K. Olson presides over the case. It scheduled assets of $12,000,000 and debts of $9,772,531. ASSET ACCEPTANCE: S&P Lowers Counterparty Credit Rating to 'B+' --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its counterparty credit rating on Asset Acceptance Capital Corp. (AACC), a debt collection company, to 'B+' from 'BB-'. The outlook is negative. "We also lowered our issue-level ratings on the company's existing revolving credit facility and term loan B to 'BB' from 'BB+' and withdrew our issue-level and recovery ratings on the company's previously planned term loan B and revolving credit facility," S&P stated. "The change in our rating on AACC reflects our concerns about the company's funding profile and financial flexibility, the Federal Trade Commission's (FTC) investigation of AACC's debt-collection practices, and its weak earnings performance," said Standard & Poor's credit analyst Brendan Browne. The company announced on May 17 that it was delaying its offering of a new revolving credit facility and term loan B to give it more time to "demonstrate improving operating performance." AACC originally planned those offerings to refinance its existing revolving credit facility and term loan B, which mature in June 2012 and June 2013. "Our previous rating incorporated our expectation that the offerings would have been completed sometime in May. Although we believe the company most likely will complete an offering in 2011, the delay may indicate that it was unable to issue debt at terms that it felt were reasonable. A failure to refinance its existing debt -- particularly the revolving credit facility -- at reasonable rates in the coming months could impair the company's funding profile and ultimately its profitability. An extended delay would likely force the company to repay its existing revolver rather than use the facility for purchasing receivables," S&P stated. "In our view, the delay also means that AACC's ability to access the capital markets has worsened. We believe that the FTC's investigation of AACC and its recent weak earnings performance may have caused investors' perception of the company to deteriorate somewhat. The FTC began an investigation of the company's debt- collection practices in February 2006.In April 2010, the FTC sent AACC a proposed consent decree, saying that the company may have violated certain collection laws. The FTC will likely seek to require AACC to make certain operational changes and pay a cash penalty. Although AACC believes the resolution of the matter will be immaterial, there is significant uncertainty surrounding the outcome. We believe an unfavorable outcome could further weaken the company's ability to access the debt markets at terms it finds acceptable. The FTC's investigation underlines the heightened regulatory risk all debt-collection companies face," S&P said. The outlook is negative. "We could lower our rating on AACC one or more notches if it fails to refinance its debt within the next several months. We could also lower the rating if AACC reaches a resolution with the FTC that we believe will materially affect its business or if its earnings worsen further. Although it is less likely, we could raise the rating if a resolution with the FTC proves immaterial and we believe the company has regained the funding and earnings strength it exhibited before the most recent recession," added S&P. ATLANTA MANDALAY: Case Summary & 13 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Atlanta Mandalay, LLC P.O. Box 7930 Saint Petersburg, FL 33734 Bankruptcy Case No.: 11-09689 Chapter 11 Petition Date: May 20, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Joel S. Treuhaft, Esq. PALM HARBOR LAW GROUP, P.A. 2997 Alternate 19, Suite B Palm Harbor, FL 34683 Tel: (727) 797-7799 Fax: (727) 213-6933 E-mail: jstreuhaft@yahoo.com Scheduled Assets: $1,050,975 Scheduled Debts: $6,557,935 A list of the Company's 13 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-09689.pdf The petition was signed by James Hartley, managing member. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- J Pass II, LLC 11-09687 05/20/11 AVSTAR AVIATION: Reports $21,200 First Quarter Net Income --------------------------------------------------------- AvStar Aviation Group, Inc., filed its quarterly report on Form 10-Q, reporting net income of $21,183 for the three months ended March 31, 2011, compared with a net loss of $601,441 for the same period last year. Revenues for the first quarter 2011 were $585,735 (consisting of $584,442 in revenues from aviation operations and $1,293 in revenues from oil and gas operations) compared to revenues of $101,518 for the first quarter 2010 (consisting of $100,428 in revenues from aviation operations and $1,090 in revenues from oil and gas operations). "Financial results for the quarter ended March 31, 2011, are not directly comparable to financial results for the quarter ended March 31, 2010," the Company said in the filing. "During August 2010, we completed the acquisition of Twin Air Calypso Limited, Inc. ("TAC Limited"). TAC Limited operates air carrier and air charter services. This acquisition appreciably affected the financial results for the quarter ended March 31, 2011, compared to the financial results for the quarter ended March 31, 2010." The Company's balance sheet at March 31, 2011, showed $1.11 million in total assets, $2.17 million in total liabilities, and a stockholders' deficit of $1.06 million. Clay Thomas, P.C., in Houston, expressed substantial doubt about Avstar Aviation Group's ability to continue as a going concern following the Company's 2010 results. Mr. Thomas noted that the Company has suffered significant losses and will require additional capital to develop its business until the Company either (1) achieves a level of revenues adequate to generate sufficient cash flows from operations; or (2) obtains additional financing necessary to support its working capital requirements. A complete text of the Form 10-Q is available for free at: http://is.gd/fJ2aqo Houston, Texas-based AvStar Aviation Group, Inc. (OTC QB: AAVG) -- http://www.avstarinc.com/-- due to acquisitions, is now in two aviation sectors, the maintenance, repair and overhaul ("MRO") of aircraft providing products and services for the general aviation sector, and the charter air service business. AXION INTERNATIONAL: Richard Rosenblum Holds 6.3% Equity Stake -------------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Richard Rosenblum and his affiliates disclosed that they beneficially own 1,534,980 shares of common stock of Axion International Holdings, Inc., representing 6.3% of the shares outstanding. A full-text copy of the regulatory filing is available for free at http://is.gd/Wrvjzl About Axion International New Providence, N.J.-based Axion International Holdings, Inc. (OTC BB: AXIH) - http://www.axionintl.com/-- is the exclusive licensee of patented and patent-pending technologies developed for the production of structural plastic products such as railroad crossties, pilings, I-beams, T-Beams, and various size boards including a tongue and groove design that are utilized in multiple engineered design solutions such as rail track, rail and tank bridges (heavy load), pedestrian/park and recreation bridges, marinas, boardwalks and bulk heading to name a few. As reported by the TCR on May 6, 2011, RBSM LLP, in New York, expressed substantial doubt about Axion International's ability to continue as a going concern, following its audit of the Company's balance sheet as of Dec. 31, 2010, and the related consolidated statements of operations, stockholders' equity (deficit), and cash flows for the three month period ended Dec. 31, 2010. The independent auditors noted that the Company has incurred significant operating losses in the current year and also in the past. The Company's balance sheet at Dec. 31, 2010, showed $1.3 million in total assets, $2.1 million in total liabilities, and a stockholders' deficit of $864,272. BANK OF GRANITE: Seven Directors Elected at Annual Meeting ---------------------------------------------------------- At the annual meeting of stockholders on May 16, 2011, Bank of Granite Corporation's stockholders elected seven directors: (1) Scott R. Anderson (2) John N. Bray (3) Joseph D. Crocker (4) Leila N. Erwin (5) Paul M. Fleetwood, III (6) Hugh R. Gaither (7) Boyd C. Wilson, Jr., CPA The stockholders ratified the selection of Dixon Hughes Goodman LLP as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2011. Moreover, the stockholders approved the amendment to the Company's Restated Certificate of Incorporation to effect a one-for-ten reverse stock split of the Company's issued and outstanding shares of common stock and fix the authorized shares of the Company's common stock at 2,500,000, such amendment to be effected prior to Sept. 19, 2011, in the sole discretion of the Board without further approval or authorization of the Company's stockholders. About Bank of Granite Granite Falls, N.C.-based Bank of Granite Corporation is a Delaware corporation that was organized June 1, 1987, as a bank holding company. The Company's only businesses are the ownership and operation of Bank of Granite, a state bank chartered under the laws of North Carolina on Aug. 2, 1906, and Granite Mortgage, Inc., a mortgage bank chartered under the laws of North Carolina on June 24, 1985. Granite Mortgage discontinued its origination activities during 2009. The Company conducts its community banking business operations from 20 full-service offices located in Burke, Caldwell, Catawba, Forsyth, Iredell, Mecklenburg, Watauga, and Wilkes counties in North Carolina. The Company's balance sheet at March 31, 2011, showed $841.01 million in total assets, $818.75 million in total liabilities, and $22.26 million in total stockholders' equity. Cease and Desist Order In 2009, Bank of Granite entered into a Stipulation and Consent to the issuance of an Order to Cease and Desist by the Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks. Based on the Company's Consent, the FDIC and the Commissioner jointly issued the Order on Aug. 27, 2009. The Order requires the Bank to achieve and maintain Tier 1 Leverage Capital Ratio of not less than 8% and a Total Risk-Based Capital of not less than 12% for the life of the Order. Going Concern Doubt The Company reported a net loss of $23.66 million on $44.80 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $25.62 million on $52.64 million of total interest income during the prior year. Dixon Hughes PLLC, in Charlotte, North Carolina, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company incurred net losses in 2010 and 2009, primarily from higher provisions for loan losses. Bank of Granite Corporation's wholly-owned bank subsidiary is under a regulatory order that requires, among other provisions, higher regulatory capital requirements. The Bank did not meet the higher capital requirements as of Dec. 31, 2010 and is not in compliance with the regulatory agreement. Failure to comply with the regulatory agreement may result in additional regulatory enforcement actions. BANK OF NT BUTTERFIELD: Fitch Assigns Individual 'C/D' Rating ------------------------------------------------------------- Fitch Ratings has affirmed Bank of N.T. Butterfield & Son Limited's (BNTB) long-term Issuer Default Rating (IDR) at 'A-' and short-term IDR at 'F1'. The Rating Outlook is Stable. Fitch has also withdrawn the 'F' Individual rating and assigned a new Individual rating of 'C/D'. BNTB's Individual rating of 'C/D' reflects its improving overall financial condition tempered by its remaining challenges. Currently, notable strengths include a liquid balance sheet and solid capital ratios. Also, BNTB has greater revenue diversity compared with many small banks due to its asset management, trust and custody businesses. Concerns remain particularly regarding weak profitability. After large losses in 2010, BNTB reported small profits in the first quarter of 2011 (1Q'11). The performance outlook is brightening owing to diminishing loan portfolio problems and a gradually improving net interest margin (NIM). However, BNTB's profitability is expected by Fitch to remain comparatively weak at least in the near term. In addition, BNTB is relatively small and geographically concentrated compared with many international banks. The economy of BNTB's home market of Bermuda has a large reliance on the insurance industry and to a lesser extent, tourism. In early 2010, BNTB suffered from large charges associated with its portfolio of structured securities. Consequently, a restructuring took place including the issuance of $550 million of new equity and the sale of the bulk of the structured securities portfolio. The recapitalization was led by the Carlyle Group and CIBC. Currently, CIBC and the Carlyle Group are the largest shareholders with ownership of 18.8% and 17.4%, respectively. Post recapitalization, key management changes were made including CEO, CFO and chief risk officer combined with the addition of new board members with considerable banking expertise. BNTB's long-term IDR is at its support floor of 'A-' based the bank's systemic importance in Bermuda and the local government's demonstrated support to preserve the financial stability of its largest local bank. In March 2009, the Bermudian government guaranteed the principal and dividend payments of the bank's $200 million preferred stock issuance. Consequently, the rating of this particular issue remains in line with Bermuda's sovereign foreign currency IDR of 'AA+', Stable Outlook. IDRs could be adversely affected if Fitch's view of the willingness and/or capacity of the Bermudian government to support BNTB in the event of need changes. An upgrade of the Individual rating is possible if BNTB establishes a track record of profitability while maintaining solid liquidity and capital strength. Conversely, a downgrade of the Individual rating could occur in the event of significant deterioration of financial performance, asset quality and/or capital position. BNTB is the leading local bank in Bermuda with total assets of just under $10 billion. BNTB's core strategy is to provide community banking services in Bermuda, Barbados and Cayman as well as wealth management services including asset management, private banking and trust services. Assets under management total $6.1 billion including $2.5 billion of discretionary assets under management (AUM) and $3.6 billion in the Butterfield funds (a mix of money market, fixed income and equity funds). Fitch has affirmed these ratings with a Stable Outlook: Bank of N.T. Butterfield & Son -- Long-term IDR at 'A-'; -- Short-term IDR at 'F1'; -- Preferred stock at 'AA+'; -- Subordinated debt at 'BBB+'; -- Support rating at '1'; -- Support floor at 'A-'. Fitch has withdrawn the 'F' Individual rating and assigned this rating: -- Individual rating 'C/D'. BANKATLANTIC BANCORP: Three Directors Elected at Annual Meeting --------------------------------------------------------------- The 2011 annual meeting of shareholders of BankAtlantic Bancorp, Inc., was held on May 17, 2011. The only proposal submitted to a vote of the Company's shareholders at the meeting was the election of three directors to the Company's Board of Directors, each to serve for a term expiring at the Company's 2014 Annual Meeting of Shareholders. The three director nominees elected at the Annual Meeting are Alan B. Levan, Keith Cobb and Bruno L. Di Giulian. About BankAtlantic Bancorp BankAtlantic Bancorp (NYSE: BBX) -- http://www.BankAtlanticBancorp.com/-- is a bank holding company and the parent company of BankAtlantic. BankAtlantic -- "Florida's Most Convenient Bank" with a Web presence at http://www.BankAtlantic.com/-- has nearly $6.0 billion in assets and more than 100 stores, and is one of the largest financial institutions headquartered junior in Florida. BankAtlantic has been serving communities throughout Florida since 1952 and currently operates more than 250 conveniently located ATMs. The Company's balance sheet at March 31, 2011, showed $4.47 billion in total assets, $4.48 billion in total liabilities and a $8.73 million total deficit. The Company reported a net loss of $143.25 million on $176.31 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $185.82 million on $223.59 million of total interest income during the prior year. * * * In September 2010, Fitch Ratings downgraded the long-term Issuer Default Ratings of BankAtlantic Bancorp. to 'CC' from 'B-' and its primary operating subsidiary, BankAtlantic FSB to 'CC' from 'B+. The 'CC' long-term IDR indicates a high default probability. Fitch said it believes that BBX will likely require external capital support given the high level of credit costs that continue to impact BBX's financial performance and erode its existing weak level of tangible common equity, which stood at just 1.39% at June 30, 2010. Although BFSB's regulatory capital levels remain 'well-capitalized', Fitch believes the company needs additional capital in order to provide absorption for future losses, particularly since earnings generation on a pre-provision net revenue basis is weak. As reported by the TCR on March 1, 2011, Fitch has affirmed its current Issuer Default Ratings for BankAtlantic Bancorp and its main subsidiary, BankAtlantic FSB at 'CC'/'C' following the announcement regarding the regulatory order with the Office of Thrift Supervision. BankAtlantic has announced that it has entered into a Cease and Desist Order with the OTS at both the bank and holding company level. The regulatory order includes increased regulatory capital requirements, limits to the size of the balance sheet, no new commercial real estate lending and improvements to its credit risk and administration areas. Further, the holding company must also submit a capital plan to maintain and enhance its capital position. BARNES BAY: Committee Can Retain C.R. Hodge as its Foreign Counsel ------------------------------------------------------------------ The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Barnes Bay Development, Ltd., et al., to retain C.R. Hodge & Associates as its foreign counsel. CRHA is expected to, among other things: a) provide legal advice regarding Anguillan law with respect to real estate issues and any other matters relevant to the case involving Anguillan law; b) assist the Committee in investigating the lien perfection of the prepetition lender and DIP lender; and c) assist the Committee in investigating the acts, conduct, assets, liabilities, and financial condition of the Debtors, the operation of the Debtors' businesses, potential claims, and any other matters relevant to the case, to the sale of assets or to the formulation of a plan of reorganization. The hourly rates of CRHA's personnel are: Cora Richardson Hodge $600 Sherma Blaize $375 Paraprofessionals $150 CRHA related that it has not received a prepetition retainer from the Debtors for its representation of the Committee. Nor has CRHA received any payments from the Debtors within the 90 day period prior to the Petition Date. To the best of the Committee's knowledge, CRHA is a"disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Barnes Bay Beverly Hills, California-based Barnes Bay Development Ltd., owns the Viceroy Anguilla Resort & Residences on the British West Indies island of Anguilla. Barnes Bay and two affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-10792) on March 17, 2011. The Debtor disclosed $3,331,282 in assets and $481,840,435 in liabilities as of the Chapter 11 filing. Akin Gump Straus Hauer & Feld LLP is the Debtors' bankruptcy counsel, and Keithley Lake & Associates is the Debtors' special Anguillan counsel. Kurtzman Carson Consultants LLC is the Debtors' claims, noticing, solicitation and balloting agent. The Debtors' Chapter 11 plan is intended to facilitate the sale of the Viceroy Anguilla Resort and Residences. The U.S. Trustee appointed five members to the official committee of unsecured creditors in the Debtors' cases. Brown Rudnick LLP serves as the Committee's co-counsel, and Womble Carlyle Sandridge & Rice, PLLC, as its Delaware co-counsel. FTI Consulting, Inc., serves as the Creditors Committee's financial advisors. BERNARD L MADOFF: Trustee Hits Banque Syz With $73-Million Suit --------------------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that the trustee overseeing the liquidation of Bernard L. Madoff's investment advisory firm filed suit Friday in New York against Banque Syz & Co. SA seeking more than $73 million the Swiss asset manager allegedly received from the colossal Ponzi scheme. Banque Syz channeled investor money through various feeder funds to Bernard L. Madoff Investment Securities LLC and subsequently received tens of millions of dollars in Ponzi payouts that belong to Madoff's victims, according to the complaint obtained by Law360. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping $50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of Feb. 18, 2011, a total of $6.85 billion in claims by investors has been allowed, with $791.1 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BIOPACK ENVIRONMENTAL: Delays First Quarter Financials ------------------------------------------------------ Biopack Environmental Solutions Inc. is unable to file, without unreasonable effort and expense, its Form 10-Q Quarterly Report for the period ended March 31, 2011, because its unaudited financial statements for that period have not been completed. As a result, the Company's auditors have not yet had an opportunity to complete their review of the unaudited financial statements. It is anticipated that the Form 10-Q Quarterly Report, along with the unaudited financial statements, will be filed on or before the 5th calendar day following the prescribed due date of the Company's Form 10-Q. About Biopack Environmental Kowloon, Hong Kong-based Biopack Environmental Solutions Inc. develops, manufactures, distributes and markets bio-degradable food containers and disposable industrial packaging for consumer products. The Company supplies its biodegradable food containers and industrial packaging products to multinational corporations, supermarket chains and restaurants located across North America, Europe and Asia. The Company has a factory in Jiangmen City in the People's Republic of China. As reported by the TCR on April 26, 2011, Wong Lam Leung & Kwok C.P.A. Limited, in Hong Kong, expressed substantial doubt about Biopack Environmental's ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss of $2.4 million for the year ended Dec. 31, 2010, and had an accumulated deficit of $7.3 million and a working capital deficit of $2.2 million as of Dec. 31, 2010. The Company reported a net loss of $2.4 million on $364,417 of revenue for 2010, compared with net income of $867,547 on $921,281 of revenue for 2009. At Dec. 31, 2010, the Company's balance sheet showed $1.0 million in total assets, $3.0 million in total liabilities, and a stockholders' deficit of $2.0 million. BLOCKBUSTER CANADA: Grant Thornton Initiates Sales Process ---------------------------------------------------------- Blockbuster Canada Co.'s Receiver, Grant Thornton Limited, has been authorized to initiate a process to identify parties interested in purchasing Blockbuster Canada's assets and operations. On May 3, 2011, Grant Thornton Limited was appointed as Receiver of Blockbuster Canada Co. pursuant to a Court Order made by the Ontario Superior Court of Justice which made a further Order on May 20, 2011 approving a sale process recommended by the Receiver. While Blockbuster Canada will be consolidating certain stores in the next few weeks, the majority of its stores are continuing to operate in the ordinary course during the process. "We appreciate the ongoing support of Blockbuster Canada's customers, employees, suppliers and other stakeholders during this period" said Michael Creber on behalf of Grant Thornton Limited. "We are hopeful that the process approved last Friday will result in resolution of the issues currently facing Blockbuster Canada Co." Grant Thornton Limited is a Canadian Member of Grant Thornton International Ltd. BONDS.COM GROUP: Delays Filing of First Quarter Form 10-Q --------------------------------------------------------- Bonds.com Group, Inc., informed the U.S. Securities and Exchange Commission that it is in the process of reviewing certain significant transactions that relate to the recent capital raise in February and March. The Company's Form 10-Q is expected to be filed not later than the fifth calendar day following the prescribed due date. About Bonds.com Group Based in Boca Raton, Florida, Bonds.com Group, Inc. (OTC BB: BDCG) -- http://www.bonds.com/-- through its subsidiary Bonds.com, Inc., serves institutional fixed income investors by providing a comprehensive zero subscription fee online trading platform. The Company designed the BondStation and BondStationPro platforms to provide liquidity and competitive pricing to the fragmented Over- The-Counter Fixed Income marketplace. The Company differentiates itself by offering through Bonds.com, Inc. an inventory of more than 35,000 fixed income securities from more than 175 competing sources. Asset classes currently offered on BondStation and BondStationPro, the Company's fixed income trading platforms, include municipal bonds, corporate bonds, agency bonds, certificates of deposit, emerging market debt, structured products and U.S. Treasuries. The Company reported a net loss applicable to common stockholders of $12.51 million on $2.71 million of revenue for the year ended Dec. 31, 2010, compared with a net loss applicable to common stockholders of $4.69 million on $3.90 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $2.27 million in total assets, $9.39 million in total liabilities and a $7.12 million stockholders' deficit. As reported by the TCR on May 9, 2011, Daszkal Bolton LLP, in Boca Raton, Fla., in its audit reports for the years ended Dec. 31, 2009, and Dec. 31, 2010, expressed substantial doubt about the Company's ability to continue as a going concern. The auditors noted that the Company has sustained recurring losses and has negative cash flows from operations. "We have a history of operating losses since our inception in 2005, and have a working capital deficit of approximately $4.4 million and an accumulated deficit of approximately $28.6 million at Dec. 31, 2010, which together raises doubt about the Company's ability to continue as a going concern," the Company acknowledged in the Form 10-K. BRADKEN INC: S&P Withdraws 'B+' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Rating Services affirmed its 'B+' corporate credit rating on Kansas City, Mo.-based Bradken Inc. Subsequently, S&P withdrew the ratings at the company's request. The outlook was stable at the time of withdrawal. The ratings reflect Bradken Inc.'s aggressive financial profile and participation in the fragmented and highly cyclical U.S. foundry industry. The company, which had about $250 million in revenue in the 12 months ended Dec. 31, 2010, is a metal casting company that provides steel and iron castings to industrial manufacturing companies. Australia-based Bradken Ltd. acquired Bradken in August 2008. Bradken Ltd. recently refinanced its bank debt facilities and used part of the proceeds to pay Bradken Inc.'s revolving line of credit and term loan facility in full. The shared capital structure will reflect the greater integration of Bradken into the parent, providing support to the rating. Bradken also recently defeased its 11% senior notes due 2011. BRIGHAM EXPLORATION: Prices $300 Million of Senior Notes -------------------------------------------------------- Brigham Exploration Company has priced an offering of $300 million aggregate principal amount of its 6-7/8% senior notes due 2019 at an offer price of 100%. The size of the offering was increased from the previously announced $250 million to $300 million. Brigham intends to use the net proceeds from the Senior Notes offering to fund portions of its 2011 and 2012 capital budgets and for general corporate purposes. Brigham expects the closing of the Senior Notes offering to occur on May 19, 2011. The Senior Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and state securities laws. This announcement will not constitute an offer to sell or a solicitation of an offer to buy the Senior Notes. About Brigham Exploration Austin, Texas-based Brigham Exploration Company (NASDAQ: BEXP) -- http://www.bexp3d.com/-- is an independent exploration, development and production company that utilizes advanced exploration, drilling and completion technologies to systematically explore for, develop and produce domestic onshore oil and natural gas reserves. In late 2007, the majority of the Company's drilling capital expenditures shifted from its historically active areas in the Onshore Gulf Coast, the Anadarko Basin and West Texas to the Williston Basin in North Dakota and Montana, where the Company is currently targeting the Bakken, Three Forks and Red River objectives. The Company's balance sheet at March 31, 2011, showed $1.16 billion in total assets, $565.38 million in total liabilities, and $595.91 million in stockholders' equity. The Company reported net income of $42.89 million on $169.72 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $122.99 million on $70.34 million of revenue during the prior year. * * * As reported by the TCR on Feb. 18, 2011, Moody's Investors Service upgraded Brigham Exploration Company's Corporate Family Rating to B3 from Caa1 and the Probability of Default Rating to B3 from Caa1. "The primary driver for the upgrade is Brigham's strong reserve and production growth and significant financial flexibility," said Francis J. Messina, Moody's Vice President. "The B3 Corporate Family Rating is prospective and it incorporates Moody's expectation that the company will significantly increase proved developed reserves and production rates over the next two years." BROADCAST INT'L: Appoints Steven Ledger to Board of Directors ------------------------------------------------------------- Broadcast International announced the appointment of Steven Ledger as a new member of its Board of Directors. Mr. Ledger is the Founder and Managing Partner at Tamalpais Partners LLC, a principal investor in, and advisor to, emerging growth companies. Steven has 27 years of experience as an investor in emerging technology companies. He previously served as co-founder and managing partner of eCompanies Venture Group where he managed an Internet focused, strategic venture capital fund whose investors included Sprint, Disney, Earthlink and Sun America. Successful lead investments included Jamdat (acquired by Electronic Arts) and Lower my Bills (acquired by Experian). Prior to co-founding eCompanies Venture Group, Mr. Ledger was the co-founder and managing partner of Storie Partners, L.P., a technology focused investment fund that provided early lead investment capital to Earthlink Networks and SeeBeyond Technologies Corporation (acquired by Sun Microsystems). Prior to forming Storie Partners, Mr. Ledger was a managing partner with Kayne Anderson Investment Management. He began his career at Fidelity Management and Research as an equity research analyst and portfolio manager. Ledger is a graduate of the University of Connecticut. "Broadcast International is pleased to welcome Steve as a new Board Member," said Rod Tiede, President and CEO of Broadcast International. "His extensive experience as an investor in and advisor to emerging companies will serve as a key asset for BI as we begin to execute against the exciting opportunities at BI Networks, our digital signage network/managed enterprise video services business and Codecsys, our emerging video optimization software business." "After working with Rod and the BI team as an advisor for the past few months, it has become increasingly clear that both BI Networks and Codecsys have unique approaches and solutions that address large, emerging markets. I am excited to be a member of the team, working to create value for BI shareholders," stated Mr. Ledger. Mr. Ledger replaces Mr. James E. Solomon who resigned as a Director on May 12, 2011, to make a position available for Mr. Ledger. Mr. Solomon served on the Board of Directors since September 2005. He continues his service as Secretary and Chief Financial Officer of the Company. About Broadcast International Based in Salt Lake City, Broadcast International, Inc. installs, manages and supports private communication networks for large organizations that have widely-dispersed locations or operations. The Company owns CodecSys, a video compression technology to convert video content into a digital data stream for transmission over satellite, cable, Internet, or wireless networks, as well as offers audio and video production services. The Company's enterprise clients use its networks to deliver training programs, product announcements, entertainment, and other communications to their employees and customers. The Company reported a net loss of $18.66 million on $7.31 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $13.38 million on $3.62 million of net sales during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $10.71 million in total assets, $26.63 million in total liabilities, and a $15.92 million total stockholders' deficit. HJ & Associates LLC, in Salt Lake City, expressed substantial doubt about the Company's ability to continue as a going concern, after auditing the Company's financial statements for the year 2009. The independent auditors noted that the Company has incurred recurring losses from operations and has a deficit in stockholders' equity and working capital. The audit report for the Company's financial statements for the end of 2010 did not contain a going concern qualification from the auditor. The Company's 2010 Annual Report did not contain a negative going concern statement. CALYPTE BIOMEDICAL: Delays Filing of 1st Quarter Financials ----------------------------------------------------------- Calypte Biomedical Corporation is unable to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, on a timely basis due to its limited financial resources, thin staffing, and delays in completing its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2010. As of this time, the Company expects to file its Form 10-Q on or about June 28, 2011. About Calypte Biomedical Portland, Ore.-based Calypte Biomedical Corporation develops, manufactures, and distributes in vitro diagnostic tests, primarily for the diagnosis of Human Immunodeficiency Virus infection. The Company's balance sheet at Sept. 30, 2010 showed $2.44 million in total assets, $6.21 million in total liabilities, and a $3.77 million stockholders' deficit. Odenberg, Ullakko, Muranishi & Co. LLP, in San Francisco, 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 defaulted on $6.3 million of 8% Convertible Promissory Notes and related Interest Notes and $5.2 million of 7% Promissory Notes, has suffered recurring operating losses and negative cash flows from operations, and management believes that the Company's cash resources will not be sufficient to sustain its operations through 2010 without additional financing. CAPITAL GROWTH: Gets OK for Asset Xfer to Pivotal in Most States ---------------------------------------------------------------- As reported in the TCR on May 18, 2011, Pivotal Global Capacity, LLC, and its subsidiary, GC Pivotal, LLC, and Capital Growth Systems, Inc., et al., announced to the U.S. Bankruptcy Court for the District of the Delaware the consummation of the sale of substantially all of the assets of the Companies to Pivotal Global Capacity, LLC, and its subsidiary, GC Pivotal, LLC, in accordance with the final, executed Asset Purchase Agreement, dated as of May 16, 2011. The aggregate consideration for the purchase of the assets was $28,359,360.82, comprised of a credit bid of $9,000,000 against the secured debt held by the buyers, credit bid of $10,699,360.82 to pay the debtor in possession facility secured by the sellers' assets and $8,660,000 additional cash payments to mission critical vendors, executory cure payments, priority tax payments, wind down budget (including certain insurance) payments and funding of certain administrative claims, advanced on the DIP facility. As of May 16, 2011, the Companies and the buyers had received approval from state telecommunications regulatory authorities in most of the states in which the Companies were engaged in the provision of telecommunications services for the transfer of assets to the buyers and the licensing of the buyers. However, approval had not yet been obtained in all states. In order to address the need for regulatory approval in the excluded states for the asset transfer (for which title remains with the Companies pending approval) and regulatory approval for the buyers' operation of the telecommunications assets, GC Pivotal, LLC, entered into a Management Services Agreement ("MSA") dated as of May 13, 2011, with Global Capacity Group, Inc., and Global Capacity Direct, LLC ("Company Managers") whereby GC Pivotal, LLC, agreed to provide certain non-telecommunications management services and the Company Managers provide the telecommunications services in the excluded states. The MSA continues in effect until GC Pivotal, LLC, obtains all necessary state public utility commission authorizations to provide telecommunications services in the excluded states (with approved asset transfers to it), mutual agreement of the parties or by GC Pivotal, LLC's decision to terminate provision of those services upon two weeks' advance notice. Upon public utility commission approval with respect to the transfer of telecommunications assets for any of the excluded states, the title to those assets will be transferred from the applicable Companies to the buyers. The Companies are presently in its wind down mode, now that the substantial majority of their assets have been conveyed to the buyers, and the remaining telecommunications-related assets will be conveyed to the Buyers as remaining state public utility commission approvals are obtained for their conveyance. A copy of Asset Purchase Agreement is available at: http://is.gd/hN5cXN Effective as of the closing of the Asset Purchase Agreement on May 16, 2011, the resignations of the following officers and directors of the Company were effective: Patrick C. Shutt (CEO and Director); George King (Director); Charles Wright (Director); Jeremy Cooke (Director); Kenneth Napier (Director); Bradford Higgins (Director); Dan Kardatzke (Chief Financial Officer, VP and Treasurer) and Jack Lodge (Secretary). The sole remaining directors of the Company presently are Robert Pollan and Christopher Hoyle. None of the resigning officers or directors provided any notification of any disagreement with the policies or actions of the Company in connection with their resignation. In addition, effective May 16, 2011, James Butala was appointed as Chief Administrative Officer of the Company, with authority comparable to that of a chief executive officer. About Global Capacity Headquartered in Chicago, Illinois, Capital Growth Systems, Inc., known as Global Capacity, and its subsidiaries operate in one reportable segment as a single source telecom logistics provider in North America and the European Union. The Company helps customers improve efficiency, reduce cost, and simplify operations of their complex global networks -- with a particular focus on access networks. Capital Growth Systems and its affiliates filed for Chapter 11 protection on. The lead debtor is Global Capacity Holdco LLC (Bankr. D. Del. Case No. 10-12302). Global Capacity Group Inc. estimated $10 million to $50 million in assets and debts in its petition. CAPSALUS CORP: Amend Forms 10-K and 10-Qs to Correct Errors ----------------------------------------------------------- Subsequent to the filing of Capsalus Corp.'s annual report on Form 10-K for the year ended Dec. 31, 2010, the Company identified an error in its previously reported acquisition of WhiteHat Holdings, LLC. The Company incorrectly reported contingent consideration in the aforementioned acquisition as a liability rather than as additional paid-in capital. The Company filed Amendment No. 1 to the Annual Report on Form 10-K for the annual period ended Dec. 31, 2010, to properly reclassify the contingent consideration for Additional Shares in connection with the acquisition of WhiteHat Holdings, LLC, to additional paid-in capital from current liabilities. The effect on reported financial statement accounts is as follows: * The contingent consideration liability is reduced from $2,358,411 to $0. * Total current liabilities decreased from $5,721,890 to $3,363,479. * Additional paid-in capital increased from $27,734,680 to $30,093,091. * Total stockholders' deficit increased from a deficit of $2,645,834 to a deficit of $287,423. The Company reported a net loss of $16.02 million for the year ended Dec. 31, 2010, compared with a net loss of $10.89 million during the prior year. A full-text copy of the Amended Form 10-K is available at no charge at http://is.gd/JJunnf Amendment to June and Sept. Quarter Results The Company also filed Amendments the Quarterly Reports on Form 10-Q for the quarterly periods ended June 30, 2010, and Sept. 30, 2010, to restate the amount of the purchase consideration provided for in connection with the acquisition of WhiteHat. More specifically, the amount of the purchase consideration is being restated for the following: (1) The Company previously valued the Company's common stock issued at $1,127,113, or approximately $0.007 per share. In this amended filing, the value of common stock issued has been increased to $11,909,977, or $0.07 per share (the closing price of the Company's shares on April 14, 2010, (the effective date of the acquisition)). (2) The Company previously did not record the contingent consideration for additional shares to be issued should the Company not meet certain funding commitments in the future. In the amended filing, the contingent consideration has been recorded at its estimated fair value of $2,358,411 and classified as additional paid in capital. The effect on reported financial statement accounts for the June Quarter is as follows: * Goodwill increased from $102,184 to $13,243,460. * Total assets increased from $3,029,901 to $16,171,177. * Additional paid-in capital increased from $15,018,421 to $28,159,697. * Total stockholders' equity (deficit) increased from a deficit of $2,131,669 to equity of $11,009,607. * Total liabilities and stockholders' equity (deficit) increased from $3,029,901 to $16,171,177. The effect on reported financial statement accounts for the Sept. Quarter is as follows: * Goodwill increased from $102,184 to $13,243,460. * Total assets increased from $3,026,737 to $16,168,013. * Additional paid-in capital increased from $16,764,291 to $29,905,567. * Total stockholders' equity (deficit) increased from a deficit of $1,555,307 to equity of $11,585,969. * Total liabilities and stockholders' equity (deficit) increased from $3,026,737 to $16,168,013. A full-text copy of the Amended June Form 10-Q is available at no charge at http://is.gd/2Cb7Cm A full-text copy of the Amended Sept. Form 10-Q is available at no charge at http://is.gd/NHqdS9 About Capsalus Corp. Atlanta, Ga.-based Capsalus Corp. offers a broad range of solutions to global health problems. WhiteHat Holdings, LLC, was acquired on April 14, 2010. In combining with WhiteHat, the Company is creating a new, consumer-driven business unit, the Nutritional Products Division, focused on healthy food and beverages. Moquist Thorvilson Kaufmann Kennedy & Pieper LLC, in Edina, Minnesota, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered losses from operations since its inception. CARIBBEAN PETROLEUM: To Pay $8.2 Million for Blast Site Cleanup --------------------------------------------------------------- Ian Thoms at Bankruptcy Law360 reports that Caribbean Petroleum Corp. has agreed to pay $8.2 million to reimburse the government for the cleanup of a catastrophic 2009 fuel depot explosion that crippled the company's operations and drove it to bankruptcy, the U.S. Department of Justice announced Friday. According to Law360, the money will cover costs incurred by the U.S. Environmental Protection Agency and the U.S. Coast Guard while cleaning up the blast site in Bayamon, Puerto Rico. The settlement also resolves penalties for violations of the Clean Water Act and the Resource Conservation and Recovery Act. About Caribbean Petroleum San Juan, Puerto Rico-based Caribbean Petroleum Corporation, aka CAPECO, owns and operates certain facilities in Bayomon, Puerto Rico for the import, offloading, storage and distribution of petroleum products. Caribbean Petroleum sought Chapter 11 protection (Bankr. D. Del. Case No. 10-12553) on Aug. 12, 2010, nearly 10 months after a massive explosion at its major Puerto Rican fuel storage depot virtually shut down the company's operations. The Debtor estimated assets of US$100 million to US$500 million and debts of US$500 million to US$1 billion as of the Petition Date. Affiliates Caribbean Petroleum Refining, L.P., and Gulf Petroleum Refining (Puerto Rico) Corporation filed separate Chapter 11 petitions on Aug. 12, 2010. John J. Rapisardi, Esq., George A. Davis, Esq., Peter Friedman, Esq., and Zachary H. Smith, Esq.. at Cadwalader, Wickersham & Taft LLP, in New York, serve as lead counsel to the Debtors. Mark D. Collins, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Del., serve as local counsel. The Debtors' financial advisor is FTI Consulting Inc. The Debtors' chief restructuring officer is Kevin Lavin of FTI Consulting Inc. Kurtzman Carson Consultants LLC serves as the noticing, claims and balloting agent. In December 2010, the Debtor won bankruptcy court approval to sell its business to Puma Energy International for US$82 million. Puma obtained Capeco's entire retail network, which consists of 157 locations, gasoline, diesel and other fuel storage facilities as well as undeveloped land and a private deep water jetty. This is Caribbean Petroleum's second stint in Chapter 11. CARIBE MEDIA: S&P Withdraws 'D' CCR Following Bankruptcy Filing --------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on Caribe Media Inc. This follows Standard & Poor's downgrading the company to 'D' on May 6, 2011, following the company's filing for Chapter 11 bankruptcy protection. CASCADE BANCORP: Again Amends Prospectus for 44.5MM Shares ---------------------------------------------------------- Cascade Bancorp filed with the U.S. Securities and Exchange Commission Amendment No. 2 to Form S-1 registration statement relating to the resale of an aggregate of up to 44,590,054 shares of the Company's common stock, representing approximately 95% of the Company's total outstanding shares, of which 44,243,750 were issued to the selling stockholders in connection with an equity financing transaction in January 2011. A total of 41,002,554 of the shares of the Company's common stock being registered pursuant to this registration statement are held by directors, officers or significant shareholders of the Company. The Company is required to file this registration statement, of which this prospectus is a part, under the terms of a Registration Rights Agreement dated Jan. 28, 2011, with the selling stockholders to register for resale the shares of common stock issued by the Company to certain investors in connection with the Private Offerings. The Company will not receive any proceeds from the sale of the shares of common stock by the selling stockholders. The Company's common stock is traded on the NASDAQ Capital Market under the symbol "CACB." The last reported sale price of the Company's common stock on the NASDAQ Capital Market on May 11, 2011, was $8.16 per share. These shares of common stock are not savings accounts, deposits, or other obligations of the Company's bank subsidiary and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency. A full-text copy of the amended prospectus is available for free at http://is.gd/8gLiK2 About Cascade Bancorp Bend, Ore.-based Cascade Bancorp (Nasdaq: CACB) through its wholly-owned subsidiary, Bank of the Cascades, offers full-service community banking through 32 branches in Central Oregon, Southern Oregon, Portland/Salem Oregon and Boise/Treasure Valley Idaho. Cascade Bancorp has no significant assets or operations other than the Bank. Weiss Ratings has assigned its E- rating to Bend, Ore.-based Bank of The Cascades. The rating company says that the institution currently demonstrates what it considers to be significant weaknesses and has also failed some of the basic tests it uses to identify fiscal stability. "Even in a favorable economic environment," Weiss says, "it is our opinion that depositors or creditors could incur significant risks." As of March 31, 2010, the bank's balance sheet showed $2.088 billion in assets. The Company reported a net loss of $13.65 million on $84.98 million of total interest and dividend income for the year ended Dec. 31, 2010, compared with a net loss of $114.83 million on $106.81 million of total interest and dividend income during the prior year. The Company's balance sheet at March 31, 2011, showed $1.60 billion in total assets, $1.39 billion in total liabilities, and $209.54 million in total stockholders' equity. CASPIAN SERVICES: Posts $2.1 Million Net Loss in March 31 Quarter ----------------------------------------------------------------- Caspian Services, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2.14 million on $10.97 million of revenues for the three months ended March 31, 2011, compared with a net loss of $3.96 million on $10.25 million of revenues for the same period of the prior fiscal year. The Company's balance sheet at March 31, 2011, showed $115.43 million in total assets, $87.17 million in total liabilities, and stockholders' equity of $28.26 million. At March 31, 2011, the Company had cash on hand of approximately $11.37 million compared to cash on hand of approximately $5.71 million at Sept. 30, 2010. At March 31, 2011, the Company had negative working capital of $49.81 million, mainly due to the loans with Altima, Great Circle and EBRD, as well as the EBRD put option, being classified as current liabilities. As reported in the Troubled Company Reporter on Jan. 29, 2011, Hansen, Barnett & Maxwell P.C., in Salt Lake City, Utah, expressed substantial doubt about Caspian Services' ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company is in violation of certain loan covenants which allows for the lenders to exercise acceleration features and declare the loans and accrued interest immediately due and payable. Should any of these parties determine to exercise their acceleration rights, the Company would not have sufficient funds to repay any of the loans. At Sept. 30, 2010, the Company also had negative working capital of $50.3 million. A complete text of the Form 10-Q is available for free at: http://is.gd/9BcynO Salt Lake City, Utah-based Caspian Services, Inc.'s business consists of three major business segments. It Vessel Operations segment consist of chartering a fleet of shallow draft offshore support vessels to customers performing oil and gas exploration activities in the Kazakhstan Sector of the North Caspian Sea. The Geophysical Services segment consist of providing seismic data acquisition services to oil and gas companies operating both onshore in Kazakhstan and offshore in the Kazakhstan sector of the North Caspian Sea and the adjacent transition zone. The Marine Base Services segment consists of operating a marine base located at the Port of Bautino on the North Caspian Sea and an operating water desalinization and bottling plant selling potable water. The Company sold its interest in its majority subsidiary CJSC Bauta, including its interest in the water desalinization and bottling plant operated by Bauta, in April 2011 to a non-related third party. CATASYS, INC: Incurs $1.95 Million First Quarter Net Loss --------------------------------------------------------- Catasys, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $1.95 million on $87,000 of total revenues for the three months ended March 31, 2011, compared with a net loss of $3.15 million on $123,000 of total revenues for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $6.26 million in total assets, $10.11 million in total liabilities and a $3.85 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/8zzugM About Hythiam, Inc. Based in Los Angeles, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. The Company reported a net loss of $19.99 million on $448,000 of total revenues for the twelve months ended Dec. 31, 2010, compared with a net loss of $9.15 million on $1.53 million of total revenues during the prior year. Rose, Snyder & Jacobs, in Encino, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2010. CELL THERAPEUTICS: Board OKs Adjustments to 2009 Rights Pact ------------------------------------------------------------ Pursuant to the Shareholder Rights Agreement dated as of Dec. 28, 2009, between Cell Therapeutics, Inc., and Computershare Trust Company, N.A., as Rights Agent, in connection with the 1-for-6 reverse split of the Company's common stock which was effective on May 15, 2011, the Board of Directors of the Company determined that certain adjustments to the terms of the Rights issued pursuant to the Rights Agreement were appropriate. The Board of Directors therefore approved resolutions authorizing the following adjustments to the terms of the Rights: (i) the number of ten- thousandths of a share of Preferred Stock of the Company purchasable upon the exercise of each Right was increased from one ten-thousandth (1/10,000th) to six ten-thousandths (6/10,000th) of a share of Preferred Stock; (ii) the Exercise Price of each Right was increased from $6.00 to $36.00; (iii) the Redemption Price of each Right was increased from $0.0001 to $0.0006; and (iv) each share of common stock outstanding has had issued to it one Right. About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. The Company reported a net loss of $82.64 million on $319,000 of revenue for the 12 months ended Dec. 31, 2010, compared with a net loss of $82.64 million on $80,000 of total revenue during the same period in 2009. The Company's balance sheet at March 31, 2011 showed $60.92 million in total assets, $43.11 million in total liabilities, $13.46 million in common stock purchase warrants and $4.35 million total shareholders' equity. Marcum LLP, in San Francisco, Calif., expressed substantial doubt about the Company's ability to continue as a going concern in its audit reports for the financial statements for 2009 and 2010. The independent auditors noted that the Company has incurred losses since its inception, and has a working capital deficiency of approximately $14.2 million at Dec. 31, 2010. CENTRAL PACIFIC: Fitch Upgrades IDRs to 'B+' from 'B-' ------------------------------------------------------ Fitch Ratings has upgraded the long-term Issuer Default Ratings (IDRs) of Central Pacific Financial Corp. (CPF) and its banking subsidiary, Central Pacific Bank to 'B+' from 'B-'. Fitch has also withdrawn the 'F' Individual rating assigned to both entities and assigned a new Individual rating of 'D'. The Rating Outlook is Positive. The upgrade of CPF's IDR reflects the considerable enhancement of its capital position, reduction in problem credits, as well as the company's return to profitability. CPF's capital raise in February 2011 significantly bolstered its regulatory capital position. With Tier 1 Leverage and Total Capital ratios at March 31, 2011 of 12.64% and 22.67%, respectively, the company's capital ratios significantly exceed the enhanced levels (10% Tier 1 Leverage ratio and 12% Total Risk-Based ratio) previously required by the Consent Order with the FDIC and the Hawaii Division of Financial Services, which was lifted on May 11, 2011 and replaced with a less restrictive Memorandum of Understanding (MOU). Notably, the new MOU reduces the required Tier 1 leverage ratio standard at the bank subsidiary to 8% and removed the enhanced requirement for the Total Risk-Based ratio. That said, Fitch views CPF's significantly replenished capital position as necessary against the remaining risk on its balance sheet. CPF has significantly reduced problem assets, with NPAs down over 40% from a year ago and while non-performing assets are still elevated at 13.14% and commercial real estate remains a significant concentration, the loss content in the portfolio has been materially reduced and was a key driver of the company's return to profitability during 1Q'11. The Positive Outlook mainly reflects that the company's current capital and reserve base should be sufficient to absorb expected future losses in the portfolio. For CPF's ratings to move higher, the company will still need to make considerable strides toward reducing problem credits, as well as demonstrate sustained profitability and maintain an enhanced capital base, a scenario Fitch believes is possible over the next 12 to 18 months. However, if credit problems persist causing the company to incur losses of a magnitude that starts to materially erode its capital position, CPF's ratings would face downward pressure. The withdrawal of the 'F' Individual rating (assigned Feb. 23, 2011) reflects the temporary nature of the rating (as per Fitch's Global Financial Institutions Rating Criteria), and was assigned to signify a company that has defaulted or in Fitch's opinion CPF would have defaulted if it had not received some form of external support namely the capital infusion and the U.S. Treasury's willingness to convert its $135 million of CPP preferred stock into common shares on a discounted basis to facilitate the recapitalization. The assignment of the 'D' Individual rating is Fitch's assessment of the company on a standalone basis following its recapitalization. The ratings on CPF's trust preferred securities remain at 'C' given that these issues remain in deferral status. Until CPF begins to pay dividends on its trust preferred securities and the deferred dividends are brought current, the ratings on these issues will remain at 'C'. Fitch has also maintained a 'RR6' Recovery Rating on these issues, as Fitch's recovery analysis still indicates recovery prospects below 10%. Headquartered in Honolulu, HI, CPF operates 34 branches. As of March 31, 2011, CPF had almost $4 billion in assets. Fitch has upgraded these ratings with a Positive Rating Outlook: Central Pacific Financial Corp -- Long-term IDR to 'B+' from 'B-'. Central Pacific Bank -- Long-term IDR to 'B+' from 'B-'; -- Long-term deposits to 'BB-/RR3' from 'B/RR3'. Fitch has withdrawn 'F' individual ratings and subsequently assigned the following Individual ratings: Central Pacific Financial Corp -- Individual 'D'. Central Pacific Bank -- Individual 'D'. Fitch has affirmed these ratings: Central Pacific Financial Corp -- Short-term IDR at 'B'; -- Support at '5'; -- Support floor at 'NF'. Central Pacific Bank -- Short-term IDR at 'B'; -- Short-term deposits at 'B'; -- Support at '5'; -- Support floor at 'NF'. CPB Capital Trust I, II, & IV CPB Statutory Trust III & V -- Trust Preferred Securities at 'C/RR6' CHAMPION ENTERPRISES: Plan of Liquidation Declared Effective ------------------------------------------------------------ BankruptcyData.com reports that Champion Enterprises' Second Amended Joint Chapter 11 Plan of Liquidation became effective. The Debtors sold substantially all of their Assets to Champion Enterprises Holdings, LLC and New Champion Homes, Inc. The Debtors paid, from the proceeds of the sale, amounts owed to prepetition lenders and the DIP lenders. Under the Plan, the Debtors will transfer certain causes of action to a Creditor Trust that will administer and liquidate them for the benefit of general unsecured Creditors. Any recovery to general unsecured creditors will be entirely dependant on the results of any prosecution of litigation. About Champion Enterprises Troy, Michigan-based Champion Enterprises, Inc., and its subsidiaries were international manufacturers of factory-built homes and steel-framed modular buildings, with operations in the United States, Canada and the United Kingdom. Buildings constructed by Champion and its subsidiaries consisted of both single and multi-module units designed for either commercial or residential purposes. Champion products ranged from single-module HUD-Code homes to sophisticated commercial structures such as hotels. The Company filed for Chapter 11 protection on Nov. 15, 2009 (Bankr. D. Del. Case No. 09-14019). The Company's affiliates also filed separate bankruptcy petitions. James E. O'Neill, Esq., Laura Davis Jones, Esq., Mark M. Billion, Esq., Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, assist Champion in its restructuring effort. The Company disclosed $576,527,000 in asset and $521,337,000 in liabilities as of October 3, 2009. In March 2010, Champion Enterprises received final court approval to sell its domestic and international operations. An investor group consisting of affiliates of Centerbridge Partners, L.P., MAK Capital Fund LP and Sankaty Advisors, LLC invested $50 million in new capital to support the operations and growth initiatives of the new company. The transaction was supported by a group of Champion's existing lenders who, together with the lead investors, agreed to exchange 100% of existing debt under Champion's pre- petition and DIP senior secured credit agreements for equity in the new company and a $40 million senior secured five year note. Champion's bankruptcy case has been renamed CEI Liquidation Estates following the closing of the sale. CHRYSLER LLC: Repays Loans to U.S. and Canadian Governments ----------------------------------------------------------- Jeff Bennett, writing for Dow Jones Newswires, reports that Chrysler Group LLC said it made payments of $5.9 billion to the U.S. Treasury and $1.7 billion to Canada to retire the loans it received during its bankruptcy. Including interest, Chrysler said it has paid the U.S. Treasury $6.5 billion and Canada $2 billion. Dow Jones also reports that Fiat SpA increased its stake in Chrysler to 46% from 30% with a $1.3 billion investment. The move made it Chrysler's largest shareholder, just ahead of a union health-care trust. The Troubled Company Reporter on May 20, 2011, reported that Chrysler completed a $7.5 billion financing, which it used to repay the loans. About Chrysler Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. Chrysler LLC and 24 affiliates on April 30, 2009, sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of Dec. 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. As part of the deal, Fiat acquired a 20% equity interest in Chrysler Group. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. The U.S. and Canadian governments provided Chrysler with $4.5 billion to finance its bankruptcy case. Those loans are to be repaid with the proceeds of the bankruptcy estate's liquidation. In April 2010, the Bankruptcy Court confirmed Chrysler's repayment plan. COLONIAL BANCGROUP: Court Denies Chapter 11 Plan Confirmation ------------------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court issued an order denying confirmation of Colonial BancGroup's Second Amended Chapter 11 Plan of Reorganization, dated Feb. 21, 2011, and amended on March 3, 2011. Among other things, BData says, the Court's memorandum of opinion explains, "The debtor offered an exhibit outlining one scenario under which compensation to the plan trustee would not exceed the compensation to a chapter 7 trustee. The exhibit assumes that the FDIC will have a $300 million replacement claim in this case. However, if that claim does not materialize, the plan trustee's fee, under the same scenario, would exceed a chapter 7 trustee's maximum fee by almost double." 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 Aug. 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 Aug. 25, 2009. W. Clark Watson, Esq., at Balch & Bingham LLP, and Rufus T. Dorsey IV, Esq., at Parker Hudson Rainer & Dobbs LLP, serve as counsel to the Debtor. The Debtor disclosed $45 million in total assets and $380 million in total liabilities as of the Petition Date. In September 2009, an Official Committee of Unsecured Creditors was formed consisting of three members, Fine Geddie & Associates, The Bank of New York Trust Company, N.A., and U.S. Bank National Association. Burr & Forman LLP and Schulte Roth & Zabel LLP serve as co-counsel for the Committee. Colonial Brokerage, a wholly owned subsidiary of Colonial BancGroup, filed for Chapter 7 protection with the U.S. Bankruptcy Court in the Middle District of Alabama in June 2010. Susan S. DePaola serves as Chapter 7 trustee. COMCAM INTERNATIONAL: Posts $554,000 First Quarter Net Loss ----------------------------------------------------------- ComCam International, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $553,995 on $1.4 million of revenues for the three months ended March 31, 2011, compared with a net loss of $285,949 on $947,540 of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed $2.5 million in total assets, $2.1 million in total liabilities, and stockholders' equity of $350,911. As reported in the TCR on April 21, 2011, Pritchett, Siler & Hardy, P.C., in Salt Lake City, Utah, expressed substantial doubt about ComCam International's ability to continue as a going concern, following the Company's2010 financial results. The independent auditors noted that the Company has incurred substantial losses and has a working capital deficit. A complete text of the Form 10-Q is available for free at: http://is.gd/wf60zN West Chester, Pa.-based ComCam International, Inc. has two operating divisions. One focuses on product development, manufacturing and sales world-wide while the other focuses on the integration of command and control systems for correctional facilities across the United States. The Company's product division has developed a video fusion platform that adds next generation, real-time interactive command- and-control capabilities to legacy security systems for greater performance at lower cost. The Company's systems division acts as the general contractor or plays a key support role to leading government integrators. The Company's focus to date has been on installing and integrating security systems in juvenile to super-maximum security correctional facilities. COMMERCIAL TRAVELERS: A.M. Best Cuts FSR to 'B'; Outlook Stable --------------------------------------------------------------- A.M. Best Co. has downgraded the financial strength rating to B (Fair) from B+ (Good) and issuer credit rating to "bb" from "bbb-" of Commercial Travelers Mutual Insurance Company (Commercial Travelers) (Utica, NY). The outlook has been revised to stable from negative. The rating downgrades reflect Commercial Travelers' reported operating losses from the last two years as well as the resulting deterioration of its risk-adjusted capital position. The company continues to reprice underperforming student accident and medical groups through rate increases implemented over the last two years. The increase in occurrences, as well as an increased average cost per claim, has negatively impacted Commercial Travelers' claims experience. In addition, there is continued uncertainty regarding the impact of the Patient Protection and Affordable Care Act (PPACA) on the company's core student medical business. Commercial Travelers' college and K-12 segments represented 90% of its 2010 premium income. A.M. Best notes that Commercial Travelers has incorporated numerous expense savings initiatives into its business strategy. Additionally, the company maintains a very conservative investment philosophy; however, returns have been modest. COMSTOCK MINING: Incurs $2.38-Mil. First Quarter Net Loss ---------------------------------------------------------- Comstock Mining Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $2.38 million on $0 of revenue for the three months ended March 31, 2011, compared with a net loss of $2.63 million on $0 of revenue for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $33.17 million in total assets, $10.89 million in total liabilities and $22.28 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/o7jrib About Comstock Mining Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the historic Comstock district. The Company began acquiring properties in the Comstock in 2003. Since then, the Company has consolidated a substantial portion of the Comstock district, secured permits, built an infrastructure and brought the exploration project into test mining production. The Company continues acquiring additional properties in the Comstock district, expanding its footprint and creating opportunities for exploration and mining. The goal of the Company's strategic plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations by 2011, with annual production rates of 20,000 gold equivalent ounces. The Company reported a net loss of $60.32 million for the year ended Dec. 31, 2010, compared with a net loss of $6.06 million during the prior year. The Company had no revenues from operations for the years ended Dec. 31, 2010 and 2009. CONSTAR INT'L: Court Confirms Amended Plan of Reorganization ------------------------------------------------------------ BankruptcyData.com reports that the U.S. Bankruptcy Court signed an order confirming Constar International's First Amended Joint Chapter 11 Plan of Reorganization. BData says the Plan provides for: * $15 million of indebtedness under the Debtors' D.I.P. facility may be rolled over (at the D.I.P. facility providers' election) into the financing available to the Debtors post-emergence; * $100 million of secured indebtedness under the floating rate notes and floating rate note indenture will be converted into (i) $70 million in shareholder notes and (ii) 100% of the new overage securities; * the remaining $121.4 million of indebtedness under the floating rate notes and floating rate note indenture and all other general unsecured claims will be converted into 100% of the new common stock (subject to dilution by the management incentive plan), which new common stock will be distributed to the holders of such claims pro rata and equity interests in Constar International will be extinguished. About Constar International Philadelphia, Pennsylvania-based Constar International Inc. -- http://www.constar.net/-- produces and supplies polyethylene terephthalate plastic containers for food and beverages. Constar filed for Chapter 11 protection in December 2008 (Bankr. D. Del. Lead Case No. 08-13432), with a pre-negotiated Chapter 11 plan. The plan, which reduced Constar's debt load by roughly $175 million, became effective on May 29, 2009. Attorneys at Bayard P.A., and Wilmer Cutler Pickering Hale and Dorr LLP represented the Debtor in the case. Due to operating losses caused by a significant decline in demand for its products from Pepsi-Cola Advertising and Marketing Inc. and other customers, Constar and its affiliates returned to Chapter 11 protection on Jan. 11, 2011 (Bankr. D. Del. Case No. 11-10109), with a Chapter 11 plan negotiated with holders of 75% of the holders of $220 million in senior secured floating-rate notes. Andrew Goldman, Esq., and Dennis Jenkins, Esq., at Wilmer Cutler Pickering Hale and Dorr LLP, serve as the Debtors' general bankruptcy counsel. Jamie Lynne Edmonson, Esq., and Neil B. Glassman, Esq., at Bayard, P.A., serve as co-counsel to the Debtors. PricewaterhouseCoopers serves as the Debtors' independent auditors and accountants. Kurtzman Carson Consultants LLC serves as the Debtors' claims agent. The Debtors disclosed $418 million in total assets and $414 million in total debts as of Sept. 30, 2010. Constar filed for Chapter 11 protection with a pre-arranged debt-for-equity exchange, expected to be completed by mid-2011. The Company and holders of more than 75% of its senior secured floating- rate notes agreed on a restructuring plan that would reduce debt by as much as $150 million. CULLIGAN INTERNATIONAL: S&P Junks Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Culligan International Co., including its corporate credit rating to 'CCC+' from 'B-'. "At the same time, we revised our recovery ratings on the company's first-lien credit facilities to '4' from '3'. The negative outlook reflects the company' continued very weak operating performance, as well as uncertainty about Culligan's ability to meet future liquidity needs given its significant refinancing risk within the next 11-19 months," S&P stated. "The downgrade reflects Culligan's continued weak financial performance, which has resulted in very weak credit measures," said Standard & Poor's credit analyst Jean Stout. "We believe that the company will be challenged to improve its financial results amid continued weak economic conditions, including its business mix shift to lower margin equipment rentals. In addition, Culligan faces significant near-term refinancing risk from its entire capital structure, all of which matures within the next two years." The company's revolving credit facility matures in May 2012; its first-lien term loans mature in November 2012; and its second-lien term loan matures in May 2013. Standard & Poor's ratings on Culligan reflect the company's very highly leveraged financial profile, which includes significant refinancing risk. "We believe Culligan's business profile is vulnerable, characterized by its weakened operating performance, and participation in a highly competitive, fragmented, and mature water treatment industry, which is susceptible to unfavorable economic conditions," said Ms. Stout. The rating outlook is negative, reflecting Culligan's significant refinancing risk, as well as Standard & Poor's belief that the company's financial performance will continue to be hurt by the lingering weak macroeconomic environment. CYTOMEDIX INC: Posts $1.4MM Loss in Q1 2011; Warns of Bankruptcy ---------------------------------------------------------------- Cytomedix, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.41 million on $1.37 million of revenues for the three months ended March 31, 2011, compared with a net loss of $1.07 million on $178,734 of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed $8.86 million in total assets, $7.26 million in total liabilities, and a stockholders' deficit of $1.60 million. "In the event the Company is unable to successfully sustain and increase product sales and obtain additional capital, it is unlikely that the Company will have sufficient cash flows and liquidity to finance its business operations as currently contemplated," the Company said in the filing. "Accordingly, if the Company determines it will not be able to obtain the necessary financing to address its working capital needs for a reasonable period into the future, it may pursue alternative paths forward for the Company. These paths could include, but not be limited to, sale of the Company or its assets, merger, organized wind-down, going private/dark, fundamental shift in its strategic plan (e.g. abandon commercialization strategy and focus exclusively on licensing), bankruptcy, etc." As reported in the TCR on April 5, 2011, PricewaterhouseCoopers LLP, in Baltimore, expressed substantial doubt about Cytomedix, Inc.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses from operations and has insufficient liquidity to fund its ongoing operations. A complete text of the Form 10-Q is available for free at: http://is.gd/pu897k Gaithersburg, Md.-based Cytomedix, Inc., develops, sells, and licenses regenerative biological therapies intended to aid the human body in regenerating/healing itself, to primarily address the areas of wound care and orthopedic surgery. DA-LITE SCREEN: S&P Withdraws 'B' CCR on Tender Offer Completion ---------------------------------------------------------------- Standard & Poor's Rating Services withdrew its ratings, including its 'B' corporate credit rating on Warsaw, Ind.-based Da-Lite Screen Company Inc. at the company's request. Da-Lite completed a tender offer on its 12.5% senior unsecured notes due 2015. These notes are no longer registered with the SEC. DAIS ANALYTIC: Posts $3.3 Million Net Loss in First Quarter ----------------------------------------------------------- Dais Analytic Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $3.3 million on $858,694 of revenues for the three months ended March 31, 2011, compared with a net loss of $2.0 million on $407,312 of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed $3.3 million in total assets, $11.4 million in total liabilities, and a stockholders' deficit of $8.1 million. As reported in the TCR on April 6, 2011, Cross, Fernandez & Riley LLP, in Orlando, Fla., expressed substantial doubt about Dais Analytic's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred significant losses since inception and has a working capital deficit and stockholders' deficit of $2,861,448 and $6,722,092 at Dec. 31, 2010. A full-text copy of the Form 10-Q is available for free at: http://is.gd/IPc14a Dais Analytic Corporation Dais Analytic Corporation, a New York corporation, has developed and is commercializing applications using its nano-structure polymer technology. The first commercial product is an energy recovery ventilator ("ERV") (cores and systems) for use in commercial Heating, Ventilating, and Air Conditioning (HVAC) applications. In addition to direct sales, the Company licenses its nano-structured polymer technology to strategic partners in the aforementioned application and is in various stages of development with regard to other applications employing its base technologies. The Company was incorporated in April 1993 with its corporate headquarters located in Odessa, Florida. DAIS ANALYTIC: Leonard Samuels Discloses 32.9% Equity Stake ----------------------------------------------------------- In a Schedule 13D filing with the U.S. Securities and Exchange Commission, Leonard Samuels disclosed that he beneficially owns 13,478,165 shares of common stock of Dais Analytic Corporation representing 32.9% of the shares outstanding. Leah Kaplan-Samuels also owns 3,629,696 shares. A full-text copy of the regulatory filing is available for free at http://is.gd/R5iLOe About Dais Analytic Odessa, Fla.-based Dais Analytic Corporation has developed and patented a nano-structure polymer technology, which is being commercialized in products based on the functionality of these materials. The initial product focus of the Company is ConsERV, an energy recovery ventilator. The Company also has new product applications in various developmental stages. The Company reported a net loss of $1.43 million on $3.34 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $7.12 million on $1.53 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.97 million in total assets, $8.69 million in total liabilities and $6.72 million in total stockholders' deficit. Cross, Fernandez & Riley LLP, in Orlando, Fla., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company has incurred significant losses since inception and has a working capital deficit and stockholders' deficit of $2,861,448 and $6,722,092 at Dec. 31, 2010. DEEP DOWN: Delays Filing of First Quarter Form 10-Q --------------------------------------------------- Deep Down, Inc., notified the U.S. Securities and Exchange Commission that it is unable to file its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011, by the prescribed date of May 16, 2011, without unreasonable effort or expense because the Company has experienced delays in obtaining all necessary information for completing the required financial statements and Management's Discussion and Analysis for the Report as of the May 16, 2011, due date. The Company expects to have the necessary information in possession with sufficient time to incorporate within the Report by the deadline of the extended time frame for filing. About Deep Down Houston, Tex.-based Deep Down, Inc. -- http://www.deepdowncorp.com/-- is an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services, serving the worldwide offshore exploration and production industry. The Company reported a net loss of $17.41 million on $42.47 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $16.78 million on $28.81 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $33.62 million in total assets, $10.53 million in total liabilities, and $23.09 million in total stockholders' equity. During the Company's fiscal years ended Dec. 31, 2010 and 2009, the Company has supplemented the financing of its capital needs through a combination of debt and equity financings. Most significant in this regard has been the Company's debt facility the Company has maintained with Whitney National Bank. The Company's loans outstanding under the Amended and Restated Credit Agreement with Whitney become due on April 15, 2012. The Company will need to raise additional debt or equity capital or renegotiate the existing debt prior to such date. The Company is currently in discussions with several lenders who have expressed interest in refinancing its debt. The Company's plan is to refinance the outstanding indebtedness under the Restated Credit Agreement or seek terms with Whitney that will provide an extension of such Restated Credit Agreement along with additional liquidity. However, the Company cannot provide any assurance that any financing will be available to it on acceptable terms or at all. If the Company is unable to raise additional capital or renegotiate its existing debt, this would have a material adverse impact on the Company's business or would raise substantial doubt about its ability to continue as a going concern. In addition, as of Dec. 31, 2010, the Company was not in compliance with the financial covenants under the Restated Credit Agreement. On March 25, 2011 the Company obtained a waiver for these covenants as of Dec. 31, 2010. DELTATHREE, INC: Reports $28,000 Net Income in First Quarter ------------------------------------------------------------ deltathree, Inc., filed its quarterly report on Form 10-Q, reporting net income of $28,000 on $3.78 million of revenues for the three months ended March 31, 2011, compared with a net loss of $472,000 on $3.07 million of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed $1.86 million in total assets, $4.44 million in total liabilities, and a stockholders' deficit of $2.58 million. As reported in the TCR on March 23, 2011, Brightman Almagor Zohar & Co., in Tel Aviv, Israel, expressed substantial doubt about deltathree, Inc.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's recurring losses from operations and deficiency in stockholders' equity. A complete text of the Form 10-Q is available for free at: http://is.gd/Vt6EtZ Based in New York, deltathree, Inc. (OTC QB: DDDC) -- http://www.deltathree.com/-- is a global provider of video and voice over Internet Protocol (VoIP) telephony services, products, hosted solutions and infrastructures for service providers, resellers and direct consumers. DOLPHIN ENTERPRISES: Case Summary & 4 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Dolphin Enterprises, LLC fka Dolphin Amusement Enterprises, LLC 1945 S. Ocean Drive, Apartment 2612 Hallandale, FL 33009 Bankruptcy Case No.: 11-23821 Chapter 11 Petition Date: May 20, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (Fort Lauderdale) Judge: John K. Olson Debtor's Counsel: Richard R. Robles, Esq. LAW OFFICES OF RICHARD R. ROBLES, P.A. 905 Brickell Bay Drive, #228 Miami, FL 33131 Tel: (305) 755-9200 E-mail: rrobles@roblespa.com Scheduled Assets: $3,070,001 Scheduled Debts: $6,329,518 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flsb11-23821.pdf The petition was signed by Rolando Rodriguez, managing member. DOUGLAS SQUARE: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Douglas Square LP 650 Douglas Drive, Suite 113-120 Oceanside, CA 92058 Bankruptcy Case No.: 11-08328 Chapter 11 Petition Date: May 19, 2011 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Judge: Laura S. Taylor Debtor's Counsel: Alan L. Geraci, Esq. GERACI & LOPEZ 817 W. San Marcos Boulevard San Marcos, CA 92078 Tel: (619) 231-3131 Fax: (619) 374-1911 E-mail: alan@gerlop.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/casb11-08328.pdf The petition was signed by Raad Mikhail of GP Invesco LLC, managing member. E*TRADE FINANCIAL: DBRS Assigns 'B' Rating to Unsec. Sr. Notes -------------------------------------------------------------- DBRS Inc. (DBRS) has assigned a rating of B (high), with a Negative trend, to the unsecured Senior Notes due 2016 (the Notes) issued by E*TRADE Financial Corporation (E*TRADE). The assigned rating is consistent with the standard DBRS methodology, which rates E*TRADE's Issuer & Senior Debt at B (high) with a Negative trend. E*TRADE intends to use the net proceeds of the Notes issuance to redeem its currently outstanding 7 3/8% Senior Notes due 2013. The successful completion of these transactions should extend E*TRADE's long-term debt maturity profile and reduce corporate interest payments. DBRS views E*TRADE as taking appropriate steps to build up its profitability, while also improving its funding profile. E-DEBIT GLOBAL: Initiates Switching Transition to Digital --------------------------------------------------------- E-Debit Global Corporation and its wholly owned subsidiary Westsphere Systems Inc. specializing in electronic payment processing has commenced transition of its communication network for its financial switching operations from analog to digital. Overview "Over the past 14 months WSI, our electronic payment processing unit has been working with our communication partner Shaw Communications to transition our switching communication from analog to digital (copper telephone lines to fiber broadband). Our WSI business unit offers debit and credit payment processing solutions and connectivity to the Canadian Interac Network and Credit Facilitators. Our initial introduction of our ATM network to our fiber communication system has been exceptional. Our experience to date has met the challenge of the new requirements related to chip based card product processing and EMV protocols and at the same time has increase speed of transaction processing by a minimum of 25%" advised WSI Chief Operating Officer Sonja Dreyer. "Once we transition over our ATM and POS estates we will be able to expand our focus towards our custom payment solutions across a wide range of communication protocols including private-label, travel & entertainment and fleet cards as well as expanding our reach within the Canadian ATM and POS marketplace with contracted switching services to the Canadian ISO ("Independent Sales Organizations"). With this transition we are now in total control of our communication protocols and significantly reduced our reliance on non affiliated contracted managed services to connect, operated and service our switching platform and to give our guarantee of the best of industry transaction processing in the most secure, stable, reliable and high performance environment to our existing client base and our future ISO potentials which we are going to aggressively pursue." Ms. Dreyer stated. About E-Debit Global Corporation E-Debit Global Corporation (WSHE) is a financial holding company in Canada at the forefront of debit, credit and online computer banking. Currently, the Company has established a strong presence in the privately owned Canadian banking sector including Automated Banking Machines (ABM), Point of Sale Machines (POS), Online Computer Banking (OCB) and E-Commerce Transaction security and payment. E-Debit maintains and services a national ABM network across Canada and is a full participating member of the Canadian INTERAC Banking System. The Company reported a net loss of $1.15 million on $3.97 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.28 million on $3.64 million of revenue during the prior year. Going Concern The Company has incurred net losses for the three months ended March 31, 2011, and 2010, and as of March 31, 2011, had a working capital deficit of $1,429,007 and an accumulated deficit of $400,956. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. As reported by the TCR on April 15, 2011, Cordovano and Honeck LLP, in Englewood, Colorado, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses, has a working capital deficit at Dec. 31, 2010, and has an accumulated deficit of $4,457,079 as of Dec. 31, 2010. The Company's balance sheet at March 31, 2011, showed $1.67 million in total assets, $2.07 million in total liabilities and a $400,956 total stockholders' deficit. ENCINO CORPORATE: Files Schedules of Assets & Liabilities --------------------------------------------------------- Encino Corporate Plaza, L.P., filed with the U.S. Bankruptcy Court for the Central District of California, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $34,000,000 B. Personal Property $268,167 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $32,749,981 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $663,777 ----------- ----------- TOTAL $34,268,167 $33,413,759 About Encino Corporate Encino Corporate Plaza, L.P., filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-14917) on April 20, 2011. David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, California, serves as the Debtor's counsel. The Debtor estimated its assets and debts at $10 million to $50 million. ENCINO CORPORATE: Section 341(a) Meeting Scheduled for June 1 ------------------------------------------------------------- The U.S. Trustee for Region 16 will convene a meeting of Encino Corporate Plaza, L.P.'s creditors on June 1, 2011, at 2:00 p.m., at 21051 Warner Center Lane, #105, Woodland Hills, in California. 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. About Encino Corporate Encino Corporate Plaza, L.P., filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-14917) on April 20, 2011. David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, California, serves as the Debtor's counsel. The Debtor estimated its assets and debts at $10 million to $50 million. ENCINO CORPORATE: Taps Levene Neale as Bankruptcy Counsel --------------------------------------------------------- Encino Corporate Plaza, L.P., seeks bankruptcy court permission to hire as bankruptcy counsel: David L. Neale, Esq. Juliet Y. Oh, Esq. LEVENE NEALE BENDER RANKIN & BRILL LLP 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 Fax: (310) 229-1244 E-mail: dln@lnbrb.com The firm will, among other things: (a) advise the Debtor with regard to the requirements of the Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules and the Office of the United States Trustee as they pertain to the Debtor; (b) advise the Debtor with regard to certain rights and remedies of its bankruptcy estate and the rights, claims and interests of creditors; (c) represents the Debtor in any proceeding or hearing in the Bankruptcy Court involving its estate unless the Debtor is represented in such proceeding or hearing by other special counsel; and (d) conducts examinations of witnesses, claimants or adverse parties and representing the Debtor in any adversary proceeding except to the extent that any such adversary proceeding is in an area outside of LNBYB's expertise or which is beyond LNBYB's staffing capabilities. LNBYB will bill its time for its representation of the Debtor on an hourly basis in accordance with LNBYB's standard hourly billing rates: Attorneys Rate --------- ---- David W. Levene, Esq. $595 David L. Neale, Esq. 595 Ron Bender, Esq. 595 Martin J. Brill, Esq. 595 Timothy J. Yoo, Esq. 595 Edward M. Wolkowitz, Esq. 595 David B. Golubchik, Esq. 575 Monica Y. Kim, Esq. 550 Beth Ann R. Young, Esq. 550 Daniel H. Reiss, Esq. 550 Irving M. Gross, Esq. 550 Philip A. Gasteier, Esq. 550 Jacqueline L. James, Esq. 495 Juliet Y. Oh, Esq. 495 Michelle S. Grimberg, Esq. 495 Todd M. Arnold, Esq. 495 Todd A. Frealy, Esq. 495 Anthony A. Friedman, Esq. 435 Carmela T. Pagay, Esq. 435 Krikor J. Meshefejian, Esq. 375 John-Patrick M. Fritz, Esq. 375 Gwendolen D. Long, Esq. 345 Lindsey L. Smith, Esq. 275 Paraprofessionals 195 During the one-year period prior to Debtor's Chapter 11 filing, the Debtor paid $60,000 to LNBYB for legal services in contemplation of and in connection with the Debtor's Chapter 11 case, inclusive of the Debtor's $1,039 chapter 11 bankruptcy filing fee. In addition to the Retainer, the Debtor's principals, M. Aaron Yashouafar and Solymon Yashouafar have agreed, subject to the approval of the Court, to make three monthly payments of $15,000 each to LNBYB on May 15, 2011, June 15, 2011 and July 15, 2011, for a total of $45,000. Mr. Neale attests that LNBYB does not represent any interest adverse to the Debtor's estate. LNBYB holds no interest adverse to the Debtor's estate and is a "disinterested person" as that phrase is defined in section 101(14) of the Bankruptcy Code. About Encino Corporate Encino Corporate Plaza, L.P., filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-14917) on April 20, 2011. David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, California, serves as the Debtor's counsel. The Debtor estimated its assets and debts at $10 million to $50 million. ENCORIUM GROUP: Delays Filing of First Quarter Financials --------------------------------------------------------- Encorium Group, Inc., could not file its quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2011, within the prescribed period without unreasonable effort and expense because during the fiscal quarter ended March 31, 2011, the Company's management devoted considerable time and resources to the preparation of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended Sept. 30, 2010, and Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2010. Management's efforts related to the preparation of these filings have required a significant amount of management time and other Company resources that normally would be devoted to the preparation of the Form 10-Q and related matters during this period of time. For these reasons, the Company's unaudited condensed consolidated financial statements for the fiscal quarter ended March 31, 2011, remain subject to review and further analysis at this time. The Company anticipates that the report of the independent registered public accounting firm on the Company's consolidated financial statements for the fiscal year ended Dec. 31, 2010, that will be included in the Form 10-K is likely to contain an explanatory paragraph indicating substantial doubt about the Company's ability to continue as a going concern. About Encorium Group Encorium Group, Inc., is a clinical research organization that engages in the design and management of complex clinical trials for the pharmaceutical, biotechnology and medical device industries. The Company was initially incorporated in August 1998 in Nevada. In June 2002, the Company changed its state of incorporation to Delaware. In November 2006, it expanded its international operations with the acquisition of its wholly-owned subsidiary, Encorium Oy, a clinical research organization founded in 1996 in Finland, which offers clinical trial services to the pharmaceutical and medical device industries. Since 2006 the Company has conducted substantially all of its European operations through Encorium Oy and its wholly-owned subsidiaries located in Denmark, Estonia, Sweden, Lithuania, Romania, Germany and Poland. On July 16, 2009 the Company sold substantially all of the assets relating to the Company's US line of business to Pierrel Research USA, Inc., the result of which the Company no longer has any employees or significant operations in the United States. Due to this sale, for the three and nine months ended Sept. 30, 2010 and 2009, the results of the U.S. business have been presented as discontinued operations in the consolidated condensed financial statements. The Company's balance sheet at Sept. 30, 2010, showed $9.9 million in total assets, $14.3 million in total liabilities, and a stockholders' deficit of $4.4 million. As reported by TCR on May 11, 2011, Asher & Company, Ltd., in Philadelphia, following its audit of Encorium Group's consolidated financial statements for the fiscal year ended Dec. 31, 2009, said that the Company's recurring losses from operations, current available cash, and anticipated level of capital requirements necessary to fund its current operations raise substantial doubt about the Company's ability to continue as a going concern. ENERJEX RESOURCES: Delays Filing of First Quarter Form 10-Q ----------------------------------------------------------- Enerjex Resources, Inc., informed the U.S. Securities and Exchange Commission that it will be late in filing its quarterly report on Form 10-Q for the period ended March 31, 2011. As previously outlined in the Company's Annual Report on Form 10-K for the nine-month transition period ended Dec. 31, 2010, the Company completed the acquisition of certain business assets in transactions effective Dec. 31, 2010. The Company's management has been focused on business issues related to the integration of these assets to the Company's business, and requires additional time to compile and review the financial results and prepare its discussion and analysis for the three-month period ended March 31, 2011, to ensure adequate disclosure is made in the Company's Quarterly Report on Form 10-Q for the period. In addition, Company's auditors need additional time to complete their review of the Company's financial statements for the period. This delay could not be eliminated without unreasonable effort and expense. About EnerJex Resources Overland Park, Kansas-based EnerJex Resources, Inc., formerly known as Millennium Plastics Corporation, is an oil and natural gas acquisition, exploration and development company. The Company's oil and natural gas acquisition and development activities are currently focused in Eastern Kansas. The Company's balance sheet at Sept. 30, 2010, showed $6.41 million in total assets, $14.05 million in total liabilities, and a stockholders' deficit of $7.63 million. As reported in the Troubled Company Reporter on July 21, 2010, Weaver & Martin, LLC, in Kansas City, Missouri, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for the year ended March 31, 2010. The independent auditors noted that the Company suffered recurring losses and had negative cash flows ENVIRONMENTAL SOLUTIONS: Warns of Bankruptcy or Insolvency ---------------------------------------------------------- Environmental Solutions Worldwide, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.06 million on $2.05 million of sales for the three months ended March 31, 2011, compared with a net loss of $4.89 million on $2.25 million of sales for the same period last year. The Company's balance sheet at March 31, 2011, showed $8.07 million in total assets, $10.93 million in total liabilities, and a stockholders' deficit of $2.86 million. Bankruptcy Warning "We may have to raise additional funds, which may be costly, to operate our business and provide other needed capital, and we may be unable to do so on favorable terms or at all," the Company said in the filing." "If we are unable to access the capital and commercial bank credit markets, obtain additional equity capital, sell assets or otherwise raise additional financing in a timely manner, our financial condition and ability to operate our business will be significantly affected and one possible outcome may be bankruptcy or insolvency." As reported in the TCR on April 6, 2011, MSCM LLP, in Toronto, Canada, expressed substantial doubt about Environmental Solutions' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's experience of negative cash flows from operations and its dependency upon future financing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/PjZdBQ Ontario, Canada-based Environmental Solutions Worldwide, Inc., is engaged through its wholly owned subsidiaries in the design, development, manufacturing and sales of environmental technologies and emission testing service. The Company is currently focused on the international medium duty and heavy duty diesel engine market for on-road and off-road vehicles as well as the utility engine, mining, marine, locomotive and military industries. The Company also offers engine and after treatment emissions verification testing and certification services. EVERGREEN ENERGY: Provides Updates on 2011 Corporate Objectives --------------------------------------------------------------- Evergreen Energy Inc. released a letter to its shareholders from the Executive Chairman of the Board on May 17, 2011: Dear Shareholders, Earlier this year, I laid out a number of key objectives that we have set ourselves, including the provision of regular updates, and I would like to discuss our progress on these initiatives, particularly as they relate to the development of our K-Fuel(R) technology. By way of reminder, our most significant corporate objectives for 2011, and noted in my open letter to shareholders dated March 15 2011, include: 1. Re-opening our K-Fuel testing facility in Wyoming; 2. Completing our joint venture with WPG Resources by the end of this summer; and 3. Establishing an additional customer agreement to produce upgraded coal from K-Fuel. We announced the re-opening of our K-Fuel testing facility on Feb. 14, 2011. This was followed by our March 30, 2011, announcement of the closing of the sale of the assets of our subsidiary, Landrica Development Company, including the Fort Union plant and associated property located near Gillette, Wyoming. In parallel to this announcement, we also entered into a lease agreement to provide access to and use of the K- Fuel testing facility and certain equipment located on the Fort Union site for a period of five years at nominal cost to the company. This enabled us to capitalize on the achievement of the first of the above noted objectives, and continue expanding the capacity of our test facilities as we anticipate an increasing level of testing demand from possible customers and joint venture partners. As part of the increased testing activities at the K-Fuel test facility, WPG delivered for testing coal samples from its Penrhyn coal project south of Coober Pedy in South Australia. Evergreen is conducting thermal coal analyses and testing of these samples at the K-Fuel test facility. As announced on Feb. 2, 2011, WPG shares our objectives with respect to the upgrading of coal in the Pacific Basin region, and we look forward to working in tandem with WPG to further our efforts in developing K-Fuel into value for both our companies. As such, we are on track with our expectation to complete our joint venture with WPG by the end of this summer. In parallel, and as noted by WPG in official announcements they have made via the Australian Stock Market, WPG has continued with a drilling programme that is concentrated on the important Penrhyn deposit. The importance of a building human resources to support our efforts cannot be understated, and I am therefore pleased to report that we now have a growing technical, engineering and business development team in place that includes a senior executive who is in the process of moving to Singapore to open up our office in that location. We expect to be operational in Singapore by the end of the summer and thereby accelerate our dialogue with a number of coal companies who own or control sub bituminous reserves in Indonesia. In addition to our agreement with WPG, and in light of the global demand for cleaner coal technologies, we anticipate that an operational presence in Singapore will support our efforts to add an additional agreement for our K-Fuel technology by the end of 2011. Over the course of the last several months, we have made significant strides in improving our balance sheet, providing us with a solid foundation on which to execute on these important growth initiatives. In summary, while we are encouraged by our progress to date, my colleagues and I will continue to work actively to ensure that we meet our corporate objectives. I wish to thank all our shareholders and staff for their support during this particular time. The results of this work should start to become apparent in the coming months. With Regards, Ilyas Khan About Evergreen Energy Evergreen Energy Inc. has developed two, proprietary, patented, and green technologies: the GreenCert(TM) suite of software and services and K-Fuel(R). GreenCert, which is owned exclusively by Evergreen, is a science-based, scalable family of environmental intelligence solutions that quantify process efficiency and greenhouse gas emissions from energy, industrial and agricultural sources and may be used to create verifiable emission reduction credits. K-Fuel technology significantly improves the performance of low-rank coals, yielding higher efficiency and lowering emissions. The Company reported a net loss of $21.02 million on $403,000 of total operating revenue for the year ended Dec. 31, 2010, compared with a net loss of $58.53 million on $423,000 of total operating revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $33.50 million in total assets, $37.62 million in total liabilities, and a $4.12 million total stockholders' deficit. Hein & Associates LLP, in Denver, Colo., expressed substantial doubt about Evergreen Energy's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has had recurring cash used in operations. FIRST COMMUNITY BANK: Bank to Merge With Community Bank & Company ----------------------------------------------------------------- First Community Bank Corporation of America filed its quarterly report on Form 10-Q, reporting a net loss of $3.37 million on $3.39 million of net interest income for the three months ended March 31, 2011, compared with a net loss of $1.87 million on $3.65 million of net interest income for the same period last year. The Company's balance sheet at March 31, 2011, showed $452.31 million in total assets, $426.72 million in total liabilities, and stockholders' equity of $25.59 million. On Feb. 10, 2011, the Company and First Community Bank of America entered into an Acquisition Agreement with CBM Florida Holding Company and Community Bank & Company, under which the Bank will be merged with and into Community Bank & Company, and the Company will transfer to CBM Holdings all of the shares of First Community Lender Services, Inc. Under the terms of the Acquisition Agreement, the Company will receive $10 million in cash at closing. The Company's Board of Directors, in connection with entering into the Acquisition Agreement, approved a plan of complete liquidation and dissolution for the holding company. The Plan was approved by the holders of a majority of the outstanding shares of common stock of the Company at a special shareholders meeting held for April 11, 2011. Final regulatory approvals were received on May 10, 2011. It is presently anticipated the transactions will be consummated on May 31, 2011. Following the consummation of the transactions, the Company will be required to wind up of all of its business and distribute thereafter to its common stockholders all of its remaining cash, such distributions will take place towards the end of 2011. As reported in the TCR on April 6, 2011, Hacker, Johnson & Smith PA, in Tampa, Fla., expressed substantial doubt about First Community Bank Corporation of America's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's recent and continuing increases in non-performing assets, increases in provisions for loan losses, declining net interest margin, continuing high levels of non-interest expenses related to the credit problems and eroding regulatory capital. A complete text of the Form 10-Q is available for free at: http://is.gd/g9XvN3 Pinellas Park, Fla.-based First Community Bank Corporation of America owns all of the outstanding common stock of First Community Bank of America and First Community Lender Services, Inc. ("FCLS"). The Company's primary business activity is the operation of the Bank. The Bank is a federally-chartered stock savings bank providing a variety of banking services to small and middle market businesses and individuals through its four banking offices located in Pinellas County, two banking offices in Pasco County, three banking offices located in Charlotte County, and two offices located in Hillsborough County, Florida. FCLS had minimal activity during the three months ended March 31, 2011, and 2010. FLINT TELECOM: Delays Filing of March 31 Form 10-Q -------------------------------------------------- Flint Telecom Group, Inc., notified the U.S. Securities and Exchange Commission that its Quarterly Report on Form 10-Q for the third quarter ended March 31, 2011, could not be filed within the prescribed time period because the Company, which has a small accounting staff, has devoted substantial time and effort to recent business matters affecting it. As a result, the Company has not yet been able to finalize its Quarterly Report for the third quarter ended March 31, 2011. About Flint Telecom Overland Park, Kan.-based Flint Telecom Group, Inc. (OTC BB: FLTT) -- http://www.flinttelecomgroup.com/-- operates its business through six wholly-owned subsidiaries, Cable and Voice Corporation, Phone House, Inc., Flint Prepaid, Inc. (previously named Wize Communications, Inc.), Digital Phone Solutions, Inc., Ingedigit International, Inc. and Gotham Ingedigit Financial Processing Corp. dba Power2Process. The Company provides next generation turnkey voice, data and wireless services through partner channels primarily in the United States. The Company's balance sheet at Dec. 31, 2010, showed $10.2 million in total assets, $17.7 million in total liabilities, $4.9 million in redeemable equity securities, and a stockholders' deficit of $12.4 million. As reported in the Troubled Company Reporter on Oct. 26, 2010, L.L, Bradford & Company, LLC, in Las Vegas, Nev., expressed substantial doubt about Flint Telecom's ability to continue as a going concern, following the Company's results for the fiscal year ended June 30, 2010. The independent auditors noted that the Company has suffered losses from operations, negative cash flows from operations and current liabilities exceed current assets. FLORIDA GAMING: Incurs $1.73 Million First Quarter Net Loss ----------------------------------------------------------- Florida Gaming Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.73 million on $1.12 million of pari-mutuel revenue for the three months ended March 31, 2011, compared with a net loss of $1.34 million on $1.54 million of pari-mutuel revenue for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $17.11 million in total assets, $24.14 million in total liabilities and a $7.03 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/gZzvet About Florida Gaming Florida Gaming Corporation operates live Jai Alai games at frontons in Ft. Pierce, and Miami, Florida through its Florida Gaming Centers, Inc. subsidiary. The Company also conducts intertrack wagering (ITW) on jai alai, horse racing and dog racing from its facilities. Poker is played at the Miami and Ft. Pierce Jai-Alai, and dominoes are played at the Miami Jai-Alai. In addition, the Company operates Tara Club Estates, Inc., a residential real estate development located near Atlanta in Walton County, Georgia. Approximately 46.2% of the Company's common stock is controlled by the Company's Chairman and CEO either directly or beneficially through his ownership of Freedom Holding, Inc. The Company is based in Miami, Florida. The Company reported a net loss of $4.84 million on $4.11 million of Jai-Alai Mutuel revenue for the year ended Dec. 31, 2010, compared with a net loss of $4.87 million on $6.85 million of Jai- Alai Mutuel revenue during the prior year. As reported by the TCR on April 7, 2011, King + Company, PSC, in Louisville, Kentucky, noted that the Company has suffered recurring losses from operations and cash flow deficiencies which raise substantial doubt about its ability to continue as a going concern. FNB UNITED: Delays Filing of First Quarter Form 10-Q ---------------------------------------------------- FNB United Corp. informed the U.S. Securities and Exchange Commission that it will be late in filing its quarterly report on Form 10-Q for the period ended March 31, 2011. The Company said finalization of the its financial statements for that quarter and related Management's Discussion and Analysis of Financial Condition and Results of Operations and other Company and management disclosures has been delayed as a result of management's ongoing assessment of nonperforming assets. The Company anticipates filing its quarterly report on Form 10-Q as soon after May 16, 2011, as possible and within the five-day period from that date as provided by Rule 12b-25 under the Securities Exchange Act of 1934, as amended. About FNB United Asheboro, N.C.-based FNB United Corp. (Nasdaq:FNBN) is the bank holding company for CommunityOne Bank, N.A., and the bank's subsidiary, Dover Mortgage Company. Opened in 1907, CommunityOne Bank -- http://www.MyYesBank.com/-- operates 45 offices in 38 communities throughout central, southern and western North Carolina. Through these subsidiaries, FNB United offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services. The Company reported a net loss of $112.92 million on $82.83 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $101.69 million on $103.17 million of total interest income during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.92 billion in total assets, $1.93 billion in total liabilities, and a $9.93 million shareholders' deficit. Going Concern Doubt Raised Dixon Hughes PLLC, in Charlotte, North Carolina, in its independent auditors' report dated March 14, 2011 and attached to the financial statements, noted that the Company continued to incur significant net losses in 2010, primarily from the higher provisions for loan losses due to the significant level of non- performing assets. According to Dixon Hughes, the Company is significantly undercapitalized per regulatory guidelines and has failed to reach capital levels required in the Consent Order issued by the Office of the Comptroller of the Currency in 2010. These matters, the accounting firm maintains, raise substantial doubt about the Company's ability to continue as a going concern. Dixon Hughes also said that FNB United Corp. and Subsidiary has not maintained effective internal control over financial reporting as of Dec. 31, 2010, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. FOREVERGREEN WORLDWIDE: Posts $342,800 Net Loss in Q1 2011 ---------------------------------------------------------- ForeverGreen Worldwide Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $342,783 on $2.82 million of revenues for the three months ended March 31, 2011, compared with a net loss of $43,536 on $2.54 million of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed $9.31 million in total assets, $4.82 million in total liabilities, and stockholders' equity of $4.49 million. Morrill & Associates, in Bountiful, Utah, expressed substantial doubt about ForeverGreen Worldwide's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has a working capital deficiency, and has had negative cash flows from operations and recurring operating losses substantially since inception. A complete text of the Form 10-Q is available for free at: http://is.gd/6jxcrp The Company reported a net loss of $399,106 on $10.62 million of revenues in 2010, compared with a net loss of $7.12 million on $12.09 million of revenues in 2009. For the year ended Dec. 31, 2009, the Company recognized a $5.77 million impairment of goodwill. The Company's balance sheet at Dec. 31, 2010, showed $9.04 million in total assets, $4.21 million in total liabilities, and stockholders' equity of $4.83 million. A complete text of the Form 10-K is available for free at: http://is.gd/Nqypho About ForeverGreen Worldwide Corp. Orem, Utah-based ForeverGreen Worldwide Corporation is a holding company that operates through its wholly owned subsidiary, ForeverGreen International, LLC. The Company produces and manufactures a wide array of whole foods, nutritional supplements, personal care products and essential oils. FUSION TELECOMMUNICATIONS: Q1 Net Loss from Ops. at $2.1-Mil. ------------------------------------------------------------- Fusion Telecommunications International, Inc., notified the U.S. Securities and Exchange Commission that it requires additional time to file its quarterly report on Form 10-Q for the period ended March 31, 2011, in order to complete auditor review thereof. The Company anticipates that the net loss from continuing operations for the quarter ended March 31, 2011, will be approximately $1.2 million, or approximately 20% less than the $1.5 million loss from continuing operations for the quarter ended March 31, 2010. About Fusion Telecommunications New York City-based Fusion Telecommunications International, Inc. (OTC BB: FSNN) is a provider of Internet Protocol ("IP") based digital voice and data communications services to corporations and carriers worldwide. As reported by the TCR on April 26, 2011, Rothstein, Kass & Company, P.C., in Roseland, New Jersey, expressed substantial doubt about Fusion Telecommunications' ability to continue as a going concern. The independent auditors noted that the Company the Company has negative working capital balances, incurred negative cash flows from operations and net losses since inception, and has limited capital to fund future operations. Fusion Telecommunications reported a net loss of $5.8 million on $41.8 million of revenues for 2010, compared with a net loss of $9.6 million on $40.9 million of revenues for 2009. At Dec. 31, 2010, the Company's balance sheet showed $5.0 million in total assets, $13.0 million in total liabilities, and a stockholders' deficit of $8.0 million. GAMETECH INTERNATIONAL: Kevin Painter Appointed Board Chairman -------------------------------------------------------------- The GameTech International, Inc., Board of Directors appointed Kevin Y. Painter as its non-executive Chairman of the Board on May 11, 2011. No additional compensation is to be awarded to Mr. Painter in connection with this appointment. About GameTech Based in Reno, Nevada, GameTech develops and manufactures gaming entertainment products and systems. GameTech holds a significant position in the North American bingo market with its interactive electronic bingo systems, portable and fixed-based gaming units, and complete hall management modules. It also holds a significant position in select North American VLT markets, primarily Montana, Louisiana, and South Dakota, where it offers video lottery terminals and related gaming equipment and software. It also offers Class III slot machines and server-based gaming systems. The Company reported a net loss of $20.4 million on $35.2 million of revenue for the 52 weeks ended Oct. 31, 2010, compared with a net loss of $10.5 million on $47.8 million of revenue for the 52 weeks ended Nov. 1, 2009. Piercy Bowler Taylor & Kern, in Las Vegas, Nevada, expressed substantial doubt about GameTech International, Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has suffered reoccurring losses from operations and has been unable to extend the maturity of its debt, or raise additional capital necessary to execute its business plan. The Company's balance sheet at Jan. 30, 2011 showed $40.86 million in current assets, $31.47 million in current liabilities and $9.39 million in total stockholders' equity. GATORLAND CROSSINGS: Case Summary & 5 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Gatorland Crossings, LLC P.O. Box 916655 Longwood, FL 32791 Bankruptcy Case No.: 11-07611 Chapter 11 Petition Date: May 20, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: Aldo G Bartolone, Jr., Esq. BARTOLONE & BATISTA, LLP 948 S. Semoran Boulevard, Suite 102 Orlando, FL 32807 Tel: (407) 306-8066 Fax: (407) 306-9393 E-mail: agb@bartolonelaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-07611.pdf The petition was signed by Bassam Mnayarji, managing member. GENERAL MARITIME: Authorized Common Shares Hiked to $390 Million ---------------------------------------------------------------- At the 2011 Annual Meeting of Shareholders of General Maritime Corporation on May 12, 2011, the Company's shareholders approved an amendment to the Company's Amended and Restated Articles of Incorporation to increase the number of authorized shares of the Company's common stock from 140,000,000 shares to 390,000,000 shares. The increase in the number of authorized shares of the Common Stock was effected pursuant to an Articles of Amendment of Amended and Restated Articles of Incorporation filed with the Secretary of State of the State of Delaware on May 12, 2011, and was effective as of such date. At the Annual Meeting, shareholders of record on March 15, 2010, were entitled to vote 89,593,272 shares of the Common Stock. A total of 71,895,535 shares of Common Stock (80.2% of all shares entitled to vote at the Annual Meeting) were represented at the Annual Meeting in person or by proxy. At the Annual Meeting, the shareholders of the Company (i) elected two director nominees -- Rex W. Harrington and George J. Konomos - - to hold office until the 2014 Annual Meeting of Shareholders and until their successors are elected and qualified or until their earlier resignation or removal, (ii) approved an amendment to the Company's Amended and Restated Articles of Incorporation to increase the number of authorized shares of Common Stock from 140,000,000 to 390,000,000, (iii) did not approve the Company's 2011 Stock Incentive Plan, (iv) ratified the appointment of Deloitte & Touche LLP as the Company's independent certified public accountants for the fiscal year ended Dec. 31, 2011, (v) approved an advisory, non-binding resolution regarding the compensation of the Company's named executive officers and (vi) approved every one year in an advisory, non-binding resolution as the frequency of the advisory vote on the compensation of the Company's named executives. About General Maritime Corp. Based in New York City, General Maritime Corporation through its subsidiaries provides international transportation services of seaborne crude oil and petroleum products. The Company's fleet is comprised of VLCC, Suezmax, Aframax, Panamax and product carrier vessels. The Company operates its business in one business segment, which is the transportation of international seaborne crude oil and petroleum products. The Company's vessels are primarily available for charter on a spot voyage or time charter basis. The Company's balance sheet at March 31, 2011, showed $1.72 billion in total assets, $1.42 billion in total liabilities, and $304.25 million in total shareholders' equity. The Company reported a net loss of $216.66 million on $387.16 million of voyage revenue for the year ended Dec. 31, 2010, compared with a net loss of $11.99 million on $350.52 million of voyage revenue during the prior year. Deloitte & Touche LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditor noted that the Company requires additional financing in order to meet its debt obligations that will come due over the next year. In addition, the Company has current losses from operations, a working capital deficit and the expectation that certain of its loan covenants will not be achieved during 2011 without additional capital being raised, debt being refinanced or covenants waived or amended. * * * Standard & Poor's Ratings Services in December 2010 lowered its long-term corporate rating on General Maritime Corp. to 'CCC+' from 'B', and placed the ratings on CreditWatch with negative implications. At the same time, S&P lowered its ratings on the company's senior unsecured notes to 'CCC-', two notches below the new corporate credit rating; the recovery rating of '6', which indicates S&P's expectation that lenders will receive a negligible (0%-10%) recovery in a payment default scenario, remains unchanged. "The downgrade reflects General Maritime's weak liquidity, very limited financial covenant headroom (despite recent amendments), and deterioration in its financial profile," said Standard & Poor's credit analyst Funmi Afonja. "As of Sept. 30, 2010, General Maritime had no borrowing availability under its $749.8 million revolving credit facility and $8.7 million in unrestricted cash, after factoring financial covenant limitations. In S&P's opinion, the recent financial covenant amendments do not provide sufficient covenant headroom, and there is still a high probability of a covenant breach over the next quarter. If there is a covenant breach, lenders can require the immediate payment of all amounts outstanding. General Maritime's liquidity is further constrained by significant upcoming debt maturities, including $27.5 million in scheduled principal payments due in 2011 under its term loan, $50.1 million semiannual reduction on the revolver, beginning on April 26, 2011, and a bullet payment of $599.6 million in October 2012, when the facility expires. General Maritime also has a $22.8 million bridge loan facility that matures in October 2011. Cash interest payments on the bridge loan will increase if the company is unable to pay off the loan by Dec. 31, 2010." In the Dec. 22, 2010 edition of the TCR, Moody's Investors Service lowered its ratings of General Maritime Corporation: Corporate Family to B3 from B1, Probability of Default to Caa1 from B2 and senior unsecured to Caa2 from Caa1. Moody's also downgraded the Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade of the ratings reflects GenMar's tightening liquidity position as a result of ongoing weak tanker freight rates and upcoming debt maturities. These maturities include the recently arranged $22.8 million bridge loan due Oct. 21, 2011 ("Bridge Loan"), and two $50 million repayments (one each on April 26, 2011 and Oct. 26, 2011) that are due on the company's $750 million revolving credit facility that was almost fully drawn at Sept. 30, 2010. GENERAL MOTORS: Moody's Rates Senior Unsecured Notes at 'B1' ------------------------------------------------------------ Moody's Investors Service assigned a B1 rating to the $500 million senior unsecured notes issuance of General Motors Financial Company, Inc. (GMF). The rating outlook is stable. RATINGS RATIONALE GMF is a wholly owned subsidiary of General Motors Company (GM). GMF's ratings (Corporate Family Rating and senior unsecured debt at B1) incorporate one notch of uplift from GM ownership and support. The principal methodology used in this rating was Analyzing The Credit Risks Of Finance Companies published in October 2000. GMF, formerly known as AmeriCredit Corp., is an automobile finance company providing financing solutions indirectly through auto dealers across the United States. GMF has approximately 800,000 customers and $8.7 billion in auto receivables. GM is one of the world's largest automakers; as of March 31, 2011 GM reported total assets of $146 billion. GENTA INC: Reports $513,000 Net Income in First Quarter ------------------------------------------------------- Genta Incorporated filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $513,000 on $53,000 of product sales for the three months ended March 31, 2011, compared with a net loss of $166.61 million on $34,000 of product sales for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $10.82 million in total assets, $14.13 million in total liabilities and a $3.31 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/a7DFT2 About Genta Incorporated Berkeley Heights, New Jersey-based Genta Incorporated (OTC BB: GNTA) -- http://www.genta.com/-- is a biopharmaceutical company engaged in pharmaceutical (drug) research and development. The Company is dedicated to the identification, development and commercialization of novel drugs for the treatment of cancer and related diseases. EisnerAmper LLP, in Edison, New Jersey, expressed substantial doubt about Genta's ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses from operations, negative cash flows from operations and current maturities of convertible notes payable. Amper, Politziner & Mattia, LLP, in Edison, New Jersey, did not include a going concern explanatory paragraph in its audit report on the Company's financial statements for fiscal 2009. The Company reported a net loss of $167.3 million on $257,000 of sales for 2010, compared with a net loss of $86.3 million on $218,000 for 2009. GLC LIMITED: Wants to Sell Miscellaneous Inventory for $250,000 --------------------------------------------------------------- The Hon. Jeffery P. Hopkins of the U.S. Bankruptcy Court for the Southern District Of Ohio authorized GLC Limited to sell certain de minimis assets, free and clear of liens, claims, interests and encumbrances. The assets, included but not limited to, miscellaneous inventory, supplies and ancillary equipment located in the warehouses and retail stores for an aggregate amount of $250,000. About GLC Limited Proctorville, Ohio-based GLC Limited is principally a liquidation company in the wholesale/retail distribution industry. It offers large selections of name brand products in many categories. It distributes its goods through a network of wholesale distributors, retail chains and discount and surplus centers. It owns four warehouses for its goods which are located in Proctorville and Columbus, Ohio and Huntington, West Virginia. GLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ohio Case No. 11-11090) on Feb. 28, 2011. James R. Burritt, chief restructuring officer, signed the Chapter 11 petition. The Debtor disclosed $18,231,434 in assets and $28,095,356 in liabilities as of the Chapter 11 filing. Ronald E. Gold, Esq., at Frost Brown Todd LLC, serves as the Debtor's bankruptcy counsel. The Official Committee of Unsecured Creditors in GLC Limited's Chapter 11 bankruptcy case has tapped Morris, Manning & Martin, LLP, as counsel. GUIDED THERAPEUTICS: Incurs $726,000 First Quarter Net Loss ----------------------------------------------------------- Guided Therapeutics, Inc., reported a net loss of $726,000 on $767,000 of revenue for the three months ended March 31, 2011, compared with a net loss of $1.46 million on $821,000 of revenue for the same period during the prior year. The Company's selected balance sheet data showed $2.30 million in cash & cash equivalents, $3.13 million in total assets, and a $79.17 million accumulated deficit. "We are pleased with the progress we made on a number of fronts thus far in 2011," said Mark L. Faupel, Ph.D., chief executive officer and president of Guided Therapeutics. "In April, we held a productive meeting with the U.S. Food and Drug Administration (FDA) regarding our non-invasive cervical disease technology premarket approval (PMA) application. Importantly, as a result of that meeting, we believe we have a clearly defined path to a panel review meeting, as well as guidance on answering the questions we received from FDA in March. We successfully completed an FDA audit of our clinical trial records, bringing to four the number of successfully completed FDA audits in connection with our PMA application." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/OOWz9i About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. The Company reported a net loss of $2.84 million on $3.36 million of contract and grant revenue for the year ended Dec. 31, 2010, compared with a net loss of $6.21 million on $1.55 million of contract and grant revenue during the prior year. As reported by the TCR on April 4, 2011, UHY LLP, in Atlanta, Georgia, noted that the Company's recurring losses from operations, accumulated deficit and lack of working capital raise substantial doubt about its ability to continue as a going concern. HAWKS PRAIRIE: Selling Commercial Real Property for $27-Mil. ------------------------------------------------------------ Debtor Hawks Prairie Investment, LLC, and secured creditor HomeStreet Bank, ask the U.S. Bankruptcy Court for the Western District of Washington to approve the sale of the commercial real property assets of the Debtor pursuant to the 11 U.S.C. Sec. 363 and the confirmed Chapter 11 plan of the Debtor. The Debtor relates that the assets to be purchased include all of Debtor's rights, title, and interest in and to all of the Debtor's commercial real and associated personal property. The real property comprising the commercial property is the 215 acres comprised of Parcels A and B. The Debtor has entered into a proposed sale to Eclipse Development Group, LLC or its designee, assignee or nominee of the commercial parcels of the real estate of Debtor for the aggregate consideration of $27,000,000. The sale is subject to higher and better offers, and will be free and clear of all liens, claims, interests and encumbrances. The Debtor propose an in-person auction on July 29, 2011, at 10:00 a.m., PST, at the offices of Foster Pepper PLLC, at 1111 Third Avenue, Suite 3400, in Seattle, Washington. Qualified bids are due five business days prior to the auction date. About Hawks Prairie Investment Olympia, Washington-based Hawks Prairie Investment LLC owns real property in Thurston County, Washington. It filed for Chapter 11 bankruptcy protection (Bankr. W.D. Wash. Case No. 10-46635) on Aug. 13, 2010. Timothy W. Dore, Esq., at Ryan Swanson & Cleveland PLLC, represents the Debtor. The Company disclosed $89,000,071 in assets and $44,778,104 in liabilities as of the Chapter 11 filing. An affiliate, Pacific Investment Group LLC, filed a separate Chapter 11 petition on October 22, 2009 (Bankr. W.D. Wash. Case No. 09-47915). The U.S. Trustee was unable to form a committee of unsecured creditors in the Debtor's case. On March 4, 2011, the Court confirmed the Debtor's Plan of Reorganization which provides for the sale of 337 acres of undeveloped real property in Lacey, Washington. The Debtor will use the proceeds to pay secured claims in the order of their priority and then, if any funds are left, to pay unsecured claims. HERTZ CORP: DBRS Puts 'BB' Issuer Rating Under Review Developing ---------------------------------------------------------------- DBRS Inc. (DBRS) has placed the ratings of Hertz Corporation (Hertz or the Company), including its Issuer Rating of BB, Under Review Developing following the Company's announcement that it intends to acquire Dollar Thrifty Automotive Group, Inc. (DTAG) (Issuer Rating of B (high) by DBRS) for approximately $2.1 billon. In placing the ratings Under Review Developing, DBRS recognizes the positives that this acquisition could bring to the table, while also presenting certain risks. Further, DBRS notes that there are certain uncertainties regarding this potential transaction. For instance, a definitive merger agreement has not been executed and there is a chance that the final purchase price may ultimately change, especially if other potential suitors present counteroffers. Moreover, the proposed transaction is subject to customary closing conditions, DTAG shareholder approval and regulatory approvals. Nonetheless, should the deal progress and the final purchase price and financing composition become more certain, DBRS will complete its review assessing the impact on Hertz's franchise, risk profile, capital structure and its earnings generation ability. The Under Review Developing status reflects DBRS's view that the potential acquisition of DTAG is a long-term positive for Hertz and will further strengthen the Company's overall franchise. This transaction would combine two complementary businesses, Hertz with its strong presence in the premium and corporate travel segment and DTAG, with its solid position in the value-oriented leisure travel segment. Furthermore, DBRS sees very little overlap in the businesses and, with the successful completion of the proposed transaction, Hertz will gain immediate scale in the value-priced customer segment, in which it currently lacks a significant presence. As such, in the longer-term, DBRS sees the potential for upward ratings momentum should Hertz's performance demonstrate that the Company is capturing the benefits of the transaction, while reducing leverage to historical levels. Conversely however, DBRS sees potential risks in this transaction especially should the purchase price increase resulting in increased leverage, which in turn would weaken the Company's financial profile, resulting in this transaction being less accretive. Furthermore, the review status also considers DBRS's view that the upside potential discussed above may be muted should industry fundamentals deteriorate. These downside risks are factored into the rating action which also signifies that there is a potential for downward rating pressure. DBRS will continue to monitor the structure of the purchase, the actual level of net debt incurred, goodwill and the ultimate impact on leverage. DBRS notes that, as with any acquisition, there are certain integration and execution risks involved in this proposed transaction. However, industry fundamentals are improving with strengthening rental demand, a healthy used vehicle market benefiting fleet costs and pricing discipline being maintained by industry participants. As a result, DBRS currently views the near-term earnings outlook for both Hertz and DTAG as positive increasing the likelihood of successful execution of the combination. Nevertheless, as discussed above, DBRS remains cautious regarding the sustainability of the economic recovery and the potential for a reversal of the positive industry trends. To this end, DBRS is concerned that should these industry trends reverse, Hertz's ability to navigate a downturn could be at greater risk given the enlarged funding stack. DBRS notes that its rating for the Senior Subordinated Debt has been withdrawn as the securities have been paid in full. DBRS will monitor developments and will provide comments in due course, as details of any definitive agreement become available. IDO SECURITY: Delays Filing of First Quarter Form 10-Q ------------------------------------------------------ IDO Security Inc.'s Quarterly Report on Form 10-Q for the three months ended March 31, 2011, could not be filed by the prescribed due date of May 16, 2011, because the Company had not yet finalized its treatment and disclosure of certain material events that occurred during the quarter. As a result, the review of the Company's financial statements for the three months ended March 31, 2011, is ongoing. Accordingly, the Company is unable to file such report within the prescribed time period without unreasonable effort or expense. The Company anticipates that the subject quarterly report will be filed on or before May 23, 2011. About IDO Security IDO Security Inc. is engaged in the design, development and marketing of devices for the homeland security and loss prevention markets that are intended for use in security screening procedures to detect metallic objects concealed on or in footwear, ankles and feet through the use of electro-magnetic fields. The Company's common stock trades on the OTC Bulletin Board under the symbol IDOI. The Company is headquartered in New York City. The Company reported a net loss of $7.78 million on $61,399 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $6.40 million on $82,721 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $1.87 million in total assets, $17.48 million in total liabilities, and a $15.61 million total stockholders' deficiency. As reported by the TCR on April 15, 2011, Rotenberg Meril Solomon Bertiger & Guttilla, P.A., in Saddle Brook, New Jersey, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has not achieved profitable operations, has incurred recurring losses, has a working capital deficiency and expects to incur further losses in the development of the business. IMAGE METRICS: Reports $689,000 Net Income in March 31 Quarter -------------------------------------------------------------- Image Metrics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $689,000 on $435,000 of revenue for the three months ended March 31, 2011, compared with a net loss of $5.28 million on $1.57 million of revenue for the same period a year ago. The Company also reported a net loss of $1.42 million on $985,000 of revenue for the six months ended March 31, 2011, compared with a net loss of $6.61 million on $3.96 million of revenue for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $4.66 million in total assets, $15.31 million in total liabilities, and a $10.65 million total shareholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Kh1AVq About Image Metrics Santa Monica, Calif.-based Image Metrics, Inc., provides technology-based facial animation solutions to the interactive entertainment industry. Using proprietary software and mathematical algorithms that "read" human facial expressions, the Company's technology converts video footage of real-life actors into 3D computer generated animated characters. Examples of the Company's facial animation projects include the 2008 "Grand Theft Auto IV" video game, the 2009 computer generated aging of Brad Pitt in the feature film "The Curious Case of Benjamin Button," the 2009 Black Eyed Peas' "Boom Boom Pow" music video, and the 2010 "Red Dead Redemption" video game. The Company's key intellectual property consists of one patent registered in the United States, four additional patents in process, the identification of 16 potential new patents, and significant well-documented trade secrets. BDO USA, LLP, in Los Angeles, after auditing the Company's financial statements for the year ended Sept. 30, 2010, expressed substantial doubt about Image Metrics, Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency. The Company reported a net loss of $9.7 million on $5.9 million of revenue for fiscal 2010, compared to a net loss of $6.8 million on $4.0 million of revenue for fiscal 2009. IMR CONTRACTOR: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: IMR Contractor Corporation 24967 Huntwood Drive Hayward, CA 94544 Bankruptcy Case No.: 11-45500 Chapter 11 Petition Date: May 20, 2011 Court: U.S. Bankruptcy Court Northern District of California (Oakland) Judge: William J. Lafferty Debtor's Counsel: Chris D. Kuhner, Esq. KORNFIELD, NYBERG, BENDES AND KUHNER 1970 Broadway, #225 Oakland, CA 94612 Tel: (510) 763-1000 E-mail: c.kuhner@kornfieldlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/canb11-45500.pdf The petition was signed by Ismael Avila, manager. INDIANA ASSETS: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Indiana Assets L.L.C. P.O. Box 1605 Bloomington, IN 47402-1605 Bankruptcy Case No.: 11-06486 Chapter 11 Petition Date: May 19, 2011 Court: U.S. Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: Frank J. Otte Debtor's Counsel: Craig R. Benson, Esq. CRAIG BENSON, ATTORNEY AT LAW, P.C. 9577 East State Road 45 Unionville, IN 47468 Tel: (812) 322-6683 Fax: (812) 331-9805 E-mail: cbenson@kiva.net Scheduled Assets: $2,336,063 Scheduled Debts: $1,744,253 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/insb11-06486.pdf The petition was signed by Clayton Nunes, manager. INNKEEPERS USA: Files Reorganization Plan, Disclosure Statement --------------------------------------------------------------- BankruptcyData.com reports that Innkeepers USA Trust filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement. According to BData, the Plan is comprised of four separate Joint Plans: the "Fixed/Floating Plan, the Anaheim Plan, the Ontario Plan and the Remaining Debtor Plan." The Joint Plan for the Fixed/Floating Debtors contemplates recapitalization of the Fixed/Floating Debtors through debt conversion and infusions of new capital. The Fixed/Floating Debtors are primarily related to the hotels serving as collateral for the fixed rate pool mortgage loan and the floating rate pool mortgage loan. The Fixed/Floating Plan reflects the results of the auction where Cerberus and Chatham Lodging proposed a successful bid valued at approximately $1.1 billion for 64 hotels owned by Innkeepers USA Trust. The Plan also includes a Joint Plan for the Anaheim Hotel Debtors, a Joint Plan for the Ontario Hotel Debtors and a Plan for the remaining Debtors, which includes the LNR Properties that Chatham L.P. purchased at auction for $195 million. About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and 91 affiliates filed for Chapter 11 protection on July 19, 2010 (Bankr. S.D.N.Y. Case No. 10-13800). Paul M. Basta, Esq., at Kirkland & Ellis LLP, in New York; Anup Sathy, P.C., Esq., Marc J. Carmel, Esq., at Kirkland & Ellis in Chicago; and Daniel T. Donovan, Esq., at Kirkland & Ellis in Washington, D.C., serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. Attorneys at Morrison & Foerster, LLP, represent the Official Committee of Unsecured Creditors. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred approximately $1.29 billion of secured debt. INTEGRATED BIOPHARMA: Incurs $876,000 Net Loss in March 31 Qtr. --------------------------------------------------------------- Integrated Biopharma, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $876,000 on $6.30 million of net sales for the three months ended March 31, 2011, compared with a net loss of $1.92 million on $5.34 million of net sales for the same period during the prior year. The Company also reported a net loss of $1.30 million on $18.39 million of net sales for the nine months ended March 31, 2011, compared with a net loss of $3.86 million on $14.17 million of net sales for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $13.22 million in total assets, $19.96 million in total liabilities, all current, and a $6.73 million total stockholders' deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/eo7GXT About Integrated BioPharma Based in Hillside, N.J., Integrated BioPharma, Inc. (INBP.OB) -- -- http://www.healthproductscorp.us/ -- is engaged primarily in manufacturing, distributing, marketing and sales of vitamins, nutritional supplements and herbal products. The Company's customers are located primarily in the United States. The Company was previously known as Integrated Health Technologies, Inc., and, prior to that, as Chem International, Inc. The Company was reincorporated in its current form in Delaware in 1995. The Company continues to do business as Chem International, Inc., with certain of its customers and certain vendors. INTERMETRO COMMUNICATIONS: Reports $2MM Net Income in Q1 2011 ------------------------------------------------------------- InterMetro Communications, Inc., filed its quarterly report on Form 10-Q, reporting net income of $2.0 million on $6.3 million of revenues for the three months ended March 31, 2011, compared with net income of $1.1 million on $5.9 million of revenues for the same period last year. During the three months ended March 31, 2011, the Company entered into numerous cash payment plan agreements with vendors for amounts less than the liability recorded in accounts payable. As a result of these agreements, the Company recorded a gain on forgiveness of debt of $1.7 million for the three months ended March 31, 2011. In addition, the Company wrote-off certain accounts payable for Competitive Local Exchange Carriers ("CLEC") that resulted in a gain of $186,000 for the same period, and is included in accounts payable write-off. The CLEC accounts payable were written off based on a two year statute of limitations on such accounts payable balances. During the three months ended March 31, 2010, the Company entered into payment plan agreements that resulted in the Company recording a gain on forgiveness of debt of $461,000. In addition, the Company wrote-off certain accounts payable for CLECs that resulted in a gain of $591,000. The Company's balance sheet at March 31, 2011, showed $4.1 million in total assets, $18.9 million in total liabilities, and a stockholders' deficit of $14.8 million. As reported in the TCR on April 5, 2011, Gumbiner Savett Inc., in Santa Monica, Calif., expressed substantial doubt about InterMetro Communications' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company incurred net losses in previous years, and as of Dec. 31, 2010, the Company had a working capital deficit of approximately $16,273,000 and a total stockholders' deficit of approximately $16,836,000. "The Company anticipates that it will not have sufficient cash flow to fund its operations in the near term and through fiscal 2011 without the completion of additional financing." A complete text of the Form 10-Q is available for free at: http://is.gd/B9ppNM Simi Valley, Calif.-based InterMetro Communications, Inc. -- http://www.intermetro.net/-- is a facilities-based provider of enhanced voice and data communication services. INTERNATIONAL ENERGY: Amends Schedules of Assets & Liabilities -------------------------------------------------------------- International Energy Holdings Corp. has filed with the U.S. Bankruptcy Court for the Middle District of Florida its amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $1,729,190 B. Personal Property $11,425,615 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $12,420,440 E. Creditors Holding Unsecured Priority Claims $116,863 F. Creditors Holding Unsecured Non-priority Claims $3,325,634 ----------- ----------- TOTAL $13,154,805 $15,862,937 About International Energy Tampa, Florida-based International Energy Holdings Corp. -- fka International CRO Holdings Corp.; The Cornerstone Brad, LLC; and Bison Renewable Energy, LLC -- filed for Chapter 11 bankruptcy protection on March 28, 2011 (Bankr. M.D. Fla. Case No. 11-05547). Richard J. McIntyre, Esq., at McIntyre, Panzarella, Thanasides & Eleff, serves as the Debtor's bankruptcy counsel. INTERNATIONAL ENERGY: Wins OK for McIntyre Panzarella as Counsel ---------------------------------------------------------------- International Energy Holdings Corp. sought and obtained authorization from the U.S. Bankruptcy Court for the Middle District of Florida to employ McIntyre Panzarella Thanasides Hoffman Bringgold & Todd, P.L., as its attorneys. The professional services to be rendered by the attorney include: a. rendering legal advice with respect to Debtor's powers and duties as debtor-in-possession, the continued operation of its business and the management of its property; b. preparing on behalf of Debtor any necessary petitions, motions, applications, answers, orders, reports, and other legal papers; c. appearing before this Court and the U.S. Trustee to represent and protect the interests of the Debtor; d. assisting with and participating in negotiations with creditors and other parties-in-interest in formulating a plan of reorganization, drafting such a plan and a related disclosure statement and taking necessary legal steps to confirm such a plan; e. representing Debtor in any negotiations with potential financing sources, and to prepare any contracts, security instruments, or other documents necessary to obtain financing; f. representing Debtor in all adversary suits, contested matters and matters involving administration of this case; g. taking any necessary action to recover any voidable transfers and to avoid any lines against Debtor's property obtained within 90 days of the filing of the petition in Chapter 11 and at a time when Debtor as insolvent; h. enjoying or staying any and all suits against the Debtor affecting the debtor-in-possession's ability to continue in business or affecting property in which the Debtor has equity; and i. performing all legal services for Debtor, which may be necessary for the proper preservation and administration of the Chapter 11 case. Christopher C. Todd, Esq., a partner at McIntyre Panzarella Thanasides Hoffman Bringgold & Todd, P.L., assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About International Energy Tampa, Florida-based International Energy Holdings Corp. -- fka International CRO Holdings Corp.; The Cornerstone Brad, LLC; and Bison Renewable Energy, LLC -- filed for Chapter 11 bankruptcy protection on March 28, 2011 (Bankr. M.D. Fla. Case No. 11-05547). Richard J. McIntyre, Esq., at McIntyre, Panzarella, Thanasides & Eleff, serves as the Debtor's bankruptcy counsel. INTERNATIONAL FUEL: Posts $523,300 Net Loss in First Quarter ------------------------------------------------------------ International Fuel Technology, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $523,324 on $62,930 of revenues for the three months ended March 31, 2011, compared with a net loss of $650,697 on $48,696 of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed $2.7 million in total assets, $3.9 million in total liabilities, and a stockholders' deficit of $1.2 million. As reported in the TCR on April 6, 2011, BDO USA, LLP, in Chicago, expressed substantial doubt about International Fuel's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses from operations, has a working capital deficit at Dec. 31, 2010, and has cash obligations and outflows from operating activities. A complete text of the Form 10-Q is available for free at: http://is.gd/auBplf St. Louis, Mo.-based International Fuel Technology, Inc., is a technology company that has developed a range of liquid fuel additive formulations that enhance the performance of petroleum- based fuels and renewable liquid fuels. IVAX DIAGNOSTICS: Posts $1 Million Net Loss in March 31 Quarter --------------------------------------------------------------- IVAX Diagnostics, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.0 million on $4.1 million of revenues for the three months ended March 31, 2011, compared with a net loss of $957,428 on $4.7 million of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed $15.2 million in total assets, $6.6 million in total liabilities, and stockholders' equity of $8.6 million. As reported in the TCR on April 5, 2011, Grant Thornton LLP, in Miami, Fla., expressed substantial doubt about IVAX Diagnostics' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company incurred a net loss of $4.2 million during the year ended Dec. 31, 2010, and used cash from operations of $1.9 million during the year ended Dec. 31, 2010. A complete text of the Form 10-Q is available for free at: http://is.gd/0ftMjo Miami, Fla.-based IVAX Diagnostics, Inc. (NYSE Amex: IVD) -- http://www.ivaxdiagnostics.com/-- through its subsidiaries, develops, manufactures and markets diagnostic test kits, or assays, and automated systems that are used to aid in the detection of disease markers primarily in the areas of autoimmune and infectious diseases. IVOICE INC: Delays Filing of First Quarter Form 10-Q ---------------------------------------------------- iVoice, Inc., notified the U.S. Securities and Exchange Commission that it has been unable to complete and file, when originally due, the Quarterly Report on Form 10-Q for the period ended March 31, 2011, as a result of delays in completing the financial statements and the subsequent review by the Company's independent accounting firm. About Ivoice Matawan, N.J.-based iVoice, Inc. -- http://www.ivoice.com/-- is focused on the development and licensing of its proprietary technologies. To date the Company has filed fifteen (15) patent applications with the United States Patent and Trademark Office for speech enabled applications that the Company has developed internally. Of the patent applications the Company has filed, four (4) patents have been awarded. As reported by the TCR on April 25, 2011, Rosenberg Rich Baker Berman & Co, in Somerset, New Jersey, expressed substantial doubt about iVoice, Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has incurred substantial accumulated deficits. The Company reported a net loss of $1.5 million on $177,198 of sales for 2010, compared with net income of $219,780 on $108,120 of sales for 2009. At Dec. 31, 2010, the Company's balance sheet showed $1.7 million in total assets, $3.4 million in total liabilities, and a stockholders' deficit of $1.7 million. J PASS: Case Summary & 15 Largest Unsecured Creditors ----------------------------------------------------- Debtor: J Pass II, LLC P.O. Box 7930 Saint Petersburg, FL 33734 Bankruptcy Case No.: 11-09687 Chapter 11 Petition Date: May 20, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Joel S. Treuhaft, Esq. PALM HARBOR LAW GROUP, P.A. 2997 Alternate 19, Suite B Palm Harbor, FL 34683 Tel: (727) 797-7799 Fax: (727) 213-6933 E-mail: jstreuhaft@yahoo.com Scheduled Assets: $2,600,959 Scheduled Debts: $6,580,491 A list of the Company's 15 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-09687.pdf The petition was signed by James Hartley, managing member. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Atlanta Mandalay, LLC 11-09689 05/20/11 JACKSON HEWITT: Files for Bankruptcy Protection ----------------------------------------------- Jackson Hewitt Tax Service Inc., along with affiliates, filed for bankruptcy (Bankr. D. Del. Lead Case No. 11-11587) on May 24, with a deal with secured lenders that will let it exit court protection within 60 days. Jackson Hewitt estimated as much as $500 million in assets and debts in Chapter 11 documents filed in U.S. Bankruptcy Court in Wilmington, Delaware. Bloomberg News notes that the Chapter 11 filing comes after U.S. regulators moved to curb the loans that tax preparers arrange for customers expecting refunds. Refund-anticipation loans are under scrutiny by regulators including the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency. The biggest U.S. tax preparer, H&R Block Inc., won't offer tax-refund loans this year after the OCC, which regulates national banks, blocked HSBC Holdings Plc from funding them. JPMorgan Chase & Co. exited the refund-loan business in April 2010. $350 Mil. Debt Under a prepetition credit agreement, the Debtors owe $214.4 million principal amount of term loans, $141.4 principal amount of revolver loans, and $1.9 million under related hedge agreements. The obligations are secured by a first lien on substantially all of the Debtors' assets. The total enterprise value of the Debtors is estimated in a range of between $200 million and $250 million. The lenders have an unsecured deficiency claim of approximately $172 million, which makes them the Debtors' largest unsecured creditors: the Debtors have no other funded debt obligations, and as of the Petition Date, the Debtors were obligated on a relatively small amount of outstanding trade debt. "The debt and interest rate burden we have carried in recent years has limited our potential and financial flexibility and this will no longer be the case," Chief Executive Officer Philip H. Sanford said in a statement. In March, Jackson Hewitt said it was working on a prepackaged bankruptcy with lenders and there was "uncertainty" about its ability to continue as a going concern. Road to Chapter 11 Daniel P. O'Brien, executive vice president, chief financial officer, and treasurer, relates that the Debtors sought chapter 11 protection because they can no longer sustain the amount of their debt obligations under their prepetition credit agreement. The Debtors incurred these debt obligations at a time when their EBITDA was significantly higher than it is now. Specifically, the Debtors' 2009 EBITDA was approximately $75 million, but it dropped to $46.8 million in 2010 and is estimated to be $48.3 million for 2011. The Debtors' declining EBITDA has been driven by several factors, including a several-year decline in the number of tax returns prepared year-over-year and overall operating performance. While the Debtors reversed this trend for the 2011 tax season, the increase in returns over the 2010 tax season was relatively modest. These factors have driven the Debtors' enterprise value down significantly, such that there is insufficient value to pay in full the lenders under the Credit Agreement. Pre-Arranged Plan Under the terms of the proposed Plan, Jackson Hewitt's current secured lenders will receive their pro rata share of a new $100 million term loan and all of the equity in the reorganized enterprise. The Company also anticipates entering into a new $115 million revolving credit facility upon consummation of the Plan. It is anticipated that upon consummation of the proposed Plan, Jackson Hewitt's new equity will be privately held. Under the proposed Plan, all of the Company's existing common stock will be cancelled upon Jackson Hewitt's emergence from bankruptcy. On May 23, 2011, the Debtors commenced solicitation of votes on the Plan from the lenders. No other classes of creditors or stockholders were solicited, as each such class is either being paid in full or receiving no recovery and hence, is deemed either to accept or reject the Plan, respectively. The Debtors received overwhelming acceptances to the Plan from the lenders. According to Mr. O'Brien, the Plan, if confirmed, will end a prolonged period of uncertainty regarding the Debtors' future prospects by appropriately right-sizing their balance sheet. While RALs may not be part of the Debtors' long-term future, the core tax preparation business remains. Demand will continue for these services. In 2010, more than 139 million tax returns were filed in the United States -- historically, 60% or more of all such tax returns have been prepared with the assistance of a paid tax return preparer. Jackson Hewitt expects the restructuring plan to be fully implemented in 45-60 days. During this period, Jackson Hewitt will have the liquidity and financial flexibility to operate in the normal course and begin preparations for the 2012 tax season. In connection with the restructuring plan and its implementation, Jackson Hewitt expects that no disruption will be experienced by its clients, franchisees or employees. About Jackson Hewitt Jackson Hewitt Tax Service Inc. (NYSE: JTX) -- http://www.jacksonhewitt.com/-- provides computerized preparation of federal, state and local individual income tax returns in the United States through a nationwide network of franchised and company-owned offices operating under the brand name Jackson Hewitt Tax Service(R). The Company provides its customers with convenient, fast and quality tax return preparation services and electronic filing. In connection with their tax return preparation experience, the Company's customers may select various financial products to suit their needs, including refund anticipation loans -- RALs -- in the offices where such financial products are available. Jackson Hewitt Tax Service Inc. was incorporated in Delaware in February 2004 as the parent corporation. Jackson Hewitt Inc. -- JHI -- is a wholly-owned subsidiary of Jackson Hewitt Tax Service Inc. Jackson Hewitt Technology Services LLC is a wholly-owned subsidiary of JHI that supports the technology needs of the Company. Company-owned office operations are conducted by Tax Services of America, Inc. -- TSA -- which is a wholly-owned subsidiary of JHI. The Company is based in Parsippany, New Jersey. Jackson Hewitt is the second largest paid tax return preparer in the United States, having prepared approximately 2.6 million tax returns for the 2011 tax season, which is between 3% and 4% of the total market for paid tax return preparation services. In 2010, Jackson Hewitt entered into an arrangement with Wal-Mart which granted the Company the exclusive right to provide tax preparation services within Wal-Mart stores during the 2010 and 2011 tax seasons. As of April 30, 2010, which was the end of Jackson Hewitt's 2010 fiscal year, the Company had generated total revenue of approximately $213.8 million and EBITDA of approximately $46.8 million. It had a net loss of approximately $272 million in 2010, largely on account of a goodwill impairment charge of approximately $274 million. The Company's balance sheet at Oct. 31, 2010, showed $315.99 million in total assets, $378.38 million in total liabilities, and a stockholders' deficit of $62.39 million. Jackson Hewitt reported a net loss of $19.4 million for the second fiscal quarter ended Oct. 31, 2010, versus a net loss of $19.5 million in the second quarter of fiscal 2010. For fiscal year 2011, the Company estimates that it will generate total revenue of approximately $214.4 million and EBITDA, adjusted for non-recurring items and costs associated with its balance sheet restructuring, of approximately $48.3 million. Moelis & Co. is Jackson Hewitt's financial adviser and Skadden, Arps, Slate, Meagher & Flom LLP serves as bankruptcy counsel. Garden City Group is the claims and notice agent. JOHN D OIL: Incurs $554,950 First Quarter Net Loss -------------------------------------------------- John D. Oil and Gas Company filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $554,950 on $492,436 of total revenues for the three months ended March 31, 2011, compared with a net loss of $92,359 on $819,571 of total revenues for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $8.53 million in total assets, $12.28 million in total liabilities and a $3.75 million total deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/YKgoDL About John D. Oil Mentor, Ohio-based John D. Oil and Gas Company is in the business of acquiring, exploring, developing, and producing oil and natural gas in Northeast Ohio. The Company currently has fifty-eight producing wells. The Company reported a net loss of $1.38 million on $2.63 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $2.69 million on $4.04 million of total revenues during the prior year. As reported by the TCR on April 7, 2011, Maloney + Novotny LLC, in Cleveland, Ohio, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company has suffered recurring losses and has $9.5 million of debt currently due and subject to a forbearance. JUMA TECHNOLOGY: Adam Benowitz Discloses 83.1% Equity Stake ----------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Adam Benowitz and his affiliates disclosed that they beneficially own 222,912,139 shares of common stock of representing 83.1% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/yxGnpN About Juma Technology Farmingdale, N.Y.-based Juma Technology Corp. is a highly specialized convergence systems integrator with a complete suite of services for the implementation and management of an entity's data, voice and video requirements. The Company reported a net loss of $10.14 million on $1.96 million of sales for the year ended Dec. 31, 2010, compared with a net loss of $12.40 million on $1.08 million of sales during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $3.45 million in total assets, $23.28 million in total liabilities, and a $19.83 million stockholders' deficiency. As reported by the TCR on April 4, 2011, Seligson & Giannattasio, LLP, in White Plains, New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring losses. The realization of a major portion of its assets is dependent upon its ability to meet its future financing needs and the success of its future operations. JUNIPER GROUP: Incurs $4.16 Million First Quarter Net Loss ---------------------------------------------------------- Juniper Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss available to common stockholders of $4.16 million on $32,823 of wireless infrastructure services for the three months ended March 31, 2011, compared with net income available to common stockholders of $1.38 million on $990,671 of wireless infrastructure revenue for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $800,510 in total assets, $21.34 million in total liabilities and a $20.54 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/cB0S1t About Juniper Group Boca Raton, Fla.-based Juniper Group, Inc., is a holding company. The Company was incorporated in the State of Nevada in 1997 and conducts its business through indirect wholly-owned subsidiaries. The Company's wireless infrastructure services operating subsidiaries primarily focus their activities in the Eastern and Central United States. The Company's intention is to be able to support the increased demand in the deployment of wireless infrastructure services with leading wireless telecommunication companies in providing them with maintenance and upgrading of wireless telecommunication network sites, site acquisitions, site surveys, co-location facilitation, tower construction and antenna installation to tower system integration, hardware and software installations. As reported by the TCR on April 21, 2011, Liebman Goldberg & Hymowitz, LLP, in Garden City, New York, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has a working capital deficiency and has suffered recurring losses from operations. JVC HOMES: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: JVC Homes, Inc. P.O. Box 1108 Wake Forest, NC 27588 Bankruptcy Case No.: 11-03927 Chapter 11 Petition Date: May 20, 2011 Court: U.S. Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: Douglas Q. Wickham, Esq. HATCH, LITTLE & BUNN, LLP P.O. Box 527 Raleigh, NC 27602 Tel: (919) 856-3940 Fax: (919) 856-3950 E-mail: dqwickham@hatchlittlebunn.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nceb11-03927.pdf The petition was signed by Robert H. Jones, president. KB HOME: Moody's Downgrades CFR to 'B2'; Outlook Stable ------------------------------------------------------- Moody's Investors Service downgraded KB Home's corporate family rating, probability of default rating and senior unsecured note rating to B2 from B1. At the same time, Moody's affirmed the company's SGL-2 speculative grade liquidity rating. The rating outlook is stable. The downgrade reflects the company's elevated leverage, negative earnings and negative cash flow generation (as well as other credit metrics that are weak for the rating category). In Moody's view, it will take longer than previously expected for the company to improve its operating performance and restore its credit metrics as deliveries and new orders continue to be constrained, and the homebuilding industry continues to face multiple pressures. RATINGS RATIONALE The B2 rating reflects Moody's expectation that KB Home will continue to generate negative earnings and cash flows. The company's cash from operations weakened significantly over the past several years, declining from over $1 billion in 2007 to negative $134 million in 2010 (as the benefits from inventory reduction cycle were concluded), and is likely to remain weak going forward. In Moody's view, KB Home's homebuilding debt/capitalization leverage (adjusted for operating leases and recourse joint venture debt) of 79.3% at February 28, 2011 is high and is likely to remain elevated in the intermediate term. Moody's also notes that the company's potential joint venture exposure is higher than most of its peers. The company's ratings are supported by its solid unrestricted cash position of $736 million at February 28, 2011, lack of financial maintenance covenants and lack of meaningful debt maturities in the near term (the two upcoming debt maturities are $100 million of senior notes in 2011 and $250 million of senior notes in 2014). The speculative grade liquidity rating of SGL-2 reflects KB Home's very good internal liquidity, given its $736 million of unrestricted cash at February 28, 2011, and no financial maintenance covenants, contrasted with limited external liquidity sources since the company does not have a committed revolving credit facility, and somewhat limited opportunities to monetize excess assets quickly. The stable rating outlook presumes that the company will be able to improve its financial performance and credit metrics over the intermediate time horizon. Moody's recognizes that risks associated with general economic weakness may continue to hamper new household creation and new home purchases, industry-wide lack of pricing power, and large inventory of unsold homes, including foreclosures in most markets. A return to consistent profitability and reducing its debt/capitalization leverage to about 60% could lead us to consider the rating for an upgrade. Continued losses, weakening liquidity, and debt/capitalization increasing to about 85% could create downward pressure on the ratings. The principal methodology used in rating KB Home was the Global Homebuilding Industry Methodology, published March 2009. Other methodologies used include Loss Given Default for Speculative Grade Issuers in the US, Canada, and EMEA, published June 2009. Headquartered in Los Angeles, KB Home is one of the country's largest homebuilders, with homebuilding revenues and a consolidated net loss for the twelve months ended February 28, 2011 of approximately $1.5 billion and $129 million, respectively. KEYUAN PETROCHEMICALS: Receives NASDAQ Delinquency Notice --------------------------------------------------------- Keyuan Petrochemicals, Inc. has received an additional notice from NASDAQ stating the Company is not in compliance with Listing Rule 5250(c)(1) for continued listing due to not filing its Form 10-Q for the three months ended March 31, 2011 by the due date of May 16, 2011. As previously announced, the Company received notice from the Nasdaq on April 7, 2011, stating that the Company was not in compliance with Listing Rule 5250(c)(1) for continued listing due to not filing its Form 10-K for the year ended December 31, 2010 by the due date of March 31, 2011 (extended to April 15, 2011 by Exchange Act Rule 12b-25). To maintain its NASDAQ listing, Keyuan has submitted a plan of compliance to the NASDAQ on April 26, 2011, addressing issues it believes will support its request for an extension to regain compliance. If the plan is accepted, Keyuan may be able to continue its listing during the plan period up to October 12, 2011, during which time the Company will be subject to periodic review to determine if it is making progress consistent with the plan. If the plan is not accepted, or if the plan is accepted but the Company fails to make progress consistent with the plan, or it is not in compliance by October 12, 2011, Keyuan will be subject to delisting proceedings. Under NASDAQ rules, Keyuan has the right to appeal any determination by NASDAQ to initiate delisting proceedings. About Keyuan Petrochemicals Keyuan Petrochemicals, Inc., established in 2007 and operating through its wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is located in Ningbo, China and is a leading independent manufacturer and supplier of various petrochemical products. Having commenced production in October 2009, Keyuan's operations include an annual petrochemical manufacturing design capacity of 720,000 MT for a variety of petrochemical products, with facilities for the storage and loading of raw materials and finished goods, and a technology that supports the manufacturing process with low raw material costs and high utilization and yields. In order to meet increasing market demand, Keyuan plans to expand its manufacturing capacity to include a SBS production facility, additional storage capacity, a raw material pre-treatment facility, and an asphalt production facility. KINGSWAY AMIGO: A.M. Best Withdraws 'C++' Fin'l Strength Rating --------------------------------------------------------------- A.M. Best Co. has withdrawn the financial strength rating of C++ (Marginal) and issuer credit rating of "b" of Kingsway Amigo Insurance Company (Amigo) (Miami, FL) at the company's request. The ratings were recently downgraded on April 29, 2011. KT SPEARS: Files List of 20 Largest Unsecured Creditors ------------------------------------------------------- KT Spears Creek, LLC, filed with the U.S. Bankruptcy Court for the Southern District of Texas a list of its 20 largest unsecured creditors, disclosing: Name of creditor Nature of claim Amount of Claim ---------------- --------------- --------------- RBC Pending Lawsuit $22,646,397 P.O. Box 1220 Rocky Mount, NC 27802-1220 First Savers Bank, Pending Lawsuit $6,300,000 a division of Plantation Federal Bank c/o Amy L.B. Hill 1310 Gadsden Street, P.O. Box 11449 Columbia, SC 29211 First Palmetto Savings Bank Loan $870,000 1636 HWY 17 North Columbia, SC 29223 Richland County South Taxes $25,000 Carolina Nexsen Pruett, LLC Legal Fees $10,000 Orkin, Inc. Vendor $276 Signs by Tomorrow Vendor $160 Hyco Plumbing, Inc. Judgment Unknown IES Residential, Inc. Judgment Unknown About KT Spears KT Spears Creek, LLC, is a real estate holding company. One of these real estate holding includes an operating apartment complex and an additional area on which a second apartment complex may be constructed. The operating apartment complex, Greenhill Parish Crossing Apartments Homes, located in Elgin, S.C., is substantially occupied. The Debtor's remaining two real estate holdings are comprised of undeveloped commercial land. KT Spears Creek filed for Chapter 11 bankruptcy (Bankr. S.D. Tex. Case No. 11-33991) in Houston, Texas, on May 3, 2011, with Judge Letitia Z. Paul presiding. Magdalene Duchamp Conner, Esq., at Okin Adams & Kilmer LLP, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $13,104,543 in assets and $29,851,834 in liabilities as of the Chapter 11 filing. LA JOLLA: Incurs $6.51-Mil. First Quarter Net Loss -------------------------------------------------- La Jolla Pharmaceutical Company filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss and comprehensive loss attributable to common stockholders of $6.51 million for the three months ended March 31, 2011, compared with a net loss and comprehensive loss attributable to common stockholders of $1.76 million for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $6.74 million in total assets, $12.58 million in total liabilities, all current, $5.57 million in Series C-1 1 redeemable convertible preferred stock, and a $11.41 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/D5q4jt About La Jolla Pharmaceutical San Diego, Calif.-based La Jolla Pharmaceutical Company (OTC BB: LJPC) -- http://www.ljpc.com/-- is a biopharmaceutical company that has historically focused on the development and testing of Riquent as a treatment for Lupus nephritis. The Company reported a net loss of $3.76 million on $0 of revenue from collaboration agreement for the year ended Dec. 31, 2010, compared with a net loss of $8.63 million on $8.12 million of revenue from collaboration agreement during the prior year. As reported by the TCR on April 18, 2011, BDO USA, LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations, an accumulated deficit of $428 million as of Dec. 31, 2010 and has no current source of revenues. LA JOLLA: Has 13.53 Million Issued and Outstanding Common Shares ---------------------------------------------------------------- La Jolla Pharmaceutical Company reported that on May 16, 2011, it had converted approximately 14 shares of Series C-1 1 Convertible Preferred Stock into 2,277,166 shares of common stock. Following these conversions, the Company had a total of 13,537,326 shares of common stock issued and outstanding. About La Jolla Pharmaceutical San Diego, Calif.-based La Jolla Pharmaceutical Company (OTC BB: LJPC) -- http://www.ljpc.com/-- is a biopharmaceutical company that has historically focused on the development and testing of Riquent as a treatment for Lupus nephritis. The Company reported a net loss of $3.76 million on $0 of revenue from collaboration agreement for the year ended Dec. 31, 2010, compared with a net loss of $8.63 million on $8.12 million of revenue from collaboration agreement during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $6.93 million in total current assets, $6.40 million in total current liabilities $47,000 in Series C-1 redeemable convertible preferred stock, and $482,000 in total stockholders' equity. As reported by the TCR on April 18, 2011, BDO USA, LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations, an accumulated deficit of $428 million as of Dec. 31, 2010 and has no current source of revenues. LAKE PLEASANT: Files Schedules of Assets and Liabilities -------------------------------------------------------- Lake Pleasant Group, LLP, has filed with the U.S. Bankruptcy Court for the District of Arizona its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $15,775,860 B. Personal Property $4,403 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $10,150,552 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $150,000 ----------- ----------- TOTAL $15,780,263 $10,301,552 About Lake Pleasant Phoenix, Ariz.-based Lake Pleasant Group, LLP, filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 11-10170) on April 13, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate DLGC II, LLC (Bankr. D. Ariz. Case No. 11-10174) filed a separate Chapter 11 petition on April 13, 2011. LIBERTY BANKERS: A.M. Best Places 'B' FSR Under Review ------------------------------------------------------ A.M. Best Co. has placed the financial strength rating (FSR) of B- (Fair) and the issuer credit ratings (ICR) of "bb-" of Liberty Bankers Life Insurance Company (Liberty Bankers) and its primary life insurance subsidiary, American Benefit Life Insurance Company (American Benefit), under review with negative implications. Both companies are domiciled in Edmond, OK. The rating action primarily reflects A.M. Best's concerns regarding the decline in absolute and risk-adjusted capitalization in 2010 as a result of a large dividend to its ultimate parent, Realty Advisors, Inc. (Realty Advisors), as well as Liberty Bankers' elevated level of delinquent direct commercial mortgage loans. The under review status with negative implications also reflects the uncertainty of the current financial state of the real estate operations of Realty Advisors as 2010 financial statements for the organization are not yet available. A.M. Best notes that Realty Advisors has contributed a significant amount of capital since Liberty Bankers was purchased in 2004, which resulted in a considerable increase in capital and surplus levels prior to this most current period. The ratings of Liberty Bankers and American Benefit will remain under review pending further discussions with management on specific strategic initiatives that have been proposed to address capital issues and its exposure to the real estate operations of Realty Advisors. LIBERTY MEDIA: S&P Keeps 'BB-' Rating on CreditWatch Developing --------------------------------------------------------------- Standard & Poor's Ratings Services kept its 'BB-' ratings, including the corporate credit rating, on Englewood, Colo.-based Liberty Media Corp., on CreditWatch, where they were placed with developing implications on June 25, 2010. The rating action followed Liberty Media's proposal to acquire a 70% interest in Barnes & Noble Inc. (B&N; not rated since September 2004) for cash consideration totaling roughly $1 billion. "The developing implications of the CreditWatch listing mean that we will raise, lower, or affirm the ratings following our review. We based the CreditWatch initially on the company's plan to separate its Liberty Capital and Liberty Starz tracking stock groups from its Liberty Interactive tracking stock group. We also now intend to evaluate the B&N acquisition as part of our CreditWatch review," S&P stated. The B&N acquisition is conditional on financing and on the participation of B&N chairman Leonard Riggio, as to both his continuing equity ownership and his continuing role in management. Liberty Media would attribute this controlling interest to Liberty Capital Group. Liberty Media expects to contribute about $500 million in cash to the proposed transaction, with the balance likely to be in debt financing. B&N has been investing in electronic readers and digital books to offset the drop in traditional book sales and to compete with Amazon.com. "Digital books and equipment sales are beginning to offset the traditional-book sales decline, but we believe B&N's profit margin will likely decrease over the foreseeable future because digital books have lower margins," said Standard & Poor's credit analyst Andy Liu. The split-off plan proposed last June would create a newly formed company, currently referred to as Newco, encompassing the operations and assets of Liberty Capital and Liberty Starz. In resolving the CreditWatch listing, Standard & Poor's will discuss with management its business and financial strategies for Liberty Media and Newco, and weigh the business fundamentals of B&N and the advantages of Newco's ownership of B&N. "We expect to resolve the CreditWatch listing formally upon the completion of the split-off, while will likely be completed in this summer. B&N's board of directors has yet to evaluate Liberty Media's proposal. The completion date is difficult to estimate," S&P added. LIQUIDMETAL TECHNOLOGIES: Incurs $9.19-Mil. 1st Qtr. Net Loss ------------------------------------------------------------- Liquidmetal Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $9.19 million on $2.86 million of revenue for the three months ended March 31, 2011, compared with a net loss of $30,000 on $2.70 million of revenue for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $14.23 million in total assets, $42.91 million in total liabilities and a $28.68 million total shareholders' deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/dQZala About Liquidmetal Technologies Based in Rancho Santa Margarita, Calif., Liquidmetal Technologies, Inc. and its subsidiaries are in the business of developing, manufacturing, and marketing products made from amorphous alloys. Liquidmetal Technologies markets and sells Liquidmetal(R) alloy industrial coatings and also manufactures, markets and sells products and components from bulk Liquidmetal alloys that can be incorporated into the finished goods of its customers across a variety of industries. The Company also partners with third- party licensees and distributors to develop and commercialize Liquidmetal alloy products. The Company classifies operations into two reportable segments: Liquidmetal alloy industrial coatings and bulk Liquidmetal alloys. Choi, Kim & Park LLP, in Los Angeles, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The Company has experienced losses from continuing operations during the last three fiscal years and has an accumulated deficit of $165,879 as of Dec. 31, 2010. Net cash provided by continuing operations for the year ended Dec. 31, 2010 was $10,080. At Dec. 31, 2010, working capital deficit was $14,180. As of Dec. 31, 2010, the Company's principal source of liquidity is $5,049 of cash and $1,731 of trade accounts receivable. The Company's restated statement of operations reflects a net loss of $4.69 million on $30.27 million of revenue for the year ended Dec. 31, 2010, compared with net income of $251,000 on $16.94 million of revenue during the prior year. LITHIUM TECHNOLOGY: Delays First Quarter Form 10-Q -------------------------------------------------- Lithium Technology Corporation informed the U.S. Securities and Exchange Commission that it requires additional time to complete its quarterly financial statements and corresponding narratives for management's discussion and analysis. As a result of these factors, the Company has been unable to complete and file its quarterly report on Form 10-Q for the period ended March 31, 2011, without unreasonable effort and expense. About Lithium Technology Plymouth Meeting, Pa.-based Lithium Technology Corporation is a mid-volume production stage company that develops large format lithium-ion rechargeable batteries to be used as a new power source for emerging applications in the automotive, stationary power, and national security markets. The Company reported a net loss of $7.25 million on $6.35 million of products and services sales for the year ended Dec. 31, 2010, compared with a net loss of $10.51 million on $7.37 million of product and services sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $10.78 million in total assets, $34.16 million in total liabilities and $23.38 million in total stockholders' deficit. Amper, Politziner & Mattia, LLP, Edison, New Jersey, noted that the Company has recurring losses from operations since inception and has a working capital deficiency that raise substantial doubt about its ability to continue as a going concern. $7 Mil. Funding Needed As reported by the TCR on April 8, 2011, the Company entered into a number of financing transactions and is continuing to seek other financing initiatives. The Company said it will need to raise additional capital to meet its working capital needs and to complete its product commercialization process. Such capital is expected to come from the sale of securities and debt financing. The Company believes that if it raises approximately $7 million in debt and equity financings, the Company would have sufficient funds to meet its needs for working capital and capital expenditures and to meet expansion plans during 2011. If the Company is not able to raise such additional capital, the Company will assess all available alternatives including a sale of the Company's assets or merger, the suspension of operations and possibly liquidation, auction, bankruptcy, or other measures. LOCATEPLUS HOLDINGS: Incurs $224,260 Net Loss in 1st Quarter ------------------------------------------------------------ LocatePLUS Holdings Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $224,260 on $1.68 million of revenue for the three months ended March 31, 2011, compared with a net loss of $218,787 on $2.01 million of revenue for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $2.08 million in total assets, $12.25 million in total liabilities and a $10.17 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/2OGXTg About LocatePLUS Holdings Beverly, Mass.-based LocatePLUS Holdings Corporation, through itself and its wholly-owned subsidiaries LocatePLUS Corporation, Worldwide Information, Inc., Entersect Corporation, Dataphant, Inc., and Employment Screening Profiles, Inc. are business-to- business, business-to-government and business-to-consumer providers of public information via its proprietary data integration solutions. The Company reported a net loss of $1.61 million on $7.89 million of revenue for the twelve months ended Dec. 31, 2010, compared with a net loss of $2.84 million on $7.26 million of revenue during the prior year. As reported by the TCR on April 21, 2011, Livingston & Haynes, P.C., in Wellesley, Massachusetts, noted that the Company has an accumulated deficit at Dec. 31, 2010 and has suffered substantial net losses in each of the last two years, which raise substantial doubt about the company's ability to continue as a going concern. LONGVIEW POWER: Moody's Rates Secured Credit Facilities at 'B3' --------------------------------------------------------------- Moody's Investors Service has assigned a rating of B3 to approximately $690 million of amended, extended and upsized credit facilities proposed by Longview Power, LLC (Longview). The facilities are an extension of Longview's existing $1.1 billion of credit facilities which, as part of this transaction, will be upsized to $1.175 billion. Concurrent with this action Moody's also downgraded the existing credit facilities to B3 from B2. The outlook for Longview has been revised to stable from negative. Longview's B3 rating is driven by Moody's expectation of extremely weak financial performance from this nearly completed 695 MW super critical coal-fired power project in West Virginia. "Notwithstanding the competitive advantage that should result from the project being located adjacent to its relatively low cost supply of coal, persistent weak prices for energy within the western portion of PJM will make it challenging for the project to service the tremendous amount of debt that has been incurred for construction of the project," said Laura Schumacher, Moody's Vice President, Senior Analyst. In its first year of operations, the project is not expected to generate sufficient cash flow from operations to fully cover its debt service obligations, and will likely need to draw on its external liquidity sources. Given current market conditions, and the potential for continued increases in coal mining costs and start-up operational expenses, in scenarios tested by Moody's, this condition could persist over the medium term. The stable outlook considers Longview's 300 MW Contract for Differences with PPL Energy Plus under which it will receive energy payments in the range of $50 MWh beginning in 2012 extending through May 2016, as well as the various actions that have been taken by GenPower and First Reserve to support the credit facilities. In conjunction with the amendment, First Reserve will contribute an additional $35 million of equity to Longview to support construction completion. First Reserve will also cause the project's coal supplier, Mepco LLC, and its parent and affiliates (Mepco) to become subsidiaries of Longview's direct parent and become guarantors under the credit facilities; Mepco will also provide first priority security to the lenders. In addition, 75% of Mepco's excess cash will be deposited into the Longview Revenue Account becoming available to support Longview's expenses and debt service. Based on Longview's assumptions, in 2013, the additional cash provided by Mepco results in a debt service coverage ratio (as calculated by Moody's) of approximately 1.25 times, absent the Mepco cash, Longview's debt service coverage would remain below 1.0 times. First Reserve will also contribute approximately $100 million in equity to Mepco to repay and terminate its credit facilities. As a result of these actions, Moody's believes the project to be well positioned in the B3 rating category enabling it to withstand weak market conditions for some time. Completion of the project is currently anticipated in mid-August 2011, approximately five months later than originally anticipated, and two weeks prior to the August 31, 2011 Date Certain for completion required by Longview's existing credit agreement. Issues surrounding and delaying completion are reported to be largely resolved, however the schedule remains somewhat aggressive. In conjunction with this amendment, Longview is seeking to extend the Date Certain until December 31, 2011, which should provide ample cushion for completion. The amended, extended and upsized credit facilities include a proposed term loan of up to $590 million due in October 2017. Longview is offering existing term and construction loan lenders the opportunity to extend up to 60% of its existing term and construction loan facilities, and is upsizing the facilities by $50 million to fund restricted cash that will be utilized to collateralize letters of credit (including a debt service reserve letter of credit). Longview is also seeking to increase the amount of its $75 million revolving credit facilities by $25 million and to extend its maturity by one year to February 2014. Moody's views the provision of additional liquidity and extension of time to refinancing as supportive of credit quality; however Moody's notes that 40% of the term loans, the revolving and letter of credit facilities, and the Dunkard Creek credit facility all remain to be refinanced or extended prior to their 2014 maturities. As a result of the proposed amendment, the rating is well positioned within the B3 rating category, and is not likely to be revised over the near-to medium term. Longer term, the rating could be adjusted upward if there is a sustained improvement in market conditions for power, or a reduction in leverage, such that Moody's could anticipate a significant improvement in cash flow metrics, if for example the ratio of cash flow from operations to debt (including the Dunkard Creek credit facility) were to be in the range of 5% and if debt service coverage were to remain above 1.3 times assuming the project has demonstrated operating performance commensurate with the forecast and if the 2014 maturities are addressed. The rating could be adjusted downward if there were to be chronic operational issues that are not able to be addressed with contingency funds, or if Moody's was to anticipate Longview's liquidity, including cash from operations, cash on hand and available credit facilities, would be insufficient to maintain debt service. In the event Longview is unsuccessful in completing the proposed amendments, the rating would likely remain B3; however the outlook would likely be revised to negative from stable. Longview Power, LLC is a special purpose entity created to construct, own, and operate a 695MW coal-fired power plant to be located in Maidsville, WV, just south of the Pennsylvania border and approximately 70 miles south of Pittsburgh. The project was developed by GenPower, LLC and sponsored by First Reserve, a private equity firm specializing in energy industry investments. The principal methodology used in this rating was Power Generation Projects published in December 2008. MAJESTIC TOWERS: Has Interim Access True North's Cash Collateral ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California authorized, on an interim basis, Majestic Towers, Inc., to use True North Mezzanine Investment Fund SPE, LLC's cash collateral. A hearing to consider the Debtor's request to further access to the cash collateral is set for June 2, 2011, at 2:00 p.m. Objections, if any, are due May 27. True North asserts a security interest on the Debtor's property -- The Wilshire Hotel -- located at 3515 Wilshire Boulevard, Los Angeles, California. The Debtor would use the cash collateral to operate its business postpettion. The Debtor is also authorized to collect approximately $180,000 - $200,000 from the City of Los Angeles and the Los Angeles County Sheriff on account of funds levied upon from the operations of the Wilshire Hotel. The Debtors is permitted a variance of 10% on any given line item in the Budget. In addition, the Debtor is also authorized and directed to pay postpetition Transient Occupancy Taxes due and owing to the City of Los Angeles and will also timely file reports regarding the taxes that are required on a monthly basis, regardless of whether or not such amounts are reflected in the budget. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant True North replacement liens in the Debtors' postpetition cash and accounts receivable and the proceeds thereof. The Debtor also said that True North is adequately protected by a substantial equity cushion. Taxing authority and judgment creditor the City of Los Angeles, Office of Finance opposed to the Debtors' cash collateral motion. According to the creditor, the Debtors lost title of the levied accounts upon notice of levy and since no credited filed a third party claim, the city has title to the levied bank and account receivable funds. The Debtor is represented by: Victor A. Sahn, Esq. Mark S. Horoupian, Esq. SULMEYERKUPETZ, A Professional Corporation 333 South Hope Street, Thirty-Fifth Floor Los Angeles, CA 90071-1406 Tel: (213) 626-2311 Fax: (213) 629-4520 E-mails: vsahn@sulmeyerlaw.com mhoroupian@sulmeyerlaw.com About Majestic Towers, Inc. Los Angeles, California-based, Majestic Towers, Inc., filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 11-28407) on April 28, 2011. Bankruptcy Judge Sheri Bluebond presides the case. The Debtor estimated assets and debts at $10 million to $50 million. MASTER SILICON: Incurs $177,621 Net Loss in March 31 Quarter ------------------------------------------------------------ Master Silicon Carbide Industries, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $177,621 on $4.32 million of revenues for the three months ended March 31, 2011, compared with a net loss of $439,423 on $828,497 of revenue for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $29.21 million in total assets, $10.69 million in total liabilities, $10.00 in redeemable preferred stock-A, $10.00 in redeemable preferred stock-B, and a $1.48 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/t77bZR About Master Silicon Lakeville, Conn.-based Master Silicon Carbide Industries, Inc., through its indirectly wholly-owned operating subsidiary Yili China, produces and sells in China high quality "green" silicon carbide and lower-quality "black" silicon carbide (together, hereinafter referred to as "SiC"). SiC is a non-metallic compound that has special chemical properties and a level of hardness that is similar to diamonds, is produced by smelting quartz sand and refinery coke at temperatures ranging from approximately 1,600 to 2,500 degrees centigrade in a graphite electric resistance furnace. As reported by the TCR on April 7, 2011, Child, Van Wagoner & Bradshaw, PLLC, in Salt Lake City, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has cash flow constraints, an accumulated deficit, and has suffered recurring losses from operations. MAYA ASSURANCE: A.M. Best Cuts Financial Strength Rating to 'D' --------------------------------------------------------------- A.M. Best Co. has downgraded the financial strength rating to D (Poor) from B (Fair) and issuer credit rating to "c" from "bb" of Maya Assurance Company (Maya) (Long Island City, NY). The outlook for both ratings has been revised to negative from stable. Concurrently, A.M. Best has withdrawn the ratings at the company's request. The rating actions reflect Maya's substantial underwriting and operating losses in the fourth quarter of 2010, which resulted in a 57% decline in policyholders' surplus for the year and substantially weakened risk-adjusted capitalization. The ratings also reflect the company's significant financial and operating leverage, as well as the challenges it will continue to face as a relatively new company writing commercial auto liability and no- fault coverages in the highly competitive New York City metropolitan area for-hire-livery market. These concerns are partially offset by Maya's recent corrective actions to improve underwriting performance, including emphasizing independent owner operator versus fleet business, and ongoing initiatives to raise capital to resume its business plans and growth strategies. The outlook for the ratings is reflective of the aforementioned concerns and risks of potential further adverse deviation at Maya. MEDICAL CONNECTIONS: Posts $867,400 Net Loss in March 31 Quarter ---------------------------------------------------------------- Medical Connections Holdings, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $867,423 on $2.0 million of revenue for the three months ended March 31, 2011, compared with a net loss of $2.5 million on $1.4 million of revenue for the same period last year. The Company's balance sheet at March 31, 2011, showed $3.3 million in total assets, $538,039 in total liabilities, and stockholders' equity of $2.8 million. As reported in the TCR on April 6, 2011, De Meo, Young, McGrath, in Boca Raton, Fla., expressed substantial doubt about Medical Connections Holdings' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's dependence on outside financing, lack of sufficient working capital, and recurring losses from consolidated operations. A full-text copy of the Form 10-Q is available for free at: http://is.gd/CV81Jm Boca Raton, Fla.-based Medical Connections Holdings, Inc., is a healthcare staffing company which provides staffing services for allied professionals and nurses to the Company's clients on a national basis. MEDPACE INC: S&P Gives 'B+' Corp. Credit Rating; Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'B+' corporate credit rating to Cincinnati, Ohio-based Medpace Inc. "At the same time, we assigned a preliminary 'B+' senior secured debt rating and a preliminary '4' recovery rating, indicating expectations of average recovery (30%-50%) in the event of a default, to Medpace's $335 million senior secured debt facility, which consists of a $50 million senior secured revolver due 2016 and $285 million senior secured term loan due 2017," S&P related. "The preliminary ratings on Medpace reflect the company's weak business risk profile, given its position as a small player in the broader market for contract research services, the uncertain demand in the contract-based business, and the company's aggressive financial risk profile following its leveraged buyout by financial sponsor CCMP Capital," said Standard & Poor's credit analyst Arthur Wong, adding that Medpace's solid niche position in metabolic diseases and oncology, and the specialized nature of its services that enable it to generate margins that are high relative to its peer contract research organizations (CROs), partly mitigate these factors. The outlook is stable. "We believe that Medpace will benefit from the improving trends in the CRO industry," said Mr. Wong. "We estimate that Medpace's revenues should grow in the high-single- digit range and maintain its relatively high margins, enabling the company to generate the solid free cash flows that will enable it to steadily reduce debt over the next year. However, the company is a small niche player in an industry that is increasingly favoring larger players." The current ratings do not contemplate large acquisitions or significant dividends in the next two years. MEDPACE INC: Moody's Assigns 'B2' CFR; Outlook Stable ----------------------------------------------------- Moody's Investors Service assigned first time ratings to Medpace, Inc., including a B2 Corporate Family Rating and a B3 Probability of Default Rating. Moody's also assigned a B2 rating to the proposed senior secured credit facility, including a $285 million term loan and a $50 million revolver. The proceeds from the term loan, along with approximately $200 million of new common equity, will be used to finance CCMP Capital's purchase of an 80% ownership stake in Medpace. Medpace's management will remain a minority investor in the company. The outlook for the ratings is stable. Moody's assigned these ratings: -- Corporate Family Rating, B2 -- Probability of Default Rating, B3 -- $50 million senior secured revolving credit facility due 2016, rated B2, LGD3, 33%; -- $285 million senior secured term loan due 2017, rated B2, LGD3, 33%; The outlook is stable. The rating actions are subject to the conclusion of the transaction, as proposed, and Moody's review of final documentation. The B2 Corporate Family Rating reflects the company's limited size, both in absolute terms and relative to significantly larger competitors as well as the debt burden that is being incurred as a result of the company's leveraged buyout. The ratings are also constrained by risks inherent in the CRO industry. Moody's views the industry as highly competitive and subject to pricing pressure and contract cancellation risk. Over time, Moody's believes pharmaceutical companies will increasingly look to work with fewer contract service providers, potentially putting pressure on the smaller CROs, like Medpace. The ratings are supported by Medpace's focus on value-added specialty work and its expertise in cardiovascular and metabolic studies, which has allowed Medpace to maintain EBITDA margins that are significantly higher than other CRO peers. The ratings are also supported by the company's track record of free cash flow generation and Moody's expectation that this will continue, despite this leveraging transaction. Free cash flow will be supported by healthy EBITDA margins, low cash taxes and modest capital expenditure needs. Further, the ratings reflect the considerable equity (roughly 50% of the purchase price) being contributed to the business by CCMP and management. Given Medpace's small scale and risks inherent in the CRO industry, the company would have to sustain credit metrics that are very strong for the B1 rating category in order for Moody's to consider a positive outlook or upgrade. Specifically, if adjusted financial leverage was sustained below 3.0 times and free cash flow to debt was sustained above 15%, Moody's could upgrade the ratings. Moody's could downgrade the ratings if Medpace were to experience an elevated level of contract cancellations or poor new business wins that leads to top-line deterioration. Further, increased pricing pressure or competition that leads to material erosion in EBITDA margins could also have negative rating implications. From a metrics perspective, if adjusted debt/EBITDA increases to 5.5 times or if free cash flow to debt were to remain under 5% on a sustained basis, Moody's could downgrade the ratings. Further, if the company were to pursue acquisitions or shareholder dividends that result in significantly increased leverage and reduced interest coverage, the ratings could come under pressure. The principal methodology used in rating Medpace was the Global Business & Consumer Service Industry Rating Methodology, published October 2010. Other methodologies used include Loss Given Default for Speculative Grade Issuers in the US, Canada, and EMEA, published June 2009. Medpace, headquartered in Cincinnati, Ohio, is a global contract research organization ("CRO") that partners with pharmaceutical, biotechnology, and medical device companies in the development and execution of clinical trials. Approximately three-quarters of Medpace's revenue is generated from late stage (Phase II-IV) clinical trial support. The remaining revenues are generated from coordinated central reference laboratory services, as well as other services. The company operates in 30 countries worldwide and generated net service revenues of approximately $161 million for the twelve months ended March 31, 2011. METROPARK USA: Has Interim Access to Wells Fargo's Cash Collateral ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York authorized, on an interim basis, Metropark USA, Inc., to use the cash collateral of Wells Fargo Bank, National Association, as administrative agent and collateral agent. Wells Fargo, is successor by merger to Wells Fargo Retail Finance, LLC. As of the Petition Date, the Debtor owes Wells Fargo: i) $2,555,353 (inclusive of $618,840.60 of letters of credit), plus any and all interest, fees and costs, and any and all other debts or obligations under the Prepetition Senior Claim Documents; and ii) $825,000 under the Prepetition Subordinated Credit Agreement. The Debtor would use the cash collateral to fund the maintenance of its assets, payment of employees, payroll taxes, inventory suppliers and other vendors, overhead, lease expenses, and other expenses necessary for the operation of the Debtor's business. As partial adequate protection for any use or diminution in the value of the Prepetition Senior Secured Parties' interest, the Debtor will grant replacement liens and additional liens and security interests, of the highest available priority in and upon all of the properties and assets of the Debtor. As additional partial adequate protection, the Debtor will make these payments to the Prepetition Agent: a) payment of interest on the first day of each month on the Prepetition Senior Claim; b) payment of all proceeds from the Store Closing Sale; and c) reimbursement to the Prepetition Agent. About Metropark USA Metropark USA, Inc. -- http://www.metroparkusa.com/-- is a Los Angeles retail chain with 70 stores in 21 states. Metropark was founded in 2004 to capitalize on the large Gen Y segment (the 25- 35 year old customer) in demand for fashion-forward apparel and accessories. Its headquarters, distribution centers, and e- commerce site located in Los Angeles, California. Metropark filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-22866) on April 26, 2011. Cathy Hershcopf, Esq., Jeffrey L. Cohen, Esq., and Alex R. Velinsky, Esq., at Cooley LLP, in New York, serve as the Debtor's bankruptcy counsel. CRG Partners Group, LLC, is the Debtor's financial advisor. The Debtor disclosed total assets of $28,933,805 and total debts of $28,697,006 as of April 2, 2011. MGM RESORTS: To Sell 760MM Shares at HK$12.36-HK$15.34 Apiece ------------------------------------------------------------- MGM China Holdings Limited determined an offer price range for the 760,000,000 ordinary shares of MGM China, nominal value HK$1.00 per Share, to be offered in connection with the IPO. If issued, the Shares will represent 20% of the post-issuance capital base of MGM China. The offer price will be not more than HK$15.34 (US$1.97) per Share and is currently expected to be not less than HK$12.36 (US$1.59) per Share, unless otherwise announced. The offer price will be subject to a brokerage fee of 1%, a transaction levy of 0.003% imposed by the Securities and Futures Commission of Hong Kong, and a Hong Kong Stock Exchange trading fee of 0.005%. About MGM Resorts MGM Resorts International (NYSE: MGM) -- http://www.mgmresorts.com/-- has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, Illinois and Macau. The Company's balance sheet at March 31, 2011, showed $18.76 billion in total assets, $15.84 billion in total liabilities and $2.92 billion in total stockholders' equity. The Company reported a net loss of $1.44 billion on $6.01 billion of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.29 billion on $5.97 billion of revenue during the prior year. * * * As reported by the Troubled Company Reporter on Oct. 18, 2010, Standard & Poor's Ratings Services revised its rating outlook on MGM Resorts to stable from developing. At the same time, S&P affirmed all of its existing ratings on MGM, including the 'CCC+' corporate credit rating. The 'CCC+' corporate credit rating reflects MGM's significant debt burden, S&P's expectation for meaningful declines in cash flow generation in 2010, and the company's weak liquidity position. While MGM maintains a leading presence on the Las Vegas Strip, 2010 will be another challenging year for the Strip, and prospects for a meaningful rebound in 2011 are uncertain. The recent pricing of the primary offering of common stock has bolstered liquidity; however, the company's ability to weather the current downturn and continue to service its debt obligations over the longer term relies on continued progress toward addressing its challenging debt maturity schedule, as well as a substantial rebound in cash flow generation. The TCR also reported that Fitch Ratings revised the Rating Outlook for MGM Resorts to Positive following the company's equity issuance. In addition, Fitch affirmed the Issuer Default Rating at 'CCC'. MGM's 'CCC' IDR continues to reflect a credit profile with substantial credit risk. MGM's probability of default still displays a high sensitivity to an uninterrupted recovery in the Las Vegas market, significant reliance on a favorable refinancing and capital markets environment due to its heavy debt maturity schedule, a highly leveraged balance sheet despite potential debt reduction from the equity issuance, and a weak near-term free cash profile. In addition, MGM's obligation under the CityCenter completion guarantee continues to escalate, and Fitch believes the company is currently under-investing in its properties, which will likely impact asset quality. As reported by the TCR on March 4, 2011, Moody's upgraded MGM Resorts International's Corporate Family rating to B3 and its Probability of Default rating to Caa1. The upgrade reflects signs of modest improvement in demand trends in Las Vegas, debt repayment during 2010 from the proceeds of equity issuances, and completion of a new multi-year financing package for CityCenter (MGM's 50% owned project on the Las Vegas Strip.) MIT HOLDING: Delays Filing of First Quarter Form 10-Q ----------------------------------------------------- MIT Holding, Inc., informed the U.S. Securities and Exchange Commission that it will be delayed in filing its Form 10-Q because the review of the Company's financial statements for the three months ended March 31, 2011, has not been completed. About MIT Holding Savannah, Ga.-based MIT Holding, Inc. (OTC BB: MITD) -- http://www.mitholdinginc.com/-- distributes wholesale pharmaceuticals, administers intravenous infusions, operates an ambulatory center where therapies are administered and sells and rents home medical equipment. As reported by the TCR on April 27, 2011, Michael T. Studer CPA P.C., in Freeport, New York, expressed substantial doubt about MIT Holding's ability to continue as a going concern. The independent auditors noted that the Company negative working capital of $1.2 million and a stockholders' deficiency of $2.2 million. "From inception the Company has incurred an accumulated deficit of $8.5 million." The Company reported net income of $78,832 on $7.1 million of revenue for 2010, compared with a net loss of $1.2 million on $6.4 million of revenue for 2009. At Dec. 31, 2010, the Company's balance sheet showed $1.1 million in total assets, $3.4 million in total liabilities, and a stockholders' deficit of $2.2 million. MONEYGRAM INT'L: Request for Injunction in "Pittman" Suit Denied ---------------------------------------------------------------- A hearing was held, on May 16, 2011, in connection with the previously reported case pending in the Delaware Court of Chancery brought against MoneyGram International, Inc., by Willie R. Pittman et al. At the hearing, the plaintiffs' request for a preliminary injunction was denied. On May 12, 2011, a complaint was filed in the County Court at Law No. 3 in Dallas County, Texas, by Hilary Kramer purporting to be a class action complaint on behalf of all shareholders and a shareholder derivative complaint against the Company, Thomas H. Lee Partners, L.P., the Goldman Sachs Group, Inc., and each of the Company's directors. Ms. Kramer alleges in her complaint that she is a stockholder of the Company and asserts, among other things, (i) breach of fiduciary duty claims against the Company's directors, THL and Goldman Sachs and (ii) claims for aiding and abetting breach of fiduciary duties against Goldman Sachs. Ms. Kramer purports to sue on her own behalf and on behalf of the Company and its stockholders. Ms. Kramer seeks to, among other things, enjoin the proposed recapitalization of the Company, pursuant to which, among other things, subject to the terms and conditions in the recapitalization agreement, certain affiliates and co-investors of THL will convert all of their shares of Series B Preferred Stock of the Company into common stock of the Company and certain affiliates of Goldman Sachs will convert all of their shares of Series B-1 Preferred Stock of the Company into shares of Series D Preferred Stock of the Company. The Company intends to defend the lawsuit vigorously, including opposing any request to enjoin the recapitalization. About MoneyGram International MoneyGram International, Inc. (NYSE: MGI) -- http://www.moneygram.com/-- is a global payment services company. The Company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. MoneyGram is a New York Stock Exchange-listed company with 203,000 global money transfer agent locations in 191 countries and territories. The Company reported net income of $43.80 million on $1.17 billion of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.91 million on $1.16 billion of total revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $4.97 billion in total assets, $4.90 billion in total liabilities, $1.03 billion in total mezzanine equity, and a $955.76 million total stockholders' deficit. * * * According to the Troubled Company Reporter on July 1, 2010, Fitch Ratings has affirmed the Issuer Default Ratings for MoneyGram International Inc. and MoneyGram Payment Systems Worldwide, Inc., at 'B+'. Outlook is stable. Fitch noted that the ratings could be negatively impacted by further declines in remittance volumes driven by macro economic factors or decreases in migrant labor populations worldwide. MONEYGRAM INT'L: Stockholders OK 2005 Incentive Plan Amendments --------------------------------------------------------------- At the 2011 Annual Meeting of Stockholders of MoneyGram International, Inc., the Company's stockholders approved amendments to the MoneyGram International, Inc., 2005 Omnibus Incentive Plan in order to increase the aggregate number of shares reserved for issuance under the Omnibus Plan from 47 million to 57 million shares. The Company's stockholders elected nine individuals to serve as directors of the Company for a one-year term expiring at the Company's 2012 annual meeting of stockholders: (1) J. Coley Clark (2) Victor W. Dahir (3) Thomas M. Hagerty (4) Scott L. Jaeckel (5) Seth W. Lawry (6) Ann Mather (7) Pamela H. Patsley (8) Ganesh B. Rao (9) W. Bruce Turner The Company's stockholders also: (a) ratified the appointment of Deloitte & Touche LLP as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2011; (b) approved on an advisory basis the compensation of the named executive officers; and (c) approved on an advisory basis the holding of an advisory vote on executive compensation every three years. About MoneyGram International MoneyGram International, Inc. (NYSE: MGI) -- http://www.moneygram.com/-- is a global payment services company. The Company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. MoneyGram is a New York Stock Exchange-listed company with 203,000 global money transfer agent locations in 191 countries and territories. The Company reported net income of $43.80 million on $1.17 billion of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.91 million on $1.16 billion of total revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $4.97 billion in total assets, $4.90 billion in total liabilities, $1.03 billion in total mezzanine equity, and a $955.76 million total stockholders' deficit. * * * According to the Troubled Company Reporter on July 1, 2010, Fitch Ratings has affirmed the Issuer Default Ratings for MoneyGram International Inc. and MoneyGram Payment Systems Worldwide, Inc., at 'B+'. Outlook is stable. Fitch noted that the ratings could be negatively impacted by further declines in remittance volumes driven by macro economic factors or decreases in migrant labor populations worldwide. MONTPELIER RE HOLDINGS: A.M. Best Affirms 'bb' Debt Ratings ----------------------------------------------------------- A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit ratings (ICR) of "a-" of Montpelier Reinsurance Ltd. (Montpelier) (Pembroke, Bermuda) and its wholly owned subsidiary, Montpelier US Insurance Company (MUSIC) (Oklahoma City, OK). Concurrently, A.M. Best has revised the outlook to positive from stable and affirmed the ICR of "bbb-" and all existing debt ratings of the parent company, Montpelier Re Holdings Ltd. (Montpelier Re) (Pembroke, Bermuda) [NYSE: MRH]. The ratings for Montpelier reflect its excellent risk-adjusted capitalization, solid operating performance, diversified business profile and good competitive position. These positive characteristics are the result of an experienced management team and robust enterprise risk management framework. Partially offsetting these strengths is Montpelier's susceptibility to low frequency, high severity losses as a global property catastrophe focused reinsurer. Additionally, the group's strengths are somewhat challenged by the start-up nature of its affiliated U.S. operating platform. The positive outlook reflects Montpelier's overall financial flexibility, with access to either equity or debt markets, adequate rate environment in the company's targeted lines of business and the continued development of its newer operating platforms. While the group's premium volume is still concentrated in catastrophe exposed property lines of business, MUSIC and its U.K. affiliate, Lloyd's Syndicate 5151, provide diversification to Montpelier's business mix, geographic exposure and distribution capabilities. Montpelier continues to follow a prudent underwriting strategy to limit the potential accumulation of losses from a single large catastrophic event. Montpelier manages its business within certain constraints relating to aggregate policy limits, net exposure to a tail type modeled underwriting loss and a comprehensive operating loss. Montpelier's management monitors these underwriting constraints relative to capital based limits established by its board of directors and diversifies the company's exposure around the world to achieve a desired optimal spread of risk. The following debt ratings have been affirmed: Montpelier Re Holdings Ltd.- -- "bbb-" on $250 million 6.125% senior unsecured notes, due 2013 -- "bb" on $150 million 8.875% fixed rate perpetual non-cumulative preferred shares The following indicative ratings have been affirmed under the shelf registration: Montpelier Re Holdings Ltd.- -- "bbb-" on senior unsecured debt -- "bb+" on subordinated debt -- "bb" on preferred stock MXENERGY HOLDINGS: Delays Filing of March 31 Form 10-Q ------------------------------------------------------ MXenergy Holdings Inc. notified the U.S. Securities and Exchange Commission that it is unable to file its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011, by the May 16, 2011, submission deadline without unreasonable effort or expense as a result of its recently announced proposed acquisition near the reporting deadline that requires disclosure. In order to properly disclose the proposed acquisition and related transactions and enable the board of directors and the audit committee sufficient time to review and approve the Quarterly Report as part of the Company's disclosure controls and established procedures for filing required reports with the SEC, the Company requires additional time to file its Quarterly Report. About MxEnergy Holdings MxEnergy Holdings Inc. was founded in 1999 as a retail energy marketer. The two principal operating subsidiaries of Holdings are MxEnergy Inc. and MxEnergy Electric Inc. which are engaged in the marketing and supply of natural gas and electricity, respectively. Holdings and its subsidiaries operate in 39 market areas located in 14 states in the United States and in two Canadian provinces. The Company's balance sheet at Dec. 31, 2010 showed $229.45 million in total assets, $139.71 million in total liabilities and $89.74 million in stockholders' equity. MxEnergy carries 'Caa3' long term corporate family and 'Ca/LD' probability of default ratings from Moody's Investors Service. NEONODE INC: Incurs $9.72 Million Net Loss in March 31 Quarter -------------------------------------------------------------- Neonode Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $9.72 million on $539,000 of net revenues for the three months ended March 31, 2011, compared with a net loss of $2.24 million on $146,000 of net revenues for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $4.12 million in total assets, $6.79 million in total liabilities, and a $2.67 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Zu2tFL About Neonode Inc. Lafayette, Calif.-based Neonode Inc. (OTC BB: NEON) -- http://www.neonode.com/-- provides optical touch screen solutions for hand-held and small to midsize devices. KMJ Corbin & Company, LLP, in Costa Mesa, Calif., expressed substantial doubt about Neonode Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and has used substantial amounts of working capital in its operations since inception, and at Dec. 31, 2010, has a working capital deficit of $9.9 million and an accumulated deficit of $112.2 million. The Company reported a net loss of $31.6 million on $440,000 of revenues for 2010, compared with a net loss of $14.9 million on no revenue for 2009. NET TALK.COM: Incurs $24.16 Million Net Loss in March 31 Quarter ---------------------------------------------------------------- Net Talk.com, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $24.16 million on $611,779 of revenue for the three months ended March 31, 2011, compared with a net loss of $9.29 million on $245,636 of revenue for the same period during the prior year. The Company also reported a net loss of $25.39 million on $1.08 million of revenue for the six months ended March 31, 2011, compared with a net loss of $11.43 million on $429,829 of revenue for the same period a year ago. The Company's balance sheet at March31, 2011, showed $4.74 million in total assets, $38.27 million in total liabilities, all current, $2.55 million in redeemable preferred stock $0.001 par value, and a $36.09 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/YWYjfV About Net Talk.com Based in Miami, Fla., Net Talk.com, Inc., is a telephone company, who provides, sells and supplies commercial and residential telecommunication services, including services utilizing voice over internet protocol ("VoIP") technology, session initiation protocol ("SIP") technology, wireless fidelity technology, wireless maximum technology, marine satellite services technology and other similar type technologies. NORCRAFT COMPANIES: Moody's Affirms B3 Rating; Outlook Stable ------------------------------------------------------------- Moody's Investors Service affirmed Norcraft Companies, L.P.'s Senior Secured 2nd lien Notes due 2015 at B3. These notes are being increased to $240.0 million from $180 million. Proceeds from the $60 million "add-on" will be used to redeem all the Senior Unsecured Notes due 2012 issued by Norcraft Holdings, L.P. and to pay related fees and expenses. In a related rating action, Moody's affirmed the company's B3 Corporate Family Rating and B3 Probability of Default Rating, but moved the assignment of these ratings to Norcraft Companies, L.P., the most senior corporate entity with rated debt. The rating outlook is stable. These ratings/assessments were affected by this action: Norcraft Holdings, L.P. -- B3 Corporate Family Rating withdrawn; -- B3 Probability of Default Rating withdrawn; and, -- $53.7 million Senior Unsecured Discount Notes due 2012 rated Caa2 (LGD6, 91%) withdrawn. Norcraft Companies, L.P. -- Corporate Family Rating assigned B3; -- Probability of Default Rating assigned B3; and, -- $240.0 million Senior Secured 2nd lien Notes due 2015 affirmed at B3 (LGD4, 54%). RATINGS RATIONALE Norcraft's B3 corporate family rating is constrained by ongoing weakness in new home construction and residential repair and remodeling, the main drivers of the company's revenues. Norcraft is a small company relative to other manufacturing companies based on revenues and absolute EBITA levels, leaving little cushion should its end markets remain under pressure for an extended period. Moody's believes that Norcraft will have difficulty in generating sizeable levels of operating profits and free cash flow since demand for cabinetry, Norcraft's primary product, will remain sluggish over the intermediate term. The rating also reflects expectations that the company's weak credit metrics will likely persist until a sustainable recovery takes hold. Nevertheless, Moody's recognizes Norcraft's solid operating margins as a credit strength. The change in rating outlook to stable from negative results from the company extending its maturity profile, removing a major near- term liquidity concern. The B3 rating assigned to the $240.0 million Senior Secured Second Lien Notes due 2015, the same rating as the corporate family rating, reflects the notes' position as the preponderance of debt in Norcraft's capital structure. These notes are issued by Norcraft Companies, L.P. and have the same collateral package as the revolving credit facility, but on a second priority basis. Proceeds from the $60 million "add-on" will be used to redeem all the 9.75% Senior Unsecured Notes due 2012 issued by Norcraft Holdings, L.P. and to pay related fees and expenses. The rating for the Notes due 2012 has already been withdrawn, since Moody's believes that the company will be successful in upsizing by at least $60 million the second lien notes. The proposed transaction will degrade interest coverage ratios slightly due to a higher interest rate and larger principal balance. However, more importantly, the transaction and the simultaneous extension of the company's revolving credit facility improves Norcraft's debt maturity profile, with no maturities until September 2015. A ratings upgrade is unlikely in the near future since Norcraft must contend with ongoing uncertainties in its end markets and demand for its products. However, if debt-to-book capitalization begins trending towards 70% or if EBITA-to-interest expense approaches 2.0 times (all ratios incorporate Moody's adjustments), then positive rating actions may ensue. A ratings downgrade would likely ensue if Norcraft is unable to demonstrate an ability to right-size its cost structure relative to its revenues. The company needs to generate meaningful earnings in order to improve its credit metrics. EBITA-to-interest expense trending below 1.0 times (Moody's adjusted) or a deteriorating liquidity profile would cause ratings pressures and may result in a downgrade as well. The principal methodology used in rating Norcraft was the Global Manufacturing Industry Methodology, published December 2010. Other methodologies used include Loss Given Default for Speculative Grade Issuers in the US, Canada, and EMEA, published June 2009. Norcraft Companies, L.P., headquartered in Eagan, Minnesota, is a domestic manufacturer and assembler of finished kitchen and bathroom cabinetry. Revenues for twelve months through March 31, 2011 totaled about $265 million. NORCRAFT HOLDINGS: S&P Puts 'B-' Rating on CreditWatch Positive --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Eagan, Minn.-based Norcraft Holdings LP, including the 'B-' corporate credit rating, on CreditWatch with positive implications. "The CreditWatch listing follows Norcraft's announcement that it plans to add an additional $60 million to its existing second-lien notes due 2015 to refinance its $53.7 million senior discount notes due 2012, plus transaction fees and expenses," said Standard & Poor's credit analyst Megan Johnston. "Based on our initial analysis, we have determined that if the transaction is completed as currently proposed, we would raise the corporate credit rating to 'B' from 'B-' with a stable outlook following the closing of the transaction," Ms. Johnston added. The higher rating would reflect the fact that the company would not have any maturities until 2015, when its second-lien notes and asset-based lending facility mature. "In addition, we are projecting that the company will maintain adjusted debt to EBITDA (including adjustments for operating leases) of about 6x in fiscal year 2011 and total liquidity (including cash on hand and revolver availability) of about $40 million, which we would consider to be in line with a higher rating," S&P related. "In resolving the CreditWatch listing, we will monitor Norcraft Holdings LP's progress in completing the proposed transaction. If the company successfully refinances its debt, extending maturities, we would likely raise the rating on the (upsized) second-lien notes to a 'B' from a 'B-', the same as the proposed corporate credit rating, and revise the existing recovery rating on the notes to '4' from '3'," S&P said. NORD RESOURCES: Incurs $2.27 Million Net Loss in March 31 Quarter ----------------------------------------------------------------- Nord Resources Corporation reported a net loss of $2.27 million on $4.75 million of net sales for the three months ended march 31, 2011, compared with net income of $1.01 million on $6.00 million of net sales for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $60.92 million in total assets, $60.98 million in total liabilities and a $56,548 total stockholders' deficit. "Our operations in the first quarter of 2011," said Wayne Morrison, chief executive and chief financial officer "were much the same as was the case through the second half of 2010, following our decision in July 2010 to reduce our costs and maximize cash flow by suspending the mining of new ore and cutting other expenses." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/5ihOiA About Nord Resources Based in Tuczon, Arizona, Nord Resources Corporation (TSX:NRD/OTCBB:NRDS.OB) -- http://www.nordresources.com/-- is a copper mining company whose primary asset is the Johnson Camp Mine, located approximately 65 miles east of Tucson, Arizona. Nord commenced mining new ore on February 1, 2009. Nedbank, the Company's senior lender, has declined to extend the forbearance agreement with respect to the scheduled principal and interest payment in the approximate amount of $2,150,000 that was due on March 31, 2010 under the Company's $25,000,000 secured term-loan credit facility with Nedbank. Nedbank Capital has also declined to extend the forbearance agreement regarding the Company's failure to make the payment of $697,869 due on April 6, 2010 under the Copper Hedge Agreement between the parties. Both forbearance agreements expired at midnight on May 13, 2010. The Company is now in default of its obligations under the Credit Agreement and the Copper Hedge Agreement with Nedbank. On June 2, 2010, Nord Resources appointed FTI Consulting to advise on refinancing structures and strategic alternatives. The Company reported a net loss of $21.20 million on $28.64 million of net sales for the year ended Dec. 31, 2010, compared with net income of $392,438 on $19.91 million of net sales during the prior year. As reported by the TCR on April 4, 2011, Mayer Hoffman McCann P.C., in Phoenix, Arizona, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted as of Dec. 31, 2010 and 2009, the Company reported a deficit in net working capital of $39,929,666 and $7,652,818, respectively. The Company's significant historical operating losses, lack of liquidity, and inability to make the requisite principal and interest payments due under the terms of the Company's credit agreement with its senior lender raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. NORTEL NETWORKS: Buys Flagship Property in Telecom Corridor ----------------------------------------------------------- Pillar Commercial has acquired the former Nortel campus at 2201- 2221 Lakeside Boulevard in Richardson's Telecom Corridor. The property, built in 1991 as the U.S. headquarters for Nortel Networks, was acquired from creditors in Nortel's bankruptcy proceedings. The acquisition is the largest for Pillar Commercial since it was formed in 2004. Final approval of the transaction was granted by the bankruptcy court on May 10, with closing scheduled for June 3. "This has been a complex and arduous process, but we are enthusiastic about this investment opportunity," said Manny Ybarra, founder and principal of Pillar Commercial. "We are excited about establishing a strong presence in Richardson's Telecom Corridor." "With the historical legacy of Nortel representing such an important period of time for the Telecom Corridor, the City of Richardson is particularly excited to have this outstanding campus now in the hands of an active real estate organization like Pillar Commercial," said Bill Keffler, city manager, City of Richardson. Property creditors were represented by the CB Richard Ellis team of Gary Carr, Russell Ingrum, Eric Mackey, Jack Fraker and Josh McArtor. Pillar engaged Brian Carlton with HFF to help secure transaction financing, provided by Viewpoint Bank under the direction of Patrick Ramsier, chief commercial real estate officer. One of Pillar's biggest challenges was to accurately value the property, as Nortel had invested heavily in the property's technological and mechanical infrastructure. Some of the property's special features include a highly robust chiller plant, multiple back-up generators, and dual source electrical feeds. "Nortel's investment in the facility's data center, telecommunications and power generating capabilities was very attractive to us," added Ybarra. "In addition, the proximity to Galatyn Park Urban Center and the DART light rail station make this campus one of the region's premier corporate office sites." About Pillar Commercial Pillar Commercial is a full service commercial real estate firm specializing in office, industrial and retail developments. Based in Dallas, the company is engaged in all aspects of investment oversight including property management, acquisitions, dispositions and project leasing. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- was once North America's largest communications equipment provider. It has sold most of the businesses while in bankruptcy. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009. Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. On May 28, 2009, at the request of the Administrators, the Commercial Court of Versailles, France ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in this Court for recognition of the English Proceedings as foreign main proceedings under chapter 15 of the Bankruptcy Code. Nortel Networks divested off key assets while in Chapter 11. So far, Nortel has raised $3.2 billion by selling its operations as it prepares to wind up a two-year liquidation due to insolvency. Nortel Networks has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. In June 2011, Nortel will auction off its remaining patent portfolio. Google Inc. is the lead bidder with a $900 million offer. NOWAUTO GROUP: Incurs $442,667 Net Loss in March 31 Quarter ----------------------------------------------------------- NowAuto Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $442,667 on $998,055 of total revenue for the three months ended March 31, 2011, compared with a net loss of $391,415 on $1.26 million of total revenue for the same period during the prior year. The Company also reported a net loss of $1.56 million on $3.14 million of total revenue for the nine months ended March 31, 2011, compared with a net loss of $1.35 million on $4.17 million of total revenue for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $5.02 million in total assets, $14.99 million in total liabilities and a $9.97 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/SzqAC9 About NowAuto Group, Inc. Phoenix, Ariz.-based NowAuto Group, Inc. (NAUG:PK and NWAU.PK) operates two buy-here-pay-here used vehicle dealerships in Arizona. The Company manages all of its installment finance contracts and purchases installment finance contracts from a select number of other independent used vehicle dealerships. The Company's balance sheet at Dec. 31, 2010, showed $4.7 million in total assets, $14.2 million in total liabilities, and a stockholders' deficit of $9.5 million. As reported in the Troubled Company Reporter on Oct. 12, 2010, Semple, Marchal & Cooper, LLP, in Phoenix, Ariz., expressed substantial doubt about NowAuto Group's ability to continue as a going concern, following the Company's results for the fiscal year ended June 30, 2010. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency. NUMOBILE INC: Posts $750,700 Net Loss in March 31 Quarter --------------------------------------------------------- NuMobile, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $750,731 on $56,393 of revenues for the three months ended March 31, 2011, compared with a net loss of $1.22 million on $88,840 of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed $3.67 million in total assets, $9.01 million in total liabilities, and a stockholders' deficit of $5.34 million. As reported in the TCR on April 7, 2011, Gruber and Company, LLC, in Lake St. Louis, Missouri, expressed substantial doubt about NuMobile's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred a net loss of $2.99 million, used cash for operations of $564,669 for the year ended Dec. 31, 2010, has an accumulated deficit of $12.34 million as of Dec. 31, 2010, and has a working capital deficit of $9.29 million as of Dec. 31, 2010. A complete text of the Form 10-Q is available for free at: http://is.gd/SC5NaW About Numobile Inc. Louisville, Ky.-based NuMobile, Inc. (OTC BB: NUBL) currently conducts its operations through its subsidiaries Enhance Network Communications, Inc. and Stonewall Networks, Inc. Enhance provides a wide variety of services from infrastructure architect to software as a service supplier. Stonewall Networks has built the Cornerstone Security Policy Manager. Cornerstone, a centralized IT security policy manager, is an engine for security policy modeling, implementation, monitoring, enforcement, and auditing. NXT NUTRITIONALS: Incurs $187,612 Net Loss in March 31 Quarter -------------------------------------------------------------- NXT Nutritionals Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $187,612 on $50,190 of sales-net of slotting fees and discounts for the three months ended March 31, 2011, compared with a net loss of $3.24 million on $108,734 of sales-net of slotting fees and discounts for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $1.46 million in total assets, $13.01 million in total liabilities and a $11.55 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/OwZ2ZE About NXT Nutritionals Holyoke, Mass.-based NXT Nutritionals Holdings, Inc. (OTC: NXTH) - - http://www.nxtnutritionals.com/-- through its wholly owned subsidiary NXT Nutritionals, Inc., is engaged in developing and marketing of a proprietary, patent-pending, all-natural sweetener sold under the brand name SUSTA(TM) and other food and beverage products. SUSTA(TM) is being sold as a stand-alone product and it is the common ingredient for all of the Company's products. The Company reported a net loss of $17.40 million on $187,516 of sales for the year ended Dec. 31, 2010, compared with a net loss of $23.95 million on $905,728 of sales during the prior year. As reported by the TCR on April 7, 2011, Berman & Company, P.A, in Boca Raton, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a net loss of $17,402,736 and net cash used in operations of $3,035,079 for the year ended Dec. 31, 2010; and a working capital deficit and stockholders' deficit of $11,076,205 and $12,547,616, respectively, at Dec. 31, 2010, ORANGE GROVE: Can Use Signal Walnut's Cash Collateral Until May 31 ------------------------------------------------------------------ The Hon. Alan M. Ahart of the U.S. Bankruptcy Court for the Central District of California authorized the extension of Orange Grove Service, Inc.'s access to the cash collateral of Signal Walnut Partnership, L.P until May 31, 2011. The Court previously granted the Debtor interim access to American Continental Bank's cash collateral until April 30. The Debtor is also authorized to deviate from the total expenses by no more than 10% without prior notice and approval of Signal Walnut. About Orange Grove Service La Verne, California-based Orange Grove Service, Inc., owns and operates 2 "strip" shopping centers, the Lemon Creek in Walnut, Calif., and the Fremont, in Alhambra, Calif. The Company filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 10-21336) on March 25, 2010. Matthew Abbasi, Esq., at Wilson & Associates LLP, in Los Angeles, assists the Debtor in its restructuring effort. In its schedules, the Debtor disclosed $12,003,736 in assets and $11,611,337 in liabilities. OUTSOURCE HOLDINGS: Files Schedules of Assets and Liabilities ------------------------------------------------------------- Outsource Holdings, Inc., has filed with the U.S. Bankruptcy Court for the Northern District of Texas (Fort Worth) its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $0 B. Personal Property $10,571,121 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $0 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $13,887,431 ----------- ----------- TOTAL $10,571,121 $13,887,431 About Outsource Holdings Lubbock, Texas-based Outsource Holdings, Inc.'s only significant asset is its ownership of all of the outstanding capital stock of Jefferson Bank, which is a state bank with five branch locations in the Dallas/Fort Worth metroplex. Outsource Holdings believes that a sale/merger of its interests in Jefferson Bank before August 2011 offers the best opportunity for maximizing the value of this asset for this bankruptcy estate and its creditors. The Debtor has been unable to obtain consent from its creditors to conduct a sale or merger outside of bankruptcy. Since Outsource Holdings believes that a sale before August 2011 is necessary to avoid significant and sudden further declines in the value of its interests in Jefferson Bank, Outsource Holdings believes its fiduciary duties to its creditor body as a whole required the initiation of the bankruptcy case. Outsource Holdings filed for Chapter 11 bankruptcy protection on April 3, 2011 (Bankr. N.D. Tex. Case No. 11-41938). Jeff P. Prostok, Esq., at Forshey & Prostok, LLP, serves as Outsource Holdings' bankruptcy counsel. Outsource Holdings estimated its assets and debts at $10 million to $50 million. OVERLAND STORAGE: Files Form 10-Q; Posts $3.3MM Loss in Fiscal Q3 ----------------------------------------------------------------- Overland Storage, Inc., filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $3.36 million on $17.12 million of net revenue for the three months ended March 31, 2011, compared with a net loss of $2.50 million on $18.61 million of net revenue for the same period a year ago. The Company also reported a net loss of $10.77 million on $52.63 million of net revenue for the nine months ended March 31, 2011, compared with a net loss of $8.77 million on $58.36 million of net revenue for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $48.50 million in total assets, $35.89 million in total liabilities and $12.61 million in total shareholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/wqHGV8 About Overland Storage San Diego, Calif.-based Overland Storage, Inc. (Nasdaq: OVRL) -- http://www.overlandstorage.com/-- is a global provider of unified data management and data protection solutions designed to enable small and medium enterprises (SMEs), corporate departments and small and medium businesses (SMBs) to anticipate and respond to change. As reported in the Troubled Company Reporter on Sept. 28, 2010, Moss Adams LLP, in San Diego, Calif., expressed substantial doubt about Overland Storage's ability to continue as a going concern, following the Company's results for the fiscal year ended June 30, 2010. The independent auditors noted of the Company's recurring losses and negative operating cash flows. PALM HARBOR: T. Smith Rescinds Resignation from Board of Directors ------------------------------------------------------------------ As reported in the TCR on April 29, 2011, following the resignation of Larry Keener as Chairman of the Board of Directors of Palm Harbor Homes, Inc., the remaining members of the Board of Directors appointed Brian Cejka to fill the vacancy created by Mr. Keener's resignation. Following Mr. Cejka's appointment, effective April 29, 2011, the remaining members of the Board tendered their resignations, leaving Mr. Cejka as the sole director. On May 18, 2011, Tim Smith, Director since 2008, notified the Company that he had rescinded his resignation, effective April 29, 2011, and would continue to serve as a Director of the Company until such time as the bankruptcy proceedings terminate. Contemporaneous with Mr. Smith's rescission of his prior resignation, Mr. Cejka announced that he would resign from his directorship on the Board, effective immediately. Mr. Cejka will continue to serve as the Company's Interim Chief Executive and Chief Restructuring Officer. About Palm Harbor Homes Addison, Texas-based Palm Harbor Homes, Inc. -- http://www.palmharbor.com/-- manufactures and markets factory- built homes. The Company markets nationwide through vertically integrated operations, encompassing manufactured and modular housing, financing and insurance. Palm Harbor, along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 10-13850) on Nov. 29, 2010. It disclosed $321,263,000 in total assets and $280,343,000 in total debts. Brian Cejka at Alvarez & Marsal is the Debtors' chief restructuring officer. Raymond James and Associates, Inc., is the Debtors' investment banker. Alvarez & Marshal North America, LLC, is the Debtors' financial advisor. BMC Group, Inc., is the Debtors' claims agent. Pachulski Stang Ziehl & Jones LLP serves as counsel to the Official Committee of Unsecured Creditors. Following a court-approved sale process, Palm Harbor in March 2011 sold its business for $85.25 million to Fleetwood Enterprises Inc., a venture between Cavco Industries Inc. and a fund advised by Third Avenue Management LLC. Fleetwood is providing up to $55 million in secured financing for Palm Harbor's reorganization. As reported in the TCR on May 16, 2011, Cavco Industries and Fleetwood Homes filed with the U.S. Bankruptcy Court for the District of Delaware a motion for an order enforcing and ordering Palm Harbor Homes to perform its obligations under the Court- approved amended and restated asset purchase agreement and to pay administrative expenses. According to Cavco and Fleetwood, the Debtors ceased paying former employees' sales commissions and profit-sharing bonuses prior to the closing date when the individuals were still employees of the Debtors. PARK CENTRAL: Has Interim Access to Lenders' Cash Collateral ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Nevada authorized, on an interim basis, Park Central Plaza 32 LLC, to collect rents and CAMS generated by Park Central Plaza, LLC and hold the same in a segregated account. The Debtor would use the rents collected to maintain real property and pay actual costs of the items, however, the Debtor is not authorized to pay any amounts to Clark county, Nevada, Lambini & Associates and Grubb & Ellis. The Debtor is further authorized to accrue an amount not to exceed $5,000 from the rents in addition to authorized expenses as a reserve for future obligations, pending approval of the Court or secured creditor METEJEMEI, LLC. As reported in the Troubled Company Reporter on April 21, 2011, according to the Debtor, METEJEMEI LLC holds a secured interest in the Debtor's real property in an amount in excess of $25,000,000 and must consent to the usage of the cash collateral unless the Court orders otherwise. METEJEMEI is the successor to Nevada State Bank in regards to a Deed of Trust executed by Debtor in favor of NSB. The underlying loan agreement between NSB and Debtor was entered on or about Feb. 10, 2004 in the principal amount of $5,931,000 and was subsequently amended. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the prepetition lenders replacement liens on all of the Debtors assets. About Park Central Plaza 32, LLC Las Vegas, Nevada-based Park Central Plaza 32, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11- 14153) on March 23, 2011. Bob L. Olson, Esq., at Greenberg Traurig LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. PLATINUM ENERGY: Delays Filing of First Quarter Form 10-Q --------------------------------------------------------- Maverick Engineering, Inc., a wholly owned subsidiary of Platinum Energy Resources, Inc., filed bankruptcy under Chapter 11 of the Bankruptcy Code on Nov. 24, 2010. The Company is unable to file, without unreasonable effort and expense, its Form 10-Q for the period ended March 31, 2011, because the company and its auditors have not yet completed their review of the segregated financial statements. About Platinum Energy Houston, Tex.-based Platinum Energy Resources, Inc. -- http://www.platenergy.com/-- is an independent oil and gas exploration and production company. The Company has approximately 37,000 acres under lease in relatively long-lived fields with well-established production histories. The properties properties are concentrated primarily in the Gulf Coast region in Texas, the Permian Basin in Texas and New Mexico, and the Fort Worth Basin in Texas. The Company reported reported a net loss of $5.13 million on $20.40 million of oil and gas sales for the year ended Dec. 31, 2010, compared with a net loss of $32.02 million on $17.30 million of oil and gas sales during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $53.09 million in total assets, $23.73 million in total liabilities, not subject to compromise, $5.10 million in liabilities subject to compromise, related to assets held for sale-discontinued operations, and $24.26 million in total stockholders' equity. GBH CPAs, PC, in Houston, Texas, 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 Dec. 31, 2009. The independent auditors noted that the Company has experienced significant losses since inception and is currently in default of its debt agreements. The Company has incurred significant losses, resulting in cumulative losses of $113,747,702 through Sept. 30, 2010. At Sept. 30, 2010, the Senior Credit Facility balance was approximately $5.15 million. The Company's current cash on hand of $2,395,820 is not adequate to satisfy the debt. Also, the Company has negative working capital of $8,168,992. Currently the Company is looking at various ways of correcting these issues, including exploring joint venture opportunities as well as a thorough analysis of our specific assets for potential divestiture. Further the Company has assets and liabilities that could be affected by unfavorable outcomes of litigation in progress. PLATINUM STUDIOS: Delays Filing of First Quarter Form 10-Q ---------------------------------------------------------- Platinum Studios, Inc., informed the U.S. Securities and Exchange Commission that it is in the process of compiling information for the quarter ended March 31, 2011, for the Form 10-Q, all of which information has not yet been received. About Platinum Studios Los Angeles, Calif.-based Platinum Studios, Inc., controls a library consisting of more than 5,000 characters and is engaged principally as a comics-based entertainment company adapting characters and storylines for production in film, television, publishing and all other media. The Company reported a net loss of $9.94 million on $2.27 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $3.38 million on $292,940 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $10.47 million in total assets, $26.99 million in total liabilities and a $16.52 million shareholders' deficit. As reported by the TCR on April 21, 2011, HJ Associates & Consultants, LLP, in Salt Lake City, Utah, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations which have resulted in an accumulated deficit. PRIUM SPOKANE: Wants Until June 17 to Propose Chapter 11 Plan ------------------------------------------------------------- Prium Spokane Buildings, L.L.C., asks the U.S. Bankruptcy Court for the Eastern District of Washington to extend its exclusive periods to file and solicit acceptances for the proposed chapter 11 plan until June 17, 2011, and Aug. 16, respectively. The Debtor needs additional time to pursue a feasible business plan and a consensual chapter 11 plan, and to finalize negotiations with third parties regarding certain terms of that plan. Bellevue, Washington-based Prium Spokane Buildings, L.L.C., filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wash. Case No. 10-06952) on Dec. 16, 2010. Davidson Backman Medeiros PLLC, represents the Debtor. The Debtor disclosed $17,042,743 in assets and $34,723,584 in liabilities as of the Chapter 11 filing. There was no creditors committee appointed in the case. PROTEIN POLYMER: Files for Chapter 7 Protection ----------------------------------------------- BankruptcyData.com reports that Protein Polymer Technologies filed for Chapter 7 protection (Bankr. D. Del. Case No. 11-11567). The Company is represented by Karen B. Skomorucha of Ashby & Geddes. Protein Polymer Technologies, Inc., is a San Diego-based company focused on developing bioactive products to improve medical and surgical outcomes. From its inception in 1988, PPTI has been a pioneer in protein design and synthesis, developing an extensive portfolio of proprietary biomaterials. To date, PPTI has been issued twenty-six U.S. Patents on its core technology with corresponding issued and pending patents in key international markets. PURESPECTRUM, INC: Delays Filing of First Quarter Form 10-Q ----------------------------------------------------------- PureSpectrum, Inc., informed the U.S. Securities and Exchange Commission that its Quarterly report could not be filed within the prescribed time period due to the Company requiring additional time to prepare and review the quarterly report for the period ended March 31, 2011. Such delay could not be eliminated by the Company without unreasonable effort and expense. In accordance with Rule 12b-25 of the Securities Exchange Act of 1934, the Company will file its Form 10-Q no later than fifth calendar day following the prescribed due date. About PureSpectrum, Inc. Savannah, Ga.-based PureSpectrum, Inc. (OTC: PSRU) -- http://www.purespectrumlighting.com/-- is engaged in the development, marketing, licensing, and contract manufacturing of lighting technology for use in residential, commercial, and industrial applications worldwide. The Company reported a net loss of $7.97 million on $79,634 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $7.31 million on $12,490 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.05 million in total assets, $3.12 million in total assets and a $2.07 million total stockholders' deficit. Going Concern The Company has incurred net losses from operations of $7,972,931 for the year ended Dec. 31, 2010. In addition, at Dec. 31, 2010, the Company has an accumulated deficit of $22,184,093 and negative working capital of approximately $2,560,437. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. QUANTUM CORP: Incurs $1.65 Million Net Loss in March 31 Quarter --------------------------------------------------------------- Quantum Corporation reported a net loss of $1.65 million on $165.09 million of total revenue for the three months ended March 31, 2011, compared with a net loss of $4.36 million on $164.45 million of total revenue for the same period during the prior year. The Company also reported net income of $4.54 million on $672.27 million of total revenue for the twelve months ended March 31, 2011, compared with net income of $16.63 million on $681.42 million of total revenue for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $430.96 million in total assets, $492.07 million in total liabilities and a $61.11 million stockholders' deficit. "In fiscal 2011, we delivered growth in a number of key areas," said Jon Gacek, CEO of Quantum. "Branded sales increased 5 percent over the prior year, and we had record revenue for both branded disk systems and branded software, which were up 43 percent and 28 percent, respectively. In addition, midrange DXi(R) product revenue nearly tripled over the prior year. We also added approximately 550 new midrange and enterprise tape automation customers and grew our entry-level tape automation revenue 30 percent year-over-year." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/iQdgRY About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. As of Dec. 31, 2010, the Company's balance sheet showed $466.35 million in total assets, $531.54 million in total liabilities and a $65.19 million stockholders' deficit. In January 2011, Moody's Investors Service upgraded Quantum Corporation's Corporate Family and Probability of Default ratings to B2 from B3 and revised the ratings on the senior secured debt obligations to Ba3 from B1. The rating outlook is positive. The upgrade of the CFR to B2 reflects Quantum's improved operating performance, which stems from strong customer adoption and growth of its higher margin branded disk-based systems and software products, which Moody's expects to continue in FY12. In March 2011, Standard & Poor's Ratings Services raised its corporate credit rating on storage manufacturer Quantum Corp. to 'B' from 'B-'. The outlook is stable. "The upgrade reflects that the company has posted four sequential quarters of sustained EBITDA generation, despite ongoing declines in its core tape business and the absence of an EMC licensing arrangement," said Standard & Poor's credit analyst Lucy Patricola. In addition, debt/EBITDA has been stable for the last four quarters at about 4x and reduced from 2009 levels, primarily reflecting application of free cash flow to debt reduction. QUICK-MED TECHNOLOGIES: Posts $611,900 Net Loss in March 31 Qtr. ---------------------------------------------------------------- Quick-Med Technologies, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $611,898 on $156,851 of revenues for the three months ended March 31, 2011, compared with a net loss of $1.4 million on $364,717 of revenues for the three months ended March 31, 2010. The Company's balance sheet at March 31, 2011, showed $1.3 million in total assets, $7.9 million in total liabilities, and a stockholders' deficit of $6.6 million. As of March 31, 2011, and as a result of historical operating losses from prior years, the Company's accumulated deficit was $24.2 million. Daszkal Bolton LLP, in Boca Raton, Fla., expressed substantial doubt about Quick-Med's ability to continue as a going concern, following the Company's results for the fiscal year ended June 30, 2010. The independent auditors noted that the Company has experienced recurring losses and negative cash flows from operations for the years ended June 30, 2010, and 2009, and has a net capital deficiency. A complete text of the Form 10-Q is available for free at: http://is.gd/ZGnWtt Gainesville, Fla.-based Quick-Med Technologies, Inc., is a life sciences company focused on developing proprietary, broad-based technologies in the consumer and healthcare markets. RADIENT PHARMA: Settles with Noteholders for $10MM in Shares ------------------------------------------------------------ Alpha Capital Anstalt and Whalehaven Capital Fund Ltd., on Dec. 10, 2010, filed a complaint against Radient Pharmaceuticals Corporation regarding the number of warrants they received in the Registered Direct Offering that the Company completed in November 2009 and the shareholder vote obtained at the Company's Dec. 3, 2010, annual shareholder meeting. The Plaintiffs believe that the effective price of the notes the Company issued pursuant to the private financing the Company completed in March and April 2010, and of the shares the Company later issued to two such note holders in settlement of a lawsuit with same, is lower than what the Company claims it to be and that such alleged effective price requires a greater reset to the exercise price of the warrants they received in the RDO. Additionally, the plaintiffs allege that the Company solicited votes against one of the proposals related to the RDO that was proposed at the Dec. 3, 2010, annual shareholder meeting. The Plaintiffs sought relief from the court involving additional shares issuable pursuant to the exercise of the warrants they received in the RDO and cash damages. To date, the Company has expended a large amount of cash and time on this lawsuit and numerous depositions have been scheduled. Considering the potential outcome of this lawsuit and attorneys fees associated with litigating same, management believed it to be in the company and our shareholders' best interest to settle this lawsuit. Accordingly, on May 10, 2011, the Company entered into a Settlement Agreement with the Plaintiffs. Pursuant to the Settlement Agreement the Company agreed to issue that number of shares of the Company's common stock equal in value to $10,912,055 at the time of issuance; however, the Company is not obligated to issue the shares until it receives court approval to issue such shares pursuant to the provisions of Section 3(a)(10) of the Securities Act of 1933, pursuant to which the shares will be free trading and any NYSE Amex or shareholder approval, if required. Under the terms of the Settlement Agreement, upon Court Approval, the Company will issue Plaintiffs as many shares of the Company's common stock as possible to reach the Settlement Amount that the NYSE Amex have previously approved for issuance to the Plaintiffs. To account for the time it may take to receive Court Approval, as well as NYSE Amex or shareholder approval of the ultimate number of shares issuable to obtain the Settlement Amount, and therefore their shares, the Plaintiffs agreed to accept a promissory note for the monetary value of that number of additional shares that would be required to be issued to achieve the Settlement Amount upon Court Approval based on a pre-determined formula set forth in the Notes. The notes will be delivered upon Court Approval; they bear 8% interest and mature 4 months after issuance. The Company maintains the right to pay the note back in cash or shares of common stock based upon a pre-determined formula set forth in the notes. Upon the occurrence of an event of default, the note will become immediately due and payable. Under the Settlement Agreement, Plaintiffs are entitled to entry of judgment in the amount of principal outstanding, if any, on the maturity date. The Settlement Agreement also contemplates the issuance of additional shares to Plaintiffs or the return of shares to the Company based upon variances in the market price of the Company's common stock between the date the Company receives Court Approval and sixty days following the maturity date of the notes. Unless otherwise extended by the Plaintiffs, the Company must obtain Court Approval by May 23, 2011. Pursuant to the Settlement Agreement, the Company agreed to pay Plaintiffs' attorney fees of $75,000. Once the initial shares and promissory note are issued, the parties will file a Stipulation of Discontinuance of the lawsuit with the relevant court and all of the warrants the Plaintiffs received in the RDO and in the private financing we closed in March and April 2010 will be null and void. A full-text copy of the Settlement Agreement is available for free at http://is.gd/ICamyU About Radient Pharmaceuticals Headquartered in Tustin, Calif., Radient Pharmaceuticals Corporation -- http://www.Radient-Pharma.com/-- is engaged in the research, development, manufacturing, sale and marketing of its ONKO-SURE(TM) a proprietary IVD Cancer Test in the United States, Canada, China, Chile, Europe, India, Korea, Taiwan, Vietnam and other markets throughout the world. Radient said in October 2010 it incurred a trigger event on the 12% Convertible Notes issued in first and second quarter of 2010 due to its failure to have the related registration statement declared effective by June 1, 2010. The Company filed on Sept. 7, 2010, an Event of Default under those same notes occurred since it did not hold the related shareholder meeting by Aug. 31, 2010. As reported in the Troubled Company Reporter on April 19, 2010, KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred a significant operating loss and negative cash flows from operations in 2009 and had a working capital deficit of $4.2 million at Dec. 31, 2009. The Company's balance sheet at Sept. 30, 2010, showed $23.56 million in total assets, $34.22 million in total liabilities, and a stockholders' deficit of $10.66 million. The Company has yet to file its annual report on Form 10-K for the year ended Dec. 31, 2010. The Company said it expects to report a net loss in the range of $68M-74M for 2010 compared with net loss of approximately $17M for fiscal 2009. RADIENT PHARMA: Delays Filing of March 31 Form 10-Q --------------------------------------------------- Radient Pharmaceuticals Corporation notified the U.S. Securities and Exchange Commission that it is unable to file its 10-Q for quarter ended March 31, 2011, in a timely manner because the Company is not able to complete its consolidated financial statements without unreasonable effort or expense. As the Company has disclosed in its previous filings, effective September 29, 2009, the Company deconsolidated all activity of its subsidiary, Jade Pharmaceuticals Inc. This decision was based on several factors, including lack of timely responses from JPI to the Company's requests for financial information. Unfortunately, the Company has still not yet received all information requested from JPI for the Dec. 31, 2010, consolidated financial statements and therefore is unable to finalize the valuation process of JPI, which is required in such statements and therefore have not yet been able to file the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2010. The Company cannot complete, or file, the 10-Q for the quarter ended March 31, 2011, until it completes and files the Form 10-K. The Company is vigorously working to file the Form 10-Q by the end of May, but there can be no assurance the 2010 audit will be completed by such date due to the situation described herein to enable the Company to file its Form 10-Q by such time. About Radient Pharmaceuticals Headquartered in Tustin, Calif., Radient Pharmaceuticals Corporation -- http://www.Radient-Pharma.com/-- is engaged in the research, development, manufacturing, sale and marketing of its ONKO-SURE(TM) a proprietary IVD Cancer Test in the United States, Canada, China, Chile, Europe, India, Korea, Taiwan, Vietnam and other markets throughout the world. Radient said in October 2010 it incurred a trigger event on the 12% Convertible Notes issued in first and second quarter of 2010 due to its failure to have the related registration statement declared effective by June 1, 2010. The Company filed on Sept. 7, 2010, an Event of Default under those same notes occurred since it did not hold the related shareholder meeting by Aug. 31, 2010. As reported in the Troubled Company Reporter on April 19, 2010, KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred a significant operating loss and negative cash flows from operations in 2009 and had a working capital deficit of $4.2 million at Dec. 31, 2009. The Company's balance sheet at Sept. 30, 2010, showed $23.56 million in total assets, $34.22 million in total liabilities, and a stockholders' deficit of $10.66 million. The Company has yet to file its annual report on Form 10-K for the year ended Dec. 31, 2010. The Company said it expects to report a net loss in the range of $68M-74M for 2010 compared with net loss of approximately $17M for fiscal 2009. RASER TECHNOLOGIES: Creditors Merrill Lynch Wants DIP Loan Denied ----------------------------------------------------------------- Raser Technologies Inc.. et al.'s largest unsecured creditors, Merrill Lynch, Pierce, Fenner & Smith Incorporated, asks the U.S. Bankruptcy Court for the District of Delaware to deny the Debtors' request to obtain postpetition financing from prepetition secured parties. Linden Capital, LP, Tenor Master Opportunity Fund, Ltd., and Aria Opportunity Fund, Ltd., offered to provide the Debtors the anticipated working capital needs. The lenders hold in the aggregate $25 million of the $55 million face amount of the 8% convertible senior unsecured notes due 2013 issued by the Debtors in 2008. The principal terms of the DIP Facility includes: Borrower: Debtor Raser Technologies, Inc. Guarantors and Guarantee: All subsidiaries of the Borrower. All obligations will be unconditionally guaranteed by the guarantors. Administrative Agent: Wilmington Trust Company Commitment: an initial $750,000 for working capital needs $8.75 million aggregate for (i) $6 million to satisfy a portion of the principal obligations owing to Thermo No. 1 BE-01, LLC; (ii) up to 2.75 million for working capital needs. Collateral: Prior to the entry of the final order, all obligations of the Debtors will be secured by (i) first priority blanket liens and security interests on all assets of the Debtors; and (ii) junior liens and security interests on all assets of the Debtors. The DIP facility junior liens will be junior in all respects to the Thermo lenders' liens on the existing collateral. Term: Aug. 26, 2011, or the acceleration of loans and the termination of the commitments. Interest Rate: 15% per annum According to Merrill, through the financing motion, the Debtors sought beyond what is necessary to secure funding for continued operations and to protect the estates from losing value. Merrill explain that: -- the relief requested goes too far toward handing control of the cases over to the DIP Lenders; -- the evidence presented that the financing terms in the DIP facility were the best available to the Debtors is insufficient; -- the DIP Facility provides for an inappropriate payment to a prepetition lender; -- the DIP Facility is inextricably tied to auction procedures and a plan of reorganization that contain objectionable provisions; and -- the financing motion requests various other inappropriate relief. Merrill add that the $6 million payment to the Thermo Lenders funded by the DIP Facility be extremely costly for the estates, the Debtors imply in the financing motion that the payment is not even necessary. Merrill is represented by: Kurt F. Gwynne, Esq. 1201 Market Street, Suite 1500 Wilmington, DE 19801 Tel: (302) 778-7500 Fax: (302) 778-7575 E-mail: kgwynne@reedsmith.com HAYNES AND BOONE, LLP Mark X. Mullin, Esq. Stephen J. Manz, Esq. 2323 Victory Avenue, Suite 700 Dallas, Texas 75219 Tel: (214) 651-5000 Fax: (214) 651-5940 E-mails: mark.mullin@haynesboone.com stephen.manz@haynesboone.com About Raser Technologies Raser Technologies Inc. (NYSE: RZ) is a renewable energy company focusing on geothermal power development. The Company has one operating plant in Utah and another eight early and development stage projects in Utah, New Mexico, Nevada and Oregon. The Company invested $120 million in Thermo No. 1, its sole operating plant, which is near Beaver, Utah, and has a power generation capacity of 10 megawatts. The City of Anaheim, California, agreed in 2008 to buy the generated electricity for 20 years. Provo, Utah-based Raser Technologies, Inc., also known as Wasatch Web Advisors, Inc., filed for Chapter 11 protection (Bankr. D. Del. Case No. 11-11315) on April 29, 2011. Other Debtor affiliates filed for separate Chapter 11 protection on April 29, 2011, (Bankr. Case Nos. 11-11319 - 11-11350). Peter S. Partee, Sr., Esq., and Richard P. Norton, Esq., at Hunton & Williams LLP represent the Debtors in their restructuring efforts. The Debtors' local counsel is Bayard, P.A. Sichenzia Ross Friedman Ference LLP serves as the Debtors' corporate counsel. The Debtors' financial advisor is Canaccord Genuity. The Company reported a net loss of $101.80 million on $4.25 million of revenue for the fiscal year ended Dec. 31, 2010, compared with a net loss of $20.90 million on $2.19 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $41.84 million in total assets, $107.78 million in total liabilities, $5.00 million of Series A-1 cumulative convertible preferred stock, and a stockholders' deficit of $70.94 million. RASER TECHNOLOGIES: Wants to Linden-Led Auction for Equity Sponsor ------------------------------------------------------------------ Raser Technologies Inc.. et al., ask the U.S. Bankruptcy Court for the District of Delaware for authorization to sell 100% of the equity in reorganized Debtor Raser Technologies, Inc., in an auction led by the sponsors. The Debtors scheduled a July 25, 2011, auction at the offices of Bayard, P.A., 222 Delaware Avenue, Suite 900, Wilmington, Delaware beginning at 10:00 a.m. (EDT). Qualified bids are due July 20. The Debtors entered a Plan Support Agreement with Linden Capital, LP and Tenor Opportunity Master Fund, Ltd., and Aria Opportunity Fund, Ltd. The lenders hold approximately half of the face amount of the $55 million Convertible Senior Unsecured Notes due in 2013 issued by Debtor. Specifically, the Plan Support Agreement includes these terms and transactions, among others: -- the sponsors will provide the DIP Facility to the Debtors in the aggregate amount of $8.75 million that will be used, among other things, to fund the costs associated with the Chapter 11 proceedings, cover the Debtors' working capital needs, make certain payments upon confirmation of a plan of reorganization, and fund the Thermo Lenders Payment; -- following final approval of the DIP Facility, the payment of $6.0 million to the Thermo Lenders to reduce the Debtors' obligations under the Thermo Note and related agreements; -- the Debtors will conduct an auction for 100% of the Reorganized Raser Equity to be issued pursuant to a confirmed Plan The Debtors will sell the assets for $19.7 million. The prices will be payable as follows: (i) crediting the outstanding balance of the DIP Facility, including all fees and interest paid in kind pursuant to the terms thereof, (ii) crediting the outstanding balance of the pre-petition secured loan provided to certain of the Debtors by the Sponsors, (iii) the waiver of approximately $4.3 million of claims held by the Thermo Lenders in accordance with the terms of the Thermo Settlement Agreement, (iv) Cash in the amount of $2.5 million representing a capital contribution to be made by the Sponsors in accordance with the terms of the Plan Support Agreement, and (v) the provision by the Sponsors of the Exit Facility. The sponsors have committed to provide to the Debtors on the Effective Date a fully committed $3.0 million two-year senior, secured convertible preferred voting term loan facility on customary terms and conditions to fund working capital and further development needs of the reorganized Debtors. The interest rate applicable to the loans outstanding under the Exit Facility will be 10% per annum. In the event the sponsors are not the successful bidder, the sponsors will be entitled to a break-up fee equal to 5% of the purchase price. About Raser Technologies Raser Technologies Inc. (NYSE: RZ) is a renewable energy company focusing on geothermal power development. The Company has one operating plant in Utah and another eight early and development stage projects in Utah, New Mexico, Nevada and Oregon. The Company invested $120 million in Thermo No. 1, its sole operating plant, which is near Beaver, Utah, and has a power generation capacity of 10 megawatts. The City of Anaheim, California, agreed in 2008 to buy the generated electricity for 20 years. Provo, Utah-based Raser Technologies, Inc., also known as Wasatch Web Advisors, Inc., filed for Chapter 11 protection (Bankr. D. Del. Case No. 11-11315) on April 29, 2011. Other Debtor affiliates filed for separate Chapter 11 protection on April 29, 2011, (Bankr. Case Nos. 11-11319 - 11-11350). Peter S. Partee, Sr., Esq., and Richard P. Norton, Esq., at Hunton & Williams LLP represent the Debtors in their restructuring efforts. The Debtors' local counsel is Bayard, P.A. Sichenzia Ross Friedman Ference LLP serves as the Debtors' corporate counsel. The Debtors' financial advisor is Canaccord Genuity. The Company reported a net loss of $101.80 million on $4.25 million of revenue for the fiscal year ended Dec. 31, 2010, compared with a net loss of $20.90 million on $2.19 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $41.84 million in total assets, $107.78 million in total liabilities, $5.00 million of Series A-1 cumulative convertible preferred stock, and a stockholders' deficit of $70.94 million. REGENCY ENERGY: Moody's Rates Proposed $500-Mil. Notes at 'B1' -------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to Regency Energy Partners, L.P.'s (Regency) proposed $500 million senior notes. The note proceeds will be used to reduce outstanding borrowings under Regency's revolving credit facility. The rating outlook remains positive. Due to the higher use of debt in the financing mix, Regency's leverage has increased significantly following its April 2011 acquisition of a 30% stake in LDH Energy Asset Holdings LLC (LDH). To fund the $592 million LDH acquisition, Regency issued $204 million of equity and drew the remaining balance on its bank revolver. Consequently, proforma balance sheet debt has increased to $1.64 billion at March 31, 2011 from $1.14 billion at December 31, 2010. Proforma for the debt financing, Moody's estimates adjusted Debt/EBITDA at over 5.1x. While Moody's expects Regency's earnings and cash flow to step up over the next 12 months, additional equity will need to be issued in the future to support a stronger financial leverage profile indicative of a higher rating. In order to maintain positive ratings momentum, Regency will need to stabilize leverage below 4.8x as incremental cash flows accrue from both new assets and its core operations. Regency's Ba3 Corporate Family Rating reflects its size and scale, with both business and geographic diversification and increasing fee-based income from recent expansions and acquisitions. The Ba3 rating also considers Regency's rapid growth and evolving business mix profile, the financial risks associated with its growth projects, and increased structural complexity. Given the risks associated with the MLP business model, the Ba3 rating is supported by Regency's track record to date in issuing equity and management's commitment to accessing equity to fund acquisition- led growth. Regency's Ba3 rating also factors in its ownership by Energy Transfer Equity -- a significant midstream player, but also one with elevated consolidated leverage that looks to Regency to help fund its own distributions and debt obligations. Proforma for the notes issue, the company had approximately $25 million of cash and $656 of available liquidity under its $900 million committed revolving credit facility, which expires on June 15, 2014. The company also has a $100 million working capital facility at its RIGS joint-venture that expires in July 2014. The B1 rating on Regency's senior unsecured notes reflects both the overall Ba3 probability of default rating of Regency and a loss given default of LGD 5. The senior unsecured notes rating of B1, one notch below the Ba3 Corporate Family Rating, reflects the contractual subordination of the notes relative to Regency's secured bank credit facility. However, the addition of more unsecured debt to the liability structure increases the relative proportion of unsecured debt to secured debt, thereby improving overall recovery for the unsecured debt class, with the loss estimate for the unsecured notes declining to 73% from 79%. The principal methodology used in this rating was Global Midstream Energy rating methodology published in December 2010. Headquartered in Dallas, Texas, Regency Energy Partners LP is a publicly traded master limited partnership engaged in natural gas gathering, processing, contract compression and transportation. RURAL/METRO CORP: S&P Lowers CCR to 'B' on Warburg Acquisition -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Scottsdale, Ariz.-based Rural/Metro Corp. to 'B' from 'B+'. "At the same time, we removed the ratings from CreditWatch following our review of the leveraged buyout (LBO) transaction. We placed the ratings on CreditWatch on March 28, 2011, following the announcement that the company entered into agreement to be acquired by Warburg Pincus. The outlook is stable," S&P related. S&P continued, "At the same time, we assigned a 'B' issue-level rating and a '3' recovery rating to the company's proposed $100 million senior secured revolving credit facility due 2016 and its $325 million senior secured credit facility due 2018. The '3' recovery rating indicates our expectation for meaningful (50% to 70%) recovery of principal and interest in the event of a payment default." "We are also assigning a 'CCC+' issue rating and a '6' recovery rating to Rural/Metro's $200 million senior unsecured notes due 2019. The '6' recovery rating indicates our expectation for negligible (0 to 10%) recovery of principal and interest in the event of a payment default. The senior secured term loan and senior unsecured note are being used to finance the LBO by Warburg Pincus," S&P noted. "The low speculative-grade corporate credit rating on medical transport services company Rural/Metro reflects a highly leveraged financial risk profile; pro forma for the proposed transaction, we expect adjusted debt leverage to approximate 6.7x, and funds from operations (FFO) to debt to be about 8%. Liquidity is adequate," said Standard & Poor's credit analyst Rivka Gertzulin. Additionally, the company's weak business risk profile reflects exposure to the ongoing uncertainty of government reimbursement rates and sustainability of commercial payor price increases, modest operating margins, and high levels of uncompensated care. Although management has effectively managed Rural/Metro by expanding margins by reducing uncompensated care, the highly leveraged buyout by Warburg Pincus adds substantial debt. "In addition, we believe that the company's financial policy could be more aggressive under the ownership of a financial sponsor. While we expect credit metrics to improve in the near term from the addition of the Santa Clara 911 contract commencing in July, low- single-digit same-contract growth, and new contract wins, adjusted debt leverage will likely exceed 5x over the next few years," S&P stated. SARDIS DEVELOPMENT: Case Summary & 7 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Sardis Development Company, LLC P.O. Box 1424 Candler, NC 28715 Bankruptcy Case No.: 11-10506 Chapter 11 Petition Date: May 20, 2011 Court: U.S. Bankruptcy Court Western District of North Carolina (Asheville) Judge: George R. Hodges Debtor's Counsel: D. Rodney Kight, Jr., Esq. KIGHT LAW OFFICE PC 7 Orchard Street, Suite 100 Asheville, NC 28801 Tel: (828) 255-9881 Fax: (828) 255-9886 E-mail: info@kightlaw.com Scheduled Assets: $1,800,025 Scheduled Debts: $487,318 A list of the Company's seven largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/ncwb11-10506.pdf The petition was signed by Michael West, member. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Michael West 11-10112 03/14/11 SAVANNA ENERGY: DBRS Gives Final 'B' Rating to Sr. Unsec. Notes --------------------------------------------------------------- DBRS has finalized its provisional rating of B (high) with a Stable trend on Savanna Energy Services Corp.'s $125 million of 7.00% Senior Unsecured Notes due May 25, 2018 (the Unsecured Notes). DBRS assigned a provisional rating of B (high) with a Stable trend on May 11, 2011 (see related news release). The Unsecured Notes, supported by subsidiary guarantees, will rank equally with all of Savanna's other unsecured and unsubordinated indebtedness from time to time outstanding. However, these notes are structurally subordinated to Savanna's secured bank facility (the Secured Facility). DBRS understands that the net proceeds from the captioned issuance will be used to pay down the Secured Facility. SEAHAWK DRILLING: Shareholders Want to Sue Ex-Owner Over Spinoff ---------------------------------------------------------------- Katy Stech, writing for Dow Jones' Daily Bankruptcy Review, reports that shareholders of Seahawk Drilling Inc. seek Bankruptcy Court permission to sue the Company's former owner, Pride International Inc., and executives, which spun off the Company in 2009. According to DBR, the shareholders said the spinoff forced Seahawk Drilling into a series of legal agreements that didn't fairly benefit the Company. Those spinoff agreements "may have rendered the [company and its affiliates] insolvent, undercapitalized for its continuing business operations [or] unable to satisfy reasonably anticipated debt obligations," the group said in court documents, according to DBR. "Prosecution of the claims is critical in these cases because the benefits (from them) will have a substantial impact on recoveries to interest holders," the shareholders said Friday in their request, according to DBR. DBR says the shareholders also seek rejection of $68 million in monetary claims asserted by Pride. According to DBR, the lawsuits could recover millions of dollars for creditors and shareholders left behind in Seahawk Drilling's Chapter 11 bankruptcy, which enabled the Company to sell its 20 oil rigs off the Gulf Coast to competitor Hercules Offshore Inc. Hercules Offshore paid $154.5 million for the fleet and left Seahawk Drilling with few operating assets. According to DBR, Pride spokeswoman Kate Perez in a statement Tuesday called the deal "legal, proper, and consistent with the best interests of Pride's and Seahawk's respective shareholders." Ms. Perez said Pride will "vigorously defend all claims and challenges to its rightful recovery in the case under its contracts with Seahawk." She also added that shareholders don't have the power to bring the lawsuits. DBR notes the shareholders said they unsuccessfully tried to convince Seahawk Drilling executives to pursue the claims themselves. Judge Richard Schmidt agreed to hear arguments on the matter on June 7. About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. The Company and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Lead Case No. 11-20089) on Feb. 11, 2011. Berry D. Spears, Esq., and Jonathan C. Bolton, Esq., at Fullbright & Jaworkski L.L.P., in Houston, serve as the Debtors' bankruptcy counsel. Shelby A. Jordan, Esq., and Nathaniel Peter Holzer, Esq. at Jordan, Hyden, Womble, Culbreth & Holzer, P.C., in Corpus Christi, Texas, serve as the Debtors' co-counsel. Alvarez and Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons & Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Judy A. Robbins, the U.S. Trustee for Region 7, appointed three creditors to serve on an Official Committee of Unsecured Creditors of Seahawk Drilling Inc. and its debtor-affiliates. Heller, Draper, Hayden, Patrick & Horn, L.L.C., represents the creditors committee. In its amended schedules, Seahawk Drilling disclosed $208,190,199 in assets and $438,458,460 in liabilities as of the petition date. Seahawk filed for Chapter 11 protection to complete the sale of all assets to Hercules Offshore, Inc. As reported by the Troubled Company Reporter on April 11, 2011, the Bankruptcy Court approved an Asset Purchase Agreement between Hercules Offshore and its wholly owned subsidiary, SD Drilling LLC, and Seahawk Drilling, pursuant to which Seahawk agreed to sell to Hercules, and Hercules agreed to acquire from Seahawk, all 20 of Sellers' jackup rigs and related assets, accounts receivable and cash and certain liabilities of Sellers in a transaction pursuant to Section 363 of the U.S. Bankruptcy Code. According to DBR Small Cap, the deal was valued at about $176 million when it received court approval. Based on previous TCR reports, the purchase price for the Acquisition will be funded by the issuance of roughly 22.3 million shares of Hercules Offshore common stock and cash consideration of $25 million, which will be used primarily to pay off Seahawk's Debtor-in-Possession loan. The number of shares of Hercules Offshore common stock to be issued will be proportionally reduced at closing, based on a fixed price of $3.36 per share, if the outstanding amount of the DIP loan exceeds $25 million, with the total cash consideration not to exceed $45 million. The deal closed on April 27, 2011. SEAHAWK DRILLING: Files Chapter 11 Plan, Disclosure Statement ------------------------------------------------------------- BankruptcyData.com reports that Seahawk Drilling filed with the U.S. Bankruptcy Court a Joint Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the DS, "The Plan generally provides for the payment in full of all Allowed Claims of all Classes of creditors and a pro rata distribution of any remaining assets of the Debtors to holders of Interests (Seahawk's stockholders). The Plan sets forth the mechanism for the distribution to holders of Allowed Claims and holders of Interests of (i) the proceeds from the sale of substantially all of the Debtors' assets to the Purchaser and (ii) the liquidation and distribution of the Excluded Assets. The Plan also takes into account that, at or shortly after the Closing of the transaction with the Purchaser (i) the First DIP Financing Agreement was paid in full, (ii) Purchaser assumed liability for approximately $10.45 million in current accounts payable of, and accruals for goods and services received by, Debtors as of the Closing Date attributable to the Purchased Assets, and (iii) cure claims of approximately $1.5 million relating to contracts assumed by the Debtors and assigned to the Purchaser were paid from the sale proceeds. In addition, the APA provided that, as part of the consideration for the transaction, effective as of the Closing, the Purchaser provided, or caused to be provided, continuation health coverage for any of Debtors' employees who were not hired by Hercules as required under, and in accordance with COBRA. After the Closing, the Debtors retained cash, including proceeds of the Wind Down DIP Financing Agreement, and other Excluded Assets and the Escrow Agent holds the Hercules Common Stock on behalf of the Debtors for later Distribution to creditors and stockholders in exchange for their Allowed Claims and Interests in accordance with the Plan. On the Effective Date, the Cash, other Excluded Assets and the Debtors' ownership of the Hercules Common Stock (held for their benefit by the Escrow Agent) shall vest in the Reorganized Debtors. Also on the Effective Date, the Debtors shall continue their individual corporate existence but all existing common stock of Seahawk will be cancelled and new shares issued to the Liquidating Trust." About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. The Company and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Lead Case No. 11-20089) on Feb. 11, 2011. Berry D. Spears, Esq., and Jonathan C. Bolton, Esq., at Fullbright & Jaworkski L.L.P., in Houston, serve as the Debtors' bankruptcy counsel. Shelby A. Jordan, Esq., and Nathaniel Peter Holzer, Esq. at Jordan, Hyden, Womble, Culbreth & Holzer, P.C., in Corpus Christi, Texas, serve as the Debtors' co-counsel. Alvarez and Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons & Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Judy A. Robbins, U.S. Trustee for Region 7, appointed three creditors to serve on an Official Committee of Unsecured Creditors of Seahawk Drilling Inc. and its debtor- affiliates. Heller, Draper, Hayden, Patrick & Horn, L.L.C., represents the creditors committee. In its amended schedules, Seahawk Drilling disclosed $208,190,199 in assets and $438,458,460 in liabilities as of the petition date. Seahawk filed for Chapter 11 protection to complete the sale of all assets to Hercules Offshore, Inc. As reported by the Troubled Company Reporter on April 11, 2011, the Bankruptcy Court approved an Asset Purchase Agreement between Hercules Offshore and its wholly owned subsidiary, SD Drilling LLC, and Seahawk Drilling, pursuant to which Seahawk agreed to sell to Hercules, and Hercules agreed to acquire from Seahawk, all 20 of Sellers' jackup rigs and related assets, accounts receivable and cash and certain liabilities of Sellers in a transaction pursuant to Section 363 of the U.S. Bankruptcy Code. According to DBR Small Cap, the deal was valued at about $176 million when it received court approval. Based on previous TCR reports, the purchase price for the Acquisition will be funded by the issuance of roughly 22.3 million shares of Hercules Offshore common stock and cash consideration of $25 million, which will be used primarily to pay off Seahawk's Debtor-in-Possession loan. The number of shares of Hercules Offshore common stock to be issued will be proportionally reduced at closing, based on a fixed price of $3.36 per share, if the outstanding amount of the DIP loan exceeds $25 million, with the total cash consideration not to exceed $45 million. The deal closed on April 27, 2011. SECUREALERT INC: Incurs $2.51 Million Net Loss in 1st Quarter ------------------------------------------------------------- SecureAlert, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $2.51 million on $3.88 million of total revenues for the three months ended March 31, 2011, compared with a net loss of $3.50 million on $3.01 million of total revenues for the same period a year ago. The Company also reported a net loss of $4.58 million on $7.56 million of total revenues for the six months ended March 31, 2011, compared with a net loss of $9.03 million on $6.20 million of total revenues for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $12.77 million in total assets, $11.06 million in total liabilities and $1.71 million in total equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Qw1XVU About SecureAlert Inc. Sandy, Utah-based SecureAlert, Inc. (OTC BB: SCRA) -- http://www.securealert.com/-- is an international provider of electronic monitoring systems, case management and services widely utilized by more than 650 law enforcement agencies worldwide. The Company reported a net loss of $2.07 million on $3.68 million of revenue for the three months ended Dec. 31, 2010, compared with a net loss of $5.53 million on $3.20 million of total revenue for the same period a year earlier. SENSATA TECHNOLOGIES: Waives Certain Conditions to Tender Offers ---------------------------------------------------------------- Sensata Technologies Holding N.V. announced that its wholly-owned subsidiary, Sensata Technologies B.V., has waived the following conditions to its previously announced cash tender offers and consent solicitations with respect to all of the Company's outstanding 8% Senior Notes due 2014 and 9% Senior Subordinated Notes due 2016: (i) the receipt of the requisite consents necessary to adopt proposed amendments to each indenture governing the Notes and (ii) the execution of the supplemental indentures giving effect to the Proposed Amendments. The principal purpose of the consent solicitations and the Proposed Amendments is (i) to eliminate substantially all of the restrictive covenants, (ii) to eliminate or modify certain events of default and (iii) to eliminate or modify related provisions contained in the indentures governing the Notes. In order for the Proposed Amendments to be effective with respect to an applicable series of Notes, holders of at least a majority of the outstanding aggregate principal amount of such series of Notes must consent to the Proposed Amendments. Holders who tender Notes are obligated to consent to the Proposed Amendments and holders may not deliver consents without tendering the related Notes. Each holder who validly tenders and does not subsequently validly withdraw its Notes and delivers and does not subsequently validly revoke its consent to the Proposed Amendments with respect to such Notes prior to 5:00 p.m., New York City time, on May 11, 2011, unless extended, will receive (i) with respect to the Dollar Notes accepted for purchase by the Company, Total Consideration of $1,022.50 per $1,000 principal amount of such Notes, which includes $992.50 as the Tender Offer Consideration and $30.00 as a Consent Payment, and (ii) with respect to the Euro Notes accepted for purchase by the Company, Total Consideration of EUR1,048.75 per EUR1,000 principal amount of such Notes, which includes EUR1,018.75 as the Tender Offer Consideration and EUR30.00 as a Consent Payment. In addition, accrued interest up to, but not including, the Applicable Payment Date of the Notes will be paid in cash on all validly tendered and accepted Notes. Each of the tender offers is scheduled to expire at 11:59 p.m., New York City time, on May 25, 2011, unless extended. Tendered Notes may be withdrawn and consents may be revoked at any time prior to 5:00 p.m., New York City time, on May 11, 2011, unless extended, but not thereafter. Holders who validly tender their Notes and deliver their consents after the Consent Date will receive only the Tender Offer Consideration applicable to such Notes and will not be entitled to receive a Consent Payment if such Notes are accepted for purchase pursuant to the tender offers. The Company reserves the right, at any time or times following the Consent Date but prior to the Expiration Date, to accept for purchase all of the Dollar or the Euro Notes validly tendered prior to the Early Acceptance Time. If the Company exercises this option, it will pay the Total Consideration for the Dollar Notes or the Euro Notes, as applicable, accepted for purchase at the Early Acceptance Time on a date promptly following the Early Acceptance Time. The Company will also pay on the Early Payment Date accrued and unpaid interest up to, but not including, the Early Payment Date on the Notes accepted for purchase at the Early Acceptance Time. The Company currently expects that the Early Payment Date will be May 12, 2011. Except as amended hereby, the tender offers and consent solicitations remain subject to all of the terms and subject to the conditions set forth in the related Offer to Purchase and Consent Solicitation Statement dated April 28, 2011. The Company's obligation to accept for purchase and to pay for the Notes validly tendered and consents validly delivered, pursuant to the Offer to Purchase, will continue to be subject to, and conditioned upon, certain conditions, including: (a) the receipt by the Company of the proceeds from a previously announced issuance of new senior notes; (b) the effectiveness of a previously announced new senior secured credit facility; and (c) the satisfaction of other general conditions set forth in the Offer to Purchase. Subject to the remaining terms and conditions of the tender offers and consent solicitations, the Company will, following the Expiration Date, accept for purchase all the Dollar Notes or the Euro Notes validly tendered prior to the Expiration Date. The Issuer will pay the applicable Total Consideration or Tender Offer Consideration, as the case may be, for the Dollar Notes and the Euro Notes accepted for purchase at the Final Acceptance Time on a date promptly following the Final Acceptance Time. The Company will also pay on the Final Payment Date accrued and unpaid interest up to, but not including, the Final Payment Date on the Notes accepted for purchase at the Final Acceptance Time. The Company currently expects that the Final Payment Date will be May 26, 2011. Any Notes not tendered and purchased pursuant to the tender offers will remain outstanding, and, to the extent that the requisite consents are received, the holders thereof will be bound by the Proposed Amendments contained in the applicable supplemental indenture even though they have not consented to the Proposed Amendments. None of Sensata's or the Company's board of directors, the dealer managers and solicitation agents or any other person makes any recommendation as to whether holders of Notes should tender their Notes or deliver the related consents, and no one has been authorized to make such a recommendation. Sensata has engaged Barclays Capital Inc. and Morgan Stanley & Co. Incorporated to act as dealer managers and solicitation agents for the tender offers and consent solicitations. With respect to the Dollar Notes, Global Bondholder Services Corporation is the information agent and depositary for the tender offers and consent solicitations. With respect to the Euro Notes, Lucid Issuer Services Limited is the information agent and tender agent for the tender offers and consent solicitations. Questions regarding the tender offers or consent solicitations may be directed to Barclays Capital Inc. at +1 (800) 438-3242 (U.S. toll-free) or +1 (212) 528-7581 (collect) or Morgan Stanley & Co. Incorporated at +1 (800) 624-1808 (U.S. toll-free) or +1 (212) 761-1057 (collect). Requests for the Offer Documents with respect to the Dollar Notes may be directed to Global Bondholder Services Corporation at +1 (866) 952-2200 (U.S. toll-free) or +1 (212) 430-3774 (banks and brokers only). Requests for the Offer Documents with respect to the Euro Notes should be directed to Lucid Issuer Services Limited at +44 (20) 7704-0880. About Sensata Almelo, Netherlands-based Sensata Technologies B.V. -- http://www.sensata.com/-- Sensata Technologies B.V. is a global designer, manufacturer, and marketer of customized and highly- engineered sensors and control products. Sensata is a wholly- owned subsidiary of Sensata Technologies Holding, N.V. Its sensors segment accounts for approximately 60% of the company's 2009 revenues, and supplies sensors and transducers to the commercial, industrial and automotive markets. Revenue for the LTM period ended 9/30/10 approximated $1.5 billion. The Company's balance sheet at March 31, 2011 showed $3.39 billion in total assets, $2.49 billion in total liabilities, and $895.09 million in total shareholders' equity. * * * In October 2010, Moody's Investors Service said that Sensata Technologies' 'B2' Corporate Family Rating and positive outlook remain unchanged following the announcement of its public holding company, Sensata Technologies Holding N.V., that it has reached a definitive agreement to acquire the "Automotive on Board" sensors business of Honeywell International for $140 million in cash. Moody's last rating action on Sensata was Aug. 26, 2010, when the company's Corporate Family and Probability of Default ratings were upgraded to B2 from B3 and the ratings outlook was changed to positive. As reported by the TCR on March 1, 2011, Standard & Poor's Ratings Services raised the ratings on sensors and controls manufacturer Sensata Technologies B.V., including the corporate credit rating, to 'BB-' from 'B+'. The outlook is stable. "The rating actions reflect further improvements in Sensata's credit measures and the continuing ownership reduction of its majority owner, private equity firm Bain Capital, which S&P believes provides further indication that the company is likely to maintain a less- aggressive financial policy," said Standard & Poor's credit analyst Dan Picciotto. "S&P believes operating trends for 2011 remain favorable and that the company has demonstrated good profitability through the economic downturn and into the upturn." SENSATA TECHNOLOGIES: Subsidiary Refinances Existing Indebtedness ----------------------------------------------------------------- Sensata Technologies Holding N.V. announced the completion of a series of financing transactions by its wholly-owned subsidiary, Sensata Technologies B.V., designed to refinance substantially all of its existing indebtedness. These transactions included: * The issuance and sale of $700 million in aggregate principal amount of 6.5% senior notes due 2019 of the Company in a private offering; and * The execution of new senior secured credit facilities that provide the Company with a $1,100 million seven year term loan facility and a $250 million five year revolving credit facility. The New Senior Notes were issued at par and the term loans were issued at 99.5% of par. The term loan facility bears interest at variable rates which includes a LIBOR index rate plus 300 basis points. The proceeds from the New Credit Facilities and the New Senior Notes together with cash on hand were or will be promptly used to (i) repay all of the amounts currently outstanding under the Company' existing term loans, 8% Senior Notes due 2014 and 9% Senior Subordinated Notes due 2016, (ii) pay all accrued interest on such indebtedness and related redemption premiums and (iii) pay all fees and expenses in connection with these refinancing transactions. Sensata expects to write-off existing deferred financing costs and recognize as expense certain costs associated with the redemption of the Notes totaling approximately $41 million. In addition, Sensata will capitalize other transaction costs and fees totaling approximately $40 million, which will be amortized to interest expense over the term of the New Senior Notes and the New Credit Facilities. In connection with the previously announced cash tender offers and consent solicitations with respect to all of the Company's outstanding Notes, the Company accepted for payment and has repurchased: (i) $13,007,000 aggregate principal amount of the Dollar Notes, which notes had been validly tendered as of 5:00 p.m., New York City time, on May 11, 2011, and (ii) EUR37,578,000 aggregate principal amount of the Euro Notes, which notes had been validly tendered as of the Consent Date. Holders of the Dollar Notes received total consideration of $1,022.50 per $1,000 principal amount of such Notes and holders of the Euro Notes received total consideration of EUR1,048.75 per EUR1,000 principal amount of such Notes, plus in each case, accrued interest up to, but not including, May 12, 2011. Holders who validly tender their Notes after the Consent Date, but on or prior to 11:59 p.m., New York City time, on May 25, 2011, unless extended or earlier terminated by the Company, and whose Notes are accepted for payment, will receive: (i) with respect to Dollar Notes, the tender offer consideration equal to $992.50 per $1,000 principal amount of such Notes, and (ii) with respect to Euro Notes, the tender offer consideration equal to EUR1,018.75 per EUR1,000 principal amount of such Notes, plus in each case, accrued interest up to, but not including, the applicable payment date of the Notes. Holders of Notes who tender after the Consent Date will not receive the consent payment. Subject to the terms and conditions of the tender offers and consent solicitations, the Company will, following the Expiration Date, accept for purchase all the Dollar Notes or the Euro Notes validly tendered after the Consent Date and prior to the Expiration Date. The Company will pay the Tender Offer Consideration for the Dollar Notes and the Euro Notes accepted for purchase at the Final Acceptance Time on a date promptly following the Final Acceptance Time. The Company currently expects that the Final Payment Date will be May 26, 2011. Any Notes not tendered and purchased pursuant to the tender offers will remain outstanding and, to the extent that the requisite consents are received, the holders thereof will be bound by the proposed amendments to the indentures governing the Notes contained in the applicable supplemental indenture even though they have not consented to the proposed amendments. The Company has issued redemption notices with respect to any Notes that remain outstanding after the consummation of the tender offers in accordance with the terms of the applicable indenture. The redemption date with respect to any such Notes will be June 13, 2011. None of Sensata's or the Company's board of directors, the dealer managers and solicitation agents or any other person makes any recommendation as to whether holders of Notes should tender their Notes or deliver the related consents, and no one has been authorized to make such a recommendation. Barclays Capital Inc. and Morgan Stanley & Co. Incorporated are acting as dealer managers and solicitation agents for the tender offers and consent solicitations. With respect to the Dollar Notes, Global Bondholder Services Corporation is the information agent and depositary for the tender offer and consent solicitation. With respect to the Euro Notes, Lucid Issuer Services Limited is the information agent and tender agent for the tender offer and consent solicitation. Questions regarding the tender offers or consent solicitations may be directed to Barclays Capital Inc. at +1 (800) 438-3242 (U.S. toll-free) or +1 (212) 528-7581 (collect) or Morgan Stanley & Co. Incorporated at +1 (800) 624-1808 (U.S. toll-free) or +1 (212) 761-1057 (collect). Requests for the Offer Documents with respect to the Dollar Notes may be directed to Global Bondholder Services Corporation at +1 (866) 952-2200 (U.S. toll-free) or +1 (212) 430-3774 (banks and brokers only). Requests for the Offer Documents with respect to the Euro Notes should be directed to Lucid Issuer Services Limited at +44 (20) 7704-0880. About Sensata Almelo, Netherlands-based Sensata Technologies B.V. -- http://www.sensata.com/-- Sensata Technologies B.V. is a global designer, manufacturer, and marketer of customized and highly- engineered sensors and control products. Sensata is a wholly- owned subsidiary of Sensata Technologies Holding, N.V. Its sensors segment accounts for approximately 60% of the company's 2009 revenues, and supplies sensors and transducers to the commercial, industrial and automotive markets. Revenue for the LTM period ended 9/30/10 approximated $1.5 billion. The Company's balance sheet at March 31, 2011 showed $3.39 billion in total assets, $2.49 billion in total liabilities, and $895.09 million in total shareholders' equity. * * * In October 2010, Moody's Investors Service said that Sensata Technologies' 'B2' Corporate Family Rating and positive outlook remain unchanged following the announcement of its public holding company, Sensata Technologies Holding N.V., that it has reached a definitive agreement to acquire the "Automotive on Board" sensors business of Honeywell International for $140 million in cash. Moody's last rating action on Sensata was Aug. 26, 2010, when the company's Corporate Family and Probability of Default ratings were upgraded to B2 from B3 and the ratings outlook was changed to positive. As reported by the TCR on March 1, 2011, Standard & Poor's Ratings Services raised the ratings on sensors and controls manufacturer Sensata Technologies B.V., including the corporate credit rating, to 'BB-' from 'B+'. The outlook is stable. "The rating actions reflect further improvements in Sensata's credit measures and the continuing ownership reduction of its majority owner, private equity firm Bain Capital, which S&P believes provides further indication that the company is likely to maintain a less- aggressive financial policy," said Standard & Poor's credit analyst Dan Picciotto. "S&P believes operating trends for 2011 remain favorable and that the company has demonstrated good profitability through the economic downturn and into the upturn." SIMON WORLDWIDE: Incurs $490,000 Net Loss in First Quarter ---------------------------------------------------------- Simon Worldwide, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $490,000 on $0 of revenue for the three months ended March 31, 2011, compared with a net loss of $588,000 on $0 of revenue for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $10.80 million in total assets, $203,000 in total liabilities, all current, and $10.60 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/sgrjr8 About Simon Worldwide Based in Los Angeles, Simon Worldwide, Inc. (OTC: SWWI) no longer has any operating business. Prior to August 2001, the Company operated as a multi-national full-service promotional marketing company, specializing in the design and development of high-impact promotional products and sales promotions. At Dec. 31, 2009, the Company held an investment in Yucaipa AEC Associates, LLC, a limited liability company that is controlled by the Yucaipa Companies, a Los Angeles, California based investment firm. Yucaipa AEC in turn principally held an investment in the common stock of Source Interlink Companies, a direct-to-retail magazine distribution and fulfillment company in North America, and a provider of magazine information and front-end management services for retailers and a publisher of approximately 75 magazine titles. Yucaipa AEC held this investment in Source until April 28, 2009, when Source filed a pre-packaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company reported a net loss of $2.33 million on $0 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $2.11 million on $0 of revenue during the prior year. As reported by the TCR on April 4, 2011, BDO USA, LLP, in Los Angeles, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditor noted that the Company has suffered significant losses from operations, has a lack of any operating revenue and is subject to potential liquidation in connection with a recapitalization agreement. On June 11, 2008, the Company entered into an Exchange and Recapitalization Agreement with Overseas Toys, L.P., the then holder of all the outstanding shares of preferred stock of the Company, pursuant to which all the outstanding preferred stock would be converted into shares of common stock representing 70% of the shares of common stock outstanding immediately following the conversion. The Recapitalization Agreement was negotiated on the Company's behalf by the Special Committee of disinterested directors which, based in part upon the opinion of the Special Committee's financial advisor, determined that the transaction was fair to the holders of common stock from a financial point of view. At a special meeting held on Sept. 18, 2008, the stockholders of the Company approved amendments to the Company's certificate of incorporation proposed in order to effect a recapitalization of the Company pursuant to the terms of the Recapitalization Agreement. Under the Recapitalization Agreement, the Company issued 37,940,756 shares of common stock with a fair value of $15.2 million in exchange for 34,717 shares of preferred stock (representing all outstanding preferred shares) with a carrying value of $34.7 million and related accrued dividends of approximately $147,000. The Company recorded $19.7 million to retained earnings in September 2008 representing the excess of carrying value of the preferred stock received over the fair market value of the common shares issued as such difference essentially represented a return to the Company. SINOBIOMED INC: Delays Filing of 1st Quarter Report --------------------------------------------------- Sinobiomed Inc. said that recent activities have delayed the preparation and review of its quarterly report on Form 10-Q. The Company represents that the Form 10-Q will be filed by no later than the 5th day following the date on which the Form 10-Q was due. About Sinobiomed Sinobiomed Inc. formerly CDoor Corp. (OTC BB: SOBM) -- http://www.sinobiomed.com/-- was incorporated in the State of Delaware. The Company is a Chinese developer of genetically engineered recombinant protein drugs and vaccines. Based in Shanghai, Sinobiomed currently has 10 products approved or in development: three on the market, four in clinical trials and three in research and development. The Company's products respond to a wide range of diseases and conditions, including: malaria, hepatitis, surgical bleeding, cancer, rheumatoid arthritis, diabetic ulcers and burns, and blood cell regeneration. The Company reported a net loss of US$577,531 on US$0 of revenue for the year ended Dec. 31, 2010, compared with net income of US$3.63 million on US$0 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed US$210,176 in total assets, US$686,095 in total liabilities and US$475,919 in total stockholders' deficit. The Company currently has no operations and no source of income. The Company intends to seek out opportunities to enter or acquire new business operations. The underlying value of the company is entirely dependent on the ability of the Company to find and implement a new business opportunity and obtain the necessary financing to capitalize on such opportunity. Schumacher & Associates, Inc., in Littleton, Colorado, noted that the Company has experienced losses since commencement of operations, and has negative working capital and stockholders' deficit which raise substantial doubt about its ability to continue as a going concern. SOLUTIONS, INC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Solutions, Inc. 611 North Franklin Street Tampa, FL 33602 Bankruptcy Case No.: 11-09676 Chapter 11 Petition Date: May 20, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: David S. Jennis, Esq. JENNIS & BOWEN, P.L. 400 N. Ashley Drive, Suite 2540 Tampa, FL 33602 Tel: (813) 229-1700 Fax: (813) 229-1707 E-mail: ecf@jennisbowen.com - and - Suzy Tate, Esq. JENNIS & BOWEN, PL 400 North Ashley Drive, Suite 2540 Tampa, FL 33602 Tel: (813) 229-1700 Fax: (813) 229-1707 E-mail: ecf@jennisbowen.com Scheduled Assets: $1,665,272 Scheduled Debts: $839,931 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-09676.pdf The petition was signed by Carolyn Wilson, president. SPHERIX INC: Regains Compliance With NASDAQ Listing Rule -------------------------------------------------------- Spherix Incorporated has regained compliance with NASDAQ listing rule 5550(a)(2), which concerns minimum bid price listing requirements. As previously announced, Spherix was notified by NASDAQ that its common stock failed to meet the minimum bid price; thus the Company was put on notice of a potential de-listing of its stock if it failed to regain compliance with the rule. On May 24, 2011, NASDAQ provided confirmation to the Company that the closing bid price for the prior 10 business days had met the minimum bid price requirement; thus the Company has regained compliance and the de-listing matter with NASDAQ has been closed. About Spherix Incorporated Bethesda, Md.-based Spherix Incorporated (NASDAQ CM: SPEX) -- http://www.spherix.com/-- was launched in 1967 as a scientific research company, under the name Biospherics Research. The Company now leverages its scientific and technical expertise and experience through its two subsidiaries -- Biospherics Incorporated and Spherix Consulting, Inc. Biospherics is currently running a Phase 3 clinical trial to study the use of D-tagatose as a treatment for Type 2 diabetes. Its Spherix Consulting subsidiary provides scientific and strategic support for suppliers, manufacturers, distributors and retailers of conventional foods, biotechnology-derived foods, medical foods, infant formulas, food ingredients, dietary supplements, food contact substances, pharmaceuticals, medical devices, consumer products, and industrial chemicals and pesticides. SPJST: A.M. Best 'B' Affirms Financial Strength Rating ------------------------------------------------------ A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating of B (Fair) and issuer credit rating of "bb" of SPJST (The Society) (Temple, TX). The revised outlook for SPJST reflects an increase in unassigned funds, which is attributable to the company's improved profitable operating performance, as well as an improvement in its investment portfolio in 2010. The Society continues to report premium growth in both of its core individual annuity and ordinary life lines of business. Additionally, SPJST enjoys its long-standing fraternal role of providing financial products and fraternal benefits to its membership base, which is available to everyone in Texas. Despite an improvement in the investment portfolio, A.M. Best remains concerned over SPJST's large exposure to mortgage loans and equities, its increased level of interest-sensitive fixed annuities and the underlying spread compression risk and a further decline in its NAIC risk-based capital ratio. STERLING ESTATES: Seeks to Employ Bauch & Michaels as Counsel ------------------------------------------------------------- Sterling Estates (Delaware), LLC, has asked authorization from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Bauch & Michaels, LLC, as its attorneys effective as of May 1, 2011. Bauch & Michaels will provide various legal services to the Debtor In its role as counsel, including, without limitation, the following: a. render legal advice with respect to the powers and duties of the Debtor to manage its property as debtor in possession; b. negotiate, prepare and file documents in connection with the confirmation of the ORIX Plan; c. take all necessary action to protect and preserve the estate of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, negotiations concerning all litigation in which the Debtor is or becomes involved, and the evaluation and objection to claims filed against the estate, and the prosecution of the ORIX Plan to confirmation; d. prepare, on behalf of the Debtor, all necessary applications, motions, answers, orders, reports and papers in connection with the administration of the estate herein, and appear on behalf of the Debtor at all Court hearings in connection with the Debtor's case; and e. render legal advice and perform all other legal services in connection with the foregoing and in connection with this chapter 11 case. Bauch & Michaels will charge for its legal services on an hourly basis in accordance with its ordinary and customary hourly rates as in effect on the date services are rendered. The principal attorneys who will represent the Debtor in their chapter 11 cases and their standard hourly rates are a. Paul M. Bauch: $400 per hour; b. Kenneth A. Michaels Jr.: $375 per hour; and c. Carolina Y. Sales: $195 per hour. Paul M. Bauch, Esq., a partner at Bauch & Michaels, LLC, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Sterling Estates Chicago, Illinois-based Sterling Estates (Delaware), LLC, dba Sterling Estates Manufactured Home Community, owns and operates a manufactured home community, a park consisting of pre-manufactured homes placed on individual sites or "pads" that are leased out to customers. It filed for Chapter 11 bankruptcy protection on May 17, 2010 (Bankr. N.D. Ill. Case No. 10-22319). Eugene Crane, Esq., at Crane Heyman Simon Welch & Clar, represents the Debtor. The Company estimated assets at $50 million to $100 million and debts at $10 million to $50 million. STRATUS MEDIA: Incurs $1.71 Million First Quarter Net Loss ---------------------------------------------------------- Stratus Media Group, Inc., filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $1.71 million for the three months ended March 31, 2011, compared with a net loss of $1.73 million for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $5.44 million in total assets, $6.17 million in total liabilities, and $722,895 in total shareholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/oIbm6C About Stratus Media Santa Barbara, Calif.-based Stratus Media Group, Inc., is an owner, operator and marketer of live sports and entertainment events. Subject to the availability of capital, the Company intends to aggregate a large number of complementary live sports and entertainment events across North America and internationally. As reported by the TCR on April 29, 2011, Goldman Kurland Mohidin, LLP, in Encino, California, expressed substantial doubt about Stratus Media Group's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and has negative cash flow from operations. The Company reported a net loss of $8.41 million on $40,189 of revenues for 2010, compared with a net loss of $3.40 million on $0 revenue for 2009. SUGARHOUSE HSP: S&P Gives 'B-' Rating to $235MM Sr. Secured Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned Philadelphia-based Sugarhouse HSP Gaming Prop. Mezz. L.P.'s (HSP) $235 million senior secured notes due 2016 its 'B-' issue-level rating (the same as our 'B-' corporate credit rating on the company). "We also assigned this debt a recovery rating of '3', indicating our expectation for meaningful (50% to 70%) recovery for lenders in the event of a payment default. Sugarhouse HSP Gaming Finance Corp., a newly formed, wholly owned subsidiary of HSP serves as co-issuer of the notes," S&P noted. The company used proceeds from the notes issuance and a portion of cash on hand to repay the $206 million outstanding balance on its previously existing term loan as well as the $20 million balance on its furniture, fixture, and equipment facility. "We withdrew our existing 'B-' issue-level ratings on the company's senior secured credit facilities (including a $10 million revolving credit facility and the aforementioned term loan). The company has entered into a new senior secured credit facility, which is unrated, providing for a $10 million revolving line of credit. Our 'B-' corporate credit rating and negative rating outlook are unchanged," S&P stated. "The 'B-' corporate credit rating reflects HSP's reliance on a single property for cash flow generation, the highly competitive dynamics in the region, and our belief that the company will likely pursue a future debt-financed expansion at the SugarHouse Casino despite the limited operating history at the property and weaker-than-expected slot performance," said Standard & Poor's credit analyst Ben Bubeck. Additionally, a meaningful portion of the company's capital structure is comprised of preferred and senior preferred equity interests, which accrue a substantial noncash rate of return. "Although the notes indenture restricts the company's ability to make cash distributions to the equity holders, we consider the preferred equity to have debt-like characteristics given that the securities likely represent a future claim on cash. When included as a component of the company's debt balance, the noncash accrual on the preferred equity inhibits the company's ability to deleverage under our current performance expectations," S&P added. T3 MOTION: Delays Filing of First Quarter Form 10-Q --------------------------------------------------- T3 Motion, Inc., notified the U.S. Securities and Exchange Commission that it is unable to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, within the prescribed time period because the Company has effected a one-for-ten reverse stock split and needs additional time to complete the quarterly financial statements based on the split adjusted numbers. About T3 Motion Costa Mesa, Calif.-based T3 Motion, Inc., develops and manufactures T3 Series vehicles, which are electric three-wheel stand-up vehicles that are directly targeted to the public safety and private security markets. The Company reported a net loss of $8.32 million on $4.68 million of net revenues for the year ended Dec. 31, 2010, compared with a net loss of $6.70 million on $4.64 million of net revenues during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $3.58 million in total assets, $19.25 million in total liabilities, and a $15.67 million stockholders' deficit. As reported by the TCR on April 6, 2011, KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and has used substantial amounts of working capital in its operations since inception, and at Dec. 31, 2010, has a working capital deficit of $15,057,791 and an accumulated deficit of $45,120,210. T3 MOTION: Increases Size of Public Offering to $11.1 Million ------------------------------------------------------------- T3 Motion, Inc., has priced a public offering of 3,171,429 units of its securities at $3.50 per unit. Each unit consists of one share of its common stock, one Class H Warrant and one Class I Warrant. The securities are expected to begin trading on the NYSE Amex on May 16, 2011. The offering is expected to close on May 19, 2011, subject to customary closing conditions. The offering size was increased reflecting the underwriter's exercise in part of its overallotment option to purchase an additional 314,286 units. T3 Motion anticipates that the net proceeds of this offering will be used to repay outstanding indebtedness, the balance of a settlement obligation and for general working capital purposes, which may include increased spending of for research and development, sales and marketing and the hiring of additional personnel. None of T3 Motion's management, employees, affiliates, or other stockholders are selling securities in this offering. In addition, all insiders have signed lock-ups and are prohibited from selling their stock for a period of one year. Chardan Capital Markets, LLC, acted as the sole underwriter for this transaction. A registration statement relating to these securities was declared effective by, the U.S. Securities and Exchange Commission on May 13, 2011. This offering will be made only by means of the prospectus, copies of which may be obtained from Chardan Capital Markets, Attention: [Equity Syndicate] at 17 State St., Suite 1600, New York, NY 10004, phone: (646) 465-9025, fax: (646) 465-9091. The registration statement may also be accessed through the SEC website: www.sec.gov About T3 Motion Costa Mesa, Calif.-based T3 Motion, Inc., develops and manufactures T3 Series vehicles, which are electric three-wheel stand-up vehicles that are directly targeted to the public safety and private security markets. The Company reported a net loss of $8.32 million on $4.68 million of net revenues for the year ended Dec. 31, 2010, compared with a net loss of $6.70 million on $4.64 million of net revenues during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $3.58 million in total assets, $19.25 million in total liabilities, and a $15.67 million stockholders' deficit. As reported by the TCR on April 6, 2011, KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and has used substantial amounts of working capital in its operations since inception, and at Dec. 31, 2010, has a working capital deficit of $15,057,791 and an accumulated deficit of $45,120,210. TELKONET INC: Incurs $982,478 Net Loss in March 31 Quarter ---------------------------------------------------------- Telkonet Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $982,478 on $2.48 million of total revenue for the three months ended March 31, 2011, compared with a net loss of $671,866 on $2.58 million of total revenue for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $15.14 million in total assets, $4.84 million in total liabilities, $929,588 in redeemable preferred stock, Series, A, $719,157 in redeemable preferred stock, Series B, and $8.65 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/OdlyGk About Telkonet Milwaukee, Wisconsin-based Telkonet, Inc. is a clean technology company that develops and manufactures proprietary energy efficiency and smart grid networking technology. The Company reported a net loss attributable to common stockholders of $1.77 million on $11.26 million of total revenue for the year ended Dec. 31, 2010, compared with net income attributable to common stockholders of $1.06 million on $10.52 million of total revenue during the prior year. RBSM LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. RBSM noted that the Company has incurred significant operating losses in current year and also in the past. TELTRONICS INC: Delays Filing of First Quarter Form 10-Q -------------------------------------------------------- Teltronics, Inc., informed the U.S. Securities and Exchange Commission that it is unable to file Form 10-Q for the quarter ended March 31, 2011, within the prescribed time period because not all of the documents and information necessary to file the Annual Report of Form 10-K were available, therefore resulting in a delay of assembling and compiling the Form 10-Q. The Company anticipates filing its Annual Report on Form 10-K and the Quarterly Report on Form 10-Q as soon as the information is available to complete our Reports. About Teltronics Inc. Palmetto, Fla.-based Teltronics, Inc. (OTC BB: TELT) -- http://ww.teltronics.com/-- designs, installs, develops, manufactures and markets electronic hardware and application software products, and engages in electronic manufacturing services primarily in the telecommunication industry. The Company's balance sheet at Sept. 30, 2010, showed $10.25 million in total assets, $14.70 million in total current liabilities, $4.43 million in total long-term liabilities, and a stockholders' deficit of $8.88 million. TEXAS STATE: S&P Lowers Long-term Rating on 2002A Bonds to 'D' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term rating on Texas State Affordable Housing Corp.'s (American Housing Foundation portfolio) $114 million multifamily housing revenue bonds series 2002A bonds to 'D' from 'BBB'. At the same time, Standard & Poor's withdrew its underlying rating (SPUR) on the bonds. Standard & Poor's was informed that the bond insurance policy on this issue was cancelled as of May 12, 2011; therefore, the long- term rating is now based solely on the performance of the bonds. According to the trustee, as of May 18, 2011, the bonds were in default. TRA TRANSPORTATION: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: TRA Transportation, Inc. P.O. Box 449 Pinckard, AL 36371 Bankruptcy Case No.: 11-10839 Chapter 11 Petition Date: May 20, 2011 Court: U.S. Bankruptcy Court Middle District of Alabama (Dothan) Judge: William R. Sawyer Debtor's Counsel: Collier H. Espy, Jr., Esq. ESPY, METCALF & ESPY, P.C. P.O. Drawer 6504 326 North Oates Street Dothan, AL 36302-6504 Tel: (334) 793-6288 E-mail: kc@espymetcalf.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/almb11-10839.pdf The petition was signed by Tommy R. Andrews, president. TOWNSENDS INC: Committee Wants Claims Satisfied Thru $15.6MM Fund ----------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Townsends Inc., now known as TW Liquidation Corp., et al., asks the U.S. Bankruptcy Court for the District of Delaware to compel the Debtors to: i) immediately make payment of all undisputed, allowed claims; ii) immediately make payment of any undisputed portion of claims; and iii) pay the allowed portion of any disputed claims immediately upon entry of any order or stipulation resolving the disputed claims. The Committee proposes a hearing on their request on June 17, 2011, at 2:00 p.m. (ET). Objections, if any are due June 10, at 4:00 p.m. The Committee relates that the final DIP financing order dated on Jan. 28, 2011, provided for the creation of a $15.6 million fund from the disposition of the Debtors' assets to satisfy, to the extent possible, allowed claims. The Committee has requested that the Debtors make immediate payment to holders of the undisputed 503(b)(9) claims, but the Debtors have refused to do so. The Committee is represented by: LOWENSTEIN SANDLER PC Kenneth A. Rosen, Esq. Bruce Buechler, Esq. Bruce S. Nathan, Esq. Timothy R. Wheeler, Esq. 65 Livingston Avenue Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 WOMBLE CARLYLE SANDRIDGE & RICE, PLLC Steven K. Kortanek, Esq. Thomas M. Horan, Esq. 222 Delaware Avenue, Suite 1501 Wilmington, DE 19801 Tel: (302) 252-4320 Fax: 302-252-4330 About Townsends Inc. Founded in 1891, Townsends Inc. is a third-generation, family- owned poultry company. Headquartered in Georgetown, Delaware, Townsends operates production and processing facilities in Arkansas and North Carolina. Townsends Inc. -- fka Townsend Speciality Foods -- and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 10-14092) on Dec. 19, 2010. As of Dec. 5, 2010, the Debtors disclosed $131 million in total assets and $127 million in total debts. Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell, serves as the Debtors' bankruptcy counsel. McKenna Long & Aldridge LLP serves as special counsel. Huron Consulting Group's Dalton T. Edgecomb serves as the Debtors' chief restructuring officer. SSG Capital Advisors, LLC, serves as investment banker. Donlin, Recano & Company, Inc., is the Debtors' claims, noticing and balloting agent. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has tapped Lowenstein Sandler PC as its counsel and J.H. Cohn LLP as its financial advisor. No trustee or examiner has been appointed in the Debtors' bankruptcy cases. TRAILER BRIDGE: Moody's Downgrades CFR to Caa2; Outlook Negative ---------------------------------------------------------------- Moody's Investors Service downgraded Trailer Bridge, Inc.'s Corporate Family and Probability of Default ratings two notches to Caa2 from B3. Concurrently, the company's 9.25% senior secured notes due November 2011 were also downgraded to Caa2 from B3. Moody's lowered the speculative grade liquidity rating to SGL-4. The ratings outlook was changed to negative from stable. These ratings were downgraded: -- Corporate family and probability of default, to Caa2 from B3 -- $82.5 million 9.25% senior secured notes due November 2011, Caa2 (LGD-4, 50%) from B3 (LGD-3, 49%) -- Speculative grade liquidity, to SGL-4 from SGL-3 RATINGS RATIONALE The ratings downgrade was prompted by Trailer Bridge's upcoming maturities comprising the majority of the company's debt structure over the next twelve months combined with insufficient liquidity sources to satisfy these obligations absent a refinancing. Total reported debt at March 31, 2011 stood at $102 million, roughly $85 million is due within the next twelve months, largely attributable to the $82.5 million 9.25% senior secured notes maturing on November 15, 2011. Although the primary driver of the downgrade is the need to refinance within a relatively short timeframe, credit metrics are also currently in line with a Caa rating and are expected to be characteristic of a Caa rating for some time. Debt/EBITDA stood at 12.0 times and EBIT/interest was under 0.5 times for the last twelve months ended March 31, 2011, reflecting Moody's standard adjustments. These figures include the $6.6 million of dry-docking expenses during the first quarter of 2011 which accounted for a meaningful portion of the $8.0 million operating loss reported during the quarter. The rating also incorporates that the company operates in very competitive and highly cyclical markets. The Caa2 corporate family rating considers that even if a refinancing is successful, Moody's believes that the company will likely be operating with elevated leverage metrics and weak interest coverage metrics over the intermediate term. A refinancing will likely entail higher interest costs than the current debt structure. The negative outlook is primarily based on the necessity to refinance the capital structure due to impending debt maturities. The SGL-4 rating reflects a weak liquidity profile. Trailer Bridge's liquidity profile is characterized by a cash balance of $3.1 million at March 31, 2011 with $85 million of current debt maturities. The company's $10 million revolving credit facility and term loan expire within the next twelve months (April 2012). As of March 31, 2012, there were no drawings under the revolver and approximately $5.4 million drawn under the term loan. Both of the facilities expire on April 2012. Free cash flow is expected to remain negative over the next twelve months. If the company draws under the revolver such that availability under the revolver declines to $3 million, a minimum fixed charge covenant would apply. An additional component factored into the SGL-4 rating are that a large portion of Trailer Bridge's property and vessels are encumbered. The inability to refinance the company's capital structure could lead to a further ratings downgrade. The ratings could be upgraded if the company refinances the capital structure, improves the liquidity profile and Moody's comes to expect an improvement in credit metrics. The principal methodology used in rating Trailer Bridge was the Global Shipping Industry Methodology, published December 2009. Other methodologies used include Loss Given Default for Speculative Grade Issuers in the US, Canada, and EMEA, published June 2009. Trailer Bridge, Inc., headquartered in Jacksonville, Florida is an integrated trucking and marine freight carrier that provides truckload freight transportation primarily between the continental U.S., Puerto Rico and Dominican Republic. Last twelve months ended March 31, 2011 revenues were approximately $114 million. TRANS ENERGY: Delays Form 10-Q as CFO Resigned April ---------------------------------------------------- In April 2011, Trans Energy, Inc., appointed a new Chief Financial Officer and its Chief Accounting Officer resigned. Because of the transition of new personnel, the Company has not completed its financial statements for the period ended March 31, 2011, nor has the certifying auditors had the opportunity to review the financial statements. Accordingly the Company is unable to complete and file its Form 10-Q quarterly report by the due date, but expects that the financial statements and review will be completed and Form 10-Q finalized in order to file the report within the prescribed extension period. About Trans Energy West Virginia-based Trans Energy, Inc. -- http://www.transenergyinc.com/-- is an independent exploration and production company focused on exploring, developing and producing oil and natural gas in the Appalachian Basin. The common shares of the Company are listed for trading on the Over The Counter Bulletin Board under the symbol "TENG". According to the Troubled Company Reporter on Nov. 9, 2010, Trans Energy, Inc., and CIT Capital USA Inc. entered into a forbearance letter agreement on Oct. 29, 2010, whereby CIT agreed to forebear from exercising its rights and remedies against the Company and its property until Dec. 31, 2010. The forbearance relates to a senior secured revolving credit facility. The October Forbearance Letter extends the terms and provisions of the parties' earlier forbearance agreement entered into on July 9, 2010, that extended the forbearance period to Oct. 29, 2010. The Company's balance sheet at Dec. 31, 2010 showed $40.88 million in total assets, $23.41 million in total liabilities and $17.47 million in total stockholders' equity. As reported by the TCR on April 18, 2011, Maloney + Novotny, LLC, in Cleveland, Ohio, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has generated significant losses from operations and has a working capital deficit of $19,699,824 at Dec. 31, 2010. TRANS-LUX CORPORATION: Incurs $1.67-Mil. Net Loss in March Qtr. --------------------------------------------------------------- Trans-Lux Corporation filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $1.67 million on $4.91 million of total revenues for the three months ended march 31, 2011, compared with a net loss of $1.42 million on $5.38 million of total revenues for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $31.50 million in total assets, $33.03 million in total liabilities and a $1.53 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/SJ3OOS About Trans-Lux Corporation Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a designer and manufacturer of digital signage display solutions for the financial, sports and entertainment, gaming and leasing markets. Trans-Lux reported a net loss of $7.03 million on $24.30 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $8.79 million on $28.54 million of total revenues during the prior year. As reported by the TCR on April 8, 2011, UHY LLP, in Hartford, Connecticut, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring losses from continuing operations and has a significant working capital deficiency. In 2009, the Company had a loss from continuing operations of $8.8 million and has a working capital deficiency of $16.0 million as of Dec. 31, 2009. Furthermore, the Company is in default of the indenture agreements governing its outstanding 9 1/2% Subordinated debentures and its 8 1/4% Limited convertible senior subordinated notes so that the trustees or holders of 25% of the outstanding Debentures and Notes have the right to demand payment immediately. TRANS-LUX CORPORATION: GAMCO Asset Discloses 3.58% Equity Stake --------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, GAMCO Asset Management Inc., and its affiliates disclosed that they beneficially own 87,500 shares of common stock of Trans-Lux Corporation representing 3.58% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/x7JbQ5 About Trans-Lux Corporation Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a designer and manufacturer of digital signage display solutions for the financial, sports and entertainment, gaming and leasing markets. The Company's balance sheet at March 31, 2011, showed $31.50 million in total assets, $33.03 million in total liabilities and a $1.53 million total stockholders' deficit. Trans-Lux reported a net loss of $7.03 million on $24.30 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $8.79 million on $28.54 million of total revenues during the prior year. As reported by the TCR on April 8, 2011, UHY LLP, in Hartford, Connecticut, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring losses from continuing operations and has a significant working capital deficiency. In 2009, the Company had a loss from continuing operations of $8.8 million and has a working capital deficiency of $16.0 million as of Dec. 31, 2009. Furthermore, the Company is in default of the indenture agreements governing its outstanding 9 1/2% Subordinated debentures and its 8 1/4% Limited convertible senior subordinated notes so that the trustees or holders of 25% of the outstanding Debentures and Notes have the right to demand payment immediately. TREY RESOURCES: Delays Filing of Quarterly Report on Form 10-Q -------------------------------------------------------------- Trey Resources, Inc., notified the U.S. Securities and Exchange Commission that it will be late in filing its Quarterly Report on Form 10-Q for the period ended March 31, 2011. The Company said it was not able to obtain all information prior to filing date and management could not complete the required financial statements and Management's Discussion and Analysis of such financial statements without undue hardship and expense to the Company by May 16, 2011. About Trey Resources Livingston, N.J.-based Trey Resources, Inc. operates as a business consultant, and value-added reseller and developer of financial accounting software in the United States. The Company reported a net loss of $568,505 on $7.48 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.50 million on $7.41 million of total revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $1.02 million in total assets, $6.13 million in total liabilities and $5.11 million in total stockholders' deficit. Friedman LLP, in East Hanover, NJ, expressed substantial doubt about the Company's ability to continue as a going concern. The Company's financial statements for the year ended Dec. 31, 2010 have been prepared assuming the Company will continue as a going concern. The Company has incurred substantial accumulated deficits and operating losses, and at Dec. 31, 2010, has a working capital deficiency of approximately $5.1 million. TRICO MARINE: Judge Clears Chapter 11 Plan for Creditor Vote ------------------------------------------------------------ Lance Duroni at Bankruptcy Law360 reports that Trico Marine Services Inc. won a Delaware bankruptcy court's blessing Monday to begin soliciting votes on its Chapter 11 liquidation plan, under which most creditors will see only pennies on the dollar for their claims. Law360 relates that U.S. Bankruptcy Judge Brendan L. Shannon said at a hearing that he would sign off on Trico's disclosure statement after the company works with creditors on some minor language changes, overruling an objection from aggrieved creditor Arrowgrass Master Fund Ltd. About Trico Marine Headquartered in Texas, Trico Marine Services, Inc. -- http://www.tricomarine.com/-- provides subsea services, subsea trenching and protection services, and towing and supply vessels. Trico filed for Chapter 11 protection (Bankr. D. Del. Case No. 10- 12653) on Aug. 25, 2010. John E. Mitchell, Esq., Angela B. Degeyter, Esq., and Harry A. Perrin, Esq., at Vinson & Elkins LLP, serve as the Debtor's bankruptcy counsel. The Debtor disclosed US$30,562,681 in assets and US$353,606,467 in liabilities as of the Petition Date. Affiliates Trico Marine Assets, Inc. (Bankr. D. Del. Case No. 10-12648), Trico Marine Operators, Inc. (Case No. 10-12649), Trico Marine International, Inc. (Case No. 10-12650), Trico Marine Cayman, L.P. (Case No. 10-12651), and Trico Holdco, LLC (Case No. 10-12652) filed separate Chapter 11 petitions. Cahill Gordon & Reindell LLP is the Debtors' special counsel. Alix Partners Services, LLC, is the Debtors' chief restructuring officer. Epiq Bankruptcy Solutions is the Debtors' claims and notice agent. Postlethwaite & Netterville serves as the Debtors' accountant and Ernst & Young LLP serves as tax advisors. Pricewaterhousecoopers LLC provides the independent accountants and tax advisors for the Debtors. Aside from the Cayman Islands holding company, Trico's foreign subsidiaries were not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code. The Official Committee of Unsecured Creditors tapped Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski, Stang, Ziehl & Jones LLP, in Wilmington, Delaware, and Andrew K. Glenn, Esq., David J. Mark, Esq., and Daniel A. Fliman, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, as counsel. ULURU INC: Posts $1.2 Million Net Loss in March 31 Quarter ---------------------------------------------------------- ULURU Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $1.2 million on $75,171 of revenues for the three months ended March 31, 2011, compared with a net loss of $1.3 million on $235,230 of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed $8.3 million in total assets, $1.6 million in total liabilities, and stockholders' equity of $6.7 million. As reported in the TCR on April 25, 2011, Lane Gorman Trubitt, PLLC, in Dallas, Tex., expressed substantial doubt about ULURU's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses from operations, negative cash flows from operating activities and is dependent upon raising additional funds from strategic transactions, sales of equity, or issuance of debt. A complete text of the Form 10-Q is available for free at: http://is.gd/EkKZTu Addison, Tex.-based ULURU Inc. (NYSE AMEX: ULU) -- http://www.uluruinc.com/-- is a specialty pharmaceutical company focused on the development of a portfolio of wound management and oral care products to provide patients and consumers improved clinical outcomes through controlled delivery utilizing its innovative Nanoflex(R) Aggregate technology and OraDisc(TM) transmucosal delivery system. UNIVERSAL BIOENERGY: Delays Filing of Quarterly Report ------------------------------------------------------ Universal BioEnergy, Inc., informed the U.S. Securities and Exchange Commission that it has been unable to complete its Form 10-Q for the quarter ended March 31, 2011, within the prescribed time because of delays in completing the preparation of its financial statements and its management discussion and analysis. Such delays are primarily due to Company's management's dedication of such management's time to business matters. This has taken a significant amount of management's time away from the preparation of the Form 10-Q and delayed the preparation of the unaudited financial statements for the quarter ended March 31, 2011. About Universal Bioenergy Universal Bioenergy Inc., is an alternative energy company headquartered in Irvine, California. The Company's new strategic direction is to develop and market a diverse product line of alternative and natural energy products including, natural gas, solar, biofuels, wind, wave, tidal, and green technology products. The Company's balance sheet at Sept. 30, 2010, showed $3.00 million in total assets, $3.35 million in total liabilities, and a $353,406 stockholders' deficit. As reported by the TCR on Nov. 26, 2010, S.E.Clark & Company, P.C., in Tucson, Arizona, expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company has net losses for the period from inception (Aug. 13, 2004) to Dec. 31, 2009, of $14.8 million. Further, the Company has inadequate working capital to maintain or develop its operations, and is dependent upon funds from private investors and the support of certain stockholders. US AIRWAYS: Fitch Affirms Issuer Default Rating at 'CCC' -------------------------------------------------------- Fitch Ratings has affirmed these debt ratings of US Airways Group, Inc. (LCC): -- Issuer Default Rating (IDR) at 'CCC'; -- Senior Secured Term Loan due 2014 at 'B+/RR1'; -- Senior Unsecured Convertible Notes at 'C/RR6'. The Rating Outlook for US Airways is Stable. Ratings apply to $1.1 billion of term loan debt and $179 million of outstanding convertible notes. Ratings reflect the airline's high lease-adjusted leverage, relatively weak though improving liquidity position, and volatile cash flow generation in an industry that remains vulnerable to fuel price and demand shocks. The affirmation of LCC's ratings follows another period of significant turmoil in global energy markets that has driven jet fuel prices higher and introduced more risk into the airline's cash flow and liquidity outlook. After a year of solid improvement in operating performance during 2010, as air travel demand recovered and industry capacity grew slowly, LCC is facing a more challenging operating environment this year, with annual fuel costs forecasted to increase by more than $1 billion versus 2010. The key issue facing LCC as it seeks to repair its balance sheet is a more sustainable liquidity position that will allow it to withstand future revenue and fuel price shocks more effectively than it did during the 2008-09 downturn. Fitch remains focused on the carrier's unrestricted cash and investments balance, exceeding $2.1 billion or 16% of projected 2011 revenues, as the first step in a long-term effort to de-lever via consistently positive free cash flow (FCF) in an industry that has shown greater capacity discipline and pricing power in its more consolidated form. Factoring in the potential for increasing tightness in world energy markets and average jet fuel prices that could exceed $3.00 per gallon this year, Fitch expects LCC to remain in a position to generate positive FCF in 2011. This scenario depends greatly on the industry's ability to benefit from significantly higher fares and relatively robust air travel demand through the summer. Based on year-to-date revenue per available seat mile (RASM) results, LCC appears likely to deliver full-year unit revenue growth in the 5% to 10% range, a level that would support positive FCF and relatively stable year-end debt balances in a high fuel cost scenario. Cash commitments over upcoming years are manageable, with scheduled debt maturities of approximately $400 million this year and $455 million in 2012. The airline's secured term loan ($1.1 billion outstanding) does not mature until 2014. Relatively light capital spending requirements, assuming some combination of sale- leaseback financing and debt to fund 12 Airbus A321 deliveries this year, will also bolster FCF generation. Unlike 2008, when energy prices ran up quickly in the face of flagging air travel demand and a weak economy, LCC and the other large U.S. airlines have been successful in recovering much of the fuel cost pressure via fare hikes and modest capacity trimming in the second-half 2011 schedule. LCC's revenue performance has been generally solid through the first four months of 2011, with first quarter 2011 (1Q'11) RASM growing by 9% on modest capacity growth, stronger yields and high but stable load factors. Management expects this trend to continue through the summer, with seasonally strong demand and relatively good fare traction helping to boost RASM at a rate similar to that seen in the first quarter. Should crude prices fall and remain below $100 per barrel in the second half of the year, LCC and the entire industry could report solid gains in earnings and cash flow, supporting improvement in liquidity and modest de-levering. LCC has no fuel hedge protection in place, an approach that generally worked well through 2010 as the higher costs of call option premiums surpassed gains from hedging in a period of rising crude oil prices. During 1Q'11, however, the rapid rise in jet fuel costs eroded LCC's relative fuel cost advantage. Jet fuel accounted for about one third of total operating expenses in 1Q'11. Based on expected 2011 jet fuel consumption, a 10-cent change in the price of jet fuel drives approximately $140 million in annual consolidated operating costs. A downgrade to 'CC' or below is unlikely absent a more dramatic and sustained fuel price shock that would push unrestricted liquidity below $1.5 billion with accompanying tightness in credit markets. A positive action will not be considered until fuel prices stabilize and LCC's operating outlook supports consistent generation of positive FCF and an improvement in cash balances. VERTICAL COMPUTER: Reports $52,955 Net Income in March 31 Quarter ----------------------------------------------------------------- Vertical Computer Systems, Inc., filed its quarterly report on Form 10-Q, reporting net income of $52,955 on $1.6 million of revenues for the three months ended March 31, 2011, compared with net income of $4,660 on $1.4 million of revenues for the same period last year. The Company has outstanding Series A 4% convertible cumulative preferred stock that accrues dividends at a rate of 4% on a semi- annual basis. The Company also has outstanding Series C 4% convertible cumulative preferred stock that accrues dividends at a rate of 4% on a quarterly basis. The total dividends applicable to Series A and Series C preferred stock were $147,000 and $147,000 for the three months ended March 31, 2011, and 2010, respectively. The Company had a net loss attributed to common stockholders of $74,719 and a net loss of $138,232 for the three months ended March 31, 2011, and 2010, respectively. The Company's balance sheet at March 31, 2011, showed $1.4 million in total assets, $12.8 million in total liabilities, $9.9 million in Series A, Series B, Series C, and Series D convertible cumulative preferred stock, and a stockholders' deficit of $21.3 million. At March 31, 2011, the Company had negative working capital of approximately $12.0 million and has defaulted on several of its debt obligations. MaloneBailey, LLP, in Houston, expressed substantial doubt about Vertical Computer Systems' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered losses from operations and has a working capital deficiency. A complete text of the Form 10-Q is available for free at: http://is.gd/QuVn12 Richardson, Tex.-based Vertical Computer Systems, Inc., is a multinational provider of Internet core technologies, application software, and software services through its distribution network with operations or sales in the United States, Canada and Brazil. VIASPACE INC: Incurs $767,000 Comprehensive Loss in March Quarter ----------------------------------------------------------------- Viaspace Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a comprehensive loss of $767,000 on $582,000 of total revenues for the three months ended March 31, 2011, compared with a comprehensive loss of $630,000 on $927,000 of total revenues for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $17.51 million in total assets, $7.32 million in total liabilities and $10.19 million total equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/TjPjRR About VIASPACE Inc. Irvine, Calif.-based VIASPACE Inc. (OTC Bulletin Board: VSPC - News) -- http://www.VIASPACE.com/-- is a clean energy company providing products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil and high- pollutant energy sources. Through its majority-owned subsidiary VIASPACE Green Energy Inc., the Company grows Giant King Grass as a low carbon fuel for electricity generating power plants and as a feedstock for cellulosic biofuels. VIEW SYSTEMS: Posts $106,000 Net Loss in First Quarter ------------------------------------------------------ View Systems, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $106,047 on $117,024 of revenues for the three months ended March 31, 2011, compared with a net loss of $458,305 on $263,991 of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed $1.16 million in total assets, $1.43 million in total liabilities, and a stockholders' deficit of $266,825 As reported in the TCR on March 15, 2011, Robert L. White & Associates, Inc., in Cincinnati, Ohio, expressed substantial doubt about View Systems' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company had a net loss of $513,353 for the year ended Dec. 31, 2010, and has an accumulated deficit of $22,837,787 at Dec. 31, 2010. A full-text copy of the Form 10-Q is available for free at: http://is.gd/uRS0x3 Baltimore, Md.-based View Systems, Inc., develops, produces and markets computer software and hardware systems for security and surveillance applications. VYTERIS, INC: Delays Filing of Quarterly Report on Form 10-Q ------------------------------------------------------------ Vyteris, Inc. informed the U.S. Securities and Exchange Commission that it will be late in filing its quarterly report on Form 10-Q for the period ended March 31, 2011. The Company said it is in the process of working through final review of subsequent events disclosure with its auditors. About Vyteris, Inc. Based in Fair Lawn, New Jersey, Vyteris, Inc. (formerly Vyteris Holdings (Nevada), Inc., has developed and produced the first FDA- approved electronically controlled transdermal drug delivery system that transports drugs through the skin comfortably, without needles. This platform technology can be used to administer a wide variety of therapeutics either directly into the skin or into the bloodstream. The Company holds approximately 50 U.S. and 70 foreign patents relating to the delivery of drugs across the skin using an electronically controlled "smart patch" device with electric current. The Company reported a net loss of $10.54 million on $117,792 of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $33.94 million on $4.56 million of total revenues during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $3.77 million in total assets, $18.89 million in total liabilities and a $15.12 million total stockholders' deficit. As reported by the TCR on April 21, 2011, Amper, Politziner & Mattia, LLP, in Edison, New Jersey, expressed substantial doubt about the Company's ability to continue as going concern, following the 2010 financial results. The independent auditors noted that the Company has incurred recurring losses and is dependent upon obtaining sufficient additional financing to fund operations and has not been able to meet all of its obligations as they become due. WACHOVIA BANK: DBRS Cuts Rating on Class O Notes to 'CC (sf)' ------------------------------------------------------------- DBRS has downgraded six classes in the Wachovia Bank Commercial Mortgage Trust, Series 2004-C15 transaction as follows: --Class H to BB (sf) from BBB (low) (sf) --Class J to B (sf) from BB (low) (sf) --Class K to B (low) (sf) from B (high) (sf) --Class L to CCC (sf) from B (sf) --Class M to CCC (sf) from B (low) (sf) --Class O to CC (sf) from CCC (sf) In addition, DBRS has confirmed Classes A-1 through G and Class N, including the notional Class X-C and Class X-P. DBRS has also confirmed the ratings of the rake bonds associated with the non- pooled 175 West Jackson B-note and the rake bonds associated with the non-pooled 180 Maiden Lane B-note. All trends are stable. The shadow ratings of 175 West Jackson (9.8% of the current pool balance) and Coastal Grand Mall (7.7% of the current pool balance) have also been confirmed at BBB (sf) and A (low) (sf), respectively. The downgrades are a result of the estimated losses associated with the loans in special servicing, which are expected to affect the DBRS rated Class O. Further, the estimated losses incurred by the trust, with respect to the specially serviced loans, will erode the credit enhancement to a number of the lower rated classes, further prompting the downgrades. The transaction has seasoned for almost seven years. In addition to the seasoning, the transaction benefits from defeasance collateral, representing 4.25% of the current pool balance. The total collateral reduction as of the April 2011 remittance report is 14.3% and the weighted-average DSCR for the 82 loans remaining in the pool is reported at 1.60x, as compared with 1.56x at issuance. The largest loan in special servicing is Prospectus ID#6, IRS Building - Fresno (4.12% of the current pool balance), which is secured by a 180,000 sf office property located in Fresno, California and fully leased to the IRS through November 2018. This loan transferred to the special servicer in January 2010 due to the borrower bankruptcy, however, the borrower has emerged from bankruptcy and all past due principal and interest from that time has been brought current. The loan remains in special servicing because the borrower failed to post a $4 million letter of credit, as required by the loan documents, when the loan was not paid in full at the anticipated repayment date (ARD) in November 2009. The loan remains current and following the ARD, entered a hyper- amortization period (through November 2034). The current loan per square foot is approximately $250. Although DBRS considers this leverage point to be high for this market, the loan benefits from the long term lease of the IRS through November 2018. Prospectus ID#20, Penn's Purchase II (1.21% of the current pool balance) is secured by a factory outlet center in Lahaksa, Pennsylvania, approximately one hour north of Philadelphia. This loan transferred to the special servicer in 2008 for monetary default and the property has been in receivership since August 2009. Although the performance has declined since issuance, it is a positive sign that the property has attracted one new tenant and renewed the leases of two others in the past 12 months, with occupancy in the mid-70% range, as of March 2011. Based on the July 2010 appraised value of $12.2 million, DBRS estimates that losses associated with this loan would indicate a loss severity in excess of 30%. Prospectus ID#24, Omni Hotel - Newport News, Virginia (1.08% of the current pool balance) is secured by a full-service, 182-key hotel approximately 15 miles north of Norfolk, Virginia. The loan was transferred to the special servicer at the end of 2010 when the borrower indicated that he would no longer be able to fund the debt service payments. The property had struggled with occupancy issues in the years leading up to the transfer, and DBRS formerly had this loan on the HotList for that reason. The loan is now more than 90-days delinquent and although there is no updated appraisal, by looking at the June 2010 net cash flow against a conservative cap rate, DBRS estimates that the loss severity associated with this loan could approach 40%. Prospectus ID#42, Suntree Apartments (0.62% of the current pool balance) is secured by a 216-unit multifamily property located in Peoria, Arizona and transferred to the special servicer in 2009 because of imminent maturity default and is currently in receivership. Based on the November 2010 appraised value of $7.1 million, DBRS estimates that the loss severity associated with this loan will be in excess of 25%. The rest of the transaction continues to exhibit stable performance. The top ten loans represent more than 45% of the current pool balance and all of those loans remain current, as of the April 2011 remittance report. In addition, based mostly on 2010 financials, the top ten loans reported a weighted-average DSCR of 1.25x. As part of its review, DBRS analyzed the top ten loans, the servicer's watchlist and the four specially serviced loans, which comprises approximately 71% of the current pool balance. WASHINGTON MUTUAL: Hedge Funds, Shareholders Strike Deal -------------------------------------------------------- Washington Mutual, Inc. has reached a tentative settlement agreement with the Official Committee of Equity Security Interest Holders. Under the terms of the tentative agreement, which remains subject to the parties executing definitive documentation memorializing the terms thereof, the parties have agreed to: * A litigation trust will be established to pursue claims and causes of action that are property of the Debtors against certain non-released third parties. This litigation trust will be funded by the Company with an initial $5 million cash contribution and additional contributions, under certain circumstances, in an amount not to exceed $25 million. The previously announced liquidating trust contemplated by the Company's pending plan of reorganization will be entitled to receive all proceeds realized by the litigation trust until repaid in full (other than with respect to the initial $5 million contribution); thereafter, the beneficiaries of the litigation trust will be the holders of allowed, subordinated claims, as well as preferred and common equity holders. * Common equity in the reorganized Debtor will be distributed to holders of allowed, subordinated claims and the Company's preferred and common equity holders. In addition, certain holders of allowed claims, other than those holding allowed claims who would have previously received common equity in the reorganized Debtor, have agreed to receive a debt instrument and a preferred equity instrument having a combined, aggregate net present value of approximately $160 million. * Certain significant creditors will commit to provide a senior secured credit facility for the reorganized Debtor in an amount not to exceed $100 million. * Upon filing of a plan consistent with these additional terms, the Equity Committee will stay its appeal of the Bankruptcy Court's order, dated January 7, 2011, regarding plan confirmation. Additionally, upon confirmation of such plan, the Equity Committee will withdraw, with prejudice, such appeal. WMI said in a statement, "WMI is pleased to have reached this tentative settlement agreement, which is an important step toward completing the Chapter 11 process. WMI looks forward to distributing over $7 billion to the estate's parties-in-interest upon confirmation and approval by the Bankruptcy Court." If the parties are unable to reach a definitive agreement that incorporates the tentative settlement announced, the Debtors intend to proceed with the hearing scheduled to begin on June 29, 2011 to seek confirmation of the plan of reorganization currently pending before the Bankruptcy Court. Hedge Funds Help Broker Deal Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review, reports Mr. Rosen said the settlement was brokered by four hedge funds Appaloosa Management LP, Centerbridge Partners LP, Owl Creek Asset Management LP and Aurelius Capital Management LP, which are facing allegations they engaged in insider trading in the case. According to DBR, Mr. Rosen said the tentative deal, which was reached Monday evening, gives shareholders the benefit of a $30 million litigation trust and equity in the reorganized Washington Mutual, a company that may be positioned to take advantage of $5 billion worth of tax breaks. DBR also reports that Mr. Rosen said the four hedge funds will offer $100 million worth of financing to the reorganized Washington Mutual. The Company will run a fading insurance operation but could buy other businesses to take advantage of the tax breaks. The breaks grow out of the massive losses rung up by WaMu, a thrift that gorged on subprime home loans before the housing market collapsed. Mr. Rosen also said creditors who were promised value in the reorganized Washington Mutual will still get it in the form of another type of security. Mr. Rosen said the Company wants to be out of Chapter 11 by mid- August. DBR also reports that Aurelius attorney Kenneth Eckstein, Esq., at Kramer Levin Naftalis & Frankel LLP, said Tuesday that Aurelius has not yet signed on to the deal but "will endeavor to try to achieve a successful resolution" of remaining reservations about terms of the shareholder settlement. DRB further relates Fred Hodara, Esq., at Akin Gump Strauss Hauer & Feld said Tuesday the case delay cost could be closer to $40 million per month. He represents the official committee of unsecured creditors, which joined in the settlement talks as they neared success. 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. Washington Mutual Bank was taken over on Sept. 25, 2008, 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. 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 million to $1 billion with zero debts. WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal & Manges LLP in New York City; Mark D. Collins, Esq., at Richards, Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP. Fred S. Hodera, Esq., at Akin Gump Strauss Hauer & Fled LLP in New York City and David B. Stratton, Esq., at Pepper Hamilton LLP in Wilmington, Del., represent the Official Committee of Unseucred Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the Equity Committee. Stacey R. Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent JPMorgan Chase, which acquired WaMu's assets prior to the Petition Date. On Jan. 7, 2011, the Bankruptcy Court entered a 107-page opinion determining that the global settlement agreement, among certain parties including WMI, the Federal Deposit Insurance Corporation and JPMorgan Chase Bank, N.A., upon which the Plan is premised, and the transactions contemplated therein, are fair, reasonable, and in the best interests of WMI. Additionally, the Opinion and related order denied confirmation, but suggested certain modifications to the Company's Sixth Amended Joint Plan of Affiliated Debtors that, if made, would facilitate confirmation. Washington Mutual has filed with the U.S. Bankruptcy Court for the District of Delaware a Modified Sixth Amended Joint Plan and a related Supplemental Disclosure Statement. The Company believes that the Modified Plan has addressed the Bankruptcy Court's concerns and looks forward to returning to the Bankruptcy Court to seek confirmation of the Modified Plan. The hearing for approval of the Disclosure Statement is set for March 21. Washington Mutual Inc. bankruptcy attorney Brian Rosen, Esq., at Weil, Gotshal & Manges, told the Bankruptcy Court on Tuesday the Debtor has reached a deal with shareholders over their protests against the Debtor's $7 billion Chapter 11 exit plan. WYKA L.L.C.: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Wyka L.L.C. dba Edison Graphics Edison Press 1515 S. Mount Prospect Road Des Plaines, IL 60018 Bankruptcy Case No.: 11-21374 Chapter 11 Petition Date: May 19, 2011 Court: U.S. Bankruptcy Court Northern District of Illinois (Chicago) Judge: Jacqueline P. Cox Debtor's Counsel: Richard N. Golding, Esq. THE GOLDING LAW OFFICES, P.C. The Boyce Building 500 North Dearborn Street, Second Floor Chicago, IL 60654 Tel: (312) 832-7885 Fax: (312) 755-5720 E-mail: rgolding@goldinglaw.net Scheduled Assets: $1,076,911 Scheduled Debts: $3,833,714 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/ilnb11-21374.pdf The petition was signed by Larae J. Breitenstein, president. YRC WORLDWIDE: Executes $400MM ABL Facility with Morgan Stanley --------------------------------------------------------------- YRC Worldwide Inc. has entered into definitive agreements with key stakeholders providing for their support of a comprehensive restructuring plan. The company reported that more than 95 percent of the senior secured lenders have now approved the restructuring documentation, as have 100 percent of the company's multi-employer pension funds, along with the International Brotherhood of Teamsters, and 100 percent of the lenders under the company's asset-backed securitization facility, in each case subject to the terms and conditions contained in the agreements. In connection with the Restructuring, the Company executed a commitment letter with Morgan Stanley Senior Funding, Inc., relating to an up to $400.0 million asset-based revolving credit facility, the proceeds of which will be used to refinance the Company's current asset-backed securitization facility, to provide working capital and for other general corporate purposes. A full- text copy of the Commitment Letter is available for free at: http://is.gd/uD5W2e Pursuant to the Commitment Letter, Morgan Stanley committed to provide $50.0 million of the principal amount of the ABL Facility and agreed to use best efforts to syndicate the remainder of the ABL Facility, in each case subject to satisfaction of certain conditions precedent. The Company is working with Morgan Stanley, as lead arranger, to obtain commitments for the remainder of the ABL Facility. The ABL Facility is expected to be provided on these terms: * YRC Inc., USF Holland Inc. and USF Reddaway Inc., each a subsidiary of the Company, will be the borrowers under the ABL Facility and the Company will provide an unsecured guaranty of the ABL Facility; * the ABL Facility will include a $165.0 million letter of credit sub-facility; * amounts available under the ABL Facility are subject to a borrowing base equal to 85% of eligible accounts receivable of the borrowers less reasonable reserves, as established by Morgan Stanley, as collateral agent, in its permitted discretion; * the ABL Facility will mature three years after the closing date; * interest on outstanding borrowings is payable at a rate per annum equal to the LIBOR Rate or the Base Rate, at the Borrower's option, plus an applicable margin, which varies (from 2.00% to 2.75% for Base Rate loans and 3.00% to 3.75% for LIBOR Rate loans) based on the monthly average excess availability; interest is payable in arrears at the end of every month with respect to Base Rate loans and on the last day of selected interest periods for LIBOR Rate loans (unless such selected interest periods are greater than three months in duration, in which case interest shall be payable every three months); * letters of credit issued under the ABL Facility will be subject to a 0.25% fronting fee and a fee ranging from 3.00% to 3.75% per annum, based on monthly average excess availability, times the average daily maximum aggregate amount available to be drawn under all letters of credit; * during the continuance of an event of default, at the election of the Administrative Agent or at the direction of the required lenders, the interest rate on outstanding obligations and letter of credit fees will be increased by 2.00% per annum above the rate otherwise applicable; * a per annum commitment fee (ranging from 0.625% to 0.375% per annum based on monthly average excess availability), payable on the average daily unused portion of the available amounts under the ABL Facility is payable monthly in arrears; * the borrowers may repay all or part of the ABL Facility without premium or penalty; * the ABL Facility will be secured by valid and perfected first priority security interests in and liens (subject to permitted liens) upon all accounts receivable (and the related rights) of the borrowers, together with deposit accounts into which the proceeds from such accounts receivable are remitted; the deposit accounts will be subject to springing control agreements; in the event excess availability falls below $50.0 million for four consecutive days or upon the occurrence of any event of default to be mutually agreed, all proceeds from the controlled deposit accounts will be swept to the collateral agent and applied to the obligations under the ABL Revolver (without a corresponding commitment reduction) or to provide cash collateral for the letters of credit until such time as excess availability exceeds $50.0 million for 30 consecutive days; * certain trucks, other vehicles, rolling stock, terminals, depots or other storage facilities, in each case, whether leased or owned, will be subject to a standstill period in favor of the collateral agent, the administrative agent and the other secured parties under the ABL Facility for a period of 10 days with respect to the exercise of rights and remedies by the secured parties with respect to those assets under the Company's other material debt agreements; * certain customary affirmative covenants (subject to certain exceptions, qualifications and materiality thresholds); * certain customary negative covenants (subject to certain exceptions, qualifications and materiality thresholds), including, without limitation, limitations with respect to voluntary prepayments and modifications of subordinated and certain other material debt instruments, provided that voluntary prepayments on such indebtedness will be permitted to the extent that pro forma excess availability after giving effect to any such prepayment is at least $150.0 million and certain other conditions must be satisfied to be mutually agreed; * a $35.0 million minimum excess availability covenant that the borrowers must maintain at all times; * subject to certain exceptions and materiality qualifiers and grace periods, customary events of default; and * the ability to increase the revolving line of credit commitments by up to $100.0 million conditioned on, among other things, obtaining such additional commitments. The obligation of Morgan Stanley to honor its commitment under the Commitment Letter is subject to satisfaction (or waiver) of a number of conditions, including, without limitation: * execution and delivery of definitive loan documentation reasonably acceptable to Morgan Stanley and the Company; * Morgan Stanley receiving commitments from the lenders (other than Morgan Stanley) in an aggregate amount of not less than $250.0 million, unless otherwise agreed in writing by Morgan Stanley; * the absence of a material adverse effect on the business, financial condition, operations, performance or properties of the Company and its subsidiaries, taken as a whole, after giving effect to the Restructuring; * a take-down collateral audit with results reasonably satisfactory to Morgan Stanley; * consummation of the Restructuring, including, without limitation, receipt by the Company of at least $100.0 million of proceeds in cash from the issuance of the new money convertible secured notes, which proceeds will be used to repay the ABL Facility; * Morgan Stanley receiving a customary solvency certificate, customary insurance deliverables, financial statement deliverables (which, to the extent not already delivered, must be satisfactory to Morgan Stanley), lien search deliverables and fees and expenses payable at closing; * none of the loan parties will have received any notice from any federal, state or local governmental authority asserting any lien in connection with the underfunding of any multiemployer pension plan; * the Consolidated EBITDA (as such term is defined in Annex I to the Commitment Letter) of the Company and its subsidiaries for the twelve month period ending as of May 31, 2011 shall be at least $125.0 million; * if the Closing Date shall occur after the 10th business day of July 2011, Consolidated EBITDA of the Company and its subsidiaries for the twelve month period ending (i) as of May 31, 2011 and (ii) as of June 30, 2011, utilizing preliminary results for June 2011, shall also be at least $125.0 million; * on the closing date (after giving effect to the Restructuring) no more than (a) $50.0 million (plus existing letters of credit in an amount to be agreed upon), plus (b) other amounts as may be mutually agreed, shall be drawn under the ABL Facility; * excess availability under the ABL Facility, after giving effect to the loans to be made and any letters of credit to be issued under the ABL Facility on the closing date and all other transactions in connection with the Restructuring, and without any material deterioration in accounts payable on a vendor basis based on customary historical levels of vendor days payable outstanding, is at least $200.0 million; * receipt of projections demonstrating that excess availability under the ABL Facility during the twelve month period following the closing date will not at any time be less than $130.0 million; * the borrowers shall have used, if requested by Morgan Stanley, commercially reasonable efforts to obtain a corporate credit and family ratings of the borrowers after giving effect to the Restructuring and public credit ratings for the ABL Facility; * there will be no competing issues of debt securities or commercial bank or other debt facilities, mezzanine financing, securitizations (other than ordinary course indebtedness and the financings in connection with the Restructuring) by the Company or any of its subsidiaries being offered, placed or arranged by a financial institution retained by the Company or any of its subsidiaries, which would have a materially adverse impact on a successful syndication of the ABL Facility, without the prior written consent of Morgan Stanley; and * the completeness and accuracy in all material respects, when taken as a whole and as supplemented and updated, of the information delivered by the Company and its subsidiaries to Morgan Stanley (other than (a) projections, estimates, budgets and other forward-looking information, which projections, estimates, budgets and other forward looking information shall be prepared in good faith and based upon assumptions believed by the Company to be reasonable at the time of preparation and (b) general economic and industry information). The commitment and other obligations of Morgan Stanley will automatically terminate unless Morgan Stanley, in its discretion, agrees to an extension in writing, upon the earliest to occur of (i) execution and delivery of definitive loan documentation and the consummation of the Restructuring; (ii) July 22, 2011, if the definitive loan documentation shall not have been executed and delivered; (iii) the date of abandonment of the Restructuring; and (iv) a failure of a condition set above that cannot be satisfied. About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that through wholly owned operating subsidiaries offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. KPMG LLP's audit reports on the consolidated financial statements of YRC Worldwide Inc. and subsidiaries for 2009 and 2010 each contain an explanatory paragraph that states that the Company has experienced significant declines in operations, cash flows and liquidity and these conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at March 31, 2011, showed $2.62 billion in total assets, $2.91 billion in total liabilities, and a $287.64 million total shareholders' deficit. * * * In January 2011, Standard & Poor's Ratings Services placed its 'CCC-' corporate credit rating on YRC Worldwide Inc. (YRCW) on CreditWatch developing. At the same time, S&P is withdrawing the existing issue level ratings on Yellow Corp.'s senior unsecured debt, given the negligible amounts outstanding. "The ratings on Overland Park, Kan.-based YRCW reflect its near- term liquidity challenges, meaningful off-balance-sheet contingent obligations related to multiemployer pension plans, as well as its participation in the competitive, capital-intensive, and cyclical trucking industry," said Standard & Poor's credit analyst Anita Ogbara. "YRCW's substantial (albeit deteriorating) market position in the less-than-truckload (LTL) sector, which has high barriers to entry, partially offsets these characteristics. We characterize YRCW's business profile as weak, financial profile as highly leveraged, and liquidity as weak." As reported by the TCR on March 22, 2011, Moody's Investors Service has lowered the Corporate Family Rating of YRC Worldwide, Inc to Ca from Caa3. The rating outlook is negative. The rating has been downgraded in response to the company's recent disclosure of a "Milestone Failure" relating to requirements under its amended credit agreement. Moody's believes that this development increases the risk in YRC's efforts to conclude critical refinancing that is instrumental to its ability to avoid bankruptcy. As reported by the TCR on May 5, 2011, Fitch Ratings downgraded YRC's Issuer default rating to 'C' from 'CC'; Secured bank credit facility rating downgraded to 'CCC/RR2' from 'B-/RR2'; and Senior unsecured rating affirmed at 'C/RR6'. In addition, Fitch has removed YRCW's ratings from Rating Watch Negative. Fitch said that although it appears increasingly likely that the company will successfully complete the restructuring, until the transactions constituting the restructuring close, which is not anticipated until late July 2011, there exists a potential for the transaction to fail, in which case Fitch expects the company would be forced to file for Chapter 11 bankruptcy protection. YRC WORLDWIDE: Proposes Fin. Restructuring to Improve Liquidity --------------------------------------------------------------- YRC Worldwide Inc. filed with the U.S. Securities and Exchange Commission a Form S-1 registration statement relating to the offer to exchange Credit Agreement Claims for 3,717,948 Shares of Series B Convertible Preferred Stock, $140.0 million in aggregate principal amount of 10% Series A Convertible Senior Secured Notes due 2015 and rights to purchase $100.0 million in aggregate principal amount of 10% Series B Convertible Senior Secured Notes due 2015 and issuance of 1,282,051 Shares of Series B Convertible Preferred Stock to an Employee Stock Trust or Tax Qualified Plan. The Company is proposing a financial restructuring that is intended to improve its balance sheet and the liquidity available to the Company to operate its business. The Company has substantial debt and, as a result, significant debt service obligations. The Company has been deferring payment of interest and fees to its lenders under its existing credit agreement since October 2009, interest and facility fees to purchasers of the Company's accounts receivable pursuant to the Company's asset- backed securitization facility, interest and principal to certain multi-employer pension funds under the Company's contribution deferral agreement, and the Company has been receiving the benefit of wage reductions and other concessions under modified national labor and other agreements with the Company's employees. If the Company does not complete the financial restructuring, it is very unlikely the Company will be able to generate cash sufficient to pay the principal of, interest on and other amounts due in respect of the Company's indebtedness and other obligations when due and the Company would likely need to seek protection under the U.S. Bankruptcy Code. If the Company commences such a bankruptcy filing, the Company expects that holders of credit agreement claims may receive consideration that is substantially less than what is being offered under the restructuring and may receive little or no consideration for their credit agreement claims. The Company is proposing to effect the financial restructuring through the restructuring plan. The Company refers to claims under the Company's existing credit agreement (i) with respect to outstanding letters of credit issued under the revolving credit facility, (ii) with respect to the outstanding principal amount of term loans, (iii) with respect to the outstanding principal amount of loans issued under the revolving credit facility and (iv) with respect to deferred interest and fees due and outstanding, collectively, as "credit agreement claims." The restructuring plan consists of these related transactions (among others): * the refinancing of credit agreement claims, pursuant to which the Company will (i) exchange, for credit agreement claims, a combination of (A) approximately 3,717,948 shares of the Company's new Series B Convertible Preferred Stock, par value $1.00, which new preferred stock will, immediately following consummation of the Charter Amendment Merger, automatically convert into shares of common stock, par value $0.01 per share, of YRC Worldwide Inc. equal to approximately 72.5% of the common stock outstanding immediately following the consummation of the Charter Amendment Merger, subject to dilution as set forth herein, to be allocated among all holders of credit agreement claims on a pro rata basis, and (B) $140.0 million in aggregate principal amount of the Company's new 10% Series A Convertible Senior Secured Notes due 2015, to be allocated among all holders of all non- LC credit agreement claims on a pro rata basis, (ii) amend and restate the Company's existing credit agreement to provide for, among other things, (x) the conversion of credit agreement claims into a term loan in the amount of the aggregate principal amount of the non-LC credit agreement claims less $305.0 million as of the closing of the exchange offer, to be initially held by all holders of non-LC credit agreement claims on a pro rata basis and (y) an amended letter of credit facility for all LC claims outstanding as of the closing of the exchange offer, and (iii) issue subscription rights to all eligible holders of credit agreement claims to purchase for cash on a pro rata basis (subject to oversubscription rights) up to $100.0 million in aggregate principal amount of the Company's new 10% Series B Convertible Senior Secured Notes due 2015; * the ABL financing, pursuant to which the Company will enter into an agreement for a new asset-based loan facility with initial aggregate commitments of not less than $350.0 million and minimum excess availability on the closing of the exchange offer of not less than $80.0 million (net of refinancing of the ABS facility and any reserves), the proceeds of which will be used, in part, to refinance our current asset-backed securitization facility; * an amendment and restatement of the contribution deferral agreement the Company has with certain multi-employer pension funds; * the issuance of approximately 1,282,051 shares of the Company's new preferred stock to (A) a new International Brotherhood of Teamsters employee stock trust or (B) a deferred tax qualified plan, and entry into a new stock plan with respect to such stock for IBT employees; * the amendment of the note securing the Company's deferred multi-employer pension contributions to (i) extend the maturity until March 31, 2015, (ii) defer any accrued interest and fees until maturity, (iii) provide for contract rate cash interest payments and (iv) eliminate any mandatory amortization payments; and * the restructuring of the Company's board of directors to consist of six members initially nominated by the administrative agent under the Company's existing credit agreement and the steering committee of an informal group of unaffiliated Lenders and Participants, two members nominated by the IBT and one member that will be the chief executive officer-director. A new chief executive officer and chief financial officer will begin employment at the Company following the close of the exchange offer. A single share of the Company's new Series A Voting Preferred Stock, par value $1.00 per share, will be issued to the IBT to confer board representation. In connection with and as an integral part of the exchange offer for credit agreement claims, holders of credit agreement claims who participate in the exchange offer will receive as part of their exchange consideration the right to subscribe to purchase an aggregate of $100.0 million in principal amount of the Company's Series B Notes at an offering price of 100.0%. Holders of credit agreement claims may elect to subscribe to purchase up to the amount equal to their pro rata portion of the principal amount of credit agreement claims. In addition, such electing holders may subscribe to purchase additional Series B Notes in excess of their pro rata portion to the extent that other holders of credit agreement claims do not subscribe to purchase their respective pro rata portions. The amount of Series B Notes that an electing holder subscribes to purchase is its "subscription amount." Each electing holder's subscription amount will be adjusted pro rata based on the amount of its credit agreement claims to the extent of any oversubscription for the Series B Notes, and the Company will refund the amount of any oversubscription to each electing holder after giving effect to any such adjustments. The closing of the exchange offer is conditioned, among other things, on the satisfaction or waiver of a minimum exchange condition, which requires that 100% of the credit agreement claims are validly submitted for exchange and not withdrawn in the exchange offer, the purchase and sale to holders of credit agreement claims of $100.0 million in aggregate principal amount of the Series B Notes in connection with the subscription rights, and other significant conditions. Subject to applicable law and the terms of the lender support agreement and the Teamsters National Freight Industry Negotiating Committee support agreement, the Company reserves the right to amend or modify the exchange offer at any time if the Company's board of directors determines doing so would be in the Company's best interests. On April 29, 2011, the Company entered into a support agreement with certain lenders holding credit agreement claims pursuant to which such participating lenders have agreed, among other things, to support the restructuring by submitting their credit agreement claims for exchange in the exchange offer, subject to certain conditions set forth in the lender support agreement and provided that no "support termination event" occurs. The participating lenders hold approximately 96% of the principal amount of outstanding credit agreement claims. Also on April 29, 2011, the Company entered into a support agreement with TNFINC pursuant to which TNFINC has agreed, among other things, to the terms of the restructuring and to support the restructuring. The Company's common stock is listed on the NASDAQ Global Select Market under the symbol "YRCW." There is no market for the Company's new preferred stock, and the Company does not intend to list the new preferred stock, the Series A Notes or the Series B Notes on NASDAQ or any national or regional securities exchange. A full-text copy of the Form S-1 registration statement is available for free at http://is.gd/P9UrUI About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that through wholly owned operating subsidiaries offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. KPMG LLP's audit reports on the consolidated financial statements of YRC Worldwide Inc. and subsidiaries for 2009 and 2010 each contain an explanatory paragraph that states that the Company has experienced significant declines in operations, cash flows and liquidity and these conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at March 31, 2011, showed $2.62 billion in total assets, $2.91 billion in total liabilities, and a $287.64 million total shareholders' deficit. * * * In January 2011, Standard & Poor's Ratings Services placed its 'CCC-' corporate credit rating on YRC Worldwide Inc. (YRCW) on CreditWatch developing. At the same time, S&P is withdrawing the existing issue level ratings on Yellow Corp.'s senior unsecured debt, given the negligible amounts outstanding. "The ratings on Overland Park, Kan.-based YRCW reflect its near- term liquidity challenges, meaningful off-balance-sheet contingent obligations related to multiemployer pension plans, as well as its participation in the competitive, capital-intensive, and cyclical trucking industry," said Standard & Poor's credit analyst Anita Ogbara. "YRCW's substantial (albeit deteriorating) market position in the less-than-truckload (LTL) sector, which has high barriers to entry, partially offsets these characteristics. We characterize YRCW's business profile as weak, financial profile as highly leveraged, and liquidity as weak." As reported by the TCR on March 22, 2011, Moody's Investors Service has lowered the Corporate Family Rating of YRC Worldwide, Inc to Ca from Caa3. The rating outlook is negative. The rating has been downgraded in response to the company's recent disclosure of a "Milestone Failure" relating to requirements under its amended credit agreement. Moody's believes that this development increases the risk in YRC's efforts to conclude critical refinancing that is instrumental to its ability to avoid bankruptcy. As reported by the TCR on May 5, 2011, Fitch Ratings downgraded YRC's Issuer default rating to 'C' from 'CC'; Secured bank credit facility rating downgraded to 'CCC/RR2' from 'B-/RR2'; and Senior unsecured rating affirmed at 'C/RR6'. In addition, Fitch has removed YRCW's ratings from Rating Watch Negative. Fitch said that although it appears increasingly likely that the company will successfully complete the restructuring, until the transactions constituting the restructuring close, which is not anticipated until late July 2011, there exists a potential for the transaction to fail, in which case Fitch expects the company would be forced to file for Chapter 11 bankruptcy protection. YRC WORLDWIDE: Has Deal With Creditors to Provide Equity Share -------------------------------------------------------------- The City Wire reports that, in early March, YRC reached an agreement with its creditors and the International Brotherhood of Teamsters that essentially provide the lenders with equity share and convertible debt provisions that place regular shareholders at the back of the line in the event of a bankruptcy. Shares of YRC have fallen from a post Oct. 1, 2010 stock split price of $5.39 to below $1. YRC officials said that the stock likely will be delisted when it follows through with the equity exchange offer as part of its restructuring deal. About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that through wholly owned operating subsidiaries offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. KPMG LLP's audit reports on the consolidated financial statements of YRC Worldwide Inc. and subsidiaries for 2009 and 2010 each contain an explanatory paragraph that states that the Company has experienced significant declines in operations, cash flows and liquidity and these conditions raise substantial doubt about the Company's ability to continue as a going concern. * * * In January 2011, Standard & Poor's Ratings Services placed its 'CCC-' corporate credit rating on YRC Worldwide Inc. (YRCW) on CreditWatch developing. At the same time, S&P is withdrawing the existing issue level ratings on Yellow Corp.'s senior unsecured debt, given the negligible amounts outstanding. "The ratings on Overland Park, Kan.-based YRCW reflect its near- term liquidity challenges, meaningful off-balance-sheet contingent obligations related to multiemployer pension plans, as well as its participation in the competitive, capital-intensive, and cyclical trucking industry," said Standard & Poor's credit analyst Anita Ogbara. "YRCW's substantial (albeit deteriorating) market position in the less-than-truckload (LTL) sector, which has high barriers to entry, partially offsets these characteristics. We characterize YRCW's business profile as weak, financial profile as highly leveraged, and liquidity as weak." As reported by the TCR on March 22, 2011, Moody's Investors Service has lowered the Corporate Family Rating of YRC Worldwide, Inc to Ca from Caa3. The rating outlook is negative. The rating has been downgraded in response to the company's recent disclosure of a "Milestone Failure" relating to requirements under its amended credit agreement. Moody's believes that this development increases the risk in YRC's efforts to conclude critical refinancing that is instrumental to its ability to avoid bankruptcy. As reported by the TCR on May 5, 2011, Fitch Ratings downgraded YRC's Issuer default rating to 'C' from 'CC'; Secured bank credit facility rating downgraded to 'CCC/RR2' from 'B-/RR2'; and Senior unsecured rating affirmed at 'C/RR6'. In addition, Fitch has removed YRCW's ratings from Rating Watch Negative. Fitch said that although it appears increasingly likely that the company will successfully complete the restructuring, until the transactions constituting the restructuring close, which is not anticipated until late July 2011, there exists a potential for the transaction to fail, in which case Fitch expects the company would be forced to file for Chapter 11 bankruptcy protection. * ABI Poll: Debt Buyers Expect Same Recovery as Original Claimants ------------------------------------------------------------------ An overwhelming majority of respondents -- 74% -- in a recent ABI Quick Poll believe that a party who bought claims for pennies on the dollar should have the same chance at potential recoveries in bankruptcy as the original claimants. 63% "strongly disagreed" and 11% "disagreed somewhat" that a party who bought claims for pennies on the dollar should receive less in bankruptcy than the original claimants would have gotten. Though it is a speculative activity, parties purchasing bankruptcy claims have the potential to recover more than their initial investment as a company is wound down. Creditors also have the ability to cash out their claims quickly at a set price. Purchasing and trading bankruptcy claims in large corporate bankruptcies continues to grow. For example, SecondMarket Holdings Inc. reported that bankruptcy claims against Lehman Brothers Holdings Inc. saw 380 claims traded in April for a combined face value of $1.8 billion. Nearly $42 billion of Lehman claims have traded since the firm filed for chapter 11 protection, according to SecondMarket. 21% of respondents thought that a party who bought claims for pennies on the dollar should receive less in bankruptcy than the original claimants would have gotten. 2% did not know or had no opinion on the poll question. ABI's Quick Poll is posted on ABI's home page, http://www.abiworld.org/ ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- June 6, 2011 AMERICAN BANKRUPTCY INSTITUTE Canadian-American Cross-Border Insolvency Symposium Fairmont Royal York, Toronto, Ont. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* 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. Jhonas Dampog, 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 2011. 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 ***