/raid1/www/Hosts/bankrupt/TCR_Public/110829.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, August 29, 2011, Vol. 15, No. 239
Headlines
12 MARTENSE: Voluntary Chapter 11 Case Summary
ALION SCIENCE: Reports $65.1MM Consol. EBITDA for Fiscal 2011
ALLIED IRISH: To Terminate ADS Deposit Agreement with BNY
ALLY FINANCIAL: Files Amendment No. 4 to Form S-1 Registration
AMERICA WEST: Incurs $3.8 Million Second Quarter Net Loss
AMERICAN SCIENTIFIC: To Restate First Quarter Results
AMERICAS ENERGY: Incurs $7.7 Million Net Loss in Fiscal Q1
ANCHOR BANCORP: Falls Below Nasdaq's Market Value Threshold
ASHLAND INC: Moody's Confirms 'Ba1' Corporate; Outlook Stable
ASHLAND INC: Hiked Debt Leverage Cues S&P to Cut Corporate to 'BB'
ATRINSIC INC: Posts $6.1 Million Net Loss in 2nd Quarter
AUGUSTA APARTMENTS: Trustee Can Sell Assets to WVU for $13.1MM
AUGUSTA APARTMENTS: Trustee's Stipulation with First United OK'd
AUGUSTA APARTMENTS: Asset Turnover a Must for Ownership Transition
AWAL BANK: Court OKs Schedule Modification, Denies Case Dismissal
BEAUTY CENTER: Case Summary & 20 Largest Unsecured Creditors
BERKLINE/BENCHCRAFT: Plans to Resurrect Furniture Product Line
BERNARD L. MADOFF: Trustee Seeks $20.6 Million from Delta Bank
BESO LLC: Eva Longoria Wins Stay in Dispute Over Proceeds
BIO-KEY INTERNATIONAL: Posts $549,200 Net Loss in Second Quarter
BIOLASE TECHNOLOGY: Amends Form S-3 for 2.3MM Shares Offering
BIOLIFE SOLUTIONS: Daphne Taylor Appointed CFO
BLISH LLP: Voluntary Chapter 11 Case Summary
BLUEKNIGHT ENERGY: To Construct New Crude Oil Terminal in Texas
BON SECOUR: U.S. Trustee Moves to Dismiss Chapter 11 Case
BOUNDARY BAY: Seeks to Hire Joel M. Pores as Special Counsel
BURLINGTON COAT: Bank Debt Trades at 7% Off in Secondary Market
CAPITOL CITY: 10 Directors Elected at Annual Meeting
CAPITOL CITY: Posts $158,500 Second Quarter Net Income
CARDOBA-RANCH: Files for Chapter 11 Bankruptcy Protection
CAREMORE HOLDINGS: S&P Lifts Counterparty Credit Rating to 'BB+'
CARLISLE APARTMENTS: Closes Exit Financing, Wants Case Dismissal
CARLISLE APARTMENTS: Has Until Sept. 7 to Propose Chapter 11 Plan
CARROLL GARDENS: Voluntary Chapter 11 Case Summary
CATASYS INC: Inks $650,000 SPA with Socius Capital
CB HOLDING: Board Approves Transfer of License to Vignali
CIRCLE M: Case Summary & 20 Largest Unsecured Creditors
CIRTRAN CORP: Posts $4.7-Mil. Second Quarter Net Income
CIRTRAN CORP: Three Directors Elected at Annual Meeting
CITY NATIONAL: Delays Filing of Quarterly Report on Form 10-Q
CLAIRE'S STORES: Bank Debt Trades at 15% Off in Secondary Market
CLEAN BURN: Converts Case to Chapter 7 Liquidation
COMMANDER PREMIER: Judge Allows City to Push Plan of Eviction
COMMUNITY HEALTH: Bank Debt Trades at 9% Off in Secondary Market
COMPETITIVE TECHNOLOGIES: Posts $1.3MM Net Loss in June 30 Quarter
CONOLOG CORP: Michael Horn Appointed as Board Member
CORDOVA FUNDING: S&P Keeps 'BB' Rating on Senior Secured Bonds
CORUS BANKSHARES: Plan Filing Exclusivity Extended to Oct. 18
COSTA DORADA: Chapter 11 Case Reassigned to Judge Enrique Lamoutte
COUDERT BROTHERS: Law Firms Want Claims Out Of Bankruptcy Court
CRENSHAW AVALON: Case Summary & 6 Largest Unsecured Creditors
CROSS BORDER: Red Mountain Discloses 14.6% Equity Stake
CROSS COUNTY: Can Use Cathay Cash Collateral Through Oct. 31
CROSSROADS RAINTREE: Voluntary Chapter 11 Case Summary
CROWN CASTLE: S&P Affirms 'B+' Corporate Credit Rating
DEBUT BROADCASTING: Posts $93,800 Second Quarter Net Income
DELTRON INC: Incurs $267,000 Net Loss in June 30 Quarter
DOE MOUNTAIN: Case Summary & 6 Largest Unsecured Creditors
DUNE ENERGY: UBS AG Discloses 20.5% Equity Stake
EQK BRIDGEVIEW: Has Access to GP Trust Cash Collateral on Interim
ELAN CORP: S&P Keeps 'B' Corp. Credit Rating on Watch Positive
ELITE PHARMACEUTICALS: Amends Designations of Series B & C Shares
EMPIRE RESORTS: Receives Non-Compliance Notice from Nasdaq
ENVIRONMENTAL INFRASTRUCTURE: Incurs $455,800 Q2 Net Loss
EPAZZ INC: To Restate Reports to Reflect Intellisys Acquisition
EPAZZ INC: Reports $58,700 Second Quarter Net Income
EVERGREEN SOLAR: Taps Hilco Industrial as Sales Agent
EVERGREEN SOLAR: Files Copy of Guarantee Issued by LBHI
FIRST FEDERAL: L. Brandt Retires; D. Cavin Appointed CEO
FODL INC: Files for Chapter 7 Bankruptcy
FNB UNITED: Treasury Agrees to Exchange 51,500 Preferred Shares
FUSION TELECOMMUNICATIONS: Borrows $122,000 from Marvin Rosen
GENERAL MARITIME: Peter Georgiopoulos Holds 5.4% Equity Stake
GENMED HOLDING: Posts $1.4 Million Net Loss in Second Quarter
GLOBAL CHILD: Case Summary & 8 Largest Unsecured Creditors
GLOBAL INVESTOR: Incurs $2.4 Million Net Loss in June 30 Quarter
GLOBAL SHIP: Incurs $11.7 Million Second Quarter Net Loss
GREEN PLANET: Lumea Undergoes Financial Restructuring
GREEN PLANET: Shelter Island Sues, Seeks $2-Mil. Payment
GREENBRIER COS: W. Furman Discloses 7.3% Equity Stake
GYMBOREE CORP: Bank Debt Trades at 13% Off in Secondary Market
HAMPTON ROADS: John Davies Resigns; D. Glenn Assumes CEO Role
HANMI FINANCIAL: Seven Directors Elected at Annual Meeting
HARBOUR EAST: Wants Escrow Agent to Turn Over $67,500 Deposit
HARGRAY HOLDINGS: S&P Hikes Corporate to B+ on Credit Measures
HARRY & DAVID: Plans to Employ More Workers at Medford Call Center
HEARUSA INC: Delays Filing of Form 10-Q for Period Ended July 2
HORIZON CONSTRUCTION: Groover's Super Owner Files for Chapter 11
HOTEL AIRPORT: To Hire Edgardo Munoz as Bankruptcy Counsel
HOTEL AIRPORT: Files Schedules of Assets & Liabilities
HOWREY LLP: 20 Law Firms Involved in Chapter 11 Case
HSCB FINANCIAL: Incurs $39.9 Million Net Loss in 2nd Quarter
HUDSON HEALTHCARE: U.S. Trustee Wants Patient Care Ombudsman Named
INDIANAPOLIS DOWNS: Seeks Nod of Settlement With Cordish, Live
INIVERSAL INC: Files for Chapter 7 Bankruptcy Protection
INNER CITY: Lenders Urge Court to Limit Cash Use
INNOVIDA HOLDINGS: Inepar Wins Nod to Buy Assets for $500,000 Cash
IRON MINING: Files for Chapter 11 Protection
IRON MINING: Case Summary & 10 Largest Unsecured Creditors
IRVINE SENSORS: Reports $4.5 Million Net Income in July 3 Quarter
ISP CHEMCO: S&P Raises Corporate Credit Rating to 'BB'
IVOICE INC: Incurs $259,000 Second Quarter Net Loss
J BAR C: Case Summary & 20 Largest Unsecured Creditors
JACKSON GREEN: U.S. Trustee Unable to Form Committee
JCREW: Bank Debt Trades at 13% Off in Secondary Market
JAMES RIVER: McCoy Receives Imminent Danger Order from MSHA
JOHNSONIA BUILDING: Receivership Plan on Hold Until Aug. 30
JOSEPH PERRONCELLO: Gets OK for Sept. 20 Auction for Building
JOSEPH PRESCONTI: Guarantees $2.6MM Loans on Real Estate Ventures
JURUPA VALLEY: To Get $1.7-Mil. Loan to Help Avoid Insolvency
LAS VEGAS SANDS: Bank Debt Trades at 9% Off in Secondary Market
LAS VEGAS SANDS: Bank Debt Trades at 9% Off in Secondary Market
LOCAL INSIGHT: Plans to Keep Moraine Campus After Emergence
LVBC REALTY: Case Summary & 6 Largest Unsecured Creditors
LYMAN LUMBER: To Lay Off All 106 Workers in October
MARITIME COMMUNICATIONS: Has Until Aug. 31 to File Schedules
MARITIME COMMUNICATIONS: Files List of Largest Unsecured Creditors
MARK BURNELL: Expects to Emerge From Bankruptcy in 30 to 45 Days
MAYSVILLE INC: FEP Wants Case Dismissed as Bad Faith Filing
MAYSVILLE INC: FEP Seeks Transfer of Rents Escrow Account
MAYSVILLE INC: Seeks Authority to Use Cash Collateral
MAYSVILLE INC: Section 341(a) Meeting Scheduled for Sept. 13
MAYSVILLE INC: Seeks to Employ Bast Amron as Bankruptcy Counsel
MAYSVILLE INC: Seeks to Hire Pardo Gainsburg as Special Counsel
MAYSVILLE INC: Files Schedules of Assets and Liabilities
MEDASSETS INC: Moody's Affirms 'B1' Corporate Family Rating
MEG ENERGY: Bank Debt Trades at 5% Off in Secondary Market
MERITAS SCHOOLS: S&P Assigns 'B' Corporate Credit Rating
METAL STORM: Inks Representation Agreement with Colt Defense
METISCAN INC: Reports $54,300 Net Income in 2nd Quarter
METROPARK USA: Weisfeld Group Buys Intellectual Property
MGM RESORTS: Tracinda Corporation Discloses 22.8% Equity Stake
MIT HOLDING: Incurs $444,800 Net Loss in Second Quarter
MONEYGRAM INT'L: To Ink 4th Supplemental Indenture with DBTCA
MOUNT JOY: Case Summary & 3 Largest Unsecured Creditors
MT VERNON: Meridian Law Approved to Handle Reorganization Case
MT VERNON: Files Schedules of Assets and Liabilities
NEOMEDIA TECHNOLOGIES: Sells $350,000 Debenture to YA Global
NEVIN SHAPIRO: Trustee Plans to Get Gifts From Miami Players
NEWCARDIO INC: Incurs $935,000 Second Quarter Net Loss
NEXT GENERATION: Incurs $463,000 Second Quarter Net Loss
NO FEAR: Stipulates with FMCC on Vehicle Installment Contract
NORTEL NETWORKS: Seeks Approval of Side Agreement
NORTEL NETWORKS: Can Hire EFC as Special Irish Counsel
NORTEL NETWORKS: Posts $105-Mil. Net Loss in 2nd Quarter
NORTH ATLANTIC: S&P Assigns 'B-' Corporate Credit Rating
NORTH BAY: Court OKs Settlement; Chapter 11 Case Dismissed
NOVELIS INC: Bank Debt Trades at 5% Off in Secondary Market
NURSERYMEN'S EXCHANGE: Can Avail of DIP Financing Through Nov. 5
NUTRACEA: Posts $32,000 Net Loss in Second Quarter
OLD COLONY: Can Access Wells Fargo Cash Collateral Until Sept. 1
OLD CUTTERS: In Chapter 11, Owes City of Haley
ORLAND COUNTY: Court Approves Wolff Hill as Bankruptcy Counsel
OSI RESTAURANT: Reports $8 Million Net Income in Second Quarter
PACESETTER FABRICS: Lazarus Resources OK'd as Financial Advisor
PEARLAND SUNRISE: Court Sets Sept. 26 Plan Confirmation Hearing
PEGASUS RURAL: Wants OK to Get Add'l $900,000 Loan from Xanadoo
PENINSULA HOSPITAL: Service Cut Back Irates Elected Officials
PETRA FUND: Disclosure Statement Hearing Continued to Sept. 12
PHILADELPHIA NEWSPAPERS: Settles Superfund Claim, To Pay $650,000
PHILADELPHIA ORCHESTRA: Could Exceed $2.9-Mil. Budget for Fees
PHILADELPHIA ORCHESTRA: Court OKs Luken & Wolf as Appraiser
PHILLIPS PLASTIC: S&P Assigns 'B' Corporate Credit Rating
PHILLIPS RENTAL: Can Use Banks' Cash Collateral Until Sept. 23
PICHI'S INC: Schedules & Statement Due Wednesday
PIEDMONT CENTER: Hires Trawick H. Stubbs, Jr., as Attorney
PINNACLE INVESTMENTS: Case Summary & 10 Largest Unsec Creditors
PINNACLE ENTERTAINMENT: Moody's Affirms 'B2' Corporate Rating
PLATINUM STUDIOS: Incurs $6.3 Million Second Quarter Net Loss
PLATINUM VENTURE: Files for Bankruptcy Protection
PLY GEM HOLDINGS: Reports $2 Million Net Income in Second Quarter
PMI MORTGAGE: Moody's Lowers Insurance FSR to 'B3'
POLYPORE INTERNATIONAL: S&P Raises CCR to 'B+'; Outlook Stable
POWER EFFICIENCY: Provides Updates to Shareholders
PRECISION OPTICS: Maturity of $600,000 Notes Extended to Aug. 31
PRIVATE MEDIA: Posts EUR1.1 Million Net Loss in 2nd Quarter
PROMETRIC INC: S&P Raises Corporate Credit Rating to 'BB'
* BOND PRICING -- For Week From Aug. 15 - 19, 2011
*********
12 MARTENSE: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: 12 Martense Associates LLC
134 Broadway, #9
Brooklyn, NY 11211
Bankruptcy Case No.: 11-47249
Chapter 11 Petition Date: August 23, 2011
Court: U.S. Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Elizabeth S. Stong
Debtor's Counsel: Jonathan S. Pasternak, Esq.
RATTET PASTERNAK, LLP
550 Mamaroneck Avenue, Suite 510
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: jsp@rattetlaw.com
- and -
Julie A. Cvek, Esq.
RATTET PASTERNAK, LLP
550 Mamaroneck Avenue
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: jcvek@rattetlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Zalman Perl, managing member.
ALION SCIENCE: Reports $65.1MM Consol. EBITDA for Fiscal 2011
-------------------------------------------------------------
Alion Science and Technology Corporation disclosed that
Consolidated EBITDA for the twelve month period ended June 30,
2011, was $65.1 million, and for the three month period ended June
30, 2011, was approximately $12.0 million. As of June 30, 2011,
the Company had over $2.6 billion of contract proposals that were
submitted and waiting for decision, and an additional $740 million
of contract proposals that were in process. A full-text copy of
the disclosure is available for free at http://is.gd/zQzdsU
About Alion Science
Alion Science and Technology Corporation, based in McLean,
Virginia, is an employee-owned company that provides scientific
research, development, and engineering services related to
national defense, homeland security, and energy and environmental
analysis. Particular areas of expertise include communications,
wireless technology, netcentric warfare, modeling and simulation,
chemical and biological warfare, program management.
Alion Science reported a net loss of $15.23 million on
$833.98 million of contract revenue for the year ended Sept. 30,
2010, compared with a net loss of $17.04 million on
$802.22 million of contract revenue during the prior year.
The Company's balance sheet at June 30, 2011, showed
$616.44 million in total assets, $722.39 million in total
liabilities, $154.78 million in redeemable common stock, $20.78
million in common stock warrants, $177,000 in accumulated other
comprehensive loss, and a $281.34 million in accumulated deficit.
* * *
Alion carries 'Caa3' corporate family and probability of default
Ratings, with stable outlook, from Moody's. Alion carries a 'B-'
corporate credit rating, with stable outlook, from Standard &
Poor's.
Moody's said in March 2010, "The Caa1 corporate family rating
would balance the continued high leverage against a promising
business backlog that could sustain the good 2009 revenue growth
rate, though credit challenges would remain pronounced."
ALLIED IRISH: To Terminate ADS Deposit Agreement with BNY
---------------------------------------------------------
Allied Irish Banks, p.l.c., intends to terminate the American
Depositary Shares facility by terminating the ADS deposit
agreement between with the Bank of New York Mellon as depositary.
The Depositary will contact ADS holders in due course with further
information, including with regard to any further action to be
taken.
Following on from its announcement on Aug. 4, 2011, when AIB
announced that its Board of Directors resolved to delist its
American Depositary Shares, each representing ten ordinary shares,
par value EUR0.01 per share, from the New York Stock Exchange, AIB
took the next step in the process to delisting and has filed a
Form 25 with the US Securities and Exchange Commission on Aug. 15,
2011. AIB expects the delisting of its ADSs to become effective
at the close of business on or about Aug. 25, 2011, from which
time AIB's ADSs will no longer be traded on the NYSE.
In due course, AIB also intends to deregister its securities and
terminate its obligations under the US Securities Exchange Act of
1934 by filing a Form 15F. AIB's aim is to meet the applicable
criteria for deregistration of its securities.
AIB reserves the right, for any reason, to delay these filings or
to withdraw them prior to their effectiveness.
AIB has not arranged for listing or registration on another US
national securities exchange or for quotation of its securities in
a US quotation medium, but expects that, after delisting the ADSs,
its ordinary shares will continue to trade on the Enterprise
Securities Market of the Irish Stock Exchange. Information
required to be made available pursuant to Rule 12g3-2(b) under the
Exchange Act will be made available on AIB's Web site at
www.aibgroup.com.
About Allied Irish Banks, p.l.c.
Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a
major commercial bank based in Ireland. It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin. AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).
Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.
As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares. On
April 8, 2011, the NPRFC converted the total outstanding amount of
CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.
In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.
As reported by the TCR on May 31, 2011, KPMG, in Dublin, Ireland,
noted that there are a number of material economic, political and
market risks and uncertainties that impact the Irish banking
system, including the Company's continued ability to access
funding from the Eurosystem and the Irish Central Bank to meet its
liquidity requirements, that raise substantial doubt about the
Company's ability to continue as a going concern.
The Company reported a net loss of EUR10.16 billion on
EUR1.84 billion of interest income for 2010, compared with a net
loss of EUR2.33 billion on $2.87 billion of interest income for
2009.
ALLY FINANCIAL: Files Amendment No. 4 to Form S-1 Registration
--------------------------------------------------------------
Ally Financial Inc. filed with the U.S. Securities and Exchange
Commission Amendment No. 4 to Form S-1 registration statement
relating to the United States Department of the Treasury's
offering of an unspecified number of shares of common stock of the
Company. The Company will not receive any of the proceeds from
the sale of shares of common stock by the selling stockholder.
This is the Company's initial public offering and no public market
exists for the Company's shares. The Company anticipates that the
initial public offering price will be between $[ ] and $[ ]
per share. The Company has applied to list the common stock on
the New York Stock Exchange under the symbol "ALLY".
The selling stockholder has granted the underwriters the right to
purchase up to [ ] additional shares of common stock to cover
over-allotments, if any, at the public offering price, less the
underwriters' discount, within 30 days from the date of this
prospectus.
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 prospectus is available for free
at http://is.gd/xqKq8Y
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.
The Company's balance sheet at June 30, 2011, showed
$178.88 billion in total assets, $158.46 billion in total
liabilities, and $20.42 billion in total equity.
* * *
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.
AMERICA WEST: Incurs $3.8 Million Second Quarter Net Loss
---------------------------------------------------------
America West Resources, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting a
net loss of $3.82 million on $4 million of total revenue for the
three months ended June 30, 2011, compared with a net loss of
$4.37 million on $3.38 million of total revenue for the same
period a year ago.
The Company also reported a net loss of $10.35 million on
$7.49 million of total revenue for the six months ended June 30,
2011, compared with a net loss of $9.33 million on $4.48 million
of total revenue for the same period during the prior year.
The Company's balance sheet at June 30, 2011, showed
$30.08 million in total assets, $30.35 million in total
liabilities, and a $264,425 total stockholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/rVkEOG
About America West
Based in Salt Lake City, Utah, America West Resources, Inc., is an
established domestic coal producer engaged in the mining of clean
and compliant (low-sulfur) coal. The majority of the Company's
coal is sold to utility companies for use in the generation of
electricity.
The Company reported a net loss of $16.14 million on
$10.07 million of total revenue for the year ended Dec. 31, 2010,
compared with a net loss of $8.70 million on $11.01 million of
total revenue during the prior year.
As reported by the TCR on April 21, 2011, MaloneBailey, LLP, in
Houston, Texas, expressed substantial doubt about America West's
ability to continue as a going concern, following the 2010
financial results. The independent auditors noted that the
Company has a working capital deficit and has incurred significant
losses.
AMERICAN SCIENTIFIC: To Restate First Quarter Results
-----------------------------------------------------
The board of directors of American Scientific Resources,
Incorporated, after consultation with Company's management and the
Company's auditors, concluded that the Company's financial
statements for the interim period March 31, 2011, did not properly
account for certain items and, as a result, should not be relied
upon. Following the guidance in the Financial Accounting
Standards Board, Accounting Standards Codification No. 815-40
Derivatives and Hedging - Contracts in Entity's Own Equity, the
Company is required to restate its March 31, 2011, financial
position and results of operations. Details of the restatement
are as follows:
On March 4, 2011, the Company granted an investor the right to
convert $70,735 of principal and accrued interest related to
certain 2007 subscription agreement debentures at $0.60 per share
of common stock. On March 31, 2011, the Company granted two
additional investors the right to convert $42,383 of principal and
accrued interest also related to certain 2007 subscription
agreement debentures for $0.15 per share of common stock. In its
consolidated financial statements as of and for the three months
ended March 31, 2011, the Company determined that it had not
recorded the effect of the anti-dilution provisions related to the
March 4, 2011, and March 31, 2011, conversions as adjustments to
its derivative instruments.
In addition, the Company erroneously calculated the value of the
charges for the reduction of the conversion prices related to
March 4, 2011, and March 31, 2011, conversions to equity.
The effect of the above adjustments was included in the Company's
Form 10-Q for the June 30, 2011, interim period.
The Board has discussed the foregoing matters with the Company's
independent registered public accounting firm and has authorized
and directed the officers of the Company to take the appropriate
and necessary actions to restate its unaudited financial
statements for the quarter ended March 31, 2011, by filing an
amendment as soon as practicable.
About American Scientific
Weston, Fla.-bases American Scientific Resources, Inc., provides
healthcare and medical products. The Company develops,
manufactures and distributes healthcare and medical products
primarily to retail drug chains, retail stores specializing in
sales of products for babies and medical supply dealers. The
Company does sub-component assembly and packaging for the
Disintegrator product line. All of the Company's other products
are manufactured by third parties. The Company was comprised of
three subsidiaries: (i) Kidz-Med, Inc., (ii) HeartSmart, Inc., and
(iii) Ulster Scientific, Inc., of which only Kidz-Med was active
until Dec. 31, 2010. All subsidiaries are currently inactive.
The Company's balance sheet at June 30, 2011, showed $1.38 million
in total assets, $9.28 million in total liabilities, and a
$7.90 million total shareholders' deficit.
Rosenberg Rich Baker Berman & Company, in Somerset, New Jersey,
expressed substantial doubt about American Scientific Resources'
ability to continue as a going concern, following the Company's
2010 results. The independent auditors noted that the Company has
suffered recurring losses, its current liabilities exceed its
current assets and it is in default with certain of its
obligations.
AMERICAS ENERGY: Incurs $7.7 Million Net Loss in Fiscal Q1
----------------------------------------------------------
Americas Energy Company filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss of $7.73 million on $141,901 of total revenues for the
three months ended June 30, 2011, compared with a net loss of
$4.12 million on $3.63 million of total revenues for the same
period during the prior year.
The Company reported a net loss of $1.27 million on $6.83 million
of total revenues for the fiscal year ended March 31, 2011,
compared with a net loss of $9.72 million on $3.57 million of
total revenues for the period from July 13, 2009, through March
31, 2010.
The Company's balance sheet at June 30, 2011, showed
$25.46 million in total assets, $17.20 million in total
liabilities, and $8.25 million in total stockholders' equity.
Weaver & Martin, LLC, in Kansas City, Mo., expressed substantial
doubt about Americas Energy's ability to continue as a going
concern for the second year in a row. Weaver & Martin said the
Company has suffered recurring losses and had negative cash flows
from operations that raise substantial doubt about the Company's
ability to continue as a going concern.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/rITg6u
About Americas Energy
Knoxville, Tenn.-based Americas Energy Company-AECo currently
operates surface mines in southeastern Kentucky. In March 2010,
the Company acquired Evans Coal Corp. for $7,000,000 in cash, a
$25,000,000 promissory note and a 2% overriding royalty on all
coal sales generated from the properties acquired from Evans.
Evans owns or controls by lease mineral rights and currently
operates by use of contractors, two surface mines in Bell County
and one in Knox County, Kentucky. In addition, the Company has
rights to oil properties located in Cumberland County, Kentucky
that are intended for future development.
ANCHOR BANCORP: Falls Below Nasdaq's Market Value Threshold
-----------------------------------------------------------
Anchor BanCorp Wisconsin Inc. received a letter from The Nasdaq
Stock Market stating that for the last 30 consecutive business
days, the Company's market value of publicly held shares was below
the minimum $15,000,000 requirement for continued inclusion on The
Nasdaq Global Market under Listing Rule 5450(b)(3)(C). This
notification has no immediate effect on the listing of the
Company's common stock.
In accordance with Nasdaq Listing Rule 5810(c)(3)(D), the Company
has 180 calendar days, or until Feb. 14, 2012, to regain
compliance with the Rule. The Company will regain compliance if,
at any time before Feb. 14, 2012, the Company's market value of
publicly held shares is $15,000,000 or more for a minimum of 10
consecutive business days.
If the Company does not regain compliance with the Rule by
Feb. 14, 2012, Nasdaq will provide the Company with written
notification that the Company's common stock will be delisted from
The Nasdaq Global Market. At that time, the Company may appeal
the delisting determination to a Nasdaq Listings Qualifications
Panel. In that event, the Company would likely request a hearing
before a Panel, which would automatically stay the delisting of
the Company's common stock pending the issuance of the Panel's
decision after the hearing. The Company plans to exercise
diligent efforts to maintain the listing of its common stock on
The Nasdaq Global Market, but there can be no assurance that it
will be successful in doing so.
About Anchor Bancorp
Madison, Wisconsin-based Anchor BanCorp Wisconsin Inc. 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.
The Company's balance sheet at June 30, 2011, showed $3.24 billion
in total assets, $3.24 billion in total liabilities, and
$4.99 million of stockholders' equity.
Anchor BanCorp and its wholly-owned subsidiaries, AnchorBank fsb,
each consented to the issuance of an Order to Cease and Desist by
the Office of Thrift Supervision. The Corporation and the Bank
continue to diligently work with their financial and professional
advisors in seeking qualified sources of outside capital, and in
achieving compliance with the requirements of the Orders. The
Corporation and the Bank continue to consult with the successors
to the OTS, Federal Reserve, the the Office of the Comptroller of
the Currency and Federal Deposit Insurance Corporation on a
regular basis concerning the Corporation's and Bank's proposals to
obtain outside capital and to develop action plans that will be
acceptable to federal regulatory authorities, but there can be no
assurance that these actions will be successful, or that even if
one or more of the Corporation's and Banks proposals are accepted
by the Federal regulators, that these' proposals will be
successfully implemented. While the Corporation's management
continues to exert maximum effort to attract new capital,
significant operating losses in fiscal 2009, 2010 and 2011,
significant levels of criticized assets and low levels of capital
raise substantial doubt as to the Corporation's ability to
continue as a going concern. If the Corporation and Bank are
unable to achieve compliance with the requirements of the Orders,
or implement an acceptable capital restoration plan, and if the
Corporation and Bank cannot otherwise comply with those
commitments and regulations, the OCC or FDIC could force a sale,
liquidation or federal conservatorship or receivership of the
Bank.
As reported by the TCR on July 5, 2011, McGladrey & Pullen, LLP,
in Madison, Wisconsin, expressed substantial doubt about Anchor
Bancorp Wisconsin's ability to continue as a going concern after
auditing the Company's financial results for fiscal year ended
March 31, 2011. The independent auditors noted that at March 31,
2011, all of the subsidiary bank's regulatory capital amounts and
ratios are below the capital levels required by the consent order.
"The subsidiary bank has also suffered recurring losses from
operations. Failure to meet the capital requirements exposes the
Corporation to regulatory sanctions that may include restrictions
on operations and growth, mandatory asset dispositions, and
seizure of the subsidiary bank."
ASHLAND INC: Moody's Confirms 'Ba1' Corporate; Outlook Stable
-------------------------------------------------------------
Moody's Investors Service confirmed Ashland Inc.'s Ba1 Corporate
Family Rating (CFR) and the ratings on its recently issued debt
after the company announced it completed the acquisition of
International Specialty Products Inc. (ISP) on August 23. Moody's
assigned a SGL-1 Speculative Grade Liquidity rating to Ashland and
withdrew the rating on Ashland's terminated revolving credit
agreement. Moody's also withdrew ISP's Corporate Family Rating
(CFR). This concludes the ratings review on Ashland's debt
initiated June 1, 2011, after the company announced it had entered
into an agreement to acquire ISP. The outlook is stable.
The $3.2 billion acquisition was financed with a new $1.5 billion
term loan A, $1.4 billion term loan B and existing cash balances.
Moody's upgraded the rating on the 9.125% notes due 2017 to Baa3
from Ba1 as the notes became secured on a ratable basis with the
$2.9 billion of senior secured term loans. The ratings on three
existing debt issues (6.6% secured notes due 2027, 8.8% debentures
due 2012 and the medium term notes) were downgraded in accordance
with application of Moody's loss-given-default methodology. ISP
Chemco LLC's CFR and debt ratings as well as were withdrawn.
Ratings confirmed:
Ashland Inc.
Corporate Family Rating -- Ba1
Probability of Default Rating -- Ba1
$1.0 billion 5 year Sr. Sec. Revolving Credit Facility -- Baa3,
LGD3, 36%
$1.5 billion 5 year Sr. Sec. Term Loan A -- Baa3, LGD3, 36%
$1.4 billion 7 year Sr. Sec. Term Loan B -- Baa3, LGD3, 36%
Hercules Incorporated
6.50% Jr Sub Debentures due 2029 -- Ba2 (LGD6, 94%) to Ba2 (LGD6,
93%)
Rating assigned:
Ashland Inc.
Speculative Grade Liquidity Rating -- SGL1
Ratings upgraded:
Ashland Inc.
9.125% Sr Notes due 2017 -- Ba1 (LGD4, 55%) to Baa3 (LGD3, 36%)
Ratings downgraded:
Ashland Inc.
Sr Unsec Medium-Term Note Program --(P)Ba1(LGD4, 55%) to (P)Ba2
(LGD5, 82%)
7.72% Sr Unsec Medium Term Notes due 2013 -- Ba1 (LGD4, 55%) to
Ba2 (LGD5, 82%)
8.38% Sr Unsec Medium Term Notes due 2015 - Ba1 (LGD4, 55%) to Ba2
(LGD5, 82%)
8.8% Sr Unsec Debentures due 2012 -- Ba1 (LGD4, 55%) to Ba2 (LGD5,
82%)
Hercules Incorporated
6.60% Notes due 2027 -- Baa2 (LGD2, 12%) to Baa3 (LGD3, 36%)
Ratings withdrawn:
Ashland Inc.
$550mm Sr. Sec. Revolving Credit Facility due 2014 -- Baa2 (LGD2,
12%)
ISP Chemco LLC
Corporate Family Rating -- Ba3
Probability of Default Rating -- Ba3
Guaranteed Senior Secured Term Loan due 2014 -- Ba3 (LGD3 - 40%)
Outlook: Stable
RATINGS RATIONALE
The confirmation of Ashland's Ba1 CFR, as Moody's indicated was
probable when Moody's rated the term loans used to finance the
acquisition, reflects Moody's expectation that Ashland will reduce
its leverage (4.4x as of March 31, 2011 pro forma for the
acquisition) to a level commensurate with its Ba1 CFR within the
next 18-24 months. Moody's views the acquisition of ISP as a
positive step, providing Ashland with higher margin specialty
chemicals, increased exposure to faster growing markets such as
personal care and pharmaceuticals, a more diverse revenue stream
and a steadier earnings profile. The ISP purchase price (8.9x
ISP's trailing twelve months EBITDA before considering synergies)
is reasonable and Ashland was successful in integrating the 2008
Hercules Incorporated acquisition, while realizing more synergies
than originally targeted.
Ashland's Ba1 CFR is supported by a diversified portfolio of
chemical businesses that has become more specialty in nature with
the acquisition of International Specialty Products. Its large and
diverse revenue base in the US and internationally, meaningful
market shares in certain businesses (e.g., Water Technologies,
Functional Ingredients), and operational also support the rating.
The company is focused on achieving an investment grade rating and
Moody's expects it will apply free cash flow towards debt
reduction and limit the size of acquisitions over the near-term in
order to reduce leverage to its stated 2.0x target (before Moody's
analytical adjustment which adds approximately $1.5 billion to
debt).
The principal methodology used in rating Ashland was the Global
Chemical Industry Methodology, published December 2009. Please see
the Credit Policy page on www.moodys.com for a copy of this
methodology.
ISP Chemco LLC., headquartered in Wayne, New Jersey, is a leading
multinational manufacturer and supplier of chemicals for a wide
variety of personal care, pharmaceutical, food, beverage, plastics
and other applications that enhance product performance. The
company produces more than five hundred specialty chemicals which
are marketed and sold to over six thousand customers in more than
ninety countries worldwide. It is part of a group of companies
that are privately held and beneficially owned by the Heyman
family. (ISP Chemco LLC is a wholly owned subsidiary of
International Specialty Products Holdings LLC, which is a wholly
owned subsidiary of International Specialty Products Inc.) As part
of the acquisition, Ashland is purchasing all of International
Specialty Products, Inc's operations, with the exception of the
Linden facility and the Wayne campus. ISP had revenues for the
twelve months ending April 4, 2011, of approximately $1.6 billion.
Ashland, headquartered in Covington, Kentucky, is a manufacturer
of specialty chemicals (with a focus on performance materials and
water technologies), a distributor of chemicals and plastics, and,
through its Valvoline brand, a marketer of premium-branded
automotive and commercial lubricants. Ashland had revenue of $6.2
billion for the twelve months ended June 30, 2011, excluding
revenue from the divested distribution business.
ASHLAND INC: Hiked Debt Leverage Cues S&P to Cut Corporate to 'BB'
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Ashland Inc. and its subsidiary, Hercules Inc., to 'BB'
from 'BB+'. The outlook is stable.
"We lowered the ratings to reflect the increase in debt leverage
following Ashland's acquisition of ISP," said Standard & Poor's
credit analyst Cynthia Werneth.
Standard & Poor's also took a number of issue-level actions
including lowering the ratings on Ashland's senior unsecured
notes, to 'BB-' from 'BB', and on the subordinated debt, to 'B+'
from 'BB-'. Standard & Poor's removed the ratings it lowered from
CreditWatch, where they had been placed with negative implications
on May 31, 2011, when Ashland announced the ISP acquisition.
The ratings reflect Ashland's satisfactory business risk profile
and aggressive financial risk profile. Ashland is a diversified
chemicals company that benefits from good product and end-market
diversity and an improving product mix. Ashland has leading
positions in water-soluble polymers, water treatment chemicals,
and chemicals used in paper production. In addition, as owner of
the Valvoline brand, it is among the leading suppliers of
automotive lubricants and runs the second-largest quick-lube
franchise in the U.S. The company also manufactures composites and
adhesives. In March 2011, it sold its large chemical distribution
business for net proceeds of about $825 million.
The ISP acquisition furthers Ashland's strategy of expanding its
specialty chemical offerings, improving profitability, and
increasing the predictability of operating results. U.S.-based ISP
is a leading manufacturer of functional ingredients for the
personal care and pharmaceutical markets. Its products include
emulsifiers, emollients, and excipients. "We consider ISP a good
fit with Ashland's Aqualon functional ingredients business,
providing complementary products serving common end markets," Ms.
Werneth said.
This transaction essentially completes Ashland's transition to a
specialty chemical manufacturer, and Standard & Poor's does not
expect any other acquisitions of this magnitude. The acquisition
price of $3.2 billion represents an 8.9x multiple of ISP's
trailing-12-month EBITDA as of March 31, 2011, which was about
$360 million before expected synergies of $50 million. "We regard
both the price and management's synergy estimates as reasonable,"
Ms. Werneth said.
"Despite aggressive debt leverage and a capital structure that is
heavily weighted to secured debt, we believe that Ashland will
maintain strong liquidity following this transaction," she added.
During the next few years, Ashland likely will use discretionary
cash flow primarily for debt reduction and moderate-size
acquisitions that further improve both profitability and the
business risk profile.
ATRINSIC INC: Posts $6.1 Million Net Loss in 2nd Quarter
--------------------------------------------------------
Atrinsic, Inc., filed its quarterly report on Form 10-Q, reporting
a net loss of $6.1 million on $6.3 million of revenue for the
three months ended June 30, 2011, compared with a net loss of
$4.5 million on $10.8 million of revenue for the same period
last year.
The Company reported a net loss of $9.7 million on $13.3 million
of revenue for the six months ended June 30, 2011, compared with a
net loss of $7.9 million on $23.0 million of revenue for the six
months ended June 30, 2010.
The Company's balance sheet at June 30, 2011, showed $15.0 million
in total assets, $16.1 million in total liabilities, and a
stockholders' deficit of $1.1 million.
As reported in the TCR on April 12, 2011, KPMG LLP, in New York,
expressed substantial doubt about Atrinsic'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.
A copy of the Form 10-Q is available at http://is.gd/OBn10g
New York City-based Atrinsic, Inc. (NASDAQ: ATRN) is a marketer
of direct-to-consumer subscription products and an Internet
search-marketing agency. The Company sells entertainment and
lifestyle subscription products directly to consumers, which the
Company markets through the Internet. The Company also sells
Internet marketing services to its corporate and advertising
clients.
AUGUSTA APARTMENTS: Trustee Can Sell Assets to WVU for $13.1MM
--------------------------------------------------------------
The Hon. Patrick M. Flatney of the U.S. Bankruptcy Court for the
Northern District of West Virginia authorized Robert L. Johns,
Chapter 11 trustee for the bankruptcy estates of Augusta
Apartments, LLC, and McCoy 6, LLC, to sell:
i. real property and improvements thereon consisting of a
multi-story apartment complex with 158 units and a parking
garage located at 49 Falling Run Road, Morgantown, West
Virginia -- The Augusta on the Square", and five parcels of
real property in the vicinity of the apartment complex, etc.;
and
ii. the corrective transfers from McCoy 6.
The trustee, on behalf of the Debtor entered into an agreement
with the West Virginia University Board of Governor, on behalf of
West Virginia University, a State Institution of Higher Education
for the purchase of its assets.
The trustee related that at the July 21 sale hearing, the trustee
conducted an auction between an upset bidder, Fountain Residential
Partners, LLC, and purchaser, which resulted in an increase of the
purchase price for the assets from $11.0 million to $13.1 million.
The purchaser was the high bidder at $13,100,000.
After the closing, according to the trustee, the balance of the
purchase price disbursement will include:
-- payment of all normal and ordinary settlement charges;
-- payment to First United Bank in the amount of $200,000 in
full and complete satisfaction of (i) its disputed first
priority lien on a tiny portion; and (ii) its first priority
lien on the McCoy 6 transfers valued at $160,000; and
-- payment of the trustee's statutory commission in an amount
up to $416,250, pending further order of the Court.
About Augusta Apartments
Morgantown, West Virginia-based Augusta Apartments, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. N.D. W.Va. Case No. 10-
00303) on Feb. 19, 2010. Kristian E. Warner, the Company's
managing member, signed the petition. The Company estimated its
assets and debts at $10 million to $50 million as of the Petition
Date.
In July 2010, Bankruptcy Judge Patrick M. Flatney approved the
appointment of Robert L. Johns as Chapter 11 trustee. A secured
creditor and the U.S. Trustee sought a trustee to replace
management, saying that Augusta management used funds from the
apartment to pay debts of Warner family members. Turner & Johns,
PLLC represents the Chapter 11 trustee.
AUGUSTA APARTMENTS: Trustee's Stipulation with First United OK'd
----------------------------------------------------------------
The Hon. Patrick L. Flatney of the U.S. Bankruptcy Court for the
Northern District of West Virginia adopted the stipulation entered
by Robert L. Johns, Chapter 11 trustee for the bankruptcy estates
of Augusta Apartments, LLC, and McCoy 6, LLC, with First United
Bank and Trust and PNC Bank, National Association.
The Court also ordered that upon the entry of any order approving
the sale motion, the approval will include, inter alia, a
provision that the allocated purchase price for the First United
Lien Parcel will be in an amount equal to $200,000; and the
limited objection, filed by First United, be deemed withdrawn.
The trustee related that on June 17, 2011, he sought permission to
sell certain real property owned by the Debtors' estates. The
proposed order provides for an allocated purchase price of $50,000
for a parcel of real property, with respect to which First United
has a first priority lien.
First United filed a limited objection to trustee's motion that
contends the value of the First United Lien Parcel exceeds the
proposed $50,000 allocated purchase price, and seeks an order to
establish a $500,000 escrow from the sale proceeds to protect its
interest in the First United Lien Parcel.
The parties stated that the stipulation will resolve First
United's continuance motion and limited objection.
The stipulation provides for, among other things:
1. If the sale motion is approved by the Court, any order
entered to that approval will include, inter alia, a provision
that the allocated purchase price for the First United Lien
Parcel will be in an amount equal to $200,000.
2. First United agrees that it will not seek further relief
from the Court with respect to (i) a continuance or other delay
of the sale hearing or (ii) an objection to a sale pursuant to
the sale motion.
The Chapter 11 trustee is represented by:
TURNER & JOHNS, PLLC
Wendell B. Turner, Esq.
216 Brooks Street, Suite 200
Charleston, WV 23501
Tel: (304) 720-2313
E-mail: wturner@TurnerJohns.com
First United is represented by:
SCHLOSSBERG & ASSOCIATES
Roger Schlossberg, Esq.
134 West Washington Street
P.O. Box 4227
Hagerstown, MD 21741-4227
Tel: (301) 739-8610
- and -
THORP REED & ARMSTRONG LLP
Troy L. Cady, Esq.
One Oxford Centre
301 Grant Street, 14th Floor
Pittsburgh, PA 15219-1425
Tel: (412) 394-7708
E-mail: tcady@thorpreed.com
About Augusta Apartments
Morgantown, West Virginia-based Augusta Apartments, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. N.D. W.Va. Case No. 10-
00303) on Feb. 19, 2010. Kristian E. Warner, the Company's
managing member, signed the petition. The Company estimated its
assets and debts at $10 million to $50 million as of the Petition
Date.
In July 2010, Bankruptcy Judge Patrick M. Flatney approved the
appointment of Robert L. Johns as Chapter 11 trustee. A secured
creditor and the U.S. Trustee sought a trustee to replace
management, saying that Augusta management used funds from the
apartment to pay debts of Warner family members. Turner & Johns,
PLLC represents the Chapter 11 trustee.
AUGUSTA APARTMENTS: Asset Turnover a Must for Ownership Transition
------------------------------------------------------------------
Robert L. Johns, Chapter 11 trustee for the bankruptcy estates of
Augusta Apartments, LLC, and McCoy 6, LLC, asks the U.S.
Bankruptcy Court for the Northern District of West Virginia to
compel former manager Donald W. Dempsey to turn over all property
and records of the Debtor in his possession and control.
Mr. Dempsey, who acted as the rental manager for the Debtors, on
Aug. 1, 2011, gave the trustee his verbal two-week notice of
termination of employment.
According to the trustee, despite specific requests from staff,
Mr. Dempsey refused to turn over to the Debtors' staff or to the
trustee vital records related to leasing of the Debtors' student
rental properties, including, but not limited to, tenant unit
assignment data, and rent collection data contained on a zip
drive.
The trustee relates that he is in the process of transition of
ownership of the Augusta Apartments facility to West Virginia
University, thus it is critical that all tenant data and Debtor
property in the possession or control of Mr. Dempsey be turned
over to the trustee immediately.
About Augusta Apartments
Morgantown, West Virginia-based Augusta Apartments, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. N.D. W.Va. Case No. 10-
00303) on Feb. 19, 2010. Kristian E. Warner, the Company's
managing member, signed the petition. The Company estimated its
assets and debts at $10 million to $50 million as of the Petition
Date.
In July 2010, Bankruptcy Judge Patrick M. Flatney approved the
appointment of Robert L. Johns as Chapter 11 trustee. A secured
creditor and the U.S. Trustee sought a trustee to replace
management, saying that Augusta management used funds from the
apartment to pay debts of Warner family members. Turner & Johns,
PLLC represents the Chapter 11 trustee.
AWAL BANK: Court OKs Schedule Modification, Denies Case Dismissal
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
has ruled on certain motions of Awal Bank, BSC and HSBC Bank USA,
National Association.
(a) The Debtors' motion to modify the requirements of Section
521(a) of the Bankruptcy Code to permit the filing of
modified schedules of assets and liabilities, statement of
financial affairs, and monthly operating reports is
granted.
The Court found that good cause exists to modify the
Debtor's obligations under Section 521(a) and to permit
Charles Russell, LLP, as duly authorized foreign
representative and external administrator of the Debtor,
to file the Schedules, Statement, and Monthly Operating
Reports without including information about the amount of
each creditor's claim, and in substantially the same form
as they have been filed.
The Court also found that good cause exists to modify the
Debtor's obligations under Section 1107(a) of the
Bankruptcy Code and to permit the External Administrator
to file the Monthly Operating Reports in substantially the
same forms as they have been filed, subject to
reconsideration for cause shown;
(b) HSBC Bank USA's motion for an order dismissing the Chapter
11 case, filed on Feb. 2, 2011, is denied without
prejudice to renewal for cause shown; and
(c) HSBC Bank USA's motion to dismiss adversary proceeding,
filed on Mar. 24, 2011, is denied.
About Awal Bank
Awal Bank BSC is a Bahrain lender owned by Saudi Arabian Saad
Group. Awal Bank was principally an investment company that
provides wholesale banking services in Bahrain including the
acceptance of deposits and the making of loans.
Awal Bank was taken into administration by the Central Bank of
Bahrain on July 30, 2009, after defaulting on loans. U.S. lawyers
for the bank said last year that under Bahrain law, Awal's
administrator had two years to decide if the bank should liquidate
or be returned to management and shareholders.
Stewart Hey, Esq., at Charles Russell LLP, as external
administrator of Awal Bank, made a voluntary petition under
Chapter 15 of the U.S. Bankruptcy Code for the bank (Bankr.
S.D.N.Y. Case No. 09-15923) on Sept. 30, 2009, following the
administration proceedings.
In 2010, the bank began experiencing a liquidity squeeze brought,
in part, by the global economic crisis. The bank ceased to
operate as a going concern since it was place into administration.
Awal Bank filed a Chapter 11 petition (Bankr. S.D.N.Y. Case
No. 10-15518) in Manhattan on Oct. 21, 2010. The Debtor
estimated $50 million to $100 million and debts in excess of
$1 billion as of the petition date.
The External Administrator is represented in the U.S. proceedings
by lawyers at Brown Rudnick LLP.
Counsel to HSBC Bank USA, National Association, are:
William J. Brown, Esq.
David J. McNamara, Esq.
Allan L. Hill, Esq.
3400 HSBC Center
Buffalo, NY 14203-2887
Tel: (716) 847-7089
E-mail: wbrown@phillipslytle.com
dmcnamara@phillipslytle.com
ahill@phillipslytle.com
BEAUTY CENTER: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Beauty Center, Inc.
3555 W. Reno Avenue, Suite G
Las Vegas, NV 89118
Bankruptcy Case No.: 11-23404
Chapter 11 Petition Date: August 24, 2011
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Bruce T. Beesley
Debtor's Counsel: Timothy S. Cory, Esq.
TIMOTHY S. CORY & ASSOCIATES
8831 W. Sahara Ave.
Lakes Business Park
Las Vegas, NV 89117
Tel: (702) 388-1996
E-mail: tim.cory@corylaw.us
Estimated Assets: $100,001 to $500,000
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/nvb11-23404.pdf
The petition was signed by Patrick Munson, chief executive
officer.
BERKLINE/BENCHCRAFT: Plans to Resurrect Furniture Product Line
--------------------------------------------------------------
Gary Evans at Furniture Today reports that Ashley Furniture plans
to resurrect the Berkline/BenchCraft line of furniture products,
reintroducing it under its current name but as a member of the
Ashley stable of companies.
According to the report, Ashley acquired the intellectual
properties of Berkline/BenchCraft earlier this month for
$6.07 million in a bankruptcy court bidding process. The
Company's bid topped those from others, including Best Home
Furnishings and Li & Fung, an international development and
distribution company based in Hong Kong.
The report notes Ashley's initial "stalking horse" bid for
Berkline/BenchCraft was $850,000.
About Berkline/Benchcraft
Berkline/BenchCraft Holdings LLC, along with five subsidiaries,
filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-11369)
so the couch maker that specializes in home theaters can
liquidate.
Berkline/Benchcraft is a unit of turnaround specialist Sun Capital
Partners Inc. Until their decision to liquidate, the Debtors,
with their "Berkline" and "Benchcraft" brands, held a number five
market share and had a growing presence in home theater seating
including reclining sofas, love seats, and sectionals.
In February, Berkline hired FTI Consulting Inc. to help it
restructure and find a buyer. When Berkline was unable to sell
itself, the Company decided to liquidate and file for bankruptcy.
Berkline has a $140 million second-lien loan that is mostly owed
to its parent, SCSF Furniture LLC, which isn't in bankruptcy. A
total of $15 million is owed on a first lien term loan and
revolver from lenders led by Wells Fargo Capital Finance, LLC, as
administrative agent. The Debtors also owe $12.5 million under
unsecured subordinated notes.
Kenneth J. Enos, Esq., and Michael R. Nestor, Esq., at Young,
Conaway, Stargatt & Taylor, represent the Debtors in the
Chapter 11 case. Attorneys at Morgan, Lewis & Bockius LLP serve
as co-counsel. FTI Consulting is the advisor. Epiq Bankruptcy
Solutions is the claims and notice agent.
BERNARD L. MADOFF: Trustee Seeks $20.6 Million from Delta Bank
--------------------------------------------------------------
Dan Rivoli at Bankruptcy Law360 reports that Irving H. Picard, the
trustee for Bernie Madoff's firm, hit Delta National Bank and
Trust Co. with a lawsuit in New York bankruptcy court Thursday to
recover at least $20.6 million the bank allegedly received from a
feeder fund that invested with the Ponzi schemer.
One of the Madoff firm's largest feeder funds, Fairfield Sentry
Ltd., had received about $3 billion of "customer property" from
the firm in a six-year period before his 2008 arrest, according to
the suit.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$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 July 15, 2011, a total of US$6.88 billion in claims by
investors has been allowed, with US$794.9 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.
BESO LLC: Eva Longoria Wins Stay in Dispute Over Proceeds
---------------------------------------------------------
Jonathan Randles at Bankruptcy Law360 reports that Los Angeles
County Judge Holly E. Kendig on Thursday granted Eva Longoria's
request to stay a business partner's lawsuit accusing the
"Desperate Housewives" star of collecting unlawful interest on a
$1 million loan for a now bankrupt Las Vegas restaurant and
nightclub.
Law360 relates that Judge Kendig said the suit would be halted
until after Beso LLC's Chapter 11 bankruptcy proceedings have
concluded. The suit was lodged in January four days after the
company filed for bankruptcy protection on behalf of Beso by
former partner Mali Nachum.
About Beso LLC
Beso, LLC, co-owned by "Desperate Housewives" star Eva Longoria,
filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case
No. 11-10202) on Jan. 6, 2011. Beso, LLC, runs a Las Vegas
restaurant that opened two years ago. It disclosed assets of
$2,512,007 and liabilities of $5,680,339 in the schedules attached
to the Chapter 11 petition. Lenard E. Schwartzer, Esq., at
Schwartzer & McPherson Law Firm, in Las Vegas, Nevada, serves as
counsel to the Debtor. The petition was signed by William M.
Braden, manager.
BIO-KEY INTERNATIONAL: Posts $549,200 Net Loss in Second Quarter
----------------------------------------------------------------
BIO-key International, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $549,224 on $984,153 of revenues for
the three months ended June 30, 2011, compared with net income of
$234,766 on $1.43 million of revenues for the same period last
year.
The Company reported a net loss of $354,154 on $2.39 million of
revenues for the six months ended June 30, 2011, compared with net
income of $1.24 million on $2.41 million of revenues for the same
period of 2010.
The Company's balance sheet at June 30, 2011, showed $2.16 million
in total assets, $1.90 million in total liabilities, and
stockholders' equity of $251,510.
As reported in the TCR on March 29, 2011, Rotenberg Meril Solomon
Bertiger & Guttilla, P.C., in Saddle Brook, New Jersey, expressed
substantial doubt about BIO-key's ability to continue as a going
concern, following the Company's 2010 results. The independent
auditors noted that the Company has suffered substantial net
losses in recent years, and has an accumulated deficit at Dec. 31,
2010.
A copy of the Form 10-Q is available at http://is.gd/S5VM4p
Wall, N.J.-based BIO-key International, Inc. (OTC BB: BKYI)
-- http://www.bio-key.com/-- develops and delivers advanced
identification solutions to commercial and government enterprises,
integrators, and custom application developers.
BIOLASE TECHNOLOGY: Amends Form S-3 for 2.3MM Shares Offering
-------------------------------------------------------------
Biolase Technology, Inc., filed with the U.S. Securities and
Exchange Commission Amendment No. 1 to Form S-3 registration
statement relating to the disposition from time to time of up to
2,348,920 shares of the Company's common stock, which are held or
may be held Anson Investments Master Fund LP, Deerfield Special
Situations Fund International, Limited, et al.
The selling stockholders are offering and selling up to 1,625,947
shares of the Company's common stock currently owned by those
selling stockholders as well as up to 722,973 shares of the
Company's common stock that may be acquired by those selling
stockholders upon exercise of outstanding warrants. The warrants
are exercisable on or after Dec. 29, 2011, at an exercise price of
$6.50 per share of common stock.
The Company is not selling any shares of common stock or warrants
in this offering and, therefore will not receive any proceeds from
this offering by the selling stockholders. However, the Company
will receive the proceeds from the exercise of the warrants by the
selling stockholders, if any, to the extent that the warrants are
not exercised on a cashless or net basis.
The Company's common stock is listed on the NASDAQ Capital Market
under the symbol "BLTI." On Aug. 17, 2011, the last reported sale
price of the Company's common stock on the NASDAQ Capital Market
was $2.84. The Company's warrants are not and will not be listed
for trading on any exchange.
The Company amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the
Company will file a further amendment which specifically states
that this Registration Statement will thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933 or
until the Registration Statement will become effective on such
date as the Securities and Exchange Commission, acting pursuant to
said Section 8(a), may determine.
A full-text copy of the amended prospectus is available at no
charge at http://is.gd/7GqWNF
About BIOLASE Technology
Irvine, Calif.-based BIOLASE Technology, Inc. (NASDAQ: BLTI)
-- http://www.biolase.com/-- is a dental laser company. The
Company develops, manufactures and markets Waterlase technology
and lasers and related products that advance the practice of
dentistry and medicine.
The Company reported a net loss of $12.02 million on
$24.58 million of products and services revenues for the year
ended Dec. 31, 2010, compared with a net loss of $2.95 million on
$42.14 million of products and services revenues during the prior
year.
The Company's balance sheet at June 30, 2011, showed
$29.91 million in total assets, $15 million in total liabilities,
and $14.91 million in total stockholders' equity.
BDO USA, LLP, raised substantial doubt about the Company's ability
to continue as a going concern, following the 2010 financial
results. The accounting firm noted that the Company has suffered
recurring losses from operations, has had declining revenues and
has a working capital deficit at Dec. 31, 2010.
BIOLIFE SOLUTIONS: Daphne Taylor Appointed CFO
----------------------------------------------
The Board of Directors appointed as Biolife Solutions, Inc.'s Vice
President, Finance and Administration and Chief Financial Officer,
Daphne L. Taylor, who has been acting as the Company's Corporate
Controller since March of 2011.
Ms. Taylor has extensive experience in accounting and financial
matters. From 2005 to 2009, she served as Vice President, Chief
Accounting Officer and Corporate Controller at Cardiac Science
Corporation, a publicly held medical device company. From 2001 to
2005 she served as Chief Compliance Officer and Corporate
Controller at LookSmart, Ltd., a publicly held software and
technology company. Prior to 2001, Ms. Taylor held corporate
controller positions at SpeedTrak Communications and ViroLogic,
and accounting positions at companies including Core-Mark
International, Pacific Telesis Group and Coopers & Lybrand. Ms.
Taylor is a Certified Public Accountant and earned a Bachelor of
Arts, Management and Accounting, from Sonoma State University.
In connection with Ms. Taylor's appointment as an officer of the
Company, on Aug. 17, 2011, BioLife Solutions, Inc., entered into
an employment agreement with Ms. Taylor, which automatically
renews for successive one year periods in the event either party
does not send the other a "termination notice" no less than 90
days prior to the expiration of the initial term or any subsequent
term. Pursuant to this agreement, Ms. Taylor initially will
receive an annual salary of $150,000, subject to periodic review
and adjustment by the Compensation Committee of the Company's
Board of Directors. Ms. Taylor also will have the opportunity to
obtain an annual bonus, targeted at $10% of her base salary, upon
the attainment of specified goals. Upon signing the employment
agreement, the Company granted Ms. Taylor a ten-year incentive
stock option to purchase 500,000 shares of common stock of the
Company at $0.063 per share, which vests 25% on the first
anniversary of the date of the grant and one-thirty sixth of the
remaining balance thereof in each of the ensuing 36 months
following the first anniversary date of the grant. The employment
agreement also provides for customary restrictive covenants,
including covenants prohibiting Ms. Taylor from disclosing certain
confidential information of the Company or competing with the
Company, and that if, in connection with a "change in control,"
Ms. Taylor's employment is terminated without "Cause" or she
resigns for "Good Reason," she will be entitled to the continued
payment of salary for 6 months following the change in control
event.
About BioLife Solutions
Bothell, Washington-based BioLife Solutions, Inc. develops and
markets patented hypothermic storage and cryopreservation
solutions for cells, tissues, and organs, and provides contracted
research and development and consulting services related to
optimization of biopreservation processes and protocols.
The Company reported a net loss of $1.98 million on $2.08 million
of total revenue for the year ended Dec. 31, 2010, compared with a
net loss of $2.77 million on $1.58 million of total revenue during
the prior year.
The Company's balance sheet at June 30, 2011, showed $1.47 million
in total assets, $11.95 million in total liabilities, and a
$10.48 million total stockholders' deficiency.
The Company has been unable to generate sufficient income from
operations in order to meet its operating needs and has an
accumulated deficit of approximately $53 million at June 30, 2011.
This raises substantial doubt about the Company's ability to
continue as a going concern.
Peterson Sullivan LLP, in Seattle, Wash., expressed substantial
doubt about the Company's ability to continue as a going concern,
following the 2010 financial results. The accounting firm noted
that the Company has been unable to generate sufficient income
from operations in order to meet its operating needs and has an
accumulated deficit of approximately $52 million at Dec. 31, 2010.
BLISH LLP: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: Blish, LLP
13200 South 68th Street
Roca, NE 68430
Bankruptcy Case No.: 11-42241
Chapter 11 Petition Date: August 23, 2011
Court: United States Bankruptcy Court
District of Nebraska (Lincoln Office)
Debtor's Counsel: Susan M. Napolitano, Esq.
HOPPE, HARNER, VOGT & BARROWS, LLP
5631 S. 48th Street, Suite 220
Lincoln, NE 68516
Tel: (402) 328-8100
Fax: (402) 328-8104
E-mail: susan@thehoppelawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Ron Smith, partner.
BLUEKNIGHT ENERGY: To Construct New Crude Oil Terminal in Texas
---------------------------------------------------------------
Blueknight Energy Partners, L.P., and Vitol Midstream, LLC,
announced they have entered into a Consulting Services Agreement
and an Operating and Maintenance Agreement for the construction
and operation of a new crude oil terminal in Midland, Texas.
Pursuant to the Consulting Services Agreement, BKEP Pipeline will
coordinate and supervise the design, engineering and construction
of the new terminal for Vitol Midstream. In return for those
consulting services, Vitol Midstream will pay BKEP Pipeline a
$600,000 fee that is payable in twelve monthly installments of
$50,000 each. In addition, Vitol Midstream will reimburse BKEP
Pipeline for any actual out-of-pocket expenses incurred by BKEP
Pipeline on Vitol Midstream's behalf for items such as engineering
fees, cost of inspection services, cost of survey work, permitting
fees and right-of-way payments.
Pursuant to the Operating and Maintenance Agreement, BKEP Pipeline
will operate and maintain the new terminal after its construction.
In return for those services, Vitol Midstream will pay BKEP
Pipeline a monthly fee of approximately $54,000, which is subject
to adjustment for inflation. The parties have also agreed to
indemnify each other for certain damages and claims as set forth
in the Operating and Maintenance Agreement.
Vitol Midstream has acquired 90 acres in Midland County where it
will construct a new storage terminal and unloading stations for
trucks. The Vitol Midstream site will be connected by pipeline to
the major crude oil terminals in Midland. Vitol Midstream has
secured pipeline connectivity agreements with Centurion Pipeline
L.P. and Enterprise Crude Pipeline LLC. These agreements will
allow Vitol Midstream to expand along with market demands.
The initial construction phase will consist of 1,000,000 barrels
of crude oil storage with six truck unloading stations. BKEP will
coordinate and supervise the engineering and construction stages
of the design for Vitol Midstream. Additionally, BKEP and Vitol
Midstream have also entered into an agreement for BKEP to operate
and maintain the new facility and all connecting pipelines.
"Vitol's new West Texas terminal reflects our continuing
commitment to build state-of-the-art facilities in strategic
locations in support of our customers' crude oil supply and
logistical needs," said Mike Loya, President of Vitol Inc., parent
of Vitol Midstream LLC.
Joe Simon, Vice President of Vitol Inc.'s crude oil marketing
division added, "West Texas - New Mexico is a strategic region for
our crude oil marketing business. The Midland terminal will
significantly increase our ability to receive barrels from our
customers' rapidly increasing production. The truck facilities
have been specifically designed to expedite truck deliveries.
With this investment, Vitol is making a long-term commitment to
the region."
BKEP will operate Vitol Midstream's truck receipt and crude oil
movements from BKEP's central control facility in Cushing, Okla.
BKEP personnel will also provide on-site operating and maintenance
services. Mike Prince, BKEP's Vice President for Business
Development, commented, "This transaction is part of our business
development plan to facilitate the specific transportation and
storage needs of crude oil producers. The Midland terminal
highlights Blueknight as an integrated midstream service company
capable of developing unique solutions."
A full-text copy of the Consulting Services Agreement is available
for free at http://is.gd/1U8bRR
A full-text copy of the Operating and Maintenance Agreement is
available for free at http://is.gd/3M7G81
About Blueknight Energy
Blueknight Energy Partners, L.P. (Pink Sheets: BKEP)
-- http://www.bkep.com/-- provides integrated terminalling,
storage, processing, gathering and transportation services for
companies engaged in the production, distribution and marketing of
crude oil and asphalt product. It provides services for the
customers, and its only inventory consists of pipeline linefill
and tank bottoms necessary to operate the assets. It has three
operating segments: crude oil terminalling and storage services,
crude oil gathering and transportation services, and asphalt
services.
The Company reported a net loss of $23.79 million on
$152.62 million of total revenue for the year ended Dec. 31, 2010,
compared with a net loss of $16.50 million on $156.77 million of
total revenue during the prior year.
The Company's balance sheet at June 30, 2011, showed
$327.44 million in total assets, $372.97 million in total
liabilities, and a $45.52 million total partners' deficit.
BON SECOUR: U.S. Trustee Moves to Dismiss Chapter 11 Case
---------------------------------------------------------
William T. Neary, the U.S. Trustee for Region 6, moves the U.S.
Bankruptcy Court for the Northern District of Texas to dismiss the
Chapter 11 case of Bon Secour Partners, LLC under Section 1112(b)
of the Bankruptcy Code.
The U.S. Trustee notes that per Schedule B, the Debtor's only
personal property at the time of its bankruptcy filing was $3 in a
bank account. The Debtor scheduled $12,757,731 in total debts, of
which $12,444,905 is secured; $9,340 is priority unsecured debt;
and $303,485 is general unsecured debt.
The Debtor filed its disclosure statement and plan of
reorganization on Feb. 5, 2010, but no hearing for approval of the
disclosure statement was ever set. On Jun. 21, 2010, the Court
approved a stipulation between the Debtor and its principal
secured lender, Hancock Bank, wherein the parties restructured the
terms of the secured note. As long as the Debtor makes payments
on the promissory note, it is able to retain ownership of its
property.
The U.S. Trustee notes that the Debtor owns 16.45 acres of land in
Gulf Shore, Alabama, which is valued at $16,444,000. On Jan. 5,
2010, the Court entered an agreed order finding that the Debtor is
a single asset real estate case for purposes of Section 362(d)(3)
of the Bankruptcy Code.
According to the U.S. Trustee, the Debtor appears to be delinquent
on its payments to Hancock Bank. The Debtor's June 2011 operating
report shows that it owes $261,972 in postpetition arrearages to
Hancock Bank. Per its June 2011 operating report, the Debtor only
had $115 as of Jun. 30, 2011.
The Debtor's exclusivity expired on Jul. 30, 2010.
With the exception of the filed operating reports, the Debtor's
docket shows no activity since June 2010.
The facts evidence continuing diminution with no likelihood of
reorganization, the U.S. Trustee says. While the Debtor filed a
plan of reorganization in early 2010, it has not moved forward in
confirming this plan. The Debtor's postpetition liabilities total
$261,972 per its June 2011 operating report and the Debtor reports
only $115 in cash, he points out.
Cause exists to dismiss the case, the U.S. Trustee asserts. He
also requests that the Debtor be ordered to pay any outstanding
quarterly fees within 10 days of entry of an order dismissing the
case.
Dallas, Texas-based Bon Secour Partners, LLC, filed for Chapter 11
bankruptcy protection (Bankr. N.D. Tex. Case No. 09-37580) on Nov.
3, 2009. Gerrit M. Pronske, Esq., at Pronske & Patel, P.C.,
serves as the Debtor's bankruptcy counsel. The Debtor estimated
assets and debts at $10 million to $50 million. No trustee or
committee of unsecured creditors has been appointed.
BOUNDARY BAY: Seeks to Hire Joel M. Pores as Special Counsel
------------------------------------------------------------
Boundary Bay Capital, LLC, seeks authority from the U.S.
Bankruptcy Court for the Central District of California to employ
The Law Office of Joel M. Pores as its special counsel.
The Debtor is one of several plaintiffs in an action for legal
malpractice that has been filed against "former counsel." Former
Counsel advised the Plaintiffs with respect to the preparation of
an offering Circular. The Action relates, in part, to certain
alleged non-disclosures in the Offering Circular, which have lead
to the Rafael Action and to other potential liability, including
the Department of Corporations action.
The Debtor relates that the Rafael Action involves claims not
stayed in this case, alleging entitlement to a $100,000 investment
refund plus punitive damages. The Chapter 11 Rafael Claim is for
$1,000,000.
The salient terms of the Legal malpractice Retainer Agreement
agreed to by the Plaintiffs and the Special Counsel, subject to
Court approval, include:
* Stage One: The Plaintiffs will pay a flat fee of $25,000
to Special Counsel, payable $15,000 upon execution of the
Agreement and $10,000 upon entry of an order approving the
employment, in connection with the Special Counsel
communicating with Former Counsel asserting a legal
malpractice claim and inviting the Former Counsel to
participate in the settlement of the Rafael Action. The
Special Counsel will also seek reimbursement of fees
incurred in that action and the DOC Action;
* Stage Two: The Plaintiffs will pay an additional flat fee
of $20,000 to the Special Counsel upon the confirmation of
an agreement by the Former Counsel to participate in a
settlement meeting or teleconference in connection with
the Rafael Action. Should the matter settle with
contribution by Former Counsel, the Plaintiffs will pay
Special Counsel a contingency fee of 15% of any payment by
the Former Counsel;
* Stage Three: In the event there is no agreement to
participate in a settlement meeting or should there be no
tolling agreement before June 8, 2011, or no settlement
after a settlement meeting, the Plaintiffs will
immediately pay Special Counsel a flat fee of $35,000. In
addition, Special Counsel will be entitled to 25% of any
gross recovery of any settlement, arbitration, or trial of
the Claims;
* Costs: Special Counsel will be reimbursed its actual, out-
of-pocket expenses. Costs, exclusive of arbitration
provider fees, are estimated to being in the range of
$50,000 to $70,000, minimum;
* Debtor's Contribution: The Debtor's share of the Special
Counsel's $60,000 flat fee charge is $7,500. IN addition,
the Debtor will pay 12.5% of Special Counsel's actual,
out-of-pocket expenses; and
* Bankruptcy Court Approval of Compensation: Special Counsel
will apply to the Court for approval of final
compensation, at which time Special Counsel's compensation
can be reviewed under the standard set forth in Section
328 of the Bankruptcy Code.
According to the Debtor, the short delay in submitting this
application is due to the need to finalize certain details of the
Special Counsel's employment.
The Debtor discloses that, pursuant to the Agreement, Special
Counsel will perform legal services on behalf of certain of the
Debtor's affiliates. The Debtor and the Affiliates each (i)
consent to the Special Counsel representing the others, (ii) waive
any and all conflicts of interest, which may exist or arise by
reason of Special Counsel's representation, and (iii) agree that
failure of the Debtor or any of the Affiliates to agree on any
issue may constitute cause for Special Counsel to withdraw.
Based upon the statement filed by Joel M. Pores, the Debtor
believes that the Special Counsel is disinterested within the
meaning of Section 327(a) of the Bankruptcy Code.
About Boundary Bay
Boundary Bay Capital, LLC, is a California limited liability
company with its headquarters in Irvine, California. The Company
was in the business of making loans secured by liens on real
property and notes secured by other secured notes (which, in turn,
are secured by liens or real property). The Company also owns
some real property through foreclosure.
Boundary Bay Capital filed for Chapter 11 bankruptcy protection
(Bankr. C.D. Calif. Case No. 11-14298) on March 28, 2011. Evan D.
Smiley, Esq., and Hutchison B. Meltzer, Esq., at Weiland, Golden,
Smiley, Wang Ekvall & Strok, LLP, in Costa Mesa, Calif., serve as
the Debtor's bankruptcy counsel.
Affiliate Cartwright Properties, LLC, filed a separate Chapter 11
petition (Bankr. C.D. Calif. Case No. 10-17823) on June 9, 2010.
In its schedules, the Debtor disclosed $15,876,118 in assets
and $54,448,485 in liabilities.
BURLINGTON COAT: Bank Debt Trades at 7% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Burlington Coat
Factory Warehouse Corp. is a borrower traded in the secondary
market at 92.83 cents-on-the-dollar during the week ended Friday,
Aug. 26, 2011, a drop of 0.98 percentage points from the previous
week according to data compiled by Loan Pricing Corp. and reported
in The Wall Street Journal. The Company pays 475 basis points
above LIBOR to borrow under the facility. The bank loan matures
on Feb. 18, 2017, and carries Moody's 'B3' rating and Standard &
Poor's 'B-' rating. The loan is one of the biggest gainers and
losers among 70 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday.
Burlington Coat Factory Warehouse Corp. --
http://www.burlingtoncoatfactory.com/-- operates about 425 no-
frills retail stores offering off-price current, brand-name
clothing in about 45 states and Puerto Rico. Although it is one
of the nation's largest coat sellers, the stores also sells
children's apparel, bath items, furniture, gifts, jewelry, linens,
and shoes. Sister chains include a pair of higher-priced Cohoes
Fashions shops, about 15 MJM Designer Shoes stores, and a single
Super Baby Depot. Founded in 1972, Burlington is owned by
affiliates of buyout firm Bain Capital.
CAPITOL CITY: 10 Directors Elected at Annual Meeting
----------------------------------------------------
The annual meeting of the security holders of Capitol City
Bancshares, Inc., was held on Aug. 12, 2011. Security holders
elected 12 persons as directors of the Company, namely:
(1) George G. Andrews;
(2) Charles W. Harrison;
(3) Roy W. Sweat;
(4) William Thomas;
(5) Cordy T. Vivian;
(6) Shelby R. Wilkes;
(7) Tarlee W. Brown;
(8) Pratape Singh;
(9) Gloria Campbell D'Hue; and
(10) Bob Holmes.
The shareholders approved the advisory (non-binding) vote on
executive compensation and to hold such advisory vote annually.
About Capitol City
Atlanta, Ga.-based Capitol City Bancshares, Inc., was incorporated
under the laws of the State of Georgia on April 14, 1998, for the
purpose of serving as a bank holding company for Capitol City Bank
and Trust Company. The Bank operates a full-service banking
business and engages in a broad range of commercial banking
activities, including accepting customary types of demand and
timed deposits, making individual, consumer, commercial, and
installment loans, money transfers, safe deposit services, and
making investments in U.S. government and municipal securities.
The Bank serves the residents of the City of Atlanta and Fulton,
DeKalb, Chatham, Richmond and Dougherty Counties.
As reported in TCR on April 26, 2011, Nichols, Cauley &
Associates, LLC, in Atlanta, Georgia, expressed substantial doubt
about Capitol City Bancshares' ability to continue as a going
concern, following the Company's 2010 results. The independent
auditors noted that the Company the Company is operating under
regulatory orders to, among other items, increase capital and
maintain certain levels of minimum capital. "As of Dec. 31, 2010,
the Company was not in compliance with these capital requirements.
In addition to its deteriorating capital position, the Company has
suffered significant losses related to nonperforming assets, has
experienced declining levels of liquid assets, and has significant
maturities of liabilities within the next twelve months."
CAPITOL CITY: Posts $158,500 Second Quarter Net Income
------------------------------------------------------
Capitol City Bancshares, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting
net income of $158,585 on $3.74 million of total interest income
for the three months ended June 30, 2011, compared with a net loss
of $505,361 on $3.62 million of total interest income for the same
period during the prior year.
For the six months ended June 30, 2011, the Company posted
$243,887 net income compared to a $434,618 net loss for the same
period last year.
The Company's balance sheet at June 30, 2011, showed
$302.90 million in total assets, $292.57 million in total
liabilities, and $10.32 million total stockholders' equity.
As reported in TCR on April 26, 2011, Nichols, Cauley &
Associates, LLC, in Atlanta, Georgia, expressed substantial doubt
about Capitol City Bancshares' ability to continue as a going
concern, following the Company's 2010 results. The independent
auditors noted that the Company the Company is operating under
regulatory orders to, among other items, increase capital and
maintain certain levels of minimum capital. "As of Dec. 31, 2010,
the Company was not in compliance with these capital requirements.
In addition to its deteriorating capital position, the Company has
suffered significant losses related to nonperforming assets, has
experienced declining levels of liquid assets, and has significant
maturities of liabilities within the next twelve months."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/N6O9uc
About Capitol City
Atlanta, Ga.-based Capitol City Bancshares, Inc., was incorporated
under the laws of the State of Georgia on April 14, 1998, for the
purpose of serving as a bank holding company for Capitol City Bank
and Trust Company. The Bank operates a full-service banking
business and engages in a broad range of commercial banking
activities, including accepting customary types of demand and
timed deposits, making individual, consumer, commercial, and
installment loans, money transfers, safe deposit services, and
making investments in U.S. government and municipal securities.
The Bank serves the residents of the City of Atlanta and Fulton,
DeKalb, Chatham, Richmond and Dougherty Counties.
CARDOBA-RANCH: Files for Chapter 11 Bankruptcy Protection
---------------------------------------------------------
Michael Sasso at the Tampa Tribune reports that Cordoba-Ranch
Development LLC, the developer of Cordoba Ranch, filed for Chapter
11 bankruptcy protection in Tampa, Florida.
According to the report, the Company estimated assets of
$10 million to $50 million and liabilities in the same range. Its
biggest creditor is the Federal Deposit Insurance Corp., which is
the receiver for the failed Silverton Bank.
The report says Cordoba Ranch was planned as an equestrian
community with a mix of horse stables and home sites located
roughly between Livingston Avenue and Interstate 275. However,
the Cordoba Ranch Community Development District filed a
foreclosure lawsuit against the developer in 2009, after the
developer failed to make a payment on a special assessment.
The Tampa Tribune says the developer missed some property tax
payments, and the Hillsborough County Clerk was scheduled to hold
a tax deed sale on the property Thursday. A bidder at the sale
might have obtained the property essentially by paying off the
back taxes.
Shortly before the tax deed sale started, a representative of
Cordoba Ranch alerted the clerk that the developer had filed for
bankruptcy protection, notes Mr. Sasso.
CAREMORE HOLDINGS: S&P Lifts Counterparty Credit Rating to 'BB+'
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its counterparty credit
rating on CareMore Holdings Inc. to 'BB+ from 'B+'. "At the same
time, we removed the rating from CreditWatch with positive
implications and assigned a positive outlook. Subsequently, we
withdrew the rating at the company's request," S&P related.
The rating actions follow WellPoint Inc.'s completed acquisition
of CareMore. "CareMore will now operate as a wholly owned division
of WellPoint. We withdrew the senior debt rating in connection
with the paydown of related outstanding debt," S&P said.
"On June 8, we placed the ratings on CareMore on CreditWatch
positive after WellPoint announced its intent to acquire CareMore.
The upgrade reflects CareMore's strategic status to the WellPoint
enterprise based on CareMore's demonstrated competency in the
senior HMO market," said Standard & Poor's credit analyst Ferris
Joanis. "We expect the transaction to enable WellPoint to increase
its presence in this growing market segment."
CARLISLE APARTMENTS: Closes Exit Financing, Wants Case Dismissal
----------------------------------------------------------------
The Carlisle Apartments, L.P., asks the U.S. Bankruptcy Court for
the Southern District of New York to dismiss its Chapter 11 case.
The Debtor relates that on July 26, 2011, it closed on the NXT
Capital LLC financing and concomitant discounted pay off to
Compass Bank. RECAP XI - Fund A, L.P. and RECAP XI - Fund B,
L.P., the initial limited partners of Debtor, were required to
make an equity contribution in excess of $3 million to effectuate
the closing of the NXT Financing and Compass pay-off.
As a result of the closing, the Debtor's exit financing is already
in place, but becomes less expensive soon as Debtor exits
bankruptcy. The Debtor cannot affect or alter any of the terms of
the NXT Financing in a plan of reorganization, and the Court has
already entered an order to this effect. Furthermore, the NXT
Financing will be in default if the Debtor exits Chapter 11 and
does not pay its legitimate prepetition obligations in full within
30 days.
The Debtor notes that these considerations militate toward
dismissing the case rather than taking the time to propose
and confirm a plan. Indeed, all creditors are likely to be paid
sooner if the case is dismissed, and the Debtor will have more
liquidity the sooner the case is dismissed.
The Debtor set a Sept. 7, hearing on the requested case dismissal.
Objections, if any, are due Aug. 30, at 4:00 p.m.
About The Carlisle Apartments
The Carlisle Apartments, L.P., filed a Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 10-16805) in Manhattan on Dec. 27, 2010. The
Debtor estimated assets and debts of $10 million to $50 million as
of the Chapter 11 filing. Peter Alan Zisser, Esq., at Squire,
Sanders & Dempsey LLP, in New York, serves as bankruptcy counsel
to the Debtor. Gordian Group, LLC, is the investment banker and
financial advisor.
CARLISLE APARTMENTS: Has Until Sept. 7 to Propose Chapter 11 Plan
-----------------------------------------------------------------
The Hon. Stuart M. Bernstein of the U.S. Bankruptcy Court for the
Southern District of New York extended The Carlisle Apartments,
L.P.'s exclusive periods to file and solicit acceptances for the
proposed chapter 11 plan until Sept. 7, 2011, and Nov. 5,
respectively.
The Carlisle Apartments, L.P., filed a Chapter 11 bankruptcy
petition (Bankr. S.D.N.Y. Case No. 10-16805) in Manhattan, New
York, on Dec. 27, 2010. The Debtor estimated assets and debts of
$10 million to $50 million as of the Chapter 11 filing. Peter
Alan Zisser, Esq., at Squire, Sanders & Dempsey LLP, in New York,
serves as bankruptcy counsel to the Debtor. Gordian Group, LLC,
is the investment banker and financial advisor.
CARROLL GARDENS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Carroll Gardens Management
846 St. Johns Place
Brooklyn, NY 11216
Tel: (347) 291-1776
Bankruptcy Case No.: 11-47286
Chapter 11 Petition Date: August 23, 2011
Court: U.S. Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Joel B. Rosenthal
Debtor's Counsel: Richard Tanenbaum, Esq.
44 Court Street, Suite 917
Brooklyn, NY 11201
Tel: (347) 291-1776
Fax: (866) 413-9205
E-mail: nybankruptcy@gmail.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 Solomon Steinlauf, member.
CATASYS INC: Inks $650,000 SPA with Socius Capital
--------------------------------------------------
Catasys, Inc., on Aug. 17, 2011, entered into a Securities
Purchase Agreement with Socius Capital Group, LLC, an affiliate of
Terren S. Peizer, Chairman and chief executive officer of the
Company, for $650,000 and issued a secured convertible note and a
warrant to purchase an aggregate of 100,000,000 shares of the
Company's common stock, par value $0.0001 per share, at a purchase
price of $0.008 per share. The exercise price and number of
shares of Common Stock of the Warrant are subject to adjustment
for financings and share issuances below the initial exercise
price.
The Note matures on Nov. 17, 2011, and bears interest at an annual
rate of 12% payable in cash at maturity, prepayment or conversion.
The Note and any accrued interest are convertible at the holders'
option into Common Stock or the next financing the Company enters
into in an amount of at least $2,000,000. The conversion price
for the Note is equal to the lower of (i) $.0065 per share of
Common Stock, (ii) the lowest price per share of Common Stock into
which any security is convertible in any Qualified Financing, and
(iii) the volume weighted average price per share for the 10 days
following the effective date of the reverse split. The Note is
secured by all assets of the Company.
About Hythiam, Inc.
Based in Los Angeles, California, 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.
The Company's balance sheet at June 30, 2011, showed $3.48 million
in total assets, $4.13 million in total liabilities, and a
$652,000 total stockholders' deficit.
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.
CB HOLDING: Board Approves Transfer of License to Vignali
---------------------------------------------------------
Lisa-Marie Cashman at Peabody Patch reports that the Licensing
Board approved the transfer of the all-alcohol liquor license from
Bugaboo Creek to Vignali LLC, owned by developer Sal Palumbo.
According to the report, Palumbo and attorney David Ankeles
appeared before the Licensing Board to brief members on the
progress of the negotiated agreement between Vignali and Bugaboo
Creek. Mr. Ankeles disclosed he represents Simon Properties/North
Shore Mall on occasion and was able to negotiate an agreement to
purchase the license from Bugaboo Creek, formerly owned by CB
Holding Corp. of Mountainside, N.J. for an unnamed amount.
The report notes board member Chuck Holden disclosed he has
conducted business with Palumbo as a business owner and asked if
anyone had questions or opposed his ruling on this particular
public hearing. No one was in opposition and the hearing moved
forward.
The report notes Bugaboo Creek closed in Peabody and several other
Massachusetts locations in November 2010 after CB Holding filed
Chapter 11 in Federal Bankruptcy Court in New York. Since
discussions ensued, Mr. Ankeles informed the board that the court
approved the agreement and subsequent transfer of the license. A
copy of the judgment was submitted along with the application to
the board.
About CB Holding
New York-based CB Holding Corp. operated 20 Charlie Brown's
Steakhouse, 12 Bugaboo Creek Steak House, and seven The Office
Beer Bar and Grill restaurants when it filed for bankruptcy
protection. The Company closed 47 locations before filing for
Chapter 11.
CB Holding sold off its The Office restaurant chain and 12 Bugaboo
Creek stores in separate auctions. Villa Enterprises Ltd. won the
bidding for The Office chain with its $4.68 million. RRGK LLC
acquired the 12 Bugaboo Creek stores for $10.05 million, more than
tripling the $3.175 million first bid from an affiliate of
Landry's Restaurants Inc.
CB Holding and its affiliates filed for Chapter 11 bankruptcy
protection (Bankr. D. Del. Case No. 10-13683) on Nov. 17, 2010.
Joel H. Leviton, Esq., Stephen J. Gordon, Esq., Richard A.
Stieglitz Jr., Esq., and Maya Peleg, Esq., at Cahill Gordon &
Reindel LLP, in New York; and Mark D. Collins, Esq., Christopher
M. Samis, Esq., and Tyler D. Semmelman, Esq., at Richards, Layton
& Finger, P.A., in Wilmington, Delaware, assist the Debtors in
their restructuring effort. The Garden City Group, Inc., is the
Debtors' notice, claims and solicitation agent.
Jeffrey N. Pomerantz, Esq., at Pachulski Stang Ziehl & Jones LLP,
in Los Angeles; and Bradford J. Sandler, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, represent the
Official Committee of Unsecured Creditors. CB Holding estimated
its assets at $100 million to $500 million and debts at
$50 million to $100 million.
CIRCLE M: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Circle M Welding & Services, Inc.
P.O. Box 1069
Snyder, TX 79550
Bankruptcy Case No.: 11-50322
Chapter 11 Petition Date: August 24, 2011
Court: U.S. Bankruptcy Court
Northern District of Texas (Lubbock)
Judge: Robert L. Jones
Debtor's Counsel: Max Ralph Tarbox, Esq.
TARBOX LAW, P.C.
2301 Broadway
Lubbock, TX 79401
Tel: (806) 686-4448
E-mail: kathy@tarboxlaw.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/txnb11-50322.pdf
The petition was signed by James Michael Merrill, president/owner.
CIRTRAN CORP: Posts $4.7-Mil. Second Quarter Net Income
-------------------------------------------------------
Cirtran Corporation filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q reporting a net
income of $4.70 million on $685,625 of net sales for the three
months ended June 30, 2011, compared with a net loss of $721,952
on $2.31 million of net sales for the same period a year ago.
The Company also reported a net loss of $3.90 million on $2.08
million of net sales for the six months ended June 30, 2011,
compared with a net loss of $2.08 million on $4.09 million of net
sales for the same period during the prior year. The Company
reported a net loss of $4.95 million on $9.04 million of net sales
for the year ended Dec. 31, 2010, compared with a net loss of
$5.81 million on $9.73 million of net sales during the prior year.
The Company's balance sheet at June 30, 2011, showed $4.17 million
in total assets, $27.18 million in total liabilities, and a
$23.01 million total stockholders' deficit.
As reported by the TCR on April 21, 2011, Hansen, Barnett &
Maxwell, P.C., Salt Lake City, Utah, noted that the Company has an
accumulated deficit, has suffered losses from operations and has
negative working capital that raise substantial doubt about its
ability to continue as a going concern.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/uZSgwM
About CirTran Corporation
West Valley City, Utah-based CirTran Corporation (OTC BB: CIRC)
-- http://www.CirTran.com/-- markets and manufactures energy
drinks under the Playboy brand pursuant to a license agreement
with Playboy Enterprises, Inc. The Company also provides turnkey
manufacturing services and products using various high-tech
applications for electronics manufacturers in various industries.
CIRTRAN CORP: Three Directors Elected at Annual Meeting
-------------------------------------------------------
CirTran Corporation held its 2011 annual meeting of shareholders
at the offices of the Company in Salt Lake City, Utah. The
Shareholders elected three directors to serve until the next
annual meeting of the stockholders and until a successor has been
elected and qualified, namely: (1) Iehab Hawatmeh, (2) Fadi Nora
and (3) Kathryn Hollinger.
The Shareholders also approved:
(a) the ratification of the appointment of Hansen Barnett &
Maxwell, P.C., as the Company's independent registered
public accounting firm for the fiscal year ending Dec. 31,
2011;
(b) the amendment to the Company's Articles of Incorporation to
increase the authorized capital stock of the Company to
include 4,500,000,000 shares of Common Stock;
(c) the amended and restated Bylaws of the Corporation; and
(d) a proposal to adjourn the meeting if necessary to solicit
additional proxies in case sufficient shares were not
present to constitute a quorum or to vote on the proposals
presented.
Because the Company had sufficient shares present to constitute a
quorum and voting on the proposals, no adjournment of the meeting
was necessary.
About CirTran Corporation
West Valley City, Utah-based CirTran Corporation (OTC BB: CIRC)
-- http://www.CirTran.com/-- markets and manufactures energy
drinks under the Playboy brand pursuant to a license agreement
with Playboy Enterprises, Inc. The Company also provides turnkey
manufacturing services and products using various high-tech
applications for electronics manufacturers in various industries.
The Company reported a net loss of $4.95 million on $9.04 million
of net sales for the year ended Dec. 31, 2010, compared with a net
loss of $5.81 million on $9.73 million of net sales during the
prior year. The Company also reported a net loss of $3.90 million
on $2.08 million of net sales for the six months ended June 30,
2011, compared with a net loss of $2.08 million on $4.09 million
of net sales for the same period during the prior year.
The Company's balance sheet at June 30, 2011, showed $4.17 million
in total assets, $27.18 million in total liabilities, and a
$23.01 million total stockholders' deficit.
As reported by the TCR on April 21, 2011, Hansen, Barnett &
Maxwell, P.C., Salt Lake City, Utah, noted that the Company has an
accumulated deficit, has suffered losses from operations and has
negative working capital that raise substantial doubt about its
ability to continue as a going concern.
CITY NATIONAL: Delays Filing of Quarterly Report on Form 10-Q
-------------------------------------------------------------
City National Bancshares Corporation said it is unable to timely
file a Form 10-Q for the period ended June 30, 2011, with the
Securities and Exchange Commission because it has not completed
its consolidated financial statements and related disclosures for
the quarter ended June 30, 2011.
While the Company is working diligently to file its Form 10-Q and
anticipates filing its Form 10-Q in August 2011, the delay in the
preparation and anticipated filing of the Company's Form 10-K for
the year ending Dec. 31, 2010, and Form 10-Q for the quarter ended
March 31, 2011, in addition to other delays, resulted in the
Company requiring additional time to complete its consolidated
financial statements and related disclosures for the quarter ended
June 30, 2011, and for its independent auditors to complete their
required review of those financial statements and related
disclosures.
About City National Bancshares
Newark, N.J.-based City National Bancshares Corporation is a New
Jersey corporation incorporated on January 10, 1983. City
National Bank, a wholly-owned subsidiary of CNBC, is a national
banking association chartered in 1973 under the laws of the United
States of America and has one subsidiary, City National
Investments, Inc., an investment company which holds, maintains
and manages investment assets for CNB. CNB provides a wide range
of retail and commercial banking services through its retail
branch network, although the primary focus is on establishing
commercial and municipal relationships.
The Bank owns a 35.4% interest in a leasing company, along with
two other minority banks and has small investments in a Haitian
financial organization that provides microloan financing to
individuals in rural Haiti for business purposes and a mutual fund
which invests in targeted projects throughout the country that are
eligible for Community Reinvestment Act ("CRA") credit.
As reported by the TCR on June 1, 2011, KPMG LLP, in Short Hills,
New Jersey, expressed substantial doubt about City National
Bancshares' ability to continue as a going concern. The
independent auditors noted that the Company has suffered recurring
losses from operations and has entered into a consent order with
the Office of the Comptroller of the Currency.
The Company reported a net loss of $7.5 million on $12.8 million
of net interest income for 2010, compared with a net loss of
$7.8 million on $14.7 million of net interest income for 2009.
The Company's balance sheet at March 31, 2011, showed
$398.59 million in total assets, $377.51 million in total
liabilities, and $21.08 million in total stockholders' equity.
CLAIRE'S STORES: Bank Debt Trades at 15% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Claire's Stores,
Inc., is a borrower traded in the secondary market at 84.60 cents-
on-the-dollar during the week ended Friday, Aug. 26, 2011, a drop
of 0.40 percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 225 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 29, 2014, and
carries Moody's B3 rating and Standard & Poor's B rating. The
loan is one of the biggest gainers and losers among 70 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
About Claire's Stores
Claire's Stores, Inc. -- http://www.clairestores.com/-- operates
as a specialty retailer of fashion accessories and jewelry for
preteens and teenagers, as well as for young adults in North
America and internationally. It offers jewelry products that
comprise costume jewelry, earrings, and ear piercing services; and
accessories, including fashion accessories, hair ornaments,
handbags, and novelty items.
Based in Pembroke Pines, Florida, Claire's Stores operates under
two brands: Claire's(R), which operates worldwide and Icing(R),
which operates only in North America. As of Jan. 31, 2009,
Claire's Stores, Inc., operated 2,969 stores in North America and
Europe. Claire's Stores, Inc., also operates through its
subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a
50:50 joint venture with AEON, Co., Ltd. The Company also
franchises 198 stores in the Middle East, Turkey, Russia, South
Africa, Poland and Guatemala.
The Company's balance sheet at April 30, 2011, showed $2.86
billion in total assets, $249.40 million in total current
liabilities, $2.64 billion in long-term debt, and a stockholders'
deficit of $26.70 million. Claire's Stores carries 'Caa2'
corporate family and probability of default ratings, with
'positive' outlook, from Moody's Investors Service, and 'B-'
issuer credit ratings, with 'stable' outlook, from Standard &
Poor's.
* * *
Moody's Investors Service in December 2010 upgraded Claire's
Stores' ratings, including its Corporate Family Rating and
Probability of Default Rating, to 'Caa2' from 'Caa3'. The upgrade
reflects a decrease in Claire's probability of default given that
the company can now fully cover its interest expense. This is due
to earnings improvement from solid comparable store sales growth,
improved merchandise margins, and continued expense discipline.
Claire's Caa2 Probability of Default Rating reflects Moody's view
that although Claire's credit metrics have improved, they remain
very weak as a result of its heavy debt load. For the twelve
months ending Oct. 30, 2010, Claire's debt to EBITDA was very high
at 9.3 times.
CLEAN BURN: Converts Case to Chapter 7 Liquidation
--------------------------------------------------
Kris Bevill at Ethanol Producer Magazine reports Clean Burn Fuels
LLC filed for Chapter 11 bankruptcy earlier this year with the
hope of emerging successfully from the process and restarting the
plant by year's end, but was unable to achieve that goal and later
converted the filing to a Chapter 7 in order to liquidate the
Company's assets.
According to the report, a foreclosure auction was scheduled on
Aug. 24 for the 60 MMgy Clean Burn Fuels LLC corn-based ethanol
plant in Raeford, N.C. The starting bid has been set at $34.5
million.
The report says the ethanol plant initially came online last fall
but operated for a just a few months before shutting down and
never reached its full operating capacity. John Northen, an
attorney representing the plant, said mechanical issues prevented
the facility from reaching its full operational potential and that
those issues, combined with the high price of corn early in the
year, led to the decision to idle the plant and ultimately file
for bankruptcy.
Cape Fear Farm Credit, Clean Burn Fuels' primary lender, is
handling the foreclosure auction. CEO Michael Jackson said
numerous consultants have reviewed the facility and its equipment
and determined that re-starting the facility can be accomplished
without much difficulty.
About Clean Burn
Clean Burn Fuels LLC, a North Carolina limited liability company
founded in 2005, is the first company to produce ethanol in North
Carolina. It completed the construction of its ethanol plant in
August of 2010 and started producing and selling ethanol and dried
distillers grains with solubles (DDGS) shortly thereafter.
Clean Burn filed for Chapter 11 bankruptcy protection (Bankr.
M.D.N.C. Case No. 11-80562) on April 3, 2011. John A. Northen,
Esq., at Northen Blue, L.L.P., represents the Debtor.
In its schedules of assets and liabilities, the Company disclosed
$79,516,062 in assets and $79,218,681 in liabilities. The
schedules valued its ethanol plant at $72,000,000, securing at
$66,225,571 claim by a lender.
The Official Committee of Unsecured Creditors is represented by
Charles M. Ivey, III, Esq., at Ivey McClellan Gatton & Talcott,
LLP, in Greensboro, North Carolina.
COMMANDER PREMIER: Judge Allows City to Push Plan of Eviction
-------------------------------------------------------------
Scott Moyers at Southeast Missourian reports that a bankruptcy
judge in Texas granted a motion to allow the city of Cape
Girardeau, Missouri, to move forward with plans to evict Commander
Premier Aircraft Corp. from city-owned property at the airport.
According to the report, it was a win for city officials, who have
been fighting for months to get the airport manufacturer to vacate
a 52,000-square-foot hangar that Commander hadn't paid lease
payments on since 2007. City manager Scott Meyer said officials
were pleased with the ruling, but it's part of what could still be
a lengthy process.
The report says Commander's former company president, meanwhile,
saw the ruling as an opportunity to hurl salvos at the city for --
in his estimation -- failing to recognize what the airplane
manufacturer could have meant to a city with the general aviation
industry on the rebound.
The report notes the city had hired Mike Gazette, a lawyer based
in Tyler, who appeared in court before Judge Bill Parker. Judge
Parker sided with the city, lifting an automatic stay that
Commander had been granted as part of its Chapter 11 bankruptcy
filing.
Commander executives had sent an open letter to the Southeast
Missourian, addressed to Cape Girardeau residents. The letter,
written by Hartstone, chided citizens for urging city officials to
evict the company. The letter also asked for residents to contact
their elected officials to urge them to agree to a last-minute
proposal the company offered last week to get more time to find a
buyer.
City officials have maintained that Commander owes the city about
$1.2 million.
In his letter, Hartstone said that if a deal could not be reached
to give the Company more time to find an investor and ramp up
production, the Company would not be interested in staying in Cape
Girardeau.
Based in Tyler, Texas, Commander Premier Aircraft Corporation
filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tex. Case
No. 11-60548) on June 16, 2011. Jason R. Searcy, Esq., at Searcy
& Searcy P.C. Represents the Debtor. The Debtor estimated assets
of less than $50,000, and debts between $1 million and
$10 million.
COMMUNITY HEALTH: Bank Debt Trades at 9% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Community Health
Systems, Inc., is a borrower traded in the secondary market at
90.69 cents-on-the-dollar during the week ended Friday, Aug. 26,
2011, a drop of 0.56 percentage points from the previous week
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. The Company pays 225 basis points above
LIBOR to borrow under the facility. The bank loan matures on
July 25, 2014. The loan is one of the biggest gainers and losers
among 70 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Friday.
About Community Health
Based in Franklin, Tennessee, Community Health Systems, Inc. --
http://www.chs.net/-- is the largest publicly traded operator of
hospitals in the United States in terms of number of facilities
and net operating revenues. The company provides healthcare
services through these hospitals that it owns and operates in non-
urban and selected urban markets throughout the United States.
The company also owns and operates home health agencies, including
four home health agencies located in markets where it does not
operate a hospital. Through its wholly owned subsidiary, Quorum
Health Resources, LLC, the company provides management and
consulting services to non-affiliated general acute care hospitals
located throughout the United States.
As reported by the Troubled Company Reporter on Dec. 14, 2010,
Fitch Ratings has placed Community Health Systems, Inc.'s ratings
on Rating Watch Negative. Community's existing ratings are Issuer
Default Rating, at 'B'; Secured Bank Credit Facility, at 'BB/RR1';
and Senior Unsecured Notes, at 'B/RR4'. The ratings apply to
approximately $8.9 billion in debt outstanding as of Sept. 30,
2010. Community's ratings have been placed on Negative Watch
following the company's bid to acquire Tenet Healthcare Corp.
Fitch believes that should Community be successful in its bid to
acquire Tenet, it will add pressure to Community's credit profile.
Based on what is known about the terms of Community's bid for
Tenet, the transaction as currently contemplated could add roughly
$2.7 billion in debt to the consolidated capital structure. At
Sept. 30, 2010, Community's total debt-to-EBITDA equaled 5.1x, and
pro forma for the transaction Fitch believes debt of the
consolidated company could approach 5.8x EBITDA -- prior to the
realization of any potential operating synergies.
On June 15, 2011, Moody's confirmed the existing ratings of
Community Health Systems, Inc., including the B1 Corporate Family
and Probability of Default Ratings. The confirmation of the
ratings concludes the review for possible downgrade that was
initiated on Dec. 10, 2010. The outlook for the ratings is
negative. Moody's affirmed the company's Speculative Grade
Liquidity Rating at SGL-1 reflecting the expectation that the
company will continue to have very good liquidity. The conclusion
of the review follows the termination of the pursuit of the
acquisition of Tenet Healthcare Corporation that began with an
unsolicited offer in December 2010, which Moody's believes would
have resulted in a considerable increase in debt. "The negative
rating outlook reflects our concern around potential adverse
developments associated with the confluence of issues that
surfaced during the company's pursuit of Tenet," said Dean Diaz, a
Senior Credit Officer at Moody's. Moody's believes that these
issues, including a subpoena for documents from the SEC, an
ongoing investigation by the OIG and potential shareholder
litigation, increase the risk of an event that could lead to a
negative rating action.
COMPETITIVE TECHNOLOGIES: Posts $1.3MM Net Loss in June 30 Quarter
------------------------------------------------------------------
Competitive Technologies, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $1.3 million for the three months
ended June 30, 2011, compared with a net loss of $468,245 for the
three months ended July 31, 2010. Revenue from product sales was
$311,220 for the three months ended June 30, 2011, compared to
revenue from product sales of $1.0 million for the three months
ended July 31, 2010.
The Company reported a net loss of $1.3 million for the six months
ended June 30, 2011, compared with a net loss of $1.2 million for
the three months ended July 31, 2010. Revenue from product sales
was $2.1 million for the six months ended June 30, 2011, compared
to revenue from product sales of $1.6 million for the six months
ended July 31, 2010.
The Company's balance sheet at June 30, 2011, showed $5.27 million
in total assets, $5.29 million in total liabilities, all current,
and a stockholders' deficit of $16,629.
As reported in the Troubled Company Reporter on Nov. 2, 2010,
Mayer Hoffman McCann CPAs, in New York, expressed substantial
doubt about Competitive Technologies' ability to continue as a
going concern, following the Company's results for the fiscal year
ended July 31, 2010. The independent auditors noted that at
July 31, 2010, the Company has incurred operating losses since
fiscal year 2006.
A copy of the Form 10-Q is available at http://is.gd/dlyIpc
Fairfield, Conn.-based Competitive Technologies, Inc. (OTC QX:
CTTC) -- http://www.competitivetech.net/-- was established in
1968. The Company provides distribution, patent and technology
transfer, sales and licensing services focused on the needs of its
customers and matching those requirements with commercially viable
product or technology solutions. Sales of the Company's
Calmare(R) pain therapy medical device continue to be the major
source of revenue for the Company.
CONOLOG CORP: Michael Horn Appointed as Board Member
----------------------------------------------------
The Board of Directors of Conolog Corporation appointed Michael
Horn as a member of the Board. In connection with the
appointment, on Aug. 15, 2011, the Company entered into a Director
Agreement with Mr. Horn. The term of the Director Agreement is
from Aug. 15, 2011, up to the Company's next annual stockholders'
meeting. The Director Agreement may, at the option of the Board,
be automatically renewed on such date that Mr. Horn is re-elected
to the Board. Mr. Horn is not due any compensation under the
Director Agreement.
Mr. Horn, age 58, has over 30 years of experience in Information
Technology senior management. Mr. Horn served as the Managing and
Operating Partner of VAR Direction LLC, Inc., a management and
financial consulting firm, from 2002 through the present.
Mr. Horn served as Chief Executive Officer of AccountMate
Software, Division of Softline, N.A., a publisher of accounting
software, from 2001 to 2002. From 1980 through 2001, Mr. Horn was
the Chief Executive Officer of MIBAR Computer Services, a value
added reseller and developer of software. Mr. Horn is not
currently the director of another company.
There is no family relationship between Horn and any of the
Company's directors or officers.
About Conolog Corp.
Somerville, N.J.-based Conolog Corporation is in the business of
design, manufacturing and distribution of small electronic and
electromagnetic components and subassemblies for use in telephone,
radio and microwave transmissions and reception and other
communication areas. The Company's products are used for
transceiving various quantities, data and protective relaying
functions in industrial, utility and other markets. The Company's
customers include primarily industrial customers, which include
power companies located primarily throughout the United States,
and various branches of the military.
The Company's balance sheet at Jan. 31, 2011, showed $1.1 million
in total assets, $861,227 in total liabilities, and stockholders'
equity of $251,212.
As reported in the Troubled Company Reporter on Dec. 7, 2010,
WithumSmith+Brown, PC, in Somerville, New Jersey, expressed
substantial doubt about Conolog's ability to continue as a going
concern, following the Company's results for the fiscal year ended
July 31, 2010. The independent auditors noted that the Company
has had recurring losses from operations of $3.5 million and
$1.6 million and used cash from operations in the amounts of
$1.6 million and $1.3 million for the years ended July 31, 2010,
and 2009, respectively.
CORDOVA FUNDING: S&P Keeps 'BB' Rating on Senior Secured Bonds
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its recovery rating to
'1' from '3' on Cordova Funding Corp.'s senior secured bonds. The
bond rating remains unchanged at BB/Stable.
"The rating action reflects an increase in project liquidity that
pushes out the default date and lowers the outstanding debt at
that date in our default scenario, as well as more asset sales
since last year's assessment in a number of trading regions," said
Standard & Poor's credit analyst Ben Macdonald.
In addition, Ventyx modeling suggests that the Cordova power plant
would be expected to dispatch at a much higher rate into the
market (25% to 35%) compared with the historical 7% average under
the Constellation power purchase agreement. This implies greater
generation revenues from the plant and a recovery above 100%,
ignoring any capacity payments.
Ratings List
Recovery Rating Revised
To From
Cordova Funding Corp.
Senior secured BB/Stable BB/Stable
Recovery rating 1 3
CORUS BANKSHARES: Plan Filing Exclusivity Extended to Oct. 18
-------------------------------------------------------------
BankruptcyData.com reports that the U.S. Bankruptcy Court approved
Corus Bankshares' motion to extend the exclusive period during
which the Company can file a Chapter 11 plan and solicit
acceptances thereof through and including Oct. 18, 2011.
About Corus Bankshares
Chicago, Illinois-based Corus Bankshares, Inc., is a bank holding
company. Its lone operating unit, Corus Bank, N.A., was closed
on Sept. 11, 2009, by regulators, and the Federal Deposit
Insurance Corporation was named receiver. To protect the
depositors, the FDIC entered into a purchase and assumption
agreement with Chicago-based MB Financial Bank, National
Association, to assume all of the deposits of Corus Bank.
Corus Bankshares sought Chapter 11 protection (Bankr. N.D. Ill.
Case No. 10-26881) on June 15, 2010, disclosing $314,145,828 in
assets and $532,938,418 in liabilities as of the Chapter 11
filing.
Kirkland & Ellis LLP's James H.M. Sprayregen, Esq., David R.
Seligman, Esq., and Jeffrey W. Gettleman, Esq., serve as the
Debtor's bankruptcy counsel. Kinetic Advisors is the Company's
restructuring advisor. Plante & Moran is the Company's auditor
and accountant. Kilpatrick Stockton LLP's Todd Meyers, Esq., and
Sameer Kapoor, Esq.; and Neal Gerber & Eisenberg LLP's Mark
Berkoff, Esq., Deborah Gutfeld, Esq., and Nicholas M. Miller,
Esq., represent the official committee of unsecured creditors.
COSTA DORADA: Chapter 11 Case Reassigned to Judge Enrique Lamoutte
------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico notified
the creditors and parties-in-interest in the Chapter 11 case of
Costa Dorada Apartments Corp. that the case was reassigned to the
Hon. Enrique S. Lamoutte. The case was previously assigned to
Judge Sara E. De Jesus Kellogg.
Costa Dorada Apartments Corp., dba Villas De Costa Dorada, in
Isabela, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D.
P.R. Case No. 11-03960) on May 10, 2011. The Debtor disclosed
$10.7 million in assets and $8.6 million in liabilities as of the
Chapter 11 filing. The petition was signed by Carlos R. Fernandez
Rodriguez, its president.
COUDERT BROTHERS: Law Firms Want Claims Out Of Bankruptcy Court
---------------------------------------------------------------
Evan Weinberger at Bankruptcy Law360 reports that a group of 10
law firms said Wednesday that a bankruptcy court was not the
proper venue for the plan administrator of Coudert Brothers LLP to
seek future earnings from former Coudert partners completing the
firm's unfinished business.
According to a motion to withdraw the reference to the bankruptcy
court filed in Manhattan, the law firms said that after the U.S.
Supreme Court's June decision in Stern v. Marshall, bankruptcy
courts are barred from ruling on questions of state law if those
questions, Law360 relates.
About Coudert Brothers
Coudert Brothers LLP was an international law firm specializing in
complex cross-border transactions and dispute resolution. The
firm had operations in Australia and China. The Debtor filed for
Chapter 11 protection (Bankr. S.D.N.Y. Case No. 06-12226) on
Sept. 22, 2006. John E. Jureller, Jr., Esq., and Tracy L.
Klestadt, Esq., at Klestadt & Winters, LLP, represent the Debtor
in its restructuring efforts. The U.S. Trustee for Region 2
appointed five creditors to serve on an Official Committee of
Unsecured Creditors. Brian F. Moore, Esq., and David J. Adler,
Esq., at McCarter & English, LLP, represent the Official Committee
of Unsecured Creditors. Coudert scheduled total assets of
$30.0 million and total debts of $18.3 million as of the Petition
Date.
The Bankruptcy Court in August 2008 signed an order confirming
Coudert Brothers LLP's chapter 11 plan. The Plan contemplated on
paying 39% to unsecured creditors with $26 million in claims.
CRENSHAW AVALON: Case Summary & 6 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Crenshaw Avalon Properties LLC
4343 Crenshaw Boulevard, Suite 305
Los Angeles, CA 90008
Bankruptcy Case No.: 11-45767
Chapter 11 Petition Date: August 23, 2011
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Richard M. Neiter
Debtor's Counsel: Anthony Egbase, Esq.
LAW OFFICES OF ANTHONY O. EGBASE & ASSOC
350 S. Figueroa Street, Suite 189
Los Angeles, CA 90071
E-mail: info@anthonyegbaselaw.com
Scheduled Assets: $845,000
Scheduled Debts: $1,250,225
A list of the Company's six largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/cacb11-45767.pdf
The petition was signed by Paul Guidry.
CROSS BORDER: Red Mountain Discloses 14.6% Equity Stake
-------------------------------------------------------
In an amended Schedule 13D filing with the Securities and Exchange
Commission, Red Mountain Resources, Inc., and its affiliates
disclosed that they beneficially own 2,354,699 shares of common
stock of Cross Border Resources, Inc., representing 14.6% of the
shares outstanding. The percentage of beneficial ownership is
based upon 16,151,946 shares of Common Stock outstanding as of
Aug. 8, 2011. As previously reported by the TCR on July 4, 2011,
Red Mountain disclosed that it beneficially owns 13.3% of the
shares outstanding. A full-text copy of the filing is available
for free at http://is.gd/IHRrAl
About Cross Border Resources
Cross Border Resources, Inc. f/k/a Doral Energy Corp. (OTC BB:
DRLY) -- http://www.DoralEnergy.com/-- is a licensed oil and gas
operator in the state of New Mexico. The Company is headquartered
in Midland, Texas.
The Company's balance sheet at June 30, 2011, showed
$26.37 million in total assets, $8.07 million in total
liabilities, and $18.30 million in total stockholders' equity.
As reported in the Troubled Company Reporter on Nov. 23, 2010,
MaloneBailey, LLP, in Houston, Texas, expressed substantial doubt
about Doral Energy's ability to continue as a going concern
following the Company's results for the fiscal year ended July 31,
2010. The independent auditors noted that the Company has
negative working capital and recurring losses from operations.
CROSS COUNTY: Can Use Cathay Cash Collateral Through Oct. 31
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas has
amended an agreed order between Cathay Bank and debtor Cross
County National Associates, LP, further extending the Debtor's use
of cash collateral though Oct. 31, 2011, in accordance with a
budget.
As adequate protection for its interest in Cash Collateral, the
Lender is granted valid and perfected replacement liens on all of
the property and assets of the Debtor. To the extent of
diminution in value of Lender's interests in its prepetition
collateral resulting from the use of Cash Collateral, the Lender
is granted an administrative expense claim.
As further adequate protection for its interest in Cash
Collateral, the Debtor will pay Lender the sum of $112,000, plus
$30,000 each month beginning in September 2011 and continuing
until the right to use Cash Collateral expires or is terminated.
A copy of the Cash Collateral Budget is available at
http://bankrupt.com/misc/CROSSCOUNTY_cashcollbudget.pdf
About Cross County National
Plano, Texas-based Cross County National Associates, LP, dba Cross
County Mall, owns a retail shopping center known as "Cross County
Mall" located at 700 Broadway East, Mattoon, Illinois. It filed
for Chapter 11 bankruptcy protection (Bankr. E.D. Tex. Case No.
11-40915) on March 28, 2011. John P. Lewis, Jr., Esq., who has an
office in Dallas, Texas, serves as the Debtor's bankruptcy
counsel. In its schedules, the Debtor disclosed $12.4 million in
assets and $13.0 million in liabilities.
CROSSROADS RAINTREE: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Crossroads Raintree, LLC
9328 E. Raintree Drive
Scottsdale, AZ 85260
Bankruptcy Case No.: 11-24371
Chapter 11 Petition Date: August 24, 2011
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Charles G. Case II
Debtor's Counsel: Mark A. Winsor, Esq.
WINSOR LAW GROUP
4704 E. Southern Ave.
Mesa, AZ 85206
Tel: (480) 505-7044
Fax: (480) 204-5936
E-mail: mwinsor@winsorlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
CROWN CASTLE: S&P Affirms 'B+' Corporate Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit rating on Crown Castle International Corp., affirmed all
issue-level on the company and its subsidiaries, and revised the
outlook to positive from stable. The recovery ratings remain
unchanged. "The outlook revision reflects the company's continued
good revenue and EBITDA growth from wireless tower colocation and
revenue escalators, which we expect to contribute to leverage
moderating towards the 6x level over the next 12 to 18 months from
the current adjusted metric of 6.7x," S&P related.
The ratings on Houston-based Crown Castle reflect the company's
very aggressive financial policy, given its historical use of debt
and excess cash flow to fund large stock repurchases. As a result,
adjusted leverage is high, at 6.7x for the 12 months ended June
30, 2011, including redeemable preferred stock. "However, given
expectations for revenue and EBITDA growth in the high-single-
digit area over the next 12 to 18 months, we expect leverage to
approach 6x over that period," said Standard & Poor's credit
analyst Catherine Cosentino.
The outlook is positive. Adjusted leverage approaching 6x would
support an upgrade. Conversely, if the company uses additional
debt to fund stock repurchases and/or a special dividend of in
excess of around $500 million, this could delay leverage
improvement sufficiently to prompt a revision in the outlook to
stable.
DEBUT BROADCASTING: Posts $93,800 Second Quarter Net Income
-----------------------------------------------------------
Debut Broadcasting Corporation, Inc., filed with the U.S.
Securities and Exchange Commission its quarterly report on
Form 10-Q reporting net income of $93,810 on $447,202 of net
revenue for the three months ended June 30, 2011, compared with
net income of $85,033 on $533,490 of net revenue for the same
period during the prior year.
The Company also reported a net loss of $158,728 on $694,039 of
net revenue for the six months ended June 30, 2011, compared with
a net loss of $199,072 on $939,803 of net revenue for the same
period a year ago.
The Company's balance sheet at June 30, 2011, showed $3.92 million
in total assets, $4.18 million in total liabilities, and a
$257,117 total stockholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/MipBOv
About Debut Broadcasting
Debut Broadcasting Corporation, Inc. (OTC BB: DBTB) --
http://www.debutbroadcasting.com/-- is a radio broadcasting and
syndication company that produces and distributes syndicated radio
programming to radio stations in the United States and Canada.
The company maintains radio syndication in Nashville, Tenn., and
produces and distributes 15 radio programs, which are broadcasted
over approximately 1,400 radio station affiliates. It owns and
operates five broadcast radio stations, which include WIQQ FM
102.3 MHz in Leland, WBAQ FM 97.9 MHz and WNIX AM 1330 kHz in
Greenville, and WNLA FM 105.5 MHz and WNLA AM 1380 kHz in
Indianola, Miss. The company is based in Nashville, Tenn.
The Company reported a net loss of $29,359 on $4.76 million of
gross revenues for the year ended Dec. 31, 2010, compared with a
net loss of $419,593 on $4.34 million of gross revenues during the
prior year.
As reported by the TCR on April 6, 2011, Silberstein Ungar, PLLC,
in Bingham Farms, Michigan, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that the Company has incurred losses from
operations, has a working capital deficit, and is in need of
additional capital to grow its operations so that it can become
profitable.
DELTRON INC: Incurs $267,000 Net Loss in June 30 Quarter
--------------------------------------------------------
Deltron, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting a net loss
of $267,787 on $782,970 of sales for the three months ended
June 30, 2011, compared with a net loss of $143,317 on $854,999 of
sales for the same period a year ago.
The Company also reported a net loss of $522,377 on $2.51 million
of sales for the nine months ended June 30, 2011, compared with a
net loss of $402,260 on $1.97 million of sales for the same period
during the prior year.
The Company's balance sheet at June 30, 2011, showed $3.99 million
in total assets, $5.21 million in total liabilities, and a
$1.21 million total stockholders' deficit.
As reported in the TCR on Jan. 20, 2011, Cacciamatta Accountancy
Corporation, in Irvine, Calif., expressed substantial doubt about
Deltron, Inc.'s ability to continue as a going concern, following
its audit of the Company's consolidated financial statements for
the transition period from Jan. 1, 2010, to Sept. 30, 2010. The
independent auditors noted that the Company has incurred recurring
losses from operations and negative cash flows from operating
activities and has a net stockholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/mltiVp
About Deltron Inc.
Based in Garden Grove, Calif., Deltron, Inc., is a manufacturing
company with two distinct business segments: polyurethane and
rebreather. The Company's primary business is Elasco, Inc., which
is focused on manufacturing technology for plastic and
polyurethane products. The Company's secondary business segment
is focused on the development of deep-sea exploration breathing
technology marketed as Blu Vu.
DOE MOUNTAIN: Case Summary & 6 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Doe Mountain Investments, LLC
880 S. Pleasantburg Drive
Suite 1-B
Greenville, SC 29607
Bankruptcy Case No.: 11-05275
Affiliate that simultaneously filed separate Chapter 11 petition:
Debtor Case No.
------ --------
Doe Mountain Development Group, Inc. 11-05259
Chapter 11 Petition Date: August 24, 2011
Court: United States Bankruptcy Court
District of South Carolina (Spartanburg)
Judge: Helen E. Burris
Debtor's Counsel: Randy A. Skinner, Esq.
SKINNER LAW FIRM, LLC
P.O. Box 1843
Greenville, SC 29602
Tel: (864) 232-2007
Fax: (864) 232-8496
E-mail: main@skinnerlawfirm.com
Doe Mountain Investments'
Estimated Assets: $10,000,001 to $50,000,000
Doe Mountain Investments'
Estimated Debts: $1,000,001 to $10,000,000
Doe Mountain Development's
Estimated Assets: $1,000,001 to $10,000,000
Doe Mountain Development's
Estimated Debts: $10,000,001 to $50,000,000
The petitions were signed by Harry Huffman, manager.
Doe Mountain Investments' List of Six Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Johnson County Trustee 2008 Property Taxes $72,746
Office
Attn: Sue Hensley, Manager
PO Box 22
Mountain City, TN 37683
Tennessee Department of 2008 State Taxes $66,402
Revenue
c/o Attorney General
PO Box 20207
Nashville, TN 37202-0207
Johnson County Trustee 2009 Property Taxes $63,723
Office
Attn: Sue Hensley, Manager
PO Box 22
Mountain City, TN 37683
Johnson County Trustee 2010 Property Taxes $46,568
Office
Tennessee Department of 2009 State Taxes $42,468
Revenue
Elliott Davis $13,899
Doe Mountain Development's List of 19 Largest Unsecured Creditors
http://bankrupt.com/misc/scb11-05259.pdf
The petitions were signed by Veronica Clardy, president.
DUNE ENERGY: UBS AG Discloses 20.5% Equity Stake
------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, UBS AG directly and on behalf of certain
subsidiaries disclosed that it beneficially owns 12,376,340 shares
of common stock of Dune Energy, Inc., representing 20.48% of the
shares outstanding. The number of Common Shares beneficially
owned is reported as of Aug. 16, 2011, and consists of 11,617,370
Common Shares underlying 10% Senior Redeemable Convertible
Preferred Stock and 758,970 Common Shares. As of Aug. 16, 2011,
each share of Preferred Stock converts into 114.29 Common.
This amendment is being filed because of an increase in UBS AG's
beneficial ownership due solely to a Preferred Stock dividend.
This percentage is calculated as of Aug. 16, 2011, pursuant to
rule 13(d)(1)(i) and is based upon 48,821,142 Common Shares
outstanding as of Aug. 4, 2011.
As previously reported by the TCR on March 9, 2011, UBS AG
disclosed beneficial ownership of 22.83% of the shares
outstanding.
A full-text copy of the filing is available for free at:
http://is.gd/jdxonh
About Dune Energy
Dune Energy, Inc. (NYSE AMEX: DNE) -- http://www.duneenergy.com/
-- is an independent energy company based in Houston, Texas.
Since May 2004, the Company has been engaged in the exploration,
development, acquisition and exploitation of natural gas and crude
oil properties, with interests along the Louisiana/Texas Gulf
Coast. The Company's properties cover over 90,000 gross acres
across 27 producing oil and natural gas fields.
The Company reported a net loss of $75.53 million on $64.18
million of revenue for the year ended Dec. 31, 2010, compared with
a net loss of $59.13 million on $52.24 million of revenue during
the prior year.
The Company's balance sheet at June 30, 2011, showed
$274.23 million in total assets, $369.71 million in total
liabilities, $151.29 million in redeemable convertible preferred
stock, and a $246.78 million total stockholders' deficit.
* * *
Dune Energy carries a 'CCC-' corporate credit rating, with
negative outlook, from Standard & Poor's, and 'Ca' corporate
family and probability of default ratings, with negative outlook,
from Moody's Investors Service.
S&P said in April 2010, "[T]he company's heavy debt burden makes
the prospects of a distressed exchange or bankruptcy a distinct
possibility."
EQK BRIDGEVIEW: Has Access to GP Trust Cash Collateral on Interim
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas has
granted EQK Bridgeview Plaza, Inc., authority to use cash
collateral of GP Trust deriving from the Bridgeview Property or
the Debtor's cash on hand with respect to the Bridgeview Property
on an interim basis, until 11:59 p.m. on July 31, 2011, pursuant
to an interim budget, with a permitted variance of 10% on each
line item in the budget.
As adequate protection for the Debtor's use of the GP Trust's Cash
Collateral, the Debtor will deposit a tax escrow amount equal to
the pro-rated monthly amount of the projected tax owed on account
of the Bridgeview Plaza Property for the year into the Tax Escrow
Account by no later than the last calendar day of each month.
The Dunes Plaza Receiver will remain in place over the Dunes Plaza
Property until further order of the Court and will have the right
to use Grand Pacific's Cash Collateral deriving from the Dunes
Plaza Property to operate the Dunes Plaza Property in accordance
with the terms of the Dunes Plaza Receivership Order.
As adequate protection for the Debtor's use of Cash Collateral
derived from the Bridgeview Property, the Debtor will make a
monthly payment to GP Trust in July 2011 in the amount of $34,000.
The GP Trust Adequate Protection Payment will be made by the 25th
day of the respective month in which such payment is due.
As further adequate protection, GP Trust is granted replacement
liens and assignments on and post-petition security interests in
the Cash Collateral of each of the other Lenders whose interests
are oversecured.
Based in Dallas, Tex., EQK Bridgeview Plaza, Inc., sought chapter
11 protection (Bankr. N.D. Tex. Case No. 10-37054) on Oct. 4,
2010, and is represented by Melissa S. Hayward, Esq. --
MHayward@FSLHlaw.com -- at Franklin Skierski Lovall Hayward LLP in
Dallas, Tex. The Debtor owns four parcels of real estate that it
values at $74 million.
In its schedules, the Debtor disclosed total assets of $76,458,815
and total liabilities of $74,763,048.
ELAN CORP: S&P Keeps 'B' Corp. Credit Rating on Watch Positive
--------------------------------------------------------------
Standard & Poor's Ratings Services's 'B' corporate credit rating
on Ireland-based Elan Corp. PLC remains on CreditWatch with
positive implications. The rating was placed on CreditWatch on May
9, 2011, following the company's announcement that it will be
selling its Elan Drug Technologies (EDT) business to newly formed
Alkermes PLC.
"We will resolve the CreditWatch upon close of the transaction,
which we expect will occur in September; at that time, we expect
to raise the corporate credit rating to 'B+' and to assign a
stable outlook to the rating," said Standard & Poor's credit
analyst Michael Berrian.
"The possibility of a higher rating primarily takes into
consideration our belief that the company will use cash proceeds
from the transaction to reduce adjusted leverage. Pro forma for
the sale of EDT and subsequent debt reduction, we expect adjusted
leverage to decline to 5x at Dec. 31, 2011, from 8x in the prior
year. The decline in leverage is suggestive of a higher rating,"
S&P said.
"The pending transaction with Alkermes does not worsen our
perception of Elan's weak business risk profile. Although the
transaction makes Elan solely dependent on Tysabri for its
revenues and profitability, the company's critical dependence on
this one product was already incorporated into the business risk
profile," S&P related.
ELITE PHARMACEUTICALS: Amends Designations of Series B & C Shares
-----------------------------------------------------------------
The holders of in excess of 50% of Elite Pharmaceuticals, Inc.'s
outstanding shares of Series B 8% Convertible Preferred Stock, par
value US $0.01 per share, and shares of Series C 8% Convertible
Preferred Stock, par value US$0.01 per share, voting as one class,
consented to amendments to the Amended Certificates of
Designations of the Series B Preferred Stock and the Series C
Preferred Stock. The Certificates of Designations for each of the
Series B Preferred Stock and the Series C Preferred Stock are the
same in all respects except where specifically noted.
Pursuant to the terms of the Amended Certificates, the terms of
the Series B Preferred and the Series C Preferred Stock have been
amended as follows:
Dividends: The Preferred Stock will continue to accrue dividends
at the rate of 8% per annum on their stated value of US
$1000 per share, payable quarterly on January 1, April
1, July 1 and October 1 and such rate will not increase
to 15% per annum as previously provided in the
respective Certificates of Designations of the
Preferred Stock.
Conversion Price: The conversion price of the Series B Preferred
Stock will be reduced from US$1.23 to US$0.15 per share
and the conversion price of the Series C Preferred
Stock will be reduced from US$1.27 per share to US$0.15
per share.
Automatic Monthly Conversions: On each Monthly Conversion Date, a
number of shares of the Preferred Stock equal to each
Holder's pro rata portion of the Monthly Conversion
Amount will automatically convert into shares of the
Company's Common Stock at the then effective conversion
price.
A full-text copy of the Form 8-K is available for free at:
http://is.gd/DuC24i
About Elite Pharmaceuticals
Northvale, New Jersey-based Elite Pharmaceuticals, Inc., is a
specialty pharmaceutical company principally engaged in the
development and manufacture of oral, controlled-release products,
using proprietary technology and the development and manufacture
of generic pharmaceuticals. The Company has one product,
Phentermine 37.5mg tablets, currently being sold commercially.
Demetrius & Company, L.L.C., in Wayne, New Jersey, expressed
substantial doubt about Elite Pharmaceuticals' ability to continue
as a going concern. The independent auditors noted that the
Company has experienced significant losses resulting in a working
capital deficiency and shareholders' deficit.
The Company reported a net loss of $13.6 million on $4.3 million
of revenues for the fiscal year ended March 31, 2011, compared
with a net loss of $8.1 million on $3.3 million of revenues for
the fiscal year ended March 31, 2010.
The Company's balance sheet at June 30, 2011, showed
$11.49 million in total assets, $50.33 million in total
liabilities, and a $38.84 million total stockholders' deficit.
EMPIRE RESORTS: Receives Non-Compliance Notice from Nasdaq
----------------------------------------------------------
Empire Resorts, Inc., received a Nasdaq Staff Determination Letter
on Aug. 16, 2011, indicating that the Company fails to comply with
the minimum bid price requirement for continued listing set forth
in Listing Rule 5450(a)(1) and that the Company's securities are,
therefore, subject to delisting from The Nasdaq Global Market.
The Company intends to request a hearing before a Nasdaq Listing
Qualifications Panel to review the Staff Determination. A hearing
request would stay the suspension of the Company's securities
pending the Panel's decision. There can be no assurance the Panel
will grant the Company's request for continued listing.
Effective on Aug. 11, 2011, Empire and Nanette L. Horner, the
Company's Vice President of Legal Affairs and Chief Compliance
Officer, entered into an amendment to Ms. Horner's employment
agreement. Pursuant to the amendment:
* Ms. Horner's title was changed from Vice President of Legal
Affairs and Chief Compliance Officer to Senior Vice
President, Chief Counsel and Chief Compliance Officer;
* The term of the Employment agreement was extended for an
additional year to terminate on July 1, 2013; and
* Ms. Horner's annual base salary was increased from $175,000
to $200,000.
On Aug. 11, 2011, Empire also changed Ms. Laurette J. Pitts's
title from "Chief Financial Officer" to "Senior Vice President,
Chief Financial Officer".
On Aug. 11, 2011, the Compensation Committee of the Board of
Directors recommended to the Board of Directors, and the Board of
Directors adopted, a cash bonus plan for the senior executives of
the Company. Pursuant to the bonus plan, up to $300,000 will be
set aside annually for possible award to Joseph A. D'Amato,
Empire's Chief Executive Officer, Laurette J. Pitts, Empire's
Senior Vice President, Chief Financial Officer, Nanette L. Horner,
Empire's Senior Vice President, Chief Counsel and Chief Compliance
Officer, and Charles Degliomini, Executive Vice President.
Bonuses may be awarded to each of the named senior executives in
amounts determined by the Compensation Committee and based upon
the recommendation of Mr. D'Amato for the other named senior
executives.
Bonuses totaling up to the $300,000 aggregate maximum under this
plan may be awarded in the event Monticello Raceway Management,
Inc.'s EBITDA for the fiscal year meets or exceeds 80% of the
target EBITDA that is established by the Compensation Committee at
the beginning of each fiscal year. The aggregate maximum amount
available for award pursuant to the bonus plan may be reduced in
proportion to the amount by which MRMI's EBITDA for the fiscal
year misses the target EBITDA. The amount of individual bonuses
awarded pursuant to the bonus plan will be based 50% upon whether
MRMI met or exceeded its EBITDA target and 50% based upon
individual performance in the fiscal year, which will be evaluated
by the Compensation Committee. Awards will be made pursuant to
the bonus plan in January of the succeeding fiscal year.
About Empire Resorts
Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY)
-- http://www.empireresorts.com/-- owns and operates Monticello
Casino & Raceway, a video gaming machine and harness racing track
and casino located in Monticello, New York, 90 miles northwest of
New York City.
Friedman LLP, after auditing the Company's financial statements
for the year ended Dec. 31, 2010, expressed substantial doubt
about the Company's ability to continue as a going concern.
Friedman noted that the Company's ability to continue as a going
concern depends on its ability to satisfy its indebtedness when
due. In addition, the Company has continuing net losses and
negative cash flows from operating activities.
Empire Resorts reported a net loss of $17.57 million on
$68.54 million of net revenues for the year ended Dec. 31, 2010,
compared with a net loss of $10.57 million on $67.63 million of
net revenues during the prior year.
The Company's balance sheet at June 30, 2011, showed
$48.73 million in total assets, $24.22 million in total
liabilities, and $24.51 million in total stockholders' equity.
ENVIRONMENTAL INFRASTRUCTURE: Incurs $455,800 Q2 Net Loss
---------------------------------------------------------
Environmental Infrastructure Holdings Corp. filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
10-Q, reporting a net loss of $455,833 on $354,220 of revenue for
the three months ended June 30, 2011, compared with a net loss of
$363,896 on $799,028 of revenue for the same period a year ago.
The Company also reported a net loss of $839,900 on $974,528 of
revenue for the six months ended June 30, 2011, compared with a
net loss of $856,218 on $1.57 million of revenue for the same
period a year ago.
The Company reported a net loss of $2.42 million on $3.27 million
of revenue for the year ended Dec. 31, 2010.
The Company's balance sheet at June 30, 2011, showed $588,426 in
total assets, $4.83 million in total liabilities, and a
$4.24 million total stockholders' deficit.
Michael T. Studer CPA P.C., in Freeport, 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 incurred losses
for the years ended Dec. 31, 2010 and 2009 and has a deficiency in
stockholders' equity at Dec. 31, 2010.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/98rHbr
About Environmental Infrastructure
West Conshohocken, Pa.-based Environmental Infrastructure Holdings
Corp. is the parent company of various environmental
manufacturing, engineering and services companies. Currently the
company has two wholly owned subsidiaries in Equisol, LLC and Xiom
Corp.
EPAZZ INC: To Restate Reports to Reflect Intellisys Acquisition
---------------------------------------------------------------
Epazz, Inc.'s sole director, Shaun Passley, concluded that the
Company's financial statements for the:
(a) three and nine months ended Sept. 30, 2010, as included in
the Company's Form 10-Q, filed with the Commission on
Nov. 22, 2010;
(b) year ended Dec. 31, 2010, as included in the Company's Form
10-K, filed with the Commission on April 15, 2011; and
(c) three months ended March 31, 2011, as included in the
Company's Form 10-Q, filed with the Commission on May 23,
2011, should no longer be relied upon because those
financial statements failed to appropriately account for
the Company's Sept. 2, 2010, acquisition of Intellisys,
Inc., as reported in the Company's Form 8-K, filed with the
Commission on Oct. 19, 2010.
The Company's sole director has discussed the matters with the
Company's independent accountant and the Company plans to file
amendments to the said Reports.
About EPAZZ Inc.
Chicago, Ill.-based EPAZZ, Inc., was incorporated in the State of
Illinois on March 23, 2000, to create software to help college
students organize their college information and resources. The
idea behind the Company was that if the information and resources
provided by colleges and universities was better organized and
targeted toward each individual, the students would encounter a
personal experience with the college or university that could lead
to a lifetime relationship with the institution. This concept is
already used by business software designed to retain relationships
with clients, employees, vendors and partners.
The Company's balance sheet at March 31, 2011, showed $1.9 million
in total assets, $1.3 million in total liabilities, and
stockholders' equity of $557,841.
Bankruptcy Warning
The Company currently anticipates that it will need approximately
$100,000 to continue its operations for the next 12 months,
including any funds the Company will need to make the monthly
payments on its promissory note with Mr. Arthur A. Goes (the
seller of Desk Flex, Inc., and Professional Resource Management,
Inc.), the June 2008 note due to Star Financial Corporation, the
IntelliSys promissory note and the Third Party Lender Note.
"In the event that we are unable to repay our current and long-
term obligations as they come due, we could be forced to curtail
or abandon our business operations, and/or file for bankruptcy
protection; the result of which would likely be that our
securities would decline in value and/or become worthless," the
Company said in the filing.
Going Concern
As reported in the TCR on April 26, 2011, Lake & Associates, CPA's
LLC, in Schaumburg, Illinois, expressed substantial doubt about
EPAZZ, Inc.'s ability to continue as a going concern, following
the Company's 2010 results. The independent auditors noted that
the Company has a significant accumulated deficit and continues to
incur losses.
EPAZZ INC: Reports $58,700 Second Quarter Net Income
----------------------------------------------------
Epazz, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting net income
of $58,768 on $282,707 of revenue for the three months ended
June 30, 2011, compared with net income of $35,503 on $131,382 of
revenue for the same period during the prior year.
For the six months ended June 30, 2011, the Company posted $84,647
net income compared to a $8,774 net loss for the same period last
year.
The Company's balance sheet at June 30, 2011, showed $2.11 million
in total assets, $1.30 million in total liabilities, and $811,454
total stockholders' equity.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/br1ooS
About EPAZZ Inc.
Chicago, Ill.-based EPAZZ, Inc., was incorporated in the State of
Illinois on March 23, 2000, to create software to help college
students organize their college information and resources. The
idea behind the Company was that if the information and resources
provided by colleges and universities was better organized and
targeted toward each individual, the students would encounter a
personal experience with the college or university that could lead
to a lifetime relationship with the institution. This concept is
already used by business software designed to retain relationships
with clients, employees, vendors and partners.
Bankruptcy Warning
The Company currently anticipates that it will need approximately
$100,000 to continue its operations for the next 12 months,
including any funds the Company will need to make the monthly
payments on its promissory note with Mr. Arthur A. Goes (the
seller of Desk Flex, Inc., and Professional Resource Management,
Inc.), the June 2008 note due to Star Financial Corporation, the
IntelliSys promissory note and the Third Party Lender Note.
"In the event that we are unable to repay our current and long-
term obligations as they come due, we could be forced to curtail
or abandon our business operations, and/or file for bankruptcy
protection; the result of which would likely be that our
securities would decline in value and/or become worthless," the
Company said in the filing.
Going Concern
As reported in the TCR on April 26, 2011, Lake & Associates, CPA's
LLC, in Schaumburg, Illinois, expressed substantial doubt about
EPAZZ, Inc.'s ability to continue as a going concern, following
the Company's 2010 results. The independent auditors noted that
the Company has a significant accumulated deficit and continues to
incur losses.
EVERGREEN SOLAR: Taps Hilco Industrial as Sales Agent
-----------------------------------------------------
BankruptcyData.com reports that Evergreen Solar filed with the
U.S. Bankruptcy Court a motion to retain Hilco Industrial
(Contact: Joseph A. Malfitano) as exclusive marketing and sales
agent in exchange for commission rates ranging from 1.5% to 14%,
depending on gross proceeds received by the Debtors.
About Evergreen Solar
Evergreen Solar, Inc. -- http://www.evergreensolar.com/--
develops, manufactures and markets String Ribbon solar power
products using its proprietary, low-cost silicon wafer technology.
The Company's patented wafer manufacturing technology uses
significantly less polysilicon than conventional processes.
Evergreen Solar's products provide reliable and environmentally
clean electric power for residential and commercial applications
globally.
The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy
(Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge
Mary F. Walrath. The Company's balance sheet at April 2, 2011,
showed $373,972,000 in assets, $455,506,000 in total liabilities,
and a stockholders' deficit of $81,534,000.
Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham
McCutchen LLP, serve as general bankruptcy counsel to the Debtor.
Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski
Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is
the financial advisor. Epiq Bankruptcy Solutions has been tapped
as claims agent.
In conjunction with the Chapter 11 filing, the Company entered
into a restructuring support agreement with certain holders of
more than 70% of the outstanding principal amount of the Company's
13% convertible senior secured notes. As part of the bankruptcy
process the Company will undertake a marketing process and will
permit all parties to bid on its assets, as a whole or in groups
pursuant to 11 U.S.C. Sec. 363. An entity formed by the
supporting noteholders, ES Purchaser, LLC, entered into an asset
purchase agreement with the Company to serve as a "stalking-horse"
and provide a "credit-bid" pursuant to the Bankruptcy Code for
assets being sold.
The supporting noteholders are represented by Michael S. Stainer,
Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer &
Feld LLP, in New York.
EVERGREEN SOLAR: Files Copy of Guarantee Issued by LBHI
-------------------------------------------------------
In a Form 8-K filing Tuesday, Evergreen Solar, Inc., filed as
Exhibit 99.2 a Guarantee, dated June 26, 2008, delivered by Lehman
Brothers Holding, Inc. in favor of the Company, described in more
detail below.
As previously disclosed and as filed as Exhibit 10.5 to the
Company's report on Form 10-Q for the period ended June 28, 2008,
filed on Aug. 4, 2008, concurrent with the offering and sale of
the Company's 4% Senior Convertible Notes due 2013 (the "Senior
Notes") on June 26, 2008, the Company entered into a common stock
lending agreement (the "Common Stock Lending Agreement") with
Lehman Brothers International (Europe) ("LBIE"), an affiliate of
the lead underwriter for the Senior Notes offering, pursuant to
which the Company loaned 5,142,757 shares of its common stock (the
"Borrowed Shares") to LBIE. LBIE offered the 5,142,757 shares in
a separate registered offering. LBIE received all of the proceeds
from the sale of the Borrowed Shares. In consideration for the
issuance of the Borrowed Shares, LBIE paid the Company a nominal
loan fee. In the Common Stock Lending Agreement, LBIE agreed to
deliver to the Company 5,142,757 shares of its common stock upon
the earliest of (i) July 15, 2013, (ii) the Company's election, at
such time that the entire principal amount of the Senior Notes
ceases to be outstanding, (iii) the mutual agreement of the
Company and LBIE, (iv) the Company's election upon a default by
LBIE, and (v) at any time at LBIE's election. The obligations of
LBIE under the Common Stock Lending Agreement are guaranteed by
the parent company of the lead underwriter, Lehman Brothers
Holdings Inc., pursuant to the Guarantee.
On Sept. 15, 2008, Lehman Brothers Holdings Inc. filed for
protection under Chapter 11 of the federal Bankruptcy Code and
LBIE was placed into administration proceeding in the United
Kingdom shortly thereafter. As a result of the bankruptcy filing
and the administration proceeding, the Common Stock Lending
Agreement automatically terminated and LBIE was contractually
required to return the shares to the Company or the value of the
shares in cash. The Company has since demanded the immediate
return of all outstanding Borrowed Shares or the cash equivalent
value, however, the shares have not yet been returned and no
payment has been made.
A copy of the Guarantee is available at http://is.gd/lwPUEq
About Evergreen Solar
Evergreen Solar, Inc. -- http://www.evergreensolar.com/--
develops, manufactures and markets String Ribbon solar power
products using its proprietary, low-cost silicon wafer technology.
The Company's patented wafer manufacturing technology uses
significantly less polysilicon than conventional processes.
Evergreen Solar's products provide reliable and environmentally
clean electric power for residential and commercial applications
globally.
The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy
(Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge
Mary F. Walrath. The Company's balance sheet at April 2, 2011,
showed $373,972,000 in assets, $455,506,000 in total liabilities,
and a stockholders' deficit of $81,534,000.
Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham
McCutchen LLP, serve as general bankruptcy counsel to the Debtor.
Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski
Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is
the financial advisor. Epiq Bankruptcy Solutions has been tapped
as claims agent.
In conjunction with the Chapter 11 filing, the Company entered
into a restructuring support agreement with certain holders of
more than 70% of the outstanding principal amount of the Company's
13% convertible senior secured notes. As part of the bankruptcy
process the Company will undertake a marketing process and will
permit all parties to bid on its assets, as a whole or in groups
pursuant to 11 U.S.C. Sec. 363. An entity formed by the
supporting noteholders, ES Purchaser, LLC, entered into an asset
purchase agreement with the Company to serve as a "stalking-horse"
and provide a "credit-bid" pursuant to the Bankruptcy Code for
assets being sold.
The supporting noteholders are represented by Michael S. Stainer,
Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer &
Feld LLP, in New York.
FIRST FEDERAL: L. Brandt Retires; D. Cavin Appointed CEO
--------------------------------------------------------
First Federal Bancshares of Arkansas, Inc., and its wholly-owned
subsidiary, First Federal Bank, announced the retirement of Larry
J. Brandt as the chief executive officer of the Company and the
Bank, effective upon the non-objection of the Office of the
Comptroller of the Currency, the Bank's primary regulator, and the
Federal Reserve Bank, the Company's primary regulator.
At the same time, the Company and the Bank announced the
appointment of W. Dabbs Cavin as the successor to Mr. Brandt as
the chief executive officer of the Company and the Bank. Mr.
Cavin is currently serving on the Boards of Directors of the
Company and the Bank and as the President of the Company and the
Bank.
About First Federal Bancshares of Arkansas
Harrison, Arkansas-based First Federal Bancshares of Arkansas,
Inc. (NASDAQ: FFBH) -- http://www.ffbh.com/-- is a unitary
savings and loan holding company for First Federal Bank. The Bank
is a community bank serving consumers and businesses in
Northcentral and Northwest Arkansas with a full range of checking,
savings, investment, and loan products and services. The Bank,
founded in 1934, conducts business from 18 full-service branch
locations, one stand-alone loan production office, and 29 ATMs
located in Northcentral and Northwest Arkansas.
The Company's balance sheet at June 30, 2011, showed
$616.3 million in total assets, $533.2 million in total
liabilities, and stockholders' equity of $83.1 million.
As reported in the TCR on March 22, 2011, BKD, LLP, in Little
Rock, Arkansas, expressed substantial doubt about First Federal
Bancshares of Arkansas' ability to continue as a going concern,
following the Company's 2010 results. The independent auditors
noted that the Company has experienced significant losses in
recent years and has significant levels of nonperforming assets.
Furthermore, the Company has entered into a written agreement with
the Office of Thrift Supervision which requires the Company to
meet certain capital requirements by Dec. 31, 2010, which were not
met.
FODL INC: Files for Chapter 7 Bankruptcy
----------------------------------------
Daily News Los Angeles reports that FODL Inc., 15817 Moorpark St.,
Encino, filed for Chapter 7 bankruptcy protection (Case No. SV11-
19487-MT) in Los Angeles County. The Company did not disclose its
assets and debts.
FNB UNITED: Treasury Agrees to Exchange 51,500 Preferred Shares
---------------------------------------------------------------
FNB United Corp. entered into an exchange agreement with the
United States Department of the Treasury, pursuant to which the
Treasury agreed to exchange 51,500 shares of the Company's
preferred stock designated as Fixed Rate Cumulative Preferred
Stock, Series A, having a liquidation amount of $1,000 per share,
held by the Treasury, for that number of shares of common stock of
the Company having a value (valued at $0.16 per share) equal to
the sum of 25% of the aggregate liquidation value of the preferred
stock plus 100% of the amount of accrued and unpaid dividends on
the preferred stock as of the closing date of the Company's
proposed merger with Bank of Granite Corporation. The Exchange
Agreement is available for free at http://is.gd/oKgFt0
As part of the terms of the Exchange Agreement, the Company also
agreed to amend and restate the terms of the warrant dated
Feb. 13, 2009, that entitles the Treasury to purchase shares of
common stock of the Company. The form of amended and restated
warrant, which will be issued concurrently with the TARP Exchange,
will, among other things, entitle the Treasury to purchase
2,207,143 shares of common stock of the Company, extend the term
of the warrant and reduce the initial exercise price to $0.16 per
share. The form of Amended Warrant is available for free at:
http://is.gd/rf8Aj1
As previously reported, entry into the Exchange Agreement is a
condition to closing of the transactions contemplated by separate
investment agreements the Company has entered into with an
affiliate of The Carlyle Group and affiliates of Oak Hill Capital
Partners and subscription agreements the Company has entered into
with certain additional investors, pursuant to which each Investor
agreed, subject to certain conditions, to purchase common stock of
the Company as part of the Company's expected $310 million capital
raise. The transactions contemplated by the Exchange Agreement
would close simultaneously with the transactions contemplated by
the investment agreements and subscription agreements.
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 incurred significant net losses in 2009, which
continued in 2010 and 2011, primarily from the higher provisions
for loan losses due to the significant level of nonperforming
assets and the write-off of goodwill.
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.
The Company's balance sheet at June 30, 2011, showed $1.72 billion
in total assets, $1.83 billion in total liabilities and a $113.71
million total shareholders' deficit.
Bankruptcy Warning
On April 26, 2011, FNB United entered into investment agreements
with The Carlyle Group and Oak Hill Capital Partners to
recapitalize the Company, as well as a merger agreement with Bank
of Granite Corporation. On June 16 and Aug. 4, 2011, the Company
entered into subscription agreements with various accredited
investors for the purchase and sale of its common stock.
Together, the investment agreements with Carlyle and Oak Hill
Capital and the subscription agreements contemplate the issuance
of $310 million of common stock of the Company at $0.16 per share.
Completion of the recapitalization, including the sale of common
stock to The Carlyle Group and Oak Hill Capital Partners and the
other investors, is subject to various conditions, certain of
which are outside of the Company's control and may not be
satisfied. The closing conditions to the recapitalization include
receipt of requisite regulatory approvals and other customary
closing conditions. No assurance can be given that all conditions
will be satisfied timely or at all. The Company said if it fails
to consummate the recapitalization, it is expected it will not be
able to continue as a going concern, it may file for bankruptcy
and the Bank may be placed into FDIC receivership. The equity
financing transaction, if completed, will result in substantial
dilution to the Company's current shareholders and could adversely
affect the market price of the Company's common stock.
FUSION TELECOMMUNICATIONS: Borrows $122,000 from Marvin Rosen
-------------------------------------------------------------
Fusion Telecommunications International, Inc., borrowed $122,000
from Marvin S Rosen, a Director of the Company. This note (a) is
payable on demand in full upon 10 days notice of demand from the
lender, (b) bears interest on the unpaid principal amount at the
rate of 3.25% per annum, and (c) grants the lender a
collateralized security interest, pari passu with other lenders,
in the Company's accounts receivable. The proceeds of this note
are to be used primarily for general corporate purposes.
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.
The Company's balance sheet at June 30, 2011, showed $4.81 million
in total assets, $14.33 million in total liabilities, and a
$9.52 million total stockholders' deficit.
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.
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.
GENERAL MARITIME: Peter Georgiopoulos Holds 5.4% Equity Stake
-------------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, Peter C. Georgiopoulos disclosed that he
beneficially owns 6,533,241 shares of common stock of General
Maritime Corporation representing 5.4% of the shares outstanding.
As previously reported by the TCR on April 11, 2011,
Mr. Georgiopoulos disclosed beneficial ownership of 5.78% of the
shares outstanding. A full-text copy of the regulatory filing is
available for free at http://is.gd/sYDJse
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 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.
The Company's balance sheet at June 30, 2011, showed $1.78 billion
in total assets, $1.44 billion in total liabilities, and
$339.32 million in total shareholders' equity.
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.
GENMED HOLDING: Posts $1.4 Million Net Loss in Second Quarter
-------------------------------------------------------------
Genmed Holding Corp. filed its quarterly report on Form 10-Q,
reporting a net loss of $1.4 million on $nil revenue for the three
months ended June 30, 2011, compared with a net loss of $426,180
on $nil revenue for the same period of 2010.
The Company reported a net loss of $1.9 million on $nil revenue
for the six months ended June 30, 2011, compared with a net loss
of $1.3 million on $nil revenue for the same period of 2010.
At June 30, 2011, the Company's balance sheet showed $1.6 million
in total assets, $2.9 million in total liabilities, and a
stockholders' deficit of $1.3 million.
As reported in the TCR on April 27, 2011, Meyler & Company, LLC,
in Middletown, N.J., expressed substantial doubt about Genmed
Holding's ability to continue as a going concern, following the
Company's 2010 results. The independent auditors noted that the
Company has incurred cumulative net losses of $69.99 million since
inception, and had net losses of $7.73 million and $8.59 million
for the years ended Dec. 31, 2010, and 2009.
A copy of the Form 10-Q is available at http://is.gd/udupHQ
Based in The Netherlands, Genmed Holding Corp. through its wholly
owned Dutch subsidiary Genmed B.V. is focusing on the delivery of
low cost generic medicines directly to distribution chains
throughout Europe. The Company is currently in the development
stage of its generic drug distribution business and is attempting
to develop and maintain relationships with generic drug
manufacturers, retail entities, and government regulatory
authorities.
GLOBAL CHILD: Case Summary & 8 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Global Child Care Enterprises Group, LLC
4177 Rainbow Drive
Decatur, GA 30034
Bankruptcy Case No.: 11-74439
Chapter 11 Petition Date: August 24, 2011
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: Natalyn M. Archibong, Esq.
LAW OFFICE OF NATALYN M. ARCHIBONG
374 Maynard Terrace SE, Suite 206
Atlanta, GA 30316
Tel: (404) 626-9142
Fax: (404) 373-7737
E-mail: nmarchibong@gmail.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's eight largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/ganb11-74439.pdf
The petition was signed by Fannie M. Bivins, manager.
GLOBAL INVESTOR: Incurs $2.4 Million Net Loss in June 30 Quarter
----------------------------------------------------------------
Global Investor Services, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss of $2.40 million on $533,162 of total revenue for the
three months ended June 30, 2011, compared with a net loss of
$4.04 million on $333,606 of total revenue for the same period a
year ago.
The Company's balance sheet at June 30, 2011, showed $2.31 million
in total assets, $5.77 million in total liabilities, and a
$3.45 million total deficiency in stockholders' equity.
The Company ended fiscal 2011 with a net loss of $9.97 million and
fiscal 2010 with a net loss of $7.10 million.
RBSM LLP, in New York, expressed substantial doubt about Global
Investor Service'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 accumulated deficiency as of
March 31, 2011.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/1SNx4T
About Global Investor
Orem, Utah-based Global Investor Service, Inc., was incorporated
in the state of Nevada on Aug. 1, 2005. Effective Sept. 18, 2006,
the Company changed its name to TheRetirementSolution.com, Inc.,
and on Oct. 1, 2008, the Company changed its name to Global
Investor Services, Inc. The Company was initially formed to
market portfolios of stocks via subscription. In 2007, a new
chief executive officer was installed and a strategy was developed
to create and market a diverse portfolio of products and services
for the financial education and financial information industry.
This strategy included strategic acquisitions, such as the
acquisitions of Razor Data, LLC, and Investment Tools and
Training, LLC, which have provided the Company with an integrated
platform in which it can market and deliver investor education
products and investor services. The stock symbol is GISV.
GLOBAL SHIP: Incurs $11.7 Million Second Quarter Net Loss
---------------------------------------------------------
Global Ship Lease, Inc., reported a net loss of US$11.69 million
on US$38.77 million of time charter revenue for the three months
ended June 30, 2011, compared with a net loss of US$4.95 million
on US$39.61 million of time charter revenue for the same period a
year ago.
For the six months ended June 30, 2011, the Company posted a net
loss of US$854,000 on US$77.87 million of time charter revenue
compared with a net loss of US$1.67 million on US$78.76 million of
time charter revenue for the same period last year.
The Company reported a net loss of $3.97 million on
$158.84 million of time charter revenue for the year ended
Dec. 31, 2010, compared with net income of $42.37 million on
$148.71 million of time charter revenue during the prior year.
The Company's balance sheet at June 30, 2011, showed US$954.49
million in total assets, US$630.47 million in total liabilities
and US$324.02 million in total stockholders' equity.
Ian Webber, Chief Executive Officer of Global Ship Lease, stated,
"With an EBITDA of $25.7 million for the second quarter, our 17
long-term fixed rate time charters continue to generate
consistent, stable and predictable cash flows. During the
quarter, utilization levels once again remained high. Although we
are currently seeing a slowdown in the recovery of containerized
shipping, our business model insulates us from the direct impact
of volatile freight markets. The average remaining term of our
charters is more than 8.8 years on a weighted basis with no
renewals until the end of 2012; our fleet represents a total
contracted revenue stream of $1.3 billion. We continue to believe
that the Company's business model supports the delivery of
dividends to shareholders over the long-term and the Board will
continue to evaluate the dividend policy on a quarterly basis."
A full-text copy of the the press release announcing the financial
results is available for free at http://is.gd/EJhPRi
About Global Ship Lease
London, England-based Global Ship Lease (NYSE: GSL, GSL.U and
GSL.WS) -- http://www.globalshiplease.com/-- is a containership
charter owner. Incorporated in the Marshall Islands, Global Ship
Lease commenced operations in December 2007 with a business of
owning and chartering out containerships under long-term, fixed
rate charters to world class container liner companies.
Global Ship Lease owns 17 vessels with a total capacity of 66,297
TEU with a weighted average age at June 30, 2010, of 6.3 years.
All of the current vessels are fixed on long-term charters to CMA
CGM with an average remaining term of 8.6 years. The Company has
contracts in place to purchase two 4,250 TEU newbuildings from
German interests for approximately $77 million each that are
scheduled to be delivered in the fourth quarter of 2010. The
Company also has agreements to charter out these newbuildings to
Zim Integrated Shipping Services Limited for seven or eight years
at charterer's option.
GREEN PLANET: Lumea Undergoes Financial Restructuring
-----------------------------------------------------
Green Planet Group, Inc., announced that its wholly owned
subsidiary Lumea, Inc., completed the filing of Chapter 11 for two
of its subsidiaries, Lumea Staffing, Inc., and Lumea Staffing of
California, Inc. The other operating companies of Lumea and Green
Planet Group are not affected by these filings.
These Chapter 11 filings will allow the Company to restructure the
majority of its staffing business liabilities. These liabilities
include $923,000 of secured claims and up to $25 million of
unsecured claims. The management of the companies will be
debtors-in-possession (DIP) while they develop reorganizational
plans to resolve balances with their creditors and emerge as
profitable entities.
In addition, Green Planet Group is in negotiations to receive an
infusion of new capital to ensure that it will be in a position to
continue its operations and execute its business plan.
Edmond L Lonergan, President/CEO, said "Throughout the
reorganization process, we will be conducting 'business as usual'
and have taken every step possible to ensure that the Chapter 11
filings will not adversely affect our day-to-day temp staffing
operations, nor the Company as a whole. Today's action will
provide long-term relief from our debilitating legacy debt and
allow us to pursue an ongoing strategy to build the Lumea staffing
business into a national brand." Mr. Lonergan continued "These
filings will have no impact on Green Planets' shareholders other
than when these two subsidiaries emerge as profitable entities;
the share value is expected to reflect the overall improvement in
the Company's balance sheet."
About Lumea Staffing
Lumea Staffing, Inc., and Lumea Staffing of CA, Inc., filed
Chapter 11 petitions (Bankr. D. Ariz. Case Nos. 11-23582 and
11-23585) on Aug. 17, 2011. Dean M. Dinner, Esq., at Nussbaum
Gillis & Dinner, P.C., in Scottsdale, Arizona, serves as the
Debtors' counsel. The Debtors each estimated assets of up to
$500,000 and debts of up to $50 million.
About Green Planet
Green Planet Group, Inc., is engaged in the research, development,
manufacturing and distribution of a variety of products that
improve overall energy efficiency with a specific concentration on
petroleum based energy sources. The Company currently has four
wholly owned operating subsidiaries, EMTA Corp, XenTx Lubricants,
Inc., White Sands, L.L.C., and Lumea, Inc.
As reported by the TCR on July 21, 2011, Semple, Marchal & Cooper,
LLP, in Phoenix, Ariz., says that Green Planet Group's significant
operating losses and negative working capital raise substantial
doubt about its ability to continue as a going concern.
Green Planet reported a net loss of $15.4 million on $37.1 million
of sales for the fiscal 2011, compared with a net loss of
$15.7 million on $57.4 million of sales for fiscal 2010.
The Company's balance sheet at March 31, 2011, showed $5.6 million
in total assets, $38.9 million in total liabilities, and a
stockholders' deficit of $33.3 million.
GREEN PLANET: Shelter Island Sues, Seeks $2-Mil. Payment
--------------------------------------------------------
Green Planet Group, Inc., and its financing subsidiary received
notice of complaint filed by the Shelter Island Opportunity Fund,
LLC, in the Supreme Court of the State of New York, County of New
York, seeking payment of all sums due ($2,091,082) together with
contractual interest and fees, possession of the plant, equipment
and inventory located in Durant, OK, subject to existing first
mortgages. The Company's statutory agent has been served with the
Complaint, however, the complete filing was not received.
Meanwhile, the Company received a letter from Ed Miller, a
director of the Company and Chairman of the Audit Committee,
informing the Company that due to poor health, he will resign from
the Board and Audit Committee effective as of Sept. 30, 2011.
There have been no disagreements between the Company and Mr.
Miller. The Company greatly appreciates the Mr. Miller's years of
service and devotion of time and efforts necessary to his
responsibilities as a Director and Chairman.
About Green Planet
Green Planet Group, Inc., is engaged in the research, development,
manufacturing and distribution of a variety of products that
improve overall energy efficiency with a specific concentration on
petroleum based energy sources. The Company currently has four
wholly owned operating subsidiaries, EMTA Corp, XenTx Lubricants,
Inc., White Sands, L.L.C., and Lumea, Inc.
As reported by the TCR on July 21, 2011, Semple, Marchal & Cooper,
LLP, in Phoenix, Ariz., says that Green Planet Group's significant
operating losses and negative working capital raise substantial
doubt about its ability to continue as a going concern.
Green Planet reported a net loss of $15.4 million on $37.1 million
of sales for the fiscal 2011, compared with a net loss of
$15.7 million on $57.4 million of sales for fiscal 2010.
The Company's balance sheet at March 31, 2011, showed $5.6 million
in total assets, $38.9 million in total liabilities, and a
stockholders' deficit of $33.3 million.
GREENBRIER COS: W. Furman Discloses 7.3% Equity Stake
-----------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, William A. Furman disclosed that he
beneficially owns 1,830,000 shares of common stock of The
Greenbrier Companies, Inc., representing 7.3% of the shares
outstanding. The Amendment reported a greater than 1% decrease in
the percentage of outstanding Shares beneficially owned by
Mr. Furman, primarily as a result of the dilutive effect of the
issuance of additional Shares by the Company, and also reported an
increase in the total number of Shares beneficially owned by
Mr. Furman, as a result of compensatory restricted stock awards
and open market purchases of the Shares by Mr. Furman. A full-
text copy of the regulatory filing is available for free at:
http://is.gd/n0jfMR
About Greenbrier Cos.
Based in Lake Oswego, Oregon, The Greenbrier Companies Inc.
operates in three primary business segments: manufacturing,
refurbishment and parts, and leasing and services. The
manufacturing segment, operating from four facilities in the
United States, Mexico and Poland, produces double-stack intermodal
railcars, conventional railcars, tank cars and marine vessels.
The refurbishment & parts segment performs railcar repair,
refurbishment and maintenance activities in the United States and
Mexico. The leasing & services segment owns roughly 8,000
railcars and provides management services for roughly 225,000
railcars.
The Company's balance sheet at May 31, 2011, showed $1.21 billion
in assets, $853.76 million in liabilities and $363.97 million in
total equity.
* * *
As reported by the TCR on April 5, 2011, Moody's Investors Service
upgraded the ratings for The Greenbrier Companies Inc. Corporate
Family Rating to 'B3' from 'Caa1'. The upgrade of the CFR
reflects Moody's expectations that Greenbrier's earnings, revenues
and financial performance will improve over the next 12 to 18
months as a result of growing demand for rail cars. Greenbrier is
well position to benefit from improving industry conditions in the
rail car manufacturing and leasing businesses, where continued
growth in overall railroad freight volume will likely result in
robust demand growth for new railcars.
Greenbrier carries 'B-' issuer credit ratings from Standard &
Poor's Ratings Services. S&P said in May 2010 that the ratings on
Greenbrier reflect the company's fair business risk profile
stemming from the cyclicality of the freight car manufacturing
industry; the dramatic decline in demand for new railcars as a
result of slower economic growth and weaker carloadings; and
limited customer diversity. The Company, according to S&P, also
has a highly leveraged financial risk profile, marked by increased
debt balances as a result of acquisitions completed in recent
years.
GYMBOREE CORP: Bank Debt Trades at 13% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Gymboree
Corporation is a borrower traded in the secondary market at 87.15
cents-on-the-dollar during the week ended Friday, Aug. 26, 2011, a
drop of 1.75 percentage points from the previous week according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. The Company pays 412.5 basis points above LIBOR
to borrow under the facility. The bank loan matures on Feb. 23,
2018, and carries Moody's 'B1' rating and Standard & Poor's 'B'
rating. The loan is one of the biggest gainers and losers among
70 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Friday.
The Gymboree Corporation (GYMB: Nasdaq) --
http://www.gymboree.com/-- is a specialty retailer operating
stores selling apparel and accessories for children under the
Gymboree, Gymboree Outlet, Janie and Jack and Crazy 8 brands, as
well as play programs for children under the Gymboree Play & Music
brand. The Company operates retail stores in the United States,
Canada and Puerto Rico in regional shopping malls and in selected
suburban and urban locations. As of January 30, 2010, the Company
conducted its business through five divisions: Gymboree, Gymboree
Outlet, Janie and Jack, Crazy 8, and Gymboree Play & Music. As of
January 30, 2010, the Company operated a total of 953 retail
stores, including 916 stores in the United States (593 Gymboree
stores, 139 Gymboree Outlet stores, 119 Janie and Jack shops, and
65 Crazy 8 stores), 34 Gymboree stores in Canada, 2 Gymboree
stores in Puerto Rico, and 1 Gymboree Outlet store in Puerto Rico.
HAMPTON ROADS: John Davies Resigns; D. Glenn Assumes CEO Role
-------------------------------------------------------------
Hampton Roads Bankshares, Inc., the holding company for Bank of
Hampton Roads and Shore Bank, announced that President and Chief
Executive Officer John A.B. "Andy" Davies, Jr., has resigned to
return to his prior work as a banking consultant. Douglas J.
Glenn, Executive Vice President, General Counsel and Chief
Operating Officer, will take on the additional role of interim
President and Chief Executive Officer, subject to pending
regulatory approval.
Henry P. Custis, Jr., Chairman of the Board of Directors, said,
"We thank Andy for his valuable contributions to the Company and
wish him well in his return to consulting. He joined the Company
during a severe national financial crisis, at a time when the
Company faced serious challenges on a number of fronts. Andy and
the Board took decisive action to recapitalize the Company,
strengthen its operations and management team, refocus on its core
community banking franchise and establish a path to return to
profitability. While there is still more work to do, things are
clearly moving in the right direction."
Mr. Custis added, "We are pleased that Doug will serve as interim
President and CEO. He has played a key role in developing and
implementing our plan to return the Company to profitability, and
the Board is confident that progress will continue under his
guidance and leadership."
Mr. Davies said, "It has been an honor to lead this fine team and
I am proud of all we have accomplished together. I am
particularly pleased with our success in attracting the capital
the Company needed to not just survive but thrive. With the
completion of the recapitalization and other significant actions
to put the Company on a path to return to profitability, my
personal mission here has been accomplished, and this is an
appropriate time for me to return to my consulting practice."
In connection with Mr. Davies' resignation from the Company, he
entered into a Consulting Agreement and a Transition Agreement,
both dated Aug. 17, 2011. The Consulting Agreement provides that,
effective Sept. 12, 2011, Mr. Davies will be retained as a
consultant for one year in order to facilitate a smooth and
orderly transition within the Company and the Bank and to assure
access to Mr. Davies' unique and valuable services. Under the
Consulting Agreement, Mr. Davies will perform 1,000 hours of
service, as specified in the Consulting Agreement, in exchange for
monthly consulting payments of $41,667, subject to adjustment
based on the number of hours of service performed in a particular
month.
In addition, the Company will reimburse Mr. Davies for out-of-
pocket expenses he reasonably incurs to perform his consulting
services, subject to the prior approval of the Company. Under the
Transition Agreement, Mr. Davies will continue to serve as a full-
time employee until Sept. 11, 2011, at which point his employment
will terminate. Also under the Transition Agreement, Mr. Davies
has agreed not to compete with the Company or the Bank or solicit
any employee of the Company or the Bank until Sept. 11, 2013, in
exchange for $110,000 in cash consideration. The Transition
Agreement also contains a mutual release of claims.
Also on Aug. 17, 2011, Mr. Davies resigned as a director of the
Company.
About Hampton Roads Bankshares
Hampton Roads Bankshares, Inc. (NASDAQ: HMPR) --
http://www.hamptonroadsbanksharesinc.com/-- is a bank holding
company that was formed in 2001 and is headquartered in Norfolk,
Virginia. The Company's primary subsidiaries are Bank of Hampton
Roads, which opened for business in 1987, and Shore Bank, which
opened in 1961. Currently, Bank of Hampton Roads operates twenty-
eight banking offices in the Hampton Roads region of southeastern
Virginia and twenty-four offices in Virginia and North Carolina
doing business as Gateway Bank & Trust Co. Shore Bank serves the
Eastern Shore of Maryland and Virginia through eight banking
offices and fifteen ATMs.
Effective June 17, 2010, the Company and its banking subsidiary,
Bank of Hampton Roads ("BOHR"), entered into a written agreement
with the Federal Reserve Bank of Richmond and the Bureau of
Financial Institutions of the Virginia State Corporation
Commission. The Company's other banking subsidiary, Shore Bank,
is not a party to the Written Agreement.
Under the terms of the Written Agreement, among other things, BOHR
agreed to develop and submit for approval plans to (a) strengthen
board oversight of management and BOHR's operations, (b)
strengthen credit risk management policies, (c) improve BOHR's
position with respect to loans, relationships, or other assets in
excess of $2.5 million which are now, or may in the future become,
past due more than 90 days, are on BOHR's problem loan list, or
adversely classified in any report of examination of BOHR, (d)
review and revise, as appropriate, current policy and maintain
sound processes for determining, documenting, and recording an
adequate allowance for loan and lease losses, (e) improve
management of BOHR's liquidity position and funds management
policies, (f) provide contingency planning that accounts for
adverse scenarios and identifies and quantifies available sources
of liquidity for each scenario, (g) reduce the Bank's reliance on
brokered deposits, and (h) improve BOHR's earnings and overall
condition.
The Company said in its Form 10-Q for the Sept. 30, 2010 quarter
that due to its financial results, the substantial uncertainty
throughout the U.S. banking industry, and the Written Agreement
the Company and BOHR have entered into, doubts existed regarding
the Company's ability to continue as a going concern through the
second quarter of 2010. However, management believes this concern
has been mitigated by the initial closing of the Private Placement
that occurred on Sept. 30, 2010.
The Company reported a net loss of $210.35 million on $122.20
million of total interest income for the year ended Dec. 31, 2010,
compared with a net loss of $201.45 million on $149.44 million of
total interest income during the prior year.
The Company's balance sheet at June 30, 2011, showed $2.59 billion
in total assets, $2.43 billion in total liabilities, and
$161.64 million in total shareholders' equity.
HANMI FINANCIAL: Seven Directors Elected at Annual Meeting
----------------------------------------------------------
Hanmi Financial Corporation held its 2011 annual meeting of
stockholders on Aug. 17, 2011. Seven persons were elected to
serve as directors of the Company, namely: (1) I Joon Ahn, (2)
John A. Hall, (3) Paul Seon-Hong Kim, (4) Joon Hyung Lee, (5)
Joseph K. Rho, (6) William Stolte and (7) Jay S. Yoo. A proposal
to approve the Named Executive Officers' compensation was
approved. A proposal to approve the frequency of future Say on
Pay Votes has passed "for One Year."
Stockholders approved a proposal to amend the Company's Amended
and Restated Certificate of Incorporation to effect a reverse
stock split of the Common Stock by a ratio of not less than one-
for-two and not more than one-for-twenty at any time prior to
July 31, 2012, with the exact ratio to be set at a whole number
within this range as determined by the Board of Directors in its
sole discretion, and (ii) reduce the number of authorized shares
of the Company's common stock by the reverse stock split ratio
determined by the Board of Directors. A proposal regarding the
ratification of the appointment of KPMG LLP as the Company's
independent registered public accounting firm for the fiscal year
ended Dec. 31, 2011, was also approved.
About Hanmi Financial
Headquartered in Los Angeles, California, Hanmi Financial Corp.
(Nasdaq: HAFC) -- http://www.hanmi.com/-- is the holding company
for Hanmi Bank, a state chartered bank with headquarters located
at 3660 Wilshire Boulevard, Penthouse Suite A, in Los Angeles.
Hanmi Bank provides services to the multi-ethnic communities of
California, with 27 full-service offices in Los Angeles, Orange,
San Bernardino, San Francisco, Santa Clara and San Diego counties,
and a loan production office in Washington State.
The Company reported a net loss of $88.01 million on $144.51
million of total interest and dividend income for the year ended
Dec. 31, 2010, compared with a net loss of $122.27 million on
$184.14 million during the prior year.
The Company's balance sheet at June 30, 2011, showed $2.71 billion
in total assets, $2.51 billion in total liabilities and $198.36
million in total stockholders' equity.
Going Concern
The Company is required by federal regulatory authorities to
maintain adequate levels of capital to support its operations.
Hanmi Bank is also required to increase its capital and maintain
certain regulatory capital ratios prior to certain dates specified
in a Final Order issued by the California Department of Financial
Institutions. By July 31, 2010, the Bank was required to increase
its contributed equity capital by not less than an additional $100
million and maintain a ratio of tangible stockholders' equity to
total tangible assets of at least 9.0%.
In addition, the Bank was also required to maintain a ratio of
tangible stockholders' equity to total tangible assets of at least
9.5 percent at Dec. 31, 2010 and until the Final Order is
terminated.
As a result of the successful completion of the registered rights
and best efforts offering in July 2010, the capital contribution
requirement set forth in the Final Order was satisfied. However,
the tangible capital ratio requirement set for in the Final Order
has not been satisfied at Dec. 31, 2010. Further, should the
Company's asset quality continue to erode and require significant
additional provision for credit losses, resulting in added future
net operating losses at the Bank, or should the Company otherwise
fail to be profitable, the Company's capital levels will
additionally decline requiring the raising of more capital than
the amount currently required to satisfy the Company' agreements
with its regulators.
The Company said an inability to raise additional capital when
needed or comply with the terms of the Final Order or the Written
Agreement with the Board of Governors of the Federal Reserve
System, raises substantial doubt about its ability to continue as
a going concern.
The Company's independent registered public accounting firm in
their audit report for fiscal year 2010 has expressed substantial
doubt about the Company's ability to continue as a going concern.
Continued operations may depend on the Company's ability to comply
with the regulatory orders the Company is subject to.
HARBOUR EAST: Wants Escrow Agent to Turn Over $67,500 Deposit
-------------------------------------------------------------
Harbour East Development, Ltd., asks the Bankruptcy Court for the
Southern District of Florida to:
-- compel the law firm of Blass & Frankel, P.A., the escrow
agent, to turn over to the Debtor the forfeited deposit
($67,469, plus accrued interest);
-- direct the Debtor to place the forfeited deposit into a
separate interest-bearing Debtor-In-Possession bank account;
and
-- prohibit the Debtor from making any disbursements of the
forfeited deposit unless expressly authorized by order of the
Court.
The Debtor is the developer and owner of the luxury residential
condominium development known as CIELO on the Bay located at 7935
East Drive, North Bay Village. CIELO contains 35 residential
condominium units. The condominium units are either designer
ready, unfinished, or developer finished for rental and feature
views of the Miami and Miami Beach skyline and Biscayne Bay.
Prepetition, the Debtor placed the purchase deposits pursuant to
the sales contracts into escrow with the escrow agent.
Purchasers, Demar Import/Export, Inc., White Investment Group,
1207 Brickell Corp., Jy J Tequesta 1111 Corp., and By G Real
Estate, entities affiliated with Pablo Blanco, deposited 20% of
the contract price with the escrow agent. Pursuant to the
purchase agreements, failure to close on or by a date specified in
a notice to close constitutes a default, which entitles the Debtor
to treat the purchase agreements as canceled and receive the
forfeited deposit as liquidated damages.
Prior to the time for closing on the purchase agreements, the
Debtor and Demar Import/Export, Inc., reached a compromise of the
various of the purchase agreements, pursuant to which the Debtor
canceled the purchase agreements relating to condominium units
701, 803 and 901 and Demar Import/Export, Inc. assigned the
purchase agreements on Condominium Units 601 White Investment,
Inc. The Debtor and Demar Import/Export, Inc. further agreed to
transfer a portion of the money deposits on condominium units 701,
803 and 901 as a credit against the purchase price of condominium
units 601 and 602 to forfeit the balance of $67,469 to the Debtor.
White Investment closed on the purchase of condominium units 601
and 602 in 2009.
Because the forfeited deposit is payable to the Debtor pursuant to
the purchase agreements, the escrow agreement, and section
718.202, Fla. Stat., the forfeited deposit constitutes property of
the Debtor's estate, but remains in escrow pending disbursement by
the escrow agent. In addition to the forfeited deposit, the
Debtor is entitled to payment of all interest accrued.
The escrow agent, in discussions with the Debtor, indicated that
it will only disburse the forfeited deposit to the Debtor if
ordered to do so by the Court.
If the Court grant the motion, the Debtor will deposit the
forfeited deposit into a separate interest-bearing Debtor-In-
Possession bank account, and will not further disburse the
forfeited deposit unless specifically authorized.
About Harbour East Development
Harbour East Development, Ltd., is the developer and owner of the
luxury residential condominium development known as CIELO on the
Bay located at 7935 East Drive, North Bay Village. CIELO contains
35 residential condominium units.
Harbour East filed for Chapter 11 bankruptcy (Bankr. S.D. Fla.
Case No. 10-20733) on April 22, 2010. Michael L. Schuster, Esq.,
who has an office in Miami, Florida, represents the Debtor. The
Company estimated assets and debts at $10 million to $50 million,
as of the Chapter 11 filing.
Judge Cristol denied the request of 7935 NBV LLC's request to
dismiss the case.
No creditors' committee has been appointed in the case. In
addition, no request for the appointment of a trustee or examiner
has been made.
HARGRAY HOLDINGS: S&P Hikes Corporate to B+ on Credit Measures
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit and
senior secured debt ratings on Hilton Head, S.C.-based incumbent
local exchange carrier (ILEC) Hargray Holdings LLC to 'B+' from
'B'. "Additionally, we raised the issue-level rating on the
company's senior secured second lien term loan to 'B-' from
'CCC+'," S&P said.
The outlook is stable.
"The rating action -- as well as our changing our financial risk
assessment of the company to aggressive from highly leveraged --
reflects Hargray's improved credit measures over the past year
from EBITDA growth and debt reduction. Total debt to EBITDA,
including our adjustments, declined to 4.8x as of March
31, 2011, from 5.4x in the year-ago period," S&P related.
"Since the 2007 acquisition by private equity sponsor Quadrangle
Capital Partners, the company has materially improved leverage,
largely through cost reductions, including a billing system
conversion," said Standard & Poor's credit analyst Allyn Arden.
"Moreover, revenue has remained stable despite economic pressures
as ongoing access line losses have been offset by growth in
high speed data and video services. We expect leverage to remain
in the mid- to high-4x area over the next couple of years."
The ratings on Hargray continue to reflect its concentrated
service area and small size, slightly below-industry-average
profitability, and an aggressive financial risk profile.
Mitigating factors include the company's favorable position as an
ILEC and incumbent cable operator, and favorable customer
demographics in its territories.
The outlook is stable. Ongoing access line losses should be offset
by modest growth in HSD and video services. "As a result, we
expect leverage to remain steady over the next year. Still, the
current ownership structure and resulting financial policy
considerations limit a possible upgrade. Conversely, we could
lower the ratings if Hargray's operating performance deteriorated
because of competitive or economic pressures and resulted in
leverage rising to the mid-5x area," S&P added.
HARRY & DAVID: Plans to Employ More Workers at Medford Call Center
------------------------------------------------------------------
Greg Stiles at Ashland Daily Tidings reports that Harry & David
has announced plans to add about 700 seasonal production jobs and
another 1,400 jobs in its Medford, Oregon call center.
According to the report, Peter Kratz, executive vice president for
operations, said the company is adding a third shift for the first
time in several years so it can make best use of its collection
bins when fruit is moved between orchards and the packing house
during the shorter picking season brought on by a long, wet
spring.
The report notes the Company also will hire 1,400 full- and part-
time workers for its Medford call center and more than 1,000 at
its Hopewell campus outside Hebron, Ohio, in the weeks ahead.
About Harry & David
Medford, Oregon-based Harry & David Holdings, Inc. -- aka Bear
Creek Corporation; Bear Creek Direct Marketing, Inc.; Bear Creek
Stores, Inc.; Bear Creek Operations, Inc.; and Bear Creek
Orchards, Inc. -- is a multi-channel specialty retailer and
producer of branded premium gift-quality fruit and gourmet food
products and gifts marketed under the Harry & David(R),
Wolferman's(R) and Cushman's(R) brands. It has 70 stores across
the country.
Harry & David Holdings filed for Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 11-10884) on March 28, 2011. Affiliates
Harry and David (Bankr. D. Del. Case No. 11-10885), Harry & David
Operations, Inc. (Bankr. D. Del. Case No. 11-10886), and Bear
Creek Orchards, Inc. (Bankr. D. Del. Case No. 11-10887) filed
separate Chapter 11 petitions. The cases are jointly
administered, with Harry David Holdings as lead case.
David G. Heiman, Esq., Brad B. Erens, Esq., and Timothy W.
Hoffman, Esq., at Jones Day, are the Debtors' lead counsel.
Daniel J. DeFranceschi, Esq., Paul Noble Heath, Esq., and Zachary
Shapiro, Esq., at Richards Layton & Finger, serve as the Debtors'
local counsel. Rothschild Inc. is the Debtors' investment banker.
Alvarez & Marsal LLC is the Debtors' financial advisor. Garden
City Group Inc. is the Debtors' claims and notice agent. McKinsey
Recovery & Transformation Services U.S. LLC is being tapped as
management consultants.
The Debtor also tapped DJM Realty Services, LLC, as real estate
consultants; Alvarez & Marsal North America to provide the Debtors
an interim chief executive officer and chief restructuring officer
and certain additional officers; and McKinsey Recovery &
Transformation Services U.S. LLC as their management consultant.
Kristopher M. Hansen, Esq., and Erez E. Gilad, Esq., at Stroock &
Stroock & Lavan LLP; Thomas B. Walper, Esq., at Munger, Tolles &
Olson LLP; and Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer
& Feld LLP are counsel to principal noteholders. Moelis & Company
is the financial advisor to the principal noteholders.
Lowenstein Sandler has been retained as counsel to the unsecured
creditors committee.
The Debtors disclosed $304.3 million in total assets and
$360.8 million in total debts as of Dec. 25, 2010.
On April 7, 2011, the U.S. Trustee appointed an official committee
of unsecured creditors in the Debtors' cases.
HEARUSA INC: Delays Filing of Form 10-Q for Period Ended July 2
---------------------------------------------------------------
HearUSA Inc. discloses that its Form 10-Q for the quarterly ended
July 2, 2011, cannot be filed within the prescribed time period,
Losses are expected to increase over the second quarter in 2010
due to a decrease in sales and additional costs related to the
debtor-in-possession financing and bankruptcy.
About HearUSA Inc.
HearUSA, Inc., which sells hearing aids in 10 states, filed for
Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No.
11-23341) on May 16, 2011, to sell the business for $80 million to
William Demant Holdings A/S. The Debtor said that assets are
$65.6 million against debt of $64.7 million as of March 31, 2010.
HearUSA owes $31.3 million to Siemens Hearing Instruments Inc.,
the principal supplier and primary secured lender.
Judge Erik P. Kimball presides over the case. Brian K. Gart,
Esq., Paul Steven Singerman, Esq., and Debi Evans Galler, Esq., at
Berger Singerman, P.A., represent the Debtor. The Debtor has
tapped Bryan Cave LLP as special counsel; Sonenshine Partners LLC,
investment banker; Development Specialist Inc., restructuring
advisor ans Joseph J. Luzinski as chief restructuring officer; and
AlixPartners LLC, as communications consultant. Trustee Services,
Inc., serves as claims and notice agent.
The Official Committee of Unsecured Creditors has been appointed
in the case. Robert Paul Charbonneau, Esq., and Daniel L. Gold,
Esq., at Ehrenstein Charbonneau Calderin, represent the Creditors
Committee.
An Official Committee of Equity Security Holders has also been
appointed. Mark D. Bloom, Esq., at Greenberg Traurig P.A., in
Miami, Fla., represents the Equity committee as counsel.
HORIZON CONSTRUCTION: Groover's Super Owner Files for Chapter 11
----------------------------------------------------------------
Sara Kennedy at Bradenton.com reports that the owner of Groover's
Super Market, filed for bankruptcy protection, but the bankruptcy
is not expected to affect the county's legal effort to halt
rampant criminal activity at the Palmetto market.
The report says, facing foreclosure, with a sale slated for as
soon as [Tues]day, the owner filed for Chapter 11 bankruptcy
protection, according to V. William Kaklis, an attorney handling
the foreclosure suit. "It's really a delaying tactic," said
Mr. Kaklis, whose client, Memphis Investments Inc., was listed as
the plaintiff in a foreclosure suit filed against defendants
Horizon Construction Management Services, LLC, and KNP, Inc.
Horizon Construction Management Services, LLC, filed a Chapter 11
petition (Bankr. M.D. Fla. Case No. 11-15340) on Aug. 15, 2011,
estimating less than $1 million in assets and debts See
http://bankrupt.com/misc/flmb11-15340.pdf
HOTEL AIRPORT: To Hire Edgardo Munoz as Bankruptcy Counsel
----------------------------------------------------------
Hotel Airport Inc. seeks permission from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ Edgardo Munoz, PSC as
counsel for the Debtor.
Upon retention, the firm, will among other things:
a) advise the Debtor with respect to its duties, powers, and
responsibilities in this case under the laws of the United
States and Puerto Rico in which debtor-in-possession
conducts its operations,
b) advise the Debtor in connection with determination on
whether reorganization is feasible and if not, helping
the Debtor in the orderly liquidation of assets, and
c) prepare on behalf of the Debtor the necessary complaints,
answers, orders, reports, memoranda of law and/or any other
legal paper or document required in the case.
To the best of the Debtor's knowledge, in the attached verified
statement, Edgardo Munoz and his firm have disclosed their
connection (if any) with the creditors, any party in interest,
their attorneys, their accountants, the U.S. Trustee, or the
personnel of the US Trustee. To the best of the Debtor's
knowledge, Edgardo Munoz nor his firm represent or hold any
interest adverse to the debtor or the estate in the matters for
which he is being engaged pursuant to 11 U.S.C. Sec. 327. To the
best of the Debtor's knowledge, Edgardo Munoz nor his firm are
disinterested persons within the meaning of 11 U.S.C. Sec. 101.
The firm has received a retainer in the amount of $10,000 plus the
additional sum of $1,039 to cover filing fees, which sums were
paid by debtor from funds generated from the operations of its
business. An additional sum of $10,000 has been agreed to and
shall be distributed upon proper notice and hearing, and after
court authorization required, and shall be held as additional
retainer to be credited with the final application for
compensation to be submitted under 11 U.S.C. Sec. 330.
Professional services shall be charged at the rate of $280 per
hour plus costs and expenses.
About Hotel Airport
Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11
bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011.
Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo
Munoz, PSC, serves as bankruptcy counsel. In its petition, the
Debtor estimated $10 million to $50 million in both assets and
debts. The petition was signed by David Tirri, its president.
HOTEL AIRPORT: Files Schedules of Assets & Liabilities
------------------------------------------------------
Hotel Airport Inc filed with the U.S. Bankruptcy Court for the
District of Puerto Rico, its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ------- -----------
A. Real Property $0.00
B. Personal Property $8,547,993
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $11,067,536
E. Creditors Holding
Unsecured Priority
Claims $51,271
F. Creditors Holding
Unsecured Non-priority
Claims $160,050,584
----------- -----------
TOTAL $8,547,993 $171,169,392
About Hotel Airport
Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11
bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011.
Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo
Munoz, PSC, serves as bankruptcy counsel. In its petition, the
Debtor estimated $10 million to $50 million in both assets and
debts. The petition was signed by David Tirri, its president.
HOWREY LLP: 20 Law Firms Involved in Chapter 11 Case
----------------------------------------------------
Leigh Jones at Thomson Reuters reports that the Howrey bankruptcy
is creating a wealth of opportunity for attorneys who are mopping
up the failed law firm's mess.
According to the report, so far, about 40 attorneys from about 20
law firms are involved in the Chapter 11 action in the bankruptcy
court in San Francisco, California. They include top attorneys
from Wiley Rein; Paul, Weiss, Rifkind, Wharton & Garrison; Dewey &
LeBoeuf; Duane Morris; and Seyfarth Shaw. The roster of debtor
and creditor lawyers is small compared with some other recent law
firm bankruptcies, but if the case drags out, that could change.
Reuters says that earlier this month, Wiley Rein, which is
representing Howrey, submitted its first statement of services
rendered. From June 6 to June 30, the law firm charged $262,888
in fees and expenses. The statement followed Bankruptcy Judge
Dennis Montali's order issued last month that required
professionals hired by Howrey or the unsecured creditors committee
to begin filing monthly statements with the court for payment.
Under bankruptcy law, the fees of the unsecured creditors
committee, if reasonable, are paid by the debtor.
The law firm of Felderstein Fitzgerald Willoughby & Pascuzzi,
which is representing the unsecured creditor's committee, also
filed its statement for the work it did in June. It billed
$39,457 in fees and expenses, an amount it said was 80% of what it
actually is owed, notes Ms. Jones.
According to the report, Wiley Rein has nine attorneys working on
the case-six partners and three associates. Partner H. Jason Gold
charged the highest per-hour fee, at $730. He worked about 102
hours on the case in June. The second highest-charging partner
from Wiley Rein is Thomas J. Kirby, who charged $710 per hour and
worked about 14 hours, according to the statement. Third was
partner Valerie Morrison, who charged $660 per hour and worked
about 85 hours. The partner working most hours was Dylan Trache,
who charged for 129 hours at $535 per hour. Wiley Rein began
representing Howrey in May. At that time, Howrey paid Wiley Rein
a $500,000 retainer, according to court papers.
Reuters says the highest charging Felderstein Fitzgerald partner
in June was Steven Felderstein, at $595 per hour. However, he
only billed one hour of work. Thomas Willoughby was the second
highest-charging attorney, at $475 per hour. He racked up about
73 hours in work and billed a total of $34,817. Six attorneys
from Felderstein Fitzgerald are on the case.
Howrey, which at its peak in 2008 had about 750 attorneys, voted
to dissolve in March. In April, a small group of unsecured
creditors filed an involuntary Chapter 7 petition against the firm
in bankruptcy court in San Francisco. Howrey converted the
involuntary petition to a voluntary Chapter 11 liquidation action
in June. T he firm originally sought to move the case to the
Washington, D.C. area and hired Washington-based Wiley Rein,
replacing Latham & Watkins, which has about 121 attorneys in San
Francisco. B ut Howrey has backed off plans to move the case in
order to help resolve the matter by the end of the year, said
Trache, at Wiley Rein, note Reuters.
The report relates that, at the time that Howrey filed its Chapter
11 petition, it had about $15.2 million in debt claims made by its
20 largest unsecured creditors, and owed $49 million to Citibank,
a secured creditor. Assets included $63 million in accounts
receivable and work in progress, $3.6 million in cash and $8.2
million in capital from insurers. (Disclosure: One of the
unsecured creditors is Thomson Reuters, Inc., which had a $242,233
claim against the law firm).
Generally, more attorneys get involved as bankruptcy cases drag
on. Wiley Rein attorneys have repeatedly said that they are
trying to close the case by the end of the year. "That's the
target," said Trache on Tuesday.
The report says, but resolving the case so quickly is a long shot,
said one attorney who has handled the dissolution of several
professional services companies. "It could take years," he said.
"I would be very surprised if that happens by the end of the
year.' The attorney didn't want to be identified so that he could
speak candidly about Howrey. He said that any law firm's key
assets are its accounts receivables, and getting clients to pay is
a time-consuming process. "The problem with bankruptcy is that it
becomes a feeding frenzy for the lawyers," he said. He added that
if it hadn't been for the Chapter 7 involuntary petition, Howrey
may have well concluded business without going to court.
Other cases have taken much longer and have involved many more
lawyers. Heller Ehrman, the San Francisco law firm that declared
bankruptcy in 2008, has nearly twice the number of attorneys
involved in the ongoing action. Among the 76 lawyers in the
Heller case, which is in the same bankruptcy court as the Howrey
case, some are also working on the Howrey matter.
The report notes Coudert Bros., which filed for bankruptcy in
2006, an action that is still open, has 79 attorneys involved.
The case has been complicated by litigation offshoots, including
challenges by retired partners with suing over retirement plans.
For now, Howrey's attorneys are focusing on a yard sale of sorts.
On Aug. 12, Montali authorized the firm to auction off the
equipment and furniture from its offices in Washington on
Pennsylvania Avenue, the location where the firm was based. The
sale is set for Aug. 19.
About Howrey LLP
Three creditors filed an involuntary Chapter 7 petition (Bankr.
N.D. Calif. Case No. 11-31376) on April 11, 2011, against the
remnants of the Washington-based law firm Howrey LLP. The filing
was in San Francisco, where the firm had an office. The firm
previously was known as Howrey & Simon and Howrey Simon Arnold &
White LLP. The firm at one time had more than 700 lawyers in 17
offices. The partners voted to dissolve in March.
The firm specialized in antitrust and intellectual-property
matters. The three creditors filing the involuntary petition
together have $36,600 in claims, according to their petition.
The involuntary chapter 7 petition was converted to a chapter 11
case in June at the request of the firm. In its schedules filed
in July, the Debtor disclosed assets of $138.7 million and
liabilities of $107.0 million.
HSCB FINANCIAL: Incurs $39.9 Million Net Loss in 2nd Quarter
------------------------------------------------------------
HCSB Financial Corporation filed its quarterly report on Form
10-Q, reporting a net loss of $13.97 million for the three months
ended June 30, 2011, compared with a net loss of $5.66 million for
the same period of 2010.
Net interest income increased slightly from $4.33 million for the
quarter ended June 30, 2010, to $4.38 million for the quarter
ended June 30, 2011.
The Company reported a net loss of $21.64 million for the six
months ended June 30, 2011, compared with a net loss of
$5.68 million for the corresponding period last year.
For the six months ended June 30, 2011, net interest income was
$8.99 million, a decrease of $334,000, or 3.58%, over the same
period in 2010.
During the first six months of 2011 the Company recorded
$17.61 million in provision for loan losses, an increase of
$6.20 million, or 54.36%, over the same period in 2010.
The Company's balance sheet at June 30, 2011, showed
$574.19 million in total assets, $570.10 million in total
liabilities, and stockholders' equity of $4.09 million.
As of June 30, 2011, Horry County State Bank was categorized as
"undercapitalized" and the Company was categorized as
"significantly undercapitalized."
The Company's losses for 2010 and the first half of 2011 have
adversely impacted its capital. As a result, the Company has been
pursuing a plan to increase its capital ratios in order to
strengthen its balance sheet and satisfy the commitments required
under the Consent Order that it entered into with the FDIC and the
State Board on Feb. 10, 2011.
In addition, the Consent Order requires the Company to achieve and
maintain, by July 10, 2011, Total Risk Based capital at least
equal to 10% of risk-weighted assets and Tier 1 capital at least
equal to 8% of total assets. The Company did not meet that
requirement and, as a result, submitted a revised capital plan to
the FDIC on July 15, 2011.
"If we continue to fail to meet the capital requirements in the
Consent Order in a timely manner, then this would result in
additional regulatory actions, which could ultimately lead to the
Bank being taken into receivership by the FDIC. Our auditors have
noted that the uncertainty of our ability to obtain sufficient
capital raises substantial doubt about our ability to continue as
a going concern."
A copy of the Form 10-Q is available at http://is.gd/IAXSHO
Loris, South Carolina-based HCSB Financial Corporation was
incorporated on June 10, 1999, to become a holding company for
Horry County State Bank (the "Bank"). The Bank is a state
chartered bank which commenced operations on Jan. 4, 1988. From
its 14 branch locations, the Bank offers a full range of deposit
services, including checking accounts, savings accounts,
certificates of deposit, money market accounts, and IRAs, as well
as a broad range of non-deposit investment services.
HUDSON HEALTHCARE: U.S. Trustee Wants Patient Care Ombudsman Named
------------------------------------------------------------------
Roberta A. DeAngelis, U.S. Trustee for Region 3, asks the U.S.
Bankruptcy Court for the District of New Jersey to designate the
Chapter 11 bankruptcy case of Hudson Healthcare, Inc., as a health
care business, and direct the appointment of a patient care
ombudsman pursuant to section 333 of the Bankruptcy Code.
The U.S. Trustee is represented by:
U.S. Department of Justice
Office Of The U.S. Trustee
Donald F. MacMaster, Esq.
One Newark Center, Suite 2100
Newark, NJ 07102
Tel: (973) 645-3014
Fax: (973) 645-5993
About Hudson Healthcare
Hudson Healthcare Inc. is the nonprofit operator of Hoboken
University Medical Center in Hoboken, New Jersey. Hudson
Healthcare filed for Chapter 11 protection (Bankr. D. N.J. Case
No. 11-33014) in Newark on Aug. 1, 2011, estimating assets and
debt of less than $50 million. Affiliate Hoboken Municipal
Hospital Authority also sought Chapter 11 protection.
Judge Donald H. Steckroth presides over the cases. Attorneys at
Trenk, Dipasquale, Webster, et al., serve as counsel to the
Debtor. Epiq Bankruptcy Solutions, LLC is the noticing and claims
agent.
In August 2011, the New Jersey Health Planning Board voted to
recommend to the Commissioner of Health to approve the sale of
Hoboken University Medical Center to HUMC Holdco, a private group
that also owns Bayonne Medical Center. Holdco has pledged to
maintain it as a hospital for at least seven years. The proposed
transaction totals $91.7 million, including a $51.6 million cash
payment to extinguish Hobokens' bond guarantee. The new owners
have pledged to put $20 million in capital improvements in the
hospital.
The U.S. Trustee for Region 3 appointed seven unsecured creditors
to serve on the Official Committee of Unsecured Creditors. Sills
Cummis & Gross P.C. represents the Committee.
INDIANAPOLIS DOWNS: Seeks Nod of Settlement With Cordish, Live
--------------------------------------------------------------
BankruptcyData.com reports that Indianapolis Downs filed with the
U.S. Bankruptcy Court a motion for approval of a settlement with
Cordish Entities, Power Plant Entertainment Casino Resorts Indiana
and Live Holdings!.
Cordish filed a $17 million proof of claim against Indianapolis
Downs regarding trademark and licensing fees. Under the
settlement, Cordish will have a prepetition unsecured non-priority
claim of $12 million, and the Debtors will pay Cordish a licensing
fee of 1.75% of its gross gaming value.
The Court scheduled a Sept. 19, 2011, hearing on the matter.
About Indianapolis Downs
Indianapolis Downs, LLC, operates a "racino," which is a combined
race track and casino, at a state-of-the-art 283 acre Shelbyville,
Indiana site. It also operates two satellite wagering facilities
in Evansville and Clarksville, Indiana. Total revenue for 2010
was $270 million, representing an 8.7% increase in 2009. The
casino captured 53% of the Indianapolis market share.
In July 2001, Indianapolis Downs was granted a permit to conduct a
horse track operation in Shelvyville, Indiana, and started
operating the track in 2002. It was granted permission to operate
the casino at the racetrack operation in May 2007. The casino
began operations in July 2010.
Indianapolis Downs and subsidiary, Indianapolis Downs Capital
Corp., sought Chapter 11 protection (Bankr. D. Del. Lead Case No.
11-11046) in Wilmington, Delaware, on April 7, 2011. Indianapolis
Downs estimated $500 million to $1 billion in assets and up to
$500 million in debt as of the Chapter 11 filing. According to a
court filing, the Debtor owes $98,125,000 on a first lien debt. It
also owes $375,000,000 on secured notes and $72,649,048 on
subordinated notes.
Matthew L. Hinker, Esq., Scott D. Cousins, Esq., and Victoria
Watson Counihan, Esq., at Greenberg Traurig, LLP in Wilmington,
Delaware, have been tapped as counsel to the Debtors. Christopher
A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware,
is the conflicts counsel. Lazard Freres & Co. LLC is the
investment banker. Bose Mckinney & Evans LLP and Bose Public
Affairs Group LLC serve as special counsel. Kobi Partners, LLC,
is the restructuring services provider. Epiq Bankruptcy
Solutions is the claims and notice agent.
INIVERSAL INC: Files for Chapter 7 Bankruptcy Protection
--------------------------------------------------------
Daily News in Los Angeles reports that Iniversal Inc., 2716
Standfield Drive, Topanga, filed for Chapter 7 bankruptcy
protection (LA11-43808-BB) in Los Angeles County, California. The
Company disclosed assets of $25,600 and debts of $2,161,583.
INNER CITY: Lenders Urge Court to Limit Cash Use
------------------------------------------------
Dow Jones' DBR Small Cap reports that the lenders trying to force
Inner City Media Corp. into bankruptcy are asking the court to
temporarily restrict the urban radio station owner's use of cash
in light of the allegedly "serious and outright disregard" the
company's parent has shown creditors.
As reported in the Troubled Company Reporter on Aug. 23, 2011, a
bankruptcy judge in Manhattan is set to consider a request to
place Inner City Media Corporation (Bankr. S.D.N.Y. Case No.
11-13967) and 12 affiliates in Chapter 11 bankruptcy. Affiliates
of Yucaipa and CF ICBC LLC, Fortress Credit Funding I L.P., and
Drawbridge Special Opportunities Fund Ltd., signed involuntary
Chapter 11 petitions for Inner City and its affiliates in order to
collect on a $254 million debt.
The Petitioning Creditors are party to the senior secured credit
facility pursuant to which they (or their predecessors in
interest) extended $197 million in loans to the Alleged Debtors to
be used for general corporate purposes. More than two years ago,
the Alleged Debtors defaulted under the Senior Secured Credit
Facility, and in any event the entire amount of principal and
accrued and unpaid interest and fees became immediately due and
payable on February 13, 2010. As a result, the Senior Lenders are
owed approximately $250 million in principal and accrued and
unpaid interest and fees as of the Involuntary Chapter 11 Petition
Date.
INNOVIDA HOLDINGS: Inepar Wins Nod to Buy Assets for $500,000 Cash
------------------------------------------------------------------
Paul Brinkmann at the South Florida Business Journal reports that
a subsidiary of Brazilian conglomerate Inepar has received
approval to purchase construction panel manufacturer InnoVida
Holdings for $500,000 cash, plus consideration for its $4 million
bankruptcy claim against InnoVida.
According to the report, Inepar subsidiary Milport Associates was
the only bidder in a Chapter 11 bankruptcy auction for InnoVida,
which was run by embattled Miami Beach entrepreneur Claudio
Osorio. The sale resolves one aspect of the controversy
surrounding Osorio, but does not resolve allegations that he
committed civil investor fraud.
Mr. Osorio is known as the former CEO of another failed company,
CHS Electronics, which declared bankruptcy in 2000. He is also a
well-known political fundraiser for such Democratic heavyweights
as Hillary Clinton.
U.S. Bankruptcy Judge Robert Mark gave verbal approval for the
sale in a hearing Thursday afternoon, notes Mr. Brinkmann.
The report notes other motions are pending in both this case
and Osorio's personal bankruptcy to convert both Chapter 11
reorganizations to Chapter 7 liquidations. That conversion would
strip Osorio of control over many of his remaining assets.
Antonio Amaral, an attorney for Milport, said Inepar is
investigating possible uses for InnoVida's patents and assets. He
said Osorio would have no role in that endeavor. Mr. Amaral said
Milport and Inepar have other construction business pursuits, and
the companies are evaluating whether to restart InnoVida's
business model.
Mark Meland, the trustee in InnoVida's bankruptcy, said he was
pleased with the sale because it provides some money for remaining
creditors and removes some liability associated with InnoVida.
Mr. Meland said his remaining duties will include evaluating
potential litigation targets for recovery of money.
Another creditor, CCH Housing, will receive $151,000 from the sale
proceeds. It had a $4 million claim against InnoVida.
Receiver Mark S. Meland, at Meland Russin & Budwick, PA, filed a
Chapter 11 petition for InnoVida Holdings, LLC, fdba COEG, LLC
(Bankr. S.D. Fla. Case No. 11-17702) on March 24, 2011. Separate
Chapter 11 petitions were also filed for these affiliates:
InnoVida MRD, LLC (Case No. 11-17704), InnoVida Services, Inc.
(Case No. 11-17705), and InnoVida Southeast, LLC (Case No. 11-
17706). Peter D. Russin, Esq., at Meland Russin & Budwick, P.A.,
serves as bankruptcy counsel. InnoVida Holdings has under $50,000
in assets and $10 million to $50 million in debts, according to
the petition.
Founder Claudio Eleazar and Amarilis Osorio filed a separate
Chapter 11 petition (Bankr. S.D. Fla. Case No. 11-17075) on
March 17, 2011.
IRON MINING: Files for Chapter 11 Protection
--------------------------------------------
BankruptcyData.com reports that Iron Mining Group, formerly
Worldvest and Catalyst Ventures, filed for Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 11-14032).
The Company, which mines iron ore with a focus on the acquisition
and development of iron ore mining properties in Chile and Mexico,
is represented by Stephen McNally of Wuersch & Gering.
Iron Mining Group, Inc., is a diversified global iron ore company
positioned to fuel China's next decade of urbanization and
industrial growth through the development of strategic mining and
trading opportunities with an emphasis on those located in North
and South America. IMG has signed sizeable multi-year offtake
agreement with Tianjin Bohai Steel Group for its current and
future iron ore supply. IMG consists of a global iron ore trading
group and direct mining operations in Mexico and Chile, where it
owns and controls a number of iron ore projects in various stages
of development.
IRON MINING: Case Summary & 10 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Iron Mining Group, Inc.
fka Worldvest, Inc.
Catalyst Ventures, Inc.
295 Madison Avenue, 12th Floor
New York, NY 10017
Bankruptcy Case No.: 11-14032
Chapter 11 Petition Date: August 24, 2011
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Debtor's Counsel: Stephen McNally, Esq.
WUERSCH & GERING, LLP
100 Wall Street, 21st Floor
New York, NY 10005
Tel: (212) 509-5050
Fax: (212) 509-9559
E-mail: stephen.mcnally@wg-law.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 10 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/nysb11-14032.pdf
The petition was signed by Garrett Krause, president.
IRVINE SENSORS: Reports $4.5 Million Net Income in July 3 Quarter
-----------------------------------------------------------------
Irvine Sensors Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting
net income of $4.50 million on $2.97 million of total revenues for
the 13-weeks ended July 3, 2011, compared with a net loss of
$2.62 million on $3.57 million of total revenues for the 13-weeks
ended June 27, 2010.
The Company also reported a net loss of $13.88 million on
$10.64 million of total revenues for the 39-weeks ended July 3,
2011, compared with a net loss of $7.76 million on $9.50 million
of total revenues for the same 39-weeks ended June 27, 2010.
The Company reported a net loss of $11.16 million on
$11.72 million of revenues for the fiscal year ended Oct. 3, 2010,
compared with a net loss of $914,700 on $11.54 million of revenues
for the fiscal year ended Sept. 27, 2009.
The Company's balance sheet at July 3, 2011, showed $12.16 million
in total assets, $29.49 million in total liabilities, and a
$17.32 million total stockholders' deficit.
Squar, Milner, Peterson, Miranda & Williamson, LLP, in Irvine,
Calif., expressed substantial doubt about the Company's ability to
continue as a going concern. The independent auditors noted that
as of Oct. 3, 2010, the Company has negative working capital of
$10.1 million and a stockholders deficit of $10.1 million.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/bcCsNl
About Irvine Sensors
Headquartered in Costa Mesa, Calif., Irvine Sensors Corporation
(OTC BB: IRSN) -- http://www.irvine-sensors.com/-- is a vision
systems company engaged in the development and sale of
miniaturized infrared and electro-optical cameras, image
processors and stacked chip assemblies and sale of higher level
systems incorporating said products. Irvine Sensors also conducts
research and development related to high density electronics,
miniaturized sensors, optical interconnection technology, high
speed network security, image processing and low-power analog and
mixed-signal integrated circuits for diverse systems applications.
ISP CHEMCO: S&P Raises Corporate Credit Rating to 'BB'
------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on Wayne,
N.J.-based specialty chemicals producer ISP Chemco LLC, including
the corporate credit rating to 'BB' from 'BB-', and assigned a
stable outlook. The upgrade follows the close of ISP's acquisition
by Ashland Inc. (BB/Stable/--). "We removed all ratings from
CreditWatch, where we had placed them with positive implications
on May 31, 2011," S&P related.
"We subsequently withdrew the corporate credit rating on ISP and
issue-level ratings on its debt to reflect the repayment of ISP's
rated debt issues in conjunction with the acquisition," S&P
stated.
IVOICE INC: Incurs $259,000 Second Quarter Net Loss
---------------------------------------------------
iVoice, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q reporting a net loss
of $259,296 on $65,733 of sales for the three months ended
June 30, 2011, compared with a net loss of $297,529 on $57,239 of
sales for the same period during the prior year.
For the six months ended June 30, 2011, the Company posted a
$567,825 net loss compared to a $391,208 net loss for the same
period last year.
The Company ended 2010 with a net loss of $1.5 million and 2009
with with net income of $219,780.
The Company's balance sheet at June 30, 2011, showed $1.46 million
in total assets, $3.78 million in total liabilities and a $2.32
million total stockholders' deficit.
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.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/q0KzDP
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.
J BAR C: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------
Debtor: J Bar C Enterprises, Inc.
dba Robinson Furniture
dba Thrifty Loan
316 East Broad Street
Mineola, TX 75773
Bankruptcy Case No.: 11-60769
Chapter 11 Petition Date: August 24, 2011
Court: United States Bankruptcy Court
Eastern District of Texas (Tyler)
Judge: Bill Parker
Debtor's Counsel: Howard Marc Spector, Esq.
SPECTOR & JOHNSON, PLLC
12770 Coit Road, Ste. 1100
Dallas, TX 75251
Tel: (214) 365-5377
Fax: (214) 237-3380
E-mail: hspector@spectorjohnson.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/txeb11-60769.pdf
The petition was signed by Cecil B. Robinson, president.
JACKSON GREEN: U.S. Trustee Unable to Form Committee
----------------------------------------------------
The United States Trustee said that a committee under 11 U.S.C.
Sec. 1102 has not been appointed because an insufficient number of
persons holding unsecured claims against Jackson Green LLC, have
expressed interest in serving on a committee.
The U.S. Trustee reserves the right to appoint such a committee
should interest developed among the creditors.
Based in Minocqua, Wisconsin, Jackson Green LLC owns a commercial
office building and parking lot in Chicago. Jackson Green
originally filed for Chapter 11 bankruptcy (Bankr. W.D. Wis. Case
No. 09-10099) on Jan. 9, 2009. The Court confirmed the Debtor's
chapter 11 plan on May 18, 2010.
Jackson Green returned to bankruptcy (Bankr. W.D. Wis. Case No.
11-14038) on June 23, 2011. Judge Thomas S. Utschig presides over
the so-called Chapter 22 case. The Law Office of Terrence J.
Byrne serves as the Debtor's Chapter 22 counsel.
In its schedules, the Debtor disclosed $25,194,530 in assets and
$22,838,968 in liabilities. The petition was signed by Paula
Heyes, member.
Secured lender Wells Fargo is represented by lawyers at Foley &
Lardner LLP.
JCREW: Bank Debt Trades at 13% Off in Secondary Market
------------------------------------------------------
Participations in a syndicated loan under which J.Crew is a
borrower traded in the secondary market at 87.15 cents-on-the-
dollar during the week ended Friday, Aug. 26, 2011, a drop of 1.75
percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 350 basis points above LIBOR to borrow
under the facility. The bank loan matures on Feb. 10, 2018, and
carries Moody's B1 rating and Standard & Poor's B rating. The
loan is one of the biggest gainers and losers among 70 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
J.Crew -- http://www.jcrew.com/-- is a nationally recognized
apparel and accessories retailer that differentiates itself
through high standards of quality, style, design and fabrics with
consistent fits and authentic details. J.Crew is an integrated
multi-channel, multi-brand specialty retailer that operates stores
and websites to consistently communicate with its customers. The
Company designs, markets and sells its products, including those
under the J.Crew, crewcuts and Madewell brands, offering complete
assortments of women's, men's and children's apparel and
accessories. Its customer base consists primarily of affluent,
college educated, professional and fashion-conscious women and
men. In 2011, J.Crew expanded its international e-commerce to
include shipping to the United Kingdom, while continuing to ship
anywhere in the U.S., Canada and Japan.
For the year ended January 29, 2011, J.Crew reported net income of
$121.5 million on total revenues of $1.72 billion compared with
net6 income of $123.4 million on total revenues of $1.58 billion
in 2010.
As of January 29, 2011, the Company's balance sheet showed $860.2
million in total assets, $349.0 million in total liabilities and
$511.1 million in total stockholders' equity.
JAMES RIVER: McCoy Receives Imminent Danger Order from MSHA
-----------------------------------------------------------
McCoy Elkhorn Coal Corporation, a subsidiary of James River Coal
Company, received an imminent danger order under section 107(a) of
the Federal Mine Safety and Health Act of 1977 stating that dust
control measures were not being taken on a haul road resulting in
no visibility for trucks on that road. The haul road was watered
to control the road dust which terminated the order.
The Dodd-Frank Wall Street Reform and Consumer Protection Act was
enacted on July 21, 2010. Section 1503 of the Act contains new
reporting requirements regarding mine safety, including disclosing
on a Current Report on Form 8-K the receipt of an imminent danger
order under section 107(a) of the Federal Mine Safety and Health
Act of 1977 issued by the federal Mine Safety and Health
Administration.
About James River
Headquartered in Richmond, Virginia, James River Coal Company
(NasdaqGM: JRCC) -- http://www.jamesrivercoal.com/-- mines,
processes and sells bituminous steam and industrial-grade coal
primarily to electric utility companies and industrial customers.
The company's mining operations are managed through six operating
subsidiaries located throughout eastern Kentucky and in southern
Indiana.
The Company's balance sheet at June 30, 2011, showed $1.42 billion
in total assets, $974.64 million in total liabilities and $453.47
million in total shareholders' equity.
* * *
James River carries a 'B' corporate credit rating from Standard &
Poor's Ratings Services, and 'B3' corporate family rating from
Moody's Investors Service.
As reported by the TCR on March 25, 2011, Moody's Investors
Service upgraded James River Coal Company's Corporate Family
Rating to 'B3' from 'Caa2'. The rating upgrade reflects post-
acquisition potential for significant increase in JRCC's
metallurgical coal production, increase in operational diversity
within Central Appalachia, and greater access to export markets.
The S&P corporate rating was upgraded from 'B-' in March 2011.
"The upgrade reflects S&P's view that the IRP acquisition provides
James River Coal exposure to the attractive metallurgical coal
market," said Standard & Poor's credit analyst Fred Ferraro. "The
acquisition also adds management experience in overseas marketing,
and expands the company's reserve life. Furthermore, S&P expects
that it will be funded in a way that is consistent with the
current capital structure so as to maintain the current credit
metrics."
JOHNSONIA BUILDING: Receivership Plan on Hold Until Aug. 30
-----------------------------------------------------------
Paula J. Owen at the Telegram & Gazette reports that tenants and
condo owners are still in limbo, waiting to see when they can
enter the fire-ravaged Johnsonia Building on Main Street, in
Fitchburg, Massachusetts, in hopes of finding something of their
belongings that is still salvageable.
In Fitchburg Housing Court, Judge Timothy F. Sullivan was to
consider the city's request to have the courts take over the
building and put it into receivership, according to the report.
Instead, the report relates, the judge accepted an agreement
proposed by building owner Clark Straight's lawyer.
Telegram & Gazette notes that the agreement gives all parties
involved until an Aug. 30 hearing in Worcester Housing Court to
come up with a plan for what to do with the building -- and how
and when former residents can gain access to their units.
All parties involved, including lawyers representing former
residents of the building, settled on the agreement before the
hearing, said Mr. Straight's lawyer, Michael P. Angelini, of
Bowditch & Dewey of Worcester, and Fitchburg City Solicitor
Michael J. Ciota, Telegram & Gazette says.
JOSEPH PERRONCELLO: Gets OK for Sept. 20 Auction for Building
-------------------------------------------------------------
Craig M. Douglas at Boston Business Journal reports that a 63-unit
apartment development in Cambridge, Massachusetts is on the fast
track to a foreclosure auction now that a Massachusetts bankruptcy
court judge has permitted the property's lender of record, Broder
Properties of Boston, to sell the residential complex.
According to the report, Broder has owned the note backing the
Cambridge Crossing project since around May, when it inked a deal
-- reportedly at a significant principal discount -- to acquire
the debt from the site's prior lender, Webster Bank of
Connecticut. The $15 million mortgage in question was originated
in December 2006 and was used to refinance an existing
$12.3 million mortgage Webster originated a year earlier.
The loans were to a Massachusetts entity run by Joseph
Perroncello, a Boston-based real estate developer who filed for
Chapter 11 bankruptcy protection in 2010.
The report says Perroncello acquired the property, a three-
building housing development, from the Archdiocese of Boston for
$5.3 million in 2004. The transaction was partially financed by a
$4.2 million mortgage from Boston Private Bank & Trust Co.
The auction is scheduled for Sept. 20 at 11 a.m. and will be
hosted by Daniel Flynn & Co. Inc. of Quincy.
About Joseph F. Perroncello
Boston, Massachusetts-based Joseph F. Perroncello has been engaged
in the business of real estate development and management,
including the development of twenty-five residential and mixed-use
projects in various Boston and Cambridge neighborhoods since 1983.
He filed for Chapter 11 bankruptcy protection on November 3, 2010
(Bankr. D. Mass. Case No. 10-22064). Richard A. Mestone, Esq., at
Mestone Hogan LLC, assists the Debtor in his restructuring effort.
The Debtor estimated his assets at $50 million to $100 million and
debts at $10 million to $50 million.
JOSEPH PRESCONTI: Guarantees $2.6MM Loans on Real Estate Ventures
-----------------------------------------------------------------
Richard Cowen at NorthJersey.com reports that the bankruptcy
filing of Passaic County Municipal Court judge Joseph Perconti
showed that Mr. Perconti guaranteed $2.6 million in loans
regarding four real estate ventures with Harold P. Cook III, a
fellow municipal judge in Passaic County.
According to the report, the projects are the redevelopment of the
Pan Chemical factory in Hawthorne, an industrial building in
Irvington, a strip mall in Lebanon, and a restaurant and two
apartments in Orange.
Mr. Cowen notes that Mr. Perconti had a minority stake in each
venture, according to the filing. He was also a partner with Mr.
Cook and two other investors, Bruce G. Bohuny and Gershon
Alexander, in developing Lenape Commons on Belmont Avenue in North
Haledon, which is now occupied by a branch office of the Lakeland
Bank. Mr. Perconti sold the land to the partnership for the
project and has since been paid.
Joseph Perconti filed for Chapter 11 protection (Bankr. D. N.J.
Case No. No. 11-28397) on June 16, 2011.
JURUPA VALLEY: To Get $1.7-Mil. Loan to Help Avoid Insolvency
-------------------------------------------------------------
City News Service reports that the new city of Jurupa Valley,
California, will receive a $1.7 million loan from Riverside County
intended to keep it from sinking into insolvency.
In a 4-0 vote -- with Supervisor Jeff Stone abstaining -- the
Board of Supervisors agreed last week to dip into the county
treasury for the sake of keeping Jurupa Valley's government
operating, City News Service says.
The city, along with Eastvale, Menifee and Wildomar, suffered a
major financial blow because of Senate Bill 89, a 2011-12 state
budget provision passed by the Legislature and signed into law by
Gov. Jerry Brown in the last week of June, according to the news
agency.
City News Service relates that the four cities, all of which have
incorporated in the last three years -- with Jurupa Valley
achieving cityhood on July 1 -- are facing a collective loss of
$14 million under SB 89.
According to the report, the bill swept more than $130 million in
vehicle license fees in-lieu of property tax revenue into an
account for law enforcement services that will help fund
"realignment," under which a number of previously state-controlled
functions are being shifted to localities, including juvenile
detention and adult parole.
City News Service relates that Supervisor John Tavaglione, who
sought the loan for Jurupa Valley, said cities in California that
incorporated after 2004 lost their VLF receipts because of the new
law.
"This was a $6.2 million hit to their budget, basically half of
their budget," the report quotes Mr. Tavaglione as saying.
"They're not getting any revenue right now, except for building
fees, but that's not much."
County Executive Officer Bill Luna said "in Jurupa Valley, the
problem is immediate cashflow to stay open," City News Service
adds.
LAS VEGAS SANDS: Bank Debt Trades at 9% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Las Vegas Sands
Corp. is a borrower traded in the secondary market at 90.94 cents-
on-the-dollar during the week ended Friday, Aug. 26, 2011, a drop
of 1.24 percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 275 basis points above LIBOR to borrow
under the facility. The bank loan matures on Nov. 26, 2016, and
carries Standard & Poor's 'BB' rating. The loan is one of the
biggest gainers and losers among 70 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday.
Las Vegas Sands Corp. owns and operates hotel and casino
integrated resort facilities in Las Vegas, NV, Bethlehem, PA,
Macau, China and Singapore. The company generates consolidated
annual net revenue of close to $7 billion.
As reported by the Troubled Company Reporter on June 17, 2011,
Standard & Poor's raised its corporate credit rating on the Las
Vegas Sands Corp. (LVSC) family of companies to 'BB' from 'BB-'.
Aside from Las Vegas Sands Corp., the LVSC family of rated
companies includes Las Vegas Sands LLC, its Venetian Casino Resort
LLC subsidiary, and affiliate VML U.S. Finance LLC. "All issue-
level ratings were also raised by one notch in conjunction with
the corporate credit rating upgrade. The rating outlook is
stable," S&P said.
"The rating upgrade reflects continued strong performance, and our
belief that under our updated long-term performance expectations,
Las Vegas Sands will maintain credit measures comfortably within
our threshold for a 'BB' corporate credit rating. While the
proposed Macau refinancing will add approximately $1.1 billion of
additional debt to prefund development, we expect consolidated
EBITDA to grow approximately 30% in 2011 compared with 2010, which
would result in consolidated operating lease-adjusted leverage
improving to the mid-4x area by the end of 2011. Given our
satisfactory assessment of LVSC's business risk profile, we would
be comfortable with leverage temporarily spiking as high as 5.5x
to fund development projects, but generally consider leverage
closer to 5x to be in line with a 'BB' corporate credit rating for
LVSC," S&P said.
On June 28, 2011, the TCR reported that Moody's revised Las Vegas
Sand Corp.'s rating outlook to positive from stable and affirmed
the company's Ba3 Corporate Family, Probability of Default, and
senior secured debt ratings. LVSC has an SGL-1 Speculative Grade
Liquidity rating.
The outlook revision to positive reflects a higher degree of
confidence on the part of Moody's that LVSC will be able to reduce
and sustain debt/EBITDA at or below 3.5 times on a gross basis,
the target leverage required for a one-notch ratings upgrade.
"Given Moody's current expectation of annual consolidated EBITDA
of between 2.7 and 2.8 billion for 2011, LVSC's debt/EBITDA will
likely be between 4.0 and 4.3 times by the end of that period, and
could reach 3.5 times by the end of 2012 if business conditions in
Asia remain strong," stated Keith Foley, a Senior Vice President
at Moody's. "However, LVSC would also need to adhere to a
conservative long-term financial policy in order to achieve a Ba2
Corporate Family Rating."
LAS VEGAS SANDS: Bank Debt Trades at 9% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Las Vegas Sands
Corp. is a borrower traded in the secondary market at 91.43 cents-
on-the-dollar during the week ended Friday, Aug. 26, 2011, a drop
of 0.75 percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 175 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 1, 2014, and
carries Standard & Poor's 'BB' rating. The loan is one of the
biggest gainers and losers among 70 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday.
Las Vegas Sands Corp. owns and operates hotel and casino
integrated resort facilities in Las Vegas, NV, Bethlehem, PA,
Macau, China and Singapore. The company generates consolidated
annual net revenue of close to $7 billion.
As reported by the Troubled Company Reporter on June 17, 2011,
Standard & Poor's raised its corporate credit rating on the Las
Vegas Sands Corp. (LVSC) family of companies to 'BB' from 'BB-'.
Aside from Las Vegas Sands Corp., the LVSC family of rated
companies includes Las Vegas Sands LLC, its Venetian Casino Resort
LLC subsidiary, and affiliate VML U.S. Finance LLC. "All issue-
level ratings were also raised by one notch in conjunction with
the corporate credit rating upgrade. The rating outlook is
stable," S&P said.
"The rating upgrade reflects continued strong performance, and our
belief that under our updated long-term performance expectations,
Las Vegas Sands will maintain credit measures comfortably within
our threshold for a 'BB' corporate credit rating. While the
proposed Macau refinancing will add approximately $1.1 billion of
additional debt to prefund development, we expect consolidated
EBITDA to grow approximately 30% in 2011 compared with 2010, which
would result in consolidated operating lease-adjusted leverage
improving to the mid-4x area by the end of 2011. Given our
satisfactory assessment of LVSC's business risk profile, we would
be comfortable with leverage temporarily spiking as high as 5.5x
to fund development projects, but generally consider leverage
closer to 5x to be in line with a 'BB' corporate credit rating for
LVSC," S&P said.
On June 28, 2011, the TCR reported that Moody's revised Las Vegas
Sand Corp.'s rating outlook to positive from stable and affirmed
the company's Ba3 Corporate Family, Probability of Default, and
senior secured debt ratings. LVSC has an SGL-1 Speculative Grade
Liquidity rating.
The outlook revision to positive reflects a higher degree of
confidence on the part of Moody's that LVSC will be able to reduce
and sustain debt/EBITDA at or below 3.5 times on a gross basis,
the target leverage required for a one-notch ratings upgrade.
"Given Moody's current expectation of annual consolidated EBITDA
of between 2.7 and 2.8 billion for 2011, LVSC's debt/EBITDA will
likely be between 4.0 and 4.3 times by the end of that period, and
could reach 3.5 times by the end of 2012 if business conditions in
Asia remain strong," stated Keith Foley, a Senior Vice President
at Moody's. "However, LVSC would also need to adhere to a
conservative long-term financial policy in order to achieve a Ba2
Corporate Family Rating."
LOCAL INSIGHT: Plans to Keep Moraine Campus After Emergence
-----------------------------------------------------------
Thomas Gnau at Dayton Daily News reports that Pat Nichols,
spokeswoman of Local Insight Media Holdings Inc., said the Company
has rebuilt the workforce of its Berry Co. LLC subsidiary to about
350 employees and plans to maintain Berry's Moraine campus as its
largest U.S. site after the company emerges from bankruptcy.
Mr. Nichols cautioned, however, that the Company will be owned by
a new group of lenders and governed by a new board of directors
after it emerges from bankruptcy, according to the report.
About Local Insight
J ilmington, Delaware-based Local Insight Media Holdings, Inc., is
a publisher of print and online yellow page directories in the
United States. Local Insight, along with affiliates, including
Local Insight Regatta Holdings, Inc., filed for Chapter 11
bankruptcy protection on (Bankr. D. Del. Lead Case No. 10-13677)
on Nov. 17, 2010.
Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Ross M.
Kwasteniet, Esq., at Kirkland & Ellis LLP, serve as the Debtors'
bankruptcy counsel. Curtis A. Hehn, Esq., Laura Davis Jones,
Esq., and Michael Seidl, Esq., at Pachulski Stang Ziehl & Jones
LLP, are the Debtors' co-counsel.
The Debtors' investment banker and financial advisor is Lazard
Freres & Co. LLC. The Debtors' independent auditor is Deloitte &
Touche LLP. The Debtors' interim management and restructuring
advisors are Alvarez & Marsal North America, LLC, and Avarez &
Marsal Private Equity Performance Improvement Group, LLC.
Kurtzman Carson Consultants LLC is the Debtors' notice and claims
agent.
Local Insight Media Holdings estimated assets of less than $50,000
and liabilities of $100 million to $500 million in its Chapter 11
petition. Local Insight Regatta reported consolidated assets of
$796,270,000 against consolidated debts of $669,612,000 as of
Sept. 30, 2010, according to its Form 10-Q filed with the
Securities and Exchange Commission.
The Official Committee of Unsecured Creditors has tapped Milbank,
Tweed, Hadley & McCloy LLP as its counsel; Morris, Nichols, Arsht
& Tunnel LLP as Delaware co-counsel; Houlihan Lokey Howard & Zukin
Capital Inc. as its financial advisor and investment banker; and
Mesirow Financial Consulting LLC as its forensic accountant and
litigation advisor.
LVBC REALTY: Case Summary & 6 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: LVBC Realty Holdings, LLC
4022 N Sheridan Rd., #2
Chicago, IL 60613
Bankruptcy Case No.: 11-34513
Chapter 11 Petition Date: August 24, 2011
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Pamela S. Hollis
Debtor's Counsel: Ben L. Schneider, Esq.
SCHNEIDER & STONE
8424 Skokie Blvd., Suite 200
Skokie, IL 60077
Tel: (847) 933-0300
Fax: (847) 676-2676
E-mail: ben@windycitylawgroup.com
Scheduled Assets: $5,350,240
Scheduled Debts: $4,224,376
A list of the Company's six largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/ilnb11-34513.pdf
The petition was signed by Anthony Rackey, manager.
LYMAN LUMBER: To Lay Off All 106 Workers in October
---------------------------------------------------
Leader-Telegram reports that Automated Building Components, a
manufacturer of building materials, has filed paperwork with the
state Department of Workforce Development indicating it would lay
off all 106 of its employees in the first two weeks of October.
According to the report, the timing of the layoffs would coincide
with the sale of the plant, Automated Building Components, to SP
Asset Management. However, a Chetek official said city leaders
aren't too worried because they are under the impression that the
new owners plan to reopen the plant with most or all of the
existing staff.
Lyman Lumber Cos. owns Automated Building Components. Lyman
recently announced plans to sells its Midwest operations to SP
Asset Management, an affiliate of New York City-based Steel
Partners Holdings.
About Lyman Lumber
Lyman Lumber Company sells building supplies, such as framing
beams, roofing materials, siding and drywall to residential
builders. The 113-year old company and several affiliates sought
Chapter 11 petition (Bankr. D. Minn. Lead Case No. 11-45190) on
Aug. 4, 2011. Judge Dennis O'Brien presides over the cases.
James L. Baillie, Esq., and Sarah M. Gibbs, Esq., at Fredrikson &
Bryon, P.A., serve as bankruptcy counsel. Lyman Lumber estimated
$50 million to $100 million in assets and $100 million to $500
million in debts. The petition was signed by James E. Hurd,
president and chief executive officer.
The affiliates that filed for Chapter 11 are: Lyman Holding
Company; Automated Building Components, Inc.; Building Material
Wholesalers; Carpentry Contractors Corp.; Construction Mortgage
Investors Co.; Lyman Development Co.; Lyman Lumber of Wisconsin,
Inc.; Lyman properties LLC; Mid-America Cedar, Inc.; Woodinville
Lumber, Inc.; and Woodinville Construction Services LLC.
BGA Management, LLC d/b/a Alliance Management, which developed and
executed a sale process and marketing strategy for the Debtors'
assets, may be reached at:
James Cullen
ALLIANCE MANAGEMENT
Carlson Towers 110
601 Carlson Parkway
Minneapolis, MN 55305
Tel: 952-475-2225
http://www.alliancemgmt.com/
MARITIME COMMUNICATIONS: Has Until Aug. 31 to File Schedules
------------------------------------------------------------
The Hon. David W. Houston, III, of the U.S. Bankruptcy Court for
the Northern District of Mississippi extended until Aug. 31, 2011,
Maritime Communications/Land Mobile, LLC's time to file its
schedules and statement of financial affairs.
The Debtor needed more time to complete the required documents.
The Debtor relates that the creditors will still have sufficient
time to examine and review the required documents because the
meeting of creditors has been set for Sept. 23, 2011.
Maritime Communications/Land Mobile, LLC filed a Chapter 11
petition, (Bankr. D.N.J. Case No. 11-13463) on Aug. 1, 2011, in
Aberdeeen, Mississippi. Craig M. Geno, Esq. at Harris Jernigan &
Geno, Pllc, in Ridgeland, Mississippi, serves as counsel to the
Debtor. The Debtor estimated up to $50 million in assets and up
to $50 million in liabilities.
MARITIME COMMUNICATIONS: Files List of Largest Unsecured Creditors
------------------------------------------------------------------
Maritime Communications/Land Mobile, LLC, filed with the U.S.
Bankruptcy Court for the Northern District of Mississippi a list
of its largest unsecured creditors, disclosing:
Name of creditor Amount of claim
---------------- ---------------
Sexton, Inc. $390,306
P.O. Box 369
Decatur, AL 35602
James L. Teel $320,000
500 N. Interlachen
Winter Park, FL 32789
Clark And Whitney deR. Bullock $250,000
1440 S. Ocean Blvd.
Pompano Beach, FL 33062
Justin Shelton $250,000
811 6th Ave. N.
Columbus, MS 39701
Retzer Resources $250,000
P.O. Box 4457
Greenville, MS 38794
William Isaacson $250,000
5301 Wisconsin Ave. N.W.
Washington, DC 20015
Wiltshire & Grannis LLP $205,892
Lynette A. Mccary $177,000
Harrison J. Shull M.D. $177,000
Patrick B. Trammell $136,000
David Shelton $125,000
Goddin Madbride Squeri Day, et al. $103,684
Michael P. Dunn $97,576
James Tatum $88,500
Bruce A. Davis, M.D. $87,500
Keller And Heckman LLP $80,686
McSwain Communications $50,194
Collateral Plus, LLC $50,000
Robert S. Caradine $50,000
Douglas C. Sellers $48,788
Maritime Communications/Land Mobile, LLC filed a Chapter 11
petition, (Bankr. D.N.J. Case No. 11-13463) on Aug. 1, 2011, in
Aberdeeen, Mississippi. Craig M. Geno, Esq. at Harris Jernigan &
Geno, Pllc, in Ridgeland, Mississippi, serves as counsel to the
Debtor. The Debtor estimated up to $50 million in assets and up
to $50 million in liabilities.
MARK BURNELL: Expects to Emerge From Bankruptcy in 30 to 45 Days
----------------------------------------------------------------
Mark Basch at the Florida Times-Union reports that the judge has
still not set a confirmation date, but attorneys for Mark Brunell
are hopeful that the former Jacksonville Jaguars quarterback can
emerge from bankruptcy in 30 to 45 days.
According to the report, Mr. Brunell, who now plays for the New
York Jets, originally filed for a Chapter 11 debt reorganization
in in June 2010. The disclosure statement filed in court
describing his plan to restructure his debts, Mr. Brunell was
forced into bankruptcy because of two failed business
partnerships.
The report says U.S. Bankruptcy Judge Jerry Funk said he would not
set a hearing date to confirm the plan until Mr. Brunell's
attorneys file an addendum to the disclosure statement. The U.S.
Trustee administering the bankruptcy case filed an objection to
the disclosure statement last month, saying it did not give enough
information about Brunell's income and other financial data.
Mr. Brunell's attorney Robert Wilcox said he has verbally agreed
with the U.S. Trustee about the additional information that is
needed to be disclosed and he agreed to file the addendum within
10 days. Judge Funk said once it is filed, if the U.S. Trustee
approves, he will set a date to confirm the plan and get Brunell
out of bankruptcy.
Mr. Wilcox said he doesn't think the reorganization plan will have
any difficulty getting confirmed because no creditors have
objected.
About Mark Brunell
Mark Brunell is a former National Football League quarterback.
Mr. Brunell played for the Jacksonville Jaguars and has earned
more than $50 million playing football. Mr. Brunell, a three-time
Pro Bowl selection, is involved with a real estate project that is
being foreclosed upon in Jacksonville Beach and other failed
investments in Michigan.
Mr. Brunell filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case
No. 10-05550) on June 25, 2010. In court papers, he disclosed
$5.5 million in assets and debts of $24.7 million, mostly tied to
failed real-estate investments.
MAYSVILLE INC: FEP Wants Case Dismissed as Bad Faith Filing
-----------------------------------------------------------
Fifteen Encore Platinum LLC asks Judge Laurel M. Isicoff of the
U.S. Bankruptcy Court for the Southern District of Florida (Miami)
to dismiss the Chapter 11 case of Maysville, Inc., complaining
that the Debtor's second Chapter 11 case was filed in bad faith.
FEP is successor-in-interest to MUNB Loan Holdings, LLC, the
Debtor's primary secured lender in its prior Chapter 11 case.
According to James D. Gassenheimer, Esq., at Berger Singerman, in
Miami, Florida, the facts presented in the Debtor's second
bankruptcy case satisfy a majority, if not all, of the factors In
re Phoenix Piccadilly, Ltd., 849 F.2d 1393, 1394 (11th Cir. 1988),
which a bankruptcy court is to evaluate when considering a motion
to dismiss. Mr. Gassenheimer points out that:
* The Debtor has only one asset, the property known as the
Platinum Condominium located at Biscayne Boulevard and 29th
Street in Miami, Florida.
* The Debtor has few unsecured creditors, whose claims are
relatively small in relation to the claim of FEP. In fact, a
review of the Debtor's List of Creditors Holding 20 Largest
Unsecured Claims reveals that the majority of the Debtor's
unsecured creditors are individuals with claims for "Rent
Deposit" in an "Unknown" amount.
* The Debtor has few employees.
* The Property is subject to a foreclosure action filed by MUNB
as a result of arrearages on its $40 million debt.
* The Debtor's purpose in attempting to "reorganize" is to make
an end-run around the final judgment entered in the pending
state court Foreclosure Action.
* Most importantly, the timing of the filing of the Second
Bankruptcy Case evidences an interest to delay or frustrate
the legitimate effort of FEP to enforce its rights in the
Foreclosure Action.
Furthermore, Mr. Gassenheimer complains that FEP is grossly
undersecured and the Debtor has no equity in the Property. In
sum, the Debtor has little, if any, prospect of reorganization, he
asserts.
Mr. Gassenheimer emphasized that the timing of the filing of the
Second Bankruptcy Case affirmatively demonstrates the Debtor's
desire to delay or frustrate the efforts of FEP to enforce its
rights. The Second Bankruptcy Case was filed on August 11, 2011,
just one day before the August 12, 2011 sale date set by the Final
Judgment. Furthermore, he notes, the Second Bankruptcy Case was
filed without a First-Day Declaration, without a Case Management
Summary, without Schedules or a Statement of Financial Affairs,
and without acknowledgment by the Debtor of its status as a Single
Asset Real Estate business despite the SARE Order entered in the
First Bankruptcy Case. Even more mystifying is the Debtor's
assertion in its Chapter 11 petition that "Debtor estimates that
funds will be available for distribution to unsecured creditors,"
he tells the Court. He recalls that at the Jan. 27, 2011 Hearing
in the First Bankruptcy Case, the Court specifically found that
"there are no assets that could be administered for the benefit of
unsecured creditors."
The Debtor's complete lack of candor in something as simple as a
voluntary petition for relief is telling, and undoubtedly is a
harbinger of things to come, Mr. Gassenheimer avers.
For the reasons stated, FEP asks the Court to dismiss the case.
In the alternative, FEP asks the Court to lift the automatic stay
to allow it to enforce its rights in the Foreclosure Action under
applicable state law.
FEP is represented by:
James D. Gassenheimer, Esq.
BERGER SINGERMAN
200 South Biscayne Boulevard, Suite 1000
Miami, FL 33131
Tel: (305) 755-9500
Fax: (305) 714-4340
E-mail: jgassenheimer@bersingerman.com
Hearing on the motion is scheduled for Aug. 31, 2011, at 11:00
a.m.
About Maysville, Inc.
Maysville, Inc., owns and rents condominium and apartment units in
a property called the Platinum Condominium located at Biscayne
Boulevard and 29th Street in Miami, Florida.
Maysville filed its second voluntary petition under Chapter 11 on
August 11, 2011, with the U.S. Bankruptcy Court for the Southern
District of Florida (Miami) before the Hon. Laurel M. Isicoff.
The bankruptcy case is Maysville, Inc., Case No. 11-32532.
Jeffrey P. Bast, Esq., at Bast Amron LLP, in Miami, Florida --
jbast@bastamron.com -- serves as the Debtor's bankruptcy counsel.
Jeffery J. Pardo, Esq., at Pardo Gainsburg P.L., in Miami,
Florida, is the Debtor's special litigation counsel.
The Debtor listed $17,590,927 in assets and $25,076,637 in
liabilities.
A meeting of creditors required under Section 341(a) of the
Bankruptcy Code will be held on September 13, 2011, at 11:30 a.m.,
at 51 SW First Ave, Room 1021, in Miami, Florida.
Deadline to file a complaint to determine dischargeability of
certain debts is November 14, 2011. Proofs of Claim are due by
December 12, 2011.
MAYSVILLE INC: FEP Seeks Transfer of Rents Escrow Account
---------------------------------------------------------
Fifteen Encore Platinum LLC asks Judge Laurel M. Isicoff of the
U.S. Bankruptcy Court for the Southern District of Florida (Miami)
to transfer the rents escrow account and otherwise continue in
force the rents escrow account recognized in Maysville, Inc.'s
prior Chapter 11 case.
On Nov. 10, 2004, the Debtor borrowed more than $40 million from
MUNB Loan Holdings, LLC, which loan was secured by the property
known as the Platinum Condominium located at Biscayne Boulevard
and 29th Street in Miami, Florida, and its adjacent rental
apartment buildings owned by the Debtor. The Debtor's obligations
under the Development Loan are guaranteed by its principals: Alex
Redondo, Aurora Redondo and Carmen Redondo.
The Debtor's obligations under the Development Loan became fully
matured on January 1, 2008. However, the Debtor failed to pay
nearly $25 million of the total amount owed to MUNB under the
loan.
After Maysville defaulted on its obligations under the Development
Loan, MUNB filed a complaint on June 1, 2009 against Maysville and
the Guarantors, among other defendants in a state court proceeding
styled to foreclose on its liens and security interests in the
Collateral.
However, on June 28, 2010 -- the eve of the hearing on MUNB's
Summary Judgment Motion -- the Debtor commenced bankruptcy
proceedings by the filing of a voluntary Chapter 11 petition in
this Court. The hearing on MUNB's Summary Judgment Motion was
stayed as a result.
In a motion it filed on July 23, 2010, the Debtor acknowledged
that in the Foreclosure Action, the State Court entered an
order requiring, among other things, Maysville to deposit into an
interest earning escrow account for the benefit of Mellon United
National Bank, MUNB's predecessor, all rents and other income
derived from the Property less operating expenses on a monthly
basis.
On August 10, 2011, MUNB assigned to FEP any and all right, title
and interest of MUNB in and to the Final Judgment against the
Debtor, including rights against the Debtor in regard to any
deficiency, reserving to MUNB claims against the guarantors. The
assignment included all rights of MUNB to make a credit bid at any
foreclosure sale held or to be held in the Foreclosure. On
August 11, 2011, the State Court granted FEP's motion to recognize
transfer of interest and addition/partial substitution of party
plaintiff.
On August 11, 2011 -- the eve of the sale of the Property in the
Foreclosure Action -- the Debtor commenced the present bankruptcy
proceedings.
The Rents Order required the deposit of the July rents on or
before August 15, 2011. As of August 20, FEP has been advised by
MUNB that the required deposit has not been made and efforts to
confirm the deposit with Debtor's counsel have been unsuccessful,
James D. Gassenheimer, Esq., at Berger Singerman, in Miami,
Florida, tells the Court.
FEP thus asks the Court to direct the transfer of the account,
order an accounting of the July rents, and direct that there be no
use of FEP's cash collateral, to the extent the Court determines
that the Debtor still has an interest in the Rents post-judgment.
About Maysville, Inc.
Maysville, Inc., owns and rents condominium and apartment units in
a property called the Platinum Condominium located at Biscayne
Boulevard and 29th Street in Miami, Florida.
Maysville filed its second voluntary petition under Chapter 11 on
August 11, 2011, with the U.S. Bankruptcy Court for the Southern
District of Florida (Miami) before the Hon. Laurel M. Isicoff.
The bankruptcy case is Maysville, Inc., Case No. 11-32532.
Jeffrey P. Bast, Esq., at Bast Amron LLP, in Miami, Florida --
jbast@bastamron.com -- serves as the Debtor's bankruptcy counsel.
Jeffery J. Pardo, Esq., at Pardo Gainsburg P.L., in Miami,
Florida, is the Debtor's special litigation counsel.
The Debtor listed $17,590,927 in assets and $25,076,637 in
liabilities.
A meeting of creditors required under Section 341(a) of the
Bankruptcy Code will be held on September 13, 2011, at 11:30 a.m.,
at 51 SW First Ave, Room 1021, in Miami, Florida.
Deadline to file a complaint to determine dischargeability of
certain debts is November 14, 2011. Proofs of Claim are due by
December 12, 2011.
MAYSVILLE INC: Seeks Authority to Use Cash Collateral
-----------------------------------------------------
Maysville, Inc., seeks authority from Judge Laurel M. Isicoff of
the U.S. Bankruptcy Court for the Southern District of Florida
(Miami) to use cash collateral securing its prepetition
indebtedness.
The Debtor says it will use the cash collateral during the interim
cash collateral period to pay association dues, utilities and
otherwise maintain and protect its real property.
The Debtor asserts that the continued operation of its business
will preserve its going concern value, enable it to capitalize on
that value through a reorganization strategy, and ultimately
facilitate its ability to confirm a Chapter 11 plan. If it is not
allowed to use cash collateral, it will be unable to operate and
potentially cause harm to the property, the Debtor tells the
Court.
Prior to Aug. 10, 2011, the Debtor has one secured lender with a
lien on cash collateral. Specifically, MUNB Loan Holdings, LLC,
held a first priority mortgage secured by the property and has a
foreclosure judgment in the approximate amount of $23 million.
The Debtor reserves the right to challenge the extent and priority
of Mellon's lien on the Property and cash collateral.
The Debtor says it has filed the bankruptcy case to restructure
its debt and pursue a traditional Chapter 11 reorganization plan
by paying the liquidation value to its unsecured creditors and to
service its debts to Mellon over time through a plan of
reorganization.
The Debtor relates that it primarily generates income from renting
the condominium and apartment units in its Miami-Dade, Florida
property. At the Petition Date, the Debtor had a total balance of
approximately $14,653 in its operating account, $533,129 in a
rents escrow account and the Property generates approximately
$98,000 per month.
On August 10, 2011, Mellon assigned its Judgment to Fifteen Encore
Platinum Properties, LLC, but the Debtor says it appears that
Mellon has retained certain rights to pursue unsecured deficiency
claims against the Debtor.
A full-text copy of the Cash Collateral Motion with accompanying
monthly cash flow budget is available for free at:
http://bankrupt.com/misc/21_MAYSVILLEcashcoll.pdf
Hearing on the Motion is scheduled for August 31, 2011, at 11:00
a.m.
About Maysville, Inc.
Maysville, Inc., owns and rents condominium and apartment units in
a property called the Platinum Condominium located at Biscayne
Boulevard and 29th Street in Miami, Florida.
Maysville filed its second voluntary petition under Chapter 11 on
August 11, 2011, with the U.S. Bankruptcy Court for the Southern
District of Florida (Miami) before the Hon. Laurel M. Isicoff.
The bankruptcy case is Maysville, Inc., Case No. 11-32532.
Jeffrey P. Bast, Esq., at Bast Amron LLP, in Miami, Florida --
jbast@bastamron.com -- serves as the Debtor's bankruptcy counsel.
Jeffery J. Pardo, Esq., at Pardo Gainsburg P.L., in Miami,
Florida, is the Debtor's special litigation counsel.
The Debtor's primary secured creditor, Fifteen Encore Platinum
LLC, is represented by James D. Gassenheimer, Esq., at Berger
Singerman, in Miami, Florida -- jgassenheimer@bersingerman.com
The Debtor listed $17,590,927 in assets and $25,076,637 in
liabilities.
A meeting of creditors required under Section 341(a) of the
Bankruptcy Code will be held on September 13, 2011, at 11:30 a.m.,
at 51 SW First Ave, Room 1021, in Miami, Florida.
Deadline to file a complaint to determine dischargeability of
certain debts is November 14, 2011. Proofs of Claim are due by
December 12, 2011.
MAYSVILLE INC: Section 341(a) Meeting Scheduled for Sept. 13
------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of
Maysville, Inc.'s creditors on Sept. 13, 2011, at 11:30 a.m., at
51 SW First Ave, Room 1021, in Miami, Florida.
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.
The deadline to file a complaint to determine dischargeability of
certain debts is Nov. 14, 2011. Proofs of Claim are due by
Dec. 12, 2011.
About Maysville, Inc.
Maysville, Inc., owns and rents condominium and apartment units in
a property called the Platinum Condominium located at Biscayne
Boulevard and 29th Street in Miami, Florida.
Maysville filed its second voluntary petition under Chapter 11 on
August 11, 2011, with the U.S. Bankruptcy Court for the Southern
District of Florida (Miami) before the Hon. Laurel M. Isicoff.
The bankruptcy case is Maysville, Inc., Case No. 11-32532.
Jeffrey P. Bast, Esq., at Bast Amron LLP, in Miami, Florida --
jbast@bastamron.com -- serves as the Debtor's bankruptcy counsel.
Jeffery J. Pardo, Esq., at Pardo Gainsburg P.L., in Miami,
Florida, is the Debtor's special litigation counsel.
The Debtor's primary secured creditor, Fifteen Encore Platinum
LLC, is represented by James D. Gassenheimer, Esq., at Berger
Singerman, in Miami, Florida -- jgassenheimer@bersingerman.com
The Debtor listed $17,590,927 in assets and $25,076,637 in
liabilities.
MAYSVILLE INC: Seeks to Employ Bast Amron as Bankruptcy Counsel
---------------------------------------------------------------
Maysville, Inc., asks permission from Judge Laurel M. Isicoff of
the U.S. Bankruptcy Court for the Southern District of Florida
(Miami) to employ Bast Amron LLP as counsel, nunc pro tunc to the
Aug. 11, 2011 Petition Date.
As bankruptcy counsel, BA will:
(a) advise the Debtor with respect to its responsibilities in
complying with the United States Trustee's Guidelines and
Reporting Requirements and with the rules of the Court;
(b) prepare motions, pleadings, orders, applications, adversary
proceedings, and other legal documents necessary in the
administration of the Chapter 11 cases;
(c) protect the interests of the Debtor in all matters pending
before the Court; and
(d) represent the Debtor in negotiations with their creditors
and in the preparation of a plan.
Jeffrey P. Bast, Esq., a member of Bast Amron LLP, in Miami,
Florida, assures the Court that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code.
Mr. Bast will be paid his current standard rate at $340 per hour.
Mr. Bast discloses that BA has received a $30,000 retainer paid on
July 14, 2011, and an additional $10,000 on Aug. 11, 2011, both
paid by Kamany Realty Property Management, owned by the
principals. BA incurred fees in preparation for the filing of
Debtor's Chapter 11 bankruptcy prior to the date of filing in the
amount of $33,942.88, plus the filing fee of $1,039.00, for a
total of $34,981.88, which amount was applied to the retainer
provided, leaving a balance of $5,018.12 in the retainer account
as of the Petition Date.
The firm can be reached at:
Jeffrey P. Bast, Esq.
Brett M. Amron, Esq.
Morgan B. Edelboim, Esq.
BAST AMRON LLP
SunTrust International Center
One Southeast Third Avenue
Suite 1440
Miami, FL 33131
Telephone: (305) 379-7904
Facsimile: (305) 379-7905
E-mail: jbast@bastamron.com
bamron@bastamron.com
medelboim@bastamron.com
Hearing on the application is scheduled for Sept. 12, 2011, at
11:45 a.m.
About Maysville, Inc.
Maysville, Inc., owns and rents condominium and apartment units in
a property called the Platinum Condominium located at Biscayne
Boulevard and 29th Street in Miami, Florida.
Maysville filed its second voluntary petition under Chapter 11 on
August 11, 2011, with the U.S. Bankruptcy Court for the Southern
District of Florida (Miami) before the Hon. Laurel M. Isicoff.
The bankruptcy case is Maysville, Inc., Case No. 11-32532.
Jeffery J. Pardo, Esq., at Pardo Gainsburg P.L., in Miami,
Florida, is the Debtor's special litigation counsel.
The Debtor's primary secured creditor, Fifteen Encore Platinum
LLC, is represented by James D. Gassenheimer, Esq., at Berger
Singerman, in Miami, Florida -- jgassenheimer@bersingerman.com
The Debtor listed $17,590,927 in assets and $25,076,637 in
liabilities.
A meeting of creditors required under Section 341(a) of the
Bankruptcy Code will be held on September 13, 2011, at 11:30 a.m.,
at 51 SW First Ave, Room 1021, in Miami, Florida.
Deadline to file a complaint to determine dischargeability of
certain debts is November 14, 2011. Proofs of Claim are due by
December 12, 2011.
MAYSVILLE INC: Seeks to Hire Pardo Gainsburg as Special Counsel
---------------------------------------------------------------
Maysville, Inc., asks permission from Judge Laurel M. Isicoff of
the U.S. Bankruptcy Court for the Southern District of Florida
(Miami) to employ Pardo Gainsburg P.L. as its special counsel.
PG will serve as the Debtor's counsel in relation with an ongoing
litigation against The Whiting Turner Contracting Company, the
contractor of the Debtor's six-apartment building in Miami called
the Platinum Condominium. During the construction of the project,
the contractor built the main staircase in violation of the
Florida Minimum Building Code, and as a result of delays in
completion of construction, the Debtor suffered substantial
financial losses.
By the time that the contractor corrected the defective
construction, the accumulated interest to the construction lender
and the market collapse for condominium sales rendered the Debtor
unable to retire the construction loan as expected. The Debtor
managed and operated the Property for 24 years up prior to the
unfortunate change of events created by the general contractor's
wrongdoing.
Pending in the Circuit Court of Miami-Dade County is the Debtor's
legal action against the general contractor and others who Debtor
believes are liable for its damages. Discovery is ongoing in the
Construction Litigation.
As counsel, PG will prosecute the Construction Litigation,
negotiate any resolution of the Construction Litigation, and
represent the interests of Maysville in the Construction
Litigation and protect Maysville's rights in connection with
Construction Litigation.
As contingency fee, PG will recover 35% of any Gross Recovery
thereafter through trial, or 45% of any Gross Recovery if the case
should be resolved on or after appeal. The Debtor will reimburse
PG for any necessary out-of-pocket expenses. The Debtor has
previously paid PG a refundable retainer of $5,000.
Jeffery J. Pardo, Esq., at Pardo Gainsburg P.L., in Miami,
Florida, assures the Court that his firm does not represent any
interest adverse to the Debtor or its estate, and is a
"disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached at:
Pardo Gainsburg, P.L.
COMMERCIAL & CONTRACT LITIGATION SPECIALISTS
200 SE 1st Street, Suite 700
Miami, Florida 33131
Tel: (305) 358-1001
Fax: (305) 358-2001
E-mail: spardo@pardogainsburg.com
Hearing on the application is scheduled for Sept. 12, 2011, at
11:45 a.m.
About Maysville, Inc.
Maysville, Inc., owns and rents condominium and apartment units in
a property called the Platinum Condominium located at Biscayne
Boulevard and 29th Street in Miami, Florida.
Maysville filed its second voluntary petition under Chapter 11 on
August 11, 2011, with the U.S. Bankruptcy Court for the Southern
District of Florida (Miami) before the Hon. Laurel M. Isicoff.
The bankruptcy case is Maysville, Inc., Case No. 11-32532.
Jeffrey P. Bast, Esq., at Bast Amron LLP, in Miami, Florida --
jbast@bastamron.com -- serves as the Debtor's bankruptcy counsel.
The Debtor's primary secured creditor, Fifteen Encore Platinum
LLC, is represented by James D. Gassenheimer, Esq., at Berger
Singerman, in Miami, Florida -- jgassenheimer@bersingerman.com
The Debtor listed $17,590,927 in assets and $25,076,637 in
liabilities.
A meeting of creditors required under Section 341(a) of the
Bankruptcy Code will be held on September 13, 2011, at 11:30 a.m.,
at 51 SW First Ave, Room 1021, in Miami, Florida.
Deadline to file a complaint to determine dischargeability of
certain debts is November 14, 2011. Proofs of Claim are due by
December 12, 2011.
MAYSVILLE INC: Files Schedules of Assets and Liabilities
--------------------------------------------------------
Maysville, Inc., filed with the U.S. Bankruptcy Court for the
Southern District of Florida (Miami) its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------- -----------
A. Real Property $11,969,705
B. Personal Property $5,621,222
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $12,697,178
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $12,379,458
------------ --------------
TOTAL $17,590,927 $25,076,637
Full-text copies of the Schedules are available for free
at http://bankrupt.com/misc/14_MAYSVILLEschedules.pdf
About Maysville, Inc.
Maysville, Inc., owns and rents condominium and apartment units in
a property called the Platinum Condominium located at Biscayne
Boulevard and 29th Street in Miami, Florida.
Maysville filed its second voluntary petition under Chapter 11 on
August 11, 2011, with the U.S. Bankruptcy Court for the Southern
District of Florida (Miami) before the Hon. Laurel M. Isicoff.
The bankruptcy case is Maysville, Inc., Case No. 11-32532.
Jeffrey P. Bast, Esq., at Bast Amron LLP, in Miami, Florida --
jbast@bastamron.com -- serves as the Debtor's bankruptcy counsel.
Jeffery J. Pardo, Esq., at Pardo Gainsburg P.L., in Miami,
Florida, is the Debtor's special litigation counsel.
The Debtor's primary secured creditor, Fifteen Encore Platinum
LLC, is represented by James D. Gassenheimer, Esq., at Berger
Singerman, in Miami, Florida -- jgassenheimer@bersingerman.com
A meeting of creditors required under Section 341(a) of the
Bankruptcy Code will be held on September 13, 2011, at 11:30 a.m.,
at 51 SW First Ave, Room 1021, in Miami, Florida.
Deadline to file a complaint to determine dischargeability of
certain debts is November 14, 2011. Proofs of Claim are due by
December 12, 2011.
MEDASSETS INC: Moody's Affirms 'B1' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service affirmed the B1 Corporate Family and
Probability of Default ratings for MedAssets, Inc., as well as the
Ba3 (LGD3, 32%) rating on its senior secured credit facilities and
B3 (LGD5, 86%) rating on its unsecured notes. At the same time,
Moody's lowered MedAssets' Speculative Grade Liquidity rating to
SGL-3 from SGL-2. This action follows the company's announcement
that its Board of Directors has approved a share repurchase plan
of up to $25 million worth of the company's common stock, and the
announcement that it made a $25 million voluntary prepayment on
its outstanding term loan in August 2011. The outlook for the
ratings is stable.
This is a summary of Moody's actions:
MedAssets, Inc.
Affirmed B1 Corporate Family Rating
Affirmed B1 Probability of Default Rating
Affirmed Ba3 (LGD3, 32%) on senior secured revolving credit
facility
Affirmed Ba3 (LGD3, 32%) on senior secured term loan
Affirmed B3 (LGD5, 86%) on senior unsecured notes
The following rating was downgraded:
Speculative Grade Liquidity Rating, downgraded to SGL-3 from SGL-2
The ratings outlook is stable.
RATINGS RATIONALE
The B1 Corporate Family Rating reflects the company's high
financial leverage, its small size relative to many other rated
borrowers as well as large industry players, and its aggressive
financial policies. The ratings also reflect Moody's consideration
of the favorable business fundamentals within MedAssets' Revenue
Cycle Management (RCM) and Spend and Clinical Resource Management
(SCM) segments, as well as the company's relatively large and
geographically diverse customer base.
The rating outlook is stable. Although credit metrics are
currently weak for the B1 rating category, the outlook reflects
Moody's anticipation that the company will focus on reducing
leverage through both debt repayment and EBITDA expansion. For the
twelve months ended June 30, 2011, Moody's estimates pro forma
adjusted total debt to EBITDA of 5.5 times. This estimate includes
the $25 million voluntary prepayment on the company's outstanding
term loan, an estimate of $15 million of unrealized future cost
synergies, and the reclassification of the $122 million deferred
purchase consideration for the Broadlane acquisition (due by
January 4, 2012) as debt.
The revision of the company's Speculative Grade Liquidity Rating
to SGL-3 from SGL-2 reflects Moody's expectation that the
company's liquidity will be adequate over the next twelve months.
The $122 million deferred obligation related to the Broadlane
acquisition is due on or before January 4, 2012, and the company
has stated that this payment will be funded using cash on hand and
a portion of its revolving credit facility. Moody's anticipates
the company's financial flexibility will decline over the near-
term to fund the deferred payment obligation, as well as up to $25
million of share repurchases under the new board-approved
authorization. In addition, as a result of the share repurchase
plan, Moody's now anticipates that amounts to be drawn under the
revolver to fund the deferred purchase obligation will rise
commensurately, reducing both revolver availability and cushion
under the company's financial covenants as step-downs approach
over the next few quarters.
An upgrade is unlikely over the near-term given the company's high
financial leverage. For an upgrade to occur, Moody's would expect
to see leverage returning to 3.5 times and free cash flow coverage
of debt in excess of 8%. This can be achieved if the company
exhibits robust growth rates, materially reduces leverage through
a combination of debt repayment and increased profitability, and
successfully attains cost synergies related to the Broadlane
acquisition.
A downgrade could occur if Moody's believes the company is
unlikely to reduce leverage to below 5.0 times by the end of 2012
on a Moody's adjusted basis. This could occur if the company
experiences slower growth within any of its business lines, or if
the company increases its acquisition activity or other
shareholder initiatives beyond Moody's current expectations.
The principal methodologies used in rating MedAssets were Global
Business & Consumer Service Industry published in October 2010,
and Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.
MedAssets provides technology-enabled products and services to
hospitals, health systems and other ancillary healthcare providers
in the areas of revenue cycle and spend and clinical resource
management. Revenue for the twelve months ended June 30, 2011
approximated $481 million.
MEG ENERGY: Bank Debt Trades at 5% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which MEG Energy Corp.
is a borrower traded in the secondary market at 95.04 cents-on-
the-dollar during the week ended Friday, Aug. 26, 2011, a drop of
0.71 percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 300 basis points above LIBOR to borrow
under the facility. The bank loan matures on March 22, 2018, and
carries Moody's Ba3 rating and Standard & Poor's BBB- rating. The
loan is one of the biggest gainers and losers among 70 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
MEG Energy Corp. (Toronto: MEG) -- http://www.megenergy.com/ --
engages in the development and production of sustainable in situ
oil sands in the southern Athabasca region of Alberta, Canada.
The company is developing enhanced oil recovery projects that
utilize steam assisted gravity drainage (SAGD) extraction methods.
It owns 100% working interest in approximately 800 sections of oil
sands leases, which includes the Christina Lake project and the
Surmont project covering an area of 552,960 acres in the Athabasca
region of northern Alberta. The company also holds a 50% interest
in a dual pipeline system, which connects the Christina Lake
project to a regional upgrading, refining, and transportation hub
in the Edmonton area. As of December 31, 2010, it had 1.9 billion
barrels of proved plus probable bitumen reserves and 3.7 billion
barrels of contingent resources. MEG Energy Corp. was
incorporated in 1999 and is headquartered in Calgary, Canada.
MERITAS SCHOOLS: S&P Assigns 'B' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'B' corporate credit
rating to Northbrook, Ill.-based Meritas Schools Holdings LLC. The
rating outlook is negative.
"At the same time, we assigned a 'B' issue-level rating to the
proposed $135 million first-lien secured credit facilities
(comprising a $125 million term loan and a $10 million revolver),
with a recovery rating of '3', indicating our expectation of
meaningful (50% to 70%) recovery to lenders in the event of
a payment default. We also assigned a 'B-' issue-level rating to
the proposed $65 million second-lien credit facility, with a
recovery rating of '5', indicating our expectation of modest (10%
to 30%) recovery to lenders in the event of a payment default,"
S&P said.
The company will use the proceeds of the financing to refinance
existing debt, pay transaction costs, and build cash to provide
financial flexibility.
"The corporate credit rating reflects our expectation of near-term
EBITDA growth and positive discretionary cash flow, permitting
gradual reduction of the company's high debt leverage," said
Standard & Poor's credit analyst Chris Valentine.
Meritas operates a portfolio of ten pre-kindergarten through grade
12 private school campuses in five states as well as in
Switzerland, China, and Mexico. Enrollment totaled about 11,500 in
fiscal 2011, making the company one of the larger pre-K-12 for-
profit providers. Operating multiple schools offers some scale
efficiencies in marketing and recruiting. Competition is tough
coming from both private and public schools in local markets, and
becomes tougher under the prolonged weak economy. "We view the
weak economy as a threat to private school enrollments as families
may opt for less expensive alternatives," S&P related.
"The negative rating outlook reflects our expectation that the
covenant cushion will remain tight in the near term and the
company will have minimal flexibility if operating trends weaken.
We expect revenue and EBITDA to increase at a low-double-digit
percent rate this year. An outlook revision to stable, which we
view as unlikely over the near term, would entail greater economic
stability in the markets the company serves, double-digit revenue
and EBITDA increases, and covenant compliance widening to greater
than 15% on a sustained basis. We would consider a downgrade if
increased competition or a worsening economy lead to revenue and
EBITDA declines of 20% and 25%, or if we become convinced that
cushion of covenant compliance will fall below 10% given the rapid
pace of step-downs," S&P noted.
METAL STORM: Inks Representation Agreement with Colt Defense
------------------------------------------------------------
Metal Storm Limited announced that it has signed a non-exclusive
representation agreement with Colt Defense LLC. The agreement
appoints Metal Storm Limited as Colt's sales representative for
Colt products and services in Papua New Guinea. The initial term
of the agreement runs until Dec. 31, 2011, and the agreement may
be extended beyond the initial term at the sole discretion of
Colt. Metal Storm will keep the market informed of any
developments to the extent that they are material to the Company.
In a separate filing with the Securities and Exchange Commission,
Metal Storm said it proposes to issue:
(a) 266,290 ordinary shares as consideration for professional
services rendered;
(b) 6,500,000 ordinary shares pursuant to an equity line of
credit facility agreement; and
(c) 194,302 ordinary shares as consideration for professional
services rendered.
About Metal Storm
Headquartered in Darra, Queensland, Australia, Metal Storm Limited
is a defense technology company with offices in Australia and the
United States. It specializes in the research, design,
development and integration of projectile launching systems
utilizing its "electronically initiated / stacked projectile"
technology for use in the defense, homeland security, law
enforcement and industrial markets.
As reported by the TCR on July 25, 2011, PricewaterhouseCoopers,
in Brisbane, Australia, expressed substantial doubt about Metal
Storm'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 A$8.94 million on
A$3.35 million of revenue for 2010, compared with a net loss of
A$11.31 million on A$1.11 million of revenue for 2009.
The Company's balance sheet at Dec. 31, 2010, showed
A$2.15 million in total assets, A$20.64 million in total
liabilities, all current, and an equity deficit of
A$18.49 million.
METISCAN INC: Reports $54,300 Net Income in 2nd Quarter
-------------------------------------------------------
Metiscan, Inc., filed its quarterly report on Form 10-Q, reporting
net income of $54,266 on $628,660 of revenues for the three months
ended June 30, 2011, compared with a net loss of $138,389 on
$514,862 of revenues for the same period last year.
The Company reported net income of $43,920 on $1.1 million of
revenues for the six months ended June 30, 2011, compared with a
net loss of $74,472 on $1.4 million of revenues for the same
period last year.
During the six months ended June 30, 2011, the Company experienced
a net gain on the settlement of debt in the amount of $52,590 as
compared to a net loss of $375,126 during the six months ended
June 30, 2010.
The Company's balance sheet at June 30, 2011, showed $9.9 million
in total assets, $1.1 million in total liabilities, all current,
and stockholders' equity of $8.8 million.
As reported in the TCR on April 25, 2011, Eugene M Egeberg, CPA,
in Baltimore, expressed substantial doubt about Metiscan's ability
to continue as a going concern, following the Company's 2010
results. Mr. Egeberg noted that the Company has a large
accumulated deficit through Dec. 31, 2010.
A copy of the Form 10-Q is available at http://is.gd/35y0rB
Dallas, Tex.-based Metiscan, Inc. (OTC PK: MTIZ) --
http://www.metiscan.com/-- is the parent company of a
portfolio of enterprises with operations in healthcare, healthcare
IT, mobile technology and employment services.
METROPARK USA: Weisfeld Group Buys Intellectual Property
--------------------------------------------------------
ApparelNews.net reports that New York-based the Weisfeld Group
purchased the intellectual property of the bankrupt retailer
Metropark for an undisclosed amount earlier this month.
According to the report, a few days after the purchase, Weisfeld
Group hired retail consultant Izzy Ezrailson to help chart new
options for Metropark.
The report notes Mr. Ezrailson and another consultant, Lawrence
Blenden, have been tasked with finding new opportunities for
Metropark. Mr. Ezrailson said Weisfeld Group will probably have a
new business plan for Metropark in the near future.
The report says, after hosting going out-of-business sales,
Metropark shuttered its 69 locations, including stores in
prominent California malls Irvine Spectrum and Westfield San
Francisco Centre. Madden's vision for Metropark was to bring
streetwear and premium denim to suburban malls. Metropark's
business was good enough that it registered to file an IPO in
2008.
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 also tapped Great American Group Real Estate, LLC doing
business as GA Keen Realty Advisors as special real estate
advisor.
The Debtor disclosed total assets of $28,933,805 and total debts
of $28,697,006 as of April 2, 2011.
Blakeley & Blakeley LLP represents the Official Committee of
Unsecured Creditors.
MGM RESORTS: Tracinda Corporation Discloses 22.8% Equity Stake
--------------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, Tracinda Corporation and Kirk Kerkorian
disclosed that they beneficially own 111,173,744 shares of common
stock of MGM Resorts International representing 22.8% of the
shares outstanding. As previously reported by the TCR on
April 26, 2011, Tracinda and Mr. Kerkorian disclosed ownership of
26.8% of the shares outstanding. A full-text copy of the filing
is available for free at http://is.gd/HR2TVe
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 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.
The Company's balance sheet at June 30, 2011, showed
$27.21 billion in total assets, $17.17 billion in total
liabilities, and $10.04 billion in total stockholders' equity.
* * *
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: Incurs $444,800 Net Loss in Second Quarter
-------------------------------------------------------
MIT Holding, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting a net loss
of $444,874 on $6.49 million of sales and services rendered for
the three months ended June 30, 2011, compared with net income of
$255,791 on $1.73 million of sales and services rendered for the
same period during the prior year.
The Company also reported a net loss of $1.01 million on
$11.57 million of sales and services rendered for the six months
ended June 30, 2011, compared with net income of $54,281 on $3.41
million of sales and services rendered for the same period a year
ago.
The Company ended 2010 with net income of $78,832 on $7.1 million
of revenue and 2009 with a net loss of $1.2 million on
$6.4 million of revenue.
The Company's balance sheet at June 30, 2011, showed
$22.77 million in total assets, $21.11 million in total
liabilities, and $1.66 million in total stockholders' equity.
At June 30, 2011, the Company had negative working capital of
$1.57 million. From inception, the Company has incurred an
accumulated deficit of $9.54 million.
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."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/KUpz17
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.
MONEYGRAM INT'L: To Ink 4th Supplemental Indenture with DBTCA
-------------------------------------------------------------
MoneyGram International, Inc., and MoneyGram Payment Systems
Worldwide, Inc., a wholly-owned subsidiary of the Company, entered
into a consent agreement with certain affiliates of Goldman, Sachs
& Co., who are beneficial holders of Worldwide's 13.25% Senior
Secured Second Lien Notes due 2018. Pursuant to the Indenture
Consent Agreement, the parties thereto agreed to enter into a
Fourth Supplemental Indenture to the Indenture, dated as of
March 25, 2008, by and among Worldwide, the Company, the other
guarantors party thereto and Deutsche Bank Trust Company Americas,
as trustee and collateral agent, governing the Second Lien Notes.
The Fourth Supplemental Indenture will amend the definition of
Highly Rated Investments in the Indenture to include securities
issued by any agency of the United States or government-sponsored
enterprise that are rated Aa3 or better by Moody's Investors
Service, Inc., and AA- or better by Standard & Poor's rather than
the previously required ratings of Aaa by Moody's and AAA by S&P.
The effect of the amended definition of Highly Rated Investments
confirms that certain securities issued by United States agencies
or government-sponsored enterprises continue to qualify as Highly
Rated Investments despite S&P's lower credit rating now applicable
to debt obligations of the United States government.
Also on Aug. 12, 2011, the Company entered into a consent
agreement with certain affiliates and co-investors of Thomas H.
Lee Partners, L.P., and affiliates of Goldman, Sachs & Co., who
are parties to the Amended and Restated Purchase Agreement, dated
as of March 17, 2008. Pursuant to the Equity Consent Agreement,
and as required by the Equity Purchase Agreement, the Investors
have consented to the changes to the definition of Highly Rated
Investments contained in the Fourth Supplemental Indenture and to
any resulting changes in the Company's investment policy relating
to the investment portfolio of the Company and its subsidiaries.
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 June 30, 2011, showed $5.08 billion
in total assets, $5.20 billion in total liabilities, and a
$125.41 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.
MOUNT JOY: Case Summary & 3 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Mount Joy, LLC
101 N. Commercial Street
P.O. Box 1031
Morgan, UT 84050
Bankruptcy Case No.: 11-32374
Chapter 11 Petition Date: August 24, 2011
Court: U.S. Bankruptcy Court
District of Utah (Salt Lake City)
Judge: R. Kimball Mosier
Debtor's Counsel: M. Darin Hammond, Esq.
SMITH KNOWLES
4723 Harrison Boulevard, Suite 200
Ogden, UT 84403
Tel: (801) 476-0303
Fax: (801) 476-0399
E-mail: dhammond@smithknowles.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 three largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/utb11-32374.pdf
The petition was signed by Gray Jensen, managing member.
MT VERNON: Meridian Law Approved to Handle Reorganization Case
--------------------------------------------------------------
The Hon. David E. Rice of the U.S. Bankruptcy Court for the
District of Maryland authorized Mt. Vernon Properties, LLC, to
employ Meridian Law, LLC as counsel.
As reported in the Troubled Company Reporter on July 29, 2011, the
Debtor related that prior to the Petition Date, it retained
Meridian to provide legal services in connection with the filing
and prosecution of its Chapter 11 case.
Mr. Stein, the principal of Meridian, charges $300 an hour for his
services. He attested that Meridian represents no interest
adverse to the Debtor or the estate.
About Mt. Vernon Properties
Mt. Vernon Properties, LLC, based in Baltimore, Maryland, is the
owner of many parcels of real property located in Baltimore City
that the Debtor operates as multi-family rental properties. The
Company filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No.
11-24801) on July 18, 2011. Judge David E. Rice presides over the
case. Aryeh E. Stein, Esq., at Meridian Law, LLC, in Baltimore,
serves as bankruptcy counsel. The Debtor disclosed $10,237,448 in
assets and $15,064,059 in liabilities as of the Chapter 11 filing.
The petition was signed by Ronald Persaud, managing member of Mt.
Vernon Properties II LLC, the Debtor's sole member.
MT VERNON: Files Schedules of Assets and Liabilities
----------------------------------------------------
Mt. Vernon Properties, LLC, filed with the U.S. Bankruptcy Court
for the District of Maryland its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $10,150,000
B. Personal Property $87,448
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $13,592,026
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $1,472,033
----------- -----------
TOTAL $10,237,448 $15,064,059
About Mt. Vernon Properties
Mt. Vernon Properties, LLC, based in Baltimore, Maryland, is the
owner of many parcels of real property located in Baltimore City
that the Debtor operates as multi-family rental properties. The
Company filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No.
11-24801) on July 18, 2011. Judge David E. Rice presides over the
case. Aryeh E. Stein, Esq., at Meridian Law, LLC, in Baltimore,
serves as bankruptcy counsel. In its petition, the Debtor
estimated assets and debts of $10 million to $50 million. The
petition was signed by Ronald Persaud, managing member of Mt.
Vernon Properties II LLC, the Debtor's sole member.
NEOMEDIA TECHNOLOGIES: Sells $350,000 Debenture to YA Global
------------------------------------------------------------
NeoMedia Technologies, Inc., issued and sold a secured convertible
debenture in the amount of $350,000 to YA Global Investments,
L.P., on Aug. 12, 2011. The August Debenture was issued in
accordance with the provisions of that certain Agreement between
the Company and YA Global dated June 28, 2011. Pursuant to the
Agreement, the Company agreed to issue and sell to YA Global three
secured convertible debentures that, combined, have an aggregate
principal amount of $1,050,000. Regarding each of the individual
Debentures, the Company agreed to issue and sell:
(i) a secured convertible debenture in the amount of $250,000
which YA Global purchased and the Company issued on
June 28, 2011;
(ii) a secured convertible debenture in the amount of $450,000
which YA Global purchased and the Company issued on
July 13, 2011; and
(iii) the August Debenture.
The August Debenture will mature on July 29, 2012, and will accrue
interest at a rate equal to 14% per annum and such interest will
be paid on the Maturity Date in cash or, provided that certain
Equity Conditions are satisfied, in shares of the Company's common
stock at the applicable Conversion Price. At any time, YA Global
will be entitled to convert any portion of the outstanding and
unpaid principal and accrued interest thereon into fully paid and
non-assessable shares of Common Stock at a price equal to the
lesser of $0.10 and 95% of the lowest volume weighted average
price of the Common Stock during the 60 trading days immediately
preceding each conversion date.
The Company will not affect any conversion, and YA Global will not
have the right to convert any portion of the August Debenture to
the extent that after giving effect to such conversion, YA Global
would beneficially own in excess of 9.99% of the number of shares
of Common Stock outstanding immediately after giving effect to
such conversion, except for not less than 65 days prior written
notice from YA Global.
The Company will have the right to redeem a portion or all amounts
outstanding in the August Debenture via Optional Redemption by
paying the amount equal to the principal amount being redeemed
plus a redemption premium equal to 10% of the principal amount
being redeemed, and accrued interest.
The August Debenture is secured by certain pledges made with
respect to the assets of the Company and its subsidiaries as set
forth in the Eleventh Ratification Agreement, dated June 28, 2011,
and that certain Security Agreement and Patent Security Agreement
both dated July 29, 2008, by and among the Company, each of the
Company's subsidiaries made a party thereto, and YA Global.
In connection with the Agreement, the Company also entered into
those certain Irrevocable Transfer Agent Instructions with YA
Global, an escrow agent and WorldWide Stock Transfer, LLC, the
Company's transfer agent.
About NeoMedia Technologies
Atlanta, Ga.-based NeoMedia Technologies, Inc., provides mobile
barcode scanning solutions. The Company's technology allows
mobile devices with cameras to read 1D and 2D barcodes and provide
"one click" access to mobile content.
The Company's balance sheet at June 30, 2011, showed $8.07 million
in total assets, $129.72 million in total liabilities, all
current, $6.10 million in Series C convertible preferred stock,
$2.50 million in Series D convertible preferred stock and a
$130.26 million total shareholders' deficit.
The Company has historically incurred net losses from operations
and expects it will continue to have negative cash flows as it
implements its business plan. The Company said there can be no
assurance that its continuing efforts to execute its business plan
will be successful and that it will be able to continue as a going
concern.
Kingery & Crouse, P.A, in Tampa, Fla., expressed substantial doubt
about the Company's ability to continue as a going concern. The
accounting firm noted that the Company has suffered recurring
losses from operations and has ongoing requirements for additional
capital investment.
NEVIN SHAPIRO: Trustee Plans to Get Gifts From Miami Players
------------------------------------------------------------
Jay Weaver at the Miami Herald reports that lawyers for a federal
bankruptcy trustee said they will pursue anything of real value
that Nevin Shapiro allegedly gave to 72 current and former UM
football players during the past decade.
According to the report, the lawyers made their move after
Yahoo!Sports published a report detailing Mr. Shapiro's alleged
generosity with investors' money, including showering UM athletes
with cash, prostitutes, cars, jewelry, restaurants, nightclubs and
parties at his multimillion-dollar Miami Beach homes and yacht.
Mr. Shapiro told Yahoo!Sports that, in one instance, he gave
former star Vince Wilfork, now with the New England Patriots, two
$50,000 Cadillac Escalades for him and his fiancee.
The report notes Miami attorney Gary Freedman, who represents the
bankruptcy trustee, said he believes "many of these [gifts] fall
within the definition of fraudulent transfers" and that his firm
has "an obligation to investigate and seek their recovery" from
the UM players.
Mr. Freedman, representing trustee Joel Tabas, already has
compelled UM to return $130,000 that Shapiro had donated as a 10-
year pledge that allowed him to put his name on a student-athlete
lounge. UM officials yanked his name in 2008 when he stopped
making the full donations.
The report relates that refund is part of the $18 million to $19
million recovered by the bankruptcy trustee for Mr. Shapiro's
victims.
M. Shapiro, 42, is serving a 20-year prison sentence for running a
$930 million Ponzi scheme while operating a bogus food wholesale
business. He targeted investors in Florida, Indiana, Illinois and
other states.
NEWCARDIO INC: Incurs $935,000 Second Quarter Net Loss
------------------------------------------------------
NewCardio, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q reporting a net loss
attributable to common shareholders of $935,130 on $101,559 of
revenue for the three months ended June 30, 2011, compared with a
net loss attributable to common shareholders of $1.46 million on
$21,077 of revenue for the same period a year ago.
For the six months ended June 30, 2011, the Company posted a
$3.35 million net loss attributable to common shareholders
compared to a $5.78 million net loss attributable to common
shareholders for the same period last year.
The Company ended 2010 with a net loss of $11.5 million and 2009
with a net loss of $9.6 million.
The Company's balance sheet at June 30, 2011, showed $958,611 in
total assets, $5.16 million in total liabilities, and a
$4.20 million total stockholders' deficit.
As reported in the TCR on April 5, 2011, RBSM LLP, in New York,
expressed substantial doubt about NewCardio'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.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/fJF0VY
About NewCardio Inc.
Santa Clara, Calif.-based NewCardio, Inc., is a cardiac diagnostic
and services company developing and marketing proprietary software
platform technologies to provide higher accuracy to, and increase
the value of, the standard 12-lead electrocardiogram, or ECG.
NEXT GENERATION: Incurs $463,000 Second Quarter Net Loss
--------------------------------------------------------
Next Generation Energy Corp. filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting a
net loss of $463,712 for the three months ended June 30, 2011,
compared with net income of $1.55 million for the same period a
year ago.
For the six months ended June 30, 2011, the Company posted a
$613,683 net loss compared to $1.53 million net income for the
same period last year.
The Company's balance sheet at June 30, 2011, showed $730,074 in
total assets, $2.27 million in total liabilities and a $1.54
million total stockholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/8JfkE4
About Next Generation
Springfield, Va.-based Next Generation Energy Corporation was
incorporated in the State of Nevada in Nov. of 1980 as Micro
Tech Industries, with an official name change to Next Generation
Media Corporation in April of 1997. The Company, through its
wholly owned subsidiary, United Marketing Solutions, Inc.,
provides direct marketing products, which involves the designing,
printing, packaging, and mailing of public relations and marketing
materials and coupons for retailers who provide services. Sales
are conducted through a network of franchises that the Company
supports on a wholesale basis.
NO FEAR: Stipulates with FMCC on Vehicle Installment Contract
-------------------------------------------------------------
Ford Motor Credit Company, a secured creditor, and Debtors No Fear
Retail Stores, Inc., Simo Holdings, Inc. dba No Fear, and No Fear
MX, Inc., entered into a Court-approved stipulation with respect
to a certain retail installment contract between Simo Holdings and
FMCC with respect to a certain vehicle.
The parties stipulate that:
* Simo Holdings will make regular monthly postpetition
payments of $1,014 commencing on June 16, 2011 and
continuing on the 16th day of each month thereafter during
the pendency of this case until the amounts due and owing
under the Contract have been fully paid;
* Simo Holdings will continue to maintain physical damage
insurance on the 2010 Ford F150 vehicle purchased by the
Debtor, reflecting FMCC as the loss payee/lienholder
thereunder during the pendency of this case, and will
provide FMCC with satisfactory proof of the insurance from
time to time as required by the underlying contract;
* In the event of default by Simo Holdings of the
stipulation provisions, FMCC will send a notice of default
to the Debtor and its attorney. If the stated default is
not cured within 10 days of the date of the default
letter, FMCC may request a Court order for relief from the
automatic stay on an ex parte basis. The Court will enter
the order terminating the automatic stay without further
notice, hearing or order, thereby allowing FMCC to re-take
possession of the Vehicle and liquidate it pursuant to the
terms and conditions of the Contract;
* In the event FMCC obtains relief from the automatic stay
pursuant to the stipulation, Rule 4001(a)(3) of the
Federal Rule of Bankruptcy Procedure will not apply; and
* Upon entry of an order approving the stipulation, FMCC
will be deemed to have withdrawn its Motion for Relief
from the Automatic Stay filed on June 2, 2011.
About No Fear Retail
Carlsbad, California-based No Fear Retail Stores, Inc., is a
retailer of action, sports, and casual youth lifestyle apparel and
accessories, targeting young adults and teens. It operates 41
retail locations in California, Oregon, Arizona, Florida, Nevada,
North Carolina, and Texas.
No Fear filed for Chapter 11 bankruptcy protection (Bankr. S.D.
Calif. Case No. 11-02896) on Feb. 24, 2011. David S. Kupetz,
Esq., at Sulmeyer, Kupetz, A Professional Corp, serves as the
Debtor's bankruptcy counsel. The Debtor tapped Jones Day as
special intellectual property counsel; Avant Advisory Group's
George Blanco as chief restructuring officer, and Venturi &
Company LLC, as financial advisors.
The Debtor estimated disclosed $31,648,063 in assets and
$12,552,985 in liabilities as of the Chapter 11 filing.
Affiliates No Fear MX, Inc. (Bankr. S.D. Calif. Case No. 11-02897)
and Simo Holdings, Inc. (Bankr. S.D. Calif. Case No. 11-02898)
filed separate Chapter 11 petitions on Feb. 24, 2011.
Tiffany L. Carroll, the Acting U.S. Trustee for Region 15,
appointed three creditors to serve on an Official Committee of
Unsecured Creditors of No Fear MX, Inc. Pachulski Stang
Ziehl & Jones LLP represents the Committee. BDO USA LLP serves as
financial advisor to provide financial advisory services to the
Committee.
NORTEL NETWORKS: Seeks Approval of Side Agreement
-------------------------------------------------
Nortel Networks Inc. and its debtor affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to approve:
(a) A certain Supplemental IP Transaction Side Agreement re
Certain Transaction Costs and Related Matters, dated July
27, 2011 -- the Side Agreement -- among (i) NNI, Nortel
Networks Limited, Nortel Networks Corporation, Nortel
Networks UK Limited, Nortel Networks (Ireland) Limited,
Nortel Networks S.A., Nortel Networks France S.A.S. and
Nortel GmbH, and certain other entities -- as Sellers; and
(ii) the Joint Administrators and the French Liquidator;
and
(b) A certain Second Amended and Restated IP Transaction Side
Agreement re Certain Structural Matters, dated July 27,
2011 -- Second Amended Tax Side Agreement -- among (i)
NNI, NNL, NNC, NNUK, Nortel Networks (Ireland) Limited,
NNSA, Nortel Networks France S.A.S. and Nortel GmbH, and
certain other entities, and (ii) the Joint Administrators
and the French Liquidator.
On the Petition Date, the Debtors' ultimate corporate parent NNC,
NNI's direct corporate parent NNL and their affiliates, including
the Debtors -- collectively, Nortel -- and certain of their
Canadian affiliates -- the Canadian Debtors -- commenced a
proceeding with the Ontario Superior Court of Justice under the
Companies' Creditors Arrangement Act (Canada), seeking relief from
their creditors. Ernst & Young Inc. was appointed by the Canadian
Court as monitor.
Also on the Petition Date, the High Court of England and Wales
placed 19 of Nortel's European affiliates -- the EMEA Debtors --
into administration under the control of individuals from Ernst &
Young LLP -- the Joint Administrators.
Other Nortel affiliates have commenced and in the future may
commence additional creditor protection, insolvency and
dissolution proceedings around the world.
Since the Petition Date, Nortel has sold its business units and
other assets to various purchasers.
Side Agreement
The Debtors and certain other Nortel entities have negotiated the
Side Agreement to address certain issues among the parties,
including the allocation of certain costs incurred or that my
potentially be incurred as part of the proposed transaction with
the Rockstar Bido, LP.
The Side Agreement was negotiated (i) in connection to the
Debtors' entry into an asset sale agreement, dated June 30, 2011,
for the sale of their interest in Nortel's residual patents to
Rockstar Bidco, LP, which Sale was approved by the Bankruptcy
Court on July 11, 2011; and (ii) pursuant to the framework set
forth in a certain Interim Funding and Settlement Agreement, dated
June 9, 2009, among the Debtors, the Canadian Debtors, the EMEA
Debtors, and the Joint Administrators, governing certain
intercompany matters.
The salient terms of the Side Agreement include:
* The Parties have agreed -- except as otherwise provided in
the Side Agreement, the Signing Side Agreement or the
Auction Side Agreement -- that the "Total Proceeds" will
be allocated and distributed in accordance with the
"Allocation Rules," the Side Agreement, and the
Distribution Escrow Agreement;
* The Parties have agreed that the Total Proceeds do not
include amounts of or in respect of VAT or Transfer Taxes
paid or payable by the Purchaser or, if relevant, any of
the Purchaser's limited partners to the Sellers, Joint
Administrators or French Liquidator pursuant to the terms
of the Sale Agreement;
* To the extent that there are funds available in the
Distribution Escrow Account that are attributable to the
Transaction, the obligation of the Sellers to make any
payment that constitutes part of the Total Payments will
be satisfied by causing the Distribution Agent to pay the
relevant amount out of the Distribution Escrow Account;
* To the extent that any payment that constitutes part of
the Total Payments cannot be satisfied by payment out of
the Distribution Escrow Account or is required to be paid
before the closing date, any amounts actually paid by any
Seller to the Distribution Agent or any other Person, as
applicable, will be deducted from any subsequent amounts
payable or paid into the Distribution Escrow Account, and
will be paid directly to the Seller that made the relevant
payment;
* The Parties reserve all rights in respect of expenses,
damages, and all other liabilities incurred in connection
with the performance of their obligations under or
pursuant to the Sale Agreement or the Transaction
Documents, and, in particular, whether these expenses,
damages, and other liabilities should be deducted from the
Total Proceeds, or otherwise considered in connection with
a distribution to the Sellers;
* The Parties have agreed that the amount necessary to fully
reimburse NNL, NNI and NNUK for all Global IP Costs paid
by NNL, NNI and NNUK as of the closing of the Transaction,
which amounts equal $2,679,027 reimbursable to NNL,
$804,676 reimbursable to NNI, and $893,742 reimbursable to
NNUK, will be deducted from the Total Proceeds payable by
the Purchaser at the closing of the Transaction; and
* After the closing of the Transaction, the obligation of
any Nortel Debtor to make a distribution or payment on
account of Global IP Costs will be satisfied by causing
the Distribution Escrow Agent to pay the relevant amount
out of the Distribution Escrow Account to Global IP. The
Parties further agree that should the Transaction fail to
be consummated, nothing in the Side Agreement will
prejudice NNL's, NNI's or NNUK's rights to seek
reimbursement of the Global IP Costs from the other Nortel
Debtors, including any rights arising under existing
agreements. This provision of the Side Agreement
supersedes Paragraph 10 of the Signing Side Agreement in
its entirety.
Second Amended Tax Side Agreement
The Sellers entered into an Amended and Restated IP Transaction
Side Agreement Re: Certain Structural Matters, dated Junen 29,
2011, in connection with the Sale Agreement. The Bankruptcy Court
authorized the Tax Side Agreement on July 11, 2011.
The Second Amended Tax Side Agreement amends and restates the Tax
Side Agreement in its entirety.
While the amendments to the Tax Side Agreement, as embodied in the
Second Amended Tax Side Agreement are largely conforming changes
to the amendment to the Sale Agreement, the Debtors seek approval
of the Second Amended Tax Side Agreement in an abundance of
caution.
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.
Nortel has raised $3.2 billion by selling its operations as it
prepares to wind up a two-year liquidation due to insolvency.
In June 2011, Nortel added US$4.5 billion to its cash pile after
agreeing to sell its remaining patent portfolio to Rockstar Bidco,
LP, a consortium consisting of Apple Inc., EMC Corporation,
Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In
Motion Limited, and Sony Corporation. The consortium defeated a
$900 million stalking horse bid by Google Inc. at an auction. The
deal closed in July.
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.
NORTEL NETWORKS: Can Hire EFC as Special Irish Counsel
------------------------------------------------------
The Honorable Kevin Gross approved the application of Nortel
Networks Inc. and its affiliated debtors to employ the law firm
Eugene F. Collins as their special Irish counsel, nunc pro tunc to
June 13, 2011.
The Debtors related that they required the services of the Firm
to, among other things, provide advice on issues of Irish law and
to provide advice and representation relating to the claims of the
EMEA Debtors.
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.
Nortel has raised $3.2 billion by selling its operations as it
prepares to wind up a two-year liquidation due to insolvency.
In June 2011, Nortel added US$4.5 billion to its cash pile after
agreeing to sell its remaining patent portfolio to Rockstar Bidco,
LP, a consortium consisting of Apple Inc., EMC Corporation,
Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In
Motion Limited, and Sony Corporation. The consortium defeated a
$900 million stalking horse bid by Google Inc. at an auction. The
deal closed in July.
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.
NORTEL NETWORKS: Posts $105-Mil. Net Loss in 2nd Quarter
--------------------------------------------------------
Nortel Networks Corporation reported a net loss of $105 million
during the three months ended June 30, 2011, compared with a net
loss of $1.6 billion during the corresponding period of 2010.
Reorganization items - net included in the net loss in the second
quarter of 2010 totaled $1.5 billion.
Revenues in the second quarter of 2011 were $1 million as compared
to $145 million in the second quarter of 2010.
The Company reported a net loss of $207 million during the six
months ended June 30, 2011, compared with a net loss of
$1.2 billion during the corresponding period last year.
Revenues in the first six months of 2011 were $21 million as
compared to $507 million in the first six months of 2010.
Revenues in the second quarter and first six months of 2011 have
been significantly impacted by the divestitures of all of the
Company's businesses, in particular the Optical Networking and
Carrier Ethernet and GSM/GSM-R businesses in the first quarter of
2010 and the divestiture of the CVAS business in the second
quarter of 2010 when comparing second quarter and first six months
of 2011 to the same periods in 2010.
The decrease in revenues was further impacted by the
deconsolidation of the U.S. Subsidiaries at the beginning of the
fourth quarter of 2010.
The Company's total consolidated cash and cash equivalents
excluding restricted cash decreased by $17 million during the
first six months of 2011 to $790 million, primarily due to cash
flows attributable to discontinued operations, loss of cash due to
deconsolidation of U.S. Subsidiaries and the net cash used in
continuing operations.
A copy of the Form 10-Q is available at http://is.gd/ttTvKS
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 its key assets while in Chapter 11.
Nortel has raised $3.2 billion by selling its operations as it
prepares to wind up a two-year liquidation due to insolvency.
In June 2011, Nortel added US$4.5 billion to its cash pile after
agreeing to sell its remaining patent portfolio to Rockstar Bidco,
LP, a consortium consisting of Apple Inc., EMC Corporation,
Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In
Motion Limited, and Sony Corporation. The consortium defeated a
$900 million stalking horse bid by Google Inc. at an auction. The
deal closed in July.
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.
NORTH ATLANTIC: S&P Assigns 'B-' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' corporate
credit rating to Louisville, Ky.-based North Atlantic Trading Co.
Inc. (NATC). The outlook is stable.
"At the same time, we assigned a 'B-' issue-level rating (the same
as the corporate credit rating) to NATC's $205 million 11.5%
second-lien senior secured notes maturing in 2016, with a '3'
recovery rating, indicating our expectation for meaningful (50% to
70%) recovery in the event of a payment default," S&P related.
"We also assigned a 'CCC' issue-level rating to the company's $80
million third-lien senior secured notes due 2017 (which carry a
cash interest rate of 11% and a pay-in-kind [PIK] interest rate of
8%), with a '6' recovery rating, indicating our expectation for
negligible (0% to 10%) recovery in the event of a payment
default," S&P said.
"The 'B-' corporate credit rating reflects our opinion that NATC
has a highly leveraged financial profile as a result of its high
debt burden relative to its size, weak cash flow measures, and
very aggressive financial policy," said Standard & Poor's credit
analyst Mark Salierno. We view the company's business risk profile
to be vulnerable, reflecting its narrow business focus,
participation in highly competitive end markets, declining roll-
your-own (RYO, also referred to as 'make-your-own') and chewing
tobacco subsegments, and lack of geographic diversification
outside of the U.S.," S&P added
NORTH BAY: Court OKs Settlement; Chapter 11 Case Dismissed
----------------------------------------------------------
The Hon. Jeffry P. Hopkins of the U.S. Bankruptcy Court for the
Middle District of Florida North dismissed the Chapter 11 case of
North Bay Village, LLC.
The case dismissal is pursuant to the terms and conditions set
forth in the stipulation and settlement agreement entered among
the Debtor, CWCapital Asset Management, LLC, and CKS Investment
Company, LLP. The agreement dated July 19, 2011, provides that:
-- the Debtor agrees to file a motion to dismiss the Bankruptcy
case;
-- in consideration of each and every agreement of the Debtor
and CKS, CWCapital agrees to transfer to CKS $181,000, after
the case is dismissed, which funds will first be used to pay
the administrative expense claim of CKS asserted in the case
and outstanding administrative claims for the tax
professionals for the Debtor and CKS. CWCapital further
agrees to allow the Debtor to use additional cash collateral
to pay administrative professional fees of the estate.
-- upon entry of the order dismissing the case, the Debtor will
transfer to CWCapital all funds required by the cash
collateral order to be set aside for payment of taxes. As
of the date of the agreement, there is $81,751 in tax
account.
A full-text copy of the order and the stipulation is available for
free at http://bankrupt.com/misc/NORTHBAY_order_stipulation.pdf
The Debtor will be responsible for payment of all outstanding fees
owed to the office of the U.S. Trustee.
As reported in the Troubled Company Reporter on Nov. 16, 2010,
CWCapital Asset, solely in its capacity as special servicer for
Bank of America, N.A., as trustee for the registered holders of
Cobalt CMBS Commercial Mortgage Trust 2006-C1, Commercial Mortgage
Pass-Through Certificates, Series 2006-C1, asked that the Court
dismiss the Debtor's case because that it was filed in bad faith.
CWCapital explained that it is the Debtor's senior and only
secured creditor, is owed over $29 million, or roughly 99.7% of
Debtor's total obligations, while the Debtor's unsecured debt is a
mere $76,293.
Further, CWCapital said that there is a substantial or continuing
loss to or diminution of the estate and the absence of a
reasonable likelihood of rehabilitation.
About North Bay Village LLC
Tampa, Florida-based North Bay Village LLC -- dba North Bay
Village - MM, Inc., and Pelican Bay/Limetree, LLC -- filed for
Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-
03090) on Feb. 12, 2010. Steven M. Berman, Esq., at Shumaker,
Loop & Kendrick, LLP, in Tampa, Florida, represents the Debtor as
counsel. The Company estimated assets and debts at $10 million to
$50 million.
NOVELIS INC: Bank Debt Trades at 5% Off in Secondary Market
-----------------------------------------------------------
Participations in a syndicated loan under which Novelis, Inc., is
a borrower traded in the secondary market at 94.45 cents-on-the-
dollar during the week ended Friday, Aug. 26, 2011, a drop of 1.24
percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 300 basis points above LIBOR to borrow
under the facility. The bank loan matures on March 10, 2017.
Moody's has withdrawn its rating while it carries Standard &
Poor's BB- rating. The loan is one of the biggest gainers and
losers among 70 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday.
Novelis, Inc., -- http://www.novelis.com/-- a 2005 spin-off of
what is now called Rio Tinto Alcan, manufactures aluminum rolled
semi-finished products primarily used by the construction and
industrial, foil products, transportation, and beverage and food
can industries. The rolled aluminum is made with alloy mixtures
in a range of hardnesses, thicknesses, and widths, with various
coatings and finishes designed specifically for its end-use
segments. The company also recycles more than 35 billion beverage
cans annually. India's Hindalco Industries, part of the Aditya
Birla Group, owns Novelis.
NURSERYMEN'S EXCHANGE: Can Avail of DIP Financing Through Nov. 5
----------------------------------------------------------------
Judge Dennis Montali of the U.S. Bankruptcy Court for the Northern
District of California approved the First Amendment to the DIP
Credit and Security Agreement between Tally One, Inc., fka
Nurserymen's Exchange, Inc., and Wells Fargo Bank.
The Debtor is also authorized to borrow and use funds through
Nov. 5, 2011, under the amended DIP Credit and Security Agreement
pursuant to a budget.
The salient terms of the DIP Amendment are as follows:
A. The Carve-out - The DIP Amendment makes clear that there
is a "carve-out" for use of the loan to fund professional
fees up to $400,000 and to pay FocalPoint Securities its
$375,000 fee for sale of the operating assets, provided
however that the fees are first approved by the Bankruptcy
Court.
B. The Budget: Exhibit G to the DIP Agreement is amended with
a new Exhibit G, which provides the approved budget
through November 5, 2011. The budget provides for, among
other things, payment of same remaining post petition
accounts payable and payment of anticipated expenses
associated with the winding down of the business. Two of
Debtor's principals, Jack Pearlstein and Gail
Hollingsworth, will be involved in the wind down efforts,
but are working without a salary. Debtor will continue to
use the services of its financial advisor, C&A, Inc., but
on a restricted basis, and will use part time contract
assistance by a former employee in preparation for its tax
returns and assembly of related financial information.
The budget also provides for payment of necessary
insurance and payment of property taxes on Debtor's
remaining real property.
On the "receipts" portion of the budget, Debtor
anticipates receiving the return of a $150,000 deposit it
made in connection with the potential sale of the PUD
property to RL Communities, and the return of $215,000
paid as post petition deposits for utilities. Once
received, these funds will be applied to Wells Fargo's
loan.
C. Releases: The DIP Amendment contains a release which is
consistent with the release that was in the DIP Agreement.
The release language results in a release of claims by the
Debtor but makes clear that the release does not affect
the right of the Committee to pursue an action against
Wells Fargo in the time limits proscribed by the previous
order approving the DIP Agreement.
D. Termination Date: The DIP Amendment modifies the
termination by extending it from Aug. 5, 2011, to
Nov. 5, 2011.
A copy of the cash collateral order and budget is available at
http://ResearchArchives.com/t/s?76bd
About Nurserymen's Exchange
Founded in 1941 as a San Francisco bulb brokerage business, and
currently based in Half Moon Bay in the San Francisco Bay Area,
Nurserymen's Exchange Inc. is a producer, broker and wholesaler of
home decor products incorporating indoor blooming plants,
specialty foliage, holiday grow kits, and potted edibles.
Nurserymen's Exchange filed a Chapter 11 petition (Bankr. N.D.
Calif. Case No. 11-31985) in San Francisco, California, on May 23,
2011. Stephen D. Finestone, Esq., in San Francisco, serves as
counsel to the Debtor. Omni Management Group, LLC, is the claims
and notice agent. C&A, Inc., serves as financial advisor. The
Debtor disclosed $34,755,036 in assets and $24,772,945 in
liabilities in its schedules.
An official committee of unsecured creditors has been appointed in
the case. The panel has tapped lawyers at Landau Gottfried &
Berger LLP as counsel.
Katten Muchin & Rosenmann, LLP, as its special counsel. Chelliah &
Associates as its restructuring and turnaround consultants and
advisors. FocalPoint Securities, LLC, as investment banker and
financial advisor. Calegari & Morri as accountant. The Abernathy
MacGregor Group, Inc., as its corporate communications consultant.
NUTRACEA: Posts $32,000 Net Loss in Second Quarter
--------------------------------------------------
NutraCea filed its quarterly report on Form 10-Q, reporting a net
loss of $32,000 on $9.6 million of revenues for the three
months ended June 30, 2011, compared with a net loss of
$4.5 million on $7.5 million of revenues for the same period last
year.
The improvement of $4.5 million between periods was primarily due
to (i) a $1.1 million improvement in gross profit primarily as a
result of higher revenues in the Bio-Refining segment and
associated plant efficiencies gained, (ii) a $635,000 improvement
in operating expenses, partially due to the impact of a
$1.0 million impairment loss in the prior year three months and
(iii) an improvement in warrant liability income (expense) of
$2.9 million.
The Company reported a net loss of $4.1 million on $17.6 million
of revenues for the six months ended June 30, 2011, compared with
a net loss of $7.8 million on $14.7 million of revenues for the
same period of 2010.
The improvement of $3.7 million between periods was primarily due
to (i) a $1.6 million improvement in gross profit primarily as a
result of higher revenues in the Bio-Refining segment and
associated plant efficiencies gained and (ii) a $2.2 million
improvement in operating expenses.
The Company's balance sheet at June 30, 2011, showed $58.0 million
in total assets, $26.9 million in total liabilities, $10.7 million
in redeemable noncontrolling interest in Nutra SA, and
stockholders' equity of $20.5 million.
As reported in the TCR on April 6, 2011, BDO USA, LLP, in Phoenix,
Arizona, expressed substantial doubt about NutraCea'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 resulting in an accumulated
deficit of $184.8 million. "Also, in November 2009, the Company
filed a voluntary petition for reorganization under Chapter 11 of
the United States Bankruptcy Code. Although the Company emerged
from bankruptcy in November 2010, there continues to be
substantial doubt about its ability to continue as a going
concern."
A copy of the Form 10-Q is available at http://is.gd/nEUC2h
Scottsdale, Arizona-based NutraCea (NTRZ.pk)
-- http://www.nutraceaonline.com/-- is a food ingredient and
health company focused on the procurement, processing and
refinement of rice bran and derivative products. The Company has
proprietary intellectual property that allows it to process and
convert rice bran, one of the world's most underutilized food
resources, into a highly nutritious ingredient, stabilized rice
bran (SRB) that has applications in various food products.
Nutracea filed for Chapter 11 bankruptcy protection (Bankr. D.
Ariz. Case No. 09-28817) on Nov. 10, 2009. NutraCea emerged from
Chapter 11 bankruptcy protection effective Nov. 30, 2010.
OLD COLONY: Can Access Wells Fargo Cash Collateral Until Sept. 1
----------------------------------------------------------------
On July 25, 2011, the U.S. Bankruptcy Court approved the
stipulation filed jointly by Old Colony, LLC, and Wells Fargo
Bank, N.A., authorizing the Debtor to use cash collateral through
Sept. 1, 2011, consistent with the Summer Budget Projections
attached to the order.
Wells Fargo and JH Lending Trust are granted postpetition security
interests in the same types of postpetition property of the estate
against which Wells Fargo and JH Lending Trust held liens as of
the Petition Date.
As additional adequate protection, the Debtor will pay to Wells
Fargo the amount of $50,000 on each of May 1, 2011, and June 1,
2011, and $60,000 on each of July 1, 2011, and Aug. 1, 2011.
A further hearing on the continued use of cash collateral will be
conducted on Sept. 1, 2011, at 2:00 p.m. in Boston by video
conference.
A copy of the Summer Budget Projections is attached as Exhibit AS
to the agreed order, which is available at:
http://bankrupt.com/misc/oldcolony.july25agreedccorder.pdf
Saugus, Massachusetts-based Old Colony, LLC, dba The Inn At
Jackson Hole, filed for Chapter 11 bankruptcy protection (Bankr.
D. Mass. Case No. 10-21100) on Oct. 11, 2010. Donald F. Farrell,
Jr., Esq., at Anderson Aquino LLP; James M. Liston, Esq., at
Bartlett Hackett Feinberg, Esq., and Jeffrey D. Ganz, Esq., at
Reimer & Braunstein LLP, assist the Debtor in its restructuring
effort. In its schedules, the Debtor disclosed $2,571,684 in
assets and $21,363,064 in liabilities.
OLD CUTTERS: In Chapter 11, Owes City of Haley
----------------------------------------------
Old Cutters, Inc., the corporation behind the struggling Old
Cutters subdivision east of Hailey, Idaho, filed a Chapter 11
petition (Bankr. D. Id. Case No. 11-41261) on Aug. 1, 2011.
Joseph M. Meier, Esq., at Cosho Humphrey, LLP, in Boise, Idaho,
serves as counsel. The Debtor disclosed $3,001,993 in assets and
$20,671,830 in liabilities.
Tony Evans at Idaho Mountian Express reports that the Chapter 11
bankruptcy filing could lead to a re-organization of debts to keep
the company solvent. It could also lead to a wiping clean of some
debts owed by the company, including debts owed to the City of
Hailey.
The report says Hailey City Attorney Ned Williamson would not
comment on how the city might respond at the bankruptcy court
hearing. Mr. Williamson said a "contested proceeding" would
likely result from the bankruptcy filing, leading to a court
decision on what debts, if any, are owed to the city.
Mr. Williamson said he would work to ensure that Hailey receives
"the full amount due under the annexation agreement." "John
Campbell still has possession of the property," said Mr.
Williamson.
ORLAND COUNTY: Court Approves Wolff Hill as Bankruptcy Counsel
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida
authorized Orlando Country Aviation Services, Inc., to employ
Frank M. Wolff and Wolff, Hill, McFarlin & Herron, P.A., as its
attorneys.
According to the Troubled Company Reporter on Aug. 5, 2011, FMW
and WHM&H will, among other things:
a. advise and counsel the debtor-in-possession concerning the
operation of its business in compliance with Chapter 11 and
orders of the Court;
b. defend any causes of action on behalf of the debtor-in-
possession; and
c. prepare, on behalf of the debtor-in-possession, all
necessary applications, motions, reports, and other legal
papers in the Chapter 11 case;
d. assist in the formulation of a plan of reorganization and
preparation of a disclosure statement; and
e. provide all services of a legal nature in the field of
bankruptcy law.
Frank M. Wolff, a shareholder, officer, director and employee of
WHM&H, told the Court that the firm received $2,600 for legal
services provided prior to the petition date; and $16,361 as a
retainer which WHM&H will take into income for post bankruptcy
fees and costs. The source of the retainer is James P.A.
Thompson, 100% owner and president of the Debtor.
To the best of the Debtor's knowledge, FMW and WHM&H do not
hold or represent any interest adverse to the estate; and are
"disinterested persons" as that term is defined in Section 101(14)
of the Bankruptcy Code.
WHM&H also serves as legal counsel for Avion Point West, LLC, an
affiliate.
About Avion Point West
Based in Longwood, Florida, Avion Point West LLC and its
affiliate, Orlando Country Aviation Services Inc., filed for
Chapter 11 bankruptcy protection (Bank. M.D. Fla. Case Nos.
11-10364 and 11-10365) on July 8, 2011. Judge Karen S. Jennemann
presides over the Debtors' cases. Frank M. Wolff, Esq., at Wolff
Hill McFarlin & Herron PA, represents the Debtor. The Debtor
estimated assets between $10 million and $50 million, and debts
between $1 million and $10 million.
The petitions were signed by James PA Thompson, the managing
member. Mr. Thompson is the developer of Orlando Apopka Airport
in northwest Orange County. During the past decade, Mr. Thompson
has transformed Orlando Apopka Airport, on U.S. Highway 441
between Plymouth and Zellwood, from an old airfield called Orlando
Country Airport into a complex of hangar condominiums whose owners
now control the facility.
OSI RESTAURANT: Reports $8 Million Net Income in Second Quarter
---------------------------------------------------------------
OSI Restaurant Partners, LLC, filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting
net income of $8.09 million on $955.54 million of total revenues
for the three months ended June 30, 2011, compared with net income
of $19.23 million on $916.98 million of total revenues for the
same period during the prior year.
The Company also reported net income of $58.20 million on $1.95
billion of total revenues for the six months ended June 30, 2011,
compared with net income of $20.50 million on $1.86 billion of
total revenues for the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $2.38 billion
in total assets, $2.40 billion in total liabilities and a $18.37
million total deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/UrTcVh
About OSI Restaurant
OSI Restaurant Partners, Inc., is the #3 operator of casual-dining
spots (behind Darden Restaurants and Brinker International), with
more than 1,400 locations in the U.S. and 20 other countries. Its
flagship Outback Steakhouse chain boasts more than 950 locations
that serve steak, chicken, and seafood in Australian-themed
surroundings. OSI also operates the Carrabba's Italian Grill
chain, with about 240 locations. Other concepts include Bonefish
Grill, Fleming's Prime Steakhouse, and Cheeseburger In Paradise.
Most of the restaurants are company owned. A group led by
Chairman Chris Sullivan took the company private in 2007.
The Company reported net income of $27.84 million on $3.62 billion
of total revenues for the year ended Dec. 31, 2010, compared with
a net loss of $54.40 million on $3.60 billion of total revenues
during the prior year.
PACESETTER FABRICS: Lazarus Resources OK'd as Financial Advisor
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
authorized Pacesetter Fabrics, LLC, to employ Lazarus Resources
Group, LLC as turnaround consultant and financial advisor.
As reported in the Troubled Company Reporter on July 26, 2011,
Lazarus Resources is expected to, among other things:
1. undertake an independent analysis and review of the Debtor's
business and operations, and identify additional opportunities
for improvement with the objective of recommending and
implementing specific changes throughout the sales and revenue
cycle;
2. prepare an inventory reduction and sales plan pursuant to
the Debtor's cash collateral stipulation with the Debtor's
primary secured lender, Cathay Bank; and
3. oversee and review the preparation of all financial data and
reports including the Debtor's cash flow projections, schedules
of assets and liabilities, statement of financial affairs,
budget-to-actual reports, and monthly operating reports to be
filed in connection with the case.
Pursuant to the engagement agreement, the Debtor will pay Lazarus
Resources $10,000 for services rendered during the week of
June 18, to 24, 2011, and additional fees of $2,000 per week, to
be paid on a bi-weekly basis thereafter and on every other Friday
until termination of the engagement agreement.
Lazarus Resources currently held $14,000 in its client trust
account.
To the best of the Debtor's knowledge, Lazarus Resources is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
About Pacesetter Fabrics
Based in City of Commerce, California, Pacesetter Fabrics, LLC,
dba Pacesetter Off Price and Pacesetter Garments, is a distributor
of quality textile and garment fabrics in the United States and
international markets. The Company has been in business for over
14 years. The Company is owned 98% by Net, LLC, a California
limited liability company, 1% by Leora Namvar (Ramin Namvar's
wife), and 1% by Massoud Poursalimi (Leora Namvar and David
Poursalimi's father). Net LLC is in turn owned 99% by Ramin
Namvar and 1% Leora Namvar.
Pacesetter Fabrics filed for Chapter 11 bankruptcy (Bankr. C.D.
Calif. Case No. 11-36330) on June 17, 2011. Judge Ernest M. Robles
presides over the case. The Debtor is represented by Brian L.
Davidoff, Esq., C. John M. Melissinos, Esq., and Claire E. Shin,
Esq., at Rutter Hobbs & Davidoff Incorporated.
Brian Wygle -- Brian@lazarusresources.com -- president of Lazarus
Resources Group, LLC, a corporate turnaround consultant, assists
Pacesetter with its turnaround and reorganization efforts and the
financial affairs and management of the Company.
The Debtor disclosed $33,695,869 in assets and $28,599,582 in
liabilities as of the Chapter 11 filing.
PEARLAND SUNRISE: Court Sets Sept. 26 Plan Confirmation Hearing
---------------------------------------------------------------
On Aug. 10, 2011, the U.S. Bankruptcy Court for the Western
District of Texas, Austin Division, approved the First Amended
Disclosure Statement dated Aug. 8, 2011, describing Pearland
Sunrise Lake Village I, LP's Plan of Reorganization dated Nov. 30,
2010.
The Court fixed Sept. 19, 2011, at 5:00 p.m. (CT) as the last day
for submitting ballots for acceptance or rejection of the Plan.
The Court also fixed Sept. 19, 2011 at 5:00 p.m. (CT) as the last
day for filing and serving written objections to confirmation of
the Plan.
By Sept. 22, 2011, counsel for the Debtor will file with the Court
(a) a ballot summary in the form required by Local Bankruptcy Rule
3018(b) with a copy of the ballots; and (b) any Declarations in
support of confirmation of the Plan.
Sept. 26, 2011 at 1:30 p.m. (CT), is fixed as the time and place
of the hearing on confirmation of the Plan and any objections
thereto.
After confirmation, the Debtor will continue to operate its
business, focusing its attention on leasing its real property.
The Plan will attempt to repay the Debtor's creditors in full
through the continued operation of the Property, use of the
"Registry Funds" that was placed into the Debtor's DIP account and
the possible recovery of other funds related to the "Nationwide
Lawsuit".
As reported in the Troubled Company Reporter on Feb. 2, 2011, The
salient terms of the Plan include:
(1) Holders of administrative claims and priority claims will be
paid in full on the effective date of the Plan;
(3) Holders of secured claims will be paid over time.
(4) Holders of unsecured claims will be paid the allowed amounts
of their claims pro-rata in 60 equal installments beginning
on the Effective Date.
(5) Partnership interests held by the general and limited
partners of the Debtor will be retained, but will not re-
vest until all other Allowed Claims have been paid in full.
A copy of the First Amended Disclosure Statement is available at:
http://bankrupt.com/misc/pearland.1stamendedDS.pdf
Marble Falls, Texas-based Pearland Sunrise Lake Village I, LP, dba
SRLVI, was chartered in June 2005 for the purpose of acquiring and
developing an approximately 5.8 acres of land at 9415 Broadland,
Texas. Office space of 36,008 square feet of retail space and
42,973 square feet of office space was built on the property. The
Company filed for Chapter 11 bankruptcy protection (Bankr. W.D.
Tex. Case No. 10-11926) on July 9, 2010. Frank B. Lyon, Esq., at
the Law Offices of Frank B. Lyon, in Austin, Texas, represents the
Debtor. In its schedules, the Debtor disclosed $10,253,717 in
assets and $16,222,127 in liabilities.
PEGASUS RURAL: Wants OK to Get Add'l $900,000 Loan from Xanadoo
---------------------------------------------------------------
Pegasus Rural Broadband, LLC, et al., ask the U.S. Bankruptcy
Court for the District of Delaware for the entry of a second
interim order authorizing the Debtors to:
(i) obtain additional post-petition financing of up to $900,000
from Xanadoo Company, thus increasing the total amount
borrowed from $1,600,000 to $2,500,000; and
(ii) use the prepetition lenders' cash collateral.
Xanadoo, the ultimate parent of the Debtors, provided the
$1,600,000 financing pursuant to the First Interim DIP Order.
The Debtors will use the proceeds of the DIP facility to pay their
current and ongoing operating expenses, including post-petition
wages and salaries, as well as utility and critical vendor costs.
The significant terms and conditions of the DIP Facility Agreement
are:
Borrower : Pegasus Rural Broadband, LLC; Pegasus Guard
Band, LLC; Xanadoo Spectrum, LLC; Xanadoo
Holdings, Inc.; Xanadoo, LLC.
Lender : Xanadoo Company.
Financing Fee : 4% of the Maximum Amount payable on the Maturity
Date.
Interest Rate : 12.5%.
Maturity Date : Dec. 11, 2012.
Collateral : First priority liens upon and security interests
in substantially all of the Debtors' assets, and
an allowed superpriority administrative expense
claim.
As with the First Interim DIP, the Debtors and Lender intend the
extension and modification of the DIP Credit Agreement to act as a
bridge financing while the Debtors seek alternative sources of
postpetition financing on terms as good as or better than the DIP
Facility Agreement.
Beach Point Capital Management LP's claim as of the Petition Date
is approximately $52 million representing repayment of notes and
accrued interest and if the put right is deemed exercisable, an
additional $7 million payment with respect to the XHI Warrants.
This claim is secured by first priority liens on substantially all
of the Debtors' interests in property and any proceeds therefrom.
As described in the Verlin Declaration, the Debtors currently have
assets of total market value in excess of $200 million. As of the
filing of this motion, Debtors estimate total current liabilities
on the Prepetition Lender's claim to be $53.310,698.34, plus an
additional $7 million if the put right is deemed exercisable with
respect to the XHI Warrants.
About Pegasus Rural Broadband
Pegasus Rural Broadband, LLC, and its affiliates, including
Xanadoo Holdings Inc., sought Chapter 11 protection (Bankr. D.
Del. Lead Case No. 11-11772) on June 10, 2011.
The Debtors are subsidiaries of Xanadoo Company, a 4G wireless
Internet provider. Xanadoo Co. was not among the Chapter 11
filers.
The subsidiaries sought Chapter 11 protection after they were
unable to restructure $52 million in 12.5% senior secured
promissory notes that matured in May. The notes are owing to
Beach Point Capital Management LP.
Xanadoo Holdings, through Xanadoo LLC -- XLC -- offers wireless
high-speed broadband service, including digital phone services,
under the Xanadoo brand utilizing licensed frequencies in the 2.5
GHz frequency band. As of May 31, 2011, XLC served 12,000
subscribers in Texas, Oklahoma and Illinois. In the summer of
2010, the Debtors closed all of their retail stores and kiosks in
its six operating markets and severed all fulltime sales
personnel. Since the closings, the Debtors relied one key
retailer in each market to serve as local point of presence to
market customer transactions.
Judge Peter J. Walsh presides over the case. Rafael Xavier
Zahralddin-Aravena, Esq., Shelley A. Kinsella, Esq., and Jonathan
M. Stemerman, Esq., at Elliott Greenleaf, in Wilmington, Delaware,
serve as counsel to the Debtor. NHB Advisors Inc. is their
financial advisors. Epiq Systems, Inc., is the claims and notice
agent.
Xanadoo Holdings, Pegasus Guard Band and Xanadoo Spectrum each
estimated assets of $100 million to $500 million and debts of
$50 million to $100 million.
PENINSULA HOSPITAL: Service Cut Back Irates Elected Officials
-------------------------------------------------------------
Ivan Pereira at Yournabe.com reports that elected officials were
furious that Peninsula Hospital's administrators were starting to
cut back on their services as the financially strapped medical
facility mulled a possible bankruptcy filing.
According to the report, the Rockaway hospital stopped taking in
ambulances at the beginning of the week and its board has been
involved in several long meetings trying to hammer out its future,
a spokeswoman said.
The report says, although the emergency room was still open for
patients, City Councilman James Sanders (D-Laurelton) blasted the
hospital's administrators for refusing to accept ambulances he
said such a drastic step puts residents' lives in danger.
The ambulance embargo is another in a series of recent setbacks
for the hospital and the bad news may keep on coming. The
hospital, owned by the same company that owns Jamaica and Flushing
hospitals, MediSys, owes $13 million to its vendors and has said
that it might have to close.
Mr. Sanders and other elected officials in the area have said the
hospital's disclosure of its debt came as a surprise to them
because Peninsula's administration told them as recently as two
months ago that the medical facility was in good financial shape.
The report notes State Sen. Malcolm Smith (D-St. Albans) has
called on the state Department of Health and state attorney
general's office to investigate what caused the red ink.
Three petitioners who were owed $127,204 filed an involuntary
Chapter 11 petition against the hospital Aug. 16, according to
Crain's, but the hospital declined to comment about the court
action, which was designed to give the board more time to resolve
the crisis.
Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an
involuntary Chapter 11 bankruptcy protection against Peninsula
Hospital Center in the U.S. Bankruptcy Court for the Eastern
District of New York (Case No. 11-47056) on Aug. 16, 2011. Judge
Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron,
Esq., Macron & Cowhey, represents the petitioners.
PETRA FUND: Disclosure Statement Hearing Continued to Sept. 12
--------------------------------------------------------------
The hearing to consider the adequacy of the disclosure statement
explaining Petra Fund REIT Corp., and Petra Offshore Fund LP's
proposed chapter 11 plan has been continued to Sept. 12, 2011, at
2:00 p.m.
The Court will also consider the Debtors' motion to extend their
period to solicit acceptances for the proposed chapter 11 plan on
Sept. 12.
Among other things, as reported in the Troubled Company Reporter
on June 8, 2011, pursuant to the Plan, holders of administrative
claims totaling $1,000,000 and priority tax claims totaling
$750,000 will be paid in full. RBS and JPMorgan will receive no
cash, and instead, will receive a new secured debt instrument in
exchange of their secured claims.
Holders of general unsecured claims totaling $1,5000,000 will (i)
receive from the liquidation trust a pro rata share of the
distributable assets in a pro rata amount equal 100% of the
holders' allowed general unsecured claims, or (ii) absent a
liquidation trust, a pro rata share of the remaining assets after
payment of higher ranked claims. Holders of interests in REIT and
Offshore won't receive anything.
About Petra Fund
Petra Fund REIT Corp. and its affiliates are in the business of
originating, investing in, structuring and trading loans secured
by commercial real-estate. Petra Offshore Fund LP is the parent.
Petra Fund and Petra Offshore sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 10-15500) on Oct. 20, 2010, and are
represented by Shaya M. Berger, Esq., and Brian E. Goldberg, Esq.,
at Dickstein Shapiro, LLP. At the time of the filing, each of the
Debtor estimated its assets at less than $10 million and its debts
at more than $100 million.
Petra Fund blamed its Chapter 11 filing on the extraordinary and
unprecedented collapse of the credit and commercial real estate
markets, which caused a mark-to-market value of its assets to
plummet.
PHILADELPHIA NEWSPAPERS: Settles Superfund Claim, To Pay $650,000
-----------------------------------------------------------------
Ian Thoms at Bankruptcy Law360 reports that the liquidation trust
of Philadelphia Newspapers LLC has agreed to pay more than
$650,000 to settle its part of a $17.8 million cleanup claim over
the Swope Oil Superfund site in New Jersey, according to a motion
filed Friday in Pennsylvania federal court.
The agreement settles the bankruptcy claim brought by the U.S.
Environmental Protection Agency, which alleged Philadelphia
Newspapers and other liable parties owed it for capping the Swope
Oil site in Pennshauken, N.J., and removing toxin-laden soil in
the early 1990s, according to Law360.
About Philadelphia Newspapers
Philadelphia Newspapers, LLC -- http://www.philly.com/-- owned
and operated numerous print and online publications in the
Philadelphia market, including the Philadelphia Inquirer, the
Philadelphia Daily News, several community newspapers, the
region's number one local Web site, philly.com, and a number of
related online products. The Company's flagship publications were
the Inquirer, the third oldest newspaper in the country and the
winner of numerous Pulitzer Prizes and other journalistic
recognitions, and the Daily News.
Philadelphia Newspapers and its debtor-affiliates filed for
Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case No. 09-
11204) on Feb. 22, 2008. Proskauer Rose LLP is the Debtors'
bankruptcy counsel, while Lawrence G. McMichael, Esq., at Dilworth
Paxson LLP is the local counsel. The Debtors' financial advisor
is Jefferies & Company Inc. Philadelphia Newspapers estimated
assets and debts of $100 million to $500 million in its Chapter 11
petition.
The Debtors proposed a plan of reorganization which would sell
substantially all of their assets at an auction. The Philadelphia
Media Network, which was formed by the Debtors' secured lenders,
acquired the Philadelphia Inquirer, the Daily News and Philly.com
for $105 million in cash. The Court approved the sale and
confirmed a revised plan at a hearing on Sept. 30.
Philadelphia Newspapers previously won confirmation of a plan
based on the sale of the business to the same group of lenders for
$139 million. The sale failed to close because the buyers weren't
able to reach agreement on a new labor contract with the Teamsters
union. After another auction on Sept. 23, the lenders again
emerged as the winning bidder but with a lower offer.
The Plan became effective and the sale closed on Oct. 8, 2010.
PHILADELPHIA ORCHESTRA: Could Exceed $2.9-Mil. Budget for Fees
--------------------------------------------------------------
JDSupra reports that the expenses and fees for the bankruptcy
process incurred by the Philadelphia Orchestra to lawyers,
consultants and other professionals are fast approaching the
amount originally set, which is a sizable $2.9 million. The
amount outstanding as at the end of June is $2.4 million, after
the most recent bill of about $750,000 was added to the overall
expenses.
According to Orchestra spokesman Matt Broscious, "The $2.9 million
projection referenced in the most recent draft of the strategic
plan reflects only bankruptcy-related professional fees and was
based on an estimate of reasonable progress in the case."
The report says the Orchestra has no plans to revise the initial
projected figure of $2.9 million. There are any number of factors
that can impact those costs... The orchestra does not plan on
issuing a revised projection for costs of reorganization until
sometime in early fall.
With the goal to provide ongoing financial sustainability for the
orchestra, the bankruptcy process represents a set of onetime,
short-term costs that will help us do that."
The report notes the highest individual cost thus far is the
professional fee amounting to $1.05 million charged by the
Orchestra's bankruptcy lawyers, Dilworth Paxson LLP. The amount
comprises of billable hours of work by 12 lawyers and 2
paralegals. The chairman of Mr. Dilworth, Joseph Jacovini is a
Philadelphia Orchestra member. As such, the firm enjoys
certain benefits from the Orchestra that other contractors do not.
The report relates that the board of Philadelphia Orchestra has
agreed to personally cover all of Mr. Dilworth's fees.
In addition, Mr. McMichael said that Mr. Dilworth had made a
donation of $75,000 to the Orchestra. Aside from Mr. Dilworth,
the next highest amount to be paid is $833,365 that represents
fees by Alvarez & Marsal Holdings LLC, the Orchestra's bankruptcy
adviser.
About the Philadelphia Orchestra
The Philadelphia Orchestra -- http://www.philorch.org/-- claims
to be among the world's leading orchestras. Bloomberg News says
the orchestra became the first major U.S. symphony to file for
bankruptcy protection, surprising the music world.
Previous conductors include Fritz Scheel (1900-07), Carl Pohlig
(1907-12), Leopold Stokowski (1912-41), Eugene Ormandy (1936-80),
Riccardo Muti (1980-92), Wolfgang Sawallisch (1993-2003), and
Christoph Eschenbach (2003-08). Charles Dutoit is currently chief
conductor, and Yannick Nezet-Seguin has assumed the title of music
director designate until he takes up the baton as The Philadelphia
Orchestra's next music director in 2012.
The Philadelphia Orchestra Association, The Academy of Music of
Philadelphia, Inc., and Encore Series, Inc., filed separate
Chapter 11 petitions (Bankr. E.D. Pa. Case Nos. 11-13098 to
11-13100) on April 16, 2011. Judge Eric L. Frank presides over
the case. The Philadelphia Orchestra Association is being advised
by Dilworth Paxson LLP, its legal counsel, and Alvarez & Marsal,
its financial advisor. Curley, Hessinger & Johnsrud serves as its
special counsel. In its petition, Philadelphia
Orchestra estimated $10 million to $50 million in assets and
debts.
Encore Series, Inc., tapped EisnerAmper LLP as accountants and
financial advisors.
Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed
seven members to the official committee of unsecured creditors in
the Debtors' case. Reed Smith LLP serves as the Committee's
counsel.
The orchestra at the start of the Chapter 11 case said it needed
relief from pension obligations, a new lease with the Kimmel
Center where it performs, and a new union contract with musicians.
PHILADELPHIA ORCHESTRA: Court OKs Luken & Wolf as Appraiser
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Pennsylvania
has approved Philadelphia Orchestra and Academy of Music of
Philadelphia, Inc.'s application to employ Lukens & Wolf LLC as
the Debtors' real estate appraiser and consultant.
The Debtors told the Court they require the services of Lukens to
value the Academy of Music building, located at Broad and Locust
Streets, Philadelphia, and certain commercial space located at
1420 Locust Street, Philadelphia.
Lukens will also consider and evaluate the leases and restrictions
on the Academy Property to determine the impact such leases and
restrictions have on the value of the property.
The hourly rates of those employed by Lukens who may perform work
for the Debtors are:
Reaves C. Lukens, Jr. $395/hour
Reaves C. Lukens, III $275/hour
Richard F. Wolf $275/hour
Other Licensed Appraisers $125/hour
Researcher/Appraiser Assistant $100/hour
Reaves C. Lukens, Jr., a principal in Lukens & Wolf, assures the
Court that the firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code, as modified by
Section 1107(b), and that the firm does not hold or represent an
interest adverse to the Debtors' estates.
About the Philadelphia Orchestra
The Philadelphia Orchestra -- http://www.philorch.org/-- claims
to be among the world's leading orchestras. Bloomberg News says
the orchestra became the first major U.S. symphony to file for
bankruptcy protection, surprising the music world.
Previous conductors include Fritz Scheel (1900-07), Carl Pohlig
(1907-12), Leopold Stokowski (1912-41), Eugene Ormandy (1936-80),
Riccardo Muti (1980-92), Wolfgang Sawallisch (1993-2003), and
Christoph Eschenbach (2003-08). Charles Dutoit is currently chief
conductor, and Yannick Nezet-Seguin has assumed the title of music
director designate until he takes up the baton as The Philadelphia
Orchestra's next music director in 2012.
The Philadelphia Orchestra Association, The Academy of Music of
Philadelphia, Inc., and Encore Series, Inc., filed separate
Chapter 11 petitions (Bankr. E.D. Pa. Case Nos. 11-13098 to
11-13100) on April 16, 2011. Judge Eric L. Frank presides over
the case. The Philadelphia Orchestra Association is being advised
by Dilworth Paxson LLP, its legal counsel, and Alvarez & Marsal,
its financial advisor. Curley, Hessinger & Johnsrud serves as its
special counsel. In its petition, Philadelphia
Orchestra estimated $10 million to $50 million in assets and
debts.
Encore Series, Inc., tapped EisnerAmper LLP as accountants and
financial advisors.
Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed
seven members to the official committee of unsecured creditors in
the Debtors' case. Reed Smith LLP serves as the Committee's
counsel.
The orchestra at the start of the Chapter 11 case said it needed
relief from pension obligations, a new lease with the Kimmel
Center where it performs, and a new union contract with musicians.
PHILLIPS PLASTIC: S&P Assigns 'B' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'B' corporate credit
rating to Hudson, Wisc.-based Phillips Plastics Corp. The outlook
is stable.
"At the same time, we assigned a 'B' issue-level rating and a '3'
recovery rating to Phillips' $245 million senior secured credit
facility. The facility consists of a $45 million revolving credit
facility due 2016 and a $200 million term loan B due 2017. The
senior credit facility also has an incremental facility that
provides the company with the ability to upsize the term loan by
$60 million," S&P related.
"The low speculative-grade rating on Phillips reflects our view
that the company will maintain an aggressive financial risk
profile characteristic of sponsor-owned companies," said Standard
& Poor's credit analyst Michael Berrian. In addition,
notwithstanding the relatively substantial Medisize acquisition,
Phillips' business risk profile will remain weak, based on its
still-relatively limited position in the competitive and
fragmented field of outsourced contract manufacturing.
Phillips' aggressive financial risk profile reflects its ownership
by financial sponsor Kohlberg & Co., following Kohlberg's December
2010 acquisition of the company. Pro forma for the acquisition of
Medisize, lease-adjusted leverage will exceed 5x, and funds from
operations (FFO) to total debt will be relatively thin at about
11%. "We believe that the company can use its limited free
operating cash flow (FOCF) to modestly reduce leverage to less
than 5x over the next 12 to 18 months. Still, sustained debt
reduction could be compromised by additional bolt-on acquisitions
as the company seeks to expand its geographic footprint or expand
its manufacturing capabilities," S&P said.
PHILLIPS RENTAL: Can Use Banks' Cash Collateral Until Sept. 23
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Tennessee
has authorized Phillips Rental Properties, LLC, to use cash
collateral through 5:00 p.m. on Sept. 23, 2011, pursuant to a
interim budget.
Any variance in the expense figures in the interim budget in
excess of 10% will require approval by the Court.
Debtor is authorized to use cash collateral based on a pro-rata
distribution of the rents and sale proceeds from each property in
which the Banks have an interest.
As adequate protection, Bank of Tennessee, Carter County Bank,
Citizens Bank, Eastman Credit Union, First Tennessee Bank, Regions
Bank and TriSummit Bank are granted interim replacement liens
in and to all assets of the estate that are within the collateral
descriptions of the Banks' loan and security documents. In
addition, the Debtor is authorized and agrees to pay the amounts
as set forth in the budget to the Banks within the time periods
specified in the budget.
The Debtor will maintain insurance coverage on all property of the
estate, Workmen's Compensation Insurance and General Commercial
Liability Insurance in a form and amount acceptable to the Bank
and the United States Trustee.
An adjourned hearing on the Debtor's continued use of cash
collateral will be held on Sept. 20, 2011, at 9:00 a.m.
As reported in the TCR on Dec. 28, 2010, the Debtor, along with
Gary and Karla Phillips, is a co-maker and guarantor on notes
with:
Approximate Amount of Claim
---------------------------
a. Bank of Tennessee $514,748
b. Carter County Bank $204,419
c. Citizens Bank $565,947
d. Eastman Credit Union $2,383,489
e. First Tennessee Bank $791,808
f. Regions Bank $3,770,512
g. TriSummit Bank $1,036,460
About Phillips Rental Properties
Piney Flats, Tennessee-based Phillips Rental Properties, LLC,
filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tenn. Case
No. 10-53129) on Dec. 7, 2010. Fred M. Leonard, Esq. --
fredmleonard@earthlink.net -- in Bristol, Tennessee, serves as the
Debtor's bankruptcy counsel. According to its schedules, the
Debtor disclosed $13,499,682 in total assets and $9,650,892 in
total liabilities. No unsecured creditors committee has been
appointed in the case.
PICHI'S INC: Schedules & Statement Due Wednesday
------------------------------------------------
Pichi's Inc. sought and obtained an order from the U.S. Bankruptcy
Court for the District of Puerto Rico extending the time to file
its remaining Schedules by 14 days, to Aug. 31, 2011.
Charles A. Cuprill, Esq., of Charles Alfred Cuprill, PSC Law
Offices, attorney for the Debtor, states that the Debtor is in the
process of gathering the necessary information and documents to
properly file its remaining Schedules. However, to this date
Debtor has been unable to complete this task within the expected
time.
About Pichi's Inc.
Pichi's Inc. owns and operates the Best Western Pichi's Hotel in
Guayanilla, Puerto Rico. Pichi's filed for Chapter 11 bankruptcy
(Bankr. D. P.R. Case No. 11-06583) on Aug. 3, 2011. Judge Mildred
Caban Flores presides over the case. Charles Alfred Cuprill, PSC
Law Offices, serves as the Debtor's bankruptcy counsel. CPA Luis
R. Carrasquillo & Co., P.S.C., serves as financial consultants.
In its petition, the Debtor estimated US$10 million to US$50
million in both assets and debts. The petition was signed by Luis
A. Emmanuelli Gonzalez, president.
PIEDMONT CENTER: Hires Trawick H. Stubbs, Jr., as Attorney
----------------------------------------------------------
Piedmont Center Investments, LLC, seeks permission from the U.S.
bankruptcy Court for the Eastern District of North Carolina to
employ Trawick H. Stubbs, Jr., and Stubbs & Perdue, P.A., as
attorney for the Debtor in the Chapter 11 proceeding; and in
support of said the application, shows unto the Court:
1. Trawick H. Stubbs, Jr., and Stubbs & Perdue, P.A., do not
hold or represent an interest adverse to the estate.
2. Trawick H. Stubbs, Jr., and Stubbs & Perdue, P.A., are
disinterested within the meaning of Sec. 327(a) of the
Bankruptcy Code, as set forth in the affidavit.
3. The Debtor wishes to retain Trawick H. Stubbs, Jr., and
Stubbs & Perdue, P.A., to represent and assist the Debtor in
carrying out its duties under the provisions of Chapter 11
of the Bankruptcy Code. The Debtor wishes to retain Trawick
H. Stubbs, Jr., and Stubbs & Perdue, P.A., to represent the
estate generally throughout the administration of this
Chapter 11 proceeding.
4. The compensation paid to date to Trawick H. Stubbs, Jr. and
Stubbs & Perdue, P.A., is disclosed in the attached
affidavit. The Debtor has read the affidavit, and all
matters therein are true and correct to the best of its
knowledge and belief. All post-petition fees, compensation
and reimbursement for expenses to said firm will be
determined after application and approval by the Court.
5. Pursuant to 11 U.S.C. Sec. 327(d) the employment of Trawick
H. Stubbs, Jr. and Stubbs & perdue, P.A., would be in the
best interest of the estate
Piedmont Center's manager and part-owner Roger Camp signed a
Chapter 11 petition for Piedmont Center Investments, LLC (Bankr.
E.D.N.C. Case No. 11-06178) on Aug. 11, 2011. Trawick H. Stubbs,
Jr., Esq., at Stubbs & Perdue, P.A., in New Bern, North Carolina,
serves as counsel to the Debtor. In its schedules, the Debtor
disclosed $27.2 million in assets and $15.5 million in
liabilities.
PINNACLE INVESTMENTS: Case Summary & 10 Largest Unsec Creditors
---------------------------------------------------------------
Debtor: Pinnacle Investments & Developments, Inc.
6470 SW 4 St.
Pembroke Pines, FL 33023
Bankruptcy Case No.: 11-33481
Chapter 11 Petition Date: August 23, 2011
Court: United States Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: John K. Olson
Debtor's Counsel: Susan D. Lasky, Esq.
SUSAN D LASKY, PA
2101 N Andrews Ave #405
Wilton Manors, FL 33311
Tel: (954) 565-5854
Fax: (954) 462-8411
E-mail: SDLPAECF@bellsouth.net
Scheduled Assets: $5,524
Scheduled Debts: $1,057,116
A list of the Company's 10 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/flsb11-33481.pdf
The petition was signed by Paul Campbell, president.
PINNACLE ENTERTAINMENT: Moody's Affirms 'B2' Corporate Rating
-------------------------------------------------------------
Moody's Investors Service revised Pinnacle Entertainment, Inc.'s
rating outlook to stable from negative and affirmed the company's
B2 Corporate Family and Probability of Default ratings. At the
same time, Moody's withdrew the Ba2 rating on the company's $375
million revolver expiring 2014 which was replaced with a $410
million revolver due 2016 (unrated).
Ratings affirmed and LGD estimates were revised where applicable:
Corporate Family Rating at B2
Probability of Default Rating at B2
$450 million 8.625% senior unsecured notes due 2017 at B1 (LGD 3,
35%)
$380 million 7.5% senior subordinated notes due 2015 at Caa1 (LGD
5, 79%)
$350 million 8.75% senior subordinated notes due 2020 at Caa1 (LGD
5, 79%)
Rating withdrawn:
$375 million senior secured revolver due 2014 at Ba2 (LGD 1, 6%)
RATINGS RATIONALE
The revision of Pinnacle's rating outlook to stable from negative
reflects the company's considerable revenue, profit and profit
margin improvements at its St. Louis properties and at L'Auberge
in Lake Charles, LA through the first half of fiscal 2011 along
with the benefits from both property-level and corporate expense
management efforts and recent amendments to the company's
revolving credit facility. Moody's believes that these factors
have improved Pinnacle's financial flexibility enough to make it
possible for the company to pursue planned development activities
and achieve and maintain debt/EBITDA below 5.5x. Lease-adjusted
debt/EBITDA for the latest 12-month period ended June 30, 2011 was
about 5.3 times; or 5.6 times assuming debt is used to fund the
company's $95 million investment in an off-balance sheet Asian
Joint Venture.
The B2 Corporate Family Rating considers several concerns
including Moody's view that overall gaming demand trends in the
U.S. will remain weak and will challenge the company to grow
revenues and margins further at some of its properties. It also
reflects Pinnacle's continued heavy revenue and EBITDA
concentration in Louisiana (the state accounts for about 60% of
the company's property-level EBITDA). Additionally, debt-financed
development and investment activity, including the resumption of
construction activity in Baton Rouge, LA, planned development in
Cincinnati, OH, and investment in an off-balance sheet Asian Joint
Venture, are expected to increase absolute debt levels until one
or more of these projects begins to generate cash flow, which is
not expected until the middle of 2012 at the earliest.
On August 3, 2011, Pinnacle completed an amend and extend
transaction to its existing credit facility. The transaction
increased the borrowing capacity to $410 million from $375
million, extended the facility maturity from 2014 to 2016, and
lowered the pricing by 125 basis points. It also provided
additional covenant flexibility to accommodate the company's
planned development projects.
Pinnacle's rating could be raised if it appears that the company
can achieve and maintain debt/EBITDA at or below 5.0 times.
Ratings could be lowered if it appears the company will not be
able to maintain debt/EBITDA below 6.5 times. Any formal approval
of gaming in Texas could also have a negative impact on the
ratings.
The principal methodology used in rating Pinnacle was the Global
Gaming Industry Methodology published in December 2009. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.
Pinnacle owns and operates casinos in Nevada, Louisiana, Indiana,
and Missouri, and recently purchased River Downs, a horse racing
facility located in southeast Cincinnati, Ohio. The company
generates approximately $1.2 billion of annual net revenues.
PLATINUM STUDIOS: Incurs $6.3 Million Second Quarter Net Loss
-------------------------------------------------------------
Platinum Studios, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss of $6.31 million on $5 million of net revenue for the
three months ended June 30, 2011, compared with a net loss of
$565,666 on $2.06 million of net revenue for the same period a
year ago.
The Company also reported a net loss of $7.53 million on
$5.52 million of net revenue for the six months ended June 30,
2011, compared with a net loss of $1.57 million on $2.09 million
of net revenue for the same period during the prior year.
The Company's balance sheet at June 30, 2011, showed $5.61 million
in total assets, $28.44 million in total liabilities, all current,
and a $22.82 million total shareholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/lmMilv
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 is also delinquent in payment of $120,026 for payroll
taxes as of March 31, 2011, and in default of certain of its short
term notes payable. These matters raise substantial doubt about
the Company's ability to continue as a going concern.
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.
PLATINUM VENTURE: Files for Bankruptcy Protection
-------------------------------------------------
Daily News in Los Angeles reports that Platinum Venture Capital
Funding LLC, 11437 Wish Ave., Granada Hills, filed for bankruptcy
protection (Case No. 11-194980-VK) in San Fernando Valley, in
California. The Company did not disclose its assets and debts.
PLY GEM HOLDINGS: Reports $2 Million Net Income in Second Quarter
-----------------------------------------------------------------
Ply Gem Holdings, Inc., reported net income of $2.06 million on
$294.49 million of net sales for the three months ended July 2,
2011, compared with a net loss of $409,000 on $301.66 million of
net sales for the three months period ended July 3, 2010.
The Company also reported a net loss of $68.83 million on $494.59
million of net sales for the six months ended July 2, 2011,
compared with net income of $53.69 million on $505.86 million of
net sales for the six months period ended July 3, 2010.
The Company's selected balance sheet data at July 2, 2011, showed
$24.07 million in cash and cash equivalents, $988.77 million in
long-term debt and a $240.79 million stockholders' deficit.
Gary E. Robinette, President and CEO, said "I am satisfied with
Ply Gem's second quarter and first half 2011 sales and Adjusted
EBITDA results in light of the challenging conditions that
continue to exist in the housing market today. Despite single
family housing starts being down 17% in the first half of 2011 as
compared to the prior year, Ply Gem's sales only showed a modest
2.2% decline, reflecting a significant new customer win and
further demonstrating our ability to gain profitable market
share."
A full-text copy of the press release announcing the financial
results is available for free at http://is.gd/TD1fpH
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/3YjvaP
About Ply Gem
Based in Cary, North Carolina, Ply Gem Holdings Inc. is a
diversified manufacturer of residential and commercial building
products, which are sold primarily in the United States and
Canada, and include a wide variety of products for the residential
and commercial construction, the do-it-yourself and the
professional remodeling and renovation markets.
In May 2010, Standard & Poor's Ratings Services raised its
(unsolicited) corporate credit rating on Ply Gem to 'B-' from
'CCC+'. "The ratings upgrade reflects our expectation that the
company's credit measures are likely to improve modestly over the
next several quarters to levels that we would consider more in
line with the 'B-' corporate credit rating," said Standard &
Poor's credit analyst Tobias Crabtree.
SGS International carries a 'B1' corporate family rating from
Moody's Investors Service.
PMI MORTGAGE: Moody's Lowers Insurance FSR to 'B3'
--------------------------------------------------
Moody's Investors Service has lowered the insurance financial
strength rating of PMI Mortgage Insurance Co. from B2 to B3, as
adverse loss trends continue to hurt PMI's capital adequacy and
regulatory capital position, potentially limiting its ability to
write new business. Moody's has also lowered the senior unsecured
debt ratings of The PMI Group, the holding company, from Caa2 to
Caa3 and its junior subordinated debt rating from Caa3 to Ca. The
outlook for all these ratings is negative.
The rating agency commented that continued weakness in portfolio
performance trends has meaningfully affected PMI's financial
results in the last few quarters. The large reserve charges taken
to cover losses also caused substantial deterioration in its
regulatory risk to capital metric, which is currently higher than
the 25:1 regulatory limit generally needed to write new business.
PMI's regulator, the Arizona Department of Insurance, has
indicated that the insurer is not required to obtain waivers to
write new business, but the regulator will continue to evaluate
PMI's financial condition. In addition, the Government Sponsored
Entities (GSEs), Fannie Mae and Freddie Mac, have authorized PMI
Mortgage Assurance Corporation, a subsidiary of PMI, to write new
business until December 31, 2011 in certain states where PMI is
unable to write business. To the extent that PMI's insurance
regulator or its primary counterparties, the GSEs, reconsider
their current position, PMI's new business opportunities could be
severely constrained.
Moody's added that modest improvements in delinquency trends have
not reversed the overall loss trend. PMI's primary delinquency
rate declined from 21.4% at year-end 2009 to 19.5% in the first
quarter of 2011, due to a slowdown in the rate of new
delinquencies. However, lower savings from rescissions offset a
portion of the expected benefit from loan modifications. Moody's
estimates that future benefit from rescissions will be much lower
than past performance and that workout and loan modification-
related cures could also decline materially unless significant new
programs are announced.
According to Moody's current estimates, PMI's insured portfolio at
year-end 2010 will produce aggregate present value losses of about
$5.3 billion. In comparison, PMI's capital resources on a runoff
basis, including future premium revenues related to the existing
book of business, are estimated to be $5.2 billion, resulting in a
loss coverage ratio slightly below one in the base case. Some
factors impacting the revised loss estimate include reduced loss
mitigation benefits and a lower expected benefit from captive
reinsurance. Widespread reinstatement of claims denied by PMI so
far could further pressure the capital adequacy ratio.
Given the uncertainty in the housing markets, and unclear ultimate
success of some loss mitigation strategies of the firm, Moody's
also estimated coverage outcomes in alternate loss development
scenarios. In the upside scenario, PMI's loss coverage ratio
improves to 1.13x and its coverage ratio declines to 0.77x in the
downside scenario.
Extensive delays in the foreclosure process have resulted in
lower-than-anticipated-claims payments for PMI. The proportion of
late stage delinquencies (loans that have been delinquent for over
12 months) in PMI's delinquent loan population increased from 34%
at year-end 2009 to over 50% at the end of the first quarter of
2011. Moody's notes that as the foreclosure issues are resolved,
claims payments will increase significantly, hurting liquidity and
reducing the firm's asset base and investment income.
As of 31st March 2011, the holding company had $71 million in
unencumbered assets. Maturity of the QBE note, a portion of the
proceeds related to the sale of PMI Australia to QBE Insurance in
2008, will add net resources of $183 million at the holding
company. According to Moody's, the company has sufficient funds to
meet near term debt maturities including $50 million outstanding
under its bank line due in October, and annual debt service and
operating expenses at the holding company through 2015. However,
ability to meet holding company debt service requirements and
expenses beyond that point is very weak given the low likelihood
of dividend flows from its main operating company.
The negative rating outlook reflects the risks inherent in the
firm's weak credit profile. It also reflects an increasingly
challenging operating environment for most mortgage insurers, with
continued weakness in the housing market and the overall US
economy and modest new production volume. An uncertain business
environment with yet-to-be-defined mortgage finance reform and an
increased likelihood of more selective regulatory and counterparty
forbearance are some of the other factors incorporated in the
negative outlook.
These ratings have been downgraded and now have negative outlooks:
PMI Mortgage Insurance Co. -- insurance financial strength rating
to B3 from B2;
The PMI Group, Inc -- senior unsecured debt to Caa3 from Caa2,
junior subordinated debt to Ca from Caa3, provisional rating on
senior unsecured debt tot (P) Caa3 from (P)Caa2, provisional
rating on subordinated debt to (P) Ca from (P)Caa3, and
provisional rating on preferred stock to (P)C from (P)Ca.
The last rating action on PMI occurred on April 27, 2010 when
Moody's changed the outlook from negative to positive.
The principal methodology used in rating PMI was "Moody's Global
Rating Methodology for the Mortgage Insurance Industry" published
in February 2007.
Information sources used to prepare the rating are: parties
involved in the ratings, public information, and confidential and
proprietary Moody's Investors Service information.
The PMI Group, Inc. (NYSE: PMI), headquartered in Walnut Creek,
CA, is the holding company for PMI Mortgage Insurance Co.,
including its wholly owned subsidiaries and affiliated companies
in Europe. The PMI Group, Inc. also owns a 50% interest in CMG
Mortgage Insurance Co.
Moody's adopts all necessary measures so that the information it
uses in assigning a rating is of sufficient quality and from
sources Moody's considers to be reliable including, when
appropriate, independent third-party sources. However, Moody's is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.
The date on which some ratings were first released goes back to a
time before Moody's ratings were fully digitized and accurate data
may not be available. Consequently, Moody's provides a date that
it believes is the most reliable and accurate based on the
information that is available to it.
POLYPORE INTERNATIONAL: S&P Raises CCR to 'B+'; Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating (CCR) on Charlotte, N.C.-based Polypore International Inc.
(Polypore) to 'B+' from 'B'. The outlook is stable. "At the same
time, we raised our issue-level rating on the company's senior
secured credit facilities to 'BB' (two notches above the CCR)
from 'BB-'. The recovery rating remains at '1', indicating our
expectation of very high (90% to 100%) recovery in a payment
default scenario. We also raised the rating on the company's
senior unsecured notes due 2017 to 'B' from 'B-'. The recovery
rating on the notes remains at '5', indicating our expectation
that lenders would receive modest (10% to 30%) recovery in a
payment default scenario," S&P stated.
"The upgrade on Polypore International Inc. reflects the company's
improved operating performance and credit measures, including
total adjusted debt to EBITDA at around 3.5x as of June 30, 2011,"
said Standard & Poor's credit analyst Peter Kelly. "We expect the
company's credit metrics to remain consistent with expectations
for the new rating and its liquidity to remain adequate," he
added.
The corporate credit rating reflects Polypore's aggressive
financial risk profile, characterized by high debt levels, but
also by its continued improvement in its credit metrics.
Polypore's leading position in the niche battery separator, health
care, and industrial filtration markets, and its good
profitability only partly offset this profile. "We expect that the
company's operating prospects will remain good in 2011, primarily
because of continued growth in demand in its end markets. However,
we expect free operating cash flow to suffer due to the company's
significant capital expenditures related to the expansion of the
capacity of its lithium battery separator business. Still the
company's cash balance and full availability under its revolver as
of June 30, 2011, support its adequate liquidity," S&P related.
POWER EFFICIENCY: Provides Updates to Shareholders
--------------------------------------------------
Steven Z. Strasser, chief executive officer of Power Efficiency
Corporation, sent a letter to stockholders providing the latest
updates of the Company. Mr. Strasser said the Company recently
released its second generation of E-Save MEC controllers for sale.
Mr. Strasser also announced the Company's plans to open and staff
an office in Mainland China and a number of high profile projects
in Hong Kong and Singapore. A full-text copy of the letter is
available for free at http://is.gd/69Eqfd
About Power Efficiency
Las Vegas, Nevada-based Power Efficiency Corporation (OTC: PEFF) -
- http://www.powerefficiency.com/-- is a clean technology
company focused on efficiency technologies for electric motors.
The Company's balance sheet at June 30, 2011, showed $3.41 million
in total assets, $1.22 million in total liabilities, and
$2.19 million total stockholders' equity.
As reported in the TCR on April 6, 2011, BDO USA, LLP, in Las
Vegas, Nevada, expressed substantial doubt about Power
Efficiency'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 and has generated negative
cash flows from operations.
Continuation of the Company as a going concern is dependent upon
achieving profitable operations or accessing sufficient operating
capital. Management's plans to achieve profitability include
developing new products, obtaining new customers and increasing
sales to existing customers. Management is seeking to raise
additional capital through equity issuance, debt financing or
other types of financing. However, there are no assurances that
sufficient capital will be raised. If the Company is unable to
obtain it on reasonable terms, it would be forced to restructure,
file for bankruptcy or significantly curtail operations.
PRECISION OPTICS: Maturity of $600,000 Notes Extended to Aug. 31
----------------------------------------------------------------
Precision Optics Corporation, Inc., on June 25, 2008, entered into
a purchase agreement, as amended on Dec. 11, 2008, with certain
accredited investors pursuant to which the Company sold an
aggregate of $600,000 of 10% Senior Secured Convertible Notes.
The Investors amended the Notes on several dates to extend the
"Stated Maturity Date" of the Notes. On July 27, 2011, the
Investors further amended the Notes to extend the "Stated Maturity
Date" to Aug. 31, 2011. The Investors also amended the Notes to
allow the Company to enter into the Agreement with Intuitive
Surgical.
APA with Intuitive
On July 28, 2011, the Company entered into an asset purchase
agreement with Intuitive Surgical Operations, Inc., in which the
Company received $2.5 million in connection with the sale of
certain intellectual property. Pursuant to the Agreement, the
Company assigned all of its currently issued and pending patents
to Intuitive Surgical.
As part of the Agreement, Intuitive Surgical agreed to grant the
Company a royalty-free, paid-up, worldwide, transferrable, subject
to certain limitations, non-exclusive license to directly and
indirectly make, use, develop, modify, improve, substitute,
iterate, combine, distribute, offer for sale, and sell, import and
export products outside the field of medical robotics throughout
countries worldwide. Intuitive Surgical also agreed to certain
restrictions on the granting of additional licenses outside the
field of medical robotics.
Intuitive Surgical also agreed to grant the Company a royalty-
free, paid-up, worldwide, transferrable, subject to certain
limitations, non-exclusive license to directly and indirectly
make, use, develop, modify, improve, substitute, iterate, combine,
distribute, offer for sale, and sell, import and export products
and services for in vitro procedures utilizing genomic or
proteomic lab-on-a-chip or other similar benchtop diagnoses, both
inside and outside the field of medical robotics throughout
countries worldwide.
On July 27, 2011, the Company entered into an amendment with
certain accredited investors to amend the Pledge and Security
Agreement, dated June 25, 2008, to allow the Company to enter into
the Agreement with Intuitive Surgical.
About Precision Optics
Headquartered in Gardner, Massachusetts, Precision Optics
Corporation, Inc., has been a developer and manufacturer of
advanced optical instruments since 1982. The Company designs and
produces high-quality micro-optics, medical instruments and other
advanced optical systems. The Company's medical instrumentation
line includes laparoscopes, arthroscopes and endocouplers and a
world-class product line of 3-D endoscopes for use in minimally
invasive surgical procedures.
The Company's balance sheet as of March 31, 2011, showed
$1.33 million in total assets, $2.27 million in total liabilities,
and a stockholders' deficit of $940,471.
As reported in the TCR on Sept. 27, 2010, Stowe & Degon LLC, in
Westborough, Mass., expressed substantial doubt about Precision
Optics' 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
net losses and negative cash flows from operations.
PRIVATE MEDIA: Posts EUR1.1 Million Net Loss in 2nd Quarter
-----------------------------------------------------------
Private Media Group, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of EUR1.1 million on net sales of
EUR4.7 million for the three months ended June 30, 2011, compared
with net income of $931,000 on net sales of EUR6.0 million for
the same period last year.
The Company reported a net loss of EUR2.1 million on net sales of
EUR10.1 million for the six months ended June 30, 2011, compared
with a net loss of EUR266,000 on net sales of EUR12.4 million for
the same period last year.
The Company's balance sheet at June 30, 2011, showed
EUR35.7 million in total assets, EUR13.5 million in total
liabilities, and stockholders' equity of EUR22.2 million.
As reported in the TCR on June 8, 2011, BDO Auditores, S.L., in
Barcelona, Spain, expressed substantial doubt about Private Media
Group's ability to continue as a going concern, following the
Company's 2010 results. The independent auditors noted that the
Company has not yet reestablished profitable operations, has
suffered recurring losses from operations over the past years, and
has a working capital deficit.
A copy of the Form 10-Q is available at http://is.gd/OlrzWk
Based in Barcelona, Spain, Private Media Group, Inc. (NASDAQ:
PRVT) -- http://www.prvt.com/-- was incorporated in the State of
Nevada. The Company provides adult media content for a wide range
of media platforms.
PROMETRIC INC: S&P Raises Corporate Credit Rating to 'BB'
---------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on Baltimore,
Md.-based Prometric Inc. to 'BB' from 'BB-'. The rating outlook is
stable.
"We have maintained our existing recovery rating on the company's
senior credit facility at '1', indicating our expectation of very
high (90% to 100%) recovery for lenders in the event of a payment
default. We raised the issue-level rating on this debt to 'BBB-',
two notches higher than the 'BB' corporate credit rating, in
accordance with our notching criteria for a '1' recovery rating,"
S&P related.
"We removed all ratings on the company from CreditWatch, where
they were placed with positive implications on May 13, 2011," S&P
said.
Prometric had total debt of $170 million at June 30, 2011.
"The rating on Prometric reflects our expectation that leverage
will remain low and operating performance will remain relatively
stable," said Standard & Poor's credit analyst Hal Diamond.
Standard & Poor's considers the company's business risk profile
fair, based on its consistent revenue and EBITDA growth and its
good position in the highly concentrated and competitive
standardized-test delivery market. "Low debt leverage, good margin
of compliance with financial covenants, and moderate financial
policies underpin our view that Prometric's financial risk profile
is significant. We believe these dynamics will result in the
company achieving low- to mid-single-digit percent revenue growth
on average, over the long term, with mid-single-digit percent
EBITDA growth and low debt leverage," S&P said.
Prometric is the larger of the two principal providers of
computer-based testing services. U.K.-based Pearson PLC owns
Prometric's main competitor, Pearson VUE. "Our assessment of a
fair business risk profile weighs the company's high client
renewal rates and revenue visibility from exclusive long-term
contracts that typically range from three to five years with
nearly all of its top clients. Prometric's owner, Educational
Testing Service (ETS), does not guarantee Prometric's debt, but we
impute modest credit support from ETS because we view Prometric as
having significant strategic importance to, and strong economic
ties with, ETS. Prometric exclusively administers ETS' technology-
delivered standardized tests under a long-term contract with
inflationary price increases, expiring in 2014. Still, Prometric's
major risks include the potential loss of clients owing to
aggressive competitive pricing, and pricing concessions that may
be needed to renew long-term contracts, which together could cause
margin contraction," S&P related.
"The stable rating outlook reflects Prometric's strong liquidity
position, low debt leverage, and our expectation of continued
healthy discretionary cash flow in 2011 and 2012," S&P added.
* BOND PRICING -- For Week From Aug. 15 - 19, 2011
--------------------------------------------------
Company Coupon Maturity Bid Price
------- ------ -------- ---------
AMBAC INC 9.375 8/1/2011 9.000
AMBAC INC 9.500 2/15/2021 13.500
AMBAC INC 7.500 5/1/2023 12.105
ACARS-GM 8.100 6/15/2024 1.000
AHERN RENTALS 9.250 8/15/2013 40.400
AMERICAN ORIENT 5.000 7/15/2015 51.526
BANK NEW ENGLAND 8.750 4/1/1999 14.000
BANK NEW ENGLAND 9.875 9/15/1999 13.500
BANKUNITED FINL 6.370 5/17/2012 7.100
BANKUNITED FINL 3.125 3/1/2034 7.100
C-CALL09/11 5.500 11/15/2029 100.000
CAPMARK FINL GRP 5.875 5/10/2012 53.500
CIRCUS & ELDORAD 10.125 3/1/2012 79.000
CQB-CALL08/11 8.875 12/1/2015 102.910
DECODE GENETICS 3.500 4/15/2011 0.500
DIRECTBUY HLDG 12.000 2/1/2017 32.750
DIRECTBUY HLDG 12.000 2/1/2017 41.000
BLOCKBUSTER INC 11.750 10/1/2014 3.750
DUNE ENERGY INC 10.500 6/1/2012 62.500
EDDIE BAUER HLDG 5.250 4/1/2014 5.625
ENERGY CONVERS 3.000 6/15/2013 44.250
EVERGREEN SOLAR 4.000 7/15/2013 3.625
EVERGREEN SOLAR 13.000 4/15/2015 58.250
EVERGREEN SOLAR 4.000 7/15/2020 13.000
FAIRPOINT COMMUN 13.125 4/1/2018 1.000
FAIRPOINT COMMUN 13.125 4/2/2018 1.250
GREAT ATLANTIC 9.125 12/15/2011 25.000
GREAT ATLA & PAC 6.750 12/15/2012 31.145
GLOBALSTAR INC 5.750 4/1/2028 59.750
HAWKER BEECHCRAF 8.500 4/1/2015 46.500
HAWKER BEECHCRAF 9.750 4/1/2017 37.000
HARRY & DAVID OP 9.000 3/1/2013 2.000
ELEC DATA SYSTEM 3.875 7/15/2023 90.500
HORIZON LINES 4.250 8/15/2012 54.800
LEHMAN BROS HLDG 6.625 1/18/2012 23.000
LEHMAN BROS HLDG 5.250 2/6/2012 23.000
LEHMAN BROS HLDG 6.000 7/19/2012 24.000
LEHMAN BROS HLDG 3.000 10/28/2012 25.125
LEHMAN BROS HLDG 3.000 11/17/2012 24.250
LEHMAN BROS HLDG 5.000 1/22/2013 25.750
LEHMAN BROS HLDG 5.625 1/24/2013 24.250
LEHMAN BROS HLDG 5.100 1/28/2013 25.300
LEHMAN BROS HLDG 5.000 2/11/2013 21.100
LEHMAN BROS HLDG 4.800 2/27/2013 25.500
LEHMAN BROS HLDG 4.700 3/6/2013 25.300
LEHMAN BROS HLDG 5.000 3/27/2013 25.000
LEHMAN BROS HLDG 5.750 5/17/2013 22.250
LEHMAN BROS HLDG 5.250 1/30/2014 24.250
LEHMAN BROS HLDG 4.800 3/13/2014 23.000
LEHMAN BROS HLDG 5.000 8/3/2014 25.300
LEHMAN BROS HLDG 6.200 9/26/2014 24.500
LEHMAN BROS HLDG 5.150 2/4/2015 25.000
LEHMAN BROS HLDG 5.250 2/11/2015 25.250
LEHMAN BROS HLDG 8.800 3/1/2015 24.500
LEHMAN BROS HLDG 7.000 6/26/2015 23.500
LEHMAN BROS HLDG 8.500 8/1/2015 23.000
LEHMAN BROS HLDG 5.000 8/5/2015 25.300
LEHMAN BROS HLDG 7.000 12/18/2015 25.625
LEHMAN BROS HLDG 5.500 4/4/2016 23.000
LEHMAN BROS HLDG 5.875 11/15/2017 23.000
LEHMAN BROS HLDG 6.875 5/2/2018 24.625
LEHMAN BROS HLDG 8.050 1/15/2019 23.833
LEHMAN BROS HLDG 11.000 6/22/2022 25.300
LEHMAN BROS HLDG 11.000 7/18/2022 24.500
LEHMAN BROS HLDG 11.500 9/26/2022 21.500
LEHMAN BROS HLDG 9.500 1/30/2023 22.625
LEHMAN BROS HLDG 9.500 2/27/2023 21.250
LEHMAN BROS HLDG 9.000 3/7/2023 19.775
LEHMAN BROS HLDG 10.000 3/13/2023 25.125
LEHMAN BROS HLDG 18.000 7/14/2023 25.750
LEHMAN BROS HLDG 10.375 5/24/2024 25.300
LEHMAN BROS INC 7.500 8/1/2026 15.000
LEHMAN BROS HLDG 11.000 3/17/2028 25.497
LIFEPT VILGE 8.500 3/19/2013 49.500
LOCAL INSIGHT 11.000 12/1/2017 2.250
LOCO-CALL08/11 11.750 12/1/2012 104.500
LOCO-CALL08/11 11.750 11/15/2013 99.400
MAJESTIC STAR 9.750 1/15/2011 18.000
MCMORAN EXPLORAT 5.250 10/6/2011 94.932
MCMORAN EXPLORAT 5.250 10/6/2011 101.000
MGIC INVT CORP 5.625 9/15/2011 99.500
NATRC-CALL08/11 9.250 3/1/2012 98.000
NEBRASKA BOOK CO 8.625 3/15/2012 49.500
NBC ACQ CORP 11.000 3/15/2013 8.640
NEWPAGE CORP 10.000 5/1/2012 11.500
NEWPAGE CORP 12.000 5/1/2013 2.500
RESTAURANT CO 10.000 10/1/2013 10.000
PMI CAPITAL I 8.309 2/1/2027 9.000
RIVER ROCK ENT 9.750 11/1/2011 80.900
RASER TECH INC 8.000 4/1/2013 29.760
SBARRO INC 10.375 2/1/2015 9.500
SPHERIS INC 11.000 12/15/2012 1.875
THORNBURG MTG 8.000 5/15/2013 5.250
TOUSA INC 9.000 7/1/2010 15.000
TIMES MIRROR CO 7.250 3/1/2013 44.900
MOHEGAN TRIBAL 8.000 4/1/2012 77.700
TRICO MARINE SER 8.125 2/1/2013 4.000
TRICO MARINE 3.000 1/15/2027 1.250
TEXAS COMP/TCEH 7.000 3/15/2013 29.000
TEXAS COMP/TCEH 10.250 11/1/2015 37.625
UNIVERSAL CORP 5.000 9/1/2011 99.000
VIRGIN RIVER CAS 9.000 1/15/2012 51.000
WESCO INTL 1.750 11/15/2026 89.000
WCI COMMUNITIES 4.000 8/5/2023 1.570
WINDERMERE BAPT 7.700 5/15/2012 18.000
WILLIAM LYONS 7.625 12/15/2012 29.000
WILLIAM LYON INC 10.750 4/1/2013 29.000
WILLIAM LYON INC 7.500 2/15/2014 20.000
WASH MUT BANK FA 5.125 1/15/2015 0.200
*********
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, 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.
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