/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110919.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, September 19, 2011, Vol. 15, No. 260 Headlines AE BIOFUELS: AE Keyes Inks Waiver to Note Pact with Third Eye AIRPLAY DIRECT: Petitioning Creditors Seek Trustee or Examiner ALEXANDER GALLO: To Reject 11 Unexpired Real Property Leases ALEXANDER GALLO: Seeks More Time to File Schedules and Statement ALEXANDER GALLO: To Assume "Preferred Provider Network" Contracts ALLEN FAMILY: Committee Seeks to Retain AEI as Appraisers AMERICAN DEFENSE: Reports $1.8 Million Second Quarter Net Loss AMT LLC: Files Omega-Funded Reorganization Plan APOLLO MEDICAL: Incurs $122,800 Net Loss in July 31 Quarter ARK DEVELOPMENT: Gets Final OK to Access Midland's Cash Collateral ARK DEVELOPMENT: Withdraws Motion for Withdrawal as Counsel AUSTRALIA PROPERTY: Case Summary & 5 Largest Unsecured Creditors AVION POINT: Prepares to Sell, Opposes Rubright Lift Stay Plea AVSTAR AVIATION: Posts $20,200 Net Loss in Second Quarter BANK UNITED: U.S. Bank Reserves Right to Object to Panel's Plan BIG VIEW: Voluntary Chapter 11 Case Summary BIOZONE PHARMACEUTICALS: Posts $568,000 Net Loss in Second Quarter BISCAYNE PARK: Cardenas Seeks Dismissal of Chapter 11 Case BLUEKNIGHT ENERGY: Unitholders OK Amendment to Partnership Pact BLUEKNIGHT ENERGY: Plans to Launch Rights Offering BRAINY BRANDS: Incurs $16.5 Million Second Quarter Net Loss B.R. SUMMERLIN: Gibbs Giden to be Paid From Operating Revenues BROTHER SONNY: Seeks to Hire Merrill and Green as Special Counsel BROTHER SONNY: Seeks to Hire Needham Realty as Real Estate Broker BUFFALO GULF: Moody's Assigns 'Ba1' Rating to Sr. Sec. Term Loan BURGER KING: Bank Debt Trades at 4% Off in Secondary Market BURLINGTON COAT: Bank Debt Trades at 4% Off in Secondary Market CALYPTE BIOMEDICAL: Reports $101,000 Net Income in March 31 Qtr. CAPITOL BANCORP: Names Nicholas Hahn as Interim CFO CHINA CGAME: Posts $3.4 Million Net Loss in Second Quarter CHINA VILLAGE: Cathay Asks Court to Prohibit Use of Collateral CHINA VILLAGE: Sues Cathay, DOES to Invalidate Liens CHINA VILLAGE: Cathay Bank Objects to Adequacy of Disclosures CKX INC: Moody's Withdraws 'B2' CFR as Loan Cancelled CLAIRE'S STORES: Bank Debt Trades at 14% Off in Secondary Market CLIVER DEVELOPMENT: Case Summary & 7 Largest Unsecured Creditors CN DRAGON: Posts $20,000 Net Loss in June 30 Quarter CONSOLIDATION SERVICES: Posts $721,000 Net Loss in Second Quarter CRESTVIEW OPEN: Case Summary & 15 Largest Unsecured Creditors H & A: Case Summary & Largest Unsecured Creditor CUMULUS MEDIA: FDIC Approves Pending Merger with Citadel CYBERDEFENDER CORP: Posts $6.6 Million Net Loss in Second Quarter DAIS ANALYTIC: Has New Three-Year Contract with CEO DBSD NORTH AMERICA: Sprint Seeks $110 Million Reimbursement DENNY'S CORP: Board Appoints George Haywood as Director DENNY'S CORP: S&P Affirms B+ Corp. Credit Rating; Outlook Stable DLH MASTER: Committee Announces Departure of Barrier Officer DOT VN: Delays Filing of July 31 Form 10-Q EAST HARLEM: Case Summary & 5 Largest Unsecured Creditors EL PASO PIPELINE: S&P Gives 'BB' to $500-Mil. Sr. Unsec. Notes ENDURANCE INT'L: Moody's Assigns 'B2' CFR; Outlook Stable EPICEPT CORP: Moves Listing from Nasdaq to OTCQX EVERGREEN ENERGY: Completes Penrhyn Coal Testing Using K-Fuel EVERGREEN SOLAR: Sues Unsecured Bondholders to Reclaim $4MM FOSTER CONDOMINIUM: Voluntary Chapter 11 Case Summary FULL CIRCLE: Can Access $1.25 Million DIP Facility to Buy Cows FULL CIRCLE: Motion to Buy $900,000 in Livestock Denied GAMETECH INT'L: Delays Filing of Quarterly Report on Form 10-Q GAS CITY: Hearing on Case Dismissal Plea, et al., Set for Sept. 21 GAS CITY: Trustee OK'd to Execute Deeds in Lieu of Foreclosure GATEWAY METRO: Seeks to Use Cash Collateral, Obtain DIP Loan GATEWAY METRO: Wants Bar Date, Sees Plan "Within First Few Weeks" GELT PROPERTIES: Proposes Cohen for Suits vs. Steven & Tracy GIBSON GUITAR: Moody's Says Govt. Raid No Impact on B3 Corporate GLOBAL INDUSTRIES: Asks Supreme Court to Weigh Ch. 11 Challenge GOLD HILL: Has Go Signal to Solicit Acceptances for Plan GREENBRIER HOSPITALITY: Case Summary & 20 Largest Unsec. Creditors GSI HOLDING: Moody's Hikes Corporate to 'B2'; Outlook Stable HARBOUR EAST: Escrow Agent Directed to Turnover Defaulted Deposits HARBOUR EAST: Amended Plan Outline Hearing Set for Sept. 26 HARBOUR EAST: Has Temporary Access to Rental Income Until Oct. 31 HAWAII MEDICAL: Committee Seeks Approval to Retain A&M HealthCare HERCULES OFFSHORE: Bank Debt Trades at 4% Off in Secondary Market HES CONSTRUCTION: Case Summary & 7 Largest Unsecured Creditors HILEX POLY: Moody's Affirms B3 CFR; Outlook Revised to Negative HORIZON LINES: S&P Raises Corp. Credit Rating to 'CC' From 'SD' INNKEEPERS USA: In Deal Talks With Five Mile & Lehman Unit IGLESIA MISIONERA: Voluntary Chapter 11 Case Summary INOVA TECHNOLOGY: Delays Filing of Quarterly Report on Form 10-Q INTELLICELL BIOSCIENCES: Posts $12 Million 2nd Quarter Net Loss INTERSIL CORPORATION: Moody's Affirms Ba2 CFR; Outlook Stable IPREO HOLDINGS: S&P Assigns 'B' Corporate Credit Rating IT'S GREEK TO ME: Case Summary & 20 Largest Unsecured Creditors IVAX DIAGNOSTICS: Posts $767,400 Net Loss in Second Quarter JAM-TY INC: Case Summary & 10 Largest Unsecured Creditors JBI INC: Posts $6.5 Million Net Loss in Second Quarter JOHN IRWIN: Family Members May Be Sued by Joseph Forte Receiver JJMM INTERNATIONAL: Voluntary Chapter 11 Case Summary K-V PHARMACEUTICAL: Seven Directors Elected at Annual Meeting KITTS DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors KTLA LLC: Court Denies Secured Creditors' Case Dismissal Motion LAGOON ROAD: Case Summary & 13 Largest Unsecured Creditors LAS VEGAS HILTON: Lenders Seek Receivership for Firm LEO MOTORS: Posts $227,300 Net Loss in Second Quarter LINDEN PONDS: Files Schedules of Assets and Liabilities LOAN EXCHANGE: Case Summary & 14 Largest Unsecured Creditors LOCAL INSIGHT: Seeks Nod of Transition Agreement Term Sheet LOS GATOS: Hearing on Exclusivity Extensions Slated for Oct. 21 MADISON 92ND: Judge Taps Examiner to Launch Investigation in Case MADISON HOTEL: Plan Disclosures Hearing for Sept. 26 MANISTIQUE PAPERS: To Employ Vector Consulting as Fin'l Advisor MARISCOS ENSENADA: Case Summary & 8 Largest Unsecured Creditors MARIZONA INC: Case Summary & Largest Unsecured Creditor MEDICURE INC: Files Copy of Birmingham Debt Settlement Agreement MERRITT AND WALDING: Has Interim OK to Use Bryant Cash Collateral MERRITT AND WALDING: Cash Collateral Deal with Merchants Bank OK'd MGDC DEVELOPMENT: Case Summary & Largest Unsecured Creditor MOUNTAIN NATIONAL: Posts $21.8 Million Net Loss in Second Quarter N.A. PETROLEUM: Judge Approves $98 Million Ch. 11 Settlement NAVIGATOR HOLDINGS: Completes $40MM Sale of Loan Portfolio NEBRASKA BOOK: Wants to Hire Deloitte Tax as Tax Services Provider NET TALK.COM: Leo Manzewitsch Resigns as CTO and Director NEXAIRA WIRELESS: Delays Filing of Quarterly Report on Form 10-Q NORTEL NETWORKS: Withdraws Alissa T. Gazze as Bankruptcy Counsel NORTHERN BERKSHIRE: Has Interim Access to WF Cash Collateral NORTHERN BERKSHIRE: Hearing on Disclosure Statement on Oct. 6 NUVILEX INC: Delays Filing of Quarterly Report on Form 10-Q NXT NUTRITIONALS: Reports $1 Million Second Quarter Net Income OMNICARE INC: S&P Keeps 'BB' Rating on 7.75% Subordinated Notes OPTIONS MEDIA: Posts $11.8 Million Net Loss in Second Quarter OVERLAND STORAGE: Incurs $14.5 Million Net Loss in Fiscal 2011 PARADISE INVESTMENT: Case Summary & 16 Largest Unsecured Creditors PERFECTENERGY INT'L: Has $701,300 Loss in 2 Months Ended June 30 PONCE DE LEON: Case Summary & 15 Largest Unsecured Creditors QUANTUM FUEL: Incurs $7.8 Million Net Loss in Q1 Fiscal 2012 RAHWAY HOSPITAL: Moody's Affirms Ba3 Rating on Outstanding Bonds RASER TECHNOLOGIES: Emerges from Bankruptcy R.E. LOANS: Case Summary & 20 Largest Unsecured Creditors REALOGY CORP: 2013 Debt Trades at 9% Off in Secondary Market REALOGY CORP: 2016 Debt Trades at 18% Off in Secondary Market RENAISSANCE SURGICAL: Cash Use Hearing Continued Until Sept. 22 RENAISSANCE SURGICAL: Court OKs Seelig as Patient Care Ombudsman RIO RANCHO: Names Thomas Kent as New Attorney ROSSCO HOLDINGS: Plan Outline Hearing Continued Until Jan. 19 RQB RESORT: Goldman Sachs Supports Plan Exclusivity Termination SEARCHMEDIA HOLDINGS: Five Directors Elected at Annual Meeting SHADY ACRES: Modified Plan of Reorganization Confirmed SHEA HOMES: S&P Affirms 'B' Corp. Credit Rating; Outlook Stable SHENGDATECH INC: CRO and Members OK'd to Act on Debtor's Behalf SHENGDATECH INC: Taps Skadden Arps & Three Other Firms SK FOODS: Dist. Ct. to Consider Whether to Hear Trustee's Suit SOLYNDRA LLC: U.S. Treasury Probes $535-Mil. Loan SOLYNDRA LLC: Can Pay Prepetition Claims of Service Providers SOTERA DEFENSE: Moody's Assigns B3 Rating to $35-Mil. Term Loan SOUTHERN STAR: Moody's Raises Senior Unsecured Rating to 'Ba1' SPARTA COMMERCIAL: Delays Filing of Quarterly Report on Form 10-Q SPOT MOBILE: Delays Filing of Quarterly Report on Form 10-Q SSI GROUP: To Sell Restaurant Chain in Bankruptcy SSI GROUP: Case Summary & 20 Largest Unsecured Creditors SUSPECT DETECTION: Posts $1.5 Million Net Loss in Second Quarter TERRESTAR CORPORATION: Objects to Appointment of Examiner TEXAS INDUSTRIES: Plant Gets "Imminent Danger" Order TEXTRON INC: Moody's Keeps 'Ba1' Junior Subordinate Ratings TOPSPIN MEDICAL: Posts NIS687,000 Net Loss in Second Quarter TOWNSEND CORP: Mulls Options, Including Sale; Seeks Cash Use TOWNSENDS INC: Court to Rule on Conversion Plea TRAVELPORT INC: Bank Debt Trades at 10% Off in Secondary Market TRAVELPORT LLC: S&P Lowers Corporate Credit Rating to 'CCC' TRENTON LAND: Wants Bankruptcy Court to Dismiss Chapter 11 Case TRIBUNE CO: Bank Debt Trades at 42% Off in Secondary Market TROY BUILDERS: Case Summary & 2 Largest Unsecured Creditors TRUMAN LANDSCAPER: Involuntary Chapter 11 Case Summary TURBULENCE, LLC: Case Summary & Largest Unsecured Creditor TXU CORP: Bank Debt Trades at 28% Off in Secondary Market UNI-PIXEL INC: To Offer 1.3MM Common Shares Under Incentive Plan U.S. EAGLE: Proposes Grubb & Ellis as Real Estate Broker VISUALANT INC: Extends Closing Date of Eagle LOI to Dec. 31 WASHINGTON MUTUAL: Interest Rate Ruling May Impact Other Cases WATER STREET: To Sell Mansfield Property to Pay Creditors in Full WEST END: Hearing on Adequacy of Plan Outline Scheduled for Nov. 1 WEST END: Court OKs Mark Radke as Independent Monitor WESTERN COMMUNICATIONS: U.S. Trustee Unable to Form Committee WIKILOAN INC: Delays Filing of Quarterly Report on Form 10-Q WOODLAND ESTATES: Case Summary & 3 Largest Unsecured Creditors YRC WORLDWIDE: Stockholders OK Agreement and Plan of Merger YRC WORLDWIDE: Receives Add'l Non-Compliance Notice from NASDAQ ZOO ENTERTAINMENT: Posts $10.1 Million Net Loss in Second Quarter ZOGENIX INC: Amends 30 Million Common Shares Offering * BOND PRICING -- For Week From Sept. 12 - 16, 2011 ********* AE BIOFUELS: AE Keyes Inks Waiver to Note Pact with Third Eye ------------------------------------------------------------- AE Advanced Fuels Keyes, Inc., a subsidiary of AE Biofuels, Inc. entered into a Limited Waiver and Amendment No. 3 to the Note Purchase Agreement with Third Eye Capital Corporation, as agent. Pursuant to the Third Amendment, AE Keyes agreed to pay Third Eye a Minimum Monthly Base Principal Payment equal to the greater of (i) $200,000 payable in four weekly installments of $50,000 with the first installment due on Sept. 2, 2011, (ii) a monthly payment of $0.05 per gallon of ethanol produced from its Keyes Plant; and (iii) 50% of its monthly Free Cash Flow. In return for a fee of $50,000 paid in cash, Third Eye waived AE Keyes' required scheduled payments of principal due and owning on July 1, 2011, and Sept. 1, 2011, and required Minimum Quarterly Free Cash Flow Covenants for the quarter ended June 30, 2011. In return for the issuance of 123,457 shares of common stock of AE Biofuels, Inc., Third Eye waived AE Keyes' requirement to receive certain proceeds from the California Energy Commission. As of the effective date of the Third Amendment, the principal balance and all accrued and unpaid interest and fees outstanding on the Note was $7,081,528. About AE Biofuels AE Biofuels, Inc. (OTC BB: AEBF) -- http://www.aebiofuels.com/-- is a biofuels company based in Cupertino, California, developing sustainable solutions to address the world's renewable energy needs. The Company is commercializing its patent-pending next- generation cellulosic ethanol technology that enables the production of biofuels from both non-food and traditional feedstocks. Its wholly-owned Universal Biofuels subsidiary built and operates a nameplate 50 million gallon per year biodiesel production facility on the east coast of India. The Company reported a net loss of $1.72 million on $1.59 million of sales for the three months ended Sept. 30, 2010, compared with a net loss of $3.78 million on $4.05 million of sales for the same period a year earlier. BDO Seidman, LLP, in San Jose, Calif., expressed substantial doubt about AE Biofuels' ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has incurred recurring losses, and has a working capital deficit and total stockholders' deficit as of December 31, 2009. The Company's balance sheet at Sept. 30, 2010, showed $20.23 million in total assets, $29.03 million in total liabilities, all current, and a stockholders' deficit of $8.80 million. AIRPLAY DIRECT: Petitioning Creditors Seek Trustee or Examiner -------------------------------------------------------------- Creditors who signed an involuntary Chapter 11 petition for AirPlay Direct LLC, namely Clif Doyal, Scott Welch, Raleigh Squires, and Sussman & Associates, P.C., are asking the Bankruptcy Court to appoint a chapter 11 trustee; or in the alternative, an examiner for AirPlay Direct. The Petitioning Creditors said they have no confidence in AirPlay's ability to manage its affairs. They seek (a) the appointment of a Chapter 11 trustee to take control of AirPlay's operations for the benefit of the estate and enjoin current management from interfering with such operations, or in the alternative, or (b) the appointment of an examiner to review, among other things, (i) AirPlay's historical and current financial performance, (ii) the management of AirPlay leading up to and in response to the Involuntary Petition filed in the Chapter 11 case, and (iii) whether further action is warranted based on the results of such investigation. The Petitioning Creditors are also asking the Court to act on their request immediately. "Waiting for resolution of the involuntary petition or normal notice and timing requirements would delay the installation of a manager with the estate's best interest and will threaten the viability of AirPlay as a going concern," the Petitioning Creditors said in court filings. The Petitioning Creditors revealed that AirPlay's principal, Robert Weingartz has made multiple threatening remarks to some of the Petitioning Creditors regarding the company and has specifically made reference to sabotaging AirPlay if steps were taken to remove him from power. The Petitioning Creditors said Mr. Weingartz has shown an inability to manage AirPlay in any way except that benefits himself. For instance, Mr. Weingartz puts his personal well-being above that of the Alleged Debtor despite his fiduciary duties: on May 30, 2011, Mr. Weingartz requested that Clif Doyal, Executive VP of AirPlay at the time, empty AirPlay's bank accounts because of Mr. Weingartz's personal needs despite looming threats of AirPlay's Web site, its life blood, of being disconnected for failure to pay hosting fees. This request was reiterated even after Mr. Doyal's clear indication of the business needs for the cash. In addition, AirPlay's workforce has shrunk to almost nothing in the past 12 months, as six management-level employees or advisory board members have left the company. These departures are due in no small part to Mr. Weingartz's failures as manager. The Petitioning Creditors said AirPlay is behind on general unsecured and trade vendor claims to parties such as the Web hosting provider, the Web site development service provider, the web marketing provider, attorneys, and the Web site platform developers, with many obligations being overdue since at least Nov. 30, 2010. AirPlay also is allegedly not current with its strategic partners with which it has revenue sharing arrangements. The filings, according to the Petitioning Creditors, also indicate that AirPlay's most recent available financial statements demonstrate negative net income for the months January and February 2011, a negative interest-holder equity as of such months, and an asset value of roughly $181,000 (without deduction for accumulated depreciation) compared to a current liability amount of roughly $217,000. The financial statements for the year ending Dec. 31, 2010, also show a negative operating income of roughly $23,000 and similar asset and current liability amounts. In the past 12 months, AirPlay has lost at least six key employees or members of the board of managers as a direct result of not being paid or their respective inability to succeed in their roles because of Mr. Weingartz's management. About AirPlay Based in Old Hickory, Tenn., AirPlay Direct, LLC, owns and operates a subscription music promotion service, run primarily through a Web site. Artists, radio programmers, and record labels are all subscribers to the service, which works to connect creative artists with potential outlets for distribution of their music. AirPlay's primary value is the subscriber list and the software platform utilized in connecting subscribers. AirPlay has 30,000 subscribers to the Web site, who pay a monthly fee to use the services. Its web platform is currently at or near its capacity in light of the number of subscribers. Clif Doyal, Scott Welch, Raleigh Squires, and Sussman & Associates, P.C., owed $218,476 in the aggregate, filed an involuntary Chapter 11 petition against AirPlay (Bankr. M.D. Tenn. Case No. 11-08916) on Sept. 6, 2011. Mr. Welch served as president and member of advisory board. Mr. Doyal served as executive vice president and editor of AirPlay's promotional magazine, Direct Buzz. Mr. Squires acted as operations manager. They resigned prepetition. Sussman & Associates provided accounting services. Judge George C. Paine II presides over the case. Robert J. Welhoelter, Esq. -- rjwelho@gmail.com -- in Nashville, represents the Petitioning Creditors. ALEXANDER GALLO: To Reject 11 Unexpired Real Property Leases ------------------------------------------------------------ Alexander Gallo Holdings LLC and certain of its subsidiaries and affiliates filed a first omnibus motion to reject 11 unexpired nonresidential real property leases, effective as of the Petition Date. The Debtors no longer occupy the leased premises with respect to the Leases, and said continued compliance with the terms of the Leases and any accompanying agreements would be burdensome and would provide no corresponding benefit to the Debtors or the stakeholders in these chapter 11 cases. Rejection of the Leases and Termination Agreements will maximize the value of the Debtors' estates and eliminate operating losses associated therewith. As of the Petition Date, the Debtors may continue to be obligated to pay rent or other amounts under the Leases and Termination Agreements even though they have ceased operations at the leased premises. By rejecting the Leases and Termination Agreements, the Debtors believe they will achieve significant cost savings for the estates. Therefore, immediate rejection of the Leases and Termination Agreements will prevent the estates from potentially incurring unnecessary administrative expenses. The affected landlords include: -- 110 Gulf Associates; -- 520 Capitol Mall, Inc.; -- Atlanta Sand & Supply Company; -- HF Lakeside II, LLC; -- Hines Riverfront Plaza, L.P.; -- Live Nation Worldwide, Inc.; -- M. Rapaport Co., Inc.; -- Oasis 100 Franklin Street LLC; -- Phoenix Plaza Pt., LLC; -- PRMD, LLC; and -- Vreeland Spvef Venture, LLC About Alexander Gallo Holdings Marietta, Georgia-based Alexander Gallo Holdings LLC -- http://www.alexandergalloholdings.com-- is the largest full service, IT-enabled court reporting and litigation support services company in the United States. AGH offers court reporting, litigation support, trial software and other similar services and has the only true national footprint in its market, with roughly 55 offices located throughout the United States, and a preferred provider network which serves as an extension of Alexander Gallo's geographic reach. Founded in 1999 by Alexander J. Gallo, a former court reporter, AGH has made 18 acquisitions since 2003. Mr. Gallo has remained as CEO. AGH, along with affiliates, filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-14220) on Sept. 7, 2011. Alexander Gallo will sell the business via 11 U.S.C. Sec. 363 to Bayside Capital Inc., which had acquired $22 million in second- lien debt. The price wasn't disclosed. Alexander Gallo disclosed assets of $208 million and debt totaling $258 million as of June 30, 2011. Liabilities include $47 million on a first-lien revolving credit and term loan where Wells Fargo Bank NA is agent. In addition to the second-lien debt held by Bayside, there is $33 million in junior unsecured subordinated notes owing to Harvest Equity Partners LLC plus another $148 million in junior unsecured subordinated notes owing to insider Gallo Holdings LLC. Bayside will also provide $20 million in financing for the Chapter 11 effort. The new loan will have a first priority lien on unencumbered assets and a lien behind the first-lien debt. Bankruptcy Judge Allan J. Gropper presides over the case. Thomas R. Califano, Esq., at Jeremy R. Johnson, Esq., at Daniel G. Egan, Esq., at DLA Piper LLP (US), serve as the Debtors' general counsel. Squire, Sanders & Demsey (US) LLP serves as the Debtor's corporate counsel. The Debtors' financial advisor is Gordian Group, LLC. Marc L. Pfefferle, a partner at Carl Marks Advisory Group LLC, serves as the Debtors' chief restructuring advisor. Kurtzman Carson Consultants LLC serves as the Debtor's claims agent. ALEXANDER GALLO: Seeks More Time to File Schedules and Statement ---------------------------------------------------------------- Alexander Gallo Holdings LLC and certain of its subsidiaries and affiliates seek an extension of the time to file their schedules of assets and liabilities, schedules of executory contracts and unexpired leases, and statements of financial affairs. The Debtors want the filing deadline extended to and including the date that is the 45th day after the Petition Date, without prejudice to the Debtors' right to request additional time should it become necessary. Pursuant to Sec. 521 of the Bankruptcy Code and F.R.B.P. Rule 1007, the Debtors are required to file their Schedules and Statements within 14 days after the Petition Date. Bankruptcy Rule 1007 provides that an extension of time for cause shown. However, in light of the competing demands upon the Debtors' employees and professionals to assist in efforts to stabilize business operations during the initial postpetition period, the Debtors will not be able to properly and accurately complete the Schedules and Statements within the required 14 day time period. About Alexander Gallo Holdings Marietta, Georgia-based Alexander Gallo Holdings LLC -- http://www.alexandergalloholdings.com-- is the largest full service, IT-enabled court reporting and litigation support services company in the United States. AGH offers court reporting, litigation support, trial software and other similar services and has the only true national footprint in its market, with roughly 55 offices located throughout the United States, and a preferred provider network which serves as an extension of Alexander Gallo's geographic reach. Founded in 1999 by Alexander J. Gallo, a former court reporter, AGH has made 18 acquisitions since 2003. Mr. Gallo has remained as CEO. AGH, along with affiliates, filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-14220) on Sept. 7, 2011. Alexander Gallo will sell the business via 11 U.S.C. Sec. 363 to Bayside Capital Inc., which had acquired $22 million in second- lien debt. The price wasn't disclosed. Alexander Gallo disclosed assets of $208 million and debt totaling $258 million as of June 30, 2011. Liabilities include $47 million on a first-lien revolving credit and term loan where Wells Fargo Bank NA is agent. In addition to the second-lien debt held by Bayside, there is $33 million in junior unsecured subordinated notes owing to Harvest Equity Partners LLC plus another $148 million in junior unsecured subordinated notes owing to insider Gallo Holdings LLC. Bayside will also provide $20 million in financing for the Chapter 11 effort. The new loan will have a first priority lien on unencumbered assets and a lien behind the first-lien debt. Bankruptcy Judge Allan J. Gropper presides over the case. Thomas R. Califano, Esq., at Jeremy R. Johnson, Esq., at Daniel G. Egan, Esq., at DLA Piper LLP (US), serve as the Debtors' general counsel. Squire, Sanders & Demsey (US) LLP serves as the Debtor's corporate counsel. The Debtors' financial advisor is Gordian Group, LLC. Marc L. Pfefferle, a partner at Carl Marks Advisory Group LLC, serves as the Debtors' chief restructuring advisor. Kurtzman Carson Consultants LLC serves as the Debtor's claims agent. ALEXANDER GALLO: To Assume "Preferred Provider Network" Contracts ----------------------------------------------------------------- Alexander Gallo Holdings LLC and certain of its subsidiaries and affiliates seek the Bankruptcy Court's permission to assume certain executory contracts with providers of key services for the Debtors, entered into by and between one or more of the Debtors and the various service providers. Prior to the Petition Date, the Debtors entered into contracts with various members of the Debtors' "Preferred Provider Network," which consists of companies that provide essential court reporting, litigation support, and other similar services to the Debtors and who cannot be replaced. The Debtors entered into contracts with roughly 113 PPN Members setting forth the terms and conditions of the parties' working relationship, including payment terms. As of the Petition Date, an aggregate amount of roughly $1,162,439 is due and owing to the PPN Members pursuant to the PPN Agreements. The Debtors said the PPN Members, together with the Debtors' employees and independent contractors, are the lifeblood of the Debtors' business, without whom the Debtors would not be able to operate. Services provided by the PPN Members include, among other things, court reporting services, videography services, interpreting services, scoping and proofreading services. The PPN Members generally provide services in territories where the Debtors do not have locations, employees or independent contractors, and collectively give the Debtors the ability to provide national coverage in the most cost efficient manner. This national coverage is essential to the Debtors' ability to acquire and to service clients who are an essential part of the Debtors' business. Therefore, these services are absolutely essential to the Debtors' ability to reorganize. Simply put, without the PPN Members, the Debtors' business would not be able to survive. The Debtors said any disruption to their relationship with these members would be disastrous to the Debtors' business and would cause irreparable harm to the Debtors' reputation due to the resulting inability to meet customer needs. In addition, loss of PPN Members would significantly jeopardize the Debtors' ability to reorganize. About Alexander Gallo Holdings Marietta, Georgia-based Alexander Gallo Holdings LLC -- http://www.alexandergalloholdings.com-- is the largest full service, IT-enabled court reporting and litigation support services company in the United States. AGH offers court reporting, litigation support, trial software and other similar services and has the only true national footprint in its market, with roughly 55 offices located throughout the United States, and a preferred provider network which serves as an extension of Alexander Gallo's geographic reach. Founded in 1999 by Alexander J. Gallo, a former court reporter, AGH has made 18 acquisitions since 2003. Mr. Gallo has remained as CEO. AGH, along with affiliates, filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-14220) on Sept. 7, 2011. Alexander Gallo will sell the business via 11 U.S.C. Sec. 363 to Bayside Capital Inc., which had acquired $22 million in second- lien debt. The price wasn't disclosed. Alexander Gallo disclosed assets of $208 million and debt totaling $258 million as of June 30, 2011. Liabilities include $47 million on a first-lien revolving credit and term loan where Wells Fargo Bank NA is agent. In addition to the second-lien debt held by Bayside, there is $33 million in junior unsecured subordinated notes owing to Harvest Equity Partners LLC plus another $148 million in junior unsecured subordinated notes owing to insider Gallo Holdings LLC. Bayside will also provide $20 million in financing for the Chapter 11 effort. The new loan will have a first priority lien on unencumbered assets and a lien behind the first-lien debt. Bankruptcy Judge Allan J. Gropper presides over the case. Thomas R. Califano, Esq., at Jeremy R. Johnson, Esq., at Daniel G. Egan, Esq., at DLA Piper LLP (US), serve as the Debtors' general counsel. Squire, Sanders & Demsey (US) LLP serves as the Debtor's corporate counsel. The Debtors' financial advisor is Gordian Group, LLC. Marc L. Pfefferle, a partner at Carl Marks Advisory Group LLC, serves as the Debtors' chief restructuring advisor. Kurtzman Carson Consultants LLC serves as the Debtor's claims agent. ALLEN FAMILY: Committee Seeks to Retain AEI as Appraisers --------------------------------------------------------- The Official Committee of Unsecured Creditors of Allen Family Foods, Inc., et al., seeks to retain Appraisal Economics, Inc., as its appraisers, nunc pro tunc to Aug. 23, 2011, and to waive certain information requirements of Local Rule 2016-2. Among other things, the Court's June 27, 2011 Sale Order approved the purchase agreement between the Debtors and Harim USA, Ltd., for the sale of certain assets free and clear of liens, claims, encumbrances, and interests. The Assets include certain vehicles and equipment -- Fixed Assets -- upon which MidAtlantic Farm Credit, ACA, for itself and as the agent/nominee for lenders who made senior prepetition secured loans to the Debtors, does not have valid and perfected liens. The Creditors Committee seeks to retain Appraisal Economics to conduct an appraisal of the Fixed Assets, which are located in Delaware, Maryland, and North Carolina, to aid in determining what portion of the Sale Proceeds should be allocated to the Fixed Assets. The services to be provided by Appraisal Economics include: * Completing a comprehensive appraisal of the approximately 1,000 items that comprise the Fixed Assets of the Debtors; * Appraising the Fixed Assets based on the (i) cost approach or (ii) market approach valuation methodologies; and * Providing a detailed valuation report discussing the important factors considered in preparing a report, which may include the identification of subject assets; purpose of the appraisal; intended use of the appraisal; effective date of the appraisal; methodology; scope of work; statement of ownership; and evaluation considerations. The Creditors Committee proposes to pay Appraisal Economics $8,000 for the initial appraisal services, including reimbursement of actual and necessary out-of-pocket expenses, plus any additional fees that may arise (i) in the event Appraisal Economics is asked to appraise more than the initial 1,000 items, (ii) circumstances such as litigation mandate a more through appraisal, or (iii) court appearances are required at the firm's standard hourly rates. In accordance with the terms of the engagement letter between the parties, the Appraisal Fee is due upon completion of the appraisal report. Given the nature of Appraisal Economics' engagement and the fee structure, the Creditors' Committee submits that the recording and submission of detailed time entries by the firm would be unnecessary and unduly burdensome to Appraisal Economics. The Creditors' Committee requests that the detailed time entry reporting requirements of Local Rule 2016-2(d) be waived pursuant to Local Rule 2016-2(g). The Creditors Committee believes that Appraisal Economics is a disinterested person as the term is defined in Section 101(14) of the Bankruptcy Code and that the firm neither holds nor represents any interest adverse to the Debtors or their estates. About Allen Family Allen Family Foods Inc. is a 92-year-old Seaford, Del., poultry company. Allen Family Foods and two affiliates, Allen's Hatchery Inc. and JCR Enterprises Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-11764) on June 9, 2011. It estimated assets and liabilities between $50 million and $100 million in its petition. Robert S. Brady, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serve as counsel to the Debtors. FTI Consulting is the financial advisor. BMO Capital Markets is the Debtors' investment banker. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Lowenstein Sandler PC and Womble Carlyle Sandridge & Rice, PLLC, serve as counsel for the official committee of unsecured creditors. J.H. Cohn LLP serves as the Committee's financial advisor. The Creditors Committee's deadline to challenge the liens and claims of the prepetition lenders expired Sept. 9, 2011. AMERICAN DEFENSE: Reports $1.8 Million Second Quarter Net Loss -------------------------------------------------------------- American Defense Systems, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.8 million on contract revenues of $1.8 million for the three months ended June 30, 2011, compared with a net loss of $3.7 million on contract revenues of $8.7 million for the same period last year. The Company recorded losses from discontinued operations of $362,575 and $574,412 for the three months ended June 30, 2011, and 2010, respectively. For the six months ended June 30, 2011, the Company had net income of $10.2 million on contract revenues of $4.4 million, compared with a net loss of $4.5 million on contract revenues of $20.0 million for the comparable period of 2010. Other income totaled $10.1 million for the six months ended June 30, 2011, and included a gain on the redemption of the Series A Preferred of $12.8 million, absent in 2010. The Company recorded income from discontinued operation of $2.5 million which included a gain on the sale of APSG of $2.9 million for the six months ended June 30, 2011. The Company recorded a loss from discontinued operation of $517,765 for the six months ended June 30, 2010. The Company's balance sheet at June 30, 2011, showed $4.2 million in total assets, $3.7 million in total liabilities, and stockholders' equity of $504,640. As reported in the TCR on April 26, 2011, Marcum LLP, in Melville, New York, expressed substantial doubt about American Defense Systems' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that as of Dec. 31, 2010, the Company had a working capital deficiency of $14.1 million, an accumulated deficit of $26.3 million, a shareholders' deficiency of $9.8 million and cash on hand of $428,160. A complete text of the Form 10-Q is available for free at: http://is.gd/9it2Xj About American Defense Hicksville, N.Y.-based American Defense Systems, Inc., is a defense and security products company engaged in three business areas: customized transparent and opaque armor solutions for construction equipment and tactical and non-tactical transport vehicles used by the military; architectural hardening and perimeter defense, such as bullet and blast resistant transparent armor, walls and doors. The Company also operates the American Institute for Defense and Tactical Studies. The Company is in the process of negotiating a sale or disposal of the portion of its business related to the operation of a live-fire interactive tactical training range location in Hicksville, N.Y. The portion of the Company's business related to vehicle anti-ram barriers such as bollards, steel gates and steel wedges that deploy out of the ground was sold as of March 22, 2011. AMT LLC: Files Omega-Funded Reorganization Plan ----------------------------------------------- AMT, LLC, filed with the U.S. Bankruptcy Court for the Northern District of Florida, Pensacola Division, a Chapter 11 plan of reorganization and an accompanying disclosure statement. The Plan will be funded primarily by the proceeds of the $14.1 million loan obtained from Omega Commercial Finance. The loan is secured by the Debtor's 11.77 acre of undeveloped land located on the waterfront on Destin pass. The Debtor says that if the Plan is not confirmed and its case is converted to Chapter 7 liquidation, a Chapter 7 Trustee would take possession of the Debtor's assets and would determine whether the assets have equity over and above amounts owed to secured creditors. If there is equity in the Debtor's assets, the trustee will attempt to sell those assets and use the equity to distribute to creditors. If there is no equity in the assets, the trustee would surrender secured assets to the secured creditor. The Plan provides for this classification of claims: Class 1 Administrative Expenses Class 2 Secured claim of Jefferson Bank and Trust Company Class 3 Priority claim of Okaloosa County Tax Collector Class 4 General Unsecured Claims Class 5 Claim of U.S. Trustee Class 6 Claim of ZTF Family, LP At the behest of the Debtor, the Court will set a combined hearing on the approval of the Disclosure Statement and confirmation of the Plan. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?76ee About AMT LLC AMT, LLC, in Destin, Florida, filed for Chapter 11 bankruptcy (Bankr. N.D. Fla. Case No. 11-30933) on May 27, 2011. The Debtor's major asset consisted of 11.77 acres of waterfront property located in Destin Pass in Destin, Florida. Judge William S. Shulman presides over the case. J. Steven Ford, Esq., at Wilson, Harrell, Farrington, Ford, Wilson, Spain, & Parsons, P.A., in Pensacola, Fla., serves as the Debtor's counsel. In its schedules, the Debtor disclosed $30,679,648 in assets and $5,060,823 in liabilities. APOLLO MEDICAL: Incurs $122,800 Net Loss in July 31 Quarter ----------------------------------------------------------- Apollo Medical Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $122,834 on $1.09 million of revenue for the three months ended July 31, 2011, compared with a net loss of $60,130 on $1.04 million of revenue for the same period during the prior year. The Company also reported a net loss of $352,764 on $2.13 million of revenue for the six months ended July 31, 2011, compared with a net loss of $60,973 on $1.84 million of revenue for the same period a year ago. The Company's balance sheet at July 31, 2011, showed $1.74 million in total assets, $1.89 million in total liabilities and a $147,291 total stockholders' deficit. The Company reported a net loss of $156,331 on $3.89 million of revenue for the year ended Jan. 31, 2011, compared with a net loss of $196,280 on $2.44 million of revenue during the prior year. As reported in the Troubled Company Reporter on June 2, 2010, Kabani & Company, Inc., in Los Angeles, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for the fiscal year ended Jan. 31, 2010. The independent auditors noted that the Company has an accumulated deficit of $1.24 million as of Jan. 31, 2010, working capital of $1.07 million and cash flows used in operating activities of $338,141. A full-text copy of the Form 10-Q is available for free at: http://is.gd/NIMUGt About Apollo Medical Glendale, Calif.-based Apollo Medical Holdings, Inc., provides hospitalist services in the Greater Los Angeles, California area. Hospitalist medicine is organized around the admission and care of patients in an inpatient facility such as a hospital or skilled nursing facility and is focused on providing, managing and coordinating the care of hospitalized patients. ARK DEVELOPMENT: Gets Final OK to Access Midland's Cash Collateral ------------------------------------------------------------------ The Hon. John K. Olson of the U.S. Bankruptcy Court for the Southern District of Florida authorized, on a final basis, Ark Development/Oceanview, LLC, to use the cash collateral of Midland Loan Services, Inc. As reported in the Troubled Company Reporter on May 5, 2011, the Debtor sought permission to use $11,000 in monthly rental income from its property at 1423 North Atlantic Boulevard in Fort Lauderdale, Florida, to finalize construction improvements associated with the 1423 Property. The Debtor said any cash generated by the 1423 Property may constitute cash collateral of Midland. The Debtor would use the cash collateral to pay all ordinary and necessary construction improvement expenditures in the ordinary course of its business for the purposes. As adequate protection for any diminution in value of the lender's collateral, the Debtors will grant Midland, a first priority postpetition security interest and lien in, to and against all of the Debtor's rental income from the Midland property, to the same extent that Midland held prepetition. Loans from Kodsis In a separate order, the Court denied as moot the proposed postpetition financing from Isaac Kodsi, Joseph Kodsi and other related entities. The TCR reported on July 28, 2011, that the Debtor asked for authorization to obtain postpetition financing of $15,932 per month, on a interim basis, from Isaac Kodsi, Joseph Kodsi or other related or affiliated entities, to make the proposed adequate protection payments to Northern Trust, which payments commence on Aug. 1, 2011. The Debtor tells the Court that the adequate protection payments are necessary to enable it to confirm its Plan. Isaac Kodsi and Joseph Kodsi each own 50% of the Debtor. About Ark Development Ark Development/Oceanview LLC owns three luxury homes in Fort Lauderdale, Florida -- at 1431 North Atlantic Boulevard; 1427 North Atlantic Boulevard; and 1423 North Atlantic Boulevard. As of the Petition Date, all three properties were in the final stages of the construction process. Subsequent to the Petition Date, the Debtor has completed construction of the 1427 Property and a certificate of occupancy for the residence has been issued by the City of Fort Lauderdale. The Debtor estimates that the value of each property is roughly $4 million. Currently, the Debtor's sole source of income is generated from the rental income from the 1423 Property. The Debtor utilizes the rental income from the 1423 Property to pay the expenses associated with maintaining the 1423 Property. Ark Development/Oceanview filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-20382) on April 18, 2011. Judge John K. Olson presides over the case. It scheduled assets of $12,000,000 and debts of $9,772,531. The Debtor has retained Shraiberg, Ferrara & Landau, P.A., as general bankruptcy counsel. ARK DEVELOPMENT: Withdraws Motion for Withdrawal as Counsel ----------------------------------------------------------- Ark Development/Oceanview, LLC, withdrew its motion filed with the U.S. Bankruptcy Court for the Southern District of Florida to withdraw Shraiberg, Ferrara & Landau, P.A., as its counsel. In connection, Shraiberg Ferrara previously asked the Court to formalize its withdrawal as counsel for the Debtor due to irreconcilable differences that have arisen among the parties, according to the Troubled Company Reporter on August 25, 2011. About Ark Development Ark Development/Oceanview LLC owns three pieces luxury homes in Fort Lauderdale, Florida -- at 1431 North Atlantic Boulevard; 1427 North Atlantic Boulevard; and 1423 North Atlantic Boulevard. All three properties are in the final stages of the construction process. The Debtor estimates that the value of each property is roughly $4 million. Ark Development/Oceanview filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-20382) on April 18, 2011. Judge John K. Olson presides over the case. The Debtor disclosed $12,017,522 in assets and $11,794,591 in liabilities as of the Chapter 11 filing. The U.S. Trustee said it will not appoint at this time a committee of creditors for the Debtor's case. AUSTRALIA PROPERTY: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Australia Property Group LLC 18501 Pines Boulevard, Suite 300 Pembroke Pines, FL 33029 Bankruptcy Case No.: 11-35346 Chapter 11 Petition Date: September 13, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (Fort Lauderdale) Judge: John K. Olson Debtor's Counsel: Martin L. Sandler, Esq. SANDLER & SANDLER BY M. L. SANDLER, P.A. P.O. Box 402727 Miami Beach, FL 33140 Tel: (305) 379-6655 Fax: (786) 472-7077 E-mail: martin@sandler-sandler.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 five largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flsb11-35346.pdf The petition was signed by Mario Perez, managing member. AVION POINT: Prepares to Sell, Opposes Rubright Lift Stay Plea -------------------------------------------------------------- Avion Point West LLC asks the Honorable Karen S. Jennermann to deny the motion to terminate, annul or modify the automatic stay filed by Tara S. Pellegrino, on behalf of Rubright Family Limited Partnership. The Debtor notes that in the Lift Stay Motion, Rubright seeks relief from the stay to enforce its note and mortgage rights and to complete a state court foreclosure action against real property of the Debtor or the Debtor's affiliate, Orlando County Aviation Services, Inc. In the alternative, Rubright seeks adequate protection or dismissal for bad faith. Rubright's mortgage is senior to most, if not all, of the mortgages on the real property except for that of Alterna Capital Funding, Roman V. Hammes, Esq., at Wolff, Hill, McFarlin & Herron, P.A., in Orlando, Florida, relates. Granting the Lift Stay Motion will effectively wipe out numerous junior liens on the real property, he says. The Debtor anticipates a contract for the sale of its real property that will satisfy all liens, according to Mr. Hammes. He asserts that Rubright is adequately protected by the substantial equity in the aggregate real property. The aggregate real property is necessary for an effective reorganization of the Debtor and Orlando Aviation, Mr. Hammes tells the Court. The best interests of the creditors as a whole will be served by allowing the Debtor and Orlando Aviation adequate time to propose a confirmable plan of reorganization, he asserts. The Lift Stay Motion should be denied, he says. The Honorable Karen S. Jennermann set a preliminary non- evidentiary hearing for Aug. 30, 2011, on the Lift Stay Motion. The automatic stay is extended until final order is entered on this motion. 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. AVSTAR AVIATION: Posts $20,200 Net Loss in Second Quarter --------------------------------------------------------- AvStar Aviation Group, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $20,244 for the three months ended June 30, 2011, compared with a net loss of $221,531 for the same period last year. Revenues for the second quarter 2011 were $645,363 (consisting of 637,161 of revenues from aviation operations and $8,202 in revenues from oil and gas operations) compared to revenues of $55,844 for the second quarter 2010 (consisting of $55,703 in revenues from aviation operations and $141 in revenues from oil and gas operations). The Company had net income of $939 on $1.2 million of revenues for the six months ended June 30, 2011, compared to a net loss of $822,972 on $157,362 of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $1.2 million in total assets, $2.1 million in total liabilities, and a stockholders' deficit of $929,207. Clay Thomas, P.C., in Houston, expressed substantial doubt about Avstar Aviation Group's ability to continue as a going concern following the Company's 2010 results. Mr. Thomas noted that the Company has suffered significant losses and will require additional capital to develop its business until the Company either (1) achieves a level of revenues adequate to generate sufficient cash flows from operations; or (2) obtains additional financing necessary to support its working capital requirements. A complete text of the Form 10-Q is available for free at http://is.gd/f4Sh3R Houston, Texas-based AvStar Aviation Group, Inc. (OTC QB: AAVG) -- http://www.avstarinc.com/-- due to acquisitions, is now in two aviation sectors, the maintenance, repair and overhaul ("MRO") of aircraft providing products and services for the general aviation sector, and the charter air service business. BANK UNITED: U.S. Bank Reserves Right to Object to Panel's Plan --------------------------------------------------------------- U.S. Bank National Association, as indenture trustee for the 3.125% senior notes due 2034, notified the U.S. Bankruptcy Court for the Southern District of Florida that it reserves its right regarding the Second Amended Disclosure Statement relating to the Second Amended Plan for The Bank United Financial Corporation, et al. According to U.S. Bank, the Disclosure Statement provides that the $184 million in 6.37% senior notes due May 2012 for which Bank of New York Mellon serves as indenture trustee, and the 12.5 million in junior subordinated debentures due Dec. 15, 2007, rank pari passu with the $120 million of senior convertible notes that mature in 2034 for which U.S. Bank serves as indenture trustee. In summarizing the Plan, the Disclosure Statement provides that HiMEDS Notes, Junior Subordinated indentures and senior convertible Notes will each receive a pro rata distribution of the net free cash. U.S. Bank filed the pleading, out of an abundance of caution to clarify that the Committee's description of the priority of claims and interests in the Disclosure Statement will be in no way affect the right of U.S. Bank to object not only to the Plan classification of claims and interests, but also to the treatment and distributions to holders of claims and interests. U.S Bank is represented b: Craig V. Rasile, Esq. Andrew D. Zaron, Esq. DLA PIPER LLP 200 South Biscayne Blvd., Suite 2300 Miami, FL 33131 Tel: (305) 423-8539 Fax: (305) 437-8131 E-mail: craig.rasile@dlapiper.com andrew.zaron@dlapiper.com The Chapter 11 Plan The Plan was proposed by the Official Committee of Unsecured Creditors on June 15, 2011. As reported in the Troubled Company Reporter on June 20, 2011, in the Disclosure Statement, the Creditors Committee asserts, "The Debtors maintain that the Plan forfeits an asset that could have substantial value, namely net operating loss carryforwards, which will be lost upon confirmation of the Plan or any other liquidating plan. However, given the failure of any party to come forward with a binding offer to serve as a sponsor of a reorganization plan (despite significant and prolonged efforts at great expense to the BUFC Estate to find such a sponsor) and the inability of the Debtors to confirm a plan of reorganization without such a sponsor, the Committee believes that the Plan presently is the only viable option and by, among other things, streamlining costs, is in the best interests of creditors." The TCR also reported that the Plan is based, in part, upon the assumption that the Court will approve a settlement with the FDIC, under which the FDIC has agreed to amend its proofs of claim from $1 billion to no more than $45 million. In the event the Court denies the settlement with the FDIC, the Committee anticipates that it will amend the Plan and Disclosure Statement. About BankUnited Financial BankUnited Financial Corp. (OTC Ticker Symbol: BKUNQ) -- http://www.bankunited.com/-- was the holding company for BankUnited FSB, the largest banking institution headquartered in Coral Gables, Florida. On May 21, 2009, BankUnited FSB was closed by regulators and the Federal Deposit Insurance Corporation facilitated a sale of the bank to a management team headed by John Kanas, a veteran of the banking industry and former head of North Fork Bank, and a group of investors led by W.L. Ross & Co. BankUnited, FSB, had assets of $12.8 billion and deposits of $8.6 billion as of May 2, 2009. The Company and its affiliates filed for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 09-19940) on May 22, 2009. Stephen P. Drobny, Esq., and Peter Levitt, Esq., at Shutts & Bowen LLP; Mark D. Bloom, Esq., and Scott M. Grossman, Esq., at Greenberg Traurig, LLP; and Michael C. Sontag, at Camner, Lipsitz, P.A., represent the Debtors as counsel. Corali Lopez-Castro, Esq., David Samole, Esq., at Kozyak Tropin & Throckmorton, P.A.; and Todd C. Meyers, Esq., at Kilpatrick Stockton LLP, serve as counsel to the official committee of unsecured creditors. In its bankruptcy petition, BankUnited Financial Corp. disclosed $37,729,520 in assets against $559,740,185 in debts. Aside from those assets, BankUnited said that a "valuable" asset is its $3.6 billion net operating loss carryforward. Wilmington Trust Co., U.S. Bank, N.A., and the Bank of New York were listed among the company's largest unsecured creditors in their roles as trustees for security issues. BankUnited estimated the Bank of New York claim tied to convertible securities at $184 million. U.S. Bank and Wilmington Trust are owed $120 million and $118.171 million on account of senior notes. BIG VIEW: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: Big View Property I, LLC 111 N. Market Street, #1010 San Jose, CA 95113 Bankruptcy Case No.: 11-58575 Chapter 11 Petition Date: September 14, 2011 Court: U.S. Bankruptcy Court Northern District of California (San Jose) Judge: Arthur S. Weissbrodt Debtor's Counsel: Dennis Yan, Esq. LAW OFFICE OF DENNIS YAN 595 Market Street, #1350 San Francisco, CA 94105 Tel: (415) 867-5797 E-mail: dennisy@yahoo.com Scheduled Assets: $2,500,000 Scheduled Debts: $2,164,469 The list of unsecured creditors filed together with its petition does not contain any entry. The petition was signed by Balak Verma, managing member. BIOZONE PHARMACEUTICALS: Posts $568,000 Net Loss in Second Quarter ------------------------------------------------------------------ Biozone Pharmaceuticals, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $568,000 on $2.6 million of sales for the three months ended June 30, 2011, compared with net income of $59,000 on $3.1 million of sales for the same period last year. For the six months ended June 30, 2011, the Company had a net loss of $1.1 million on $5.0 million of sales for the three months ended June 30, 2011, compared with net income of $139,000 on $6.6 million of sales for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $11.1 million in total assets, $10.7 million in total liabilities, and stockholders' equity of $366,000. "Our current balances of cash will not meet our working capital and capital expenditure needs for the next twelve months," the Company said in the filing. "Because we are not currently generating sufficient cash to fund our operations and we have debt that is in default and notes that are due in the third fiscal quarter of 2011, we will need to rely on external financing to meet future operating, debt repayment and capital requirements. These conditions raise substantial doubt about our ability to continue as a going concern." A complete text of the Form 10-Q is available for free at: http://is.gd/BlOUrD Biozone Pharmaceuticals, Inc. (formerly, International Surf resorts, Inc.) was incorporated under the laws of the State of Nevada on Dec. 4, 2006, to operate as an internet-based provider of international surf resorts, camps and guided surf tours. The Company proposed to engage in the business of vacation real estate and rentals related to its surf business and it owns the website isurfresorts.com. During late February 2011, the Company began to explore alternatives to its original business plan. On Feb. 22, 2011, the prior officers and directors resigned from their positions and the Company appointed a new President, Director, principal accounting officer and treasurer and began to pursue opportunities in medical and pharmaceutical technologies and products. On March 1, 2011, the Company changed its name to Biozone Pharmaceuticals, Inc. Since March 2011, the Company has been engaged primarily in seeking opportunities related to its intention to engage in medical and pharmaceutical businesses. On May 16, 2011, the Company acquired substantially all of the assets and assumed all of the liabilities of Aero Pharmaceuticals, Inc., pursuant to an Asset Purchase Agreement dated as of that date. Aero manufactures markets and distributes a line of dermatological products under the trade name of Baker Cummins Dermatologicals. On June 30, 2011, the Company acquired the Biozone Labs Group which operates as a developer, manufacturer, and marketer of over- the-counter drugs and preparations, cosmetics, and nutritional supplements on behalf of health care product marketing companies and national retailers. BISCAYNE PARK: Cardenas Seeks Dismissal of Chapter 11 Case ---------------------------------------------------------- Teresa Cardenas, an interested party in the Chapter 11 case of Biscayne Park LLC, has asked the U.S. Bankruptcy Court for the Southern District of Florida to dismiss the case. Ms. Cardenas' lawyer, Scott Alan Orth, Esq., at the Law Offices of Scott Alan Orth P.A., in Hollywood, Florida, said the bankruptcy case no longer serves any purpose and that Biscayne will only incur fees and costs if the case continues. Mr. Orth also said that most of the assets of Biscayne, including the debtor-in-possession account, have already been sold. Early this year, Biscayne also proposed the dismissal of its bankruptcy case. The move came after the Court confirmed the sale of the company's assets to Madison Park Realty LP. Madison, which has an allowed claim of roughly $10.6 million secured by the assets, emerged as the winning bidder at a court- ordered auction on December 1, 2010. The Court will hold a hearing on Oct. 4, 2011, at 11:30 a.m. to consider the proposed dismissal of the case. About Biscayne Park LLC Miami, Florida-based Biscayne Park LLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-20941) on April 26, 2010. Joel M. Aresty, Esq., who has an office in North Miami Florida, assists the Company in its restructuring effort. The Company disclosed $13.3 million in assets and $14.3 million in liabilities as of the Petition Date. BLUEKNIGHT ENERGY: Unitholders OK Amendment to Partnership Pact --------------------------------------------------------------- Blueknight Energy Partners, L.P., announced that its unitholders approved certain amendments to its partnership agreement and the long-term incentive plan of its general partner during a special meeting of the Partnership's unitholders held on Sept. 14, 2011. "The approval of the amendments to BKEP's partnership agreement is key to the refinancing and restructuring of the Partnership. We appreciate the unitholders support. We remain positive on BKEP's future and look forward to building value for our unitholders, our customers and our employees," explained Mr. James C. Dyer, Chief Executive Officer of BKEP's general partner. Approval of the Partnership Agreement Amendment Proposal required the affirmative vote of the majority of the Partnership's common units and subordinated units. Approximately 76.6% of the Partnership's outstanding common units participated in voting relating to the Partnership Agreement Amendment Proposal. Votes cast by common unitholders in favor of the Partnership Agreement Amendment Proposal totaled approximately 16.3 million common units, representing approximately 97.3% of all votes cast by common unitholders and approximately 75.1% of all outstanding common units eligible to vote. Approval of the LTIP Proposal required the affirmative vote of the majority of the votes cast by the Partnership's unitholders. Approximately 51.0 million of the Partnership's outstanding units participated in voting relating to the LTIP Proposal with approximately 90.7% of such votes cast in favor of the LTIP Proposal. Pursuant to the Global Transaction Agreement entered into by the Partnership and the other parties thereto on Oct. 25, 2010, as amended on May 12, 2011, after the approval of the Partnership Agreement Amendment Proposal, the holders of the Partnership's subordinated units transferred such units to the Partnership and such subordinated units were subsequently cancelled by the Partnership. 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. BLUEKNIGHT ENERGY: Plans to Launch Rights Offering -------------------------------------------------- Blueknight Energy Partners, L.P., announced that it intends to launch a rights offering, pursuant to which it will distribute detachable freely-tradable rights pro rata to common unitholders of record as of the close of business on Sept. 27, 2011. Record Date Unitholders will receive 0.5412 Rights for every common unit owned on the Record Date. Each whole Right will entitle the holder to acquire, for an exercise price of $6.50, a newly-issued Series A Preferred Unit of the Partnership. The Partnership intends to distribute the Rights to the Record Date Unitholders on Oct. 3, 2011. The Company has applied to list the Rights on the NASDAQ Global Market. The Rights are expected to trade during the month of October 2011 until the close of the NASDAQ Global Market on Oct. 31, 2011, the expiration date of the Rights. The Partnership has filed a registration statement on Form S-3 with the Securities and Exchange Commission that registers the Series A Preferred Units underlying the Rights and the common units into which the Series A Preferred Units are convertible. The registration statement was declared effective on July 26, 2011. 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. BRAINY BRANDS: Incurs $16.5 Million Second Quarter Net Loss ----------------------------------------------------------- The Brainy Brands Company, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $16.57 million on $216,324 of total revenues for the three months ended June 30, 2011, compared with a net loss of $161,000 on $102,000 of total revenues for the same period during the prior year. The Company also reported a net loss of $18.05 million on $313,000 of total revenues for the six months ended June 30, 2011, compared with a net loss of $339,000 on $219,000 of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.62 million in total assets, $20.15 million in total liabilities, and a $18.53 million shareholders' deficit. Habif, Arogeti & Wynne, LLP, in Atlanta, Ga., expressed substantial doubt about The Brainy Brands' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred significant operating losses and has a net capital deficiency. A full-text copy of the Form 10-Q, as amended, is available for free at http://is.gd/Voybc1 About Brainy Brands Suwanee, Ga.-based The Brainy Brands Company, Inc., through its operating subsidiary, engages in the business of selling educational DVDs, books, games, and toys for babies, toddlers and pre-schoolers both domestically and internationally through retailers under licensing agreements, as well as directly to customers primarily via internet sales. B.R. SUMMERLIN: Gibbs Giden to be Paid From Operating Revenues -------------------------------------------------------------- B.R. Summerlin Property, LLC, has filed with the U.S. Bankruptcy Court for the District of Nevada an amended plan of reorganization dated Sept. 9, 2011. The changes to the amended plan pertain to the treatment of Class 5 claims, the unsecured claims of Gibbs, Giden, Locher, & Turner. Instead of being paid in 3 equal installments, Gibbs Giden will be paid 100% of net operating revenues until the Claim is paid in full. In particular, the amended plan specifies this treatment of Class 5 claims: Class 5 (Gibbs Giden Unsecured Claim) - The Allowed Claim of Gibbs, Giden, Locher, & Turner will be paid in full with interest at the Unsecured Post-Petition Interest Rate. After the payment of Unclassified Claims required to be paid pursuant to this Plan, the Holder of the Class 5 Claim will receive 100% of Net Operating Revenues until the Claim is paid in full with interest at the Unsecured Post-Petition Interest Rate. If the Class 5 Claim has not been paid in full on the 40th day following the Effective Date, the unpaid portion of the Class 5 Claim will be paid by the Guarantors. The Holder of the Class 5 Claim is impaired and is entitled to vote on this Plan. In addition, the amended plan adds this language to the treatment of Class 1 claims: All Net Operating Revenues will be paid to the Holder of the Allowed Class 1 Claim to be applied against the principal balance of the New Secured Note until the earlier of (i) the Modified Maturity Date or (ii) the New Secured Note is paid in full. A blacklined copy of the Reorganization Plan is available for free at http://bankrupt.com/misc/BRSUMMERLIN_plan_amended.pdf The hearing on the amended disclosure statement is scheduled on Sept. 19, 2011, at 9:30 A.M. Greystone Bank is represented by: Richard F. Holley, Esq. SANTORO, DRIGGS, WALCH, KEARNEY, HOLLEY & THOMPSON 400 Las Negas, NV 89101 Tel: (702) 791-0308 Fax: (702) 791-1912 E-mail: rholley@nevadafirm.com The Debtor's Plan As reported in the Troubled Company Reporter on July 8, 2011 the Court approved the disclosure statement explaining the Debtor's Second Amended Plan of Reorganization. The proposed Plan divides the creditors and interest holders into six classes. Class 1 consists of the secured claim of Greystone Bank, its primary creditor, that the Debtor proposes to pay in full within seven years. Class 2 consists of other secured claims and Class 3 consists of priority unsecured claims. The Debtor does not believe, however, that any claims actually exist in Class 2 or Class 3. Class 4 encompasses general unsecured claims against the Debtor which the Debtor estimates at approximately $7,205. Class 5 consists of the unsecured claim of Gibbs, Giden, Locher, Turner & Sente in the approximate amount of $47,340. Class 6 consists of the equity interest holders of the Debtor. Class 6 Equity Interests are impaired under the Second Amended Plan. Class 6 was unimpaired under the First Amended Plan. Leasehold Resource Group, LLC, has up to 23 years remaining on the term of the lease to the Debtor's property, a skilled nursing facility known as The Heights of Summerlin, located at 10550 Park Run Drive, in Las Vegas, Nevada. The Debtor said it intends to assume the Lease pursuant to the Plan. As a result, upon expiration or termination of the Lease, the Debtor will continue to be obligated to return the portion of LRG's $420,000 security deposit not used or applied in accordance with the Lease. Based on the Debtor's projections, the Debtor will have sufficient cash on hand to satisfy this obligation. To the extent LRG does not exercise its option, the Lease will terminate in approximately three years. In that event, the Debtor will either (i) lease the Facility to another tenant, or (2) operate the Facility. About B.R. Summerlin Property Woodland Hills, California-based B.R. Summerlin Property, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-10148) on Jan. 5, 2011. The Company disclosed $23,066,151 in assets and $15,414,103 in liabilities. Affiliates B.R. Brookfield Commons No. 1, LLC (Bankr. D. Nev. Case No. 10-38835) and B.R. Brookfield Commons No. 2, LLC (Bankr. D. Nev. Case No. 10-38838) filed separate Chapter 11 petitions on Nov. 29, 2010. The Debtor disclosed $23.07 million in assets, and $15.4 million in debts. B.R. Summerlin Property is represented by Gregory E. Garman, Esq., -- ggarman@gordonsilver --, Gabrielle A. Hamm, Esq., -- ghamm@gordonsilver.com --, at Gordon Silver, in Los Angeles, Nevada. BROTHER SONNY: Seeks to Hire Merrill and Green as Special Counsel ----------------------------------------------------------------- Brother Sonny LLC seeks authority from the U.S. Bankruptcy Court for the District of Nevada to employ (i) David J. Merrill P.C. as its special counsel, nunc pro tunc to July 27, 2011, and (ii) Thomas R. Green as special co-counsel, nunc pro tunc to July 27, 2011. On Dec. 30, 2010, Gregory Bischoff filed a complaint in the Eighth Judicial District Court, District of Nevada against the Debtor, Schams Properties, LLC, and Randolph P. Schams, individually, as Case No. A-10-632357-C. Mr. Bischoff filed an amended complaint on Mar. 1, 2011, and a second amended complaint on May 23, 2011. The Bischoff Litigation is currently pending in the Eighth Judicial District Court. Schams Properties and Mr. Schams will soon be removing the proceeding to the Bankruptcy Court, according to the Debtor. On Dec. 30, 2010, Frank Trimboli filed a complaint in the Eighth Judicial District Court, District of Nevada against the Debtor, Schams Properties, LLC, and Randolph P. Schams, individually, as Case No. A-10-632358-C. Mr. Trimboli filed an amended complaint on Mar. 1, 2011, and a second amended complaint on May 25, 2011. The Trimboli Litigation is currently pending in the Eighth Judicial District Court. Schams Properties and Mr. Schams will soon be removing the proceeding to the Bankruptcy Court, the Debtor relates. On June 28, 2011, CraneVeyor Corp. filed a complaint in the U.S. District Court, Central District of California against the Debtor, Schams Family Trust Dated June 10, 2003, Randolph P. Schams, Christine Schams, and Rancris, Inc., as Case No. 2:11-cv-05381-GW- MRW, alleging that the Schams Family Trust fraudulently conveyed property secured by a Deed of Trust in favor of CraneVeyor to the Debtor. The CraneVeyor Litigation is currently pending in the District Court. Schams Family Trust, Mr. Schams, Ms. Schams, and Rancris intend to seek removal of the CraneVeyor Litigation to the Bankruptcy Court as the subject property is property of the Debtor's estate. Merrill will represent the Debtor's interests in the Bischoff Litigation and the Trimboli Litigation, subject to and in compliance with the applicable provisions of the Bankruptcy Code, Bankruptcy Rules, Local Rules, and the UST Guidelines. Green will represent the Debtor's interests in the Bischoff Litigation, the Trimboli Litigation, and the CraneVeyor Litigation, subject to and in compliance with the applicable provisions of the Bankruptcy Code, Bankruptcy Rules, Local Rules, and the UST Guidelines. The Debtor assures the Court that Green will strive to insure that its employment will not be duplicative of the role of the Debtor's general bankruptcy counsel, Schwartzer & McPherson Law Firm, and proposed special counsel, David J. Miller, P.C. Its retention of Green will save the estate substantial time and monies, according to the Debtor. The Debtor will pay Merrill and Green their customary hourly rates in effect from time to time and reimburse the firms for costs and expenses incurred on the Debtor's behalf. The Debtor informs the Bankruptcy Court that the firm has received a $5,000 retainer. Green has not received a retainer in this matter. The Debtor believes that Merrill and Green do not hold or represent any interest adverse to the estate. A hearing to consider the applications will be held on Sept. 20, 2011. Brother Sonny, LLC, in Boulder City, Nevada, is a land developer and constructor of residential homes. It filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case No. 11-21798) on July 27, 2011. Judge Bruce A. Markell presides over the case. Lenard E. Schwartzer, Esq., at Schwartzer & McPherson Law Firm, serves as bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Randolph Schams, director of Rancris, Inc., its manager. BROTHER SONNY: Seeks to Hire Needham Realty as Real Estate Broker ----------------------------------------------------------------- Brother Sonny, LLC, seeks authority from the U.S. Bankruptcy Court for the District of Nevada to employ Needham Realty and Claude G. Needham as real estate broker on a commission basis, nunc pro tunc to the Petition Date. The Debtor's assets include several parcels of real property located within the subdivision commonly known as Tuscany Retreat located in Boulder City, Nevada. The Debtor wishes to employ the Broker to market and sell the Property under an exclusive right to sell, and pay a broker's commission of 3% of the final closing price. The Debtor believes that the Broker does not represent or hold any interest adverse to the Debtor of its estate with respect to the matters on which it is to be employed. A hearing to consider the application is scheduled for Sept. 20, 2011. Brother Sonny, LLC, in Boulder City, Nevada, is a land developer and constructor of residential homes. It filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case No. 11-21798) on July 27, 2011. Judge Bruce A. Markell presides over the case. Lenard E. Schwartzer, Esq., at Schwartzer & McPherson Law Firm, serves as bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Randolph Schams, director of Rancris, Inc., its manager. BUFFALO GULF: Moody's Assigns 'Ba1' Rating to Sr. Sec. Term Loan ---------------------------------------------------------------- Moody's Investors Service has assigned a Ba1 rating to the $275 million senior secured term loan facility due 2017, to be issued by Buffalo Gulf Coast Terminals, LLC. Buffalo is a holding company set up by affiliates of Alinda Capital Partners, LLC to hold its 100% ownership interest in Houston Fuel Oil Terminal Company, which it is in the process of acquiring from ArcLight Capital Partners, LLC. The rating outlook is stable. RATINGS RATIONALE Loan proceeds along with sponsor equity will be used to: i) fund the acquisition; ii) repay the existing holding company credit facility for AL Gulf Coast Terminals LLC in the amount of approximately $290 million; and iii) cash fund a debt service reserve account (if such account is not supported by a letter of credit from the sponsor), which is sized to meet 6-months of required debt service. Alinda will own Buffalo, and in turn HFOTCO, through Alinda Infrastructure Fund II. Fund II is an approximately $4.1 billion infrastructure fund managed by Alinda, a private equity investment firm founded in 2005, which is focused on investing in infrastructure assets. Alinda has over $7.1 billion under management. Alinda and its affiliated managed investment funds own a diverse portfolio of companies in natural gas transmission, natural gas storage, regulated gas distribution and water utilities, inland barge terminal, water heating, air conditioning and ventilation, and transportation assets such as airports and toll roads. The operating company, HFOTCO, is the largest provider of residual fuel and crude oil storage in the Gulf Coast with approximately 13.8 million barrels of tankage, which will increase to about 16.8 million barrels by December 2013. In addition, HFOTCO is one of the largest such facilities in the world. HFOTCO's sheer scale also enables the company to provide additional ancillary services and optionality for its customers, including product heating, blending and transportation services for regional refiners, major integrated oil companies and trading operations. The facility's existing infrastructure also offers customers multiple inbound/outbound logistics options including: deepwater ship, ocean barge, inland barge, truck, rail and pipeline access. The Ba1 rating reflects the highly contracted nature of the cash flows, the low operating risks associated with this storage asset, the credit quality of the contract counterparties and the contract diversification. The rating also reflects the substantial cash equity investment and commitment that Alinda and its affiliates are making in Buffalo. However, the rating also reflects the high consolidated leverage on the combined enterprise and the structural subordination of the HoldCo term loan facility to the debt at the OpCo level. Repayment of the HoldCo loan is dependent upon refinancing at the end of term as there is only 1% scheduled amortization and no sweep of excess cash flows. The leverage covenant acts as an effective sweep to ensure appropriate deleveraging. Having said that, the rating also considers several qualitative project elements with emphasis on key credit strengths relating to HFOTCO's strong market position, low operating risk and strong customer base support. The credit facility will be secured by a perfected first priority security interest in all the assets of Buffalo and the Sponsor's interest in the Borrower. For further details on the ratings rationale, including credit strengths and weaknesses, please refer to a Credit Opinion under the Buffalo Gulf Coast Terminals LLC name to be published shortly on Moodys.com. The stable outlook reflects the expectation that the diversified portfolio of contracts will generate relatively stable and predictable cash flows, as the cash flows are derived from medium term contracts with predominantly investment grade counterparties. The rating is predicated upon final documentation in accordance with Moody's current understanding of the transaction and final debt sizing consistent with initially projected credit metrics. The methodologies used in this rating were Global Midstream Energy published in December 2010, and Generic Project Finance Methodology published in December 2010. Buffalo Gulf Coast Terminals LLC is a special-purpose holding company set up by Alinda Capital Partners LLC to hold its 100% ownership interest in Houston Fuel Oil Terminal Company. HFOTCO is the largest provider of residual fuel and crude oil storage in the Gulf Coast with approximatley 13.8 million barrels of tankage, which will increase to about 16.8 million by December 2013. BURGER KING: Bank Debt Trades at 4% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Burger King Corp. is a borrower traded in the secondary market at 96.35 cents-on- the-dollar during the week ended Friday, Sept. 16, 2011, an increase of 0.85 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 325 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 19, 2016, and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 104 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Burger King Burger King Corp., with headquarters in Miami, Fla., operates 1,344 and franchises 10,907 Burger King hamburger quick service restaurants. Annual revenues are about $2.4 billion, although systemwide sales are over $14.0 billion. As reported by Troubled Company Reporter on April 19, 2011, Moody's assigned a 'Caa1' rating to Burger King Capital Holdings, LLC's (Burger King Capital) proposed $400 million senior unsecured discount notes due 2019. In addition, Moody's affirmed Burger King Corp.'s (BKC) 'B2' Corporate Family Rating (CFR) and Probability of Default Rating (PDR) as well as its 'Ba3' senior secured bank rating. Moody's also revised the rating of BKC's senior unsecured notes to 'B3' from 'Caa1'. BKC is a wholly owned indirect subsidiary of Burger King Capital. The outlook was changed to negative from stable. Moody's ratings are subject to review of final documentation. "The change in outlook to negative reflects the deterioration in credit metrics -- with leverage at over 7.0 times -- as a result of higher debt levels associated with the proposed new debt offering with proceeds used to fund either a special dividend or acquisition", stated Bill Fahy Moody's Senior Analyst. "The outlook also considers the company's relatively weak operating performance with negative same stores sales that will continue to be pressured by soft consumer spending and high levels of discounts and promotions by competitors. As a result, the company will have to rely more heavily on cost saving initiatives or sustainably reducing debt above required amortization to strengthen credit metrics that are more representative of a B2 CFR over the next twelve months," stated Fahy. BURLINGTON COAT: Bank Debt Trades at 4% 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 95.83 cents-on-the-dollar during the week ended Friday, Sept. 16, 2011, an increase of 1.18 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 104 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Warehouse Corp. 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. * * * Burlington carries a 'B3' corporate family rating and SGL-3 speculative grade liquidity rating from Moody's. The rating outlook is stable. CALYPTE BIOMEDICAL: Reports $101,000 Net Income in March 31 Qtr. ---------------------------------------------------------------- Calypte Biomedical Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $101,000 on $263,000 of product sales for the three months ended March 31, 2011, compared with a net loss of $567,000 on $133,000 of product sales for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $2.39 million in total assets, $6.70 million in total liabilities, and a $4.30 million total stockholders' deficit. Odenberg, Ullakko, Muranishi & Co. LLP, in San Francisco, California, expressed substantial doubt about Calypte Biomedical's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring operating losses and negative cash flows from operations, and management believes that the Company's cash resources will not be sufficient to sustain its operations through 2011 without additional financing. "At Dec. 31, 2010, and 2009, we had working capital deficits of $3.5 million and $16.6 million, respectively, the Company said in the filing. "As of Dec. 31, 2009, the $11.6 million outstanding under our Credit Facility and Convertible Notes was under default. Our cash on hand and existing sources of cash are insufficient to fund our cash needs over the next twelve months under our current capital structure." The Company reported net income of $8.8 million on $444,000 of product sales for 2010, compared with a net loss of $3.6 million on $726,000 of product sales for 2009. The Company recorded a gain on transfer of assets of $2.3 million and a gain on restructuring of notes of $8.5 million in 2010, absent in 2009. Bankruptcy Warning The Company does not have any long term agreement for capital infusion at this point in time. As the Company's cash flows from its operating and investing activities are currently not adequate to sustain its operations, if the Company is unable to raise capital, the Company will likely be unable to continue its operations. Failure to obtain additional financing will likely cause the Company to seek bankruptcy protection under Chapter 7 of the U.S. Bankruptcy Code. A full-text copy of the Form 10-Q is available for free at: http://is.gd/9q2F9q About Calypte Biomedical Portland, Oregon-based Calypte Biomedical Corporation develops, manufactures, and distributes in vitro diagnostic tests, primarily for the diagnosis of Human Immunodeficiency Virus ("HIV") infection. CAPITOL BANCORP: Names Nicholas Hahn as Interim CFO --------------------------------------------------- Capitol Bancorp Limited named Nicholas G. Hahn as interim chief financial officer overseeing the finance and accounting functions. "We are pleased to welcome Nick to our organization," said Capitol's Chairman and CEO Joseph D. Reid. "His financial leadership, industry expertise and proven ability to assist organizations in transition are significant assets for our team." Reid also noted that Hahn has broad management experience in strategic planning and focusing operational units on key business drivers. "Nick's ability to direct performance enhancement initiatives will complement our ongoing comprehensive strategic initiatives," he said. Hahn's financial services background is substantial. Since 2009, he has been a financial and management consultant, and recently interim chief financial officer to a national government guaranteed lender. Prior to that, he was chief financial officer for a Belgian bank-owned mortgage origination and servicing company based in New York, helping the company enter two new lines of business and significantly grow its revenue and customer bases. Hahn has also served as chief financial officer for a large cooperatively owned private bank where he directed all finance and accounting functions and as executive vice president of a publicly traded mortgage bank where he coordinated all production accounting and finance activities supporting four channels of mortgage origination. Since 1982 when he began his career, Hahn spent five years with two of the Big Four accounting and auditing firms, and in various management roles with financial services institutions, rising to chief financial officer. A CPA, he has a bachelor's degree in commerce from DePaul University and a master's degree in business administration from the University of Chicago. Hahn is a member of the American Institute of Certified Public Accountants, the Illinois and Ohio CPA Societies and Financial Executives International. Pursuant to a verbal agreement, Mr. Hahn is to be paid a one-time grant of 100,000 options to purchase common stock, a base salary of $250,000 per year and a living allowance of $3,000 per month. He will also have the potential to earn a discretionary bonus, performance-based salary increases and the ability to participate in employee incentive stock option grants. About Capitol Bancorp Limited Capitol Bancorp Limited (NYSE: CBC) -- http://www.capitolbancorp.com/-- is a $5.1 billion national community banking company, with a network of bank operations in 16 states. Founded in 1988, Capitol Bancorp Limited has executive offices in Lansing, Michigan and Phoenix, Arizona. The Company reported a net loss of $254.36 million on $163.69 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $264.54 million on $197.78 million of total interest income during the prior year. The Company's balance sheet at June 30, 2011, showed $2.94 billion in total assets, $3 billion in total liabilities, and a $58.95 million total deficit. In September 2009, Capitol and its second-tier bank holding companies entered into a written agreement with the Federal Reserve Bank of Chicago under which Capitol has agreed, among other things, to submit to the Reserve Bank a written plan to maintain sufficient capital at Capitol on a consolidated basis and at Michigan Commerce Bank (as a separate legal entity on a stand- alone basis); and a written plan to enhance the consolidated organization's risk management practices, a strategic plan to improve the consolidated organization's operating results and overall condition and a cash flow projection. Certain of Capitol's bank subsidiaries have entered into formal agreements with their applicable regulatory agencies. Those agreements provide for certain restrictions and other guidelines and/or limitations to be followed by the banks. In 2009, Capitol commenced the deferral of interest payments on its various trust-preferred securities, as is permitted under the terms of the securities, to conserve cash and capital resources. The payment of interest may be deferred for periods up to five years. During such deferral periods, Capitol is prohibited from paying dividends on its common stock (subject to certain exceptions) and is further restricted by Capitol's written agreement with the Federal Reserve Bank of Chicago. Accrued interest payable on such securities approximated $18.1 million at June 30, 2010. CHINA CGAME: Posts $3.4 Million Net Loss in Second Quarter ---------------------------------------------------------- China CGame, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.4 million for the three months ended June 30, 2011, compared with a net loss of $3.3 million for the same period last year. Contract revenues earned for the three months ended June 30, 2011, and 2010, was $0 due to the classification of the projects operations in Zhuhai as discontinued operations which was the only source of contract revenues for the periods. For the six months ended June 30, 2011, the Company had a net loss of $8.1 million on $0 revenue, compared with a net loss of $6.9 million on contract revenues earned of $5.6 million for the corresponding period of 2010. The Company's balance sheet at June 30, 2011, showed $146.0 million in total assets, $114.2 million in total liabilities, and stockholders' equity of $31.8 million. As reported in the TCR on April 26, 2011, Samuel H. Wong & Co., LLP, in San Mateo, Calif., expressed substantial doubt about China CGame's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company incurred a net loss of $23.2 million in the current year. "As of Dec. 31, 2010, the Company has an accumulated deficit of $11.2 million due to the fact that the Company continued to incur losses over the past few years. The Company also has difficulty to maintain sufficient working capital for operation activities." A complete text of the Form 10-Q is available for free at: http://is.gd/5CxvCP Changzhou, China-based China CGame, Inc. (Nasdaq: CCGM) is a self- developer of online games and provider of high-end building envelope architectural systems. Through its subsidiaries, Changzhou ConnGame Network Ltd. and Shanghai ConnGame Network Ltd., the Company leverages its game engines, development platforms, and production teams to develop and operate Massively Multiplayer Online Role Playing Games. The Company has two games under development. The first game, "Revolution," will allow game players to travel between Western and Eastern cultures, including adventures at historic locations and turf wars. The second game, "The Warring States," is a historic military adventure game based on the well-known period in ancient Chinese history of the same name. The Company also provides design, engineering, fabrication and installation services for high-end curtain wall systems, roofing systems, steel construction systems, and eco-energy systems. CHINA VILLAGE: Cathay Asks Court to Prohibit Use of Collateral -------------------------------------------------------------- Cathay Bank has filed a motion with the U.S. Bankruptcy Court for the Northern District of California to prohibit the use of China Village LLC's cash collateral. Cathay Bank, a secured creditor of China Village, holds a "perfected first-priority lien" against the real property owned by the Company, and any rents generated from the property. It also asserts a security interest in certain accounts recently discovered by China Village. The bank also asks the Court to order China Village to provide adequate protection including replacement liens for its interest in the accounts. About China Village Milpitas, California-based China Village, LLC, is a limited liability company that was created on May 10, 2005. The members of the Debtor are Thomas Nguyen (8%), Joseph Nguyen (9%) and Tuyet Minh Le (83%). The Debtor is in the business of purchasing, leasing, renovating and selling commercial real property. The Debtor currently owns a significant commercial property in Fremont, California, that has 370,019 square feet of rentable space on 25.07 acres of land. China Village filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 10-60373) on Oct. 4, 2010. Lawrence A. Jacobson, Esq., and Sean M. Jacobson, Esq., at Cohen and Jacobson, LLP, assist the Debtor in its restructuring effort. R&K Interests, Inc. d/b/a Investors Property Services serves as the Debtor's property manager. The Debtor estimated assets and debts at $10 million to $50 million as of the Petition Date. CHINA VILLAGE: Sues Cathay, DOES to Invalidate Liens ---------------------------------------------------- China Village, LLC filed a complaint against Cathay Bank, a California Banking Corporation, and DOES 1-25, inclusive, seeking: (a) a determination that the Defendants have no lien upon or interest in certain real property; (b) judgment quieting title in the Debtor free and clear of any and all liens or interests of the Defendants; (c) judgment avoiding and setting aside any and all liens or claims of the Defendants in or against the Real Property; (d) judgment determining that the Defendants are unsecured creditors in the bankruptcy case; (e) judgment for contempt damages according to proof at trial; (f) judgment for interest; and (g) judgment for costs of suit, including attorneys' fees. According to the Debtor, it is ignorant of the true names and capacities of DOES 1 through 25, inclusive, and therefore sues those defendants by fictitious names. The Debtor will amend the Complaint to allege their true names and capacities when ascertained. The Debtor also believes that East West Bank is a joint participant with Cathay Bank in the financing that is the subject of this action, but that privity exists directly between the Debtor and Cathay Bank, only, such that East West Bank's participation in the financing exists pursuant to a separate agreement with Cathay Bank. To the extent that discovery reveals otherwise, or reveals any facts that constitute actionable conduct against East West Bank, the Debtor will amend the Complaint. The Debtor owns certain commercial real property commonly known as: (i) Parcel 32: 5950 - 6016 Stevenson Boulevard and 40451 - 40495 Albrae Street; (ii) Parcel 34: 40525 Albrae Street; and (iii) Parcel 35: 5960 Stevenson Boulevard and 40505 - 40545 Albrae Street. The Property consists of four separate buildings and has approximately 370,019 square feet of rentable space on 25.07 acres of land. The Debtor acquired the Property in August 2005 for $23,000,000, which was funded in part by financing provided by Cathay Bank, pursuant to a joint participation agreement with East West Bank. In connection with the financing, the Debtor provided a deed of trust to Cathay Bank in the amount of $22,300,000. The secured financing was an "interest only" loan that called for a balloon payment of the principal balance on Aug. 1, 2007, Lawrence A. Jacobson, Esq., at Cohen and Jacobson, LLP, in Redwood City, California, relates. The Debtor and Cathay Bank subsequently extended the maturity date to Feb. 16, 2008, pursuant to a modification agreement, dated Nov. 28, 2007. On Mar. 11, 2008, the parties further extended the maturity date to Jan. 5, 2009. At the times relevant to the Complaint, the Debtor held four pertinent bank accounts at Cathay Bank. The Accounts, which have an approximate collective balance of $656,630, do not contain rents, and are not otherwise subject to any security interests of Cathay Bank, according to Mr. Jacobson. On July 18, 2011, pursuant to Section 542 of the Bankruptcy Code, which requires the turnover of all property of the Debtor, and the direction of the Office of the U.S. Trustee, which requires all of the Debtor's funds to be held in a debtor-in-possession account, one of the Debtor's representatives went to Cathay Bank in order to transfer the funds of the Account to a DIP Account. However, Cathay Bank refused to close any of the four Accounts and turn over the funds to the Debtor for placement in the DIP Account of otherwise. Cathay Bank asserted that it was withholding the Debtor's funds pursuant to "offset and/or other lien rights" and has otherwise stated that the Bank elected to refuse to turn over the funds as an exercise of possessory lien rights -- Election of Remedy, Mr. Jacobson relates. The Debtor demanded the turn over of funds, advising Cathay Bank several times that it had "improperly seized and/or offset the funds" and that the Bank was improperly denying the Debtor access to its monies. Cathay Bank continued to refuse to provide the Debtor access to the funds based upon its assertion of "offset and/or other lien rights" exercised against the Accounts. On Aug. 8, 2011, Cathay Bank filed its motion to prohibit the use of cash collateral and for adequate protection and an accompanying ex parte application for order shortening time, by which the Bank sought judicial approval of its actions by requesting that the Court approve its lien on the Debtor's Accounts and preclude the Debtor from spending the funds, which Cathay Bank had seized and refused to turn over. On Aug. 16, 2011, Cathay Bank, for the first time, admitted that it had not actually turned over any funds to the Debtor as alleged in the declaration of Greg Badura. On Aug. 17, one month after the Debtor had demanded turnover of its funds, counsel for Cathay Bank advised the Debtor's counsel that the Debtor will be receiving a cashier's check for two of its Accounts and that the payment is "not a concession or acknowledgment of your position on the matter," Mr. Jacobson relates. On Aug. 18, the Debtor's counsel received a check payable to the Debtor in the sum of $251,158, and another check in the sum of $4,251, stating that two of the Accounts are closed. "The delivery of the Cashier's Checks does not eradicate or alter the historical acts committed by the Bank in making its Election of Remedy, and does not nullify the consequences of the Election of Remedy," Mr. Jacobson states. Mr. Jacobson asserts that: * Any security interest claimed by Cathay Bank pursuant to the Deed of Trust, if any, has been waived by the Defendants' violation of the Security First Rule and as a result of the Election of Remedy. The Defendants have waived any security interest in the Property, are precluded from enforcing any security interest in the Property, are not entitled to foreclose on the Property, are not secured creditors, and are not entitled to the benefit of the provisions of the Bankruptcy Code pertaining to use of cash collateral; * The Defendants have waived any alleged security interest and, therefore, holds no rights in, liens upon, or claims against the Property. Accordingly, the Debtor is the rightful owner of the Property free and clear of any alleged or prior security interest of the Defendants. The Debtor is entitled to judgment quieting title to the Property in its name and free of any interest claimed by the Defendants pursuant to the Deed of Trust or otherwise, subject to remaining junior liens as set forth in the Debtor's schedules, plan, and disclosure statement; * As a result of the violation of the Security First Rule and the Election of Remedy, the Defendants' claim is unsecured, and the Deed of Trust is ineffectual because the alleged security interest has been waived. The Deed of Trust must be cancelled and expunged; * The Defendants' claim is unsecured and, therefore, the lien must be avoided pursuant to Section 544 of the Bankruptcy Code as being an ineffectual lien; * Because the Defendants' claim is unsecured, the purported lien is, therefore, void; and * Cathay Bank's acts were intentional and deliberate, and having been provided with the opportunity -- and demand -- to reverse the actions, the Bank instead has ratified its acts, confirmed the assertion of offset and liens, and indeed has sought judicial approval of its acts by the filing of its Cash Collateral Motion. The Debtor has been harmed by the violation of the automatic stay and has been caused to incur attorneys' fees and costs as a result of Cathay Bank's conduct. About China Village Milpitas, California-based China Village, LLC, is a limited liability company that was created on May 10, 2005. The members of the Debtor are Thomas Nguyen (8%), Joseph Nguyen (9%) and Tuyet Minh Le (83%). The Debtor is in the business of purchasing, leasing, renovating and selling commercial real property. The Debtor currently owns a significant commercial property in Fremont, California, that has 370,019 square feet of rentable space on 25.07 acres of land. China Village filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 10-60373) on Oct. 4, 2010. Lawrence A. Jacobson, Esq., and Sean M. Jacobson, Esq., at Cohen and Jacobson, LLP, assist the Debtor in its restructuring effort. R&K Interests, Inc. d/b/a Investors Property Services serves as the Debtor's property manager. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. CHINA VILLAGE: Cathay Bank Objects to Adequacy of Disclosures ------------------------------------------------------------- Cathay Bank, the primary secured creditor in the Chapter 11 case of China Village, LLC, objects to the adequacy of the modified disclosure statement explaining the Debtor's modified Chapter 11 plan of reorganization. In the Modified Disclosure Statement, filed Aug. 1, 2011, the Debtor stated that it modified the disclosures to address its recent discovery of certain bank accounts with a collective balance of $656,630. The Debtor asserts an interest in the accounts. The Debtor states that the modifications are primarily the administration of the recently discovered cash balances, including application of those funds for use in (a) making interest payments to Cathay Bank, (b) making necessary repairs to the Property, and (c) performing tenant improvements. The Bank objects to the adequacy of the Modified Disclosure Statement in that the Disclosure Statement does not contain adequate information as defined by Section 1125(a)(1) of the Bankruptcy Code. Specifically, the Bank complains, the Modified Disclosure Statement is inadequate in its statement and proposals regarding the Accounts. The Bank also asks the Court to extend the date by which it may make the election under Section 1111(b). Given the many uncertainties in the Modified Plan and Disclosure Statement, the deadline for the 1111(b) Election should be extended to and including the day on which the hearing on the confirmation of any plan of reorganization proposed by the Debtor actually commences. A full-text copy of the Modified Disclosure Statement is available for free at http://ResearchArchives.com/t/s?76ef About China Village Milpitas, California-based China Village, LLC, is a limited liability company that was created on May 10, 2005. The members of the Debtor are Thomas Nguyen (8%), Joseph Nguyen (9%) and Tuyet Minh Le (83%). The Debtor is in the business of purchasing, leasing, renovating and selling commercial real property. The Debtor currently owns a significant commercial property in Fremont, California, that has 370,019 square feet of rentable space on 25.07 acres of land. China Village filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 10-60373) on Oct. 4, 2010. Lawrence A. Jacobson, Esq., and Sean M. Jacobson, Esq., at Cohen and Jacobson, LLP, assist the Debtor in its restructuring effort. R&K Interests, Inc. d/b/a Investors Property Services serves as the Debtor's property manager. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. CKX INC: Moody's Withdraws 'B2' CFR as Loan Cancelled ----------------------------------------------------- Moody's Investors Service withdrew the B2 Corporate Family Rating (CFR), B2 Probability of Default Rating (PDR) previously assigned to CKX Entertainment, Inc. The B2 (LGD-4, 52%) rating on the company's proposed $360 million Senior Secured Notes, and Ba2 (LGD-1, 2%) rating on the $35 million 1st Lien Senior Secured Revolver were also withdrawn. The ratings were withdrawn as the company did not proceed with the debt transaction. These ratings and outlook have been withdrawn: Issuer: CKX Entertainment, Inc. Corporate Family Rating, B2, Withdrawn Probability of Default Rating, B2, Withdrawn Speculative Grade Liquidity Rating - SGL-2, Withdrawn $360 million Senior Secured Notes Due 2019, B2 (LGD-4, 52%), Withdrawn Issuer: CKX, Inc. New $35 million 1st Lien Senior Secured Revolver Due 2016, Ba2 (LGD-1, 2%), Withdrawn Stable outlook, Withdrawn CKX's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside CKX's core industry and believes CKX's ratings are comparable to those of other issuers with similar credit risk. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. CKX Entertainment, Inc. ("CKX"), with its headquarters in New York, owns and develops entertainment content worldwide. It holds rights to the name, image and likeness of Elvis Presley, Muhammad Ali, operations of Graceland and proprietary rights to the IDOLS television brand including the American Idol and So You Think You Can Dance series. The company has three reporting segments: 19 Entertainment (75% of 2010 revenues), Elvis Presley Enterprises (24%), and Muhammad Ali Enterprises (1%). For LTM through March 31, 2011 the company generated revenue of approximately $260 million. CLAIRE'S STORES: Bank Debt Trades at 14% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which Claire's Stores, Inc., is a borrower traded in the secondary market at 85.79 cents- on-the-dollar during the week ended Friday, Sept. 16, 2011, an increase of 0.67 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 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 104 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. * * * Claire's Stores, Inc., reported a net loss of $29.74 million on $704.99 million of net sales for the six months ended July 30, 2011, compared with a net loss of $20.64 million on $656.31 million of net sales for the same period a year ago. The Company's balance sheet at July 30, 2011, showed $2.83 billion in total assets, $2.87 billion in total liabilities, and a $40.81 million stockholders' deficit. * * * 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. As reported by the Troubled Company Reporter on March 15, 2011, Moody's upgraded Claire's Stores, Inc.'s senior secured bank credit facilities to 'B3' from 'Caa1' and its Speculative Grade Liquidity Rating to 'SGL-2' from 'SGL-3'. The rating outlook is positive. 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. CLIVER DEVELOPMENT: Case Summary & 7 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Cliver Development, Inc. P.O. Box 333 Edwards, CO 81632 Bankruptcy Case No.: 11-31857 Chapter 11 Petition Date: September 14, 2011 Court: U.S. Bankruptcy Court District of Colorado (Denver) Judge: Howard R. Tallman Debtor's Counsel: David Wadsworth, Esq. SENDER & WASSERMAN, P.C. 1660 Lincoln Street, Suite 2200 Denver, CO 80264 Tel: (303) 296-1999 Fax: (303) 296-7600 E-mail: dvw@sendwass.com - and - Regina Ries, Esq. SENDER & WASSERMAN, P.C. 1660 Lincoln Street, Suite 200 Denver, CO 80264 Tel: (303) 296-1999 E-mail: gries@sendwass.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Scott Cliver, president. Debtor's List of seven Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Great Midwest Banks Bank Loan $4,579,095 15900 West Bluemound Road Brookfield, WI 53005 Community Banks of Colorado Bank Loan $1,372,879 280 Main Street Edwards, CO 81632 Concierge Auctions, LLC -- $650,000 126 E. 56th Street, 25th Floor New York, NY 10022 LBX Financial Services Equipment Loan $62,509 Caterpillar Financial Services Equipment Loan $12,000 Corporation Robert L. Patton, Jr. -- $0 Slifer Smith & Frampton Real Estate-- $0 CN DRAGON: Posts $20,000 Net Loss in June 30 Quarter ---------------------------------------------------- CN Dragon Corporation filed its quarterly on Form 10-Q, reporting a net loss of $20,096 on $26,820 of revenues for the three months ended June 30, 2011, compared to net income of $24,523 on $363,524 of revenues for the same period ended June 30, 2010. The Company's balance sheet as of June 30, 2011, showed $1.7 million in total assets, $331,268 in total liabilities, all current, and stockholders' equity of $1.4 million. Albert Wong & Co., in Hong Kong, expressed substantial doubt about CN Dragon Corporation's ability to continue as a going concern, following the Company's results for the fiscal year ended March 31, 2011. The independent auditors noted that the Company has not generated significant revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. For the year ended March 31, 2011, the Company has generated revenue of $451,710 and has incurred an accumulated deficit $7,739,848. A complete text of the Form 10-Q is available for free at: http://is.gd/odTd33 About CN Dragon Based in Hong Kong, China, CN Dragon Corporation was incorporated under the laws of the State of Nevada on Aug. 30, 2001, under the name Infotec Business Systems, Inc. On June 8, 2007, the Company changed its name to Wavelit, Inc. On Sept. 14, 2009, the Company changed its name to CN Dragon Corporation and began new business operations in the PRC. On May 17, 2010, the Company acquired CNDC Corporation, as its wholly-owned subsidiary. On May 17, 2010, pursuant to the terms of the Agreement for Share Exchange, the Company acquired CNDC Corporation ("CNDC BVI"), and its wholly-owned subsidiaries, CN Dragon Holdings Limited ("CN Dragon Holdings") and Zhengzhou Dragon Business Limited ("Zhengzhou Dragon"). CNDC BVI was established under the laws of the British Virgin Islands on March 26, 2008. The Company currently operates through itself and two subsidiaries, CN Dragon Holdings Limited and Zhengzhou Dragon Business Limited which were incorporated in Hong Kong and the People's Republic of China (the PRC) respectively. The Company and its subsidiaries are engaged and specialized in investment, development and fund management in hospitality properties, as well as advisory and consulting services to the hospitality, tourism and real estate industries in the PRC. CONSOLIDATION SERVICES: Posts $721,000 Net Loss in Second Quarter ----------------------------------------------------------------- Consolidation Services, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $721,031 on $78,627 of oil and gas for the three months ended June 30, 2011, compared with a net loss of $1.6 million on $66,976 of oil and gas revenues for the same period last year. For the six months ended June 30, 2011, the Company had a net loss of $832,943 on $165,127 of oil and gas revenues, compared with a net loss of $1.7 million on $66,976 of oil and gas revenues for the same period in 2010. The Company's balance sheet at June 30, 2011, showed $5.2 million in total assets, $322,506 in total liabilities, and stockholders' equity of $4.9 million. GBH CPAs, PC, in Houston, Texas, expressed substantial doubt about Consolidation Services' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company sustained losses from operations for the year ended Dec. 31, 2010, of $13.2 million, has inadequate working capital to maintain or develop its operations, and is dependent upon funds from lenders, investors and the support of certain stockholders. A complete text of the Form 10-Q is available at: http://is.gd/Tdrabe Las Vegas, Nev.-based Consolidation Services, Inc., was incorporated in the State of Delaware on Jan. 26, 2007. The Company is engaged in the exploration and development of oil and gas properties in Kentucky and Tennessee. CRESTVIEW OPEN: Case Summary & 15 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Crestview Open MRI, Inc. 194 East Redstone Avenue, Suite A Crestview, FL 32539 Bankruptcy Case No.: 11-31526 Chapter 11 Petition Date: September 14, 2011 Court: U.S. Bankruptcy Court Northern District of Florida (Pensacola) Debtor's Counsel: Thomas B. Woodward, Esq. THOMAS B. WOODWARD, ATTY. P.O. Box 10058 Tallahassee, FL 32302 Tel: (850) 222-4818 Fax: (850) 561-3456 E-mail: woodylaw@embarqmail.com Scheduled Assets: $315,097 Scheduled Debts: $1,479,276 A list of the Company's 15 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flnb11-31526.pdf The petition was signed by Sue Cadnehead, president. H & A: Case Summary & Largest Unsecured Creditor ------------------------------------------------ Debtor: H & A Tujunga Property LLC 7001 Foothill Boulevard Tujunga, CA 91042 Bankruptcy Case No.: 11-48875 Chapter 11 Petition Date: September 13, 2011 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Sheri Bluebond Debtor's Counsel: Vakhe Khodzhayan, Esq. KG LAW 1010 N. Central Avenue, Suite 450 Glendale, CA 91202 Tel: (818) 245-1340 Fax: (818) 245-1341 E-mail: vahe@lawyer.com Scheduled Assets: $950,000 Scheduled Debts: $1,195,000 The petition was signed by Akop Dzhulakyan, president. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Akop Dzhulekyan 11-46751 08/29/11 The list of unsecured creditors filed together with its petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Lone Oak Fund, LLC Property $295,000 11611 San Vicente Boulevard, Suite 640 Los Angeles, CA 90049 CUMULUS MEDIA: FDIC Approves Pending Merger with Citadel -------------------------------------------------------- Cumulus Media Inc. and Citadel Broadcasting Corporation announced that the Federal Communications Commission has approved the pending merger of a wholly owned indirect subsidiary of Cumulus Media and Citadel. With this approval and the previously announced termination of the waiting period under the Hart-Scott- Rodino Antitrust Improvements Act of 1976, Cumulus Media and Citadel have now received all required regulatory approvals in connection with the Merger. As previously disclosed, in connection with the termination of the waiting period under the HSR Act, Cumulus Media will divest three radio stations in two markets - Flint, Michigan and Harrisburg, Pennsylvania. The Merger remains subject to approval by the stockholders of Citadel, as well as other customary closing conditions. Also as previously disclosed, Citadel's special meeting of stockholders to approve the Merger will be held on Thursday, Sept. 15, 2011, and the deadline for Citadel's stockholders to make an election with respect to the consideration they wish to receive in the Merger is 5:00 p.m., New York City time, also on Sept. 15, 2011. About Cumulus Media Based in Atlanta, Georgia, Cumulus Media Inc. (NASDAQ: CMLS) -- http://www.cumulus.com/-- is the second largest radio broadcaster in the United States based on station count, controlling 350 radio stations in 68 U.S. media markets. In combination with its affiliate, Cumulus Media Partners, LLC, the Company believes it is the fourth largest radio broadcast company in the United States when based on net revenues. The Company's balance sheet at June 30, 2011, showed $367.20 million in total assets, $689.67 million in total liabilities, and a $322.47 million total stockholders' deficit. * * * Standard & Poor's Ratings Services said April it raised its corporate credit rating on Atlanta-based Cumulus Media Inc. to 'B' from 'B-'. "The rating remains on CreditWatch, where we placed it with positive implications Feb. 18, 2011," S&P stated. Moody's Investors Service in April upgraded Cumulus Media's Corporate Family Rating to 'B1' from 'Caa1' due to the company's pending acquisition of CMP Susquehanna Corp. in the second quarter of 2011 followed by the announced $2.4 billion acquisition of Citadel Broadcasting Corporation later this year. CYBERDEFENDER CORP: Posts $6.6 Million Net Loss in Second Quarter ----------------------------------------------------------------- CyberDefender Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $6.6 million on $12.7 million of revenues for the three months ended June 30, 2011, compared with a net loss of $12.0 million on $9.7 million of revenues for the same period last year. For the six months ended June 30, 2011, the Company had a net loss of $12.6 million on $28.1 million of revenues, compared with a net loss of $20.3 million on $19.2 million of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $7.9 million in total assets, $40.6 million in total liabilities, and a stockholders' deficit of $32.7 million. The Company has experienced operating losses for the last five fiscal years. Management has implemented plans to continue to build its revenue base, expand sales and marketing and improve operations, however, through June 30, 2011, the Company continued to operate at negative cash flow. As of June 30, 2011, and Dec. 31, 2010, the Company had an accumulated deficit in retained earnings of $97.1 million and $84.5 million, respectively. Subsequent to the close of the second quarter, the Company closed a $1.5 million private offering of subordinated convertible promissory notes to accredited investors. The Company believes, but cannot ensure, that the $1.5 million will be sufficient to permit the Company to continue to operate until it can secure the additional financing during the next 60 days that it requires to continue to operate as a going concern. "However, if the efforts noted above are not successful, it would raise substantial doubt about the Company's ability to continue as a going concern," the Company said in the filing. May Consider Bankruptcy "We are presently engaged in active discussions for additional investments by existing and prospective investors but we have no funding commitments in place at this time and we can give no assurance that such capital will be available on favorable terms, or at all. If we cannot obtain financing, then we may be forced to further curtail our operations, or possibly be forced to evaluate a sale or consider other strategic alternatives such as bankruptcy." A complete text of the Form 10-Q is available for free at: http://is.gd/58iYPk Los Angeles, Calif.-based CyberDefender Corporation is a provider of remote LiveTech services and security and computer optimization software and to the consumer and small business market. The Company's mission is to bring to market advanced solutions to protect computer users against Internet viruses, spyware, identity theft and related security threats. DAIS ANALYTIC: Has New Three-Year Contract with CEO --------------------------------------------------- Dais Analytic Corporation entered into an amended and restated employment agreement with Mr. Timothy N. Tangredi, the Company's president, chief executive officer, and director, dated as of Sept. 14, 2011, which sets forth Mr. Tangredi's compensation level and eligibility for salary increases, bonuses, benefits, and option grants. Mr. Tangredi's employment agreement provides for an initial term of three years commencing on Sept. 14, 2011, with the term extending on the second anniversary thereof for an additional two-year period and on each subsequent anniversary of the commencement date for an additional year period. Under the agreement Mr. Tangredi's initial base salary is $200,000. Mr. Tangredi's base salary will be increased annually, if applicable, by a sum equal to his current base salary multiplied by one third of the percentage increase in the Company's yearly revenue compared to the Company's prior fiscal year revenue; provided however any annual increase in Mr. Tangredi's base salary will not exceed a maximum of 50% for any given year. Any further increase in Mr. Tangredi's base salary will be at the sole discretion of the Company's board of directors or compensation committee. Additionally, at the discretion of the Company's board of directors and its compensation committee, Mr. Tangredi may be eligible for an annual bonus of up to 100% of his then-effective base salary, if he meets or exceeds certain annual performance goals established by the board of directors. In addition to this bonus, Mr. Tangredi may be eligible for a separate merit bonus if approved by the board of directors, for specific extraordinary events or achievements such as a sale of a division, major license or distribution arrangement or merger. Mr. Tangredi is entitled to medical, disability and life insurance, as well as four weeks of paid vacation annually, an automobile allowance, reimbursement of all reasonable business expenses, automobile insurance and maintenance, and executive conference or educational expenses. A full-text copy of the Amended and Restated Employment Agreement is available for free at http://is.gd/C6HASo About Dais Analytic Odessa, Fla.-based Dais Analytic Corporation has developed and patented a nano-structure polymer technology, which is being commercialized in products based on the functionality of these materials. The initial product focus of the Company is ConsERV, an energy recovery ventilator. The Company also has new product applications in various developmental stages. The Company reported a net loss of $1.43 million on $3.34 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $7.12 million on $1.53 million of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $2.97 million in total assets, $9.29 million in total liabilities and a $6.32 million total stockholders' deficit. Cross, Fernandez & Riley LLP, in Orlando, Fla., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company has incurred significant losses since inception and has a working capital deficit and stockholders' deficit of $2,861,448 and $6,722,092 at Dec. 31, 2010. DBSD NORTH AMERICA: Sprint Seeks $110 Million Reimbursement ----------------------------------------------------------- Kaitlin Ugolik at Bankruptcy Law360 reports that Sprint Nextel Corp. on Wednesday asked a New York bankruptcy judge to require DBSD North America Inc. to reimburse the telecom giant for its $110 million share of the costs of clearing the spectrum to make room for DBSD and other mobile satellite services. About DBSD North America Headquartered in Reston, Virginia, DBSD North America Inc., aka ICO Member Services Inc., offers satellite communications services. It has launched a satellite, but is in the developmental stages of creating a satellite system with components in space and on earth. It presently has no revenues. The Company and nine of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-13061) on May 15, 2009. James H.M. Sprayregen, Esq., and Christopher J. Marcus, Esq., at Kirkland & Ellis LLP, in New York; and Marc J. Carmel, Esq., and Sienna R. Singer, Esq., at Kirkland & Ellis LLP, in Chicago, serve as the Debtors' counsel. Jefferies & Company is the financial advisors to the Debtors. The Garden City Group Inc. is the claims agent for the Debtors. DBSD estimated assets and debts of $500 million to $1 billion in its Chapter 11 petition. Timothy A. Barnes, Esq., and Steven J. Reisman, Esq., at Curtis, Mallet-Prevost, Colt & Mosle LLP, in New York, represent the Official Committee of Unsecured Creditors. The ad hoc committee of certain parties that hold or manage holdings of those certain 7.5% Convertible Senior Secured Notes due 2009 issued by DBSD is represented by Dennis F. Dunne, Esq., Risa M. Rosenberg, Esq., and Jeremy S. Sussman, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, DC. Sprint Nextel is represented by Eric Moser, Esq., at K&L Gates LLP, in New York; and John H. Culver III, Esq., and Felton E. Parrish, Esq., at K&L Gates LLP, in Charlotte, North Carolina. DISH is represented in the case by J. Eric Ivester, Esq., at Skadden Arps Slate Meagher & Flom LLP, in New York. DENNY'S CORP: Board Appoints George Haywood as Director ------------------------------------------------------- The Board of Directors of Denny's Corporation appointed George W. Haywood to serve as a director of the Company. Mr. Haywood will be paid the same rate of compensation as the Company's other non- employee directors, which includes cash payments of $75,000 per year, payable in quarterly installments of $18,750, and an annual award of deferred stock units, valued at $75,000. Mr. Haywood will receive a pro-rata portion of these cash and equity awards granted to directors for the remaining 2011/2012 board term. There are no arrangements between Mr. Haywood and any other person pursuant to which Mr. Haywood was selected as a director, nor are there any transactions to which the Company or any subsidiary thereof is a party and in which Mr. Haywood has a material interest subject to disclosure under Item 404(a) of Regulation S- K. Mr. Haywood will serve on the Audit and Finance Committee of the Board. About Denny's Corporation Based in Spartanburg, South Carolina, Denny's Corporation (NASDAQ: DENN) -- http://www.dennys.com/-- Denny's is one of America's largest full-service family restaurant chains, consisting of 1,348 franchised and licensed units and 232 company-owned units, with operations in the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico. The Company's balance sheet at June 29, 2011, showed $286.66 million in total assets, $386.94 million in total liabilities, and a $99.52 million total shareholders' deficit. Denny's carries 'B2' corporate family and probability of default ratings from Moody's Investors Service and a 'B+' corporate credit rating from Standard & Poor's. DENNY'S CORP: S&P Affirms B+ Corp. Credit Rating; Outlook Stable ---------------------------------------------------------------- Standard & Poor's Ratings Services revised the recovery rating on Denny's Inc.'s $300 million credit facility to '3' from '4', indicating the expectation for meaningful (50%-70%) recovery in the event of a payment default. The recovery rating revision reflects the company's progress in debt reduction, which results in better recovery prospects for lenders in the event of a payment default. "At the same time, we affirmed our 'B+' corporate credit rating on parent Denny's Corp. The outlook is stable," S&P said. "The ratings on Denny's reflect our expectation that its credit metrics will remain adequate for the current rating as the company continues to pay down debt and benefits from its refranchising program," said Standard & Poor's credit analyst Mariola Borysiak. "We assess the company's financial risk profile as aggressive," she added, "though it continues to strengthen its balance sheet, having repaid about $20 million of debt during the first two quarters of fiscal 2011." "However, we anticipate that a difficult operating environment, still-high unemployment, and increasing commodity costs will weigh on profitability for the remainder of 2011. As such, we expect only modest improvement of credit measures, with leverage remaining close to the current 4.5x. In addition, we expect EBITDA interest coverage to improve to the high-2x area, from the current 2.4x at June 29, 2011, as a result of lower interest expense following the re-pricing of the credit facility in March 2011 and lower debt balances. These ratios are somewhat better than medians for the 'B' category." DLH MASTER: Committee Announces Departure of Barrier Officer ------------------------------------------------------------ The Official Committee of Unsecured Creditors advised the U.S. Bankruptcy Court for the Northern District of Texas that Jeffrey Jones, former managing director of Barrier Advisors Inc., is now employed by Security Holdings. Barrier Advisors serves as financial advisor of the Committee. Prior to his departure from Barrier Advisors, Mr. Jones prepared a written expert report regarding an analysis of market interest rates in anticipation of the hearing on the confirmation of DLH Master Land Holding LLC and Allen Capital Partners LLC's reorganization plan. Although no longer employed by Barrier Advisors, Mr. Jones will make himself available to testify at the confirmation hearing, according to the Committee. Barrier Advisors will seek payment from the Debtors' estates for professional time incurred by Mr. Jones. Mr. Jones will be compensated directly by Barrier Advisors pursuant to a separate agreement he entered with the firm. Security Holdings does not hold or represent interest adverse to the Debtors' estates with respect to the matters upon which Mr. Jones is to provide professional services, according to the Committee's Texas-based counsel, Cole, Schotz, Meisel, Forman & Leonard P.A. About Allen Capital Allen Capital Partners LLC and subsidiary DLH Master Land Holding LLC, are the developers of Dallas Logistics Hub, a 6,000-acre multimodal logistics park 12 miles (19 kilometers) from downtown Dallas. Allen Capital Partners, LLC, dba The Allen Group, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 10- 30562) on Jan. 25, 2010. Mark MacDonald, Esq., at MacDonald + MacDonald, P.C., represents the Debtor. Lain, Faulkner & Co. is the Debtor's financial advisor. The Company disclosed $220,325,201 in assets and $160,622,236 in liabilities as of the Chapter 11 filing. The Debtor's affiliate -- DLH Master Land Holding, LLC, dba The Allen Group -- filed a separate Chapter 11 bankruptcy petition. Another affiliate, Visalia, California-based Richard S. Allen, Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Texas Case No. 10-33211) on May 3, 2010. Patrick J. Neligan, Jr., Esq., at Neligan Foley LLP, represents the Debtor. The Company disclosed $76,158,469 in assets and $53,728,982 in liabilities as of the petition date. The Debtors' proposed Reorganization Plan contemplates that the Debtors will obtain sufficient exit financing from sales and loans from insiders to enable them to pay all Administrative and non-tax Priority Claims in full on the effective date. No trustee or examiner has been appointed in any of the cases administratively consolidated with those of the Debtors. An Official Committee of Unsecured Creditors has been appointed. DOT VN: Delays Filing of July 31 Form 10-Q ------------------------------------------ Dot VN, Inc., was unable to file its Form 10-Q for the period ending July 31, 2011, within the prescribed period, because during its final review of such period's results, it was determined that a convertible debenture may contain an embedded derivative instrument subject Financial Accounting Standards Board Accounting Standards Codification Topic 815. This matter could not be resolved by the required filing date without unreasonable effort and expense. About Dot VN Dot VN, Inc. (OTC BB: DTVI) -- http://www.DotVN.com/-- provides Internet and telecommunication services for Vietnam and operates and manages Vietnam's innovative online media web property, www.INFO.VN. The Company is the "exclusive online global domain name registrar for .VN (Vietnam)." Dot VN is the sole distributor of Micro-Modular Data Centers(TM) solutions and E-Link 1000EXR Wireless Gigabit Radios to Vietnam and Southeast Asia region. Dot VN is headquartered in San Diego, California with offices in Hanoi, Danang and Ho Chi Minh City, Vietnam. Dot VN was incorporated in the State of Delaware on May 27, 1998, under the name Trincomali Ltd. The Company reported a net loss of $5 million on $1.01 million of revenue for the year ended April 30, 2011, compared with a net loss of $7.32 million on $1.12 million of revenue during the prior year. The Company's balance sheet at April 30, 2011, showed $2.76 million in total assets, $8.77 million in total liabilities, and a $6.01 million total shareholders' deficit. PLS CPA, in San Diego, Calif., noted that the Company's losses from operations raise substantial doubt about its ability to continue as a going concern. EAST HARLEM: Case Summary & 5 Largest Unsecured Creditors --------------------------------------------------------- Debtor: East Harlem Property Holdings, LP 229 Linwood Avenue Cedarhurst, NY 11516 Bankruptcy Case No.: 11-14368 Chapter 11 Petition Date: September 15, 2011 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Judge: James M. Peck Debtor's Counsel: Adam P. Wofse, Esq. LAMONICA HERBST & MANISCALCO, LLP 3305 Jerusalem Avenue, Suite 201 Wantagh, NY 11793 Tel: (516) 826-6500 Fax: (516) 826-0222 E-mail: awofse@lhmlawfirm.com Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Linda Greenfield, vice president of Harlem Housing, LLC, sole and managing member of East Harlem GP, LLC, general partner. Debtor's List of five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Philips International Holding Corp.-- $190,000 295 Madison Avenue, 2nd Floor New York, NY 10017 June Diamant -- $14,589 229 Linwood Avenue Cedarhurst, NY 11516 Margolin, Winer & Evens LLP -- $13,125 400 Garden City Plaza Garden City, NY 11530 Corporation Service Company -- $6,483 Robyn Tuerk -- $5,000 EL PASO PIPELINE: S&P Gives 'BB' to $500-Mil. Sr. Unsec. Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' senior unsecured debt rating to operating company El Paso Pipeline Partners Operating Co. LLC's $500 million senior unsecured notes due 2021. "We placed the rating on CreditWatch with positive implications. At the same time, we assigned a recovery rating of '4', indicating our expectation that creditors can expect average (30% to 50%) recovery if a payment default occurs. El Paso Pipeline Partners L.P. fully and unconditionally guarantees the notes. The partnership intends to use the net proceeds from the offering to reduce outstanding borrowings under its revolving credit facility and for general partnership purposes," S&P related. "Our 'BB' long-term corporate credit rating on El Paso Pipeline Partners L.P. is tied to our rating on El Paso Corp. The ratings are on CreditWatch with positive implications. (For the corporate credit rating rationale, see our summary analysis on El Paso Pipeline Partners L.P. published July 12, 2011 on RatingsDirect.)," S&P said Ratings List New Ratings El Paso Pipeline Partners Operating Co. LLC $500 mil senior unsecured notes due 2021 BB/Watch Pos Recovery rating 4 ENDURANCE INT'L: Moody's Assigns 'B2' CFR; Outlook Stable --------------------------------------------------------- Moody's Investors Service assigned to The Endurance International Group, Inc. a first-time B2 Corporate Family Rating (CFR), a B3 Probability of Default Rating (PDR), and a B2 rating to its proposed $340 million of first lien credit facilities comprising a $35 million revolving credit facility and a $305 million term loan. The outlook for the ratings is stable. RATINGS RATIONALE The B2 CFR reflects Endurance's limited scale in the highly competitive web-hosting and online business services industry. The industry is characterized by low average revenues per customer, relatively few barriers to entry, modest pricing power and a fragmented and evolving market in which a strong competitor (Go Daddy, CFR B1) has a leading market share. The rating is additionally constrained by the company's historically debt-funded acquisitive growth strategy and the potential for increase in debt to drive shareholder returns in the intermediate-to-long term. In Moody's opinion, Endurance should continue to benefit from the secular growth in spending by small- and medium-sized enterprises to establish and enhance their presence on the Internet and growing consumer Internet usage. Endurance's B2 rating is supported by its moderate financial risk profile (about 3.5x Total Debt/Cash flow from operations plus interest expense, pro forma for the proposed refinancing and full year effect of acquisitions) relative to its B2 rating, the company's track record of integrating numerous acquisitions, and Moody's expectations that Endurance should produce cash flow from operations in excess of $80 million in 2012. Although Endurance has historically generated very modest levels of earnings and operating cash flows, the company expects its cash flows to grow strongly in the near term, primarily as a result of the five acquisitions consummated since the beginning of 2010. While Moody's expects Endurance to achieve the pending synergies from its acquisitions, the rating incorporates Endurance's heightened execution risk of maintaining organic growth and realizing anticipated cash flows while undergoing a rapid expansion in scale. The stable outlook is based on Moody's expectations that Endurance will produce cash flow from operations in excess of 20% of its total debt over the next 12 to 18 months, its gross subscriber addition rates will remain strong, and that it will maintain stable monthly subscriber churn rates of about 2%. Given Endurance's limited operating scale and expected levels of earnings, a rating upgrade is less likely in the near term. However, upward rating momentum could develop if Endurance's sustained growth in profitability leads to robust operating cash flow generation and the company maintains a conservatively leveraged balance sheet such that cash flow from operations exceeds 25% of total debt. Conversely, the rating could be downgraded if EBITDA margins deteriorate or cash generation falls short of expectations as a result of increasing competition, erosion in customer base, weaker-than-expected organic growth, or challenges in business execution. Additionally, a weaker credit profile resulting from aggressive financial policies could trigger a downgrade. Moody's could downgrade Endurance's rating if growth in cash flow from operation does not materialize and cash flow from operations/total debt ratio approaches 15%. Endurance's financial sponsors will use the net proceeds from the term loan offering to refinance the company's existing indebtedness and for general corporate purposes. Assignments: Issuer: Endurance International Group, Inc. (The) -- Corporate Family Rating, Assigned B2 -- Probability of Default Rating, Assigned B3 -- $35 million Senior secured revolving credit facility due 2016, Assigned B2, LGD3, 35% -- $305 million Senior secured term loan due 2017, Assigned B2, LGD3, 35% Outlook Action Outlook: Stable The principal methodology used in rating Endurance was the Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Burlington, MA, Endurance provides an array of online services primarily to small and medium-sized businesses. EPICEPT CORP: Moves Listing from Nasdaq to OTCQX ------------------------------------------------ EpiCept Corporation, on Sept. 15, 2011, notified Nasdaq that it will be transferring the listing of its common stock in the U.S. from the Nasdaq Capital Market to the OTCQX U.S. trading platform effective Sept. 19, 2011. This action was approved by the Company's Board of Directors on Sept. 9, 2011. EpiCept will maintain its primary listing on the Nasdaq OMX Stockholm Exchange. The Company's ticker symbol on OTCQX will remain "EPCT". About EpiCept Corporation Tarrytown, N.Y.-based EpiCept Corporation (Nasdaq and Nasdaq OMX Stockholm Exchange: EPCT) -- http://www.epicept.com/-- is focused on the development and commercialization of pharmaceutical products for the treatment of cancer and pain. The Company's lead product is Ceplene(R), approved in the European Union for the remission maintenance and prevention of relapse in adult patients with Acute Myeloid Leukemia (AML) in first remission. In the United States, a pivotal trial is scheduled to commence in 2011. The Company has two other oncology drug candidates currently in clinical development that were discovered using in-house technology and have been shown to act as vascular disruption agents in a variety of solid tumors. The Company's pain portfolio includes EpiCept(TM) NP-1, a prescription topical analgesic cream in late-stage clinical development designed to provide effective long-term relief of pain associated with peripheral neuropathies. The Company reported a net loss of $15.54 million on $994,000 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $38.81 million on $414,000 of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $16.84 million in total assets, $26.57 million in total liabilities, and a $9.72 million total stockholders' deficit. The Company's recurring losses from operations and the Company's stockholders' deficit raise substantial doubt about its ability to continue as a going concern and, as a result, the Company's independent registered public accounting firm, Deloitte & Touche LLP, in Parsippany, New Jersey, included an explanatory paragraph in its report on the Company's consolidated financial statements for the year ended Dec. 31, 2010, which was included in our Annual Report on Form 10-K, with respect to this uncertainty. EVERGREEN ENERGY: Completes Penrhyn Coal Testing Using K-Fuel ------------------------------------------------------------- Evergreen Energy Inc. announced that it had successfully completed its Penrhyn coal testing utilizing Evergreen's patented K-Fuel upgrading process. The Penrhyn coal deposit is located in South Australia and a drilling to date has confirmed a JORC compliant measured and indicated resource of 352.4 million metric tons of coal with an additional exploration target of a further 300 to 330 million metric tons of coal. The Penrhyn coal deposit is owned by Southern Coal Holdings, a joint venture between WPG Resources Limited and Evergreen. On Aug. 23, 2011, Evergreen announced that it had upgraded Penrhyn coal to K-Fuel with heating values greater than 5,500 kcal/kg prior to the rehydration necessary for shipping and storage. Further testing has now provided a more comprehensive view of the product quality from the Penrhyn deposit. "We are particularly pleased with the K-Fuel process and our ability to upgrade the Penrhyn coal to an export grade fuel product with a heating value that is shippable of at least 5,000 kcal/kg. This represents an increase of approximately 25% to 40% over the unprocessed coal. Additionally, the K-Fuel process has reduced sodium by up to 50%, and chloride by up to 70% in the final product," said Ilyas Khan, Evergreen's Chairman. "These testing results are a milestone for the WPG and Evergreen stakeholders, as well as the clean coal industry. Our completed testing confirms that a latent sub-bituminous coal deposit in Penrhyn can be upgraded to thermal coal quality. Our results are in-line or in excess of expectations and continue to demonstrate the potential for the K-Fuel process to add value to low rank coal resources around the world. Our team will continue working to further enhance the value of the K-Fuel process. In parallel, we are working towards completing pre-feasibility studies for mine and K-Fuel plant developments for the Penrhyn and Lochiel North coal deposits." Wayne Rossiter, CEO of SCH commented "[T]hese testing results are an important milestone in underpinning our business model for the development of a low ranking coal beneficiation business in Australia using the proven K-Fuel process." About Evergreen Energy Evergreen Energy Inc. has developed two, proprietary, patented, and green technologies: the GreenCert(TM) suite of software and services and K-Fuel(R). GreenCert, which is owned exclusively by Evergreen, is a science-based, scalable family of environmental intelligence solutions that quantify process efficiency and greenhouse gas emissions from energy, industrial and agricultural sources and may be used to create verifiable emission reduction credits. K-Fuel technology significantly improves the performance of low-rank coals, yielding higher efficiency and lowering emissions. The Company reported a net loss of $21.02 million on $403,000 of total operating revenue for the year ended Dec. 31, 2010, compared with a net loss of $58.53 million on $423,000 of total operating revenue during the prior year. Hein & Associates LLP, in Denver, Colo., expressed substantial doubt about Evergreen Energy's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has had recurring cash used in operations. The Company's balance sheet at June 30, 2011, showed $24.54 million in total assets, $21.52 million in total liabilities, $2,000 in preferred stock, and $3.02 million in total stockholders' equity. EVERGREEN SOLAR: Sues Unsecured Bondholders to Reclaim $4MM ----------------------------------------------------------- Dow Jones' DBR Small Cap reports that Evergreen Solar Inc. is suing unsecured bondholders to reclaim $4 million in interest payments it handed out five days before filing for Chapter 11 bankruptcy protection. 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. FOSTER CONDOMINIUM: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Foster Condominium Corp. 2911 North Cicero Avenue Chicago, IL 60641 Bankruptcy Case No.: 11-37196 Chapter 11 Petition Date: September 13, 2011 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Jack B. Schmetterer Debtor's Counsel: Bruce E de'Medici, Esq. BELONGIA, SHAPIRO & FRANKLIN, LLP 20 S. Clark Street, Suite 300 Chicago, IL 60603 Tel: (312) 662-1030 Fax: (312) 662-1040 E-mail: bdemedici@belongialaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Robert J. Ralis, president. FULL CIRCLE: Can Access $1.25 Million DIP Facility to Buy Cows -------------------------------------------------------------- Judge Jerry A. Funk of the U.S. Bankruptcy Court for the Middle District of Florida has authorized Full Circle Dairy, LLC, to obtain secured credit of up to $1,250,000 from Damascus Peanut Company for the purchase of approximately 750 additional producing dairy cows over a four-month period. The Debtor says that purchase will generate additional cash flow for the payment of the Debtor's continued operations and the payments to its creditors under a Plan of Reorganization. As reported in the Troubled Company Reporter on July 11, 2011, interest on the loan will be 10% p.a. payable monthly and the balance of the loan will mature on the earliest of: (a) 48 months from date of execution, (b) the Effective Date of the Debtor's Plan of Reorganization, and (c) the occurrence of an event of default. Damascus will be secured by a priming lien ahead of SunTrust's liens on all new cattle purchased with the proceeds of the Loan Facility, their offspring, and all proceeds thereof; and a first- priority, priming lien on all property of the Debtor or its estate, other than real estate owned by the Debtor, including all cattle currently owned by FCD, and their offspring; (b) all milk inventories; (c) all milk and feed receivables; (d) all cash generated from those receivables; (e) all feed inventories and feed supplies and (f) the products and proceeds of those collateral accounts whether now or hereinafter acquired as a result of operations. The Debtor believes that the additional herd expansion will allow it to significantly increase its financial position and confirm a Chapter 11 Plan, and will cause a similar strengthening of SunTrust's collateral position. As of the Petition Date, substantially all of the Debtor's property used in the operation of its business was subject to a pre-petition security interest owned by SunTrust, securing three separate but related credit facilities; a real estate loan, a revolving working capital loan, and a livestock loan. About Full Circle Dairy Full Circle Dairy, LLC, operates a dairy in Lee, Florida. It filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-06895) on Aug. 9, 2010. Robert D Wilcox, Esq., at Brennan, Manna & Diamond, PL, in Jacksonville, Fla., represents the Debtor. The official committee of unsecured creditors in the Chapter 11 case has tapped John T. Rogerson, III, Esq., at Volpe, Bajalia, Wickes, Rogerson & Wachs, P.A., in Jacksonville, Fla., as counsel. The Company disclosed $14,281,637 in assets and $12,879,703 in liabilities as of the Petition Date. FULL CIRCLE: Motion to Buy $900,000 in Livestock Denied ------------------------------------------------------- The Hon. Jerry A. Funk has denied as to the issues remaining on Full Circle Dairy, LLC's motion for entry of an order to purchase on the open market $900,000 worth of milk cows. The Debtor will release to Sun Trust Bank $100,000 of proceeds remaining from the Debtor's assumption and modification of its option and lease agreement with Damascus Peanut Company which funds will be applied to the principal balance due on the SunTrust Cattle Note. The Debtor is attempting to build up its livestock inventory to a satisfactory level. It currently has 2,050 cows, of which approximately 1,712 are in full production, while its facility is designed to accommodate over 3,000 cows. The Debtor will use the available cash to purchase cows, at the current market price of approximately $1,500 per milk cow. The purchase of the approximately 600 cows will add at least $1.2 million to the Debtor's net annual revenue. About Full Circle Dairy Full Circle Dairy, LLC, operates a dairy in Lee, Florida. It filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-06895) on Aug. 9, 2010. Robert D Wilcox, Esq., at Brennan, Manna & Diamond, PL, in Jacksonville, Fla., represents the Debtor. The official committee of unsecured creditors in the Chapter 11 case has tapped John T. Rogerson, III, Esq., at Volpe, Bajalia, Wickes, Rogerson & Wachs, P.A., in Jacksonville, Fla., as counsel. The Company disclosed $14,281,637 in assets and $12,879,703 in liabilities as of the Petition Date. GAMETECH INT'L: Delays Filing of Quarterly Report on Form 10-Q -------------------------------------------------------------- GameTech International, Inc., was unable to file its Form 10-Q for the 13-week period ended July 31, 2011, within the prescribed time period without unreasonable effort and expense, due to the efforts required to complete an annual interim review of the valuation of its goodwill, long-lived assets, and intangible assets pursuant to ASC 350 - "Intangibles-Goodwill and Other" and ASC 360 - "Property, Plant, and Equipment". While the Company is not expected to record a significant impairment charge to its goodwill, long-lived assets, or intangible assets within the thirteen weeks ended July 31, 2011, the Company requires additional time to file the Report to appropriately complete its assessment and review of the valuation of its goodwill, long-lived assets, and intangible assets. The Company hopes to complete this analysis and file the Report no later than Sept. 19, 2010, as prescribed by Rule 12b-25. About GameTech International Based in Reno, Nevada, GameTech develops and manufactures gaming entertainment products and systems. GameTech holds a significant position in the North American bingo market with its interactive electronic bingo systems, portable and fixed-based gaming units, and complete hall management modules. It also holds a significant position in select North American VLT markets, primarily Montana, Louisiana, and South Dakota, where it offers video lottery terminals and related gaming equipment and software. It also offers Class III slot machines and server-based gaming systems. The Company reported a net loss of $20.4 million on $35.2 million of revenue for the 52 weeks ended Oct. 31, 2010, compared with a net loss of $10.5 million on $47.8 million of revenue for the 52 weeks ended Nov. 1, 2009. Piercy Bowler Taylor & Kern, in Las Vegas, Nevada, expressed substantial doubt about GameTech International, Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has suffered reoccurring losses from operations and has been unable to extend the maturity of its debt, or raise additional capital necessary to execute its business plan. The Company's balance sheet at May 1, 2011, showed $40.19 million in total assets, $32.33 million in total liabilities and $7.86 million in total stockholders' equity. GAS CITY: Hearing on Case Dismissal Plea, et al., Set for Sept. 21 ------------------------------------------------------------------ The Hon. Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District of Illinois will convene a hearing on Sept. 21, 2011, at 10:00 a.m. (Central time) to consider Gas City, Ltd., et al.'s requests: (a) approving procedures for (i) the distribution of remaining funds under global settlement agreement, and (ii) the dismissal of the Debtors' Chapter 11 cases; and (b) dismissing the Debtors' Chapter 11 cases. Objections were due Sept. 14, 2011. About Gas City Gas City Ltd. -- http://www.gascity.net/-- based in Frankfort, Illinois, is an independent petroleum marketer with locations in Northeast Illinois, Northwest Indiana, Florida and Arizona. Gas City sought Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-47879) on Oct. 26, 2010, estimating assets at $50 million to $100 million and debts at $100 million to $500 million. Gas City's parent, the William J. McEnery Revocable Trust dated Apr. 22, 1993, filed a separate Chapter 11 petition (Bankr. N.D. Ill. Case No. 10-47895). Paul V. Possinger, Esq., Mark K. Thomas, Esq., Grayson T. Walter, Esq., at Proskauer Rose LLP, in Chicago; and Daniel A. Zazove, Esq., and Kathleen A. Stetsko, Esq., at Perkins Coie LLP, in Chicago, represent the Debtors. A. Jeffrey Zappone at Conway Mackenzie is the Debtors' chief restructuring officer. Kurtzman Carson Consultants is the Debtors' claims agent. Gas City disclosed $66,307,812 in assets and $209,577,690 in liabilities as of the Chapter 11 filing. The Official Committee of Unsecured Creditors has tapped Pachulski Stang Ziehl & Jones LLP and Levenfeld Pearlstein, LLC, as co- counsel and Mesirow Financial Consulting, LLC, as financial advisors. GAS CITY: Trustee OK'd to Execute Deeds in Lieu of Foreclosure -------------------------------------------------------------- The Hon. Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District of Illinois authorized William J. McEnery, as trustee of The William J. McEnery Revocable Trust Dated 4/22/1993, to execute the deeds in lieu of foreclosure and other documents required to facilitate the transfer of Gas City, Ltd., et al.'s properties to Standard Bank and Trust Company. As reported in the Troubled Company Reporter on July 7, 2011, Standard Bank asked the Court authorize the trustee to execute the agreed upon deeds in lieu of foreclosure of certain parcels of improved real property owned by The McEnery Trust. On Feb. 18, 2011, Standard Bank, who extended a prepetition loan totaling $8,740,000 to McEnery, filed a motion for relief from the automatic stay as to: -- the McEnery Residence located at 13015 W. 151st Street, in Homer Glen, Illinois; -- the Boca Raton Condominium located at 350 S. Ocean Blvd., Unit 4C, in Boca Raton, Florida; and -- Bell Valley Farm located on the South Side of 151st Street, west of Bell Road, in Homer Glen, Illinois. On March 1, 2011, the Court granting Standard Bank's motion. Subsequent to the Court granting relief from the automatic stay, Standard Bank and The McEnery Trust agreed to terms for the disposition and turnover of the properties from The McEnery Trust to Standard Bank pursuant to two deeds in lieu of foreclosure to be executed by McEnery, as trustee of The McEnery Trust, and McEnery, individually. The first deed in lieu of foreclosure, and accompanying documents, would transfer title of the McEnery Residence and Bell Valley Farm to Standard Bank. The second deed in lieu of foreclosure, and accompanying documents, would transfer title of the Boca Raton Condominium to Standard Bank. Pursuant to the terms of the agreement between The McEnery Trust and Standard Bank, the deeds in lieu would be executed and the properties would be transferred to Standard Bank on or before June 30, 2011. Since the filing of its involuntary case on June 21, 2011, The McEnery Trust has expressed concern regarding the execution of the deeds in lieu on the belief that McEnery cannot execute the Deeds in Lieu while subject to an involuntary proceeding. Standard Bank does not believe that the Insolvency Case affects the ability of McEnery to execute the deeds in lieu, individually or in his capacity as trustee for The McEnery Trust. The Court also ordered that Standard Bank is authorized to execute and take further actions as necessary to ensure the proper and valid execution of the Deeds in Lieu and transfer of the properties to Standard Bank. About Gas City Gas City Ltd. -- http://www.gascity.net/-- based in Frankfort, Illinois, is an independent petroleum marketer with locations in Northeast Illinois, Northwest Indiana, Florida and Arizona. Gas City sought Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-47879) on Oct. 26, 2010, estimating assets at $50 million to $100 million and debts at $100 million to $500 million. Gas City's parent, the William J. McEnery Revocable Trust dated Apr. 22, 1993, filed a separate Chapter 11 petition (Bankr. N.D. Ill. Case No. 10-47895). Paul V. Possinger, Esq., Mark K. Thomas, Esq., Grayson T. Walter, Esq., at Proskauer Rose LLP, in Chicago; and Daniel A. Zazove, Esq., and Kathleen A. Stetsko, Esq., at Perkins Coie LLP, in Chicago, represent the Debtors. A. Jeffrey Zappone at Conway Mackenzie is the Debtors' chief restructuring officer. Kurtzman Carson Consultants is the Debtors' claims agent. Gas City disclosed $66,307,812 in assets and $209,577,690 in liabilities as of the Chapter 11 filing. The Official Committee of Unsecured Creditors has tapped Pachulski Stang Ziehl & Jones LLP and Levenfeld Pearlstein, LLC, as co- counsel and Mesirow Financial Consulting, LLC, as financial advisors. GATEWAY METRO: Seeks to Use Cash Collateral, Obtain DIP Loan ------------------------------------------------------------ Gateway Metro Center LLC seeks permission from the Bankruptcy Court to use cash collateral pursuant to Section 363 of the Bankruptcy Code and grant replacement liens as adequate protection to the creditors that assert security interests in the Debtor's cash collateral. Among other immediate expenses, the Debtor needs to use cash collateral to pay utilities, property management expenses, building repair and maintenance expenses, adequate protection payments in connection with office equipment and other expenses related to the operation of Gateway Metro Center. If the Debtor cannot pay these expenses, there will be immediate and irreparable harm to the office building, the estate, and the Debtor's creditors. In a separate filing, the Debtor seeks authority to incur postpetition secured debt. The Debtor, out of an abundance of caution, wants to have DIP financing in place to draw upon in the event it does not have sufficient funds on hand to pay costs and expenses. The Debtor's prepetition junior lender, Flying Tigers LLC, has committed to provide $350,000 in DIP loans. The Company owns two primary assets including (1) the Gateway Metro Center, formerly known as Gateway Tower, an approximately 121,462 square foot - 11 story office building and land located in the City of Pasadena, California, including the rights to develop further the land on which the Gateway Metro Center is located, and (2) a roughly 8,000 square foot parcel of land immediately abutting the office building. The Debtor said the office building is encumbered by a senior deed of trust asserted by Allstate Life Insurance Company to secure a claim of roughly $21 million and a junior deed of trust asserted by Flying Tigers to secure a claim of roughly $350,000. As a result, the Debtor said it will not be able to operate in chapter 11 unless it is authorized to use the Lenders' alleged cash collateral. The Debtor said Flying Tigers has consented to the used of cash collateral. However, the Debtor was unable to complete the negotiations of a consensual cash collateral order with Allstate prior to filing its voluntary chapter 11 petition. The Debtor is optimistic that a consensual agreement can be reached with Allstate. The Debtor loaned $20.5 million from Allstate in October 2006 to purchase the Gateway Tower as it was known at that time. Foreseeing a deep and extended economic decline and with increased vacancy and resulting reduction in cash flow, in early 2008 the Company proactively contacted Allstate and requested that Allstate negotiate an extension or refinance of the Loan that is due in September 2011. Over the course of the next three years, the Company and its representatives made numerous and repeated attempts to engage Allstate in a negotiation over the Allstate Loan. The Company engaged FTI Consulting, Inc., a well-known real estate restructuring expert, to act as its financial advisor to advise the Company regarding alternatives and to contact Allstate in a further attempt to negotiate with Allstate. During this time, the Company made several restructuring proposals to Allstate in writing. All of these proactive efforts proved to be fruitless. In May 2011, the Company stopped making loan payments to Allstate with the intention to engage Allstate in a discussion about the Loan terms. The Debtor delivered a letter to Allstate to evidence its intention. Instead of engaging in a dialogue with the Debtor, on June 20, 2011, Allstate sent the Debtor a letter stating that the Company is in default under the Loan and that Allstate was reserving its rights under the Loan documents. Thereafter, on June 29, 2011, the Debtor received a letter from counsel for Allstate stating that the Company is in default and that Allstate may seek the appointment of a state court receiver. Additional attempts to negotiate the Loan terms with Allstate were rejected and on July 15, 2011. The notice of default has affected the Debtor's marketing efforts to bring in new tenants. In August 2011, Flying Tigers loaned the Debtor $350,000 to cover certain expenses incurred by the Debtor and for the potential costs associated with a bankruptcy filing. The members of Flying Tigers are the same as the Debtor's members. The Flying Tigers Loan is secured by a junior lien on Gateway Metro Center including an interest in all rents, issues and profits thereof, and a senior lien on the Land. The Debtor projects that its cash balance will increase from $293,135 on the Petition Date to $346,504 on December 30, 2011. The Debtor contends that the Lenders are adequately protected (i) because there is no projected diminution in the value of their Collateral, and (ii) by an equity cushion. The Debtor believes that Gateway Metro Center has a value of $29.7 million, while the principal amount of secured claims is less than $21 million, which is an equity cushion of 29%. The DIP loan from Flying Tigers will be secured by (1) a junior secured lien on Gateway Metro Center and (2) a junior secured lien on the Land. Those liens will be subordinate to any existing liens and any replacement liens granted in connection with the Debtor's Cash Collateral use. The DIP loan bears a 5% interest. The Debtor also request permission to honor a financing agreement with M-Theory Financial Group LLC for the purchase of a computer. The computer is used to assist the Debtor with its day-to-day business operations. Pursuant to the Finance Agreement, the Debtor agreed to pay monthly payments of $117 for 18 months. About Gateway Metro Center Gateway Metro Center LLC, owner of an 11-story Gateway Metro Center office building in Pasadena, California, filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-47919) on Sept. 6, 2011. Judge Barry Russell presides over the case. Howard J. Weg, Esq., and Lorie A. Ball, Esq. -- hweg@pwkllp.com and lball@pwkllp.com -- at Peitzman, Weg & Kempinsky LLP, in Los Angeles, California, represent the Debtors. In its schedules, the Debtor scheduled $32,570,485 in assets and $22,338,135 in debts. The petition was signed by John F. Pipia, its president. GATEWAY METRO: Wants Bar Date, Sees Plan "Within First Few Weeks" ----------------------------------------------------------------- Gateway Metro Center, LLC, asks the Bankruptcy Court to establish bar dates for filing proofs of claim and approve the form and manner of notice. Specifically, the Debtor request a general bar date of Oct. 7, 2011, at 5:00 p.m. (Pacific Time). For claims of "governmental units," as that term is defined in section 101(27) of the Bankruptcy Code, proofs of claim will be considered timely if filed (a) before 180 days after the petition date, or (b) Oct. 7, 2011, whichever is later. The Debtor said it expects to file a plan of reorganization and disclosure statement within the first few weeks of commencing its bankruptcy case. Accordingly, the Debtor requires a date certain by which it will know the full extent of the claims made against the estate to facilitate the expedited consummation of the Plan and the payment of claims. About Gateway Metro Center Gateway Metro Center LLC, owner of an 11-story Gateway Metro Center office building in Pasadena, California, filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-47919) on Sept. 6, 2011. Judge Barry Russell presides over the case. Howard J. Weg, Esq., and Lorie A. Ball, Esq. -- hweg@pwkllp.com and lball@pwkllp.com -- at Peitzman, Weg & Kempinsky LLP, in Los Angeles, California, represent the Debtors. In its schedules, the Debtor scheduled $32,570,485 in assets and $22,338,135 in debts. The petition was signed by John F. Pipia, its president. GELT PROPERTIES: Proposes Cohen for Suits vs. Steven & Tracy ------------------------------------------------------------ Gelt Properties LLC and its affiliated debtors have filed an amended application to authorize Cohen and Forman LLC to prosecute the lawsuits they filed against Steven & Tracy Creek, Inter City Properties, LLC and Ghandi International. The Debtors say they have no outstanding fees owed to the firm. About Gelt Properties Based in Huntington Valley, Pennsylvania, Gelt Properties, LLC, and affiliate Gelt Financial Corporation borrow money from traditional lenders and make loans to commercial borrowers. They also acquire and manage real estate. Gelt Properties and Gelt Financial filed for (Bankr. E.D. Pa. Case Nos. 11-15826 and 11- 15826) on July 25, 2011. Judge Magdeline D. Coleman presides over the cases. Albert A. Ciardi, III, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., serve as the Debtors' bankruptcy counsel. In their separate petitions, the Debtors both estimated $10 million to $50 million in assets and debts. The petitions were signed by Uri Shoham, the Debtors' chief financial officer. GIBSON GUITAR: Moody's Says Govt. Raid No Impact on B3 Corporate ---------------------------------------------------------------- Moody's Investors Service said that the recent news that the federal government raided certain Gibson's manufacturing facilities relating to alleged illegalities regarding wood imported from India does not affect its B3 Corporate Family Rating or stable outlook at this time. Headquartered in Nashville, Tennessee, Gibson Guitar Corp. primarily manufactures and markets acoustic and electric guitars under the Gibson and Epiphone brand names. The company also sells other stringed instruments and instruments-related accessories such as amplifiers, speakers, and picks/straps. GLOBAL INDUSTRIES: Asks Supreme Court to Weigh Ch. 11 Challenge --------------------------------------------------------------- Derek Hawkins at Bankruptcy Law360 reports that Global Industries Technologies Inc. last month asked the U.S. Supreme Court to rule on whether its insurers were entitled to challenge the handling of asbestos- and silica-related claims in its bankruptcy plan, following a precedential ruling by the Third Circuit. In a petition lodged Aug. 31, Law360 relates, GIT argued that the insurers lacked standing to object to its attempts to channel the claims through special trusts funded by insurance settlements and the rights to the proceeds of GIT's insurance policies. GOLD HILL: Has Go Signal to Solicit Acceptances for Plan -------------------------------------------------------- The U.S. Bankruptcy Court for the District of South Carolina gave Gold Hill Enterprises, LLC, the go signal to solicit acceptances or rejections of the Debtor's Plan of Reorganization after approving the disclosure statement explaining the Plan. Ballots are due Oct. 25, 2011. The hearing on the confirmation of the Plan will be held on Nov. 1, 2011, at 10:00 a.m. Plan confirmation objections are due Oct. 25. A full-text copy of addendum to the Disclosure Statement, approved on Sept. 13, is available for free at: http://ResearchArchives.com/t/s?76f0 About Gold Hill Enterprises Fort Mill, South Carolina-based Gold Hill Enterprises, LLC, dba Jennings Enterprises, filed for Chapter 11 bankruptcy protection (Bankr. D. S.C. Case No. 11-02458) on April 14, 2011. According to its schedules, the Debtor disclosed $11,938,596 in total assets and $7,351,872 in total debts. Barton Law Firm, P.A., represents the Debtor in its restructuring effort. B. Bayles Mack and the firm of Mack & Mack serves as special counsel. Keith Corporation serves as marketing and development agent. Robert Palmer & Associates serves as tax accountant to assist in the preparation of all tax filings and returns required post petition, and other accounting services that may be necessary during the pendency of the Chapter 11 case. W. Clarkson Mcdow, Jr., the U.S. Trustee for Region 4, was unable to appoint an official committee of unsecured creditors in the Debtor's case. GREENBRIER HOSPITALITY: Case Summary & 20 Largest Unsec. Creditors ------------------------------------------------------------------ Debtor: Greenbrier Hospitality, LLC 817 Greenbrier Circle Chesapeake, VA 23321 Bankruptcy Case No.: 11-74161 Chapter 11 Petition Date: September 14, 2011 Court: United States Bankruptcy Court Eastern District of Virginia (Norfolk) Judge: Stephen C. St. John Debtor's Counsel: John D. McIntyre, Esq. WILSON & MCINTYRE, PLLC 500 East Main Street, Suite 920 Norfolk, VA 23510 Tel: (757) 961-3900 E-mail: jmcintyre@wmlawgroup.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/vaeb11-74161.pdf The petition was signed by Mukesh Barot. GSI HOLDING: Moody's Hikes Corporate to 'B2'; Outlook Stable ------------------------------------------------------------ Moody's Investors Service upgraded the corporate family rating and probability of default ratings of GSI Holdings LLC to B2 from B3 and the first lien bank debt to B1. Concurrently, the outlook was changed to stable from negative. These ratings were upgraded: Corporate family rating, to B2 from B3 Probability of default rating, to B2 from B3 $50 million first lien revolver due 2013, to B1 (LGD-3, 36%) from B2 (LGD-3, 35%) $305 million first lien term loan due 2014, to B1 (LGD-3, 36%) from B2 (LGD-3, 35%) RATINGS RATIONALE The ratings upgrade recognizes GSI's meaningful improvement in credit metrics due in part to positive industry dynamics in the North American agricultural sector driving demand for GSI's agricultural equipment as well as modest debt reduction. The improvement in free cash flow generation and cash on the balance sheet since last year also support the upgrade. The favorable outlook for farm income, despite an uncertain general macroeconomic outlook, bodes well for grain storage and poultry/swine equipment orders, which should support GSI's credit metrics over the intermediate term. The positive trends in corn and soybean futures prices benefits the company's grain segment while lean hog futures prices have also trended upward over the last year benefitting the company's protein segment. GSI appears to have completed most of its meaningful restructuring efforts including those associated with its operations in Brazil. The ratings are constrained by the cyclicality inherent in the industry, volatility of commodity prices and deferral of agricultural equipment capital expenditures if the overall North American economy weakens. The stable rating outlook reflects the company's good liquidity profile and Moody's expectation that continuing positive industry drivers over the intermediate term will support current credit metrics. The ratings and/or outlook could be revised downward if the company's overall liquidity profile weakens and debt/EBITDA is sustained above 5.0 times. The ratings could be upgraded if the company substantially increases its revenue base to in excess of $1 billion, debt/EBITDA is sustained below 4.0 times and double digit free cash flow generation is maintained. The principal methodology used in rating GSI Holdings, LLC was the Global Heavy Manufacturing Rating Industry Methodology, published in November 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. GSI Holdings Corp. headquartered in Assumption, IL, is a manufacturer and supplier of agricultural equipment. Roughly over 70% of GSI's revenues are to the North American market. The company's products include grain storage systems, and swine and poultry production equipment. Revenues during the last twelve months ended June 30, 2011 totaled over $700 million. HARBOUR EAST: Escrow Agent Directed to Turnover Defaulted Deposits ------------------------------------------------------------------ The Hon. A. Jay Cristol of the U.S. Bankruptcy Court for the Southern District of Florida directed the law firm of Blass & Frankel, P.A., the escrow agent, to turnover a certain defaulted escrow deposit which constitute property of Harbour East Development, Ltd. As reported in the Troubled Company Reporter on Aug. 29, 2011, the Debtor asked the Court to: -- compel 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 escrow agent is also authorized and directed to transfer the defaulted purchase deposit of Demar Import/Export, Inc., White Investment Group, 1207 Brickell Corp., Jy J Tequesta 1111 Corp., and By G Real Estate in the amount of $67,469, plus accrued interest, if any. The forfeited deposit will be deposited into the Debtor's new DIP account, which was established to hold previously forfeited deposits pursuant to the order entered on Aug. 3, 2010. Any liens that exist with respect to the forfeited deposit will attach to the proceeds of the new DIP account. The Court also ordered that there will be no transfers or disbursements out of the new DIP account except as authorized by further order of the Court. The Debtor will deliver a copy of the order to the bank at which the new DIP account is maintained to ensure compliance. Provided that the escrow agent complies with the terms of this Order, the escrow agent will not be held liable to any person or entity for any matter arising out of or related to the forfeited deposit. Further, the Court authorized the Debtor to take any additional actions necessary to effectuate the terms of the order. 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. HARBOUR EAST: Amended Plan Outline Hearing Set for Sept. 26 ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida will convene a hearing on Sept. 26, 2011, at 3:00 p.m., to consider approval of the Amended Disclosure Statement explaining Harbour East Development, Ltd.'s Plan of Reorganization. Objections, if any, are due Sept. 19. As reported in the Troubled Company Reporter on Sept. 1, 2011, the Debtor filed on Aug. 18, a disclosure statement describing its Third Amended Plan. The Plan will be funded by the Debtor forfeited Purchaser Escrow Deposits, income from rental of Condominium Units, net proceeds from sales of Condominium Units, and the conversion of the Egozi unsecured claim into equity interests in the Reorganized Debtor. The Third Amended Plan designates 14 Classes of Claims and Interests. Holders of Real Estate Tax Secured Claims (Class 2), Northern Trust/NBV Secured Construction Loan Claims (Class 3), Egozi Secured Subrogation Claim (Class 4), Whirlpool Secured Claim (Class 5), (Class 6), Purchaser Deposit Secured Claims (Class 7), Association Secured Claim (Class 8), Purchaser Contract Litigation Attorney Secured Claim (Class 9), Northern Trust/NBV Unsecured Claim (Class 10), General Unsecured Claims (Class 11), and Egozi Unsecured Claim (Class 12) are entitled to vote on the Plan. Priority Non-Tax Claims (Class 1) are not impaired. Class 1 Claims will be paid in full in Cash under the Plan. Holders of Old Limited Partnership Equity Interests (Class 13) Old General Partnership Equity Interests (Class 14) are deemed to reject the Plan and are not entitled to vote. Northern Trust/NBV Secured Construction Loan Claims (Class 3) will receive quarterly payments equal to the interest that would otherwise be payable on the actual secured amount of its claim at the Secured Claim Cram Down Rate and will receive payments of 60% of the net proceeds of each sale of a Condominium Unit during the first year of the Plan and 90% of the net proceeds of each sale of Condominium Units until its Allowed Class 3 Claim is paid in full, approximately $8 million. Northern Trust/NBV Unsecured Claim (Class 10), will be treated for all purposes as a Class 11 General Unsecured Claim, to the extent that the Class 10 Claim is determined by Final Order to hold an Allowed Unsecured Claim. General Unsecured Claims (Class 11) will receive up to !00% of the principal amount and accrued interest at the Unsecured Cram Down Rate from the General Unsecured Distribution Reserve. Old Limited Partnership Equity Interests (Class 13) and Old General Partnesrhip Interests (Class 14) will be canceled and Holders thereof will receive no distribution under the Plan. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/harboureast.DS3rdamendedplan.pdf 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. HARBOUR EAST: Has Temporary Access to Rental Income Until Oct. 31 ----------------------------------------------------------------- The Hon. A. Jay Cristol of the U.S. Bankruptcy Court for the Southern District of Florida, in an eighth interim order, authorized Harbour East Development, Ltd., to use cash collateral, and recover maintenance and preservation expenses from property securing allowed claims. The Debtor would use the rental income to pay the operating expenses until Oct. 31. Any funds remaining after payment of the budgeted expense items will not be expended by Bay Condominium Association without the express prior written consent of NBV or pursuant to further orders of the Court. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the prepetition lenders replacement liens upon all postpetition assets of the Debtor which are of the same nature or type as the collateral in which the claimants had an interest prior to the commencement of the chapter 11 case. In addition, in the event that the order (A) granting defendant 7935 NBV, LLC's motion for summary judgment on Count II and (B) denying debtor's cross-motion for summary judgment on complaint to avoid NBV's security interests is reversed on appeal or otherwise modified pursuant to a final order in a manner that avoids the perfected security interest of 7935 NBV, LLC on the Debtor's interest in purchaser deposits, NBV will have a lien on the purchaser deposits to the extent of the amount of cash collateral utilized in respect of the supersedeas bond. By Sept. 20, and the 20th day of each succeeding month, the Debtor will provide NBV with an updated rent roll for the property. A hearing on the Debtor's request for continued use of cash collateral will be held on Sept. 26, at 3:00 p.m. 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. HAWAII MEDICAL: Committee Seeks Approval to Retain A&M HealthCare ----------------------------------------------------------------- The Official Committee of Unsecured Creditors seeks approval from the U.S. Bankruptcy Court for the District of Hawaii to retain Alvarez & Marsal Healthcare Industry Group LLC effective Aug. 31, 2011. The Committee tapped the firm to provide advisory services in connection with its objection to the confirmation of the Chapter 11 plan of Hawaii Medical Center and its affiliated debtors. A&M Healthcare will be tasked to review and evaluate the Debtors' financial and operational condition. It will assist the Committee and its counsel in evaluating and responding to various development or motions during the course of the Debtors' bankruptcy cases including providing expert testimony. In exchange for its services, A&M Healthcare will be paid on an hourly basis and will be reimbursed for its expenses. The firm's hourly rates for its professionals range from $300 to $850. George Pillari, managing director of A&M, will be primarily responsible for this engagement. In a declaration, Mr. Pillari assures the Court that the firm and its professionals do not represent interest adverse to that of the Committee, and that they are "disinterested persons" under Section 101(14) of the Bankruptcy Code. About Hawaii Medical Center The Hawaii Medical Center, along with its affiliates, filed for Chapter 11 bankruptcy (Bankr. D. Hawaii Lead Case No. 11-01746) on June 21, 2011, just a year after exiting court protection. Hawaii Medical Center owns two hospital campuses -- HMC East in North Honolulu and HMC West in Ewa Beach. The two hospitals have 342 licensed beds and have a total of more than 1,000 employees. The hospitals were known as St. Francis Medical Center before Hawaii Medical purchased the hospitals in 2007. Judge Robert J. Faris presides over the 2011 case. Lawyers at Moseley Biehl Tsugawa Lau & Muzzi, in Honolulu, Hawaii, and McDonald Hopkins LLC, in Cleveland, Ohio, serve as the Debtors' counsel. The Debtors' financial advisors are Scouler & Company, LLC. In its petition, Hawaii Medical Center estimated $50 million to $100 million in assets and $100 million to $500 million in debts. The petitions were signed by Kenneth J. Silva, member of the board of directors. Attorneys at Wagner Choi & Verbrugge, in Honolulu, Hawaii, and Pachulski Stang Ziehl & Jones LLP, in Los Angeles, represent the Official Committee of Unsecured Creditors as counsel. The Debtors' prepetition debt structure is comprised of (i) the Prepetition Revolving Loan with MidCap Financial, LLC, and the Prepetition Term Loan with St. Francis Healthcare Systems of Hawaii. As of the Petition Date, the aggregate outstanding principal on the Prepetition MidCap Revolving Loan and the Prepetition St. Francis Term Loan is approximately $46,851,772. The principal balance of the Prepetion MidCap Revolving Loan is approximately $7,676,495. The amount owed under the Prepetition St. Francis Term Loan is approximately $39,175,277, secured by St. Francis's first priority lien on, among other things, all real property of the Debtors. Through this Chapter 11 filing, the Debtors plan to return the hospitals to the control of St. Francis. In the prior case, HMC and its affiliated debtors were converted to new, Hawaii non-profit corporations. CHA Hawaii, one of HMC's affiliated debtors and a subsidiary of Cardiovascular Hospitals of America, LLC, discontinued management of the reorganized Debtors. Wichita, Kansas-based CHA Hawaii LLC, and its affiliates -- including Hawaii Medical Center LLC -- filed for Chapter 11 protection on Aug. 29, 2008 (Bankr. D. Del. Case No. 08-12027). Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their restructuring efforts. CHA Hawaii estimated assets of up to $10 million and debts between $50 million and $100 million when it filed for bankruptcy. The Debtors obtained confirmation of their Chapter 11 plan in May 2010 and emerged from bankruptcy in August 2010. The Debtor disclosed $74,713,475 in assets and $91,599,563 in liabilities as of the Chapter 11 filing. St. Francis Healthcare System of Hawaii is represented by: Jonathan H. Steiner McCORRISTON MILLER MUKAI MACKINNON LLP Five Waterfrong Plaza, Fourth Floor 500 Ala Moana Boulevard Honolulu, Hawaii 96813 Tel: (808) 529-7300 Fax: (808) 524-8293 E-mail: steiner@m4law.com Joshua M. Mester DEWEY & LEBOEUF LLP 333 South Grand Avenue, 26th Floor Los Angeles, California 90071 Tel: (213) 621-6000 Fax: (213) 621-6100 E-mail: jmester@dl.com HERCULES OFFSHORE: Bank Debt Trades at 4% Off in Secondary Market ----------------------------------------------------------------- Participations in a syndicated loan under which Hercules Offshore, Inc., is a borrower traded in the secondary market at 96.00 cents- on-the-dollar during the week ended Friday, Sept. 16, 2011, an increase of 0.63 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 650 basis points above LIBOR to borrow under the facility. The bank loan matures on July 11, 2013, and carries Moody's 'Caa1' rating and Standard & Poor's 'B-' rating. The loan is one of the biggest gainers and losers among 104 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. The Company reported a net loss of $134.59 million on $657.48 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $91.73 million on $742.85 million of revenue during the prior year. Hercules reported a net loss of $37.65 million on $329.58 million of revenue for the six months ended June 30, 2011, compared with a net loss of $34.94 million on $302.45 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $2.09 billion in total assets, $1.14 billion in total liabilities, and $944.48 million in stockholders' equity. The Troubled Company Reporter said on Nov. 17, 2010, Moody's Investors Service downgraded the Corporate Family Rating of Hercules Offshore Inc. and the Probability of Default Rating to Caa1 from B2. Moody's also downgraded Hercules' 10.5% senior secured notes due 2017, its senior secured revolving credit facility due 2012, and its senior secured term loan B due 2013, all to Caa1 with LGD3, 45%. The outlook remains negative. "The inability of Hercules to generate meaningful free cash flow despite limited reinvestment in its aging fleet of rigs is cause for concern," commented Stuart Miller, Moody's Senior Analyst. "Without a significant de-leveraging of its balance sheet, Hercules is following a path that could lead to financial hardship at the first sign of a market softening." Hercules' Caa1 CFR rating reflects its highly leveraged balance sheet and limited ability to generate free cash flow. The Caa1 rating on the senior secured notes reflects their pari passu secured position in Hercules' capital structure relative to the senior secured credit facilities. HES CONSTRUCTION: Case Summary & 7 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: HES Construction, LLC 4513 Hixson Pike, Suite 108 Hixson, TN 37343 Bankruptcy Case No.: 11-15040 Chapter 11 Petition Date: September 13, 2011 Court: United States Bankruptcy Court Eastern District of Tennessee (Chattanooga) Judge: John C. Cook Debtor's Counsel: W. Thomas Bible, Esq. LAW OFFICE OF W. THOMAS BIBLE, JR. 6918 Shallowford Road, Suite 100 Chattanooga, TN 37421 Tel: (423) 424-3116 Fax: (423) 553-0639 E-mail: melinda@tombiblelaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's seven largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/tneb11-15040.pdf The petition was signed by H. Edward Smith, president. HILEX POLY: Moody's Affirms B3 CFR; Outlook Revised to Negative --------------------------------------------------------------- Moody's Investors Service revised the ratings outlook on Hilex Poly LLC to negative from stable and affirmed the B3 corporate family rating and probability of default ratings. Moody's also affirmed the B3 rating on the senior secured term loan. The revision of the ratings outlook to negative reflects limited cushion under financial covenants, limited cash flow relative to term loan amortization, small cash balances, and limited revolver availability leaving little room for negative variance in operating performance. The negative outlook also reflects weaker than expected unit volumes in the first half of the year and an uncertain operating environment. RATINGS RATIONALE The B3 Corporate Family Rating reflects narrow operating margins, limited cash flow generation and tight cushion under covenants. Despite some improvement, the operating margins remain narrow due to the largely commoditized product line, the fragmented industry and high customer concentration. The rating is also constrained by the company's small size, lack of pricing power and short history of operating improvements. Strengths in the company's profile include its leading position in the industry and long-standing customer relationships with well- established companies. Between 70%-75% of Hilex's sales stem from economically resistant food and drug retailers. The company also benefits from completed restructuring and cost-cutting initiatives, improved contract structure with raw material cost pass-through provisions, and new and renewed anti-dumping tariffs on Asian imports. The ratings could be revised downward if the cushion under financial covenants declines and liquidity deteriorates. The ratings could also be downgraded if there is a deterioration in the operating and competitive environment and credit metrics. Specifically, the ratings could be downgraded if FCF to Debt fails to improve to above 3%, EBIT margin fails to improve above 3.5%, EBIT/Interest remains below 1 times and debt to EBITDA increases above 6.5 times. The ratings could also be downgraded if there is significant debt financed acquisition or another dividend recapitalization. The outlook could be stabilized and ratings could be upgraded if liquidity and cushion under financial covenants improve and Hilex demonstrates an ability to improve credit metrics. Specifically, the ratings could be upgraded if the EBIT margin increases to the high single digits, EBIT to Gross Interest Expense increases above 1.3 times and Debt to EBITDA remains below 5.7 times. An upgrade would also be contingent upon the maintenance of adequate liquidity and stability in the operating and competitive environment. Moody's took the following rating actions; -Affirmed B3 CFR -Affirmed B3 PDR -Affirmed $135 million senior secured term loan, B3 (LGD 4-58% from 57%) -Revised outlook to negative The principal methodology used in rating Hilex was the Global Packaging Manufacturers: Metal, Glass, and Plastic Containers Industry Methodology published in June 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. HORIZON LINES: S&P Raises Corp. Credit Rating to 'CC' From 'SD' --------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Horizon Lines Inc. to 'CC' from 'SD'. "At the same time, we raised our rating on the company's senior convertible notes to 'C' from 'D'. In addition, we affirmed our 'B-' rating on the company's senior secured credit facilities. We are removing this rating from CreditWatch, where we placed it with negative implications on Feb. 24, 2011. The outlook is negative," S&P related. "Following these rating actions, we withdrew all ratings on Horizon Lines at the company's request," S&P stated. "The rating actions on Horizon Lines follow the company's payment on Sept. 13, 2011, of a $7.0 million interest payment on its $330 million senior convertible notes due August 2012 within the 30-day grace period under the terms of the indenture," said Standard & Poor's credit analyst Funmi Afonja. "On Aug. 23, 2011, we had lowered our rating on Horizon Lines' to 'SD' (selective default) following the company's decision to defer the interest payment due Aug. 15. Under our criteria, we view the failure to make an interest payment within five business days after the due date as tantamount to a default, regardless of the length of the grace period contained in the indenture." "We assigned a negative outlook on the company," Ms. Afonja continued, "because we believe that we would likely judge the pending exchange offer on the existing $330 million senior unsecured convertible notes to be a distressed exchange, which would cause us to subsequently lower the issue-level rating to 'D' and the corporate credit rating to 'SD'," S&P related. "Thereafter, when Horizon completes its entire debt restructuring, we would reassess the company's credit quality and assign new ratings, reflecting our view of the company's operating prospects, capital structure, and liquidity position. We affirmed the 'B-' rating on the company's existing senior secured credit facilities, pending the recapitalization that will repay the debt with new facilities." INNKEEPERS USA: In Deal Talks With Five Mile & Lehman Unit ---------------------------------------------------------- The Wall Street Journal's Mike Spector and Eliot Brown report that people familiar with the matter said creditors Five Mile Capital Partners LLC and a unit of Lehman Brothers Holdings Inc. are in discussions to acquire Innkeepers USA Trust in a possible deal valued at more than $1 billion. The sources told the Journal that Five Mile and Lehman submitted a preliminary nonbinding offer for Innkeepers earlier last week to acquire its 64 remaining hotels. The offer is slightly higher than an opening bid Five Mile and Lehman made for Innkeepers in a May bankruptcy-court auction. Since then, the two sides have been negotiating terms. The sources said the deal consists mostly of assumed debt and converting debt to equity: (A) Five Mile would assume a substantial portion of Innkeepers's senior mortgage debt and, along with investment partners, make certain cash payments to creditors. The sources said the investment partners are Starwood Capital Group and Hersha Hospitality Management, which both would end up owning a piece of Innkeepers. Hersha, a hotel-management company partially owned by Starwood, would manage the properties for the ownership group, one source said. (B) The Lehman subsidiary, which holds a roughly $238 million Innkeepers mortgage, would convert a chunk of its mortgage debt to ownership stakes in Innkeepers. Some of the remaining mortgage debt would be paid back. The deal, if consummated, would take Innkeepers out of bankruptcy protection. According to the Journal, the people cautioned the talks remain fluid and terms could change or the deal could fall apart. Cerberus Sale Collapses In June 2011, the Bankruptcy Court confirmed Innkeepers' chapter 11 plan of reorganization. The Plan is premised on the sale of the Company's hotel portfolio. A joint venture between the private-equity firm Cerberus Capital Management, L.P. and the real estate investment trust Chatham Lodging agreed to purchase for roughly $1.12 billion the equity in entities that own and operate 65 of the Company's hotels. Cerberus and Chatham agreed to pay $400.5 million cash and assume about $723.8 million mortgage debt for the hotels. Chatham Lodging also agreed to purchase for $195 million, five of the Company's hotels that serve as collateral for loan trusts serviced by LNR Partners LLC. The deal for the five hotels closed in July 2011. Cerberus and Chatham on Aug. 19 terminated a deal to acquire a portfolio of Innkeepers USA Trust's hotels. In a statement, Cerberus and Chatham said they had abandoned the deal "as a result of the occurrence of a condition, change or development that could reasonably be expected to have a material adverse effect" on Innkeepers' business, operations or financial condition, among other things. The deal had a Sept. 15, 2011 deadline to close. Cerberus and Chatham are required to pay a $20 million termination fee under the bankruptcy court-approved asset purchase agreement. Innkeepers insists that no changes have occurred to the hotel owner's business that would trigger the "material adverse effect" clause in the buyout's contract. The Debtors have filed a complaint against Cerberus, Chatham Lodging Trust and other related defendants for breach of contract and other claims for reneging on their commitment to acquire 64 hotels from Innkeepers. The lawsuit is Innkeepers USA Trust v. Cerberus Four Holdings LLC (In re Innkeepers USA Trust), 11-02557, U.S. Bankruptcy Court, Southern District New York (Manhattan). Dow Jones Newswires' Joseph Checkler reports that the he two sides and Judge Shelley C. Chapman agreed that a trial of the lawsuit could start on Oct. 10, which would necessitate the opening of the courthouse during the Columbus Day holiday. Innkeepers USA has won an extension until Nov. 10 of its exclusivity periods to file a plan free from the threat of a rival proposal. Originally, Innkeepers was going to ask for an extension until Jan. 12 to file a plan and March 19 to solicit credit or votes on the proposal, but a lawyer said the company had scaled the request back to Nov. 10 and would come to court just before that if it needs more time. About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and 91 affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-13800) on July 19, 2010. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred $1.29 billion of secured debt. Paul M. Basta, Esq., at Kirkland & Ellis LLP, in New York; Anup Sathy, P.C., Esq., Marc J. Carmel, Esq., at Kirkland & Ellis in Chicago; and Daniel T. Donovan, Esq., at Kirkland & Ellis in Washington, D.C., serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. Attorneys at Morrison & Foerster, LLP, represent the Official Committee of Unsecured Creditors. IGLESIA MISIONERA: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Iglesia Misionera Pregoneros de Justicia de Florida, Inc 868 SE 12 St Hialeah, FL 33010 Bankruptcy Case No.: 11-35355 Chapter 11 Petition Date: September 13, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: A. Jay Cristol Debtor's Counsel: Raymond Beitra, Esq. SOUTH FLORIDA LEGAL CENTER 900 West 49th Street, #424 Hialeah, Fl 33012 Tel: (305) 448-9590 Scheduled Assets: $349,010 Scheduled Debts: $346,415 The list of unsecured creditors filed together with its petition does not contain any entry. The petition was signed by Reinaldo Medina, president. INOVA TECHNOLOGY: Delays Filing of Quarterly Report on Form 10-Q ---------------------------------------------------------------- Inova Technology, Inc., was not able to file its quarterly report on Form 10-Q on the due date of Sept. 14, 2011. The Company expects that the 10-Q filing will be completed and filed on or before the amended due date of Sept. 19, 2011. The Company did not state any reason for the delay. About Inova Technology Based in Las Vegas, Nevada, Inova Technology, Inc. (OTC BB: INVA) -- http://www.inovatechnology.com/-- through its subsidiaries, provides information technology (IT) consulting services in the United States. It also manufactures radio frequency identification (RFID) equipment; and provides computer network solutions. The company was formerly known as Edgetech Services Inc. and changed its name to Inova Technology, Inc., in 2007. The Company reported a net loss of $3.35 million on $22.12 million of revenue for the year ended April 30, 2011, compared with a net loss of $7.06 million on $21.03 million of revenue during the prior year. The Company's balance sheet at April 30, 2011, showed $8.16 million in total assets, $18.37 million in total liabilities and a $10.21 million total stockholders' deficit. MaloneyBailey LLP, in Houston, Texas, noted that the Company incurred losses from operations for fiscal 2011 and 2010 and has a working capital deficit as of April 30, 2011. According to the independent auditors, these factors raise substantial doubt about Inova's ability to continue as a going concern. INTELLICELL BIOSCIENCES: Posts $12 Million 2nd Quarter Net Loss --------------------------------------------------------------- Intellicell BioSciences, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $12.0 million on $58,500 of revenues for the three months ended June 30, 2011. The Company had a net loss of $13.2 million on $58,500 of revenues for the six months ended June 30, 2011. The Company's balance sheet at June 30, 2011, showed $1.1 million in total assets, $15.1 million in total liabilities, all current, and a stockholders' deficit of $14.0 million. "The Company has a working capital deficit, and has incurred losses since inception resulting in an accumulated deficit of $13,971,565 as of June 30, 2011, $2,638,871 if the non cash expense related to the Company's derivative liability is excluded, and further losses are anticipated in the continued development of its business, raising substantial doubt about the Company's ability to continue as a going concern," the Company said in the filing. A complete text of the Form 10-Q is available for free at: http://is.gd/PloHGv Intellicell BioSciences, Inc., headquartered in New York, N.Y., was formed on Aug. 13, 2010, under the name "Regen Biosciences, Inc." as a pioneering regenerative medicine company to develop and commercialize regenerative medical technologies in large markets with unmet clinical needs. On Feb. 17, 2011, the company changed its name from "Regen Biosciences, Inc." to "IntelliCell BioSciences Inc". To date, IntelliCell has developed proprietary technologies that allow for the efficient and reproducible separation of stromal vascular fraction (branded "IntelliCell(TM)") containing adipose stem cells that can be performed in tissue processing centers and in doctors' offices. In conjunction with the formation of IntelliCell, a shareholder contributed, as part of his initial capital contribution, one hundred percent (100%) of the outstanding stock of Tech Stem Inc., a New York corporation ("Tech Stem") originally formed on May 24, 2010. Tech Stem's business is the sourcing, sales and distribution of laboratory equipment and supplies utilized in tissue processing related to IntelliCell's technologies. INTERSIL CORPORATION: Moody's Affirms Ba2 CFR; Outlook Stable ------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to Intersil Corporation's new $325 million senior secured revolving credit facility due 2016, and withdrew the rating on the old $75 million revolving credit facility and term loan. Moody's also affirmed Intersil's Ba2 Corporate Family Rating (CFR), Ba3 Probability of Default Rating (PDR) and SGL-1 Speculative Grade Liquidity Rating. The rating outlook is stable. RATINGS RATIONALE Moody's views this refinancing constructively which extends Intersil's revolver maturity and reduces Intersil's after tax interest expense to around 2%. The Ba2 rating reflects Intersil's strong market position and technological leadership across its high-performance analog (HPA) portfolio and the comparative strength of its high-margin business model. The rating also considers Intersil's small scale relative to HPA competitors and that the bulk of its revenues are exposed to the more volatile end markets (i.e., wireless communications, consumer electronics and computing). Moody's anticipates that Intersil will maintain good operating cost controls and be able to respond to changes in the business cycle in order to sustain leverage below 2.5x total debt to EBITDA (Moody's adjusted). The stable rating outlook reflects Moody's expectation that Intersil will maintain its competitive positions and key customer relationships, and continue to generate solid operating profits and free cash flow through business cycles. Ratings could be upgraded if Intersil experienced revenue and operating margin improvement to a higher sustainable range of at least the high teens level (i.e., 17%) implying strength in technological leadership, a favorable shift in product mix, increased market share and lower cost structure. Higher EBITDA should result in financial leverage under 2x (Moody's adjusted) on a sustained basis, which would be an important element of any rating upgrade. An upgrade could also occur if Intersil maintained prudent financial policies including robust available cash, lowered the portion of dividend payments relative to cash flow from operations to a range of 20% to 25%, and generated free cash flow to debt of at least 20% on a sustained basis (Moody's adjusted). Ratings could be downgraded if Intersil experienced sustained revenue contraction or market share erosion as a result of loss of technological leadership and reduced profitability resulting in operating margins below 15% on a consistent basis. A more aggressive use of financial policies and leverage such that total debt to EBITDA (Moody's adjusted) exceeded 3.0x for an extended episode could also result in a ratings downgrade. Proceeds drawn under the new credit facility were used to repay the $278 million amount outstanding under Intersil's existing secured term loan due 2016. Moody's has withdrawn the ratings and LGD Assessments on the retired credit facilities. Assignments: $325 Million Senior Secured Revolving Credit Facility due September 2016 -- Ba2 (LGD-3, 32%) Ratings Affirmed: Corporate Family Rating -- Ba2 Probability of Default Rating -- Ba3 Speculative Grade Liquidity Rating -- SGL-1 Ratings and LGD Assessments Withdrawn: $75 Million Senior Secured Revolver due October 2013 -- Ba2 (LGD- 3, 32%) $300 Million ($278 Million outstanding) Senior Secured Term Loan due April 2016 -- Ba2 (LGD-3, 32%) Moody's subscribers can find additional information in the Intersil Credit Opinion published on www.moodys.com. Please see ratings tab on the issuer/entity page on Moodys.com for the last credit rating action and the rating history. The methodologies used in this rating were Principal Methodology Global Semiconductor Industry published in November 2009, and Principal Methodology Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies. Headquartered in Milpitas, CA, Intersil Corporation designs, develops, manufactures and markets high-performance analog (HPA) and mixed-signal semiconductors targeted within computing, industrial, high-end consumer and communications end markets. Revenues and EBITDA (Moody's adjusted) for the twelve months ended July 1, 2011 were $821 million and $181 million, respectively. IPREO HOLDINGS: S&P Assigns 'B' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings said assigned its 'B' corporate credit rating to Ipreo Holdings LLC. The outlook is stable. "At the same time, we assigned a 'BB-' issue-level rating (two notches above the 'B' corporate credit rating) to the company's $135 million senior secured credit facilities, with a recovery rating of '1', indicating our expectation of a very high (90% to 100%) recovery for debtholders in the event of a payment default. The senior secured credit facilities, which consist of a $20 million revolver due 2016 and a $115 million term loan due 2017, along with $105 million of senior subordinated notes (unrated), were used to finance the acquisition," S&P related. "Our 'B' corporate credit rating on Ipreo reflects our view that the company will have solid revenue growth in 2012, despite weakness in new municipal bond issuance volume," said Standard & Poor's credit analyst Jeanne Shoesmith. In Standard & Poor's opinion, Ipreo's business risk profile is weak, because of a narrow business focus and revenue sensitivity to volatile financial markets. "We regard the financial risk profile as highly leveraged, based on the company's increased interest expense burden and high ratio of lease-adjusted debt to EBITDA of 6.5x, based on the pro forma trailing-12-month EBITDA as of June 30, 2011," S&P said. Ipreo provides financial data, deal-related information, and investor communications tools to investment banks and companies. The company has a heavy reliance on financial markets, and municipal debt markets in particular. A decline in debt and equity issuance transactions would have negative repercussions for the company's Capital Markets segment (54% of 2010 revenue). A high percentage of subscription-based revenue in Ipreo's non-Capital Markets business lines offers a degree of stability. A cutback in state and local government debt issuance has caused municipal bond issuance volume to decline sharply in 2011. Ipreo faces the risk of competition from much larger competitors with greater financial resources and a greater ability to withstand downturns. "The stable outlook reflects our view that despite a significant interest burden, Ipreo should be able to generate positive discretionary cash flow and possibly reduce its debt-to-EBITDA ratio over the medium term. If the company applies a portion of its cash flow to debt reduction, we could raise the rating over the medium term. More specifically, if the company reduces lease- adjusted total debt to EBITDA to less than 5.5x, we could raise the rating, assuming no deterioration in business performance. EBITDA growth of 15% combined with debt repayment of about $10 million could result in leverage declining to 5.5x. On the other hand, adverse financial market developments or macroeconomic trends that squeeze revenue, EBITDA, and discretionary cash flow, especially if the EBITDA cushion of compliance with the revolver covenant narrows to less than 15%, could lead us to lower the rating," S&P noted. IT'S GREEK TO ME: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: It's Greek to Me, Inc. also trading as AJ's Burgers 11 Lagoon Road Hilton Head Island, SC 29928 Bankruptcy Case No.: 11-05686 Chapter 11 Petition Date: September 13, 2011 Court: United States Bankruptcy Court District of South Carolina (Charleston) Judge: David R. Duncan Debtor's Counsel: Robert G. Sable, Esq. LAW OFFICE OF MICHAEL W. MOGIL, PA 2 Corpus Christie Place, Suite 303 Hilton Head Island, SC 29928 Tel: (843) 785-8110 E-mail: rsable@mogillaw.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/scb11-05686.pdf The petition was signed by Barbara Jean Maniotis, vice president. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Lagoon Road Associates, LLC 11-05685 09/13/11 Maniotis, Vassilios and Maniotis, Barbara Jean 11-05684 09/13/11 IVAX DIAGNOSTICS: Posts $767,400 Net Loss in Second Quarter ----------------------------------------------------------- IVAX Diagnostics, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $767,485 on $4.4 million of revenues for the three months ended June 30, 2011, compared with a net loss of $1.3 million on $4.4 million of revenues for the same period last year. The Company had a net loss of $1.8 million on $8.5 million of revenues for the six months ended June 30, 2011, compared with a net loss of $2.3 million on $9.0 million of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $19.9 million in total assets, $7.3 million in total liabilities, and stockholders' equity of $12.6 million. As reported in the TCR on April 5, 2011, Grant Thornton LLP, in Miami, Fla., expressed substantial doubt about IVAX Diagnostics' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company incurred a net loss of $4.2 million during the year ended Dec. 31, 2010, and used cash from operations of $1.9 million during the year ended Dec. 31, 2010. A complete text of the Form 10-Q is available for free at: http://is.gd/QfZohB Miami, Fla.-based IVAX Diagnostics, Inc. (NYSE Amex: IVD) -- http://www.ivaxdiagnostics.com/-- through its subsidiaries, develops, manufactures and markets diagnostic test kits, or assays, and automated systems that are used to aid in the detection of disease markers primarily in the areas of autoimmune and infectious diseases. JAM-TY INC: Case Summary & 10 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Jam-Ty, Inc. 403 East Sixth Street, Suite 110 Bloomington, IN 47408 Bankruptcy Case No.: 11-11601 Chapter 11 Petition Date: September 14, 2011 Court: United States Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: James K. Coachys Debtor's Counsel: David R. Krebs, Esq. HOSTETLER & KOWALIK P.C. 101 W. Ohio St. Suite 2100 Indianapolis, IN 46204 Tel: (317) 262-1001 Fax: (317) 262-1010 E-mail: dkrebs@hklawfirm.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/insb11-11601.pdf The petition was signed by Barry A. Goff, chief executive officer. JBI INC: Posts $6.5 Million Net Loss in Second Quarter ------------------------------------------------------ JBI, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $6.5 million on $534,846 of sales for the three months ended June 30, 2011, compared with a net loss of $1.9 million on $2.1 million of sales for the same period last year. For the six months ended June 30, 2011, the Company had a net loss of $9.3 million on $1.1 million of sales for the three months ended June 30, 2011, compared with a net loss of $5.1 million on $4.1 million of sales for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $9.4 million in total assets, $3.1 million in total liabilities, and stockholders' equity of $6.3 million. SCM LLP, in Toronto, Canada, expressed substantial doubt about JBI's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's recurring losses from operations and its dependency on future financing. A complete text of the Form 10-Q is available at: http://is.gd/4Rtxkf Thorold, Ontario-based JBI, Inc. (OTC QX: JBII) -- http://www.plastic2oil.com/-- is an alternative oil and gas company. JBI developed a process that converts waste plastic into fuel (Plastic20i1). JOHN IRWIN: Family Members May Be Sued by Joseph Forte Receiver --------------------------------------------------------------- Bankruptcy Judge Eric L. Frank granted, in part, and denied, in part, a motion filed by Marion A. Hecht, the receiver for Joseph Forte and Joseph Forte, L.P., for a declaration that the automatic stay in the bankruptcy case of John Irwin does not apply and for relief from the stay. Judge Frank held that the automatic stay does not apply to the claims the Receiver proposes to assert against the Debtor's wife Lucy Irwin, in her individual capacity and not as a tenant by the entireties, and the Debtor's daughters, Karen McAteer, Nancy Phillips and Carole Sander, to recover property the Debtor allegedly transferred to them. But absent further Court order, Judge Frank said the Receiver will not assert any claim against the Non-Debtor Targets that a transfer from the Debtor to any of them is avoidable under 12 Pa. C.S. Sections 5101-5110. A copy of Judge Frank's Sept. 15, 2011 Order is available at http://is.gd/7I2n3Pfrom Leagle.com. John Irwin and Jacklin Associates, Inc., provided services to Joseph Forte and Joseph Forte, L.P. over a 15-year period prior to the commencement of the bankruptcy case. For several of those years, Forte was engaged in a Ponzi scheme. Forte's activities resulted in the appointment of the Receiver for both Joseph Forte individually and his business entity. Prior to Mr. Irwin's bankruptcy filing, the Receiver filed a lawsuit asserting claims against the Debtor, seeking to recover money or property that she contends the Debtor obtained through his alleged participation in Forte's Ponzi scheme. That lawsuit is stayed due to the Debtors' bankruptcy filing. The Receiver has filed a proof of claim in the Debtor's chapter 11 case in the amount of "approximately $34 million", which makes her the largest creditor in the bankruptcy case. About John Irwin and Jacklin Associates John Irwin is an accountant and a principal of Jacklin Associates, Inc., a company that provides accounting and business consulting services. Mr. Irwin is a 55% shareholder in Jacklin. John Irwin and Jacklin Associates, Inc., filed for Chapter 11 bankruptcy (Bankr. E.D. Pa. Case Nos. 10-14407 and 10-14408) on May 27, 2010. Jeffrey Kurtzman, Esq., at Klehr, Harrison, Harvey, Branzberg in Philadelphia, serves as the Debtors' counsel. In his petition, Mr. Irwin estimated $1 million to $10 million in assets, and $10 million to $50 million in debts. Jacklin disclosed $798,095 in assets and $34,764,994 in debts in its schedules. JJMM INTERNATIONAL: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: JJMM International Corporation 31 Foxhurst Road Huntington Station, NY 11746 Bankruptcy Case No.: 11-76540 Chapter 11 Petition Date: September 14, 2011 Court: U.S. Bankruptcy Court Eastern District of New York (Central Islip) Judge: Robert E. Grossman Debtor's Counsel: James E Hurley, Jr., Esq. LAW OFFICE OF JAMES E. HURLEY, JR., PLLC 75 Maiden Lane, Suite 210 New York, NY 10038 Tel: (212) 402-6822 Fax: (212) 402-6823 E-mail: Jim@JEHurleylaw.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 Moae Chae, president. K-V PHARMACEUTICAL: Seven Directors Elected at Annual Meeting ------------------------------------------------------------- K-V Pharmaceutical Company, on Sept. 8, 2011, entered into an Engagement Letter Agreement with Gregory S. Bentley, Esq., a member of the Board of Directors of the Company. The Agreement is for Mr. Bentley to serve as outside legal counsel to the Company on certain matters related to Makena and other legal matters that may be agreed upon from time to time. The legal advice and services will be billed at an hourly rate of $350. Mr. Bentley also will be entitled to reimbursement for related out-of-pocket expenses. The Agreement may be terminated at any time by either party. At a Board of Directors meeting held on Sept. 8, 2011, the Company's Board of Directors approved the recommendation of its Compensation Committee that the Company grant discretionary bonuses to: Gregory J. Divis, President and Chief Executive Officer of the Company, in the amount of $130,000; and Thomas S. McHugh, Chief Financial Officer and Treasurer of the Company, in the amount of $75,000. Also in accordance with the recommendation of the Compensation Committee, the Board of Directors elected not to increase the base salary of any executive officer of the Company. At the Annual Meeting of Company Stockholders held on Sept. 8, 2011, the stockholders: (1) elected Robert E. Baldini, Gregory S. Bentley, Mark A. Dow, David S. Hermelin, Joseph D. Lehrer, David Sidransky, M.D., and Ana I. Stancic to serve as directors with terms expiring at the Annual Meeting of Stockholders to be held in 2012; (2) approved the K-V Pharmaceutical Company Long-Term Incentive Plan; (3) approved the advisory resolution on the compensation of executive officers; (4) adopted one year as the frequency of shareholder votes on executive compensation; and (5) ratified the appointment of the independent registered public accounting firm, BDO USA, LLP, as the Company's registered independent accounting firm for the fiscal year ending March 31, 2012. About KV Pharmaceutical Company KV Pharmaceutical Company (NYSE: KVa/KVb) -- http://www.kvpharmaceutical.com/-- is a fully integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded and generic/non-branded prescription pharmaceutical products. The Company markets its technology distinguished products through ETHEX Corporation, a subsidiary that competes with branded products, and Ther-Rx Corporation, the company's branded drug subsidiary. KV Pharmaceutical has not timely filed its Form 10-K for the year ended March 31, 2010 and its Form 10-Qs for the subsequent quarterly periods. The Company's independent accounting firm, KPMG, resigned on June 25, 2010, and the Company has tapped BDO USA, LLP, to audit the fiscal 2010 financial statements. The Form 10-Q for the quarter ended June 30, 2010, was only filed March 10, 2011. The Company's balance sheet at Dec. 31, 2010, showed $296.21 million in total assets, $529.66 million in total liabilities, and a $233.45 million shareholders' deficit. There is substantial doubt about the Company's ability to continue as a going concern. The report of the Company's independent registered public accountants BDO USA, LLP, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2010, includes an explanatory paragraph related to the Company's ability to continue as a going concern. The Company incurred a net loss of $283.61 million on $152.22 million of net revenue for 12 months ended March 31, 2010, compared with a net loss of $313.63 million on $312.33 million of revenue in the same period in fiscal 2009. The Company reported a net loss of $34.60 million on $3.38 million of net revenue for three months ended June 30, 2010, compared with a net loss of $53.95 million on $6.30 million of revenue in the same period in 2009. KITTS DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Kitts Development LLC a New Mexico Domestic Limited Liability Company 7820 Enchanted Hills Blvd. A-136 Rio Rancho, NM 87144 Bankruptcy Case No.: 11-14054 Chapter 11 Petition Date: September 13, 2011 Court: United States Bankruptcy Court New Mexico (Albuquerque) Judge: Robert H. Jacobvitz Debtor's Counsel: William F. Davis, Esq. WILLIAM F. DAVIS & ASSOCIATES, P.C. 6709 Academy NE, Suite A Albuquerque, NM 87109 Tel: (505) 243-6129 Fax: (505) 247-3185 E-mail: daviswf@nmbankruptcy.com Scheduled Assets: $1,385,261 Scheduled Debts: $11,469,939 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nmb11-14054.pdf The petition was signed by Thomas G. Joseph, managing member. KTLA LLC: Court Denies Secured Creditors' Case Dismissal Motion --------------------------------------------------------------- The Hon. Thomas E. Carlson of the U.S. Bankruptcy Court for the Northern District of California denied the motion to dismiss the Chapter 11 case of KTLA, LLC. On Aug. 2, 2011, secured creditors Pacific 1209 Lake, LLC, Pacific 1200 Hoover, LLC, Pacific 709 Mariposa, LLC and Pacific 720 Normandie, LLC, asked the Court to dismiss the Debtor's case because: -- the case was commenced in bad faith; -- the case is not appropriate use of the Bankruptcy Code; and -- the Debtor will be unable to effectuate a plan. The Court also advised the Debtor to file a status report not later than Oct. 14, 2011, to advise the Court regarding its compliance with the cash collateral stipulation, the marketing of the properties, and other matters regarding the administration of the case. These matters will be considered at an Oct. 21, status hearing. The secured creditors are represented by: Randy P. Orlik, Esq. Susan S. Davis, Esq. COX, CASTLE & NICHOLSON LLP 2049 Century Park East, 28th Floor Los Angeles, CA 90067-3284 Tel: (310) 277-4222 Fax: (310) 277-7889 E-mail: rorlik@coxcastle.com About KTLA LLC San Francisco, California-based KTLA LLC filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-32401) on June 27, 2011. Judge Thomas E. Carlson presides over the case. Reno F.R. Fernandez, Esq., at MacDonald and Assoc. Iain A. Macdonald, Esq., and Reno F.R. Fernandez, Esq. -- iain@macdonaldlawsf.com and r.fernandez@macdonaldlawsf.com -- at Macdonald and Associates, serve as bankruptcy counsel. KTLA disclosed $25,543,987 in assets and $18,798,387 in liabilities as of the Chapter 11 filing. The petition was signed by Graham Seel, SVP, California Mortgage and Realty. LAGOON ROAD: Case Summary & 13 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Lagoon Road Associates, LLC P.O. Box 6992 Hilton Head Island, SC 29938 Bankruptcy Case No.: 11-05685 Chapter 11 Petition Date: September 13, 2011 Court: United States Bankruptcy Court District of South Carolina (Charleston) Judge: John E. Waites Debtor's Counsel: Robert G. Sable, Esq. LAW OFFICE OF MICHAEL W. MOGIL, PA 2 Corpus Christie Place, Suite 303 Hilton Head Island, SC 29928 Tel: (843) 785-8110 E-mail: rsable@mogillaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/scb11-05685.pdf The petition was signed by Barbara J. Maniotis, vice president. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- It's Greek to Me, Inc. 11-05686 09/13/11 Maniotis, Vassilios and Maniotis, Barbara Jean 11-05684 09/13/11 LAS VEGAS HILTON: Lenders Seek Receivership for Firm ---------------------------------------------------- Dow Jones' DBR Small Cap reports that lenders Gramercy Capital Corp. and Goldman Sachs Group have asked that the fabled Las Vegas Hilton casino hotel, which is in default on its $250 million mortgage, be put into receivership. Las Vegas, Nev.-based Colony Resorts LVH Acquisitions, LLC, owns and operates the Las Vegas Hilton, a casino resort located in Las Vegas, Nevada. The Company licenses from HLT Existing Franchise Holding LLC the right to use the name "Hilton" and is part of Hilton's reservation system and Hilton's "HHonors Programs(TM)." LEO MOTORS: Posts $227,300 Net Loss in Second Quarter ----------------------------------------------------- Leo Motors, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $227,325 on $4,377 of sales for the three months ended June 30, 2011, compared with a net loss of $455,094 on $554,159 of sales for the same period last year. For the six months ended June 30, 2011, the Company had a net loss of $288,337 on $252,555 of sales for the six months ended June 30, 2011, compared with a net loss of $3.1 million on $566,622 of sales for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $7.2 million in total assets, $4.4 million in total liabilities, and stockholders' equity of $2.8 million. "Although in the future we intend to fund our liquidity requirements through a combination of cash on hand and revenues from operations, during the quarter ended June 30, 2011, the Company had realized a net loss of $206,052 from operations," the Company said in the filing. "Accordingly, our ability to initiate our plan of operations and continue as a going concern is currently dependent on our ability to either generate significant new revenues or raise external capital." A complete text of the Form 10-Q is available for free at: http://is.gd/g65QX0 Based in Hanam City, Gyeonggi-do, Republic of Korea, Leo Motors, Inc., was originally incorporated as Classic Auto Accessories, a California corporation on July 2, 1986. The Company then underwent several name changes from FCR Automotive Group, Inc., to Shinil Precision Machinery, Inc., to Simco America Inc. and then to Leo Motors. The Company is currently in the process of development and production of Electric Power Train Systems ("EPTS") encompassing electric scooters, electric sedans/SUVs/sports cars, and electric buses/trucks as well as several models of Electric Vehicle ("EV"). Its EPTS can replace internal combustion engines ("ICEs"). LINDEN PONDS: Files Schedules of Assets and Liabilities ------------------------------------------------------- Linden Ponds, Inc., filed with the U.S. Bankruptcy Court for the Northern District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property Unknown B. Personal Property $32,785,583 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $420,292,666 E. Creditors Holding Unsecured Priority Claims $1,757,261 F. Creditors Holding Unsecured Non-priority Claims $903,957 ----------- ----------- TOTAL $32,785,583 $422,953,884 Debtor-affiliate Hingham Campus, LLC, also filed its schedules disclosing $1,766,655 in assets and $332,740,965 in liabilities as of the Chapter 11 filing. About Linden Ponds Linden Ponds Inc. operates a 108-acre continuing care retirement community located at 300 Linden Ponds Way in Hingham, Massachusetts. The facility has 988 independent living units (with an occupancy rate of 87.9%) and 132 skilled nursing beds (68% occupancy rate). Linden Ponds leases the facility and the property upon which it is built from Hingham Campus LLC. Hingham is the owner of the facility and owns the fee simple interest in the property upon which the facility is built. Senior Living Retirement Communities, LLC, formerly known as Erickson Retirement Communities, LLC, owns 100% of the membership interests in Hingham. Hingham Campus and Linden Ponds filed a pre-negotiated Chapter 11 petition (Bankr. N.D. Tex. Lead Case No. 11-33912) in Dallas on June 15, 2011. Hingham Campus estimated assets and debts of $100 million to $500 million. Debt includes $156.4 million owing on bonds issued by the Massachusetts Development Finance Agency, with Wells Fargo Bank, National Association, as the bond trustee. Erickson Retirement Communities sought bankruptcy protection (Bankr. N.D. Tex. Case No. 09-37010) on Oct. 19, 2009. Erickson, the owner of 20 senior living facilities, won approval of its reorganization plan in April 2010. The Erickson plan provided for a sale to Redwood Capital, the highest bidder at the auction in December 2009. Redwood won the auction with an all-cash bid of $365 million. The DLA Piper team led by Thomas R. Califano (New York), George South (New York), Vince Slusher (Dallas), Jason Karaffa (New York) and Andy Zollinger (Dallas) represent Hingham in the Chapter 11 case. Attorneys at McGuire, Craddock & Strother, P.C., and Whiteford, Taylor And Preston, L.L.P., represent Linden Ponds. Hingham Campus, LLC and Linden Ponds, Inc., won approval of their disclosure statement and confirmation of their plan of reorganization on Aug. 18, 2011. LOAN EXCHANGE: Case Summary & 14 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Loan Exchange Group, a California General Partnership 100 N. Westlake Boulevard, #203 Westlake Village, CA 91362 Bankruptcy Case No.: 11-21085 Chapter 11 Petition Date: September 16, 2011 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Debtor's Counsel: Marc A. Duxbury, Esq. COUNTY LAW CENTER 1901 Camino Vida Roble, Suite 114 Carlsbad, CA 92008 Tel: (760) 438-5291 E-mail: info@countylawcenter.com Scheduled Assets: $12,050,570 Scheduled Debts: $5,170,968 The petition was signed by Roger S. McCurdy, managing general partner. Debtor's List of 14 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ S & S Land Development -- $548,965 21 West Laurel Drive, #49 Salinas, CA 93906 Raylene Miracle -- $327,206 4 Seaside Circle Newport Beach, CA 92662 HP Gottschal -- $300,000 100 N. Westlake Boulevard, Suite 203 Westlake Village, CA 91361 James Pettit 4th Deed of Trust $280,000 516 Dolan Road Moss Landing, CA 93950 WP Gottschalk -- $200,000 Henry Kurtz, CPA -- $110,000 Elizabeth Derry -- $70,000 Bohnen, Rosenthal & Kreeft Legal Fees $53,119 Susan Frankilin -- $20,000 Deborah Cutler Judgment $11,678 Hemraj D. Singh 3rd Deed of Trust $0 Anthony Lewis 3rd Deed of Trust $0 Elkhorn Land Co. 2nd Deed of Trust $0 Rubicon Mortgage Fund LLC 1st Deed of Trust $0 LOCAL INSIGHT: Seeks Nod of Transition Agreement Term Sheet ----------------------------------------------------------- BankruptcyData.com reports that Local Insight Media Holdings (LIMI) filed with the U.S. Bankruptcy Court a motion for an order approving (A) the transition agreement term sheet; (B) assumption of The Berry-CSID Agreement, rejection of the AXESA-Berry Agreement and rejection of the Subcontract Agreement and (C) entry into the management transition agreement. According to BData, the term sheet sets out the principal terms and conditions of a comprehensive global settlement with LIMI and the CMI Silo and provides for the disentanglement of the Debtors from the LIMI and CMI Silos, termination or amendment of various inter-company contracts and resolution of various inter-company claims. The Court scheduled a Sept. 20, 2011 hearing on the matter. About Local Insight Wilmington, 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. As reported in the TCR on Aug. 16, 2011, Debtors filed a plan of reorganization (the "Plan"). The Plan has the support of the steering committee of the Company's pre-petition senior secured lenders. As reported in the TCR on Sept. 5, 2011, the Hon. Kevin Gross for the U.S. Bankruptcy Court for the District of Delaware will convene a hearing on Sept. 20, 2011, at 10:00 a.m. (prevailing Eastern Time), to consider adequacy of the Disclosure Statement explaining the Debtors' Chapter 11 Plan. Objections, if any, are due Sept. 12, at 4:00 p.m. LOS GATOS: Hearing on Exclusivity Extensions Slated for Oct. 21 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California will convene a hearing on Oct. 15, 2011, at 1:15 p.m., to consider Los Gatos Hotel Corporation's request for extension in its exclusive solicitation period. The Debtor requested that the Court extend its exclusive right to obtain acceptances of a plan of reorganization until Dec. 30, 2011. The Debtor explained that the extension does not violate Section 1121(d)(2)(B) of the Bankruptcy Code because the order for relief in its case was entered on Dec. 27, 201[0]. As reported in the Troubled Company Reporter on Aug. 4, 2011, the Debtor's Plan will be funded by cash on hand and the payments to be received by the Debtors from the operation of the Hotel Los Gatos after the Effective Date. Under the Plan, holders of allowed secured and unsecured claims will be paid over time from hotel revenue. The classification and treatment of claims and interests under the Plan are: A. Unclassified Claims (U.S. Trustee Fees, Professional Fee Expenses, Ordinary Course Administrative Expenses, Non-Ordinary Course Administrative Expenses and Priority Tax Claims is unimpaired and will be paid in full in cash. B. Class 1 (Secured Tax Claims) is impaired. The Reorganized Debtor will pay the claim in Cash on the later of 45 days after the Effective Date or the last day that such Allowed Secured Tax Claim would have been due, without payment of penalty or interest, under applicable non-bankruptcy law. C. Class 2 (Secured Claim Held by GCCFC 2006-GG7 Los Gatos Lodging Limited Partnership) is impaired. Although Class 2 claims will be paid in full over time pursuant to the provisions of the Plan. D. Class 3 (Priority Unsecured Claims) is unimpaired. These claims consists of gift certificates and customer deposits, will be honored upon presentation. E. Class 4 (General Unsecured Claims) is impaired will be paid over 24 months, starting 7 months after Effective Date, with 3% interest. F. Class 5 (Unsecured Claims Held by Insiders) is impaired and will be paid in installments following payment of other Allowed Claims. G. Class 6 (Existing Equity Interests) is unimpaired and holders retain all rights and interests in Reorganized Debtor. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/LOSGATOS_disclosurestatement.pdf About Los Gatos Hotel Los Gatos Hotel Corporation owns the Hotel Los Gatos, a Joie de Vivre Hotel. San Jose, California-based Los Gatos Hotel Corp. was formed in 2000 to build and operate Hotel Los Gatos, a full- service boutique hotel in downtown Los Gatos, California. Los Gatos Hotel filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 10-63135) on Dec. 27, 2010. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate Blossom Valley Investors, Inc., filed a separate Chapter 11 petition (Bankr. N.D. Calif. Case No. 09-57669) on Sept. 10, 2009. Jeffry A. Davis, Esq., at Mintz Levin Cohn Ferris Glovsky Popeo, serves as the Debtors' bankruptcy counsel. MADISON 92ND: Judge Taps Examiner to Launch Investigation in Case ----------------------------------------------------------------- Dow Jones' DBR Small Cap reports that a judge directed an examiner to explore the best route to reorganization for hotel owner Madison 92nd Street Associates LLC amid a rift between two investor groups. About Madison 92nd Madison 92nd Street Associates, LLC, owns real property improved by a hotel located at 410 East 92nd Street, New York, known as the Upper East Side Courtyard by Marriott. It filed for Chapter 11 bankruptcy protection as lender General Electric Capital Corp., owed $74 million, has scheduled a foreclosure sale for Aug. 24, 2011. The petition (Bankr. S.D.N.Y Case No. 11-13917) was filed Aug. 16, 2011, before Judge Stuart M. Bernstein. J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, serves as the Debtor's counsel. It scheduled $84,471,069 in assets and $75,398,580 in debts. The petition was signed by Louis Taic, managing member of 92nd Hotel Associates, LLC and Jeffrey Kosow, managing member of JKNY, LLC, members of the Debtor. Courtyard Management Corporation, which manages and operates the hotel pursuant to a management agreement, is represented by: Thomas R. Califano, Esq. William M. Goldman, Esq. DLA PIPER LLP (US) 1251 Avenue of the Americas New York, NY 10020 Telephone: (212) 335-4500 Facsimile: (212) 335-4501 E-mail: william.m.goldman@dlapiper.com thomas.califano@dlapiper.com MADISON HOTEL: Plan Disclosures Hearing for Sept. 26 ---------------------------------------------------- Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York scheduled a hearing to consider adequacy of the amended disclosure statement explaining Madison Hotel, LLC and Madison Hotel Owners, LLC's proposed Plan of Reorganization for September 26, 2011 at 3:00 p.m. The Court also entered a scheduling order agreed by the Debtors and their senior lenders 62 Madison Lender, LLC and Nomad Mezz Lending, LLC concerning the Plan. In order to conduct an orderly confirmation process, the parties will pursue these deadlines: (1) The deadline for the Debtors to file and serve upon the appropriate parties a proposed Amended Disclosure Statement with all accompanying solicitation materials, exhibits, and a proposed form of voting ballot is August 25, 2011; (2) The deadline for filing any objection to the Amended Disclosure Statement and the Senior Lenders' Motion to Terminate Exclusivity is September 20, 2011; (3) The parties may commence discovery immediately, but the deadline for serving interrogatories, requests for production of documents, and requests for admissions will by October 12, 2011 and all discovery, including all depositions, will be completed no later than November 2, 2011. (4) To the extent approved by the Court, the Amended Disclosure Statement and all accompanying solicitation materials, exhibits, and the approved form of voting ballot will be served upon all parties entitled to notice on or before October 4, 2011; (5) The parties will disclose the identity of the expert witnesses that will testify at the confirmation hearing and will exchange the report for each witness required under Rule 26 of the Federal Rules of Bankruptcy Procedure on or before October 19, 2011 at 4:30 p.m. No rebuttal reports will be required and no rebuttal expert witnesses will be permitted to testify, except that the expert witnesses identified by the parties on or before October 19, 2011 will be permitted to testify in rebuttal at the confirmation hearing; (6) The deadline for filing any objection to the proposed Plan of Reorganization will be Nov. 7, 2011; and (7) A hearing on the confirmation of the proposed Plan of Reorganization will be conducted on Nov. 14, 2011, beginning at 2:00 p.m., through Nov. 15, 2011 beginning at 9:00 a.m. About Madison Hotel Madison Hotel, LLC, owns the 72 room 12-story hotel located at 62 Madison Avenue, New York, New York. Madison Hotel Owners LLC owns 100% of the membership interests of Madison Hotel, LLC. The Debtors estimate that the value of the hotel property is $32 million. An appraisal is pending. Prepetition, after a building loan went into arrears, a foreclosure action was commenced, and a receiver appointed. The receiver has continued to operate the hotel postpetition. Madison Hotel, LLC, based in New York, filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 11-12560) on May 27, 2011. Judge Martin Glenn presides over the case. Mark A. Frankel, Esq., at Backenroth Frankel & Krinsky, LLP, serves as bankruptcy counsel. In its schedules, the Debtor disclosed $33.6 million in assets and $26.1 million in liabilities as of the Chapter 11 filing. MANISTIQUE PAPERS: To Employ Vector Consulting as Fin'l Advisor --------------------------------------------------------------- Manistique Papers, Inc. seeks permission from the U.S. Bankruptcy Court for the District of Delaware to employ Vector Consulting, L.L.C. as its financial advisor, nunc pro tunc to August 12, 2011. As the Debtor's financial advisor, Vector Consulting will: (a) assist the Debtor in preparation of cash flow and financial projections; (b) advise the Debtor in connection with any disposition of its assets; (c) advise the Debtor with respect to its financial relationship with creditors; and (d) take all necessary steps and provide consulting services appropriate to the Debtor's efforts to maximize the value of its assets and estate. The Debtor will pay Michael Baratta, who will serve as the principal on this engagement, his hourly rate of $285. The Debtor will also reimburse Vector Consulting for expenses incurred. The Debtor disclosed that it paid Vector Consulting a prepetition retainer of $18,000 for consulting services in connection with this Chapter 11 case. In August 2011, Vector Consulting returned $13,317 of the advance after an invoice totaling $4,682 for payment of services rendered and expenses incurred up to the Petition Date. The Debtor has also paid Vector Consulting after the Petition Date $13,317. Mr. Baratta insists that Vector Consulting is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code. About Manistique Papers Manistique Papers Inc. operates a landfill in Manistique, Michigan, whereby residuals resulting from paper production are deposited. Manistique Papers filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-12562) on Aug. 12, 2011. Daniel B. Butz, Esq., and Eric D. Schwartz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, serves as the Debtor's bankruptcy counsel. Manistique Papers estimated assets of $10 million to $50 million and debts of $50 million to $100 million in its Chapter 11 petition. MARISCOS ENSENADA: Case Summary & 8 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Mariscos Ensenada Restaurant, Inc. 3622 W. 5th Street Santa Ana, CA 92703 Bankruptcy Case No.: 11-22845 Chapter 11 Petition Date: September 13, 2011 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Debtor's Counsel: Rick Gaxiola, Esq. LAW OFFICES OF RICK GAXIOLA 8556 Nuevo Avenue Fontana, CA 92335 Tel: (909) 356-9596 Fax: (909) 385-1065 E-mail: gaxlaw@charter.net Scheduled Assets: $32,450 Scheduled Debts: $1,225,896 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb11-22845.pdf The petition was signed by Maria Ramos, president. MARIZONA INC: Case Summary & Largest Unsecured Creditor ------------------------------------------------------- Debtor: Marizona, Inc. 13500 SW 72nd Ave., Suite 210 Portland, OR 97223 Bankruptcy Case No.: 11-37931 Chapter 11 Petition Date: September 13, 2011 Court: United States Bankruptcy Court District of Oregon Judge: Trish M. Brown Debtor's Counsel: Bradley O. Baker, Esq. 15545 Village Park Ct Lake Oswego, OR 97034 Tel: (503) 697-0557 E-mail: bradleyo10@msn.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Doty and Co Accounting Services $8,215 Attn Alex Miller 1515 Liberty St SE Salem, OR 97302 The petition was signed by Mark Zimel, president. MEDICURE INC: Files Copy of Birmingham Debt Settlement Agreement ---------------------------------------------------------------- Medicure Inc. filed with the U.S. Securities and Exchange Commission a copy of its Debt Settlement Agreement with Birmingham Associates Ltd. As previously reported by the TCR on July 25, 2011, the Company, among other things, settled the debt of US$32,839,659 owing to Birmingham in exchange for these consideration: (i) C$5 million in cash (less certain costs not to exceed $250,000); (ii) 32,640,043 common shares of the Company; and (iii) the granting of a royalty in AGGRASTAT(R) sales. A full-text copy of the Debt Settlement Agreement is available for free at http://is.gd/RjEMCO About Medicure Inc. Based in Winnipeg, Manitoba, Canada, Medicure Inc. (TSX/NEX: MPH.H) -- http://www.medicure.com/-- is a biopharmaceutical company engaged in the research, development and commercialization of human therapeutics. The Company has rights to the commercial product, AGGRASTAT(R) Injection (tirofiban hydrochloride) in the United States and its territories (Puerto Rico, U.S. Virgin Islands, and Guam). AGGRASTAT(R), a glycoprotein GP IIb/IIIa receptor antagonist, is used for the treatment of acute coronary syndrome (ACS) including unstable angina, which is characterized by chest pain when one is at rest, and non-Q-wave myocardial infarction. At Feb. 28, 2011, the Company's consolidated balance sheets showed C$5.7 million in total assets, C$30.7 million in total liabilities, all current, and a shareholders' deficit of $25.0 million. As reported in the Troubled Company Reporter on Oct. 4, 2010, KPMG LLP, in Winnipeg, Canada, expressed substantial doubt about Medicure's ability to continue as a going concern, following its results for the fiscal year ended May 31, 2010. The independent auditors noted that the Company has experienced operating losses and cash flows from operations since incorporation and has significant debt servicing obligations that it does not have the ability to repay. MERRITT AND WALDING: Has Interim OK to Use Bryant Cash Collateral ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Alabama approved, on an interim basis, the stipulation authorizing Merritt and Walding Properties, LLP, to use secured creditor Bryant Bank's cash collateral. Previously, Bryant Bank filed an emergency motion to prohibit the Debtor to use the cash collateral or, in the alternative, for adequate protection. The final hearing on the Debtor's access to the cash collateral will be held at 8:30 a.m. on Sept. 27, 2011. Objections, if any, are five business days before the final hearing. As reported in the Troubled Company Reporter on July 5, 2011, Bryant Bank is owed approximately $1,267,335, comprised of a principal balance of $1,249,805, accrued interest of $16,279 and late charges of $1,250, as of the Petition Date, secured by, among other things, certain of the Debtor's personal property, and a first priority mortgage lien in the Debtor's properties located in Mobile, Alabama, and Prichard, Alabama, including all leases, rents, cash and accounts receivable, subject to Bryant's security interest. The obligations are also unconditionally guaranteed by Merritt Oil Co., Inc., Fred Raymond Walding and Richard T. Merritt. The Debtor and Bryant Bank entered into a stipulation providing for either interim use of cash collateral and adequate protection or the loan of funds by Bryant Bank to Debtor. Under the stipulation, -- the parties agreed to reserve the determination of whether the rents are property of the estate until a later date; -- the parties have agreed to allow the Debtor to collect the rents owed for the month of September 2011; -- the Debtor may use a portion of the collected rents and said use will be premised upon use of the Debtor's cash collateral as an extension of debtor-in-possession financing by Bryant Bank from the proceeds of the rents; -- the Debtor is authorized to collect all rents, due and owing to Debtor or Bryant until Sept. 30; -- from the rents for September 2011, collected by the Debtor, Debtor will retain $920 to pay ad valorem taxes on the mortgage collateral and $722 for insurance on the mortgage collateral; A payment of $10,000 will be paid to Bryant Bank by Sept. 15, to be applied against the Bryant Bank Indebtedness in Bryant Bank's sole discretion. The balance of the September 2011 rents after paying the expenses and the payment will be available for use by the Debtor in the ordinary course of its business. -- Bryant Bank will be provided adequate protection through: 1) the payment; 2) payment of the Expenses; and 3) a valid, binding, enforceable and perfected lien on, interest in, and assignment in favor of Bryant Bank in the amount of the balance for all of Debtor's postpetition cash, accounts, receivables, or other rights to payment, and the proceeds thereof, received or to be received by the Debtor from the mortgage collateral, or any other source, person or entity. The postpetition lien will be subordinate only to all valid, perfected and enforceable postpetition liens existing effective as of the Petition Date. About Merritt and Walding Properties Merritt and Walding Properties, LLP, in Pt. Clear, Alabama, filed for Chapter 11 bankruptcy (Bankr. S.D. Ala. Case No. 11-02322) on June 10, 2011. Irvin Grodsky, P.C., serves as the Debtor's bankruptcy counsel. The Debtor disclosed $6,166,757 in assets and $7,685,591 in liabilities as of the Chapter 11 filing. The petition was signed by Richard T. Merritt and R. Fred Walding, as general partners. An affiliate of the debtor, Richard T. Merritt (Bankr. S.D. Ala. Case No. 11-00380) filed for bankruptcy on Feb. 1, 2011. An Official Committee of Unsecured Creditors has not been appointed in the case. MERRITT AND WALDING: Cash Collateral Deal with Merchants Bank OK'd ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Alabama, in a minute entry for the hearing held Sept. 13, 2011, approved the agreement authorizing Merritt and Walding Properties, LLP, to use Merchants Bank's cash collateral. The cash collateral order is due Sept. 27. The agreement provided that: 1. Merchants holds a first mortgage on three properties which the Debtor utilizes in its business operations. Each mortgage contains an assignment of rents provision which extends to the postpetition rents collected by the Debtor. 2. As adequate protection of the Bank's interest in the properties and the rents generated therefrom the Debtor will: (a) pay the $13,500 to the Bank for the months of June and July 2011; and (b) pay to the Bank $10,532 for the month of August 2011, and the same amount on or before the tenth day of each month thereafter, to and including Dec. 10, 2011. 3. The Debtor will comply with all obligations and provisions of the mortgages and assignments of rents with respect to the properties not modified by order of the Court. 4. The Debtor will maintain all property, liability and other insurance coverage as required by the mortgages. About Merritt and Walding Properties Merritt and Walding Properties, LLP, in Pt. Clear, Alabama, filed for Chapter 11 bankruptcy (Bankr. S.D. Ala. Case No. 11-02322) on June 10, 2011. Irvin Grodsky, P.C., serves as the Debtor's bankruptcy counsel. The Debtor disclosed $6,166,757 in assets and $7,685,591 in liabilities as of the Chapter 11 filing. The petition was signed by Richard T. Merritt and R. Fred Walding, as general partners. An affiliate of the debtor, Richard T. Merritt (Bankr. S.D. Ala. Case No. 11-00380) filed for bankruptcy on Feb. 1, 2011. An Official Committee of Unsecured Creditors has not been appointed in the case. MGDC DEVELOPMENT: Case Summary & Largest Unsecured Creditor ----------------------------------------------------------- Debtor: MGDC Development Corp. 85932 Overseas Highway Islamorada, FL 33036 Bankruptcy Case No.: 11-35524 Chapter 11 Petition Date: September 14, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: Robert A. Mark Debtor's Counsel: Peter D. Spindel, Esq. P.O. Box 166245 Miami, FL 33116 Tel: (786) 517-4229 E-mail: peterspindel@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 The petition was signed by Kevin M. McGuire, president. The list of unsecured creditors filed together with its petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ IRS Taxes $2,000 Insolvency Support Group P.O. Box 7346 Phildelphia, PA 19101-7346 MOUNTAIN NATIONAL: Posts $21.8 Million Net Loss in Second Quarter ----------------------------------------------------------------- Mountain National Bancshares, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $21.85 million on net interest income of $3.31 million for the three months ended June 30, 2011, compared with net income of $142,286 on net interest income of $3.16 million for the same period of 2010. For the six months ended June 30, 2011, the Company had a net loss of $25.23 million on net interest income of $6.45 million, compared with net income of $471,400 on net interest income of $6.29 million for the corresponding period last year. Provision for loan losses was $17.36 million and $334,400 for the three months ended June 30, 2011, and 2010, respectively, and $20.36 million and $546,700 for the six months ended June 30, 2011, and 2010, respectively. The Company's balance sheet at June 30, 2011, showed $521.40 million in total assets, $509.90 million in total liabilities, and stockholders equity of $11.50 million. The Company and its principal subsidiary, Mountain National Bank, are subject to various regulatory capital requirements administered by the federal banking agencies. In February 2010, the Bank agreed to an Office of the Comptroller of the Currency ("OCC") minimum capital requirement ("IMCR") to maintain a minimum Tier 1 capital to average assets ratio of 9% and a minimum total capital to risk-weighted assets ratio of 13%. The Bank had 4.61% of Tier 1 capital to average assets and 7.69% of total risk-based capital to risk-weighted assets ratio at June 30, 2011, and was therefore not in compliance with the IMCR. As a result, the OCC may bring additional enforcement actions, including a consent order or a capital directive, against the Bank. Based upon its capital levels at June 30, 2011, the Bank's capital shortfall was approximately $23,374,000 for the Tier 1 capital to average assets requirement and approximately $20,342,000 for the total capital to risk-weighted assets requirement. A complete text of the Form 10-Q is available for free at: http://is.gd/dgD5YG Mountain National is a bank holding company registered with the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended. The Company provides a full range of banking services through its banking subsidiary, Mountain National Bank. The Company conducts its banking activities from its main office located in Sevierville, Tennessee and through eight additional branch offices in Sevier County, Tennessee, as well as a regional headquarters and two branch offices in Blount County, Tennessee. N.A. PETROLEUM: Judge Approves $98 Million Ch. 11 Settlement ------------------------------------------------------------ Carolina Bolado at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Christopher S. Sontchi on Wednesday signed off on North American Petroleum Corp.'s Chapter 11 plan that hinged on a $98 million settlement with its lenders and its business partner, Equal Energy Inc. Law360 relates that Judge Sontchi approved the gas producer's reorganization plan and smoothed over an objection by the Internal Revenue Service by clarifying that nothing in the plan would prevent the government from pursuing federal tax liabilities. About North American Petroleum Denver, Colorado-based North American Petroleum Corp. USA is a natural gas driller. North American Petroleum and Prize Petroleum are subsidiaries of Petroflow Energy Ltd. North American Petroleum sought Chapter 11 protection (Bankr. D. Del. Case No. 10-11707) on May 25, 2010. In its schedules, North American Petroleum disclosed $140,678,983 in total assets and $125,595,183 in total liabilities as of the Petition Date. The Debtor's affiliate, Prize Petroleum LLC, filed a separate Chapter 11 petition on May 25, 2010 (Case No. 10-11708). Prize Petroleum scheduled $121,945,092 in liabilities. These cases are being jointly administered for procedural purposes, under the case docket for North American Petroleum Corporation USA, Case No. 10-11707. On Aug. 20, 2010, Petroflow Energy Ltd., the parent company of North American Petroleum Corporation USA and Prize Petroleum, LLC, filed a petition in the U.S. Bankruptcy Court for the District of Delaware seeking relief under Chapter 11 of the Bankruptcy Code (Case No. 10-12608). On Sept. 10, 2010, the Bankruptcy Court granted permission for Petroflow's Chapter 11 case to be jointly administered with those of its two Chapter 11 debtor-affiliates. On Sept. 17, 2010, Petroflow received recognition of the U.S. Chapter 11 proceedings from the Alberta Court of Queen's Bench under the Companies' Creditors Arrangement Act in Canada. In its petition, Petroflow disclosed assets and debts of between $100 million and $500 million each. David R. Seligman, Esq., Ryan Blaine Bennett, Esq., and Paul Wierbicki, Esq., at Kirkland & Ellis LLP, in Chicago, serve as lead bankruptcy counsel. Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg LLP in Wilmington, Del., and Morton R. Branzburg, Esq., at Klehr Harrison Harvey Branzburg LLP, in Philadephia, Pa., serve as the Debtors' co-counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' notice, claims and balloting agent. NAVIGATOR HOLDINGS: Completes $40MM Sale of Loan Portfolio ---------------------------------------------------------- Navigator Holdings LLC (Navigator) President Bobby Lazenby announced the sale of nearly $40 million in subprime, asset-backed loans. The sale comes as an increasing number of investors look to build balance sheets with high yielding assets. After nearly three turbulent years, companies remaining in the subprime industry have started to feel the benefits of expanded credit. In the last year, several start-ups have also found capital and are aggressively trying to establish their own footprint in the marketplace. "I'm happy to say the subprime market has rebounded nicely over the past year with fresh or renewed capital sources becoming available to lenders. We are seeing several industry players with a strong desire to take advantage of what they believe is a void in the marketplace. This has created a fairly competitive marketplace and has led to some of the strongest pricing in years for subprime, asset-backed receivables," said Lazenby. Navigator Holdings LLC is the result of a Chapter 13 bankruptcy restructuring of Manchester Inc. Manchester, then a publicly traded company, failed after less than a year of operations, but not before acquiring four companies and well over $100 million in assets. In June 2008, Manchester emerged from bankruptcy, under the direction of Bobby Lazenby, as the newly restructured Navigator Holdings after the secured lenders agreed to a stock for debt swap that left many of the unsecured creditors without recourse. Navigator Holdings owns and operates a captive finance company, Navigator Acceptance. Navigator Acceptance specializes in providing financing directly to those consumers with other than prime credit. About Manchester Based in Dallas, Texas, Manchester Inc. (OTCBB: MNCS) -- http://www.manchesterinc.net/-- is in the Buy-Here/Pay-Here auto business. Buy-Here/Pay-Here dealerships sell and finance used cars to individuals with limited credit histories or past credit problems, generally financing sales contacts ranging from 24 to 48 months. It operates six automotive sales lots, which focus on the Buy-Here/Pay-Here segment of the used car market. The company and its seven affiliates filed for Chapter 11 protection on Feb. 7, 2008 (Bankr. N.D. Tex. Case No.08-30703). Winston & Strawn LLP represents the Debtors in their restructuring efforts. Eric A. Liepins, Esq., is the Debtors' local counsel. The U.S. Trustee for Region 6 appointed creditors to serve on an Official Committee of Unsecured Creditors in these cases. Powell Goldstein LLP represents the Committee as counsel. As of the Debtors' bankruptcy filing, it listed total assets of $131,582,157 and total debts of $123,881,668. Manchester nka as Navigator Holdings LLC and its subsidiaries, emerged from Chapter 11 bankruptcy protection effective as of June 23, 2008. Pursuant to the terms of the Company's Third Amended Chapter 11 Plan confirmed on June 17, 2009, Manchester's senior lender, Palm Beach Multi-Strategy Fund, LLC, now owns 100% of the new stock in the Company. NEBRASKA BOOK: Wants to Hire Deloitte Tax as Tax Services Provider ------------------------------------------------------------------ BankruptcyData.com reports that Nebraska Book Company filed with the U.S. Bankruptcy Court a motion to retain Deloitte Tax (Contact: Christopher R. Kopiasz) as tax services provider at the following hourly rates: partner, principal or director/specialist at $365 to $515, partner at $365, director at $330, senior manager at $275, manager at $245, senior at $210 and associate at $195. About Nebraska Book Company Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. Lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the Petition Date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. The Official Committee of Unsecured Creditors selected Lowenstein Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow Financial Inc. as financial advisers. Nebraska Book prepared a pre-packaged Chapter 11 plan that would swap some of the existing debt for new debt, cash and the new stock. NET TALK.COM: Leo Manzewitsch Resigns as CTO and Director --------------------------------------------------------- Leo Manzewitsch resigned as chief technical officer and director of NetTalk.com, Inc., on Sept. 12, 2011. To the best of the Company's knowledge, no Executive Officer of the Company is aware of any disagreements between the Company and Leo Manzewitsch and the he did not furnish the Company with any written correspondence concerning the circumstances surrounding his resignation. About Net Talk.com Based in Miami, Fla., Net Talk.com, Inc., is a telephone company, who provides, sells and supplies commercial and residential telecommunication services, including services utilizing voice over internet protocol ("VoIP") technology, session initiation protocol ("SIP") technology, wireless fidelity technology, wireless maximum technology, marine satellite services technology and other similar type technologies. Net Talk.com reported a net loss of $6.31 million on $737,498 of revenues for the fiscal year ended Sept. 30, 2010, compared with a net loss of $2.74 million on $115,571 of revenues in fiscal 2009. The Company's balance sheet at June 30, 2011, showed $5.69 million in total assets, $4.24 million in total liabilities, $13.24 million in redeemable preferred stock, and a $11.80 million total stockholders' deficit. NEXAIRA WIRELESS: Delays Filing of Quarterly Report on Form 10-Q ---------------------------------------------------------------- NexAira Wireless Inc. is unable to file, without unreasonable effort and expense, its Form 10-Q Quarterly Report for the period ended July 31, 2011, because the Company's auditors have not yet had an opportunity to complete their review of the unaudited financial statements. It is anticipated that the Form 10-Q quarterly report, along with the unaudited financial statements, will be filed on or before the 5th calendar day following the prescribed due date of the Company's Form 10-Q. About NexAira Wireless Headquartered in Vancouver, B.C., Nexaira Wireless Inc. (OTC BB: NXWI) -- http://www.nexaira.com/-- develops and delivers third and fourth generation (3G/4G) wireless routing solutions that offer speed, reliability and security to carriers, mobile operators, service providers, value added resellers (VARS) and enterprise customers. BDO USA, LLP, in San Diego, Calif., expressed substantial doubt about Nexaira Wireless' ability to continue as a going concern. The independent auditors noted that the Company has incurred losses from operations and has negative cash flow from operations, a working capital and a net capital deficit. The Company reported a net loss of US$4.66 million on US$1.74 million of revenue for fiscal 2010, compared with a net loss of US$3.37 million on US$5.64 million of revenue for fiscal 2009. The Company's balance sheet at April 30, 2011, showed $1.53 million in total assets, $4.50 million in total liabilities, all current, and a $2.96 million total shareholders' deficit. NORTEL NETWORKS: Withdraws Alissa T. Gazze as Bankruptcy Counsel ---------------------------------------------------------------- Nortel Networks, Inc., told the U.S. Bankruptcy Court for the District of Delaware that Alissa T. Gazze, Esq., is no longer with the law firm of Morris, Nichols, Arsht & Tunnell LLP, counsel for the Debtors. Accordingly, Ms. Gazze should be removed as counsel to the 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. In March 2009, the U.S. Bankruptcy Court entered an order approving the sale of the Layer 4-7 assets to Radware Ltd. as the successful bidder at auction. In July 2009, Nortel sold its CDMA and LTE-related assets to Telefonaktiebolaget LM Ericsson (Publ). In September 2009, the Court Nortel sold its Enterprise Solutions business to Avaya Inc. In October 2009, the Court approved the sale of assets associated with Nortel's Next Generation Packet Core network components to Hitachi, Ltd. On Dec. 2, 2009, the Court approved the sale of assets associated with Nortel's GSM/GSM-R business to Telefonaktiebolaget LM Ericsson (Publ) and Kapsch Carriercom AG. In December 2009, the Debtors sold their Metro Ethernet Networks business to Ciena Corporation. In March 2010, Nortel sold its Carrier Voice Over IP and Application Solutions business to GENBAND Inc. In September 2010, Nortel sold its Multi-Service Switch business to Ericsson. In August 2011, Nortel won court approval to sell its intellectual property portfolio to a group that includes Apple Inc. and Microsoft Corp. for $4.5 billion. Nortel Networks 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. NORTHERN BERKSHIRE: Has Interim Access to WF Cash Collateral ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Massachusetts, in a third interim order, authorized Northern Berkshire Healthcare, Inc., et al., to use the cash collateral of Wells Fargo Bank, National Association, as successor to the Bank of New York as master trustee for the master indenture. The Debtors will use the cash collateral to fund their business operations postpetition. As adequate protection for any diminution in value of the master trustee's interests in the Debtors' interest in the prepetition collateral, the Debtors will grant the master trustee adequate protection liens on any asset. The adequate protection liens will be junior only to (a) prepetition liens; (b) permitted encumbrances; and carve out on certain expenses; and any other security interests and liens. The master trustee is also granted superpriority administrative expense claim status. The Debtors authorization to use cash collateral will terminate on the earliest to occur of: (i) 5:00 p.m. (ET) on the date that is two business days after the further hearing, and the expiration of the cure period following the delivery of a default notice by the master trustee. A further hearing on the Debtors' requested access to the cash collateral is scheduled for Oct. 6, at 2:00 p.m. About Northern Berkshire Healthcare Northern Berkshire Healthcare, Inc. is a non-profit healthcare corporation in northern Berkshire County, Massachusetts. Together with its affiliates, Northern Berkshire Healthcare operates the North Adams Regional Hospital and a visiting nurse association and hospice in North Adams, Massachusetts. Northern Berkshire Healthcare, Inc., North Adams Regional Hospital, Inc., Visiting Nurse Association & Hospice of Northern Berkshire, Inc., Northern Berkshire Healthcare Physicians Group, Inc., and Northern Berkshire Realty, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Mass. Case No. 11-31114) on June 13, 2011, to address their overleveraged balance sheet and effect a reorganization of their operations. On the same day, Northern Berkshire Community Services, Inc., filed a petition for Chapter 7 relief also in the District of Massachusetts bankruptcy court. Judge Henry J. Boroff presides over the Debtors' cases. James Addison Wright, III, Esq., and Steven T. Hoort, Esq., at Ropes & Gray LLP, serve as the Debtors' bankruptcy counsel. The Debtors' Financial Advisors are Carl Marks Advisory Group LLC. GCG Inc. serves as claims and noticing agent. Northern Berkshire disclosed $22,957,933 in assets and $53,379,652 in liabilities as of the Chapter 11 filing. The petition was signed by William F. Frado, Jr., president. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to the official unsecured creditors' committee in the Debtors' cases. The Committee tapped Duane Morris LLP as its counsel. NORTHERN BERKSHIRE: Hearing on Disclosure Statement on Oct. 6 ------------------------------------------------------------- A hearing on the approval of the disclosure statement explaining Northern Berkshire Healthcare, Inc., and its debtor affiliates' Chapter 11 Plan of Reorganization will be on October 6, 2011, at 2:30 p.m. Objections to the approval of the Disclosure Statement are due Oct. 3. The Debtors have asked the U.S. Bankruptcy Court for the District of Massachusetts, Western Division, to approve the disclosure statement and proposed procedures for the solicitation and tabulation of votes to accept or reject the Plan. The Plan provides for the issuance of the Reorganized Debtors of New Unsecured Notes to the applicable Post-Effective Trusts, (b) the Debtors transfer of Trust Assets to the applicable Post- Effective Trusts, (c) the release of funds in the Debt Service Fund, the Debt Service Reserve Fund, the Expense Fund, the Project Fund, the Redemption Fund, and the Rebate Fund to the Holder of the MDFA Note Secured Claim and applied to reduce the principal amount thereof, (d) the release of funds in the Debt Service Fund, the Debt Service Reserve Fund, the Redemption Fund, and the Rebate Fund to the Holder of the MHEFA Note Secured Claim and applied to reduce the principal amount thereof, (e) the vesting, with respect to each Debtor, the Avoidance Actions in each Debtor's Estate, and each Debtor's right to file, settle, compromise, withdraw, or litigate to judgment objections to any PET Claim and any Secured Claim against a Sale Debtor, in the Post-Effective Trust of such Debtor, and (f) the vesting of title to all other Assets of any Debtor in the respective Reorganized Debtor, free and clear of all Claims, liens, encumbrances, and other interests. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?76f1 About Northern Berkshire Healthcare Northern Berkshire Healthcare, Inc. is a non-profit healthcare corporation in northern Berkshire County, Massachusetts. Together with its affiliates, Northern Berkshire Healthcare operates the North Adams Regional Hospital and a visiting nurse association and hospice in North Adams, Massachusetts. Northern Berkshire Healthcare, Inc., North Adams Regional Hospital, Inc., Visiting Nurse Association & Hospice of Northern Berkshire, Inc., Northern Berkshire Healthcare Physicians Group, Inc., and Northern Berkshire Realty, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Mass. Case No. 11-31114) on June 13, 2011, to address their overleveraged balance sheet and effect a reorganization of their operations. On the same day, Northern Berkshire Community Services, Inc., filed a petition for Chapter 7 relief also in the District of Massachusetts bankruptcy court. Judge Henry J. Boroff presides over the Debtors' cases. James Addison Wright, III, Esq., and Steven T. Hoort, Esq., at Ropes & Gray LLP, serve as the Debtors' bankruptcy counsel. The Debtors' Financial Advisors are Carl Marks Advisory Group LLC. GCG Inc. serves as claims and noticing agent. Northern Berkshire disclosed $22,957,933 in assets and $53,379,652 in liabilities as of the Chapter 11 filing. The petition was signed by William F. Frado, Jr., president. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to the official unsecured creditors' committee in the Debtors' cases. The Committee tapped Duane Morris LLP as its counsel, and Huron Consulting Services LLC as its financial advisor. NUVILEX INC: Delays Filing of Quarterly Report on Form 10-Q ----------------------------------------------------------- Nuvilex, Inc., was unable to file its quarterly report on Form 10-Q for the period ended July 31, 2011, within the prescribed time period because the Company did not provide its auditors with all of the information necessary for the auditors to complete the review for the quarter ended July 31, 2011, in a timely manner. About Nuvilex Inc. Scottsdale, Ariz.-based Nuvilex Inc. (OTC BB: NVLX) -- http://www.nuvilex.com/-- operates independently and through wholly-owned subsidiaries and is dedicated to bringing to market scientifically derived products designed to improve the health and well-being of those who use them. The Company currently manufactures, directly or indirectly through independent contractors Cinnergen(TM), Cinnechol(TM), Infinitink(R) (and related private label ink products), and Talysn(TM) Scar Cream for sale worldwide. The Company reported a net loss of $1.39 million on $125,997 of total revenue for the year ended April 30, 2011, compared with a net loss of $5.99 million on $262,932 of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.24 million in total assets, $3.39 million in total liabilities, $580,000 in preferred stock and a $2.73 million total stockholders' deficit. M&K CPAS, PLLC, in Houston, Texas, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations. NXT NUTRITIONALS: Reports $1 Million Second Quarter Net Income -------------------------------------------------------------- NXT Nutritionals Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $1.01 million on $34,754 of sales for the three months ended June 30, 2011, compared with net income of $2.33 million on $49,057 of sales for the same period during the prior year. The Company also reported net income of $825,251 on $84,944 of sales for the six months ended June 30, 2011, compared with a net loss of $901,761 on $157,791 of sales for the same period a year ago. The Company reported a net loss of $17.40 million on $187,516 of sales for the fiscal year ended Dec. 31, 2010, compared with a net loss of $23.95 million on $905,728 of sales during the prior fiscal year. The Company's balance sheet at June 30, 2011, showed $957,260 in total assets, $10.87 million in total liabilities and a $9.92 million total stockholders' deficit. Berman & Company, P.A, in Boca Raton, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a net loss of $17,402,736 and net cash used in operations of $3,035,079 for the year ended Dec. 31, 2010; and a working capital deficit and stockholders' deficit of $11,076,205 and $12,547,616, respectively, at Dec. 31, 2010. A full-text copy of the Form 10-Q is available for free at: http://is.gd/2USjcm About NXT Nutritionals Springfield, Mass.-based NXT Nutritionals Holdings, Inc. (OTC BB: NXTH) -- http://www.nxtnutritionals.com/-- through its wholly owned subsidiary NXT Nutritionals, Inc., is a developer and marketer of a proprietary, patent-pending, all-natural, healthy sweetener sold under the brand name SUSTA(TM) and other food and beverage products. OMNICARE INC: S&P Keeps 'BB' Rating on 7.75% Subordinated Notes --------------------------------------------------------------- Standard & Poor's Ratings Services's 'BB' issue-level rating on Covington, Ky.-based pharmacy services provider Omnicare Inc.'s 7.75% senior subordinated notes due 2020 remains unchanged following the company's proposed $100 add-on to the offering, bringing the total to $500 million. "Our recovery rating on the issue remains at '4', indicating our expectation of average (30%- 50%) recovery in the event of a payment default," S&P related. "The notes will rank equally with the company's existing and future senior subordinated indebtedness. We expect the company to use the proceeds from the notes offering to redeem its outstanding 6.875% senior subordinated notes due 2015. We expect the offering to not meaningfully affect Omnicare's 'significant' financial risk, because the company is retiring existing debt with the proceeds," S&P related. "Our 'BB' corporate credit rating on Omnicare reflects the company's 'fair' business risk profile and 'significant' financial risk. The business risk profile continues to reflect the company's narrow business focus, exposing it to industry-specific risks, such as the potential for future reimbursement pressure. In addition, Omnicare has experienced a number of operating shortfalls since its debt-financed acquisition of NeighborCare Inc. in 2005, and the 2006 implementation of Medicare Part D. Also, Omnicare has experienced a decline in the number of beds served over the past few years. However, we do expect the trend in beds served could improve in 2011 through acquisitions and an increased focus on customer service. Risks to Omnicare are partially offset by the company's opportunity to capitalize on its leading position as a provider of pharmacy services to nursing homes and other long-term care providers, and its ability to generate free cash flow despite numerous operating hurdles over the past few years. We expect the company to generate roughly $425 million of operating cash flow in 2011," S&P stated. Ratings List Omnicare Inc. Corporate credit rating BB/Stable/-- $500 mil. sr sub notes due 2020 BB Recovery rating 4 OPTIONS MEDIA: Posts $11.8 Million Net Loss in Second Quarter ------------------------------------------------------------- Options Media Group Holdings, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $11.8 million on $196,291 of revenues for the three months ended June 30, 2011, compared with a net loss of $2.7 million on $212,814 of revenues for the same period last year. For the six months ended June 30, 2011, the Company had a net loss of $12.6 million on $521,051 of revenues, compared with a net loss of $3.3 million on $339,110 of revenues for the same period in 2010. The Company's balance sheet at June 30, 2011, showed $3.9 million in total assets, $8.9 million in total liabilities, all current, and a stockholders' deficit of $5.0 million. As reported in the TCR on May 31, 2011, Salberg & Company, P.A., in Boca Raton, Florida, expressed substantial doubt about Options Media Group Holdings' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has a net loss of $9.86 million, and net cash used in operations of $2.02 million for the year ended Dec. 31, 2010, and a working capital deficit and an accumulated deficit of $524,157, and $22.74 million respectively at Dec. 31, 2010. The independent auditors noted that the Company has also discontinued certain operations. A complete text of the Form 10-Q is available at http://is.gd/qbDaMy About Options Media Boca Raton, Fla.-based Options Media Group Holdings, Inc., had historically been an Internet marketing company providing e-mail services to corporate customers. Additionally, Options Media has a lead generation business and disposed of its SMS text messaging delivery business. In 2010, Options Media transitioned by changing its focus to smart phones and acquiring a robust anti- texting program that prohibits people in vehicles from texting, e- mailing, and reading such communications while moving. As part of its focus on mobile software applications, Options Media has also broadened its suite of products by continuing to improve the features of its Drive Safe(TM) anti-texting software. In conjunction with this change of focus, in February 2011, Options Media sold its e-mail and SMS businesses. Options Media retains its lead generation business. OVERLAND STORAGE: Incurs $14.5 Million Net Loss in Fiscal 2011 -------------------------------------------------------------- Overland Storage, Inc., filed with the U.S. Securities and Exchange Commission is annual report on Form 10-K reporting a net loss of $14.50 million on $70.19 million of net revenue for the fiscal year ended June 30, 2011, compared with a net loss of $12.96 million on $77.66 million of net revenue during the prior fiscal year. The Company's balance sheet at June 30, 2011, showed $40.92 million in total assets, $33.79 million in total liabilities and $7.13 million in total shareholders' equity. Moss Adams LLP, in San Diego, California, noted that the Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/9ik3S7 About Overland Storage San Diego, Calif.-based Overland Storage, Inc. (Nasdaq: OVRL) -- http://www.overlandstorage.com/-- is a global provider of unified data management and data protection solutions designed to enable small and medium enterprises (SMEs), corporate departments and small and medium businesses (SMBs) to anticipate and respond to change. PARADISE INVESTMENT: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Paradise Investment Fund, LLC 1420 Celebration Boulevard, Suite 300 Celebration, FL 34747 Bankruptcy Case No.: 11-13841 Chapter 11 Petition Date: September 14, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: Justin M. Luna, Esq. LATHAM, SHUKER, EDEN & BEAUDINE, LLP P.O. Box 3353 Orlando, FL 32802-3353 Tel: (407) 481-5800 Fax: (407) 481-5801 E-mail: bankruptcynotice@lseblaw.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 16 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-13841.pdf The petition was signed by Eric J. Waddell, member and managing member of Waddel Williams & Assoc., its manager. PERFECTENERGY INT'L: Has $701,300 Loss in 2 Months Ended June 30 ---------------------------------------------------------------- Perfectenergy International Limited filed its quarterly report on Form 10-Q, reporting a net loss of $701,308 on $14.5 million of revenues for the two months ended June 30, 2011, compared with a net loss of $981,217 on $20.7 million of revenues for the three months ended July 31, 2010. For the eight months ended June 30, 2011, the Company had a net loss of $2.4 million on $38.6 million of revenues, compared with a net loss of $1.9 million on $57.2 million of revenues for the nine months ended July 31, 2010. The Company changed its fiscal year end from Oct. 31 to Sept. 30 effective May 4, 2011. The financial statements presented herein include the statements of operations and cash flows for the eight months ended June 30, 2011, and the nine months ended July 31, 2010, which represents the period of the prior year most comparable to the current period. The Company's balance sheet at June 30, 2011, showed $35.5 million in total assets, $27.6 million in total liabilities, and stockholders' equity of $7.9 million. "We have incurred recurring operating losses and had an accumulated deficit of $3.48 million as of June 30, 2011," the Company said in the filing. "Our history of operating losses and lack of binding financing commitments raise substantial doubt as to our ability to continue as a going concern." A copy of the Form 10-Q is available at http://is.gd/7nk9zD Perfectenergy International Limited was originally incorporated on Feb. 25, 2005, in the State of Nevada under its former name "Crestview Development Corporation." The Company, through its subsidiaries, is principally engaged in the research, development, manufacturing, and sale of solar cells, solar modules, and photovoltaic ("PV") systems. The Company's manufacturing and research facility is located in Shanghai, China, and it has sales and service offices in Shanghai, China and Germany. PONCE DE LEON: Case Summary & 15 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Ponce De Leon 1403, Inc. 1550 Ave. Ponce De Leon San Juan, PR 00909 Bankruptcy Case No.: 11-07920 Chapter 11 Petition Date: September 19, 2011 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Carmen D. Conde Torres, Esq. C. CONDE & ASSOCIATES 254 San Jose Street, 5th Floor SAN JUAN, PR 00901-1523 Tel: (787) 729-2900 Fax: (787) 729-2203 E-mail: notices@condelaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Ruben A. Jordan, president. Debtor's List of 15 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ QB Construction Inc. -- $3,270,383 P.O. Box 3620066 San Juan, PR 00936-2066 Municipality of San Juan -- $44,355 Deprtamento de Finanzas P.O. Box 70179 San Juan, PR 00936-8179 AAA -- $10,524 P.O. Box 70101 San Juan, PR 00936-8101 Carlos Garcia Rullan, Esq. -- $10,000 Paradigm Associates -- $6,939 Beauchamp Property Management -- $3,560 Deya Elevators Services -- $2,990 RSM ROC & Company -- $2,700 Universal Equipment Sales & Service-- $867 Ramon Rodriguez Quinonez -- $859 MAC Mechanical -- $692 Luis Maymi (Aquazul) -- $630 Con Waste -- $519 Odalys De Los Santos -- $400 Fernando L. Diaz -- $200 QUANTUM FUEL: Incurs $7.8 Million Net Loss in Q1 Fiscal 2012 ------------------------------------------------------------ Quantum Fuel Systems Technologies Worldwide, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss attributable to stockholders of $7.86 million on $6.75 million of total revenue for the three months ended July 31, 2011, compared with a net loss attributable to stockholders of $1.61 million on $3.56 million of total revenue for the same period during the prior year. The Company's balance sheet at July 31, 2011, showed $74.15 million in total assets, $31.62 million in total liabilities, and $42.53 million total stockholders' equity. The Company reported a net loss attributable to stockholders of $11.03 million on $20.27 million of total revenue for the year ended Apri1 30, 2011, compared with a net loss attributable to stockholders of $46.29 million on $9.60 million of total revenue during the prior year. Ernst & Young LLP, in Orange County, California, noted that Quantum Fuel's recurring losses and negative cash flows combined with the Company's existing sources of liquidity and other conditions raise substantial doubt about the Company's ability to continue as a going concern. Alan P. Niedzwiecki, President and CEO, stated, "Our increase in revenues reflects a continued ramp up of the Fisker program and new customer programs including plug-in hybrid vehicle applications, hydrogen programs, and CNG storage system sales. We are excited about these additional opportunities that are opening up with new OEM customers such as General Motors, Daimler and other OEMs and the partnership with Dow Chemical/Dow Kokam on the commercialization of an F-150 PHEV program." A full-text copy of the Form 10-Q is available for free at: http://is.gd/DWyINL About Quantum Fuel Based in Irvine, California, Quantum Fuel Systems Technologies Worldwide, Inc., is a fully integrated alternative energy company and considers itself a leader in the development and production of advanced clean propulsion systems and renewable energy generation systems and services. Quantum Fuel and its senior lender, WB QT, LLC, entered into a Ninth Amendment to Credit Agreement and a Forbearance Agreement on Jan. 3, 2011. The Senior Lender agreed to provide the Company with a $5.0 million non-revolving line of credit, which may be drawn upon at any time prior to April 30, 2011. Advances under the New Line of Credit do not bear interest -- unless an event of default occurs, in which case the interest rate would be 10% per annum -- and mature on April 30, 2011. The Senior Lender also agreed to forbear from accelerating the maturity date for any portion of the Senior Debt Amount and from exercising any of its rights and remedies with respect to the Senior Debt Amount until April 30, 2011. Possible Bankruptcy The Company anticipates that it will need to raise a significant amount of debt or equity capital in the near future in order to repay certain obligations owed to the Company's senior secured lender when they mature. As of June 15, 2011, the total amount owing to the Company's senior secured lender was approximately $15.5 million, which includes approximately $12.5 million of principal and interest due under three convertible promissory notes that are scheduled to mature on Aug. 31, 2011, and a $3.0 million term note that is potentially payable in cash upon demand beginning on Aug. 1, 2011, if the Company's stock is below $10.00 at the time demand for payment is made. If the Company is unable to raise sufficient capital to repay these obligations at maturity and the Company is otherwise unable to extend the maturity dates or refinance these obligations, the Company would be in default. The Company said it cannot provide any assurances that it will be able to raise the necessary amount of capital to repay these obligations or that it will be able to extend the maturity dates or otherwise refinance these obligations. Upon a default, the Company's senior secured lender would have the right to exercise its rights and remedies to collect, which would include foreclosing on the Company's assets. Accordingly, a default would have a material adverse effect on the Company's business and, if the Company's senior secured lender exercises its rights and remedies, the Company would likely be forced to seek bankruptcy protection. RAHWAY HOSPITAL: Moody's Affirms Ba3 Rating on Outstanding Bonds ---------------------------------------------------------------- Moody's Investors Service has affirmed Rahway Hospital's (also known as Robert Wood Johnson University Hospital at Rahway) Ba3 bond rating affecting $10.4 million of outstanding debt issued through the New Jersey Health Care Facilities Finance Authority (see RATED DEBT section at end of report). The outlook is revised to stable from negative. SUMMARY RATING RATIONALE The affirmation of the Ba3 debt rating and the revision of the outlook to stable reflects Rahway Hospital's (Rahway) turnaround of financial performance in the second half of fiscal year (FY) 2010 with the help of QHR Consultants which has continued through the first half of FY 2011 as well as growth in absolute liquidity and liquidity metrics as measured by days cash on hand, and the increased collaboration between Rahway and its legal parent, Robert Wood Johnson University Hospital in New Brunswick (RWJUH) for managed care contracting, potential back office consolidation, and clinical integration. Moody's cautions that the longer-term credit profile of Rahway, as a Ba3 credit rating suggests, still remains a high-risk investment given the hospital's small size, location in a competitive New Jersey market and continued material volume declines driving revenue contraction. STRENGTHS *Material improvement in financial performance through six months of FY 2011 with an operating income of $3.1 million (5.2% margin) and operating cash flow of $5.9 million (9.8% margin) compared to the operating loss of $569 thousand (-0.9% margin) and operating cash flow of $2.5 million (3.8% operating cash flow margin) recorded through six months of FY 2010; following the second half of FY 2010 which held performance for the year at -0.4% operating margin and 3.7% operating cash flow margin *Turnaround driven by expense reductions from QHR initiatives equating to over $7.7 million in annualized savings while revenue enhancements are expected to add $2.3 million in the coming years; 15% reduction in expenses realized in the first half of FY 2011 compared to the same period in the prior year *Growth in absolute liquidity position as of June 30, 2011 with unrestricted cash and investments up to $24.5 million or 82 days cash on hand from $23.7 million or 68 days at fiscal year end (FYE) 2010 (Moody's days cash on hand computation does not exclude bad debt expense); improved cash-to-debt at June 30, 2010 to 114% from 110% at FYE 2010 and above average for the Ba rating category (Moody's 2010 Ba median is 76%) *Evolving relationship with RWJUH resulting in a recent increase in collaboration including joint managed care contracting, a new GPO for the three RWJUH hospitals (Hamilton, Rahway, and New Brunswick), and investigation of possible back office consolidation; RWJUH is the legal parent of Rahway and Hamilton CHALLENGES *Material 9% decline in inpatient admissions and observation stays through six months of FY 2011 compared to the prior year following 20% decline from FY 2008 to FY 2010; projections include 5% declines in volumes annually through 2013 *Material 8.8% decline in operating revenue through six months of FY 2011 driven largely by the material decline in volumes *Heavy reliance on Medicare, 59% of revenues, one of the highest in Moody's portfolio; no Horizon Blue Cross Blue Shield contract for many years *Location in fragmented and competitive market of Union and Middlesex counties with a stagnant and aging population and other sizable community hospitals providing a wider array of services than Rahway *High age of plant (21.5 years) due to low level of capital spending the last several years; management states on site maintenance team addresses facility needs and plant looks better than the age implies *Small sized hospital with $130 million in revenue and 7,000 admissions with limited financial backing from RWJUH New Brunswick. *Half of outstanding debt is variable rate exposing the hospital to put risk and bank risk DETAILED CREDIT DISCUSSION LEGAL SECURITY: Series 1998 bonds are secured by a gross revenue pledge of Rahway Hospital. The Series 2003 bonds ($11 million) are backed by a Letter of Credit from Wells Fargo Bank and rated Aa2/VMIG1. The Letter of Credit expires August 15, 2012. Covenants include 65 days cash on hand measured semiannually and 1.25 times rate covenant measured quarterly based on past twelve months performance. Rahway was compliant with these covenants in FY 2010. INTEREST RATE DERIVATIVES: Floating-to-floating rate swap with Wells Fargo Bank based on $11 million notional amount; expires August, 2015; management reports that there are no collateral requirements and plans to keep the swap outstanding. RECENT DEVELOPMENTS/RESULTS The revision of the outlook to stable from negative reflects the financial improvement demonstrated in the first half of FY 2011, which continues the turnaround that began in the second half of FY 2010. With the assistance of an outside consulting firm, through six months FY 2011, financial performance has shown material improvement, with operating income of $3.1 million (5.2% margin) and operating cash flow of $5.9 million (9.8% margin) compared to the $569 thousand operating loss (-0.9% margin) and $2.5 million operating cash flow (3.8% margin) reported in the same period the prior year. In FY 2010, Rahway reported a second year of unfavorable financial performance with an operating loss of $457 thousand (-0.4% margin) and operating cash flow of $4.9 million (3.7% margin), an improvement over results reported through six months FY 2010. Management states the down turn in performance began the second half of FY 2009 and continued through the first half of FY 2010 and was due to a material declines in inpatient admissions. In response to the downturn in performance, management reduced staff salaries by 5% and management salaries by 10%, eliminated all employer contribution to the defined contribution plan except for the 50% match on the first 4% of employee contributions. Management also hired the consulting firm QHR to assist with the implementation of a productivity measurement system, and review the Hospital's strategies regarding, supply chain, managed care negotiations and revenue cycle process. QHR affirmed the Hospital's supply chain strategy to change group purchasing organizations with the New Brunswick and Hamilton facilities. They also agreed with the Hospital's managed care strategy and made several recommendations regarding revenue cycle improvements, which are in process. The productivity initiative reduced FTEs by 100 FTEs, primarily through attrition as a result of a hiring freeze, reduction in overtime and agency usage and a 25 person layoff Annualized savings and revenue impact is approximately $10 million. Despite the turnaround in year to date performance, revenue declined 8.8% due to the heavy reliance on Medicare (59%) with flat rate increases, and continued decline in inpatient and observation stays (10%), outpatient visits (4%) and outpatient surgeries (8%) through June 30, 2011 compared to June 30, 2010. These recent trends follow a 20% decline in admissions and observation stays from FY 2008 to FY 2010 and 6% decline in revenue over the same period. According to management, part of the volume declines are due to a change in guidelines from the New Jersey Department of Health for the treatment of chest pain resulting in a material decline in cardiac admissions. To meet the new guidelines and reduce the decline in cardiac admissions, a new catherization lab is being installed and is expected to open in October 2011. In addition, the Hospital has received primary stroke designation from the NJ Department of Health, which should reduce some of the decline in admissions. To mitigate the revenue contraction the hospital initiatives have reduced expenses by 15% through six months of FY 2011 outpacing the revenue decline and improving financial performance in the first half of FY 2011. If management's is unable to maintain the recent reduction in cost structure causing a return to FY 2009 or FY 2010 levels of performance, there may be pressure on the rating or outlook. With the improved cash flow in the first half of FY 2011, Rahway's debt service coverage levels improved and are favorable compared to Moody's 2010 Ba medians. Moody's adjusted debt-to-cash flow measured 2.0 times in six months FY 2011 compared 3.7 times in FY 2010 (Moody's 2010 Ba median is 5.1 times) and MADS coverage measured of 3.2 times compared to 2.0 times in FY 2009 (Moody's 2010 Ba median is 2.2 times). The operating losses in FY 2009 and 2010 had a negative impact on the balance sheet; however with year to date performance the balance sheet has shown improvement. As of June 30, 2011 unrestricted cash and investments improved to $24.5 million or 82 days cash from $23.7 million (68 days cash) at the end of FY 2010. Cash-to-debt improved to 114% at June 30, 2011 from 110% at FYE 2010. Despite the improvement in unrestricted cash and investments in the first half of FY 2011 the declines in cash during the prior two years restricted management's ability to spend on capital. Capital spending has been slightly below depreciation on average over the last five years, resulting in a very high average age of plant of 21.4 years in FY 2010 compared to Moody's 2010 national median of 10.3 years. Management states the facility looks better than the average age implied due to good internal maintenance. Cash is conservatively invested in 100% cash and equivalents. Rahway's debt structure is 49% fixed and 51% variable rate exposing the hospital to put risk and bank risk. The variable rate demand bonds are supported by a letter of credit from Well Fargo which expires August 2012; management states they have already begun negotiations to extend the expiration. Cash-to-demand debt is good at 215%. However, the underfunded position of the defined benefit pension plan adds to the liabilities of the hospital. Frozen March 31, 2005, the pension liability is $21.5 million underfunded (73% funded at FYE 2010). Cash-to-comprehensive debt (including short- and long-term debt and lease and pension liability) is 53%. Management is meeting the minimum funding requirements. Rahway's primary service area is five towns in Union and Middlesex counties characterized by an aging and stagnant population evidenced by the above average Medicare exposure (59% of revenue). There are a number of other community hospitals in the broader service area that offer a wider array of services. Rahway has lost market share as a result of the changes to treatment of chest pain and stroke patients Management expects to partially reverse this trend with the opening of the new catherization lab and primary stroke designation but does not have any material service niche to distinguish itself in this market. However, for many years Rahway has had a legal affiliation with A2 rated Robert Wood Johnson University Hospital (RWJUH) which serves as the sole corporate member of Rahway. RWJUH does not guaranty the bonded debt of Rahway but has included Rahway in a new group purchasing organization and in recent management care contracting, Some back office consolidation is being considered as well. Moody's views this recent change in relationship as a credit positive and partly driving the change in outlook to stable. Outlook The revision of the outlook to stable from negative reflects Moody's belief that Rahway has made fundamental changes to its cost structure that will sustain the improved financial performance over the near term despite the volume and revenue declines. Furthermore, with the enhanced support of RWJUH for contracting and marketing, Rahway should be able to slow the volume and revenue declines and maintain current levels of cash flow further improving balance sheet and debt coverage measures. Moody's cautions that the longer-term credit profile of Rahway, as a Ba3 credit rating suggests, still remains a high-risk investment given the hospital's small size, location in a competitive New Jersey market and continued material volume declines driving declines in revenue. WHAT COULD MAKE THE RATING GO UP Growth in volumes and revenue; sustained and improved operating cash flow and growth of absolute liquidity position leading to strengthening of debt ratios; market share gain in profitable service lines WHAT COULD MAKE THE RATING GO DOWN Continued decline in patient volumes leading to continued market share loss; departure from current operating performance leading to weaker debt ratios; decline in liquidity position; increase in debt load KEY INDICATORS Assumptions & Adjustments: -Based on financial statements for Robert Wood Johnson University Hospital at Rahway and Affiliates -First number reflects audit year ended December, 31, 2009 -Second number reflects audit year ended December 31, 2010 -Investment returns normalized at 6% unless otherwise noted *Inpatient admissions: 7,784; 7,074 *Total operating revenues: $134.9 million; $130.2 million *Moody's-adjusted net revenue available for debt service: $7.5 million; $7.0 million *Total debt outstanding: $23.5 million; $21.4 million *Maximum annual debt service (MADS): $3.6 million; $3.6 million *Moody's-adjusted MADS Coverage with normalized investment income: 2.1 times; 2.0 times *Debt-to-cash flow: 4.0 times; 3.7 times *Days cash on hand: 78 days; 68 days *Cash-to-debt: 120%; 110% *Operating margin: -0.4%; -0.4% *Operating cash flow margin: 3.8%; 3.7% RATED DEBT OUTSTANDING (as of December 31, 2010) -Series 1998: $10.5 million outstanding; Ba2 -Series 2003: $11.0 million outstanding; LOC from Wells Fargo; Aa2/VMIG1 The principal methodology used in this rating was Not-for-Profit Hospitals and Health Systems published in January 2008. RASER TECHNOLOGIES: Emerges from Bankruptcy ------------------------------------------- Raser Technologies, Inc., and its debtor affiliates emerged from bankruptcy protection when the effective date of its Third Amended Plan of Reorganization occurred on Sept. 9, 2011. On Aug. 30, 2011, the U.S. Bankruptcy Court for the District of Delaware confirmed the Third Amended Plan. Among other things, the Plan provides that all common stock and other equity ownership interests in the Company are canceled and that the holders of those securities do not receive any property or distribution under the Plan. A copy of the Third Amended Plan is available at: http://bankrupt.com/misc/raser.3rdamendedjointplan.pdf A copy of the Third Amended Disclosure Statement with respect to the Third Amended Plan is available at: http://bankrupt.com/misc/raser.3rdamendedDS.pdf About Raser Technologies Raser Technologies Inc. (NYSE: RZ) is a renewable energy company focusing on geothermal power development. The Company has one operating plant in Utah and another eight early and development stage projects in Utah, New Mexico, Nevada and Oregon. The Company invested $120 million in Thermo No. 1, its sole operating plant, which is near Beaver, Utah, and has a power generation capacity of 10 megawatts. The City of Anaheim, California, agreed in 2008 to buy the generated electricity for 20 years. Provo, Utah-based Raser Technologies, also known as Wasatch Web Advisors, Inc., filed for Chapter 11 protection (Bankr. D. Del. Case No. 11-11315) on April 29, 2011. Other affiliates filed for separate Chapter 11 protection on April 29, 2011, (Bankr. D. Del. Case Nos. 11-11319 to 11-11350). Peter S. Partee, Sr., Esq., and Richard P. Norton, Esq., at Hunton & Williams LLP, represent the Debtors in their restructuring efforts. The Debtors' local counsel is Bayard, P.A. Sichenzia Ross Friedman Ference LLP serves as the Debtors' corporate counsel. The Debtors' financial advisor is Canaccord Genuity. A three-member official committee of unsecured creditors was formed in the Chapter 11 case. Foley & Lardner LLP represents the Committee. The Committee also tapped Womble Carlyle Sandridge & Rice, PLLC, as co-counsel, BDO Consulting, a division of BDO USA, LLP, as its financial advisor and accountant; and BDO Capital Advisors, LLC its investment banker. The Company reported a net loss of $101.80 million on $4.25 million of revenue for the fiscal year ended Dec. 31, 2010, compared with a net loss of $20.90 million on $2.19 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010, showed $41.84 million in total assets, $107.78 million in total liabilities, $5.00 million of Series A-1 cumulative convertible preferred stock, and a stockholders' deficit of $70.94 million. R.E. LOANS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: R.E. Loans, LLC 201 Lafayette Circle Lafayette, CA 94549 Bankruptcy Case No.: 11-35865 Chapter 11 Petition Date: September 13, 2011 Court: U.S. Bankruptcy Court Northern District of Texas (Dallas) Judge: Barbara J. Houser About the Debtor: American Bankruptcy Institute reports that R.E. Loans LLC filed for chapter 11 protection, citing defaults on loans from nearly all of its borrowers. R.E. Loans is a mortgage company. Debtor's Counsel: Holland N. O'Neil, Esq. GARDERE, WYNNE AND SEWELL 1601 Elm Street, Suite 3000 Dallas, TX 75201 Tel: (214) 999-4961 Fax: (214) 999-4667 E-mail: honeil@gardere.com - and - Virgil Ochoa, Esq. GARDERE, WYNNE AND SEWELL 1601 Elm Street, Suite 3000 Dallas, TX 75201 Tel: (214) 999-4723 Fax: (214) 999-3723 E-mail: vochoa@gardere.com Debtor's Other Management Professional: MACKINAC PARTNERS Debtor's Reorganization Counsel: STUTMAN, TREISTER & GLATT P.C. Debtor's Co-Counsel: GARDERE WYNNE SEWELL LLP Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $100,000,001 to $500,000,000 The petition was signed by James A. Weissenborn, chief restructuring officer. Affiliates that simultaneously sought Chapter 11 protection: Debtor Case No. ------ -------- R.E. Future, LLC 11-35868 Capital Salvage, a California corp. 11-35869 Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ J. Robert Orton, III Note Holder $11,438,053 65 Sea View Avenue Piedmont, CA 94611 Tom Enterprise GP Note Holder $9,094,826 3744 Grove Avenue Palo Alto, CA 94303 Sherratt Reicher, President Note Holder $7,567,452 3200 Danville Boulevard, Suite 200 Alamo, CA 94507 Patrick & Linda Reilly, Ttees Note Holder $6,819,306 30503 Palomares Road Castro Valley, CA 94552 Kris Jay Hamrick Note Holder $5,548,457 16 Hillway Avenue San Francisco, CA 94117 North American Financial Corp. Note Holder $5,126,971 23950 Mission Boulevard Hayward, CA 94544 Gifford Fong & Vivian Fong Note Holder $5,105,226 3658 Mt. Diablo Boulevard, Suite 200 Lafayette, CA 94549 S. Walter Kran Note Holder $4,591,295 2695 Lakeview Drive San Leandro, CA 94577 Steven G. Fong Note Holder $3,968,351 3658 Mt. Diablo Boulevard, Suite 200 Lafayette, CA 94549 Edwin/Gertrude M. Blue, Ttees Note Holder $3,948,508 87 Flood Circle Atherton, CA 94027-2108 Paul & Patricia Cianci Trustees Note Holder $3,922,546 P.O. Box 2061 Martinez, CA 94553 Peter B. Slabaugh Note Holder $3,914,039 250 Scenic Avenue Piedmont, CA 94611 Lori Berney Note Holder $3,762,537 430 Landford Court El Dorado Hills, CA 95762 Pensco Tr Co Fbo P Simmons Note Holder $3,745,073 P.O. Box 1871 Sonoma, CA 95476 Ron Nunn - Architect Note Holder $3,181,947 1385 St. James Drive St. Helena, CA 94574 Theodore/Virgene Jones Ttees Note Holder $2,836,970 234 Casitas Avenue San Francisco, CA 94127 J & E Investments Note Holder $2,729,294 4973 Gordon Valley Road Fairfield, CA 94534 Leigh or Mary Iverson, Ttees Note Holder $2,551,646 2718 Santa Lucia Carmel, CA 93923 Ira Services Trust Company, Note Holder $2,545,272 Custodian 5 Shadow Creek Lane Orinda, CA 94563 Thomas A. Palmer Note Holder $2,535,592 162 Alta Road Oakland, CA 94618 REALOGY CORP: 2013 Debt Trades at 9% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which Realogy Corp. is a borrower traded in the secondary market at 90.60 cents-on-the- dollar during the week ended Friday, Sept. 16, 2011, an increase of 3.52 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 Sept. 30, 2013, and carries Moody's B1 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 104 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Realogy Corp. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have around 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. Realogy Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $21 million on $1.18 billion of net revenues for the three months ended June 30, 2011, compared with net income of $223 million on $1.25 billion of net revenues for the same period during the prior year. The Company also reported a net loss of $258 million on $2.01 billion of net revenues for the six months ended June 30, 2011, compared with net income of $26 million on $2.07 billion of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $7.98 billion in total assets, $9.29 billion in total liabilities, and a $1.31 billion total deficit. Realogy has 'Caa2' corporate family rating and 'Caa3' probability of default rating, with positive outlook, from Moody's. The rating outlook is positive. Moody's said in January 2011 that the 'Caa2' CFR and 'Caa3' PDR reflects very high leverage, negative free cash flow and uncertainty regarding the timing and strength of a recovery of the residential housing market in the U.S. Moody's expects Debt to EBITDA of about 14 times for the 2010 calendar year. Despite the recently completed and proposed improvements to the debt maturity profile, the Caa2 CFR continues to reflect Moody's view that current debt levels are unsustainable and that a substantial reduction in debt levels will be required to stabilize the capital structure. REALOGY CORP: 2016 Debt Trades at 18% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which Realogy Corp. is a borrower traded in the secondary market at 82.00 cents-on-the- dollar during the week ended Friday, Sept. 16, 2011, an increase of 0.50 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 425 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 10, 2016, and carries Moody's B1 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 104 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Realogy Corp. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have around 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. Realogy Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $21 million on $1.18 billion of net revenues for the three months ended June 30, 2011, compared with net income of $223 million on $1.25 billion of net revenues for the same period during the prior year. The Company also reported a net loss of $258 million on $2.01 billion of net revenues for the six months ended June 30, 2011, compared with net income of $26 million on $2.07 billion of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $7.98 billion in total assets, $9.29 billion in total liabilities, and a $1.31 billion total deficit. Realogy has 'Caa2' corporate family rating and 'Caa3' probability of default rating, with positive outlook, from Moody's. The rating outlook is positive. Moody's said in January 2011 that the 'Caa2' CFR and 'Caa3' PDR reflects very high leverage, negative free cash flow and uncertainty regarding the timing and strength of a recovery of the residential housing market in the U.S. Moody's expects Debt to EBITDA of about 14 times for the 2010 calendar year. Despite the recently completed and proposed improvements to the debt maturity profile, the Caa2 CFR continues to reflect Moody's view that current debt levels are unsustainable and that a substantial reduction in debt levels will be required to stabilize the capital structure. RENAISSANCE SURGICAL: Cash Use Hearing Continued Until Sept. 22 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California approved a stipulation continuing until Sept. 22, 2011, at 10:00 a.m., the hearing to consider Renaissance Surgical Arts at Newport Harbor, LLC's request to use cash collateral and obtain unsecured postpetition financing. Pursuant to a stipulation among the Debtor, Plaza Bank, and Wells Fargo Equipment Finance, Inc., and Pacific Medical Plaza, L.P., the parties agreed to continue the hearing because the Debtor and its chief restructuring officer, XRoads Solutions, LLC, needed additional time to (i) complete an internal and external review of its receivables base for the purpose of completely assessing the value and collectability of the Debtor's existing health care receivables; and (ii) permit the Debtor to propose an amended cash collateral budget based upon that review. The parties also agreed that the Debtor will continue to operate under the preliminary budget until Sept. 23. The Debtor will use the money to fund its business operations. The Debtor related that Plaza Bank's interest is adequately protected by: (i) regular monthly payments under the Plaza Note, commencing Sept. 4, 2011; (ii) Renaissance's ongoing business operations, sufficient to maintain Plaza's receivables base at levels above those in existence at the commencement of the Plaza Note; and (iii) a replacement lien on cash, accounts receivable, and proceeds acquired or generated with any cash collateral with a value equal to the amount of any cash collateral expended by the Debtor. Debtor-In-Possession Financing from its Physician Members The Doctors' Group, comprised of physicians who are also Renaissance members, has offered to extend to the Debtors the financing. The Doctors' Group already have lent a significant amount to the Debtors. The Doctors' Group offered to provide the Debtor immediate credit on these general terms: 1. Amount: $50,000 each up to $600,000 total. If Renaissance is oversubscribed, each participant's commitments will be reduced pro rata. 2. Facility: Revolving credit facility to be held in trust by a trustee. 3. Term: 180 days with optional 60 day extensions not to exceed 360 days. 4. Interest Rate on Drawn Funds: 10% per annum during first 180 days +1% per annum, for each additional 60 day extension. Interest will be paid quarterly. RSANH can elect to pay interest in kind (by adding to the principal balance) in any particular period subject to a 2.5% premium (i.e. 12.5% per annum, if during the first 180 days). 5. Interest Rate on Un-Drawn Funds: 2% per annum. 6. Ranking: Administrative Priority. About Renaissance Surgical Arts at Newport Harbor An involuntary Chapter 11 petition was filed against Costa Mesa, California-based Renaissance Surgical Arts at Newport Harbor (Bankr. C.D. Calif. Case No. 11-19749) on July 11, 2011. On Aug. 2, 2011, the Court entered an order for relief. Judge Erithe A. Smith presides over the case. The petitioners are Dr. Gary Reiter, allegedly owed $907,515; Vascular Resources Inc., allegedly owed $2,462,492; and Anthony C. Pings, allegedly owed $266,169. The Petitioners are represented by Robert P. Goe, Esq., at Goe & Forsythe, LLP. RENAISSANCE SURGICAL: Court OKs Seelig as Patient Care Ombudsman ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California approved the approved the appointment of: Jerry Seelig 4275 Baldwin Avenue Culver City, CA 90232 as patient care ombudsman in the Chapter 11 case of Renaissance Surgical Arts At Newport Harbor, LLC. Previously, the Debtor and the U.S. Trustee for Region 16 sought and obtained approval of a stipulation requesting the Court to direct the appointment of a patient care ombudsman. Pursuant to the stipulation: -- the patient care ombudsman will have access and may review confidential patient records as necessary and appropriate to discharge his duties and responsibilities, provided however, that the ombudsman protects the confidentiality of the records including, but not limited to the Health Insurance Portability and Accountability Act of 1996 and federal HIPPA privacy regulations at 45 Code of Federal Regulations, and -- the fees and costs of the ombudsman, including those fees and costs of professionals employed by the ombudsman, will not exceed $40,000 for the entire case. However, the $40,000 cap on fees and costs can be adjusted upward upon application to the Court by the ombudsman, the Debtor or the U.S. Trustee. To the best of the U.S. Trustee's knowledge, the ombudsman is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The U.S. Trustee is represented by: Michael Hauser, Esq. Ronald Reagan Federal Building 411 West Fourth Street, Suite 9041 Santa Ana, CA 92701-8000 Tel: (714) 338-3400 Fax: (714) 338-3421 E-mail: Michael.Hauser@usdoj.gov About Renaissance Surgical Arts at Newport Harbor An involuntary Chapter 11 petition was filed against Costa Mesa, California-based Renaissance Surgical Arts at Newport Harbor (Bankr. C.D. Calif. Case No. 11-19749) on July 11, 2011. On Aug. 2, 2011, the Court entered an order for relief. Judge Erithe A. Smith presides over the case. The petitioners are Dr. Gary Reiter, allegedly owed $907,515; Vascular Resources Inc., allegedly owed $2,462,492; and Anthony C. Pings, allegedly owed $266,169. The Petitioners are represented by Robert P. Goe, Esq., at Goe & Forsythe, LLP. RIO RANCHO: Names Thomas Kent as New Attorney --------------------------------------------- Rio Rancho Super Mall LLC informed the U.S. Bankruptcy Court for the Central District of California that it named Thomas E. Kent, Esq., as new attorney to substitute Justin Lee, Esq., at Lee & Kent. Moreno Valley, California-based Rio Rancho Supermall, LLC, owns, manages and operates a commercial property known as the Rio Rancho Super Mall that is utilized as an indoor swap-meet and retail mall. It filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-16835) on March 2, 2011. Thomas E. Kent, Esq., at Lee & Kent, in Los Angeles, California, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $7,691,584 in assets and $12,253,866 in debts as of the Chapter 11 filing. ROSSCO HOLDINGS: Plan Outline Hearing Continued Until Jan. 19 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California has continued from Aug. 25, 2011, to Jan. 19, 2012 at 1:30 p.m, the hearing to consider adequacy of the disclosure statement explaining Rossco Holdings, Inc. Chapter 11 Plan. As reported in the Troubled Company Reporter on Aug. 17, 2011, the Debtor has asked the Court to continue the hearing to determine the adequacy of its disclosure statement to the same date as a continued hearing set on the Chapter 11 trustee's disclosure statement in the Chapter 11 case of Leonard M. Ross, to a date after Jan. 2, 2012, convenient to the Court's calendar, subject to further continuance. The TCR reported that the motion was brought as a companion motion to the contemporaneously filed Chapter 11 trustee's motion for order authorizing continuance of hearing to determine adequacy of disclosure statement filed by Chapter 11 trustee Howard M. Ehrenberg in the Chapter 11 case of Leonard M. Ross, and the contemporaneously filed motions seeking identical relief in the Chapter 11 cases of each of the Debtor's affiliated debtors-in- possession, on the grounds that the Debtor's plan process must proceed in tandem with the Chapter 11 trustee's Plan in the Ross Case in order to maximize recoveries for creditors. About Rossco Holdings College Station, Texas-based Rossco Holdings, Inc., filed for Chapter 11 protection (Bankr. W.D. Tex. Case No. 10-60953) on Aug. 2, 2010. The new California Case No. of Rossco Holdings is LA10-55951BB. David J Richardson, Esq., and Laura L Buchanan, Esq., at The Creditors' Law Group, represent the Debtor. The Debtor disclosed $28,415,681 in assets and $10,567,302 in liabilities as of the Petition Date. Affiliates Monte Nido Estates, LLC; LJR Properties, Ltd.; WM Properties, Ltd.; Colony Lodging, Inc.; and Rossco Plaza, Inc., filed separate Chapter 11 petitions. RQB RESORT: Goldman Sachs Supports Plan Exclusivity Termination --------------------------------------------------------------- Secured creditor Goldman Sachs Mortgage Company notifies the U.S. Bankruptcy Court for the Middle District of Florida that it joins Marriott International Inc.'s motion to terminate RQB Resort, LP, and RQB Development, LP's exclusive periods to file an solicit acceptances for the proposed Chapter 11 Plan. As reported in the Troubled Company Reporter on Aug. 15, 2011, Marriott International said, "The bankruptcy case has gone on too long and cost too much money." Allowing Marriott International to sponsor a plan "will equitably fulfill the purpose behind" the right of first refusal in its franchise agreement with Sawgrass and avoid a $10 million damage claim against the resort for breaching the provision, Marriott International said in court papers. Marriott International said in a filing that it will bring a motion to compel the resort to assume or reject the franchise agreement. According to GSMC, the parties that have the greatest stake in the future and success of the Sawgrass Marriott Resort, including GSMC and Marriott, must have the ability to propose a plan which makes the critical decisions about treatment of vendors, club members, and executory contracts and license agreements, without being beholden to the Debtors' outgoing principals, who seek to extort insider releases and improper insider payments in exchange for cooperation. GSMC explains that the Debtors' exclusivity periods must be terminated because, among other things: -- even after giving up on their effort to raise new capital and after deciding to turn the property over to GSMC, the Debtors still persist in their refusal to negotiate the terms of the Plan with creditors; -- the Debtors failed to make progress in negotiations with their most significant creditor, GSMC, for the reason that they refuse to communicate with GSMC; and -- the Debtors did not make progress towards reorganization. About RQB Resort LP RQB Resort LP and RQB Development LP own Florida's Sawgrass Marriott Resort, the site of the U.S. PGA Tour's Tournament Players Championship. Ponte Vedra Beach, Florida-based RQB Resort, LP, aka Sawgrass Marriott Resort & Cabana Club, filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-01596) on March 1, 2010. The Company's affiliate -- RQB Development, LP, aka Sawgrass Marriott Golf Villas & Spa -- filed a separate Chapter 11 petition. The Company estimated its assets and debts at $100 million to $500 million in its Chapter 11 petition. SEARCHMEDIA HOLDINGS: Five Directors Elected at Annual Meeting -------------------------------------------------------------- At the annual meeting of stockholders of SearchMedia Holdings Limited for 2011 and 2010, held on Sept. 13, 2011, the stockholders elected five nominees to serve as directors of the Company until the 2012 Annual Meeting of Stockholders: (1) Robert Fried; (2) Chi-Chuan (Frank) Chen; (3) Steven D. Rubin; (4) Peter W.H. Tan; and (5) Qinying Liu. Stockholders approved the amendment to the Company's Amended and Restated 2008 Share Incentive Plan by increasing the number of authorized ordinary shares available for grant under the 2008 Plan from 1,796,492 ordinary shares to 3,000,000 ordinary shares. Marcum Bernstein & Pinchuk LLP has been approved, ratified and confirmed as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2011. About SearchMedia SearchMedia is a leading nationwide multi-platform media company and one of the largest operators of integrated outdoor billboard and in-elevator advertising networks in China. SearchMedia operates a network of high-impact billboards and one of China's largest networks of in-elevator advertisement panels in 50 cities throughout China. Additionally, SearchMedia operates a network of large-format light boxes in concourses of eleven major subway lines in Shanghai. SearchMedia's core outdoor billboard and in- elevator platforms are complemented by its subway advertising platform, which together enable it to provide a multi-platform, "one-stop shop" services for its local, national and international advertising clients. Marcum Bernstein & Pinchuk LLP, in New York, expressed substantial doubt about SearchMedia Holdings' ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring net losses from operations and has a working capital deficiency. The Company reported a net loss of $46.6 million on $49.0 million of revenues for 2010, compared with a net loss of $22.6 million on $37.7 million of revenues for 2009. The Company's balance sheet at Dec. 31, 2010, showed $86.9 million in total assets, $86.4 million in total liabilities, and stockholders' equity of $463,000. SHADY ACRES: Modified Plan of Reorganization Confirmed ------------------------------------------------------ The Hon. Whitney Rimel has confirmed Shady Acres Dairy's modified plan of reorganization dated Aug. 19, 2011. Under the modified plan, the Debtor will continue to operate its business after confirmation of the Plan. The Debtor has taken steps to improve its operations including (a) increasing cow comfort in order to increase milk production, (b) computerized its feed mixing to control milk cow diet for increased milk production and reduced feed costs, (c) increase the number of milk cows, while decreasing nonessential calves and heifers, and (d) work with the Debtor's veterinarian to address fertility problems and increase pregnancy levels. The Debtor believes that these actions have improved its business and ability to make payments required under the Plan. Based on these improvements, the Debtor projects that its business will generate gross income of about $34.07 million between March 1, 2011, and Feb. 28, 2014. The Debtor's expenses for the same period are projected to be $28.6 million. This will leave net income of $5.5 million. The Debtor projects that the payments required by the Plan will be $4.8 million for the same period. The Debtor will manage its operations including, but not limited to, general dairy management, payment processes, and funds investment. The treatment of claims under different classification of claims are: A. Class 1 Claims (Administrative Expense Claims) will be paid on the Effective Date, or after Court order if necessary, unless the claimants agree to a different treatment. B. Class 2 Claims (Other Priority Claims) will receive no distribution because there are no claims of this class. C. Class 3 Claim (Secured Claim of Linder Equipment Company) was paid in full according to the terms of its loan documents in November 2010. D. Class 4 Claim (Secured Claim of Laura Merritt) will receive the payments required by the Promissory Note and Deed of Trust executed in favor of the Class 4 Claimant. The Debtor will make monthly payments required by the Promissory Note to the Class Four Claimant until the claim is paid in full. E. Class Five Claim (Secured Claim of Ruth Ann Latson) will receive the payments required by the Promissory Note and Deed of Trust. F. Class 6 Claims (Secured Claims of Farm Credit West, FLCA) will be all due and payable on the date that is the 10th anniversary of the Effective Date (i.e., an September 1, 2011 Effective Date would mean each of the Class 6 Claims would be all due and payable on September 1, 2021). G. Class 7 Claims (Secured Claims of Farm Credit West, PCA) will receive payments expected to be received from the creamery on Sept. 1, 2011, in accordance with the existing loan documents for purposes of determining the amount of the Class Seven Claims as of the Effective Date. H. Class 8 Claim (Secured Claim of Penny Newman Grain Co.) will be paid $3,188.68 per month commencing on the Effective Date for a period of five years, at which time the claim will be all due and payable. I. Class Nine Claim (Secured Claim of Penny Newman Milling) will be paid $1,910 per month commencing on the Effective Date for a period of five years, at which time the Claim will be all due and payable. J. Class Ten Claim (Secured Claim of Fresno County Tax Collector) will be $4,150 per month commencing on the Effective Date for a period of one year, at which time the claim will be all due and payable. K. Class Eleven Claim (Secured Claim of Western Finance and Lease) will be paid $1,400 per month commencing on the Effective Date until the Claim is paid in full, including principal, accrued interest, and allowed attorneys fees and costs. L. Class Twelve Claims consist of all executory contracts and unexpired leases of the Debtor, which are unimpaired under the Plan. All executory contracts and unexpired leases not rejected before the Confirmation Date will be assumed under the Plan. Any general unsecured claim from the rejection of executory contracts and unexpired leases will be treated as a Class 14 Claim. M. The Class Thirteen Claims consist of all allowed general unsecured claims owed $3,500 or less. The Claims will not accrue interest and will receive a pro-rata distribution of a one-time payment of $4,000 within 30 days of the Effective Date of the Plan. N. Class Fourteen Claims consist of the allowed general unsecured claims not included in the Class Thirteen Claims. The Debtor will make payments totaling $50,000 semi-annually commencing in November 2011, and continuing each May and November of each year through May 2016, or until all claims are paid in full, whichever is first. O. Class Fifteen Claims (Interests of Beverly Anker, Edward Anker, Jr., Christopher Anker and Joshua Anker) will retain their interests in Debtor. P. Class Sixteen Claims are the claims or interests held by the Debtor. The Debtor will retain its assets and will not be required to liquidate any of its assets. The Debtor will manage its affairs subject to the provisions of he Plan without the appointment of a trustee or other outside management or control. A full-text copy of the Debtor's modified plan is available for free at http://bankrupt.com/misc/SHADYACRES_planmodified.pdf About Shady Acres Dairy Visalia, California-based Shady Acres Dairy is engaged in a dairy and farming business in Fresno and Tulare Counties, California. It filed for Chapter 11 protection (Bankr. E.D. Calif. Case No. 10-19058) on Aug. 9, 2010. Hagop T. Bedoyan, Esq., at Klein, Denatale, Goldner, Cooper, Rosenlieb & Kimball, LLP, represents the Debtor. The Company disclosed $23,953,922 in assets and $23,462,173 in liabilities as of the Petition Date. SHEA HOMES: S&P Affirms 'B' Corp. Credit Rating; Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Shea Homes L.P. and its subsidiary, Shea Homes Funding Corp., to stable from positive. "We also affirmed our 'B' corporate credit and senior secured issue ratings on Shea, and the recovery rating on the company's secured debt remains '4', indicating our expectation for an average (30%-50%) recovery in the event of a payment default," S&P related. "We revised our outlook on the company to stable because we do no expect meaningful improvement in the homebuilding sector in the next 12 months," said credit analyst Matthew Lynam. "Our ratings and outlook on Shea reflect ongoing weakness in the homebuilder's core markets, as illustrated by low sales absorption levels and negligible pricing power, which will continue to weigh on profitability." Outlook "The outlook is stable. We expect homebuilding fundamentals to remain weak over the next year and the company to prudently conserve cash while delivering a modest level of new homes from its existing platform. We would consider a downgrade if liquidity drops below $100 million, possibly from aggressive land acquisitions or accelerated cash burn. Absent improved prospects for a better pricing environment or higher near term sales absorption, an upgrade is unlikely in the next 12 months," S&P related. SHENGDATECH INC: CRO and Members OK'd to Act on Debtor's Behalf --------------------------------------------------------------- Hon. Bruce T. Beesley of the U.S. Bankruptcy Court for the District of Nevada appointed Michael Kang, chief restructuring officer, and Carl Mudd and Sheldon Saidmann, members of the special committee of the board of directors of Shengdatech, Inc., as representatives authorized to act on behalf of the Debtor. As reported in the Troubled Company Reporter on Sept. 14, 2011, the chief restructuring officer for ShengdaTech Inc. was granted a preliminary injunction preventing founder and controlling shareholder Chen Ziangzhi from interfering with management. The TCR also reported that the ruling by Judge Bruce T. Beesley described how outside auditors discovered "serious discrepancies in [the company's] financial statements" in March. Further investigation by a special committee of the board concluded that "certain" financial records "may have been falsified in whole or in part," Judge Beesley said. The judge is preventing Mr. Chen or anyone else from interfering with management, displacing the chief restructuring officer, or appointing another member to the deadlocked four-member board. The Court ruled that the CRO and members may exercise the power to act on behalf of the Debtor without further action by the Debtor's directors or stockholders. About ShengdaTech Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano precipitated calcium carbonate for the tire industry. ShengdaTech converts limestone into nano-precipitated calcium carbonate (NPCC) using its proprietary and patent-protected technology. NPCC products are increasingly used in tires, paper, paints, building materials, and other chemical products. In addition to its broad customer base in China, the Company currently exports to Singapore, Thailand, South Korea, Malaysia, India, Latvia and Italy. ShengdaTech sought Chapter 11 bankruptcy protection from creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno, Nevada, in the United States. The Shanghai-China based company said in its bankruptcy filing it would fire all of its officers and restructure to try to recover from an accounting scandal. The Company disclosed US$295.4 million in assets and US$180.9 million in debt as of Sept. 30, 2011. The Company's legal representative in its Chapter 11 case is Greenberg Traurig, LLP. The Board of Directors Special Committee's legal representative is Skadden, Arps, Slate, Meagher & Flom LLP. On Aug. 23, 2011, the Court entered an interim order confirm the Board of Directors Special Committee's appointment of Michael Kang as the Debtor's chief restructuring officer. SHENGDATECH INC: Taps Skadden Arps & Three Other Firms ------------------------------------------------------ BankruptcyData.com reports that ShengdaTech filed with the U.S. Bankruptcy Court motions to retain: * Lionel Sawyer & Collins (Contact: Jennifer A. Smith) as Nevada special counsel to the Company (acting through the special committee of the board) at the following hourly rates attorney at $185 to $650, law clerk at $140 and paralegal at $160 to $200; * Greenberg Traurig (Contact: Nancy A. Peterman) as counsel at the following hourly rates: shareholder at $340 to $935, of counsel/special counsel at 360 to $935, associate at $175 to $610 and legal assistant/paralegal at $60 to $310; * Skadden, Arps, Slate, Meagher & Flom (Contact: John K. Lyons) as special counsel at the following hourly rates: partner at $795 to $1,095, counsel and special counsel at $770 to $860, associate at $365 to $710 and paraprofessional at $195 to $295; and * PricewaterhouseCoopers (PwC) and PricewaterhouseCoopers Consultants (Shenzhen) (Contact: Daniel Williams) as forensic accountant to the Company (acting through the special committee of the board) at the following hourly rates for PWC: partner/principal at $750, director/senior manager at $550 to $590, manager at $420, senior associate at $350, associate at $295 and secretarial at $100 and the following hourly rates for PwC Consultants: partner at (RMB) $4,485, director at $4,095, associate director at $3,705, senior manager at $3,315, manager at $2,600, assistant manager at $1,950, senior associate at $1,625 and associate at 878. About ShengdaTech Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano precipitated calcium carbonate for the tire industry. ShengdaTech converts limestone into nano-precipitated calcium carbonate (NPCC) using its proprietary and patent-protected technology. NPCC products are increasingly used in tires, paper, paints, building materials, and other chemical products. In addition to its broad customer base in China, the Company currently exports to Singapore, Thailand, South Korea, Malaysia, India, Latvia and Italy. ShengdaTech sought Chapter 11 bankruptcy protection from creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno, Nevada, in the United States. The Shanghai-China based company said in its bankruptcy filing it would fire all of its officers and restructure to try to recover from an accounting scandal. The Company disclosed US$295.4 million in assets and US$180.9 million in debt as of Sept. 30, 2011. The Company's legal representative in its Chapter 11 case is Greenberg Traurig, LLP. The Board of Directors Special Committee's legal representative is Skadden, Arps, Slate, Meagher & Flom LLP. On Aug. 23, 2011, the Court entered an interim order confirm the Board of Directors Special Committee's appointment of Michael Kang as the Debtor's chief restructuring officer. Alvarez & Marsal North America, LLC, is the Company's chief restructuring officer. SK FOODS: Dist. Ct. to Consider Whether to Hear Trustee's Suit -------------------------------------------------------------- Senior District Judge Lawrence K. Karlton will consider at a hearing on Oct. 24 the defendants' motion to withdraw bankruptcy court reference of the case, Bradley D. Sharp, Chapter 11 Trustee, v. SKPM Corp., et al., (In re SK Foods, L.P.), Adv. Pro. No. 11- 2337 (Bankr. Case No. 09-29162-D-11). Judge Karlton denied the defendants' Sept. 12, 2011 ex parte "emergency" motion for an order staying all bankruptcy court proceedings in Sharp v. SKPM Corp. A copy of Judge Karlton's Sept. 14, 2011 Order is available at http://is.gd/jySFmffrom Leagle.com. SK Foods LP ran a tomato processing facility. It filed for Chapter 11 bankruptcy protection after being dropped by its lending group. Creditors filed an involuntary Chapter 11 petition against SK Foods LP and affiliate RHM Supply/ Specialty Foods Inc. (Bankr. E.D. Calif. Case No. 09-29161) on May 8, 2009. SK Foods had said it was preparing to file a voluntary Chapter 11 petition when the creditors initiated the involuntary case. The Company later put itself into Chapter 11 and Bradley D. Sharp was appointed as Chapter 11 trustee. The Debtors were authorized on June 26, 2009, to sell the business for $39 million cash to a U.S. arm of Singapore food processor Olam International Ltd. The replacement cost for the assets is $139 million, according to Olam. As reported by the Troubled Company Reporter on Feb. 19, 2010, a federal grand jury returned a seven-count indictment charging Frederick Scott Salyer, former owner and CEO of SK Foods, with violations of the Racketeer Influenced and Corrupt Organizations Act, in connection with his direction of various schemes to defraud SK Foods' corporate customers through bribery and food misbranding and adulteration, and with wire fraud and obstruction of justice. SOLYNDRA LLC: U.S. Treasury Probes $535-Mil. Loan ------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that the U.S. Department of the Treasury's inspector general on Thursday launched an investigation into a $535 million government loan to bankrupt Solyndra LLC, adding to the furor over the solar panel maker's collapse. Law360 says Solyndra, once a centerpiece of President Barack Obama's green jobs initiative, filed for bankruptcy protection earlier in September, prompting a raid by the FBI as well as investigations by the U.S. Department of Energy and Congress into the company's government backing and sudden failure. About Solyndra LLC Founded in 2005, Solyndra LLC is a U.S. manufacturer of solar photovoltaic solar power systems specifically designed for large commercial and industrial rooftops and for certain shaded agriculture applications. The Company had approximately 968 full time employees and 211 temporary employees. Solyndra has sold more than 500,000 of its panels since 2008 and generated cumulative sales of over $250 million. Fremont, California-based Solyndra and affiliate 360 Degree Solar Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at least the third solar company to seek court protection from creditors since August 2011. Solyndra owed secured lenders $783.8 million, including $527.8 million to the U.S. government pursuant to a federal loan guarantee, and held assets valued at $859 million as of the Petition date. The U.S. Federal Financing Bank, owned by the U.S. Treasury Department, is the Company's biggest lender. In the Chapter 11 cases, the Debtors are pursuing a two-pronged strategy to effectuate either a sale of their business to a "turnkey" buyer who may acquire substantially all of Solyndra's assets or, if the Debtors are unable to identify any such potential buyers, an orderly liquidation of the Debtors' assets for the benefit of their creditors. Judge Mary F. Walrath presides over the Debtors' cases. The Debtors are represented by Pachulski Stang Ziehl & Jones LLP as legal adviser. SOLYNDRA LLC: Can Pay Prepetition Claims of Service Providers ------------------------------------------------------------- The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware authorized Solyndra LLC and its debtor affiliates to pay prepetition claims of essential service providers and warehousemen in an amount not exceeding $3,150,000. However, the payment of the prepetition claims will not be deemed to be a waiver of rights regarding the extent, validity, perfection or possible avoidance of the payments and any related liens. The Debtors do not concede that any liens (contractual, common law, statutory, or otherwise) satisfied pursuant to this order are valid, and the Debtors expressly reserve the right to contest the extent, validity, or perfection or seek the avoidance of all such liens. In return for paying the Critical Vendor Claims, the Debtors will use their reasonable best efforts to require the applicable Critical Vendor to provide favorable trade credit terms for the postpetition delivery of goods and services. Specifically, the Debtors propose to condition the payment of Critical Vendor Claims upon each Critical Vendor's agreement to continue supplying goods and services on terms that are acceptable to the Debtors. In some circumstances, the Debtors may require certain Critical Vendors to enter into a contractual agreement evidencing those terms. If a Critical Vendor accepts payment pursuant to this order, and thereafter does not continue to provide goods or services on prepetition trade terms, then: (a) any payment to that Critical Vendor on account of a Critical Vendor Claim may be deemed to be an improper postpetition transfer, and, thus, recoverable by the Debtors in cash upon written request; and (b) upon recovery of the payment by the Debtors, the Critical Vendor Claim will be reinstated as if the payment had not been made. If there exists an outstanding postpetition balance due from the Debtors to a Critical Vendor, the Debtors may elect to recharacterize and apply any payment made to the outstanding postpetition balance and the Critical Vendor will be required to repay to the Debtors those paid amounts that exceed the postpetition obligations then outstanding without the right of any setoffs, claims, provisions for payment of any claims, or otherwise. About Solyndra LLC Founded in 2005, Solyndra LLC is a U.S. manufacturer of solar photovoltaic solar power systems specifically designed for large commercial and industrial rooftops and for certain shaded agriculture applications. The Company had approximately 968 full time employees and 211 temporary employees. Solyndra has sold more than 500,000 of its panels since 2008 and generated cumulative sales of over $250 million. Fremont, California-based Solyndra and affiliate 360 Degree Solar Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at least the third solar company to seek court protection from creditors since August 2011. Solyndra owed secured lenders $783.8 million, including $527.8 million to the U.S. government pursuant to a federal loan guarantee, and held assets valued at $859 million as of the Petition date. The U.S. Federal Financing Bank, owned by the U.S. Treasury Department, is the Company's biggest lender. In the Chapter 11 cases, the Debtors are pursuing a two-pronged strategy to effectuate either a sale of their business to a "turnkey" buyer who may acquire substantially all of Solyndra's assets or, if the Debtors are unable to identify any such potential buyers, an orderly liquidation of the Debtors' assets for the benefit of their creditors. Judge Mary F. Walrath presides over the Debtors' cases. The Debtors are represented by Pachulski Stang Ziehl & Jones LLP as legal adviser. SOTERA DEFENSE: Moody's Assigns B3 Rating to $35-Mil. Term Loan --------------------------------------------------------------- Moody's Investors Service has assigned the planned $35 million first-lien term loan of Sotera Defense Solutions, Inc. a B3 rating. All of Sotera's existing ratings, including the B3 corporate family rating, remain unaffected. The rating outlook is stable. The ratings are: Corporate Family, unchanged at B3 Probability of Default, unchanged at B3 $28 million first lien revolver due April 2016, unchanged at B3 LGD3, to 46% from 44% $145 million first lien term loan due April 2017, unchanged at B3 LGD3, to 46% from 44% $35 million incremental first lien term loan due April 2017, assigned at B3 LGD3 46% Outlook, Stable RATINGS RATIONALE Term loan proceeds will provide acquisition financing for the company's purchase of Software Process Technologies, Inc. ("SPT"), a transaction in-step with Sotera's growth-through-acquisition strategy. The SPT transaction will be the third significant acquisition since late 2010 within the company's Technology and Intelligence Services, and the first purchase since Sotera's LBO of April 2011. Consistent with prior acquisitions, SPT will add contract-based services revenues within the U.S. intelligence community and bring potential cross-selling synergies. The transaction somewhat lessens weight within the revenue mix from the company's, historically more volatile, troop mobility product segment. Although the SPT purchase price multiple is high, a relatively sizable equity contribution from Sotera's financial sponsor helps minimize the resulting credit metric impact. The corporate family rating incorporates Sotera's limited size and contract diversity, integration risks accompanying the rapid growth strategy, and likelihood of leverage remaining elevated as the company continues acquiring scale. A good backlog to revenue ratio and a meaningful portion of services revenues focused on federal law enforcement/intelligence community areas-areas where outlays should be less vulnerable to lower U.S. defense outlays-- helps the rating. Upward rating momentum would depend on demonstration of debt to EBITDA sustained below 5x, EBITDA margin above 11% and free cash flow to debt in the high single digit percentage range. Downward rating pressure would mount with debt to EBITDA above 7x, EBIT to interest below 1x or a weak liquidity profile (all metrics Moody's adjusted basis). The principal methodology used in rating Sotera was the Global Aerospace and Defense Industry Methodology published in June 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Sotera Defense Solutions, Inc. ("Sotera"), headquartered in McLean, Virginia, provides mission-critical technology-based systems, solutions and services for national security agencies and programs of the U.S. government. Moody's estimates the annual revenue base to be approximately $360 million. The company is majority-owned by an affiliate of Ares Management LLC. SOUTHERN STAR: Moody's Raises Senior Unsecured Rating to 'Ba1' -------------------------------------------------------------- Moody's Investors Service has upgraded the senior unsecured rating of Southern Star Central Corp. (SSCC) to Ba1 from Ba2. At the same time Moody's affirmed the senior unsecured rating of SSCC's main operating subsidiary, Southern Star Central Gas Pipeline Inc. (SSCGP) at Baa3. The outlook for both issuers has been changed to stable from positive. Concurrent with these rating actions Moody's has withdrawn the Corporate Family Rating (CFR) and the Probability of Default Rating (PDR) of SSCC, as the CFR and PDR are only used for speculative grade issuers. All related Loss Given Default assessments have also been withdrawn. RATINGS RATIONALE The rating action acknowledges the continued good performance and healthy credit metrics of SSCGP's pipeline operations and the maintenance of credit metrics at the parent level that border on investment grade. Moody's notes SSCC's FFO to debt for the LTM period ended June 30, 2011 was 14% (Moody's Baa range for natural gas pipelines is 15-25%). Prospectively, Moody's believes the pipeline will continue its organic growth through incremental projects in the Midwest and that the stable financial performance of the consolidated entity will continue. This is premised on the continuation of the pipeline's shipper relationships, including near-term contract renewals, and credit supportive financial policies carried out by the SSCC's owners, GE Energy Financial Services, and Morgan Stanley Infrastructure Partners. Factored into the rating action is the consolidated leverage that continues at the parent, particularly given SSCC's sole reliance on SSCGP's dividends for debt service and the relative absence of any material regulatory ring-fencing of the pipeline. These factors are a main driver of the closing of the notching between the two entities. Challenges and constraints to the rating of both entities remain the relatively small service area, the need to access supply from several gas basins, the large refinancing risk facing the entities in 2016, and the lack of any committed external working capital facilities. These concerns notwithstanding, the rating assumes that stable cash flows at the company will continue as Moody's believes the company will be successful in renewing contracts with shippers. The rating outlook for both entities is stable reflecting an expectation that financial performance will remain similar to recent financial results as the degree of revenue certainty remains strong for the next few years. We believe consolidated credit metric strengthening would be necessary for any further positive rating action. Medium-term events/concerns include the requirement of a new FERC rate case in 2013 and refinancing risk in 2016, given the fact that substantially all of the company's debt matures that year. As a general matter, Moody's also believes closely held companies can raise questions regarding corporate governance, disclosure and liquidity, among others. That being said, Moody's believes the current owners have managed the company conservatively and barring any strategic or event driven change, Moody's believes their future strategy will continue to be supportive of a stable credit profile. Any deviation from this strategy or increased consolidated leverage could place negative pressure on the ratings. Upgrades: Issuer: Southern Star Central Corp. -- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 from Ba2 Outlook Actions: Issuer: Southern Star Central Corp. -- Outlook, Changed To Stable From Positive Issuer: Southern Star Central Gas Pipeline, Inc. -- Outlook, Changed To Stable From Positive Withdrawals: Issuer: Southern Star Central Corp. -- Probability of Default Rating, Withdrawn, previously rated Ba1 -- Corporate Family Rating, Withdrawn, previously rated Ba1 -- Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated 80 - LGD5, LGD5, 80 % The last rating action on SSCC and SSCGP was on August 13, 2010 when Moody's changed the outlooks for both issuers to positive from stable. The principal methodology used in this rating was Natural Gas Pipeline published in December 2009. Southern Star Central Corporation, headquartered in Owensboro, Kentucky, is an intermediate holding company for Southern Star Central Gas Pipeline Inc., a natural gas transmission system spanning over 6,000 miles in the Midwest and Mid-continent regions of the United States. SPARTA COMMERCIAL: Delays Filing of Quarterly Report on Form 10-Q ----------------------------------------------------------------- Sparta Commercial Services, Inc., informed the U.S. Securities and Exchange Commission that it is in the process of preparing and reviewing the financial and other information for its Form 10-Q report for the quarterly period ended July 31, 2011, and does not expect the report will be finalized for filing by the prescribed due date without unreasonable effort or expense. The Company needs additional time to complete its financial statements, as well as to have the report reviewed by its accountants and attorneys. The Company undertakes the responsibility to file such report no later than five days following the prescribed due date. About Sparta Commercial Based in New York, Sparta Commercial Services, Inc. -- http://www.spartacommercial.com/-- is a nationwide financial services company offering financing and leasing products to consumers and retail powersports dealers. Sparta also serves municipal and governmental agencies nationwide with its Municipal Lease Program, which offers financing for essential equipment for the law enforcement and emergency response communities. The Company's subsidiary, Specialty Reports, Inc. d/b/a Cyclechex, is in the business of offering online access to detailed product ownership and usage reports for various classes of previously owned assets. Cyclechex's initial product release is the Cyclechex Motorcycle History Report. The Company's balance sheet at June 30, 2011, showed $1.48 million in total assets, $4.43 million in total liabilities and a $2.94 million total deficit. RBSM LLP, in New York, noted that the company has suffered recurring losses from operations that raises substantial doubt about the company's ability to continue as a going concern. SPOT MOBILE: Delays Filing of Quarterly Report on Form 10-Q ----------------------------------------------------------- Spot Mobile International Ltd. was unable to file its Form 10-Q for the period ended July 31, 2011, within the prescribed time period given the transactions out of the ordinary course of business that occurred during the quarter, as well as recent events, and, as a result, required additional time to prepare and review its financial statements and the notes thereto. Such delay could not be eliminated by the Company without unreasonable effort and expense. The Company intends to file its Form 10-Q on or before the extended deadline of Sept. 19, 2011. About Spot Mobile Spot Mobile, formerly Rapid Link Incorporated -- http://www.rapidlink.com/-- is a telecommunications services company which, through its wholly owned subsidiary, provides prepaid telecommunication and transaction based point of sale activation solutions through 1,000 independent retailers in the Eastern United States. The Company also provides long distance services and plans to expand its product offering to include mobile and wireless services. The Company reported a net loss of $3.56 million on $16.08 million of revenue for the year ended Oct. 31, 2010, compared with a net loss of $712,601 on $23.74 million of revenue during the prior year. The Company's balance sheet at Jan. 31, 2011, showed $3.32 million in total assets, $5.22 million in total liabilities and $1.90 million in total shareholders' deficit. SSI GROUP: To Sell Restaurant Chain in Bankruptcy ------------------------------------------------- SSI Group Holding Corp. sought bankruptcy protection (Bankr. D. Del. Case No. 11-12917) in Wilmington, Delaware, after months of lackluster performance at its two struggling restaurant chains, which combined operate about 120 locations, and its debts mounted to $47.5 million. Judge Mary F. Walrath presides over the case. SSI reported $23.9 million in assets. SSI is behind two southern restaurant chains -- the healthy Souper Salad chain and "comfort food"-serving Grandy's restaurants. Hilary Russ at Bankruptcy Law360 reports that SSI Group Holding Corp., the owner of Grandy's and Souper Salad restaurants, won access Thursday to $6 million in financing, a key first step after it filed for Chapter 11 protection in order to sell off its Grandy's assets. In its bankruptcy petition and other first-day filings in Delaware bankruptcy court Wednesday, SSI detailed its massive debt liabilities and said that after operating for over a year without a working capital facility, it was now desperate for cash in order to stay afloat, according to Law360. Katy Stech, writing for Dow Jones' Daily Bankruptcy Review, reports that Dan Patel, Souper Salad Inc.'s vice president of finance, in court documents pointed to a handful of setbacks that made it tough for the holding company to pay off its loans, including the "steep rise in food costs, severe and atypical weather in key areas such as Texas" that kept customers home and building rents it can't afford. DBR notes Souper Salad recently shut down 24 locations, a retrenchment that ended a four-year-old aggressive campaign to grow the brand. About half of the remaining restaurants for both restaurant chains are controlled by franchisees. DBR relates SSI in June defaulted on a $4 million senior loan owed to a group led by Wells Fargo Capital Finance. The company and its affiliates also have $37.2 million in junior debt to companies affiliated with Summitbridge National Investments Inc. and Sun Capital Partners. Summitbridge National Investments owns 55% of SSI Group while distressed-debt investors Sun Capital Partners Inc. own the remaining 45%, according to court documents. DBR also reports that SSI Group is asking for a bankruptcy judge to approve a $6 million bankruptcy loan from its senior lenders who, in turn, demanded that the company put Grandy's, which serves "home-style quality food," up for sale. The company said it would use those sale proceeds to pay off that senior loan. The report also notes an affiliate of Sun Capital Partners named after a fish fast food chain it owns, Captain D's LLC, has already put forth the first $6 million auction bid for the chain. DBR also relates SSI is still looking for a buyer for the 33-year- old Souper Salad chain. DBR also says the two chains employed about 1,300 people. SSI has already asked for court permission to continue paying workers and honor customer gift cards throughout the case. SSI GROUP: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: SSI Group Holding Corp. 4004 Belt Line Road, Suite 160 Addison, TX 75001 Bankruptcy Case No.: 11-12917 Affiliates that simultaneously sought Chapter 11 protection on September 14, 2011: Debtor Case No. ------ -------- Souper Salad, Inc. 11-12918 SSI-Grandys LLC 11-12919 Souper Brands, Inc. 11-12920 Chapter 11 Petition Date: September 14, 2011 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Judge: Mary F. Walrath Debtor's Counsel: Mark E. Felger, Esq. COZEN O'CONNOR 1201 N. Market Street, Suite 1400 Wilmington, DE 19801 Tel: (302) 295-2087 Fax: (302) 295-2013 E-mail: mfelger@cozen.com Debtor's Bankruptcy and Reorganization Counsel: PROSKAUER ROSE LLP Debtor's Financial Advisor: MORGAN JOSEPH TRIARTISAN LLC Debtor's Claims and Noticing Agent: EPIQ BANKRUPTCY SOLUTIONS Total Assets: $23.9 million Total Debts: $47.5 million The petition was signed by Dan Patel, vice president of finance. List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Glazier Foods Company Inc. Trade $470,477 11303 Antoine Houston, TX 77066 Valassis Lockbox Service Trade $181,614 235 Great Pond Drive Windsor, CT 06095 Vistar Corporation Trade $126,119 8001 East 88th Avenu Henderson, CO 80640 Pyro Brand Development LLC Trade $95,684 CNL APF Partners LP Trade $89,409 Brothers Produce of Dallas Trade $79,335 Infosync Services Trade $66,650 Brothers Produce Inc. Trade $65,261 SLM Waste & Recycling Services Trade $50,303 Jason Edwards Trade $43,366 Fishbowl Inc. Trade $36,999 River City Produce Trade $36,249 Ecolab Inc. Trade $36,066 Crowe Horwath LLP Auditors $35,100 Accel Networks LLC Trade $33,896 Epicurean Foods Trade $33,025 Quality Fruit Trade $32,639 Montgomery Coscia Greilich Trade $27,443 Radiant Systems, Inc. Trade $27,420 Arsenal Security Group, Inc. -- $25,594 SUSPECT DETECTION: Posts $1.5 Million Net Loss in Second Quarter ---------------------------------------------------------------- Suspect Detection System Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $1.5 million on $129,861 of revenues for the three months ended June 30, 2011, compared with a net loss of $240,340 on $717,403 of revenues for the same period last year. For the six months ended June 30, 2011, the Company had a net loss of $920,782 on $1.7 million of revenues, compared with a net loss of $418,893 on $1.3 million of revenues for the same period of 2010. As reported in the TCR on March 28, 2011, Yarel + Partners, in Tel-Aviv, Israel, expressed substantial doubt about Suspect Detection System's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has not established sufficient sources of revenue to cover its operating costs and expenses. "As such, it has incurred an operating loss since inception. Further, as of Dec. 31, 2010, the cash resources of the Company were insufficient to meet its planned business objectives." A complete text of the Form 10-Q is available for free at: http://is.gd/1g74s2 New York-based Suspect Detection Systems, Inc., is a Delaware corporation that conducts its operations through its 58% owned subsidiary, Suspect Detection Systems Ltd., an Israeli corporation. SDS - Israel specializes in the development and application of proprietary technologies for law enforcement and border control, including counter terrorism efforts, immigration control and drug enforcement, as well as human resource management, asset management and the transportation sector. TERRESTAR CORPORATION: Objects to Appointment of Examiner --------------------------------------------------------- BankruptcyData.com reports that TerreStar Corporation filed with the U.S. Bankruptcy Court an objection to the motion filed by common equity holder Jeffrey M. Swarts seeking the appointment of an examiner in the Debtors' bankruptcy case. BData relates that the Debtors assert, "It is clear that the request is nothing but a tactic by Mr. Swarts to have his confirmation objections funded by the TSC Debtors' estates and to delay and obstruct the TSC Debtors' reorganization." Solus Alternative Asset Management also filed a similar objection to the motion, according to the report. About TerreStar Corp. and TerreStar Networks TerreStar Corporation and TerreStar Holdings, Inc., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Feb. 16, 2011. TSC's Chapter 11 filing joins the bankruptcy proceedings of TerreStar Networks Inc. and 12 other affiliates, which filed on Oct. 19, 2010. The October Chapter 11 cases are procedurally consolidated under TSN's Case No. 10-15446 under Judge Sean H. Lane. TSC is the parent company of each of the October Debtors. TSC has four wholly owned direct subsidiaries: TerreStar Holdings, Inc., TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings Inc. TSC's case is jointly administered with the cases of seven of the October Debtors under the caption In re TerreStar Corporation, et al., Case No. 11-10612 (SHL). The seven Debtor entities who sought joint administration with TSC are TerreStar New York Inc., Motient Communications Inc., Motient Holdings Inc., Motient License Inc., Motient Services Inc., Motient Ventures Holdings Inc., and MVH Holdings Inc. TEXAS INDUSTRIES: Plant Gets "Imminent Danger" Order ---------------------------------------------------- Dow Jones' DBR Small Cap reports that Texas Industries said that one of its aggregate plants in Texas received an "imminent danger" order, an extremely serious citation issued by the Mine Safety and Health Administration (MSHA) after observing an employee working under a conveyor belt held up by a forklift--which was parked on an incline with the engine running. This sounded like an issue that TXI can fix, and quickly, unlike the punishing deterioration in its financial condition which has accelerated over the past year, according to the report. The report notes that there could be a negative surprise next week when the company may report results for the fiscal first period ended in August--typically one of its strongest quarters of the year. About Texas Industries Texas Industries, Inc, headquartered in Dallas, Texas manufactures cement, aggregates and ready-mixed concrete. The company serves end-use markets such as public works, commercial, industrial, institutional and residential construction sectors, and energy markets. Texas Industries typically generates approximately 80% of its revenues in Texas and 20% in California, which were approximately $622 million in the last twelve months ending February 28, 2011. * * * As reported in the Troubled Company Reporter on June 16, 2011, Moody's Investors Service downgraded Texas Industries' Corporate Family Rating and Probability of Default Rating to Caa1 from B3, the rating of its $650 million senior unsecured notes to Caa2 from B3, and the rating of the company's $200 million ABL credit facility to B1 from Ba3. The outlook is stable. TEXTRON INC: Moody's Keeps 'Ba1' Junior Subordinate Ratings ----------------------------------------------------------- Moody's Investors Service assigned Baa3 ratings to the combined $500 million of senior unsecured notes due 2016-2021 issued by Textron Inc. (Textron or the company). Textron intends to utilize the net proceeds from the offerings to fund a portion of its concurrent tender offer for $600 million of existing 4.5% senior convertible notes due May 2013. The total redemption price is dependent upon bondholder participation rates and could entail a meaningful premium to face value to incentivize participation and compensate noteholders for the bond parity value relative to the company's higher share price and remaining option value through maturity, as well as a likely requisite inducement premium. "This transaction capitalizes on attractive financing markets to extend the company's maturity profile, which coupled with improving financial performance can be accommodated at current rating levels, notwithstanding some modest expected incremental leveraging of the balance sheet via the extinguishment of an equity-linked near-term debt maturity at an anticipated premium price," according to Russell Solomon, Moody's Senior Vice President and lead analyst for the company. Moody's Investors Service maintains the following ratings for Textron Inc. and its financing subsidiaries: Textron Inc. Senior Unsecured (domestic currency) ratings of Baa3 Senior Unsecured (foreign currency) ratings of Baa3 Senior Unsecured MTN (domestic currency) ratings of Baa3 Senior Unsecured MTN (foreign currency) ratings of Baa3 Senior Unsecured Bank Credit Facility (domestic currency) ratings of Baa3 Subordinate MTN (domestic currency) ratings of (P)Ba1 Senior Unsecured Shelf (domestic currency) ratings of (P)Baa3 Subordinate Shelf (domestic currency) ratings of (P)Ba1 Junior Subord. Shelf (domestic currency) ratings of (P)Ba1 Preffered Shelf (domestic currency) ratings of (P)Ba2 Commercial Paper (domestic currency) ratings of P-3 Other Short Term (foreign currency) ratings of (P)P-3 Textron Financial Canada Funding Corporation BACKED Senior Unsec. Shelf (foreign currency) ratings of (P)Baa3 Textron Financial Corporation Senior Unsecured (domestic currency) ratings of Baa3 Senior Unsecured MTN (domestic currency) ratings of (P)Baa3 Junior Subordinate (domestic currency) ratings of Ba1 Senior Unsecured Shelf (domestic currency) ratings of (P)Baa3 BACKED Senior Unsecured MTN (domestic currency) ratings of (P)Baa3 BACKED Senior Unsecured Shelf (domestic currency) ratings of (P)Baa3 BACKED Other Short Term (domestic currency) ratings of (P)P-3 The rating outlook is stable. RATINGS RATIONALE The Baa3 senior unsecured debt rating reflects Textron's large size and scale and the market leadership position of its aerospace and defense segments, the company's diversified revenue streams from commercial and defense aerospace and industrial segments, and the relative predictability of its revenue streams with a backlog approximating $11 billion. Key credit metrics have improved as Textron's defense-related business (through Bell Helicopters and Textron Systems segments) and the Industrial segment have performed better than expected and generated steady profits. Cash flow metrics (Retained Cash Flows-to-Debt of 25.8% for the twelve month period ended July 2, 2011) have improved to levels that are more appropriate for the rating category. Leverage remains high (Debt-to-EBITDA of 4.2 times) but should continue to decline from the combination of debt reduction facilitated by cash flow from the manufacturing businesses and improved earnings. Challenging conditions in the business jet market are expected to negatively impact Cessna over the coming year, even as the developed economies continue to recover. Cessna, which had been the biggest driver of growth and cash flow in the past, will struggle for some time to be a major contributor to Textron's profits. Business jets have probably hit the bottom of the cycle, but a steady recovery in that segment has yet to become evident and is not expected imminently. Bell benefits from the ongoing conflicts in Afghanistan and Iraq, while profits in the Industrial segment are driven mostly by the increasing demand for automotive products. These collective results partially offset the weakness at Cessna. The stable rating outlook reflects adequate liquidity to meet near-term obligations and expectations of ongoing success in liquidating TFC's non-captive assets, and steady financial performance by Textron's manufacturing units. A positive rating action is unlikely for some time, at the earliest when TFC has substantially completed its liquidation plan, the business jet market improves to produce a solid pace of new orders and a building backlog takes shape. Maintaining a sizeable commercial finance company could limit upward movement in the rating, due to the need to maintain access to external sources of capital to fund the finance company. Textron's progress towards a permanent capital structure appropriate for its manufacturing operations would be an important consideration, as well. Then, predictable free cash flow producing sustained debt-to-EBITDA at Textron manufacturing alone at less than 3x and retained cash flow-to-debt solidly greater than 20% could prove favorable to the rating or rating outlook. The rating could be lowered if the free cash flow of Textron's manufacturing operation is expected to fall below $300 million for any 12 month forward period, or if Cessna generates an operating loss, particularly if the operating profits at Bell and in the Industrial division weaken materially from levels achieved in 2010. The rating could also be lowered if Textron does not maintain a cash cushion above $500 million and at least sufficient to cover more than the next two quarters of scheduled debt maturities for both TFC and Textron. The principal methodology used in rating Textron was Moody's Global Aerospace and Defense Industry Methodology published June 2010. TOPSPIN MEDICAL: Posts NIS687,000 Net Loss in Second Quarter ------------------------------------------------------------ Topspin Medical, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of NIS687,000 for the three months ended June 30, 2011, compared with a net loss of NIS714,000 for the same period last year. For the six months ended June 30, 2011, the Company had a net loss of NIS1.4 million, compared to a net loss of NIS1.5 million for the corresponding period last year. The Company has not recorded any revenues from operations since the time of its inception in September 1999. The Company's balance sheet at June 30, 2011, showed NIS9.6 million in total assets, NIS3.1 million in total liabilities, all current, and stockholders equity of $6.5 million In October 2008, the Company suspended its activities. Since the suspension of the Company's operational activity in October 2008 and as of the date of these unaudited consolidated financial statements, the Company is not engaged in any operational activity. Additionally, in January 2010, Company's management decided to suspend the support in protection of its intellectual property (registered patents and patent applications). The Company has not generated any revenues and has not achieved profitable operations or positive cash flows from operations. The Company has an accumulated deficit of NIS185.8 million as of June 30, 2011, and it incurred a net loss of NIS1.4 million and negative cash flows from operating activities in the amount of NIS252,000 for the six months ended June 30, 2011. "There is uncertainty about the Company's ability to generate revenues or raise sufficient funds in the near term, if any," the Company said in the filing. "These factors, among other factors raise substantial doubt about the Company's ability to continue as a going concern." A complete text of the Form 10-Q is available for free at: http://is.gd/LNuuwy Topspin Medical, Inc., was incorporated in Delaware on Sept, 20, 1999. The Company has conducted all of its business operations through its wholly owned Israeli subsidiary, TopSpin Medical (Israel) Ltd. TopSpin Israel was incorporated on Oct. 5, 1999, to engage in research and development of MRI technology using miniaturized MRI sensors. Until the Company suspended its activities due to financial considerations in October 2008, it was engaged through TopSpin Israel in the design, research, development and manufacture of imaging devices that utilize MRI technology by means of miniature probes for various body organs. On July 12, 2010, in accordance with the Loan Agreement with Medgenesis Partners Ltd., pursuant to which Medgenesis agreed to loan the Company a total of US$353,804, the Company filed a voluntary petition for relief under Chapter 11 with the U.S. Bankruptcy Court for the District of Delaware (Case No. 10-12213). As part of the Plan that the Company submitted to the Bankruptcy Court, the Company requested that the Bankruptcy Court approve an increase in its registered capital, a reverse split of the Company's reorganized Common Stock and the conversion of the outstanding Funds into Company's shares of Common Stock. The Bankruptcy Court confirmed the Debtor's Plan on Dec. 20, 2010. Pursuant to the plan prepared by the Company and approved by the Bankruptcy Court, the Company has issued 10,122,463 shares of Common Stock to Medgenesis as repayment of a debt of US$484,000. TOWNSEND CORP: Mulls Options, Including Sale; Seeks Cash Use ------------------------------------------------------------ Townsend Corporation, d/b/a Land Rover Jaguar Anaheim Hills, and LRJC, Inc., d/b/a Land Rover Jaguar Cerritos, seek Bankruptcy Court permission to immediately use cash collateral so that they can maintain operations and going concern value while they attempt to effectuate a sale of substantially all of their assets or a reorganization. Cash collateral consists of revenues generated from the sale of vehicles, services, and equipment. The Debtors said they hope to be able to negotiate a cash collateral stipulation and a postpetition financing arrangement with BMW Financial Services, the primary secured creditor, that will enable the Debtors sufficient time to (1) consummate a sale of substantially all of the Debtors' assets, (2) obtain a new flooring lender, or (3) confirm a plan or plans of reorganization. "In the meantime, the Debtors seek authority to use Cash Collateral on an interim basis pending a final hearing, as it is imperative that the Debtors immediately be allowed to use Cash Collateral," the Debtors said in court papers. The Debtors said they may be forced to immediately close shop if they can't use Cash Collateral. The Debtors said BMW FS, on a global basis, has an equity cushion of 129%. BMW FS assert a claim for $12,004,406 -- $7,170,011 owed by LRJ Anaheim and $4,834,395 owed by LRJ Cerritos. The BMW FS Claim is allegedly cross-guarantied and secured by a first priority lien on substantially all of the Debtors' assets, including the Cash Collateral. As of August 31, 2011, the value of LRJ Anaheim's Assets was $12,875,723 and the value of LRJ Cerritos' Assets was $14,655,559. The total value of the Debtors' Assets was $27,531,282. About Townsend Corp. and LRJC Auto dealers Townsend Corporation, d/b/a Land Rover Jaguar Anaheim Hills, and LRJC, Inc., d/b/a Land Rover Jaguar Cerritos, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case Nos. 11-22690 and 11-22695) on Sept. 9, 2011. Judge Robert N. Kwan presides over the cases. Martin J. Brill, Esq., and Todd M. Arnold, Esq., at Levene, Neale, Bender, Rankin & Brill LLP, represent the Debtors. Each of the Debtors estimated $10 million to $50 million in both assets and debts. The petitions were signed by Ernest W. Townsend, IV, the president. TOWNSENDS INC: Court to Rule on Conversion Plea ----------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware scheduled a hearing to consider TW Liquidation Corp. f/k/a Townsends, Inc. and its debtor affiliates' motion to convert cases from Chapter 11 to Chapter 7 of the Bankruptcy Code for Sept. 14, 2011 at 11:00 a.m. Section 1112(a) of the Bankruptcy Code provides that a debtor may convert a Chapter 11 case to a case under Chapter 7 at any time as of right. Section 1112(a) specifically states that the debtor may convert a case under this Chapter 11 to one under Chapter 7 of this title unless -- (1) the debtor is not a debtor in possession; (2) the case originally was commenced as an involuntary case under this chapter; or (3) the case was converted to a case under this chapter other than on the debtor's request. Chad A. Fights, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware -- cfights@mnat.com -- argues that none of the exceptions enumerated in Section 1112(a) apply in the Debtors' Chapter 11 cases. Here, the Debtors are debtors-in-possession under Sections 1107 and 1108 of the Bankruptcy Code, these cases were voluntary Chapter 11 filings, and these cases were not converted to Chapter 11 from another chapter of the Bankruptcy Code, he asserts. More importantly, the Debtors believe that a request for conversion is the appropriate action at this time, Mr. Fights insists. After the distribution of the proceeds from the sale of substantially all of the Debtors' assets to PECO Foods, Inc. and Omtron, Ltd. and the Claims Fund under Section 503(b)(9) of the Bankruptcy Code, the Debtors lack sufficient assets or continued funding to make pursuit of a liquidating plan an appropriate exercise, he states. Should the case not convert, the Debtors may become unable to continue to pay administrative expenses as they come due, he emphasizes. He stresses that engaging in a liquidating plan process will unnecessarily deplete the Debtors' remaining assets and would be unlikely to provide a meaningful return to unsecured creditors. In contrast, the interests of Debtors' estates will best be served by conversion of these cases to cases under Chapter 7 of the Bankruptcy Code, Mr. Fights points out. By converting the cases, the remaining assets of the estates can be efficiently and effectively liquidated by a Chapter 7 trustee and distributed to stakeholders, he assures the Court. The Debtors further ask the Court to set a deadline for all professionals retained in these cases under Section 327 of the Bankruptcy Code to file their final fee applications or requests for compensation on or before 30 days from the entry of an order converting these Chapter 11 cases to Chapter 7 of the Bankruptcy Code and set a hearing for final approval of these fee applications at the Court's convenience. About Townsends Inc. Founded in 1891, Townsends Inc. is a third-generation, family- owned poultry company. Headquartered in Georgetown, Delaware, Townsends operates production and processing facilities in Arkansas and North Carolina. Townsends Inc. -- fka Townsend Specialty Foods -- and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 10-14092) on Dec. 19, 2010. As of Dec. 5, 2010, the Debtors disclosed $131 million in total assets and $127 million in total debts. Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell, serves as the Debtors' bankruptcy counsel. McKenna Long & Aldridge LLP serves as special counsel. Huron Consulting Group's Dalton T. Edgecomb serves as the Debtors' chief restructuring officer. SSG Capital Advisors, LLC, serves as investment banker. Donlin, Recano & Company, Inc., is the Debtors' claims, noticing and balloting agent. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has tapped Lowenstein Sandler PC as its counsel and J.H. Cohn LLP as its financial advisor. No trustee or examiner has been appointed in the Debtors' bankruptcy cases. The Debtors sold virtually all of their assets in two Asset Sale transactions which closed on Feb. 25, 2011. The purchasers were Omtron, Ltd., and Peco Foods, Inc. TRAVELPORT INC: Bank Debt Trades at 10% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Travelport, Inc., is a borrower traded in the secondary market at 90.25 cents-on- the-dollar during the week ended Friday, Sept. 16, 2011, a drop of 1.17 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Aug. 23, 2015. The loan is one of the biggest gainers and losers among 104 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Travelport, Inc., -- http://www.travelport.com/-- a travel company, offers broad-based business services to companies in travel industry. The company operates a network of travel brands and content, and provides travel technologies, solutions, and services. It also offers online travel distribution systems and services that enable travel suppliers, travel agencies, Web sites, and corporations to provide travel products and services to travelers; ground travel products and services, and global travel content; Web-based solutions and services for airlines, airports, travel agencies and travel-related companies; market planning, analysis, sales intelligence, and network planning services; and technical and application solutions, such as passenger management, E-commerce toolkit, and E-ticketing solutions for airlines. The company is based in Parsippany, New Jersey. Travelport, Inc., operates as a subsidiary of Travelport Limited. TRAVELPORT LLC: S&P Lowers Corporate Credit Rating to 'CCC' ----------------------------------------------------------- Standard and Poor's Ratings Services lowered its long-term corporate credit ratings on travel services provider Travelport Holdings Limited and its operating subsidiary Travelport LLC (Travelport) to 'CCC' from 'B-' and placed them on CreditWatch with negative implications. "At the same time, we lowered the long-term rating on Travelport's senior secured debt to 'CCC+' from 'B'. The recovery rating on the senior secured debt remains unchanged at '2'. In addition, we lowered the long-term ratings on Travelport's senior unsecured debt to 'CCC-' from 'CCC+', and on the various subordinated debt instruments to 'CC' from 'CCC', with recovery ratings of '5' and '6' remaining unchanged," S&P related. "The rating actions primarily reflect our view that Travelport is facing increased liquidity risk as a result of the upcoming maturity of its $693 million (as of end-June 2011) payment-in-kind (PIK) loan at Travelport Holdings, due in March 2012. We do not currently believe that the company will be able to secure sufficient cash resources either from operations or disposals to repay these notes, and will therefore need to find a refinancing solution. In our opinion, this may be difficult given Travelport's highly leveraged capital structure, partially pledged asset base, and currently weak debt capital markets. Therefore, we believe that there is an increased risk that the company will not be able to honor its initial promise to repay the PIK loan by March 2012," S&P related. "We also note that, under our forecasts, the convenant on Travelport's bank facility will remain tight in the foreseeable future, heightened by the loss of its hosting contract for the United Airlines website. We anticipate that this will affect the company's EBITDA from 2012," S&P said. "In our opinion, Travelport's high level of debt (and related interest payments) currently limits any material improvement to its highly leveraged financial risk profile over the near term. The high debt burden also makes it unlikely that the company would be able to access further funding at this stage," S&P stated. "We aim to resolve the CreditWatch placement within the next three months, after receiving information regarding Travelport's plans to refinance the maturing PIK loan. We will discuss these plans with management, and subsequently assess how these may affect the ratings," S&P related. "We will likely lower the ratings if Travelport cannot produce a credible refinancing plan within the next three months, as this would raise further questions about the company's ability to refinance the PIK loan," S&P added. TRENTON LAND: Wants Bankruptcy Court to Dismiss Chapter 11 Case --------------------------------------------------------------- Trenton Land Holdings, LLC, asks the U.S. Bankruptcy Court for the Eastern District of Michigan to dismiss its Chapter 11 case. In light of the absence of cash available to the Debtor, any fees of the Debtor's counsel will be paid by non-debtor "insiders." Karin F. Avery, Esq., at Silverman & Morris, P.L.L.C., tells the Court that the assets of the Debtor consist of approximately 195 acres located in Trenton, Mich., which may be environmentally contaminated. Ms. Avery states that the bankruptcy petition was filed in part to prevent the forfeiture of the Property to Wayne County, Mich., on account of unpaid real estate taxes. Ms. Avery notes that the Debtor has not had its own cash flow. Essential operating expenses and payments to the Wayne County Treasurer have been paid directly by the "insiders" of the Debtor. Ms. Avery believes that cause exists for dismissal of this case because: (a) The Debtor has reached an agreement with the Wayne County Treasurer for payment on account of real estate tax arrearages and dismissal of this case; (b) The Debtor may not presently be able to formulate a plan that would deal with all existing claims; (c) Conversion of this case to Chapter 7 would inevitably lead to abandonment of the Property by the Chapter 7 trustee and potential exposure of the Chapter 7 Trustee with respect to environmental liability. It would also likely lead to additional contamination of the Property, due to the inability of a Chapter 7 Trustee to maintain the wastewater treatment currently being provided by the Debtor and its "insiders"; (d) Conversion of the case to a Chapter 7 is likely to lead to forfeiture and foreclosure of the Property by Wayne County, thus causing Wayne County to take title to contaminated property; and (e) Failure to dismiss the case will result in the Debtor remaining in Chapter 11 for a protracted period of time, unnecessarily incurring administrative expenses. Trenton, Michigan-based Trenton Land Holdings, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Mich. Case No. 10- 60990) on June 29, 2010. Karin F. Avery, Esq., at Silverman & Morris, P.L.L.C., assists the Debtor in its restructuring effort. The Company disclosed $16,726,075 in assets and $65,925,596 in liabilities. TRIBUNE CO: Bank Debt Trades at 42% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Tribune Co. is a borrower traded in the secondary market at 57.71 cents-on-the- dollar during the week ended Friday, Sept. 16, 2011, a drop of 0.66 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 May 17, 2014. Moody's has withdrawn its rating on the loan. The loan is one of the biggest gainers and losers among 104 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TROY BUILDERS: Case Summary & 2 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Troy Builders Investment Trust 18850 Ventura Boulevard, # 130 Tarzana, CA 91356 Bankruptcy Case No.: 11-20917 Chapter 11 Petition Date: September 14, 2011 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Victoria S. Kaufman Debtor's Counsel: Alfred J. Verdi, Esq. VERDI LAW GROUP PC 2829 N. Glenoaks Boulevard, Suite 206 Burbank, CA 91504 Tel: (818) 845-3100 Fax: (818) 845-3101 E-mail: verdilawgroup@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb11-20917.pdf The petition was signed by Adrian Van Rijs, trustee. TRUMAN LANDSCAPER: Involuntary Chapter 11 Case Summary ------------------------------------------------------ Alleged Debtor: The Trumann Landscaper Inc. P.O. Box 242 Lookout Mountain, TN 37350 Case Number: 11-15051 Type of Business: Real Estate and other operations Involuntary Chapter 11 Petition Date: September 13, 2011 Court: Eastern District of Tennessee (Chattanooga) Judge: John C. Cook Trumann Landscaper's petitioner: Petitioner Nature of Claim Claim Amount ---------- --------------- ------------ Leslie D Coffey Loan/Trade debt $15,560 P.O. Box 242 Lookout Mtn., TN 37350 TURBULENCE, LLC: Case Summary & Largest Unsecured Creditor ---------------------------------------------------------- Debtor: Turbulence, LLC 1427 Grant Avenue P.O. Box 330220 San Francisco, CA 94133 Bankruptcy Case No.: 11-33378 Chapter 11 Petition Date: September 14, 2011 Court: U.S. Bankruptcy Court Northern District of California (San Francisco) Judge: Thomas E. Carlson Debtor's Counsel: Joel K. Belway, Esq. LAW OFFICES OF JOEL K. BELWAY 235 Montgomery Street, #668 San Francisco, CA 94104 Tel: (415) 788-1702 E-mail: belwaypc@pacbell.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by WB Coyle, manager. The list of unsecured creditors filed together with its petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Yvette Tom -- $5,800 2195 Beach Street, #303 San Francisco, CA 94123 TXU CORP: Bank Debt Trades at 28% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which TXU Corp., now known as Energy Future Holdings Corp., is a borrower traded in the secondary market at 72.45 cents-on-the-dollar during the week ended Friday, Sept. 16, 2011, a drop of 0.61 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 10, 2017, and carries Moody's B2 rating and Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 104 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80%-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leveraged buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. The Company's consolidated balance sheets at Dec. 31, 2010, showed $46.388 billion in total assets, $52.299 billion in total liabilities, and a stockholders' deficit of $5.911 billion. * * * In April 2011, Moody's Investors Service affirmed the 'Caa2' Corporate Family Rating, 'Caa3' Probability of Default Rating and SGL-4 Speculative Grade Liquidity Ratings of EFH. Outlook is stable. EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited financial flexibility; its capital structure appears to be untenable, calling into question the sustainability of the business model; and there is no expectation for any meaningful debt reduction over the next few years, beyond scheduled amortizations. At the end of February 2011, Fitch Ratings it does not expect to take any immediate rating action on EFH's Texas Competitive Electric Holdings Company LLC or their affiliates based on recent default allegations from lender Aurelius. EFH carries a 'CCC' corporate rating, with negative outlook, from Fitch. UNI-PIXEL INC: To Offer 1.3MM Common Shares Under Incentive Plan ---------------------------------------------------------------- Uni-Pixel, Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 registration statement registering 1.3 million common shares to be offered under the Uni-Pixel, Inc., 2011 Stock Incentive Plan. A full-text copy of the prospectus is available for free at http://is.gd/mFsyh9 About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. The Company reported a net loss of $3.81 million on $243,519 of thin film revenue for the year ended Dec. 31, 2010, compared with a net loss of $5.37 million on $0 of thin film revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $10.93 million in total assets, $64,742 in total liabilities and $10.86 million total shareholders' equity. PMB Helin Donovan, LLP, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has sustained losses and negative cash flows from operations since inception. U.S. EAGLE: Proposes Grubb & Ellis as Real Estate Broker -------------------------------------------------------- U.S. Eagle Corporation asks the U.S. Bankruptcy Court for the District of New Jersey permission to employ Grubb & Ellis Company as its real estate broker. Upon retention, the firm, among others will: (a) take the necessary steps to list and market the Debtor's "Riverside properties" in a manner to maximize the value thereof; (b) facilitate the dissemination of information to interested parties with respect to the Riverside Properties; (c) assist the Debtors with the sale process, and (d) take any other acts to prepare for, conduct and effectuate the sale of the Riverside Properties and to ensure the highest possible price(s) and/or best offer(s) for the Riverside Properties. Subject to this Court's approval and in accordance with sections 330 and 331 of the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, as may be applicable, the rules of this Court, and such other procedures as may be fixed by order of this Court, the Debtors requests that Grubb & Ellis be compensated on a percentage fee basis in accordance with the terms of the Agreement. About U.S. Eagle U.S. Eagle filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-10392) on Jan. 6, 2011. Samuel Jason Teele, Esq., at Lowenstein Sandler PC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliates U.S. Eagle Litho, Inc. (Bankr. D. N.J. Case No. 11- 10401), Eagle One Golf Products, Inc. (Bankr. D. N.J. Case No. 11- 10397), Julius Realty Corporation (Bankr. D. N.J. Case No. 11- 10393), Traffic Control Service, Inc., An Arizona Corporation (Bankr. D. N.J. Case No. 11-10398), Traffic Control Service, Inc., A California Corporation (Bankr. D. N.J. Case No. 11-10403), and Traffic Control Service, Inc., A Nevada Corporation (Bankr. D. N.J. Case No. 11-10392) filed separate Chapter 11 petitions on Jan. 6, 2011. Three Twenty One Capital Partners, LLC serves as exclusive agent for the Debtors. On Feb. 22, 2011, the U.S. Trustee appointed an Official Committee of Unsecured Creditors. Porzio, Bromberg & Newman, P.C., represents the Committee. No trustee or examiner has been requested or appointed in the Chapter 11 cases. VISUALANT INC: Extends Closing Date of Eagle LOI to Dec. 31 ----------------------------------------------------------- Visualant, Incorporated, on June 27, 2011, signed a new Letter of Intent to Eagle Technologies USA of Brea, California. On Sept. 15, 2011, the Company announced that it had signed an amendment to the Letter of Intent, extending the closing date to Dec. 31, 2011. Eagle, founded by card industry leaders Greg and Ryan Hawkins and Jeff Fulmer in 2008, has rapidly emerged as the premier provider of blank PVC and polyester composite cards to the identification market. Eagle will provide an immediate additional $1 million in annual revenue to Visualant and is projected to grow to $3 to $4 million in revenues over the next two years as Eagle increases the range and technical sophistication of its product line. A full-text copy of the Amended Letter of Intent is available for free at http://is.gd/lE09qq About Visualant Inc. Seattle, Wash.-based Visualant, Inc., was incorporated under the laws of the State of Nevada on October 8, 1998. The Company develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti- counterfeiting, forgery/fraud prevention, brand protection and process control applications. As reported in the Troubled Company Reporter on Jan. 4, 2011, Madsen & Associates CPA's, Inc., Salt Lake City, expressed substantial doubt about Visualant, Inc.'s ability to continue as a going concern, following the Company's results for the fiscal year ended September 30, 2010. The independent auditors noted that the Company will need additional working capital for its planned activity and to service its debt. The Company's balance sheet at June 30, 2011, showed $4.70 million in total assets, $5.96 million in total liabilities, $39,072 in noncontrolling interest and a $1.29 million total stockholders' deficit. WASHINGTON MUTUAL: Interest Rate Ruling May Impact Other Cases -------------------------------------------------------------- Peg Brickley of Dow Jones' Daily Bankruptcy Review writes on the possible impact of Judge Mary Walrath's recent decision denying confirmation of Washington Mutual Inc.'s plan. Ms. Brickley notes that in rejecting the company's Chapter 11 plan, Judge Walrath yanked the rug out from under bondholders who thought they had cut a straight-up deal with the company to get the contract rate of interest on billions in debt. Instead, Judge Walrath found the federal judgment rate of interest should apply in the case. Ms. Brickley relates that according to Kevin Starke, an analyst with CRT Capital Group, which makes a market in Washington Mutual securities, the ruling means holders of a class of debt called PIERS might have to kick back something to holders of top-ranking debt. Ms. Brickley says there's likely not much of a financial incentive for the big money in the case to appeal Judge Walrath's decision. Many big players own both PIERS and top debt, so they'll just be moving cash from one pocket to another. But, according to Ms. Brickley, investors in other cases where there's a whole lot of cash to be handed out -- specifically the case of Nortel Networks Corp. -- had better read Judge Walrath's ruling carefully. Ms. Brickley relates Nortel investors are hoping to deal their way into a better-than-100% recovery. How much better may depend on whether Nortel gives the bondholders a contract rate of interest or the federal judgment rate, which is usually much smaller, the report says. What the bondholders don't get could go to folks like Nortel's retirees and disabled workers, many of whom are being left empty handed. 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. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- was the holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of the equity in WMI Investment. When WaMu filed for protection from its creditors, it disclosed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500 million to $1 billion with zero debts. WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal & Manges LLP in New York City; Mark D. Collins, Esq., at Richards, Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP. The Debtor tapped Valuation Research Corporation as valuation service provider for certain assets. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New York, and David B. Stratton, Esq., at Pepper Hamilton LLP in Wilmington, Del., represent the Official Committee of Unsecured Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the Equity Committee. The official committee of equity security holders also tapped BDO USA as its tax advisor. Stacey R. Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent JPMorgan Chase, which acquired the WaMu bank unit's assets prior to the Petition Date. On Jan. 7, 2011, the Bankruptcy Court entered a 107-page opinion determining that the global settlement agreement, among certain parties including WMI, the Federal Deposit Insurance Corporation and JPMorgan, upon which the Plan is premised, and the transactions contemplated therein, are fair, reasonable, and in the best interests of WMI. However, the Opinion and related order denied confirmation, but suggested certain modifications to the Company's Sixth Amended Joint Plan of Affiliated Debtors that, if made, would facilitate confirmation. WaMu filed a Modified Sixth Amended Joint Plan and a related Supplemental Disclosure Statement, which it believes would address the Bankruptcy Court's concerns. On Sept. 13, 2011, Judge Walrath denied confirmation of WaMu's Modified Sixth Amended Plan and granted equity committee standing to prosecute claims for equitable disallowance but stayed the ruling pending mediation. Judge Walrath scheduled a status hearing for Oct. 7, 2011, at 11:30 a.m. to consider the issues to be referred to a mediator. WaMu said it would seek confirmation of a revised plan "as soon as practicable." The Plan proposes to pay more than $7 billion to creditors and incorporates a global settlement agreement resolving issues among the Debtors, JPMorgan Chase, the Federal Deposit Insurance Corp. in its corporate capacity and as receiver for WaMu Bank, certain large creditors, certain WMB senior noteholders, and the creditors' committee. The Settlement Noteholders are Appaloosa Management, L.P., Aurelius Capital Management LP, Centerbridge Partners, LP, and Owl Creek Asset Management, L.P. WATER STREET: To Sell Mansfield Property to Pay Creditors in Full ----------------------------------------------------------------- Water Street Development Partners, L.P., filed with the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, a first amended plan of reorganization and an accompanying disclosure statement, which provides for the sale of a real property located in Mansfield, Texas, to pay creditors in full. The Debtor believes that through the Amended Plan, filed Sept. 12, 2011, creditors will obtain a substantially greater recovery from the Estate than they would receive if the Debtor's assets were liquidated under Chapter 7 of the Bankruptcy Code. The Debtor holds an exercised but as yet unperformed option to acquire the one-half undivided interest in the 81 acres of unimproved real property located at 1200 East Broad Street, in Mansfield, Texas, that it does not already own. This interest is currently owned 25% by Richard Bontke and 25% by Richard's son, Nathan Bontke. The exercise of this Option will cause the Bontkes to be released from each of their guarantees to Wells Fargo Commercial Loan Services on its loan secured by the Mansfield Property, and, as a result thereof, gaining a return to the Bontkes of a cash deposit pledged against the loan. To accomplish the requirements running in favor of the Bontkes, and thereby, trigger the Bontke obligation, simultaneous with release of guarantees and return of cash collateral, to convey the undivided one-half (in total) of the Mansfield Property which they own to the Debtor, the Debtor will seek to sell the Mansfield Property and use the proceeds to pay all creditors in full. The Plan provides for this classification and treatment of claims: * Class 1 (Secured Tax Claims). This Class is unimpaired by the Plan, does not vote, and is deemed to accept the Plan. Class 1 consists of all allowed claims for real and personal property taxes secured by Property of the Estate. * Class 2 (Priority Tax Claims). This Class is impaired by the Plan. The holders of Allowed Class 2 claims are entitled to vote to accept or reject the Plan. Class 2 consists of all allowed priority tax claims. * Class 3 (Secured Bank Claim). This Class is impaired by the Plan. The holders of Allowed Class 3 claims are entitled to vote to accept or reject the Plan. The Mansfield Property is encumbered by a first and paramount deed of trust lien in favor of Wachovia Bank, a division of Wells Fargo. The Plan proposed to pay and fully discharge the Wells Fargo lien, which is in the approximate present amount of $7,873,985. * Class 4 (General Unsecured Claims). This Class is impaired by the Plan. The holders of Allowed Class 4 claims are entitled to vote to accept or reject the Plan. * Class 5 (Equity Interests). This Class is impaired by the Plan. The holders of Allowed Equity Interests are entitled to vote to accept or reject the Plan. The Reorganized Debtor will continue in existence after the Effective Date as a limited partnership in accordance with the laws of Texas in order to carry out its obligations under the Plan. In the future, the Reorganized Debtor may also acquire other businesses or property. The Debtor has reached agreement with Arcadia Realty Corp., a Texas corporation, whereby Aracadia will purchase the Mansfield Property when the Mansfield Property has been appropriately re- zoned. The Debtor relates that the process of re-zoning is underway and should be complete by November 1, 2011, although some delay may occur. The Arcadia Contract calls for repayment to the Bontkes of monthly interest payments previously made by the Bontkes to Wells Fargo and direct payment by Arcadia of monthly payments after the Debtor is authorized to enter the contract with Arcadia. If Arcadia manifests its then present ability to perform under its the Arcadia Contract, with the result that Wells Fargo will be paid in full, and the Bontkes will receive the return of their escrowed cash collateral, the Debtor will seek an order, if necessary, requiring the Bontkes to perform under the Option Agreement. If Arcadia cannot achieve satisfactory re-zoning it may, but is not required to, terminate the Arcadia Contract, the Debtor tells the Court. If Arcadia fails to gain appropriate re-zoning and terminates, and if no other purchaser is found, the Bontkes may then purchase the interest of the Debtor in the Real Property. Water Street Management, LLC, General Partner of the Debtor, will continue to manage the Reorganized Debtor. A full-text copy of the First Amended Disclosure Statement is available for free at http://ResearchArchives.com/t/s?76f2 About Water Street Development Partners Southlake, Texas-based Water Street Development Partners, L.P., filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case No. 11- 42841) on May 13, 2011. Judge Russell F. Nelms presides over the case. The Law Office of Mark B. French serves as the Debtor's bankruptcy counsel. Robert DeRogatis is a limited partner of the Debtor and holds a 99% equity interest. Water Street Management LLC holds the other 1% stake. WEST END: Hearing on Adequacy of Plan Outline Scheduled for Nov. 1 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on Nov. 1, 2011, at 10:00 a.m., to consider adequacy of the Disclosure Statement explaining West End Financial Advisors LLC, et al.'s Chapter 11 Plan dated Aug. 31, 2011. As reported in the Troubled Company Reporter on Sept. 15, 2011, there are three secured creditors with claims aggregating about $13 million. West End believes that the security interest for a $5 million claim is invalid, according to the disclosure statement. The TCR report that there are $13 million in general unsecured creditor claims and $67 million in unsecured investor claims. The investors' claims will be treated as claims rather than equity and share pro rata with general creditors. Under the plan, valid secured claims will be paid with five-year, interest-bearing secured notes. The notes can be paid before maturity. One secured claim, for $1.7 million, will be paid in full if the lender receives $1 million by March. About West End Financial West End Financial Advisors LLC, Sentinel Investment Management Corp. and a number of affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-11152) in Manhattan on March 15, 2011. New York-based West End estimated its assets and debts at $1 million to $10 million. Arnold Mitchell Greene, Esq., at Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtors' bankruptcy counsel. William Landberg created WEFA in 2000 as an investment and financial management company. Subsequently he purchased Sentinel Investment Management Corp., a boutique investment advisory company. Sentinel and WEFA targeted individual private clients for investments in fixed income funds and alternative investment products. Mr. Landberg's ultimately resigned from all West End related entities effective June 2, 2009, following a probe on misappropriation of funds. Schedules of assets and liabilities for West End and its funds showed assets of $400,000 and debt of $6.7 million, not including $66 million from investors who may or may not be considered creditors. Debt includes $5.5 million in secured claims, according to the schedules. Secured creditors with the largest claims are DZ Bank ($118.1 million), West LB ($41 million), Iberia Bank ($11.3 million), and Suffolk County National Bank ($8.3 million). WEST END: Court OKs Mark Radke as Independent Monitor ----------------------------------------------------- West End Financial Advisors LLC sought and obtained permission from the U.S. bankruptcy Court for the Southern District of New York to employ Mark Radke as independent monitor. About West End Financial West End Financial Advisors LLC, Sentinel Investment Management Corp. and a number of affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-11152) in Manhattan on March 15, 2011. New York-based West End estimated its assets and debts at $1 million to $10 million. Arnold Mitchell Greene, Esq., at Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtors' bankruptcy counsel. William Landberg created WEFA in 2000 as an investment and financial management company. Subsequently he purchased Sentinel Investment Management Corp., a boutique investment advisory company. Sentinel and WEFA targeted individual private clients for investments in fixed income funds and alternative investment products. Mr. Landberg's ultimately resigned from all West End related entities effective June 2, 2009, following a probe on misappropriation of funds. Schedules of assets and liabilities for West End and its funds showed assets of $400,000 and debt of $6.7 million, not including $66 million from investors who may or may not be considered creditors. Debt includes $5.5 million in secured claims, according to the schedules. Secured creditors with the largest claims are DZ Bank ($118.1 million), West LB ($41 million), Iberia Bank ($11.3 million), and Suffolk County National Bank ($8.3 million). WESTERN COMMUNICATIONS: 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 Western Communications, Inc., 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. About Western Communications Western Communications, Inc., is a family-owned corporation founded by renowned editor Robert W. Chandler. Headquartered in Bend, Oregon, Western Communications is a small market newspaper, niche publishing, printing and digital media company with publications spread throughout Oregon (six publications) and California (two publications). The Company produces and publishes the Bend Bulletin, the Baker City Herald, the La Grande Observer, the Redmond Spokesman, the Brookings Curry Coastal Pilot, the Crescent City Daily Triplicate, and the Sonora Union Democrat. The Company also publishes the Central Oregon Nickel Ads in Bend, Oregon. Western Communications filed for Chapter 11 bankruptcy (Bankr. Ore. Case No. 11-37319) on Aug. 23, 2011. Albert N. Kennedy, Esq., and Michael W. Fletcher, Esq., at Tonkon Torp LLP serve as the Debtor's bankruptcy counsel. The Zinser Law Firm, P.C., and Davis Wright Tremaine LLP serve as the Debtor's special purpose counsel. The Debtor scheduled $10 million to $50 million in assets and debts. The petition was signed by Gordon Black, president. WIKILOAN INC: Delays Filing of Quarterly Report on Form 10-Q ------------------------------------------------------------ Wikiloan Inc. was unable, without unreasonable effort or expense, to file its Quarterly Report on Form 10-Q for the period ended July 31, 2011, by the Sept. 14, 2011, filing date applicable to smaller reporting companies due to a delay experienced by the Company in completing its financial statements and other disclosures in the Quarterly Report. As a result, the Company is still in the process of compiling required information to complete the Quarterly Report and its independent registered public accounting firm requires additional time to complete its review of the financial statements for the period ended July 31, 2011, to be incorporated in the Quarterly Report. The Company anticipates that it will file the Quarterly Report no later than the fifth calendar day following the prescribed filing date. About WikiLoan Inc. Los Angeles, Calif.-based WikiLoan, Inc. -- http://wikiloan.com/- - is a Web site that provides tools for person-to-person borrowing and lending. People can use the tools on the website to borrow and lend money ($500 to $25,000) among themselves at rates that make sense to all parties. WikiLoan provides management tools that allow Borrowers and Lenders to manage the process by: providing loan documentation, promissory notes, repayment schedules, email reminders, online account access, and online repayment. The Company reported a net loss of $3.15 million on $635,184 of revenue for the year ended Jan. 31, 2011, compared with a net loss of $596,639 on $1,801 of revenue for the same period during the prior year. As reported by the TCR on May 20, 2011, PS Stephenson & Co., PC, in Wharton, Texas, expressed substantial doubt about WikiLoan's ability to continue as a going concern following the Company's results for the fiscal year ended Jan. 31, 2011. The independent auditors noted that the Company has no revenue, significant assets or cash flows. The Company's balance sheet at April 30, 2011, showed $411,799 in total assets, $1.39 million in total liabilities and a $980,206 total stockholders' deficit. WOODLAND ESTATES: Case Summary & 3 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Woodland Estates of Kalamazoo, LLC dba Woodland Mobile Home Community dba Woodland Estates Manufactured Home Community 32540 Schoolcraft Ste 110 Livonia, MI 48150 Bankruptcy Case No.: 11-64267 Chapter 11 Petition Date: September 13, 2011 Court: United States Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Phillip J. Shefferly Debtor's Counsel: Richard F. Fellrath, Esq. LAW OFFICES OF RICHARD F. FELLRATH 4056 Middlebury Drive Troy, MI 48085 Tel: (248) 519-5064 Fax: (248) 519-5065 E-mail: lawfell@wowway.com Scheduled Assets: $3,020,724 Scheduled Debts: $3,596,819 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mieb11-64267.pdf The petition was signed by Germano L. Mularoni. YRC WORLDWIDE: Stockholders OK Agreement and Plan of Merger ----------------------------------------------------------- YRC Worldwide Inc. held a special meeting of stockholders on Sept. 16, 2011. The Company's outstanding common stock, Series A Voting Preferred Stock and Series B Convertible Preferred Stock voted together as a single class on all proposals, with each share of common stock and Series A Voting Preferred Stock entitled to one vote and each share of Series B Convertible Preferred Stock entitled to 42.6652 votes. At the meeting, the Agreement and Plan of Merger between the Company and its recently formed, wholly- owned subsidiary, YRC Merger Sub, Inc., was approved. The merger will be effective upon the filing of the Certificate of Merger with the Delaware Secretary of State. The adjournment of the Special Meeting, if necessary, to solicit additional proxies, if there were not sufficient votes at the time of the special meeting to approve the Merger Agreement, was approved. The adjournment of the special meeting was not necessary because there were sufficient votes at the time of the special meeting to adopt the Merger Agreement. Following stockholder approval of the Agreement and Plan of Merger, the Company filed a Certificate of Merger with the Delaware Secretary of State on Sept. 16, 2011, in connection with which the Company's certificate of incorporation was amended and restated. Effective as of Sept. 16, 2011, the Company's amended and restated certificate of incorporation increased the Company's authorized capital stock to 10.005 billion shares of capital stock, consisting of 5.0 million shares of preferred stock, par value $1.00 per share, and 10.0 billion shares of common stock, par value $0.01 per share. Under the Company's prior certificate of incorporation, the Company's authorized capital stock consisted of 85.0 million shares of capital stock, consisting of 5.0 million shares of preferred stock, par value $1.00 per share, and 80.0 million shares of common stock, par value $0.01 per share. Upon the effectiveness of the New Charter, and pursuant to the certificate of designations for the Company's Series B Convertible Preferred Stock, par value $1.00 per share, the Series B Preferred Stock will automatically convert into shares of the Company's common stock at a rate equal to 372.6222 shares of common stock for each share of Series B Preferred Stock, rounded down to the nearest whole common share. Under the New Charter, the Company elects not to be governed by Section 203 of the Delaware General Corporation Law, in contrast to the Company's Prior Charter. Furthermore, the New Charter does not require any "super-majority" approval of certain business combination transactions. Under the New Charter, members of the board of directors may be removed from office at any time, with or without cause, by the affirmative vote of holders of a majority of the voting power. However, vacancies on the board of directors resulting from the death, resignation, retirement, disqualification or removal of a director appointed by the International Brotherhood of Teamsters may be filled solely by the IBT as the holder of the one share of the Company's Series A Voting Preferred Stock, par value $1.00 per share. Pursuant to the terms of the Merger Agreement, the Company's bylaws were also amended and restated. The Company's amended and restated bylaws, effective as of Sept. 16, 2011, largely modify certain provisions of the Company's prior Bylaws to conform to the New Charter adopted in the Charter Amendment Merger. Like the New Charter, the New Bylaws provide that, among other things, special meetings of the stockholders may be called by the secretary of the Company, upon the written request of stockholders representing at least 25% of the voting power if certain notice requirements are met. The New Bylaws provide that stockholders are entitled to take action by written consent if the consent is signed by holders of not less than the minimum voting power that would be necessary to authorize or take the action at a stockholder meeting and if the board of directors approves in advance of the taking of such action. The New Bylaws may be amended or repealed, or new bylaws may be adopted, by the affirmative vote of a majority of the voting power or by the affirmative vote of a majority of the whole board of directors. A full-text copy of the Amended and Restated Certificate of Incorporation is available for free at http://is.gd/YwuAE7 A full-text copy of the Amended and Restated Bylaws is available for free at http://is.gd/ICpXDU About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that through wholly owned operating subsidiaries offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. KPMG LLP's audit reports on the consolidated financial statements of YRC Worldwide Inc. and subsidiaries for 2009 and 2010 each contain an explanatory paragraph that states that the Company has experienced significant declines in operations, cash flows and liquidity and these conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at June 30, 2011, showed $2.59 billion in total assets, $2.91 billion in total liabilities and a $328.79 million in shareholders' deficit. * * * In January 2011, Standard & Poor's Ratings Services placed its 'CCC-' corporate credit rating on YRC Worldwide Inc. (YRCW) on CreditWatch developing. At the same time, S&P is withdrawing the existing issue level ratings on Yellow Corp.'s senior unsecured debt, given the negligible amounts outstanding. "The ratings on Overland Park, Kan.-based YRCW reflect its near- term liquidity challenges, meaningful off-balance-sheet contingent obligations related to multiemployer pension plans, as well as its participation in the competitive, capital-intensive, and cyclical trucking industry," said Standard & Poor's credit analyst Anita Ogbara. "YRCW's substantial (albeit deteriorating) market position in the less-than-truckload (LTL) sector, which has high barriers to entry, partially offsets these characteristics. We characterize YRCW's business profile as weak, financial profile as highly leveraged, and liquidity as weak." In the Aug. 2, 2011, edition of the TCR, Moody's Investors Service revised YRC Worldwide Inc.'s Probability of Default Rating ("PDR") to Caa2\LD ("Limited Default") from Caa3 in recognition of the agreed debt restructuring which will result in losses for certain existing debt holders. In a related action Moody's has raised YRCW's Corporate Family Rating to Caa3 from Ca to reflect modest but critical improvements in the company's credit profile that should result from its recently-completed financial restructuring. The positioning of YRCW's PDR at Caa2\LD reflects the completion of an offer to exchange a substantial majority of the company's outstanding credit facility debt for new senior secured credit facilities, convertible unsecured notes, and preferred equity, which was completed on July 22, 2011. As reported by the TCR on May 5, 2011, Fitch Ratings downgraded YRC's Issuer default rating to 'C' from 'CC'; Secured bank credit facility rating downgraded to 'CCC/RR2' from 'B-/RR2'; and Senior unsecured rating affirmed at 'C/RR6'. In addition, Fitch has removed YRCW's ratings from Rating Watch Negative. Fitch said that although it appears increasingly likely that the company will successfully complete the restructuring, until the transactions constituting the restructuring close, which is not anticipated until late July 2011, there exists a potential for the transaction to fail, in which case Fitch expects the company would be forced to file for Chapter 11 bankruptcy protection. YRC WORLDWIDE: Receives Add'l Non-Compliance Notice from NASDAQ --------------------------------------------------------------- YRC Worldwide Inc., on Sept. 12, 2011, received an additional staff determination letter from The NASDAQ Stock Market stating that, based on the closing bid price of the Company's common stock for the last 30 consecutive business days, a deficiency exists with regard to NASDAQ Listing Rule 5450(a)(1), which requires a minimum bid price of $1.00 per share. Pursuant to NASDAQ's broad discretionary authority under Listing Rule 5101, the staff determination letter determined not to provide the Company with a compliance period of 180 days generally provided under the Listing Rules, and that, accordingly, this matter serves as an additional basis for delisting the Company's common stock from NASDAQ. As previously disclosed, on July 22, 2011, the Company received a staff determination letter from NASDAQ stating that the Company's common stock should be delisted because the Company issued Series B Convertible Preferred Stock, 10% Series A Convertible Senior Secured Notes due 2015, and 10% Series B Convertible Senior Secured Notes due 2015 at the closing of the Company's exchange offer and related restructuring transactions in violation of NASDAQ Listing Rules 5635(b) and 5635(d) and because such issuance raises public interest concerns under NASDAQ Listing Rule 5101. The Company has appealed the staff's determination, including its determination with respect to the closing bid price deficiency, to a hearing panel pursuant to the procedures set forth in the NASDAQ Listing Rule 5800 series. About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that through wholly owned operating subsidiaries offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. KPMG LLP's audit reports on the consolidated financial statements of YRC Worldwide Inc. and subsidiaries for 2009 and 2010 each contain an explanatory paragraph that states that the Company has experienced significant declines in operations, cash flows and liquidity and these conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at June 30, 2011, showed $2.59 billion in total assets, $2.91 billion in total liabilities and a $328.79 million in shareholders' deficit. * * * In January 2011, Standard & Poor's Ratings Services placed its 'CCC-' corporate credit rating on YRC Worldwide Inc. (YRCW) on CreditWatch developing. At the same time, S&P is withdrawing the existing issue level ratings on Yellow Corp.'s senior unsecured debt, given the negligible amounts outstanding. "The ratings on Overland Park, Kan.-based YRCW reflect its near- term liquidity challenges, meaningful off-balance-sheet contingent obligations related to multiemployer pension plans, as well as its participation in the competitive, capital-intensive, and cyclical trucking industry," said Standard & Poor's credit analyst Anita Ogbara. "YRCW's substantial (albeit deteriorating) market position in the less-than-truckload (LTL) sector, which has high barriers to entry, partially offsets these characteristics. We characterize YRCW's business profile as weak, financial profile as highly leveraged, and liquidity as weak." In the Aug. 2, 2011, edition of the TCR, Moody's Investors Service revised YRC Worldwide Inc.'s Probability of Default Rating ("PDR") to Caa2\LD ("Limited Default") from Caa3 in recognition of the agreed debt restructuring which will result in losses for certain existing debt holders. In a related action Moody's has raised YRCW's Corporate Family Rating to Caa3 from Ca to reflect modest but critical improvements in the company's credit profile that should result from its recently-completed financial restructuring. The positioning of YRCW's PDR at Caa2\LD reflects the completion of an offer to exchange a substantial majority of the company's outstanding credit facility debt for new senior secured credit facilities, convertible unsecured notes, and preferred equity, which was completed on July 22, 2011. As reported by the TCR on May 5, 2011, Fitch Ratings downgraded YRC's Issuer default rating to 'C' from 'CC'; Secured bank credit facility rating downgraded to 'CCC/RR2' from 'B-/RR2'; and Senior unsecured rating affirmed at 'C/RR6'. In addition, Fitch has removed YRCW's ratings from Rating Watch Negative. Fitch said that although it appears increasingly likely that the company will successfully complete the restructuring, until the transactions constituting the restructuring close, which is not anticipated until late July 2011, there exists a potential for the transaction to fail, in which case Fitch expects the company would be forced to file for Chapter 11 bankruptcy protection. ZOO ENTERTAINMENT: Posts $10.1 Million Net Loss in Second Quarter ----------------------------------------------------------------- Zoo Entertainment, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $10.1 million on $3.7 million of revenue for the three months ended June 30, 2011, compared with a net loss of $965,000 on $9.8 million of revenue for the the same period last year. The Company's two largest distributors during the 2010 year, who combined represented 52% of the Company's sales for the second quarter of 2010, did not purchase any product in the three months ended June 30, 2011. For the six months ended June 30, 2011, the Company had a net loss of $15.7 million on $7.4 million of revenue, compared with a net loss of $944,000 on $26.5 million of revenue for the same period of 2010. The Company's two largest distributors during the 2010 year, who combined represented 42% of the Company's sales for the first six months of 2010, did not purchase any product in the six months ended June 30, 2011. The Company's balance sheet at June 30, 2011, showed $8.8 million in total assets, $14.0 million in total liabilities, and a stockholders' deficit of $5.2 million. As reported in the TCR on Apr 26, 2011, EisnerAmper LLP, in Edison, N.J., expressed substantial doubt about Zoo Entertainment's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has both incurred losses and experienced net cash outflows from operations since inception. A complete text of the Form 10-Q is available for free at: http://is.gd/PjAh7t Cincinnati, Ohio-based Zoo Entertainment, Inc. (NASDAQ CM: ZOOG) is a developer, publisher and distributor of interactive entertainment for Internet-connected consoles, handheld gaming devices, PCs, and mobile devices. ZOGENIX INC: Amends 30 Million Common Shares Offering ----------------------------------------------------- Zogenix, Inc., filed with the U.S. Securities and Exchange Commission Amendment No.2 to Form S-1 registration statement relating to the sale of 30,000,000 shares of the Company's common stock. The Company's common stock is listed on the Nasdaq Global Market under the symbol "ZGNX." On Sept. 14, 2011, the last reported sale price of the Company's common stock on the Nasdaq Global Market was $2.62 per share. The Company currently expects the public offering price of the shares offered hereby to be $2.00 per share of common stock. A full-text copy of the amended prospectus is available for free at http://is.gd/AUtCKM About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. The Company's balance sheet at June 30, 2011, showed $51.4 million in total assets, $58.5 million in total liabilities, and a stockholders' deficit of $7.1 million. As reported in the TCR on March 8, 2011, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about Zogenix's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's recurring losses from operations and lack of sufficient working capital. * BOND PRICING -- For Week From Sept. 12 - 16, 2011 --------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- --------- ACARS-GM 8.10 6/15/2024 1.00 AGY HOLDING COR 11.00 11/15/2014 52.00 AHERN RENTALS 9.25 8/15/2013 34.50 AMBAC INC 5.95 12/5/2035 11.50 AMBAC INC 6.15 2/7/2087 0.70 AMBAC INC 7.50 5/1/2023 10.00 AMBAC INC 9.38 8/1/2011 10.00 AMBAC INC 9.50 2/15/2021 12.00 AMERICAN ORIENT 5.00 7/15/2015 52.59 BANK NEW ENGLAND 8.75 4/1/1999 14.00 BANK NEW ENGLAND 9.88 9/15/1999 14.00 BANKUNITED FINL 6.37 5/17/2012 7.10 BLOCKBUSTER INC 11.75 10/1/2014 2.13 CAPMARK FINL GRP 5.88 5/10/2012 54.19 CIRCUS & ELDORAD 10.13 3/1/2012 80.00 CS FINANCING CO 10.00 3/15/2012 4.00 DECODE GENETICS 3.50 4/15/2011 0.50 DIRECTBUY HLDG 12.00 2/1/2017 33.75 DIRECTBUY HLDG 12.00 2/1/2017 36.75 DUNE ENERGY INC 10.50 6/1/2012 54.16 EDDIE BAUER HLDG 5.25 4/1/2014 7.00 ENERGY CONVERS 3.00 6/15/2013 45.90 EVERGREEN SOLAR 4.00 7/15/2013 5.88 EVERGREEN SOLAR 4.00 7/15/2020 13.00 EVERGREEN SOLAR 13.00 4/15/2015 59.75 GLB AVTN HLDG IN 14.00 8/15/2013 45.83 GLOBALSTAR INC 5.75 4/1/2028 59.75 GREAT ATLA & PAC 6.75 12/15/2012 30.25 HAWKER BEECHCRAF 8.50 4/1/2015 45.00 HAWKER BEECHCRAF 9.75 4/1/2017 40.00 LEHMAN BROS HLDG 3.00 10/28/2012 25.13 LEHMAN BROS HLDG 3.00 11/17/2012 24.25 LEHMAN BROS HLDG 4.70 3/6/2013 23.38 LEHMAN BROS HLDG 4.80 2/27/2013 23.13 LEHMAN BROS HLDG 4.80 3/13/2014 23.13 LEHMAN BROS HLDG 5.00 1/22/2013 23.13 LEHMAN BROS HLDG 5.00 2/11/2013 22.50 LEHMAN BROS HLDG 5.00 3/27/2013 21.50 LEHMAN BROS HLDG 5.00 8/3/2014 23.13 LEHMAN BROS HLDG 5.00 8/5/2015 23.38 LEHMAN BROS HLDG 5.10 1/28/2013 22.13 LEHMAN BROS HLDG 5.15 2/4/2015 23.13 LEHMAN BROS HLDG 5.25 2/6/2012 21.57 LEHMAN BROS HLDG 5.25 1/30/2014 23.13 LEHMAN BROS HLDG 5.25 2/11/2015 23.38 LEHMAN BROS HLDG 5.40 3/20/2020 16.00 LEHMAN BROS HLDG 5.50 4/4/2016 23.00 LEHMAN BROS HLDG 5.63 1/24/2013 24.75 LEHMAN BROS HLDG 5.70 1/28/2018 22.00 LEHMAN BROS HLDG 5.75 5/17/2013 22.38 LEHMAN BROS HLDG 5.88 11/15/2017 22.50 LEHMAN BROS HLDG 6.00 7/19/2012 23.93 LEHMAN BROS HLDG 6.20 9/26/2014 24.20 LEHMAN BROS HLDG 6.63 1/18/2012 24.25 LEHMAN BROS HLDG 6.88 5/2/2018 25.13 LEHMAN BROS HLDG 7.00 6/26/2015 23.50 LEHMAN BROS HLDG 7.00 12/18/2015 25.63 LEHMAN BROS HLDG 7.00 4/16/2019 22.55 LEHMAN BROS HLDG 8.05 1/15/2019 22.00 LEHMAN BROS HLDG 8.50 8/1/2015 22.00 LEHMAN BROS HLDG 8.80 3/1/2015 24.00 LEHMAN BROS HLDG 9.00 3/7/2023 19.78 LEHMAN BROS HLDG 9.50 12/28/2022 21.75 LEHMAN BROS HLDG 9.50 1/30/2023 22.63 LEHMAN BROS HLDG 9.50 2/27/2023 21.25 LEHMAN BROS HLDG 10.00 3/13/2023 25.13 LEHMAN BROS HLDG 10.38 5/24/2024 20.96 LEHMAN BROS HLDG 11.00 6/22/2022 23.50 LEHMAN BROS HLDG 11.00 7/18/2022 20.00 LEHMAN BROS HLDG 11.00 3/17/2028 25.50 LEHMAN BROS HLDG 11.50 9/26/2022 22.00 LEHMAN BROS HLDG 18.00 7/14/2023 25.75 LEHMAN BROS INC 7.50 8/1/2026 15.00 LIFEPT VILGE 8.50 3/19/2013 49.50 LOCAL INSIGHT 11.00 12/1/2017 2.25 MAJESTIC STAR 9.75 1/15/2011 5.00 MOHEGAN TRIBAL 7.13 8/15/2014 48.00 MOHEGAN TRIBAL 8.00 4/1/2012 62.85 NBC ACQ CORP 11.00 3/15/2013 1.00 NEBRASKA BOOK CO 8.63 3/15/2012 53.00 NEWPAGE CORP 12.00 5/1/2013 2.00 PMI CAPITAL I 8.31 2/1/2027 9.00 PMI GROUP INC 6.00 9/15/2016 31.25 REAL MEX RESTAUR 14.00 1/1/2013 82.50 RESTAURANT CO 10.00 10/1/2013 15.00 RIVER ROCK ENT 9.75 11/1/2011 80.00 S0-CALL09/11 5.50 12/15/2028 100.00 SBARRO INC 10.38 2/1/2015 6.80 SO-CALL09/11 5.40 3/1/2033 100.00 TEXAS COMP/TCEH 10.25 11/1/2015 42.44 TEXAS COMP/TCEH 10.25 11/1/2015 38.88 THORNBURG MTG 8.00 5/15/2013 9.00 TIMES MIRROR CO 7.25 3/1/2013 39.14 TOUSA INC 9.00 7/1/2010 19.50 TRAILER BRIDGE 9.25 11/15/2011 95.00 TRICO MARINE 3.00 1/15/2027 1.25 TRICO MARINE SER 8.13 2/1/2013 4.00 VIRGIN RIVER CAS 9.00 1/15/2012 51.00 WASH MUT BANK FA 5.13 1/15/2015 0.25 WCI COMMUNITIES 4.00 8/5/2023 1.57 WILLIAM LYON INC 7.50 2/15/2014 21.00 WILLIAM LYON INC 10.75 4/1/2013 25.50 WILLIAM LYONS 7.63 12/15/2012 25.23 WINDERMERE BAPT 7.70 5/15/2012 18.00 ********* 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***