/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/111013.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, October 13, 2011, Vol. 15, No. 284 Headlines 315 UNION: Trustee Employs Rodefer, Moss as Accountants ABITIBIBOWATER INC: Now 'Resolute Forest' After Bankruptcy ALLEN FAMILY: Wants Until Feb. 6 to File Liquidating Plan AMES DEPARTMENT: Wants Solicitation Period Extended to April 30 BEAR VALLEY: Inks Revised Stipulation Providing Turn Over of Cash BELTWAY ONE: Can Access Cash Collateral on Final Basis BERNARD L. MADOFF: Judge Rakoff May Rule on Lawsuit vs. AMB Amro BERNARD L MADOFF: Trustee Blasts Order to Limit Recovering Profits CAPMARK FINANCIAL: Closes $102.4MM Sale of Portfolio to Hunt Cos CAVIATA ATTACHED: Disclosure Statement Hearing Set for Nov. 4 COSTA DORADA: Wants Until Oct. 30 to Propose Reorganization Plan DOLLAR THRIFTY: Has No Acceptable Bids After Avis Backs Out EVERGREEN SOLAR: Court Selects Hilco to Liquidate Solar Facilities EVERGREEN SOLAR: Sale Challenged by U.S. Government FAIRWAY COMMONS: Has Plan Where Receiver to Maintain Control GARLOCK SEALING: Allowed to Terminate Loan With $100MM in Bank GELT PROPERTIES: Creditors' Panel Hires Schoff McCabe as Counsel GELT PROPERTIES: Files Amended Schedules of Assets & Liabilities HARRISBURG PA: Chapter 9 Case Summary & Creditors List HARTFORD FINANCIAL: Fitch Affirms 'BB' Rating on Preferred Stock HORIZON VILLAGE: Can Access Cash Collateral on Final Basis HOTEL AIRPORT: Employs RS & Associates as External Auditor HOWREY LLP: Diamond Named as Ch.11 Trustee; Creditors' Atty. Quits HOWREY LLP: Allan Diamond Named as Chapter 11 Trustee INNKEEPERS USA: Trial Over Dead $1B Deal Delayed as Talks Continue INNKEEPERS USA: Solar Finance DIP Facility Matured on Oct. 11 INNKEEPERS USA: Five Mile DIP Facility Matured on Oct. 11 LOS ANGELES DODGERS: Disagrees With Committee at Length on TV Sale LOS ANGELES DODGERS: Trades Blows With MLB in Fight Over Control LOS ANGELES DODGERS: Says MLB Should Drop Opposition to Dewey MADISON 92ND: Asks Court's Permission to Use GE's Cash Collateral MANHATTAN WEST: Piranha Nightclub Files for Chapter 11 MARCO POLO: Court Authorizes Bracewell & Giuliani as Counsel MSR RESORT: Reaches Bankruptcy Settlement With MetLife NEWPAGE CORP: U.S. Trustee Appoints 9-Member Creditors' Panel NASSAU BROADCASTING: Hearing Set for Oct. 12 on Chapter 11 Move NATIONAL ENVELOPE: Nov. 8 Hearing on Final Exclusivity Extension N.L.C. UNITRUST: Files Chapter 11 Plan & Disclosure Statement OPEN RANGE: Wins Judge OK to Borrow $4M to Fund Ch. 11 Sale OUTSOURCE HOLDINGS: Plan Subordinates 2009 Noteholders' Claims PAUL BRENNEKE: Has Until Dec. 6 to Propose Plan of Reorganization PEARLAND SUNRISE: C-III Assets Wants Plan Confirmation Denied PENINSULA HOSPITAL: Creditors' Panel Retains Arent Fox as Counsel PERKINS & MARIE: Seeks Plan Exclusivity Until Jan. 9 PHILADELPHIA ORCHESTRA: Wants to Hire Grant Thornton as Advisor QUALTEQ INC: Real Property Debtors Can Access Cash Collateral R.E. LOANS: Court Determines Bankruptcy Cases as Complex Cases REAL MEX: Court OKs Epiq as Claims, Noticing & Balloting Agent SBARRO INC: Court Approves Disclosure Statement SEAHAWK DRILLING: Plan of Reorganization Declared Effective SHAMROCK-SHAMROCK INC: Friends Bank Has Deal on Adeq. Protection SHENGDATECH INC: Seeks to Subpoena Chinese Banks Amid Probe SOLYNDRA LLC: VDL Tries to Halt Asset Sale Over $13MM Deal SOLYNDRA LLC: Has CRO Replacing CEO B. Harrison SSI GROUP: Section 341(a) Meeting Scheduled for Oct. 26 SSI GROUP: U.S. Trustee Wants Sale Break-Up Fee Denied SUMMO INC: U.S. Trustee Unable to Form Committee SW BOSTON: Has Until Oct. 31 to Use Prudential's Cash Collateral TAYLOR BEAN: Workers Settle WARN Suit for $15 Million TEN SAINTS: Can Access Cash Collateral on Final Basis TETON AIR: Wants U.S. Trustee's Plea for Case Dismissal Denied TOWER OAKS: CWCAM Granted Relief From Stay to Appoint Receiver TOWER OAKS: Bregman Berbert to Assess Claims vs. VCB TRANS NATIONAL: Files for Chapter 11 Bankruptcy Protection TX BLACKHORSE: Disclosures Approved, Plan Hearing Set for Nov. 1 UNIVERSAL CITY: Fitch Upgrades Issuer Default Rating From 'BB+' WASHINGTON MUTUAL: Trenton Judge Named to Mediate Plan Compromise * Survey Shows Some Small-Business Owners Say Recession Lingers * California Signs Municipal Bankruptcy Bill Into Law * Geoffrey T. Raicht Joins Proskauer as Partner in New York * Teresa Kohl Joins SSG as Director of Business Development * Recent Small-Dollar & Individual Chapter 11 Filings ********* 315 UNION: Trustee Employs Rodefer, Moss as Accountants ------------------------------------------------------- Robert H. Waldschmidt, the Chapter 11 trustee appointed in the bankruptcy case of 315 Union Street Holdings, LLC, asks permission from the U.S. Bankruptcy Court for the Middle District of Tennessee to employ Rodefer, Moss & Co. PLLC as accountant. The accountant can be reached at: Rodefer, Moss & Co. PLLC 5110 Maryland Way # 350 Brentwood, TN 37027-7546 Tel: (615) 370-3663 E-mail: tvancleve@rodefermoss.com Upon retention, the firm will, among other things: a. inspect, review and analysis of financial documents of the debtor (including any related information filed with the Court); b. prepare spreadsheets, journals, ledgers, etc. pertaining to the financial affairs of the debtor; and c. provide tax analysis and business consultation services related to past and future transactions. The firm's rates are: Personnel Rates --------- ----- Partners $220-$325 Managers and Supervisors $125-$150 Senior Staff $90-$135 Junior Staff $75- $85 Support staff $40-$65 According to the Chapter 11 Trustee, Rodefer Moss is a "disinterested person" within the meaning of 11 U.S.C. Section 101(14). About 315 Union Street Holdings 315 Union Street Holdings, LLC, filed for Chapter 11 bankruptcy protection (Bankr. M.D. Tenn. Case No. 10-13106) on Dec. 3, 2010. According to its schedules, the Debtor had $13,162,646 in total assets and $25,484,852 in total debts as of the Petition Date. Steven L. Lefkovitz, Esq., of Lefkovitz & Lefkovitz, serves as bankruptcy counsel to the Debtor. Affiliate Union Street Plaza Operations, LLC, dba Hotel Indigo Nashville-Downtown, also based in Mount Juliet, Tenn., filed for Chapter 11 bankruptcy (Bankr. M.D. Tenn. Case No. 10-13107) on the same day. Mr. Lefkovitz serves as counsel to the Debtor. In its petition, the Debtor scheduled assets of $1,021,971 and debts of $17,696,245. Bankruptcy Judge Keith M. Lundin approved the appointment of Robert H. Waldschmidt, Esq., at Howell & Fisher, PLLC, as Chapter 11 trustee to oversee the bankruptcy estate of Union Street Plaza, effective Dec. 16, 2010. Branch Banking and Trust Company, a secured creditor, requested for a Chapter 11 trustee, citing that the appointment will prevent further loss to the estate. ABITIBIBOWATER INC: Now 'Resolute Forest' After Bankruptcy ---------------------------------------------------------- AbitibiBowater will change the Company name to Resolute Forest Products as of November 7, 2011. "We are changing our name to Resolute Forest Products to better reflect the fundamental characteristics of the Company we are today, including our determination, strength and resolve to be a profitable, sustainable organization," stated Richard Garneau, President and Chief Executive Officer. "With our competitive cost structure, diversified revenue base and strong balance sheet, we are well-positioned for the long term." The Company identity change follows an initiative, launched in April 2011, in which employees were invited to suggest a new name for the Company. An internal selection committee and the Executive Team chose Resolute Forest Products from among approximately 1,400 employee submissions. "This identity change serves as an opportunity to reposition the Company and to redefine ourselves with customers, shareholders and the communities in which we live and work," continued Garneau. On Nov. 7, 2011, the Company will begin using Resolute Forest Products and related visual identity on its marketing materials, website, signage and other communications. When communicating in French, the Company will use the name Produits forestiers Resolu. Prior to the November launch, the Company will continue to be referred to as AbitibiBowater. While the Company will be doing business as Resolute Forest Products as of Nov. 7, AbitibiBowater Inc. and its subsidiaries will not change their legal entity names until the Company obtains shareholder approval as required by law. The Company will seek formal shareholder approval at its 2012 Annual General Meeting. For customers, suppliers and other stakeholders with whom the Company interacts, little will change beyond how the Company will refer to itself and its products. The Company will operate "business as usual" with respect to invoicing, payments, contracts, Company stocks and stock market listings. AbitibiBowater will work to ensure the transition to the new identity is as smooth and seamless as possible for all its stakeholders. The Resolute Forest Products logo calls to mind the forest in which the Company works, the paper and lumber products it manufactures, and the modern and dynamic nature of the organization. Paper products are reflected in the half-circle of the "R", symbolizing a paper roll, as well as in the folds within the logo. The rectangular and triangular shapes, in the legs of the "R", represent wood products and forestry. Through the use of green as a primary color, the design also depicts the Company's determination to be a profitable business, committed to sustainability. AbitibiBowater and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing the three pillars of sustainability linked to human activities: economic, social and environmental. About AbitibiBowater Inc. AbitibiBowater Inc. -- http://www.abitibibowater.com/-- owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 70 countries, AbitibiBowater is also among the largest recyclers of old newspapers and magazines in North America, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, served as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acted as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, served as the Debtors' co-counsel, while Troutman Sanders LLP in New York, served as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors were Advisory Services LP, and their noticing and claims agent was Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel was Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Luc A. Despins, Esq., at Paul, Hastings, Janofsky & Walker LLP, in New York, served as counsel to the Official Committee of Unsecured Creditors. Jamie L. Edmonson, Esq., GianClaudio Finizio, Esq., and Daniel A. O'Brien, Esq., at Bayard, P.A., in Wilmington, Delaware, served as local counsel to the Creditors Committee. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represented the Chapter 15 Debtors. U.S. Bankruptcy Judge Kevin Carey handled the Chapter 11 cases of AbitibiBowater Inc. and its U.S. affiliates and the Chapter 15 case of ACI, et al. The U.S. Bankruptcy Court issued an opinion confirming AbitibiBowater's chapter 11 plan of reorganization on Nov. 22, 2010. The Debtors also obtained approval of their reorganization plan under the Canadian Companies' Creditors Arrangement Act. AbitibiBowater emerged from bankruptcy on Dec. 9, 2010. ALLEN FAMILY: Wants Until Feb. 6 to File Liquidating Plan --------------------------------------------------------- Allen Family Foods Inc. and its affiliates ask the U.S. Bankruptcy Court for the District of Delaware to extend the period during which they have the exclusive right to file a chapter 11 plan by 120 days, through and including Feb. 6, 2012; and extending the period during which the Debtors have the exclusive right to solicit acceptances through and including April 4, 2012. Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, says an extension is warranted, noting that the sale of the Debtors' assets has just recently closed. He states that now that the closing has occurred, the Debtors have turned their attention to analyzing the claims that are being filed against the estates and will, in consultation with the Committee, determine the most efficient means for bringing these cases to a conclusion. About Allen Family Foods 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. Allen 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. Roberta DeAngelis, U.S. Trustee for Region 3, appointed seven creditors to serve on an Official Committee of Unsecured Creditors in the Debtors' cases. Lowenstein Sandler PC and Womble Carlyle Sandridge & Rice, PLLC, serve as counsel for the committee. J.H. Cohn LLP serves as the Committee's financial advisor. The TCR reported on July 29, 2011, the Debtor won the bankruptcy judge's approval to sell its assets to a U.S. affiliate of Korean poultry producer Harim Co. Ltd. The sale was approved despite creditors' questions about the administrative solvency of the case. The purchase price was $48 million. AMES DEPARTMENT: Wants Solicitation Period Extended to April 30 --------------------------------------------------------------- BankruptcyData.com reports that Ames Department Stores and its affiliates filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Debtors can solicit acceptances for their Chapter 11 plan through and including April 30, 2012. BData relates that the Company explained, "While the Debtors believe the Plan (as the same may be amended) ultimately will be confirmed by this Court, they have refrained from soliciting votes pending a determination as to the solvency of the Debtors' estates and recoveries under the Plan." The Court scheduled an Oct. 24, 2011 hearing to consider the motion. About Ames Department Stores Rocky Hill, Connecticut-based Ames Department Stores was founded in 1958. At its peak, Ames operated 700 stores in 20 states, including the Northeast, Upper South, Midwest and the District of Columbia. In April 1990, Ames filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. In Ames I, the retailer closed 370 stores and emerged from chapter 11 on Dec. 30, 1992. Ames filed a second bankruptcy petition under Chapter 11 (Bankr. S.D.N.Y. Case No. 01-42217) on Aug. 20, 2001. Togut, Segal & Segal LLP; Weil, Gotshal & Manges; Storch Amini Munves PC; Cadwalader, Wickersham & Taft LLP; and Dewey & LeBoeuf LLP represent the Debtors. When the Company filed for protection from their creditors, they reported $1,901,573,000 in assets and $1,558,410,000 in liabilities. The Company closed all of its 327 department stores in 2002. Ames and its affiliates filed a consolidated Chapter 11 Plan, and a related Disclosure Statement explaining the Plan with the Court on Dec. 6, 2004. A full-text copy of Ames' Chapter 11 Plan is available at no charge at: http://bankrupt.com/misc/ames_chapter_11_plan.pdf and a full-text copy of Ames' Disclosure Statement is available at no charge at: http://bankrupt.com/misc/ames'_disclosure_statement.pdf As reported by the Troubled Company Reporter on March 16, a hearing to determine the adequacy of the Disclosure Statement explaining Ames' Plan has not yet been scheduled. BEAR VALLEY: Inks Revised Stipulation Providing Turn Over of Cash ----------------------------------------------------------------- Secured creditor Armed Forces Bank, N.A., successor by merger to Bank Midwest, N.A., and Bear Valley Limited Partnership have entered into a revised stipulation providing Lender with limited relief from stay in order for Lender to collect its cash collateral. The Lender is the holder of a construction promissory note dated May 19, 2008, in the original principal amount of $17,927,206, made by the Debtor and secured by real property in the City of Victorville, County of San Bernardino, California, and the rents, profits, and proceeds from the property which constitutes cash collateral. Ronen Armony, who claims that he is general partner and majority owner of the Debtor, has refused to enter into stipulation for the turn over of the cash collateral, according to the Debtor. Lender is informed and believes that since May 2011, at least two tenants, VS Direct, Inc., and Chipotle Mexican Grill, have been paying their rent into escrow accounts. There is at least one other tenant at the property, Acrobats, LLC. As per stipulation, to the extent that the Court believes that it has jurisdiction over the cash collateral and the automatic stay does apply, Lender and the Debtor agree: -- Until further of the Court, Lender will have limited relief from the automatic stay of 11 U.S.C. Section 362(a) in order to collect all past current and future rents from the property and all other cash collateral directly from the tenants or their escrow holders, pursuant to the procedures set forth in California Civil Code Section 2938, and to apply all amounts to the underlying indebtedness under the loan documents pursuant to the terms thereof. The Lender will provide to the Debtor and to Ronen Armony an accounting ] of all cash collateral received and applied on a monthly basis. -- The Lender will agree to put into an escrow account funds necessary to cover common area maintenance charges ("CAM") for the property. The CAM funds will only be disbursed pursuant to Court order. -- Relief from stay will be effective immediately upon the entry of the Court's order approving this stipulation, and the parties agree to waive the 14 day stay of Rule 4001(a)(3) of the Federal Rules of Bankruptcy Procedure ("FRBP"). -- The Court will retain jurisdiction over the enforcement, interpretation and applicability of the stipulation and any order approving the stipulation, until the case is dismissed or closed. As reported in the TCR on Aug. 31, 2011, the Debtor related that the rents are being escrowed by tenants Vitamin Shoppe and Chipotle because of a dispute over the management of the two commercial buildings in Victorville, California, by the Debtor and one of the alleged members of the Debtor. The Debtor says that Acrobats is paying Ronen Armony, the alleged member, and he is not using the funds to maintain the property. Mr. Armony filed an objection to the stipulation previously submitted to the Court on Sept. 28, 2011, asserting that the rents are not property of the bankruptcy estate. Mr. Armony claims that he owns the property that is producing the rents that the Bank seeks as cash collateral. Mr. Armony further alleges that the Bank's interest in the property is adequately protected, because the equity in the property to which the Bank's lien attaches far exceeds the $2.6 million outstanding on the loan. Mr. Armony, in his opposition to the stipulation, argued that the Court must order the stay in effect pending conclusion of the final hearing on the issues of property and entity ownership and control, which is currently set for Oct. 21, 2011. About Bear Valley Family Based in Costa Mesa, California, Bear Valley Family Limited Partnership filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-17893) on June 2, 2011. Christopher P. Walker, Esq., at the Law Office of Christopher P. Walker, P.C., in Anaheim Hills, Calif., serves as the Debtor's general bankruptcy counsel. Judge Robert N. Kwan presides over the case. The Debtor scheduled assets of $14,006,000 and liabilities of $7,353,409. H. Mark Mersel, Esq., and Sheri Kanesaka, Esq., at Bryan Cave LLP, in Irvine, Calif., represent secured creditor Armed Forces Bank, N.A., successor by merger to Bank Midwest, N.A. Brent H. Blakely, Esq., and Courtney Stuart Alban, Esq., at Blakely Law Group, in Hollywood, Calif., represent Ronen Armony as counsel. Ronen Armony claims to be the real party-in-interest in the Debtor's case. BELTWAY ONE: Can Access Cash Collateral on Final Basis ------------------------------------------------------ The U.S. Bankruptcy Court for the District of Nevada has entered a final cash collateral order authorizing Beltway One Development Group, LLC, to use cash collateral and disputed cash collateral on a final basis, as provided for in the stipulation with Wells Fargo Bank, N.A., and the budget attached thereto. The motion is granted on final basis solely with regard to BB&T Corp. and the Debtor is authorized and approved to utilize all funds constituting BB&T Corp.'s cash collateral, on a final basis as necessary to satisfy on-going post-petition obligations as provided for in the budget. Wells Fargo is granted a Replacement Lien in all of Debtor's now- owned or after-acquired real and personal property of all types, including, debtor-in-possession bank accounts, and all replacements, supporting obligations, offspring, products, and proceeds of the existing collateral and the replacement collateral to the same extent and priority as Lender's pre-petition security interest and liens. As reported in the TCR on Sept. 21, 2011, Beltway One asked the Bankruptcy Court to approve a stipulation entered with Wells Fargo, authorizing the use of cash collateral. Wells Fargo is successor by merger to Wachovia Bank, N.A. As of the Petition Date, the Debtor's obligation outstanding under the note was $9,807,506 on account of principal and contract interest. The lender consented to the Debtor's use of cash collateral and disputed cash collateral on these terms and conditions: -- the cash collateral use will terminate to a date that is the first to occur of: (i) five calendar days after notice to the Debtor that an Event of Default has occurred and is otherwise continuing or otherwise unresolved for which notice is required to be given; (ii) an Event of Default has occurred for which no notice is required to be given; or (iii) the effective date of a confirmed plan of reorganization; -- the stipulation will be effective upon entry of an order of the Bankruptcy Court approving the stipulation; -- as adequate protection of lender's interests in the cash collateral, and Debtor's use of the cash collateral, the Debtor will pay $30,000 per month to the lender; and -- the Debtor will grant the lender replacement lien in all of Debtor's now-owned or after-acquired real and personal property of all types, subject to carve out on certain expenses. A copy of the stipulation is available for free at: http://bankrupt.com/misc/beltway.stipulation.doc63.pdf About Horizon Village Square et al. Four related Las Vegas, Nevada-based entities sought Chapter 11 bankruptcy protection on July 13, 2011. The businesses are owned or managed by local business people and firms, including Todd Nigro, Nigro Development LLC, a Nigro family trust and other investors. Horizon Village Square LLC (Bankr. D. Nev. Case No. 11-21034) owns the Vons-anchored Horizon Village Square Shopping Center near I-515 and Horizon Drive in Henderson. The property includes five retail buildings with nearly 43,000 square feet of space. Ten Saints LLC (Bankr. D. Nev. Case No. 11-21028) owns the 134- room Hampton Inn & Suites at St. Rose Parkway and Seven Hills Drive in Henderson. Beltway One Development Group LLC (Bankr. D. Nev. Case No. 11- 21026) owns the Desert Canyon Business Park at Russell Road and the Las Vegas Beltway. It has two buildings and 15 acres. Nigro HQ LLC (Bankr. D. Nev. Case No. 11-21014) owns an office building at 9115 W. Russell Road occupied by Bank of George, Infinity Plus LLC and Nigro Construction Inc. Todd Nigro said the four bankruptcies were caused by threatened foreclosures -- typically related to Wells Fargo Bank demanding payments to keep loan-to-value ratios at specified levels. Judge Mike K. Nakagawa presides over the cases. Lawyers at Gordon Silver serve as the Debtors' bankruptcy counsel. The bankruptcy petitions estimated assets and debts from $1 million to $10 million each for Nigro HQ; and from $10 million to $50 million in both assets and debts for Horizon Village, Ten Saints and Beltway One. A fifth related business, Russell Boulder LLC, filed for bankruptcy (Bankr. D. Nev. Case No. 10-29724) on Oct. 19, 2010. It owns the 600-suite Siena Suites extended stay property at Boulder Highway and Russell Road. Edward M. Zachary, Esq., at Bryan Cave LLP, in Bryan Cave LLP, in Phoenix, Ariz., and Robert M. Charles, Jr., Esq., at Lewis and Roca LLP, in Los Vegas, Nev., represent Wells Fargo Bank, N.A., as counsel. BERNARD L. MADOFF: Judge Rakoff May Rule on Lawsuit vs. AMB Amro ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that U.S. District Judge Red Rakoff will decide whether the lawsuit by the trustee for Bernard L. Madoff Investment Securities Inc. against ABN Amro Bank (Ireland) Ltd. belongs in federal district court rather than bankruptcy court. On Sept. 29, ABN Amro filed papers to remove the case from bankruptcy court. Deciding the lawsuit was related to those he has already taken under his wing, Judge Rakoff accepted the case and will determine if it's proper to remove it from the grasp of the bankruptcy judge. ABN Amro asked to move the suit from bankruptcy court two days after Judge Rakoff ruled, in a case involving the owner of the New York Mets, that the so-called safe harbor in bankruptcy law bars all lawsuits except claims for money received through actual fraud within two years of bankruptcy. The Dutch bank said the suit must be removed because it requires consideration of non-bankruptcy federal law relating to limitations on a bankruptcy court's powers. The bank also said the Securities Investor Protection Act is a non-bankruptcy law the court must consider in passing on the merits of the lawsuit. The lawsuit in district court is Picard v. ABN Amro Bank (Ireland) Ltd. (In re Bernard L. Madoff Investment Securities LLC), 11-06877, U.S. District Court, Southern District New York (Manhattan). The lawsuit in bankruptcy court is Picard v. ABN Amro Bank (Ireland) Ltd. (In re Bernard L. Madoff Investment Securities LLC), 10-05355, U.S. Bankruptcy Court, Southern District of New York (Manhattan). About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of July 15, 2011, a total of US$6.88 billion in claims by investors has been allowed, with US$794.9 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BERNARD L MADOFF: Trustee Blasts Order to Limit Recovering Profits ------------------------------------------------------------------ Liz Hoffman at Bankruptcy Law360 reports that the Bernard L. Madoff Investment Securities LLC bankruptcy trustee on Friday blasted a judge's order limiting efforts to reclaim phony profits from the Ponzi scheme, saying victims would be deprived of billions of dollars and seeking permission to appeal to the Second Circuit. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of July 15, 2011, a total of US$6.88 billion in claims by investors has been allowed, with US$794.9 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. CAPMARK FINANCIAL: Closes $102.4MM Sale of Portfolio to Hunt Cos ---------------------------------------------------------------- Jeff Blumenthal at Philadelphia Business Journal reports that Capmark Financial Group has closed the sale of its low-income housing tax credit asset portfolio to Hunt Cos. Inc., a national real estate services company. According to the report, El Paso, Texas-based Hunt was the successful bidder in Capmark?s bankruptcy auction of the assets, paying $102.4 million. Under the terms of the purchase agreement the transaction will be closed in stages, with $63 million of the total included in the initial closing completed on Oct. 7, 2011. A break-up fee of about $2.8 million was paid to the stalking horse bidder in the auction. Mr. Blumenthal notes Capmark had emerged from Chapter 11 and made initial payments to creditors. Unsecured creditors will receive $900 million in cash, $1.25 billion in secured notes and 100 million shares in Capmark, a former commercial lender that is now a bank holding company. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- provided financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On Oct. 25, 2009, Capmark Financial and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Lead Case No. 09-13684). Capmark disclosed assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. The Official Committee of Unsecured Creditors in Capmark Financial Group Inc.'s cases tapped Kramer Levin Naftalis & Frankel LLP as its counsel and JR Myriad LLC as its commercial real estate business advisors. The Committee also retained Cutler Pickering Hale and Dorr LLP as its attorneys for the special purpose of providing legal services in connection with Federal Deposit Insurance Corporation matters. Protech Holdings C LLC, an affiliate of Capmark, filed for Chapter 11 protection on July 29, 2010 (Bankr. D. Del. Case No. 10-12387). Protech estimated assets and debts in excess of $1 billion as of the filing date. Since filing for Chapter 11, Capmark completed three sales to generate more than $1 billion in cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. In April 2011, Greenline Ventures LLC completed the acquisition of the New Markets Tax Credit division of Capmark Financial Group Inc. Since inception of the NMTC program, Capmark's NMTC division has closed over $1.1 billion of NMTC investment funds and financed over $2.5 billion of projects and businesses in low income communities nationwide. CAVIATA ATTACHED: Disclosure Statement Hearing Set for Nov. 4 ------------------------------------------------------------- Caviata Attached Homes, LLC, filed with the U.S. Bankruptcy Court for District of Nevada a Chapter 11 plan of reorganization and a disclosure statement explaining the Plan. Hearing on the approval of the Disclosure Statement is scheduled for Nov. 4, 2011, at 2:00 p.m. The Plan designates three classes of claims. Class 1 U.S. Bank Secured Claim will be equal to the sum of $23 million, less all principal reduction payments made after confirmation. The U.S. Bank Secured Claim will bear interest at the rate of 4.00% per annum from and after the Effective Date. Allowed Class 2 Unsecured Claims will receive quarterly distributions of the Surplus Net Income until the sum of $300,000 has been paid to Class 2 claimants. In addition, Allowed Unsecured Claims will receive a prorate distribution of the Net Sales Proceeds up to the sum of $300,000 less all quarterly payments made. The holder of the Class 3 Member Interest will retain its membership interest in the Reorganized Debtor but will receive no distribution until Classes 1 and 2 are paid in full. The Debtor will continue to operate its 184-unit apartment complex located at 950 Henry Orr Parkway, in Sparks, Nevada, post- confirmation, and Pinnacle AMS will continue to manage the Property. The Net Income will be used to fund the Plan. A full-text copy of the Disclosure Statement, dated Sept. 27, is available for free at http://ResearchArchives.com/t/s?7726 About Caviata Attached Homes Reno, Nevada-based Caviata Attached Homes LLC filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case No. 11-52458) on Aug. 1, 2011. Judge Bruce T. Beesley presides over the case. The Law Offices of Alan R. Smith, Esq., serves as bankruptcy counsel. According to its schedules, the Debtor disclosed $22,775,701 in total assets and $42,322,448 in total debts. The petition was signed by William D. Pennington, II, member of Caviata 184, LLC. There was a prior bankruptcy filing by Caviata Attached Homes (Bankr. D. Nev. Case No. 09-52786) on Aug. 18, 2009, also estimating $10 million to $50 million in both assets and debts. Alan R. Smith, Esq., also represented the 2009 Debtor. COSTA DORADA: Wants Until Oct. 30 to Propose Reorganization Plan ---------------------------------------------------------------- Costa Dorada Apartments Corp., asks the U.S. Bankruptcy Court for the District of Puerto Rico to extend until Oct. 30, 2011, its exclusive period to file a proposed chapter 11 plan of reorganization. In its second request for extension, the Debtor explains that it needs additional time to compile relevant financial information, specifically, new projections of the operations of the business and the terms of a debt restructuring of the principal secured debt; and negotiate with secured creditors to present a consented plan and file a stipulation between parties. About Costa Dorada Apartments Corp. Costa Dorada Apartments Corp., dba Villas De Costa Dorada, in Isabela, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-03960) on May 10, 2011. The Debtor disclosed $10.7 million in assets and $8.6 million in liabilities as of the Chapter 11 filing. The petition was signed by Carlos R. Fernandez Rodriguez, its president. Wigberto Lugo Mender, Esq., at Lugo Mender & Co., in Guaynabo, Puerto Rico, represents the Debtor as counsel. DOLLAR THRIFTY: Has No Acceptable Bids After Avis Backs Out ----------------------------------------------------------- Dollar Thrifty Automotive Group, Inc. has formally concluded its process to solicit definitive proposals regarding a potential business combination. On Aug. 21, 2011, Dollar Thrifty issued a letter advising parties of the Company's intention to solicit for submission in early October 2011 best and final definitive proposals regarding a potential business combination. In its letter, Dollar Thrifty stated that any proposal that did not eliminate the antitrust regulatory risk of the transaction for its shareholders would not likely be acceptable. As of Oct. 10, 2011, the Company had not received any proposals meeting this criterion. Consequently, Dollar Thrifty has terminated its solicitation process and will continue to execute its current stand-alone plan. Scott L. Thompson, President and Chief Executive Officer, said, "The purpose of setting a deadline for submission of bids was to bring clarity to the next steps for the Company. As we said all along, continuing uncertainty is in no one's interest. While Hertz's May 2011 exchange offer remains outstanding and on Oct. 7, 2011 Hertz's CEO called me personally to reaffirm their commitment to pursuing the acquisition of Dollar Thrifty, the fact remains that they have not made a proposal that addresses our Board's requirements. Having received no acceptable offer after conducting an unprecedentedly open process with clearly articulated requirements, it is time for us to move forward on a stand-alone basis." Share Repurchase Plan Affirmed Dollar Thrifty also confirmed that it plans to commence its previously announced share repurchase program after its third quarter earnings call on Nov. 1, 2011. Under the terms of the share repurchase program, the Company's Board of Directors has authorized the repurchase of up to $400 million of DTG stock. The Company stated that it expects to complete share repurchases of up to $100 million per quarter over the course of the next four quarters, and anticipates that purchases will be executed through accelerated stock buyback programs each quarter. The Company may also repurchase shares in privately negotiated transactions, pursuant to derivative instruments or other types of transactions and arrangements. The share repurchase program may be increased, suspended or discontinued at any time. Earnings Outlook Reiterated The Company also reiterated its preliminary expectations for earnings results for the third quarter of 2011. The Company expects rental revenue to increase by approximately 2 percent as compared to the third quarter of 2010. Corporate Adjusted EBITDA, excluding merger-related expenses, is expected to range from $110 to $120 million for the quarter, as compared to $93.7 million for the third quarter of 2010. The Company noted that it expects gains from sales of risk vehicles to be approximately $18 million in the third quarter of 2011, compared to approximately $10 million of gains in the third quarter of 2010. The Company noted that its previously announced guidance for the full year of 2011 for rental revenues and fleet costs, as well as its targeted range for Corporate Adjusted EBITDA, excluding merger related expenses, of $270 to $290 million, remain unchanged. Mr. Thompson continued, "It is also important to emphasize that Dollar Thrifty is well positioned for these uncertain times, as rental car customers become even more value-focused. Our long established value brands combined with our low operating cost and solid balance sheet are serving us well. We are on track for another record year." Dollar Thrifty to Announce Third Quarter 2011 Financial Results The Company will announce third quarter 2011 financial results prior to market open on Tuesday, Nov. 1, 2011. A conference call to review the Company's third quarter 2011 results will be held at 8:00 a.m. CT on Tuesday, Nov. 1, 2011. Scott Thompson, President and Chief Executive Officer, will lead the call. Also participating will be Cliff Buster, Chief Financial Officer. A live audio webcast of the call will be available on the Company's Web site http://www.dtag.com/ J.P. Morgan Securities LLC and Goldman Sachs & Co. are acting as financial advisors to Dollar Thrifty and Cleary Gottlieb Steen & Hamilton LLP is acting as Dollar Thrifty's legal counsel. The Board will review and consider any changes to the Hertz offer or any other proposals that may be made by Hertz or others, in accordance with its fiduciary duties. About Dollar Thrifty Dollar Thrifty Automotive Group, Inc., is headquartered in Tulsa, Oklahoma. The Company's brands, Dollar Rent A Car and Thrifty Car Rental, serve travelers in over 70 countries. Dollar and Thrifty have over 600 corporate and franchised locations in the United States and Canada, operating in virtually all of the top U.S. and Canadian airport markets. The Company's approximately 6,400 employees are located mainly in North America, but global service capabilities exist through an expanding international franchise network. In April 2010 Hertz Global Holdings Inc. made its initial bid to acquire DTAG. On Sept. 30, 2010, DTAG's shareholders rejected this bid in favor of a higher bid made by competitor AvisBudget Group Inc. (Avis Budget). On May 9, 2011, Hertz returned with a new bid. Following Hertz's new bid, on June 14, 2011, Avis Budget announced it had reached agreement to acquire U.K.-based car renter Avis Europe PLC. On Sept. 14, 2011, Avis Budget withdrew its bid for DTAG. * * * Dollar Thrifty carries a 'B' corporate credit rating, with positive outlook from Standard & Poor's. EVERGREEN SOLAR: Court Selects Hilco to Liquidate Solar Facilities ------------------------------------------------------------------ The Associated Press reports that Hilco Industrial had been appointed by the U.S. Bankruptcy Court to take bids on the Evergreen Solar facilities in Devens, Massachusetts, and Midland, Michigan, including all related assets housed in the plants. According to the report, the solar energy company closed the Devens plant in January and moved manufacturing operations to China. It had previously received more than $20 million in grants and $11 million in tax and lease initiatives from Massachusetts. The report notes Hilco said bids on the plants were due by Oct. 26, 2011, with the final auction scheduled for Nov. 1, 2011. 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. Hilco Industrial LLC serves as exclusive marketing and sales agent. Klehr Harrison Harvey Branzburg serves as special conflicts counsel. Zolfo Cooper LLC is the financial advisor. UBS Securities, LLC, serves as investment banker. 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. An official committee of unsecured creditors has retained Pepper Hamilton and Kramer Levin Naftalis & Frankel as counsel. The Committee tapped Garden City Group as communications services agent. Evergreen Solar is at least the fourth solar company to seek court protection from creditors since August 2011. Other solar firms are start-up Spectrawatt Inc., which also filed in August, Solyndra Inc., which filed early in September, and Stirling Energy Systems Inc., which filed for Chapter 7 bankruptcy late in September. EVERGREEN SOLAR: Sale Challenged by U.S. Government --------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Evergreen Solar Inc.'s reorganization could become a test for whether companies in Chapter 11 can freely sell technology developed with U.S. government subsidies. This week the U.S. Energy Department filed papers with the bankruptcy court in Delaware claiming Evergreen didn't abide by the Bayh-Dole Act, thus giving the government an ownership interest in some of the company's technology. According to the report, the filing, to be the subject of a Nov. 4 hearing, said the act requires recipients of federal funding to disclose inventions to the Energy Department within two years. The department said it provided Evergreen with $3 million. Because the company never notified the department, the act allows the government to demand title to the technology, according to the filing. The report relates that, anticipating arguments Evergreen can make, the department said giving the required notice now that the government claims an ownership interest isn't a violation of the automatic bankruptcy stay because the U.S. interest in the technology already exists. The government also said the government would be acting in furtherance of its police and regulatory powers, which aren't halted by the automatic stay. The Energy Department's request will be up for hearing at the same time Evergreen will be seeking bankruptcy court approval for a sale of the assets. Bids are due Oct. 26, followed by an auction on Nov. 1. 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. Hilco Industrial LLC serves as exclusive marketing and sales agent. Klehr Harrison Harvey Branzburg serves as special conflicts counsel. Zolfo Cooper LLC is the financial advisor. UBS Securities, LLC, serves as investment banker. 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. An official committee of unsecured creditors has retained Pepper Hamilton and Kramer Levin Naftalis & Frankel as counsel. The Committee tapped Garden City Group as communications services agent. Evergreen Solar is at least the fourth solar company to seek court protection from creditors since August 2011. Other solar firms are start-up Spectrawatt Inc., which also filed in August, Solyndra Inc., which filed early in September, and Stirling Energy Systems Inc., which filed for Chapter 7 bankruptcy late in September. FAIRWAY COMMONS: Has Plan Where Receiver to Maintain Control ------------------------------------------------------------ Fairway Commons II, LLC, Eureka Ridge, LLC, and Stoneview, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of California a Chapter 11 plan of reorganization and an accompanying disclosure statement. The Plan proposes that the Receiver continues to operate its commercial buildings and pay the creditors. The Plan provides for two classes of secured claims, two classes of unsecured claims, and one class of equity security holders. The Plan also provides for the payment of administrative claims in full on the effective date. Class 1 consists of the secured claim of J.E. Robert Company, Inc., in its capacity as special services for Wells Fargo, as lender. The Class 1 Secured Claim is impaired. J.E. Robert Company will be paid the adequate protection payments of $106,163 per month. The adequate protection payments are to increase as the value of the property increase with stabilization. The majority equity partner has the option to pay off the note for $24,570,000, while the asset is not stabilized. The undersecured portion of the loan will be extinguished. Class 2 consists of the secured claim of Rubicon Mezzanine Loan Fund 1, LLC, and Mechanic's Bank. The Class 2 Secured Claim is impaired. Within 90 days of the confirmation of the Plan, Rubicon will receive $200,000 and write off the balance of the money owed. Upon confirmation of the Plan, Mechanic's Bank's claim will be dismissed. Class 3 consists of non-insider general unsecured claims allowed under Section 502 of the Bankruptcy Code. The Debtors estimate the total amount of unsecured claims to be $26,700. All Class 3 claims are impaired. Holders of Class 3 claims will be paid 50 cents on the dollar of their allowed claim paid 10 days following the effective date. Class 4 consists of insider general unsecured claims allowed under Section 502. The Debtors estimate the total amount of unsecured claims is approximately $2,786,927 for unreimbursed tenant improvement. Class 4 claims are impaired. Holders of Class 4 claims will hold their claim due in 10 years and no payment will be received until J.E. Robert is satisfied and consents to payment being made. Class 5 consists of equity interests are impaired under the Plan. The combined equity interests of all the prepetition equity holders will be reduced from 100% to 10%. Upon the payment of $2 million no later than Dec. 2011, the investor will become a new equity holder and hold the remaining 90% equity. A full-text copy of the Disclosure Statement, dated Sept. 19, is available for free at http://ResearchArchives.com/t/s?7727 Kobra EFS, in Roseville, California, filed for Chapter 11 bankruptcy (Bankr. E.D. Calif. Case No. 11-35250) on June 20, 2011. Affiliates that also sought Chapter 11 protection are Fairway Commons II, LLC (Case No. 11-35255) and Eureka Ridge, LLC (Case No. 11-35256). Judge Christopher M. Klein presides over the case. Paul A. Warner, Esq., serves as the Debtors' bankruptcy counsel. Kobra EFS and Fairway Commons II separately estimated $10 million to $50 million in both assets and debts. GARLOCK SEALING: Allowed to Terminate Loan With $100MM in Bank -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Garlock Sealing Technologies LLC, with $100 million cash in the bank, was authorized by the bankruptcy judge at a hearing to terminate a $10 million loan from Bank of America NA, according to court records. In seeking to terminate the loan, Garlock explained how it took the loan immediately after the Chapter 11 filing in June 2010 to assure customers and suppliers of the company's liquidity. The company never made any draws on the loan. About Garlock Sealing Headquartered in Palmyra, New York, Garlock Sealing Technologies LLC is a unit of EnPro Industries, Inc. (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, 2010, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D.N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for asbestos matters. The Official Committee of Asbestos Personal Injury Claimants in the Chapter 11 cases is represented by Travis W. Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC, Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and Jeanna Rickards Koski, Esq., in Washington, D.C. 20005. Joseph W. Grier, III, the Court-appointed legal representative for future asbestos claimants, has retained A. Cotten Wright, Esq., at Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co- counsel. About 124,000 asbestos claims are pending against Garlock in state and federal courts across the country. The Company says majority of pending asbestos actions against it is stale and dormant -- almost 110,000 or 88% were filed more than four years ago and more than 44,000 or 35% were filed more than 10 years ago. GELT PROPERTIES: Creditors' Panel Hires Schoff McCabe as Counsel ---------------------------------------------------------------- The Official Unsecured Creditors' Committee of Gelt Properties LLC asks permission from the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to retain Schoff McCabe, P.C. as its counsel. Upon retention, the firm will, among other things: a) give the Committee legal advice with respect to its duties and powers in this case; b) assist in its investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors, the operation of the Debtors' businesses and the desirability of the continuance of such businesses, and any other matter relevant to the case or to the formation of a plan or plans of reorganization; and c) participate with the Debtors and other parties in the interest in the formulation of a plan or plans of reorganization. According to the Committee's filing, the he firm received both a $20,000 retainer for services to be rendered in these cases, as well as guaranties of any fees, costs, and expenses incurred. The firm's rates are: Personnel Rates --------- ----- Partners/Shareholders $350-375/hour Associates $175-225/hour Paralegals $80-110/hour Legal Assistants/ Clerks $60-80/hour Paul J. Schoff, Esq. -- pschoff@schoffmccabe.com -- attests that Schoff McCabe represents no entity with an adverse interest in connection with the Debtors' cases, and holds no interest adverse to the estate with respect to the matter on which the firm is employed. Meanwhile, the U.S. Trustee for Region 3 continued a meeting of creditors pursuant to Sec. 341(a) of the Bankruptcy Code. The 341(a) meeting was to be held Oct. 5, 2011. 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. The petitions were signed by Uri Shoham, the Debtors' chief financial officer. Gelt Properties scheduled $4,727,090 in assets and $4,842,792 in liabilities. Gelt Financial scheduled $20,340,725 in assets and $17,050,558 in liabilities. GELT PROPERTIES: Files Amended Schedules of Assets & Liabilities ---------------------------------------------------------------- Gelt Properties LLC filed with the Bankruptcy Court for the Eastern District of Pennsylvania its amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $4,352,521 B. Personal Property $374,569 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $3,076,732 E. Creditors Holding Unsecured Priority Claims $410 F. Creditors Holding Unsecured Non-priority Claims $1,765,650 ----------- ----------- TOTAL $4,727,090 $4,842,792 Its affiliate, Gelt Financial Corporation, has filed its schedules disclosing $20,340,725 in assets and $17,050,558 in liabilities as of the Chapter 11 filing. 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. The petitions were signed by Uri Shoham, the Debtors' chief financial officer. The Official Unsecured Creditors' Committee appointed in the case has tapped Schoff McCabe, P.C. as its counsel. HARRISBURG PA: Chapter 9 Case Summary & Creditors List ------------------------------------------------------ Debtor: City of Harrisburg, PA City Council for City of Harrisburg 101 North Second St. Suite 1, Lower Level Harrisburg, PA Bankruptcy Case No.: 11-06938 Chapter 9 Petition Date: October 11, 2011 Court: U.S. Bankruptcy Court Middle District of Pennsylvania (Harrisburg) Debtor's Counsel: Mark D. Schwartz, Esq. David A. Gradwohl, Esq. P.O. Box 330 Bryn Mawr, PA 19010-0330 Tel: (610) 525-5534 E-mail: MarkSchwartz6814@gmail.com Estimated Assets: $100 million to $500 million Estimated Debts: $100 million to $500 million The petition was signed by Susan Wilson, city council member - Budget & Finance chair. Debtor's List of Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Ambac (Insurer) General Obligation $31,642,634 One State Street Plaza Bonds Ser D of 1997 New York, NY 10004 Ambac (Insurer) General Obligation $39,175,372 One State Street Plaza Notes Ser F of 1997 New York, NY 10004 Commonwealth of PA General Obligation $28,870 PennDOT - Pennsylvania Notes Ser A of 2003 Infrastructure Bank Commonwealth of PA General Obligation $78,257 PennDOT - Pennsylvania Notes Ser B of 2003 Infrastructure Bank Commonwealth of PA General Obligation $28,756 PennDOT - Pennsylvania Notes Ser C of 2003 Infrastructure Bank Commerce Bank Proceeds and debt $3,216,146 3801 Paxton St service Harrisburg, PA Commonwealth of PA General Obligation $1,778,840 PennDOT - Pennsylvania Note Infrastructure Bank Harrisburg, PA 17105 Suntrust Bank Capital Lease $3,380,871 PO Box 79194 Baltimore, MD 21279 Bank of New York The Harrisburg $11,205,000 Corporate Trust & Billing Authority Dept. Guaranteed RRF New Wark, NJ 07195 Refunding Bonds M&T Bank Guaranteed Federally $14,870,000 Taxable RRF Subordinated Variable Rate Revenue Notes TD Bank Guaranteed RRF $22,555,000 Subordinated Revenue and Refunding Revenue Bonds Series A of 2003 TD Bank Guaranteed Federally $29,085,000 Taxable RRF Subordinated Variable Rate Revenue Notes Series B of 2003 TD Bank Guaranteed Federally $24,285,000 Taxable RRF Subordinated Variable Rate Revenue Notes Series C of 2003 TD Bank Guaranteed RRF $96,480,000 Revenue Bond Series D-1 and D-2 of 2003 TD Bank Guaranteed Federally $13,110,000 Taxable RRF Subordinated Variable Rate Revenue Notes Series E of 2003 TD Bank Guaranteed Federally $12,680,000 Taxable RRF Subordinated Variable Rate Revenue Notes Series F of 2003 TD Bank Guaranteed RRF $20,951,574 Limited Obligation Notes Series C of 2007 TD Bank Guaranteed RRF $9,033,234 Limited Obligation Notes Series D of 2007 Covanta Holding Corp. Advance from Covanta $23,587,500 445 S St. to THA Morristown, NJ 07960 Covanta Holding Corp. Guaranteed Parking $11,800,000 445 S St. Revenue bonds Series Morristown, NJ 07960 K of 2000 Covanta Holding Corp. Guaranteed Parking $26,940,000 445 S St. Revenue bonds Series Morristown, NJ 07960 J of 2001 Covanta Holding Corp. Guaranteed Parking $3,470,000 445 S St. Revenue bonds Series Morristown, NJ 07960 N of 2003 Covanta Holding Corp. Guaranteed Parking $7,865,000 445 S St. Revenue bonds Series Morristown, NJ 07960 O of 2003 Covanta Holding Corp. Guaranteed Parking $16,510,000 445 S St. Revenue bonds Series Morristown, NJ 07960 P of 2005 Covanta Holding Corp. Guaranteed Parking $16,270,000 445 S St. Revenue bonds Series Morristown, NJ 07960 R of 2007 Covanta Holding Corp. Guaranteed Parking $17,980,000 445 S St. Revenue bonds Series Morristown, NJ 07960 T of 2007 HARTFORD FINANCIAL: Fitch Affirms 'BB' Rating on Preferred Stock ---------------------------------------------------------------- Fitch Ratings has affirmed all Issuer Default Ratings (IDRs), debt and Insurer Financial Strength (IFS) ratings for the Hartford Financial Services Group, Inc. (HFSG) and its primary life and property/casualty insurance subsidiaries. The Rating Outlook is Stable. Fitch's rationale for the affirmation of HFSG's ratings reflects the company's reasonable financial leverage, continued favorable underwriting performance of the property/casualty group, and sizable levels of holding company cash and financial resources. The ratings also reflect HFSG's lower level of 2011 investment related impairments and exposure to credit and investment risks, particularly in its life asset portfolio where its above-average exposure to commercial real estate-related investments is declining. Hartford Life has execution risk associated with its strategy to expand certain businesses such as retirement plan assets and to leverage its distribution and brand name in protection-related businesses such as life and group benefits business lines. The life insurance operation also faces ongoing challenges related to its large book of in-force variable annuities (VA) with benefit guarantees in the U.S. and Japan. Fitch views favorably Hartford's enhanced level of hedging of its closed block of Japan VA business with income and death benefit guarantees. HFSG improved its gross unrealized investment loss position in the first eight months of 2011 to $2.6 billion at Aug. 31, 2011, compared with $3.5 billion at Dec. 31, 2010. This is down considerably from a gross unrealized loss position of $7.1 billion at year-end 2009. The net unrealized investment position was a gain of $2.1 billion at Aug. 31, 2011, which is improved from net unrealized losses of $0.6 billion at year-end 2010. Favorably, HFSG has reduced its investment risk, repositioning its investment portfolio to securities with more favorable risk profiles, including high-quality corporate holdings, and reducing its exposure to real estate related securities, financial companies and high yields. Longer term, the company expects to further reduce its exposure to structured assets in CMBS/CDOs and asset-backed securities (ABS), increase portfolio credit quality, and reduce overall portfolio leverage. Fitch views the risk for future investment losses to be fully reflected within the current ratings. Fitch views favorably the improvement in life insurance profitability and stability demonstrated in 2010, but believes that intermediate-term growth in earnings will be challenged by lower margins and increased hedging costs in its competitive annuity and life insurance businesses and continued elevated loss ratios in the group benefits operation. The ratings for Hartford Life's operations reflect an adequate U.S. consolidated statutory capital position. While capital generation is expected to remain flat through 2012, Fitch expects consolidated U.S. life insurance to remain above the company's 325% RBC targets for its life operations and 125% for its captive operations. HFSG's capital position improved in the first six months of 2011, with GAAP shareholders' equity of $21.7 billion at June 30, 2011, up from $20.3 billion at Dec. 31, 2010. HFSG's debt plus preferred equity-to-total capital ratio (including accumulated other comprehensive income [AOCI]) remains reasonable, at 25.3% at June 30, 2011 and 26.6% at Dec. 31, 2010. HFSG's GAAP operating earnings interest and preferred dividend coverage improved to 5.7 times (x) in 2010 from 1.3x in 2009, and Fitch expects the company to maintain coverage of at least 5.0x. HFSG maintains financial flexibility with approximately $2.1 billion in holding company cash, fixed maturities, and short-term investments at Aug. 31, 2011, which provides flexibility for funding potential capital requirements in adverse markets. In addition, the company has a $1.9 billion revolving credit facility and a $500 million contingent capital facility. HFSG also has a $2 billion commercial paper program, but the company does not expect to access this market in the near term. The key rating triggers that could result in an upgrade include strong and stable operating earnings in line with higher rated peers and industry averages; Fitch's determination that investment and VA risk will not cause a material level of volatility relative to current capital; overall flat-to-favorable loss reserve development; continued improvement in the quality and liquidity of the investment portfolio; equity credit-adjusted debt-to-total capital maintained below 25%; and reduced volatility of insurance subsidiary capitalization. Furthermore, to the extent that favorable trends continue, Fitch would most likely consider a positive rating action on HFSG's IDR and debt ratings before the company's IFS ratings to reflect a narrowing of notching between holding company ratings and insurance company ratings. The key rating triggers that could result in a downgrade include significant investment or operating losses, including those from the VA business line, that affect GAAP shareholders' equity by 20% or more, or materially affect capital within the insurance subsidiaries; failure to maintain its disciplined property/casualty underwriting approach in the competitive market and soft rate environment; and equity credit-adjusted debt-to- total capital maintained above 30%. The ratings of the property/casualty subsidiaries could also be negatively affected to the extent they are needed to fund potential capital needs of the life operations. The life insurance subsidiary could be negatively affected by a failure to demonstrate reasonable stability in its GAAP and statutory financial results and effective risk mitigation in its hedging program. Fitch affirms the following ratings with a Stable Outlook: Hartford Financial Services Group, Inc. -- Long-term IDR at 'BBB'; -- $400 million 5.25% notes due 2011 at 'BBB-'; -- $320 million 4.625% notes due 2013 at 'BBB-'; -- $199 million 4.75% notes due 2014 at 'BBB-'; -- $300 million 4.0% senior notes due 2015 at 'BBB-'; -- $200 million 7.3% notes due 2015 at 'BBB-'; -- $300 million 5.5% notes due 2016 at 'BBB-'; -- $499 million 5.375% notes due 2017 at 'BBB-'; -- $500 million 6.3% notes due 2018 at 'BBB-'; -- $499 million 6% notes due 2019 at 'BBB-'; -- $500 million 5.5% senior notes due 2020 at 'BBB-'; -- $298 million 5.95% notes due 2036 at 'BBB-'; -- $300 million 6.625% senior notes due 2040 at 'BBB-'; -- $323 million 6.1% notes due 2041 at 'BBB-'; -- $500 million 8.125% junior subordinated debentures due 2068 at 'BB'; -- $1.75 billion 10% junior subordinated debentures due 2068 at 'BB'; -- $556 million 7.25% mandatory convertible preferred stock, series F at 'BB'. -- Short-term IDR at 'F2'; -- Commercial paper at 'F2'. Hartford Life, Inc. -- Long-term IDR at 'BBB'; -- $149 million 7.65% notes due 2027 at 'BBB-'; -- $92 million 7.375% notes due 2031 at 'BBB-'; -- Short-term IDR at 'F2'. Hartford Life Global Funding -- Secured notes program at 'A-'. Hartford Life Institutional Funding -- Secured notes program at 'A-'. Hartford Life and Accident Insurance Company -- IFS at 'A-'. Hartford Life Insurance Company -- IFS at 'A-'; -- Medium-term note program at 'BBB+'. Hartford Life and Annuity Insurance Company -- IFS at 'A-'. Members of the Hartford Fire Insurance Intercompany Pool: Hartford Fire Insurance Company Nutmeg Insurance Company Hartford Accident & Indemnity Company Hartford Casualty Insurance Company Twin City Fire Insurance Company Pacific Insurance Company, Limited Property and Casualty Insurance Company of Hartford Sentinel Insurance Company, Ltd. Hartford Insurance Company of Illinois Hartford Insurance Company of the Midwest Hartford Underwriters Insurance Company Hartford Insurance Company of the Southeast Hartford Lloyd's Insurance Company Trumbull Insurance Company -- IFS at 'A+'. HORIZON VILLAGE: Can Access Cash Collateral on Final Basis ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada has entered a final cash collateral order authorizing Horizon Village Square LLC, to use cash collateral and disputed collateral on a final basis, as provided for in the stipulation with Wells Fargo Bank, N.A., and the budget attached thereto. Wells Fargo is granted a Replacement Lien in all of Debtor's now- owned or after-acquired real and personal property of all types, including, debtor-in-possession bank accounts, and all replacements, supporting obligations, offspring, products, and proceeds of the existing collateral and the replacement collateral to the same extent and priority as Lender's pre-petition security interest and liens. As reported in the TCR on Sept. 22, 2011, Horizon Village asked the Bankruptcy Court to approve a stipulation entered with Wells Fargo, as successor by merger to Wachovia Bank, N.A., authorizing it to access the cash collateral and disputed cash collateral. As of the Petition Date, the Debtor's obligation outstanding under the note was $11.06 million on account of principal and contract interest. The Debtor will use the disputed cash collateral and cash collateral to finance its operations. The lender consented to Debtor's use of cash collateral and disputed cash collateral on the terms and conditions set forth in the stipulation which provides for, among other things: -- the stipulation will be effective upon entry of an order of the Bankruptcy Court approving the stipulation; -- the Debtor's use of the fund will terminate at a date that is the first to occur of: (i) five calendar days following notice to Debtor that an Event of Default has occurred and is otherwise continuing or otherwise unresolved for which notice is required to be given; (ii) an event of default has occurred for which no notice is required to be given; or (iii) the effective date of a confirmed plan of reorganization; -- the Debtor will timely file all monthly operating reports and provide copies to the lender and its counsel at the time the reports are filed; -- as adequate protection of the lender's interests, the Debtor will pay the sum of $18,500 per month to the lender; -- the Debtor will grant the lender replacement lien in all of Debtor's now-owned or after-acquired real and personal property; and -- all types all cash collateral and disputed cash collateral will be subject to a carve out for the payment of all allowed and unpaid professional fees and disbursements of the Debtor incurred from the Petition Date until the termination date. A copy of the stipulation is available for free at: http://bankrupt.com/misc/horizon.stipulation.doc51.pdf About Horizon Village Square et al. Four related Las Vegas, Nevada-based entities sought Chapter 11 bankruptcy protection on July 13, 2011. The businesses are owned or managed by local business people and firms, including Todd Nigro, Nigro Development LLC, a Nigro family trust and other investors. Horizon Village Square LLC (Bankr. D. Nev. Case No. 11-21034) owns the Vons-anchored Horizon Village Square Shopping Center near I-515 and Horizon Drive in Henderson. The property includes five retail buildings with nearly 43,000 square feet of space. Ten Saints LLC (Bankr. D. Nev. Case No. 11-21028) owns the 134- room Hampton Inn & Suites at St. Rose Parkway and Seven Hills Drive in Henderson. Beltway One Development Group LLC (Bankr. D. Nev. Case No. 11- 21026) owns the Desert Canyon Business Park at Russell Road and the Las Vegas Beltway. It has two buildings and 15 acres. Nigro HQ LLC (Bankr. D. Nev. Case No. 11-21014) owns an office building at 9115 W. Russell Road occupied by Bank of George, Infinity Plus LLC and Nigro Construction Inc. Todd Nigro said the four bankruptcies were caused by threatened foreclosures -- typically related to Wells Fargo Bank demanding payments to keep loan-to-value ratios at specified levels. Judge Mike K. Nakagawa presides over the cases. Lawyers at Gordon Silver serve as the Debtors' bankruptcy counsel. The bankruptcy petitions estimated assets and debts from $1 million to $10 million each for Nigro HQ; and from $10 million to $50 million in both assets and debts for Horizon Village, Ten Saints and Beltway One. A fifth related business, Russell Boulder LLC, filed for bankruptcy (Bankr. D. Nev. Case No. 10-29724) on Oct. 19, 2010. It owns the 600-suite Siena Suites extended stay property at Boulder Highway and Russell Road. Edward M. Zachary, Esq., at Bryan Cave LLP, in Bryan Cave LLP, in Phoenix, Ariz., and Robert M. Charles, Jr., Esq., at Lewis and Roca LLP, in Los Vegas, Nev., represent Wells Fargo Bank, N.A., as counsel. HOTEL AIRPORT: Employs RS & Associates as External Auditor ---------------------------------------------------------- Hotel Airport, Inc., sought and obtained authority to employ: RS & ASSOC.-PSC 30 I Condominio EI Centro II 500 Munoz Rivera A venue San Juan PR 00917 Tel: (787) 296-0389 Fax: (787) 296-0390 E-mail: msantiago@rsa-cpa.com as external auditors to perform auditing services. The Debtor will pay based on the Firm's $125 hourly rate for partners; $110 for director, $90 for managers, and $75 for other staff members. The Debtor will also reimburse the Firm's necessary out-of-pocket expenses. Francisco A. Fernandez, a partner at the Firm assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Hotel Airport Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011. Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo Munoz, PSC, serves as bankruptcy counsel. The Debtor disclosed US$8,547,993 in assets and US$171,169,392 in liabilities as of the Chapter 11 filing. The petition was signed by David Tirri, its president. HOWREY LLP: Diamond Named as Ch.11 Trustee; Creditors' Atty. Quits ------------------------------------------------------------------ Law.com, citing report from Petra Paternak of the Record, says the Department of Justice has selected Allan Diamond, the Houston- based managing partner of litigation boutique Diamond McCarthy, as trustee of Howrey LLP's Chapter 11 bankruptcy. The report says Mr. Diamond will be in charge of the administration of the bankruptcy. According to the report, acting U.S. Trustee August Landis said that Mr. Diamond was selected with the help of 16 attorneys, including Thomas Willoughby, the Sacramento attorney for the unsecured creditors committee; East Coast counsel for Citibank, Kelley Cornish; and S.F. attorneys Christopher Sullivan, representing creditors Advanced Discovery and other companies, and William McGrane, representing Matura Farrington Staffing Services Inc. The report says Mr. Diamond's appointment as Howrey's bankruptcy trustee awaits Judge Dennis Montali's approval. The report, citing papers filed with the Court, relates Mr. Diamond said his hourly rate is $675, and that his firm's rates range from $350 to $675 per hour for partners and senior counsel, and $210 to $250 hourly for associates. Mr. Diamond disclosed that his firm was handling litigation and contested bankruptcy matters in which several law firms are opposing counsel, including Arnold & Porter, Dewey & LeBoeuf, Jones Day and Winston & Strawn. The report adds Citibank, Howrey's largest creditor, asked Judge Montali last month to appoint a trustee to oversee the bankruptcy, the same day attorneys for the Howrey estate had asked to extend the deadline for submitting a final wind-down plan from Oct. 4 to Feb. 1. The proposed case trustee may be reached at: Allan B. Diamond, Esq. DIAMOND McCARTHY LLP Tel: (713) 333-5104 E-mail: adiamond@diamondmccarthy.com Law.com also relates that Thomas Willoughby, Esq. -- twilloughby@ffwplaw.com -- a partner at Felderstein Fitzgerald Willoughby & Pascuzzi, has asked to pull out of the case. According to the report, Mr. Willoughby asked U.S. Bankruptcy Judge Montali to approve the firm's withdrawal as soon as the committee has selected a firm to replace it. Mr. Willoughby said in the filing the committee has "knowingly and freely assented to termination" of the firm's employment. He offered no reason and didn't return repeated messages requesting comment. About Howrey LLP Three creditors filed an involuntary Chapter 7 petition (Bankr. N.D. Calif. Case No. 11-31376) on April 11, 2011, against the remnants of the Washington-based law firm Howrey LLP. The filing was in San Francisco, where the firm had an office. The firm previously was known as Howrey & Simon and Howrey Simon Arnold & White LLP. The firm at one time had more than 700 lawyers in 17 offices. The partners voted to dissolve in March. The firm specialized in antitrust and intellectual-property matters. The three creditors filing the involuntary petition together have $36,600 in claims, according to their petition. The involuntary chapter 7 petition was converted to a chapter 11 case in June 2011 at the request of the firm. In its schedules filed in July, the Debtor disclosed assets of $138.7 million and liabilities of $107.0 million. Representing Citibank, the firm's largest creditor, is Kelley Cornish, Esq. -- kcornish@paulweiss.com -- a partner at Paul, Weiss, Rifkind, Wharton & Garrison. Representing Howrey is H. Jason Gold, Esq. -- jgold@wileyrein.com -- a partner at Wiley Rein. HOWREY LLP: Allan Diamond Named as Chapter 11 Trustee ----------------------------------------------------- Roxanne Palmer at Bankruptcy Law360 reports that the acting U.S. trustee in Howrey LLP's bankruptcy case on Friday selected Houston attorney Allan Diamond to serve as the fallen law firm's Chapter 11 trustee. According to Law360, trustee August B. Landis asked the California bankruptcy court to approve Mr. Diamond, a managing partner at Diamond McCarthy LLP. The trustee said he had conferred with attorneys for Howrey and numerous creditors ? including Citibank NA, Oracle America Inc. and the committee of unsecured creditors ? in selecting Mr. Diamond to helm the bankruptcy proceedings. About Howrey LLP Three creditors filed an involuntary Chapter 7 petition (Bankr. N.D. Calif. Case No. 11-31376) on April 11, 2011, against the remnants of the Washington-based law firm Howrey LLP. The filing was in San Francisco, where the firm had an office. The firm previously was known as Howrey & Simon and Howrey Simon Arnold & White LLP. The firm at one time had more than 700 lawyers in 17 offices. The partners voted to dissolve in March. The firm specialized in antitrust and intellectual-property matters. The three creditors filing the involuntary petition together have $36,600 in claims, according to their petition. The involuntary chapter 7 petition was converted to a chapter 11 case in June at the request of the firm. In its schedules filed in July, the Debtor disclosed assets of $138.7 million and liabilities of $107.0 million. Representing Citibank, the firm's largest creditor, is Kelley Cornish, Esq. -- kcornish@paulweiss.com -- a partner at Paul, Weiss, Rifkind, Wharton & Garrison. Representing Howrey is H. Jason Gold, Esq. -- jgold@wileyrein.com -- a partner at Wiley Rein. INNKEEPERS USA: Trial Over Dead $1B Deal Delayed as Talks Continue ------------------------------------------------------------------ Hilary Russ at Bankruptcy Law360 reports that the trial over Innkeepers USA Trust's scuttled $1.12 billion property deal was postponed for a second day Tuesday in New York bankruptcy court after the company and the private equity fund it sued apparently continued negotiating a settlement agreement. Innkeepers had confirmed Monday ? which was to have been the first day of trial with defendants Chatham Lodging Trust and a unit of Cerberus Capital Management LP ? that the company was in settlement talks, according to a statement from Innkeepers Chief Restructuring Officer Marc Beilinson. 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 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). 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. The lawsuit is INNKEEPERS USA TRUST, et al., v. CERBERUS SERIES FOUR HOLDINGS, LLC, CHATHAM LODGING TRUST, INK ACQUISITION LLC, AND INK ACQUISITION II LLC, Adv. Proc. No. Case No. 11-02557 (Bankr. S.D.N.Y.). Attorneys for Cerberus are Alan R. Glickman, Esq., Howard O. Godnick, Esq., Adam C. Harris, Esq., and Michael E. Swartz, Esq., at Schulte Roth & Zabel LLP, in New York, serve as counsel. Attorneys at Wachtell, Lipton, Rosen & Katz, serve as counsel to Chatham. The Wall Street Journal's Mike Spector and Eliot Brown reported in September 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 the 64 remaining hotels in a possible deal valued at more than $1 billion. 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. INNKEEPERS USA: Solar Finance DIP Facility Matured on Oct. 11 ------------------------------------------------------------- Innkeepers USA Trust, et al., have filed a Fourth Amendment to Senior Secured Super Priority Debtor-in-Possession Loan Agreement and Other Loan Documents, dated and made effective as of Oct. 3, 2011, between affiliates of Innkeepers USA Trust, known as the Floating Rate Debtors, as Borrower, and Solar Finance Inc., as Lender, which amends that certain debtor-in-possession credit agreement between Solar and the Floating Rate Debtors, to extend the "Maturity Date" of the Solar DIP Facility by eight days from Oct. 3, 2011, to Oct. 11, 2011. As reported in the TCR on Sept. 8, 2010, Judge Shelley Chapman authorized, on a final basis, Innkeepers USA Trust's affiliates, known as the Floating Rate Debtors, to obtain $17,498,095 in secured postpetition financing on a superpriority basis on the terms and subject to the conditions set forth in the Senior Secured Super Priority Debtor-in-Possession Loan Agreement among the Floating Rate Debtors and Solar Finance Inc. The Borrowers in this DIP Financing Agreement are these Floating Rate Debtors: * KPA/GP Valencia LLC; * Grand Prix West Palm Beach LLC; * KPA/GP Ft. Walton Beach LLC; * Grand Prix Ft. Wayne LLC; * Grand Prix Indianapolis LLC; * KPA/GP Louisville (HI) LLC; * Grand Prix Bulfinch LLC; * Grand Prix Woburn LLC; * Grand Prix Rockville LLC; * Grand Prix East Lansing LLC; * Grand Prix Grand Rapids LLC; * Grand Prix Troy (Central) LLC; * Grand Prix Troy (SE) LLC; * Grand Prix Atlantic City LLC; * Grand Prix Montvale LLC; * Grand Prix Morristown LLC; * Grand Prix Albany LLC; * Grand Prix Addison (SS) LLC; * Grand Prix Harrisburg LLC; and * Grand Prix Ontario LLC. The Court ruled that the Floating Rate Collateral and the Floating Rate DIP Lender will not be subject to any carve-out for professional fees and expenses or otherwise, nor will they be subject to surcharge, pursuant to Sections 105 or 506(c) of the Bankruptcy Code, by the Floating Rate Debtors or any other party- in-interest without the prior written consent of the Floating Rate DIP Lender. Neither the Floating Rate DIP Lender nor the Floating Rate Collateral will be subject to the equitable doctrine of "marshaling" or any similar doctrine with respect to the Floating Rate Collateral. The Floating Rate DIP Lender will not be subject to any "equities of the case" claims under Section 552(b) of the Bankruptcy Code with respect to the Floating Rate DIP Facility. A full-text copy of the Final DIP Order is available for free at http://bankrupt.com/misc/IKU_FOrder_SolarDIP_09012010.pdf The DIP Financing matures in 360 days from the Closing Date. The DIP Facility will automatically become due and payable upon: -- the acceleration of the DIP Facility due to the occurrence and continuation of an Event of Default; -- the effective date of any plan in the bankruptcy proceeding that provides for payment in full of all obligations owing under the DIP Facility; -- the closing date of any sale of all or substantially all of any Borrower's assets that constitute collateral; -- the entry of an order by the Court granting relief from the automatic stay permitting foreclosure of any assets of any Borrower constituting collateral in excess of $1,000,000 in the aggregate; -- the entry of an order of dismissal or conversion of the Chapter 11 cases with respect to the Borrowers; or -- the acceleration of the obligations under any other debtor-in-possession financing of the Debtors. Proceeds of the DIP Facility will be used solely for (i) payment of the financing fees owed to the DIP Lenders, (ii) to fund postpetition PIP Work, and (iii) to fund certain fire safety improvements to hotel properties. The Non-Default Interest Rate is a monthly interest payments accruing at a per annum floating rate equal to the sum of 30-day LIBOR, subject to a floor of 2%, plus 5%. The Default Interest Rate is a rate of 3% per annum in excess of the Non-Default rate. The liens under the DIP Facility will be first priority, senior secured and priming liens on and security interests in (i) all of the Borrowers' real property and its proceeds that secure the prepetition obligations, (ii) the Controlled Disbursement Account, and (iii) all Chapter 5 causes of action that relate to the hotel properties owned by the Borrowers. 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 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). 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. Attorneys for Cerberus are Alan R. Glickman, Esq., Howard O. Godnick, Esq., Adam C. Harris, Esq., and Michael E. Swartz, Esq., at Schulte Roth & Zabel LLP, in New York, serve as counsel. Attorneys at Wachtell, Lipton, Rosen & Katz, serve as counsel to Chatham. 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. INNKEEPERS USA: Five Mile DIP Facility Matured on Oct. 11 --------------------------------------------------------- Innkeepers USA Trust, et al., have filed a Third Amendment to Senior Secured Super Priority Debtor-in-Possession Credit Agreement, dated and made effective as of Oct. 3, 2011, between certain Borrower Debtors and Five Mile Capital II Pooling International LLC, as Lead DIP Lender and Administrative Agent, which amends that certain debtor-in-possession credit agreement (the "Five Mile DIP Credit Agreement," and the related facility, the "Five Mile DIP Facility") between Five Mile and the Borrower Debtors, to extend the "Maturity Date" of the Five Mile DIP Facility by eight days from Oct. 3, 2011, to Oct. 11, 2011. As reported in the TCR on Sept. 8, 2010, the U.S. Bankruptcy Court authorized Innkeepers USA Trust and its units, on a final basis, to enter into the Senior Secured Super-Priority Debtor-in- Possession Credit Agreement dated as of Sept. 1, 2010, among certain Debtor-Borrowers and Five Mile Capital II Pooling International LLC and other lenders. The DIP Facility provides the Debtors with postpetition senior secured super-priority credit in an aggregate amount of $53,000,000, to be allocated among the Borrowers on the terms set forth in the DIP Credit Agreement. Judge Chapman ruled that no costs or expenses of administration, including professional fees allowed and payable under Sections 330 and 331 of the Bankruptcy Code and no priority claims to the Collateral are, or will be, prior to or on a parity with the Secured Obligations or the Superpriority Claim. The automatic stay imposed under Section 362(a)(4) of the Bankruptcy Code is lifted, as necessary, to permit (i) the Borrowers to grant the DIP Liens and to perform the Borrowers' liabilities and obligations to the DIP Agent and the DIP Lenders under the DIP Facility, and (ii) the delivery by the DIP Agent of an Enforcement Notice and the exercise of remedies by the DIP Agent and the DIP Lenders upon the Termination Date or the occurrence of an Event of Default. A full-text copy of the Final DIP Order can be obtained for free at http://bankrupt.com/misc/IKU_FOrder_FiveMileDIP_09012010.pdf 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 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). 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. Attorneys for Cerberus are Alan R. Glickman, Esq., Howard O. Godnick, Esq., Adam C. Harris, Esq., and Michael E. Swartz, Esq., at Schulte Roth & Zabel LLP, in New York, serve as counsel. Attorneys at Wachtell, Lipton, Rosen & Katz, serve as counsel to Chatham. 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. LOS ANGELES DODGERS: Disagrees With Committee at Length on TV Sale ------------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Los Angeles Dodgers and the commissioner of Major League Baseball between them filed more than 130 pages of papers Oct. 11 further detailing arguments they previously made about why the team can or can't auction television broadcasting rights beginning with the 2014 season. The team and Commissioner Bud Selig did reach common ground on one issue. At the urging of the mediator, Mr. Selig withdrew his motion to disqualify the two law firms representing the Dodgers. The commissioner alleged that the firms were working in the interests of Frank McCourt, the club's owner, and not the best interests of the team. Under the terms of the agreement dropping the disqualification motion, Mr. Selig can't try to force the firms out again. The Dodgers on Oct. 11 attempted to rebut the commissioner's argument that Mr. McCourt took $180 million out of the team to fund a "lavish lifestyle." While the papers say there was no misappropriation, drawing conclusions is difficult because many of the underlying facts are blacked out. The team said it's solvent and that a sale of telecasting rights will allow for confirmation of a Chapter 11 plan paying creditors in full. The commissioner said no reorganization plan can be confirmed and no sale approved. Mr. Selig contended that a "substantial portion" of proceeds from the sale wouldn't go to the Dodgers. Rather, he said, they would be used to satisfy Mr. McCourt's "personal obligations." In addition, Mr. Selig said the sale would entail an "excessive upfront payment," having the effect of "mortgaging the Dodgers' future" and decreasing the value of the team if it were sold. Given his objections, the commissioner said he won't approve a sale of media rights. Should the team proceed with a TV-rights sale, the franchise could be terminated, Mr. Selig said. The "only path to emergence from bankruptcy is a sale of the club, which will benefit everyone," Mr. Selig said. The bankruptcy judge scheduled a trial to begin Oct. 31 over whether TV rights can be sold. The judge will also decide whether the commissioner can file a reorganization plan to sell the team out from under Mr. McCourt. About Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. In its schedules, the LA Dodgers baseball club listed $77,963,734 in assets and $4,695,702 in liabilities. LA Real Estate LLC listed $161,761,883 in assets and $0 in liabilities. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Public relations specialist Kekst and Company has been hired for crisis support. Covington & Burling LLP serves as special counsel. An official committee of unsecured creditors has been appointed in the case. The panel has tapped Lazard Freres & Co. as financial adviser and investment banker, and Morrison & Foerster LLP and Pinckney, Harris & Weidinger, LLC as counsel. Ticket holders are seeking the appointment of their own committee. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection, according to The Wall Street Journal. The reorganization is being financed with a $150 million unsecured loan from the Commissioner of Major League Baseball. The loan gives the Commissioner few of the controls lenders often demanded from bankrupt companies. LOS ANGELES DODGERS: Trades Blows With MLB in Fight Over Control ---------------------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that the Los Angeles Dodgers LLC and Major League Baseball drew battle lines Tuesday in their feud over control of the franchise, with MLB blasting the team's proposed auction of television rights and the Dodgers opposing the league's bid to force a sale of the team. Law360 says the objections come in advance of a critical hearing in Delaware bankruptcy court, set to begin Oct. 31, that will decide the team's course out of bankruptcy. About Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. In its schedules, the LA Dodgers baseball club listed $77,963,734 in assets and $4,695,702 in liabilities. LA Real Estate LLC listed $161,761,883 in assets and $0 in liabilities. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Public relations specialist Kekst and Company has been hired for crisis support. Covington & Burling LLP serves as special counsel. An official committee of unsecured creditors has been appointed in the case. The panel has tapped Lazard Freres & Co. as financial adviser and investment banker, and Morrison & Foerster LLP and Pinckney, Harris & Weidinger, LLC as counsel. Ticket holders are seeking the appointment of their own committee. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection, according to The Wall Street Journal. The reorganization is being financed with a $150 million unsecured loan from the Commissioner of Major League Baseball. The loan gives the Commissioner few of the controls lenders often demanded from bankrupt companies. LOS ANGELES DODGERS: Says MLB Should Drop Opposition to Dewey ------------------------------------------------------------- The Los Angeles Dodgers said in a statement that MLB's withdrawal of its motion to disqualify Dewey & LeBoeuf LLP and Young Conaway Stargatt & Taylor LLP as attorneys for the Dodgers as debtor in these bankruptcy proceedings is appropriate. "It ends an unnecessary attempt by MLB to divert the focus in these bankruptcy proceedings from maximizing the value of the debtor's estate," the Dodgers said. "The Dodgers look forward to working with Dewey & LeBoeuf and Young Conaway in its effort to reorganize successfully under chapter 11 in a manner which serves the best interests of all its stakeholders." About Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. In its schedules, the LA Dodgers baseball club listed $77,963,734 in assets and $4,695,702 in liabilities. LA Real Estate LLC listed $161,761,883 in assets and $0 in liabilities. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Public relations specialist Kekst and Company has been hired for crisis support. Covington & Burling LLP serves as special counsel. An official committee of unsecured creditors has been appointed in the case. The panel has tapped Lazard Freres & Co. as financial adviser and investment banker, and Morrison & Foerster LLP and Pinckney, Harris & Weidinger, LLC as counsel. Ticket holders are seeking the appointment of their own committee. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection, according to The Wall Street Journal. The reorganization is being financed with a $150 million unsecured loan from the Commissioner of Major League Baseball. The loan gives the Commissioner few of the controls lenders often demanded from bankrupt companies. MADISON 92ND: Asks Court's Permission to Use GE's Cash Collateral ----------------------------------------------------------------- Madison 92nd Street Associates, LLC, asks the U.S. Bankruptcy Court for the Southern District of New York for authorization to use cash collateral of General Electric Capital Corporation, pursuant to the proposed stipulation among the Debtor, GE and Courtyard Management Corporation. Courtyard, a subsidiary of Marriott International, Inc., operates the hotel, pursuant to a written management agreement. The Debtor's authorization to use cash collateral will terminate on the date of the final hearing, unless earlier terminated because of the occurrence of an event of default. The date of the final hearing has not been set. As noted in the petition, GE holds a mortgage on the Debtor's real property located at 410 East 92nd Street, New York, N.Y., improved by a hotel containing 226 rooms, known as "Upper East Side Courtyard by Marriott". As noted in the petition, the mortgage fell into default. GE ultimately obtained a consensual judgment of foreclosure, in the amount of $74,007,716 and noticed a foreclosure sale of the hotel for Aug. 24, 2011, which was stayed as a result of the Chapter 11 filing. The Debtor expressly reserves all of its rights against Courtyard and it is anticipated that a motion to reject the management agreement with Courtyard will be filed in the upcoming weeks. In the near term, the parties are in agreement that the status quo should be maintained, so that there is a continuing flow of funds to pay both operating expenses and debt service to GE while the larger issues are addressed at a later date. Thus, the parties have agreed for a combination of the management, payment and sweep procedures historically utilized to operate the hotel. All receipts will continue to be collected by Courtyard, which will continue to pay vendor bills and operating expenses in the normal course of business pursuant to a budget and then remit the net operating income to the Debtor, primarily for payment to GE as adequate protection. GE will be granted a post-petition replacement lien and security interest in the Debtor's post-petition property with the exception of all avoidance claims and any recovery in the state court litigation involving Courtyard. GE is to be granted a first priority replacement lien in all of the Debtor's property pursuant to Section 364(c)(2), together with a junior lien on all property other than Chapter 5 litigation claims, and a superpriority administrative claim with priority over all claims specified in Sections 503(b) and 507(b). The GE lines are subject to a carve out of up to $250,000 aggregate for professional fees and U.S. Trustee quarterly fees, with $100,000 of the carve out reserve for the examiner previously appointed by order of the Bankruptcy Court. 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., and William M. Goldman, Esq., at DLA Piper LLP (US). The Bankruptcy Judge appointed an examiner to explore the best route to reorganization for the Debtor amid a rift between two investor groups. MANHATTAN WEST: Piranha Nightclub Files for Chapter 11 ------------------------------------------------------ Steve Green at Vegas Inc. reports that Manhattan West LLC, owner of two Paradise Road nightclubs in Las Vegas, filed for Chapter 11 bankruptcy reorganization on Oct. 10, 2011 According to the report, the bankruptcy filing was signed by company CEO Paul San Filipo and listed assets of $50,000 against liabilities of $2.277 million. The main creditor, owed $2.2 million, is Jerry Masini of Las Vegas, though the nature of his claim wasn't disclosed in the initial bankruptcy filing. Manhattan West does business as Piranha Nightclub and 8-1/2 Ultra Lounge and as Gypsy Nightclub at 4633 and 4605 Paradise Road, south of Harmon Avenue. MARCO POLO: Court Authorizes Bracewell & Giuliani as Counsel ------------------------------------------------------------ Marco Polo Seatrade B.V., has been authorized by the U.S. Bankruptcy Court for the Southern District of New York to employ Bracewell & Giuliani LLP 1251 Avenue of the Americas 49th Floor New York, New York 10020-1104 Tel: (212) 508-6100 Fax: (212) 508-6101 as counsel nunc pro tunc to the Petition Date. The fee ranges for the firm's attorneys and paralegals that may be designated to represent the Debtors and their current standard hourly rates are: Evan D. Flaschen, Esq., US$1,050 Robert G. Burns, Esq. US$800 Andrew J. Schoulder, Esq. US$685 Partners US$685 to US$1,050 Associates US$315 to US$600 Paralegal US$215 to US$255 The Debtors previously assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Marco Polo Marco Polo Seatrade B.V. operates an international commercial vessel management company that specializes in providing commercial and technical vessel management services to third parties. Founded in 2005, the Company mainly operates under the name of Seaarland Shipping Management and maintains corporate headquarters in Amsterdam, the Netherlands. The primary assets consist of six tankers that are regularly employed in international trade, and call upon ports worldwide. Marco Polo and three affiliated entities filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29, 2011. The other affiliates are Seaarland Shipping Management B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V. Marco Polo is the sole owner of Seaarland, which in turn is the sole owner of Cargoship, and also holds a 5% stake in Magellano. The remaining 95% stake in Magellano is owned by Amsterdam-based Poule B.V., while another Amsterdam company, Falm International Holding B.V. is the sole owner of Marco Polo. Falm and Poule didn't file bankruptcy petitions. The filings were prompted after lender Credit Agricole Corporate & Investment Bank seized one ship on July 21, 2011, and was on the cusp of seizing two more on July 29. The arrest of the vessel was authorized by the U.K. Admiralty Court. Credit Agricole also attached a bank account with almost US$1.8 million on July 29. The Chapter 11 filing precluded the seizure of the two other vessels. Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at Bracewell & Giuliani LLP, serve as bankruptcy counsel. The cases are before Judge James M. Peck. Kurtzman Carson Consultants LLC is the claims and noticing agent. The petition noted that the Debtors' assets and debt are both more than US$100 million and less than US$500 million. MSR RESORT: Reaches Bankruptcy Settlement With MetLife ------------------------------------------------------- Roxanne Palmer at Bankruptcy Law360 reports that Paulson & Co.- owned MSR Resort Golf Course LLC asked a New York bankruptcy court on Friday to approve a key settlement with MetLife Inc. that would allow MSR to retain control of its Chapter 11 proceedings. MSR said in a motion that the MetLife settlement "allows the debtors to pursue their value-maximizing initiatives without having to wage a costly battle for control of these Chapter 11 cases," according to Law360. About MSR Resort MSR Hotels & Resorts, formerly known as CNL Hotels & Resorts Inc., owns a portfolio of eight luxury hotels with over 5,500 guest rooms, including the Arizona Biltmore Resort & Spa in Phoenix, the Ritz-Carlton in Orlando, Fla., and Hawaii's Grand Wailea Resort Hotel & Spa in Maui. On Jan. 28, 2011, CNL-AB LLC acquired the equity interests in the portfolio through a foreclosure proceeding. CNL-AB LLC is a joint venture consisting of affiliates of Paulson & Co. Inc., a joint venture affiliated with Winthrop Realty Trust, and affiliates of Capital Trust, Inc. Morgan Stanley's CNL Hotels & Resorts Inc. owned the resorts before the Jan. 28 foreclosure. Following the acquisition, five of the resorts with mortgage debt scheduled to mature on Feb. 1, 2011, were sent to Chapter 11 bankruptcy by the Paulson and Winthrop joint venture affiliates. MSR Resort Golf Course LLC and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-10372) in Manhattan on Feb. 1, 2011. The resorts subject to the filings are Grand Wailea Resort and Spa, Arizona Biltmore Resort and Spa, La Quinta Resort and Club and PGA West, Doral Golf Resort and Spa, and Claremont Resort and Spa. James H.M. Sprayregen, P.C., Esq., Paul M. Basta, Esq., Edward O. Sassower, Esq., and Chad J. Husnick, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' bankruptcy counsel. Houlihan Lokey Capital, Inc., is the Debtors' financial advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The five resorts had $2.2 billion in assets and $1.9 billion in debt as of Nov. 30, 2010, according to court filings. In its schedules, debtor MSR Resort disclosed $59,399,666 in total assets and $1,013,213,968 in total liabilities. NEWPAGE CORP: U.S. Trustee Appoints 9-Member Creditors' Panel ------------------------------------------------------------- Roberta A. DeAngelis, the United States Trustee for Region 3, pursuant to 11 U.S.C. Sec. 1102(a) and (b), appointed nine unsecured creditors to serve on the Official Committee of Unsecured Creditors of NewPage Corporation. The Creditors Committee members are: 1. HSBC Bank USA, National Association ATTN: Sandra Horwitz 10 East 40th Street, 14th Floor New York, NY 10016 Tel: (212) 525-1358 Fax: (212) 252-1366 2. Deutsche Bank Trust Company Americas ATTN: Rodney Gaughan 60 Wall Street, MS NYC 60-2710 New York, NY 10005 Tel: (212) 250-2935 Fax: (212) 797-8610 3. US Bank National Association ATTN: Timothy Sandell 60 Livingston Avenue Saint Paul, MN 55107 Tel: (651) 495-3959 Fax: (651) 495-8100 4. Alden Global Distressed Opportunities Master Fund, L.P. c/o Alden Global Capital, ATTN: Alex Zyngier 885 3rd Avenue, 34th Floor New York, NY 10022 Tel: (212) 888-5500 Fax: (212) 751-9503 5. Pension Benefit Guaranty Corporation ATTN: Darren Huff 1200 K. Street NW Washington, DC 20005 Tel: (202) 326-4070 Fax: (202) 842-2643 6. United Steelworkers ATTN: David Jury Five Gateway Center, Room 807 Pittsburgh, PA 15222 Tel: (412) 562-2545 Fax: (412) 562-2574 7. Eugene Davis, as Litigation Trustee for the Quebecor World Litigation Trust ATTN: Joseph L. Steinfeld, Jr. 2600 Eagan Woods Drive, Suite 400 St. Paul, MN 55121 Tel: (651) 289-3850 Fax: (651) 406-9676 8. OMNOVA Solutions Inc. ATTN: Chet Fox 175 Ghent Road Fairlawn, OH 44333, Tel: (330) 869-4279 Fax: (330) 869-4210 9. National Starch LLC ATTN: Larry Karr 10 Finderne Avenue Bridgewater, NJ 08807 Tel: (908) 685-5069 About NewPage Corporation Headquartered in Miamisburg, Ohio, NewPage Corporation is the leading producer of printing and specialty papers in North America, based on production capacity, with $3.6 billion in net sales for the year ended December 31, 2010. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty papers. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications and direct mail advertising. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 4.1 million tons of paper, including approximately 2.9 million tons of coated paper, approximately 1.0 million tons of uncoated paper and approximately 200,000 tons of specialty paper. NewPage Corporation, along with affiliates, filed Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12804) on Sept. 7, 2011. Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M. Abelson, Esq., Dewey & Leboeuf LLP, in New York, serve as counsel. Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serves as co-counsel. Lazard Freres & Co. LLC is the investment banker, and FTI Consulting Inc. is the financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. In its balance sheet, the Debtors disclosed $3.4 billion in assets and $4.2 billion in total liabilities as of June 30, 2011. Attorneys at Young Conaway Stargatt & Taylor, LLP, and Paul, Hastings, Janofsky & Walker LLP, represent the Official Committee of Unsecured Creditors. Bill Rochelle, the bankruptcy columnist for Bloomberg News, Said that NewPage Corp. prevailed over most objections from the official creditors' committee and won agreement from the bankruptcy judge on final approval for $600 million in secured financing. Moody's Investors Service assigned a Ba2 rating to the $350 million first-out revolving debtor-in-possession credit facility and a B2 rating to the $250 million second-out debtor-in- possession term loan, collectively, the "DIP facilities", of NewPage Corporation. NASSAU BROADCASTING: Hearing Set for Oct. 12 on Chapter 11 Move --------------------------------------------------------------- All Access reports that a hearing was set for Oct. 12, 2011, on Nassau Broadcasting's motion to take the company into Chapter 11 voluntary bankruptcy rather than the Chapter 7 involuntary bankruptcy sought by creditors. Three secured lenders -- affiliates of Goldman Sachs Group Inc., Fortress Investment Group LLC and P.E. Capital LLC -- filed involuntary Chapter 7 bankruptcy petitions (Bankr. D. Del. Case No. 11-12934) on Sept. 15, 2011, against Nassau Broadcasting Partners LP, the owner of 45 radio stations in the northeastern U.S. The lender group said in court papers that they are owed $83.8 million secured by all of Nassau's property. Involuntary petitions were also filed against three affiliates of Nassau, which is based in Princeton, New Jersey. The lenders said the stations aren't worth enough to pay them in full. NATIONAL ENVELOPE: Nov. 8 Hearing on Final Exclusivity Extension ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that National Envelope Corp. for the last time is requesting an extension of the exclusive right to file a liquidating Chapter 11 plan. A hearing is set for Nov. 8 to consider the exclusivity motion. If granted, no one else could file a plan until Dec. 10. By then, the company will have been in bankruptcy for 18 months, the maximum Congress allows for companies to retain exclusive plan-filing rights. Mr. Rochelle reports that with most of the assets sold, the company says it's looking for a buyer to take over a plant in Union, New Jersey, along with attendant environmental liability. NEC sold the business in September 2010 to Gores Group LLC under a contract at an advertised price of $208 million, including cash of $149.85 million. NEC settled disputes with Gores over adjustments in the price. About NEC Holdings Uniondale, New York-based National Envelope Corporation was the largest manufacturer of envelopes in the world with 14 manufacturing facilities and 2 distribution centers and approximately 3,500 employees in the U.S. and Canada. NEC Holdings Corp., together with affiliates, including National Envelope Inc., filed for Chapter 11 (Bankr. D. Del. Lead Case No. 10-11890) on June 10, 2010. Kara Hammond Coyle, Esq., at Young Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel to the Debtors. David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R. Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The Garden City Group is the claims and notice agent. Bradford J. Sandler, Esq., and Robert J. Feinstein, Esq., at Pachuiski Stang Ziehl & Jones LLP, represent the Official Committee of Unsecured Creditors. Morgan Joseph & Co., Inc., is the financial advisor to the Committee. NEC Holdings estimated assets and debts of $100 million to $500 million in its Chapter 11 petition. In September 2010, National Envelope's key assets were bought in a roughly $208 million deal by The Gores Group LLC, a West Coast private equity firm that manages about $2.9 billion of capital. N.L.C. UNITRUST: Files Chapter 11 Plan & Disclosure Statement ------------------------------------------------------------- N.L.C. Unitrust Partners filed with the U.S. Bankruptcy Court for the District of Delaware a Chapter 11 plan of reorganization and an accompanying disclosure statement. The Plan divides Claims and Interests into various separate classes. Under the Plan, there are four separate classes of creditors and one class of Interest Holders, who hold the membership interest of the Debtor. Class 1 Priority Tax Claims and Class 2 Secured Claims are impaired. The Debtor does not believe that there are any Priority Tax Claims and Secured Claims. Class 3 Unsecured Claims are impaired. Holders of Allowed Class 3 Claims will be paid, in full. On the Effective Date, the Debtor will pay to holders of Class 3 Allowed Claims $100,000, the source of which will be funds recovered from Unicon Holding, Inc., an entity that is indebted to the Debtor and which has agreed to pay the amount to the Debtor on the Effective Date. Thereafter, Holders of Allowed Class 3 Claims will receive pro rata distributions until paid in full. Class 4 Liberty Ventures Partners II, LP Claim is impaired. Pursuant to a prepetition limited partnership agreement, the Debtor became obligated to, but was unable to, fund three separate $1,500,000 capital contributions to the holder of the Class 4 claim. The holder of the Class 4 claim will be paid, in full, in this manner: a. On the Effective Date, the Debtor will pay to the holder of the Class 4 claims $750,000, the source of which will be funds recovered from Unicon Holding. b. The balance of the amount due to the holder of the Class 4 claims, in the approximate amount of $3,750,000, will be paid from three separate sources as and when funds are available or made available to the Debtor, as the case may be. The Debtor holds a limited partnership interest in a Philadelphia- based private venture fund related to the holder of the Class 4 claims known as Liberty Ventures Partners I, L.P. LVI is obligated pursuant to the terms of its charter and existence to immediately liquidate its holdings and make distribution to its partners, including the Debtor. As and when the Debtor becomes entitled to any distribution, 70% of any distribution will be paid to the holder of the Class 4 claims with the remainder being paid to the Debtor. To the extent that the holder of the Class 4 claims makes a distribution to its partners, the Debtor will be entitled to a distribution as if the Debtor were current with the holder of the Class 4 claims. Seventy percent of any distribution will be paid to the holder of the Class 4 claims with the remainder being paid to the Debtor. The Debtor is a plaintiff in certain litigation pending in the Court of Common Pleas of Philadelphia County against, among others, its former fiduciaries. The Debtor anticipates that it will be successful in the litigation and will contribute 70% of any recovery to the holder of the Class 4 claims with the remainder being paid to the Debtor. All payments received by or retained by the holder of the Class 4 claims will be applied, dollar for dollar, to reduce the balance due to the holder of the Class 4 claims, in the approximate amount of $3,750,000 until the Allowed amount of the claims of the holder of the Class 4 claims is paid in full. So long as the Allowed amount of the claims of the holder of the Class 4 claims is paid in full, no further payments will be due and owing by the Debtor and any future distributions that are due to the Debtor will be made to the Debtor. Class 5 Interest Holders are not impaired. After payment in full of Class 3 and Class 4, Class 5 will be paid any and all remaining assets and will retain all interests in the Debtor. A full-text copy of the Disclosure Statement, dated Sept. 29, is available for free at http://ResearchArchives.com/t/s?7728 Sedona, Arizona-based N.L.C. Unitrust Partners filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-14074) on Dec. 15, 2010. The Debtor estimated its assets at $10 million to $50 million and debts at $1 million to $10 million at the Petition Date. Ciardi Ciardi & Astin is retained as counsel to the Debtor. OPEN RANGE: Wins Judge OK to Borrow $4M to Fund Ch. 11 Sale ----------------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Kevin J. Carey on Tuesday approved a $4 million loan from Open Range Communications Inc.'s private equity owner to keep the rural broadband service provider's customers connected to the Internet as it searches for a buyer to take on its assets. Law360 relates that Judge Carey approved the interim portion of the loan, which could be worth $6 million on final approval. Greenwood Village, Colo.-based Open Range Communications Inc., a provider of wireless broadband services to 26,000 rural customers in 12 states, filed a Chapter 11 petition (Bankr. D. Del. Case No. 11-13188) on Oct. 6, 2011, to either sell the business or shut down and liquidate. Open Range listed about $114 million in assets and $110 million in debts. Open Range started its WiMax broadband and voice service in late 2009, backed by a $267 million loan from the U.S. Department of Agriculture?s Rural Utility Service and $100 million invested by One Equity Partners, a financing arm of JPMorgan Chase & Co. Judge Kevin J. Carey presides over the case. Marion M. Quirk, Esq., at Cole, Schotz, Meisel, Forman & Leonard, serves as bankruptcy counsel. Logan & Co. serves as claims agent. The petition was signed by Chris Edwards, chief financial officer. OUTSOURCE HOLDINGS: Plan Subordinates 2009 Noteholders' Claims -------------------------------------------------------------- Outsource Holdings, Inc., filed with the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, a Chapter 11 plan of reorganization and an explanatory disclosure statement. The Debtor has caused all outstanding stock of Jefferson Bank to be merged with First Bank & Trust pursuant to an acquisition agreement. The Plan provides for the distribution of the net proceeds from that transaction to holders of Allowed Claims. Under the Plan, Allowed Administrative Claims will be paid in full. After payment of these Claims, the Debtor estimates there will be between $1.3 million and $6.3 million in funds available for distribution. Creditors in Classes 1 (Allowed Claim of Keefe, Bruyette & Woods, Inc.), 2 (Allowed Claims of 2010 Noteholders), 3 (Allowed Claims of TRUPs Holders), and 4 (Allowed Claims of the 2009 Noteholders) are impaired under the Plan and are eligible to vote to accept or reject the Plan. Class 5 Claims (Allowed Equity Interests) will not receive any distributions under the Plan. Accordingly, holders of Allowed Equity Interests are conclusively presumed to have rejected the Plan and are not entitled to vote to accept or reject the Plan. KBW will receive cash from the initial proceeds equal to $100,000. Each holder of an Allowed Class 2 Claim will receive cash from the initial proceeds equals to the principal portion of the claimant's allowed Class 2 claim. The aggregate payment to be made to Class 2 Claimants pursuant to the Plan is estimated to be $200,000. Class 3 Claims will be deemed senior to Class 4 Claims to the extent of the agreed TRUPs Distribution. All existing Equity Interests in the Debtor will be canceled and Class 3 Claimants will be issued a Pro Rata Share of Equity Interests in the Reorganized Debtor. TRUPs Holders are the statutory trust holding notes issued by the Debtor in the approximate amount of $5 million, which has, in turn, issued trust preferred securities to various persons. A full-text copy of the Disclosure Statement, dated Oct. 3, is available for free at http://ResearchArchives.com/t/s?7725 About Outsource Holdings Lubbock, Texas-based Outsource Holdings, Inc.'s only significant asset was its ownership of all of the outstanding capital stock of Jefferson Bank, which is a state bank with five branch locations in the Dallas/Fort Worth metroplex. Outsource Holdings filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 11-41938) on April 3, 2011. Jeff P. Prostok, Esq., at Forshey & Prostok, L.L.P., in Fort Worth, Tex., serves as Outsource Holdings' bankruptcy counsel. The Debtor also tapped Commerce Street Capital, LLP, as investment banker and financial advisor, Fenimore, Kay, Harrison & Ford, LLP as special transaction and regulatory counsel. The Debtor disclosed $10,571,121 in assets and $13,887,431 in liabilities as of the Chapter 11 filing. Anthony J. Pacchia was appointed as Chapter 11 examiner in the Debtor's case. The examiner tapped Cole, Schotz, Meisel, Forman & Leonard, P.A., as counsel and Traxi, LLC, as financial advisors. No creditors' committee has been appointed in the case. PAUL BRENNEKE: Has Until Dec. 6 to Propose Plan of Reorganization ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Oregon extended until Dec. 6, 2011, Paul Brenneke Qualified Personal Residence Trust UDT's deadline to file a plan of reorganization and an explanatory disclosure statement. About Paul Brenneke Qualified Personal Residence Trust UDT Z&A Irrevocable Trust UDT, Elene Dunavan, Jones Dave D&J Remodeling, and Victor Le Nettoyeur LLC filed for Involuntary Chapter 11 protection for Portland, Oregon-based Paul Brenneke Qualified Personal Residence Trust UDT (Bankr. D. Ore. Case No. 11-31975) on March 14, 2011. Judge Trish M. Brown presides over the case. The petitioners are represented by Robert S. Simon, Esq. at Robert S. Simon P.C. According to the Debtor's docket, on Aug. 8, 2011, the Court entered an order for relief and designating person to perform duties of Debtor. The Debtor disclosed $6,268,271 in assets and $5,600,263 in liabilities as of the Chapter 11 filing. Ted A. Troutman at The Law Firm of Muir & Troutman represents the Debtor in its restructuring effort. The U.S. Trustee for Region 18 notified the U.S. Bankruptcy Court for the District of Oregon that he is unable to appoint an official committee of unsecured creditors in the Chapter 11 case of Paul Brenneke Qualified Personal Residence Trust UDT. The U.S. Trustee explains that he has not received a sufficient number of creditors willing to serve on a committee. PEARLAND SUNRISE: C-III Assets Wants Plan Confirmation Denied ------------------------------------------------------------- C-III Asset Management LLC, as special servicer for the Note Holders, asks the U.S. Bankruptcy Court for the Western District of Texas to deny the confirmation of Pearland Sunrise Lake Village I, LP's Chapter 11 Plan. C-III asserts that plan confirmation must be denied because, among other things: -- it is not feasible; -- it is not fair and equitable under section 1129(b) of the Bankruptcy Code; and -- it violates the absolute-priority rule. As reported in the Troubled Company Reporter on Sept. 15, 2011, the Debtor filed a plan of reorganization as modified on Aug. 19, 2011. Among other things, the modified plan designates 10 classes of claims and interests as compared to 11 classes in the original plan dated Nov. 30, 2010. The class on administrative convenience class has been eliminated. As related by the TCR on Aug. 29, 2011, the Bankruptcy Court approved on Aug. 10 the Debtor's First Amended Disclosure Statement dated Aug. 8, 2011, describing the Plan. The Plan will attempt to repay the Debtor's creditors in full through the continued operation of the Debtor's real property, use of the "Registry Funds" that was placed into the Debtor's DIP account, and the possible recovery of other funds related to the "Nationwide Lawsuit". As reported by the TCR on Feb. 2, 2011, the salient terms of the Plan are: (1) Holders of administrative claims and priority claims will be paid in full on the effective date of the Plan; (2) Holders of secured claims will be paid over time; (3) Holders of unsecured claims will be paid the allowed amounts of their claims pro-rata in 60 equal installments beginning on the Effective Date; and (4) Partnership interests held by the general and limited partners of the Debtor will be retained, but will not re- vest until all other Allowed Claims have been paid in full. A full-text copy of the Plan, as modified on Aug. 19, is available for free at: http://bankrupt.com/misc/PEARLAND_DSAug19.PDF C-III is represented by: Eli O. Columbus, Esq. Erik Weiting Hsu, Esq. WINSTEAD PC 5400 Renaissance Tower 1201 Elm Street Dallas, TX 75270-2199 Tel: (214) 745-5400 Fax: (214) 745-5390 About Pearland Sunrise Lake Village I, LP Marble Falls, Texas-based Pearland Sunrise Lake Village I, LP, dba SRLVI, filed for Chapter 11 bankruptcy protection on July 9, 2010 (Bankr. W.D. Tex. Case No. 10-11926). Frank B. Lyon, Esq., who has an office in Austin, Texas, represents the Debtor. The Company estimated assets and debts at $10 million to $50 million. The Company's affiliate, Pearland Sunrise Lake Village II, LP, dba SRLVII, filed a separate Chapter 11 petition on July 9, 2010 (Case No. 10-11925), estimating assets and debts at $10 million to $50 million. PENINSULA HOSPITAL: Creditors' Panel Retains Arent Fox as Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of Peninsula Hospital Center asks permission from the U.S. Bankruptcy Court for the Eastern District of New York to retain Arent Fox LLP as its attorneys, nunc pro tunc to Sept. 26, 2011. Upon retention, the firm will, among other things: a. assist, advise, and represent the Committee in its consultation with the Debtors relative to the administration of the Chapter 11 cases; b. assist, advise, and represent the Committee in analyzing the Debtors' assets and liabilities, investigating the extent and validity of liens and participating in and reviewing any proposed asset sales or dispositions; and c. attend meetings and negotiate with the representatives of the Debtors and secured creditors. The firm's rates are: Personnel Rates --------- ----- Partners $500 - $835 Of Counsel $480 - $795 Associates $290 - $540 Paraprofessionals $155 - $285 Robert M. Hirsh, Esq. -- hirsh.robert@arentfox.com -- a partner in Arent Fox's Bankruptcy and Financial Restructuring Group, attests that Arent Fox is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman et al. as their attorneys. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Tracy Hope Davis, the United States Trustee for Region 2, appointed five unsecured creditors to serve on the Official Committee of Unsecured Creditors of Peninsula Hospital Center. PERKINS & MARIE: Seeks Plan Exclusivity Until Jan. 9 ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Perkins & Marie Callender's Inc. moved this week for an extension of its exclusive right to propose a reorganization, just in case the restaurant owner isn't able to win approval of the Chapter 11 plan at an Oct. 31 confirmation hearing. If approved by the bankruptcy court in Delaware, the new plan-filing deadline would be pushed back 90 days to Jan. 9. About Perkins & Marie Callender's Based in Memphis, Tennessee, Perkins & Marie Callender's Inc., fka The Restaurant Company, is the owner or franchiser of nearly 600 family-dining restaurants, the Perkins Restaurants and Marie Callender's. Perkins & Marie and several affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11795) on June 13, 2011. Perkins & Marie disclosed $290 million in assets and $441 million in debt as of the Chapter 11 filing. Judge Kevin Gross presides over the case. Robert S. Brady, Esq., and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt & Taylor, LLP; and Mitchel H. Perkiel, Esq., Hollace T. Cohen, Esq., and Brett D. Goodman, Esq., at Troutman Sanders, LLP, serve as bankruptcy counsel. The Debtors' financial advisors are Whitby, Santarlasci & Company. Their claims agent is Omni Management Group, LLC. Deloitte Tax LLP serves as tax services provider. DIP lender Wells Fargo is represented by lawyers at Paul, Hastings, Janofsky & Walker LLP. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors in the Debtors' cases. Ropes & Gray LLP represents the Committee. PHILADELPHIA ORCHESTRA: Wants to Hire Grant Thornton as Advisor --------------------------------------------------------------- The Philadelphia Orchestra and its affiliates ask the U.S. Bankruptcy Court for authorization to retain and employ Grant Thornton LLP as tax advisor and auditor, nunc pro tunc to May 26, 2011. Prior to the Petition Date, Grant Thornton provided tax, financial compilation, and audit services to the Debtors. These services have generally related to financial processes and controls related to the Debtors? operations and preparation of quarterly and annual financial statements. As a consequence, Grant Thornton is intimately familiar with the complex financial issues that have arisen and are likely to arise in connection with the Debtors? continued operation. In addition, Grant Thornton is also intimately familiar with the financial issues that have arisen and are likely to arise in connection with performing attest work on the Debtors? books and records. Grant Thornton has extensive experience and expertise in tax preparation and providing attest services, which are the services that the Debtors continue to seek from Grant Thornton. As such, the Debtors submit that Grant Thornton is well-qualified and uniquely able to provide the tax preparation and attest services sought by the Debtors on a going-forward basis. The Debtors seek to retain Grant Thornton to advise the Debtors and their management with respect to these matters: a. Completion of the audit of the financial statements for the year ended August 31, 2010, for the Philadelphia Orchestra Association; b. Completion of the audit of the financial statements for the year ended August 31, 2010, for The Academy of Music; c. Preparation of the Form 990 for the Philadelphia Orchestra Association for the year ended August 31, 2010; d. Preparation of the Form 990 for The Academy of Music for the year ended August 31, 2010. Grant Thornton will be compensated $10,814.61 for the completion of the Philadelphia Orchestra services and $5,872 for the Academy of Music services, which are discounted at a rate of 50%. Prior to the petition date, $23,935 was billed, but not paid, for work performed in conjunction with these services, and $3,885 was incurred pre-bankruptcy but not billed. The last payments Grant Thornton received from the debtors were on Jan. 19 and 26, 2011. Additional compensation will be payable to Grant Thornton on an hourly basis, plus reimbursement of actual, necessary expenses incurred by Grant Thornton for special tax services, which include representation before the IRS, special research and/or opinion letter preparation. Grant Thornton will charge these discounted hourly rates for other tax compliance and audit-related services assessed to the Debtors: Partners $225-$395 Senior Managers $158-$330 Managers $ $310 Senior Associates $112.5-$210 Associates $165 Clerical Staff $32-$68 Cosmo Saginario, a Partner with Grant Thornton LLP, states that his firm does not represent or hold any interest adverse to the Debtors or their estates with respect to the matters for which Grant Thornton is to be employed. Further, Grant Thornton does not have any connection with any creditor or other party-in- interest, or their respective attorneys or accountants, or the U.S. Trustee or any of its employees. The firm can be contacted at: Cosmo Saginario GRANT THORNTON LLP Two Commerce Square, 2001 Market Street Philadelphia, Pennsylvania 19103 Tel: (215) 561-4200 Fax: (215) 561-1066 About The Philadelphia Orchestra The Philadelphia Orchestra -- http://www.philorch.org/-- claims to be among the world's leading orchestras. Bloomberg News says the orchestra became the first major U.S. symphony to file for bankruptcy protection, surprising the music world. Previous conductors include Fritz Scheel (1900-07), Carl Pohlig (1907-12), Leopold Stokowski (1912-41), Eugene Ormandy (1936-80), Riccardo Muti (1980-92), Wolfgang Sawallisch (1993-2003), and Christoph Eschenbach (2003-08). Charles Dutoit is currently chief conductor, and Yannick Nezet-Seguin has assumed the title of music director designate until he takes up the baton as The Philadelphia Orchestra's next music director in 2012. The Philadelphia Orchestra Association, The Academy of Music of Philadelphia, Inc., and Encore Series, Inc., filed separate Chapter 11 petitions (Bankr. E.D. Pa. Case Nos. 11-13098 to 11-13100) on April 16, 2011. Judge Eric L. Frank presides over the case. The Philadelphia Orchestra Association is being advised by Dilworth Paxson LLP, its legal counsel, and Alvarez & Marsal, its financial advisor. Curley, Hessinger & Johnsrud serves as its special counsel. Philadelphia Orchestra disclosed $15,950,020 in assets and $704,033 in liabilities as of the Chapter 11 filing. Encore Series, Inc., tapped EisnerAmper LLP as accountants and financial advisors. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed seven members to the official committee of unsecured creditors in the Debtors' case. Reed Smith LLP serves as the Committee's counsel. QUALTEQ INC: Real Property Debtors Can Access Cash Collateral ------------------------------------------------------------- Upon the motion of Qualteq, Inc., et al., the U.S. Bankruptcy Court for the District of Delaware has entered an amended interim order authorizing the Real Property Debtors and Anar Real Estate, LLC, to use cash collateral pursuant to their respective budgets, pending a final hearing on the motion. The Real Property Debtors are: * 1400 Centre Circle, LLC * 5200 Thatcher,LLC * 5300 Katrine, LLC * Avadamma LLLC * Creative Investments, a General Partnership * Veluchamy LLC Each Debtor may use cash collateral in an amount equal to up to 15% more than a particular corresponding "category" in its respective budget, measured on a cumulative, weekly basis, provided that cash collateral is available. In addition to the Lenders' security interests, as adequate protection for and to secure the payment of an amount equal to any diminution in the value of their collateral, each Real Property Debtor grants to its respective Lenders, security interests in and liens upon all personal property assets of the Real Property Debtors, and the proceeds thereof, (but non including any causes of action arising under the Bankruptcy Code), senior to any other security interests, subject only to (a) valid prepetition liens which are senior to Lenders' respective liens as of the Petition Date, (b) the payment of U.S. Trustee's fees, (c) the amount of professional fees and disbursements accrued but unpaid as of the date of the termination of the Debtors' use of cash collateral. About QualTeq Inc. South Plainfield, New Jersey-based QualTeq, Inc., engages in the design, manufacture, and personalization of plastic cards in the United States. The company manufactures magnetic, contact, and dual interface smart cards. Qualteq Inc. and 17 affiliated companies filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12572) on Aug. 14, 2011. Eric Michael Sutty, Esq., and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, serve as local counsel to the Debtors. K&L Gates LLP is the general bankruptcy counsel. Scouler & Company is the restructuring advisors. QualTeq estimated assets of up to $50 million and debts of up to $100 million as of the Chapter 11 filing. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed four unsecured creditors to serve on the Official Committee of Unsecured Creditors of QualTeq, Inc. R.E. LOANS: Court Determines Bankruptcy Cases as Complex Cases -------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas has designated the Chapter 11 cases of R.E. Loans, LLC, R.E. Future, LLC, and Capital Salvage, as complex cases. After review of the initial pleadings filed, the Court ordered that: 1. The Debtors will maintain a service list identifying the parties that must be served whenever a motion or other pleading requires notice. Unless otherwise required by the Bankruptcy Code or Bankruptcy Rules, notices of motions and other matters will be limited to the parties on the service list. 2. The Court sets these schedule for pre-set hearing for all motions and other matters in these cases: Oct. 6, 2011, at 9:15 a.m. Oct. 20, 2011, at 9:15 a.m. Nov. 2, 2011, at 9:00 a.m. Dec. 6, 2011, at 9:15 a.m. Jan 3, 2012, at 9:15 a.m. Feb. 7, 2012, at 9:15 a.m. March 6, 2012, at 9:15 a.m. April 3, 2012, at 9:15 a.m. Settings for these months will be published by the Court no later than 30 days prior to the first hearing date in the said months. About R.E. Loans R.E. Loans LLC was, for many years, in the business of providing financing to home builders and developers of real property. R.E. Future LLC and Capital Salvage own the real property obtained following foreclosure proceedings initiated by R.E. Loans against its borrowers. R.E. Loans is the sole shareholder of Capital Salvage and the sole member of R.E. Future. B-4 Partners LLC is the sole member of R.E. Loans. As a result of the multiple defaults by R.E. Loans' borrowers, R.E. Loans has transitioned from being a lender to becoming a property management company. Lafayette, California-based R.E. Loans, R.E. Future and Capital Salvage filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case Nos. 11-35865, 11-35868 and 11-35869) on Sept. 13, 2011. Judge Barbara J. Houser presides over the case. Stutman, Treister & Glatt and Gardere, Wynne and Sewell, represent the Debtors as counsel. James A. Weissenborn at Mackinac serves as R.E. Loans' Chief Restructuring Officer. In its petition, R.E. Loans estimated $100 million to $500 million in assets and debts. William T. Neary, the U.S. Trustee for Region 6, appointed 12 members to the Official Committee of Noteholders of R.E. Loans LLC. REAL MEX: Court OKs Epiq as Claims, Noticing & Balloting Agent -------------------------------------------------------------- Real Mex Restaurants, Inc., sought and obtained permission from the U.S. Bankruptcy Court for the District of Delaware to employ Epiq Bankruptcy Solutions LLC as the official claims, noticing and balloting agent. Upon retention, the firm will, among other things: 1. notify all potential creditors of the filing of the chapter 11 petitions discussed herein and of the setting of the first meeting of creditors, pursuant to section 341(a) of the Bankruptcy Code; 2. file affidavits of service for all mailings, including a copy of each notice, a list of persons to whom such notice was mailed, and the date mailed; and 3. assist the Debtors with administrative tasks in the preparation of their bankruptcy Schedules and Statements and monthly operating reports. Joseph N. Wharton -- jwharton@epiqsystems.com -- Vice President of Epiq, is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. The Debtors have provided to pay Epiq a $25,000 retainer to be applied first to pre-petition fees and expenses incurred in connection with their cases and then to subsequent bills that will be sent to the Debtors by Epiq for post-petition fees and expenses. About Real Mex Based in Cypress, California, Real Mex Restaurants, Inc., owns and operates restaurants, primarily through its major subsidiaries El Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco Restaurants, Inc. It has 178 restaurants, with 149 in California. There are also 30 franchised locations. It acquired Chevys Inc. for $90 million through confirmation of Chevy's Chapter 11 plan in 2004. Real Mex Restaurants and 16 of its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 11-13122 to 11-13138) on Oct. 4, 2011. Judge Brendan Linehan Shannon oversees the case. Judge Peter Walsh was initially assigned to the case. The Debtors are represented by Mark Shinderman, Esq., Fred Neufeld, Esq., and Haig M. Maghakian, Esq., at MILBANK, TWEED, HADLEY & McCLOY LLP; and Laura Davis Jones, Esq., and Curtis A. Helm, Esq., at PACHULSKI STANG ZIEHL & JONES LLP as counsel. The Debtors' financial advisors are Imperial Capital, LLC. The Debtors' claims, noticing, soliciting and balloting agent is Epiq Bankruptcy Solutions, LLC. Assets are $272.2 million while debt totals $250 million, according to the Chapter 11 petition. The petitions were signed by Richard P. Dutkiewiez, chief financial officer and executive vice president. Counsel to GE Capital Corp., the DIP Agent and the Prepetition First Lien Secured Agent, are Jeffrey G. Moran, Esq., and Peter P. Knight, Esq., at LATHAM & WATKINS LLP; and Kurt F. Gwynne, Esq., at REED SMITH LLP as counsel. Counsel to the Prepetition Secured Second Lien Trustee are Mark F. Hebbeln, Esq., and Harold L. Kaplan, Esq., at FOLEY & LARDNER LLP. Counsel to the Majority Prepetition Second Lien Secured Noteholders are Adam C. Harris, Esq., and David M. Hillman, Esq., at SCHULTE ROTH & ZABEL LLP; and Russell C. Silberglied, Esq., at RICHARDS LAYTON & FINGER. Z Capital Management LLC, which holds nearly 70% of the Opco term loan, is represented by Derek C. Abbott, Esq., and Chad A. Fights, Esq., at MORRIS NICHOLS ARSHT & TUNNELL LLP; and Lee R. Bogdanoff, Esq., and Whitman L. Holt, Esq., at KLEE TUCHIN BOGDANOFF & STERN LLP. SBARRO INC: Court Approves Disclosure Statement ----------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court approved Sbarro, Inc.'s Disclosure Statement related to the Company's First Amended Joint Chapter 11 Plan of Reorganization. As reported in the Troubled Company Reporter on Oct. 10, 2011, Sbarro, Inc., along with its domestic subsidiaries and affiliates, announced has filed an Amended Disclosure Statement and related Amended Plan of Reorganization with the U.S. Bankruptcy Court for the Southern District of New York. The Company is pursuing an improved version of the plan of reorganization sponsored by certain of its first lien lenders that was originally filed in early August. Under the Amended Plan, Sbarro will significantly reduce its total debt and expects to emerge with approximately $110 million in net debt, and the Company's prepetition first lien lenders will become the new owners of the business by converting the majority of their debt to equity. Notably, the first lien lender sponsors have agreed to provide the Company with new money commitments of up to $35 million, which will provide significant additional liquidity for the Company's post-emergence operations. The amended plan has the support of all of Sbarro's key stakeholders, including the unsecured creditors committee. Nicholas McGrane, Interim President and Chief Executive Officer of Sbarro, said, "The amended plan is a positive development for Sbarro that will allow the Company to emerge from bankruptcy in the very near term with significantly reduced debt. The plan also provides the Company with approximately $35 million of new capital to continue our turnaround effort, which has already increased same store sales year-to-date, including continued improvement in the third quarter. In addition, through this process, the Company has been able to improve lease terms at a number of locations and close some underperforming restaurants. We appreciate the support of our first lien lenders and believe the ample liquidity they have provided -- combined with our reduced debt and operating expenses -- will position Sbarro for accelerated growth going forward." Key terms of the Amended Plan include: -- Converting up to $35 million of loans outstanding under Sbarro's DIP Facility into new first-out rollover term loans, which together with the new money term loans of up to $35 million will comprise the "First-Out Exit Term Loan Facilities" of the reorganized company. -- Converting a portion of the Prepetition First Lien Credit Facility into a $75 million "last-out" exit term facility; -- Converting the remaining approximately $100 million in secured indebtedness outstanding under the Prepetition First Lien Credit Facility into substantially all of the common equity of Reorganized Sbarro; and -- Eliminating all other outstanding debt. Importantly, the exit financing package provided by the first lien lenders allows the Company to exit bankruptcy in the fourth quarter with significant cash interest coverage. As the Company enters the fourth quarter -- historically its busiest period -- it expects to be able to generate positive cash flow before year-end, resulting in net leverage below $100 million and expected liquidity of approximately $40 million by the end of 2011. The Court scheduled a Nov. 17, 2011, confirmation hearing. About Sbarro Inc. The Sbarro family started its business after moving to Brooklyn, New York, from Naples, Italy, in 1956. Today Sbarro is a leading, global Italian quick service restaurant concept with approximately 5,170 employees, 1,045 restaurants throughout 42 countries, and annual revenues in excess of $300 million. Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr. S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million in debt. The Debtor disclosed $51,537,899 in assets and $460,975,646 in liabilities as of the Chapter 11 filing. Sbarro said it has reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co is the Debtors' communications advisor. SEAHAWK DRILLING: Plan of Reorganization Declared Effective ----------------------------------------------------------- Seahawk Drilling, Inc., et al., notified the U.S. Bankruptcy Court for the Southern District of Texas that the effective date of their First Amended Joint Plan of Reorganization (as modified and supplemented through Sept. 27, 2010) occurred on Oct. 4, 2011. The Plan have been satisfied or waived with the consent of both the Official Committee of Unsecured Creditors and the Official Committee of Equity Security Holders. The Liquidating Trustee appointed under the Plan is: Eugene I. Davis PIRINATE Consulting Group, LLC 5 Canoe Brook Drive Livingston, NJ 07039 Tel: (973) 533-9027 Fax: (973) 535-1843 E-mail: GeneDavis@pirinateconsulting.com As reported in the Troubled Company Reporter on Oct. 11, 2011, Seahawk Drilling Inc. sold its 20 shallow-water jackup rigs for $155 million and implemented a liquidating Chapter 11 plan that the bankruptcy judge in Corpus Christi, Texas approved in a Sept. 28 confirmation order. The plan was designed to pay creditors in full. Hercules Offshore Inc. bought the business in April for $25 million cash plus 22.3 million of its shares. Based on the closing price for the stock at the time, the total came to $155 million. Previously, the Hon. Richard S. Schmidt approved stipulation and agreed order resolving objections to plan confirmation and proofs of claim filed by Hercules Offshore, Inc., and SD Drilling LLC. Under the stipulation entered among the Debtors, Hercules Offshore and SD Drilling: -- the Debtors will revise the Plan to incorporate the release provision; -- the Debtors will assume the APA as an executory contract. In connection with such assumption, the Debtors will (i) pay $21,321 to Evans Enterprises Inc., as the cure of existing monetary defaults under the APA; and (ii) deliver their books and records to purchasers in accordance with the APA. A copy of the stipulation is available for free at: http://bankrupt.com/misc/SEAHAWKDRILLING_plan_stipulation.pdf A copy of the final Chapter 11 plan, as confirmed, is available for free at: http://is.gd/ej4rHv A copy of the order confirming the Plan is available for free at: http://is.gd/4helXo About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. The Company and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Lead Case No. 11-20089) on Feb. 11, 2011. Berry D. Spears, Esq., and Jonathan C. Bolton, Esq., at Fullbright & Jaworkski L.L.P., in Houston, serve as the Debtors' bankruptcy counsel. Shelby A. Jordan, Esq., and Nathaniel Peter Holzer, Esq. at Jordan, Hyden, Womble, Culbreth & Holzer, P.C., in Corpus Christi, Texas, serve as the Debtors' co-counsel. Alvarez and Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons & Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Judy A. Robbins, U.S. Trustee for Region 7, appointed three creditors to serve on an Official Committee of Unsecured Creditors of Seahawk Drilling Inc. and its debtor-affiliates. Heller, Draper, Hayden, Patrick & Horn, L.L.C., represents the creditors committee. In its amended schedules, Seahawk Drilling disclosed $208,190,199 in assets and $438,458,460 in liabilities as of the petition date. Seahawk filed for Chapter 11 protection to complete the sale of all assets to Hercules Offshore, Inc. As reported by the Troubled Company Reporter on April 11, 2011, the Bankruptcy Court approved an Asset Purchase Agreement between Hercules Offshore and its wholly owned subsidiary, SD Drilling LLC, and Seahawk Drilling, pursuant to which Seahawk agreed to sell to Hercules, and Hercules agreed to acquire from Seahawk, all 20 of Sellers' jackup rigs and related assets, accounts receivable and cash and certain liabilities of Sellers in a transaction pursuant to Section 363 of the U.S. Bankruptcy Code. The deal was valued at about $176 million when it received court approval. The purchase price for the acquisition will be funded by the issuance of roughly 22.3 million shares of Hercules Offshore common stock and cash consideration of $25 million, which will be used primarily to pay off Seahawk's Debtor-in-Possession loan. The number of shares of Hercules Offshore common stock to be issued will be proportionally reduced at closing, based on a fixed price of $3.36 per share, if the outstanding amount of the DIP loan exceeds $25 million, with the total cash consideration not to exceed $45 million. The deal closed on April 27, 2011. SHAMROCK-SHAMROCK INC: Friends Bank Has Deal on Adeq. Protection ---------------------------------------------------------------- Friends Bank asks the U.S. Bankruptcy Court for the Middle District of Florida to approve a settlement agreement and stipulation for adequate protection entered among Shamrock- Shamrock, Inc., and Patrick Sullivan. Friends Bank has filed a motion for relief from automatic stay with respect to 12 parcels of real estate owned by the Debtor and secured by first mortgages, all of the mortgages and the promissory notes were personally guarantied by Mr. Sullivan. Mr. Sullivan is the principal shareholder and officer of the Debtor. On Aug. 4, 2011, the Court granted Friends Bank relief from automatic stay as to 9 of the Debtor's parcels, leaving 3 parcels to be resolved either by evidentiary hearing or settlement. The settlement dated Sept. 15, 2011, provides for, among other things: -- adequate protection payments to Friends Bank with respect to the remaining 3 parcels and further provides for an agreement as to Friends Bank's secured claims amount with respect to the retained parcels; -- a deed-in-lieu to Friends Bank for each of the surrendered parcels and a release of Mr. Sullivan from his personal guaranty of the loans in consideration of a payment from Mr. Sullivan. Friends Bank relates that the benefits of the stipulation includes, among other things: 1. the Debtor's ability to receive rents from 2 of the retained parcels in amounts in excess of adequate protection payments to the Debtor; 2. allow the Debtor to retain the Halifax property, which is essential to its pending litigation against the City of Daytona Beach; and 3. benefits the interests of all creditors. A full-text copy of the motion and stipulation is available for free at http://bankrupt.com/misc/SHAMROCK-SHAMROCK_settlement.pdf Friends Bank is represented by: Walter J. Snell, Esq. SNELL & SNELL, P.A. 436 N. Peninsula Drive Daytona Beach, FL 32118 Tel: (386) 255-5334 Fax: (386) 255-5335 E-mail: snellandsnell@mindspring.com About Shamrock-Shamrock Daytona Beach, Florida-based Shamrock-Shamrock Inc. owns 70 parcels of Florida real property. It filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 11-07061) on May 10, 2011. Judge Arthur B. Briskman presides over the case. The Law Offices of Mickler & Mickler serves as bankruptcy counsel. The Company scheduled assets of $12,284,976 and liabilities of $17,021,201, owing on mortgages to a variety of lenders. SHENGDATECH INC: Seeks to Subpoena Chinese Banks Amid Probe ----------------------------------------------------------- Dow Jones' DBR Small Cap reports that worried that its foreign bank accounts have been improperly drained by former executives, ShengdaTech Inc. attorneys are seeking legal power to probe some of China's biggest banks that hold money for the Nevada-based manufacturer and its subsidiaries. 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. On Aug. 23, 2011, the Court entered an interim order confirming 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. SOLYNDRA LLC: VDL Tries to Halt Asset Sale Over $13MM Deal ---------------------------------------------------------- Mandi Woodruff at Bankruptcy Law360 reports that an industrial equipment manufacturer asked a Delaware bankruptcy judge Monday to put the brakes on Solyndra Inc.'s planned Oct. 27 asset sale until the company makes good on a $12.7 million bill for manufacturing equipment it allegedly agreed to return. In a suit filed Oct. 10, VDL Enabling Technologies Group Eindhoven BV claims Solyndra, which received court approval for the hotly contested sale last month, signed a nontransferable software license agreement when it hired VDL in 2009 to manufacture glass tubing equipment, according to Law360. 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. AlixPartners LLP serves as noticing claims and balloting agent. Imperial Capital LLC serves as the company's investment banker and financial adviser. The Debtors also tapped former Massachusetts Governor William F. Weld, now with the law firm McDermott Will & Emery, to represent the company in government investigations and related litigation. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors of Solyndra LLC. SOLYNDRA LLC: Has CRO Replacing CEO B. Harrison ----------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Solyndra LLC didn't file papers by the Oct. 11 deadline opposing a request by the U.S. Trustee to appoint a Chapter 11 trustee. Instead, the bankrupt solar-panel maker sought authorization to hire R. Todd Neilson as chief restructuring officer. Mr. Neilson will "effectively replace the debtor's CEO, Brian Harrison, who left the company as scheduled on Oct. 7," Solyndra said. Mr. Rochelle relates that the U.S. Trustee filed a motion for appointment of a Chapter 11 trustee one week after Mr. Harrison and Chief Financial Officer Wilbur G. Stover Jr. invoked their Fifth Amendment rights against self-incrimination and refused to answer questions posed by a congressional committee. Mr. Neilson served in a similar capacity in the Chapter 11 case of beverage maker Le-Nature's Inc., whose former chief executive officer pleaded guilty to charges of masterminding an $800 million fraud. Mr. Rochelle also reports that Solyndra's creditors' committee did file papers opposing appointment of a trustee, who would supplant management. The committee argued in papers to the bankruptcy judge in Delaware that a trustee would "not benefit the sale process" and would have a "likely negative impact." The committee contended that there have been "no substantiated claims of any wrongdoing," although Solyndra has "been the subject of highly publicized political discussion and negative press." The hearing where the judge will decide on appointing a trustee is set for Oct. 17. Bankruptcy law calls for a trustee on a showing of "cause," including gross mismanagement or fraud by current management. By replacing Mr. Harrison with a restructuring officer, Solyndra may be laying the groundwork for an argument that any arguably culpable officers are no longer with the company, thus removing the basis for a trustee. Mr. Rochelle discloses that in September, the bankruptcy judge authorized Solyndra to auction the business on Oct. 27. Bids were to be due Oct. 25, with a hearing to approve the sale on Nov. 2. In an Oct. 11 court filing, the committee said it is negotiating with the company for a "brief extension of the sale timelines." 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. AlixPartners LLP serves as noticing claims and balloting agent. Imperial Capital LLC serves as the company's investment banker and financial adviser. The Debtors also tapped former Massachusetts Governor William F. Weld, now with the law firm McDermott Will & Emery, to represent the company in government investigations and related litigation. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors of Solyndra LLC. Solyndra is at least the fourth solar company to seek court protection from creditors since August 2011. Other solar firms are Evergreen Solar and start-up Spectrawatt Inc., both of which filed in August, and Stirling Energy Systems Inc., which filed for Chapter 7 bankruptcy late in September. SSI GROUP: Section 341(a) Meeting Scheduled for Oct. 26 ------------------------------------------------------- The U.S. Trustee for Region 3 will convene a meeting of creditors of SSI Group Holding Corp. on Oct. 26, 2011, at 1:00 p.m. The meeting will be held at J. Caleb Boggs Federal Building, 2nd Floor, Room 5209. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About SSI Group SSI Group Holding Corp. sought bankruptcy protection (Bankr. D. Del. Case No. 11-12917) on Sept. 14, 2011, 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. SSI is behind two southern restaurant chains -- the healthy Souper Salad chain and "comfort food"-serving Grandy's restaurants. SSI reported $23.9 million in assets as of Aug. 28, 2011. Judge Mary F. Walrath presides over the case. The Debtor is represented by Proskauer Rose LLP and Cozen O'Connor as counsel and Morgan Joseph TriArtisan LLC as financial advisors. Affiliates Super Salad, Inc. (Case No. 11-12918), SSI-Grandy's LLC (Case No. 11-12919), and Souper Brands, Inc. (Case No. 11-12920), also sought Chapter 11 protection on Sept. 14, 2011. The Debtors hope to use the bankruptcy cases to sell their Grandy's chain to an affiliate of Sun Capital Partners (or a higher bidder) and to sell their Souper Salad chain to a to-be determined buyer (no stalking horse bidder has been identified). The United States Trustee appointed 7 members to the Official Committee of Unsecured Creditors. SSI GROUP: U.S. Trustee Wants Sale Break-Up Fee Denied ------------------------------------------------------ Roberta A. DeAngelis, U.S. Trustee for Region 3, asks the U.S. Bankruptcy Court for the District of Delaware to deny approval of the break up fee in relation to the sale of substantially all of SSI Group Holding Corp., et al.'s assets. The Debtors proposed to sell their two business lines: (i) the Grandy's, a group of restaurants that serve comfort food; and (ii) the Souper Salad restaurants, which serve soups, salads and baked goods. In connection with the sale of the Grandy's and Souper Salad business lines, the Debtors asked that the Court: a) designate Captain D's, LLC as the stalking horse bidder for the sale of the Grandy's business line for a purchase price of $6 million, subject to certain adjustments; b) grant Captain D's bid protections of a break-up fee of $100,000 and an expense reimbursement of up to of $200,000 in the event that the Debtors consummate a sale of the Grandy's Assets to a purchaser other than Captain D's; c) to authorize the Debtors to offer a Break-Up Fee of up to 5% of the negotiated purchase price to any bidder for the Souper Salad business line that the Debtors designate as a stalking horse bidder, in the event that the Debtors consummate a sale of the Souper Salad Assets to a purchaser other than the Souper Salad stalking horse bidder. The U.S. Trustee relates that break up fees, while deemed protections to the purchaser, frequently serve as discouragements to potential bidders who would only be permitted to transact business on an unlevel playing field where they must compete with a rival bidder on terms that drive up their acquisition costs significantly. Breakup fees are even more troubling when the proposed purchaser requesting such a payment is an insider of the debtor. According to the U.S. Trustee, the motion disclosed that Captain D's, the proposed stalking horse for the Grandy's Assets, is an affiliate of Sun and the Debtors and therefore an insider. The Court must not approve a break-up fee in connection with a sale of the Souper Salad Assets unless the Debtors demonstrate on the record a good faith effort to market those assets to third parties adequately and properly before seeking to designate any potential purchaser as the stalking horse, and further demonstrate the bona fides of the potential purchaser to whom they propose to pay a Break-Up Fee. The U.S. Trustee leaves the Debtors to their burden of proof and reserves all discovery rights. About SSI Group On Sept. 14, 2011, 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 as of Aug. 28, 2011. The Debtor is represented by Proskauer Rose LLP and Cozen O'Connor as counsel and Morgan Joseph TriArtisan LLC as financial advisors. SSI is behind two southern restaurant chains -- the healthy Souper Salad chain and "comfort food"-serving Grandy's restaurants. Affiliates Super Salad, Inc. (Case No. 11-12918), SSI-Grandy's LLC (Case No. 11-12919), and Souper Brands, Inc. (Case No. 11-12920), also sought Chapter 11 protection on Sept. 14, 2011. The Debtors hope to use the bankruptcy cases to sell their Grandy's chain to an affiliate of Sun Capital Partners (or a higher bidder) and to sell their Souper Salad chain to a to-be determined buyer (no stalking horse bidder has been identified). U.S. Trustee appointed an Official Committee of Unsecured Creditors in the chapter 11 cases of SSI Group Holding Corp. and its affiliates. SUMMO INC: U.S. Trustee Unable to Form Committee ------------------------------------------------ The United States Trustee said that an official committee under 11 U.S.C. Sec. 1102 has not been appointed in the bankruptcy case of Summo Inc., fka Pinion Ridge, LLC, because an insufficient number of persons holding unsecured claims against the Debtor 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 Summo Inc. Pueblo, Colorado-based Summo Inc., fka Pinion Ridge, LLC, filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 11-28971) on Aug. 9, 2011. Judge Elizabeth E. Brown presides over the case. Daniel K. Usiak, Jr., Esq., at Usiak Law Firm, serves as the Debtor's bankruptcy counsel. The Debtor scheduled $15,845,500 in assets and $4,809,760 in debts. The petition was signed by John Musso, president. SW BOSTON: Has Until Oct. 31 to Use Prudential's Cash Collateral ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Massachusetts authorized SW Boston Hotel Venture LLC, et al., to use the cash collateral until Oct. 31, 2011. The Prudential Insurance Company of America on behalf of and solely for the benefit of, and with its liability limited to the assets of, its insurance company separate account, PRISA have an interest in the Debtors' cash collateral. A continued hearing on the Debtors' use of cash collateral will be held on Oct. 27, at 10:00 a.m. By Oct. 25, the Debtors will file and serve (a) detailed supplemental budgets for the continued use of the cash collateral, and (b) written report showing the actual income and expenses through Oct. 21, compared to budgeted income and expenses for the same period. Objections, if any, are due Oct. 26, at 4:30 p.m. The Debtors would use the cash collateral to fund their business operations pending a decision on confirmation of the Plan. The Debtors' use of the cash collateral will be on the same terms and conditions agreed to between the Debtors and Prudential. As reported on the Troubled Company Reporter on Oct. 14, 2010, in exchange for using the cash collateral, the Debtors will grant the prepetition lenders replacement liens on the same types of postpetition property of the estates against which the lienholders hold liens as of the petition date. Ruling on Prudential's Objection In an order dated Sept. 29, 2011, the Court overruled the objection of Prudential. The Court ruled that Prudential does not lack adequate protection given the amount of its debt and the value of its collateral. Moreover, the Court said that the Debtor is making progress in selling condominium units. Prudential is not entitled to further adequate protection or restrictions on the Debtors' use of cash collateral. Prudential is represented by: Gina L. Martin, Esq. GOODWIN PROCTER LLP Exchange Place 53 State Street Boston, MA 02109 Tel: (617) 570-1000 Fax: (617) 523-1231 E-mail: gmartin@goodwinprocter.com Emanuel C. Grillo, Esq. GOODWIN PROCTER LLP The New York Times Building 620 Eighth Avenue New York, NY 10018 Tel: (212) 813-8800 Fax: (212) 355-3333 About SW Boston Hotel Boston, Massachusetts-based SW Boston Hotel Venture LLC is the developer of the W Hotel in Boston. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Mass. Case No. 10-14535) on April 28, 2010. Harold B. Murphy, Esq., and Natalie B. Sawyer, Esq., at Hanify & King, P.C., is the Debtors' bankruptcy counsel. Edwards Angell Palmer & Dodge LLP is the Company's special counsel. The Company estimated its assets and debts at $100 million to $500 million. TAYLOR BEAN: Workers Settle WARN Suit for $15 Million ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Taylor Bean & Whitaker Mortgage Corp. is an example of how failure to give the required 60-day notice of mass firings can result in an expensive loss for creditors. When Taylor Bean filed under Chapter 11, almost 3,000 workers lost their jobs. A class-action lawsuit followed, and a $21.4 million claim was filed for members of the class. Because sought-after wages would have been earned during the Chapter 11 case, the lost compensation was claimed to be an expense of the bankruptcy required to be paid in full. Meanwhile, Taylor Bean confirmed and implemented its Chapter 11 plan in August. Since then, a settlement was reached regarding the WARN Act claims. The report relates that assuming the bankruptcy judge approves, the creditors' trust will set aside $15 million to be paid to the former workers as a priority claim arising during the Chapter 11 case. The plaintiffs' lawyers say the settlement represents a 70 percent recovery for the priority portion of the claim. In addition to creating the creditors' trust, the plan ultimately is to administer $322 million to $521 million, according to the disclosure statement. Once claims with higher priority are paid, between $264 million and $354 million would remain for unsecured creditors with claims totaling more than $8 billion, according to the disclosure statement. According to the report, unsecured creditors were expected to have a distribution between 3.3% and 4.4%, the disclosure statement said. The largest claim, $3.25 billion, belongs to the Federal Deposit Insurance Corp. About Taylor Bean Taylor, Bean & Whitaker Mortgage Corp. grew from a small Ocala- based mortgage broker to become one of the largest mortgage bankers in the United States. In 2009, Taylor Bean was the country's third largest direct-endorsement lender of FHA-insured loans of the largest wholesale mortgage lenders and issuer of mortgage backed securities. It also managed a combined mortgage servicing portfolio of approximately $80 billion. The company employed more that 2,000 people in offices located throughout the United States. Taylor Bean sought Chapter 11 protection (Bankr. M.D. Fla. Case No. 09-07047) on Aug. 24, 2009. Taylor Bean filed the Chapter 11 petition three weeks after federal investigators searched its offices. The day following the search, the Federal Housing Administration, Ginnie Mae and Freddie Mac prohibited the company from issuing new mortgages and terminated servicing rights. Taylor Bean estimated more than $1 billion in both assets and liabilities in its bankruptcy petition Lee Farkas, the former chairman, was sentenced in June to 30 years in federal prison after being convicted on 14 counts of conspiracy and bank, wire and securities fraud in what prosecutors said was a $3 billion scheme involving fake mortgage assets. Jeffrey W. Kelly, Esq., and J. David Dantzler, Jr., Esq., at Troutman Sanders LLP, in Atlanta, Ga., and Russel M. Blain, Esq., and Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA, in Tampa, Fla., represent the Debtors. Paul Steven Singerman, Esq., and Arthur J. Spector, Esq., at Berger Singerman PA, in Miami, Fla., represent the Committee. BMC Group, Inc., serves as the claims and noticing agent. TEN SAINTS: Can Access Cash Collateral on Final Basis ----------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada has entered a final cash collateral order authorizing Ten Saints LLC, to use cash collateral and disputed collateral on a final basis, as provided for in the stipulation with Wells Fargo Bank, N.A., and the budget attached thereto. Wells Fargo is granted a Replacement Lien in all of Debtor's now- owned or after-acquired real and personal property of all types, including, debtor-in-possession bank accounts, and all replacements, supporting obligations, offspring, products, and proceeds of the existing collateral and the replacement collateral to the same extent and priority as Lender's pre-petition security interest and liens. As reported in the TCR on Sept. 22, 2011, Ten Saints asked the Bankruptcy Court to approve a stipulation entered with Wells Fargo Bank, N.A., authorizing its use of cash collateral and disputed cash collateral. Wells Fargo is successor by merger to Wachovia Bank, N.A. As of the Petition Date, the Debtor's obligation outstanding under the note and the ISDA Master Agreement was $14,320,465 on account of principal and contract interest. The Debtor will use the disputed cash collateral and cash collateral to finance its business operations. The lender has consented to Debtor's use of cash collateral and disputed cash collateral on the terms and conditions of the stipulation, which provides for, among other things: -- the Debtor's use of the fund will terminate on the date that is the first to occur of: (i) five calendar days after notice to Debtor that an Event of Default has occurred and is otherwise continuing or otherwise unresolved for which notice is required to be given; (ii) an Event of Default has occurred for which no notice is required to be given; or (iii) the effective date of a confirmed plan of reorganization; -- as adequate protection of lender's interests, the Debtor will (i) pay $29,500 per month to the lender, (ii) grant the lender a replacement lien in all of Debtor's now-owned or after-acquired real and personal property of all types; and -- all cash collateral and disputed cash collateral, will be subject to a carve out for the payment of all allowed and unpaid professional fees and disbursements of Debtor incurred from the Petition Date until the termination date. A copy of the stipulation is available for free at: http://bankrupt.com/misc/tensaints.stipuation.doc54.pdf About Horizon Village Square et al. Four related Las Vegas, Nevada-based entities sought Chapter 11 bankruptcy protection on July 13, 2011. The businesses are owned or managed by local business people and firms, including Todd Nigro, Nigro Development LLC, a Nigro family trust and other investors. Horizon Village Square LLC (Bankr. D. Nev. Case No. 11-21034) owns the Vons-anchored Horizon Village Square Shopping Center near I-515 and Horizon Drive in Henderson. The property includes five retail buildings with nearly 43,000 square feet of space. Ten Saints LLC (Bankr. D. Nev. Case No. 11-21028) owns the 134- room Hampton Inn & Suites at St. Rose Parkway and Seven Hills Drive in Henderson. Beltway One Development Group LLC (Bankr. D. Nev. Case No. 11- 21026) owns the Desert Canyon Business Park at Russell Road and the Las Vegas Beltway. It has two buildings and 15 acres. Nigro HQ LLC (Bankr. D. Nev. Case No. 11-21014) owns an office building at 9115 W. Russell Road occupied by Bank of George, Infinity Plus LLC and Nigro Construction Inc. Todd Nigro said the four bankruptcies were caused by threatened foreclosures -- typically related to Wells Fargo Bank demanding payments to keep loan-to-value ratios at specified levels. Judge Mike K. Nakagawa presides over the cases. Lawyers at Gordon Silver serve as the Debtors' bankruptcy counsel. The bankruptcy petitions estimated assets and debts from $1 million to $10 million each for Nigro HQ; and from $10 million to $50 million in both assets and debts for Horizon Village, Ten Saints and Beltway One. A fifth related business, Russell Boulder LLC, filed for bankruptcy (Bankr. D. Nev. Case No. 10-29724) on Oct. 19, 2010. It owns the 600-suite Siena Suites extended stay property at Boulder Highway and Russell Road. Edward M. Zachary, Esq., at Bryan Cave LLP, in Bryan Cave LLP, in Phoenix, Ariz., and Robert M. Charles, Jr., Esq., at Lewis and Roca LLP, in Los Vegas, Nev., represent Wells Fargo Bank, N.A., as counsel. TETON AIR: Wants U.S. Trustee's Plea for Case Dismissal Denied -------------------------------------------------------------- Teton Air Ranch, LLC, asks the U.S. Bankruptcy Court for the District of Idaho to deny the U.S. Trustee's motion to dismiss or convert its Chapter 11 case to one under Chapter 7 of the Bankruptcy Code. As reported in the Troubled Company Reporter on Sept. 22, 2011, Robert D. Miller, Jr., the U.S. Trustee for Region 19, asked the Court to dismiss or convert the Debtor's case. The U.S. Trustee told the Court that the Debtor has no employees and no business operations. It adds that the Debtor has not bank account since March 2010. The Debtor explains that the proceeding with the bankruptcy is in the best interest of Debtor's unsecured creditors and the estate. Further, the Debtor has complied with all of the specific requirements of which the U.S. Trustee, or is in the process of coming into full compliance with such and has provided explanation regarding the current status of any incomplete requirements. Automatic Stay In relation to the motion for relief from automatic stay, the Debtor says that its sole asset -- certain real property located in Teton County, Idaho is fully encumbered by the present claim of Cypress Capital XXI, LLC. Cypress has asserted a claim against the property in excess of $15 million. While the precise value of the property is unknown, the Debtor has estimated its value to be approximately $5 million. However, the Debtor adds that there are question marks surrounding the validity and extent of Cypress' claim. The Debtor relates that it only received approximately $3.2 - $3.8 million in cash from Cypress, which transfers occurred between November of 2007 and October of 2008. However, Cypress now asserts that over the short time since the loan was made that it is now owed over $15 million. Further, the loan was entered into on behalf of Debtor by Bryce Karl, who was the owner and manager of Air Ranch Holdings, LLC, which was allegedly the majority owner and manager of the Debtor at the time the loan from Cypress was made to Debtor. About Teton Air Teton Air Ranch LLC, in Pocatello, Idaho, filed for Chapter 11 bankruptcy (Bankr. D. Idaho Case No. 11-41190) on July 18, 2011. Judge Jim D. Pappas presides over the case. Daniel C. Green, Esq., at Racine Olson Nye Budge & Bailey, serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Corey Simon, authorized representative. According to its schedules, the Debtor disclosed $13,799,537 in total assets and $24,719,592 in total debts. TOWER OAKS: CWCAM Granted Relief From Stay to Appoint Receiver -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Maryland has granted CWCapital Asset Management LLC as Special Servicer for U.S. Bank National Association, as Trustee, as successor-in-interest to Bank of America, N.A., as Trustee for the Registered Holders of COBALT CMBS Commercial Mortgage Trust 2007-C2, Commercial Mortgage Pass-Through Certificates, Series 2007-C2, additional relief from automatic stay, specifically to seek and obtain the immediate appointment of a receiver from the Circuit Court for Montgomery County with the powers to collect rent, enforce leases and manage the mortgaged property with the usual power incident to a receivership. As reported in the Troubled Company Reporter on Sept. 15, 2011, CWCapital Asset Management LLC as Special Servicer for U.S. Bank National Association, as Trustee, as successor-in-interest to Bank of America, N.A., as Trustee for the Registered Holders of COBALT CMBS Commercial Mortgage Trust 2007-C2, Commercial Mortgage Pass-Through Certificates, Series 2007-C2 sought and obtained an order from the U.S. Bankruptcy Court for the District of Maryland at Greenbelt lifting the automatic stay and allowing CWCAM to proceed with a certain action against a property owned by Debtor Tower Oaks Boulevard LLC. The Property is an office building located at 2701 Tower Oaks Boulevard, Rockville, Maryland 20852. The building and its related real and personal property are the Debtor's only assets and operation of the Property generates substantially all of the gross income of the Debtor. TOB, Inc. is obligated pursuant to a certain Promissory Note amounting $9,100,000, originally payable to CWCapital LLC. The Debtor is a guarantor of the Loan and is the trustor under the terms of that certain Indemnity Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing and is the current assignor under the terms of that certain Indemnity Assignment of Leases and Rents. The Loan and Loan Documents were assigned to the Trust, which continues to hold the Loan and Loan Documents. As of April 1, 2011, CWCAM on behalf of the Trust was owed in excess of $9,753,334 in outstanding principal, interest, and other charges under the Loan Documents, including $9,610,391 accrued prepetition and $142,943 accrued postpetition. Section 362(d)(3) of the Bankruptcy Code provides that, upon request of a party in interest and after notice and a hearing, the court will grant relief from the stay "with respect to a stay of an act against single asset real estate..., by a creditor whose claim is secured by an interest in such real estate, unless not later than the date that is 90 days after the entry of the order for relief... (a) the debtor has filed a plan of reorganization that has a reasonable possibility of being confirmed within a reasonable time; or (b) the debtor has commenced monthly payments..." The Debtor's Chapter 11 case is a single asset case. The Trust is the present owner, holder, and beneficiary of the Loan Documents. The Loan Documents constitute valid and properly perfected first priority liens on, among other things, real property on which the Property is located, all personal property and fixtures associated with the Property and all rents, revenues, income, escrows, receipts, accounts, issues and profits resulting from the operation of the Property. Brent W. Procida, Esq., at Venable LLP, in Baltimore, Maryland, noted that as of May 10, 2011, the 91st day after the filing of the Petition, the Debtor had not filed a plan of reorganization or commenced monthly payments. He contended that the Debtor does not have the financial wherewithal to fund a plan of reorganization or monthly payments. In addition, Mr. Procida pointed out that: -- in its first monthly Operating Report filed March 23, 2011, the Debtor reported less than $8,000 in total income. Three out of four of the Debtor's tenants, its only potential source of income, do not pay rent at all, and are either in bankruptcy or are the holder of a recorded judgment against the Debtor. No prospect of an increase in cash flow is on the horizon; -- the Debtor is administratively insolvent because it has not only employed bankruptcy counsel but also special landlord- tenant counsel. According to its Operating Report, during the month of February, the Debtor's payments to its counsel were almost double its income. About Tower Oaks Boulevard, LLC Raleigh, North Carolina-based Tower Oaks Boulevard, LLC, owns and operates the commercial property identified as 2701 Tower Oaks Boulevard. It filed for Chapter 11 bankruptcy protection on (Bankr. D. Md. Case No. 11-12413) Feb. 8, 2011. Steven H. Greenfeld, Esq., at Cohen, Baldinger & Greenfeld, LLC, serves as the Debtor's bankruptcy counsel. Bregman, Berbert, Schwartz & Gilday, LLC, serves as its special counsel. The Debtor estimated assets at $10 million to $50 million and debts at $1 million to $10 million. Affiliate Sun Control Systems, Inc., filed a separate Chapter 11 petition on December 13, 2010 (Bankr. D. Md. Case No. 10-37991). W. Clarkson McDow, Jr., the U.S. Trustee for Region 4, has not appointed an official committee of unsecured creditors in the Debtors' cases. TOWER OAKS: Bregman Berbert to Assess Claims vs. VCB ---------------------------------------------------- The U.S. Bankruptcy Court for the District of Maryland has authorized Tower Oaks Boulevard LLC to expand the terms of the employment of Bregman, Berbert, Schwartz & Gilday, LLC, to include an assessment of its claims against Virginia Commerce Bank, to evaluate the damages it has incurred as a result of the actions of Virginia Commerce Bank and to generally advise the Debtor with regard to such matters under the terms and conditions enumerated in the Debtor?s Application. As reported in the Troubled Company Reporter, Tower Oaks Boulevard LLC asks the U.S. Bankruptcy Court for the District of Maryland for permission to employ Bregman, Berbert, Schwartz & Gilday, LLC, as its special counsel. The firm will represent the Debtor's in landlord-tenant actions and advise it with regard to its landlord-tenant relationships in view of its experience in matters of this character. The firm charges between $175 and $475 for services rendered. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Tower Oaks Boulevard, LLC Raleigh, North Carolina-based Tower Oaks Boulevard, LLC, owns and operates the commercial property identified as 2701 Tower Oaks Boulevard. It filed for Chapter 11 bankruptcy protection on (Bankr. D. Md. Case No. 11-12413) Feb. 8, 2011. Steven H. Greenfeld, Esq., at Cohen, Baldinger & Greenfeld, LLC, serves as the Debtor's bankruptcy counsel. Bregman, Berbert, Schwartz & Gilday, LLC, serves as its special counsel. The Debtor estimated assets at $10 million to $50 million and debts at $1 million to $10 million. Affiliate Sun Control Systems, Inc., filed a separate Chapter 11 petition on December 13, 2010 (Bankr. D. Md. Case No. 10-37991). W. Clarkson McDow, Jr., the U.S. Trustee for Region 4, has not appointed an official committee of unsecured creditors in the Debtors' cases. TRANS NATIONAL: Files for Chapter 11 Bankruptcy Protection ---------------------------------------------------------- Boston Business Journal reports that Trans National Communications International Inc. filed on Oct. 9, 2011, for protection under Chapter 11 of the U.S. bankruptcy code. According to the report, Trans National's creditors include: -- Sprint Communications, the biggest unsecured creditor, owed $5.04 million; -- A&T Corp., owed $1.66 million; -- Qwest Communications, which merged with CenturyLink Inc., owed $1.9 million; -- Universal Service Administrative Co. of Atlanta, owed $1.4 million; and -- Verizon Services Corp., owed $1 million. The report relates that Trans National listed assets in the range of $1 million to $10 million and debts in the range of $10 million to $50 million. The report notes Trans National's officers are: -- President Brian Twomey; -- Chief financial officer William B. Wiedlein; and -- Directors Joan Belkin and Steven B. Belkin Mr. Belkin, a Boston businessman who founded Trans National Group in the 1970s, was also an owner of the NBA's Atlanta Hawks and the NHL's Atlanta Thrashers, until an ownership split last year. Business Journal says Trans National is represented in the bankruptcy by: Harold B. Murphy, Esq. MURPHY & KING One Beacon Street, 21st Floor Boston, MA 02108 Tel: 617-226-3414 Fax: 617-423-0498 E-mail: hbm@murphyking.com Based in Boston, Trans National Communications provides telecommunications services for businesses. TX BLACKHORSE: Disclosures Approved, Plan Hearing Set for Nov. 1 ---------------------------------------------------------------- Judge Letitia Z. Paul of the U.S. Bankruptcy Court for the Southern District of Texas, Galveston Division, approved the disclosure statement explaining TX Blackhorse, L.P.'s first amended plan of reorganization. The Court will conduct a hearing on confirmation of the Plan on Nov. 1, 2011, at 10:00 a.m. Objections to confirmation must be filed on or before Oct. 18. All ballots must be served on or before Oct. 25. As reported by the Troubled Company Reporter on Sept. 1, 2011, Judy A. Robbins, United States Trustee, has asked the Court to dismiss, or in the alternative, to convert the Debtor's Chapter 11 case to Chapter 7, for failure to file an amended disclosure statement and to file operating reports. The Debtor announced at the hearing on the disclosure statement held on May 10, that it did not wish to proceed and the disclosure statement was denied without prejudice. The Debtor, in the First Amended Plan filed Aug. 19, maintained that its creditors would receive at least what they would receive in a Chapter 7 liquidation. Under a Chapter 7 liquidation, the lien claimants would receive the property in which they have a lien or its value or a trustee would sell the property, usually by auction. The Debtor estimates that the real property would lose 40-50% of its value in a Chapter 7 proceeding. The remaining creditors would receive nothing, the Debtor said. About TX Blackhorse Tempe, Arizona-based TX Blackhorse L.L.P., a limited partnership, is the owner of an undeveloped tract of land consisting of approximately 630 acres in Texas City, Galveston County, Texas. The Debtor's general partner is CW LT Management, L.L.C., of Tempe, Arizona, which owns 1% of the Debtor. John Cork, also of Tempe, Arizona, the manager of the general partner, owns 88% of the Debtor as limited partner. Emilie Cork and Nathan Cork own 5% limited partner interests respectively. The Debtor filed for Chapter 11 bankruptcy protection on Dec. 29, 2010 (Bankr. S.D. Tex. Case No. 10-80760). Thomas Baker Greene, III, Esq., at the Law Office of Thomas B. Greene III, in Houston, serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $19,100,280 in assets and $13,262,621 in liabilities as of the petition date. UNIVERSAL CITY: Fitch Upgrades Issuer Default Rating From 'BB+' --------------------------------------------------------------- Fitch Ratings has upgraded the Issuer Default Rating (IDR) assigned to Universal City Development Partners, Ltd. (Universal Orlando) to 'BBB' from 'BB+'. Universal Orlando is a wholly owned indirect subsidiary of NBCUniversal Media, LLC (NBCUniversal). Fitch currently maintains a 'BBB' IDR for NBCUniversal. Approximately $406 million of principal amount of debt at maturity as of Sept. 30, 2011 is affected by Fitch's action. Fitch's rating actions follow NBCUniversal's announcement that it successfully completed the previously announced consent solicitation and offer to guaranty Universal Orlando's 8.875% senior notes due 2015 (senior notes) and its 10.875% senior subordinated notes due 2016 (subordinated notes). As a result of the consent solicitation, NBCUniversal fully and unconditionally guarantees Universal Orlando's senior notes and senior subordinated notes. Universal Orlando's outstanding senior notes and senior subordinated notes will be pari passu with NBCUniversal's outstanding senior unsecured notes. In exchange for NBCUniversal's guaranty, a majority of the holders of Universal Orlando's senior notes and subordinated notes agreed to certain amendments to the indentures governing the notes to conform the notes' covenants and events of default to those contained in NBCUniversal's $9.1 billion of outstanding senior notes. From Fitch's perspective, the conclusion of the consent solicitation is a modest positive event for NBCUniversal's credit profile. The guaranty of Universal Orlando's debt simplifies NBCUniversal's capital structure and creates a single-level plane for the majority of NBCUniveral's debt. Additionally, the guaranty affirms Universal Orlando's strategic ties to NBCUniversal. Fitch has upgraded following ratings with a Stable Rating Outlook: Universal City Development Partners, Ltd. -- IDR to 'BBB' from 'BB+'; -- Senior unsecured debt to 'BBB' from 'BB+' -- Senior subordinated debt to 'BBB-' from 'BB'. WASHINGTON MUTUAL: Trenton Judge Named to Mediate Plan Compromise ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Raymond T. Lyons, a U.S. Bankruptcy Judge in Trenton, New Jersey, was named Oct. 11 to serve as mediator for Washington Mutual Inc. Lyons is charged with helping the contending parties hammer out a revised Chapter 11 plan that can be confirmed without objection. According to the report, U.S. Bankruptcy Judge Mary F. Walrath, who appointed Judge Lyons officially Oct. 11, wrote a 139-page opinion in September finding defects and refusing for a second time this year to approve WaMu's proposed reorganization plan. Judge Walrath asked Judge Lyons to file a status report by Nov. 4 recommending whether mediation should continue. Judge Walrath will hold a status conference Nov. 7. Judge Walrath didn't want to begin a new confirmation battle without at least attempting to craft a consensual plan. Mr. Rochelle notes that noteholder Aurelius Capital Management LP is no long alone in attempting to appeal Judge Walrath's Sept. 13 ruling. In addition to other noteholders, WaMu and the creditors' committee filed cross-appeals Oct. 11 along with the official equity committee. No one has a right to appeal, since the Sept. 13 ruling was a so-called interlocutory order that didn't wrap up the entire dispute. Everyone is therefore asking for permission to appeal. While Aurelius doesn't like the portion of Judge Walrath's opinion allowing the equity committee to sue for alleged trading on non-public information, WaMu and the creditors want reversal of the opinion insofar as it allows the equity holders to sue noteholders. About WaMu 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. * Survey Shows Some Small-Business Owners Say Recession Lingers --------------------------------------------------------------- Dow Jones' DBR Small Cap reports that more than a third of small- business owners say the country is still in a recession, and their plans for hiring and capital expenditures are mixed, a recent survey showed. * California Signs Municipal Bankruptcy Bill Into Law ----------------------------------------------------- American Bankruptcy Institute reports that California Gov. Jerry Brown (D) has signed state legislation spurred by Vallejo's fiscal crisis that changes how California cities and counties may file for chapter 9 bankruptcy. * Geoffrey T. Raicht Joins Proskauer as Partner in New York ----------------------------------------------------------- Proskauer Rose LLP announced Monday the expansion of its Bankruptcy & Restructuring Group and global Corporate Department with the addition of Geoffrey T. Raicht as a Partner in the New York office. The former co-head of McDermott Will & Emery's Restructuring/Insolvency Affinity Group, Mr. Raicht focuses his practice on representing debtors, creditors, lenders, board members, receivers, and foreign administrators and liquidators, as well as private equity and venture capital funds, in large, complex Chapter 11 cases and restructuring matters. "Geoff is an important addition to our global platform and our ability to address the complex needs of our corporate clients in a continuously challenging economic environment," said Jeff J. Marwil, co-head of Proskauer's Bankruptcy & Restructuring Group. "His years of experience in all types of insolvency matters will serve us well as we continue our expansion and work with parties in a wide range of sectors, particularly our ongoing representation of private equity and hedge funds in the full spectrum of insolvency matters." Mr. Raicht received his J.D. from the City University of New York School of Law, and his M.P.A. and B.A. from New York University. He also served as a clerk to Judge Jeffry H. Gallet of the U.S. Bankruptcy Court for the Southern District of New York. He is the latest addition to Proskauer's Corporate Department, which has experienced significant global expansion in recent months with the addition in London of Kate Simpson (Private Investment Funds), Peter McGowan (Private Investment Funds, Hedge Funds), and Russell T. Carmedy and Michael Nouril (Private Equity, Mergers & Acquisitions), and the announced addition of Nigel van Zyl and Oliver Rochman (Private Investment Funds); Seung Chong and Jeremy Leifer (Private Equity, Mergers & Acquisitions), Gene Buttrill (Capital Markets) and Jay C.S. Tai (Private Equity, Mergers & Acquisitions) in Hong Kong; and Frank Zarb (Capital Markets, Finance) in Washington, DC. Part of Proskauer's global Corporate Department, which consists of more than 250 lawyers counseling clients in sophisticated financial transactions and daily business and regulatory matters, the firm's Bankruptcy & Restructuring Group advises clients on the full spectrum of insolvency-related matters. The group represents a wide variety of debtors, creditors and entities interested in acquiring or investing in troubled companies. The group is augmented by a team of lawyers who have extensive experience in bankruptcy litigation and transactional matters. * Teresa Kohl Joins SSG as Director of Business Development ----------------------------------------------------------- SSG Capital Advisors, LLC (SSG) announced the recent appointment of Teresa Kohl as Director, Business Development. In this role, Ms. Kohl will be responsible for business development, cultivating and maintaining referral source and client relationships and advising clients on special situations transactions. She will be based in the firm's New York City office. Ms. Kohl has over 14 years of restructuring experience, having worked with middle-market companies on corporate restructuring and financial advisory assignments. She was previously with Bridge Associates LLC where she led client engagements. Ms. Kohl started her restructuring career at NHB Advisors, Inc. "We are pleased to welcome Teresa to the SSG family," said SSG Managing Director J. Scott Victor. "We have known Teresa for a long time and she is well-respected in the industry. Her diverse background and range of professional experience fits well within our team of creative and tenacious professionals who work to pursue multiple alternatives for clients facing complex situations. We remain committed to being the go-to special situations investment banking firm for middle market companies." Ms. Kohl can be reached at: Teresa C. Kohl Director, Business Development Telephone: (610) 940-9521 E-mail: tkohl@ssgca.com About SSG Capital Advisors, LLC SSG Capital Advisors, LLC -- http://www.ssgca.com-- is an independent boutique investment bank that assists middle market companies, as well as their stakeholders, complete special situation transactions. As a specialist in mergers and acquisitions, financial advisory, capital raises, financial restructurings and complex valuations. Since 2001, SSG has successfully completed over 180 special situation investment banking assignments on behalf of clients in North America and Europe. SSG Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker dealer of SSG Holdings, LLC. SSG is a registered trademark for SSG Capital Advisors, LLC. SSG provides investment banking, restructuring advisory, merger, acquisition and divestiture services, private placement services and valuation opinions. * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In Re Man Tran Bankr. D. Ariz. Case No. 11-27786 Chapter 11 Petition filed September 30, 2011 In Re Carlos Gonzalez Bankr. C.D. Calif. Case No. 11-23743 Chapter 11 Petition filed September 30, 2011 In Re Karina Veliz Bankr. C.D. Calif. Case No. 11-23748 Chapter 11 Petition filed September 30, 2011 In Re Scott DeGraff Bankr. D. Colo. Case No. 11-33233 Chapter 11 Petition filed September 30, 2011 In Re Cortabella, Inc. Bankr. M.D. Fla. Case No. 11-07230 Chapter 11 Petition filed September 30, 2011 filed pro se In Re Mohamad Waliagha Bankr. M.D. Fla. Case No. 11-18544 Chapter 11 Petition filed September 30, 2011 In Re Doundley Edwards Bankr. N.D. Ga. Case No. 11-78139 Chapter 11 Petition filed September 30, 2011 In Re PT Insurance Group, LLC Bankr. N.D. Ill. Case No. 11-40116 Chapter 11 Petition filed September 30, 2011 See http://bankrupt.com/misc/ilnb11-40116p.pdf See http://bankrupt.com/misc/ilnb11-40116c.pdf represented by Joseph D. Frank, Esq. Frank/Gecker LLP E-mail: jfrank@fgllp.com In Re Melvin Lemons Bankr. S.D. Ind. Case No. 11-92605 Chapter 11 Petition filed September 30, 2011 In Re HQ Fitness & Daycare, LLC Bankr. N.D. Miss. Case No. 11-14518 Chapter 11 Petition filed September 30, 2011 See http://bankrupt.com/misc/msnb11-14518.pdf represented by James W. Amos,Esq. E-mail: jwamosattorney@aol.com In Re Kenneth Booth Bankr. N.D. Miss. Case No. 11-14500 Chapter 11 Petition filed September 30, 2011 In Re KLB Construction, Inc. fdba k & B Construction Inc. fdba K & B Trucking Inc. dba Kenneth L. Booth dba KLB Construction Inc. Bankr. N.D. Miss. Case No. 11-14496 Chapter 11 Petition filed September 30, 2011 See http://bankrupt.com/misc/msnb11-14496.pdf represented by James W. Amos,Esq. E-mail: jwamosattorney@aol.com In Re Alex Song Bankr. D. Nev. Case No. 11-25453 Chapter 11 Petition filed September 30, 2011 In Re Jessica White Bankr. W.D. N.Y. Case No. 11-13421 Chapter 11 Petition filed September 30, 2011 In Re John Hamilton Bankr. E.D. N.C. Case No. 11-07491 Chapter 11 Petition filed September 30, 2011 In Re Harrison Financial Group LLC Bankr. W.D. Okla. Case No. 11-15347 Chapter 11 Petition filed September 30, 2011 filed pro se In Re Robert Harrington Patricia Harrington Bankr. E.D. Pa. Case No. 11-17579 Chapter 11 Petition filed September 30, 2011 In Re Care for Women Cleburne, PA Bankr. N.D. Texas Case No. 11-36151 Chapter 11 Petition filed September 30, 2011 See http://bankrupt.com/misc/txnb11-36151.pdf represented by Joyce W. Lindauer,Esq. Joyce W. Lindauer, Attorney at Law E-mail: courts@joycelindauer.com In Re Ponderosa Fine Foods, LLC Bankr. D. Utah Case No. 11-34290 Chapter 11 Petition filed September 30, 2011 See http://bankrupt.com/misc/utb11-34290.pdf represented by Kimberly L. Stevens,Esq. Coggins, Larreau & Lythgoe E-mail: kstevens@clllawfirm.com In Re Larry Holt Bankr. W.D. Wash. Case No. 11-21580 Chapter 11 Petition filed September 30, 2011 In Re Mark Johnson Bankr. W.D. Wash. Case No. 11-47770 Chapter 11 Petition filed September 30, 2011 In Re Biguns Southwest Services, LLC Bankr. D. Ariz. Case No. 11-27896 Chapter 11 Petition filed October 1, 2011 See http://bankrupt.com/misc/azb11-27896.pdf represented by German Yusufov, Esq. Yusufov Law Firm PLLC E-mail: bankruptcy@yusufovlaw.com In Re Milagros Munoz Bankr. S.D. Fla. Case No. 11-37557 Chapter 11 Petition filed October 1, 2011 In Re John Choate Carol Bristen-Choate Bankr. E.D. Mich. Case No. 11-65843 Chapter 11 Petition filed October 1, 2011 In Re Israel Dakar Bankr. C.D. Calif. Case No. 11-21646 Chapter 11 Petition filed October 2, 2011 In Re Roland Deal Bankr. N.D. Calif. Case No. 11-13673 Chapter 11 Petition filed October 2, 2011 In Re Catonsville Car Clinic, Inc. ta Columbia Autoworx Bankr. D. Md. Case No. 11-29703 Chapter 11 Petition filed October 2, 2011 See http://bankrupt.com/misc/mdb11-29703p.pdf See http://bankrupt.com/misc/mdb11-29703c.pdf represented by Marc L. Jordan ,Esq. E-mail: mjordan@jordantell.com In Re Alfred Eckert Bankr. D. N.J. Case No. 11-38852 Chapter 11 Petition filed October 2, 2011 In Re Crow Partners LLC Bankr. D. Ariz. Case No. 11-27946 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/azb11-27946.pdf represented by Alisa C. Lacey,Esq. Stinson Morrison Hecker LLP E-mail: alacey@stinson.com In Re Michael VanRiette Bankr. C.D. Calif. Case No. 11-51419 Chapter 11 Petition filed October 3, 2011 In Re Rancho California Realty Corp. aka Rancho California Realty Corp Bankr. C.D. Calif. Case No. 11-41081 Chapter 11 Petition filed October 3, 2011 filed pro se In Re Reynaldo Munive Bankr. C.D. Calif. Case No. 11-41122 Chapter 11 Petition filed October 3, 2011 In Re Jerald Marquis Bankr. N.D. Calif. Case No. 11-13677 Chapter 11 Petition filed October 3, 2011 In Re Reynaldo Guinto Bankr. N.D. Calif. Case No. 11-70559 Chapter 11 Petition filed October 3, 2011 In Re William Hammett Bankr. N.D. Calif. Case No. 11-13676 Chapter 11 Petition filed October 3, 2011 In Re Pint American Gastropub, Inc. Bankr. M.D. Fla. Case No. 11-15040 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/flmb11-15040.pdf represented by David R. McFarlin,Esq. Wolff, Hill, McFarlin & Herron, P.A E-mail: dmcfarlin@whmh.com In Re OCI Americas, Inc. Bankr. S.D. Fla. Case No. 11-37664 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/flsb11-37664.pdf represented by Lynn Maynard Gollin, Esq. E-mail: lgollin@gordonrees.com In Re AL B, LLC Bankr. N.D. Ga. Case No. 11-78810 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/ganb11-78810.pdf represented by Terriea L. Williams, Esq. The Williams Law Group E-mail: terrieawilliams@gmail.com In Re Belinda's Down Home Cooking Inc. Bankr. N.D. Ga. Case No. 11-78776 Chapter 11 Petition filed October 3, 2011 filed pro se In Re Gareth Genner Bankr. N.D. Ga. Case No. 11-78763 Chapter 11 Petition filed October 3, 2011 In Re Johnny Blackshear Bankr. N.D. Ga. Case No. 11-78703 Chapter 11 Petition filed October 3, 2011 In Re Kevin Dixon Bankr. N.D. Ga. Case No. 11-78734 Chapter 11 Petition filed October 3, 2011 In Re NKN Enterprises, LLC Bankr. N.D. Ga. Case No. 11-78699 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/ganb11-78699.pdf represented by Gregory D. Coleman, Esq. Burroughs Johnson Hopewell Coleman, LLC E-mail: gregorycoleman@bjhlawyers.com In Re Temple Crossing, Inc. Bankr. N.D. Ga. Case No. 11-78474 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/ganb11-78474.pdf represented by Ian M. Falcone, Esq. The Falcone Law Firm PC E-mail: attorneys@falconefirm.com In Re The Episcopal Church of the Nativity, Inc. Bankr. N.D. Ga. Case No. 11-13278 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/ganb11-13278.pdf represented by James R. Schulz, Esq. Merritt Watson, LLP E-mail: jschulz@merritt-tenney.com In Re Jeffrie Long Sharon Long Bankr. D. Md. Case No. 11-29719 Chapter 11 Petition filed October 3, 2011 In Re J.A. McFall, Inc. Bankr. E.D. Mich. Case No. 11-34633 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/mieb11-34633p.pdf See http://bankrupt.com/misc/mieb11-34633c.pdf represented by Peter T. Mooney, Esq. Simen, Figura & Parker E-mail: pmooney@sfplaw.com In Re All Real Estate, Inc. Bankr. D. Nev. Case No. 11-25688 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/nvb11-25688.pdf represented by Jeffrey A. Cogan, Esq. Jeffrey A. Cogan, Esq., Ltd. E-mail: jeffrey@jeffreycogan.com In Re William Wilson Bankr. D. Nev. Case No. 11-25700 Chapter 11 Petition filed October 3, 2011 In Re Pickens Corporation Bankr. W.D.N.Y. Case No. 11-13434 Chapter 11 Petition filed September 30, 2011 filed pro se In Re Cabinet Enterprises LLC dba Knapke Cabinets Bankr. S.D. Ohio Case No. 11-35376 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/ohsb11-35376.pdf represented by Roger E. Luring, Esq. E-mail: rluring@millerluring.com In Re 1839-43 Poplar Street, LLC Bankr. E.D. Pa. Case No. 11-17719 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/paeb11-17719.pdf represented by Yalonda Evette Houston, Esq. Law Office of Yalonda Houston E-mail: yalondahouston@live.com In Re Cynthia Sanz Bankr. E.D. Tenn. Case No. 11-34547 Chapter 11 Petition filed October 3, 2011 In Re Thurman Migliore Bankr. M.D. Tenn. Case No. 11-09945 Chapter 11 Petition filed October 3, 2011 In Re Roy Riney Bankr. E.D. Texas Case No. 11-43033 Chapter 11 Petition filed October 3, 2011 In Re JMJ Caddo Park, LLC Bankr. N.D. Texas Case No. 11-36345 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/txnb11-36345.pdf represented by Howard Marc Spector, Esq. Spector & Johnson, PLLC E-mail: hspector@spectorjohnson.com In Re Carrington Enterprises Incorporated dba Carrington Tours Bankr. S.D. Texas Case No. 11-38553 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/txsb11-38553.pdf represented by Rolfe W. Goode, Esq. E-mail: rwgoode5396@aol.com In Re Leonardo Ponce Bankr. S.D. Texas Case No. 11-20571 Chapter 11 Petition filed October 3, 2011 In Re Lilia Andrade Bankr. S.D. Texas Case No. 11-50234 Chapter 11 Petition filed October 3, 2011 In Re William Sonne Bankr. S.D. Texas Case No. 11-38404 Chapter 11 Petition filed October 3, 2011 In Re CDWAL, LLC Bankr. W.D. Texas Case No. 11-53457 Chapter 11 Petition filed October 3, 2011 See http://bankrupt.com/misc/txwb11-53457.pdf represented by Allen M. DeBard, Esq. Langley & Banack, Inc E-mail: adebard@langleybanack.com In Re Paresh Makan Bankr. W.D. Texas Case No. 11-53441 Chapter 11 Petition filed October 3, 2011 In Re 3 Lions and a Bull aka Barbara Lynn Moody-Wood Bankr. S.D. W.Va. Case No. 11-30619 Chapter 11 Petition filed October 3, 2011 filed pro se In Re John Mawyer Bankr. S.D. W.Va. Case No. 11-20697 Chapter 11 Petition filed October 3, 2011 In Re Deborah Ferguson Bankr. D. Ariz. Case No. 11-28116 Chapter 11 Petition filed October 4, 2011 In Re Alejandro Passarelli Bankr. C.D. Calif. Case No. 11-51741 Chapter 11 Petition filed October 4, 2011 In Re Christopher Clemens Bankr. C.D. Calif. Case No. 11-14693 Chapter 11 Petition filed October 4, 2011 In Re Gail White Bankr. C.D. Calif. Case No. 11-51760 Chapter 11 Petition filed October 4, 2011 In Re James Cross Bankr. C.D. Calif. Case No. 11-41228 Chapter 11 Petition filed October 4, 2011 In Re Monica Tunwar Bankr. C.D. Calif. Case No. 11-51779 Chapter 11 Petition filed October 4, 2011 In Re Kermit Lewis Bankr. N.D. Calif. Case No. 11-70624 Chapter 11 Petition filed October 4, 2011 In Re Jesus Holiness Church, Inc. Bankr. M.D. Fla. Case No. 11-15112 Chapter 11 Petition filed October 4, 2011 See http://bankrupt.com/misc/flmb11-15112.pdf represented by Robert E. Bone, Jr., Esq. Robert E. Bone Jr. P.A. In Re Spice Modern Steakhouse, Inc. Bankr. M.D. Fla. Case No. 11-15109 Chapter 11 Petition filed October 4, 2011 See http://bankrupt.com/misc/flmb11-15109.pdf represented by David . McFarlin, Esq. Wolff, Hill, McFarlin & Herron, P.A E-mail: dmcfarlin@whmh.com In Re Leonard Shannon Bankr. S.D. Ga. Case No. 11-11967 Chapter 11 Petition filed October 4, 2011 In Re Geotest Instrument Corp. Bankr. N.D. Ill. Case No. 11-40432 Chapter 11 Petition filed October 4, 2011 See http://bankrupt.com/misc/ilnb11-40432.pdf represented by John H. Redfield, Esq. Crane, Heyman, Simon, Welch & Clar E-mail: jredfield@craneheyman.com In Re Valley View Golf Course, Inc. Bankr. S.D. Ind. Case No. 11-12504 Chapter 11 Petition filed October 4, 2011 filed pro se In Re Geoffrey Northridge Bankr. S.D. Iowa Case No. 11-03906 Chapter 11 Petition filed October 4, 2011 In Re Cambodiana, Inc. dba D. J. Liquors Bankr. D. Md. Case No. 11-29842 Chapter 11 Petition filed October 4, 2011 See http://bankrupt.com/misc/mdb11-29842p.pdf See http://bankrupt.com/misc/mdb11-29842c.pdf represented by Lawrence Heffner, Esq. Russell & Heffner, LLC E-mail: lheffner@prodigy.net In Re GH Developers, LLC Bankr. D. Mass. Case No. 11-19483 Chapter 11 Petition filed October 4, 2011 See http://bankrupt.com/misc/mab11-19483.pdf represented by Nina M. Parker, Esq. Parker & Associates E-mail: nparker@ninaparker.com In Re Michael Reddington Bankr. D. Mass. Case No. 11-19487 Chapter 11 Petition filed October 4, 2011 In Re Douglas Marshall Heidi Marshall Bankr. W.D. Mich. Case No. 11-10116 Chapter 11 Petition filed October 4, 2011 In Re Terry Flowers Bankr. S.D. Miss. Case No. 11-52288 Chapter 11 Petition filed October 4, 2011 In Re Jet's Wines & Liquors Co., Inc. Bankr. D. N.J. Case No. 11-39072 Chapter 11 Petition filed October 4, 2011 See http://bankrupt.com/misc/njb11-39072.pdf represented by Rhinold Lamar Ponder, Esq. Ponder Tuck Ponder, LLC. E-mail: ponderlaw@verizon.net In Re A.L.R. Realty, LLC Bankr. E.D. N.Y. Case No. 11-48475 Chapter 11 Petition filed October 4, 2011 See http://bankrupt.com/misc/nyeb11-48475.pdf represented by Neil R. Flaum, Esq. Flaum & Associates, P.C. E-mail: flaumandassociatespc@gmail.com In Re Rodney Wilson Bankr. N.D. Texas Case No. 11-50396 Chapter 11 Petition filed October 4, 2011 In Re Sava Circuits, L.L.C. Bankr. N.D. Texas Case No. 11-36398 Chapter 11 Petition filed October 4, 2011 See http://bankrupt.com/misc/txnb11-36398.pdf represented by Rakhee V. Patel, Esq. Pronske & Patel, P.C. E-mail: rpatel@pronskepatel.com In Re Timothy Brown Bankr. N.D. Texas Case No. 11-36400 Chapter 11 Petition filed October 4, 2011 In Re Claude Eldridge Bankr. S.D. Texas Case No. 11-38598 Chapter 11 Petition filed October 4, 2011 In Re Russell Macfarlane Bankr. D. Ariz. Case No. 11-28160 Chapter 11 Petition filed October 5, 2011 In Re David & Sandy Properties LLC Bankr. M.D. Fla. Case No. 11-18738 Chapter 11 Petition filed October 5, 2011 See http://bankrupt.com/misc/flmb11-18738.pdf represented by David W. Steen, Esq. David W Steen, P.A. E-mail: dwsteen@dsteenpa.com In Re Jerrywood,LLC Bankr. M.D. Fla. Case No. 11-18766 Chapter 11 Petition filed October 5, 2011 See http://bankrupt.com/misc/flmb11-18766.pdf represented by Allan C. Watkins, Esq. Watkins Law Firm, PA E-mail: court@watkinslawfl.com In Re The Diamond and Jewelry Source, Inc. Bankr. N.D. Ga. Case No. 11-13338 Chapter 11 Petition filed October 5, 2011 See http://bankrupt.com/misc/ganb11-13338.pdf represented by H. Matthew Horne, Esq. Rosenzweig, Jones, Horne & Griffis, P.C. E-mail: matt@newnanlaw.com In Re T & Z Meat, Inc. Bankr. N.D. Ill. Case No. 11-40580 Chapter 11 Petition filed October 5, 2011 See http://bankrupt.com/misc/ilnb11-40580.pdf represented by Paul M. Bach, Esq. Bach Law Offices E-mail: paul@bachoffices.com In Re Avonlea Ridge, Inc. dba J's Auto Body Bankr. D. Md. Case No. 11-29921 Chapter 11 Petition filed October 5, 2011 See http://bankrupt.com/misc/mdb11-29921.pdf represented by John Shin, Esq. E-mail: john@shinlegal.com In Re Thomas Norris Elizabeth Norris Bankr. D. Md. Case No. 11-29865 Chapter 11 Petition filed October 5, 2011 In Re Joseph Pearce Wilger Bankr. W.D. Mich. Case No. 11-10177 Chapter 11 Petition filed October 5, 2011 In Re James Severa Bankr. W.D. Neb. Case No. 11-82511 Chapter 11 Petition filed October 5, 2011 In Re Samuels & Samuels LLC Bankr. D. N.J. Case No. 11-39198 Chapter 11 Petition filed October 5, 2011 See http://bankrupt.com/misc/njb11-39198.pdf represented by Mark K. Smith, Esq. Law Offices of Mark K. Smith, LLC E-mail: markksmithlaw@aol.com In Re Marcos Devarie Bankr. D. Puerto Rico Case No. 11-08637 Chapter 11 Petition filed October 5, 2011 In Re Millenium Pure Water Bottler's Corp. aka Natural Spring Water aka Agua Lemarie aka Millenium Pure Water Bankr. D. Puerto Rico Case No. 11-08639 Chapter 11 Petition filed October 5, 2011 See http://bankrupt.com/misc/prb11-08639.pdf represented by Jesus Santiago Malavet, Esq. Santiago Malavet And Santiago Law Office E-mail: jsantiago.smslopsc@gmail.com In Re Larry Marks Bankr. M.D. Tenn. Case No. 11-10028 Chapter 11 Petition filed October 5, 2011 In Re Mary Shankles Bankr. E.D. Texas Case No. 11-43075 Chapter 11 Petition filed October 5, 2011 In Re 300 Parking Street Bankr. N.D. Calif. Case No. 11-33623 Chapter 11 Petition filed October 5, 2011 represented by Jonathan Fried, Esq. Law Offices of Jonathan Fried E-mail: jon.fried@yahoo.com In Re Joseph Brasco Bankr. N.D. Ala. Case No. 11-83492 Chapter 11 Petition filed October 6, 2011 In Re Daniel Boone Bankr. D. Ariz. Case No. 11-28286 Chapter 11 Petition filed October 6, 2011 In Re Mark Radziszewski Bankr. D. Ariz. Case No. 11-28285 Chapter 11 Petition filed October 6, 2011 In Re Martin Lipsic Bankr. C.D. Calif. Case No. 11-51924 Chapter 11 Petition filed October 6, 2011 In Re Boomerangit, Inc. Bankr. N.D. Calif. Case No. 11-70705 Chapter 11 Petition filed October 6, 2011 filed pro se In Re Gary Stancil Bankr. D. D.C. Case No. 11-00747 Chapter 11 Petition filed October 6, 2011 In Re Leslie Arouh Bankr. S.D. Fla. Case No. 11-37865 Chapter 11 Petition filed October 6, 2011 In Re New Horizons Internal Medicine LLC Bankr. N.D. Ga. Case No. 11-79245 Chapter 11 Petition filed October 6, 2011 See http://bankrupt.com/misc/ganb11-79245.pdf represented by Paul Reece Marr, Esq. Paul Reece Marr, P.C. E-mail: pmarr@mindspring.com In Re Victor Hildyard Bankr. D. Kan. Case No. 11-41646 Chapter 11 Petition filed October 6, 2011 In Re Blue Mountain Steel, Inc. Bankr. D. Nev. Case No. 11-53148 Chapter 11 Petition filed October 6, 2011 See http://bankrupt.com/misc/nvb11-53148.pdf represented by Alan R. Smith, Esq. Danna McKitrick, PC E-mail: mail@asmithlaw.com In Re Edward Deets Bankr. M.D. Pa. Case No. 11-06868 Chapter 11 Petition filed October 6, 2011 In Re Tri-State Reprographics, Inc. Bankr. W.D. Pa. Case No. 11-26215 Chapter 11 Petition filed October 6, 2011 See http://bankrupt.com/misc/pawb11-26215.pdf represented by Christopher M. Frye, Esq. Steidl & Steinberg E-mail: chris.frye@steidl-steinberg.com In Re Edwin Guzman-Morales Bankr. D. Puerto Rico Case No. 11-08682 Chapter 11 Petition filed October 6, 2011 In Re Stallard Child Care Services, LLC dba Christiansburg Child Care Center dba Tiny Treasures Bankr. W.D. Va. Case No. 11-72054 Chapter 11 Petition filed October 6, 2011 See http://bankrupt.com/misc/vawb11-72054.pdf represented by A. Carter Magee, Jr., Esq. Magee Goldstein Lasky & Sayers, P.C. E-mail: cmagee@mglspc.com In Re Andrea Elkins Bankr. W.D. Wash. Case No. 11-21795 Chapter 11 Petition filed October 6, 2011 In Re Nicholas Wampach Bankr. W.D. Wash. Case No. 11-47925 Chapter 11 Petition filed October 6, 2011 In Re Terry Swanson Bankr. W.D. Wash. Case No. 11-21768 Chapter 11 Petition filed October 6, 2011 In Re Fox Steel Products, LLC Bankr. D. Conn. Case No. 11-32569 Chapter 11 Petition filed October 7, 2011 See http://bankrupt.com/misc/ctb11-32569.pdf represented by Ellery E. Plotkin, Esq. E-mail: EPlotkinJD@aol.com In Re Fox Steel Services, LLC Bankr. D. Conn. Case No. 11-32570 Chapter 11 Petition filed October 7, 2011 See http://bankrupt.com/misc/ctb11-32570.pdf represented by Ellery E. Plotkin, Esq. Law Offices of Jonathan Fried E-mail: EPlotkinJD@aol.com In Re Panama City Florist & Gifts Inc. Bankr. N.D. Fla. Case No. 11-50535 Chapter 11 Petition filed October 7, 2011 See http://bankrupt.com/misc/flnb11-50535.pdf represented by Charles M. Wynn, Esq. Charles M. Wynn Law Offices, P.A. E-mail: wynnlawbnk@earthlink.net In Re Seaside Engineering & Surveying, Inc. Bankr. N.D. Fla. Case No. 11-31637 Chapter 11 Petition filed October 7, 2011 See http://bankrupt.com/misc/flnb11-31637.pdf represented by Teresa M. Dorr, Esq. Zalkin Revell, PLLC E-mail: tdorr@zalkinrevell.com In Re Tarheel Investors, Inc. Bankr. S.D. Ga. Case No. 11-21251 Chapter 11 Petition filed October 7, 2011 See http://bankrupt.com/misc/gasb11-21251.pdf represented by Jon A. Levis, Esq. Merrill & Stone, LLC E-mail: bkymail@merrillstonehamilton.com In Re Rojas, 2459 Club, Inc. dba Aquarius Club and Restaurant Bankr. N.D. Ill. Case No. 11-40922 Chapter 11 Petition filed October 7, 2011 See http://bankrupt.com/misc/ilnb11-40922.pdf represented by Neil P. Gantz, Esq. Neil Gantz Law Offices E-mail: neilgantz@yahoo.com In Re Vitantonio Meccia Bankr. N.D. Ill. Case No. 11-40848 Chapter 11 Petition filed October 7, 2011 In Re Larry Fitch Bankr. E.D. La. Case No. 11-13322 Chapter 11 Petition filed October 7, 2011 In Re Roberts Broadcasting Company aka WRBU-TV Bankr. E.D. Mo. Case No. 11-50744 Chapter 11 Petition filed October 7, 2011 See http://bankrupt.com/misc/moeb11-50744.pdf represented by A. Thomas DeWoskin, Esq. Danna McKitrick, PC E-mail: tdewoskin@dmfirm.com In Re Roberts Broadcasting Company of Jackson, MS, LLC Bankr. E.D. Mo. Case No. 11-50745 Chapter 11 Petition filed October 7, 2011 In Re Roberts Broadcasting Company of Evansville, IN, LLC Bankr. E.D. Mo. Case No. 11-50746 Chapter 11 Petition filed October 7, 2011 In Re Roberts Broadcasting Company of Columbia, SC, LLC Bankr. E.D. Mo. Case No. 11-50747 Chapter 11 Petition filed October 7, 2011 In Re Kenneth Huff Bankr. D. Nev. Case No. 11-53159 Chapter 11 Petition filed October 7, 2011 In Re Ngaw Ang Bankr. E.D.N.Y. Case No. 11-48543 Chapter 11 Petition filed October 7, 2011 In Re Armand Assante Bankr. S.D.N.Y. Case No. 11-37823 Chapter 11 Petition filed October 7, 2011 In Re Kalf II Enterprises, LLC Bankr. W.D. Pa. Case No. 11-26256 Chapter 11 Petition filed October 7, 2011 See http://bankrupt.com/misc/pawb11-26256p.pdf See http://bankrupt.com/misc/pawb11-26256c.pdf represented by Donald R. Calaiaro , Esq. Calaiaro & Corbett, P.C. E-mail: dcalaiaro@calaiarocorbett.com In Re The Wine Loft Pittsburgh, Inc. Bankr. W.D. Pa. Case No. 11-26268 Chapter 11 Petition filed October 7, 2011 See http://bankrupt.com/misc/pawb11-26268.pdf represented by Joan Shinavski, Esq. McKay & Associates, P.C. E-mail: joan@mckaylaw.com In Re Continental Academy Of America Inc. dba Colegio University Gar dens Bankr. D. Puerto Rico Case No. 11-08723 Chapter 11 Petition filed October 7, 2011 See http://bankrupt.com/misc/prb11-08723.pdf represented by Maria Mercedes Figueroa Y Morgade, Esq. Figueroa Y Morgade Legal Advisors E-mail: figueroaymorgadelaw@yahoo.com In Re JMJ Quality Foods, LLC Bankr. E.D. Va. Case No. 11-74501 Chapter 11 Petition filed October 7, 2011 filed pro se In Re Kevin Soares Bankr. W.D. Wash. Case No. 11-21862 Chapter 11 Petition filed October 7, 2011 In Re Shlomo Eplboim Bankr. C.D. Calif. Case No. 11-21896 Chapter 11 Petition filed October 10, 2011 In Re Doris Tran Bankr. N.D. Calif. Case No. 11-33686 Chapter 11 Petition filed October 10, 2011 In Re Timothy F. Geraci P.C. Bankr. N.D. Calif. Case No. 11-70797 Chapter 11 Petition filed October 10, 2011 See http://bankrupt.com/misc/canb11-70797.pdf represented by William F. McLaughlin, Esq. Law Offices of William F. McLaughlin E-mail: mcl551@aol.com In Re Michael Delaney Bankr. S.D. Calif. Case No. 11-16748 Chapter 11 Petition filed October 10, 2011 In Re Gunder Zimmermann Bankr. M.D. Fla. Case No. 11-18913 Chapter 11 Petition filed October 10, 2011 In Re Hightower Geotechnical Services, Inc. Bankr. M.D. Fla. Case No. 11-07405 Chapter 11 Petition filed October 10, 2011 See http://bankrupt.com/misc/flmb11-07405.pdf represented by Brett A. Mearkle, Esq. Law Office of Brett A. Mearkle E-mail: bmearkle@mearklelaw.com In Re Clarence McKemie III Bankr. N.D. Ga. Case No. 11-43404 Chapter 11 Petition filed October 10, 2011 In Re Alan Lang Bankr. N.D. Ill. Case No. 11-41152 Chapter 11 Petition filed October 10, 2011 In Re Women's Aid Clinic of Lincolnwood, Inc. Bankr. N.D. Ill. Case No. 11-41181 Chapter 11 Petition filed October 10, 2011 See http://bankrupt.com/misc/ilnb11-41181.pdf represented by Ernesto D. Borges, Esq. Law Offices of Ernesto Borges E-mail: notice@billbusters.com In Re Jeffrey Abreu Prosper Bankr. D. Puerto Rico Case No. 11-08744 Chapter 11 Petition filed October 10, 2011 In Re Richmond Halls Bankr. D. S.C. Case No. 11-06320 Chapter 11 Petition filed October 10, 2011 In Re Jimmy Mcgee Bankr. M.D. Tenn. Case No. 11-10185 Chapter 11 Petition filed October 10, 2011 In Re Khushru Frenchman Bankr. M.D. Tenn. Case No. 11-10167 Chapter 11 Petition filed October 10, 2011 In Re Glassport Hotspot LLC Bankr. W.D. Pa. Case No. 11-26292 Chapter 11 Petition filed October 10, 2011 See http://bankrupt.com/misc/pawb11-26292p.pdf See http://bankrupt.com/misc/pawb11-26292c.pdf represented by Michael J. Hudock, III, Esq. Michael J. Hudock and Associates PC E-mail: michaelhudock@comcast.net ********* 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. 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