/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/111019.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, October 19, 2011, Vol. 15, No. 290 Headlines ACADIA HEALTHCARE: S&P Assigns Prelim. 'B' Corp. Credit Rating ACCESS CARDIOSYSTEMS: Founder Slapped With $1.7MM Judgment ACCESS MEDICAL: Case Summary & 20 Largest Unsecured Creditors ALL AMERICAN: Voluntary Chapter 11 Case Summary ARIZONA HEART: Case Converted to Chapter 7 Liquidation BARNWELL HOSPITAL: Says Patient Care Ombudsman Not Necessary BERNARD L. MADOFF: Investors Seek Status to Access Victim Funds CLEARWIRE CORP: Cut by Moody's to 'Caa2' Due to Sprint Issue CLINTON COURT: Hires Robinson Brog as Bankruptcy Counsel CLINTON COURT: Sec. 341 Creditors' Meeting Set for Nov. 9 CLINTON COURT: Lender Says Receiver Should Continue Role COLORADO SPORTS: Case Summary & 15 Largest Unsecured Creditors COMMUNITY TOWERS: Section 341(a) Meeting Scheduled for Oct. 26 COPPER CREEK: Case Summary & 7 Largest Unsecured Creditors COPPER CREEK: With Zero Cash Flow, Court Dismisses Case D&P INVESTMENT: Case Summary & 3 Largest Unsecured Creditors DP FOREST: Case Summary & 20 Largest Unsecured Creditors DALLAS STARS: U.S. Trustee Unable to Form Committee DELTA AIR: DOT APPROVES US Airways Takeoff Landing Rights Swap DELTA AIR: Techops Signs Five-Year Engine Maintenance Contract DELTA AIR: Virgin Trans-Pacific Codeshare to Launch Nov. 6 EAGLE INDUSTRIES: Nov. 10 Plan Confirmation Hearing Set EASLEY REAL: Case Summary & 20 Largest Unsecured Creditors FANNIE MAE: Lawmaker Questions Fannie's Event Sponsorship FLINTKOTE COMPANY: Inks Deal to Dismiss Suit Vs. NJDEP, et al. FLORIDA LANDMASTERS: Dist. Court Won't Stay Foreclosure Judgment GENERAL MOTORS: Launches Korea Plan After Obama Signs New Deal GERMANN ROAD: Case Summary & 3 Largest Unsecured Creditors GRACEWAY PHARMA: Court Clears Galderma to Serve as Lead Bidder GRACEWAY PHARMA: Court Extends Schedules Filing to Nov. 28 GRACEWAY PHARMA: Hires Lazard Freres as Investment Banker GRACEWAY PHARMA: Seeks to Employ PwC as Tax Consultant GRACEWAY PHARMA: Hires Young Conaway as Bankruptcy Counsel GSC GROUP: Black Diamond Introduces Rival Plan for Bankruptcy HARRISBURG, PA: Judge to Hold Nov. 23 Hearing on Chapter 9 Filing HARRISBURG, PA: State Passes Bill That Gives Governor More Power HERITAGE LOG: Case Summary & 20 Largest Unsecured Creditors HORIZON AUTO: Case Summary & 20 Largest Unsecured Creditors HUDSON HEALTHCARE: Proposal to Reopen Hospital Draws Opposition ILLINOIS FAMILY: Case Summary & 14 Largest Unsecured Creditors INVENERGY WIND: S&P Assigns Prelim. 'B' Corporate Credit Rating J-SLAMM, INC.: Case Summary & 11 Largest Unsecured Creditors JEFFERSON, AL: Bid to Avoid Chapter 9 Bankruptcy in Peril KIEBLER RECREATION: Court Approves PNC Bank Settlement LAST MILE: Case Summary & 24 Largest Unsecured Creditors LE-NATURE'S: Former CEO Argues for Lenient Fraud Sentence LEHMAN BROTHERS: IBRD Asks Temporary Allowance of $23-Mil. Claim LEHMAN BROTHERS: Inks Plan Voting Deals With HK Units, et al LEHMAN BROTHERS: Mason Capital Drops Plan Confirmation Objection LOS ANGELES DODGERS: McCourts Unveil Divorce Settlement MCCORD BROS.: Case Summary & 5 Largest Unsecured Creditors MERV PROPERTIES: Voluntary Chapter 11 Case Summary MOUNTAIN CITY: Asks Court to Set Sec. 503(b)(9) Claim Bar Date MRA PELICAN: Fannie Mae Seeks Dismissal to Allow it to Foreclose MURRAY INSURANCE: Endurance Suit Non-core; Trial Reset to Nov. 17 NC12, INC.: Case Summary & 20 Largest Unsecured Creditors NEBRASKA BOOK: Delays Chapter 11 Plan Hearing to November NEWALTA CORP: DBRS Changes Trend on BB Issuer Rating to Positive NNJ HOME: Case Summary & 16 Largest Unsecured Creditors OLD SHORE: Case Summary & 9 Largest Unsecured Creditors OMEGA NAVIGATION: Committee Wins Nod to Retain Advisors PALISADES 6300: Case Summary & 12 Largest Unsecured Creditors PELICAN ISLES: Case Summary & 20 Largest Unsecured Creditors PETROFLOW ENERGY: Notices Termination of Registration of CS POPULAR LIFE RE: A.M. Best Upgrades FSR to 'B+' PRIUM WHITECENTER: Case Summary & 8 Largest Unsecured Creditors QUEEN'S PLATE: Voluntary Chapter 11 Case Summary R&G FINANCIAL: Wants Plan Exclusivity Extended Until Dec. 31 RENAISSANT LAFAYETTE: Court Approves Distributions to Creditors SAFE HARBOR: A.M. Best Affirms 'B' Financial Strength Rating SALES PARTNERSHIPS: Case Summary & 22 Largest Unsecured Creditors SEA TRAIL: Section 341(a) Meeting Scheduled for Oct. 24 SKYPE GLOBAL: Raised by Moody's to 'Ba2' After Sale to Microsoft S.L.6, L.L.C.: Case Summary & 5 Largest Unsecured Creditors SOLYNDRA LLC: OMB Staffers Questioned Restructuring, e-Mails Show SOLYNDRA LLC: Wants to Employ K&L Gates as Special Counsel SOUTH DAKOTA STATE MEDICAL: A.M. Best Affirms FSR at 'B' SOUTHWEST GEORGIA: Files First Amended Disclosure Statement SPANISH PEAKS: Files for Ch. 7 Bankruptcy; To Sell Iconic Property SPRINT NEXTEL: Moody's Cuts Corp. Family Rating to 'B1' SSI GROUP: Has Final OK to Obtain DIP Financing from WFCF SSI GROUP: Court Approves Bid Process for Assets Sale SSI INVESTMENTS: Moody's Affirms 'B2' Corp. Family Rating STANDARD STEEL: Moody's Affirms 'B3' Corp. Family Rating STELLAR GT: To Hold Combined Hearing on Plan on Nov. 18 STRATEGIC AMERICAN: Receives Fiscal Year End Reserves Report SUGARMADE INC: Anton & Chia Raises Going Concern Doubt SUMMO INC: Daniel K. Usiak, Jr. Approved to Handle Bankruptcy Case SUNCAL COMPANIES: CEO Brother Teams With Colony to Bid on Projects TECHDYNE LLC: Wants Until Jan. 20 to Propose Reorganization Plan THERMOENERGY CORP: Amends 54.1 Million Common Shares Offering THINK3 INC: AZA Wins Bankruptcy Rulings for Versata FZ TOWNSEND CORP: Stipulation on Cash Use/Floor Plan Financing Okayed TP INC: Case Converted to Ch. 7 Liquidation; Trustee Named TRANS ENERGY: To Restate March 31 Quarterly Report TRANS NATIONAL: Expects Short Stay in Bankruptcy TRAVELPORT INC: Bank Debt Trades at 16% Off in Secondary Market TRAVELPORT LLC: S&P Lifts Corp. Credit Ratings From 'SD' to 'B-' TRIBUNE CO: Proposes IRS Pension Claim Settlement TRIBUNE CO: Writes on July 7 Decision In Prometheus Case TWIN CITY: Files Schedules of Assets and Liabilities TWIN CITY BAGEL: Section 341(a) Meeting Scheduled for Nov. 1 TWIN CITY: U.S. Trustee Appoints 3-Member Creditors' Panel TYSONS TREE: Case Summary & 9 Largest Unsecured Creditors ULTIMATE ESCAPES: Dec. 8 Plan Confirmation Hearing Set UNITED RENTALS: S&P Withdraws Issue-Level Rating on ABL Facility VIRGINIA PARSONS: Hawaii Court Dismisses Predatory Lending Suit WASHINGTON MUTUAL: Shareholders Challenge Inside Trading Appeal WATER STREET: Case Dismissed; No Party Wants Settlement in Court WATERSCAPE RESORT: Access to Cash Collateral Extended to Oct. 20 WESTLAND PARCEL: Has Access to Cash Collateral Until Nov. 30 WHITTON CORP: Court OKs FamCo Advisory as Interest Rate Expert WISP RESORT: Owner Enters Chapter 11 Protection WS MINERAL: Wins Court Nod to Employ Richard Ward as Counsel WS MINERAL: Gets Approval to Employ Ross Helbing as Appraiser XL GROUP: Fitch Assigns 'BB+' Rating to $350MM Series D Shares YAZOO PIPELINE: Court OKs Ch. 7 Trustee's 2nd Amended Complaint YELLOWSTONE MOUNTAIN: Court Rejects Claims for Membership Deposit ZOGENIX INC: To Hold "Say-on-Pay" Votes on Triennial Basis ZOO ENTERTAINMENT: Currently in Talks of Forbearance with Panta * Agape Owner Cosmo Sentenced to 25 Years in Ponzi Scheme * S&P Puts 'CCC' Ratings on 3 Calif. Tax Bonds on Watch Negative * Default Warning Signs Appear Among Issuers of Junk Bonds * Negative Pressure for U.S. Companies Due to Pension Performance * Corp Bond Issuers Better Positioned Than 4 Yrs Ago, Moody's Says * Sandberg Accused of Misrepresenting Chapter 7 Fees * Federal Reserve Adopts 'Living Wills' Rule for Riskiest Firms * Investors Balk at Wilbur Ross's Latest Private Equity Fund * Alvarez & Marsal Honored With Year Award * DLA Piper Bankruptcy Chair Joins Brown Rudnick * Miller Buckfire to Name Harvey Golub as Chairman * Upcoming Meetings, Conferences and Seminars ********* ACADIA HEALTHCARE: S&P Assigns Prelim. 'B' Corp. Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services issued a 'B' preliminary corporate credit rating on Franklin, Tenn.-based Acadia Healthcare Inc. The rating outlook is stable. "At the same time, we issued a preliminary 'B-' issue-level rating on Acadia's proposed $150 million senior unsecured notes (one notch below the corporate credit rating). Our preliminary recovery rating on the notes is '5', indicating our expectation of modest (10%-30%) recovery of principal in the event of payment default. The company will also have $130 million on its outstanding term loan and a $30 million revolver (unrated)," S&P related. "The preliminary low speculative grade rating on Franklin, Tenn.- based Acadia reflects the company's aggressive growth strategy and highly leveraged financial risk profile," said Standard & Poor's credit analyst Tahira Wright. "We characterize Acadia's business risk profile as weak because of the challenges it faces in controlling its rapid expansion from a small base, and its exposure to uncertain third-party reimbursement that accounts for about three-quarters of its revenue. From a financial perspective, growth funding is likely to keep leverage around 5x over the next year, even with the double-digit revenue and EBITDA increases we expect and the amortization payments mandated under its credit facility." Shortly after new managers joined the company early in 2011, Acadia acquired YFCS in a debt-financed transaction. This more than doubled the company's revenue and earnings base, and about tripled Acadia's facility count to 19. Now, the planned debt- financed acquisition of PHC will create a network of 34 acute behavioral facilities and residential treatment centers across 18 states. "We expect this to result in double-digit revenue and earnings growth through at least 2012 at least. Management is experienced in the behavioral health field, having prior involvement in Psych Solutions (acquired by Universal Health Services Inc.). We believe that, in addition to increasing bed count, it will convert some residential treatment beds to higher level of service acute hospitalization beds, and attempt to improve operational management at existing facilities. Still, the challenges of further growing and controlling such rapid expansion are formidable," S&P related. ACCESS CARDIOSYSTEMS: Founder Slapped With $1.7MM Judgment ---------------------------------------------------------- Access CardioSystems, Inc., and its individual investors sued the company's founder and former shareholder, officer, and director, Randall Fincke in Bankruptcy Court, seeking damages for, inter alia, Mr. Fincke's alleged violation of Massachusetts securities law and breaches of his fiduciary duty owed to the Investors and to Access. The Court has earlier ruled that Mr. Fincke did breach certain of his fiduciary duties to Access and, in one instance, violated Massachusetts General Laws ch. 110A, Sec. 410(a)(2). Mr. Fincke has waived any further contest to the entry of judgment on account of the fiduciary duty breaches in an amount which the Court has earlier determined. The Court, however, still must determine what, if any, damages are recoverable by the Investors on account of Mr. Fincke's violation of Sec. 410(a)(2). In an Oct. 14, 2011 Memorandum of Decision, available at http://is.gd/axZvNjfrom Leagle.com, Bankruptcy Judge Henry J. Boroff held that the only sales of securities made "by means of" the material misstatement in the company's 2002 business plan prepared by Mr. Fincke were those purchases of Access stock made by Joseph Zimmel in October and November 2002. Mr. Zimmel had invested $2 million in the company. Therefore, Judge Boroff entered judgment against Mr. Fincke and in favor of Mr. Zimmel for $1,500,000 plus interest at 6% per year from May 25, 2007, the date of the of the disposition of the securities, pursuant to Sec. 410(a)(2), plus costs pursuant to Bankruptcy Rule 7054(b). In addition, given Mr. Fincke's waiver of any objections to the entry of judgment in favor Access on account of his breaches of fiduciary duties, the Court entered judgment against Mr. Fincke and in favor of Access for $281,534, plus interest at the rate of 12% from July 6, 2004, the time the action was commenced, pursuant to Mass. Gen. Laws ch. 231, Sec. 6B, plus costs pursuant to Bankruptcy Rule 7054(b). Postjudgment interest at the federal rate established by 28 U.S.C. Sec. 1961 will run on the entirety of both awards, including prejudgment interest and costs, from the date of judgment forward. The lawsuit is, ACCESS CARDIOSYSTEMS, INC., NORTH AMERICAN ENTERPRISES, INC., JOHN MORIARTY AND ASSOCIATES, JOHN J. MORIARTY, RICHARD F. CONNOLLY, JR., AND JOSEPH R. ZIMMEL, Plaintiffs, OFFICIAL COMMITTEE OF UNSECURED CREDITORS OF ACCESS CARDIOSYSTEMS, INC., Plaintiffs-Intervenors, v. RANDALL FINCKE, Defendant, Adv. Proc. No. 05-4076 (Bankr. D. Mass.). Headquartered in Concord, Massachusetts, Access CardioSystems, Inc. -- http://www.accesscardiosystems.com/-- developed, marketed, and sold portable automated external defibrillators. The Company filed for Chapter 11 protection (Bankr. D. Mass. Case No. 05-40809) on Feb. 18, 2005. Jeffrey D. Sternklar, Esq., at Duane Morris LLP, represented the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it estimated assets and debts of $1 million to $10 million. ACCESS MEDICAL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Access Medical Associates, LLC P.O. Box 423 Oldwick, NJ 08558 Bankruptcy Case No.: 11-39852 Chapter 11 Petition Date: October 14, 2011 Court: U.S. Bankruptcy Court District of New Jersey (Trenton) Judge: Raymond T. Lyons, Jr. Debtor's Counsel: Thaddeus R. Maciag, Esq. MACIAG LAW, LLC 601 Route 206, Suite 26-630 Hillsborough, NJ 08844 Tel: (908) 704-8800 Fax: (908) 704-8804 E-mail: MaciagLaw1@aol.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/njb11-39852.pdf The petition was signed by Lon E. Goldberg, manager. ALL AMERICAN: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: All American Home Center, Inc. 7201 Firestone Blvd. Downey, CA 90241 Bankruptcy Case No.: 11-52283 Chapter 11 Petition Date: October 10, 2011 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Ernest M. Robles Debtor's Counsel: William H. Kiekhofer, III, Esq. MCGUIREWOODS LLP 1800 Century Park East 8th Fl Los Angeles, CA 90067 Tel: (310) 315-8244 Fax: (310) 956-3144 E-mail: wkiekhofer@mcguirewoods.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Tamar Gertier Kane, director, president, chief operating officer, chief people officer and chief financial officer secretary. ARIZONA HEART: Case Converted to Chapter 7 Liquidation ------------------------------------------------------ Judge George B. Nielsen has ordered the conversion of the Chapter 11 case of AHI Holding Company, formerly known as Arizona Heart Institute, Ltd., to one Chapter 7 of the Bankruptcy Code. As reported in the TCR on Sept. 8, 2011, David M. Reaves, the Chapter 11 trustee for AHI Holding requested for the dismissal of the Chapter 11 case, citing that because the Debtor has no ongoing business to reorganize. According to the Chapter 11 Trustee, the Debtor has not filed a plan of reorganization, and it is apparent that the Debtor has no intention of pursuing confirmation of a plan. The Debtor's estate, Mr. Reaves related, does not have any unencumbered assets or funds, other than potential avoidance actions and possibly other causes of action. Significant Chapter 11 administrative expenses have been incurred to date and continue to accrue, and the estate has no funds available to pay those expenses, according to the Trustee. The Chapter 11 Trustee told the Court that, on the Petition Date, the Debtor entered into an asset purchase agreement with Hospital Development Company Number 1, Inc., a subsidiary of Vanguard Health Systems, Inc. Pursuant to the terms of the APA, the Debtor agreed to sell substantially all of its assets to the Purchaser. On Sept. 30, 2010, the Court entered an order approving the APA and the sale of the sale of the Debtor's assets to Hospital Development. The sale closed on or about Oct. 15, 2010. Phoenix, Arizona-based Arizona Heart Institute, Ltd., is a specialty outpatient clinic dedicated to the prevention, detection and treatment of cardiovascular diseases. It was founded by Edward B. Diethrich, M.D., in 1971, and at its height operated numerous offices across the Phoenix metropolitan area. Arizona Heart filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 10-24062) on July 30, 2010. C. Taylor Ashworth, Esq., and Christopher Graver, Esq., at Stinson Morrison Hecker LLP, assist the Debtor in its restructuring effort. Ilene J. Lashinsky, the U.S. Trustee for Region 14, appointed three members to the official committee of unsecured creditors in the Debtor's Chapter 11 case. The Debtor disclosed $16,925,342 in assets and $8,115,541 in debts as of the Petition Date. BARNWELL HOSPITAL: Says Patient Care Ombudsman Not Necessary ------------------------------------------------------------ The Bankruptcy Court will hold a hearing on Nov. 1, 2011, at 2:00 p.m., to consider the request of Barnwell County Hospital for determination that a patient care ombudsman under 11 U.S.C. Sec. 333(a)(1) is not necessary. Objections to the Debtor's request are due by Oct. 26. If a debtor in a case under Chapter 9 of the Bankruptcy Code is a healthcare business, the appointment of a patient care ombudsman is mandated by Sec. 333(a)(1) no later than 30 days after the petition date to monitor the quality of patient care and to represent the interests of the patients "unless the court finds that appointment of such ombudsman is not necessary." The Hospital operator contends that there are processes and mechanisms in place by which the Debtor monitors and improves the quality of care it provides to patients and protects patient privacy. The Debtor believes the mechanisms provide the necessary protection for patients and therefore a court-appointed patient care ombudsman is not necessary and would serve only to subject the estate to unnecessary expense. Separately, the Debtor has proposed a Nov. 11 deadline for parties-in-interest to file objections to the Chapter 9 petition. About Barnwell County Hospital Barnwell County Hospital in South Carolina filed for municipal reorganization under Chapter 9 of the Bankruptcy Code (Bankr. D. S.C. Case No. 11-06207) on Oct. 5, 2011, in Columbia, South Carolina. The hospital is licensed for 53 beds, although only 31 are currently operating. It also operates three rural health clinics in southwestern South Carolina. The hospital said it filed because the county said it's no longer willing or able to fund losses. The hospital has no bonded debt. Assets and debt are both less than $10 million. Judge David R. Duncan oversees the case. Lindsey Carlbert Livingston, Esq., and Stanley H. McGuffin, Esq., at Haynsworth Sinkler Boyd, PA, represent the Debtor as counsel. The petition was signed by Charles Lowell Jowers, Sr., chairman of the hospital's board of trustees. BERNARD L. MADOFF: Investors Seek Status to Access Victim Funds ---------------------------------------------------------------- Abigail Rubenstein at Bankruptcy Law360 reports that investors in 16 funds that funneled money into Bernard L. Madoff's massive Ponzi scheme asked a New York federal court on Friday to reverse a bankruptcy court's ruling that found them ineligible to receive money recovered for the imprisoned fraudster's victims. Law360 relates that the investors filed a brief urging the court to overturn U.S. Bankruptcy Judge Burton Lifland's ruling that because they didn't directly hold accounts with Bernard L. Madoff Investment Securities LLC, they could not access the money recovered for Madoff's customers by Madoff bankruptcy trustee. 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. CLEARWIRE CORP: Cut by Moody's to 'Caa2' Due to Sprint Issue ------------------------------------------------------------ Moody's Investors Service has lowered the corporate family rating (CFR) and probability of default rating (PDR) for Clearwire Communications Corp. to Caa2 and Caa3, respectively. This action reflects Moody's view that Clearwire's relationship with Sprint appears unlikely to improve to the point where Sprint would extend their existing wholesale agreement beyond 2013. Consequently, Clearwire will need to find alternative wholesale partners or sell spectrum in order to make interest payments after 2012. Clearwire's ratings outlook remains negative based on its weakening liquidity position and our doubts about their ability to find a new wholesale partner in the near-term. RATINGS RATIONALE Despite over a year of torturous negotiations and several management changes at Clearwire, the two companies remain unable to reach a long-term agreement that would be mutually beneficial. "Consequently, Clearwire's significant spectrum holdings, half of which were contributed by Sprint, don't appear to be part of Sprint's nationwide 4G network plan beyond 2013", said Moody's Senior Vice President Dennis Saputo. Clearwire will face serious financial challenges as its subscriber growth (which included a record 1.9 million wholesale additions in 3Q 2011, according to preliminary estimates by Clearwire) is likely to slow dramatically as Sprint is expected to begin de- emphasizing sales of handsets that run on the WiMax platform. Furthermore, Clearwire will require additional funding to deploy LTE in order to become an attractive partner for other wireless providers. Moody's believes that Clearwire will accelerate its efforts to sell spectrum to boost its liquidity. "Applying a conservative valuation to Clearwire's spectrum provides greater than 100% coverage of current debt", stated Mr. Saputo. Clearwire's speculative grade liquidity (SGL) rating of SGL-4 reflects the company's cash burn rate, the lack of a revolving credit facility and its inevitable need for new capital. Moody's could stabilize the outlook if the company were to reach an agreement with Sprint that would result in a coordinated, nationwide 4G network plan and marketing strategy, or if Clearwire were to demonstrate progress towards positive free cash flow. The ratings could be lowered if the company is unable to sell spectrum assets or reach a new wholesale agreement. Moody's has taken the following rating actions: Issuer: Clearwire Communications LLC Corporate Family Rating -- Downgraded to Caa2 from Caa1 Probability of Default Rating -- Downgraded to Caa3 from Caa2 $2.695 Billion Senior Secured 1st Lien Notes due 2015, Downgraded to B3 (LGD2 --17%) from B2 (LGD2 -- 17%) $500 Million Senior Secured 2nd Lien Notes due 2017, Downgraded to Caa3 (LGD4 --54%) from Caa2 (LGD4 -- 50%) Speculative Grade Liquidity Rating -- Affirmed at SGL-4 Outlook -- Negative The principal methodology used in rating Clearwire was the Global Telecommunications Industry Industry Methodology, published December 2010. Other methodologies used include Loss Given Default for Speculative Grade Issuers in the US, Canada, and EMEA, published June 2009. CLINTON COURT: Hires Robinson Brog as Bankruptcy Counsel -------------------------------------------------------- Clinton Court Development LLC seeks Bankruptcy Court permission to employ Robinson Brog Leinwand Greene Genovese & Gluck P.C. as bankruptcy counsel. Robert R. Leinwand, Esq., a shareholder at the firm, will lead the engagement. The Debtor proposes to pay the firm pursuant to its standard hourly basis. The firm's partners charge $400 to $550 per hour. Associates at the firm charge $240 to $375 an hour. Paralegals charge $110 to $185 an hour. Mr. Leinwand disclosed that the firm received a $26,039 retainer from the Debtor pre-bankruptcy. He attests that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code. About Clinton Court Development Clinton Court Development LLC, the owner of a 13-story mixed-use building on Clinton Avenue in Brooklyn filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-14673) on Oct. 5, 2011, claiming the property is worth about $17 million. Mortgages total roughly $42.3 million. The primary secured creditor is TD Bank NA. The Company also owns a two-story commercial building on Waverly Avenue in Brooklyn. Judge Robert E. Gerber presides over the case. The Debtor scheduled $17,210,000 in assets and $47,347,150 in liabilities. The petition was signed by David Weiss, manager. Attorneys for TD Bank N.A., are H. Michael Lynch, Esq., and Gary O. Ravert, Esq., at Lynch & Associates. CLINTON COURT: Sec. 341 Creditors' Meeting Set for Nov. 9 --------------------------------------------------------- The U.S. Trustee for Region 2 will convene a meeting of creditors in the bankruptcy case of Clinton Court Development LLC on Nov. 9, 2011, at 2:30 p.m. at 80 Broad St., 4th Floor, USTM. 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. Clinton Court Development LLC, the owner of a 13-story mixed-use building on Clinton Avenue in Brooklyn filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-14673) on Oct. 5, 2011, claiming the property is worth about $17 million. Mortgages total roughly $42.3 million. The primary secured creditor is TD Bank NA. The Company also owns a two-story commercial building on Waverly Avenue in Brooklyn. Judge Robert E. Gerber presides over the case. The Debtor is represented by Robert R. Leinwand, Esq., at Robinson Brog Leinwand Greene Genovese & Gluck P.C. as counsel. The Debtor scheduled $17,210,000 in assets and $47,347,150 in liabilities. The petition was signed by David Weiss, manager. Attorneys for TD Bank N.A., are H. Michael Lynch, Esq., and Gary O. Ravert, Esq., at Lynch & Associates. CLINTON COURT: Lender Says Receiver Should Continue Role -------------------------------------------------------- TD Bank N.A. is asking the Bankruptcy Court to allow Kevin J. Cahill -- the state court appointed receiver of parcels of real property located at 525 Clinton Avenue and 508 Waverly Avenue, in Brooklyn, owned by Clinton Court Development LLC -- to continue his receivership postpetition. TD Bank loaned more than $26 million to the Debtor for, among other things, the construction of a 13-story condominium project on the Clinton Property. TD Bank said the Debtor's chapter 11 filing, coming on the eve of the state court-ordered foreclosure sale, is but another transparent attempt to delay the enforcement of TD Bank's rights in an effort to coerce a sale of the Loan to the Debtor's principals at a substantial discount. The lender argued there is no legitimate restructuring intended or possible in the Debtor's case. It is patently clear that the full recourse nature of the Loan, the Debtor's conduct, and the filing of the chapter 11, taken together, demonstrate that the Debtor's primary, if not its only, concern is the well being of its principals who are guarantors of the Debtor's secured obligations and who seek to avoid their obligations under the guaranties. TD Bank said the Court should not countenance the Debtor's or its principals' improper use of the chapter 11 process. The Debtor's indisputable lack of cash flow, lack of equity, inability to reorganize, misuse of the $26 million in funds already advanced to it, and, ultimately, complete abandonment of the Clinton Property construction, all of which has harmed TD Bank and all parties in interest, compels a finding that the Debtor should not be restored to possession of the properties. About Clinton Court Development Clinton Court Development LLC, the owner of a 13-story mixed-use building on Clinton Avenue in Brooklyn filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-14673) on Oct. 5, 2011, claiming the property is worth about $17 million. Mortgages total roughly $42.3 million. The primary secured creditor is TD Bank NA. The Company also owns a two-story commercial building on Waverly Avenue in Brooklyn. Judge Robert E. Gerber presides over the case. The Debtor is represented by Robert R. Leinwand, Esq., at Robinson Brog Leinwand Greene Genovese & Gluck P.C. as counsel. The Debtor scheduled $17,210,000 in assets and $47,347,150 in debts. The petition was signed by David Weiss, manager. Attorneys for TD Bank N.A. are: H. Michael Lynch, Esq. Gary O. Ravert, Esq. LYNCH & ASSOCIATES 462 Seventh Avenue, 12th Floor New York, NY 10018 Tel: (212) 683-4141 Fax: (212) 683-2669 COLORADO SPORTS: Case Summary & 15 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Colorado Sports Group, LLC 16240 Old Denver Highway Monument, CO 80132 Bankruptcy Case No.: 11-34106 Chapter 11 Petition Date: October 12, 2011 Court: U.S. Bankruptcy Court District of Colorado (Denver) Judge: Michael E. Romero Debtor's Counsel: Harvey Sender, Esq. SENDER & WASSERMAN, P.C. 1660 Lincoln Street, Suite 2200 Denver, CO 80264 Tel: (303) 296-1999 Fax: (303) 296-7600 E-mail: Sendertrustee@sendwass.com - and ? John B. Wasserman, Esq. SENDER & WASSERMAN, P.C. 1660 Lincoln Street, Suite 2200 Denver, CO 80264 Tel: (303) 296-1999 E-mail: jwass@sendwass.com - and ? Matthew T. Faga, Esq. SENDER & WASSERMAN, P.C. 1660 Lincoln Street, Suite 2200 Denver, CO 80264 Tel: (303) 296-1999 Fax: (303) 296-7600 E-mail: faga@sendwass.com Scheduled Assets: $2,554,264 Scheduled Debts: $4,106,595 The Company's list of its 15 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/cob11-34106.pdf The petition was signed by Gary Dylewski, manager. COMMUNITY TOWERS: Section 341(a) Meeting Scheduled for Oct. 26 -------------------------------------------------------------- The U.S. Trustee for Region 17 will convene a meeting of creditors of Community Towers I LLC on Oct. 26, 2011, at 10:30 a.m. The meeting will be held at San Jose Room 268. Creditors are required to submit their proofs of claim by Jan. 24, 2012. 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. Community Towers I LLC is a real estate investment company. Community Towers I LLC and various affiliates -- Community Towers II, LLC, Community Towers III, LLC, Community Towers IV, LLC -- filed a Chapter 11 petition (Bankr. N. D. Calif. Lead Case Case No. 11-58944) on Sept. 26, 2011, in San Jose, California. John Walshe Murray, Esq., at the Law Offices of Murray and Murray, in Cupertino, California, serves as counsel to the Debtor. Community Towers I LLC estimated up to $50 million in both assets and debts. COPPER CREEK: Case Summary & 7 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Copper Creek, LLC 399 N. Old US 23 Brighton, MI 48144 Bankruptcy Case No.: 11-10235 Chapter 11 Petition Date: October 12, 2011 Court: U.S. Bankruptcy Court Middle District of Tennessee (Nashville) Judge: Keith M. Lundin Debtor's Counsel: Elliott Warner Jones, Esq. EMERGE LAW, PLC 1600 Division Street, Suite 675 Nashville, TN 37203 Tel: (615) 916-5264 E-mail: elliott@emergelaw.net - and ? Warner Jones, Esq. EMERGE LAW PLC 1600 Division Street, Suite 675 Nashville, TN 37203 Tel: (615) 916-5262 Fax: (615) 916-5261 E-mail: warner@emergelaw.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its seven largest unsecured creditors is available for free at http://bankrupt.com/misc/tnmb11-10235.pdf The petition was signed by Gordon Follmer, managing member. COPPER CREEK: With Zero Cash Flow, Court Dismisses Case ------------------------------------------------------- Bankruptcy Judge Timothy J. Mahoney granted the request of Copper Creek Estates - Grand Island, L.L.C., to dismiss its chapter 11 case, over the objection of Chief Industries, Inc. Chief argued that the Debtor should not be allowed to come into the bankruptcy court for the sole purpose of attempting to get rid of restrictive covenants, and then, when it loses, to simply dismiss the case. Chief suggests that the Debtor could hold an auction to sell the real estate or sell it pursuant to 11 U.S.C. Sec. 363, free and clear of liens. The bankruptcy court could then supervise the distribution of proceeds of the sale. The judge, however, held that the debtor has shown cause for dismissal: It has no sales and, therefore, it has no cash flow. With no cash flow, it will be unable, without help from investors, to pay taxes, United States trustee fees, insurance premiums, maintenance expenses or attorney fees. It has shown continuing loss or diminution of the estate because of the lack of cash flow and the absence of a reasonable likelihood of rehabilitation. It has not timely filed a disclosure statement or plan. Copper Creek Estates - Grand Island, L.L.C., owns land in Hall County, Nebraska, which it has attempted to develop as a residential subdivision. Prior to bankruptcy, the Debtor obtained investment money from a number of investors and granted a mortgage to Five Points Bank in Grand Island in return for a relatively large loan. In addition, it received $1,000,000 from Chief Industries, Inc., a manufacturer of modular homes. It entered into an agreement with Chief whereby purchasers of lots in the development would be restricted to purchasing modular homes from Chief and would be unable to purchase homes from any other company or have their own home built. The agreement included restrictive covenants which were recorded in the Hall County land records. A copy of the Court's Oct. 11, 2011 Order is available at http://is.gd/GIb5d6from Leagle.com. About Copper Creek Estates Based in Sutton, Nebraska, Copper Creek Estates-Grand Island, LLC, develops land in Hall County, Nebraska. Once developed, the platted lots were to be sold for use by purchasers for construction of personal residences. Copper Creek filed for bankruptcy (Bankr. D. Neb. Case No. 11-40496) on Feb. 28, 2011. Trev Peterson, Esq. -- tpeterson@knudsenlaw.com -- at Knudsen Berkheimer Richardson Endacott, serves as the Debtor's counsel. The Debtor scheduled assets of $2,766,657 and liabilities of $4,807,631. The petition was signed by Jim Van Kirk, manager. D&P INVESTMENT: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: D&P Investment Company, LLC P.O. Box 8092 Glenn Ridge, NJ 07208 Bankruptcy Case No.: 11-39608 Chapter 11 Petition Date: October 12, 2011 Court: U.S. Bankruptcy Court District of New Jersey (Newark) Judge: Novalyn L. Winfield Debtor's Counsel: David I. Flamholz, Esq. RUBIN & DOMBECK LLC 1415 Queen Anne Road Teaneck, NJ 07666 Tel: (201) 578-1578 Fax: (201) 837-8413 E-mail: david@rdlawllc.com Scheduled Assets: $950,000 Scheduled Debts: $1,458,843 The Company's list of its three largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/njb11-39608.pdf The petition was signed by Dennis Loggins, sole member. DP FOREST: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: DP Forest Products,Inc. fka Lodge Log Homes, Inc. fka Balbach Logging, Inc. fka Treasure Valley Forest Products, LLC 7789 S Federal Way Boise, ID 83706 Bankruptcy Case No.: 11-03047 Chapter 11 Petition Date: October 10, 2011 Court: United States Bankruptcy Court District of Idaho (Boise) Judge: Jim D. Pappas Debtor's Counsel: D Blair Clark, Esq. LAW OFFICES OF D. BLAIR CLARK PLLC 1513 Tyrell Lane, Suite 130 Boise, ID 83706 Tel: (208) 475-2050 Fax: (208) 475-2055 E-mail: dbc@dbclarklaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/idb11-03047.pdf The petition was signed by Dan Balbach, president. DALLAS STARS: 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 Dallas Stars, L.P. 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. Frisco, Texas-based Dallas Stars, L.P. -- http://stars.nhl.com/-- operates as a professional men's ice hockey team. The company was formerly known as Minnesota North Stars and changed its name to Dallas Stars, L.P. in 1993. Dallas Stars and three affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 11-12935 to 11-12938) on Sept. 15, 2011. The affiliates are Dallas Arena LLC, Dallas Stars U.S. Holdings Corporation, and StarCenters LLC. Judge Peter J. Walsh presides over the cases. Martin A. Sosland, Esq., and Ronit J. Berkovich, Esq., at Weil, Gotshal & Manges LLP, serve as bankruptcy counsel to the Debtors. John H. Knight, Esq., at Richards Layton & Finger, P.A., serves as the Debtors' Delaware counsel. The Garden City Group, Inc., as their notice, claims, and solicitation agent. KPMG LLP serves as the Debtors' auditor, tax advisor, and bankruptcy administration consultant. Dallas Stars estimated $100 million to $500 million in assets and debts in its petition. The petitions were signed by Robert L. Hutson, chief financial officer. The team is owned by Dallas businessman Thomas O. Hicks' HSG Sports Group. Mr. Hicks was the former owner of the Texas Rangers. The Texas Rangers were sold in a bankruptcy court- supervised auction to a group led by Hall of Fame pitcher Nolan Ryan for $593 million. The Stars are the second NHL team to file for bankruptcy since 2009, after the Phoenix Coyotes. Counsel to JP Morgan Chase Bank, N.A., as Prepetition First Lien Agent, is Mitchell A. Seider, Esq., and Joseph Fabiani, Esq., at Latham & Watkins LLP. Its Delaware counsel is Michael R. Lastowski, Esq., at Duane Morris LLP. First lien lender Monarch Alternative Capital LLC is represented by Andrew M. Leblanc, Esq., at Milbank Tweed Hadley and McCloy LLP. Counsel to the NHL are Thomas W. Gowan, Esq., and J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP. Counsel to GSP Finance LLC, as successor in interest to Barclays Bank PLC, as Prepetition Second Lien Agent, is Jason Young, Esq., at Clifford Chance US LLP. DELTA AIR: DOT APPROVES US Airways Takeoff Landing Rights Swap -------------------------------------------------------------- The U.S. Department of Transportation has approved a deal that gives Delta Air Lines, Inc. 132 additional slots at New York LaGuardia International Airport and US Airways Group, Inc. 42 more slots at Reagan National Airport in Washington, D.C., according to a report by The Charlotte Business Journal on October 13, 2011. The two airlines have been asking the Department of Transportation to approve the deal for two years. About Delta Air Lines Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or http://www.nwa.com/-- provides scheduled air transportation for passengers and cargo throughout the United States, and around the world. The Company's route network is centered on the hub system it operate at airports in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo- Narita. The hub operations include flights, which gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The network is supported by a fleet of aircraft, which is varied in terms of size and capabilities. On Dec. 31, 2009, the Company's wholly owned subsidiary Northwest Airlines, Inc., merged with and into Delta. The wholly owned subsidiary of the Company is Northwest Airlines Corporation. Northwest and 12 affiliates filed for Chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). On May 21, 2007, the Court confirmed the Northwest Debtors' amended plan. That amended plan took effect May 31, 2007. Delta and 18 affiliates filed for Chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented the Delta Debtors in their restructuring efforts. On April 25, 2007, the Court confirmed the Delta Debtors' plan. That plan became effective on April 30, 2007. (Bankruptcy Creditors Service Inc. publishes Delta Air Lines Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000). * * * Delta Air Lines and Northwest Airlines carry a 'B/Stable/--' corporate ratings from Standard & Poor's. They also continue to carry 'B2' corporate family ratings from Moody's and "B-" LT Issuer Default rating from Fitch. S&P said at the end of February 2011 that its ratings on Atlanta, Ga.-based Delta Air Lines Inc. reflect its highly leveraged financial profile, with significant intermediate-term debt maturities, and the risks associated with participation in the price-competitive, cyclical, and capital-intensive airline industry. The ratings also incorporate the reduced debt load and operating costs Delta achieved while in Chapter 11 in 2005-2007, and its enhanced competitive position and synergistic opportunities associated with its 2008 merger with Northwest Airlines Corp. (parent of Northwest Airlines Inc.), with the two airlines fully integrated in December 2009. S&P characterize Delta's business risk profile as weak and its financial risk profile as highly leveraged. DELTA AIR: Techops Signs Five-Year Engine Maintenance Contract -------------------------------------------------------------- Delta Air Lines' maintenance division, Delta TechOps, has signed a five-year, exclusive agreement with Air Canada to provide repair and overhaul services to the airline's entire fleet of Pratt & Whitney (PW) 4060 engines. "This partnership is a direct reflection of the dedication and professionalism of the men and women of Delta TechOps and their global reputation for delivering the highest quality work, along with the most comprehensive support in the industry," said Tony Charaf, president-Delta TechOps. The time and materials with flat rates agreement covers Air Canada's 18 PW4060 engines with four spares, three of which already are inducted at Delta TechOps. This fleet of engines powers nine of Air Canada's Boeing 767 aircraft. "Delta TechOps was the obvious choice - they share our focus on quality and safety, as well as bring the technical expertise, service level and flexibility we need as Canada's largest airline," said Alan Butterfield, vice president of Maintenance and Engineering for Air Canada. "TechOps' operational experience with this engine type and overall competitive service offerings were the primary reasons we chose them for this contract." About Air Canada Air Canada operates a main fleet of more than 200 aircraft, including Boeing 777/767, Airbus 330/320 and Embraer 190/170s. Air Canada recently received several prestigious industry awards, including Business Traveler magazine's "Best in Business Travel," "Best Flight Attendants in North America," "Best In-flight Services in North America," "Best North America Airline for Business Class Service," "Best North American Airline for International Travel," "Best Airline Website" and "Best Airline in North America." Air Canada also was ranked "Best International Airline in North America" for the second consecutive year in a worldwide survey of more than 18 million travelers conducted by independent research firm Skytrax. In the air transportation industry, this annual survey is regarded as a primary benchmarking tool for passenger satisfaction with airlines throughout the world. Air Canada is Canada's largest domestic and international full-service airline providing scheduled and charter air transportation for passengers and cargo from 60 communities large and small across Canada to more than 175 destinations on five continents. Canada's flag carrier is the 15th largest commercial airline in the world and serves 31 million customers annually. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,172 airports in 181 countries. Air Canada customers can collect Aeroplan miles for future rewards through Canada's leading loyalty program, and Top Tier members enjoy reciprocal frequent flyer benefits including lounge and priority services. About Delta Air Lines Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or http://www.nwa.com/-- provides scheduled air transportation for passengers and cargo throughout the United States, and around the world. The Company's route network is centered on the hub system it operate at airports in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo- Narita. The hub operations include flights, which gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The network is supported by a fleet of aircraft, which is varied in terms of size and capabilities. On Dec. 31, 2009, the Company's wholly owned subsidiary Northwest Airlines, Inc., merged with and into Delta. The wholly owned subsidiary of the Company is Northwest Airlines Corporation. Northwest and 12 affiliates filed for Chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). On May 21, 2007, the Court confirmed the Northwest Debtors' amended plan. That amended plan took effect May 31, 2007. Delta and 18 affiliates filed for Chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented the Delta Debtors in their restructuring efforts. On April 25, 2007, the Court confirmed the Delta Debtors' plan. That plan became effective on April 30, 2007. (Bankruptcy Creditors Service Inc. publishes Delta Air Lines Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000). * * * Delta Air Lines and Northwest Airlines carry a 'B/Stable/--' corporate ratings from Standard & Poor's. They also continue to carry 'B2' corporate family ratings from Moody's and "B-" LT Issuer Default rating from Fitch. S&P said at the end of February 2011 that its ratings on Atlanta, Ga.-based Delta Air Lines Inc. reflect its highly leveraged financial profile, with significant intermediate-term debt maturities, and the risks associated with participation in the price-competitive, cyclical, and capital-intensive airline industry. The ratings also incorporate the reduced debt load and operating costs Delta achieved while in Chapter 11 in 2005-2007, and its enhanced competitive position and synergistic opportunities associated with its 2008 merger with Northwest Airlines Corp. (parent of Northwest Airlines Inc.), with the two airlines fully integrated in December 2009. S&P characterize Delta's business risk profile as weak and its financial risk profile as highly leveraged. DELTA AIR: Virgin Trans-Pacific Codeshare to Launch Nov. 6 ---------------------------------------------------------- Delta Air Lines (NYSE: DAL) and Virgin Australia Airlines announced two major milestones of their recently approved joint venture: an expanded codesharing agreement on flights between the United States and Australia, and an enhanced customer experience in Los Angeles. Codeshare service will be available for sale beginning Sept. 19, 2011, for travel effective Nov. 6, 2011. Under the agreement, Delta will add its code to all flights between Los Angeles and the Australian cities Sydney, Melbourne and Brisbane, operated by V Australia, Virgin Australia's long-haul international carrier. V Australia will add its code to Delta's service between Los Angeles and Sydney. For customers, the expanded codesharing means more options when booking trans-Pacific travel on Delta or V Australia, as well as benefits such as accrual of frequent flier miles and premium lounge access regardless of which airline operates the flight. To further improve the customer experience, from November, flights operated by V Australia will arrive at Delta's Terminal 5 at Los Angeles International Airport. This will allow for easier and faster connections within the same terminal to the rest of Delta's network, as well as access to new customs and immigration facilities in Terminal 5. "The start of trans-Pacific codesharing and arrival co- location at T5 in Los Angeles mark the first major steps toward establishing our joint venture, which will provide significant benefits for our customers," said Charlie Pappas, Delta's vice president - Alliances. "Together, Delta and Virgin Australia will offer a leading network and a superior travel experience for our customers flying between the U.S. and Australia." Virgin Australia Group Executive, Merren McArthur said: "Since receiving U.S. government approval in June, Delta and Virgin Australia have moved quickly to deliver the consumer benefits that are enabled by our joint venture. The joint venture will allow us to offer more choice and a more seamless travel experience from November, providing guests with three trans-Pacific services per day and allowing us to spread our respective departure times out of Sydney to improve connections. "The next milestone will be the expansion of the existing domestic codeshare on each airline's domestic network, further improving connectivity of our services and giving Virgin Australia guests access to 250 destinations across the United States, Canada and Mexico," Ms. McArthur said. Following the U.S. Department of Transportation's approval of antitrust immunity for Delta and Virgin Australia on trans- Pacific flights in June, the two airlines have been working closely on expanding codesharing, coordinating products and services and extending frequent flyer program benefits and lounge access to customers of both carriers. The joint venture will create a comprehensive, fully integrated network able to serve thousands of city-pairs in North America and the South Pacific, providing numerous destinations which otherwise would not be accessible to customers. The trans-Pacific codesharing agreement is the latest expansion of the partnership between the two airlines. In May, Delta and Virgin Australia announced an enhanced codeshare that added Delta's code to Virgin Australia flights to five destinations in Australia, and added Virgin Australia's code on Delta service to four new cities in the United States. About Virgin Australia group of airlines Virgin Australia group of airlines (ASX: VBA), formerly the Virgin Blue group of airlines, was launched in 2000 and has since established a global reputation as an innovator and leader in the aviation industry; renowned for the warmth of its people and the quality of the service they provide. Today the group employs over 7,000 people and includes multi-award winning domestic airline Virgin Australia (formerly Virgin Blue); international long-haul airline V Australia, international subsidiary airline Pacific Blue; and Polynesian Blue, a joint venture airline with the Government of Samoa. Virgin Australia group of airlines is currently in the process of re-launching its domestic and short- haul international product, and both V Australia and Pacific Blue airlines will operate as Virgin Australia by the end of 2011. The group also includes multi-award winning frequent flyer and loyalty program, Velocity, and holiday arm, Blue Holidays. The group operates a fleet of 89 modern Boeing 737, 777 and Embraer E-Jet aircraft flying to 32 Australian and 16 international destinations including the USA, UAE, New Zealand, Indonesia, Thailand, Papua New Guinea, Fiji, Samoa, Tonga, Vanuatu and the Cook Islands. Virgin Australia group of airlines has alliances with Etihad Airways and Air New Zealand and has recently announced partnerships with Singapore Airlines and Skywest Airlines which will see it expand its footprint in Asia and regional Australia. About Delta Air Lines Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or http://www.nwa.com/-- provides scheduled air transportation for passengers and cargo throughout the United States, and around the world. The Company's route network is centered on the hub system it operate at airports in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo- Narita. The hub operations include flights, which gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The network is supported by a fleet of aircraft, which is varied in terms of size and capabilities. On Dec. 31, 2009, the Company's wholly owned subsidiary Northwest Airlines, Inc., merged with and into Delta. The wholly owned subsidiary of the Company is Northwest Airlines Corporation. Northwest and 12 affiliates filed for Chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). On May 21, 2007, the Court confirmed the Northwest Debtors' amended plan. That amended plan took effect May 31, 2007. Delta and 18 affiliates filed for Chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented the Delta Debtors in their restructuring efforts. On April 25, 2007, the Court confirmed the Delta Debtors' plan. That plan became effective on April 30, 2007. (Bankruptcy Creditors Service Inc. publishes Delta Air Lines Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000). * * * Delta Air Lines and Northwest Airlines carry a 'B/Stable/--' corporate ratings from Standard & Poor's. They also continue to carry 'B2' corporate family ratings from Moody's and "B-" LT Issuer Default rating from Fitch. S&P said at the end of February 2011 that its ratings on Atlanta, Ga.-based Delta Air Lines Inc. reflect its highly leveraged financial profile, with significant intermediate-term debt maturities, and the risks associated with participation in the price-competitive, cyclical, and capital-intensive airline industry. The ratings also incorporate the reduced debt load and operating costs Delta achieved while in Chapter 11 in 2005-2007, and its enhanced competitive position and synergistic opportunities associated with its 2008 merger with Northwest Airlines Corp. (parent of Northwest Airlines Inc.), with the two airlines fully integrated in December 2009. S&P characterize Delta's business risk profile as weak and its financial risk profile as highly leveraged. EAGLE INDUSTRIES: Nov. 10 Plan Confirmation Hearing Set ------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Kentucky has approved the disclosure statement explaining the Chapter 11 Plan of Eagle Industries, LLC, dated as of Aug. 22, 2011. The hearing to consider confirmation of the Debtor's Chapter 11 Plan will be held on Nov. 17, 2011, at 11:00 a.m. The Court also ordered that ballots will be mailed to counsel for the Debtor and that objections to confirmation of the Debtor's Plan be filed with the Court on or before Nov. 10, 2011. As reported in the Troubled Company Reporter on Aug. 25, 2011, the Plan contemplates that canceling of existing equity interests in the Debtor while general unsecured claims will share in the distribution of $100,000 approximately 60 days after the effective date. The Plan provides that the Debtor will continue to operate their businesses and manage their assets, which will generate income projected to be sufficient for the Debtor to meet their ongoing operating expenses and obligations contemplated under the Plan. The Plan classifies, and proposes to treat, claims as follows: A. Administrative Expenses - To be paid in full on the Effective Date of the Plan, or according to terms of obligation. B. Priority Tax Claims - Will receive the present value of the claim, in regular installments paid over a period not exceeding five years. C. Super-Priority Claims - The super-priority claims of Citizens First Bank will be paid in full in accordance with the terms of the cash collateral order. The super-priority claim of subordinate DIP lenders will have his Super-Priority Claim satisfied in full on the Effective Date upon issuance and pro rata distribution of new membership interests in each of the Debtor. D. Secured Claims - Citizens First Bank will retain its liens and have its Secured Claim paid in full in accordance with the terms of the cash collateral order. PBI Bank will retain its liens and have its Secured Claim paid in full through regular monthly cash payments to cover principal and interest accruing under the terms of the prepetition promissory note through the end of 2014. From 2015 to 2021, the regular monthly cash payments will increase to $65,941. In 2022, the Debtor will make 12 regular monthly payments of $70,941. On Aug. 1, 2022, the Debtor will pay the remaining principal and all accrued but unpaid interest due. PNC Equipment Finance will retain its lien and have its Secured Claim paid in full according to the terms of the parties' Sale Agreement. E. General Unsecured Claims - Will receive cash payments representing its pro rata share of $100,000 beginning 60 days after effective date. F. Equity Interest Holders - Existing membership interests will be canceled. A full-text copy of the Disclosure Statement, as amended, is available for free at: http://bankrupt.com/misc/EAGLE_disclosurestatement.pdf About Eagle Industries LLC Bowling Green, Kentucky-based Eagle Industries LLC is engaged in furniture manufacturing, sales and delivery. Eagle Industries filed for Chapter 11 bankruptcy protection (Bankr. W.D. Ky. Case No. 10-11636) on Oct. 27, 2010. David M. Cantor, Esq., at Seiller Waterman LLC, represents the Debtor. The Debtor estimated assets and debts at $10 million to $50 million. Peter M. Gannott, Esq., at Alber Crafton, P.S.C., in Louisville, Ky., represents the Official Unsecured Creditors' Committee as counsel. EASLEY REAL: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Easley Real Estate, LLC P.O. Box 1946 Easley, SC 29641 Bankruptcy Case No.: 11-06351 Chapter 11 Petition Date: October 12, 2011 Court: U.S. Bankruptcy Court District of South Carolina (Spartanburg) Judge: Helen E. Burris Debtor's Counsel: Robert A. Pohl, Esq. STODGHILL LAW FIRM CHARTERED 201 East McBee Avenue, Suite 300A Greenville, SC 29601 Tel: (864) 271-0966 Fax: (864) 770-6167 E-mail: rpohl@stodghill-law.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/scb11-06351.pdf The petition was signed by Daniel "Ty" Schmidt, sole memmber. FANNIE MAE: Lawmaker Questions Fannie's Event Sponsorship --------------------------------------------------------- American Bankruptcy Institute reports that while almost 3,000 people descended last week on Chicago for the 98th annual convention of the Mortgage Bankers Association, Fannie Mae and Freddie Mac, both of which required a government rescue, drew the ire of a lawmaker after it was found that the GSEs paid $80,000 and $60,000 respectively to become sponsors of the event. About Fannie Mae Federal National Mortgage Association, aka Fannie Mae, is a government-sponsored enterprise that was chartered by U.S. Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. The Company's balance sheet at Dec. 31, 2010 showed $3.222 trillion in total assets, $3.224 trillion in total liabilities, and a $2.52 billion total deficit. Fannie Mae has been under conservatorship, with the Federal Housing Finance Agency acting as conservator, since September 6, 2008. As conservator, FHFA succeeded to all rights, titles, powers and privileges of the company, and of any shareholder, officer or director of the company with respect to the company and its assets. The conservator has since delegated specified authorities to Fannie Mae's Board of Directors and has delegated to management the authority to conduct day-to-day operations. The U.S. Department of the Treasury owns Fannie Mae's senior preferred stock and a warrant to purchase 79.9% of its common stock, and Treasury has made a commitment under a senior preferred stock purchase agreement to provide Fannie with funds under specified conditions to maintain a positive net worth. FLINTKOTE COMPANY: Inks Deal to Dismiss Suit Vs. NJDEP, et al. -------------------------------------------------------------- The Flintkote Company has signed an agreement, which calls for the dismissal of a lawsuit it filed against the New Jersey Department of Environmental Protection and its commissioner, and the administrator of the New Jersey Spill Compensation Fund. About The Flintkote Company Headquartered in San Francisco, California, The Flintkote Company is engaged in the business of manufacturing, processing and distributing building materials. Flintkote Mines Limited is a subsidiary of Flintkote Company and is engaged in the mining of base-precious metals. The Flintkote Company filed for Chapter 11 protection (Bankr. D. Del. Case No. 04-11300) on April 30, 2004. Flintkote Mines Limited filed for Chapter 11 relief (Bankr. D. Del. Case No. 04-12440) on Aug. 25, 2004. James E. O'Neill, Esq., Kathleen P. Makowswki, Esq., Laura Davis Jones, Esq., Sandra G.M, Selzer, Esq., and Scotta Edelen McFarland, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Debtors in their restructuring efforts. Kathleen Campbell Davis, Esq., and Mark T. Hurford, Esq., at Campbell & Levine, LLC, represent the official committee of unsecured creditors as counsel. When Flintkote Company filed for protection from its creditors, it estimated more than $100 million each in assets and debts. When Flintkote Mines Limited filed for protection from its creditors, it listed assets of $1 million to $50 million, and debts of more than $100 million. No request has been made for the appointment of a trustee or examiner in the Debtors' cases. FLORIDA LANDMASTERS: Dist. Court Won't Stay Foreclosure Judgment ---------------------------------------------------------------- District Judge Elizabeth A. Kovachevich denied the request of Florida Landmasters, LLC, to stay a bankruptcy court judgment pending appeal, saying Florida Landmasters cannot establish a likelihood of success on the merits of the appeal. The Bankruptcy Court granted a Final Summary Judgment of Foreclosure in a dispute with American Momentum Bank on July 1, 2011, and later entered a Final Judgment reflecting the amount due and the procedures for the public sale of Florida Landmasters' property in the event that the Judgment was not paid in cash on or before Oct. 12, 2011. Florida Landmasters argues that a stay is necessary to preserve the status quo by preventing the transfer of title and possession of its sole asset. American Momentum Bank commenced a mortgage foreclosure action in June 2009 against Florida Landmasters and affiliated entities pre- bankruptcy. The bank alleged that Florida Landmasters did not pay the real estate taxes for the asset as they came due for 2007 and 2008 in a total amount of over a million dollars, and has not paid the 2009 or 2010 real estate taxes. American Momentum Bank paid the real estate taxes for 2007 and 2008 in 2009. American Momentum Bank sent a demand and notice letter to the borrower on May 7, 2009, alleging that because Florida Landmasters did not pay the real estate taxes, did not reimburse the Bank for the real estate taxes paid by the Bank, and did not make regular payments on the loan, the loan was being accelerated, and demanding payment of the entire loan balance. The borrower and guarantors did not tender any of those amounts within 30 days after May 7, 2009. The case is FLORIDA LANDMASTERS, LLC, et al., Appellants, v. AMERICAN MOMENTUM BANK, Appellee, Case No. 8:11-CV-2286-T-17 (M.D. Fla.). A copy of the Court's Oct. 12, 2011 Order is available at http://is.gd/rQcbGwfrom Leagle.com. Sarasota-based Florida Landmasters LLC filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 10-29643) on Dec. 13, 2010. Judge K. Rodney May presides over the case. Don M. Stichter, Esq. -- dstichter.ecf@srbp.com -- at Stichter, Riedel, Blain & Prosser, serves as the Debtor's counsel. In its petition, the Debtor estimated under $50,000 in assets and $10 million to $50 million in debts. Twelve affiliates also filed separate Chapter 11 petitions on the same day: Chamberlain Properties LLC; Creighton Office Center LLC; Lakeside Properties LLC; North Port Hospital Holdings LLC; North Port Parkway LLC; North Port Restaurants LLC; North Port Retail Center LLC; North Port Town Center LLC; Price Health Park LLC; Price Projects LLC; Snover Development LLC; and Toledo Blade Interchange LLC. The petitions were signed by Frank Menke, III, managing member. Affiliate North Port Gateway LLC filed for Chapter 11 (Bankr. M.D. Fla. Case No. 09-06029) on March 30, 2009, estimating $10 million to $50 million in assets and debts. GENERAL MOTORS: Launches Korea Plan After Obama Signs New Deal -------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review that President Barack Obama heralded a new trade deal with South Korea at an auto plant seen as a model for the future of U.S. small-car production. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company (NYSE:GM, TSX: GMM) -- http://www.gm.com/-- is one of the world's largest automakers, traces its roots back to 1908. GM employs 208,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GM's largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. was formed to acquire the operations of General Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The U.S. government once owned as much as 60.8% stake in New GM on account of the financing it provided to the bankrupt entity. The deal was closed July 10, 2009, and Old GM changed its name to Motors Liquidation Co. New GM has a 'BB-' corporate credit rating from Standard & Poor's and a 'BB-' issuer default rating from Fitch. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP serve as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long serve as counsel regarding supplier contract matters. FTI Consulting, Inc., serves as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Asbestos Committee. Legal Analysis Systems, Inc., serves as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. GERMANN ROAD: Case Summary & 3 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Germann Road, LLC 4734 W. Creedance Blvd. Glendale, AZ 85310 Bankruptcy Case No.: 11-28548 Chapter 11 Petition Date: October 10, 2011 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Randolph J. Haines Debtor's Counsel: Pernell W. McGuire, Esq. DAVIS MILES, PLLC AND MCGUIRE GARDNER, a division of Davis Miles, PLLC 320 N. Leroux Street, Suite A Flagstaff, AZ 86001 Tel: (928) 779-1173 Fax: (877) 715-7366 E-mail: pmcguire@davismiles.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb11-28548.pdf The petition was signed by Leslie White, manager. GRACEWAY PHARMA: Court Clears Galderma to Serve as Lead Bidder -------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review that Graceway Pharmaceuticals LLC won permission to sell its prescription skin cream business for $275 million cash to a European pharmaceutical company, subject to higher bids at a bankruptcy auction, after creditors withdrew their objection to the proposal. Graceway proposed a Nov. 3 auction. Holders of 40% of the first-lien debt consent to the sale, Graceway said. About Graceway Pharmaceuticals Based in Bristol, Tennessee, Graceway Pharmaceuticals LLC engages in pharmaceutical development. The company offers dermatology, respiratory, and women's health products. Its Zyclara Cream is used for the treatment of external genital and perianal warts (EGW) in patients 12 years of age and older. The company offers products for the treatment of dermatology conditions, such as actinic keratosis, superficial basal cell carcinoma, external genital warts, atopic dermatitis, and acne; and respiratory conditions, such as asthma. Graceway Pharmaceuticals and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 11-13036) on Sept. 29, 2011. Graceway intends to sell essentially all of its assets pursuant to Section 363 of the Bankruptcy Code. Switzerland's Galderma SA has been selected as a stalking horse bidder, but the final buyer will be determined through an auction process and, ultimately, by the Bankruptcy Court over the course of the next few months. The company's debt includes $430.7 million owing on a first-lien revolving credit and term loan. Second-lien debt is $330 million, with mezzanine debt totaling another $81.4 million. The company said the sale has the consent of holders of 40% of the first-lien debt, which means the sale could be opposed by holders of 60% of the senior debt. Attorneys at Young Conaway Stargatt & Taylor LLP serve as counsel to the Debtors. Latham & Watkins LLP is the co-counsel. Alvarez and Marsal North America, LLC, is the financial advisor. Lazard Freres & Co. LLC is the investment banker. PricewaterhouseCoopers LLP is the tax consultant. Lowenstein Sandler PC serves as the committee counsel. GRACEWAY PHARMA: Court Extends Schedules Filing to Nov. 28 ---------------------------------------------------------- The Bankruptcy Court extended the deadline for Graceway Pharmaceuticals LLC and its debtor-affiliates to file their schedules of assets and liabilities and statements of financial affairs until Nov. 28, 2011. The Debtors have told the Court they couldn't file their schedules and statements within the first 30 days of the case in view of the complexity and diversity of their operations. About Graceway Pharmaceuticals Based in Bristol, Tennessee, Graceway Pharmaceuticals LLC offers dermatology, respiratory, and women's health products. Its Zyclara Cream is used for the treatment of external genital and perianal warts (EGW) in patients 12 years of age and older. The company offers products for the treatment of dermatology conditions, such as actinic keratosis, superficial basal cell carcinoma, external genital warts, atopic dermatitis, and acne; and respiratory conditions, such as asthma. Graceway Pharmaceuticals and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 11-13036) on Sept. 29, 2011. Graceway intends to sell essentially all of its assets pursuant to Section 363 of the Bankruptcy Code. Switzerland's Galderma SA has been selected as a stalking horse bidder, but the final buyer will be determined through an auction process and, ultimately, by the Bankruptcy Court over the course of the next few months. The company's debt includes $430.7 million owing on a first-lien revolving credit and term loan. Second-lien debt is $330 million, with mezzanine debt totaling another $81.4 million. The company said the sale has the consent of holders of 40% of the first-lien debt, which means the sale could be opposed by holders of 60% of the senior debt. Attorneys at Young Conaway Stargatt & Taylor LLP serve as counsel to the Debtors. Latham & Watkins LLP is the co-counsel. Alvarez and Marsal North America, LLC, is the financial advisor. Lazard Freres & Co. LLC is the investment banker. PricewaterhouseCoopers LLP is the tax consultant. BMC Group serves as the claims and notice agent. Roberta A. DeAngelis, the United States Trustee for Region 3, appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors. Lowenstein Sandler PC serves as the committee counsel. GRACEWAY PHARMA: Hires Lazard Freres as Investment Banker --------------------------------------------------------- Graceway Pharmaceuticals LLC seeks to hire Lazard Freres & Co. LLC as investment banker to, among other things: a. review and analyze the Debtors' business, operations and financial projections; b. evaluate the Debtors' potential debt capacity in the light of its projected cash flows; and c. assist in the determination of an optimal capital structure for the Debtors. The Debtors propose to pay Lazard Freres according to this fee structure: a. a monthly fee of $175,000, b. a fee equal to $4,000,000 payable upon the consummation of a Restructuring, c. a Sale Transaction Fee of $4,000,000, if the Company has requested and Lazard has agreed to provide services in respect of a Sale Transaction; d. if the Company has requested and Lazard has agreed to provide services in respect of a Financing, a fee, payable upon consummation of a financing, equal to the amount set forth in the Financing Fee. One-half of any Financing Fee(s) paid shall be credited against any Restructuring Fee or Sale Transaction Fee subsequently payable; e. a so-called Designated Amended Fee of $250,000; f. for the avoidance of any doubt, more than one fee may be payable; provided that in no case will a restructuring fee a sale transaction fee be payable at the same time; g. the Company will reimburse expenses incurred by Lazard; and h. the Company will indemnify Lazard. Daniel M. Aronson, managing director of Lazard Freres, attests that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code. He may be reached at: Daniel M. Aronson Managing Director LAZARD FRERES & CO LLC 190 S La Salle St Fl 31 Chicago, IL 60603-3498 USA Tel: (312) 407-6671 Fax: (212) 830-3560 fax E-mail: daniel.aronson@lazard.com About Graceway Pharmaceuticals Based in Bristol, Tennessee, Graceway Pharmaceuticals LLC offers dermatology, respiratory, and women's health products. Its Zyclara Cream is used for the treatment of external genital and perianal warts (EGW) in patients 12 years of age and older. The company offers products for the treatment of dermatology conditions, such as actinic keratosis, superficial basal cell carcinoma, external genital warts, atopic dermatitis, and acne; and respiratory conditions, such as asthma. Graceway Pharmaceuticals and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 11-13036) on Sept. 29, 2011. Graceway intends to sell essentially all of its assets pursuant to Section 363 of the Bankruptcy Code. Switzerland's Galderma SA has been selected as a stalking horse bidder, but the final buyer will be determined through an auction process and, ultimately, by the Bankruptcy Court over the course of the next few months. The company's debt includes $430.7 million owing on a first-lien revolving credit and term loan. Second-lien debt is $330 million, with mezzanine debt totaling another $81.4 million. The company said the sale has the consent of holders of 40% of the first-lien debt, which means the sale could be opposed by holders of 60% of the senior debt. Attorneys at Young Conaway Stargatt & Taylor LLP serve as counsel to the Debtors. Latham & Watkins LLP is the co-counsel. Alvarez and Marsal North America, LLC, is the financial advisor. PricewaterhouseCoopers LLP is the tax consultant. BMC Group, Inc is the notice, claims, and balloting agent. Roberta A. DeAngelis, the United States Trustee for Region 3, appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors. Lowenstein Sandler PC serves as the committee counsel. GRACEWAY PHARMA: Seeks to Employ PwC as Tax Consultant ------------------------------------------------------ Graceway Pharmaceuticals LLC asks permission from the U.S. Bankruptcy Court for the District of Delaware to employ PricewaterhouseCoopers LLP as tax consultant. Upon retention, the firm will, among other things: a. advise the Debtors in identifying the potential federal, international, state and local income tax implications associated with any proposed restructuring alternatives to be evaluated by the Debtors which may include, but not limited to, disposition of assets, debt-for equity exchanges, rationalizations, or wind-down of the Debtors' corporate structure or other strategic alternatives; b. assist the Debtor with their determination of the potential amount of cancellation of the indebtedness income and in its determination for the effect of tax attribute reductions under Sec. 108 of the Internal Revenue Code and applicable state tax laws associated with any proposed restructuring alternatives to be evaluated by the Debtors giving consideration to various elections that maybe beneficial to the Debtors; and c. assist the Debtors with their determination of whether and when an ownership change within the meaning of IRC Sec. 382 may occur as a result of any of the proposed restructuring alternatives to be evaluated by the Debtors, including evaluation of any beneficial elections that may be made by the Debtors contained in IRC Sec. 382. The firm's rates are: Personnel Rates --------- ----- Partner $625-$680/hour Director $355-$425/hour Manager $265-340/hour Senior Associate $210-$240/hour Associate $135-$165/hour Mark Yarbrough, partner at PricewaterhouseCoopers LLP, attests that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code. About Graceway Pharmaceuticals Based in Bristol, Tennessee, Graceway Pharmaceuticals LLC offers dermatology, respiratory, and women's health products. Its Zyclara Cream is used for the treatment of external genital and perianal warts (EGW) in patients 12 years of age and older. The company offers products for the treatment of dermatology conditions, such as actinic keratosis, superficial basal cell carcinoma, external genital warts, atopic dermatitis, and acne; and respiratory conditions, such as asthma. Graceway Pharmaceuticals and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 11-13036) on Sept. 29, 2011. Graceway intends to sell essentially all of its assets pursuant to Section 363 of the Bankruptcy Code. Switzerland's Galderma SA has been selected as a stalking horse bidder, but the final buyer will be determined through an auction process and, ultimately, by the Bankruptcy Court over the course of the next few months. The company's debt includes $430.7 million owing on a first-lien revolving credit and term loan. Second-lien debt is $330 million, with mezzanine debt totaling another $81.4 million. The company said the sale has the consent of holders of 40% of the first-lien debt, which means the sale could be opposed by holders of 60% of the senior debt. Attorneys at Young Conaway Stargatt & Taylor LLP serve as counsel to the Debtors. Latham & Watkins LLP is the co-counsel. Alvarez and Marsal North America, LLC, is the financial advisor. Lazard Freres & Co. LLC is the investment banker. BMC Group, Inc is the notice, claims, and balloting agent. Roberta A. DeAngelis, the United States Trustee for Region 3, appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors. Lowenstein Sandler PC serves as the committee counsel. GRACEWAY PHARMA: Hires Young Conaway as Bankruptcy Counsel ---------------------------------------------------------- Graceway Pharmaceuticals LLC has engaged the law firm of Young Conaway Stargatt & Taylor LLP as bankruptcy attorneys to, among other things: a. provide legal advice with respect to the Debtors' powers and duties as debtors-in-possession in the continued operation of their business, management of their properties and sale of their assets; b. prepare and pursue confirmation of a plan and approval of a disclosure statement; and c. prepare on behalf of the Debtors necessary applications, motions, answers, orders, reports and other legal papers. Graceway is asking the U.S. Bankruptcy Court for the District of Delaware to approve the firm's employment. The firm's rates are: Personnel Rates --------- ----- Michael R. Nestor, Esq., Partner $625/hour Kara Hammond Coyle, Associate $395/hour Morgan L. Seward, Associate $280/hour Troy Bollman, Paralegal $140/hour Michael R. Nestor, Esq., partner at Young Conaway, attests that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code. About Graceway Pharmaceuticals Based in Bristol, Tennessee, Graceway Pharmaceuticals LLC offers dermatology, respiratory, and women's health products. Its Zyclara Cream is used for the treatment of external genital and perianal warts (EGW) in patients 12 years of age and older. The company offers products for the treatment of dermatology conditions, such as actinic keratosis, superficial basal cell carcinoma, external genital warts, atopic dermatitis, and acne; and respiratory conditions, such as asthma. Graceway Pharmaceuticals and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 11-13036) on Sept. 29, 2011. Graceway intends to sell essentially all of its assets pursuant to Section 363 of the Bankruptcy Code. Switzerland's Galderma SA has been selected as a stalking horse bidder, but the final buyer will be determined through an auction process and, ultimately, by the Bankruptcy Court over the course of the next few months. The company's debt includes $430.7 million owing on a first-lien revolving credit and term loan. Second-lien debt is $330 million, with mezzanine debt totaling another $81.4 million. The company said the sale has the consent of holders of 40% of the first-lien debt, which means the sale could be opposed by holders of 60% of the senior debt. Latham & Watkins LLP is the co-counsel. Alvarez and Marsal North America, LLC, is the financial advisor. Lazard Freres & Co. LLC is the investment banker. PricewaterhouseCoopers LLP is the tax consultant. BMC Group, Inc is the notice, claims, and balloting agent. Roberta A. DeAngelis, the United States Trustee for Region 3, appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors. Lowenstein Sandler PC serves as the committee counsel. GSC GROUP: Black Diamond Introduces Rival Plan for Bankruptcy ------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review that Black Diamond Capital Management LLC has introduced a rival plan in the bankruptcy case of GSC Group Inc., giving creditors currently considering a Chapter 11 proposal from the former investment-management firm's trustee another potential route out of bankruptcy to mull. As reported in the Oct. 12 edition of the TCR, GSC Group has already yobtained approval to send its proposed plan to creditors for voting. The Plan calls for all GSC equity interests to be canceled, and all the remaining assets -- those not included in the $235 million sale to Black Diamond Capital Management LLC -- going to a liquidating trust. Holders of general unsecured claims are expected to recover 84% of their claims. About GSC Group Florham Park, New Jersey-based GSC Group, Inc. -- http://www.gsc.com/-- is a private equity firm specializing in mezzanine and fund of fund investments. Originally named Greenwich Street Capital Partners Inc. when it was a subsidiary of Travelers Group Inc., GSC became independent in 1998 and at one time had $28 billion of assets under management. Market reverses, termination of some funds, and withdrawal of customers' investments reduced funds under management at the time of bankruptcy to $8.4 billion. GSC Group filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-14653) on Aug. 31, 2010. Michael B. Solow, Esq., at Kaye Scholer LLP, serves as the Debtor's bankruptcy counsel. Epiq Bankruptcy Solutions, LLC, is the Debtor's notice and claims agent. Capstone Advisory Group, LLC, is the Debtor's financial advisor. The Debtor estimated its assets at $1 million to $10 million and debts at $100 million to $500 million as of the Chapter 11 filing. Since Jan. 7, 2011, the Debtors have been operated by James L. Garrity Jr., as Chapter 11 trustee for the Debtors. No committee of unsecured creditors has been appointed in the Chapter 11 Cases. HARRISBURG, PA: Judge to Hold Nov. 23 Hearing on Chapter 9 Filing ----------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review that Pennsylvania bankruptcy judge Mary D. France gave attorneys another month to craft arguments over whether the state capital city of Harrisburg's Chapter 9 case can move forward. As reported in Troubled Company Reporter on Oct. 17, 2011, Harrisburg Mayor Linda D. Thompson filed papers in bankruptcy court just before midnight Oct. 13 requesting an emergency hearing to dismiss the case as an unauthorized filing. The mayor's lawyers contend the Chapter 9 Petition filed by the City Council is invalid because, inter alia, it was filed without the requisite authority. About the City of Harrisburg The city of Harrisburg, in Pennsylvania, is coping with debt related to a failed revamp of an incinerator. The outstanding principal on the incinerator debt is $288 million. Harrisburg filed a Chapter 9 bankruptcy petition (Bankr. M.D. Pa. Case No. 11-06938) on Oct. 11, 2011. Mark D. Schwartz, Esq., and David A. Gradwohl, Esq., serve as counsel. The petition estimated $100 million to $500 million in assets and debts. Susan Wilson, the city's chairperson on Budget and Finance, signed the petition. The city said in court papers it is in imminent jeopardy through six pending legal actions by creditors with respect to a number of outstanding bond issues relating to the Harrisburg Materials, Energy, Recycling and Recovery Facilities, which processes waste into steam and electrical energy. The owner and operator of the incinerator is The Harrisburg Authority, which is unable to pay the bond issues. The city is the primary guarantor under each bond issue. The lawsuits were filed by Dauphin County, where Harrisburg is located, Joseph and Jacalyn Lahr, TD Bank N.A., and Covanta Harrisburg Inc. HARRISBURG, PA: State Passes Bill That Gives Governor More Power ---------------------------------------------------------------- The Wall Street Journal's Kris Maher reports that the Pennsylvania state Senate passed a bill Tuesday giving the governor the authority to declare a fiscal emergency in the state capital. Republican Gov. Tom Corbett has said he would sign the bill, which would enable him to appoint a receiver to craft a plan to help the city of Harrisburg get out from under a $310 million debt, mostly tied to a money-losing incinerator project. The Senate passage was expected, and the House could send the bill to the governor as early as Wednesday. According to the Journal, after the Senate vote Tuesday, Mark Schwartz, Esq., an attorney for the city council, said the legislation will have no impact on the legal case because the city has already filed for bankruptcy. "It's too little, too late," Mr. Schwartz said. The report relates Mr. Schwartz said he believes the council had the authority to file for bankruptcy protection and that the governor is opposing the filing because he doesn't want other cities in the commonwealth to follow suit. The Journal also reports that Kelli Roberts, a spokeswoman for Gov. Corbett, said the governor opposes bankruptcy in Harrisburg because of the adverse impact it would have on the ability of the surrounding county and municipalities to borrow. She said the governor is being forced to step in because the mayor and city council have been unable to agree on a recovery plan on their own. About the City of Harrisburg The city of Harrisburg, in Pennsylvania, is coping with debt related to a failed revamp of an incinerator. The city is $65 million in default on $242 million owing on bonds sold to finance an incinerator that converts trash to energy. Four members of the City Council of Harrisburg on Oct. 11, 2011, authorized the filing of a Chapter 9 bankruptcy petition (Bankr. M.D. Pa. Case No. 11-06938) by the City of Harrisburg. Judge Mary D. France presides over the case. Mark D. Schwartz, Esq. -- markschwartz6814@gmail.com -- and David A. Gradwohl, Esq., serve as counsel. The petition estimated $100 million to $500 million in assets and debts. Susan Wilson, the city's chairperson on Budget and Finance, signed the petition. The city council voted 4-3 on Oct. 11, 2011, to authorize the Chapter 9 municipal bankruptcy filing. The city claims to be insolvent, unable to pay its debt and in imminent danger of having tax revenue seized by holders of defaulted bonds. The city said in court papers it is in imminent jeopardy through six pending legal actions by creditors with respect to a number of outstanding bond issues relating to the Harrisburg Materials, Energy, Recycling and Recovery Facilities, which processes waste into steam and electrical energy. The owner and operator of the incinerator is The Harrisburg Authority, which is unable to pay the bond issues. The city is the primary guarantor under each bond issue. The lawsuits were filed by Dauphin County, where Harrisburg is located, Joseph and Jacalyn Lahr, TD Bank N.A., and Covanta Harrisburg Inc. Harrisburg Mayor Linda D. Thompson and the state of Pennsylvania have objected to the bankruptcy filing. Mayor Thompson is represented in the case by Kenneth W. Lee, Esq., Christopher E. Fisher, Esq., Beverly Weiss Manne, Esq., and Michael A. Shiner, Esq., at Tucker Arensberg, P.C. Counsel to the Commonwealth of Pennsylvania are Neal D. Colton, Esq., Jeffrey G. Weil, Esq., Eric L. Scherling, Esq., at Cozen O'Connor. HERITAGE LOG: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Heritage Log Homes, Inc. 1 Heritage Place Kodak, TN 37764 Bankruptcy Case No.: 11-34687 Chapter 11 Petition Date: October 12, 2011 Court: U.S. Bankruptcy Court Eastern District of Tennessee (Knoxville) Judge: Marcia Phillips Parsons Debtor's Counsel: Dean B. Farmer, Esq. HODGES, DOUGHTY & CARSON PLLC P.O. Box 869 Knoxville, TN 37901 Tel: (865) 292-2307 Fax: (865) 292-2252 E-mail: dfarmer@hdclaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/tneb11-34687.pdf The petition was signed by William N. Parsons, president. HORIZON AUTO: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Horizon Auto Funding, LLC c/o Gil A. Miller 215 South State Street, Suite 550 Salt Lake City, UT 84111 Bankruptcy Case No.: 11-34826 Chapter 11 Petition Date: October 12, 2011 Court: U.S. Bankruptcy Court District of Utah (Salt Lake City) Judge: Joel T. Marker Debtor's Counsel: Michael R. Johnson, Esq. RAY QUINNEY & NEBEKER P.C. 36 South State Street, Suite 1400 P.O. Box 45385 Salt Lake City, UT 84145-0385 Tel: (801) 532-1500 Fax: (801) 532-7543 E-mail: mjohnson@rqn.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Gill A. Miller, manager. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Dee Allen Randall 10-37546 12/10/10 Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Venina Petersen Money Loaned $850,000 1988 West 13730 South Riverton, UT 84065-2807 Alan R. Hyer Money Loaned $439,649 1978 Atlas Cedar Road Eagle Mountain, UT 84005-4353 Wade White Money Loaned $414,798 1122 North 2450 West Tremonton, UT 84337 Pratt Family Trust BQ Money Loaned $271,576 581 Circle Drive Oroville, CA 95966-7708 Michael & Lisa Davis Money Loaned $257,747 6825 North 1st Place Phoenix, AZ 85012-1003 Gwen Hayes Money Loaned $252,980 2855 So Morgan Valley Drive Morgan, UT 84050-9847 Kevin Bullock Money Loaned $200,000 Larry Stevens Money Loaned $188,824 Lola Ann Blaine Money Loaned $179,900 Equity Trust/Jack Leavitt Money Loaned $175,000 Allen & Carol Todd Money Loaned $174,702 Janalee Stinger Money Loaned $170,820 Paul F. Haas, Jr. Money Loaned $166,484 Brandi Day Money Loaned $166,703 Katherine Laws Money Loaned $160,000 Lamar & Jean Ann Luck Money Loaned $159,000 Oris Christensen Trust Money Loaned $150,000 Allen Clements Money Loaned $137,642 David Owens Money Loaned $137,041 Anne Jacobs Money Loaned $125,000 HUDSON HEALTHCARE: Proposal to Reopen Hospital Draws Opposition --------------------------------------------------------------- Dow Jones' DBR Small Cap reports that a plan to resurrect a shuttered New Jersey hospital--potentially the first such facility to re-open after two decades of closures in the state--is drawing fire from competing medical centers that say it would weaken health care in the region. As reported in the Oct. 6, 2011 edition of the TCR, the Official Committee of Unsecured Creditors in the Hudson Healthcare, Inc. bankruptcy voted to approve the sale of Hoboken University Medical Center to HUMC Holdco, LLC and to approve a global settlement by and among the City of Hoboken, the Hoboken Municipal Hospital Authority, HUMC, and the Committee. This decision, which will save New Jersey's oldest operating hospital, comes after months of HUMC Holdco working closely with the HMHA, the Department of Health and Senior Services, and the NJ State Health Planning Board, which formally recommended approval of the Certificate of Need for the transfer of ownership. About Hudson Healthcare Hudson Healthcare Inc. is the nonprofit operator of Hoboken University Medical Center in Hoboken, New Jersey. Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets and debt of less than $50 million. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel to the Debtor. Daniel McMurray, the patient care ombudsman, has tapped Neubert, Pepe & Monteith P.C. as his counsel effective Aug. 25, 2011. The Official Committee of Unsecured Creditors of Hudson Healthcare has retained Sills Cummis & Gross P.C. as its counsel, nunc pro tunc to Aug. 12, 2011. ILLINOIS FAMILY: Case Summary & 14 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Illinois Family Farms Leasing, LLC 21814 Route 4 Carlinville, IL 62626 Bankruptcy Case No.: 11-72634 Chapter 11 Petition Date: October 12, 2011 Court: U.S. Bankruptcy Court Central District of Illinois (Springfield) Judge: Mary P. Gorman Debtor's Counsel: Robert T. Bruegge, Esq. LAW OFFICE OF ROBERT T. BRUEGGE 400 St. Louis Street, #2 P.O. Box 749 Edwardsville, IL 62025 Tel: (618) 659-0495 E-mail: rtbruegge@lawdept.net Estimated Assets: $0 to $50,000 Estimated Debts: $10,000,001 to $50,000,000 The Company's list of its 14 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/ilcb11-72634.pdf The petition was signed by Rick E. Rosentreter, manager. INVENERGY WIND: S&P Assigns Prelim. 'B' Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'B' corporate credit rating to Invenergy Wind Power LLC (Invenergy), an indirectly 100% owned subsidiary of Invenergy Investment Co. LLC, a developer of renewable and gas-fired power generation assets. "We also assigned our preliminary 'BB-' rating to the proposed $200 million term loan due 2017 at Invenergy. A preliminary '1' recovery rating was assigned, indicating very high (90% to 100%) recovery expectations in the event of a payment default. The proceeds of the term loan will be distributed to Invenergy's affiliates to fund the continued buildout of the company's development pipeline, to repay certain existing debt at its affiliates, and to fund reserve accounts associated with this transaction. Debt service on the term loan will come from the residual cash flow distributions of a portfolio of 25 wind projects totaling 2,695 megawatts of gross generation capacity that are owned by Invenergy and its subsidiaries," S&P related. "The rating is supported by the strength of contractual cash flows and the use of well-proven turbine technologies" said Standard & Poor's Senior Director Swami Venkataraman. "Factors that limit the rating include concentration of cash flows at six of the projects of which three are under construction, a highly leveraged financial profile due to the presence of debt at both the parent and project levels, and the presence of distribution tests at most projects that may trap cash in the event of a downturn. Financial performance is most vulnerable to lower turbine availabilities," added Mr. Venkataraman. The portfolio includes 19 projects that are currently operating and four projects under construction. Invenergy owns 100% of all of these projects except for two in Poland (70% ownership) and one in Canada (5%). Two build-transfer projects complete the list of 25, for which Invenergy will transfer ownership after the commercial operation date and will receive a fixed, 20-year payment stream from NextEra Energy Resources. Of the 25 projects, 21 are in the U.S., two are in Poland, and two are in Canada. Seven projects have hedges that last through the term of the loan (one of which is with an Invenergy affiliate, effectively making the project merchant) while the others have long-term contracts with utilities that last well beyond the term of the debt, some until 2030 to 2032. J-SLAMM, INC.: Case Summary & 11 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: J-Slamm, Inc. dba Spinners Resort 101A Sandalwood Road Leesville, SC 29070-8874 Bankruptcy Case No.: 11-06366 Chapter 11 Petition Date: October 13, 2011 Court: U.S. Bankruptcy Court District of South Carolina (Columbia) Judge: John E. Waites Debtor's Counsel: Reid B. Smith, Esq. PRICE BIRD SMITH & BOULWARE PA 1712 St. Julian Place, Suite 102 Columbia, SC 29204 Tel: (803) 779-2255 E-mail: reid@pricebirdlaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its 11 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/scb11-06366.pdf The petition was signed by Theresa LeJohn, vice president. JEFFERSON, AL: Bid to Avoid Chapter 9 Bankruptcy in Peril --------------------------------------------------------- Dow Jones' Daily Bankruptcy Review that state legislators representing Jefferson County, Ala., have balked at backing bills needed to help Alabama's most populous county resolve its fiscal crisis, reopening the possibility it may file what would be the largest municipal bankruptcy in history. About Jefferson County Jefferson County has its seat in Birmingham, Alabama. It has a population of 660,000. It ended its 2006 fiscal year with a $42.6 million general fund balance, according to Standard & Poor's. Jefferson County is trying to restructure $3.14 billion in sewer debt. A bankruptcy by Jefferson County stands to be the largest municipal bankruptcy in U.S. history. It could beat the record of $1.7 billion set by Orange County, California in 1994. In September 2010, Alabama Circuit Court Judge Albert Johnson named John S. Young Jr. LLC as receiver for the sewer system. Jefferson County has retained Kenneth Klee, Esq., at Klee Tuchin Bogdanoff & Stern LLP to represent the county in the event of bankruptcy. Mr. Klee is considered to be a municipal-bankruptcy expert, having handled Orange County, Calif.'s bankruptcy case in 1994. A Chapter 9 filing Jefferson County would be the largest in U.S. municipal history. KIEBLER RECREATION: Court Approves PNC Bank Settlement ------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Ohio approved a settlement agreement among Kiebler Recreation LLC, PNC Bank, National Association and David Simon, the Chapter 11 trustee. About Kiebler Recreation Peek'n Peak Resort -- http://www.pknpk.com/-- is a recreational and leisure facility in Findley Lake, New York. Kiebler Recreation, LLC, dba Peek'n Peak Resort, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ohio Case No. 10-15099) on May 26, 2010. Robert C. Folland, Esq., at Thompson Hine LLP, has withdrawn as counsel to the Debtor. The Company estimated assets and debts at $10 million to $50 million as of the Petition Date. David O. Simon was appointed by the U.S. Trustee as acting bankruptcy trustee to the Debtor on June 8, 2011. Kohrman, Jackson & Krantz P.L.L. serves as counsel to the Trustee. The Trustee tapped Jones Lang LaSalle Americas, Inc., as investment banker/business broker to market the Debtor's assets. An affiliate, Kiebler Slippery Rock, LLC, filed a separate Chapter 11 petition (Bankr. N.D. Ohio Case No. 09-19087) on Sept. 25, 2009. The Trustee has filed a request for permission to sell the Fairways Condominiums contiguous to and part of the Peek 'N Peak Resort, located in French Creek, New York. The sale is part of a deal with lender PNC Bank, N.A. The Trustee has been authorized to sell the remaining assets, consisting of the Peek 'N Peak Resort. Scott Enterprises, the Erie-based hospitality development company with significant local holdings, has emerged as the top bidder for the Peek'n Peak Resort. LAST MILE: Case Summary & 24 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Last Mile Inc. dba Sting Communications 120 South 16th Street Lebanon, PA 17042-5300 Bankruptcy Case No.: 11-14769 Chapter 11 Petition Date: October 12, 2011 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Kenneth A. Rosen, Esq. LOWENSTEIN SANDLER, P.C. 65 Livingston Avenue Rosaland, NJ 07068 Tel: (973) 597-2548 Fax: (973) 597-2549 E-mail: krosen@lowenstein.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Darol Lain, president. Debtor's List of Its 24 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ GLC (Global Leveraged Capital) -- $11,067,027 805 Third Avenue, 20th Floor New York, NY 10022 First Telecom Services -- $453,759 3340 W. Market Street Akron, OH 44333 Boal, Drs. Richard and Dannielle -- $336,438 802 Michigan Avenue Lemoyne, PA 17043 Stevens & Lee -- $322,127 485 Madison Avenue, 20th Floor New York, NY 10022 Hanks, Dr. and Mrs. Gregory -- $267,239 779 Pine Tree Road Hummelstown, PA 17036 Alcatel Lucent -- $234,612 Prenskey, Dr. Jay -- $171,419 Pheasant, Dr. Thomas and Linda -- $171,419 DAPER II / Board of Trustees -- $170,000 CenturyLink -- $168,869 Zito Media -- $156,750 Velocity Communications Inc. -- $138,750 Comcast -- $134,400 Nguyen, Dr. and Mrs. Thatch -- $114,279 (Moffitt) Windstream -- $108,453 Frensky, Jeane -- $108,126 Barsanti, Dr. Christopher -- $57,140 Bokelman (Moffitt Heart) -- $57,140 Leite, Dr. Louis P. -- $57,140 Bailey, Dr. Robert -- $57,140 (Moffitt Heart) Dailey, Dr. and Mrs. Stephen -- $57,140 Owens, Dr. and Mrs. Scott -- $57,140 Alfano, Linda S. -- $57,140 Patt, Douglas C. -- $57,140 LE-NATURE'S: Former CEO Argues for Lenient Fraud Sentence ---------------------------------------------------------- Jake Simpson at Bankruptcy Law360 reports that the former CEO of Le-Nature's Inc., facing up to 20 years in prison for a $668 million accounting fraud, asked a Pennsylvania federal judge for leniency Thursday because he helped recover assets for creditors in the Company's bankruptcy. According to Law360, Gregory Podlucky argued in a brief that his cooperation with the liquidation trustee in Le-Nature's bankruptcy -- particularly information he provided to prosecutors that caused several former Wachovia Securities LLC entities to withdraw claims -- should be factored into the length of his sentence. About Le-Nature's Inc. Headquartered in Latrobe, Pennsylvania, Le-Nature's Inc. -- http://www.le-natures.com/-- makes bottled waters, teas, juices and nutritional drinks. Its brands include Kettle Brewed Ice Teas, Dazzler fruit juice drinks and lemonade, and AquaAde vitamin-enriched water. Four unsecured creditors of Le-Nature's filed an involuntary Chapter 7 petition against the Company (Bankr. W.D. Pa. Case No. 06-25454) on Nov. 1, 2006. On Nov. 6, 2006, two of Le-Nature's subsidiaries, Le-Nature's Holdings Inc., and Tea Systems International Inc., filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. Judge McCullough converted Le Nature's Inc.'s case to a Chapter 11 proceeding. The Debtors' cases are jointly administered. The Debtors' schedules filed with the Court showed $40 million in total assets and $450 million in total liabilities. Douglas Anthony Campbell, Esq., Ronald B. Roteman, Esq., and Stanley Edward Levine, Esq., at Campbell & Levine, LLC, represents the Debtors in their restructuring efforts. The Court appointed R. Todd Neilson as Chapter 11 Trustee. Dean Z. Ziehl, Esq., Richard M. Pachulski, Esq., Stan Goldich, Esq., Ilan D. Scharf, Esq., and Debra Grassgreen, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP, represent the Chapter 11 Trustee. David K. Rudov, Esq., at Rudov & Stein, and S. Jason Teele, Esq., and Thomas A. Pitta, Esq., at Lowenstein Sandler PC, represent the Official Committee of Unsecured Creditors. Edward S. Weisfelner, Esq., Robert J. Stark, Esq., and Andrew Dash, Esq., at Brown Rudnick Berlack Israels LLP, and James G. McLean, Esq., at Manion McDonough & Lucas represent the Ad Hoc Committee of Secured Lenders. Thomas Moers Mayer, Esq., and Matthew J. Williams, Esq. at Kramer Levin Naftalis & Frankel LLP, represent the Ad Hoc Committee of Senior Subordinated Noteholders. In July 2008, the Chapter 11 plan of liquidation for Le-Nature's took effect. LEHMAN BROTHERS: IBRD Asks Temporary Allowance of $23-Mil. Claim ---------------------------------------------------------------- International Bank for Reconstruction and Development asks Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York to temporarily allow its claims for the purpose of voting on Lehman Brothers Holdings Inc.'s proposed Chapter 11 plan. IBRD asserts more than $11.7 million claim against Lehman Brothers Special Financing Inc., which stemmed from the company's alleged failure to perform its obligations under a master agreement. The bank also seeks to recover more than $11.7 million claim against LBHI, which reportedly guaranteed LBSF's obligations. Early this year, the Lehman units proposed to disallow the claims, saying they do not owe any amounts to IBRD. To date, the parties have not yet reached an agreement to resolve the claims. Pursuant to a September 1 court order which approved the outline of the proposed plan, any creditor that opposes the disallowance of its claims is allowed to file a motion for temporary allowance of its claims for voting purposes. International Finance Corp. and Soneet Kapila, the Chapter 7 trustee for a group of creditors led by Fontainebleau Las Vegas Holdings LLC, also filed similar motions with the U.S. Bankruptcy Court for the Southern District of New York. IFC's claims also stemmed from a master agreement with LBSF, which was guaranteed by the parent company. LBHI previously proposed for their disallowance, denying any liability for those claims. Meanwhile, LBHI opposed the claims filed by the Chapter 7 trustee on grounds that they did not identify the Lehman unit liable for those claims in violation of the court order approving the process for filing proofs of claim. Judge Peck is set to hold a hearing on December 6, 2011, to consider confirmation of the Lehman plan. The plan, if confirmed, would enable LBHI and its affiliated debtors to pay an estimated $65 billion to their creditors. Under the plan, LBHI's senior unsecured creditors which have an estimated $83.724 billion in claims would recover 21.1% of their claims. Meanwhile, general unsecured creditors, which have an estimated $11.39 billion in claims, would recover 19.9% of their claims. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Judge James Peck on Aug. 30, 2011, approved the disclosure statement, which outlines the major provisions of Lehman's $65 billion liquidation plan. The proposed plan would enable LBHI and its affiliated debtors to pay an estimated $65 billion to their creditors. Voting on the Plan ends on Nov. 4, 2011. A hearing to consider confirmation of the Plan is set for Dec. 6, 2011. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Inks Plan Voting Deals With HK Units, et al ------------------------------------------------------------ Lehman Brothers Holdings Inc. has signed an agreement, which calls for the classification of claim filed by OMX Timber Finance Investments II LLC and Wells Fargo Bank Northwest N.A. as senior unsecured claim. Under the agreement, Claim No. 17120 will be included as a senior unsecured claim against LBHI in Class 3. The claim is entitled to receive a pro rata share of the reallocation of distributions from Subordinated Class 10B and Subordinated Class 10C only. Unlike the other claims in Class 3, Claim 17120 won't receive distribution from Subordinated Class 10A since it is based on LBHI's alleged obligation under a guarantee, according to the agreement. A full-text copy of the agreement is available without charge at http://bankrupt.com/misc/LBHI_StipOMXPlanVoting.pdf LBHI also reached agreements with Lehman Brothers Japan Inc., Banesco Holdings CA, Spring Star Corp., Portafolio de Inversiones C2-34 C.A., Credican C.A., Bellair Development Group S.A., Lehman Brothers Bankhaus AG's, and a group of creditors led by LibertyView Credit Opportunities Fund L.P. Under the deal with Lehman Brothers Japan, LBHI agreed to send ballot to each customer of its foreign affiliate that holds beneficial interest in its claim in structured notes owned by Lehman Brothers Japan. Meanwhile, LBHI's agreements with the other creditors call for the provisional allowance of their claims for purposes of voting on the company's proposed Chapter 11 plan. Full-text copies of the agreements are available without charge at: http://bankrupt.com/misc/LBHI_StipBanescoPlanVoting.pdf http://bankrupt.com/misc/LBHI_StipBellairPlanVoting.pdf http://bankrupt.com/misc/LBHI_StipCredicanPlanVoting.pdf http://bankrupt.com/misc/LBHI_StipPortafolioPlanVoting.pdf http://bankrupt.com/misc/LBHI_StipSpringPlanVoting.pdf http://bankrupt.com/misc/LBHI_StipLBBPlanVoting.pdf http://bankrupt.com/misc/LBHI_StipLibertyViewPlanVoting.pdf In a related development, Judge James Peck approved an agreement between LBHI and Danske Bank A/S London Branch, which requires the banks to follow a timetable for filing motions for temporary allowance of claims and for serving objections to claims to determine the creditors qualified to vote on the plan. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Judge James Peck on Aug. 30, 2011, approved the disclosure statement, which outlines the major provisions of Lehman's $65 billion liquidation plan. The proposed plan would enable LBHI and its affiliated debtors to pay an estimated $65 billion to their creditors. Voting on the Plan ends on Nov. 4, 2011. A hearing to consider confirmation of the Plan is set for Dec. 6, 2011. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Mason Capital Drops Plan Confirmation Objection ---------------------------------------------------------------- Mason Capital Management, LLC, dropped its objection to the confirmation of the proposed Chapter 11 plan of Lehman Brothers Holdings Inc. and its affiliated debtors. The investment firm previously complained that the plan favors two classes of creditors of LBHI, pointing out that some creditors have to give up 20% of the value of their claims for the benefit of the holders of senior unsecured claims and general unsecured claims against the parent company. Mason Capital manages investment funds and accounts that own about $380 million of notes issued by Netherlands-based Lehman Brothers Treasury Co., B.V., and guaranteed by LBHI. Its claims are treated under Class 5 of the plan. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Judge James Peck on Aug. 30, 2011, approved the disclosure statement, which outlines the major provisions of Lehman's $65 billion liquidation plan. The proposed plan would enable LBHI and its affiliated debtors to pay an estimated $65 billion to their creditors. Voting on the Plan ends on Nov. 4, 2011. A hearing to consider confirmation of the Plan is set for Dec. 6, 2011. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LOS ANGELES DODGERS: McCourts Unveil Divorce Settlement ------------------------------------------------------- Martin Bricketto at Bankruptcy Law360 reports that Los Angeles Dodgers owner Frank McCourt and his ex-wife Jamie McCourt announced a divorce settlement Monday in which she will reportedly surrender any claims to a stake in the team, which her former husband is fighting in bankruptcy court to keep. Law360 relates that the McCourts acknowledged the settlement in a brief joint statement but said the terms would remain private. 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 disclosed $77,963,734 in assets and $4,695,702 in liabilities. LA Real Estate LLC disclosed $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. MCCORD BROS.: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: McCord Bros. Dairy Queens 3424 Sixth Avenue Altoona, PA 16601 Bankruptcy Case No.: 11-71075 Chapter 11 Petition Date: October 12, 2011 Court: U.S. Bankruptcy Court Western District of Pennsylvania (Johnstown) Judge: Jeffery A. Deller Debtor's Counsel: James R. Huff, II, Esq. SULLIVAN FORR STOKAN & HUFF 1701 Fifth Avenue Altoona, PA 16602 Tel: (814) 946-4316 Fax: (814) 946-9426 E-mail: jhuff@sfshlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its five largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/pawb11-71075.pdf The petition was signed by Brian T. McCord, managing partner. MERV PROPERTIES: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: MERV Properties, LLC 1211 Manchester Street Lexington, KY 40504-1187 Bankruptcy Case No.: 11-52814 Chapter 11 Petition Date: October 10, 2011 Court: United States Bankruptcy Court Eastern District of Kentucky (Lexington) Debtor's Counsel: W Thomas Bunch, II, Esq. BUNCH & BROCK 271 West Short Street, Suite 805 P.O. Box 2086 Lexington, KY 40588-2086 Tel: (859) 254-5522 E-mail: TOM@BUNCHLAW.COM Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Vivien Collins, member. MOUNTAIN CITY: Asks Court to Set Sec. 503(b)(9) Claim Bar Date -------------------------------------------------------------- Mountain City Meat Co., Inc., has asked the Bankruptcy Court to set a deadline for filing requests for allowance of administrative expense claims under 11 U.S.C. Sec. 503(b)(9). The Bankruptcy Code does not set any date by which claims under Sec. 503(b)(9) must be asserted. However, Sec. 503(a) permits entities to "timely file" requests for payment of administrative expense, and permits administrative expense claimants to "tardily file" such claims only "if permitted for cause." According to Mountain City, within 20 days of the filing date of the Involuntary Case, the Debtor was engaged in negotiations with Fifth Third Bank, its secured lender, regarding a possible restructure of its debt. At the same time, the Debtor received a substantial amount of meat inventory from several of its suppliers. Consistent with its normal business practices, the Debtor wrote checks from its operating account for the payment of such inventory, believing that the checks would be honored by the Secured Lender. However, the negotiations with the Secured Lender eventually fell through and the Secured Lender sought the appointment of a receiver. Many of the Debtor's checks to its suppliers were not honored, leaving a potentially large portion of such suppliers unpaid. Mountain City said that if the Court determines that the Involuntary Petition Date is the applicable petition date to determine the 20-day period for 503(b)(9) Claims, the amount of 503(b)(9) Claims could be considerable, and will play a significant role in the direction of the case. The Debtor estimates potential 503(b)(9) Claims of $4 million. A significant portion -- more than $2 million -- of the petitioning creditors' claims in the Involuntary Case are potential 503(b)(9) Claims. The Debtor plans to sell substantially all of its assets in the first one to two months of the case. The Debtor believes establishing a bar date for those claims before the proposed sale is essential to determining the course of the case and ultimately maximizing recoveries for all stakeholders. There will hardly be any 503(b)(9) Claims if the Court uses the Voluntary Petition Date as the date from which 503 (b)(9) Claims are determined. The Debtor asks the Court that the bar date be set 14 days from the date the Debtor mails a bar date notice to all parties in interest. The Debtor said a 14-day filing period to assert 503(b)(9) Claims based upon either the Involuntary or Voluntary petition date is appropriate under the circumstances. The Debtor anticipates that there a dozen or fewer holders of potential 503(b)(9) claims, most of whom have been active in the Involuntary Case. About Mountain City Meat Denver, Colorado-based Mountain City Meat Co., Inc. -- http://www.mountaincitymeat.com/-- is one of the largest portion control beef processors in the United States. Through its headquarters and manufacturing facility in Denver, and its second manufacturing facility in Nashville, Tennessee, Mountain City supplies high quality ground beef and portion control steak cuts through several channels, including retail stores, chain restaurants and broadline food service distributors. On Aug. 9, 2011, Mountain City's board of directors appointed BGA Management LLC d/b/a Alliance Management, through its agent, Alex G. Smith as the company's Chief Restructuring Officer until the need for a CRO no longer existed. Immediately after appointing Alliance as CRO, the Board resigned. On Aug. 11, 2011, Mountain City's secured lender, Fifth Third Bank commenced a receivership action against the company in Denver District Court. At 5:00 p.m. that same day, the Denver District Court appointed Alliance as receiver for Mountain City's personal property and related operations. However, minutes before the receivership order, certain putative unsecured creditors -- Orleans International, Inc., National Beef Packing, Inc. and XL Four Star Beef, Inc. -- commenced an involuntary Chapter 7 bankruptcy petition (Bankr. D. Colo. Case No. 11-29209) against Mountain City. The Involuntary Chapter 7 petition was filed as a result of, among other reasons, the Debtor (a) ordering and not paying for in excess of $2,400,000 of meat inventory from the Petitioning Creditors; and (b) issuing checks to the Petitioning Creditors for a portion of the inventory, which checks were refused for payment by Fifth Third Bank. The Debtor sought dismissal of the Involuntary Petition on the grounds that it was filed in bad faith because the Petitioning Creditors were motivated solely by their desire to preserve their claims under Section 503(b)((9) of the Bankruptcy Code to have that portion of their claims related to goods sold to the Debtor within 20 days prior to the filing treated as an administrative expense. In the Involuntary Case, the Secured Lender obtained two interim orders annulling the automatic stay to allow the receiver to keep control of the Debtor. Mountain City filed a voluntary Chapter 11 petition (Bankr. D. Colo. Case No. 11-32656) on Sept. 24, 2011. Judge Howard R. Tallman presides over the case. Michael J. Pankow, Esq., Daniel J. Garfield, Esq., Heather B. Schell, Esq., at Brownstein Hyatt Farber Schreck, LLP, represent the Debtors as counsel. The Debtor estimated up to $50 million in assets and debts. Attorneys for the Petitioning Creditors are John B. Wasserman, Esq., at Sender & Wasserman, P.C., and Howard S. Sher, Esq., and Michele L. Walton, Esq., at Jacob & Weingarten, P.C. Fifth Third is represented in the case by James T. Markus, Esq., and John F. Young, Esq., at Markus Williams Young & Zimmermann LLC. An official committee of unsecured creditors has been appointed in the case. The panel is represented by Harold G. Morris, Jr., Esq., and John C. Smiley, Esq., at Lindquist & Vennum PLLP. MRA PELICAN: Fannie Mae Seeks Dismissal to Allow it to Foreclose ---------------------------------------------------------------- Secured creditor Fannie Mae, pursuant to 11 U.S.C. Sections 1112(b)(1), 362(d)(1) and 362(d)(2), Rule 4001 of the Federal Rules of Bankruptcy Procedure, and Local Rule 4001-1, asks the U.S. Bankruptcy Court for the Southern District of Florida to enter an order dismissing MRA Pelican Pointe Apartments, LLC's Chapter 11 case, or alternatively for further relief from the automatic stay to allow the foreclosure sale of the Debtor's real property. On Sept. 21, 2011, the State Court entered Final Judgment of Foreclosure scheduling an Oct. 26, 2011 sale of the Property. Fannie Mae has requested for an expedited hearing on its motion to preserve the sale date and to prevent a waste of resources associated with having this Court separately consider the Debtor's "bad faith and unconfirmable Plan." The Court scheduled a hearing on the motion for Nov. 8, 2011, at 1:30 p.m. Fannie Mae cited that the Debtor's Plan, as filed on Sept. 12, 2011, has been filed for the benefit of one party and one party only, Samuel Weiss who directly and indirectly owns 100% of the membership interests in the Debtor. The Debtor's Plan provides for the Debtor "to regain control of the Property on the effective date of the Plan and reinstitute its previous mis-managed management." Fannie Mae says it will never vote in favor of a plan that provides for the Property to be managed by the Debtor and its prior management and unless Fannie Mae would be paid in full. About MRA Pelican Pointe MRA Pelican Pointe Apartments, LLC, owns an apartment complex commonly known as Whispering Isles Apartments in Pompano Beach, Florida. The property was being managed by Aryeh Kieffer of Boca Raton-based Addison Advisors. Pre-bankruptcy, Fannie Mae initiated a foreclosure action against the property in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida. At Fannie Mae's behest, Margaret Smith of Glass Ratner Advisory & Capitol Group LLC was appointed as receiver. The receiver has administered and operated the apartment complex since May 17, 2011. MRA Pelican filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-32457) on Aug. 10, 2011. Addison Advisors' Mr. Kieffer signed the petition. Bradley S. Shraiberg, Esq., at Shraiberg, Ferrara, & Landau P.A., in Boca Raton, Fla., represents the Debtor in its restructuring efforts. In its schedules, the Debtor disclosed $13,226,852 in assets and $14,809,364 in liabilities. Fannie Mae is represented by Gary M. Freedman, Esq., and Mark S. Roher, Esq., at Tabas, Freedman, Soloff, Miller & Brown, P.A. MURRAY INSURANCE: Endurance Suit Non-core; Trial Reset to Nov. 17 ----------------------------------------------------------------- Bankruptcy Judge John J. Thomas rescheduled trial in the adversary proceeding filed by Endurance American Specialty Insurance Company against Chapter 7 debtor Murray Insurance Agency for Nov. 17, 2011, at 9:30 a.m. in Bankruptcy Courtroom No. 2, Max Rosenn United States Courthouse, 197 South Main Street, Wilkes-Barre, Pennsylvania. Judge Thomas noted that the case is a non-core related proceeding and Mount Airy #1 LLC, which has intervened in the case, has not consented to the Bankruptcy Court rendering a final judgment. Unless the parties consent to the Court making final findings of fact and conclusions of law, recommendations will be submitted to the District Court for its consideration in entering a final order or judgment, Judge Thomas said. Endurance filed on June 10, 2010, the Complaint for Declaratory Relief naming Murray Insurance Agency, and Mark Conway, Esq., the Trustee, as Defendants. The Complaint asked that Endurance be relieved of any contractual obligations it may owe to those insured through Murray. A copy of the Court's Oct. 13, 2011 Opinion is available at http://is.gd/Dpo1lufrom Leagle.com. NC12, INC.: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: NC12, Inc. 1980 POst Oak Boulevard, Suite 2100 Houston, Tx 77056 Bankruptcy Case No.: 11-38794 Chapter 11 Petition Date: October 14, 2011 Court: U.S. Bankruptcy Court Southern District of Texas (Houston) Judge: Marvin Isgur Debtor's Counsel: J. Craig Cowgill, Esq. J. CRAIG COWGILL & ASSOCIATES, P.C. 8100 Washington, Suite 120 Houston, TX 77007 Tel: (713) 956-0254 Fax: (713) 956-6284 E-mail: jccowgill@cowgillholmes.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/txsb11-38794.pdf The petition was signed by Michael D. Sydow, acting president. NEBRASKA BOOK: Delays Chapter 11 Plan Hearing to November --------------------------------------------------------- Dow Jones' Daily Bankruptcy Review that Nebraska Book Co. has pushed off its Chapter 11 plan confirmation hearing until the end of November, amid predictions the plan is dead for lack of financing. As reported in the Oct. 14, 2011 edition of the Troubled Company Reporter, second-lien lenders are objecting to a four-month extension of the exclusive right to propose a plan. Secured lenders believe that a 60-day extension of exclusivity is sufficient. The papers explain how Nebraska Book has been unable to secure a $250 million loan required for confirming and implementing the Chapter 11 plan largely worked out before the Chapter 11 filing in late June. The plan called for new financing to pay off first- and second- lien debt in full, while giving most of the new equity to subordinated noteholders of the operating company and holders of notes issued by the holding company. About Nebraska Book Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. Lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the Petition Date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. The Official Committee of Unsecured Creditors selected Lowenstein Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow Financial Inc. as financial advisers. Nebraska Book prepared a pre-packaged Chapter 11 plan that would swap some of the existing debt for new debt, cash and the new stock. NEWALTA CORP: DBRS Changes Trend on BB Issuer Rating to Positive ---------------------------------------------------------------- DBRS has changed the trend on the BB (low) Issuer Rating of Newalta Corporation (Newalta or the Company) to Positive from Stable. The trend change reflects the fact that the Company has performed above expectations, with operating performance almost returned to pre-recession levels. In addition, the Company has made progress in strengthening its business profile by growing and increasing profitability of its on-site business. Further strengthening of its business profile, especially gains in the more stable long-term on-site contracts and returning its operating performance to historical levels before the recession in the next six to 12 months, could lead to a one-notch upgrade. However, DBRS would reinstate the Stable trend if the Company's performance reverted back to the weak 2009 levels. Notwithstanding an improving business profile and performance, DBRS has downgraded the recovery rating of the Unsecured Notes to RR4 from RR2 to reflect its expectation of lower recovery, solely due to an anticipated increase in the amount of unsecured debt. In the recovery analysis, DBRS assumes that Newalta will refinance the maturing convertible debentures (which now rank junior to unsecured debt) with the same amount of unsecured debt. This leads to a sharply lower recovery for the Unsecured Notes at the time of default because the amount of outstanding unsecured debt will almost double. With a revised recovery rating of RR4, Newalta's Unsecured Notes will have the same rating as the Issuer Rating, according to DBRS' leveraged finance methodology, instead of one notch higher, as previously. Consequently, the Unsecured Notes rating has been downgraded to BB (low) from BB. Prior to 2009, the Company had been growing rapidly through acquisitions to expand its services offered and geographical markets. Amid the integration of recent acquisitions, the recession hit. The severe recession in 2009 exposed the vulnerability of Newalta's business to economic conditions and commodity prices, especially oil and lead. The Company was able to adjust to the downturn and remained profitable, albeit barely. More importantly, the Company has been able to integrate its new acquisitions without much disruption and position itself for the upturn. With the Company's strategic focus shifted to organic growth and improving returns from its existing assets, the risk to the Company's business profile is lessened. The Company's operating results have been on a steady uptrend since bottoming in 2009. With the economy on the mend, Newalta's operating performance has made good progress, and operating margin for the first half of 2011, at more than 20%, was well on its way to the historical average level. Going forward, the Company still faces some headwinds to a full recovery. Growth momentum in the general economy appears to have stalled recently. Heightened concerns about fiscal problems in some member states in the European Union and the United States could lead to a double-dip recession. A slowing economy not only lowers the demand for the Company's services, it also depresses oil and lead prices, delivering a double whammy to Newalta's operating profits. The strength of the Canadian dollar is another challenge that the Company needs to overcome. Nevertheless, the Company expects its earnings momentum to continue in the second half of 2011, unless oil prices fall significantly from current levels. The sharp downturn has also highlighted the Company's financial flexibility. Large depreciation and modest maintenance capital needs allow Newalta to stabilize cash flow generation. In addition, the Company has demonstrated its willingness to take actions to bolster its financial position, lowering dividends and raising cash from equity issues. These measures allowed the Company to bolster its free cash flow for debt reduction and moderate the deterioration of its financial profile. The Company has continued to use free cash flow for debt reduction through the recovery in 2010. Going forward, the Company expects to boost capital expenditures to support organic growth. In 2011, Newalta plans to increase capital spending substantially to $100 million from about $68 million in 2010. With earnings and, therefore, cash flow from operations set to increase, the Company should be able to fund its operating needs internally. The balance sheet is expected to remain stable in the medium term. The Company has set a leverage target of total debt-to-EBITDA of between 1.5 times (x) and 2.0x. In the event that the economy slows down sharply, the Company has the flexibility to curtail cash usage as it did in 2009 and stabilize its financial position. Although acquisitions are not a top strategic priority for Newalta, DBRS believes the Company could still participate in more. Nevertheless, DBRS notes that the Company has demonstrated financial discipline and will be judicious in any debt finance acquisitions. The Positive trend reflects that the rating will likely be upgraded a notch in the next six to 12 months if the Company maintains its improving momentum, continues to strengthen its profitability to near historical average levels and makes meaningful progress in achieving its leverage target. Furthermore, the Company also needs to complete the refinancing of its maturing convertible debentures appropriately without weakening its capital structure and financial stability. Pursuant to its rating methodology for leveraged finance, DBRS has created a default scenario for Newalta in order to analyze when and under what circumstances a default could hypothetically occur and the potential recovery of the Company's debt in the event of such default. DBRS has determined Newalta's estimated value at default using an EBITDA multiple valuation approach at approximately $288 million, using a 4.0 x multiple of normalized EBITDA. In addition, DBRS assumes that the Company would refinance its convertible debt (maturing in November 2012) prior to maturity with same amount of unsecured debt ranked pari passu with the rated Unsecured Notes. As a result, at the time of default, the Company would have almost double the amount of unsecured debt outstanding. Based on the default scenario, the Unsecured Notes would have recovery estimated between 30% and 50%, which aligns with a recovery rating of RR4. Therefore, the instrument rating of the Unsecured Notes is BB (low), the same as the Issuer Rating. The reason for the lower recovery of the unsecured notes compared to the recovery analysis done in the report dated November 10, 2010, is solely the amount of unsecured debt outstanding at the time of default. NNJ HOME: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------- Debtor: NNJ Home, Inc. 2 Broadway Paterson, NJ 07505 Bankruptcy Case No.: 11-39831 Chapter 11 Petition Date: October 13, 2011 Court: U.S. Bankruptcy Court District of New Jersey (Newark) Judge: Morris Stern Debtor's Counsel: Milica A. Fatovich, Esq. HOOK & FATOVICH, LLC 1430 Route 23 North Wayne, NJ 07470-5826 Tel: (973) 686-3800 Fax: (973) 686-3801 E-mail: mfatovich@hookandfatovich.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its 16 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/njb11-39831.pdf The petition was signed by Therese Tolomeo, president. OLD SHORE: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Old Shore, LLC 399 N. Old US 23 Brighton, MI 48144 Bankruptcy Case No.: 11-10236 Chapter 11 Petition Date: October 12, 2011 Court: U.S. Bankruptcy Court Middle District of Tennessee (Nashville) Judge: George C. Paine II Debtor's Counsel: Elliott Warner Jones, Esq. EMERGE LAW, PLC 1600 Division Street, Suite 675 Nashville, TN 37203 Tel: (615) 916-5264 E-mail: elliott@emergelaw.net - and ? Warner Jones, Esq. EMERGE LAW PLC 1600 Division Street, Suite 675 Nashville, TN 37203 Tel: (615) 916-5262 Fax: (615) 916-5261 E-mail: warner@emergelaw.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its nine largest unsecured creditors is available for free at http://bankrupt.com/misc/tnmb11-10236.pdf The petition was signed by Gordon Follmer, managing member. OMEGA NAVIGATION: Committee Wins Nod to Retain Advisors ------------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court approved Omega Navigation Enterprise's official committee of unsecured creditors' motions to retain Winston & Strawn as local counsel, Jager Smith as counsel and First International Corporation as financial advisor. About Omega Navigation Athens, Greece-based Omega Navigation Enterprises Inc. and affiliates, owner and operator of tankers carrying refined petroleum products, filed for Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 11-35926) on July 8, 2011, in Houston. Omega is an international provider of marine transportation services focusing on seaborne transportation of refined petroleum products. The Debtors disclosed assets of US$527.6 million and debt totaling US$359.5 million. Together, the Debtors wholly own a fleet of eight high-specification product tankers, with each vessel owned by a separate debtor entity. Judge Karen K. Brown presides over the case. Bracewell & Giuliani LLP serves as counsel to the Debtors. Jefferies & Company, Inc., is the financial advisor and investment banker. PALISADES 6300: Case Summary & 12 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Palisades 6300 West Lake Mead LLC 8966 Spanish Ridge Avenue, Suite 100 Las Vegas, NV 89149 Bankruptcy Case No.: 11-26180 Chapter 11 Petition Date: October 13, 2011 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Marjorie A. Guymon, Esq. GOLDSMITH & GUYMON, P.C. 2055 Village Center Circle Las Vegas, NV 89134 Tel: (702) 873-9500 Fax: (702) 873-9600 E-mail: bankruptcy@goldguylaw.com Scheduled Assets: $17,452,917 Scheduled Debts: $14,733,148 The petition was signed by Shahram Afshani, managing member. Debtor's List of Its 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Republic Services -- $11,114 770 E. Sahara Avenue Las Vegas, NV 89104-2943 Las Vegas Water District -- $8,238 1001 S Valley View Boulevard Las Vegas, NV 89153 Keystone Carpet Care -- $3,335 2756 N. Green Valley Parkway, #409 Henderson, NV 89014 Home A/C & Heating Co. -- $3,512 Escalera Maintenance Corp. -- $2,650 Jeff Heit Plumbing Co. -- $1,400 Design Works Custom Painting -- $1,340 Employers Insurance Co. -- $719 For Rent Magazine -- $695 Prestige Telecom -- $76 Airgas-West -- $43 Southwest Gas -- $26 PELICAN ISLES: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Pelican Isles Limited Partnership dba Pelican Isles Apartments Pelican Isles 1901 S. Harbor City Boulevard, Suite 507 Melbourne, FL 32901 Bankruptcy Case No.: 11-38544 Chapter 11 Petition Date: October 14, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (West Palm Beach) Debtor's Counsel: Ronald G. Neiwirth, Esq. BOYD & JENERETTE, PA 801 Brickell Avenue, #1440 Miami, FL 33131 Tel: (954) 670-2198 E-mail: rneiwirth@boyd-jenerette.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by John Corbett, President of The Partnership, Inc., president of general partner TPI. Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Reznick Group, PC Trade $14,100 2002 Summit Boulevard, Suite 1000 Atlanta, GA 30319 The Partnership, Inc. Trade $10,960 P.O. Box 510512 Melbourne Beach, FL 32951 Sherwin Williams Trade $10,643 4506 LB McLeod Box A400 Orlando, FL 32811 CAP Lawn Service Trade $4,600 Dyna Fire, Inc. Trade $3,584 HD Supply Facilities Maintenance Trade $3,458 East Side Builders Trade $2,550 Lowenhaupt & Sawyers Trade $2,159 General Electric Company Trade $1,281 Surface Appeal East Coast, Inc. Trade $1,025 Blue Dolphin Pool Service Trade $993 WTC Backgrounds, Inc. Trade Debt $685 Hulett Commercial Pest Prevention Trade $675 Aquagenix Trade $300 Father & Son Carpert Trade $230 The Little Coupon Book Trade $210 Verizon Trade $179 LEAF Trade $133 Semopr Respirce Association Trade $100 Global Security Trade $74 PETROFLOW ENERGY: Notices Termination of Registration of CS ----------------------------------------------------------- PetroFlow Energy Ltd. filed with the U.S. Securities and Exchange Commission on Oct. 14, 2011, a Form 15 certification and notice of termination of registration of its common shares under Section 12(g) of the Securities Exchange Act of 1934. About Petroflow Energy Based in Denver, Colorado, Petroflow Energy Ltd. filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-12608) on Aug. 20, 2010. Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg LLP, represents the Debtor as its Delaware counsel. Kirkland & Ellis LLP serves as bankruptcy counsel. Kinetic Advisors LLC serves as restructuring advisor. Epiq Bankruptcy Solutions serves as claims and notice agent. The Debtor estimated both assets and debts of between $100 million and $500 million Petroflow sought recognition of the U.S. chapter 11 proceedings from the Alberta Court of Queen's Bench under the Companies' Creditors Arrangement Act in Canada, and had its chapter 11 case jointly administered with those of its two chapter 11 debtor affiliates under the caption "In re North American Petroleum Corporation USA, Case # 10-11707 (CSS)." Petroflow Energy is the parent of Denver, Colorado-based North American Petroleum Corp. USA and Prize Petroleum Corp. North American Petroleum and Prize Petroleum filed for Chapter 11 bankruptcy protection on May 25, 2010 (Bankr. D. Del. Case Nos. 10-11707 and 10-11708). North American estimated its assets and debts at $100 million to $500 million as of the Petition Date. As reported in the TCR on Oct. 3, 2011, the U.S. Bankruptcy Court for the District of Delaware entered a confirmation order in respect of the First Amended Joint Chapter 11 Plan of NAPCUS, Prize Petroleum LLC and Petroflow Energy Ltd. On Sept. 21, 2011, a recognition order was issued under the Companies' Creditors Arrangement Act, Canada in respect of the order obtained in the Bankruptcy Court. The Chapter 11 Plan became effective Sept. 30, 2011. In accordance with the Chapter 11 Plan, the financial affairs of NAPCUS were reorganized, its share capital was restructured, new capital for operations was raised, the claims of unsecured creditors of NAPCUS and Petroflow were fully satisfied, existing equity holders are entitled to a recovery and all securities of Petroflow were canceled. POPULAR LIFE RE: A.M. Best Upgrades FSR to 'B+' ----------------------------------------------- A.M. Best Co. has upgraded the financial strength rating to B+ (Good) from B (Fair) and issuer credit rating to "bbb-" from "bb+" of Popular Life Re (San Juan, Puerto Rico). The outlook for both ratings is stable. Popular Life Re is a life reinsurance subsidiary of its ultimate parent, Popular Inc., a publicly traded bank holding company based in Puerto Rico. The rating actions reflect Popular Life Re's continued stable statutory net income as the company continues to maintain solid capitalization ratios. While premium volume has declined in recent years, results reported to date indicate a modest increase reflecting some stabilization in the Puerto Rican economy, which has reported a contraction in gross domestic product growth in recent years. Going forward, A.M. Best believes premium volumes will remain highly correlated to the Puerto Rican economy and increases in consumer loan origination activity. The ratings also incorporate some improvement in Popular Life Re's parent, which has strengthened its balance sheet through capital raises and return to profitability. Additionally, there has been some improvement in the credit quality of Popular Inc.'s balance sheet through strategic restructurings and asset sales in recent years. Nevertheless, Popular Life Re's ratings continue to factor in the weak, albeit improving, financial condition of Popular Inc. Specifically, elevated loan delinquencies at each of Popular Inc.'s banks and nonperforming assets remain a rating concern. A.M. Best expects that continued slow economic growth in Puerto Rico still has the ability to pressure the pace of improvements to Popular Inc. in the near-to-intermediate term. A.M. Best believes Popular Life Re is an important subsidiary, as it represents an extension of Popular Inc.'s well established insurance agency business, which operates under the brand name Popular Insurance. Popular Life Re reinsures a portion of credit policies on consumer loans originated at Banco Popular de Puerto Rico, as well as personal accident and health policies underwritten by unaffiliated carriers. PRIUM WHITECENTER: Case Summary & 8 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Prium Whitecenter Building, LLC 9650 15th Avenue SW Seattle, WA 98106 Bankruptcy Case No.: 11-22023 Chapter 11 Petition Date: October 13, 2011 Court: U.S. Bankruptcy Court Western District of Washington (Seattle) Judge: Karen A. Overstreet Debtor's Counsel: Mark D. Northrup, Esq. GRAHAM & DUNN PC Pier 70 2801 Alaskan Way, Suite 300 Seattle, WA 98121-1128 Tel: (206) 340-9628 E-mail: mnorthrup@grahamdunn.com Scheduled Assets: $7,414,455 Scheduled Debts: $7,000,488 The Company's list of its eight largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/wawb11-22023.pdf The petition was signed by Thomas W. Price, member of Prium Companies, LLC. QUEEN'S PLATE: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Queen's Plate Development, Inc. Century 21 North Homes c/o James Lyon 300 West College Way Mount Vernon, WA 98273 Bankruptcy Case No.: 11-22090 Chapter 11 Petition Date: October 14, 2011 Court: U.S. Bankruptcy Court Western District of Washington (Seattle) Judge: Timothy W. Dore Debtor's Counsel: Steven Schneider, Esq. MURPHY, BANTZ & BURY, P.S. 818 W. Riverside, Suite 631 Spokane, WA 99201 Tel: (509) 838-4458 E-mail: sschneider@mbandbps.com Estimated Assets: $0 to $50,000 Estimated Debts: $10,000,001 to $50,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Evelyn Rusin, director and president. R&G FINANCIAL: Wants Plan Exclusivity Extended Until Dec. 31 ------------------------------------------------------------ BankruptcyData.com reports that R&G Financial filed with the U.S. Bankruptcy Court a motion for to extend the exclusive period during which the Company can solicit acceptances for its First Amended Plan through and including through Dec. 31, 2011. According to Law360, the motion explains, "The Debtor has concluded negotiations with some of its most important creditor constituencies regarding the proposed satisfaction of their claims under the First Amended Plan. Notably, the Debtor successfully negotiated a settlement with its secured creditor, FirstBank Puerto Rico, regarding the treatment of its secured claim, which will likely permit many unsecured creditors to receive recoveries from its estate that may not have been possible absent the FirstBank settlement." About R&G Financial San Juan, Puerto Rico-based R&G Financial Corporation was the direct parent of R-G Premier Bank of Puerto Rico, a state- chartered nonmember bank, through which RGFC primarily conducted its business. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 10-04124) on May 14, 2010. Brent R. McIlwain, Esq., Robert W. Jones, Esq., Esq., at Patton Boggs LLP, in Dallas; and Jorge I. Peirats, Esq., at Pietrantoni, Mendez & Alvarez, in Hato Rey, P.R., serve as the Debtor's bankruptcy counsel. The Debtor disclosed US$40,213,356 in assets and US$420,687,694 in debts as of the Petition Date. RENAISSANT LAFAYETTE: Court Approves Distributions to Creditors --------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Wisconsin has approved the procedures set forth in Renaissant Lafayette LLC's dismissal motion for the resolution of all the fees of all Professionals and of general unsecured claims against the Debtor and the distribution of funds available pursuant to the "estate carve-out" for the benefit of professionals and also for general unsecured creditors. The Debtor's Chapter 11 case will be dismissed effective upon and subject only to (i) performance of each of the Conditions of Dismissal, and (ii) provided that pursuant to Section 349(b) of the Bankruptcy Code, the dismissal of the present Chapter 11 case will be subject to each of the following restrictions upon dismissal: (a) Any proceeding or custodianship (including, without limitation, the State Court Receivership) commenced prior to the commencement of the Chapter 11 case will not be reinstated; (b) The orders, judgments and other actions entered or taken by the Court during the Chapter 11 case, including (without limitation) the Sale Order and the Interforum Settlement Order, will remain in full force and effect (subject to resolution of any appeals) and will not be vacated in any respect upon the entry of the order of dismissal; and (c) The property of the estate will not be revested in any respect in the Debtor or in any entity in which such property was vested immediately before the commencement of the Debtor's Chapter 11 case, except as may be provided in any order of the Court during this Chapter 11 case. The dismissal of the Debtor's Chapter 11 case will be subject to each of the following Conditions to Dismissal: (1) Payment of the fees of the United States Trustee for the quarter ending Sept. 30, 2011; (2) Completion by the Bank of any payments to the Professionals for allowed administrative expense priority claims pursuant to the orders of the Court and consistent with the provisions of the Estate Carve-Out; (3) Completion of distributions and the orders of the Court with respect to any objections thereto; and (4) Filing of a certification signed by counsel for the Debtor and the Bank that the items set forth in sub-paragraphs (a), (b) and (c) have been completed performed in full. A copy of the Court's order is available for free at: http://bankrupt.com/misc/renaissantlafayette.doc528.pdf As reported in the TCR on Aug. 18, 2011, Renaissant Lafayette LLC asks the Bankruptcy Court to dismiss its Chapter 11 case and authorize Amalgamated Bank to distribute the estate carve out to creditors -- professionals and general unsecured creditors. The Debtor related that it has no remaining assets other than its rights to access the remaining amounts of the estate carve-out. On July 13, William T. Neary, the U.S. Trustee for Region 11, also sought for the Debtor's case dismissal for failure to file a Chapter 11 plan and an explanatory Disclosure Statement. The U.S, Trustee also related that all of the Debtor's assets have been sold, and there is nothing left of the Debtor to reorganize. The U.S. Trustee is represented by: Debra L. Schneider, Esq. Office of the U.S. Trustee 517 E. Wisconsin Ave., Suite 430 Milwaukee, WI 53202 Tel: (414) 297-4499 Fax: (414) 297-4478 About Renaissant Lafayette Oak Brook, Illinois-based Renaissant Lafayette LLC is the owner of a 280-unit luxury condominium development in Milwaukee named Park Lafayette. The project is at the intersection of North Prospect Avenue and Lafayette Place in Milwaukee. The Company filed for Chapter 11 protection on December 23, 2009 (Bankr. E.D. Wis. Case No. 09-38166). In its schedules, the Debtor disclosed $61,253,824 in assets and $111,897,768 in liabilities as of the Petition Date. Forrest B. Lammiman, Esq., at Meltzer, Purtill & Stelle LLC, in Chicago, represents the Debtor as counsel. Albert Solochk, Esq., represents the Official Unsecured Creditors Committee as counsel. SAFE HARBOR: A.M. Best Affirms 'B' Financial Strength Rating ------------------------------------------------------------ A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating (FSR) of B (Fair) and issuer credit rating (ICR) of "bb" of Safe Harbor Insurance Company (Safe Harbor) (Tallahassee, FL). The revised outlook reflects Safe Harbor's reduced risk-adjusted capitalization resulting from double-digit premium and exposure growth, as well as its increased reliance on the Florida Hurricane Catastrophe Fund as part of its current year reinsurance program. Additionally, Safe Harbor's ratings are based on its geographic concentration of risk, which subjects it to a single state's judicial and regulatory actions, while exposing the company's property risks to hurricane events since it is a Florida-only writer of homeowner and mobile home business. These negative rating factors are offset by Safe Harbor's favorable operating performance since inception and its ongoing strategic position within RM Ocean Harbor Holding Inc., whose lead insurance company is Ocean Harbor Casualty Insurance Company within the Ocean Harbor Insurance Group (OHIG). Currently, OHIG's FSR of B+ (Good) and ICR of "bbb-"are under review with negative implications following its announced acquisition of GNW Acquisition Corp. SALES PARTNERSHIPS: Case Summary & 22 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Sales Partnerships, Inc. 9035 Wadsworth Parkway, Suite 1600 Westminster, CO 80021 Bankruptcy Case No.: 11-33914 Chapter 11 Petition Date: October 10, 2011 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: A. Bruce Campbell Debtor's Counsel: Jenny M.F. Fujii, Esq. KUTNER MILLER BRINEN, P.C. 303 E. 17th Ave., Suite 500 Denver, CO 80203 Tel: (303) 832-2400 E-mail: jmf@kutnerlaw.com Scheduled Assets: $1,016,770 Scheduled Debts: $1,868,179 A copy of the list of 22 largest unsecured creditors is available for free at http://bankrupt.com/misc/cob11-33914.pdf The petition was signed by Frederick A. Kessler, president. SEA TRAIL: Section 341(a) Meeting Scheduled for Oct. 24 ------------------------------------------------------- Marjorie K. Lynch, the Bankruptcy Administrator for the Eastern District of North Carolina, will convene a meeting of creditors of Sea Trail Corporation on Oct. 24, 2011, at 10:00 a.m. The meeting will be held at Wilson 341 Meeting Room. Creditors are required to submit their proofs of claim by Jan. 23, 2012. 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. Headquartered in Sunset Beach, North Carolina, Sea Trail Corporation is a private company categorized under "Land Subdividers and Developers, Residential." Sea Trail Corporation filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 11-07370) on Sept. 27, 2011, in Wilson, North Carolina. Trawick H. Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., in New Bern, North Carolina serves as counsel to the Debtor. The Debtor reported $34,222,281 in assets and $22,174,201 in liabilities. SKYPE GLOBAL: Raised by Moody's to 'Ba2' After Sale to Microsoft ---------------------------------------------------------------- Moody's Investors Service upgraded the corporate family rating of Skype Global S.a.r.l. to Ba2 with a stable outlook from B1 following completion of the acquisition of Skype by Microsoft Corporation ("Microsoft", Aaa/Stable Senior Unsecured Rating) on October 13, 2011. The ratings upgrade reflects Moody's view that the acquisition of Skype by Microsoft materially enhances Skype's standalone credit profile, even though Microsoft did not formally guarantee Skype's debt. The magnitude of the rating's lift has been capped at two notches based on Moody's published methodology to rating non-guaranteed subsidiaries. Following these upgrades, given the announced closing of the acquisition and the repayment of Skype's facilities, all ratings for Skype will also be withdrawn. Upgrades: Issuer: Skype Global S.a.r.l. Corporate Family Rating, Upgraded to Ba2 from B1 Probability of Default Rating, Upgraded to Ba3 from B2 Issuer: Springboard Finance LLC Senior Secured Bank Credit Facility, Upgraded to Ba2 (LGD3- 34%)from B1 (LGD3-34%) Ratings Rationale Concurrent with this rating action, Moody's upgraded the various instrument ratings of Skype's subsidiary, Springboard Finance LLC, as listed above, in accordance with Moody's loss given default methodology. Finally, Moody's said it will withdraw all ratings for Skype and its subsidiaries as Microsoft has used cash on hand to repay the outstanding amounts under Skype's credit facilities. This concludes the ratings review commenced when the acquisition agreement between Microsoft and Skype was announced in May 2011. The principal methodology used in rating Skype was the Global Telecommunications Rating Methodology published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Skype, located in Luxembourg, is a leading internet communications company with revenues of approximately $930 million for twelve months ending 6/30/2011. S.L.6, L.L.C.: Case Summary & 5 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: S.L.6, L.L.C. 1099 West South Jordan Parkway South Jordan, UT 84095 Bankruptcy Case No.: 11-34911 Chapter 11 Petition Date: October 13, 2011 Court: U.S. Bankruptcy Court District of Utah (Salt Lake City) Judge: William T. Thurman Debtor's Counsel: Douglas J. Payne, Esq. FABIAN & CLENDENIN 215 South State Street, Suite 1200 Salt Lake City, UT 84111-2323 Tel: (801) 531-8900 Fax: (801) 596-2814 E-mail: dpayne@fabianlaw.com - and ? Gary E. Jubber, Esq. FABIAN AND CLENDININ 215 South State Street, Suite 1200 Salt Lake City, UT 84111 Tel: (801) 531-8900 Fax: (801) 596-2814 E-mail: gjubber@fabianlaw.com - and ? Peter W. Billings, Jr., Esq. FABIAN & CLENDENIN 215 South State Street, Suite 1200 Salt Lake City, UT 84111-2323 Tel: (801) 531-8900 Fax: (801) 532-3370 E-mail: pbillings@fabianlaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Nathan D. Shipp, authorized representative. Debtor's List of Its five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ S.L. Managers, LLC Management Fees $300,000 1099 West South Jordan Parkway South Jordan, UT 84095 PC Development, Inc. Construction $18,971 P.O. Box 86 Consulting Fee Mount Pleasant, UT 84647 Flagship Homes Development Costs $10,000 170 South Interstate Plaza Drive, Suite 250 Lehi, UT 84043 Trane Engineering, P.C. Development Costs $4,650 Karren, Hendrix, Stagg, Allen Accountant Fees $2,298 & Company SOLYNDRA LLC: OMB Staffers Questioned Restructuring, e-Mails Show ----------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review that staffers at the White House Office of Management and Budget questioned whether the terms of a restructured loan provided to Solyndra LLC earlier this year were legal, newly released emails show. 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. SOLYNDRA LLC: Wants to Employ K&L Gates as Special Counsel ---------------------------------------------------------- Solyndra LLC and its affiliated debtors seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ K&L Gates LLP as their as special counsel. As special counsel, K&L Gates will provide legal advice in connection with the federal criminal investigation in Northern California and lawsuits filed against the Debtors related to the investigation. The firm will also prepare court papers and appear at hearings on behalf of the Debtors. In return for its services, the firm will be paid on an hourly basis and will be paid for its expenses. The professionals designated to represent the Debtors and their hourly rates are: Professionals Hourly Rates ------------- ------------ Jeffrey Bornstein $640 Mikal Condon $525 In an affidavit, Mr. Bornstein, Esq., assured the Court that his firm does not hold or represent interest adverse to the Debtors' estates. 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 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. SOUTH DAKOTA STATE MEDICAL: A.M. Best Affirms FSR at 'B' -------------------------------------------------------- A.M. Best Co. has affirmed the financial strength rating of B (Fair) and issuer credit rating of "bb+" of South Dakota State Medical Holding Co., Inc. d/b/a DAKOTACARE (Sioux Falls, SD). The outlook for both ratings is positive. Concurrently, A.M. Best has withdrawn the ratings based on the company's decision to no longer participate in A.M. Best's interactive rating process. The ratings reflect DAKOTACARE's improved operating performance and recovering financial strength over the last two years. These positive results are based on the company's decision (a few years ago) to terminate its participation in the Medicare Advantage Special Needs Plan. DAKOTACARE's underwriting results continued to improve in 2010, a trend that has continued into the second quarter of 2011. SOUTHWEST GEORGIA: Files First Amended Disclosure Statement ----------------------------------------------------------- On Oct. 4, 2011, Southwest Georgia Ethanol, LLC, filed a first amended and restated disclosure statement for the Debtor's first amended and restated plan of reorganization dated Oct. 4, 2011. A copy of the First Amended Disclosure Statement is available for free at http://bankrupt.com/misc/southwestgeorgia.DS.dkt312.pdf As reported in the TCR on Oct. 14, 2011, the Bankruptcy Court approved the disclosure statement on Oct. 11. The confirmation hearing for approval of the plan will take place Dec. 7. The plan calls for lenders owed $107.6 million to receive $105 million in preferred stock plus 25% of the common stock. The disclosure statement estimates the lenders' recovery at 97.5%. Unsecured creditors with $2.1 million in claims and bondholders owed $8.7 million are to receive proceeds from a litigation trust and are expected to see a recovery of 3%. If lower classes accept the plan, the lenders will waive their deficiency claims. About Southwest Georgia Ethanol Southwest Georgia Ethanol LLC, a unit of First United Ethanol Co., sought bankruptcy protection (Bankr. M.D. Ga. 11-10145) in Albany, Georgia, on Feb. 1, 2011. The Debtor owns and operates an ethanol production facility located on 267 acres in Mitchell County, Georgia, producing 100 million gallons of ethanol annually. Ethanol production operations commenced in October 2008. Revenue was $168.9 million for fiscal year ended Sept. 30, 2010. The Debtor said profitability and liquidity have been materially reduced by unfavorable fluctuations in commodity prices for ethanol and corn. Gary W. Marsh, Esq., J. Michael Levengood, Esq., and Bryan E. Bates, Esq., at McKenna Long & Aldridge LLP, in Atlanta, Georgia, serve as counsel to the Debtor. Morgan Keegan & Company, Inc., is the investment banker and financial advisor. The Debtor's balance sheet showed $164.7 million in assets and $134.1 million in debt as of Dec. 31, 2010. Since 2008, at least 11 ethanol-related companies have sought court protection, including VeraSun Energy Corp., once the second- largest U.S. ethanol maker; units of Pacific Ethanol Inc.; and White Energy Holding Co. SPANISH PEAKS: Files for Ch. 7 Bankruptcy; To Sell Iconic Property ------------------------------------------------------------------ Kaitlin Ugolik at Bankruptcy Law360 reports that Spanish Peaks Holdings II LLC, owners of the 5,700-acre club at Spanish Peaks resort in Montana, put the iconic property on the auction block Friday as part of an effort to liquidate through its Chapter 7 bankruptcy, just days after shutting down operations and laying off staff. Spanish Peaks Holdings II LLC listed assets of up to $50 million and debts as high as $500 million in its bankruptcy filing in Delaware. Thomas J. Francella of Whiteford Taylor & Preston LLP, an attorney for the company, declined to comment Monday. SPRINT NEXTEL: Moody's Cuts Corp. Family Rating to 'B1' ------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating (CFR) of Sprint Nextel Corp. ("Sprint") to B1 from Ba3. The downgrade reflects Sprint's decision to invest heavily in its own 4G network assets and likely phase out its failed partnership with Clearwire. This capital intensive strategic decision, combined with Sprint's introduction of the iPhone, will strain liquidity and push leverage to approximately 5x (excluding Sprint's 54% stake in Clearwire) before the benefits of the investment begin to accrue. The rating remains on review for downgrade given the significant execution risks associated with the recently detailed network upgrade plans, especially as the management team has outlined very aggressive build out targets for a company that has historically failed to realize the full benefits from previous major strategic initiatives. Moody's Investor's Service maintains the following ratings on Sprint Nextel Corp. and it's following affiliates: Sprint Nextel Corp. LT Corporate Family Rating -- Downgraded B1 from Ba3 prior Probability of Default Rating -- Downgraded B1 from Ba3 prior Speculative Grade Liquidity Rating -- SGL-4 from SGL-1 prior Senior Unsecured Notes -- Downgraded B2, LGD5 (75%) from B1, LGD5 (77%) Senior Unsecured Gtd. Bank Credit Facility -- Downgraded Ba1, LGD2 (12%) from Baa3, LGD2 (10%) Sprint Capital Corp. BACKED Senior Unsecured Notes -- Downgraded B2, LGD5 (75%) from B1, LGD5 (77%) BACKED Senior Unsecured MTN Rating -- Downgraded (P)B2 from (P) B1 Nextel Communications Inc. Senior Unsecured Notes -- Downgraded B1, LGD3 (42%) from Ba3, LGD3 (42%) iPCS Inc. Senior Secured 1st Priority Notes -- Downgraded B1, LGD4 (50%) from Ba3, LGD3 (48%) Senior Secured 2nd Priority Notes -- Downgraded B3, LGD5 (78%) from B1, LGD5 (77%) RATINGS RATIONALE "Sprint has missed an opportunity to save billions of dollars of capex by failing to reach a win-win arrangement with Clearwire," said Moody's Senior Vice President Dennis Saputo. "Instead, management will ratchet up the execution risk and go it alone for the 4G upgrade path," Mr. Saputo continued. Moody's anticipates that Sprint's introduction of the iPhone will result in better growth, lower churn and generate meaningful long-term benefits for Sprint. However, the timing of the iPhone launch, coincident with a doubling of capex in 2012, will pressure liquidity and force Sprint to raise more capital. Moody's anticipates that Sprint will require as much as $6-8 billion through 2013 to fund the network build and meet debt maturities. Leverage will reach approximately 5x (Moody's adjusted) in 2012 and remain in that range through 2013. Beyond 2013, Sprint will need to acquire spectrum to maintain growth. The company has promoted its spectrum hosting concept as a method to avoid the upfront cost of buying capacity. However, Moody's believes that the economics of spectrum hosting will prove difficult to justify and the operational complexity and governance issues it creates (see Clearwire, et al) will discourage its success. As contemplated, Sprint's business plan leads to meaningful deleveraging starting in 2014. However, even with crisp execution Sprint's 4G capabilities are likely to significantly lag the competition. Since Clearwire's 4G network does not support the iPhone, Moody's anticipates a sharp decline in Sprint/Clearwire 4G WiMax customers. Lower sales and cash flow puts LTE further from Clearwire's reach and increases the competitive gap between Sprint and AT&T/Verizon. Depending upon the timing of an LTE iPhone, Sprint could be back at a disadvantage with its handset lineup as early as mid-2012. Moody's views Sprint's liquidity profile as weak and Moody's has downgraded their liquidity rating to SGL-4 from SGL-1. Moody's anticipates Sprint will end 2011 with almost $4 billion in cash. However, the company has $2.25 billion in debt maturing in March of 2012 and is now likely to generate significant negative free cash flow over the next 18 months. Sprint has a $2.1 billion revolving credit facility due October of 2013 with $900 million undrawn. Moody's believes that Sprint's liquidity is becoming strained and anticipates incremental borrowing. The review for downgrade will focus on the company's success in raising the large amount of capital that will be required for it to deploy LTE nationwide by early 2014 in challenging market conditions made more difficult by management's interaction with the financial community. In addition, Moody's will also evaluate the progress and impact of the company's plans to secure sufficient spectrum for its future operations. Failure to proactively address future funding requirements and maintain adequate liquidity could result in additional downward ratings pressure. The principal methodology used in rating Sprint Nextel Corporation was the Global Telecommunications Industry Industry Methodology, published December 2010. Other methodologies used include Loss Given Default for Speculative Grade Issuers in the US, Canada, and EMEA, published June 2009 (and/or the Government-Related Issuers methodology,published July 2010. SSI GROUP: Has Final OK to Obtain DIP Financing from WFCF --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware entered on Oct. 6, 2011, a final order authorizing SSI Group Holding Corp., et al., (1) to obtain secured, superpriority financing from Wells Fargo Capital Finance, LLC, as DIP Agent for and on behalf of itself and the other DIP Lenders, and (2) to use cash collateral of the Prepetition Lenders and the Subordinated Lenders. As a condition to the entry into the DIP Agreement, the extension of credit under the DIP Facility and the agreement for the use of cash collateral, the DIP Agent and DIP Lenders require, and the Debtors have agreed that proceeds of the DIP Facility will be used, in a manner consistent with the terms of the DIP Documents and in accordance with a budget, solely for (1) payment in full of the outstanding prepetition obligations, (2) working capital, letters of credit, and other general corporate purposes, (3) permitted payment of costs of administration of the cases (subject to the limitations of the Carve-Out), (4) payment of fees and expenses due under the DIP Facility, (5) payment of any authorized Adequate Protection Payments, and (6) payment of prepetition expenses, in addition to the Prepetition Obligations, as consented to by the DIP Agent, in its sole discretion, as as approved by the Court. As of the petition date, the outstanding principal amount owed to WFCF and the other prepetition lenders was $3,694,382.60, which amount includes $290,000 face amount of outstanding letters of credit, secured by substantially all assets of the Borrowers. As reported in the TCR on Sept. 19, 2011, SSI Group Holding Corp. and its affiliates also have $37.2 million in junior debt to companies affiliated with Summitbridge National Investments Inc. and Sun Capital Partners. Summitbridge National Investments owns 55% of SSI Group while distressed-debt investor Sun Capital Partners Inc. owns the remaining 45%. The Debtors are authorized on a final basis to request extensions of credit under the DIP Facility (in the form of loans and letters of credit) of (i) $3,694,382.60 (plus the amount of any accrued and unpaid interest and fees with respect to the Prepetition Facility) under the Term Loan (as defined in the DIP Documents) and (ii) up to an aggregate principal amount of $2,360,000 at any one time outstanding, including a sublimit for letters of creditor up to $290,000 under the DIP Revolver. The DIP Agent and the DIP Lenders are granted automatically perfected postpetition security interests in and liens on any and all presently owned and hereafter after acquired personal property, real property and other assets of the Debtor (the "DIP Collateral"). The DIP Agent and the DIP Lenders are also granted an allowed superpriority administrative expense claim in each of the cases and any successor cases for all DIP Obligations, subordinate only to the Carve Out and the Administrative Claim Escrow. As further adequate protection, the Debtors are authorized and directed to provide adequate protection payments, in the form of: (i) monthly payments of interest, fees and other amounts due under the Prepetition Credit Agreements; and (ii) ongoing payment of the Prepetition Agent's and the Prepetition Lenders' reasonable fees, costs and expenses, including, without limitation, reasonable legal and other professionals' fees and expenses. A copy of the Final Order is available for free at: http://bankrupt.com/misc/ssigroup.finalorder.doc132.pdf 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: Court Approves Bid Process for Assets Sale ----------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved the proposed bid process for the sale of substantially all of the assets of SSI Group Holding Corp. and its affiliated debtors. The Debtors earlier 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. The Debtors will hold an auction for the assets on November 15, 2011, at the offices of Proskauer Rose LLP, in New York. The hearing to consider the sale of the assets to the winning bidder at the auction is scheduled for November 28, 2011. Objections to the proposed sale must be filed by November 21, 2011. In connection with the sale of the Grandy's chain, the Court also ruled that the stalking horse bidder or the lead bidder will not be entitled to any breakup fee but will be entitled to reimbursement of up to $300,000 of its expenses. Meanwhile, the Court authorized the Debtors to designate a stalking horse bidder for the Souper Salad assets, and pay that bidder a breakup fee of up to 5% of the negotiated and agreed price for the assets. A full-text copy of the court order is available withour charge at http://bankrupt.com/misc/SSI_BidProcessOrder.pdf 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 INVESTMENTS: Moody's Affirms 'B2' Corp. Family Rating --------------------------------------------------------- Moody's Investors Service affirmed SSI Investments II Limited's B2 Corporate Family Rating (CFR) and probability of default rating, and assigned a Ba3 rating to $90 million of incremental term loans being raised by Skillsoft Corporation ("SkillSoft" or the "Company"), an indirect wholly-owned subsidiary of SSI. The ratings outlook is stable. SkillSoft will use the net proceeds from the incremental term loans and cash on hand to acquire Element K, a subsidiary of NIIT Limited, for approximately $110 million in cash. The B2 CFR reflects SkillSoft's high financial leverage, relatively small scale in a highly competitive and fragmented corporate training market with low barriers to entry, and the discretionary nature of the Company's product offerings. The rating is supported by SkillSoft's competitive market position in the niche e-learning market, its large and diverse customer base, and the predictability of its revenues from customers under contracts. The rating also reflects SkillSoft's prospective free cash flow of about 7% to 10%, resulting from its good EBITDA margins and low capital expenditures, partially offset by high interest expense. The stable rating outlook incorporates Moody's expectations that SkillSoft's credit metrics should improve over the next 12 months driven by realization of cost synergies and organic growth of the business. The acquisition of Element K will consolidate SkillSoft's position in its highly fragmented industry and allow the Company to cross- sell its corporate training solutions to a larger customer base. However, the acquisition is being financed mainly with debt and will raise SkillSoft's Debt-to-EBITDA leverage by about one turn to over 6.6x (incorporating Moody's analytical adjustments), excluding targeted cost synergies from the acquisition. Moody's believes that given the scaleability of SkillSoft's business model and the Company's history of realizing large cost savings from previous acquisitions, particularly the NETg acquisition in May 2007, SkillSoft should be able to achieve targeted cost synergies. Consequently, the ratings agency expects Debt/EBITDA leverage to decline to less than 6.0x over the next twelve months. In Moody's view, SSI's acquisitive growth strategy and slow organic growth in a challenging economic environment will likely preclude any meaningful deleveraging over the intermediate term, and as a result the Company's leverage will likely remain in the 5.0x to 5.5x over this period. Given the expectations of high financial leverage over the intermediate term, a rating upgrade is unlikely. However, the rating could be raised in the future if SkillSoft generates strong, consistent organic revenue growth with increasing profitability, and if the Company could sustain Debt/EBITDA below 4.0x and free cash flow/Debt above 10%, incorporating potential for increases in debt as a result of its shareholder-friendly financial policies. Conversely, the rating could be lowered if SkillSoft experiences market share losses, declining profitability, or challenges in integrating the Element K acquisition, and the Company is unable to sustain Debt/EBITDA leverage below 6.0x and free cash flow turns negative. The rating could also experience downward pressure if the Company pursues aggressive financial policies which result in a weaker balance sheet or if SkillSoft undertakes large debt- financed acquisitions which increase execution risks. The following rating actions were taken: Issuer: SSI Investments II Limited Corporate Family rating -- affirmed B2 Probability-of-default rating -- affirmed B2 $310 million senior unsecured notes due 2018 -- affirmed Caa1 (LGD assessments changed to LGD 5, 82% from LGD 5, 80%) Issuer: SkillSoft Corporation $40 million senior secured revolving credit facility due 2015 -- affirmed Ba3 (LGD assessments changed to LGD 2, 27% from LGD 2, 24%) $325 million senior secured Term Loan B due 2016 - affirmed Ba3 (LGD assessments changed to LGD 2, 27% from LGD 2, 24%) $90 million Incremental senior secured Term Loan B -- assigned Ba3, LGD 2, 27% Outlook: Stable SkillSoft provides on-demand e-learning and performance support solutions for global enterprises, government, education and small to medium-sized businesses. For the last twelve month period ended July 31, 2011, SkillSoft reported $272 million in revenues. The principal methodology used in rating SkillSoft Corporation was the Global Software Industry Methodology published in May 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. STANDARD STEEL: Moody's Affirms 'B3' Corp. Family Rating -------------------------------------------------------- Moody's Investors Service affirmed Standard Steel, LLC's ratings including its corporate family ("CFR") and probability of default ratings at B3 following the acquisition by Sumitomo Metal Industries, Ltd. (unrated) and Sumitomo Corporation (rated A2/stable), collectively "Sumitomo." The outlook is stable. The following ratings were affirmed: Corporate family rating at B3 Probability of default rating at B3 $140 million senior secured notes due 2015 at B3 (LGD-4, 54%) RATINGS RATIONALE The affirmation of the B3 CFR rating reflects the absence of any assumption of debt by Sumitomo post the closing of the acquisition as well as the lack of guarantees or any other support mechanism between Sumitomo and Standard Steel. Standard Steel's shareholder composition post the acquisition was reportedly expected to be 90% comprised of Sumitomo Metal Industries Limited, with FYE 2010 annual revenues of roughly $17 billion, and Sumitomo Corporation (rated A2/stable) owning the remaining 10%. Moody's does not anticipate Standard Steel to be a meaningful contributor to Sumitomo's consolidated earnings and cash flow. Accordingly, Standard Steel's ratings do not derive any implicit support from its position as an affiliate of Sumitomo. Sumitomo Metals announced that the acquisition is being made for strategic reasons, expanding the company's global manufacturing reach into overseas markets where they anticipate growth in the US market for forged railway wheels. Sumitomo Metals also publicly has mentioned that they intend to transfer technologies related to steel making and wheel making to Standard Steel. If the benefits of this transfer are realized via higher margins and stronger credit metrics, the ratings would be reassessed. The stable outlook anticipates that Standard Steel will maintain a good liquidity profile supported by positive free cash flow generation and improvement in interest coverage metrics to the 1.0 times level over the next twelve to eighteen months. Factors that could lead to a positive outlook or stronger ratings include continued positive free cash flow generation, lowering and sustaining debt/EBITDA towards 4.5 times and demonstrating EBIT/interest coverage in excess of 1.3 times while maintaining a good liquidity profile. Developments that could establish negative pressure on the ratings include loss of key contracts and/or customers, negative free cash flow, an elevation of debt/EBITDA towards 6.0 times and/or EBIT/interest remaining well below the 1.0 times level through 2012. The principal methodology used in rating Standard Steel, LLC was the Global Manufacturing Industry Methodology published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Standard Steel, LLC, based in Burnham, PA, manufactures forged wheels and axles used in freight and passenger rail cars and locomotives. The company had last twelve months ended July 3, 2011 revenues of approximately $223 million. The company is owned by Sumitomo Metals Industries, Ltd. and Sumitomo Corporation. STELLAR GT: To Hold Combined Hearing on Plan on Nov. 18 ------------------------------------------------------- On Oct. 11, 2011, the Bankruptcy Court conditionally approved the revised disclosure statement, filed Oct. 5, 2011, explaining Stellar GT TIC LLC, and VFF TIC LLC's Chapter 11 Plan dated Sept. 30, 2011. Nov. 15, 2011, at 5:00 p.m. is fixed as the last day for filing written acceptances or rejections of the Plan. The hearing on final approval of the disclosure statements and confirmation of the plan will take place Nov. 18. The Court fixed Nov. 15, 2011, as the last day for filing and serving written objections to confirmation of the Plan. The Plan contemplates either the sale of the Project pursuant to the Auction Procedures or a restructuring of the Loan pursuant to the Amended Loan Documents. A sale will occur, if approved by the Court, if a bidder other than Lender or its designee submits the highest and best offer at the Auction. If the Lender or its designee submits the highest and best offer a restructuring of the Loan will occur pursuant to the Amended Loan Documents (Exhibit C). The term Lender, as used herein, refers collectively to Wells Fargo Bank, N.A. (the Holder of the A-1 Note in the principal amount of $67 million), U.S. Bank National Association (the Holder of the A-2 Note in the principal amount of $58 million), and FCP Georgian Towers, LLC (the Holder of the B Note in the principal amount of $60 million). Upon entry of an order authorizing the Debtors to conduct the Auction, the Project will be auctioned in accordance with the Auction Procedures. If, after compliance with the Auction Procedures, the Project is not sold, then: (a) all property of the Stellar Estate, including Stellar's interest in the Project, will be transferred to VFF, and Stellar (together with Stellar GT Borrower LLC, its wholly-owned subsidiary) will be dissolved, (b) new LLC Interests representing 100% of the ownership interest in VFF will be issued to FCP Fund I Trust ("Fund I"), and (c) VFF will execute and comply with the terms of the Amended Loan Documents (Exhibit C). Fund I is an affiliate of FCP Georgian Towers, LLC, which in turn, is an affiliate of Federal Capital Partners. FCP Georgian Towers, LLC, is the holder of the B Note (in the principal amount of $60,000,000). It is also the holder of certain mezzanine debt, which encumbers the equity interests in the Debtors. No common ownership exists between the Debtors and the FCP entities. The Plan designates 4 Classes of Claims and Interests: Class 1-A and 1-B - Allowed Secured Claim of the Lender. Class 2-A and 2-B ? General Unsecured Claims. Class 3-A and 3-B - LLC Interests in the Debtors. Class 4-A and 4-B - Claims of General Electric Company. All above Classes are impaired under the Plan. Lender's Allowed Secured Claim in Class 1-A and 1-B will receive one of the following forms of treatment: (a) Receipt of the Auction Sale Proceeds and Cash Collateral in full satisfaction of the Allowed Secured Claim of Lender; or (b) Payment and other treatment as set forth in the Amended Loan Documents (attached hereto as Exhibit C). General Unsecured Claims in Classes 2-A and 2-B will be paid their pro rata share of the Auction Sale Proceeds remaining after payment of the Allowed Claims in Classes 1-A and 1-B (and any other claims of higher legal priority). If the Amended Loan Closing occurs, Claims in Classes 2-A and 2-B will be paid their pro rata share of $50,000; such $50,000 will be paid from Cash Collateral. Payments will occur on the earlier of the Effective Date or the date when such Claim becomes an Allowed Claim. As to Allowed Class 3-A and 3-B Interests, any Auction Sale Proceeds remaining after payment of Claims in Classes 1-A, 1-B, 2-A and 2-B will be paid to FCP Georgian Towers, LLC, on account of that certain pledge of the LLC Interests to FCP Georgian Towers, LLC, to secure a loan. If the Amended Loan Closing occurs, the LLC Interests in Classes 3-A and 3-B will be extinguished on the Effective Date. The Allowed Class 4-A and 4-B Claims of General Electric Corporation will be paid at least 25% on its claim (subject to increase if a third party bid is higher than the applicable credit bid and funds are available in excess of the secured mortgage claim), which GE has alleged, in its proof of claim, is approximately $70,000. To avoid any ambiguity, the minimum payment to GE will be a total of 25% times its claim of $70,000 (not 25% times both proofs of claim in both cases). Thus, the total minimum payment will be approximately $17,500. Such payment (together with additional payments, if any, under the Plan based upon a sale to a third party) will completely discharge the GE claim and extinguish any secured claims alleged by GE. Payment will occur on the earlier of the Effective Date or the date when such Claim becomes an Allowed Claim. A copy of the Revised Disclosure Statement is available for free at http://bankrupt.com/misc/stellar.revisedDS.dkt107.pdf A copy of the Amended Loan Documents is available for free at: http://bankrupt.com/misc/stellar.dkt107-3.pdf A copy of the Joint Plan of Reorganization is available for free at http://bankrupt.com/misc/stellar.dkt107-1.pdf About Stellar GT TIC and VFF TIC Stellar GT TIC LLC and VFF TIC LLC, owners of the Georgian apartments located at 8750 Georgia Avenue in Silver Spring, Maryland, filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case Nos. 11-22977 and 11-22980) on June 22, 2011. Judge Wendelin I. Lipp oversees the case. Michelle Maloney-Raymond is the case administrator. Matthew G. Summers, Esq., at Ballard Spahr LLP, serves as the Debtors' counsel. The Debtors negotiated a plan of reorganization before filing for Chapter 11. The proposed plan is premised on either (1) a sale of the project pursuant to an auction process or (2) a consensual restructuring of the secured debt. Broker CB Richard Ellis Inc. has been hired to conduct the sale. The auction rules provide that a first-round sealed bid would be required to be submitted by Aug. 24, 2011. The broker would then have until Sept. 5 to negotiate with the first-round bidders. Second- round sealed bids would be due Sept. 5. The highest second-round bid would be identified by Sept. 12. The highest bid would be submitted for approval at the confirmation hearing in October. Wells Fargo, the holder of a $207.6 million secured debt, can bid at the auction. The Lender is represented by Mark Taylor, Esq., at Kilpatrick Townsend & Stockton LLP, and Jantra Van Roy, Esq., at Zeichner Ellman & Krause LLP. The U.S. Trustee for Region 4 notified the Court that he has not appointed an unsecured creditors' committee in the Chapter 11 cases of Stellar GT TIC LLC and VFF TIC LLC. STRATEGIC AMERICAN: Receives Fiscal Year End Reserves Report ------------------------------------------------------------ Strategic American Oil Corporation received its fiscal year end independent reserve report for the Company's productive interests in Texas and Louisiana as of July 31, 2011, which was prior to the recent acquisition of SPE Navigation I, LLC. The report, not including reserves from the acquired interests of SPE, estimates net proved reserves of 1.2 million barrels of oil and 12.5 Bcf (billion cubic feet) of natural gas which translates to approximately $97.3 million undiscounted or $58.9 million discounted at 10 percent in net proved reserves for Strategic American Oil. If the SPE interests are included, the numbers increase to an estimated net proved reserves of 1.6 million barrels of oil and 16.6 Bcf (billion cubic feet) of natural gas which translates to approximately $128.2 million undiscounted or $77.7 million discounted at 10 percent in net proved reserves for Strategic American Oil. Strategic's recently completed acquisition of SPE Navigation I, LLC, brought with it additional working interest in Galveston Bay and one million shares of Hyperdynamics stock. Strategic American Oil President and CEO, Jeremy G. Driver, stated "The acquisition of Galveston Bay Energy has proven to be a valuable investment as evidenced by our increasing reserves, production and drilling opportunities. Our reserves have increased even further since our recent acquisition of SPE, which greatly enhances our revenues and cash flow." The independent reserve report was prepared by Ralph E. Davis Associates, Inc., a Houston-based petroleum engineering consulting firm since 1924. An updated corporate fact sheet is also now available from the Company's Web site. The latest video "The Focus of Strategic American Oil Corporation" is also available at: http://youtu.be/T31Oo6cZWPg About Strategic American Corpus Christi, Tex.-based Strategic American Oil Corporation (OTC BB: SGCA) -- http://www.strategicamericanoil.com/-- is a growth stage oil and natural gas exploration and production company with operations in Texas, Louisiana, and Illinois. The Company's team of geologists, engineers, and executives leverage 3D seismic data and other proven exploration and production technologies to locate and produce oil and natural gas in new and underexplored areas. The Company's balance sheet at April 30, 2011, showed $17.51 million in total assets, $11.69 million in total liabilities and $5.82 million in total stockholders' equity. Going Concern As reported by the TCR on March 25, 2011, MaloneBailey, LLP, in Houston, Texas, expressed substantial doubt about Strategic American Oil's ability to continue as a going concern following the Company's results for the fiscal year ended July 31, 2010. The independent auditors noted that the Company has suffered losses from operations and has a working capital deficit. In the Form 10-Q, the Company acknowledged that it had a working capital deficit of $3,362,822 and an accumulated deficit of $13,016,680 as of Jan. 31, 2011. The Company said its ability to continue as a going concern is dependent on raising additional capital to fund ongoing exploration and development and ultimately on generating future profitable operations. SUGARMADE INC: Anton & Chia Raises Going Concern Doubt ------------------------------------------------------ Sugarmade, Inc., formerly Diversified Opportunities, Inc., filed on Sept. 28, 2011, its annual report on Form 10-K for the fiscal year ended June 30, 2011. Anton & Chia, LLP, in Newport Beach, California, expressed substantial doubt about Sugarmade's ability to continue as a going concern. The independent auditors noted that the Company has incurred net losses since inception and has an accumulated deficit at June 30, 2011. The Company reported a net loss of $3.3 million on $37,629 of sales revenues for the fiscal year ended June 30, 2011, compared with a net loss of $465,688 on $15,799 of sales revenues for the fiscal year ended June 30, 2010. The Company's balance sheet at June 30, 2011, showed $2.0 million in total assets, $188,328 in total liabilities, and stockholders' equity of $1.8 million. A complete text of the Form 10-K is available for free at: http://is.gd/Junezs Sugarmade, Inc. (formerly Diversified Opportunities, Inc.) is a distributor of paper products that are derived from non-wood sources. The Company holds the exclusive right to market, distribute and manufacture Sugar Cane Paper Company (SCPC)'s proprietary products in Europe, North, Central and South America, Australia and in other designated territories in the world. The Company also obtained the rights (within the designated territories) to the Sugarmade(TM) brand name and trademarks. SCPC, a company located in the People's Republic of China, is a manufacturer and a holder of intellectual property rights and patents in the area of developing and manufacturing paper from non-wood sources. SUMMO INC: Daniel K. Usiak, Jr. Approved to Handle Bankruptcy Case ------------------------------------------------------------------ Summo, Inc., asks the U.S. Bankruptcy Court District of Colorado for permission to employ Daniel K. Usiak, Jr., as counsel to perform all legal services necessary to assist Debtor in the Chapter 11 case. On Sept. 12, 2011, the Court directed the Debtor to file an amended motion that will satisfy the disclosure requirements to establish the disinterestedness of proposed counsel. In the Debtor's previous motion, the Court mentioned that the Debtor failed to demonstrate and represent to the Court that there are no facts which would create a conflict. In the Debtor's amended motion dated Sept. 20, it disclosed that that the professionals' hourly rates are: Mr. Usiak $250 Paralegal $95 Mr. Usiak was paid a retainer of $15,000 to be used for payment of fees and costs incurred during the preparation and administration of the case. $2,550 was used to pay prepetition attorney's fees, $1,039 was used to pay the filing fee, leaving a retainer balance of $11,411, which is property of the estate. The retainer was paid by John Musso, the owner of Debtor. To the best of Debtor's knowledge, Mr. Usiak is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. 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. The U.S. Trustee said that an official committee 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. SUNCAL COMPANIES: CEO Brother Teams With Colony to Bid on Projects ------------------------------------------------------------------ Dow Jones' Daily Bankruptcy Review that the brother of SunCal Chief Executive Bruce Elieff has agreed to pay $15.14 million for six real estate projects mired in bankruptcy in California for nearly three years, the latest twist in the dispute between the developer and former partner Lehman Brothers Holdings Inc. About SunCal Companies SunCal Companies -- http://www.suncal.com/-- has more than 250,000 residential lots and 10 million square feet of commercial space in various stages of development throughout California, Arizona, Nevada and New Mexico. Gramercy Warehouse Funding LLC and several creditors filed involuntary petitions each against LBREP/L-SunCal Master I LLC, LBREP/L-SunCal McAllister Ranch LLC, LBREP/L-SunCal McSweeny Farms LLC, and LBREP/L-SunCal Summerwind Ranch LLC on Sept. 11, 2008 (Bankr. C.D. Calif Case No. 08-15588, 08-15637, 08-15639, and 08-15640). Daniel H. Reiss, Esq., at Levene, Neale, Bender, Rankin & Brill represents the petitioners. SunCal affiliates led by Palmdale Hills Property, LLC, filed voluntary Chapter 11 petitions (Bankr. C. D. Calif. Case No. 08-17206) on Nov. 6, 2008. Affiliates that also filed separate Chapter 11 petitions include: SunCal Beaumont Heights, LLC; SunCal Johannson Ranch, LLC; SunCal Summit Valley, LLC; SunCal Emerald Meadows LLC; SunCal Bickford Ranch, LLC; SunCal Communities I, LLC; SunCal Communities III, LLC; and SJD Development Corp. SunCal Companies is not in bankruptcy. Paul J. Couchot, Esq., at Winthrop Couchot P.C., represents Palmdale Hills in its restructuring effort. The Company estimated assets and debts of $100 million to $500 million in its Chapter 11 petition. TECHDYNE LLC: Wants Until Jan. 20 to Propose Reorganization Plan ---------------------------------------------------------------- Techdyne, LLC, asks the U.S. Bankruptcy Court for the District of Arizona to extend its exclusive periods to file and solicit acceptances for the proposed plan of reorganization until Jan. 20, 2012, and March 20, 2012, respectively. This is the Debtor's first request for exclusivity extension. The Debtor relates that its needs more time to satisfy he conditions of the $1 million from its targeted new lender, Belmont Acquisitions, LLC. The Debtor says that medical approvals have not yet been received. The Debtor also notes that the loan is the centerpiece of its plan. About TechDyne, LLC Scottsdale, Arizona-based TechDyne, LLC, is a developer and entrepreneur of two patented technologies: light armor and a medical cervical devise to prevent premature births. The Company filed for Chapter 11 protection (Bankr. D. Ariz. Case No. 11-16739) on June 9, 2011. Judge Charles G. Case, II, presides over the case. In its Schedules, the Debtor disclosed $100,000,070 in assets and $701,313 in debts. The petition was signed by Benjamin V. Booher, Sr., managing member. The U.S. Trustee for Region 8, has not appointed an official committee of unsecured creditors in the Debtor's case because an insufficient number of persons holding unsecured claims have expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint such a committee should interest develop among the creditors. THERMOENERGY CORP: Amends 54.1 Million Common Shares Offering ------------------------------------------------------------- ThermoEnergy Corporation filed with the U.S. Securities and Exchange Commission Amendment No.3 to Form S-1 registration statement relating to the resale of up to 54,166,684 shares of common stock, par value $0.001 per share, of ThermoEnergy Corporation that may be sold from time to time by Security Equity Fund, Mid Cap Value Fund, SBL Fund, Series V (Mid Cap Value), Security Equity Fund, Mid Cap Value Institutional Fund, et. al. The Company will not receive any proceeds from the sale of the Common Stock by the selling stockholders. The selling stockholders may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of Common Stock or interests in shares of Common Stock on any market or trading facility on which the Company's shares are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices. No underwriter or other person has been engaged to facilitate the sale of shares of the Company's Common Stock in this offering. The Company is paying the cost of registering the shares covered by this prospectus as well as various related expenses. The selling stockholders are responsible for all discounts, selling commission and other costs related to the offer and sale of their shares. The Company's Common Stock is currently traded on the Over-the- Counter Bulletin Board under the symbol "TMEN.OB." On Oct. 14, 2011, the last reported sale price of our Common Stock on the OTCBB was $0.19 per share. A full-text copy of the amended prospectus is available for free at http://is.gd/feu46m About ThermoEnergy Corporation Little Rock, Ark.-based ThermoEnergy Corporation is a clean technologies company engaged in the worldwide development of advanced municipal and industrial wastewater treatment systems and carbon reducing clean energy technologies. The Company reported a net loss of $9.85 million on $2.87 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $12.98 million on $4.01 million of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $4.33 million in total assets, $15.98 million in total liabilities and a $11.65 total stockholders' deficiency. As reported by the TCR on April 7, 2011, Kemp & Company, a Professional Association, in Little Rock, Arkansas, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred net losses since inception and will require substantial capital to continue commercialization of the Company's technologies and to fund the Companies liabilities. THINK3 INC: AZA Wins Bankruptcy Rulings for Versata FZ ------------------------------------------------------ The Houston complex commercial litigation law firm of Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing P.C. recently won important rulings for firm client Versata FZ, LLC, that protect the company's intellectual property rights in computer-aided design software. AZA lawyers Demetrios Anaipakos and Kinan Romman won a two-day September trial in the U.S. Bankruptcy Court for the Western District of Texas on behalf of Versata, a Dubai-based company that owns the intellectual property of Austin-based Think3. In the ruling, U.S. Bankruptcy Judge H. Christopher Mott of Austin found that Versata is the sole owner of the contested Think3 software. The judge also ruled that an Italian bankruptcy proceeding based on a Think3 branch located in that country is not recognized as the proper forum for disposition of Think3 debt. "We are very happy with the rulings. An Italian bankruptcy trustee had asked the U.S. court to declare Italy was the proper place for these questions, and Versata is very pleased that effort failed," says Mr. Anaipakos, a founding member of Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing P.C., also known as AZA. In addition to not recognizing the Italian proceedings, the Austin court ruled that it maintains jurisdiction over the Italian trustee who asked for the trial. The court also ruled that Versata is the exclusive owner worldwide (excluding only China) of all right, title and interest in and to all of the intellectual property of Think3. China was excluded by the court because it was also excluded in the Versata-Think3 purchase contract in 2010. The case that included the property rights ruling is Case No. 11- 11252, and the Italian jurisdiction ruling is in Case No. 11- 11925. Both cases are in the Western District of Texas. Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing P.C., or AZA, is a Houston-based law firm that is home to true courtroom lawyers with a formidable track record in complex commercial litigation, including energy, intellectual property, securities fraud, construction, and business dispute cases. AZA is one of only 32 firms in the U.S. to be recognized as "awesome opponents" in a nationwide poll of corporate general counsel who were asked to name the law firms they hope their companies never have to face in court. In fact, AZA has been hired on many occasions by the same companies the firm has prevailed against at trial. About think3 Think3 Inc. develops computer-aided design software. Think3 has been a debtor in corporate reorganization proceedings under the laws of Italy pending before the Court of Bologna since March 14, 2011. Dr. Andrea Ferri was appointed to act as trustee in the Italian Proceedings. Think3 sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 11-11252) on May 18, 2011, in Austin, its hometown, three months after creditors filed an involuntary bankruptcy petition against the company in a court in Bologna, Italy. The company didn't oppose the involuntary bankruptcy. Rebecca Roof was appointed as chief restructuring officer. The Italian trustee filed a Chapter 15 petition (Bankr. W.D. Tex. Case No. 11-11925) for Think3 in bankruptcy court in Austin on Aug. 1, claiming she has the right to control the company's restructuring through the Italian court. Since the Italian bankruptcy was filed, there have been continuing disputes over the right to control the company's assets. ESW Capital LLC acquired Think3 in September. The primary debt is a US$23 million tax liability in Italy. The Italian Trustee is represented by Duane Morris LLP. The Debtor disclosed US$0 in assets and US$45,447,716 in liabilities as of the Chapter 11 filing. Versata FZ-LLC, Versata Development Group, Inc., Versata Software, Inc., ESW Capital, LLC, the parent of Think3, and Gensym Cayman L.P., the DIP Lender, are represented by Fulbright & Jaworski L.L.P., and Morrison & Foerster LLP. TOWNSEND CORP: Stipulation on Cash Use/Floor Plan Financing Okayed ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Central District of California, on Oct. 17, 2011, entered a final approving the emergency motion of Townsend Corporation and LRJC, Inc., for authorization to (i) use cash collateral and to pay the expenses set forth in the budgets through and including Jan. 7, 2012, and (ii) obtain postpetition financing from BMW Financial Services NA, LLC, the Debtors' primary secured creditor, in accordance with the terms of the Stipulation. As reported in the TCR on Oct. 4, 2011, the Debtors told the Court that only through the stipulation and, in particular, the postpetition financing provided under the stipulation, can the Debtors continue to operate their business and maintain going concern value. As of the Petition Date, the amount the Debtors owed to BMW FS was approximately $10,284,316. The BMW FS Claim is allegedly cross- guaranteed and secured by a first priority lien on substantially all of the Debtors' assets, including the Debtors' cash collateral. In summary, under the Stipulation, (1) the Debtors will continue to use cash collateral, unless and until there is a default or the term of the Stipulation expires without written agreement between the parties to extend cash collateral use, (2) BMW FS will continue to provide flooring loans to the Debtors for New Vehicles under the terms that were in existence between the parties as of the Petition Date, as modified by the Stipulation, and (3) BMW FS, at its discretion, may provide flooring loans of up to $750,000 for each Debtor under the terms that were in existence between the parties as of the Petition Date, as modified by the Stipulation. A copy of the emergency motion for the entry of an order approving the stipulation is available for free at: http://bankrupt.com/misc/townsend.dkt39.pdf About Townsend Corp. and LRJC Auto dealers Townsend Corporation, d/b/a Land Rover Jaguar Anaheim Hills, and LRJC, Inc., d/b/a Land Rover Jaguar Cerritos, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case Nos. 11-22690 and 11-22695) on Sept. 9, 2011. Judge Robert N. Kwan presides over the cases. Martin J. Brill, Esq., and Todd M. Arnold, Esq. -- mjb@lnbyb.com and tma@nbyb.com -- at Levene, Neale, Bender, Yoo & Brill LLP, in Los Angeles, represent the Debtors. Each of the Debtors estimated $10 million to $50 million in both assets and debts. The petitions were signed by Ernest W. Townsend, IV, the president. TP INC: Case Converted to Ch. 7 Liquidation; Trustee Named ---------------------------------------------------------- The Hon. Stephani W. Humrickhouse of the Bankruptcy Court for the Eastern District of North Carolina converted the Chapter 11 case of TP, Inc., to one under Chapter 7 of the Bankruptcy Code. As reported in the Troubled Company Reporter on Sept. 12, 2011, Algernon L. Butler, III, appointed trustee of TP Inc., asked the Court to convert the Debtor's case to one under Chapter 7 of the Bankruptcy Code. The trustee filed the Chapter 7 Conversion Motion after conducting an investigation into the assets, liabilities and financial affairs of the Debtor. The Court ruled that these grounds, among other things, constitute cause for the conversion of the case: a. the unauthorized lease of property of the estate by the debtor-in-possession, and the collection by the Debtor's president and owner of 50% of the Debtor's stock, Ronald Bryant, of the rents of property of the estate for his individual benefit; b. the failure of the Debtor to keep its property insured; c. the failure of the Debtor to pay property taxes on its property; d. the failure of the Debtor to comply with a court order, to the extent that it instructed its counsel to refuse to comply with a turnover of funds required by the consent order entered by the Court on Feb. 17, 2011; The Court also approved the appointment of Algernon L. Butler, III, who served as Chapter 11 trustee for the estate prior to conversion, as Chapter 7 trustee. About TP, Inc. Boone, North Carolina-based TP, Inc., is in the business of property development and currently owns a various tracts of real estate in and around North Topsail, Topsail Beach, and Surf City, North Carolina. The Company filed for Chapter 11 protection (Bankr. E.D.N.C. Case No. 10-01594) on March 1, 2010. David J. Haidt, Esq., at Ayers, Haidt & Trabucco, P.A., represented the Debtor. The Debtor tapped Trawick H. Stubbs, Jr., and Stubbs & Perdue, as counsel. In its schedules, the Debtor disclosed $13,156,424 in assets and $4,129,049 in liabilities. Algernon L. Butler, III, is the duly-appointed Chapter 11 trustee in the case of TP Inc., and is represented by Butler & Butler, LLP, as counsel. TRANS ENERGY: To Restate March 31 Quarterly Report -------------------------------------------------- As a result of an identified error, Trans Energy Inc. management recommended to the Audit Committee of Trans Energy, Inc., Board of Directors to correct certain components of the Company's consolidated balance sheets, statements of operations, statement of stockholders' equity and statements of cash flow, as of and for the three months ended March 31, 2011. The audit committee agreed with management's recommendation, and it was concluded that the financial statements as of and for the aforementioned period should no longer be relied upon. Management has discussed this matter with Maloney and Novotny LLC the Company's independent registered public accounting firm. The identified error related to not accruing for an expense associated with the sale of certain assets that was incurred during the three months ended March 31, 2011, which was not properly recorded in the previously filed Form 10-Q. As a result of this error, the Company determined that the consolidated balance sheets, consolidated statements of operations, consolidated state of stockholders' equity and consolidated statements of cash flows for the three months ended March 31, 2011, and at March 31, 2011, should be restated on Form 10-Q/A. The Company evaluated these adjustments both quantitatively and qualitatively and determined that no other prior periods needed adjusted. The Company anticipated that the 10-Q/A for the three months ended March 31, 2011, will be filed in the coming day. About Trans Energy West Virginia-based Trans Energy, Inc. -- http://www.transenergyinc.com/-- is an independent exploration and production company focused on exploring, developing and producing oil and natural gas in the Appalachian Basin. The common shares of the Company are listed for trading on the Over The Counter Bulletin Board under the symbol "TENG". According to the Troubled Company Reporter on Nov. 9, 2010, Trans Energy, Inc., and CIT Capital USA Inc. entered into a forbearance letter agreement on Oct. 29, 2010, whereby CIT agreed to forebear from exercising its rights and remedies against the Company and its property until Dec. 31, 2010. The forbearance relates to a senior secured revolving credit facility. The October Forbearance Letter extends the terms and provisions of the parties' earlier forbearance agreement entered into on July 9, 2010, that extended the forbearance period to Oct. 29, 2010. As reported by the TCR on April 18, 2011, Maloney + Novotny, LLC, in Cleveland, Ohio, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has generated significant losses from operations and has a working capital deficit of $19,699,824 at Dec. 31, 2010. TRANS NATIONAL: Expects Short Stay in Bankruptcy ------------------------------------------------ Jim O'Neill at Fierce Enterprise Communications reports that Trans National Communications told its channel partners during an invitation-only teleconference on Oct. 11, 2011, that it expects to restructure its finances and emerge from bankruptcy quickly. The report says the company also assured partners it would continue to make commission payments. The report relates Mike Ketchum, Intelisys' finance VP, told CRN that TNCI assured partners that there would be no disruption in commission payouts. Based in Boston, Massachusetts, Trans National Communications provides telecommunications services for businesses. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Mass. Case No. 11-19595) on Oct. 9, 2011. Judge William C. Hillman oversees the case. Harold B. Murphy, Esq., at Murphy & King, represents the Debtor. The Debtor listed assets in the range of $1 million to $10 million and debts in the range of $10 million to $50 million. TRAVELPORT INC: Bank Debt Trades at 16% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Travelport, Inc., is a borrower traded in the secondary market at 84.20 cents-on- the-dollar during the week ended Friday, Oct. 14, 2011, an increase of 1.95 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Aug. 23, 2015. The loan is one of the biggest gainers and losers among 78 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Travelport Holdings Travelport Holdings is the direct parent of Travelport Limited, is a broad-based business services company and a leading provider of critical transaction processing solutions to companies operating in the global travel industry. With a presence in 160 countries and approximately 3,500 employees, Travelport is comprised of the global distribution system (GDS) business, which includes the Galileo and Worldspan brands and its Airline IT Solutions business, which hosts mission critical applications and provides business and data analysis solutions for major airlines. Travelport also owns approximately 48% of Orbitz Worldwide (NYSE: OWW), a leading global online travel company. Travelport is a private company owned by The Blackstone Group, One Equity Partners, Technology Crossover Ventures, and Travelport management. Travelport Holdings Limited is a holding company with no direct operations. Its principal assets are the direct and indirect equity interests it holds in its subsidiaries, including Travelport Limited. Travelport Limited, a direct subsidiary of Travelport Holdings Limited, reported net income of $283 million on $1.061 billion of of net revenue for the six months ended June 30, 2011, compared with net income of $1 million on $1.056 billion of net revenue for the same period of 2010. Results for the six months ended June 30, 2011, includes gain of $312 million, net of tax, from the sale of sale of the Gullivers Travel Associates ("GTA") business to Kuoni Travel Holdings Limited ("Kuoni"). The sale was completed on May 5, 2011. Loss from continuing operations was $4 million during the six months ended June 30, 2011, compared with a loss of $2 million for the same period of 2010. Travelport Limited's balance sheet at June 30, 2011, showed $3.680 billion in assets, $4.136 billion in total liabilities, and a stockholders' deficit of $456 million. TRAVELPORT LLC: S&P Lifts Corp. Credit Ratings From 'SD' to 'B-' ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit ratings on travel services provider Travelport Holdings Ltd. (Travelport Holdings) and its indirect subsidiary Travelport LLC (Travelport) to 'B-' from 'SD' (selective default). The outlook is stable. At the same time, S&P raised its issue ratings on: Travelport's $1.681 billion of senior secured debt facilities to 'B' from 'CCC-'. The recovery rating on these facilities is unchanged at '2'. Travelport's $1.1 billion senior unsecured notes to 'CCC+' from 'C'. The recovery rating on the notes is unchanged at '5'. Travelport Holdings' $135 million and $287.5 million subordinated payment-in-kind (PIK) loans to 'CCC' from 'D' (default). The recovery rating on these instruments is unchanged at '6'. Travelport's and Travelport Holdings' other subordinated debt instruments to 'CCC' from 'C'. The recovery rating on these instruments is unchanged at '6'. "We also assigned our 'CCC' issue rating to Travelport's new $207.5 million second-lien term loan due December 2016, along with a recovery rating of '6'," S&P related. "The upgrades follow the completion of Travelport group's capital restructuring and reflect our view that the restructuring has improved Travelport's liquidity position," S&P said. As part of the capital restructuring, Travelport extended the maturity of $422.5 million of PIK loans in two tranches to September 2012 and December 2016. The first tranche is mandatorily exchangeable with second-lien debt in September 2012, subject to legal confirmation, or is mandatorily extended to December 2016. In addition, Travelport issued second-lien bank debt due December 2016 and made various transfers to partially exchange the PIK loan previously amounting to $715 million. "In our opinion, following the capital restructuring, liquidity is sufficient for Travelport to meet its investment and financing needs over the next 12 months. However, in our view, liquidity remains less than adequate due to a first-lien bank debt maturity in August 2013, our opinion of Travelport's weakened standing in the credit markets, and tightening covenant headroom in the future," S&P said. "We could lower the ratings in the event that an effective refinancing plan is not put in place one year in advance of the first-lien maturity, as this would weaken Travelport's liquidity position and make a payment default more likely in our view. The ratings could also come under pressure if Travelport's profitability were to fall, for instance due to airline mergers, or an increase in the number of airlines marketing flights themselves," S&P said. "Given that Travelport remains highly leveraged, we view the potential for ratings upside as limited at present," S&P said. TRIBUNE CO: Proposes IRS Pension Claim Settlement ------------------------------------------------- Tribune Company and its debtor affiliates seek permission from Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to enter into a settlement with the U.S. Department of the Treasury, Internal Revenue Service, to resolvie certain pension-related tax claims for $7 million. In May 2011, the Bankruptcy Court directed the parties to participate in a non-binding mediation before the Honorable Kevin Gross concerning the resolution of certain claims, causes of action, and related matters arising from alleged violations of the Employee Retirement Income Security Act in connection with the Tribune Employee Stock Ownership Plan and the Tribune Employee Stock Ownership Trust, an employee retirement benefit plan sponsored by Tribune. In August 2011, the parties reached a settlement agreement resolving all of the claims that were the subject of the ERISA Mediation, with the exception of: (i) the IRS's asserted priority claim for excise taxes under Section 4975 of the Internal Revenue Code in an amount totaling $37,500,000, together with interest accrued thereon, as set forth in Claim No. 6254 -- the Pension Claim; (ii) the IRS claims against the ESOP for Unrelated Business Income Tax on its share of Tribune's S-corporation taxable income; and (iii) all other claims of the IRS against Tribune and the ESOP that derive from allegations that Tribune and/or the ESOP engaged in prohibited transactions under ERISA when Tribune sold shares to the ESOP and made loans to the ESOP as part of the Leveraged ESOP Transactions that returned Tribune to private ownership in 2007. As a result of extensive negotiations, the IRS, Tribune, and the ESOP have reached a settlement resolving the ESOP Tax Issues. The salient terms of the IRS Pension Claim Settlement are: (1) No later than 30 days after authorization and approval by the Bankruptcy Court, Tribune will make a payment of $7,000,000 to the IRS in full satisfaction of the Pension Claim; (2) No later than 30 days after the payment of $7,000,000, the IRS will amend Claim No. 6254 and release the Pension Claim; (3) The IRS will not assert, seek to assess or collect any claims for Section 4975 of the Internal Revenue Code excise tax or interest thereon from or against Tribune in connection with Tribune's sale of 8,928,571 Tribune Company shares to the ESOP on April 1, 2007 or Tribune's loan of $250,000,000 to the ESOP; and (4) For the taxable periods commencing January 1, 2007 and ending on December 31, 2012, the IRS will not assert, seek to assess or collect from or against the ESOP any UBIT attributable to the ESOP's ownership of Tribune shares or attributable to the Trust's receipt of funds pursuant to a settlement in a class action lawsuit styled Neil, et al. v. Zell, et al., before the U.S. District Court for the Northern District of Illinois. A full-text copy of the IRS Pension Claim Settlement, as embodied in a closing agreement, is available for free at: http://bankrupt.com/misc/Tribune_IRSClaimClosingPact.pdf "The IRS Pension Claim Settlement resolves a major outstanding claim against Tribune on terms very favorable to the Debtors," Bryan Krakauer, Esq., at Sidley Austin LLP, in Chicago, Illinois, states. Although the Pension Claim is disputed and the Debtors believe that this claim would be subordinated under Section 510(b) of the Bankruptcy Code, the potential exposure is sizable, Mr. Krakauer asserts. Consequently, the $7 million settlement payment reasonably accounts for the risks, time, and costs associated with litigating the liability asserted by the IRS in the Pension Claim and the treatment of the claim under the Bankruptcy Code, he avers. The $7 million settlement payment is also reasonable given that under the ERISA Claim Settlement, the $3.2 million claim allowed to the U.S. Department of Labor will be reduced dollar-for-dollar by any payment made by or on behalf of Tribune to the IRS to settle or satisfy any tax obligations it may have under IRC Section 4975 relating to the ESOP Tax Issues, he says. The IRS Claim Settlement also enables the Debtors and the ESOP to avoid the imposition of any further tax liability on the ESOP arising from allegations that Tribune or the ESOP engaged in prohibited transactions under ERISA in connection with the Leveraged ESOP Transactions, Mr. Krakauer points out. He notes that the ERISA Claim Settlement is conditional upon Tribune reaching a settlement of the ESOP Tax Issues with the IRS. Accordingly, approval of the IRS Settlement Motion is essential to preserving the settlement struck in the ERISA Claim Settlement so that the Debtors may receive all of the benefits of the resolution of all of the ERISA-Related Claims, he maintains. In conjunction, Tribune Chief Restructuring Officer Donald J. Liebentritt stated in an accompanying declaration that the IRS Settlement avoids the significant costs and distraction of continuing the litigation and contested proceedings that are pending with respect to all of the ERISA-Related Claims, and avoids the potential subsequent litigation for indemnification, contribution or reimbursement that could result. On October 10, 2011, the Debtors filed with the Court a corrected IRS Settlement Motion, a full-text copy of which is available for free at http://bankrupt.com/misc/Tribune_CorrIRSSettlementMo.pdf The Debtors disclosed that the original motion electronically filed on October 7, 2011 did not contain page 12. Otherwise, no changes have been made to the text of the IRS Settlement Motion as originally filed, the Debtors said. At the Debtors' behest, Judge Carey shortened the notice period with respect to the IRS Settlement Motion so that an expedited hearing can be held on October 19, 2011. Objections to the IRS Settlement Motion are due no later than October 18. In the Debtors' motion to expedite hearing, Mr. Krakauer reasoned that because the IRS Pension Claim Settlement and the ERISA Claim Settlement require Bankruptcy Court before they can be implemented, setting the two settlement motions for hearing on October 19, 2011 is an efficient use of the Bankruptcy Court's resources. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Two competing Chapter 11 plans are being pursued in the Chapter 11 cases of Tribune. One plan is being co-proposed by the Debtors, the Official Committee of Unsecured Creditors, Oaktree Capital Management, L.P., Angelo Gordon & Co., L.P. and JPMorgan Chase Bank, N.A. A second plan is being pursued by Aurelius Capital Management LP, on behalf of its managed entities; Deutsche Bank Trust Company Americas, in its capacity as successor indenture trustee for certain series of senior notes; Law Debenture Trust Company of New York, in its capacity as successor indenture trustee for certain series of senior notes; and Wilmington Trust Company, in its capacity as successor indenture for the PHONES Notes. Judge Kevin J. Carey has not issued a ruling on the plan. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIBUNE CO: Writes on July 7 Decision In Prometheus Case -------------------------------------------------------- Tribune Company and a rival group of noteholders led by Aurelius Capital Management, L.P., wrote to Judge Carey regarding a recent decision of the U.S. Court of Appeals for the Third Circuit in Prometheus Radio Project v. FCC, Case Nos. 08-3078 et al. (3d Cir. July 7, 2011). Counsel to the DCL Plan Proponents, Eve Klindera Reed, Esq., at Wiley Rein LLP, in Washington, DC. -- ereed@wileyrein.com -- reminded Judge Carey that regardless of which Plan is confirmed in the Debtors' Chapter 11 cases, Tribune Company will need to obtain waivers of the Federal Communications Commission's newspaper/broadcast cross-ownership rule in certain markets in order to retain its newspaper/broadcast combinations. Accordingly, the applications currently on file with the FCC seek waivers of that rule in the relevant markets, she says. At the confirmation hearing, in the briefing and at the closing arguments, the parties presented their positions concerning how the FCC would be expected to respond to these waiver requests. In its July 7, 2011 decision the Prometheus case, a panel of the Third Circuit vacated and remanded the version of the NBCO rule that the FCC had adopted in 2008 on the ground that the FCC had failed to comply with the notice and comment requirements of the Administrative Procedure Act. On September 6, 2011, the Third Circuit denied a petition for rehearing en banc, and the mandate was issued on September 15, 2011. Against this backdrop, the arguments that the parties presented to the U.S. Bankruptcy Court for the District of Delaware with respect to the waiver standard under the 2008 NBCO rule are now inapplicable due to the issuance of the mandate in the Prometheus case, says Ms. Reed. In addition, whichever plan may be confirmed, the FCC will review the waiver requests in light of the Third Circuit's ruling, she notes. The waiver requests in the pending FCC applications address standards applicable under the prior rule in addition to the one that applied under the 2008 NBCO rule, she notes. Nevertheless, the proponents of any confirmed plan will need to address the Third Circuit's decision in amendments to the pending applications, she tells Judge Carey. Notwithstanding those developments, the DCL Plan Proponents and the Noteholders each believe that their arguments to the Bankruptcy Court concerning the feasibility of the Plans with respect to FCC issues continue to be valid. A full-text copy of the Third Circuit's decision dated July 7, 2011 together with the mandate dated September 15, 2011, is available for free at: http://bankrupt.com/misc/Tribune_Sept15CARuling.pdf About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Two competing Chapter 11 plans are being pursued in the Chapter 11 cases of Tribune. One plan is being co-proposed by the Debtors, the Official Committee of Unsecured Creditors, Oaktree Capital Management, L.P., Angelo Gordon & Co., L.P. and JPMorgan Chase Bank, N.A. A second plan is being pursued by Aurelius Capital Management LP, on behalf of its managed entities; Deutsche Bank Trust Company Americas, in its capacity as successor indenture trustee for certain series of senior notes; Law Debenture Trust Company of New York, in its capacity as successor indenture trustee for certain series of senior notes; and Wilmington Trust Company, in its capacity as successor indenture for the PHONES Notes. Judge Kevin J. Carey has not issued a ruling on the plan. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TWIN CITY: Files Schedules of Assets and Liabilities ---------------------------------------------------- Twin City Bagel, Inc., filed with the U.S. Bankruptcy Court for the District of Minnesota its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $4,026,877 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $2,019,907 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $2,541,847 ----------- ----------- TOTAL $4,026,877 $4,561,754 Twin City Bagel, Inc., filed a Chapter 11 petition (Bankr. D. Minn. Case No. 11-36042) in St. Paul, Minnesota, on Sept. 27, 2011. Judge Dennis D. O'Brien presides over the case. Michael L. Meyer, Esq., at Ravich Meyer Kirkman McGrath Nauman, in Minneapolis, Minnesota, represents the Debtor as counsel. The Company estimated assets and debts of between $10 million and $50 million. Affiliate Lev Bakery, Inc., filed a separate Chapter 11 petition (Bankr. D. Minn. Case No. 11-36044) on Sept. 27, 2011. TWIN CITY BAGEL: Section 341(a) Meeting Scheduled for Nov. 1 ------------------------------------------------------------ The U.S. Trustee for Region 12 will convene a meeting of creditors of Twin City Bagel, Inc., on Nov. 1, 2011, at 1:30 p.m. The meeting will be held at Mtg Minneapolis - US Courthouse, 300 S 4th St 10th Floor. Creditors are required to submit their proofs of claim by Jan. 30, 2012. 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. Twin City Bagel Inc. and Lev Bakery Inc. -- http://www.nationalchoicebakery.com/-- bagel makers in Minnesota and South Carolina, filed Chapter 11 petitions (Bankr. D. Minn. Case No. 11-36042) on Sept. 27, 2011, in South St. Paul, Minnesota. Twin City does business as National Choice Bakery. The company was founded in 1990. Michael L. Meyer, Esq., at Ravich Meyer Kirkman McGrath Nauman, in Minneapolis, Minnesota, serves as counsel to the Debtor. Twin City listed assets of $8.1 million and debt of $4.7 million. Lev listed assets of $5.6 million against $9.3 million in debt. The companies say they intend to pay creditors in full. TWIN CITY: U.S. Trustee Appoints 3-Member Creditors' Panel ---------------------------------------------------------- Habbo G. Fokkena, the United States Trustee for Region 12, pursuant to 11 U.S.C. Sec. 1102(a) and (b), appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors of Twin City Bagel, Inc., dba National Choice Bakery. The Creditors Committee members are: 1. Northern Ingredients 1260 Grey Fox Road Arden Hills, MN 55112 ATTN: Bob Schafer Acting Chairperson Tel: (651) 789-6690 2. Ristow Trucking, Inc. PO Box 67 Hammond, WI 54015 ATTN: Chuck Nogle Tel: (800) 328-6162 3. MR Packaging Products 147 Heyward Street Brooklyn, NY 11206 ATTN: Mark Rosenfeld Tel: (718) 722-3000 Twin City Bagel Inc. and Lev Bakery Inc. -- http://www.nationalchoicebakery.com/-- bagel makers in Minnesota and South Carolina, filed Chapter 11 petitions (Bankr. D. Minn. Case No. 11-36042) on Sept. 27, 2011, in South St. Paul, Minnesota. Twin City does business as National Choice Bakery. The company was founded in 1990. Michael L. Meyer, Esq., at Ravich Meyer Kirkman McGrath Nauman, in Minneapolis, Minnesota, serves as counsel to the Debtor. Twin City listed assets of $8.1 million and debt of $4.7 million. Lev listed assets of $5.6 million against $9.3 million in debt. The companies say they intend to pay creditors in full. TYSONS TREE: Case Summary & 9 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Tysons Tree Service, Inc. P.O. Box 1545 Sterling, VA 20167 Bankruptcy Case No.: 11-17476 Chapter 11 Petition Date: October 14, 2011 Court: U.S. Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Brian F. Kenney Debtor's Counsel: John L. Lilly, Jr., Esq. THE LILLY LAW GROUP, PC 10195 Main Street, Suite I Fairfax, VA 22031 Tel: (571)432-0300 Fax: (571)432-0301 E-mail: john@thelillylawgroup.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its nine largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/vaeb11-17476.pdf The petition was signed by Mark K. O'Dell, president. ULTIMATE ESCAPES: Dec. 8 Plan Confirmation Hearing Set ------------------------------------------------------ On Oct. 6, 2011, the U.S. Bankruptcy Court for the District of Delaware approved the disclosure statement explaining Ultimate Escapes Holdings, et al.'s proposed Chapter 11 Liquidating Plan. A copy of the Court's order approving the disclosure statement is available for free at: http://bankrupt.com/misc/ultimateescapes.dsapprovalorder.pdf The Debtors will complete the distribution of the appropriate Solicitation Packages and Non-Voting Packages no later than Nov. 2, 2011, to all Holders of Claims and Interests. The Court set Oct. 28, 2011, at 5:00 p.m., as the Voting Record Date for purposes of determining (a) which Creditors or Interest holders are entitled to receive Solicitation Package and may be entitled to vote to vote on the Plan; (b) the Non-Voting Parties entitled to receive the Non-Voting Package; and (c) the counterparties to the Contracts and Leases entitled to receive the Information Package. The Court established Nov. 28, 2011, at 5:00 p.m., as the Voting Deadline, by which all Ballots accepting or rejecting the Plan must be delivered to and actually received by the Voting Agent at the Ballot Tabulation Center, unless extended by the Debtors in writing. The Court held that Dec. 8, 2011, at 10:00 a.m. will be the date for the hearing to consider the confirmation of the Plan, and Dec. 1, 2011, at 4:00 p.m. is the deadline for objections to confirmation of the Plan. As reported in the TCR on Sept. 27, 2011, a cornerstone of the Plan is the implementation of a settlement between the Debtors, CapitalSource, and each of their respective affiliates. The CapitalSource Settlement has been incorporated into the Plan, under which the final $300,000 of financing approved under the Final DIP Order will be funded on the Effective Date and apply to satisfy Allowed Administrative Claims, including any Deferred Professional Compensation Claim. CapitalSource is the Prepetition Secured Lender as well as the DIP Lender. The Plan contemplates the transfer of any "remaining assets," which include available cash and any causes of action, to a Liquidating Trust. The liquidating trustee will make distributions to the creditors pursuant to the Plan. The Plan designates six Classes of Claims and Interests. Under the Plan, claimants in Classes 1, 2 and 3 are unimpaired, while Claimants in Classes 4 and 5 are impaired. Holders of Class 6 interests are deemed to reject the Plan. Pursuant to the Plan, holders of the Class 1 Allowed Prepetition Secured Lender Claim will receive 100% payment from the proceeds from the sale of substantially all of the Debtors' Assets. Pursuant to the CapitalSource Settlement, the Allowed Postpetition Secured Lender Claim in Class 2 is deemed satisfied is full, and the DIP Lender is not entitled to vote on account of its Class 2 Claims. Holders of Allowed Tax and Other Priority claims in Class 3 will likewise be paid 100% of their claims. Holders of Allowed Other Secured Claims in Class 4 will receive, at the option of the Debtors or the Liquidating Trustee, one of the following forms of treatment: (a) full payment in Cash; (b) the Debtors will abandon the property; or (c) such other treatment as the Holder and the Debtors or the Liquidating Trustee will have agreed upon in writing; or (d) such Holder will retain its lien securing its Allowed Class 4 Other Secured Claim. Holders of Allowed General Unsecured Claims in Class will each receive its Pro Rata Share of the Distribution. Estimated recovery for this Class was not disclosed. Holders of Class 6 Interests will not receive or retain any Distribution under the Plan. Class 6 is presumed to have rejected the Plan. The black-lined copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/ultimateexcapes.blacklineDS.pdf A copy of the original Disclosure Statement is available for free at http://bankrupt.com/misc/ultimateescapes.DS.pdf About Ultimate Escapes Ultimate Escapes, Inc. -- http://www.ultimateescapes.com/-- was a luxury destination club that sold club memberships offering members reservation rights to use its vacation properties, subject to the rules of the club member's Club Membership Agreement. The Company's properties are located in various resort locations throughout the world. Kissimmee, Florida-based Ultimate Escapes Holdings, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-12915) on Sept. 20, 2010. Affiliates Ultimate Resort, LLC; Ultimate Operations, LLC; Ultimate Resort Holdings, LLC; Ultimate Escapes, Inc. (fka Secure America Acquisition Corporation); P & J Partners, LLC; UE Holdco, LLC; UE Member, LLC, et al., filed separate Chapter 11 petitions. Scott D. Cousins, Esq., Sandra G. M. Selzer, Esq., and Nancy A. Mitchell, Esq., at Greenberg Traurig LLP, assist the Debtors in their restructuring efforts. CRG Partners Group LLC is the Debtors' chief restructuring officer. BMC Group Inc. is the Company's claims and notice agent. Christopher A. Ward, Esq., Shanti M. Katona, Esq., and Peter W. Ito, Esq., at Polsinelli Shughart PC, represent the Creditors Committee. Ultimate Escapes estimated assets at $10 million to $50 million and debts at $100 million to $500 million as of the Petition Date. UNITED RENTALS: S&P Withdraws Issue-Level Rating on ABL Facility ---------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its issue-level ratings on Greenwich, Conn.-based equipment rental company United Rentals Inc. subsidiary United Rentals (North America) Inc.'s senior secured asset-based loan facility. "We withdrew the ratings after the company announced that it entered an amended and restated credit agreement, which we will not rate," S&P related. Ratings List United Rentals Inc. Corporate credit rating B/Positive Not Rated Action; Ratings Withdrawn To From United Rentals (North America) Inc. Sr secd ABL facility NR BB- Recovery rating NR 1 VIRGINIA PARSONS: Hawaii Court Dismisses Predatory Lending Suit --------------------------------------------------------------- District Judge David Alan Ezra in Hawaii dismissed a lawsuit commenced by Timothy J. Fitzgerald and Virginia Parsons against American Savings Bank, F.S.B.; Merscorp, Inc., and Mortgage Electronic Registration Systems over alleged predatory mortgage loans, according to an Oct. 13 Order, a copy of which is available at http://is.gd/m9pEuJfrom Leagle.com. The Plaintiffs reside in the State of Hawaii. In July 2007, the Plaintiffs began researching a lender to purchase a parcel of property located at 2276 W. Vineyard Street, Wailuku, Hawaii. On Dec. 17, 2007, the Plaintiffs executed a promissory note agreeing to pay $800,775 to American Savings Bank as lender. In 2009, the Plaintiffs defaulted and the Defendants initiated a non-judicial foreclosure sale. On Dec. 14, 2009, the day before the scheduled auction, Ms. Parsons filed for Chapter 11 Bankruptcy in the United States Bankruptcy Court for the District of Hawaii. On May 3, 2010, MERS was granted relief from the automatic stay in Ms. Parson's bankruptcy case. On June 15, 2011, Mr. Fitzgerald filed for Chapter 13 bankruptcy. On Nov. 8, 2010, Ms. Parsons's bankruptcy case was converted from Chapter 11 to Chapter 7, and Dane S. Field was appointed as the bankruptcy Trustee. On Feb. 8, 2011, a Discharge of Debtor was filed in Ms. Parsons' bankruptcy case. The Plaintiffs filed their Complaint on March 23, 2011. The lawsuit is TIMOTHY J. FITZGERALD AND VIRGINIA PARSONS, v. AMERICAN SAVINGS BANK, F.S.B.; MERSCORP, INC., MORTGAGE ELECTRONIC REGISTRATION SYSTEMS; MARC IOANE, ASSISTANT VP OF AMERICAN SAVINGS BANK, FSB AND CERTIFYING OFFICER OF MERS; SUSAN TILDEN LAU, SR. VP PRESIDENT OF AMERICAN SAVINGS BANK FSP AND CERTIFYING OFFICER OF MERS; AND DOES 1 THROUGH 20 INCLUSIVE, CV. No. 11-00199 DAE-RLP (D. Hawaii). WASHINGTON MUTUAL: Shareholders Challenge Inside Trading Appeal --------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review that shareholders have moved to block appeals of a ruling that pushed four major hedge funds toward a trial over insider trading in Washington Mutual Inc.'s $7 billion bankruptcy case. As reported in the Troubled Company Reporter on Oct. 14, 2011, Washington Mutual, still reeling from a bankruptcy judge's second rejection of its $7 billion creditor-payment plan, has appealed a ruling that paves the way for its shareholders to pursue insider- trading claims against prominent distressed-debt investors. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- was the holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of the equity in WMI Investment. When WaMu filed for protection from its creditors, it disclosed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500 million to $1 billion with zero debts. WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal & Manges LLP in New York City; Mark D. Collins, Esq., at Richards, Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP. The Debtor tapped Valuation Research Corporation as valuation service provider for certain assets. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New York, and David B. Stratton, Esq., at Pepper Hamilton LLP in Wilmington, Del., represent the Official Committee of Unsecured Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the Equity Committee. The official committee of equity security holders also tapped BDO USA as its tax advisor. Stacey R. Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent JPMorgan Chase, which acquired the WaMu bank unit's assets prior to the Petition Date. On Jan. 7, 2011, the Bankruptcy Court entered a 107-page opinion determining that the global settlement agreement, among certain parties including WMI, the Federal Deposit Insurance Corporation and JPMorgan, upon which the Plan is premised, and the transactions contemplated therein, are fair, reasonable, and in the best interests of WMI. However, the Opinion and related order denied confirmation, but suggested certain modifications to the Company's Sixth Amended Joint Plan of Affiliated Debtors that, if made, would facilitate confirmation. WaMu filed a Modified Sixth Amended Joint Plan and a related Supplemental Disclosure Statement, which it believes would address the Bankruptcy Court's concerns. On Sept. 13, 2011, Judge Walrath denied confirmation of WaMu's Modified Sixth Amended Plan and granted equity committee standing to prosecute claims for equitable disallowance but stayed the ruling pending mediation. Judge Walrath scheduled a status hearing for Oct. 7, 2011, at 11:30 a.m. to consider the issues to be referred to a mediator. WaMu said it would seek confirmation of a revised plan "as soon as practicable." The Plan proposes to pay more than $7 billion to creditors and incorporates a global settlement agreement resolving issues among the Debtors, JPMorgan Chase, the Federal Deposit Insurance Corp. in its corporate capacity and as receiver for WaMu Bank, certain large creditors, certain WMB senior noteholders, and the creditors' committee. The Settlement Noteholders are Appaloosa Management, L.P., Aurelius Capital Management LP, Centerbridge Partners, LP, and Owl Creek Asset Management, L.P. WATER STREET: Case Dismissed; No Party Wants Settlement in Court ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas dismissed the Chapter 11 case of Water Street Development Partners, L.P. As reported in the Troubled Company Reporter on Sept. 6, 2011, creditors and parties-in-interest Richard Bontke and Nathan Bontke, asked Court to dismiss the "single asset real estate case involving a debtor with no ongoing business to reorganize, no income, no employees, virtually no creditors and no prospects for reorganization. The Bontkes noted that the Debtor's sole asset is an undivided 50% fee interest in 81 acres of undeveloped land located at the intersection of Highway 287 and Broad Street in Mansfield, Texas, with the remaining 50% interest owned by the Bontkes. The Debtor and the Bontkes hold the property as tenants-in-common. On Sept. 20, 2011, the Court advised the Debtor, its general partner -- Water Street Management, LLC, The Bontkes, and secured creditor Wells Fargo Bank, N.A., that if they desire to resolve the disputes in the Court, the Court would deny the motion but if the parties prefer to resolve the remaining disputes other than in the Court, the Court would dismiss the chapter 11 case. The parties informed the Court that none of the them desire that the case remain on the Court's docket. Wells Fargo is represented by: Matthew T. Ferris, Esq. R. Michael Farquhar, Esq. WINSTEAD PC 5400 Renaissance Tower 1201 Elm Street Dallas, TX 75270 Tel: (214) 745-5400 Fax: (214) 745-5390 The Bontkes is represented by: Jeff P. Prostok, Esq. Matthew G. Maben, Esq. FORSHEY & PROSTOK, LLP 777 Main Street, Suite 1290 Fort Worth, TX 76102 Tel: (817) 877-8855 Fax: (817) 877-4151 About Water Street Development Partners Southlake, Texas-based Water Street Development Partners, L.P., filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case No. 11- 42841) on May 13, 2011. Judge Russell F. Nelms presides over the case. The Law Office of Mark B. French served as the Debtor's bankruptcy counsel. Robert DeRogatis is a limited partner of the Debtor and holds a 99% equity interest. Water Street Management LLC holds the other 1% stake. WATERSCAPE RESORT: Access to Cash Collateral Extended to Oct. 20 ---------------------------------------------------------------- Upon the oral application of Waterscape Resort made in open court on Oct. 4, 2011, and upon the consent of the Debtor's secured lenders U.S. Bank National Association and USB Capital Resources, Inc., Judge Stuart M. Bernstein extended the Debtor's authority to use cash collateral from Oct. 13, 2011, to Oct. 20, 2011, on the same terms and conditions as provided in the fourth agreed interim order authorizing the Debtor to use cash collateral, dated Aug. 18, 2011. As reported in the TCR on Sept. 6, 2011, the use of cash collateral will be for the sole and exclusive purpose of paying the actual and necessary expenses incurred on or after the Petition Date in the ordinary course of the operation and maintenance of the the Debtor's high rise, mixed use condominium building known as Cassa Hotel and Residences located at 66-70 West 45th Street, in New York City (the "Asset"), pursuant to the Fourth Interim Budget. The Lenders will have a continuing lien, title and security interest in post-petition rents, issues and profits to the extent provided by the mortgages and section 552(b) of the Bankruptcy Code, which lien and security interest will attach to all post-petition rents, issues and profits from the Asset. The Lenders will not, however, have a lien on actions and causes of action pursuant to Sections 544, 547, 548, 549 and 550 of the Bankruptcy Code, including claims against creditors for alleged fraudulent transfers under state law utilizing Section 544 of the Bankruptcy Code. The Lenders and their authorized representatives will be permitted reasonable access to the Asset, verification of rent rolls and monthly operating reports, and conducting any desired appraisals. About Waterscape Resort Waterscape Resort LLC, aka Cassa NY Hotel And Residences, is a Delaware limited liability company formed on or about Jan. 24, 2005. The principal office of the Debtor is at 15 West 34th Street, New York, New York 10001. On July 19, 2005, Waterscape acquired the property, consisting of the three contiguous buildings at 66, 68 and 70 West 45th Street in Manhattan, for the sum of $20 million to develop the property into a 45-storey condominium project including a luxury hotel, a restaurant and luxury residential apartments. The purchase was financed with a $17 million acquisition loan and mortgage from U.S. Bank Association. Construction of the hotel and residential units, given the name Cassa NY Hotel and Residences, commenced in July 2007. By the end of September 2010, the hotel and residential units were completed. The Debtor generates its revenue from guests who stay at the hotel and in the Debtor's residential condominium units, and from sales of unsold residential condominium units. The Debtor's hotel and rental business has produced gross revenues of approximately $17 million to $18 million on an annual basis, and by the end of September 2010, the Debtor had sold five residential apartment units for a total of approximately $12,710,340. The Debtor's Cassa NY Hotel and Residences features 165 hotel rooms, and above the hotel units, 57 residences. The Debtor's restaurant will occupy the first level below ground, but will be visible from the ground floor hotel lobby. The Debtor's restaurant is not yet open for business. The Debtor has for several months been embroiled in litigation with numerous contractors and subcontractors who have asserted alleged mechanics lien claims against the Property totaling approximately $20 million. As of the Petition Date, the Debtor had outstanding approximately $134.4 million of secured loan principal obligations under credit facilities with US Bank and USB Capital Resources, Inc. The debt is secured by liens upon all of the assets of the Debtor, including mortgages on the Debtor's real property, together with liens on all rents, proceeds and cash of the Debtor, pledges of member interests in Waterscape, and guarantees by Waterscape members and other third-party grantors. The Debtor's secured debt was incurred under three separate agreements for: (i) an acquisition and project loan; (ii) a construction loan; and (iii) a mezzanine loan; each of which was made in connection with the acquisition or development of the Debtor's property. Over the last several months, the Debtor engaged in extensive negotiations with the Secured Lenders regarding the parameters of a comprehensive restructuring. The Debtor also engaged in extensive marketing efforts and negotiations to sell its hotel assets to a non-insider buyer. The restructuring discussions between the Debtor and the Secured Lenders reached an impasse, and on March 21, 2011, UBS, the junior of the two Secured Lenders, filed a foreclosure action against the Debtor in the Supreme Court of the State of New York, County of New York. The Debtor then filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-11593) on April 5, 2011. Brett D. Goodman, Esq., and Lee William Stremba, Esq., at Troutman Sanders LLP represent the Debtor as Bankruptcy Counsel. Holland & Knight LLP serves as its special litigation counsel. The Debtor disclosed $214,285,027 in assets and $158,756,481 in liabilities as of the Chapter 11 filing. A 3-member Official Committee of Unsecured Creditors has been appointed in the Debtor's Chapter 11 case. As reported in the TCR on July 25, 2011, U.S. Bankruptcy Judge Stuart Bernstein confirmed Waterscape Resort LLC's reorganization plan on July 22, 2011, which calls for repaying much of the company's debt with proceeds from the $128 million sale of the hotel section of the development. The Plan was filed on May 6, 2011. The Plan will become effective upon the sale of the Debtor's hotel, which the Debtor estimates will occur around the end of September, 2011. WESTLAND PARCEL: Has Access to Cash Collateral Until Nov. 30 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Central District of California approved a stipulation extending Westland Parcel J Partners, LLC's access to the cash collateral until November 30, 2011. The fifth stipulation for continued cash collateral use was entered among the Debtor and secured creditors Pacific Western Bank and T. Courtney Dubar. The stipulation provides for: -- the Debtor may exceed any line item in the budget by up to 15% in any month as long as the overage for all items in the aggregate does not exceed 15% of the total budget for the month; -- the use of the cash collateral to pay for repairs; and -- as adequate protection, creditors holding a secured interest in the cash collateral will be granted replacement liens to the same validity and priority as their prepetition date liens. A continued hearing on the Debtor's continued use of the cash collateral is scheduled for November 23, 2011. About Westland Parcel J Partners Long Beach, California-based Westland Parcel J Partners, LLC, filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 10-58987) on Nov. 15, 2010. Jeffrey S Shinbrot, Esq., at The Shinbrot Firm, assists the Debtor in its restructuring effort. Kallman & Co., LLC, serves as its certified public accountants. AG Commercial serves as its leasing broker. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate David William Neary (Bankr. C.D. Calif. Case No. 10- 39802) filed separate Chapter 11 petition on July 20, 2010. WHITTON CORP: Court OKs FamCo Advisory as Interest Rate Expert -------------------------------------------------------------- Hon. Bruce A. Markell of the U.S. Bankruptcy Court for the District of Nevada authorized Whitton Corporation and South Tech Simmons 3040C, LLC to employ FamCo Advisory Services, as interest rate expert. As reported in the Troubled Company Reporter on Sept. 16, 2011, upon retention, the firm, is expected provide these services: (a) Reading Material, Surveys and Computing Financial Ratios. FamCo shall perform a review of appropriate documents, such as Court filings and appraisals of real property, and of Debtors' financial statistics in these Chapter 11 cases. Via telephonic and other means, FamCo will conduct surveys of market participants known to it in order to determine according to professional opinion current market conditions for borrowers and lenders of property such as the Debtors; (b) Writing and Providing Report. After reaching an opinion, using information and opinions gathered as to an appropriate rate of interest, and any other matters that appear as pertinent to FamCo regarding Confirmation of Debtors' Plan, Kenneth Funsten shall write and submit to Client a Report on An Appropriate Rate of Interest for Debtors' Plan (the "Report"); (c) Appearing for Deposition(s). Subject to advance notice, Kenneth Funsten shall travel to Las Vegas, Nevada, and make himself available during the course of a day for a site visit and to have his deposition(s) taken by creditors' counsel(s). Debtors agreed to pay FamCo's hourly rates in cash, plus expenses, with $15,000 to be paid initially, via federal bank wire, as a non-refundable advance for work to be performed, which will be applied to fees and costs, subject to the provisions of the Expert Agreement. The firm's rates are: Services Rendered Rates ----------------- ----- Reading Material, Surveys and Computing Financial Ratios $425/hour Appearing for Deposition(s) $425 for travel $600 for deposition Appearing for Confirmation Hearing $425 for working travel and $600 for time spent in court To the best of the Debtors' knowledge, FamCo is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. About Whitton Corporation Henderson, Nevada-based Whitton Corporation filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-32680) on Dec. 5, 2010. Hal L. Baume, Esq., Brett A. Axelrod, Esq., and Anne M. Loraditch, Esq., at Fox Rothschild LLP, in Las Vegas, Nev., serve as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. South Tech Simmons 3040C, LLC, filed a separate petition (Bank. D. Nev. Case No. 10-32857) on Dec. 8, 2010. WISP RESORT: Owner Enters Chapter 11 Protection ----------------------------------------------- Dow Jones' DBR Small Cap reports that the operator of Maryland vacation spot Wisp Resort filed for Chapter 11 bankruptcy protection after the battered real-estate market made it tough to sell homes that surround its golf courses and 32 ski hills. WS MINERAL: Wins Court Nod to Employ Richard Ward as Counsel ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Texas authorized WS Mineral Holdings LLC to employ Richard Ward as its legal counsel. About South of the Stadium I, LLC South of the Stadium I, LLC, in Carrollton, Texas, filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 11-43278) on June 6, 2011. Debtor-affiliates 261 CW Springs LTD (Bankr. N.D. Tex. Case No. 11-33757), WS Minerals LLC (Bankr. N.D. Tex. Case No. 11-43273), and WS Mineral Holdings LLC (Bankr. N.D. Tex. Case No. 11-43290) also filed on the same day. Judge D. Michael Lynn presides over the cases. Richard W. Ward, Esq. -- rwward@airmail.net -- Plano, Texas, serves as the Debtors' bankruptcy counsel. South of the Stadium I, WS Minerals LLC, and WS Mineral Holdings LLC each estimated assets and debts of $10 million to $50 million in their petitions. 261 CW Springs estimated assets and debts of $1 million to $10 million in its petition. The petitions were signed by Jeff Shirley, authorized representative. WS MINERAL: Gets Approval to Employ Ross Helbing as Appraiser ------------------------------------------------------------- WS Mineral Holdings LLC obtained approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Ross Helbing of Neugent & Helbing, Inc. as appraiser. About South of the Stadium I, LLC South of the Stadium I, LLC, in Carrollton, Texas, filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 11-43278) on June 6, 2011. Debtor-affiliates 261 CW Springs LTD (Bankr. N.D. Tex. Case No. 11-33757), WS Minerals LLC (Bankr. N.D. Tex. Case No. 11-43273), and WS Mineral Holdings LLC (Bankr. N.D. Tex. Case No. 11-43290) also filed on the same day. Judge D. Michael Lynn presides over the cases. Richard W. Ward, Esq. -- rwward@airmail.net -- Plano, Texas, serves as the Debtors' bankruptcy counsel. South of the Stadium I, WS Minerals LLC, and WS Mineral Holdings LLC each estimated assets and debts of $10 million to $50 million in their petitions. 261 CW Springs estimated assets and debts of $1 million to $10 million in its petition. The petitions were signed by Jeff Shirley, authorized representative. XL GROUP: Fitch Assigns 'BB+' Rating to $350MM Series D Shares -------------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to XL Group Ltd.'s (XL) recently announced $350 million issue of series D preference ordinary shares. Fitch has also affirmed its existing ratings on XL and its property/casualty (re)insurance subsidiaries. The Rating Outlook is Stable. The preference ordinary shares are being issued as part of the Stoneheath Re contingent capital facility. XL expects to use the funds received in connection with the issuance to partially repay existing senior notes maturing in January 2012, with the balance available for general corporate purposes. The rating assigned to the newly issued preferred securities is equivalent to Fitch's rating on the company's currently outstanding series E preference ordinary shares. Fitch's rationale for the affirmation of XL's ratings reflects the company's solid capitalization, reasonable financial leverage and stable competitive position. The ratings also reflect anticipated challenges in a competitive property/casualty market and soft rate environment, poor underwriting results in the first half of 2011 and the potential drag from the remaining run-off life business. XL continues to maintain reasonable financial leverage with an equity-credit adjusted debt-to-total capital ratio (including accumulated other comprehensive income) of 16.8% at June 30, 2011. Following XL's $350 million preferred share issuance and recent senior note issuance ($400 million), repurchase of its series C preference ordinary shares ($71 million) and conversion of its equity security units ($575 million) from senior debt to common equity, pro forma equity credit adjusted debt-to-total capital declines slightly to about 16.5% at June 30, 2011, remaining below Fitch's expected range of 20% - 25%. Fitch also expects the company to maintain run-rate operating earnings-based interest and preferred dividend coverage of at least the mid single digits. XL's competitive position remains stable, with total property/casualty net premiums written up 11% in the first six months of 2011, with both XL's Insurance and Reinsurance segments experiencing premium growth. The increases are due to targeted new business growth, strong mid-to-upper 80% retentions at historical levels across all lines of business and the recapture of some of the previously lost business, partially offset by the continuing competitive market environment and overall flat rate environment. Following net income posted by XL in 2010, the company recorded a slight net loss of $1.6 million in the first half of 2011 due to sizable catastrophe losses from the Japanese and New Zealand earthquakes and the Australian floods. As a result, XL's core property/casualty operations posted a higher GAAP combined ratio of 110.1% for the first six months of 2011 compared to a 96.4% combined ratio for the first six months of 2010. Excluding the impact of catastrophes (17.6 points) and favorable reserve development (7.7 points), XL's combined ratio for the first six months of 2011 was 100.2%, up 4.9 points from the first six months of 2010. XL also recently announced a preliminary pre-tax net loss estimate related to third quarter 2011 catastrophes in the range of approximately $90 million to $120 million. The key rating triggers that could result in an upgrade include operating earnings that remain in line with higher rated peers, overall flat to favorable loss reserve development, continued moderate level of volatility in the investment portfolio, debt-to- total capital maintained below 20% and continued improvement in insurance subsidiary capitalization. The key rating triggers that could result in a downgrade include significant charges for reserves, investments, or runoff business that affect equity and the capitalization of the insurance subsidiaries, debt-to-total capital maintained above 25% and future earnings that are significantly below industry levels. Fitch assigns the following rating: XL Group Ltd. -- $350 million series D preference ordinary shares 'BB+'. Fitch affirms the following ratings with a Stable Outlook: XL Group Ltd. -- IDR at 'BBB+'; -- $600 million 5.25% senior notes due 2014 at 'BBB'; -- $350 million 6.375% senior notes due 2024 at 'BBB'; -- $400 million 5.75% senior notes due 2021 at 'BBB'; -- $325 million 6.25% senior notes due 2027 at 'BBB'; -- $1,000 million 6.375% series E preference ordinary shares at 'BB+'. XL Capital Finance (Europe) PLC -- IDR at 'BBB+'; -- $600 million 6.5% guaranteed senior notes due 2012 at 'BBB'. Stoneheath Re -- IDR at 'BBB+'; -- $350 million non-cumulative perpetual preferred at 'BB+'. Fitch has also affirmed at 'A' the IFS ratings of the following XL Group Ltd. (re)insurance subsidiaries with a Stable Outlook: -- XL Insurance (Bermuda) Ltd; -- XL Re Ltd; -- XL Insurance Switzerland; -- XL Re Latin America Ltd; -- XL Insurance Company Limited; -- XL Insurance America, Inc.; -- XL Reinsurance America Inc.; -- XL Re Europe Limited; -- XL Insurance Company of New York, Inc.; -- XL Specialty Insurance Company; -- Indian Harbor Insurance Company; -- Greenwich Insurance Company; -- XL Select Insurance Company. YAZOO PIPELINE: Court OKs Ch. 7 Trustee's 2nd Amended Complaint --------------------------------------------------------------- Bankruptcy Judge Marvin Isgur granted, in part, and denied, in part, the request of plaintiffs, including Joseph M. Hill -- the chapter 7 trustee for Yazoo Pipeline Co., LP, Sterling Exploration & Production Co., LLC, and Matagorda Operating Co., LLC -- for leave to file a Second Amended Complaint against New Concept Energy, Inc., and other defendants. The lawsuit was filed Dec. 2, 2010, by the Chapter 7 Trustee, Mining Oil, Inc., and Randall O. Sorrels against New Concept Energy, Coastland Operations LLC, Gulf Coast Exploitation LLC, Dave Morgan, Charles Cheatham, and John Thibeaux. The Plaintiffs' allegations concern misconduct that occurred before and after the conversion of the cases. According to the Plaintiffs, one or more of the Defendants (i) diverted estate assets without Court authorization, (ii) misrepresented NCE's interest in the Debtor's assets, (iii) permitted a valuable oil and gas lease to lapse with the intent that the lease to be purchased by another entity, (iv) misappropriated Debtors' data and cash collateral, and (v) filed inaccurate and misleading budgets and monthly operating reports. The Plaintiffs have settled with Gulf Coast and Mr. Thibeaux. The lawsuit is, Joseph M. Hill, et al., v. New Concept Energy, Inc., et al., Adv. Proc. No. 10-3655 (Bankr. S.D. Tex.). A copy of the Court's Oct. 14, 2011 Memorandum Opinion is available at http://is.gd/wH3Wz4from Leagle.com. Yazoo Pipeline Co., LP, Sterling Exploration & Production Co., LLC, and Matagorda Operating Co., LLC sought chapter 11 protection (Bankr. S.D. Tex. Case No. 08-38121) on Dec. 23, 2008. The cases were converted to chapter 7 liquidation proceedings on Dec. 8, 2009, and Joseph Hill was appointed as the Chapter 7 Trustee for the Debtors' estates. Sterling was an oil and gas exploration and production company. Yazoo was an oil and gas pipeline companym transporting Sterling's and other companies' oil and gas to shore for delivery to purchasers. Matagorda was the general partner of Yazoo and the manager of Sterling. YELLOWSTONE MOUNTAIN: Court Rejects Claims for Membership Deposit ----------------------------------------------------------------- Bankruptcy Judge Ralph B. Kirscher expunged most of the claims asserted by James J. Dolan and his kin for damages arising from the supposed rejection of their membership in Yellowstone Mountain Club. Under the Residential Membership Agreements, resident members are, in the event of recall of a membership, entitled to a refund of the Membership Deposit. Judge Kirscher noted that the Dolan Family claimants, under the plain language of the Company Membership Agreements, did not pay any membership deposit. As such, the Dolan Family claimants asserting damages for rejection of their Company Memberships are not entitled to any damage claim. The Yellowstone Club Liquidating Trust had challenged the Dolans' claims. Judge Kirscher, however, declined to enter a summary judgment ruling on the trust's objection to Mr. Dolan's Claim No. 704 -- a claim of $250,000 for "Contract - Refund of Pioneer Membership Deposit[.]" -- because a material fact exists as to whether Mr. Dolan's membership agreement was accepted by the party who acquired substantially all the Debtors' assets. The Court will hold another hearing on the remaining claim on Dec. 6. A copy of Judge Kirscher's Oct. 12, 2011 Memorandum of Decision is available at http://is.gd/Wre8R3from Leagle.com. About Yellowstone Mountain Located near Big Sky, Montana, Yellowstone Mountain Club LLC -- http://www.theyellowstoneclub.com/-- is a private golf and ski community with more than 350 members, including Bill Gates and Dan Quayle. The Company was founded in 1999. Yellowstone Club and its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Montana, Case No. 08-61570) on Nov. 10, 2008. The Company's owner affiliate, Edra D. Blixseth, filed for Chapter 11 relief on March 27, 2009 (Case No. 09-60452). In June 2009, the Bankruptcy Court entered an order confirming Yellowstone's Chapter 11 Plan. Pursuant to the Plan, CrossHarbor Capital Partners LLC acquired equity ownership in the reorganized Club for $115 million. Attorneys at Bullivant Houser Bailey PC and Bekkedahl & Green PLLC represented the Debtors. The Debtors hired FTI Consulting Inc. and Ronald Greenspan as CRO. The official committee of unsecured creditors were represented by Parsons, Behle and Latimer; and James H. Cossitt, Esq., as counsel. Credit Suisse, the prepetition first lien lender, was represented by Skadden, Arps, Slate, Meagher & Flom. ZOGENIX INC: To Hold "Say-on-Pay" Votes on Triennial Basis ---------------------------------------------------------- At the 2011 Annual Meeting, Zogenix, Inc.'s stockholders voted on, among other matters, a proposal regarding the preferred frequency of stockholder advisory votes on the compensation of the Company's named executive officers?or future "say-on-pay" votes. As previously reported by the Company, a majority of the votes cast on the frequency proposal were cast in favor of holding the "say- on-pay" vote on a triennial basis. In consideration of the stockholder vote at the 2011 Annual Meeting on the frequency proposal, the Company's Board of Directors decided that the Company will hold an advisory "say-on-pay" vote on a triennial basis until the next stockholder vote on the frequency of "say-on-pay" votes, which will be no later than the Company's annual meeting of stockholders in 2017. About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. The Company's balance sheet at June 30, 2011, showed $51.4 million in total assets, $58.5 million in total liabilities, and a stockholders' deficit of $7.1 million. As reported in the TCR on March 8, 2011, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about Zogenix's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's recurring losses from operations and lack of sufficient working capital. ZOO ENTERTAINMENT: Currently in Talks of Forbearance with Panta --------------------------------------------------------------- As previously reported, Zoo Publishing, Inc., Zoo Entertainment, Inc.'s wholly-owned subsidiary, entered into the First Amendment to Amended and Restated Factoring and Security Agreement with Panta Distribution, LLC, pursuant to which the parties agreed to amend that certain Amended and Restated Factoring and Security Agreement dated as of June 24, 2011, by and between Zoo Publishing and Panta, to increase the amount of credit available under the Factoring Agreement and to amend certain other terms and conditions of the Factoring Agreement. The Company previously disclosed the entry into the Factoring Agreement in its Current Report on Form 8-K filed with the Commission on June 30, 2011. On Oct. 7, 2011, Zoo Publishing received a letter from Panta pursuant to which Panta alleges that certain events of default have occurred and continue to exist under Section 17.1 of the Amendment, including (i) Zoo Publishing's failure to comply with the minimum payment amounts due to Panta as set forth in Section 20.1 of the Factoring Agreement, (ii) the unauthorized forgiveness of certain accounts receivable owed by a customer in violation of Section 13.1 of the Factoring Agreement, and (iii) the existence of a material adverse effect as Zoo Publishing has declared its inability to meet its debts as such debts become due. Events of default, if not waived, would prevent the Company from borrowing and accelerate all of Zoo Publishing's obligations under the Factoring Agreement. As of Oct. 13, 2011, the amount of the direct financial obligation under the Factoring Agreement is approximately $1,175,000 and would be immediately due and payable at Panta's election. The Factoring Agreement also allows Panta to charge interest at a rate of 15% per annum on such obligation. Panta has notified Zoo Publishing that it reserves all of its rights and remedies available following the occurrence of an event of default under the Factoring Agreement, but to date, none of the obligations under the Factoring Agreement has been accelerated. Zoo Publishing is currently in discussions with Panta regarding the possibility of amending the current terms of the Factoring Agreement or obtaining a waiver or forbearance of the aforementioned events of default, although Zoo Publishing can provide no assurance that Panta will not elect to accelerate all of Zoo Publishing's obligations under the Factoring Agreement. About Zoo Entertainment Cincinnati, Ohio-based Zoo Entertainment, Inc. (NASDAQ CM: ZOOG) is a developer, publisher and distributor of interactive entertainment for Internet-connected consoles, handheld gaming devices, PCs, and mobile devices. The Company's balance sheet at June 30, 2011, showed $8.8 million in total assets, $14.0 million in total liabilities, and a stockholders' deficit of $5.2 million. As reported in the TCR on Apr 26, 2011, EisnerAmper LLP, in Edison, N.J., expressed substantial doubt about Zoo Entertainment's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has both incurred losses and experienced net cash outflows from operations since inception. * Agape Owner Cosmo Sentenced to 25 Years in Ponzi Scheme --------------------------------------------------------- Dow Jones' DBR Small Cap reports that a Long Island investment manager was sentenced to 25 years in prison in a massive, $400 million Ponzi scheme that revolved around investments to purportedly fund short-term commercial loans. * S&P Puts 'CCC' Ratings on 3 Calif. Tax Bonds on Watch Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services has placed 16 of its underlying ratings on certain California redevelopment agencies' (RDA) tax allocation bonds (TABs) on CreditWatch with negative implications. "The CreditWatch is due to the agencies' reliance on unpledged resources to meet debt service payment obligations, particularly in light of new legislation regarding redevelopment agencies that we believe could further deteriorate already-weakened credit characteristics," said Standard & Poor credit analyst Sussan Corson. "The affected agencies do not currently demonstrate what we consider to be adequate maximum annual debt service (MADS) coverage by pledged revenue or pledged reserve funds. Should the state supreme court uphold legislation passed by California earlier this year, we believe that agencies are likely to see transfers of previously unencumbered fund balances that they might have otherwise used to cover pledged revenue shortfalls. Therefore, since the agency will likely have access only to pledged monies, particularly debt service reserves to cover shortfalls in pledged revenue, we believe these TABs with inadequate debt service coverage could be further constrained," S&P related. On June 30, 2011, Gov. Jerry Brown signed the fiscal 2012 state budget putting into effect two bills dissolving redevelopment agencies that do not divert a specified annual amount of tax increment revenue to schools and local special districts. The legislation provides for the continued repayment of existing tax increment bonds, as scheduled, by successor agencies. Assembly Bill x1 26 governs the dissolution of redevelopment agencies (dissolution legislation). Assembly Bill x1 27 permits redevelopment agencies to continue to exist if, by no later than Nov. 1, 2011, the city or county enacts an ordinance to divert a specified amount of tax increment revenue to schools and local special districts (continuing legislation). In early August 2011, the California Supreme Court agreed to hear a case challenging both pieces of legislation; the court action temporarily stays the dissolution of the agencies as well as the payments to schools and local special districts, but agencies are still subject to portions of the dissolution legislation that prohibit them from issuing debt, entering into contracts, purchasing property, or transferring assets. The court designed an expedited briefing schedule to render a decision by Jan. 15, 2012. "The underlying TAB ratings on CreditWatch are already speculative-grade but we believe that the new law, if upheld, is likely to accelerate credit deterioration for these bonds assuming no recovery in project area AV," S&P said. Ratings Placed On CreditWatch Negative Issuer Series Rating Cathedral City RDA 2007 (second lien) BB Coalinga RDA 2009C BB Contra Costa RDA 2007A, 2007A-T BB+ Contra Costa RDA 1999 B Contra Costa RDA 2007B (second lien) B Desert Hot Springs RDA 2006A, 2008A, 2008B B Greenfield RDA 2002, 2006 BB+ Hercules RDA 2005 CCC Hesperia RDA 2005 BB+ Lancaster RDA 2004, 2006 BB+ Lancaster RDA 1994 BB Lancaster RDA 2003, 2003B, 2004B, 2006 (second lien) BB Oakley RDA 2008A (second lien) BB+ Riverbank RDA 2007A CCC Riverbank RDA 2007B CCC Stockton PFA 2006 B "We expect to resolve the CreditWatch after the court decision, which we expect should clarify the status of these funds for redevelopment agencies in the state," S&P said. * Default Warning Signs Appear Among Issuers of Junk Bonds ---------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that a key indicator of the health of speculative-grade companies is showing signs of weakness, raising concern that a rise in defaults could be around the corner. * Negative Pressure for U.S. Companies Due to Pension Performance ----------------------------------------------------------------- U.S. corporations and utility holding companies are experiencing negative credit pressure due to increased underfunding of their pension plans, says Moody's Investors Service in a pair of new reports. "The pressure could build for some issuers going into 2012," said Moody's Vice President Wesley Smyth, author of a report on the impacts to corporations, and of a separate report on how utility pension funds have been affected. "While not the sole driver for future ratings downgrades, we expect continuing pension underfunding will add strain to corporate and utility ratings." Discount rates -- the rates at which future benefit payments are valued in today's dollars -- have steadily decreased largely due to lower interest rates. This, combined with falling asset values, has caused a sizeable decline in the funded status of utility and corporate pension plans. For both corporates and utilities, Moody's estimates that the current funding level is approximately 73%, down from year-end 2010's 81%. "Where pre-funding of pension obligations is required by US law, increased cash funding requirements -- in tandem with debt service and other funding requirements as measured against liquidity -- will be key considerations in an uncertain environment," said Mr. Smyth. Moody's central scenario in its global macro outlook assumes a rising long-term interest rate environment over the near to medium term. "If this occurs, and assuming asset values remain constant, pension underfundings should start to return to pre 2008 levels," said Mr. Smyth. "This would be a credit positive and reduce or eliminate current ratings pressure due to pension underfundings." Moody's found that utility pension plans reduced underfunded balances at a faster pace than the average corporate industrial peer, mainly due to proportionately higher annual contributions. "We expect this credit positive trend to continue," said Mr. Smyth. The report on corporations, "Lower Discount Rates Hampering Pension Plans More Than Asset Returns," is available at moodys.com along with the report on utilities, "Rise in Utility Unfunded Pensions are Credit Negative." * Corp Bond Issuers Better Positioned Than 4 Yrs Ago, Moody's Says ------------------------------------------------------------------ U.S. non-financial companies are financially better positioned today than they were four years ago to withstand a mild recession, should one occur, according to a new report from Moody's Investors Service. Moody's says despite some recent signs of a downtick in corporate credit quality, companies generally have ample financial cushions for riding through a downturn. The refinancing and restructuring of the last few years have bolstered corporate balance sheets, which now feature markedly stronger median credit metrics due to improvements in operating earnings, reductions in interest expenses, and the accumulation of substantial amounts of cash since the credit crisis. "Our rated companies have weathered the worst of the turmoil," says Mark Gray, Managing Director of Moody's US and Americas Corporate Finance, and author of the report. "They're better positioned than they were at the height of the financial crisis and recession in 2007." "Still, we are seeing signs of change, in the recent, albeit slight, deterioration of several of our proprietary indicators of credit quality, consistent with a rise in risk-aversion in the credit markets that's evidenced by widening credit spreads and sharply declining debt issuance," adds Mr. Gray. Concerns about the global economy and some European sovereigns could lead to pressure on corporate issuers, says Moody's. The pressure would begin if market access for the lower-rated companies were to be curtailed for a prolonged period or if economies were to weaken materially. At this point, however, it is too soon to point to a downturn in corporate credit. For example, most rating outlooks for Moody's rated companies are either stable or positive, and there have been few corporate rating downgrades, reflecting the overall strength of corporate credit profiles. Moreover, Moody's Liquidity-Stress Index and Covenant Stress Index are both near record lows, indicating that very few companies are struggling with tight liquidity or covenant compliance. Moody's default forecast is quite moderate as well, with an expected US speculative-grade default rate of 2.3% a year from now, compared with 2% in September, which is far below the credit crisis peak of 14.5%. The report, entitled "Hanging Tough: Despite slight deterioration in credit quality indicators, companies maintain a cushion to withstand a downturn," can be accessed at www.moodys.com. * Sandberg Accused of Misrepresenting Chapter 7 Fees ---------------------------------------------------- Martin Bricketto at Bankruptcy Law360 reports that the Sandberg Law Firm LLC on Monday was slapped with a putative consumer class action claiming it fraudulently failed to inform bankruptcy clients that its fees in the form of post-dated checks and debit transactions were actually dischargeable debt. * Federal Reserve Adopts 'Living Wills' Rule for Riskiest Firms --------------------------------------------------------------- Ian Thoms at Bankruptcy Law360 reports that the Federal Reserve on Monday gave the largest, most systemically crucial financial companies until July 1 to submit their so-called living wills -- detailed plans on how to divide up their assets if they fail. The final rule, a key component of the Dodd-Frank Wall Street Reform and Consumer Protection Act, will require bank holding companies and major nonbank financial institutions, like insurance companies and investment banks, to craft living wills so regulators can quickly unwind them, if necessary, in a manner that limits ripple effects. * Investors Balk at Wilbur Ross's Latest Private Equity Fund ------------------------------------------------------------ Dow Jones' Daily Bankruptcy Review that Wilbur Ross Jr. is one of the world's richest and best-known investors on Wall Street. But that hasn't been enough to win over some firms that looked at his latest private-equity fund, according to the report. * Alvarez & Marsal Honored With Year Award ------------------------------------------ Leading global professional services firm Alvarez & Marsal has been honored with the Turnaround Management Association's Turnaround of the Year Award (Mega Company) for the restructuring of global specialty chemicals company Chemtura Corp. Sharing in the honor are law firm Kirkland & Ellis and the investment bank Lazard Freres & Co, who were instrumental in the success of the case. A&M managing director Ray Dombrowski led the firm's efforts and was supported by director Ralph Schipani. The team also included Kirkland & Ellis lawyers M. Natasha Labovitz, Richard Cieri and Craig Bruens, and Lazard's Daniel Aronson and Sachin Lulla. In 2009, Kirkland & Ellis, Lazard and Alvarez & Marsal were retained to develop and execute a daunting turnaround for Chemtura Corp., which ultimately filed for relief under Chapter 11, listing $3.06 billion in assets and $2.6 billion in liabilities. Once the third largest publicly traded U.S. specialty chemicals company, Chemtura Corp. had fallen from its perch as a $3.8 billion revenue-producing giant to become a business so deep in the lurch that suppliers came to its rail yard to repossess raw materials. Working on parallel tracks, the team moved swiftly to repair operations, tackle daunting legal claims and fortify the company's financial condition. Just nineteen months after the filing, Chemtura emerged from bankruptcy in November 2010 under a plan that repaid creditors 100 percent and recouped roughly $60 million for pre-petition equity holders. For Q1 2011, the company reported gross profit of $161 million, up from $139 million in 2010, which represented, in each case, 23 percent of net sales. Click here to read the full Chemtura case study. A&M has been honored numerous times by the Turnaround Management Association, the only international non-profit association dedicated to corporate renewal and turnaround management. In addition to Chemtura, A&M's award-winning engagements include: Rossignol, The Warnaco Group, AMERCO, Spiegel, Inc., Treofan Germany GmbH, and Ihr Platz GmbH & Co. This is the first year A&M has been recognized in the Mega category. About Alvarez & Marsal Alvarez & Marsal (A&M) -- http://www.alvarezandmarsal.com/-- is a global professional services firm specializing in turnaround and interim management, performance improvement and business advisory services. A&M delivers specialist operational, consulting and industry expertise to management and investors seeking to accelerate performance, overcome challenges and maximize value across the corporate and investment lifecycles. Founded in 1983, the firm is known for its distinctive restructuring heritage, hands-on approach and relentless focus on execution and results. * DLA Piper Bankruptcy Chair Joins Brown Rudnick ------------------------------------------------ Hilary Russ at Bankruptcy Law360 reports that Brown Rudnick LLP said Monday it had snared H. Jeffrey Schwartz, who most recently was the chair of DLA Piper's restructuring practice and who has practiced bankruptcy law for more than three decades, to be a partner its New York office. * Miller Buckfire to Name Harvey Golub as Chairman -------------------------------------------------- Michael J. de la Merced, writing for The New York Times' DealBook, reports that investment bank Miller Buckfire plans to name Harvey Golub its chairman on Tuesday, bringing in a financial services veteran to help oversee a revamping of its operations. The NY Times says the appointment of Mr. Golub, the former chief executive of American Express and a former chairman of the American International Group, comes amid major changes for the nine-year-old firm. The NY Times recounts Miller Buckfire earlier this year struck a partnership with Stifel Financial in a bid to gain access to the bigger firm?s financing capabilities, which could help it win new business. Stifel has also indicated that it is interested in eventually buying Miller Buckfire outright. But the alliance also coincided with the retirement of Miller Buckfire?s co-founder, Henry Miller, and the departure of several senior bankers. According to The NY Times, by naming Mr. Golub, a member of the firm?s advisory board since 2004, Miller Buckfire is hoping to install a mentor to junior bankers and bring in an experienced hand to advise on client matters. It isn?t clear yet how much time that will involve, however. According to the NY Times, many executives involved in restructurings have questioned about the firm?s fate, especially after the departures of top bankers like Mr. Miller; Durc A. Savini, who went to the Peter J. Solomon Company; and Marc Puntus and Sam Greene, who joined Centerview Partners. But Mr. Buckfire maintained that the firm had had little trouble hiring new partners, according to the report. The NY Times also notes that Miller Buckfire is naming William E. Mayer, a former chief executive of First Boston, to its advisory board. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Nov. 28, 2011 BEARD GROUP, INC. 18th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York City Contact: 1-240-629-3300 Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2011. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***