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/raid1/www/Hosts/bankrupt/TCR_Public/120103.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, January 3, 2012, Vol. 16, No. 2 Headlines ADVANSTAR INC: S&P Lowers Corporate to 'CC'; Outlook Negative AES EASTERN: To Use Chapter 11 to Divest or Retire Stations AES EASTERN: Has Term Sheet for Sale of Two Plants ALDA PHARMACEUTICALS: Delays Filing of June 30 Form 20-F AMERICAN SCIENTIFIC: Southridge Discloses 9.9% Equity Stake ARKANOVA ENERGY: Incurs $2.1 Million Net Loss in Fiscal 2011 ARMSTRONG WORLD: Loses Appeal Before Oregon Tax Court BEHRINGER HARVARD: Estimates $0.40 Per Limited Partnership Unit BENJAMIN HIRSCH: Court Won't Sanction Chapter 7 Trustee BOOMERANG SYSTEMS: Delays Fiscal 2011 Form 10-K BROADCAST INTERNATIONAL: Sells $1.3-Mil. Short-Term Bridge Note CARESTREAM HEALTH: Bank Debt Trades at 11% Off in Secondary Market CHINA EDUCATION: Receives Delisting Notice From NYSE COMPOSITE TECHNOLOGY: Wants Plan Filing Period Extended to March 6 DEX MEDIA EAST: Bank Debt Trades at 55% Off in Secondary Market EASTMAN KODAK: L. Tyson Resigns from Board; 3rd Exit in a Month EDGEN MURRAY: Files Form S-1 for IPO; Price Yet to be Set EL POLLO: S&P Assigns 'B+' Rating to Revolving Credit Facility ENER1 INC: Extends Maturity of $4.5MM Loan Agreement to Jan. 9 FILENE'S BASEMENT: Richard Layton OK'd as Committee's Co-Counsel FIRST MARINER: Edwin Hale Discloses 11.6% Equity Stake FIRST SECURITY: Michael Kramer Named CEO and Director FONTAINEBLEAU LAS VEGAS: Court Strikes Contractors' Appendix GALP HIGHCROSS: Negotiates New Equity to Finance Plan Distribution GALP WATERS: Plan Offers 70% Recovery for Unsecured Creditors GAMETECH INT'L: Amends Loan Agreement with U.S. Bank GENERAL MARITIME: Committee Taps Jones Day as Counsel GENTA INC: Has 1.3 Billion Outstanding Common Shares GREENMAN TECHNOLOGIES: Delays Form 10-K for Fiscal 2011 GUANGZHOU GLOBAL: Incurs $2.3 Million Net Loss in 2010 HAMPTON ROADS: Gateway Bank Wins "Best Bank" Award HOVNANIAN ENTERPRISES: Incurs $286.1 Million Net Loss in 2011 HT PUEBLO: Plan Unconfirmable; Bank Lender Wins Stay Relief IMAGE METRICS: Reports US$19,000 Net Income in Fiscal 2011 IMS HEALTH: S&P Raises Senior Unsecured Rating to 'B+' INNER CITY: Can Access Senior Lenders Cash Collateral Until Jan. 9 ITC LAS VEGAS: Asks Court to Dismiss Chapter 11 Case J. CREW: Bank Debt Trades at 6% Off in Secondary Market KOREA TECHNOLOGY: Can Borrow $106,250 From R&W on Unsecured Basis KOREA TECHNOLOGY: Creditors Say APA With R&W is Unenforceable LOGIC DEVICES: Hein & Associates Raises Going Concern Doubt MAYSVILLE INC: Court Affirms Order Dismissing Chapter 11 Case MEDICAL INTERNATIONAL: PS Stephenson Raises Going Concern Doubt MF GLOBAL: L. Freeh Appointed as Trustee for Dec. 19 Debtors MF GLOBAL: Sec. 341 meet of New Debtors Creditors Set for Jan. 26 MMRGLOBAL INC: Unregistered Sale of Stock Exceeds 5% Threshold MOHEGAN TRIBAL: Posts $111.8 Million Net Income in Fiscal 2011 MSR RESORT: Can Draw an Add'l $10-Mil. from DIP Lenders MUSCLEPHARM CORP: Amends 126.4 Million Common Shares Offering NEBRASKA BOOK: Court OKs DIP Changes Waiving Nov. EBITDA Provision NEW LEAF BRANDS: Reports $665,000 Net Loss in 2011 Second Quarter NEXSTAR BROADCASTING: Central Square Holds 5% of Class A Shares NEXTMART INC: Carla Zhou Resigns as Board Member and CFO NEXTMART INC: Delays Form 10-K for Fiscal 2011 NORD RESOURCES: Obtains Permit to Build New Leaching Pad NORTHCORE TECHNOLOGIES: Enables HSE Sourcing Pilot NORTHCORE TECHNOLOGIES: Positioned to Exit Fiscal 2011 Debt Free NUTRITION 21: Second Amended Joint Chapter 11 Plan Confirmed ONYX SERVICE: Posts $1.4 Million Net Loss in Oct. 31 Quarter ODYSSEY (IX) DP: Sec. 341 Creditors' Meeting Set for Jan. 18 ODYSSEY (IX) DP: Hires Stichter Riedel as Bankruptcy Counsel ODYSSEY (IX) DP: Taps Bill Maloney Consulting as CRO ODYSSEY (IX) DP: Seeks Cash Use, Mediation for U.S. Bank Claims OSAGE EXPLORATION: Peter Hoffman Discloses 11.8% Equity Stake OSI RESTAURANT: William Allen Resigns from Board of Directors PECAN SQUARE: Wells Fargo Objects to Motion to Use Cash Collateral PETROHUNTER ENERGY: Incurs $7 Million Net Loss in Fiscal 2011 P.J. FINANCE: U.S. Trustee Seeks Rejection of Plan Disclosures PLATINUM PROPERTIES: Can Draw $600,000 Financing from Lender PLATINUM PROPERTIES: Plan Filing Period Extended to April 19 PLATINUM STUDIOS: Hires John Rutledge as General Counsel POWER EFFICIENCY: Two Directors Resign from Board QUALTEQ INC: University Subscription's Chapter 11 Case Dismissed QUALTEQ INC: Bank of America Wants Plami Motion to Quash Dismissed RENAISSANT LAFAYETTE: Completed Vital Tasks; Ch. 11 Case Dismissed RIDGE PARK: Lender Wants Cash Access to Pay Real Property Taxes ROUND TABLE: Committee Wants Post-Confirmation Committee Formed SENESCO TECHNOLOGIES: NYSE Amex Accepts Plan of Compliance TALON THERAPEUTICS: Taps Gharib as Controller, Finance Director TELECONNECT INC: Incurs $3.2 Million Net Loss in Fiscal 2011 TERRESTAR CORP: Files First Amended Joint Chapter 11 Plan THERMOENERGY CORP: Amends 54.1 Million Common Shares Offering TITAN ENERGY: Amends Sept. 30 Form 10-Q, Records $253,181 Charge TOP SHIPS: M/V PEPITO Sale to Result in US$25 Million Book Loss TRAILER BRIDGE: Taps Kurtzman Carson Consultants as Claims Agent TRAVELPORT INC: Bank Debt Trades at 17% Off in Secondary Market TROPICANA ENTERTAINMENT: LandCo Claims Reserve Procedures Approved TXU CORP: Bank Debt Trades at 37% Off in Secondary Market TXU CORP: Bank Debt Trades at 30% Off in Secondary Market UNIVERSAL SOLAR: Xin Ma Resigns; Weilei Lv Appointed CFO US FOODSERVICE: Bank Debt Trades at 8% Off in Secondary Market VYTERIS INC: Enters Into Settlement with Ferring Pharmaceuticals WILLIAM LYON: Taps Newmeyer as Special Litigation Counsel WINGATE AIRPORT: Interest Holders Act as Key Employees Under Plan ZOO ENTERTAINMENT: Common Stock Delisted from NASDAQ * Large Companies With Insolvent Balance Sheets ********* ADVANSTAR INC: S&P Lowers Corporate to 'CC'; Outlook Negative ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Santa Monica, Calif.?based Advanstar Inc. to 'CC' from 'B-'. The outlook is negative. "At the same time, we lowered our issue-level rating on Advanstar Communications Inc.'s first-lien term loan due 2014 to 'CC' (at the same level as the 'CC' corporate credit rating on parent company Advanstar Inc.). The recovery rating on this debt remains unchanged at '4', indicating our expectation of average (30% to 50%) recovery for lenders in the event of a payment default," S&P said. "The downgrade reflects our view that the company's recent amendment, which allows for subpar repurchases of its term debt, suggests a high probability of a subpar buyback," noted Standard & Poor's credit analyst Daniel Haines. "Furthermore, the term loan is trading at a significant discount to its par value, which provides the company an economic incentive to pursue a subpar buyback." "Under Standard & Poor's criteria, we would view these subpar buybacks as tantamount to a default. We view the company's heavily debt burdened capital structure, small EBITDA base, and weak operating trends as indications of financial distress. We see significant risks of continued unfavorable secular trends pressuring the publishing business, and believe that the tradeshow business will remain susceptible to economic downturns," S&P said. "Advanstar is an independent business-to-business tradeshow and publishing company serving four industry segments: fashion, licensing, life sciences, and power sports. In 2010, trade publishing accounted for roughly 27% of the company's total revenues. Advanstar is sensitive to cyclical advertising demand in its end markets, because, unlike consumer magazines, the company's magazines lack revenue from subscriptions and from the newsstand. The publishing segment faces secular pressures in light of competition from Internet-based media with low barriers to entry. Advanstar also produces tradeshows and is heavily dependent on its MAGIC events, which account for nearly 30% of total revenues. Although the MAGIC events are the leading U.S. apparel industry tradeshows and have good renewal rates year to year, the concentration of earnings in these events effectively makes the strongest part of Advanstar's business profile somewhat narrow in focus, in our opinion," S&P said. AES EASTERN: To Use Chapter 11 to Divest or Retire Stations ----------------------------------------------------------- AES Eastern Energy Limited Partnership and 13 affiliated entities filed petitions for relief under Chapter 11 in the United States Bankruptcy Court for the District of Delaware. AES Eastern Energy and its affiliates are indirect, wholly owned subsidiaries of The AES Corporation. The AES Corporation is not included in the bankruptcy filing. AES Eastern Energy and its affiliates own or lease six coal-fired electric generating stations in New York state. The bankruptcy filing was necessitated by a number of operational factors, including reduced power prices brought on by low natural gas prices, increased costs for coal, and significant costs for air pollution controls. As a result of these operational factors, the company did not have sufficient cash flow to service its debt. AES Eastern Energy sought relief in Chapter 11 to facilitate the sale or transfer of its two operating plants. The company's Somerset and Cayuga plants, located in Barker, New York and Lansing, New York, will continue operations during the bankruptcy, led by the existing management team. AES Eastern Energy has reached an agreement in principle for the sale of the Somerset and Cayuga plants to an entity sponsored by holders of pass-through trust certificates issued in connection with a leveraged lease transaction that financed the acquisition of the plants. Holders of a majority of the pass-through trust certificates have indicated their support for the transaction, which remains subject to definitive documentation, solicitation of higher and better offers in an auction process, and approval of the sale by the Bankruptcy Court, all as may be required by the bankruptcy laws. AES Eastern Energy and its affiliates will use the Chapter 11 process to divest or retire four additional coal-fired generating stations in New York state, all of which are in protective lay-up or cold standby status and are not currently operating. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A. are legal counsel to AES Eastern Energy and affiliates. Barclays Capital is serving as investment banker and financial advisor. AES EASTERN: Has Term Sheet for Sale of Two Plants -------------------------------------------------- AES Eastern Energy Limited Partnership and certain affiliated entities have reached an agreement in principle on a non-binding term sheet for the sale of their Somerset and Cayuga coal-fired electrical generation plants to an entity sponsored by holders of pass-through trust certificates issued in connection with a leveraged lease transaction that financed the acquisition of the plants. Holders of a majority of the pass-through trust certificates have indicated their support for the transaction, which remains subject to definitive documentation, higher and better offers in an auction process, and approval by the United States Bankruptcy Court for the District of Delaware, all as may be required by the bankruptcy laws. Attached as Exhibits A and B, respectively, are a non-binding Restructuring Term Sheet and AES Eastern Energy financial projections previously provided to certain holders of pass-through certificates pursuant to confidentiality restrictions. The projections and other financial information reflects the views of the company as of a date in the past and the company is releasing these projections for informational purposes only with no representation as to the company's current views. Moreover, the company undertakes no obligation to release updated projections or other financial information. ALDA PHARMACEUTICALS: Delays Filing of June 30 Form 20-F -------------------------------------------------------- ALDA Pharmaceuticals Corp. notified the U.S. Securities and Exchange Commission that it will be late in filing is Annual Report on Form 20-F for the period ended June 30, 2011. The Company had a shortage of funds that prevented the preparation and filing of the required report but is now in the process of reorganizing its affairs so that the filing can proceed. About ALDA Pharmaceuticals Based in Richmond, BC, Canada, ALDA Pharmaceuticals Corp. -- http://www.aldacorp.com/-- is principally engaged in the development, production and marketing of infection control agent products, principally a product marketed as "T36(R)". ALDA trades on the TSX Venture Exchange in Vancouver, Canada under the symbol "APH" and on the OTC BB under the symbol "APCSF". The Company recorded sales C$184,235 for the nine month period ended March 31, 2011, compared to C$1.5 million for the nine month period ended March 31, 2010. Net loss was C923,517 for the nine months ended March 31, 2011, compared to a net loss of C$2.7 million for the nine months ended March 31, 2010. The Company's balance sheet at March 31, 2011, showed C$987,754 in in total assets, C$1.1 million in total liabilities, and a stockholders' deficit of C$105,543. AMERICAN SCIENTIFIC: Southridge Discloses 9.9% Equity Stake ----------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Southridge Partners II LP disclosed that, as of Dec. 28, 2011, it beneficially owns 5,116,694 shares of common stock of American Scientific Resources, Incorporated, representing 9.99% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/NePiiX About American Scientific Weston, Fla.-bases American Scientific Resources, Inc., provides healthcare and medical products. The Company develops, manufactures and distributes healthcare and medical products primarily to retail drug chains, retail stores specializing in sales of products for babies and medical supply dealers. The Company does sub-component assembly and packaging for the Disintegrator product line. All of the Company's other products are manufactured by third parties. The Company was comprised of three subsidiaries: (i) Kidz-Med, Inc., (ii) HeartSmart, Inc., and (iii) Ulster Scientific, Inc., of which only Kidz-Med was active until Dec. 31, 2010. All subsidiaries are currently inactive. The Company reported a net loss applicable to common shareholders of $6.92 million on $763,020 of net product sales for the nine months ended Sept. 30, 2011, compared with a net loss applicable to common shareholders of $4.78 million on $578,961 of net product sales for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $1.26 million in total assets, $9.21 million in total liabilities, and a $7.95 million total shareholders' deficit. Rosenberg Rich Baker Berman & Company, in Somerset, New Jersey, expressed substantial doubt about American Scientific Resources' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses, its current liabilities exceed its current assets and it is in default with certain of its obligations. ARKANOVA ENERGY: Incurs $2.1 Million Net Loss in Fiscal 2011 ------------------------------------------------------------ Arkanova Energy Corporation filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $2.06 million on $1.32 million of total revenue for the year ended Sept. 30, 2011, compared with a net loss of $13.87 million on $1.03 million of total revenue during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $3.13 million in total assets, $14.53 million in total liabilities, and a $11.39 million total stockholders' deficit. MaloneBailey, LLP, in Houston, Texas, said the Company has incurred losses since inception, which raises substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/tYoY14 About Arkanova Energy The Woodlands, Tex.-based Arkanova Energy Corporation is currently participating in oil and gas exploration activities in Arkansas, Colorado and Montana. All of Arkanova's oil and gas properties are located in the United States. ARMSTRONG WORLD: Loses Appeal Before Oregon Tax Court ----------------------------------------------------- The Tax Court of Oregon, Magistrate Division, Property Tax, rejected an appeal lodged by Armstrong Word Industries over the real market value of industrial property improvements identified as Account 13220 for the 2009-10 tax year. The Tax Court held that AWI failed to prove by a preponderance of the evidence that any reduction in the value of the property is merited. The Tax Court said State of Oregon Department of Revenue's 2009-10 improvements real market value of $29.5 million for the property is supported by the evidence. Andrew Hall -- info@ryan.com -- Property Tax Director at Ryan Inc., appeared and testified on behalf of AWI. The case is ARMSTRONG WORLD INDUSTRIES, v. COLUMBIA COUNTY ASSESSOR and DEPARTMENT OF REVENUE, State of Oregon, No. TC-MD 100671B. Trial was held in the Tax Courtroom, Salem, Oregon, on Aug. 8, 2011. A copy of the Dec. 30, 2011 decision penned by Allison R. Boomer, Magistrate Pro Tempore, is available at http://is.gd/RJkPqdfrom Leagle.com. About Armstrong World Headquartered in Lancaster, Pennsylvania, Armstrong World Industries, Inc. (NYSE:AWI) -- http://www.armstrong.com/-- designs, manufactures and sells flooring products and ceiling systems around the world. It also designs, manufactures and sells kitchen and bathroom cabinets. Its business segments include resilient flooring, wood flooring, building products and cabinets. On Dec. 6, 2000, it filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court. An earlier version of Armstrong's Plan was confirmed by the Bankruptcy Court in November 2003. The District Court for the District of Delaware did not affirm the confirmation of the Plan, finding that the proposed distribution of new warrants to the class of Equity Interest Holders over the objection of the class of Unsecured Creditors violated the "fair and equitable" requirement of Section 1129(b)(2)(B)(ii) of the Bankruptcy Code, a codification of the absolute priority rule. Armstrong lost on appeal before the Third Circuit Court of Appeals. Armstrong filed a modified plan in February 2006, revising the classification and treatment of Equity Interests to eliminate the distribution of warrants to shareholders of AWI's parent company, Armstrong Holdings, Inc. Armstrong and the asbestos constituencies in its case also asked the District Court to find that the Debtors' present and future liability on account of asbestos-related personal injury claims is not less than $3.1 billion, and, therefore, Armstrong's chapter 11 plan does not unfairly discriminate against commercial creditors and should be confirmed. The Plan was confirmed by the District Court on Aug. 14, 2006, and Armstrong emerged from Chapter 11 on Oct. 2, 2006. Nitram and Desseaux also filed their Chapter 11 cases on Dec. 6, 2000. The Bankruptcy Court confirmed their First Amended Joint Plan of Liquidation on Dec. 17, 2007. STEPHEN KAROTKIN, ESQ., at Weil, Gotshal & Manges, in New York, JASON M. MADRON, ESQ., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represented the Debtors. STEPHEN J. SHIMSHAK, ESQ., JOHN F. BAUGHMAN, ESQ., and ANDREW N. GORDON, ESQ., at Paul, Weiss, Rifkind, Wharton & Garrison, LLP, in New York, represented the Unsecured Creditors Committee. ELIHU INSELBUCH, ESQ., and NATHAN D. FINCH, ESQ., at Caplin & Drysdale Chartered, in Washington, DC, represented the Asbestos Claimants Committee. JANE W. PARVER, ESQ., at Kaye Scholer, LLP, in New York, represented Dean Trafelet, the future claimants representative. On April 3, 2006, Armstrong World acquired HomerWood Inc. On May 1, 2006, it acquired Capella Engineered Wood LLC, and its parent company, Capella Inc. On March 27, 2007, it entered into an agreement to sell the principal operating companies in its European textile and sports flooring business segment to Tapijtfabriek H. Desseaux N.V. and its subsidiaries. These businesses were classified as discontinued at Oct. 2, 2006. * * * In November 2011, Standard & Poor's Ratings Services revised its outlook on Armstrong to stable from negative and affirmed its ratings on the company, including the 'BB-' corporate credit rating. "The outlook revision reflects our view that Armstrong will continue to reduce leverage due to improving profitability, despite relatively weak sales growth, to levels we would consider to be in line with the 'BB-' rating given our view of the company's fair business risk profile," said S&P's credit analyst Megan Johnston. BEHRINGER HARVARD: Estimates $0.40 Per Limited Partnership Unit --------------------------------------------------------------- The limited partnership agreement of Behringer Harvard Short-Term Opportunity Fund I LP requires that the Fund's general partners provide its limited partners annually an estimate of value of the Fund's limited partnership units. In connection with this valuation process, on Dec. 29, 2011, Behringer Harvard Advisors II LP, the Fund's co-general partner has estimated a value of $0.40 per limited partnership unit. This estimate is also being provided to assist broker-dealers in connection with their obligations under applicable Financial Industry Regulatory Authority rules with respect to customer account statements and to assist fiduciaries in discharging their obligations under Employee Retirement Income Security Act reporting requirements. The estimated value per limited partnership unit set forth above will first appear on the fourth quarter 2011 customer account statements that will be mailed in January 2012. As part of the General Partner's valuation process, and as required by the Fund's limited partnership agreement, the General Partner has obtained the opinion of an independent third party, Robert A. Stanger & Co., Inc., that the estimated valuation is reasonable and was prepared in accordance with appropriate methods for valuing real estate. Stanger, founded in 1978, is a nationally recognized investment banking firm specializing in real estate, REITs and direct participation programs such as the Fund. Stanger's opinion was expressed from a financial point of view and was subject to various limitations. Stanger relied on information provided by the General Partner without independent verification. Stanger did not perform appraisals, did not inspect the properties or review engineering or structural studies, environmental studies, and did not make independent local market inquiries. Stanger relied on information from the General Partner regarding lease terms and the physical condition and capital expenditure requirements of each property. As the Fund continues its disposition phase and assets are sold, the number of assets available to create cash flow declines. As a result, the Fund's general partners continue to preserve capital, sustain and enhance property values, reduce operating expenses where possible, and accelerate the pace of the dispositions of the Fund's remaining properties. In the meantime, the Company is diligently working to renew current leases or secure new leases with quality tenants to increase net operating income and the ultimate value of the Company's remaining assets and to execute on other value creation strategies. A full-text copy of the Form 8-K is available at: http://is.gd/F7u0WY About Behringer Harvard Addison, Tex.-based Behringer Harvard is a limited partnership formed in Texas on July 30, 2002. The Company's general partners are Behringer Harvard Advisors II LP and Robert M. Behringer. As of Sept. 30, 2011, seven of the twelve properties the Company acquired remain in the Company's portfolio. The Company's Agreement of Limited Partnership, as amended, provides that the Company will continue in existence until the earlier of Dec. 31, 2017, or termination of the Partnership pursuant to the dissolution and termination provisions of the Partnership Agreement. The Company reported a net loss of $44.6 million on $17.6 million of revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $12.6 million on $16.4 million of revenues for the same period of 2010. The Company's balance sheet at Sept. 30, 2011, showed $130.1 million in total assets, $145.5 million in total liabilities, and an equity deficit of $15.4 million. "As of Sept. 30, 2011, of our $133.6 million in notes payable, $121.2 million is secured by properties and $120.3 million is recourse by us. We continue to negotiate with the lenders to refinance or restructure the loans. We currently expect to use proceeds from the disposition of properties and additional borrowings to continue making our scheduled debt service payments on certain properties until the maturity dates of the loans are extended, the loans are refinanced or the outstanding balance of the loans is completely paid off. There is no guarantee that we will be able to refinance our borrowings with more or less favorable terms or extend the maturity dates of such loans. In the event that any of the lenders demanded immediate payment of an entire loan balance, we would have to consider all available alternatives, including transferring legal possession of the relevant property to the lender." "The effects of the recent economic downturn have caused us to reconsider our strategy for certain of our properties where we believe the principal balance of the debt encumbering the property exceeds the value of the asset under current market conditions. In those cases where we believe the value of a property is not likely to recover in the near future, we believe there are more effective uses for our capital, and as a result we may cease making debt service payments on certain property level debt, resulting in defaults or events of default under the related loan agreements. We are in active negotiations with certain lenders to refinance or restructure debt in a manner that we believe is the best outcome for us and our unitholders and expect that some loans may be resolved through a discounted purchase or payoff of the debt and, in certain situations, other loans may be resolved by negotiating agreements conveying the properties to the lender." "As is usual for opportunity style real estate programs, we are structured as a finite life vehicle with the intent to full cycle by selling off our assets. Although we have extended beyond our original target life, we have already entered into our disposition phase and are in the process of selling our assets." "The conditions and events described above raise substantial doubt about our ability to continue as a going concern." BENJAMIN HIRSCH: Court Won't Sanction Chapter 7 Trustee ------------------------------------------------------- Bankruptcy Judge Joel B. Rosenthal denied the request of Benjamin Hirsch to hold the trustee liquidating his estate liable for penalties and interest for filing to make a partial distribution on the Internal Revenue Service's claim from the proceeds of the sale of the Debtor's assets. Mr. Hirsch's motion seeks to compel Robert Musso, Esq., the Chapter 7 Trustee, to pay $400,000 to the IRS and hold the Chapter 7 Trustee liable for any penalties and interest that have accrued since June 2007. The thrust of the Debtor's argument is that an interim distribution should have been made to the IRS consisting of the proceeds from the sale and that the Debtor was harmed by the delay in the distribution. The Chapter 7 Trustee sold the Debtor's real property located at 2115 Avenue I, Brooklyn, New York, for $975,000. The Court, however, noted that it is clear that the Chapter 7 Trustee was not comfortable making an interim distribution until after claims were resolved and there were sufficient assets on reserve to administer the estate. To the Court, the Chapter 7 Trustee's actions appear objectively reasonable and to be a sound exercise of his business judgment. A copy of the Court's Dec. 29, 2011 Decision and Order is available at http://is.gd/iIgqMyfrom Leagle.com. Benjamin Hirsch filed a voluntary Chapter 11 petition (Bankr. E.D.N.Y. Case No. 02-17966) on June 21, 2002. The case was converted to one under Chapter 7 on Jan. 5, 2007. Robert Musso, Esq., was appointed the Chapter 7 Trustee. BOOMERANG SYSTEMS: Delays Fiscal 2011 Form 10-K ----------------------------------------------- Boomerang Systems, Inc., notified the U.S. Securities and Exchange Commission that it was unable to file its annual report on Form 10-K for the year ended Sept. 30, 2011, within the prescribed period because of a delay in completing the audit for this period as a result of management requiring additional time to compile and verify the data required to be included in the report. The Company expects to file within the extension period. About Boomerang Systems Headquartered in Morristown, New Jersey, Boomerang Systems, Inc. (Pink Sheets: BMER) through its wholly owned subsidiary, Boomerang Utah, is engaged in the design, development, and marketing of automated racking and retrieval systems for automobile parking and automated racking and retrieval of containerized self-storage units. For the fiscal year ended Sept. 30, 2010, the Company had a net loss of $15,789,559 compared with a net loss of $9,693,734 during the prior year. Revenues were $718,530 for the fiscal year ended Sept. 30, 2010 compared with $0 for the fiscal year ended Sept. 30, 2009. The Company's balance sheet at June 30, 2011, showed $4.47 million in total assets, $6.24 million in total liabilities, and a $1.77 million total stockholders' deficit. BROADCAST INTERNATIONAL: Sells $1.3-Mil. Short-Term Bridge Note --------------------------------------------------------------- Broadcast International, Inc., on Dec. 28, 2011, entered into a Note and Warrant Purchase and Security Agreement with six individuals and one trust as purchasers, pursuant to which the Purchasers agreed to loan $1,300,000 to the Company in exchange for the Company entering into a promissory note and related agreements. Effective Dec. 28, 2011, the Company entered into the Purchase Agreement, an 18% Note, an Escrow Agreement, and a warrant to purchase the Company's common stock, all of which were with the Purchasers named in the Note and Purchase Agreement. Pursuant to the Purchase Agreement, the Company sold to the Purchasers a short term bridge Note in the principal amount of $1,300,000 representing the funding received by the Company on December 27. The Note bears an annual interest rate of 18%, payable monthly in cash. The Company issued to the Purchasers a warrant, which gives the purchasers the right to purchase a total of 357,500 shares of the Company's common stock at an exercise price of $.65 per share. The Warrant expires five years after the issuance date. The Note is due on Feb. 28, 2012. As collateral for the repayment of the Note, the Company granted to the Purchasers a security interest in all of the Company's accounts receivable. The Note contains a prepayment provision pursuant to which if the Note is paid off before its maturity date, the Company would owe a penalty equal to the difference between the interest actually paid under the Note and 3% of the original balance of the Note. In connection with the Purchase Agreement, the Company will pay an $84,700 placement fee and issue a warrant to purchase 65,000 shares of the Company's common stock at an exercise price of $.65 per share to the Company's investment banker for services in completing the above transaction and pay a $3,000 escrow fee to the Escrow Agent in exchange for holding the funds prior to their disbursement to the Company. On Dec. 28, 2011, the Company issued warrants to the Company's investment banker to purchase up to 65,000 shares of the Company's common stock at an exercise price of $.65 per share. The warrants expire 5 years from the date of issuance. The purchaser is an accredited investor and was fully informed regarding his investment. In the transaction, the Company relied on the exemption from registration under Section 4(2) and Section 4(6) of the Securities Act. About Broadcast International Based in Salt Lake City, Broadcast International, Inc. installs, manages and supports private communication networks for large organizations that have widely-dispersed locations or operations. The Company owns CodecSys, a video compression technology to convert video content into a digital data stream for transmission over satellite, cable, Internet, or wireless networks, as well as offers audio and video production services. The Company's enterprise clients use its networks to deliver training programs, product announcements, entertainment, and other communications to their employees and customers. The Company reported a net loss of $18.66 million on $7.31 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $13.38 million on $3.62 million of net sales during the prior year. The Company reported net profit of $3.73 million on $6.32 million of net sales for the nine months ended Sept. 30, 2011, compared with a net loss of $11.65 million on $5.36 million of net sales for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $4.32 million in total assets, $12.59 million in total liabilities, and a $8.27 million total stockholders' deficit. Bankruptcy Warning The Loan Restructuring Agreement the Company entered into as part of the Debt Restructuring contains, among other things, covenants that may restrict its ability to obtain additional capital, to declare or pay a dividend or to engage in other business activities. A breach of any of these covenants could result in a default under the Company's Amended and Restated Note, in which event the holder of the note could elect to declare all amounts outstanding to be immediately due and payable, which would require the Company to secure additional debt or equity financing to repay the indebtedness or to seek bankruptcy protection or liquidation. CARESTREAM HEALTH: Bank Debt Trades at 11% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Carestream Health, Inc., is a borrower traded in the secondary market at 89.36 cents- on-the-dollar during the week ended Friday, Dec. 30, 2011, a drop of 0.47 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 22, 2017, and carries Moody's B1 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 133 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Carestream Health Carestream Health, Inc., based in Rochester, New York, supplies imaging and IT systems to medical and dental communities and other markets. Formerly operating as the Health Group division of Eastman Kodak, the company was acquired by Toronto-based Onex Corporation and Onex Partners II LP in early 2007. For the 12 months ended Sept. 30, 2010, Carestream had revenues of $2.3 billion. As reported by the Troubled Company Reporter on Feb. 18, 2011, Moody's affirmed the 'B1' corporate family rating of Carestream Health, Inc. The 'B1' corporate family rating is supported by the company's leading market position, large revenue base and diversified global operations. The ratings outlook could improve if the company is able to more than offset the decline in the film business with growth in its other businesses such that the company demonstrates sustained revenue and profitability growth. CHINA EDUCATION: Receives Delisting Notice From NYSE ---------------------------------------------------- China Education Alliance, Inc. disclosed that the NYSE Regulation, Inc. delivered a notice to the company confirming that the exchange will suspend trading of the company's common stock on the NYSE prior to the opening of business on Thursday, Dec. 29, 2011 and that the exchange intends to delist the company's common stock. The Company expects to commence trading on the over-the- counter (OTC) market that same day under a symbol yet to be determined. Mr. Yu Xiqun, CEO of China Education Alliance commented: "We are very disappointed with the NYSE's decision to suspend trading and delist our shares. Since the onset of the unfounded allegations a year ago, we have at all times kept our doors open to all shareholders who have wanted to research our business in China and have made ourselves available to help investors correctly understand our business. We have held two Annual General Meetings to discuss the future development goals and strategic plans of the Company. We have refused to be intimidated by rumors, none of which have proved true in more than one year. Our business performance has been recovering and our future prospects remains strong. As of Sept. 30, 2011 we achieved US$26.3 million in revenue and US$18.4 million of profit. We strongly believe our stock price and market value do not correctly reflect the performance and future prospects of our Company. This is a time of rapid evolution in the Chinese education sector with many opportunities. We will continue to focus on our business operations and further expansion plans." About China Education Alliance China Education Alliance, Inc. -- http://www.chinaeducationalliance.com/-- is a fast-growing, leading, China-based company offering high-quality education resources and services to students ages 6 to 18 and adults (university students and professionals) ages 18 and over. COMPOSITE TECHNOLOGY: Wants Plan Filing Period Extended to March 6 ------------------------------------------------------------------ Composite Technology Corporation asks the U.S. Bankruptcy Court for the Central District of California to extend for a second time its exclusive periods to file a Chapter 11 plan and solicit acceptances of that plan until March 6, 2012, and May 6, 2012, respectively. The Debtors tell the Court that they will use the additional 90 day extension to negotiate terms of consensual plans with Partners for Growth II, LP, the Debtors' senior secured creditor, and the Committee and other constituents in these cases. About Composite Technology Headquartered in Irvine, California, Composite Technology Corporation (CTC) -- http://www.compositetechcorp.com/-- is a publicly traded company that owns all of the common stock of CTC Cable Corporation and Stribog, Inc. CTC Cable manufactured and marketed innovative energy efficient renewable energy products for the electrical utility industry. Stribog operated a wind turbine products business that was sold to Daewoo Shipbuilding and Marine Engineering ("DSME") on Sept. 4, 2009, for $32.2 million in cash. CTC Renewables is a dormant company. Composite Technology filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-15058) on April 10, 2011, with Judge Mark S. Wallace presiding over the case. The Debtor's bankruptcy case was reassigned to Judge Scott C. Clarkson on April 13, 2011. BCC Advisory Services LLC, BCC Ho1dco LLC's FINRA registered Broker/Dealer, serves as investment banker to provide exclusive equity financing services and debt financing services. Composite Technology disclosed $5,855,670 in assets and $12,395,916 in liabilities as of the Chapter 11 filing. CTC Cable Corporation filed for Chapter 11 (Bankr. C.D. Calif. Case No. 11-15059) on the same day. Stribog, Inc. (Bankr. C.D. Calif. Case No. 11-15065) filed for Chapter 11 protection on April 11, 2011. CTC Renewables Corp., a dormant company (Bankr. C.D. Calif. Case No. 11-15130) filed for Chapter 11 protection on April 12, 2011. The cases are jointly administered, with Composite Technology as the lead case. Garrick A. Hollander, Esq., Paul J. Couchot, Esq., and Richard H. Golubow, Esq., at Winthrop Couchot PC, in Newport Beach, Calif.; and Sean A. Okeefe, at Okeefe & Associates Law Corporation, in Newport Beach, Calif., serve as the Debtors' bankruptcy counsel. Peter C. Anderson, the U.S. Trustee for Region 16, appointed five members to the official committee of unsecured creditors in the Debtor's cases. Katherine C. Piper, Esq., at Steptoe & Johnson LLP, in Los Angeles, Calif., represents the Committee. DEX MEDIA EAST: Bank Debt Trades at 55% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media East LLC is a borrower traded in the secondary market at 45.08 cents-on- the-dollar during the week ended Friday, Dec. 30, 2011, a drop of 0.42 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 250 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 24, 2014. The loan is one of the biggest gainers and losers among 133 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About R.H. Donnelley & Dex Media East Based in Cary, North Carolina, R.H. Donnelley Corp., fka The Dun & Bradstreet Corp. (NYSE: RHD) -- http://www.rhdonnelley.com/-- publishes and distributes print and online directories in the U.S. It offers print directory advertising products, such as yellow pages and white pages directories. R.H. Donnelley Inc., Dex Media, Inc., and Local Launch, Inc., are the company's only direct wholly owned subsidiaries. Dex Media East LLC is a publisher of the official yellow pages and white pages directories for Qwest Communications International Inc. in the states, where Qwest is the primary incumbent local exchange carrier, such as Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for hapter 11 protection (Bank. D. Del. Case No. 09-11833 through 09-11852) on May 28, 2009, after missing a $55 million interest payment on its senior unsecured notes. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, represented the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, served as the Debtors' local counsel. The Debtors' financial advisor was Deloitte Financial Advisory Services LLP while its investment banker was Lazard Freres & Co. LLC. The Garden City Group, Inc., served as claims and noticing agent. The Official Committee of Unsecured Creditors tapped Ropes & Gray LLP as its counsel, Cozen O'Connor as Delaware bankruptcy co-counsel, J.H. Cohn LLP as its financial advisor and forensic accountant, and The Blackstone Group, LP, as its financial and restructuring advisor. The Debtors emerged from Chapter 11 bankruptcy proceedings at the end of January 2010. EASTMAN KODAK: L. Tyson Resigns from Board; 3rd Exit in a Month --------------------------------------------------------------- Laura D. Tyson notified Eastman Kodak Company of her resignation from the board of directors. Tyson's resignation from the board is the third in the month. Adam H. Clammer and Herald Y. Chen announced their resignations on Dec. 21. Messrs. Clammer and Chen joined Eastman Kodak's board in 2009 as representatives of private equity firm Kohlberg Kravis Roberts. The men obtained their seats after KKR helped Kodak with a fresh injection of funds needed to weather the recession. About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Company (NYSE:EK) -- http://www.kodak.com/-- provides imaging technology products and services to the photographic and graphic communications markets. Kodak's balance sheet at Sept. 30, 2011, showed $5.10 billion in total assets, $6.75 billion in total liabilities and a $1.65 billion total deficit. Kodak had sales of $7.2 billion last year. Sales declined by 24 percent since 2008. The net loss last year was $687 million. During the first nine month of this year, the net loss was $647 million on sales of $4.27 billion. In July 2011, the Company announced that it is exploring strategic alternatives, including a potential sale, related to its digital imaging patent portfolios. Kodak hired Jones Day as legal adviser and investment bank Lazard Ltd., but denied rumors it was filing for bankruptcy. It also enlisted FTI Consulting Inc. In December, Kodak hired Sullivan & Cromwell's restructuring practice, replacing Jones Day. A group of Kodak's bondholders have formed an informal committee and hired law firm Akin Gump Strauss Hauer & Feld LLP for advise. * * * As reported by the TCR on Nov. 3, 2011, Fitch Ratings affirmed and then withdrew the 'CC' long-term Issuer Default Rating and issue ratings of Eastman Kodak Company. Fitch decided to discontinue the rating, which is uncompensated. Moody's Investors Service said in a report Nov. 7, 2011, that Kodak will run out of cash in the U.S. around the second or third quarters of 2012. EDGEN MURRAY: Files Form S-1 for IPO; Price Yet to be Set --------------------------------------------------------- Edgen Group Inc. has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission in connection with the proposed initial public offering of its common stock. The number of shares to be offered and the price range for the offering have not yet been determined. Jefferies & Company, Inc., Morgan Stanley & Co. LLC and Citigroup Global Markets, Inc., are serving as the joint book-running managers for the offering. Edgen intends to apply to list its common stock on the New York Stock Exchange under the symbol "EDG". The offering of common stock will be made only by means of a prospectus. When available, a copy of the preliminary prospectus relating to this offering may be obtained from Jefferies & Company, Inc. , Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 12th Floor, New York, NY 10022, (877) 547-6340 or by email to prospectus_department@jefferies.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, (866) 718-1649, or by email at prospectus@morganstanley.com; and Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, (800) 831-9146, or by email at batprospectusdept@citi.com. A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sales of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About Edgen Murray Edgen Murray II L.P., headquartered in Baton Rouge, Louisiana, is a distributor of carbon steel and alloy products for use primarily in specialized applications in the energy and niche industrial segments. The company operates on a global basis, with approximately one-third of its sales generated outside of the Americas, and has distribution centers in five countries to facilitate timely deliveries to companies and contractors engaged in the development of new energy infrastructure projects and the maintenance of existing facilities. In 2010, Edgen Murray had sales of $628 million. The company is primarily owned by Jefferies Capital Partners, certain co-investors and members of senior management. The Company reported a net loss of $18.14 million on $652.94 million of sales for the nine months ended Sept. 30, 2011, compared with a net loss of $87.23 million on $454.41 million of sales for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $481.76 million in total assets, $630.17 million in total liabilities, and a $148.41 million total deficit. * * * As reported by the TCR on April 11, 2011, Moody's Investors Service lowered Edgen Murray II, L.P.'s probability of default rating (PDR) to Caa2 from Caa1, its corporate family rating (CFR) to Caa3 from Caa1 and the company's 12.25% senior secured notes to Caa3 from Caa2. The downgrade was prompted by Edgen Murray's continuing weak performance even as many of its peers began to benefit in 2010 from higher oil prices, a higher rig count for oil drilling, and increased drilling in and production from alternative shale plays. In September 2010, Standard & Poor's Ratings Services said that it lowered its corporate credit rating on Edgen Murray II L.P. to 'B- ' from 'B'. The rating outlook is stable. "The downgrade reflects S&P's expectation that 2010 EBITDA will likely be around $30 million, materially lower than its previous expectation of about $55 million, due to ongoing weakness in the company's Western Hemisphere segment as a result of lower capital spending on projects in the region," said Standard & Poor's credit analyst Sherwin Brandford. EL POLLO: S&P Assigns 'B+' Rating to Revolving Credit Facility -------------------------------------------------------------- Standard & Poor's Ratings Services assigned a 'B+' issue-level rating to El Pollo Loco Inc.'s $12.5 million first-lien, first-out revolving credit facility with a '1' recovery rating, indicating its expectations for very high (90% to 100%) recovery in the event of a payment default. "We assigned a 'B' issue-level rating to the company's $160 million first-lien term loan, with a '2' recovery rating that indicates substantial (70% to 90%) recovery. We also rate the $110 million second-lien notes a 'CCC' issue-level rating with a '6' recovery rating, which indicates negligible (0 to 10%) recovery," S&P said. The 'B-' corporate credit rating on El Pollo Loco Inc. is unchanged, and is rated on a solicited basis. The rating outlook is stable. "El Pollo Loco Inc.'s financial risk profile is 'highly leveraged' (as our criteria define the term), reflecting elevated debt levels that resulted from the acquisition of the company by its owners, and thin cash flow coverage ratios," said Standard & Poor's credit analyst Andy Sookram. "The stable outlook reflects our expectation that credit measures will improve slightly in 2012 because of debt reduction. We see operating performance remaining relatively stable as higher food costs offset some improvement in same-store sales and menu initiatives. We do not expect any liquidity issues, with the company maintaining sufficient headroom under financial covenants and revolver availability," S&P said. "We could lower the ratings if earnings decline due to heightened competitive pressures, if commodity costs increases significantly above the levels we expect, or if the cushion under the financial covenants tightens meaningfully. Under this scenario, same-store sales would drop to negative 1% or lower on a sustained basis, EBITDA margins would decline to under 16%, and the cushion under the financial covenants would narrow to under 5%. An upgrade is not a near-term consideration, but could occur if EBITDA margins improve to nearly 19%, resulting in leverage in the low-6x area and interest coverage above 1.5x," S&P said. ENER1 INC: Extends Maturity of $4.5MM Loan Agreement to Jan. 9 -------------------------------------------------------------- Ener1, Inc., as borrower, Bzinfin S.A., as agent, certain investment funds managed by Goldman Sachs Asset Management, L.P., and Bzinfin S.A., as lenders, entered into a Letter Amendment, dated Dec. 23, 2011, amending the terms of the $4,500,000 Loan Agreement, dated as of Nov. 16, 2011. Pursuant to the Letter Amendment, the Parties extended the maturity date of the Loan Agreement from Dec. 23, 2011, to Jan. 9, 2012. A full-text copy of the Letter Amendment is available at http://is.gd/w6JrYQ About Ener1 Ener1 Inc. (OTCBB: ENEI) -- http://www.ener1.com/-- has three business lines, which the company conducts through three operating subsidiaries. EnerDel, an 80.5% owned subsidiary, which is 19.5% owned by Delphi, develops Li-ion batteries, battery packs and components such as Li-ion battery electrodes and lithium electronic controllers for lithium battery packs. EnerFuel develops fuel cell products and services. NanoEner develops technologies, materials and equipment for nanomanufacturing. On Aug. 15, 2011, Ener1 disclosed that the Company's financial statements for the year ended December 31, 2010 and for the quarterly period ended March 31, 2011 should no longer be relied upon and should be restated. The determination was made following an assessment of certain accounting matters related to the loans receivable owed to Ener1 by Think Holdings and accounts receivable owed to Ener1 by Think Global held by the Company, and the timing of the recognition of the impairment charge related to the Company's investment in Think Holdings originally recorded during the quarter ended March 31, 2011. Ener1 in September 2011 announced that it has entered into an agreement to restructure its 8.25% Senior Amortizing Notes with Goldman Sachs Asset Management, L.P., and other holders of the Notes. Ener1 also announced that its primary shareholder, BzinFin S.A., has extended the maturity of its $15-million line of credit from November 2011 to July 2013. The Company and Bzinfin S.A., on Sept. 12, 2011, entered into an amendment to the Line of Credit Agreement dated June 29, 2011. Under the LOC Agreement, Bzinfin established a line of credit for the Company in the aggregate principal amount of $15,000,000, of which approximately $11,241,000 has been borrowed by the Company. Under the terms of the Amendment, the maturity date for the repayment of all advances under the LOC Agreement and all unpaid accrued interest thereon was extended to July 2, 2013, and the interest rate at which all outstanding advances will bear interest from and after Sept. 12, 2011, was increased to 15% per year. FILENE'S BASEMENT: Richard Layton OK'd as Committee's Co-Counsel ---------------------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court approved Syms' official committee of unsecured creditors' motion to retain Richards, Layton & Finger as co-counsel. The Court also approved the Debtors' motions to retain Hilco Real Estate as real property lease consultant and Hilco Streambank as intellectual property disposition consultant, Weisermazars as tax service provider, BDO USA, as accountant and auditor and the equity security holders' motion to retain Morris, Nichols, Arsht & Tunnell as Delaware co-counsel. About Filene's Basement & Syms Corp. Massachusetts-based Filene's Basement, also called The Basement, is the oldest off-price retailer in the United States. The Basement focuses on high-end goods and is known for its distinctive, low-technology automatic markdown system. Filene's Basement first filed for Chapter 11 bankruptcy protection in August 1999. Filene's Basement was bought by a predecessor of Retail Ventures, Inc., the following year. Retail Ventures in April 2009 transferred the unit to Buxbaum. Filene's Basement, Inc. and its affiliates filed for Chapter 22 (Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy Solutions serves as claims and notice agent. The Debtors disclosed assets of $236 million, including real estate of $97.7 million, and liabilities of $94 million, including $31.1 million owing on a revolving credit with Bank of America NA as agent. In addition, there were $11.1 million in letters of credit outstanding on the revolver. The 2009 Debtor was formally renamed FB Liquidating Estate, following the sale of all of its assets to Syms Corp. in June 2009. Pursuant to the Liquidating Plan confirmed in January 2010, secured creditors in the Chapter 11 case have been paid in full, and holders of priority, administrative and convenience class claims have received 100% of their allowed claims. As reported by the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen, Chairman of Abacus Advisors LLC and Chief Restructuring Officer for FB Liquidating Estate disclosed that a second distribution of dividend checks to Filene's unsecured creditors amounting to 12.5% of approved claims has been made, bringing the cumulative distributions on unsecured claims to 62.5%. On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 11-13511 to 11-13514) after a failed bid to sell the business. The two units are Syms Clothing Inc. and Syms Advertising Inc. Judge Kevin J. Carey presides over the case. Lawyers at Skadden Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The Debtors tapped Rothschild Inc. as investment banker and Cushman and Wakefield Securities, Inc., as real estate financial advisors. Syms shuttered its namesake and Filene's Basement outlets upon the bankruptcy filing and tapped a joint venture of Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC to run the going-out-of-business sales. The sale may continue until Jan. 31, 2012. Filene's Basement estimated $1 million to $10 million in assets and $50 million to $100 million in debts. The petitions were signed by Gary Binkoski, authorized representative of Filene's Basement. The official committee of unsecured creditors appointed in the 2011 case has retained Hahn & Hessen LLP as legal counsel. Holders of equity in Syms Corp. pushed for an official shareholders' committee and separation of the Syms and Filene's Basement bankruptcy estates. Gordon Brothers and Hilco are represented by Goulston & Storrs, P.C. and Ashby & Geddes, P.A. FIRST MARINER: Edwin Hale Discloses 11.6% Equity Stake ------------------------------------------------------ In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Edwin F. Hale, Sr., disclosed that, as of Dec. 28, 2011, he beneficially owns 2,226,518 shares of common stock of First Mariner Bancorp representing 11.6% of the shares outstanding. The calculation of percentage is based on 18,860,482 shares outstanding at Sept. 30, 2011, and assumes the exercise of stock purchase warrants to acquire 325,203 shares held by Mr. Hale. A full-text copy of the amended filing is available for free at http://is.gd/NAGqRu About First Mariner Headquartered in Baltimore, Maryland, First Mariner Bancorp -- http://www.1stmarinerbancorp.com/-- is a bank holding company whose business is conducted primarily through its wholly owned operating subsidiary, First Mariner Bank, which is engaged in the general general commercial banking business. First Mariner was established in 1995 and has total assets in excess of $1.3 billion as of Dec. 31, 2010. "Quantitative measures established by regulation to ensure capital adequacy require the [First Mariner] Bank to maintain minimum amounts and ratios of total and Tier I capital to risk-weighted assets, and of Tier I capital to average quarterly assets," the Company said in the filing. "As of March 31, 2011, the Bank was "under-capitalized" under the regulatory framework for prompt corrective action." As reported in the TCR on April 4, 2011, Stegman & Company, in Baltimore, expressed substantial doubt about First Mariner Bancorp's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses and has a limited capital base. The Company's balance sheet at Sept. 30, 2011, showed $1.19 billion in total assets, $1.21 billion in total liabilities and a $21.57 million total stockholders' deficit. Bankruptcy Warning As of June 30, 2011, First Mariner Bank's and the Company's capital levels were not sufficient to achieve compliance with the higher capital requirements they were required to meet by June 30, 2010. The failure to maintain these capital requirements could result in further action by their regulators. On Sept. 18, 2009, the Bank entered into an Agreement with the Federal Deposit Insurance Corporation and the Commissioner of Financial Regulation for the state of Maryland, pursuant to which it consented to the entry of an Order to Cease and Desist, which directs the Bank to (i) increase its capitalization, (ii) improve earnings, (iii) reduce nonperforming loans, (iv) strengthen management policies and practices, and (v) reduce reliance on noncore funding. The September Order required the Bank to adopt a plan to achieve and maintain a Tier I leverage capital ratio of at least 7.5% and a total risk-based capital ratio of at least 11% by June 30, 2010. We did not meet the requirements at June 30, 2010, December 31, 2010, or June 30, 2011. The failure to achieve these capital requirements could result in further action by its regulators. First Mariner currently does not have any capital available to invest in the Bank and any further increases to the Company's allowance for loan losses and operating losses would negatively impact the Company's capital levels and make it more difficult to achieve the capital levels directed by the FDIC and the Commissioner. Because the Company has not met all of the capital requirements set forth in the September Order within the prescribed timeframes, if the Company's revised capital plan is not approved or if the Company is not granted a waiver of those requirements, the FDIC and the Commissioner could take additional enforcement action against the Company, including the imposition of monetary penalties, as well as further operating restrictions. The FDIC or the Commissioner could direct the Company to seek a merger partner or possibly place the Bank in receivership. If the Bank is placed into receivership, the Company would cease operations and liquidate or seek bankruptcy protection. If the Company were to liquidate or seek bankruptcy protection, the Company does not believe that there would be assets available to holders of the capital stock of the Company. FIRST SECURITY: Michael Kramer Named CEO and Director ---------------------------------------------------- Financial services veteran Michael Kramer has been named chief executive officer and director of First Security Group, Inc. As previously announced on Dec. 6, 2011, Mr. Kramer was appointed as chief executive officer of FSGBank, N.A., the wholly-owned community-bank subsidiary of First Security. FSGBank is a $1.1 billion bank based in Chattanooga, Tennessee with 31 full-service offices in eastern and middle Tennessee and northern Georgia. "Certainly 2011 has been a year of change and transition for FSG," said First Security Group Lead Director Carol H. Jackson. "With this appointment, Mike can now lead the company in all aspects. As a shareholder of FSG, I consider today an exciting day as we can focus our complete attention on creating a successful, profitable community bank." Mr. Kramer most recently was managing director of Ridley Capital Group, a private equity/merchant banking firm focused on financial service companies. He has more than 20 years of executive leadership in commercial and retail banking, correspondent banking, credit and risk management, treasury management services, banking operations/technology and market management. For the past decade he has focused on operational and credit turnarounds in super-community and community banks, and has worked extensively with regulatory agencies including the Federal Reserve Bank and Office of the Comptroller of the Currency. Mr. Kramer succeeds Roger Holley, who resigned as CEO in April 2011. Mr. Kramer will also serve as President of First Security and FSGBank as well as a director of FSGBank, subject to regulatory non-objections. "Every day, I become more energized about the opportunity to create a special and unique community bank for our customers, employees and shareholders. With the combination of strong existing and select new employee talent, we will provide superior service to our customers as well as be active within our communities," Mr. Kramer said. "We look forward to 2012 and creating the next chapter for FSGBank." As an inducement to Mr. Kramer joining First Security and as a material term of his at-will employment agreement, he was awarded 35,000 shares of First Security's common stock. The stock closed at $1.78 on Dec. 28, 2011. As a result of the grant, First Security has approximately 1,684,000 issued and outstanding shares. Prior to his tenure with Ridley Capital, Mr. Kramer was president and CEO of Ohio Legacy Corporation, a bank holding company based in Wooster, Ohio. During his five-year tenure, he led a Board and management reorganization, executed a credit turnaround strategy and balance sheet transformation, which resulted in the recapitalization of the company by Excel Bancorp. From 1999 to 2004 he was chief operating officer and chief technology officer at Evansville, Indiana-based Integra Bank Corporation, where he led a team that transformed operating, technology and product platforms. His teams built the bank's Treasury Management, Electronic Banking and Mortgage Banking businesses. Among other career highlights, Mike led the correspondent banking practice at Cincinnati-based Star Bank,N.A. (kna as US bank) building the practice into the second largest Correspondent Bank in Kentucky and Ohio, was a member of the Strategic Advisory Board for Fiserv/CBS from 2001 to 2004 and led various key initiatives with Deluxe Corporation, a Fortune 500 financial services company. Mr. Kramer and his wife Meg have been active on various boards in the communities in which they've lived including the Canton Symphony Orchestra, Main Street Wooster, North Coast Young Life, Wooster Arts Jazz Festival and The BioHio Research and Development Center Board. He earned his undergraduate degree from Grove City College and has served there as an Adjunct Professor of Entrepreneurship focusing on Banking and Risk Management. On Dec. 28, 2011, Ralph E. "Gene" Coffman tendered his resignation as President and a director of each of First Security and the Bank. It is anticipated that Mr. Coffman will remain employed by the Bank and serve as Executive Vice President - Special Projects and report directly to Mr. Kramer. Mr. Coffman has expressed no disagreement with First Security's operations, policies or practices. First Security currently anticipates Mr. Kramer being appointed President of each of First Security and the Bank upon receipt of regulatory non-objection. About First Security Group First Security Group, Inc., is a bank holding company headquartered in Chattanooga, Tennessee, with $1.2 billion in assets as of Sept. 30, 2010. Founded in 1999, First Security's community bank subsidiary, FSGBank, N.A., has 37 full- service banking offices, including the headquarters, along the interstate corridors of eastern and middle Tennessee and northern Georgia and 325 full-time equivalent employees. In Dalton, Georgia, FSGBank operates under the name of Dalton Whitfield Bank; along the Interstate 40 corridor in Tennessee, FSGBank operates under the name of Jackson Bank & Trust. On Sept. 7, 2010, the Company entered into a Written Agreement with the Federal Reserve Bank of Atlanta, the Company's primary regulator, which prohibits the Company from declaring or paying dividends without prior written consent of the Federal Reserve. The Company is also prohibited from taking dividends, or any other form of payment representing a reduction of capital, from the Bank without prior written consent. The Company is also required, within 60 days of the Agreement, to submit to the Federal Reserve a written plan designed to maintain sufficient capital at the Company and the Bank. On April 28, 2010, FSGBank, the Company's wholly-owned subsidiary, consented and agreed to the issuance of a Consent Order by the Office of the Comptroller of the Currency (OCC). Pursuant to that Consent Order, within 120 days of the effective date of the Order, the Bank is required to achieve and thereafter maintain total capital at least equal to 13% of risk-weighted assets and Tier 1 capital at least equal to 9% of adjusted total assets. As of Sept. 30, 2010, the first financial reporting period subsequent to the 120 day requirement, the Bank's total capital to risk-weighted assets was 12.93% and the Tier 1 capital to adjusted total assets was 7.43%. The Bank has notified the OCC of the non-compliance. Joseph Decosimo and Company, PLLC, in Chattanooga, Tennessee, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred losses from operations for the past two years. The Company is also operating under formal supervisory agreements with the Federal Reserve Bank of Atlanta and the Office of the Comptroller of the Currency and is not in compliance with all provisions of the Agreements. Failure to achieve all of the Agreements' requirements may lead to additional regulatory actions. According to the Company, its ability to continue as a going concern is contingent upon its ability to devise and successfully execute a management plan to develop profitable operations, satisfy the requirements of the regulatory actions, and lower the level of problem assets to an acceptable level. The Company reported a net loss of $44.34 million on $54.91 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $33.45 million on $64.00 million of total interest income during the prior year. The Company also reported a net loss of $14.53 million on $32.85 million of total interest income for the nine months ended Sept. 30, 2011, compared with a net loss of $33.01 million on $42.53 million of total interest income for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $1.12 billion in total assets, $1.04 billion in total liabilities, and $78.04 million in total stockholders' equity. FONTAINEBLEAU LAS VEGAS: Court Strikes Contractors' Appendix ------------------------------------------------------------ The Supreme Court of Nevada rejected an attempt by various contractors and suppliers involved in the Fontainebleau project to include on the record a four-volume appendix that contained documentation the contractors and suppliers contend Wilmington Trust, as successor administrative agent for the project lenders, failed to include in the parties' dispute before the state supreme court. The matter arises in a pending certification case from the U.S. Bankruptcy Court for the Southern District of Florida. Wilmington Trust moved to strike the contractors and suppliers' appendix, contending that the included documents contain information beyond the facts certified to the state court by the bankruptcy court. The contractors and suppliers, as respondents, oppose the motion, arguing that the additional information is necessary for the state court's understanding of the certified legal questions. In 2005, a syndicate of lenders, with Bank of America as the administrative agent, loaned Fontainebleau's developers $150 million secured by a deed of trust. In 2007, Bank of America, as agent, negotiated construction financing totaling $1.85 billion, to be disbursed in three stages. Over 300 contractors and suppliers worked on the project. Bank of America included in the agreement with the general contractor, and required the general contractor to include in its agreements with subcontractors, a provision subordinating their liens to the Bank of America deed of trust. Construction proceeded for a time, but at some point, it appears that Bank of America refused to advance further funds. Work ceased, and Fontainebleau filed a Chapter 11 bankruptcy petition in Florida. The multitude of contractors, subcontractors, and suppliers asserted statutory liens against the property. Eventually, the property was sold, with the liens to attach to the proceeds, and the Chapter 11 reorganization proceeding was converted to a Chapter 7 liquidation. A dispute arose between Wilmington Trust, which succeeded Bank of America as administrative agent, and the various contractors and suppliers over the priority of their liens on the property. The bankruptcy court has sought a ruling from the state supreme court regarding the application of contractual subordination, equitable subordination, and equitable subrogation in the context of a mechanic's lien. The documents in the respondents' appendix fall into four main categories and appear to be included for the purpose of informing the state court that the factual allegations in the complaint and the factual presumptions in the questions, as drafted by the bankruptcy court, are hotly contested. First, the respondents included several of the loan documents that were referred to in the complaint but not attached to the complaint. Second, the respondents included a few, but not all, of the documents related to some post-certification motion practice in the proceeding concerning the facts to be used by the state court in answering the certified questions. Third, some documents filed in the main bankruptcy case were included, and fourth, documents from other adversary proceedings within the Fontainebleau main bankruptcy case were included. In granting Wilmington Trust's motion to strike, the state supreme court, en banc, said in a Dec. 29 opinion available at http://is.gd/ejosqffrom Leagle.com, that while an appendix may be filed to assist the court in understanding the matter, it may not be used to controvert the facts as stated in the certification order. About Fontainebleau Las Vegas Fontainebleau Las Vegas -- http://www.fontainebleau.com/-- was planned as a hotel-casino on property along the Las Vegas Strip. Its developer, Fontainebleau Las Vegas Holdings LLC and affiliates, filed for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 09-21481) on June 9, 2009. Scott L Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP, represented the Debtors in their restructuring effort. Kurtzman Carson Consulting LLC served as the Debtors' claims agent. Attorneys at Genovese Joblove & Battista, P.A., and Fox Rothschild, LLP, represented the Official Committee of Unsecured Creditors. Fontainebleau Las Vegas LLC estimated more than $1 billion in assets and debts, while each of Fontainebleau Las Vegas Capital Corp. and Fontainebleau Las Vegas Holdings LLC listed less than $50,000 in assets. In February 2010, Icahn Enterprises L.P. acquired Fontainebleau for roughly $150 million. The bankruptcy case was subsequently converted to Chapter 7. Soneet R. Kapila has been named the trustee for the Chapter 7 case of Fontainebleau Las Vegas. GALP HIGHCROSS: Negotiates New Equity to Finance Plan Distribution ------------------------------------------------------------------ GALP Highcross Limited Partnership filed with the U.S. Bankruptcy Court for the Southern District of Texas a Disclosure Statement explaining the proposed Plan of Reorganization. The Debtor will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, under the Plan, the Debtor is in the process of arranging to fund the Plan out of: (i) new equity (in the form of mandatory and non-mandatory cash calls on various limited partners); and (ii) collection of related party receivables. The Plan proposes to treat claims as follows: * Class 4 (Allowed Secured Claim of Ballinteer, LLC). Commencing on the Effective Date, the post-confirmation fixed interest rate is to be set at 6.5% per annum, with monthly payments (at the prepetition Note rate) in the amount of $45,803 and the term extended through Dec. 31, 2013, with pre-payment permitted, on advance written notice (30 days) to the secured creditor, based on 80% of the current principal. * Class 5 (Claims Secured by a Mechanic's and Materialmen's Lien). Each creditor holding a Class 5 Claim will be paid in full, on the Effective Date. * Class 6 (Claims Not Secured by a Lien or Security Interest). Each creditor holding a Class 6 Claim will be paid 20% of its allowed claim, in cash, on the Effective Date. * Class 7 (Allowed, Unsecured Claims of $1,000 or less, and in Excess of $1,000). Each creditor holding an Allowed Class 7 Claim will receive 70% of the amount of its claim, in cash, on the Effective Date. * Class 8 (Claims not Secured by a Lien or Security Interest and not subject to setoff). The claims of Class 8 claimants will be deemed allowed, without setoff or counterclaim, upon confirmation of the Plan. Following confirmation of the Plan, Class 8 claimants will retain their claims, in their full amounts against Debtor, as follows: (i) Graoch Associates No. 160 Limited Partnership - $931,405 (various insider unsecured advances/loans); and (ii) The Don Ierullo Family Trust - $669,561 (various insider unsecured advances/loans). * Class 9 (Allowed Equity Interest Holders). Each equity interest holder in Class 9 will be allowed to retain the interest held. Upon confirmation of the Plan, the property of the estate will be free and clear of any and all claims and interests of all entities, except as provided in the Plan, and will re-vest in the reorganized Debtor. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/GALP_HIGHCROSS_ds.pdf About GALP Waters Limited Partnership Houston, Texas-based GALP Waters Limited Partnership, aka Gallery at Champions Apartments, filed for Chapter 11 bankruptcy (Bankr. S.D. Tex. Case No. 11-36743) on Aug. 2, 2011. Affiliate GALP Highcross Limited Partnership filed a separate petition (Case No. 11-36741) on the same day. Matthew Hoffman, Esq., at the Law Offices Of Matthew Hoffman, P.C., in Houston, represents the Debtor in its restructuring effort. In its schedules, GALP Waters Limited Partnership disclosed $15,933,583 in assets and $15,193,950 in liabilities. The petitions were signed by Gary M. Gray, president of Waters-1 GP, Inc., general partner of Waters GP, L.P., general partner. GALP WATERS: Plan Offers 70% Recovery for Unsecured Creditors ------------------------------------------------------------- GALP Waters Limited Partnership filed with the U.S. Bankruptcy Court for the Southern District of Texas a Disclosure Statement explaining the proposed Plan of Reorganization. The Debtor will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, under the Plan the Debtor is in the process of arranging to fund the Plan out of new equity (in the form of mandatory and non-mandatory cash calls on various limited partners). The Debtor proposes to treat claims and interests as follows: * Class 4 (Allowed Secured Claim of Ballinteer, LLC) Commencing on the Effective Date, the post-confirmation fixed interest rate is to be set at 6.5% per annum, with monthly payments (at the prepetition Note rate) in the amount of $63,120 and the term extended through Dec. 31, 2013, with pre-payment permitted, on advance written notice (30 days) to the secured creditor, based on 80% of the current principal. * Class 5 (Claims Secured by a Mechanic's and Materialmen's or Judgment Lien) Each creditor holding a Class 5 Claim will be paid in full, on the Effective Date. * Class 6 (Claims Not Secured by a Lien or Security Interest) Each creditor holding a Class 6 Claim will be paid 20% of its allowed claim, in cash, on the Effective Date. * Class 7 (Allowed, Unsecured Claims of $1,000 or less, and in Excess of $1,000) Each creditor holding an Allowed Class 7 Claim will receive 70% of the amount of its claim, in cash, on the Effective Date. * Class 8 (Claims not Secured by a Lien or Security Interest and not subject to setoff) The claims of Class 8 claimants will be deemed allowed, without setoff or counterclaim, upon confirmation of the Plan. Following confirmation of the Plan, Class 8 claimants will retain their claims, in their full amounts against Debtor, as follows: (i) Graoch Associates No. 160 Limited Partnership - $2,264,122 (various insider unsecured advances/ loans); (ii) The Don Ierullo Family Trust - $669,561 (various insider unsecured advances/loans); and (iii) 2431 F.M. Limited Partnership - $185,808 (various insider unsecured advances/loans). * Class 9 (Allowed Equity Interest Holders) Each equity interest holder in Class 9 will be allowed to retain the interest held. Upon confirmation of the Plan, the property of the estate will be free and clear of any and all claims and interests of all entities, except as provided in the Plan, and will re-vest in the reorganized Debtor. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/GALP_WATERS_ds_limitedpartnership.pdf About GALP Waters Limited Partnership Houston, Texas-based GALP Waters Limited Partnership, aka Gallery at Champions Apartments, filed for Chapter 11 bankruptcy (Bankr. S.D. Tex. Case No. 11-36743) on Aug. 2, 2011. Affiliate GALP Highcross Limited Partnership filed a separate petition (Case No. 11-36741) on the same day. Matthew Hoffman, Esq., at the Law Offices Of Matthew Hoffman, P.C., in Houston, represents the Debtor in its restructuring effort. In its schedules, GALP Waters Limited Partnership disclosed $15,933,583 in assets and $15,193,950 in liabilities. The petitions were signed by Gary M. Gray, president of Waters-1 GP, Inc., general partner of Waters GP, L.P., general partner. GAMETECH INT'L: Amends Loan Agreement with U.S. Bank ---------------------------------------------------- As previously disclosed in a Form 8-K filed on June 16, 2011, GameTech International, Inc., entered into an Amended and Restated Loan Agreement with U. S. Bank N.A. and Bank of West, on June 15, 2011, which amended the terms of the Company's existing credit facility with the Lenders. On Dec. 22, 2011, the Company entered into a First Amendment to Amended and Restated Loan Agreement and Waiver of Defaults with the Lenders. The First Amendment, among other things: (i) modifies certain financial covenants set forth in the Loan Agreement; (ii) incorporates the Lender's consent to the sale of the Company's corporate headquarters (which occurred on Dec. 28, 2011); (iii) requires the Company to maintain at least $350 thousand in liquidity through Jan. 31, 2012, and at least $500 thousand in liquidity at all times thereafter; and (iv) waives any and all prior events of default. Under the terms of the First Amendment, the net cash proceeds from the sale of the corporate headquarters will be applied: (i) to pay an amendment fee equal to $214 thousand, representing one percent (1.00%) of the outstanding balance of the credit facility as of Dec. 22, 2011; (ii) to pay all fees and interest due and payable under the credit facility as of the sale date (including all current interest , all deferred interest accruing from June 15, 2011, through the sale date, and the remaining portion of a closing fee, in the amount of $368 thousand, incurred in connection with the closing of the Loan Agreement in June 2011); and (iii) to pay down the outstanding principal balance under the credit facility. The First Amendment also modifies certain covenants contained in the Loan Agreement, and (i) requires the Company to apply 75% of its excess cash flow as of the end of each fiscal quarter towards the satisfaction of its obligations under the credit facility; (ii) to the extent liquidity exceeds $1.5 million at any time, requires the Company to apply such excess towards the satisfaction of its obligations under the credit facility; and (iii) prohibits capital expenditures for any use other than purchases of equipment for leasing to customers in the ordinary course of business, and limits the amount of capital expenditures that may be made by the Company. As of Dec. 22, 2011, after giving effect to an unscheduled principal payment of $1.5 million on Dec. 9, 2011, the outstanding balance under the credit facility was approximately $21.4 million. Following the application of the net cash proceeds from the sale of the corporate headquarters, the outstanding balance under the credit facility as of Dec. 28, 2011, was approximately $16.6 million The outstanding balance under the credit facility continues to bear interest at a base rate equal to an applicable margin plus the daily Eurocurrency rate or an alternative base rate. The current applicable margin is 5.80%, and increases to 7.50% (February 2012 through April 2012), 8.50% (May 2012 through October 2012) and 9.50% (November 2012 through June 30, 2013). However, the Company's interest rate swap agreement continues to remain effective following its entry into the First Amendment. As of Dec. 22, 2011, the interest rate on the outstanding balance under the credit facility, after giving effect to the interest rate swap agreement, was 9.79%. A full-text copy of the First Amendment is available at: http://is.gd/hIXmlN As previously disclosed, the Company entered into a Purchase and Sale Agreement and Joint Escrow Instructions, on Nov. 2, 2011, with Kassbohrer All Terrain Vehicles, Inc., pursuant to which the Company agreed to sell its corporate headquarters in Reno, Nevada, which includes approximately 4.9 acres of land, an industrial facility consisting of approximately 115,000 square feet, and certain other assets related to the property,to the Buyer for a purchase price equal to $6.125 million. On Dec. 28, 2011, the Company and the Buyer closed the sale of the Property. All of the net proceeds from the sale of the Property were used by the Company to reduce the outstanding obligations under its credit facility. There are no material relationships between the Buyer and the Company, or any of its affiliates directors, officers, or their associates, other than in respect of the transactions contemplated by the Agreement. Pursuant to the terms of the Agreement, the Company expects to lease a significant portion of the Property from the Buyer for a period of approximately sixteen months from the closing date. About GameTech International Based in Reno, Nevada, GameTech develops and manufactures gaming entertainment products and systems. GameTech holds a significant position in the North American bingo market with its interactive electronic bingo systems, portable and fixed-based gaming units, and complete hall management modules. It also holds a significant position in select North American VLT markets, primarily Montana, Louisiana, and South Dakota, where it offers video lottery terminals and related gaming equipment and software. It also offers Class III slot machines and server-based gaming systems. The Company reported a net loss of $20.4 million on $35.2 million of revenue for the 52 weeks ended Oct. 31, 2010, compared with a net loss of $10.5 million on $47.8 million of revenue for the 52 weeks ended Nov. 1, 2009. Piercy Bowler Taylor & Kern, in Las Vegas, Nevada, expressed substantial doubt about GameTech International, Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has suffered reoccurring losses from operations and has been unable to extend the maturity of its debt, or raise additional capital necessary to execute its business plan. The Company's balance sheet at May 1, 2011, showed $40.19 million in total assets, $32.33 million in total liabilities and $7.86 million in total stockholders' equity. GENERAL MARITIME: Committee Taps Jones Day as Counsel ----------------------------------------------------- BankruptcyData.com reports that General Maritime's official committee of unsecured creditors filed with the U.S. Bankruptcy Court motions to retain: * Jones Day (Contact: Paul D. Leak) as counsel at these hourly rates: partner at $625 to 925, counsel at 600 to 725, associate at 325 to 700 and legal assistant at 100 to 275; * Lowenstein Sandler (Contact: S. Jason Teele) as conflicts counsel at these hourly rates: partner at $435 to 895, senior counsel at 390 to 660, counsel at 350 to 630, associate at 250 to 400 and paraprofessional at 145 to 245; and * Parella Weinberg Partners (Contact: Derron S. Slonecker) as financial advisor for a monthly advisory fee of $125,000 and a $1 million success fee. About General Maritime New York-based General Maritime Corporation, through its subsidiaries, provides international transportation services of seaborne crude oil and petroleum products. The Company's fleet is comprised of VLCC, Suezmax, Aframax, Panamax and product carrier vessels. The fleet consisted of 30 owned vessels and three chartered vessels. The company generates substantially all of its revenues by chartering its fleet to third-party customers. The largest customers include major international oil companies, oil producers, and oil traders such as BP, Chevron Corporation, CITGO Petroleum Corp., ConocoPhillips, Exxon Mobil Corporation, Hess Corporation, Lukoil Oil Company, Stena AB, and Trafigura. General Maritime and 56 subsidiaries filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-15285) on Nov. 17, 2011. Douglas Mannal, Esq., and Adam C. Rogoff, Esq., at Kramer Levin Naftalis & Frankel LLP, in New York, serve as counsel to the Debtors. Moelis & Company is the financial advisor. Garden City Group Inc. is the claims and notice agent. General Maritime disclosed $1,718,598,000 in assets and $1,412,900,000 in liabilities as of Sept. 30, 2011. General Maritime's publicly held securities include 121.5 million common shares and $300 million in unsecured 12% notes due 2017. Prepetition, General Maritime reached agreements with its key senior lenders, including its bank group, led by Nordea Bank Finland plc, New York Branch as administrative agent, as well as affiliates of Oaktree Capital Management, L.P., on the terms of a restructuring. Under terms of the agreements, Oaktree will provide a $175 million new equity investment in General Maritime and convert its prepetition secured debt to equity. In conjunction with the filing, General Maritime has received a commitment for up to $100 million in new DIP financing from a group of lenders led by Nordea as administrative agent. Counsel for Nordea, as the DIP Agent and the Senior Agent, are Thomas E. Lauria, Esq., and Scott Greissman, Esq., at White & Case LLP. Counsel for Oaktree Capital Management, the Junior Agent, are Edward Sassower, Esq., and Brian Schartz, Esq., at Kirkland & Ellis, LLP. An ad hoc group of holders of more than $185 million of the $300 million of 12% Senior Notes due 2017 issued by General Maritime is represented by Paul D. Leake, Esq., and Pedro A. Jimenez, Esq., at Jones Day. GENTA INC: Has 1.3 Billion Outstanding Common Shares ---------------------------------------------------- The number of outstanding shares of Genta Incorporated common stock par value $0.001 as of Dec. 30, 2011, is 1,344,291,567. About Genta Incorporated Berkeley Heights, New Jersey-based Genta Incorporated (OTC BB: GNTA) -- http://www.genta.com/-- is a biopharmaceutical company engaged in pharmaceutical (drug) research and development. The Company is dedicated to the identification, development and commercialization of novel drugs for the treatment of cancer and related diseases. EisnerAmper LLP, in Edison, New Jersey, expressed substantial doubt about Genta's ability to continue as a going concern following the 2010 financial results. The independent auditors noted that of the Company's recurring losses from operations, negative cash flows from operations and current maturities of convertible notes payable. Amper, Politziner & Mattia, LLP, in Edison, New Jersey, did not include a going concern explanatory paragraph in its audit report on the Company's financial statements for fiscal 2009. The Company reported a net loss of $167.3 million on $257,000 of sales for 2010, compared with a net loss of $86.3 million on $218,000 for 2009. The Company also reported a net loss of $37.36 million on $170,000 of net product sales for the nine months ended Sept. 30, 2011, compared with a net loss of $133.43 million on $192,000 of net product sales for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $16.82 million in total assets, $32.13 million in total liabilities and a $15.30 million total stockholders' deficit. Bankruptcy Warning In September 2011, the Company issued $12.7 million of units, consisting of $4.2 million of senior secured convertible notes and $8.5 million of senior secured cash collateralized convertible notes. In connection with the sale of the units, the Company also issued two types of debt warrants in an amount equal to 100% of the purchase price for each unit. The Company had direct access to $4.2 million of the proceeds, and the remaining $8.5 million of the proceeds were placed in a blocked account as collateral security for the $8.5 million senior secured cash collateralized convertible notes. Presently, with no further financing, the Company projects that it will run out of funds during the first quarter of 2012. The Company currently does not have any additional financing in place. If it is unable to raise additional funds, the Company could be required to reduce its spending plans, reduce its workforce, license one or more of its products or technologies that it would otherwise seek to commercialize itself, sell some or all of its assets, cease operations or even declare bankruptcy. There can be no assurance that the Company can obtain financing, if at all, or raise those additional funds, on terms acceptable to it. GREENMAN TECHNOLOGIES: Delays Form 10-K for Fiscal 2011 ------------------------------------------------------- GreenMan Technologies, Inc., informed the U.S. Securities and Exchange Commission that additional time is required in order to prepare and file its Form 10-K for the fiscal year ended Sept. 30, 2011. The Company further represents that the Form 10-K will be filed by no later than the 15th day following the date on which the Form 10-K was due. About Greenman Technologies Lynnfield, Mass.-based GreenMan Technologies, Inc. (OTC QB: GMTI) through its two alternative energy subsidiaries, American Power Group, Inc. ("APG") and APG International, Inc. ("APGI"), provides a cost-effective patented dual fuel conversion technology for diesel engines and diesel generators. Schechter Dokken Kanter Andrews & Selcer, Ltd., in Minneapolis, Minnesota, expressed substantial doubt about GreenMan Technologies' ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has continued to incur substantial losses from operations, has not generated positive cash flows and has insufficient liquidity to fund its ongoing operations. The Company also reported a net loss of $5.02 million on $2.86 million of net sales for the nine months ended June 30, 2011, compared with a net loss of $4.45 million on $998,000 of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $6.25 million in total assets, $7.81 million in total liabilities, and a $1.56 million stockholders' deficit. GUANGZHOU GLOBAL: Incurs $2.3 Million Net Loss in 2010 ------------------------------------------------------ Guangzhou Global Telecom, Inc., filed with the U.S. Securities and Exchange Commission an annual report on Form 10-K reporting a net loss of US$2.28 million on US$34.18 million of sales for the year ended Dec. 31, 2010, compared with a net loss of US$2.82 million on US$30.48 million of sales during the prior year. The Company's balance sheet at Dec. 31, 2010, showed US$2.22 million in total assets, US$5.12 million in total liabilities and a US$2.90 million total stockholders' deficit. Samuel H. Wong & Co., LLP, in n Mateo, Calif., noted in its report on the Company's 2010 financial results that the Company has incurred substantial losses, and has difficulty to pay the People's Republic of China government Value Added Tax and past due Debenture Holders Settlement, all of which raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/sCB3AX First Quarter Guangzhou Global filed a Form 10-Q, reporting net income of US$158,199 on US$9.22 million of sales for the three months ended March 31, 2011, compared with a net loss of US$1.47 million on US$9.42 million of sales for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed US$2.48 million in total assets, US$5.16 million in total liabilities, and a US$2.68 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/oTj6BT Second Quarter Guangzhou Global reported net income of US$1,167 on US$3.51 million of sales for the three months ended June 30, 2011, compared with a net loss of US$1.21 million on US$9.18 million of sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed US$2.54 million in total assets, US$5.22 million in total liabilities and a US$2.67 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/2zVcDO Third Quarter Guangzhou Global reported a net loss of US$27,367 on US$3.09 million of sales for the three months ended Sept. 30, 2011, compared with net income of US$206,433 on US$9.18 million of sales for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed US$2.61 million in total assets, US$5.29 million in total liabilities and a US$2.67 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/RYRyXr About Guangzhou Global Tallahassee, Fl.-based Guangzhou Global Telecom, Inc., was incorporated as Avalon Development Enterprises, Inc., on March 29, 1999, under the laws of the State of Florida. The Company, through its subsidiaries, is now principally engaged in the distribution and trading of rechargeable phone cards, cellular phones and accessories within cities in the People's Republic of China. HAMPTON ROADS: Gateway Bank Wins "Best Bank" Award -------------------------------------------------- Hampton Roads Bankshares, Inc., the holding company for The Bank of Hampton Roads and Shore Bank, announced that Gateway Bank & Trust Co., a division of BHR, has been voted "Best Bank" by the readers of the Elizabeth City, North Carolina Daily Advance as part of the publication's 2011 Annual Readers' Choice Outstanding Service Awards. Gateway Bank also received this award in 2010 and 2008. The complete results of the 2011 awards will be included in a special section in the December 30th edition of the Daily Advance. Donna W. Richards, BHR President, Virginia/North Carolina, said, "We are very gratified to be selected again for the "Best Bank" award by the readers of the Daily Advance. We work hard to meet the financial services needs of families and businesses in our communities and appreciate the support of our customers." George E. Thomas, Jr., Albemarle Market President, said, "Over the last 13 years, we have established a strong presence in Elizabeth City and other communities in North Carolina, thanks to the hard work of our employees and the loyalty of our customers. We are honored to win this award, and to be recognized - once again - as a trusted member of the communities we serve." About Hampton Roads Bankshares Hampton Roads Bankshares, Inc. (NASDAQ: HMPR) -- http://www.hamptonroadsbanksharesinc.com/-- is a bank holding company that was formed in 2001 and is headquartered in Norfolk, Virginia. The Company's primary subsidiaries are Bank of Hampton Roads, which opened for business in 1987, and Shore Bank, which opened in 1961. Currently, Bank of Hampton Roads operates twenty- eight banking offices in the Hampton Roads region of southeastern Virginia and twenty-four offices in Virginia and North Carolina doing business as Gateway Bank & Trust Co. Shore Bank serves the Eastern Shore of Maryland and Virginia through eight banking offices and fifteen ATMs. Effective June 17, 2010, the Company and its banking subsidiary, Bank of Hampton Roads ("BOHR"), entered into a written agreement with the Federal Reserve Bank of Richmond and the Bureau of Financial Institutions of the Virginia State Corporation Commission. The Company's other banking subsidiary, Shore Bank, is not a party to the Written Agreement. Under the terms of the Written Agreement, among other things, BOHR agreed to develop and submit for approval plans to (a) strengthen board oversight of management and BOHR's operations, (b) strengthen credit risk management policies, (c) improve BOHR's position with respect to loans, relationships, or other assets in excess of $2.5 million which are now, or may in the future become, past due more than 90 days, are on BOHR's problem loan list, or adversely classified in any report of examination of BOHR, (d) review and revise, as appropriate, current policy and maintain sound processes for determining, documenting, and recording an adequate allowance for loan and lease losses, (e) improve management of BOHR's liquidity position and funds management policies, (f) provide contingency planning that accounts for adverse scenarios and identifies and quantifies available sources of liquidity for each scenario, (g) reduce the Bank's reliance on brokered deposits, and (h) improve BOHR's earnings and overall condition. The Company said in its Form 10-Q for the Sept. 30, 2010 quarter that due to its financial results, the substantial uncertainty throughout the U.S. banking industry, and the Written Agreement the Company and BOHR have entered into, doubts existed regarding the Company's ability to continue as a going concern through the second quarter of 2010. However, management believes this concern has been mitigated by the initial closing of the Private Placement that occurred on Sept. 30, 2010. The 2010 results did not include a going concern qualification from Yount Hyde. The Company reported a net loss of $210.35 million on $122.20 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $201.45 million on $149.44 million of total interest income during the prior year. The Company also reported a net loss of $76.82 million on $77.91 million of total interest income for the nine months ended Sept. 30, 2011, compared with a net loss of $176.07 million on $93.61 million of total interest income for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $2.43 billion in total assets, $2.30 billion in total liabilities, and $135.67 million in total shareholders' equity. HOVNANIAN ENTERPRISES: Incurs $286.1 Million Net Loss in 2011 ------------------------------------------------------------- Hovnanian Enterprises, Inc., filed with the U.S. Securities and Exchange Commission an annual report on Form 10-K, reporting a net loss of $286.08 million on $1.13 billion of total revenues for the fiscal year ended Oct. 31, 2011, compared with net income of $2.58 million on $1.37 billion of total revenues during the prior year. The Company's balance sheet at Oct. 31, 2011, showed $1.60 billion in total assets, $2.09 billion in total liabilities, and a $496.60 million total deficit. A full-text copy of the Form 10-K is available for free at: http://is.gd/DQItJA About Hovnanian Enterprises Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV) -- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian, is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes. * * * As reported by the TCR on Nov. 4, 2011, Fitch Ratings has lowered the Issuer Default Rating (IDR) of Hovnanian Enterprises, Inc., (NYSE: HOV) to Restricted Default (RD) from 'CCC'. The downgrade reflects Fitch's view that the debt exchange of certain of Hovnanian's existing senior unsecured notes for new senior secured notes is a distressed debt exchange under Fitch's 'Distressed Debt Exchange Criteria', published Aug. 12, 2011. Fitch anticipates adjusting the company's IDR to the appropriate level to reflect the new capital structure within the next 14 days. In the Nov. 7, 2011, edition of the TCR, Standard & Poor's Ratings Services raised its corporate credit rating on Hovnanian Enterprises Inc. (Hovnanian) to 'CCC-' from 'SD' (selective default). "We also raised our ratings on the company's 10.625% senior secured notes due 2016 to 'CCC-' from 'CC' and senior unsecured notes to 'CC' from 'D'. The '3' recovery rating on the senior secured notes and the '6' recovery rating on the senior unsecured notes remain unchanged," S&P stated. "These rating actions follow our reassessment of Hovnanian's business and financial risk profile following the completion of the company's debt exchange offer, in which the company exchanged $195 million of its seven series of senior unsecured notes for $141.8 million 5% senior secured notes due 2021 and $53.2 million 2% senior secured notes due 2021," said credit analyst George Skoufis. "Our rating on Hovnanian reflects the company's highly leveraged financial risk profile, a less-than-adequate liquidity position, and very weak credit metrics." As reported by the TCR on Sept. 13, 2011, Moody's Investors Service downgraded the corporate family and probability of default ratings of Hovnanian Enterprises, Inc. to Caa2 from Caa1. The downgrade reflects Hovnanian's continued operating losses, weak gross margins, very high homebuilding debt leverage, and Moody's expectation that the weakness in year-over-year revenues, deliveries, and net new contracts experienced by the company will continue for the next one to two years. In addition, the downgrades acknowledge that Hovnanian's cash balance is weakening and cash flow generation is negative as it pursues new land opportunities, which represented about $300 million of investment over the first nine months of fiscal 2011. HT PUEBLO: Plan Unconfirmable; Bank Lender Wins Stay Relief ----------------------------------------------------------- Bankruptcy Judge Michael E. Romero granted lender Zions First National Bank relief from the automatic stay in the Chapter 11 case of H.T. Pueblo Properties LLC, saying the circumstances of the case reveal the unfortunate but all too-common scenario of a buyer who paid too much for a property, and was unable to service the debt on the purchase. The facts, the judge said, demonstrate the property is significantly "underwater," and the Debtor has no reasonable prospect of reorganization nor the ability to provide adequate protection to the holder of the first lien on the property. A copy of Judge Romero's Dec. 30, 2011 Order is available at http://is.gd/fiMHKDfrom Leagle.com. H.T. Pueblo Properties LLC's sole asset is the Ramada Inn Pueblo, a motel in Pueblo, Colorado. H.T. Pueblo filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 11-24718) on June 21, 2011. Judge Michael E. Romero presides over the case. David Warner, Esq. -- david.warner@sendwass.com -- at Sender & Wasserman, P.C. It scheduled $2,113,405 in assets and $5,481,912 in debts. H.T. Pueblo is owned by 88% by Michael Hu and 12% by his wife. On May 30, 2007, the Debtor purchased the property for $5,128,000. The Debtor's schedules list the value of the Property as $2,099,905. Zions First National Bank holds a promissory note from the Debtor in the face amount of $2,614,800, secured by a first deed of trust on the property, an assignment of rents, and a commercial security agreement. The balance due on Zions' note as of the petition date was $3,073,639. The Debtor filed a proposed plan on Dec. 6, 2011. The Plan proposes the Reorganized Debtor will pay unsecured creditors from the Property's cash flow over five years, beginning on Sept. 1, 2013. Unsecured creditors, including Mr. and Mrs. Hu, are divided into eleven classes, to receive essentially 25% of funds remaining after paying priority taxes and Zions. However, at trial, Mr. Hu conceded the unsecured creditors are not anticipated to receive any payment. The Plan also provides the Hus' interests will be canceled and transferred to a creditors' trust. The Hus may buy back the transferred interests over the course of the Plan if the Debtor pays as much or more than the projected payments to a "net profits fund." The Plan says a trustee will be appointed to manage the creditors' trust, but does not identify this individual. In addition, Mr. Hu will have the authority to vote any creditors' trust membership interests that he buys back post-confirmation in the daily operation of the business. IMAGE METRICS: Reports US$19,000 Net Income in Fiscal 2011 ---------------------------------------------------------- Image Metrics, Inc., filed with the U.S. Securities and Exchange Commission an annual report on Form 10-K, reporting net income of US$19,000 on US$7.02 million of revenue for the year ended Sept. 30, 2011, compared with a net loss of US$9.65 million on US$5.94 million of revenue during the prior year. The Company's balance sheet at Sept. 30, 2011, showed US$3.72 million in total assets, US$12.55 million in total liabilities, and a US$8.83 million total shareholders' deficit. SingerLewak LLP, in Los Angeles, Calif., expressed substantial doubt about the Company's ability to continue as a going concern following the Company's fiscal 2011 financial results. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency at Sept. 30, 2011. A full-text copy of the Form 10-K is available for free at: http://is.gd/flKKUK About Image Metrics Santa Monica, Calif.-based Image Metrics, Inc., provides technology-based facial animation solutions to the interactive entertainment industry. Using proprietary software and mathematical algorithms that "read" human facial expressions, the Company's technology converts video footage of real-life actors into 3D computer generated animated characters. Examples of the Company's facial animation projects include the 2008 "Grand Theft Auto IV" video game, the 2009 computer generated aging of Brad Pitt in the feature film "The Curious Case of Benjamin Button," the 2009 Black Eyed Peas' "Boom Boom Pow" music video, and the 2010 "Red Dead Redemption" video game. The Company's key intellectual property consists of one patent registered in the United States, four additional patents in process, the identification of 16 potential new patents, and significant well-documented trade secrets. IMS HEALTH: S&P Raises Senior Unsecured Rating to 'B+' ------------------------------------------------------ Standard & Poor's Ratings Services revised its recovery rating on Danbury, Conn.-based IMS Health Inc.'s senior unsecured debt to '5', indicating its expectation of modest (10% to 30%) recovery for lenders in the event of a payment default, from '6' (0% to 10% recovery expectation). "As per our notching criteria for a recovery rating of '5', we are raising our senior unsecured issue- level rating on the senior unsecured debt to 'B+' (one notch lower than the 'BB-' corporate credit rating) from 'B'. The revision of the recovery rating results from our estimate of a higher enterprise value than the one we previously used in our simulated default scenario, which reflects improved operating performance and the earnings contribution from acquisitions," S&P said. "At the same time, we affirmed our other existing ratings on the company, including the 'BB-' corporate credit rating. The rating outlook is stable," S&P said. "We expect revenue to increase by about 8% in 2012, following the acquisition of SDI Health LLC on Oct. 31, 2011. However, beyond 2012 we believe revenue growth will moderate to the low-single digits, reflecting the challenging, although improving, industry conditions for outsourced pharmaceutical services," said Standard & Poor's credit analyst Michael Berrian. "In our opinion, near- term EBITDA margins will be in the mid-20% range, reflecting pricing pressure in a challenging market for outsourced services, but also lower selling, general, and administrative expenses (SG&A) and one-time expenses following the leveraged buyout in 2010. Those margins will still enable free cash flow generation of at least $275 million, but we believe sponsor ownership could result in free cash flow being directed to shareholder friendly actions, instead of debt repayment." "Our ratings on IMS Health Inc. reflect the privately held company's aggressive financial risk profile, highlighted by our expectation of leverage being sustained at more than 4x over the near term. EBITDA growth in the quarter ended Sept. 30, 2011, resulted in adjusted debt leverage decreasing to 4.6x. After stronger margin performance in 2011, we believe EBITDA margins could contract to a still-strong, mid-20% area in 2012 on a shift in service mix. At that level, we still expect IMS to generate strong cash flow. The uncertain financial policy under sponsor ownership could result in free cash flow being used for shareholder-friendly actions instead of debt reduction; this supports our belief that leverage could be sustained at more than 4x over the near term," S&P said. INNER CITY: Can Access Senior Lenders Cash Collateral Until Jan. 9 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York entered, on Dec. 8, 2011, a sixth interim order authorizing Inner City Media Corporation, et al., to use cash collateral of the Senior Lenders through and including Jan. 9, 2012, solely in accordance with an approved budget and a 13 week professional fee budget. The cash collateral will be used exclusively to fund working capital and general corporate purposes of the Debtors, and the costs, fees, and expenses incurred in connection with the administration and prosecution of the cases. A hearing will be held on Jan. 9, 2012, at 2:00 p.m. to considerr entry of a Successive Interim Order on the use of cash collateral or Final Order, as applicable. A copy of the approved budget is available for free at: http://bankrupt.com/misc/innercity.doc231.pdf About Inner City Media Corp. On Aug. 23, 2011, affiliates of Yucaipa and CF ICBC LLC, Fortress Credit Funding I L.P., and Drawbridge Special Opportunities Fund Ltd., signed involuntary Chapter 11 petitions for Inner City Media Corp. and its affiliates (Bankr. S.D.N.Y. Case Nos. 11-13967 to 11-13979) to collect on a $254 million debt. The Petitioning Creditors are party to the senior secured credit Facility pursuant to which they (or their predecessors in interest) extended $197 million in loans to the Alleged Debtors to be used for general corporate purposes. More than two years ago, the Alleged Debtors defaulted under the Senior Secured Credit Facility, and in any event the entire amount of principal and accrued and unpaid interest and fees became immediately due and payable on Feb. 13, 2010. Inner City Media's affiliates subject to the involuntary Chapter 11 are ICBC Broadcast Holdings, Inc., Inner-City Broadcasting Corporation of Berkeley, ICBC Broadcast Holdings-CA, Inc., ICBC- NY, L.L.C., ICBC Broadcast Holdings-NY, Inc., Urban Radio, L.L.C., Urban Radio I, L.L.C., Urban Radio II, L.L.C., Urban Radio III, L.L.C., Urban Radio IV, L.L.C., Urban Radio of Mississippi, L.L.C., and Urban Radio of South Carolina, L.L.C. Judge Shelley C. Chapman granted each of Inner City Media Corporation and its debtor affiliates relief under Chapter 11 of the United States Code. The decision came after considering the involuntary petitions, and the Debtors' answer to involuntary petitions and consent to entry of order for relief and reservation of rights. Attorneys for Yucaipa Corporate Initiatives Fund II, L.P. and Yucaipa Corporate Initiatives (Parallel) Fund II, L.P. are John J. Rapisardi, Esq., and Scott J. Greenberg, Esq., at Cadwalader, Wickersham & Taft LLP. Attorneys for CF ICBC LLC, Fortress Credit Funding I L.P., and Drawbridge Special Opportunities Fund Ltd. are Adam C. Harris, Esq., and Meghan Breen, Esq., at Schulte Roth & Zabel LLP. Akin Gump Strauss Hauer & Feld LLP serves as the Debtors' counsel. Rothschild Inc. serves as the Debtors' financial advisors and investment bankers. GCG Inc. serves as the Debtors' claims agent. 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 Inner City Media because an insufficient number of persons holding unsecured claims against the Debtor has expressed interest in serving on a committee. ITC LAS VEGAS: Asks Court to Dismiss Chapter 11 Case ---------------------------------------------------- ITC Las Vegas, LLC, asks the U.S. Bankruptcy Court for the District of Nevada to dismiss its Chapter 11 case, citing as cause the substantial loss to or diminution of the estate and the absence of a reasonable likelihood of rehabilitation. On Nov. 15, 2011, the Court granted the Bank of Nevada's motion for relief from stay, allowing the secured creditor to foreclose possession of the Debtor's indoor tennis facility. Absent the tennis facility, Debtor cannot support a plan of reorganization and possesses no assets to liquidate for the benefit of unsecured creditors. About ITC Las Vegas, LLC Las Vegas, Nevada-based ITC Las Vegas, LLC, filed for Chapter 11 protection (Bankr. D. Nev. Case No. 11-27150) on Oct. 31, 2011. Bruce A. Markell presides over the case. Ryan D. Stibor, Esq., at Stibor Group, LLC represents the Debtor in its restructuring efforts. The Debtor estimated assets at $10 million to $50 million and debts at $1 million to $10 million. The petition was signed by James J. Ahearn, operating manager. J. CREW: Bank Debt Trades at 6% Off in Secondary Market ------------------------------------------------------- Participations in a syndicated loan under which J. Crew is a borrower traded in the secondary market at 93.75 cents-on-the- dollar during the week ended Friday, Dec. 30, 2011, an increase of 0.46 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 10, 2018, and carries Moody's B1 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 133 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. As reported by the Troubled Company Reporter on Dec. 8, 2011, Standard & Poor's revised its outlook on New York City-based J. Crew, Inc., to negative from stable. "At the same time, we affirmed all of our ratings on the company, including our 'B' corporate credit rating," S&P said. "The outlook revision reflects our view that that performance over the near term is likely to be below our forecast, and that leverage is likely to remain slightly below 7x," said Standard & Poor's credit analyst Allyn Arden. "The speculative-grade rating on J. Crew reflects the substantial amount of debt added to the company in the TPG and Leonard Green LBO completed earlier this year. Standard & Poor's expects credit protection measures to remain thin despite J. Crew's efforts to correct merchandising missteps this year. These missteps are an example of fashion risk in the intensely competitive sector," S&P said. About J. Crew J. Crew -- http://www.jcrew.com/-- is a nationally recognized apparel and accessories retailer that differentiates itself through high standards of quality, style, design and fabrics with consistent fits and authentic details. J. Crew is an integrated multi-channel, multi-brand specialty retailer that operates stores and websites to consistently communicate with its customers. The Company designs, markets and sells its products, including those under the J. Crew, crewcuts and Madewell brands, offering complete assortments of women's, men's and children's apparel and accessories. Its customer base consists primarily of affluent, college educated, professional and fashion-conscious women and men. In 2011, J. Crew expanded its international e-commerce to include shipping to the United Kingdom, while continuing to ship anywhere in the U.S., Canada and Japan. For the year ended Jan. 29, 2011, J. Crew reported net income of $121.5 million on total revenues of $1.72 billion compared with net income of $123.4 million on total revenues of $1.58 billion in 2010. As of Jan. 29, 2011, the Company's balance sheet showed $860.2 million in total assets, $349.0 million in total liabilities and $511.1 million in total stockholders' equity. KOREA TECHNOLOGY: Can Borrow $106,250 From R&W on Unsecured Basis ----------------------------------------------------------------- On Dec. 1, 2011, the U.S. Bankruptcy Court for the District of Utah entered an interim order approving Korea Technology Industry America, Inc.'s motion for postpetition financing of up to $106,250 on an unsecured basis from Rutter & Wilbanks Corporation. R&W has agreed that the repayment obligations under the Startup DIP financing will be subordinated to unsecured claims. The Debtors will use the Startup DIP financing to begin the completion of construction and commissioning of the hot water extraction and evaporation process portions of the Debtors processing facility and operation of the "dry froth" circuit (the "Plant Startup Program"), which is a condition to closing the approved sale of the Debtors' assets to R&W. About Korea Technology Korea Technology Industry America, Inc., is a subsidiary of Seoul-based Korea Technology Industry Co. that tried to squeeze crude oil from Utah's sandy ridges. Korea Technology Industry America, Uintah Basin Resources LLC, and Crown Asphalt Ridge L.L.C., filed separate Chapter 11 bankruptcy petitions (Bankr. D. Utah Case Nos. 11-32259, 11-32261, and 11-32264) on Aug. 22, 2011. The cases are jointly administered under KTIA's case. Steven J. McCardell, Esq., and Kenneth L. Cannon II, Esq., at Durham Jones & Pinegar, P.C., in Salt Lake City, serve as the Debtors' counsel. The Debtors tapped DBH Consulting, LLC, as their accountant. The Debtors disclosed US$35,246,360 in assets and US$38,751,528 in debts. Mark D. Hashimoto, in his capacity as examiner in the Debtors cases retained George Hofmann and the firm of Parsons Kinghorn Harris, P.C., as his counsel, and Piercy Bowler Taylor & Kern as his accountants and financial advisors. Richard A. Wieland, the United States Trustee for Region 19, has appointed three members to the Official Committee of Unsecured Creditors. KOREA TECHNOLOGY: Creditors Say APA With R&W is Unenforceable ------------------------------------------------------------- Secured Creditors Western Energy Partners, LLC, Tar Sands Holding, LLC, and Elgin Services Company, Inc., ask the U.S. Bankruptcy court for the District of Utah to amend its order approving the sale or sales of substantially all of the assets of Korea Technology Industry America, Inc., Uintah Basin Resources, LLC, and Crown Asphalt Ridge, LLC, entered Nov. 15, 2011, to address deficiencies in the Asset Purchase Agreement between the Debtors, as Sellers and Rutter and Wilbanks Corporation, as Buyer. The Secured Creditors tell the Court that the APA was a hastily constructed document, and that it was pieced together during the course of an evidentiary hearing with little or no opportunity for parties in interest to contemplate its actual implementation and to address its many internal inconsistencies and shortcomings. For the benefit of the Debtors estate and creditors, and to avoid costly future litigation, according to the Secured Creditors, the Court should amend the Sale Order to address these deficiencies: A. There is No Mechanism for Determining the Amount to be Paid. B. By Its Terms, the APA is Not Enforceable and May Never Become Enforceable. C. There is No Mechanism in the APA or in the Sale Order That Requires the Buyer to Demonstrate the Ability to Close Prior to The Closing Date. D. The Consequences of a "Force Majeure" Event are Inconsistent and Contradictory. E. There Is No Protection For Losses or Damages Caused by the Buyer To The Assets if the Buyer does not Close. A copy of the motion is available for free at: http://bankrupt.com/misc/koreatechnology.doc214.pdf As reported in the TCR on Nov. 18, 2011, the Debtors won Bankruptcy Court authority to sell the Asphalt Ridge Oil Sands Project and assign related contracts to Rutter and Wilbanks Corporation, the stalking horse bidder for the sale. About Korea Technology Korea Technology Industry America, Inc., is a subsidiary of Seoul-based Korea Technology Industry Co. that tried to squeeze crude oil from Utah's sandy ridges. Korea Technology Industry America, Uintah Basin Resources LLC, and Crown Asphalt Ridge L.L.C., filed separate Chapter 11 bankruptcy petitions (Bankr. D. Utah Case Nos. 11-32259, 11-32261, and 11-32264) on Aug. 22, 2011. The cases are jointly administered under KTIA's case. Steven J. McCardell, Esq., and Kenneth L. Cannon II, Esq., at Durham Jones & Pinegar, P.C., in Salt Lake City, serve as the Debtors' counsel. The Debtors tapped DBH Consulting, LLC, as their accountant. The Debtors disclosed US$35,246,360 in assets and US$38,751,528 in debts. Mark D. Hashimoto, in his capacity as examiner in the Debtors cases retained George Hofmann and the firm of Parsons Kinghorn Harris, P.C., as his counsel, and Piercy Bowler Taylor & Kern as his accountants and financial advisors. Richard A. Wieland, the United States Trustee for Region 19, has appointed three members to the Official Committee of Unsecured Creditors. LOGIC DEVICES: Hein & Associates Raises Going Concern Doubt ----------------------------------------------------------- LOGIC Devices Incorporated filed on Dec. 29, 2011, its annual report on Form 10-K for the fiscal year ended Sept. 30, 2011. Hein & Associates LLP, in Irvine, California, expressed substantial doubt about LOGIC Devices' ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and requires additional funds to maintain its operations. The Company reported a net loss of $1.1 million on $1.4 million of revenues for fiscal 2011, compared with a net loss of $1.1 million on $2.2 million of revenues for fiscal 2010. The Company's balance sheet at Sept. 30, 2011, showed $2.6 million in total assets, $618,000 in total liabilities, and stockholders' equity of $2.0 million. A copy of the Form 10-K is available for free at: http://is.gd/t8MH2Q Sunnyvale, Calif.-based LOGIC Devices Incorporated is an ISO 9001:2008 registered company that develops and markets high- performance, low power digital integrated circuits and integrated modules that perform high-density storage and signal/image processing functions. The Company's products enable video display, transport, editing, composition, special effects, and the high-performance, high-density storage of electronic information. The Company also provides solutions for digital filtering in television broadcast stations and image enhancement in medical diagnostic scanning and imaging equipment. MAYSVILLE INC: Court Affirms Order Dismissing Chapter 11 Case ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida has denied Maysville, Inc.'s Emergency Motion to Reconsider Order of Dismissal and to Reinstate Original Deadline to Post Confirmation Funds. As reported in the TCR on Nov. 23, 2011, in an order dated Oct. 31, 2011, the Hon. Laurel M. Isicoff ordered for the case dismissal because according to a supplemental order, the Court will dismiss the Debtor's case if the deposit of $2.1 million was not made by Oct. 27, 2011. According to the Debtor, although the buyer failed to deliver the funds required, this failure was due to uncertainty as to whether the secured creditor was entitled to make the Section 1111(b) election. The Debtor noted that on Nov. 9, the secured creditor purported to make the Section 1111(b) election to treat its secured claim as fully secured despite the Court's decision finding the claim for Section 506 purposes to be secured only to the extent of $15,200,000. The Court has shortened the time specified under the Plan and Disclosure Statement for the Debtor to cause the buyer of the Redondo stock to deposit the funds necessary to confirm the plan as written. On Oct. 21, the Court vacated the Oct. 18, order dismissing the case and reinstated the Debtor's case after the Debtor requested for a reconsideration of its order dismissing the Debtor's case. The Debtor explained that the Court on Oct. 17, orally directed the Debtor to submit a redlined Second Amended Disclosure Statement to the Court and all parties by 4:00 p.m., on Oct. 19. About Maysville, Inc. Maysville, Inc., is the record title holder of a multi parcel property in Miami-Dade County, Florida. The property consists of six apartment buildings with 133 apartment units. The property also includes 21 unsold units in the Platinum Condominium. The Debtor is owned and operated by its principals, Alex Guillermo Redondo, Aurora Brito de Redondo, Carmen Redondo, Jhosmar Redondo and Algemiro Redondo, Jr., who have owned and operated the property for 24 years. Maysville filed its second voluntary petition under Chapter 11 on Aug. 11, 2011, with the U.S. Bankruptcy Court for the Southern District of Florida (Miami) before the Hon. Laurel M. Isicoff. The bankruptcy case is Maysville, Inc., Case No. 11-32532. Jeffrey P. Bast, Esq., at Bast Amron LLP, in Miami, Florida -- jbast@bastamron.com -- serves as the Debtor's bankruptcy counsel. Jeffery J. Pardo, Esq., at Pardo Gainsburg P.L., in Miami, Florida, is the Debtor's special litigation counsel. The Debtor disclosed $17,590,927 in assets and $25,076,637 in liabilities. Deadline to file a complaint to determine dischargeability of certain debts is Nov. 14, 2011. Proofs of Claim are due by Dec. 12, 2011. In the first voluntary petition for bankruptcy (Bankr. S.D. Fla. Case No. 10-28244) which was filed on June 28, 2010, the Bankruptcy Court granted Mellon United National Bank n/k/a MUNB Loan Holdings, LLC ("Mellon") relief from the automatic stay to continue the foreclosure litigation. On Aug. 24, 2010, Mellon obtained a final summary judgment in the sum of $24,489,076 and a judgment of foreclosure was entered. The final judgment was later amended on May 3, 2011, to reflect a credit of $583,044.75 reducing the judgment to $23,906,031.62. On Jan. 28, 2011, the first Chapter 11 case was dismissed by the Court because the Debtor failed to timely file a confirmable plan. The order of dismissal precluded the Debtor from commencing a case for a six month period which expired on July 28, 2011. Mellon's foreclosure sale was scheduled to occur on Aug. 12, 2011. On Aug. 10, 2011, Mellon assigned its interest in its foreclosure judgment and the right to credit bid at the foreclosure sale to Fifteen Encore Platinum, LLC. MEDICAL INTERNATIONAL: PS Stephenson Raises Going Concern Doubt --------------------------------------------------------------- Medical International Technology, Inc., filed on Dec. 29, 2011, its annual report for the fiscal year ended Sept. 30, 2011. PS Stephenson & Co., P.C., in Wharton, Texas, expressed substantial doubt about Medical International Technology's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has a working capital deficiency. The Company reported a net loss of US$643,439 on US$437,378 of revenues for fiscal 2011, compared with a net loss of US$751,109 on US$510,893 of revenues for fiscal 2010. The Company's balance sheet at Sept. 30, 2011, showed US$1.0 million in total assets, US$1.6 million in total liabilities, and a stockholders' deficit of USU$632,439. A copy of the Form 10-Q is available for free at: http://is.gd/7YsmeA Montreal, Canada-based Medical International Technology, Inc., specializes in production, marketing and the sale of needle-free jet injector products designed for humans and animals, for single and mass injections. MF GLOBAL: L. Freeh Appointed as Trustee for Dec. 19 Debtors ------------------------------------------------------------ Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York approved the appointment of Louis J. Freeh as Chapter 11 trustee in the bankruptcy cases of MF Global Capital LLC, MF Global FX Clear LLC, and MF Global Market Services, LLC on December 27, 2011. Mr. Freeh currently serves as the Chapter 11 Trustee for MF Global Holdings Ltd. and MF Global Finance USA Inc.'s bankruptcy cases. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on December 19, 2011. Tracy Hope Davis, the U.S. Trustee for Region 2, filed with the Court a notice appointing Mr. Freeh as Chapter 11 Trustee in the New Debtors' bankruptcy cases consistent with the Court's Dec. 23, 2011 order directing the U.S. Trustee to appoint a Chapter 11 trustee in the New Debtors' Chapter 11 cases. Upon consultation with the counsel of the Chapter 11 Trustee, the Official Committee of Unsecured Creditors and JP Morgan Chase Bank N.A., the U.S. Trustee selected Mr. Freeh to serve as Chapter 11 trustee of the New Debtors. In a supplemental declaration, the Chapter 11 Trustee disclosed that he does not personally have any connection with any interested party in the New Debtors' Chapter 11 cases, except that: * the Chapter 11 Trustee has Verizon service in his home; and * the Chapter 11 Trustee's children maintain Verizon Wireless phone accounts. Moreover, Freeh Group International Solutions, LLC and Freeh Sporkin & Sullivan LLP have these connections in matters unrelated to the New Debtors' Chapter 11 cases: * Verizon provides landline phone services to FGIS and FSS; and * FedEx provides shipping services to FGIS and FSS. Mr. Freeh is founder and chairman of FGIS, and founder and senior managing partner of FSS. To ensure that as Chapter 11 Trustee he will remain disinterestedness, the Chapter 11 Trustee represents that FGIS and FSS agree that they will not represent any client other than him as Chapter 11 Trustee in connection with the New Debtors' bankruptcy cases. The Chapter 11 Trustee maintains that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Mr. Freeh provided notice of his acceptance of the office of chapter 11 trustee in the New Debtors' bankruptcy cases. About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/ -- is one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11- 15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. It is easily the largest bankruptcy filing so far this year. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on December 19, 2011. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. U.S. regulators are investigating about $633 million missing from MF Global customer accounts, a person briefed on the matter said Nov. 3, according to Bloomberg News. Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by MF Global Holdings and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MF GLOBAL: Sec. 341 meet of New Debtors Creditors Set for Jan. 26 ----------------------------------------------------------------- Tracy Hope Davis, the U.S. Trustee for Region 2, will convene a meeting of the creditors of MF Global Capital LLC, MF Global FX Clear and MF Global Market Services LLC on Thursday, January 26, 2012 at 3:00 p.m. Eastern Time. The location of the meeting is at Office of the U.S. Trustee at 80 Broad Street, 4th Floor, New York. This is the first meeting of creditors under Section 341(a) of the Bankruptcy Code. The meeting offers creditors a one-time opportunity to examine the Debtors' representative under oath about the Debtors' financial affairs and operations that would be of interest to the general body of creditors. Attendance by the Debtor's creditors at the meeting is welcome, but not required. About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/ -- is one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11- 15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. It is easily the largest bankruptcy filing so far this year. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on December 19, 2011. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. U.S. regulators are investigating about $633 million missing from MF Global customer accounts, a person briefed on the matter said Nov. 3, according to Bloomberg News. Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by MF Global Holdings and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MMRGLOBAL INC: Unregistered Sale of Stock Exceeds 5% Threshold -------------------------------------------------------------- MMRGlobal, Inc., is required to file a Form 8-K to report particular information related to unregistered sales of the Company's Common Stock, if the aggregate number of those shares sold since the filing of the Company's last periodic report is equal to or greater than 5% of the outstanding Common Stock. The Company's last report was filed on Nov. 14, 2011. On Dec. 27, 2011, the aggregate number of shares of Common Stock sold in unregistered transactions by the Company exceeded the 5% threshold. On Nov. 2, 2011, the Company granted 500,000 shares of Common Stock to a vendor at a price of $0.10 per share for services rendered in the amount of $50,000. On Nov. 16, 2011, and Dec. 7, 2011, the Company entered into two separate Convertible Promissory Notes with two unrelated third- parties for a principal amount of $170,000 and warrants to purchase 510,000 shares of the Company's Common Stock. The Convertible Promissory Notes mature on Nov. 30, 2012, and Dec. 31, 2012, and the Company may, at its own discretion, extend the maturity date for an additional six months. The Notes bear interest of 12% per annum payable in cash or shares of common stock or a combination of cash and shares of common stock. The decision whether to pay in cash, shares of common stock or combination of both shall be at the sole discretion of the Company. On Nov. 16, 2011, the Company granted a warrant to purchase 500,000 shares of Common Stock to Ivor Royston at a price of $0.06 per share for joining the Company's Board of Advisors. On Nov. 30, 2011, the Company granted 1,900,000 shares of common stock to a note holder who exercised a right to convert $57,000 and other consideration for a convertible promissory note. On Nov. 30, 2011, the Company granted an employee a warrant to purchase 100,000 shares of Common Stock at a price of $0.06 per share in exchange for services in the amount of $6,000. The warrant vested at commencement. On Dec. 5, 2011, the Company granted a third-party vendor in consideration of a portion of the services under a service agreement a warrant to purchase 4,000,000 shares of Common Stock with prices and vesting as follows: 1,000,000 at $0.06 upon completion of a transaction with the Company; 1,000,000 at $0.08 six months after the transaction; 1,000,000 at $0.10 twelve months after the transaction and the final 1,000,000 at $0.16 eighteen months after the transaction. On Dec. 19, 2011, the Company granted 1,250,000 shares of common stock to a vendor at a price of $0.08 per share in exchange for a reduction in accounts payable of $100,000. On Dec. 27, 2011, the Company granted: -- an employee an incentive stock option to purchase 100,000 shares of Common Stock at a price of $0.08 per share; -- an employee an incentive stock option to purchase 200,000 shares of Common Stock at a price of $0.08 per; -- an employee an incentive stock option to purchase 200,000 shares of Common Stock at a price of $0.08 per share; -- an employee an incentive stock option to purchase 200,000 shares of Common Stock at a price of $0.08 per share -- an employee an incentive stock option to purchase 50,000 shares of Common Stock at a price of $0.08 per share; -- a third-party consultant an incentive stock option to purchase 100,000 shares of Common Stock at a price of $0.08 per share; -- an employee an incentive stock option to purchase 100,000 shares of Common Stock at a price of $0.08 per share; -- an employee an incentive stock option to purchase 300,000 shares of Common Stock at a price of $0.08 per share; and -- a consultant an incentive stock option to purchase 1,000,000 shares of Common Stock at a price of $0.08 per share. On Dec. 28, 2011, the Company granted a third-party consultant a warrant to purchase 100,000 shares of Common Stock at a price of $0.08 per share in exchange for continuing to defer payment. The options vests annually over two years and expires ten years after the issuance date. About MMRGlobal Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. The Company reported a net loss of $17.9 million on $972,988 of revenues for 2010, compared with a net loss of $10.3 million on $619,249 of revenues for 2009. The Company also reported a net loss of $6.24 million on $1.08 million of total revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $16.01 million on $556,648 of total revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $2.13 million in total assets, $6.66 million in total liabilities and a $4.53 million total stockholders' deficit. As reported by the TCR on April 7, 2011, Rose, Snyder & Jacobs, in Encino, Calif., expressed substantial doubt about MMRGlobal's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2010, and 2009. MOHEGAN TRIBAL: Posts $111.8 Million Net Income in Fiscal 2011 -------------------------------------------------------------- Mohegan Tribal Gaming Authority filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting net income of $111.84 million on $1.41 billion of net revenues for the fiscal year ended Sept. 30, 2011, compared with net income of $7.45 million on $1.42 billion of net revenues during the previous fiscal year. The Company reported net income of $45.96 million on $373.45 million of net revenues for the three months ended Sept. 30, 2011, compared with a net loss of $26.91 million on $373.77 million of net revenues for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $2.20 billion in total assets, $2 billion in total liabilities and $198.72 million total capital. PricewaterhouseCoopers LLP, in Hartford, CT, noted in its report on the Authority's 2011 financial results that the Authority will have a significant amount of debt maturing in the next twelve months that raise substantial doubt about its ability to continue as a going concern. "We could not be more pleased with our earnings for the quarter," said Mitchell Grossinger Etess, chief executive officer of the Authority. "These results were quite impressive, particularly given the impact of Hurricane Irene and persisting economic concerns. The growth in Adjusted EBITDA and margin is extremely rewarding and demonstrates the commitment and dedication of our entire team. We are also pleased with the progress made in recent weeks toward finalizing our refinancing plan. Though we were not able to complete the plan during our first quarter of fiscal 2012 and, as a result, our auditors issued a 'going concern' opinion on our 2011 financial statements, we have obtained a waiver from our bank group addressing the opinion which we believe reflects the group's continued confidence in and support of the Authority and the Mohegan Tribe. I look forward to discussing our fourth quarter results in further detail after the holidays on our scheduled conference call to be held on Wednesday, January 4, 2012." A full-text copy of the Form 10-K is available for free at: http://is.gd/dpDZ42 About Mohegan Tribal Headquartered in Uncasville, Conn., Mohegan Tribal Gaming Authority conducts and regulates gaming activities on Tribal lands, which are federally recognized Indian tribe reservations in southeastern Connecticut. The Authority has noted that its Bank Credit Facility matures on March 9, 2012 and its 2002 Senior Subordinated Notes mature on April 1, 2012. In addition, a substantial portion of the Authority's remaining indebtedness matures over the following three fiscal years. The Authority believes that it will need to refinance all or part of its indebtedness at or prior to each maturity thereof in order to maintain sufficient resources for its operations. The Authority has engaged Blackstone Advisory Partners, L.P. to assist in its strategic planning relating to its debt maturities. * * * At the end of November 2010, Moody's Investors Service downgraded Mohegan Tribal Gaming Authority's Corporate Family and Probability of Default ratings to Caa2 from B3. All of MTGA's rated long-term debt was also lowered. The rating outlook is negative. The ratings downgrade reflects Moody's view that MTGA could find it difficult to refinance significant upcoming debt maturities without some impairment to bondholders given its high leverage -- debt/EBITDA is over 7 times -- limited near-term growth prospects for Mohegan Sun Casino, the likely continuation of weak consumer gaming demand trends in the Northeastern U.S., and the strong possibility of gaming in Massachusetts. The company's $675 million revolver ($527 million outstanding at Sept. 30, 2010) expires in March 2012 and its $250 million 8% senior subordinated notes mature in April 2012. Combined, these debt items account for about 50% of MTGA's total debt outstanding. MTGA has announced that it hired Blackstone Group to help deal with its capital structure issues, although no details have been made available regarding MTGA's options. Given the company's recently announced weak fiscal fourth quarter results along with the significant near- and long-term challenges previously mentioned, Moody's believes a restructuring that involves some impairment to bondholders will be considered. The negative ratings outlook reflects the relatively short time frame in which MTGA has to address what Moody's believes to be a significant capital structure issue. If MTGA is not able to refinance by March 2011 its $675 million revolver will be become current. The same holds true for the company's $250 million 8% senior subordinated notes to the extent these notes are not refinanced by April 1, 2011. MSR RESORT: Can Draw an Add'l $10-Mil. from DIP Lenders ------------------------------------------------------- On Dec. 15, 2011, the U.S. Bankruptcy Court for the Southern District of New York entered a Second Interim Order authorizing MSR Resort Golf Course LLC, et al, to obtain secured, superpriority postpetition financing of up to an additional amount of $10 million pending a final hearing on the proposed DIP financing, pursuant to the Original DIP Credit Agreement, dated as of March 21, 2011, among the DIP Facility Debtors, as Borrowers, MSR Gesort Golf Course, LLC, as administrative borrower, and a syndicate of lenders led by CNL DIP recovery Acquisition, LLC, successor to Paulson Real Estate Recovery Fund LP, and Five Mile Capital II CNL DIP Administrative Agent. A Second Final Hearing will be held within 45 days of the entry of this Second Interim Order to consider the entry of a Second Final Order, authorizing, on a final basis, the balance of the additional financing in an aggregate total amount of $15 million on a final basis. A copy of the Second Interim Order is available for free at: http://bankrupt.com/misc/msrresort.doc905.pdf The DIP Lenders have committed to provide up to $30 million in postpetition secured financing. As reported in the TCR on March 18, 2011, Paulson & Co. and Five Mile Capital Partners LLC were given interim approval on March 15, 2011, to provide $5 million in subordinate secured financing for MSR Resort Golf Course LLC and its affiliates' Chapter 11 reorganization. A copy of the DIP Financing Agreement is available for free at: http://bankrupt.com/misc/MSR_RESORT_dipfinancingpact.pdf About MSR Resort MSR Hotels & Resorts, formerly known as CNL Hotels & Resorts Inc., owns a portfolio of eight luxury hotels with over 5,500 guest rooms, including the Arizona Biltmore Resort & Spa in Phoenix, the Ritz-Carlton in Orlando, Fla., and Hawaii's Grand Wailea Resort Hotel & Spa in Maui. On Jan. 28, 2011, CNL-AB LLC acquired the equity interests in the portfolio through a foreclosure proceeding. CNL-AB LLC is a joint venture consisting of affiliates of Paulson & Co. Inc., a joint venture affiliated with Winthrop Realty Trust, and affiliates of Capital Trust, Inc. Morgan Stanley's CNL Hotels & Resorts Inc. owned the resorts before the Jan. 28 foreclosure. Following the acquisition, five of the resorts with mortgage debt scheduled to mature on Feb. 1, 2011, were sent to Chapter 11 bankruptcy by the Paulson and Winthrop joint venture affiliates. MSR Resort Golf Course LLC and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-10372) in Manhattan on Feb. 1, 2011. The resorts subject to the filings are Grand Wailea Resort and Spa, Arizona Biltmore Resort and Spa, La Quinta Resort and Club and PGA West, Doral Golf Resort and Spa, and Claremont Resort and Spa. James H.M. Sprayregen, P.C., Esq., Paul M. Basta, Esq., Edward O. Sassower, Esq., and Chad J. Husnick, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' bankruptcy counsel. Houlihan Lokey Capital, Inc., is the Debtors' financial advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The five resorts had $2.2 billion in assets and $1.9 billion in debt as of Nov. 30, 2010, according to court filings. In its schedules, debtor MSR Resort disclosed $59,399,666 in total assets and $1,013,213,968 in total liabilities. The resorts have agreement with lenders allowing the companies to remain in Chapter 11 at least until September 2012. Donald Trump has a contract to buy the Doral Golf Resort and Spa in Miami for $170 million. There will be an auction to learn if there is a better bid. The resorts have said that Trump's offer price implies a value for all the properties "significantly" exceeding the $1.5 billion in debt. MUSCLEPHARM CORP: Amends 126.4 Million Common Shares Offering ------------------------------------------------------------- MusclePharm Corporation filed with the U.S. Securities and Exchange Commission amendment no. 1 to Form S-1 registration statement relating to the resale of 126,400,000 shares of the Company's common stock, par value $0.001 per share, by the selling security holders, including (i) 12,000,000 Put Shares that the Company will put to Southridge pursuant to the Equity Purchase Agreement, (ii) 82,000,000 Purchase Shares, and (iii) 32,400,000 Warrant Shares. The Equity Purchase Agreement provides that Southridge is committed, at the Company's sole option, to purchase up to $10,000,000 of the Company's common stock. The Company may draw on the facility from time to time, as and when the Company determines appropriate in accordance with the terms and conditions of the Equity Purchase Agreement. Southridge is an "underwriter" within the meaning of the Securities Act of 1933, as amended, in connection with the resale of the Put Shares under the Equity Purchase Agreement. No other underwriter or person has been engaged to facilitate the sale of the Put Shares in this offering. This offering will terminate 24 months after the registration statement to which this prospectus is made a part is declared effective by the SEC. Southridge will pay the Company 94% of the average of the lowest closing bid price of the Company's common stock reported by Bloomberg, LP, in any two trading days, consecutive or inconsecutive, of the five consecutive trading day period commencing the date a put notice is delivered. The Company will not receive any proceeds from the sale of the Shares. However, the Company will receive proceeds from the sale of its Put Shares under the Equity Purchase Agreement. The proceeds will be used for working capital or general corporate purposes. The Company will bear all costs associated with the registration of the Shares under the Securities Act. The Company's common stock is quoted on the OTCBB under the symbol "MSLP.OB." The Shares registered hereunder are being offered for sale by the Selling Security Holders at prices established on the OTCBB during the term of this offering. On Dec. 27, 2011, the closing bid price of the Company's common stock was $0.01 per share. These prices will fluctuate based on the demand for the Company's common stock. A full-text copy of the amended prospectus is available at: http://is.gd/AJV17l About MusclePharm Headquartered in Denver, Colorado, MusclePharm Corporation (OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life- style company that develops and manufactures a full line of National Science Foundation approved nutritional supplements that are 100% free of banned substances. MusclePharm is sold in over 120 countries and available in over 5,000 U.S. retail outlets, including GNC and Vitamin Shoppe. MusclePharm products are also sold in over 100 online stores, including bodybuilding.com, Amazon.com and Vitacost.com. Berman & Company, P.A., in Boca Raton, Florida, expressed substantial doubt about MusclePharm's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company had a net loss of $19.6 million and net cash used in operations of $3.8 million for the the year ended Dec. 31, 2010; and a working capital deficit and stockholders' deficit of $2.8 million and $1.7 million, respectively, at Dec. 31, 2010. The Company also reported a net loss of $12.33 million on $13.07 million of sales for the nine months ended Sept. 30, 2011, compared with a net loss of $8.67 million on $3.13 million of sales for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $5.71 million in total assets, $10.86 million in total liabilities, and a $5.14 million total stockholders' deficit. NEBRASKA BOOK: Court OKs DIP Changes Waiving Nov. EBITDA Provision ------------------------------------------------------------------ Effective December 28, 2011, NBC Acquisition Corp., a Delaware corporation, Nebraska Book Company, Inc., a wholly-owned subsidiary of the Company, and NBC Holdings Corp., the Company?s parent company entered into a Second Amendment to their Secured Superpriority Debtor-In-Possession Credit Agreement, dated as of June 30, 2011, as amended, with the lenders party from time to time thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent. The Second Amendment, among other things, (i) changes the applicable margin with respect to term loans from 5.00% per annum to 6.50% per annum in the case of base rate loans and from 6.00% per annum to 7.50% per annum in the case of Eurodollar Loans, (ii) changes the applicable margin with respect to revolving credit loans from 2.50% per annum to 4.00% per annum in the case of base rate loans and from 3.50% per annum to 5.00% per annum in the case of Eurodollar Loans, (iii) amends the minimum liquidity and minimum Consolidated EBITDA (as defined in the DIP Credit Agreement) covenants and (iv) waives any Default or Event of Default (as defined in the DIP Credit Agreement) and any consequences from such Default or Event of Default which may have resulted from any failure to comply with the Consolidated EBITDA covenant for the period ending on November 30, 2011. A copy of the Second Amendment is available for free at: http://is.gd/OnKqwb As reported in the Troubled Company Report on Dec. 28, 2011, Nebraska Book entered into a second amendment to its Secured Superpriority Debtor-In-Possession Credit Agreement, dated as of July 30, 2011, with JPMorgan Chase Bank, N.A., as administrative agent and collateral agent to the DIP lenders. The Debtors also agreed to pay an amendment fee to the DIP Lenders, and an arrangement fee to, and reimburse the related fees and expenses of, the DIP Agent. The DIP Facility provides the Debtors with access to a $75 million revolving line of credit and a $125 million term loan, and requires the Debtors to, among other things, comply with certain financial covenants. As of Sept. 30, 2011, the Debtors have drawn the entire amount of the DIP Term Loan, have drawn $0 on the DIP Revolver, and have roughly $120 million in cash on their balance sheet. Todd R. Snyder, Senior Managing Director and Co-Head of the Restructuring and Reorganization group at Rothschild Inc., the Debtors' financial advisor and investment banker, said that in October and November 2011 the Debtors undertook a comprehensive analysis of each of their businesses in light of their Fall 2011 back-to-school rush results, which, among other things, demonstrated that the off-campus segment financial results did not meet the Debtors' expectations. The Debtors analyzed each on- and off-campus store to determine the long-term profitability of each location and construct new financial projections. As a result of these revised projections, the Debtors anticipate being unable to comply with the minimum consolidated EBITDA provisions during the term of the DIP Facility. The Debtors promptly reported to the DIP Agent the anticipated November EBITDA default and the likelihood of potential future covenant breaches, and apprised other stakeholders of the need for waiver of the Anticipated November EBITDA Default and an amendment to the Minimum Cumulative EBITDA Covenant. Following a week of intense negotiations, the Debtors and the DIP Agent, in consultation with Rothschild and both parties' other advisors, reached a tentative agreement on modified terms for the DIP Agreement and certain fees the Debtors would pay to the DIP Agent -- Arrangement Fee -- and DIP Lenders -- Amendment Fee -- in exchange therefore. On Dec. 13, 2011, to explain the Anticipated November EBITDA Default and need for covenant relief, as well as to present the terms of the Second Amendment negotiated with the DIP Agent, the Debtors and their advisors held separate calls with DIP Lenders who either (a) have signed confidentiality agreements and received material non-public information on the Debtors' financial performance and forecasts, or (b) are not party to confidentiality agreements and do not wish to receive material non-public information or forward-looking information. After briefing the two DIP Lender groups on the need for the Second Amendment, the Debtors posted public and private information, tailored for each group of DIP Lenders, to an Intralinks datasite and provided the DIP Lenders seven days to analyze the Second Amendment and either consent or reject the terms thereof. As of Dec. 20, 2011, the DIP Agent had received sufficient approval from the DIP Lenders to approve the Second Amendment. Pursuant to the Second Amendment, the DIP Lenders agreed to waive the minimum consolidated EBITDA requirement for November. The Debtors covenant with the DIP Lenders not to permit minimum consolidated EBITDA to fall below: November 2011 Waived December 2011 $26,000,000 January 2012 $50,000,000 February 2012 $46,000,000 March 2012 $44,000,000 April 2012 $41,000,000 May 2012 $41,000,000 June 2012 $41,000,000 Mr. Snyder said that, absent the waiver and covenant relief provided by the Second Amendment, the Debtors will be unable to meet the Minimum Cumulative EBITDA Covenant on a going-forward basis, allowing the DIP Lenders to call and Event of Default and terminating their obligations to provide the Debtors with access to the DIP Facility. In that event, the Debtors would either face likely dramatic cash shortfalls or be forced to refinance the DIP Facility, while refinancing is a theoretical possibility, the cost and risk of such refinancing would far outweigh the cost and risk of the Second Amendment. The Debtors entered into immaterial amendments to the DIP Agreement shortly after closing on the DIP Facility. They were not required to seek Court approval of the First Amendment. 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 has been unable to confirm a pre-packaged Chapter 11 plan that would have swapped some of the existing debt for new debt, cash and the new stock, due to an inability to secure $250 million in exit financing. The company's exclusive period for proposing a plan is set to expire on Jan. 23. NEW LEAF BRANDS: Reports $665,000 Net Loss in 2011 Second Quarter ----------------------------------------------------------------- New Leaf Brands, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $665,063 on $658,527 of sales for the three months ended June 30, 2011, compared with a net loss of $3.0 million on $1.7 million of sales for the same period of 2010. For the six months ended June 30, 2011, the Company reported a net loss of $2.3 million on $1.3 million of sales, compared with a net loss of $5.6 million on $2.6 million of sales for the corresponding period in 2010. As reported by the TCR on June 2, 2011, Eisner Amper LLP, in New York, N.Y., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2010. The independent auditors noted that the Company has suffered recurring losses from operations, has a working capital deficiency, was not in compliance with certain financial covenants related to debt agreements, and has a significant amount of debt maturing in 2011. A copy of the Form 10-Q is available for free at: http://is.gd/yNLvQb Old Tappan, New Jersey-based New Leaf Brands, Inc., develops, markets and distributes healthy and functional ready-to-drink ("RTD") beverages. The Company distributes its products through independent distributors both internationally and domestically. NEXSTAR BROADCASTING: Central Square Holds 5% of Class A Shares --------------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Central Square Management LLC and Kelly Cardwell disclosed that, as of Sept. 2, 2011, they beneficially own 770,871 shares of Class A common stock of Nexstar Broadcasting Group, Inc., representing 5.01% of the shares outstanding. A full-text copy of the filing is available at http://is.gd/YSos6L About Nexstar Broadcasting Group Irving, Texas-based Nexstar Broadcasting Group Inc. currently owns, operates, programs or provides sales and other services to 62 television stations in 34 markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama, New York, Rhode Island, Utah and Florida. Nexstar's television station group includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW and reaches approximately 13 million viewers or approximately 11.5% of all U.S. television households. The Company reported a net loss of $1.81 million on $313.35 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $12.61 million on $251.97 million of net revenue during the prior year. The Company reported a net loss of $15.15 million on $220.28 million of net revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $16.08 million on $216.29 million of net revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $582.67 million in total assets, $769.64 million in total liabilities and a $186.96 million total stockholders' deficit. * * * As reported by the Troubled Company Reporter on Aug. 30, 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Nexstar Broadcasting Group to 'B' from 'B-'. The rating outlook is stable. "The 'B' corporate credit rating reflects S&P's expectation that Nexstar's core ad revenue will continue growing modestly in 2010 and 2011," said Standard & Poor's credit analyst Deborah Kinzer. The EBITDA growth resulting from the rebound in core advertising, combined with political ad revenue from the 2010 midterm elections, should, in S&P's view, enable Nexstar to reduce its leverage significantly by the end of the year. NEXTMART INC: Carla Zhou Resigns as Board Member and CFO -------------------------------------------------------- Nextmart, Inc., on Dec. 21, 2011, accepted the voluntary resignation of Ms. Carla Zhou as member of the Board of Directors and Chief Finance Officer of the Company. Ms. Zhou was not part of any committee of the Board of Directors, and did not resign over disagreements with the Company on any matter relating to the Company's operations, polices or practices.. On that same date, the Board of Directors of the Company appointed Ms. Windy Liu (age 29 ) to serve as member of the Board of Directors, and Mr. Addie Han (age 33) to serve as Chief Finance Officer of the Company. Ms. Addie Han has extensive experience in corporate financial management. From March 2008 to present, she acts as the finance controller of Beijing Bright Magic Trading Limited, a famous jewelry distributor in China. From January 2003 to March 2008, she has served as finance manager of the Ploy Pailin Jewelry Limited., a China based company. Mr. Windy Liu has acted as a business consultant of Ms. Yang Lan, our largest shareholder, since June 2011. From June 2009 to June 2011, Ms. Liu served as the business manager of Sun Media Group Limited, a PRC based company controlled by Ms. Yang Lan. From 2005 to June 2008, Ms. Liu served as the operating manager of BLP Suzhou Limited. No family relationship exists among Ms. Windy Liu, Ms. Addie Han and any of the Company's other directors or executive officers. The Company and Mr. Han have not reached an agreement regarding his compensation. About NextMart Inc. Beijing, PRC-based NextMart, Inc., was originally incorporated under the laws of Minnesota in 1972 and was previously known as SE Global Equity. In May 2007, the Company reincorporated into the State of Delaware and changed its name to NextMart, Inc. NextMart's planned business operations for 2011 will consist of 1) the sale of marketing solutions through art events and art media marketing channels, and 2) the design and marketing of art-themed products lines for existing luxury and high-end goods and services, and art themed real estate developments. The Company's balance sheet at June 30, 2011, showed $1.39 million in total assets, $3.16 million in total liabilities, and a $1.77 million total stockholders' deficit. As reported in the Troubled Company Reporter on Jan. 19, 2011, Bernstein & Pinchuk LLP, in New York, expressed substantial doubt about NextMart, Inc.'s ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has incurred significant losses from operations for the two years ended Sept. 30, 2010, and has a working capital deficiency. Bankruptcy Warning The Company said it cannot provide assurances that it will be successful in its efforts to enhance its liquidity. If the Company is unable to raise sufficient funds to meet its cash requirements, it may be required to curtail, suspend, or discontinue its current or proposed operations. The Company's inability to raise additional funds may forced the Company to restructure, file for bankruptcy, sell assets or cease operations, any of which could adversely impact its business and business strategy, and the value of its capital stock. Due to the current price of the Company's common stock, any common stock based financing will create significant dilution to the then existing stockholders. In addition, in order to conserve capital and to provide incentives for the Company's employees and service providers, it is conceivable that the Company may issue stock for services in the future which also may create significant dilution to existing stockholders. NEXTMART INC: Delays Form 10-K for Fiscal 2011 ---------------------------------------------- Nextmart, Inc., notified the U.S. Securities and Exchange Commission that it will be late in filing its Annual Report on Form 10-K for the period ended Sept. 30, 2011. The Company said that due to events unforeseen by the Company, it is unable to complete its Annual Report without an unreasonable effort and expense. About NextMart Inc. Beijing, PRC-based NextMart, Inc., was originally incorporated under the laws of Minnesota in 1972 and was previously known as SE Global Equity. In May 2007, the Company reincorporated into the State of Delaware and changed its name to NextMart, Inc. NextMart's planned business operations for 2011 will consist of 1) the sale of marketing solutions through art events and art media marketing channels, and 2) the design and marketing of art-themed products lines for existing luxury and high-end goods and services, and art themed real estate developments. The Company's balance sheet at June 30, 2011, showed $1.39 million in total assets, $3.16 million in total liabilities, and a $1.77 million total stockholders' deficit. As reported in the Troubled Company Reporter on Jan. 19, 2011, Bernstein & Pinchuk LLP, in New York, expressed substantial doubt about NextMart, Inc.'s ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has incurred significant losses from operations for the two years ended Sept. 30, 2010, and has a working capital deficiency. Bankruptcy Warning The Company said it cannot provide assurances that it will be successful in its efforts to enhance its liquidity. If the Company is unable to raise sufficient funds to meet its cash requirements, it may be required to curtail, suspend, or discontinue its current or proposed operations. The Company's inability to raise additional funds may forced the Company to restructure, file for bankruptcy, sell assets or cease operations, any of which could adversely impact its business and business strategy, and the value of its capital stock. Due to the current price of the Company's common stock, any common stock based financing will create significant dilution to the then existing stockholders. In addition, in order to conserve capital and to provide incentives for the Company's employees and service providers, it is conceivable that the Company may issue stock for services in the future which also may create significant dilution to existing stockholders. NORD RESOURCES: Obtains Permit to Build New Leaching Pad -------------------------------------------------------- Nord Resources Corporation has received notification from the Arizona Department of Environmental Quality that it has granted a significant amendment to the Aquifer Protection Permit previously provided to the company. Receipt of the Permit is subject to fulfilling certain standard conditions, in particular that Nord makes payments to the ADEQ of all fees for the application review and that the company submits an updated Financial Assurance Mechanism for an additional $575,000. The company plans to finance this as part of the funding to build the new leaching pad. "This is an important step forward for Nord," said Wayne Morrison, Chief Executive and Chief Financial Officer. "With the ADEQ's decision in hand, we can now move forward with the construction of the new leaching pad, subject to the completion of financing and the satisfaction of the permitting conditions." "Moving ahead with the construction of the new leaching pad will also enable us to resume the mining of new ore in 2012 at the Johnson Camp Mine. In the meantime, we are continuing our leaching and production of copper from the materials previously placed on our existing pads," Mr. Morrison said. As previously announced, construction of a new pad, which will be approximately twice the size of any of the three existing pads, will require an estimated capital investment of approximately $18 million. "With respect to a financing transaction, we are continuing active discussions with various parties. While we believe that we will be successful in obtaining the capital required, the timing and outcome of our efforts cannot be guaranteed," Mr. Morrison said. About Nord Resources Based in Tuczon, Arizona, Nord Resources Corporation (TSX:NRD/OTCBB:NRDS.OB) -- http://www.nordresources.com/-- is a copper mining company whose primary asset is the Johnson Camp Mine, located approximately 65 miles east of Tucson, Arizona. Nord commenced mining new ore on February 1, 2009. Nedbank, the Company's senior lender, has declined to extend the forbearance agreement with respect to the scheduled principal and interest payment in the approximate amount of $2,150,000 that was due on March 31, 2010 under the Company's $25,000,000 secured term-loan credit facility with Nedbank. Nedbank Capital has also declined to extend the forbearance agreement regarding the Company's failure to make the payment of $697,869 due on April 6, 2010 under the Copper Hedge Agreement between the parties. Both forbearance agreements expired at midnight on May 13, 2010. The Company is now in default of its obligations under the Credit Agreement and the Copper Hedge Agreement with Nedbank. On June 2, 2010, Nord Resources appointed FTI Consulting to advise on refinancing structures and strategic alternatives. As reported by the TCR on April 4, 2011, Mayer Hoffman McCann P.C., in Phoenix, Arizona, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted as of Dec. 31, 2010, and 2009, the Company reported a deficit in net working capital of $39,929,666 and $7,652,818, respectively. The Company's significant historical operating losses, lack of liquidity, and inability to make the requisite principal and interest payments due under the terms of the Company's credit agreement with its senior lender raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. The Company reported a net loss of $21.20 million on $28.64 million of net sales for the year ended Dec. 31, 2010, compared with net income of $392,438 on $19.91 million of net sales during the prior year. The Company also reported a net loss of $7.08 million on $11.98 million of net sales for the nine months ended Sept. 30, 2011, compared with a net loss of $10.08 million on $22.60 million of net sales for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $57.81 million in total assets, $62.52 million in total liabilities and a $4.70 million in total stockholders' deficit. NORTHCORE TECHNOLOGIES: Enables HSE Sourcing Pilot -------------------------------------------------- Northcore Technologies Inc. announced that its technology platform had been successfully deployed for the Irish Government Health Services Executive's initial online acquisition pilot. Northcore had worked closely with staff from the HSE to configure Northcore's core strategic sourcing product, Asset Buyer, as required to support an initial pilot engagement. The platform was used to source and purchase a large volume of health care supplies for multiple regions. A complete multi-phased sourcing initiative was performed, including multiple request for quotation elements and a final stage reverse auction. This event was the culmination of a focused effort on the part of both the HSE and Northcore teams. The HSE is the largest purchaser in the state, spending in the region of EUR4billion annually on a diverse range of goods, services and works projects. A comprehensive review of the process and the resulting benefits will be forthcoming through a disclosure by both parties. Companies interested in effective software solutions should contact Northcore at 416-640-0400 or 1-888-287-7467, extension 395 or via email at Sales@northcore.com. About Northcore Toronto, Ontario-based Northcore Technologies Inc. (TSX: NTI; OTC BB: NTLNF) -- http://www.northcore.com/-- provides a Working Capital Engine(TM) that helps organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to a growing number of customers in a variety of sectors including financial services, manufacturing, oil and gas and government. Northcore owns 50% of GE Asset Manager, LLC, a joint business venture with GE. Together, the companies work with leading organizations around the world to help them liberate more capital value from their assets. The Company also reported a net loss and comprehensive loss of C$3.27 million on C$573,000 of revenue for the nine months ended Sept. 30, 2011, compared with a net loss and comprehensive loss of C$2.35 million on C$406,000 of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed C$1.91 million in total assets, C$1.16 million in total liabilities, and C$747,000 in total shareholders' equity. Certain adverse conditions and events cast substantial doubt upon the ability of the Company to continue as a going concern, the Company said in the filing. "The Company has not yet realized profitable operations and has relied on non-operational sources of financing to fund operations." NORTHCORE TECHNOLOGIES: Positioned to Exit Fiscal 2011 Debt Free ---------------------------------------------------------------- Northcore Technologies Inc. provided a year-end update on recent activities. The Company said that over the past six month period it has implemented significant changes that have yielded substantial incremental progress in all core attributes of the Company. The areas of focus have been definition and internalization of a new strategic vision, delivery of continuous sequential improvements to the Company balance sheet and securing adequate funding to execute the evolving plan. Some of the important achievements during this period were: * The execution of major changes to the Company's Board of Directors and management team, including the appointment of Amit Monga to the role of Chief Executive Officer; * The formation of a dedicated Social Commerce Group to focus on new business acquisition in this fast growing area; * The receipt of over $2 million in proceeds from the exercise of warrants; * Identification of a series of high growth opportunities for the Northcore Intellectual Property portfolio; * The launch of its first Social Commerce client and group purchase platform; * The re-launch of the Northcore corporate Web presence including major additions related to Intellectual Property and Social Commerce; * A series of new partnerships, agreements, and customer renewals; * New progress in the Public Sector domain with an award of Vendor of Record status by the Ontario Government and an agreement to provide the technology for the Irish Government Health Service Executive sourcing pilot; * The formation of Northcore Labs to target the creation and acquisition of Intellectual Property; * The acquisition of Discount This asset base, inclusive of unique Intellectual Property; * The opening of a U.S. based sales and deployment office in Naples, Florida; and * The extinguishment of all non-operational debt from the Company. "As fiscal 2011 draws to a close, I look back on my first six months at Northcore with a sense of pride in our accomplishments," said Amit Monga, CEO of Northcore Technologies. "We have been able to define a solid strategic vision centred around Enterprise Software, Social Commerce initiatives and Intellectual Property. We have now made important progress in all three areas. The company is positioned to exit the year debt free, with consecutive improvements to the balance sheet and in recent receipt of $900,000 of additional funding. I look forward to 2012 with optimism, enthusiasm and the strong belief that Northcore and our shareholders will be rewarded for their efforts and patience." About Northcore Toronto, Ontario-based Northcore Technologies Inc. (TSX: NTI; OTC BB: NTLNF) -- http://www.northcore.com/-- provides a Working Capital Engine(TM) that helps organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to a growing number of customers in a variety of sectors including financial services, manufacturing, oil and gas and government. Northcore owns 50% of GE Asset Manager, LLC, a joint business venture with GE. Together, the companies work with leading organizations around the world to help them liberate more capital value from their assets. The Company also reported a net loss and comprehensive loss of C$3.27 million on C$573,000 of revenue for the nine months ended Sept. 30, 2011, compared with a net loss and comprehensive loss of C$2.35 million on C$406,000 of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed C$1.91 million in total assets, C$1.16 million in total liabilities, and C$747,000 in total shareholders' equity. Certain adverse conditions and events cast substantial doubt upon the ability of the Company to continue as a going concern, the Company said in the filing. "The Company has not yet realized profitable operations and has relied on non-operational sources of financing to fund operations." NUTRITION 21: Second Amended Joint Chapter 11 Plan Confirmed ------------------------------------------------------------ BankruptcyData.com reports that the U.S. Bankruptcy Court confirmed Nutrition 21's the Second Amended Joint Chapter 11 Plan, pursuant to which proceeds from the sale of substantially all Company assets will be distributed to satisfy the administrative expenses of the Debtors' estates and the claims of the Company's and its creditors, with any remaining proceeds to be used to satisfy amounts owing to holders of the Company's Series J 8% Convertible Preferred Stock. In addition, all 17,750 outstanding shares of the Series J Preferred Stock will be cancelled, with holders of the Series J Preferred Stock receiving liquidating trust interests; all 254,568,723 outstanding shares of the Company's common stock will be cancelled, causing such shares to be null, void and worthless and the Company will be wound down and dissolved. The Plan provides that no distributions will be made in respect of the Company's common stock. When it filed for bankruptcy, the Company entered into a Plan Support Agreement, dated as of Aug. 26, 2011, with holders of roughly 90% of the Company's outstanding Series J Preferred Stock. The holders of Series J Preferred Stock that are parties to the Plan Support Agreement have agreed, subject to certain conditions, to vote in favor of a plan of reorganization to be proposed by the Company in respect of the Bankruptcy Case, so long as that plan is consistent with the term sheet attached to the Plan Support Agreement setting forth material terms of a potential plan of reorganization. The Plan Term Sheet generally contemplates that the Debtors' assets will be sold or liquidated and distributed to holders of claims and equity interests in accordance with the statutory distribution and priority scheme established by the Bankruptcy Code. The Plan Term Sheet further contemplates that holders of the Company's common stock will receive interests in a liquidating trust entitling such holders to distributions only after holders of the Series J Preferred Stock have been paid in full. The Company believes that cash distributions on account of the Company's common stock are unlikely. On Nov. 1, 2011, the Company completed the auction of substantially all of its assets pursuant to the Court-approved bidding procedures. The Company selected N21 Acquisition Holding, LLC, as having submitted the highest and best bid at the Auction. Accordingly, the Company, Nutrition 21, LLC, and the Purchaser entered into an Amended and Restated Asset Purchase and Sale Agreement, dated as of Nov. 1, 2011, amending and restating the Original Asset Sale Agreement. The Amended Asset Sale Agreement provides that the Purchaser will purchase substantially all of the assets of the Debtors under section 363 of the Bankruptcy Code and will assume certain of the Debtors' obligations associated with the purchased assets. Pursuant to the terms of the Amended Asset Sale Agreement, the purchase price is $7,449,008. The purchase price remains subject to potential post-closing adjustment, as set forth in the Amended Asset Sale Agreement. At a hearing on Nov. 3, 2011, the Bankruptcy Court approved the Sale, but reserved a decision on the assumption and assignment by N21 LLC of a License and Supply Agreement between Probioferm, LLC, Probiohealth, LLC, and N21 LLC dated as of Aug. 6, 2009 (as amended from time to time). About Nutrition 21 Purchase, N.Y.-based Nutrition 21, Inc. -- http://www.nutrition21.com/-- is a nutritional bioscience company that primarily develops and markets raw materials, formulations, compounds, blends and bulk and other materials to third-party non- end users to be further fabricated, blended or packaged for ultimate sales to end-users as nutritional supplements or otherwise. The Company holds more than 30 patents for nutrition products and their uses. Nutrition 21 and its debtor-affiliates filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Lead Case No. 11-23712) on Aug. 26, 2011. Michael Friedman, Esq., and Keith N. Sambur, Esq., at Richards Kibbe & Orbe LLP, serve as the Debtors' counsel. ONYX SERVICE: Posts $1.4 Million Net Loss in Oct. 31 Quarter ------------------------------------------------------------ Onyx Services & Solutions, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.4 million on $2,142 of sales for the three months ended Oct. 31, 2011, compared with a net loss of $17,830 on $6,311 of sales for the three months ended Oct. 31, 2010. The Company's balance sheet at Oct. 31, 2011, showed $2.2 million in total assets, $481,923 in total liabilities, and stockholders' equity of $1.7 million. M&K CPAs, PLLC, in Houston, Tex., expressed substantial doubt about Onyx Services & Solutions' ability to continue as a going concern, following the Company's results for the fiscal year ended July 31, 2011. The independent auditors noted that the Company has suffered net losses from operations. A copy of the Form 10-Q is available for free at: http://is.gd/NFfpbs Greenwood Village, Colo.-based Onyx Service & Solutions, Inc., is currently a provider of both privately owned and company owned automatic teller machines (ATM). The Company receives revenues from the collection of the surcharge revenues and inter-exchange revenues. ODYSSEY (IX) DP: Sec. 341 Creditors' Meeting Set for Jan. 18 ------------------------------------------------------------ The U.S. Trustee for Middle District of Florida will convene a meeting of creditors pursuant to 11 U.S.C. Sec. 341 in the bankruptcy case of Odyssey (IX) DP I, LLC, dba Ocean Breeze Plaza, on Jan. 18, 2012, at 11:30 a.m. at Tampa, Florida (861) - Room 100-B, Timberlake Annex, 501 E. Polk Street. The last day to oppose discharge or dischargeability is March 19, 2012. Proofs of claim are due in the case by Feb. 29, 2012. Lakeland, Florida-based Odyssey (IX) DP I LLC, owns the Ocean Breeze Plaza, a shopping center in Jensen Beach Florida. Odyssey (IX) DP I filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-22952) on Dec. 16, 2011, after its lender, U.S. Bank N.A. declared a default on a $16 million construction loan. Judge Catherine Peek McEwen presides over the case. Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser PA, in Tampa, Florida, serves as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Robert Madden, president of OC DIP LLC, the Debtor's manager. Affiliates that previously filed separate Chapter 11 petitions are Century/AG - Avondale LLC, Odyssey Properties III LLC, Century (III) DP III LLC, Odyssey (III) DP III LLC, Odyssey (VI) Commercial DP I LLC, Odyssey (III) DP IX LLC, Odyssey (III) DP III LLC, and Odyssey DP III LLC. ODYSSEY (IX) DP: Hires Stichter Riedel as Bankruptcy Counsel ------------------------------------------------------------ Odyssey (IX) DP I LLC seeks Bankruptcy Court permission to employ Stichter, Riedel, Blain & Prosser P.A., as bankruptcy counsel. Edward J. Peterson, Esq., an attorney at the firm, disclosed that Stichter Riedel received $200,000 from the Debtor on account of prepetition services and as retainer for postpetition services. Mr. Peterson attests that neither the firm nor its attorneys has any connection with non-insider creditors of the Debtor, other parties-in-interest, or their attorneys, and neither Stichter Riedel nor its attorneys represent any interest adverse to the Debtor or to the estate with respect to the matters upon which it is to be employed by the Debtor. About Odyssey (IX) DP I Lakeland, Florida-based Odyssey (IX) DP I LLC, owns the Ocean Breeze Plaza, a shopping center in Jensen Beach Florida. Odyssey (IX) DP I filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-22952) on Dec. 16, 2011, after its lender, U.S. Bank N.A. declared a default on a $16 million construction loan. Judge Catherine Peek McEwen presides over the case. Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser PA, in Tampa, Florida, serves as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Robert Madden, president of OC DIP LLC, the Debtor's manager. The Debtor's largest creditor, U.S. Bank N.A., is represented by Donald Kirk, Esq., and Scott Underwood, Esq., at Fowler White Boggs P.A. Affiliates that previously filed separate Chapter 11 petitions are Century/AG - Avondale LLC, Odyssey Properties III LLC, Century (III) DP III LLC, Odyssey (III) DP III LLC, Odyssey (VI) Commercial DP I LLC, Odyssey (III) DP IX LLC, Odyssey (III) DP III LLC, and Odyssey DP III LLC. ODYSSEY (IX) DP: Taps Bill Maloney Consulting as CRO ---------------------------------------------------- Odyssey (IX) DP I LLC is seeking Bankruptcy Court authority to employ William Maloney and Bill Maloney Consulting as chief restructuring officer. The Debtor said Mr. Maloney is "absolutely essential" to the Debtor's reorganization efforts. Mr. Maloney currently serves as vice president for planning for Odyssey Entities LLC, a related entity. In addition, Mr. Maloney has served as restructuring officer for Odyssey Properties III LLC and other affiliated entities that filed for bankruptcy. Mr. Maloney charges $325 per hour for his services. The Debtor won't be responsible for any health or medical benefits for Mr. Maloney. Mr. Maloney may be reached at: BILL MALONEY CONSULTING 200 2nd Ave. S. #463 St. Petersburg, FL 33701 Tel: 727-215-4136 Fax: 813-200-3321 About Odyssey (IX) DP I Lakeland, Florida-based Odyssey (IX) DP I LLC, owns the Ocean Breeze Plaza, a shopping center in Jensen Beach Florida. Odyssey (IX) DP I filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-22952) on Dec. 16, 2011, after its lender, U.S. Bank N.A. declared a default on a $16 million construction loan. Judge Catherine Peek McEwen presides over the case. Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser PA, in Tampa, Florida, serves as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Robert Madden, president of OC DIP LLC, the Debtor's manager. The Debtor's largest creditor, U.S. Bank N.A., is represented by Donald Kirk, Esq., and Scott Underwood, Esq., at Fowler White Boggs P.A. Affiliates that previously filed separate Chapter 11 petitions are Century/AG - Avondale LLC, Odyssey Properties III LLC, Century (III) DP III LLC, Odyssey (III) DP III LLC, Odyssey (VI) Commercial DP I LLC, Odyssey (III) DP IX LLC, Odyssey (III) DP III LLC, and Odyssey DP III LLC. ODYSSEY (IX) DP: Seeks Cash Use, Mediation for U.S. Bank Claims --------------------------------------------------------------- Odyssey (IX) DP I LLC seeks Bankruptcy Court authority to use cash collateral securing its obligations to U.S. Bank N.A. under a prepetition construction loan. As of the bankruptcy filing date, the Bank is owed roughly $15.83 million. The Debtor needs access to cash collateral to fund operating expenses and administration of the Chapter 11 case. The Debtor said the bank may assert a lien on the rents and leases at the Debtor's shopping center. The Debtor proposes to grant adequate protection liens to U.S. Bank. Odyssey (IX) DP I also asks the Court to submit to mediation all disputes against U.S. Bank and appoint Jeffrey Warren as mediator. The parties have been engaged in good faith settlement talks and the Debtor believes mediation is the next logical step towards reaching a global resolution. About Odyssey (IX) DP I Lakeland, Florida-based Odyssey (IX) DP I LLC, owns the Ocean Breeze Plaza, a shopping center in Jensen Beach Florida. Odyssey (IX) DP I filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-22952) on Dec. 16, 2011, after its lender, U.S. Bank N.A. declared a default on a $16 million construction loan. Judge Catherine Peek McEwen presides over the case. Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser PA, in Tampa, Florida, serves as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Robert Madden, president of OC DIP LLC, the Debtor's manager. U.S. Bank, the Debtor's largest creditor, is represented by: Donald Kirk, Esq. Scott Underwood, Esq. FOWLER WHITE BOGGS P.A. P.O. Box 1438 Tampa, FL 33601 E-mail: dkirk@fowlerwhite.com Affiliates that previously filed separate Chapter 11 petitions are Century/AG - Avondale LLC, Odyssey Properties III LLC, Century (III) DP III LLC, Odyssey (III) DP III LLC, Odyssey (VI) Commercial DP I LLC, Odyssey (III) DP IX LLC, Odyssey (III) DP III LLC, and Odyssey DP III LLC. OSAGE EXPLORATION: Peter Hoffman Discloses 11.8% Equity Stake ------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Peter E. Hoffman, Jr., disclosed that, as of Dec. 20, 2011, he beneficially owns 5,639,119 shares of common stock of Osage Exploration and Development, Inc., representing 11.8% of the shares outstanding. A full-text copy of the amended Schedule 13D is available for free at http://is.gd/EikbAf About Osage Exploration Based in San Diego, California with production offices in Oklahoma City, Oklahoma, and executive offices in Bogota, Colombia, Osage Exploration and Development, Inc. (OTC BB: OEDV) -- http://www.osageexploration.com/-- is an independent exploration and production company with interests in oil and gas wells and prospects in the US and Colombia. The Company reported a net loss $1.62 million on $1.83 million of total operating revenues for the year ended Dec. 31, 2010, compared with a net loss of $2.32 million on $2.81 million of total operating revenues during the prior year. The Company reported net income of $2.56 million on $2.45 million of total operating revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $1.56 million on $1.26 million of total operating revenues for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $5.32 million in total assets, $1.14 million in total liabilities, and $4.17 million in total stockholders' equity. GKM, LLP expressed substantial doubt about the Company's ability to continue as a going concern. GKM noted that the Company has suffered recurring losses from operations and has an accumulated deficit as of Dec. 31, 2010. OSI RESTAURANT: William Allen Resigns from Board of Directors ------------------------------------------------------------- William A. Allen, III, advised OSI Restaurant Partners, LLC, that he will resign as a member of the Board of Directors and as Chairman of the Board of Directors of the Company effective Jan. 1, 2012. Mr. Allen expressed no disagreement with the Company on any matter relating to the Company's operations, policies or practices. About OSI Restaurant OSI Restaurant Partners, Inc., is the #3 operator of casual-dining spots (behind Darden Restaurants and Brinker International), with more than 1,400 locations in the U.S. and 20 other countries. Its flagship Outback Steakhouse chain boasts more than 950 locations that serve steak, chicken, and seafood in Australian-themed surroundings. OSI also operates the Carrabba's Italian Grill chain, with about 240 locations. Other concepts include Bonefish Grill, Fleming's Prime Steakhouse, and Cheeseburger In Paradise. Most of the restaurants are company owned. A group led by Chairman Chris Sullivan took the company private in 2007. The Company's balance sheet at Sept. 30, 2011, showed $2.32 billion in total assets, $2.37 billion in total liabilities and a $40.30 million total deficit. The Company reported net income of $27.84 million on $3.62 billion of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $54.40 million on $3.60 billion of total revenues during the prior year. PECAN SQUARE: Wells Fargo Objects to Motion to Use Cash Collateral ------------------------------------------------------------------ Wells Fargo Bank, N.A., as Trustee for the registered holders of J. P. Morgan Chase Commercial Mortgage Securities Trust 2006- CIBC16, Commercial Mortgage Pass-Through Certificates, Series 2006-CIBC16, objects to Pecan Square, Ltd.'s Expedited Motion for authority to Use Cash Collateral. The Lender objects to the motion unless and until it has a full opportunity to review the budget proposed by the Debtor, received information concerning the budget that it has requested from the Debtor, negotiated the terms of the proposed use of cash collateral (including the adequate protection to be provided and the terms of a cash collateral order), and determined the amount of the Lender's cash collateral that is currently on hand. As reported in the TCR on Dec. 26, 2011, the Debtor asked the Bankruptcy Court for authorization to use cash collateral in which Wells Fargo Bank, N.A., asserts an interest, to fund its business operations postpetition. As adequate protection, the Debtor will grant Wells Fargo replacement lien and similar protections commonly afforded secured creditors whose cash collateral is being utilized. The Debtor will also make monthly payments of prepetition non-default interest, in the approximate amount of $46,000. About Pecan Square Dallas, Texas-based Pecan Square, Ltd., filed for Chapter 11 protection (Bankr. N.D. Tex. Case No. 11-37391) on Nov. 22, 2011. Bankruptcy Judge Barbara J. Houser presides over the case. Illyssa Iona Fogel, Esq., at the Law Office of Illyssa I. Fogel represents the Debtor in its restructuring effort. The Debtor disclosed $12,566,634 in assets and $10,772,566 in liabilities as of the Chapter 11 filing. On March 31, 2011, the Debtor filed its voluntary petition (Bankr. S.D. Calif. Case No. 11-05359). On Oct. 17, 2011, the San Diego Bankruptcy Court dismissed this first Chapter 11 case. PETROHUNTER ENERGY: Incurs $7 Million Net Loss in Fiscal 2011 ------------------------------------------------------------- Petrohunter Energy Corporation filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $7.01 million on $0 of revenue for the year ended Sept. 30, 2011, compared with a net loss of $6.75 million on $0 of revenue during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $837,052 in total assets, $70.01 million in total liabilities, and a $69.17 million total stockholders' deficit. Eide Bailly LLP, in Greenwood Village, Colorado, noted that certain factors indicate substantial doubt that the Company will be able to continue as a going concern. The Company has an accumulated deficit of $292,987,591 and a net loss of $7,013,787 for the year ending Sept. 30, 2011, and as of that date the Company's current liabilities exceeded the Company's current assets by $14,561,719. The Company?s ability to meet its contractual obligations and remit payment to its vendors depends on its ability to generate additional financing. PetroHunter's management continues to explore arrangements and whereby it may raise additional capital through the sale of existing assets and or through joint ventures related to its pending permit applications as well as through a potential debt or equity issuance. However there are no assurances the plans of the Company will result in its ability to raise funds. If the Company is unable to execute these plans it may have to cease operations or curtail operations further. A full-text copy of the Form 10-K is available for free at: http://is.gd/zw8yJA About PetroHunter Energy Denver, Colo.-based PetroHunter Energy Corporation is an oil and gas exploration company. The Company currently owns oil and gas leasehold interests either directly or through an equity investment in Australia (Beetaloo Basin) and in Western Colorado (Piceance Basin). P.J. FINANCE: U.S. Trustee Seeks Rejection of Plan Disclosures -------------------------------------------------------------- Roberta A. DeAngelis, the U.S. Trustee for Region 3, asks the U.S. Bankruptcy Court for the District of Delaware to deny approval of the Disclosure Statement for Joint Plan proposed by P.J. Finance Company, LLC, et al., and the Official Committee of Unsecured Creditors. According to the U.S. Trustee, the Disclosure Statement proposes a plan that is unconfirmable as a matter of law. The Plan (i) contains an exculpation provision that is contrary to applicable law in the District; and (ii) improperly gives certain parties the exclusive right to object to claims, contrary to the Bankruptcy Code. As reported in the Troubled Company Reporter on Sept. 22, 2011, the Plan provides for these terms: * The Plan is to be financed with a fresh $10 million investment by the owners. * Torchlight has two alternatives: (A) Torchlight can elect to keep the full amount of a $370 million secured claim on the properties. The new debt would start off paying 3.5% interest and mature in 2019. In that event, unsecured creditors would split up $5 million cash to cover $10 million in claims. (B) Torchlight can elect to have a new secured debt equal to whatever value the judge assigns to the collateral. The new secured debt would start off paying 3% interest and mature in 2022. In that case, unsecured creditors would receive $4 million cash, and Torchlight would receive a new unsecured note for 40% of its estimated $165 million deficiency claim. The 40% is to represent the same distribution received by unsecured creditors. The U.S. Trustee is represented by: Jane M. Leamy, Esq. J. Caleb Boggs Federal Building 844 King Street, Suite 2207, Lockbox 35 Wilmington, DE 19801 Tel: (302) 573-6491 Fax: (302) 573-6497 About PJ Finance Chicago, Illinois-based PJ Finance Company, LLC, owns apartment communities in the states of Arizona, Florida, Georgia, Tennessee and Texas. PJ Finance owns or holds ownership interests in 32 apartment communities that collectively have more than 9,500 rentable units. It has 20 apartment locations in Texas, and the remaining 12 in Arizona, Florida, Georgia and Tennessee. The day- to-day operations of the portfolio are managed by a third party, WestCorp Management Group One, Inc. PJ Finance and various affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-10688). Michelle E. Marino, Esq., and Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware, serve as bankruptcy counsel. Kurtzman Carson Consultants, LLC, is the Debtors' claims and notice agent. An official committee of unsecured creditors has been named in the case. Christopher A. Jarvinen, Esq., and Mark T. Power, Esq., at Hahn & Hessen LLP, represent the committee as lead counsel. Richard Scott Cobb, Esq., and William E. Chipman, Jr., Esq., at Landis Rath & Cobb, in Wilmington, Del., serve as the committee's local counsel. The Debtors estimated total assets of at least $275 million (estimated value of portfolio securing loan to Bank of America) and total debts of at least $479 million ($475 million owed to BofA, $4.4 million trade debt). PJ Finance said it has a commitment for Gaia Real Estate Investments LLC to invest $42 million and serve as the foundation for a reorganization plan. PLATINUM PROPERTIES: Can Draw $600,000 Financing from Lender ------------------------------------------------------------ On 2011, the U.S. Bankruptcy Court for the Southern District of Indiana granted permission to obtain up to $600,000 in secured postpetition financing from Palmer Properties, LLC. First Internet Bank of Indiana, the existing first priority, senior lienholder, will be fully repaid from the initial draw at closing under the approved DIP loan. A copy of the DIP Financing Order is available for free at: http://bankrupt.com/misc/platinumproperties.doc285.pdf As reported in the TCR on Nov. 30, 2011, the Debtor asked the Bankruptcy Court for authority to obtain postpetition financing of up to $600,000 from Palmer Properties, LLC, in the form of a secured line of credit, to allow the Debtor to pay its ordinary and necessary operating expenses. The proposed postpetition financing grants the Lender a first priority mortgage lien on twelve (12) platted lots in the Bellewood subdivision located in Hamilton County, Indiana. First Internet Bank of Indiana has a first priority security interest in and lien on the DIP Collateral to secure the Debtor's obligation to First Internet of approximately $56,000. As part of the DIP Financing, First Internet will be fully repaid from the initial draw at closing under the approved DIP loan. First Internet will contemporaneously therewith release its lien on the DIP Collateral. The total principal outstanding under the Loan Documents will not exceed the lesser of (i) $600,000 or (ii) an amount equal to 60% of the aggregate Gross Sales Price of the DIP Collateral that is subject to the Lender's mortgage at any given time of reference. Upon a sale of any lot comprising the DIP Collateral, the Debtor will make a payment in the amount equal to the remainder of the Gross Sales Price of the purchased lot less the sum of the Builder Deposit Credit and all closing costs to be paid by the Debtor in connection with each sale. The Loan will be made at the rate of 12% per annum. Interest will become due and payable with each payment and at maturity. The Note will mature on Dec. 31, 2013. The Lender is entitled to an expedited hearing seeking termination of the automatic stay as to the DIP Collateral upon an Event of Default. A copy of the financing motion is available for free at: http://bankrupt.com/misc/platinumproperties.dkt270.pdf About Platinum Properties and PPV LLC Indianapolis, Indiana-based Platinum Properties, LLC, is a residential real estate developer. Platinum acquires land, designs the projects, obtains zoning and other approvals, and constructs roads, drainage, utilities, and other infrastructure of residential subdivisions. Platinum then sells the finished, platted lots. Platinum also has an ownership interest in several special purpose entities that in turn own, operate and manage individual projects. PPV LLC is a joint venture between Platinum and a non-debtor entity, Pittman Partners, Inc., each of whom hold an equity interest in PPV. PPV owned four projects directly and owns 100% of the membership interest of Sweet Charity Estates, LLC. Platinum Properties and PPV LLC filed for Chapter 11 protection (Bankr. S.D. Ind. Case Nos. 11-05140 and 11-05141) on April 25, 2011. Lawyers at Baker & Daniels LLP, in Indianapolis, Indiana, serve as the Debtors' bankruptcy counsel. Platinum Properties disclosed $14,624,722 in assets and $181,990,960 in liabilities as of the Chapter 11 filing. The U.S Trustee has not yet appointed a creditors committee in the Debtor's case. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. PLATINUM PROPERTIES: Plan Filing Period Extended to April 19 ------------------------------------------------------------ United States Bankruptcy Judge Basil H. Lorch III has further extended Platinum Properties, LLC, and PPV, LLC's exclusive periods to file and solicit acceptances for their proposed plan of reorganization, up to and including April 19, 2012, and June 20, 2012, respectively. As reported in the TCR on Dec. 15, 2011, the Debtors told the Court that they require additional time to develop and evaluate expressions of interest in additional sales transactions or other settlements with their creditors. Further, the Debtors said they are currently in negotiations with certain creditors to engage in one or more transactions that could result in a mutually agreeable resolution for one or both of the Chapter 11 Cases. About Platinum Properties and PPV LLC Indianapolis, Indiana-based Platinum Properties, LLC, is a residential real estate developer. Platinum acquires land, designs the projects, obtains zoning and other approvals, and constructs roads, drainage, utilities, and other infrastructure of residential subdivisions. Platinum then sells the finished, platted lots. Platinum also has an ownership interest in several special purpose entities that in turn own, operate and manage individual projects. PPV LLC is a joint venture between Platinum and a non-debtor entity, Pittman Partners, Inc., each of whom hold an equity interest in PPV. PPV owned four projects directly and owns 100% of the membership interest of Sweet Charity Estates, LLC. Platinum Properties and PPV LLC filed for Chapter 11 protection (Bankr. S.D. Ind. Case Nos. 11-05140 and 11-05141) on April 25, 2011. Lawyers at Baker & Daniels LLP, in Indianapolis, Indiana, serve as the Debtors' bankruptcy counsel. Platinum Properties disclosed $14,624,722 in assets and $181,990,960 in liabilities as of the Chapter 11 filing. The U.S. Trustee has not appointed a creditors committee in the Debtor's case. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. PLATINUM STUDIOS: Hires John Rutledge as General Counsel -------------------------------------------------------- The Board of Directors of Platinum Studios, Inc., appointed John Rutledge of Rutledge Law Center Ltd. as the corporation's General Counsel, to assist in all aspects of the corporation's business. Mr. Rutledge is an attorney licensed to practice in Nevada and California, and has served as counsel on a billion-dollar land portfolio and has represented a foreign nation-state in negotiations with regard to the filming of a certain television series. His practice includes the protection and deployment of intellectual property in the marketplace. He received his BA degree from Loyola Marymount University, JD from Howard University School of Law, and Masters of Law from the University of Miami. About Platinum Studios Los Angeles, Calif.-based Platinum Studios, Inc., controls a library consisting of more than 5,000 characters and is engaged principally as a comics-based entertainment company adapting characters and storylines for production in film, television, publishing and all other media. The Company reported a net loss of $9.94 million on $2.27 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $3.38 million on $292,940 of revenue during the prior year. The Company also reported a net loss of $13.83 million on $10.47 million of net revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $1.70 million on $2.24 million of net revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $1.75 million in total assets, $29.70 million in total liabilities, all current, and a $27.94 million total shareholders' deficit. The Company is also delinquent in payment of $116,308 for payroll taxes as of Sept. 30, 2011, and in default of certain of its short term notes payable including it $4,916,665 note payable to Standard Chartered Bank. These matters raise substantial doubt about the Company's ability to continue as a going concern. As reported by the TCR on April 21, 2011, HJ Associates & Consultants, LLP, in Salt Lake City, Utah, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations which have resulted in an accumulated deficit. POWER EFFICIENCY: Two Directors Resign from Board ------------------------------------------------- Robbie Diamond, on Dec. 22, 2011, notified the board of directors of Power Efficiency Corporation that he is resigning from the board of directors effective immediately. The Company believes Mr. Diamond's resignation is a result of a disagreement with the Company's next financing. On Dec. 24, 2011, Herman Sarkowsky notified the Company's board of directors that he is resigning from the board of directors effective immediately. Mr. Sarkowsky served on the board of director's compensation committee. Mr. Sarkowsky's resignation is a not as a result any disagreement with the Company's operations, policies or practices. About Power Efficiency Las Vegas, Nevada-based Power Efficiency Corporation (OTC: PEFF) - - http://www.powerefficiency.com/-- is a clean technology company focused on efficiency technologies for electric motors. The Company reported a net loss of $2.77 million on $394,342 of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $2.50 million on $416,393 of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $2.63 million in total assets, $1.32 million in total liabilities, and $1.31 million in total stockholders' equity. As reported in the TCR on April 6, 2011, BDO USA, LLP, in Las Vegas, Nevada, expressed substantial doubt about Power Efficiency's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses and has generated negative cash flows from operations. Bankruptcy Warning Continuation of the Company as a going concern is dependent upon achieving profitable operations or accessing sufficient operating capital. Management's plans to achieve profitability include developing new products such as hybrid motor starters and single- phase to three-phase converters, developing business in the Asian market, obtaining new customers and increasing sales to existing customers. Management is seeking to raise additional capital through equity issuance, debt financing or other types of financing. However, there are no assurances that sufficient capital will be raised. If the Company is unable to obtain it on reasonable terms, the Company would be forced to restructure, file for bankruptcy or significantly curtail operations. QUALTEQ INC: University Subscription's Chapter 11 Case Dismissed ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware dismissed the Chapter 11 case of University Subscription Services, Inc., a debtor-affiliate of Qualteq, Inc., et al. About the Debtors South Plainfield, New Jersey-based QualTeq, Inc., engages in the design, manufacture, and personalization of plastic cards in the United States. The company manufactures magnetic, contact, and dual interface smart cards. Qualteq Inc. and 17 affiliated companies filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12572) on Aug. 14, 2011. Eric Michael Sutty, Esq., and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, serve as local counsel to the Debtors. K&L Gates LLP is the general bankruptcy counsel. Eisneramper LLP is the accountants and financial advisors. Scouler & Company is the restructuring advisors. Lowenstein Sandler PC is counsel to the Committee. Avadamma LLC disclosed $38,491,767 in assets and $36,190,943 in liabilities as of the Petition Date. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed four unsecured creditors to serve on the Official Committee of Unsecured Creditors. QUALTEQ INC: Bank of America Wants Plami Motion to Quash Dismissed ------------------------------------------------------------------ Bank of America, N.A., has asked the U.S. Bankruptcy Court for the District of Delaware to dismiss the motion filed by Plami, S.A. De C.V., to quash deposition notice served by BofA to Qualteq, Inc., et al. BofA also joined in the motion to quash filed by the Debtors and the Official Committee of Unsecured Creditors. On Oct. 31, the Court entered a scheduling order on BofA's motion to transfer venue of the cases to the Bankruptcy Court for the Northern District of Illinois. As required by the schedule, BofA served written discovery on Nov. 7, 2011, and BofA served notices and subpoena for deposition, including on Plami, to occur between Nov. 14 and 23, the period for deposition. BofA asserted that the Plami motion is premature and the counsel's certification respecting compliance with the local rules is misleading. About QualTeq Inc. South Plainfield, New Jersey-based QualTeq, Inc., engages in the design, manufacture, and personalization of plastic cards in the United States. The company manufactures magnetic, contact, and dual interface smart cards. Qualteq Inc. and 17 affiliated companies filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12572) on Aug. 14, 2011. Eric Michael Sutty, Esq., and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, serve as local counsel to the Debtors. K&L Gates LLP is the general bankruptcy counsel. Eisneramper LLP is the accountants and financial advisors. Scouler & Company is the restructuring advisors. Lowenstein Sandler PC is counsel to the Committee. Avadamma LLC disclosed $38,491,767 in assets and $36,190,943 in liabilities as of the Petition Date. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed four unsecured creditors to serve on the Official Committee of Unsecured Creditors. RENAISSANT LAFAYETTE: Completed Vital Tasks; Ch. 11 Case Dismissed ------------------------------------------------------------------ The Hon. Pamela Pepper of the U.S. Bankruptcy Court for the Eastern District of Wisconsin dismissed the Chapter 11 case of Renaissant Lafayette LLC. The Debtor and bank have filed the joint certification required pursuant to Paragraph 6(d) of the Provisional Dismissal Order confirming that each of these conditions to dismissal has been satisfied: a) payment of the fees of the United States Trustee for the quarter ending Sept. 30, 2011; b) 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 and the motion; c) completion of distributions and the orders of the Court with respect to any objections thereto; and d) 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. As reported in the Troubled Company Reporter on Oct. 19, 2011, the Court has approved the procedures set forth in the Debtor'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. As reported in the TCR on Aug. 18, 2011, the Debtor asked 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. 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. RIDGE PARK: Lender Wants Cash Access to Pay Real Property Taxes --------------------------------------------------------------- Secured creditor CSMC 2006-C5 Better World Limited Partnership asks the U.S. Bankruptcy Court for the Central District of California for authority to use the cash collateral in its possession. The lender is the current owner and holder of the prepetition loan made to the Debtor in the original principal amount of $11,250. The lender intends to use the cash collateral to pay real property taxes with respect to certain real property owned by Ridge Park Office, LLC, that secured the lender's prepetition loan. The lender relates that the Riverside County Assessor has assessed first half 2011/2012 real property taxes against the property in the amount of $66,102, which were due Dec. 12, 2011. According to the lender, failure to pay the unpaid taxes will result in a 10% penalty. An additional 10% penalty will be charged if the unpaid taxes remain unpaid after April 10, 2012. The lender has requested that the Debtor pay the unpaid taxes when due to avoid the imposition of unnecessary and costly penalties, but the Debtor has refused and has indicated that it has no intention of doing so. Absent the relief, the lender will bear the responsibility for the unnecessary fees and penalties levied as a result of the Debtor's failure to pay unpaid taxes when the lender ultimately forecloses on the property. About Ridge Park Office Temecula, California-based Ridge Park Office, LLC, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-33683) on July 22, 2011, represented by Krikor J. Meshefejian, Esq., at Levene, Neale, Bender, Yoo & Brill LLP. The petition was signed by Paul Garrett, president of Redhawk Communities, Inc. Ridge Park affiliates that have separately filed Chapter 11 petitions are: RCI Regional Grove, LLC (Case No. 11-22055) filed on April 12, 2011; Diaz Road Properties, LLC (Case No. 11-28473) and RCI Rio Nedo, LLC (Case No. 11-28470) both filed on June 6, 2011; and Woods Canyon Associates L.P. (Case No. 11-32418) filed on July 11, 2011. The Ridge Park case was originally assigned to Judge Catherine E. Bauer but was later moved to Judge Scott C. Clarkson, who oversees the affiliates' cases. Prepetition lender CSMC 2006-C5 Better World Limited Partnership is represented by H. Mark Mersel, Esq., at Bryan Cave LLP. The Debtor disclosed liabilities of $11,254,887. ROUND TABLE: Committee Wants Post-Confirmation Committee Formed --------------------------------------------------------------- The Official Committee of Unsecured Creditors in the bankruptcy cases of Round Table Pizza, Inc., et al., asks the U.S. Bankruptcy Court for the Northern District of California to: -- ensure that the interests of general unsecured creditors continue to be protected after confirmation; and -- require the Debtors and lenders to include a provision in the Plan for a post confirmation committee to monitor Debtors' and lenders' performance and compliance with the terms of the Plan. According to the Committee, the Plan, drafted by the Debtors and lenders, does not implement the agreement reached after the mediation. The Committee's counsel reviewed the Plan, and saw that the Backstop was not as negotiated by the Committee. Because the Plan did not reflect the treatment the Committee negotiated, the Committee did not provide a letter of support. As reported in the Troubled Company Reporter on Dec. 19, 2011, the Debtors will emerge from bankruptcy following confirmation of the Consensual Plan of Reorganization on Dec. 12 by the U.S. Bankruptcy Court in Oakland, California. The Plan provides for 100% repayment of obligations to its secured and unsecured creditors and for its employee owners to retain 100% ownership of the company. The company is 100% employee owned with ownership spread among 2,500 current and former employees. According to the company's bankruptcy attorney Scott McNutt, "It is unusual, maybe unique, for a company to emerge from Chapter 11 in ten months, pay all creditors 100% and preserve equity. The company's successful reorganization is a testament to the strength of the Round Table Pizza brand and to management's restructuring efforts and relentless focus on retaining ownership for its employee owners." The Committee is represented by: Karol K. Denniston, Esq. Michael C. Abel, Esq. BROWNSTEIN HYATT FARBER SCHRECK, LLP 2029 Century Park East, Suite 2100 Los Angeles, CA 90067-3007 Tel: (310) 500-4600 Fax: (310) 500-4602 E-mail: KDenniston@BHFS.com MCAbel@BHFS.com About Round Table Based in Concord, California, Round Table Pizza, Inc. -- http://www.roundtablepizza.com/-- is a private, 100% employee- owned company with corporate offices based in Concord, California. Round Table is largely owned by an Employee Stock Ownership Plan, with 3,190 participants. The ESOP is designed and intended to provide a source of retirement income to Round Table's loyal, long-term employees. Round Table is a major West Coast pizza chain. There are currently approximately 348 franchised stores, operated by approximately 150 franchisees. Prior to the petition date, Round Table operated 128 company-owned stores. Round Table filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-41431) on Feb. 9, 2011. Judge Roger L. Efremsky presides over the case. Scott H. McNutt, Esq., at McNutt Law Group serves as the Debtor's bankruptcy counsel. The Debtors also tapped Frank, Rimerman & Co. as an auditor and accountant. Round Table disclosed $1,066,524 in assets and $35,625,649 in liabilities as of the Chapter 11 filing. The case is jointly administered with affiliates -- The Round Table Franchise Corporation, Round Table Development Company, and Round Table Pizza Nevada LLC. The official committee of unsecured creditors has tapped Brownstein Hyatt Farber Schreck, LLP as counsel. The Debtor also tapped First Bankers Trust Services, Inc. as discretionary, independent, and institutional ESOP Trustee, and Johanson Berenson LLP as an ESOP counsel. First Bankers Trust Services, Inc., was appointed as institutional trustee of the Round Table Restated Employee Stock Ownership Plan and Trust (ESOP). Johanson Berenson LLP serves as an ESOP counsel. SENESCO TECHNOLOGIES: NYSE Amex Accepts Plan of Compliance ---------------------------------------------------------- Senesco Technologies, Inc. received notice from the NYSE Amex LLC stating that the exchange had accepted the Company's compliance plan and granted it an extension until July 20, 2012 to regain compliance with the NYSE's continued listing standards. As previously disclosed, Senesco is not in compliance with Section 1003(a)(iii) of the NYSE company guide with stockholder's equity of less than $6,000,000 and losses from continuing operations and/or net losses in its five most recent fiscal years. Based on this, the Company submitted a plan advising the NYSE of action it will take, that the Company believes would bring Senesco into compliance with the NYSE's continued listing standards by the end of the extension period. During the extension period, the Company remains subject to periodic review by NYSE Staff. Failure to make progress consistent with the plan or to regain compliance with the continued listing standards by the end of the extension period could result in Senesco being delisted from the NYSE. About Senesco Technologies Senesco Technologies, Inc., the leader in eIF5A technology, is running a clinical study in multiple myeloma with its lead therapeutic candidate SNS01-T, which targets B-cell cancers by selectively inducing apoptosis by modulating eukaryotic, translation, initiation Factor 5A (eIF5A), which is believed to be an important regulator of cell growth and cell death. Accelerating apoptosis may have applications in treating cancer, while delaying apoptosis may have applications in treating certain inflammatory and ischemic diseases. Senesco has already partnered with leading-edge companies engaged in agricultural biotechnology and is entitled to earn research and development milestones and royalties if its gene-regulating platform technology is incorporated into its partners' products. TALON THERAPEUTICS: Taps Gharib as Controller, Finance Director --------------------------------------------------------------- Talon Therapeutics, Inc., entered into a letter agreement with Samir M. Gharib, CPA, pursuant to which Mr. Gharib will be employed as the Company's Controller, Director of Finance. The Agreement provides that Mr. Gharib's employment with the Company will commence Jan. 9, 2012, and continue for an indefinite term. Mr. Gharib will receive an annualized base salary of $160,000 and will be eligible to receive an annual performance cash bonus in an amount up to 20% of his annualized base salary. In addition, upon the commencement of his employment, Mr. Gharib will be granted a 10-year stock option to purchase 75,000 shares of the Company's common stock at an exercise price per share equal to the closing price of the Company's common stock, as reported on the OTC Bulletin Board, on the last business day prior to the commencement of his employment. The stock option, which will vest in 48 equal monthly installments over four years, will be awarded pursuant to the Company's 2010 Equity Incentive Plan and be evidenced by a stock option agreement in the Company's standard form of agreement for use under the 2010 Equity Incentive Plan. As previously disclosed, Mr. Gharib currently serves as the Company's interim controller pursuant to the terms of an engagement agreement dated Aug. 25, 2011, between the Company and Mr. Gharib's current employer, CRC Results, Inc., a consulting firm specializing in accounting, compliance, and risk advisory services. The Company submitted written notice of termination of the Engagement Agreement to CRC on Dec. 26, 2011, effective as of Jan. 6, 2012. On Dec. 27, 2011, the Company and Steven R. Deitcher, M.D., the Company's President and Chief Executive Officer, entered into an amendment to the Employment Agreement between the Company and Dr. Deitcher dated June 6, 2008, as previously amended on Jan. 6, 2011. Pursuant to the Amendment, the term of the Employment Agreement was extended to Dec. 31, 2014. In addition, the Amendment increased the severance benefits payable to Dr. Deitcher under certain circumstances, providing that if, following the Company's receipt of "FDA Approval," the Company terminates Dr. Deitcher's employment other than for "Cause" or if Dr. Deitcher terminates his employment for "Good Reason", then Dr. Deitcher will receive: (i) his then-current annualized base salary and health insurance for a period of 18 months (increased from 12 months) following the date of the termination; (ii) 150% (increased from 100%) of the maximum discretionary bonus for which he would have been eligible in the year of the termination, pro-rated for the number of months that he was employed during such year; and (iii) an immediate acceleration in the vesting of all options to purchase shares of the Company's common stock then held by him to provide for 18 additional months (increased from 12 additional months) of vesting. Also on Dec. 27, 2011, the Company and Craig W. Carlson, the Company's Senior Vice President and Chief Financial Officer, entered into a letter agreement amending the terms of the letter agreement between the Company and Mr. Carlson dated Feb. 5, 2010, as previously amended on Feb. 17, 2010. Pursuant to the Amendment, if, following the Company's receipt of "FDA Approval", the Company terminates Mr. Carlson's employment other than for "Cause" or if Mr. Carlson terminates his employment for "Good Reason", then Mr. Carlson will receive his then-current annualized base salary and health insurance for a period of 12 months (increased from 6 months) following the date of the termination. About Talon Therapeutics Formerly known as Hana Biosciences, Inc., Talon Therapeutics Inc. (TLON.OB.) -- http://www.talontx.com/-- is a biopharmaceutical company dedicated to developing and commercializing new, differentiated cancer therapies designed to improve and enable current standards of care. The company's lead product candidate, Marqibo, potentially treats acute lymphoblastic leukemia and lymphomas. The Company has additional pipeline opportunities some of which, like Marqibo, improve delivery and enhance the therapeutic benefits of well characterized, proven chemotherapies and enable high potency dosing without increased toxicity. Effective Dec. 1, 2010, Hana Biosciences Inc. changed its name to Talon Therapeutics Inc. The name change was effected by merging Talon Therapeutics, Inc., a wholly-owned subsidiary of the Company, with and into the Company, with the Company as the surviving corporation in the merger. The Company's balance sheet at June 30, 2011, showed $11.58 million in total assets, $38.08 million in total liabilities, $30.64 million in redeemable convertible preferred stock, and a $57.14 million total stockholders' deficit. The Company reported a net loss of $25.98 million for the year ended Dec. 31, 2010, compared with a net loss of $24.14 million during the prior year. The Company does not generate any recurring revenue and will require substantial additional capital before it will generate cash flow from its operating activities, if ever. The Company does not currently have sufficient capital to fund its entire development plan beyond 2011. As reported by the TCR on April 1, 2011, BDO USA, LLP, in San Francisco, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. BDO noted that the Company suffered recurring losses from operations and has a net capital deficiency. TELECONNECT INC: Incurs $3.2 Million Net Loss in Fiscal 2011 ------------------------------------------------------------ Teleconnect Inc. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $3.26 million on $112,722 of sales for the year ended Sept. 30, 2011, compared with net income of $1.97 million on $254,446 of sales during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $7.98 million in total assets, $10.66 million in total liabilities, all current, and a $2.68 million total stockholders' deficit. Coulter & Justus, P.C., in Knoxville, Tenn., expressed substantial doubt about the Company's ability to continue as a going concern following the fiscal 2011 financial results. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency in addition to a working capital deficiency. A full-text copy of the Form 10-K is available for free at: http://is.gd/9fq2WI About Teleconnect Inc. Based in Breda, in The Netherlands, Teleconnect Inc. (OTC BB: TLCO) Teleconnect Inc. (initially named Technology Systems International Inc.) was incorporated under the laws of the State of Florida on November 23, 1998. Serving as a telecommunications service provider in Spain for almost 9 years, the Company never fully reached expectations and decided late in 2008 to change its course of business. In November 2009, 90% of the Company's telecommunication business was sold to a Spanish group of investors, and on October 15, 2010, the Company completed the acquisition of Hollandsche Exploitatie Maatschappij BV (HEM), a Dutch entity established in 2007. HEM's core business involves the age validation of consumers when purchasing products which cannot be sold to minors, such as alcohol or tobacco. The Company regards this age validation business as its new strategic direction. The Dutch companies acquired in 2007 (Giga Matrix, The Netherlands, 49% and Photowizz, The Netherlands, 100%) are considered to function complementary to this new service offering. Through the purchase of HEM and its ownership in Photowizz and Giga Matrix the Company now controls all four pillars under its business model: the manufacturing and leasing of electronic age validation equipment, the performance of age validation transactions remotely, the performance of market surveys and the broadcasting of in-store commercial messages using the age validation equipment in between age checks. TERRESTAR CORP: Files First Amended Joint Chapter 11 Plan --------------------------------------------------------- BankruptcyData.com reports that TerreStar Corporation filed with the U.S. Bankruptcy Court a First Amended Joint Chapter 11 Plan and First Amended Disclosure Statement. According to the Disclosure Statement, "the Plan provides that holders of Allowed Unsecured Claims will receive full satisfaction of their Claims, in the form of the New TSC Notes. The remaining value of the Reorganized TSC Debtors will be transferred to the holders of TSC Series A and B Preferred Shares in the form of the New Common Stock of Reorganized TSC. After taking into account the value distributed to unsecured creditors, and assuming that the Claims asserted by Elektrobit Inc. Van Vlissingen and Company, Jefferies & Company, Inc. and other vendors are allowed in full, the equity value of Reorganized TSC being transferred to the holders of TSC Series A and B Preferred Shares is between $144.8 million3 and $154.8 million, while the face value of the interests held by the holders of TSC Series A Preferred Shares is $90 million and TSC Series B Preferred Shares is $318.5 million (not including amounts owed on account of earned but unpaid dividends). In the event the Claims asserted by Elektrobit, Van Vlissingen and Company and Jefferies are disallowed in their entirety, the equity value of Reorganized TSC being transferred to the holders of TSC Series A and B Preferred Shares is between $177.2 million and $187.2 million. Accordingly, after repaying the holders of TSC Series A and B Preferred Shares, there is simply no value remaining to distribute to any other equity interest holders." About TerreStar Corp. and TerreStar Networks TerreStar Corporation and TerreStar Holdings, Inc., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Feb. 16, 2011. TSC's Chapter 11 filing joins the bankruptcy proceedings of TerreStar Networks Inc. and 12 other affiliates, which filed on Oct. 19, 2010. The October Chapter 11 cases are procedurally consolidated under TSN's Case No. 10-15446 under Judge Sean H. Lane. TSC is the parent company of each of the October Debtors. TSC has four wholly owned direct subsidiaries: TerreStar Holdings, Inc., TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings Inc. TSC's case is jointly administered with the cases of seven of the October Debtors under the caption In re TerreStar Corporation, et al., Case No. 11-10612 (SHL). The seven Debtor entities who sought joint administration with TSC are TerreStar New York Inc., Motient Communications Inc., Motient Holdings Inc., Motient License Inc., Motient Services Inc., Motient Ventures Holdings Inc., and MVH Holdings Inc. TSC is a Delaware corporation whose main asset is the equity in non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by the Federal Communication Commission. TSC also has an indirect 89.3% ownership interest in TerreStar Network, Inc., which operates a separate and distinct mobile communications business. TerreStar Holdings is a Delaware corporation that directly holds 100% of the interests in 1.4 Holdings LLC. TerreStar Networks -- TSN -- the principal operating entity of TSC, developed an innovative wireless communications system to provide mobile coverage throughout the United States and Canada using satellite-terrestrial smartphones. The system, however, required an enormous amount of capital expenditures and initially produced very little in the way of revenue. TSN's available cash and borrowing capacity were insufficient to cover its funding; thus, forcing TSN to seek bankruptcy protection in October 2010. TSC estimated assets and debts of $100 million to $500million in its Chapter 11 petition. Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, in New York, serves as counsel for the TSC and TSN Debtors. Garden City Group is the claims and notice agent. Blackstone Advisory Partners LP is the financial advisor. The Garden City Group, Inc., is the claims and noticing agent in the Chapter 11 cases. Otterbourg Steindler Houston & Rosen P.C. is the counsel to the Official Committee of Unsecured Creditors formed in TSN's Chapter 11 cases. FTI Consulting, Inc., is the Committee's financial advisor. TerreStar has signed a contract to sell its business to Dish Network Corp. for $1.38 billion. TerreStar cancelled a June 30 auction because there were no competing bids submitted by the deadline. As reported in the TCR on Nov. 23, 2011, TerreStar Networks Inc. sold the business to Dish Network Corp. for $1.38 billion, negotiated a settlement with creditors, and filed a liquidating Chapter 11 plan. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports the hearing to approve the explanatory disclosure statement is set for Dec. 16. If the plan stays on track, the confirmation hearing for approval of the plan would take place Feb. 13. THERMOENERGY CORP: Amends 54.1 Million Common Shares Offering ------------------------------------------------------------- ThermoEnergy Corporation filed with the U.S. Securities and Exchange Commission a Form 424B3 relating to the resale of up to 54,166,684 shares of Common Stock, par value $0.001 per share, of the Company 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 Dec. 23, 2011, the last reported sale price of the Company's Common Stock on the OTCBB was $0.18 per share. A full-text copy of the amended prospectus is available at: http://is.gd/4pC8DU 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. 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. 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 also reported a net loss of $11.87 million on $3.57 million of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $8.49 million on $2.05 million of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $4.27 million in total assets, $11.09 million in total liabilities and a $6.81 million total stockholders' deficiency. TITAN ENERGY: Amends Sept. 30 Form 10-Q, Records $253,181 Charge ---------------------------------------------------------------- Titan Energy Worldwide, Inc., filed with the U.S. Securities and Exchange Commission amendment no.1 to its Quarterly Report on Form 10-Q for the period ended Sept. 30, 2011. The Company's independent registered accounting firm has completed a review of the Company's interim financial statements as required by the rules and regulation of the United States Securities and Exchange Commission. As the result of the review, the Company made a charge to Statements of Operations in the amount of $253,181 to properly record the accounting for note extensions. In the opinion of Management, the information contained within this report is accurate and these interim financial statements have been prepared in accordance with generally accepted accounting principles and applicable rules and regulations of the Securities and Exchange Commission. The amended statement of operations reflects a net loss of $1.01 million on $3.66 million of net sales for the three months ended Sept. 30, 2011, compared with a net loss of $1.23 million on $3.02 million of net sales during the prior year. The Company originally reported a net loss of $756,670 on $3.66 million of net sales for the three months ended Sept. 30, 2011, compared with a net loss of $1.23 million on $3.02 million of net sales for the same period a year ago. The Company's amended balance sheet at Sept. 30, 2011, showed $5.90 million in total assets, $8.15 million in total liabilities and a $2.25 million total stockholders' deficit. The Company previously reported a $5.90 million in total assets, $7.64 million in total liabilities and a $1.73 million total stockholders' deficit. A full-text copy of the Amended Form 10-Q is available at: http://is.gd/N1Ghx7 About Titan Energy New Hudson, Mich.-based Titan Energy Worldwide, Inc., is a provider of onsite power generation, energy management and energy efficiency products and services. As reported in the TCR on April 12, 2011, UHY LLP, in Southfield, Mich., expressed substantial doubt about Titan Energy Worldwide'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 and accumulated deficit. TOP SHIPS: M/V PEPITO Sale to Result in US$25 Million Book Loss --------------------------------------------------------------- TOP Ships Inc. has sold the M/V PEPITO, a 75,928 dwt drybulk vessel built in 2001. The sale of the M/V PEPITO will result in a book loss of approximately $25 million. About Top Ships Based in Maroussi, Greece, Top Ships Inc. (Nasdaq: TOPS) -- http://www.topships.org/-- is an international maritime shipping company that provides transportation services for crude oil, petroleum products, and dry bulk commodities. * * * As reported in the Troubled Company Reporter on April 25, 2011, Top Ships Inc. filed on April 12, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. Deloitte Hadjipavlou, Sofianos & Cambanis S.A., in Athens, Greece, expressed substantial doubt about Top Ships Inc.'s ability to continue as a going concern. The independent auditors noted that of the Company's inability to comply with financial covenants under its current loan agreements as of Dec. 31, 2010, and 2009, and its negative working capital position. TRAILER BRIDGE: Taps Kurtzman Carson Consultants as Claims Agent ---------------------------------------------------------------- Trailer Bridge, Inc., asks the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ Kurtzman Carson Consultants LLC as claims, noticing, and balloting agent. Pursuant to the amended agreement for services dated Nov. 15, 2011, as modified, KCC will receive a $20,000 retainer. To the best of the Debtor's knowledge, KCC is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. A full-text copy of the amended services agreement is available for free at http://bankrupt.com/misc/TrailerBridge_KCC_amended.pdf About Trailer Bridge Jacksonville, Fla.-based Trailer Bridge, Inc. -- http://www.trailerbridge.com/-- provides integrated trucking and marine freight service to and from all points in the lower 48 states and Puerto Rico and Dominican Republic. This total transportation system utilizes its own trucks, drivers, trailers, containers and U.S. flag vessels to link the mainland with Puerto Rico via marine facilities in Jacksonville, San Juan and Puerto Plata. Trailer Bridge filed a voluntary Chapter 11 petition (Bankr. M.D. Fla. Case No. 11-08348) on Nov. 16, 2011, one day after its $82.5 million 9.25% Senior Secured Notes became due. Judge Jerry A. Funk presides over the case. Gardner F. Davis, Esq., at Foley & Lardner LLP, and DLA Piper LLP (US) serve as the Debtor's counsel. Global Hunter Securities LLC serves as the Debtor's investment banker. RAS Management Advisors LLC serves as the Debtor's financial advisor. In its petition, the Debtor estimated $100 million to $500 million in assets and debts. The petition was signed by Mark A. Tanner, co-chief executive officer. TRAVELPORT INC: Bank Debt Trades at 17% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Travelport, Inc., is a borrower traded in the secondary market at 82.97 cents-on- the-dollar during the week ended Friday, Dec. 30, 2011, a drop of 0.33 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, and carries Moody's B1 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 133 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 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. The Company's balance sheet at Sept. 30, 2011, showed $3.43 billion in total assets, $4.21 billion in total liabilities and a $780 million total deficit. * * * As reported by the TCR on Oct. 10, 2011, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on travel services provider Travelport Holdings Limited (Travelport Holdings) and indirect subsidiary Travelport LLC (Travelport) to 'SD' (selective default) from 'CC'. The downgrades follow the implementation of a capital restructuring, which was necessary because of the Travelport group's high leverage, weak liquidity, and the upcoming maturity of its $693 million (as of end-June 2011) PIK loan in March 2012. "According to our criteria, we view this restructuring as a distressed exchange and tantamount to a default (see 'Rating Implications Of Exchange Offers And Similar Restructurings, Update,' published May 12, 2009, on RatingsDirect on the Global Credit Portal)," S&P related. TROPICANA ENTERTAINMENT: LandCo Claims Reserve Procedures Approved ------------------------------------------------------------------ The Honorable Kevin J. Carey granted in its entirety the motion of the Tropicana Las Vegas Holdings, LLC and its debtor affiliate for the establishment of LandCo claims reserve procedures. Tropicana Las Vegas, et al., or the Liquidating LandCo Debtors earlier expressed to the U.S. Bankruptcy Court for the District of Delaware that given their progress in resolving disputed unsecured claims, they believe it is reasonably practicable at the present time to make a partial distribution to holders of Allowed LandCo General Unsecured Claims provided that appropriate reserves are established for the insider claims of William J. Yung, III and other Yung entities. Accordingly, Judge Carey approved the proposed LandCo Claims Reserve Procedure and the proposed $100,000 LandCo Claims Reserve for the Yung claims. The LandCo Debtors are authorized to conduct an interim distribution to holders of Allowed LandCo General Unsecured Claims based on the LandCo Claims Reserve Procedure and the LandCo Claims Reserve, subject to these conditions: -- the effectiveness of a settlement resolving trademark issues and other matters with Tropicana Atlantic City Corp.; -- the entry of a final order resolving indemnification claims of former directors and officers of the LandCo Debtors other than the Yung entities; and -- the execution of a stipulation withdrawing the claim asserted by IUPAT Industry Pension Fund. The amount of Allowed LandCo General Unsecured Claims total more than $3,800,000. The LandCo Chapter 11 Plan provides that Allowed Class 4 LandCo General Unsecured Claims and Allowed Class 6 Insider Claims will receive their pro rata share of a "settlement payment," which is defined as a cash payment equal to the lesser of (i) 25% of the total allowed amount of Class 4 and 6 claims; or (ii) $400,000 in the aggregate. Pursuant to the Court's recent ruling, the interim distribution to Holders of Allowed LandCo General Unsecured Claims will be made in certain revised amounts totaling approximately $290,000, a schedule of which is available for free at: http://bankrupt.com/misc/Tropi_RevAmtClmsReserve112211.pdf The LandCo Debtors are also authorized to adjust the LandCo Claims Reserve and to conduct additional distributions to Holders of Allowed LandCo General Unsecured Claims and the Yung Claims that become Allowed Insider Claims, as the case may be, including on a rolling basis. To the extent the LandCo Claims Reserve proves to be insufficient in light of the final allowed amount of all LandCo General Unsecured Claims and Yung Claims that become Allowed Insider Claims, the affected claimants will only be entitled to receive distributions based on their pro rata share of the LandCo Claims Reserve. In no event will the affected claimant have any recourse to the LandCo Debtors' estates, the Liquidating LandCo Debtors, or any assets of the LandCo Debtors, whether or not previously distributed. Notwithstanding anything contained in the Unresolved Claims Reserve Order, the Proposed Reserve Amount with respect to the Yung Claims is without prejudice to the holders of the Yung Claims seeking allowance of the claims for any other purpose, including any distribution of Litigation Trust Proceeds, if any, pursuant to the terms of the LandCo Plan, and including any use of the Yung Claims for set-off purposes in connection with the adversary proceeding captioned "Lightsway Litigation Services, LLC v. Yung, et al," Case No. 10-50289, that is pending in the Delaware Bankruptcy Court. About Tropicana Entertainment Tropicana Entertainment Inc. is a publicly reporting company that, along with its affiliates, owns or operates nine casinos and resorts in Indiana, Louisiana, Mississippi, Nevada and New Jersey. The Company owns approximately 6,000 rooms, 9,000 slot positions and 250 table games. In addition, the Company owns a development property in Aruba. The company is based in Las Vegas, Nevada. Tropicana Entertainment LLC and certain affiliates filed for Chapter 11 protection on May 5, 2008 (Bankr. D. Del. Case No. 08- 10856). Kirkland & Ellis LLP and Mark D. Collins, Esq., at Richards Layton & Finger, represent the Debtors in their restructuring efforts. Their financial advisor is Lazard Ltd. Their notice, claims, and balloting agent is Kurtzman Carson Consultants LLC. Epiq Bankruptcy Solutions LLC is the Debtors' Web site administration agent. AlixPartners LLP is the Debtors' restructuring advisor. Stroock & Stroock & Lavan LLP and Morris Nichols Arsht & Tunnell LLP represent the Official Committee of Unsecured Creditors in this case. Capstone Advisory Group LLC is financial advisor to the Creditors' Committee. The OpCo Debtors, a group of Tropicana entities owning casinos and resorts in Atlantic City, New Jersey and Evansville, Indiana obtained confirmation from the Bankruptcy Court of a reorganization plan. On April 29, 2009, non-debtor units of the OpCo Debtors, designated as the New Jersey Debtors -- Adamar of New Jersey, Inc., and its affiliate, Manchester Mall, Inc. -- filed for Chapter 11 (Bankr. D. N.J. Lead Case No. 09- 20711) to effectuate a sale of the Atlantic City Resort and Casino to a group of Investors-led by Carl Icahn. Judge Judith H. Wizmur presides over the cases. Manchester Mall is a wholly owned subsidiary of Adamar that owns and operates certain real property utilized in the New Jersey Debtors' business operations. Effective March 8, Tropicana Entertainment successfully emerged from the Chapter 11 reorganization process as an Carl Icahn-owned entity. A group of Tropicana entities, known as the LandCo Debtors, which own Tropicana casino property in Las Vegas, have obtained approval of a separate Chapter 11 plan. Ilana Volkov, Esq., and Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, in Hackensack, New Jersey, represented the New Jersey Debtors. Kurtzman Carson Consultants LLC acts as their claims and notice agent. Adamar disclosed $500 million to $1 billion both in total assets and debts in its petition. Manchester Mall disclosed $1 million to $10 million in total assets, and less than $50,000 in total debts in its petition. Debtors Adamar of New Jersey Inc. and Manchester Mall Inc. have merged into Adamar of NJ In Liquidation, LLC. The merger and name change is in accordance with an Amended and Restated Purchase Agreement, which governs the sale and transfer of the operations of the Tropicana Casino and Resort - Atlantic City, including substantially all of the New Jersey Debtors' assets, to Tropicana Entertainment Inc., Tropicana Atlantic City Corp., and Tropicana AC Sub Corp., free and clear of any and all liens, claims and encumbrances. Bankruptcy Creditors' Service, Inc., publishes Tropicana Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Tropicana Entertainment Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TXU CORP: Bank Debt Trades at 37% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which TXU Corp., now known as Energy Future Holdings Corp., is a borrower traded in the secondary market at 63.36 cents-on-the-dollar during the week ended Friday, Dec. 30, 2011, an increase of 0.39 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 10, 2017, and carries Moody's B2 rating and Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 133 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80%-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. Energy Future Holdings Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $710 million on $2.32 billion of operating revenues for the three months ended Sept. 30, 2011, compared with a net loss of $2.90 billion on $2.60 billion of operating revenue for the same period during the prior year. The Company also reported a net loss of $1.77 billion on $5.67 billion of operating revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $2.97 million on $6.59 billion of operating revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $44.02 billion in total assets, $51.68 billion in total liabilities and a $7.66 billion total deficit. The Company's consolidated balance sheets at Dec. 31, 2010, showed $46.388 billion in total assets, $52.299 billion in total liabilities, and a stockholders' deficit of $5.911 billion. * * * In April 2011, Moody's Investors Service affirmed the 'Caa2' Corporate Family Rating, 'Caa3' Probability of Default Rating and SGL-4 Speculative Grade Liquidity Ratings of EFH. Outlook is stable. EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited financial flexibility; its capital structure appears to be untenable, calling into question the sustainability of the business model; and there is no expectation for any meaningful debt reduction over the next few years, beyond scheduled amortizations. At the end of February 2011, Fitch Ratings it does not expect to take any immediate rating action on EFH's Texas Competitive Electric Holdings Company LLC or their affiliates based on recent default allegations from lender Aurelius. EFH carries a 'CCC' corporate rating, with negative outlook, from Fitch. TXU CORP: Bank Debt Trades at 30% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which TXU Corp., now known as Energy Future Holdings Corp., is a borrower traded in the secondary market at 69.61 cents-on-the-dollar during the week ended Friday, Dec. 30, 2011, a drop of 0.14 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 10, 2017, and carries Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 133 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80%-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. Energy Future Holdings Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $710 million on $2.32 billion of operating revenues for the three months ended Sept. 30, 2011, compared with a net loss of $2.90 billion on $2.60 billion of operating revenue for the same period during the prior year. The Company also reported a net loss of $1.77 billion on $5.67 billion of operating revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $2.97 million on $6.59 billion of operating revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $44.02 billion in total assets, $51.68 billion in total liabilities and a $7.66 billion total deficit. The Company's consolidated balance sheets at Dec. 31, 2010, showed $46.388 billion in total assets, $52.299 billion in total liabilities, and a stockholders' deficit of $5.911 billion. * * * In April 2011, Moody's Investors Service affirmed the 'Caa2' Corporate Family Rating, 'Caa3' Probability of Default Rating and SGL-4 Speculative Grade Liquidity Ratings of EFH. Outlook is stable. EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited financial flexibility; its capital structure appears to be untenable, calling into question the sustainability of the business model; and there is no expectation for any meaningful debt reduction over the next few years, beyond scheduled amortizations. At the end of February 2011, Fitch Ratings it does not expect to take any immediate rating action on EFH's Texas Competitive Electric Holdings Company LLC or their affiliates based on recent default allegations from lender Aurelius. EFH carries a 'CCC' corporate rating, with negative outlook, from Fitch. UNIVERSAL SOLAR: Xin Ma Resigns; Weilei Lv Appointed CFO -------------------------------------------------------- Mr. Xin Ma resigned as the Chief Financial Officer of Universal Solar Technology, Inc., effective Dec. 29, 2011. The Company's Board of Directors appointed Mr. Weilei Lv as the Company's Chief Financial Officer effective immediately. Mr. Weilei Lv, age 27, has served since December 2009 as Vice General Manager of Nanyang Universal Solar Technology Co., Ltd., the Company's wholly owned subsidiary. As the Vice General Manager of NUST, Mr. Lv was responsible (after the General Manager) for the company's day to day operations, including purchasing, production, sales and administrative and financial operations. Prior to joining NUST from August 2008 to November 2009 Mr. Weilei Lv was the administrative assistant to the CEO of Zhuhai Yuemao Laser Facility Engineering Co., Ltd. Mr. Weilei Lv graduated from Nanchang Institute of Technology in July 2008. In connection with the appointment of Mr. Lv as the Company's Chief Financial Officer, the Company and Mr. Lv have entered into a two-year employment agreement pursuant to which the Company will pay Mr. Lv a salary of RMB 10,000 per month (approximately $19,000 per annum). In addition, Mr. Lv is entitled to a severance package consisting of three months of salary and benefits if his employment is terminated without cause or in the event of a merger, sale of assets, or dissolution of the Company. About Universal Solar Headquartered in Zhuhai City, Guangdong Province, in the People's Republic of China, Universal Solar Technology, Inc., was incorporated in the State of Nevada on July 24, 2007. It operates through its wholly owned subsidiary, Kuong U Science & Technology (Group) Ltd., a company incorporated in Macau, the People's Republic of China on May 10, 2007, and its subsidiary, Nanyang Universal Solar Technology Co., Ltd., a wholly foreign owned enterprise registered on Sept. 8, 2008 under the wholly foreign- owned enterprises laws of the PRC. The Company primarily manufactures, markets and sells silicon wafers to manufacturers of solar cells. In addition, the Company manufactures photovoltaic modules with solar cells purchased from third parties. The Company reported a net loss of $593,808 on $2.4 million of sales for 2010, compared with a net loss of $389,435 on $691,713 of sales for 2009. The Company reported a net loss of $1.88 million on $2.80 million of sales for the nine months ended Sept. 30, 2011, compared with a net loss of $621,133 on $609,500 of sales for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $10.42 million in total assets, $13.09 million in total liabilities and a $2.67 million total stockholders' deficiency. As reported by the TCR on April 5, 2011, Paritz & Company, P.A., in Hackensack, New Jersey, expressed substantial doubt about Universal Solar Technology's ability to continue as a going concern, after auditing the Company's 2010 results. The independent auditors noted that the Company's current liabilities exceeded its current assets by $1,484,406 and the Company has incurred net loss of $1,519,274 since inception. US FOODSERVICE: Bank Debt Trades at 8% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which U.S. Foodservice, Inc., is a borrower traded in the secondary market at 91.83 cents- on-the-dollar during the week ended Friday, Dec. 30, 2011, a drop of 0.60 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on July 3, 2014, and carries Moody's B3 rating. The loan is one of the biggest gainers and losers among 133 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. U.S. Foodservice, Inc. -- http://www.usfoodservice.com/-- is a foodservice supplier serving some 250,000 customers from more than 70 distribution facilities. The Company supplies restaurants, hotels, school, and other foodservice operators with a wide variety of food products, including canned and dry foods, meats, frozen foods, and seafood. It also distributes kitchen equipment and cleaning supplies among other non-food supplies. U.S. Foodservice distributes both national brand products and its own private labels. Tracing its roots to 1853, the company is owned by private equity firms KKR & Co. and Clayton, Dubilier & Rice. VYTERIS INC: Enters Into Settlement with Ferring Pharmaceuticals ---------------------------------------------------------------- Vyteris, Inc., entered into a settlement agreement with Ferring Pharmaceuticals, Inc., with respect to that certain License and Development Agreement between the Company and Ferring dated Sept. 27, 2004. The Settlement Agreement calls for the following: 1. Ferring is to deliver to the Company all information, know- how and materials of the Company and records in its possession or control, and the Company is to deliver to Ferring all information, know-how and materials of Ferring in its possession and control. 2. If the Company commercializes the product under the LDA, it will pay to Ferring a royalty on the net sales of, or other milestone payments or amounts attributable to such product. 3. The Company will repay to Ferring the amounts advanced by Ferring under the LDA. 4. Vyteris and Ferring executed a mutual release of all claims arising under the LDA. On Sept. 2, 2011, the Company reported that a special committee of its Board of Directors consisting solely of independent directors approved a transaction negotiated with Western Clinical Trials, Inc., pursuant to which the Company would facilitate negotiations between Western Clinical Trials and four of the Company's former acquisition targets in exchange for a cash payment and an assumption of a portion of the Company's liabilities by Western Clinical Trials. Notwithstanding the previously disclosed special committee approval, the Company did not consummate the transaction, and as of Dec. 29, 2011, the Company has terminated all negotiations with Western Clinical Trials related to the transaction. About Vyteris, Inc. Based in Fair Lawn, New Jersey, Vyteris, Inc. (formerly Vyteris Holdings (Nevada), Inc., has developed and produced the first FDA- approved electronically controlled transdermal drug delivery system that transports drugs through the skin comfortably, without needles. This platform technology can be used to administer a wide variety of therapeutics either directly into the skin or into the bloodstream. The Company holds approximately 50 U.S. and 70 foreign patents relating to the delivery of drugs across the skin using an electronically controlled "smart patch" device with electric current. The Company reported a net loss of $10.54 million on $117,792 of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $33.94 million on $4.56 million of total revenues during the prior year. As reported by the TCR on April 21, 2011, Amper, Politziner & Mattia, LLP, in Edison, New Jersey, expressed substantial doubt about the Company's ability to continue as going concern, following the 2010 financial results. The independent auditors noted that the Company has incurred recurring losses and is dependent upon obtaining sufficient additional financing to fund operations and has not been able to meet all of its obligations as they become due. The Company's balance sheet at March 31, 2011, showed $2.52 million in total assets, $15.39 million in total liabilities and a $12.86 million total stockholders' deficit. WILLIAM LYON: Taps Newmeyer as Special Litigation Counsel --------------------------------------------------------- BankruptcyData.com reports that William Lyon Homes filed with the U.S. Bankruptcy Court a motion to retain Newmeyer & Dillion (Contact: John O 'Hara) as special litigation counsel at the following hourly rates: partner at $310 to 445, associate at 190 to 290 and legal assistant and paralegal at 155. About William Lyon Homes Based in Newport Beach, California, William Lyon Homes and its subsidiaries -- http://www.lyonhomes.com/-- are primarily engaged in designing, constructing and selling single family detached and attached homes in California, Arizona and Nevada. William Lyon Homes and its affiliates commenced a prepackaged Chapter 11 reorganization (Bankr. D. Del. Lead Case No. 11-14019) on Dec. 19, 2011. William Lyon had been pursuing an out-of-court restructuring since January. The reorganization plan, announced in November, will reduce debt on borrowed money from $510 million to $328 million. The Debtors intend to obtain approval of the bankruptcy plan at a hearing beginning Feb. 10, 2012. The Chapter 11 plan already has been accepted by 97% in amount and 93% in number of senior unsecured notes. The Plan exchanges the notes for equity and generates $85 million in new cash. Holders owed $300 million on senior unsecured notes are to exchange the debt for $75 million in new secured notes plus 28.5% of the common equity. The Lyon family will invest $25 million in return for 20% of the common stock and warrants for another 9.1%. Senior secured lenders led by ColFin WLH Funding LLC, an affiliate of real-estate finance and investment company Colony Financial Inc., would receive a new $235 million 10.25% three-year secured note for existing secured claim of at least $206 million in principal. There will be a rights offering to buy $10 million in common stock and $50 million in convertible preferred stock, representing 51.5% of the new equity. A noteholder has agreed to buy any of the offering that isn't purchased. The company didn't make a $7.5 million interest payment payable Oct. 1, 2011, on $138.8 million in 10.75% senior notes due 2013. William Lyon expects to pay its remaining creditors in full, including vendors and other general unsecured creditors. Judge Christopher S. Sontchi presides over the case. Lawyers at Pachulski Stang Ziehl & Jones LLP serve as the Debtors' counsel. Lawyers at Irell & Manella LLP serve as their special counsel. Alvarez & Marsal Holdings LLC serves as the Debtors' financial advisors. Kurtzman Carson Consultants, LLC, serves as the Debtors' claims and notice agent. The petition says assets are $593.5 million with debt totaling $606.6 million as of Sept. 30, 2011. Counsel to the Backstop Investors are Matthew K. Kelsey, Esq., and J. Eric Wise, Esq., at Gibson, Dunn & Crutcher LLP. Counsel to the Ad Hoc Noteholders Group are Mark Shinderman, Esq., and Neil Wertlieb, Esq., at Milbank, Tweed, Hadley & McCloy LLP. Delaware Counsel to the Ad Hoc Noteholders Group is Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell LLP. The Prepetition Agent and the Prepetition Secured Lenders are represented by David P. Simonds, Esq., at Akin Gump Strauss Hauer & Feld LLP and David Stratton, Esq., at Pepper Hamilton LLP. The Prepetition Lenders also have hired FTI Consulting Inc. as advisors. WINGATE AIRPORT: Interest Holders Act as Key Employees Under Plan ----------------------------------------------------------------- Wingate Airport South, LLC submitted to the U.S. Bankruptcy Court for the District of Nevada a First Amended Disclosure Statement explaining the proposed Plan of Reorganization. The Debtor will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, under the Plan, an agreement has been negotiated with lenders Mortgage of Las Vegas to loan the Debtor $2,000,000 with a term of one year. The rate of interest will be 15% per annum, interest only loan payments, minimum of four months interest. A five point will be secured by a first position deed of trust against the property -- a real property located at 355 E. Warm Springs Road, las Vegas, Nevada consisting of a partially completed Wyndham Hotel and land. The Plan provides that, among other things: Class 1 Claim of Multibank 2009-1 CRE Venture, LLC, will be paid $1,100,000 for a full release of all claims it has against the Debtor. Holders of Class 2 (All Trades Concrete Construction, Inc., Exclusive Landscape Maintenance (Boething, Hanson Structural precast, Inc., and United Subcontractors (Skyline)) will be paid $0.50 cents per dollar claimed as of the Petition Date. Holders of Class 3 claims (Crowne Tradewinds, LLC and Park Place Properties, LLC) will be paid $0. Class 4 Equity interest holders will retain their interest in the Debtor and the Reorganized Debtor. All interest holders agreed to remain employed by the Reorganized Debtor. The retention of the interest holders as key employee insiders is essential to the Debtors' proposed reorganization. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/WINGATE_AIRPORT_ds_firstamended.pdf About Wingate Airport Las Vegas, Nevada-based Wingate Airport South, LLC, owns real property located at 355 E. Warm Springs Road, Las Vegas, Nevada, consisting of a partially completed Wyndham Hotel and land. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-11950) on Feb. 11, 2011. In its schedules, the Debtor disclosed $12,000,000 in assets and $9,497,529 in liabilities as of the Petition Date. Neil J. Beller, Esq., at Neil J. Beller, Ltd., in Las Vegas, represents the Debtor as counsel. On June 20, 2011, the Bankruptcy Court entered an order determining that the Debtor is a "Single Asset Real Estate" Debtor pursuant to 11 U.S.C. Sections 101(51B) and 362(D)(3). As reported in the TCR on Nov. 25, 2011, the Debtor filed a disclosure statement explaining its Chapter 11 Plan of Reorganization. The secured claim of Multibank 2009-1 CRE Venture, LLC will be paid the sum of $1,100,000 for a full release of all claims it has against Debtor. Allowed Equity interest holders will retain their interest. ZOO ENTERTAINMENT: Common Stock Delisted from NASDAQ ---------------------------------------------------- Zoo Entertainment, Inc., notified the U.S. Securities and Exchange Commission regarding the removal from listing or registration of its common stock on the NASDAQ Stock Market LLC. 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 reported a net loss of $19.74 million on $8.59 million of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $837,000 on $43.71 million of revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $6.19 million in total assets, $13.03 million in total liabilities and a $6.84 million total stockholders' deficit. As reported in the TCR on Apr 26, 2011, EisnerAmper LLP, in Edison, N.J., expressed substantial doubt about Zoo Entertainment's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has both incurred losses and experienced net cash outflows from operations since inception. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ --------- -------- ABSOLUTE SOFTWRE ABT CN 120.2 (9.2) 2.7 ACCO BRANDS CORP ABD US 1,050.3 (32.6) 298.7 ALASKA COMM SYS ALSK US 608.6 (51.3) 15.0 AMC NETWORKS-A AMCX US 2,121.5 (1,065.5) 519.5 AMER AXLE & MFG AXL US 2,232.8 (373.3) 125.6 AMERISTAR CASINO ASCA US 2,039.6 (105.7) (50.8) ANGIE'S LIST INC ANGI US 32.6 (38.9) (25.9) ANOORAQ RESOURCE ARQ SJ 927.7 (148.7) 29.2 AUTOZONE INC AZO US 5,932.6 (1,347.1) (736.3) BLUEKNIGHT ENERG BKEP US 320.8 (12.5) (69.9) BLUESKY SYSTEMS BSKS US 0.1 (0.2) - BOSTON PIZZA R-U BPF-U CN 146.9 (105.3) (2.0) CABLEVISION SY-A CVC US 6,740.1 (5,525.9) (886.1) CANADIAN SATEL-A XSR CN 174.4 (29.8) (55.9) CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CC MEDIA-A CCMO US 16,508.9 (7,456.0) 1,531.3 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CENVEO INC CVO US 1,407.1 (331.1) 222.9 CHENIERE ENERGY CQP US 1,803.0 (524.1) 67.7 CHENIERE ENERGY LNG US 2,651.4 (446.9) (282.7) CHOICE HOTELS CHH US 467.9 (14.4) 28.0 CLOROX CO CLX US 4,077.0 (76.0) (30.0) CLOVIS ONCOLOGY CLVS US 26.4 (18.1) (19.2) DEAN FOODS CO DF US 5,911.2 (58.1) 327.7 DENNY'S CORP DENN US 280.6 (95.5) (40.1) DIGITAL DOMAIN M DDMG US 165.8 (81.6) (28.0) DIRECTV-A DTV US 18,232.0 (2,471.0) 103.0 DOMINO'S PIZZA DPZ US 438.2 (1,221.0) 118.2 DUN & BRADSTREET DNB US 1,775.6 (558.0) (478.3) FNB UNITED CORP FNBN US 1,643.9 (129.9) - FREESCALE SEMICO FSL US 3,596.0 (4,488.0) 1,386.0 GENCORP INC GY US 994.2 (143.4) 102.2 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GOLD RESERVE INC GRZ CN 85.2 (19.9) 60.2 GOLDEN QUEEN MNG GQM CN 4.9 (2.8) 3.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 GROUPON INC GRPN US 795.6 (15.6) (301.0) HCA HOLDINGS INC HCA US 23,756.0 (9,062.0) 2,422.0 HUGHES TELEMATIC HUTC US 94.0 (111.8) (39.0) HUGHES TELEMATIC HUTCU US 94.0 (111.8) (39.0) IDENIX PHARM IDIX US 88.8 (2.3) 54.6 IMPERVA INC IMPV US 42.5 (6.6) (5.8) INCYTE CORP INCY US 371.2 (181.0) 225.5 IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 137.5 (34.8) (7.5) JUST ENERGY GROU JE CN 1,584.2 (242.2) (215.6) JUST ENERGY GROU JSTEF US 1,584.2 (242.2) (215.6) LEVEL 3 COMM INC LVLT US 9,254.0 (523.0) 1,058.0 LIN TV CORP-CL A TVL US 815.8 (115.0) 56.6 LIZ CLAIBORNE LIZ US 1,144.0 (420.0) (97.3) LORILLARD INC LO US 3,152.0 (1,174.0) 1,299.0 MAINSTREET EQUIT MEQ CN 475.2 (10.5) - MANNING & NAPIER MN US 66.1 (184.6) - MEAD JOHNSON MJN US 2,580.0 (144.8) 678.3 MEDIVATION INC MDVN US 188.3 (3.9) 89.4 MERITOR INC MTOR US 2,663.0 (961.0) 206.0 MONEYGRAM INTERN MGI US 5,000.3 (108.2) 33.9 MOODY'S CORP MCO US 2,521.3 (174.2) 525.1 MORGANS HOTEL GR MHGC US 480.8 (77.2) (4.1) NATIONAL CINEMED NCMI US 807.9 (346.2) 56.6 NEXSTAR BROADC-A NXST US 582.7 (187.0) 26.2 NPS PHARM INC NPSP US 237.4 (38.6) 183.5 NYMOX PHARMACEUT NYMX US 6.5 (5.5) 3.3 OTELCO INC-IDS OTT-U CN 316.1 (10.1) 22.9 OTELCO INC-IDS OTT US 316.1 (10.1) 22.9 PALM INC PALM US 1,007.2 (6.2) 141.7 PDL BIOPHARMA IN PDLI US 270.5 (243.2) 44.6 PETROALGAE INC PALG US 8.3 (76.0) (77.4) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PRIMEDIA INC PRM US 208.0 (91.7) 3.6 PROTECTION ONE PONE US 562.9 (61.8) (7.6) QUALITY DISTRIBU QLTY US 304.3 (105.9) 44.1 QWEST COMMUNICAT Q US 16,849.0 (1,560.0) (2,828.0) RAPTOR PHARMACEU RPTP US 22.6 (4.1) (11.0) REGAL ENTERTAI-A RGC US 2,262.0 (555.7) (25.8) RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTECH NITROGEN RNF US 111.3 (79.5) (16.0) REVLON INC-A REV US 1,081.7 (685.1) 148.6 RSC HOLDINGS INC RRR US 3,075.9 (50.7) (199.1) RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SALLY BEAUTY HOL SBH US 1,728.6 (219.0) 419.1 SINCLAIR BROAD-A SBGI US 1,563.8 (125.4) 45.7 SINCLAIR BROAD-A SBTA GR 1,563.8 (125.4) 45.7 SMART TECHNOL-A SMA CN 514.9 (9.4) 171.8 SMART TECHNOL-A SMT US 514.9 (9.4) 171.8 SUN COMMUNITIES SUI US 1,328.6 (72.4) - SYNERGY PHARMACE SGYPD US 2.1 (8.6) (6.1) TAUBMAN CENTERS TCO US 2,518.2 (467.9) - THERAVANCE THRX US 283.3 (59.2) 229.4 TOWN SPORTS INTE CLUB US 445.1 (3.2) (30.8) UNISYS CORP UIS US 2,566.9 (594.5) 464.7 VECTOR GROUP LTD VGR US 931.0 (66.7) 252.6 VERISIGN INC VRSN US 1,657.7 (166.7) 724.5 VERISK ANALYTI-A VRSK US 1,379.9 (158.9) (234.2) VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WARNER MUSIC GRO WMG US 3,583.0 (289.0) (630.0) WEIGHT WATCHERS WTW US 1,086.5 (470.5) (292.3) ********* 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 2012. 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 ***