/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/120118.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, January 18, 2012, Vol. 16, No. 17 Headlines 3POWER ENERGY: Creditors Agree to Convert Debt Into Equity ACARTHA GROUP: Case Summary & 20 Largest Unsecured Creditors AGCO GAS: Case Summary & 16 Largest Unsecured Creditors ALCO CORPORATION: Case Summary & 20 Largest Unsecured Creditors AMERICAN AIRLINES: Sec. 341 Meeting of Creditors Tomorrow AMERICAN AIRLINES: PBGC Demands Documents for Benefit Plans AMERICAN AIRLINES: Proposes Weil Gotshal as Bankruptcy Counsel AMERICAN AIRLINES: Seeks Nod for E&Y as Auditor AMERICAN AIRLINES: Proposes Perella as Financial Advisor BBW ENTERPRISES: Voluntary Chapter 11 Case Summary AHERN RENTALS: Seeks to Employ Oppenheimer as Financial Advisor AHERN RENTALS: Proposes Gordon Silver as Attorneys AHERN RENTALS: Seeks Approval of CRG as Restructuring Advisor ALDA PHARMACEUTICALS: Incurs C$1.8 Million Loss in Fiscal 2011 ALLY FINANCIAL: Declares Dividends on Preferred Stock AMERICAN PACIFIC: Trustee Wants Ch. 7 as Losses Continue BANCINSURE INC: A.M. Best Downgrades FSR to 'B' BAKER LOFTS: Voluntary Chapter 11 Case Summary BIG PINES: Case Summary & Largest Unsecured Creditor BIOZONE PHARMACEUTICALS: Sells 600,000 Shares for $300,000 BRANCH-SMITH PRINTING: Sell All Assets to Ovation Graphics BUP, INC.: Case Summary & 11 Largest Unsecured Creditors CAMARILLO PLAZA: Proposes to Employ Janet Lawson as Attorney CARA OPERATIONS: DBRS Confirms Issuer Rating at 'B' CHARLESTON ASSOCIATES: Can Use Cash Collateral Use Thru Feb. 29 CLARE AT WATER: Gets Final Court Nod to Access Cash Collateral CLEAN BURN: Court Approves Neal Bradsher as Accountants CLEAN BURN: BA Says Appointment of Chap. 11 Trustee Necessary CLINTON COURT: Has No Assets to Administer, Wants Case Dismissal C.M. MEIERS: Case Summary & 20 Largest Unsecured Creditors DKG & ASSOCIATES: Case Summary & 20 Largest Unsecured Creditors COOPERATIVA DE SEGUROS: A.M. Best Affirms FSR at 'B-' DAIS ANALYTIC: Amends 29.4 Million Common Shares Offering DAYBREAK OIL: Incurs $408,000 Net Loss in Nov. 30 Quarter DELTRON INC: Incurs $7.8 Million Net Loss in Fiscal 2011 DON VICHE: Voluntary Chapter 11 Case Summary DRUG AND VIOLENCE: Case Summary & 20 Largest Unsecured Creditors DUNE ENERGY: Completes 10-1/2% Senior Notes Exchange Offer DUNE ENERGY: TPG Opportunities Discloses 13.7% Equity Stake EDEN RESEARCH: Case Summary & 20 Largest Unsecured Creditors ENER1 INC: Maturity of Bzinfin Loan Agreement Extended to Jan. 20 EQUINE VISION: Voluntary Chapter 11 Case Summary FOUR JAYS: Case Summary & 9 Largest Unsecured Creditors EUROCLASS MOTORS: Plan Filing Period Extended Until Jan. 30 FAITH CHRISTIAN: No MORs Filed; U.S. Trustee Wants Dismissal FUEL DOCTOR: Enters Into Agency Agreement with Senibellacorp GARCIA ENTERPIRSES: Case Summary & 20 Largest Unsecured Creditors GELT PROPERTIES: Can Hire O'Kelly Ernst as Litigation Counsel GELTECH SOLUTIONS: Deregisters Unsold Securities GENTA INC: Has 1.5 Billion Outstanding Common Shares GLEN ROSE: Gastek CEO and 3 Others Named to Board of Directors GRAND RIVER: Hearing on Cash Collateral Access Scheduled for Today GREAT PLAINS: Wants Receiver Ordered to Turn Over Assets GREAT PLAINS: Hires Bernstein Law Firm as Chapter 11 Counsel GREAT PLAINS: Wants to Use RBS Citizens' Cash Collateral GREAT PLAINS: Seeks to Borrow $300,000 From Managing Member GREEN PLANET: Board OKs SingerLewak as Accountants; CFO Resigns GREENWICH SENTRY: Court Confirms GS & GSP First Amended Plans H GRANADOS: Case Summary & 20 Largest Unsecured Creditors HAYDEL PROPERTIES: Case Summary & Largest Unsecured Creditor HOSTESS BRANDS: Meeting to Form Creditors Committee Today INNER CITY: Wants Until March 6 to Propose a Chapter 11 Plan INVESTICO DEVELOPMENT: Voluntary Chapter 11 Case Summary JOHN D. OIL: Case Summary & 20 Largest Unsecured Creditors KOREA TECHNOLOGY: Startup DIP Loan Will Now be on Unsecured Basis LA VILLITA: Bankruptcy Court Confirms Reorganization Plan LACK'S STORES: Plan Outline Ok'd; Feb. 1 Confirmation Hearing Set LEE ENTERPRISES: IRS Objects to Amended Prepack Plan LEHMAN BROTHERS: Dist. Judge to Rule on Whether JPM Suit Belongs LEHMAN BROTHERS: SEC Backs LBI in $3-Bil. Barclays Dispute LEHMAN BROTHERS: 3 Law Firms Submit Tender in PSALM's Claim LEHMAN BROTHERS: Wins Approval of Settlement With Alston LEHMAN BROTHERS: Wins Approval of Settlement of $7.7BB Sasco Suit LEHMAN BROTHERS: Committee Backs Monetization of Neuberger Stake LEHMAN BROTHERS: Underwriters Reach $417MM Deal in Class Suit LEHMAN BROTHERS: Asia Unit to Pay $1.5-Bil. to Creditors LEHMAN BROTHERS AUSTRALIA: Chapter 15 Case Summary LIBERATOR INC: Honored with Multiple AVN Awards Nominations LMW HOLDINGS: Voluntary Chapter 11 Case Summary MADISON 92ND: Plan Outline Hearing Scheduled for Jan. 31 MAJESTIC CAPITAL: Taps R&Q Quest as Investment Banker MAKENA GREAT: Has Interim OK to Use Wells Fargo Cash Collateral MESTLER CONSTRUCTION: Case Summary & Creditors List METAL STORM: Settles Dispute with ASOF Over Convertible Security METAL STORM: Proposes to Issue 41.6 Million Ordinary Shares METAL STORM: Maturity of Convertible Note Extended to March 2015 MOHEGAN TRIBAL: Files Mohegan Sun Statistical Report MOHEGAN TRIBAL: Incurs $6.8 Million Net Loss in Fiscal 2011 MT3 PARTNERS: Judge Beesley Orders Chapter 11 Case Dismissed MOUNTAIN ENVIRONMENTAL: Case Summary & Creditors List NATIVE WHOLESALE: Hires Fredericks Peebles as Special Counsel NBOR CORP: Wants Involuntary Case Dismissed for Bad Faith Filing NCOAT INC: Amends Plan of Orderly Liquidation NEWPAGE CORP: Court Modifies Order Approving PwC Employment NORTHERN BERKSHIRE: Further Fine-Tunes Proposed Chapter 11 Plan NEVADA CANCER: Institute's Sale to UCSD Wins Court Approval NEVADA CANCER: Notifies Court of Counsel's Hourly Rates Changes NORTEL NETWORKS: Fraud Trial of Ex-Officials Set to Begin OXLEY DEVELOPMENT: Motion to Dismiss or Convert Case Denied PACIFIC SUNWEAR: To Close Hundreds of Stores PARTNERS MUTUAL: A.M. Best Upgrades FSR From 'C++' PEAK BROADCASTING: Case Summary & 30 Largest Unsecured Creditors PHOENIX LIFE: A.M. Best Affirms FSR at 'B+' PLUM TV: Court Sets Jan. 23 Hearing to Consider Auction Sale POWER EFFICIENCY: Seeks Stockholder Consent to Amend Pref. Stock PRESTIGE TELECOM: Has Until Feb. 14 to Submit Plan to Creditors RCC SOUTH: SFI Belmont's Reorganization Plan Wins Court Approval REAL MEX: Gets Two-Month Extension to File Chapter 11 Plan REGAL ENTERTAINMENT: Board Approves $1.8-Mil. Bonus to Executives RIDGE PARK: Exclusive Solicitation Period Extended Until March 22 S & V PROPERTY: Voluntary Chapter 11 Case Summary SEARS HOLDINGS: Vendors Seek Faster Payments SEAVIEW PLACE: Plan Confirmed With Technical Changes SHENGDATECH INC: Exclusive Filing Period Extended to March 19 SHENGDATECH INC: Lease Decision Deadline Extended to March 16 SKINNY NUTRITIONAL: Robert Miller Named Chief Sales Officer SNOKIST GROWERS: Court OKs Bailey & Busey as Counsel SONOMA VINEYARDS: Plan of Reorganization Wins Court Approval SOUTH EDGE: Stutman Treister Serves as New Counsel SP NEWSPRINT: Committee Taps Ashby & Geddes as Delaware Counsel SP NEWSPRINT: Committee Taps BDO Consulting as Financial Advisor SP NEWSPRINT: Committee Can Retain Lowenstein as Counsel STONER AND COMPANY: Case Summary & 15 Largest Unsecured Creditors TALON THERAPEUTICS: James Flynn Discloses 45.2% Equity Stake TEKTRON MICRO: Case Summary & 20 Largest Unsecured Creditors TELIPHONE CORP: Reports US$2 Million Net Income in Fiscal 2011 TIMMINCO LIMITED: Owes More Than $26MM to Investissement Quebec TRAILER BRIDGE: Reaches Deal With Noteholders, Files Plan TRIUS THERAPEUTICS: Michael Powell Ceases to Hold 5% Equity Stake TURKPOWER CORP: Delays Form 10-Q for Nov. 30 Quarter U.S. EAGLE: Committee Can Retain Eisneramper as Accountant U.S. EAGLE: Can Hire Hilco Real as Real Estate Broker U.S. EAGLE: Plan Filing Period Further Extended to Jan. 30 USEC INC: Expects to Expense $137MM in Q4 Related to ACP Project VEGAS, INC.: Voluntary Chapter 15 Case Summary VOICES OF FAITH: Seeks to Hire Geiger Law as Co-Counsel WALLDESIGN INC: Union Wants Management Replaced by Trustee WALLDESIGN INC: Sec. 341 Creditors' Meeting Set for Feb. 29 WEGENER CORP: Incurs $856,632 Net Loss in Dec. 2 Quarter WESTSIDE MEDICAL: Files Liquidating Plan to Pay Unsecured Claims * Cadwalader's Top Restructuring Trio Joins Pillsbury * Upcoming Meetings, Conferences and Seminars ********* 3POWER ENERGY: Creditors Agree to Convert Debt Into Equity ---------------------------------------------------------- 3Power Energy Group Inc. concluded settlement agreements with the bulk of historical debts creditors from shareholders and service providers to convert their debts into equity in 3Power by issue of new shares and warrants. This step will enhance the Company's balance sheet and support the project funding process. The bulk of the converted debts belong to Falak Holding LLC which will continue financing the company operation cost until the completion of the funding process. "We believe in the success of 3Power and we will continue our support to the company," said Mohammed Falaknaz, chairman of 3Power and vice president of Falak Holding. "This is a vote of trust in our company future and business plan. We are committed to achieve our goals for the benefit of our shareholders' value," adds Bala, the company CEO. About 3Power Energy 3Power Energy Group Inc. was incorporated in Nevada in December 2002. On March 30, 2011, the Company changed its name from Prime Sun Power Inc. to 3Power Energy and increased its authorized share capital to 300,000,000 shares. The Company plans to pursue a business model producing renewable generated electrical power and other alternative energies. On May 13, 2011, the Company acquired 100% of the issued and outstanding common stock of Seawind Energy Limited, in exchange for the issuance of 40,000,000 restricted shares of the Company's common stock. The acquisition was accounted for as a reverse merger and, accordingly, the Company is the legal survivor and Seawind Energy is the accounting survivor. The Company's balance sheet at Sept. 30, 2011, showed $4.50 million in total assets, $5.72 million in total liabilities, all current, and a $1.21 million total shareholders' deficiency. The Company reported a net loss of $2.64 million on $491,092 of sales for the six months ended Sept. 30, 2011, compared with net income of $341,201 on $3.55 million of sales for the same period during the prior year. "The ability of the Company to continue as a going concern is dependent upon, among other things, its successful execution of its plan of operations and ability to raise additional financing or capital. There is no guarantee that the Company will be able to raise additional financing or capital or sell any of services or products at a profit. These factors, among others, raise substantial doubt regarding the Company's ability to continue as a going concern," the Company said in its Form 10-Q for the quarter ended Sept. 30, 2011. ACARTHA GROUP: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Acartha Group, LLC Two Tower Center Boulevard, 20th floor East Brunswick, NJ 08816 Bankruptcy Case No.: 12-10123 Chapter 11 Petition Date: January 8, 2012 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Debtor's Counsel: David L. Finger, Esq. FINGER & SLANINA, P.A. One Commerce Center 1201 Orange Street, Suite 725 Wilmington, DE 19801-1155 Tel: (302) 884-6766 Fax: (302) 984-1294 E-mail: dfinger@delawgroup.com Debtor?s Co-Counsel: JACOBS PARTNERS, LLC Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/deb12-10123.pdf The petition was signed by Dixon R. Brown, Trustee of the BDM 1996 Irrevocable Trust, managing member of Moriss Ent., 100% equity owner. Affiliates that filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Acartha Technology Partners, L.P. -- 01/08/12 MIC VII, LLC -- 01/08/12 AGCO GAS: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------- Debtor: AGCO Gas, LLC 432 W. Grant Street Calexico, CA 92231 Bankruptcy Case No.: 12-00208 Chapter 11 Petition Date: January 9, 2012 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: Gloria Martinez-Senftner, Esq. MARTINEZ BUSINESS & IMMIGRATION LAW GROUP, PC 2999 Douglas Boulevard, Suite 215 Roseville, CA 95661 Tel: (916) 797-9907 E-mail: gloria.senftner@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its 16 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/casb12-00208.pdf The petition was signed by Andres Garcia, managing member of limited liability company. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Andres Garcia -- 01/05/12 ALCO CORPORATION: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Alco Corporation Carretera PR 2 KM 27.6 Dorado, PR 00646 Bankruptcy Case No.: 12-00139 Chapter 11 Petition Date: January 12, 2012 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Carmen D. Conde Torres, Esq. C. CONDE & ASSOC. 254 San Jose Street, 5th Floor San Juan, PR 00901-1523 Tel: (787) 729-2900 Fax: (787) 729-2203 0E-mail: notices@condelaw.com Scheduled Assets: $11,200,030 Scheduled Liabilities: $7,762,314 The petition was signed by Alfonso Rodriguez, president. Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Betteroads Asphalt, Corp. -- $2,990,899 P.O. Box 21420 San Juan, PR 00928-1420 Department of Treasury -- $426,799 Bankruptcy Division P.O. Box 9024140 San Juan, PR 00902-4140 Lolita Garcia de Rodriguez -- $393,454 P.O. Box 9022889 San Juan, PR 00902-2889 Jose Amable De Los Santos -- $222,800 St. James Security Services, Inc. -- $219,746 San Lorenzo Mine -- $204,282 Empresas Ortiz Brunet Inc. -- $170,067 Parking & Traffic Line, Corp. -- $154,264 IRS -- $153,220 LRG Holdings -- $123,665 Cantera Hipodromo, Inc. -- $116,507 Crim -- $115,036 Puerto Rico Aggregates Co. -- $94,102 Autoridad de Energia Electrica -- $72,885 Sucecion Ortiz Toro -- $69,685 Nevares, Sanchez Y Alvarez, PSC -- $50,243 Clab, Inc. -- $47,210 Transporte Nuevo Milenio, Inc. -- $31,062 Enrique Amadeo Fuertes -- $30,969 Asoc. Due�os de Camiones -- $30,809 AMERICAN AIRLINES: Sec. 341 Meeting of Creditors Tomorrow --------------------------------------------------------- Tracy Hope Davis, U.S. Trustee for Region 2, will convene a meeting of creditors of AMR Corporation and its debtor affiliates on January 19, 2012 at 1:00 p.m. (EST) at 80 Broad Street, 4th Floor, in 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. The meeting may be continued and concluded at a later date specified in a notice filed with the U.S. Bankruptcy Court for the Southern District of New York. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) AMERICAN AIRLINES: PBGC Demands Documents for Benefit Plans ----------------------------------------------------------- The Pension Benefit Guaranty Corp. seeks a court ruling requiring AMR Corp. to produce documents and authorizing the agency to serve subpoenas for testimony from the company in connection with its benefit plans. The move comes after AMR, the parent of American Airlines Inc., allegedly refused to provide information to PBGC about its four benefit plans for employees and retirees. AMR administers four single-employer defined-benefit plans for approximately 130,000 participants. Each plan is covered by the federal pension plan termination insurance program established under Title IV of the Employment Retirement Income Security Act. In court papers, PBGC expressed concern that AMR may seek bankruptcy court approval to terminate the benefit plans without first providing the agency with information it needs to evaluate such request. "Termination of any of the Debtors' pension plans would be a momentous event with grave consequences for the participants who are counting on receiving their promised benefits and for the federal pension insurance program," PBGC said in court papers. "Such a decision cannot be made until all relevant business information has been evaluated, allowing for every alternative to termination to be thoroughly considered," the agency further said. PBGC also said the termination of any of the AMR benefit plans would add significantly to the agency's $26 billion deficit. If all four plans terminated, the resulting liabilities assumed by PBGC would constitute a multi-billion dollar loss, resulting in a claim of about $10 billion, and lost benefits to plan participants in an amount the agency estimates to be $1 billion, according to court papers. The hearing on PBGC's request is scheduled for January 27, 2012. The deadline for filing objections is January 20, 2012. PBGC is one of the members of the Official Committee of Unsecured Creditors. The agency is represented by: Carole Neville, Esq. Fruman Jacobson, Esq. SNR DENTON US LLP 1221 Avenue of the Americas New York, NY 10020-1089 Tel: (212) 768-6700 Fax: (212) 768-6800 E-mail: carole.neville@snrdenton.com fruman.jacobson@snrdenton.com PBGC may be reached at: PENSION BENEFIT GUARANTY CORPORATION Israel Goldowitz, Chief Counsel Karen L. Morris, Deputy Chief Counsel Kartar S. Khalsa, Assistant Chief Counsel Stephanie Thomas, Assistant Chief Counsel Nathaniel Rayle, Attorney Kimberly E. Neureiter, Attorney Desiree M. Amador, Attorney Office of the Chief Counsel 1200 K Street NW, Suite 340 Washington, D.C. 20005 Tel: (202) 326-4020 Fax: (202) 326-4112 E-mail: neureiter.kimberly@pbgc.gov PBGC Director Josh Gotbaum, on Jan. 12, released a statement on the importance of American Airlines' pension plans. "Some have suggested that American must duck its pension commitments and kill its pension plans in order to survive. We think that commitments to 130,000 workers and retirees shouldn't be disposable, that American should have to prove in court that this drastic step is necessary." "For other airlines, it hasn't been. American's competitors found ways to increase revenues and get competitive costs while honoring pension benefits. Delta maintained its non-pilots plan, and both Northwest and Continental kept their plans going after their bankruptcies." "Counsel for American claims that it needs to kill its employees' pensions in order to be competitive with other major carriers. The numbers tell a different story: Delta Airlines, which reorganized in bankruptcy, pays an average of $13,210 per employee in pension costs -- almost 2/3 more than American's pre-bankruptcy cost of $8,102. (Source: 2010 annual reports)" "American has more than $4 billion in cash; some of that money should already have been paid into its pension plans. However, Congress, hoping to preserve plans, allowed American to defer the payments. It would be a tragedy if American repaid Congress's generosity by turning around and killing the plans anyway." Mr. Gotbaum stressed that the PBGC is always ready to provide a safety net to employees whose companies can no longer afford their commitments, but that doesn't mean that it's good for employees and retirees when we do. There are legal limits to the amounts we can pay, and we don't cover retiree health care, he said. That's why PBGC always tries first to preserve plans, he added. "We will continue to encourage American to fix its financial problems and still keep its pension plans," he stated. "We stand with American's workers and retirees who are concerned about their futures. Many of the airline's employees took lower wages so the plans could continue. Now, it's American's turn to step up so workers aren't short-changed," Mr. Gotbaum said. An American Airline retiree, Chris McCann, wrote a letter to the Court expressing his concern for the continuation of the pension and medical benefits that the Company rewarded its employees in return for their hard work and collective commitment. Mr. McCann pointed out that, in light of current economic condition, in a job marketplace void of opportunities for aged workers, retirees on a pre-planned fixed income are unable in most cases to financially respond or offset a significant reduction in their budgets. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) AMERICAN AIRLINES: Proposes Weil Gotshal as Bankruptcy Counsel -------------------------------------------------------------- American Airlines Inc. and its affiliated debtors seek court approval to employ Weil, Gotshal & Manges LLP as their legal counsel. The services to be provided by the firm include the preparation of court papers in connection with the Debtors' bankruptcy plans and the administration of their estates. Weil Gotshal will also handle the prosecution and defense of lawsuits, and the negotiation of disputes involving the Debtors. Weil Gotshal will be paid for its services on an hourly basis and will get reimbursed for expenses. The firm's hourly rates range from $760 to $1,075 for members and counsel; $430 to $750 for associates; and $175 to $310 for paraprofessionals. The firm agreed to cap its hourly rate at $1,000 for the representation. Weil Gotshal received approximately $2.2 million retainer, according to court papers. Alfredo Perez, Esq., a member of Weil Gotshal & Manges LLP, disclosed in a declaration that his firm does not hold or represent interest adverse to the Debtors' estates, and that it is a "disinterested person" under Section 101(14) of the Bankruptcy Code. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) AMERICAN AIRLINES: Seeks Nod for E&Y as Auditor ----------------------------------------------- American Airlines Inc. and its affiliated debtors asked Judge Sean Lane to approve the hiring of Ernst & Young LLP as their auditor and tax adviser. The Debtors tapped the firm to complete their annual report, which is due to be filed with the U.S. Securities and Exchange Commission next month, according to court papers. Pursuant to a letter agreement with the Debtors, Ernst & Young will audit their financial statements as well as the reports prepared by independent accountants and auditors. The firm will also advise the Debtors about the tax implications of their restructuring and post-bankruptcy operations. Ernst & Young will get $182,100 per month for services rendered in connection with the audit of AMR Corp.'s and American Airlines' financial statements, and $100,000 per month for the audit of AMR Eagle Holding Corp.'s financial statements. The Debtors will also reimburse the expenses incurred by the firm. James Bradow, a partner at Ernst & Young, disclosed in court papers that his firm does not hold or represent interest adverse to the Debtors. The hearing on the proposed hiring of Ernst & Young is scheduled for January 27, 2012. The deadline for filing objections is January 20, 2012. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) AMERICAN AIRLINES: Proposes Perella as Financial Advisor -------------------------------------------------------- American Airlines Inc. and its affiliates seek approval to hire Perella Weinberg Partners LP as a financial adviser and investment banker, with a promise of $6.5 million in fees for the firm when either a bankruptcy plan is approved or the sale of almost all of their assets is completed. The firm, which will also get a monthly fee of $225,000 and reimbursed expenses, will provide labor-related restructuring services. These services include a review and analysis of available strategic alternatives with respect to the Debtors' labor agreements, pension and other post-retirement plans, among other things. Randall White, associate general counsel of AMR Corp., said the services to be provided by Perella will be "appropriately directed" by the Debtors to avoid duplication of services. Earlier, the Debtors also proposed to employ Rothschild Inc. as a financial adviser and investment banker. Rothschild, however, will only provide capital structure-related restructuring advice. Adam Verost, managing director of Perella Weinberg Partners LP, disclosed in a declaration that his firm does not hold or represent interest adverse to the Debtors and their estates. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) BBW ENTERPRISES: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: BBW Enterprises-Arizona, LLC 3774 S. Danyell Drive Chandler, AZ 85249 Bankruptcy Case No.: 12-00247 Chapter 11 Petition Date: January 6, 2012 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Redfield T. Baum, Sr. Debtor's Counsel: Don C. Fletcher, Esq. LAKE AND COBB 1095 West Rio Salado Parkway #206 Tempe, AZ 85281 Tel: (602) 523-3000 Fax: (602) 523-3001 E-mail: dfletcher@lakeandcobb.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Douglas Brundage, member. AHERN RENTALS: Seeks to Employ Oppenheimer as Financial Advisor --------------------------------------------------------------- Ahern Rentals Inc. asks the U.S. Bankruptcy Court for the District of Nevada for authority to employ Oppenheimer & Co. Inc. as financial advisor and investment banker. Oppenheimer will render general financial advisory, investment banking, and restructuring services, including but not limited to: a. familiarizing itself with the business, operations, properties, financial condition and prospects of Debtor; b. if the Debtor determines to undertake a "transaction," advising and assisting Debtor in structuring and effecting the financial aspects of such a transaction or transactions; c. providing financial advice and assistance to the Debtor in developing and seeking approval of a plan of reorganization; d. if requested by Debtor, providing financial advice and assistance to Debtor in structuring any new securities or evidences of indebtedness to be issued under the Plan and analyzing the feasibility of potential capital structures for the Debtor; e. if requested by the Debtor, assisting in negotiations with entities or groups affected by the Plan; and If the Debtor's restructuring involves a sale, Oppenheimer will: a. provide financial advice and assistance to the Debtor in connection with a sale, identify potential acquirors and, at Debtor's request, contact such potential acquirors; b. at Debtor's request, assist Debtor in preparing a Sale memorandum; and c. if requested by Debtor, assist Debtor and/or participate in negotiations with potential acquirors. Further, if the restructuring involves a financing, Oppenheimer will: 1. provide financial advice and assistance to the Debtor in structuring and effecting a financing; 2. if Oppenheimer and Debtor deem it advisable, assist Debtor in developing and preparing a memorandum to be used in soliciting potential investors, it being agreed that (A) the financing offering memorandum will be based entirely upon information supplied by the Company, and (B) the Debtor will be solely responsible for the accuracy and completeness of the memorandum; and 3. identify potential investors and contact or assist the Debtor in contacting, and/or participating in negotiations with, potential Investors. As set for the in engagement letter, Oppenheimer will receive: (a) a monthly fee in the amount of $50,000 per month beginning on the fifth month of which 50% of the monthly fee shall be credited toward a restructuring transaction fee, sale transaction fee, or financing Fee; (b) a restructuring transaction fee equal to the greater of (a) 0.5% of the aggregate amount of Debtor's Second Priority Notes due 2013 that are reinstated, and (b) $500,000 but in no even greater than $1,000,000 upon the effectiveness of a Plan; (c) a sale transaction fee equal to 0.375% of the transaction value upon the consummation of a sale; (d) a financing fee, upon consummation of any financing, equal to: (i) 0.5% of the aggregate gross commitment of any new first lien senior secured indebtedness issued or reinstated; (ii) 1.0% of the aggregate gross commitment of any new first lien "lastout" or "first-loss" or similar senior secured indebtedness issued or reinstated; (iii) 1.5% of the aggregate gross proceeds of any new indebtedness ranked junior to any senior debt issued; (iv) 2.0% of the gross proceeds of any equity or equity-linked securities or obligations issued; and (v) with respect to any other securities or indebtedness issued, such placement fees or other compensation as will be customary under the circumstances and mutually agreed in good faith by the Debtor and Oppenheimer; and/or (e) a DIP financing fee equal to $390,000 earned and payable upon final approval of the Debtor's debtor-in-possession credit facility. The Debtor will only pay either a sale transaction fee or restructuring transaction fee in the event both are earned as provided therein, not both. Further, the minimum financing fee payable to Oppenheimer is $500,000 and the maximum financing fee payable to Oppenheimer is $1,000,000. During the 90-day period prior to the Petition Date, Debtor paid Oppenheimer a total of $175,000, in advance for services to be rendered and in arrears for expenses incurred. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Ahern Rentals Ahern Rentals, Inc. -- http://www.ahern.com/-- is an equipment rental company in the United States. The company also sells new and used rental equipment, parts and supplies related to its rental equipment, and merchandise used by the construction industry, as well as provides maintenance and repair services. Ahern Rentals filed a voluntary Chapter 11 petition (Bankr. D. Nev. Case No. 11-53860) on Dec. 22, 2011, after failing to obtain an extension of the Aug. 21, 2011 maturity of its revolving credit facility. Judge Bruce T. Beesley presides over the case. Lawyers at Gordon Silver serve as the Debtor's counsel. The Debtor's financial advisors are Oppenheimer & Co. and The Seaport Group. Kurtzman Carson Consultants LLC serves as claims and notice agent. Counsel to Bank of America, as the DIP Agent and First Lien Agent, are Albert M. Fenster, Esq., and Marc D. Rosenberg, Esq., at Kaye Scholer LLP, and Robert R. Kinas, Esq., at Snell & Wilmer. Attorneys for the Majority Term Lenders are Paul Aronzon, Esq., and Robert Jay Moore, Esq., at Milbank, Tweed, Hadley & McCloy LLP. Counsel for the Majority Second Lienholder are Paul V. Shalhoub, Esq., Joseph G. Minias, Esq., and Ana M. Alfonso, Esq., at Willkie Farr & Gallagher LLP. Attorney for GE Capital is James E. Van Horn, Esq., at McGuirewoods LLP. Wells Fargo Bank is represented by Andrew M. Kramer, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. Allan S. Brilliant, Esq., and Glenn E. Siegel, Esq., at Dechert LLP argue for certain revolving lenders. Attorneys for U.S. Bank National Association, as successor to Wells Fargo Bank, as collateral agent and trustee for the benefit of holders of the 9-1/4% Senior Secured Notes Due 2013 under the Indenture dated Aug. 18, 2005, is Kyle Mathews, Esq., at Sheppard, Mullin, Richter & Hampton LLP and Timothy Lukas, Esq., at Holland & Hart. The Company filed for Chapter 11 because it was unable to extend the maturity of its revolving credit facility. The Debtor estimated $500 million to $1 billion in assets and debts. The Company has $50 million of DIP financing from existing lenders. AHERN RENTALS: Proposes Gordon Silver as Attorneys -------------------------------------------------- Ahern Rentals Inc. asks the U.S. Bankruptcy Court for the District of Nevada for authority to retain Gordon Silver as its attorneys. Gordon Silver will, among other things: a) advise the Debtor with respect to its rights, powers and duties as debtor and debtor-in-possession in the continued operation and management of its business; b) prepare and pursue confirmation of a plan of reorganization and approval of a disclosure statement; c) prepare on behalf of the Debtor all necessary applications, motions, answers, proposed orders, other pleadings, notices, schedules and other documents, and reviewing all financial and other reports to be filed; d) advise the Debtor concerning and preparing responses to applications, motions, pleadings, notices and other documents which may be filed by other parties herein; and e) appear in Court to protect the interests of the Debtor. Prior to the Petition Date, Debtor paid GS the sum of $173,383.50 for legal services rendered in connection with its restructuring. GS is also currently holding in retainer the sum of $211,616.50. The compensation of GS's attorneys and paraprofessionals are proposed at varying rates currently ranging from $130.00 per hour to $175.00 per hour for paraprofessionals, ranging from $185.00 per hour to $350.00 per hour for associates, and from $455.00 per hour to $750.00 per hour for shareholders of GS, subject to change from time to time as provided for in the Retention Agreement. Neither GS nor any of its shareholders or associates (a) has any present connection with Debtor, Debtor's creditors, or other parties-in-interest or (b) holds or represents any interest adverse to the estate. GS and any of its shareholders or associates thus are disinterested within the meaning of 11 U.S.C. Sec 101(14) of the Bankruptcy Code. About Ahern Rentals Ahern Rentals, Inc. -- http://www.ahern.com/-- is an equipment rental company in the United States. The company also sells new and used rental equipment, parts and supplies related to its rental equipment, and merchandise used by the construction industry, as well as provides maintenance and repair services. Ahern Rentals filed a voluntary Chapter 11 petition (Bankr. D. Nev. Case No. 11-53860) on Dec. 22, 2011, after failing to obtain an extension of the Aug. 21, 2011 maturity of its revolving credit facility. Judge Bruce T. Beesley presides over the case. Lawyers at Gordon Silver serve as the Debtor's counsel. The Debtor's financial advisors are Oppenheimer & Co. and The Seaport Group. Kurtzman Carson Consultants LLC serves as claims and notice agent. Counsel to Bank of America, as the DIP Agent and First Lien Agent, are Albert M. Fenster, Esq., and Marc D. Rosenberg, Esq., at Kaye Scholer LLP, and Robert R. Kinas, Esq., at Snell & Wilmer. Attorneys for the Majority Term Lenders are Paul Aronzon, Esq., and Robert Jay Moore, Esq., at Milbank, Tweed, Hadley & McCloy LLP. Counsel for the Majority Second Lienholder are Paul V. Shalhoub, Esq., Joseph G. Minias, Esq., and Ana M. Alfonso, Esq., at Willkie Farr & Gallagher LLP. Attorney for GE Capital is James E. Van Horn, Esq., at McGuirewoods LLP. Wells Fargo Bank is represented by Andrew M. Kramer, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. Allan S. Brilliant, Esq., and Glenn E. Siegel, Esq., at Dechert LLP argue for certain revolving lenders. Attorneys for U.S. Bank National Association, as successor to Wells Fargo Bank, as collateral agent and trustee for the benefit of holders of the 9-1/4% Senior Secured Notes Due 2013 under the Indenture dated Aug. 18, 2005, is Kyle Mathews, Esq., at Sheppard, Mullin, Richter & Hampton LLP and Timothy Lukas, Esq., at Holland & Hart. The Company filed for Chapter 11 because it was unable to extend the maturity of its revolving credit facility. The Debtor estimated $500 million to $1 billion in assets and debts. The Company has $50 million of DIP financing from existing lenders. AHERN RENTALS: Seeks Approval of CRG as Restructuring Advisor ------------------------------------------------------------- Ahern Rentals Inc. asks the U.S. Bankruptcy Court for the District of Nevada for authority to retain CRG Partners Group LLC as financial and restructuring advisor. The Debtor has selected CRG Partners because of the firm is familiar with equipment rental companies and bankruptcy practice, and is well qualified to act as financial and restructuring advisor to Debtor. CRG will provide financial and restructuring advisory services in the Chapter 11 Case, which may include, but are not limited to: a. reviewing and analyzing the business operations, liquidity situation, assets and liabilities, financial condition, and prospects of Debtor, including performance improvement; b. assisting the Debtor in its communication with the Debtor's secured and unsecured lenders and vendors; c. assessing the Debtor's 13-week cash flow projection; and d. assisting the Debtor in its operations during the Chapter 11 Case, including but not limited to, producing various information and reports for the various constituencies and this Court. Within the one-year period immediately preceding the Chapter 11 petition date, the Debtor paid CRG $175,000 for advisory services rendered in connection with Debtor's restructuring. CRG is also holding a retainer the sum of $72,895. CRG has agreed to provide its restructuring services on an hourly basis and according to the terms in the Engagement Agreement. The compensation of the CRG Professionals shall be at varying rates currently ranging from $325 per hour to $675 per hour. CRG will also be reimbursed for reasonable out-of-pocket expenses incurred, which will include, among other things, travel, airfare, taxi, lodging, mileage, out-of-town meals, photocopying, delivery service, postage, telephone, vendor charges and other out-of- pocket expenses incurred in providing professional services. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Ahern Rentals Ahern Rentals, Inc. -- http://www.ahern.com/-- is an equipment rental company in the United States. The company also sells new and used rental equipment, parts and supplies related to its rental equipment, and merchandise used by the construction industry, as well as provides maintenance and repair services. Ahern Rentals filed a voluntary Chapter 11 petition (Bankr. D. Nev. Case No. 11-53860) on Dec. 22, 2011, after failing to obtain an extension of the Aug. 21, 2011 maturity of its revolving credit facility. Judge Bruce T. Beesley presides over the case. Lawyers at Gordon Silver serve as the Debtor's counsel. The Debtor's financial advisors are Oppenheimer & Co. and The Seaport Group. Kurtzman Carson Consultants LLC serves as claims and notice agent. Counsel to Bank of America, as the DIP Agent and First Lien Agent, are Albert M. Fenster, Esq., and Marc D. Rosenberg, Esq., at Kaye Scholer LLP, and Robert R. Kinas, Esq., at Snell & Wilmer. Attorneys for the Majority Term Lenders are Paul Aronzon, Esq., and Robert Jay Moore, Esq., at Milbank, Tweed, Hadley & McCloy LLP. Counsel for the Majority Second Lienholder are Paul V. Shalhoub, Esq., Joseph G. Minias, Esq., and Ana M. Alfonso, Esq., at Willkie Farr & Gallagher LLP. Attorney for GE Capital is James E. Van Horn, Esq., at McGuirewoods LLP. Wells Fargo Bank is represented by Andrew M. Kramer, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. Allan S. Brilliant, Esq., and Glenn E. Siegel, Esq., at Dechert LLP argue for certain revolving lenders. Attorneys for U.S. Bank National Association, as successor to Wells Fargo Bank, as collateral agent and trustee for the benefit of holders of the 9-1/4% Senior Secured Notes Due 2013 under the Indenture dated Aug. 18, 2005, is Kyle Mathews, Esq., at Sheppard, Mullin, Richter & Hampton LLP and Timothy Lukas, Esq., at Holland & Hart. The Company filed for Chapter 11 because it was unable to extend the maturity of its revolving credit facility. The Debtor estimated $500 million to $1 billion in assets and debts. The Company has $50 million of DIP financing from existing lenders. ALDA PHARMACEUTICALS: Incurs C$1.8 Million Loss in Fiscal 2011 -------------------------------------------------------------- ALDA Pharmaceuticals Corp. filed with the U.S. Securities and Exchange Commission its annual report on Form 20-F, reporting a loss and comprehensive loss of C$1.87 million on C$305,592 of revenue for the year ended June 30, 2011, compared with a loss and comprehensive loss of C$3.99 million on C$1.46 million of sales during the prior year. The Company's balance sheet at June 30, 2011, showed C$190,494 in total assets, C$1.25 million in total liabilities and a C$1.06 million total shareholders' deficiency. The Company has no history of pre-tax profit and in the previous three years has had only limited annual revenues for each of the years it has been operating. The Company sustained operating losses for each of its fiscal years and has sustained significant accumulated operating losses. The continued operation of the Company will be dependent upon its ability to generate operating revenues and to procure additional financing. The Company may not be successful in generating revenues or raising capital in the future. Failure to generate revenues or raise capital could cause the Company to cease operations. The auditor's reports to the shareholders are expressed in accordance with Canadian reporting standards, which do not require a reference to conditions and events that cast substantial doubt on the Company's ability to continue as a going concern when these are adequately disclosed in the financial statements. A full-text copy of the Form 20-F is available at: http://is.gd/Zo48LD About ALDA Pharmaceuticals Based in Richmond, B.C., 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". ALLY FINANCIAL: Declares Dividends on Preferred Stock ----------------------------------------------------- The board of directors of Ally Financial Inc. has declared quarterly dividend payments for certain outstanding preferred stock. Each of these dividends were declared by the board of directors on Jan. 4, 2012, and are payable on Feb. 15, 2012. A quarterly dividend payment was declared on Ally's Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, Series F-2, of approximately $134 million, or $1.125 per share, and is payable to the U.S. Department of the Treasury. A quarterly dividend payment was also declared on Ally's Fixed Rate Cumulative Perpetual Preferred Stock, Series G, of approximately $45 million, or $17.50 per share, and is payable to shareholders of record as of Feb. 1, 2012. Additionally, a dividend payment was declared on Ally's Fixed Rate/Floating Rate Perpetual Preferred Stock, Series A, of approximately $22 million, or $0.53 per share, and is payable to shareholders of record as of Feb. 1, 2012. Including the aforementioned dividend payments on the Series F-2 Preferred Stock, Ally will have paid a total of approximately $5.4 billion to the U.S. Treasury since February 2009. This amount includes preferred stock dividends, interest payments and proceeds received by the U.S. Treasury in its sale of Ally trust preferred securities. About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/ -- is one of the world's largest automotive financial services companies. The company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3% stake. Private equity firm Cerberus Capital Management LP keeps 14.9%, while General Motors Co. owns 6.7%. The Company has tapped Goldman Sachs Group Inc. and Citigroup Inc. to advise on a range of issues, including strategic alternatives for the mortgage business and repayment of taxpayer funds. The Company's balance sheet at Sept. 30, 2011, showed $181.95 billion in total assets, $162.22 billion in total liabilities and $19.73 billion in total equity. ResCap According to the Form 10-Q for the quarter ended Sept. 30, 2011, although Ally's continued actions through various funding and capital initiatives demonstrate support for ResCap, there can be no assurances for future capital support. Consequently, there remains substantial doubt about ResCap's ability to continue as a going concern. Should Ally no longer continue to support the capital or liquidity needs of ResCap or should ResCap be unable to successfully execute other initiatives, it would have a material adverse effect on ResCap's business, results of operations, and financial position. Ally has extensive financing and hedging arrangements with ResCap that could be at risk of nonpayment if ResCap were to file for bankruptcy. At Sept. 30, 2011, Ally had $1.9 billion in secured financing arrangements with ResCap of which $1.2 billion in loans was utilized. At Sept. 30, 2011, the hedging arrangements were fully collateralized. Amounts outstanding under the secured financing and hedging arrangements fluctuate. If ResCap were to file for bankruptcy, ResCap's repayments of its financing facilities, including those with Ally, could be slower. In addition, Ally could be an unsecured creditor of ResCap to the extent that the proceeds from the sale of Ally's collateral are insufficient to repay ResCap's obligations to the Company. It is possible that other ResCap creditors would seek to recharacterize Ally's loans to ResCap as equity contributions or to seek equitable subordination of Ally's claims so that the claims of other creditors would have priority over Ally's claims. In addition, should ResCap file for bankruptcy, Ally's $331 million investment related to ResCap's equity position would likely be reduced to zero. If a ResCap bankruptcy were to occur and a substantial amount of Ally's credit exposure is not repaid to the Company, it could have an adverse impact on Ally's near-term net income and capital position, but Ally does not believe it would have a materially adverse impact on Ally's consolidated financial position over the longer term. * * * As reported by the TCR on May 6, 2011, Standard & Poor's Ratings Services raised its long-term counterparty credit ratings on both Ally Financial Inc. (formerly GMAC Inc.) and subsidiary Residential Capital LLC (ResCap) to 'B+' from 'B'. The outlook on both ratings is stable. "Ally, an automobile- and mortgage- finance and servicing company, and ResCap, its mortgage subsidiary, improved their capital, credit quality, earnings, and liquidity in recent months," said Standard & Poor's credit analyst Brendan Browne. They also settled a material portion of their mortgage repurchase risk and have been profitable. In February 2011, Moody's Investors Service upgraded the issuer and senior unsecured ratings of Ally Financial Inc. and its supported subsidiaries to B1 from B3. Concurrently, Moody's upgraded the senior secured (second lien) and senior unsecured ratings of mortgage finance subsidiary Residential Capital LLC to Caa3 and Ca, respectively, from C. The rating outlook for both Ally and ResCap is stable. Moody's said the Ally and ResCap upgrades reflect a decline in ResCap's exposure to portfolio under-performance and mortgage repurchase risks and an associated decrease in contingent risks to Ally relating to its support of ResCap. Additional factors supporting Ally's upgrade include its strengthened liquidity and capital positions and prospects for continued profitability in its core auto finance and mortgage businesses based upon positive asset quality performance trends. AMERICAN PACIFIC: Trustee Wants Ch. 7 as Losses Continue -------------------------------------------------------- Christopher R. Barclay, the Chapter 11 trustee of the bankruptcy estate of American Pacific Financial Corporation, asks the U.S. Bankruptcy Court for the District of Nevada to convert the case to one under Chapter 7 of the Bankruptcy Code. The trustee notes that as of Nov. 30, 2011, the balance in the bankruptcy estate's bank accounts totaled $276,201. The accrued but unpaid Chapter 11 claims of professionals in the case total more than $405,000, net of retainers held by some professionals. Under the circumstances, despite substantial improvement in the cash on hand since date of the trustee's appointment, the Chapter 11 case remains administratively insolvent and expenses will only continue to increase deepening the degree of insolvency. The trustee explains that that the case must be converted because: -- the Chapter 11 estate is continuing to suffer losses and rehabilitation or confirmation of a plan is unlikely, especially if it involves continued management and control by Larry Polhill; -- the Debtor has no ongoing operations and will not be reorganized; -- in the trustee's opinion, the earlier plan also did not provide for a sufficient distribution to creditors on account of their claims; -- the nature of the Debtor's accounting reports and documentation appear designed to make it difficult to gain a clear understanding of the Debtor's business affairs; -- even if an orderly liquidation plan is proffered, a Chapter 7 would be a more efficient and less costly alternative to a liquidating plan; and -- the Debtor failed to maintain appropriate insurance. The trustee is represented by: James P. Hill, Esq. Christine A. Roberts, Esq. Elizabeth E. Stephens, Esq. SULLIVAN, HILL, LEWIN, REZ & ENGEL A Professional Law Corporation 228 South Fourth Street, First Floor Las Vegas, NV 89101 Tel: (702) 382-6440 Fax: (702) 384-9102 About American Pacific Financial Las Vegas, Nevada-based American Pacific Financial Corporation has been involved in private equity and sub-debt investment in various types of companies since 1978. APFC's assets include loans and investments in distressed real estate development projects and in other types of distressed operating companies throughout various industries. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-27855) on Sept. 21, 2010. The Company disclosed $16,597,647 in assets and $160,977,435 in liabilities as of the Chapter 11 filing. The Debtor is represented by Kaaran Thomas, Esq., and Ryan J. Works, Esq., at McDonald Carano Wilson, LLP, in Las Vegas, Nevada. Christopher R. Barclay, the Chapter 11 trustee appointed to take over management of the assets, has selected Sullivan, Hill, Lewin, Rez & Engel, as counsel. BANCINSURE INC: A.M. Best Downgrades FSR to 'B' ----------------------------------------------- A.M. Best Co. has downgraded the financial strength rating (FSR) to B (Fair) from B++ (Good) and the issuer credit rating to "bb" from "bbb" of BancInsure Inc. (BancInsure) (Oklahoma City, OK). The outlook for both ratings is negative. The rating downgrades for BancInsure are due to its decline in overall risk-adjusted capitalization and its continued poor underwriting performance. A.M. Best has seen a marked deterioration in BancInsure's operating performance after the initial impact of the recession and financial market downturn in 2008. BancInsure has reported unfavorable underwriting results in the past three years due to adverse developments in the financial institution industry, directors and officers liability and the non-financial institution workers' compensation lines of business, all of which have contributed to large net losses in the past three years. During 2011, BancInsure's surplus declined $10.3 million or 27.8% with a combined ratio of 122.6%. The company's surplus growth in 2009 was due to a $7.5 million capital infusion. BancInsure provides various coverages to banks and other financial institutions throughout the United States. The outlook reflects BancInsure's continued poor operating performance that has weakened capitalization. As a result, A.M. Best is concerned that the company could be challenged to grow capital and surplus. For the negative outlook to be removed BancInsure will have to demonstrate sustained improvement in its operating performance, while maintaining an appropriate level of risk-adjusted capitalization. A.M. Best believes positive rating actions are unlikely in the near term. However, if BancInsure's negative trends in declining overall risk-adjusted capitalization and adverse operating performance continue it could result in further deterioration of the company's ratings as reflected by the continuation of the negative outlook. Conversely, there could be positive movement in the current ratings and/or outlook if there were a sustained turnaround in BancInsure's underwriting and operating results, along with a sustained improvement in its risk-adjusted capital position. A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. BAKER LOFTS: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Baker Lofts, LLC 217 E. 24th Street Holland, MI 49423 Bankruptcy Case No.: 12-00189 Chapter 11 Petition Date: January 11, 2012 Court: U.S. Bankruptcy Court Western District of Michigan (Grand Rapids) Judge: James D. Gregg Debtor's Counsel: Robert F. Wardrop, II, Esq. WARDROP & WARDROP, P.C. 300 Ottawa Avenue, N.W., Suite 150 Grand Rapids, MI 49503 Tel: (616) 459-1225 E-mail: bkfilings@wardroplaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Scott T. Bosgraaf, member. BIG PINES: Case Summary & Largest Unsecured Creditor ---------------------------------------------------- Debtor: Big Pines Mountain House, LLC P.O. Box 451 Genoa, NV 89411 Bankruptcy Case No.: 12-50048 Chapter 11 Petition Date: January 10, 2012 Court: U.S. Bankruptcy Court District of Nevada (Reno) Debtor's Counsel: Stephen R. Harris, Esq. HARRIS - PETRONI, LTD 417 West Plumb Lane Reno, NV 89509 Tel: (775) 786-7600 Fax: (775) 786-7764 E-mail: steve@renolaw.biz Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Paul Winger, managing member. The Company?s list of its largest unsecured creditors filed with the petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ LaMae Rochelle Remaklus Loan $315,000 135 Vesta Reno, NV 89502 BIOZONE PHARMACEUTICALS: Sells 600,000 Shares for $300,000 ---------------------------------------------------------- Biozone Pharmaceuticals, Inc., on Jan. 11, 2012, sold an aggregate of 600,000 units with gross proceeds to the Company of $300,000. Each unit was sold for a purchase price of $0.50 per unit and consists of (i) one share of common stock and (ii) a four-year warrant to purchase 50% percent of the number of shares of Common Stock purchased at an exercise price of $1.00 per share, subject to adjustment upon the occurrence of certain events. The warrants may be exercised on a cashless basis after 12 months from the date of closing, if there is no effective registration statement covering the shares of common stock issuable upon exercise of the warrant. The Company has granted the investors "piggy-back" registration rights with respect to the shares of common stock underlying the Units and the shares of common stock underlying the Warrants, for a period of 12 months from the date of closing. The Units were issued to "accredited investors," as such term is defined in the Securities Act of 1933, as amended, and were offered and sold in reliance on the exemption from registration afforded by Section 4(2) and Regulation D (Rule 506) under the Securities Act of 1933 and corresponding provisions of state securities laws. About Biozone Pharmaceuticals Biozone Pharmaceuticals, Inc., formerly, International Surf Resorts, Inc., was incorporated under the laws of the State of Nevada on Dec. 4, 2006, to operate as an internet-based provider of international surf resorts, camps and guided surf tours. The Company proposed to engage in the business of vacation real estate and rentals related to its surf business and it owns the website isurfresorts.com. During late February 2011, the Company began to explore alternatives to its original business plan. On Feb. 22, 2011, the prior officers and directors resigned from their positions and the Company appointed a new President, Director, principal accounting officer and treasurer and began to pursue opportunities in medical and pharmaceutical technologies and products. On March 1, 2011, the Company changed its name to Biozone Pharmaceuticals, Inc. Since March 2011, the Company has been engaged primarily in seeking opportunities related to its intention to engage in medical and pharmaceutical businesses. On May 16, 2011, the Company acquired substantially all of the assets and assumed all of the liabilities of Aero Pharmaceuticals, Inc., pursuant to an Asset Purchase Agreement dated as of that date. Aero manufactures markets and distributes a line of dermatological products under the trade name of Baker Cummins Dermatologicals. On June 30, 2011, the Company acquired the Biozone Labs Group which operates as a developer, manufacturer, and marketer of over- the-counter drugs and preparations, cosmetics, and nutritional supplements on behalf of health care product marketing companies and national retailers. BioZone as of Oct. 29, 2011, is in default with respect to eleven senior secured convertible promissory notes issued to various accredited investors with an aggregate principal amount of $2,250,000 due to the fact that the Company has not paid the amount due on maturity. The Company's balance sheet at Sept. 30, 2011, showed $10.70 million in total assets, $10.88 million in total liabilities, and a $177,712 total shareholders' deficiency. "Our current balances of cash will not meet our working capital and capital expenditure needs for the next twelve months. In addition, as of September 30, 2011, we have a shareholder deficiency of $177,712 and negative working capital of $1,740,163. Because we are not currently generating sufficient cash to fund our operations and we have debt that is in default, we may need to rely on external financing to meet future operating, debt repayment and capital requirements. These conditions raise substantial doubt about our ability to continue as a going concern." BRANCH-SMITH PRINTING: Sell All Assets to Ovation Graphics ---------------------------------------------------------- Sandra Baker at Star-Telegram reports that Branch-Smith Printing Co., a family-owned business and one of Fort Worth, Texas' oldest companies, has sold most of its assets to Ovation Graphics of Fort Worth and faces creditors' claims in federal and state courts. Terms of the December sale were not disclosed, the report says. It occurred about a week before three paper suppliers who say they are owed more than $1.1 million filed a petition in U.S. Bankruptcy Court in Fort Worth forcing Branch-Smith, founded in 1910, into involuntary bankruptcy, according to the report. Star-Telegram notes that Clampitt Paper Co. in Fort Worth, and Olmstead-Kirk Paper Co. and Western-BRW Paper Co., both in Dallas, filed a Chapter 7 petition Dec. 13 asking that Branch-Smith be liquidated to pay the debts. Olmstead-Kirk is owed the most, $723,146, followed by Clampitt at $302,482, and Western-BRW, $135,301, court records show, the report discloses. The bankruptcy case will have "no impact" on the company moving forward, said Daniel Hanson, president of Ovation Graphics, which obtained the rights to the Branch-Smith name, Star-Telegram reports. "We believe there is significant inherent goodwill in the Branch- Smith name," the report quotes Mr. Hanson as saying. Branch-Smith had gross sales of $15.3 million in 2010 and has 80 employees. All of the employees are being retained, Mr. Hanson, as cited by Star-Telegram, said. According to the report, Mr. Hanson said the company's printing facilities at 120 St. Louis Ave., which recently faced foreclosure by Frost Bank, were sold to a major owner of Ovation Graphics. The bank said it is owed on a $1.25 million loan from February 2009, the report relays. Branch-Smith also faces lawsuits in state district court in Tarrant County, reports Star-Telegram. All Points Capital Corp. sued in July seeking more than $916,793 on two notes from 2007 that went into default a year ago, Star-Telegram relates citing court filing. In December, Star-Telegram recalls, a logistics and freight service firm sued the printing company seeking $21,313 in back payment. Based in Fort Worth, Texas, Branch-Smith Printing -- http://www.branchsmith.com/-- specializes in binding and mailing services to national publishers of association journals, catalogs, city magazines, business-to-business magazines, corporate newsletters, special-interest periodicals, and academic publications and books, as well as producing large-format packaging and retail marketing products. BUP, INC.: Case Summary & 11 Largest Unsecured Creditors -------------------------------------------------------- Debtor: BUP, Inc. dba Plyler's Buffett & Family Restaurant 234 Allegheny Boulevard Brookville, PA 15825 Bankruptcy Case No.: 12-10047 Chapter 11 Petition Date: January 10, 2012 Court: U.S. Bankruptcy Court Western District of Pennsylvania (Erie) Judge: Thomas P. Agresti Debtor's Counsel: Gary H. Simone, Esq. RISHOR SIMONE 101 E. Diamond Street, Suite 208 Butler, PA 16001 Tel: (724) 283-7215 Fax: (724) 283-0229 E-mail: rishor.simone1@1stcounsel.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its 11 largest unsecured creditors is available for free at: http://bankrupt.com/misc/pawb12-10047.pdf The petition was signed by H. Scott Plyler. CAMARILLO PLAZA: Proposes to Employ Janet Lawson as Attorney ------------------------------------------------------------ Camarillo Plaza, LLC, seeks permission from the U.S. Bankruptcy Court for the Central District of California to employ Janet A. Lawson, Esq., as its attorney. Ms. Lawson will, among other things: (a) advise the Debtor concerning the rights, duties, and obligations of a debtor-in-possession under the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and the requirements of the United States Trustee; (b) represent the Debtor in all hearings and meetings before the Bankruptcy Court; (c) prosecute and defend appropriate adversary proceedings in the Bankruptcy Court; (d) prosecute any claim objection; and (e) prepare a disclosure statement and a plan of reorganization. To the Debtor's knowledge, Ms. Lawson does not represent interest adverse to the estate. Janet A. Lawson's present hourly rate is $300. The Debtor paid Ms. Lawson a $20,000 retainer. Shopping center operator Camarillo Plaza LLC, based in Los Angeles, California, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-59637) on Dec. 5, 2011. Judge Sheri Bluebond was assigned to the case. At the Debtor's behest the next day, the case was transferred to the Northern Division (Bankr. C.D. Calif. Case No. 11-bk-15562). The case in the Los Angeles Division was closed, and Judge Robin Riblet took over from Judge Bluebond. The Debtor scheduled assets of $21,646,714 and liabilities of $12,286,585 as of the Chapter 11 filing. Janet A. Lawson, Esq., in Ventura County, California, serves as the Debtor's counsel. CARA OPERATIONS: DBRS Confirms Issuer Rating at 'B' --------------------------------------------------- DBRS has confirmed its Issuer Rating of B for Cara Operations Limited and its B rating on Cara's Senior Secured Second-Lien Notes, based on a RR4 recovery rating. The trends are Stable. This action removes the ratings from Under Review with Developing Implications, where they were placed on October 18, 2011, following the Company's announcement that it had made a bid to enter a support agreement with Prime Restaurants Inc. (Prime) to acquire all of the outstanding shares of Prime. Cara subsequently terminated its acquisition agreement with Prime following a rival agreement from Fairfax Financial Holdings, thereby eliminating any potential for changes to Cara's business risk and financial profile that may have resulted from the acquisition. That said, DBRS notes that there has been some softness in Cara's operating results over the past year, due primarily to the impact of the Company's planned reduction in its conversion strategy (transitioning corporate owned stores to franchise locations) and a continuing soft consumer environment. As such, DBRS believes that Cara will require adequate financial flexibility to respond to the increasingly competitive Canadian restaurant landscape and challenging economic environment, while pursuing its plan for further growth. Cara's inherently positive free cash flow generating capacity should provide it with the ability to maintain its financial profile. Therefore, DBRS believes that Cara remains best positioned in its current rating category for the time being. However, further deterioration in the Company's credit metrics caused by weaker-than-expected operating performance and/or aggressive financial management may result in a negative rating action. CHARLESTON ASSOCIATES: Can Use Cash Collateral Use Thru Feb. 29 --------------------------------------------------------------- Judge Kevin Carey of the U.S. Bankruptcy Court for the District of Delaware granted Charleston Associates LLC continued access to cash collateral of its secured lender Bank of America, N.A., for the interim period from Jan. 1, 2012 through Feb. 29, 2012. The Debtor negotiated a 12th stipulation with C-III Asset Management LLC, in its capacity as special servicer on behalf of BofA, for the continued cash collateral use. The stipulation provides that the Debtor can use rental income and other income generated from its Shopping Center solely for the purpose of funding (i) ordinary and necessary costs of operating and maintaining the Shopping Center, and (ii) certain professional fees and expenses. All costs, fees and expenses will be limited as set forth in prepared budgets, copies of which are available for free at: http://bankrupt.com/misc/CHARLESTONASSO_BudgetJantoFeb2012.pdf With respect to budgeted fees and expenses for the law firm of Neal Wolf & Associates, the allowed costs are those incurred in the adversary proceeding against City National Bank and RA Southeast Land Company, Adversary Proceeding No. 10-01452-lbr, pending in the U.S. Bankruptcy Court for the District of Nevada. The Debtor is indebted to BofA, its secured lender, in the amount of $64 million. All income generated from the Shopping Center, including all rent, is deemed to constitute cash collateral in which BofA has an interest. As adequate protection of its interest in the cash collateral, BofA is granted liens in the assets of the Debtor's estates. Moreover, in interim settlement of disputes between the parties with respect to the valuation of the Shopping Center, the Debtor agrees to make monthly payments of $225,000 to BofA. About Charleston Associates Based in Las Vegas, Nevada, Charleston Associates, LLC, is the successor by merger to Boca Fashion Village Syndications Group, LLC. The Debtor initially owned a 96-acre parcel of real estate in Las Vegas, Nevada and began developing a large community shopping center thereon. Situated at the northeast corner of the intersection of Charleston Boulevard and Rampart Boulevard, the entire shopping center was to be known as "The Shops at Boca Park." The Debtor developed Phases I and II (approximately 54 acres) into an operating shopping center whose tenants currently include Target, Petland, Vons, Famous Footwear, Ross, OfficeMax, and a number of other major national retailers and local retailers. The Debtor transferred developed portions of Phases I and II to affiliates, but retained and continues to own nearly nine acres of land in Phases I and II. Phase III encompassed approximately 41.72 acres. The Debtor divided Phase III into two parcels consisting of the approximately 18.28-acre parcel that is the Boca Fashion Village property, and an approximately 23.44-acre parcel of undeveloped land adjacent thereto. The Undeveloped Land, which remains largely unimproved, was subsequently the subject of a "friendly foreclosure" by City National Bank. The Debtor developed Boca Fashion Village into an operating shopping center whose tenants currently include The Cheesecake Factory, Gordon Biersch, Total Wine and More, Grimaldi's Pizzeria, Kona Grill, REI, Pink the Boutique, and many other national and local retailers. Boca Fashion Village consists of three in-line buildings containing 138,869 square feet of rentable area and an additional 3.74 acre site. The 3.74 acre site was formerly subject to a ground lease, but is currently owned by Quality Real Estate Management ("QREM"), and is being renovated to accommodate the opening of a Fry's Electronics, Inc. store, a "big-box" retail electronics store. Approximately 118,258 square feet, or 85.2% of the rentable area in Boca Fashion Village, is currently leased. In addition, there is a cellular tower located on the property that is currently leased to Nextel. Charleston Associates filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-11970) on June 17, 2010. Judge Kevin J. Carey presides over the case. Neal L. Wolf, Esq., Dean Gramlich, Esq., and Jordan M. Litwin, Esq., at Neal Wolf & Associates, LLC, in Chicago, Ill., represent the Debtor as counsel. Bradford J. Sandler, Esq., and Kathleen P. Makowski, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Del., represent the Debtor as Delaware counsel. In its schedules, the Debtor disclosed $92,348,446 in assets and $65,064,894 in liabilities. Attorneys at Brinkman Portillo Ronk, PC, represent the Official Committee of Unsecured Creditors as counsel. Thomas M. Horan, Esq., Steven K. Kortanek, Esq., and Ryan Cicoski, Esq., at Womble Carlyle Sandridge & Rice, LLP, in Wilmington, Del., represent the Committee as Delaware counsel. CLARE AT WATER: Gets Final Court Nod to Access Cash Collateral -------------------------------------------------------------- The Honorable Susan Pierson Sonderby entered a final order on Dec. 29, 2011 granting The Clare at Water Tower access to the cash collateral of The Bank of New York Mellon Trust Company, N.A., as Master Trustee under the Master Trust Indenture dated July 1, 2010, and its prepetition lenders pursuant to a prepared budget. BNY is entitled to adequate protection of its interests in the Prepetition Collateral, including the Cash Collateral, for any diminution in value of those interests. Among other things, BNY is granted replacement liens and superpriority claims on the Debtor's assets for the benefit of the Prepetition Lenders. No Cash Collateral may be used to (i) challenge the validity or enforceability of the Prepetition Debt, the Prepetition Secured Liens or the Replacement Lien, or (ii) assert causes of action against BNY or the Prepetition Lenders. About The Clare at Water Tower The Clare at Water Tower is an upscale 334-unit high-rise continuing-care retirement community in Chicago, Illinois. The project is only 42% occupied because the target population either hasn't been able to sell homes or lacks sufficient cash to make required deposits as the result declining investments following the recession. The facility is a 53-story building on land rented from Loyola University of Chicago. The facility is managed and developed by a unit of the Franciscan Sisters of Chicago, who invested more than $14 million. The project opened in December 2008. Residents must make partially refundable deposits ranging from $263,000 to $1.2 million. Monthly fees are an additional $2,700 to $5,500. The Clare filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 11-46151) on Nov. 14, 2011, after defaulting on $229 million in tax-exempt bond financing used to build the project. Judge Susan Pierson Sonderby presides over the case. Matthew M. Murphy, Esq., at DLA Piper LLP, serves as the Debtor's counsel. Houlihan Lokey Capital, Inc., as its investment banker and financial advisor. Epiq Bankruptcy Solutions serves as claims and noticing agent. In its petition, the Debtor estimated $100 million to $500 million in assets and debts. The petition was signed by Judy Amiano, president. CLEAN BURN: Court Approves Neal Bradsher as Accountants ------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of North Carolina authorized Clean Burn Fuels, LLC, to employ Neal, Bradsher & Taylor, P.A., as its accountants to prepare and file the Debtor's tax return for the year ending Dec. 31, 2011, and to perform any other services incident thereto. About Clean Burn Founded in 2005, Clean Burn Fuels LLC is the first company to produce ethanol in North Carolina. It completed the construction of its ethanol plant in August 2010 and started producing and selling ethanol and dried distillers grains with solubles (DDGS) shortly thereafter. Clean Burn filed for Chapter 11 bankruptcy protection (Bankr. M.D.N.C. Case No. 11-80562) on April 3, 2011. John A. Northen, Esq., at Northen Blue, L.L.P., in Chapel Hill, N.C., represents the Debtor. Charles M. Ivey, Esq., at Ivey McClellan Gatton, in Greensboro, N.C., represents the Creditors' Committee as counsel. Since the petition date, the Debtor has not operated its ethanol plant. CLEAN BURN: BA Says Appointment of Chap. 11 Trustee Necessary ------------------------------------------------------------- Michael D. West, Bankruptcy Administrator for the Middle District of North Carolina, asks the bankruptcy court to appoint a Chapter 11 trustee in the bankruptcy case of Clean Burn Fuels, LLC. According to Mr. West, the possibility of claims against officers and directors of the Debtors supports the appointment of a Chapter 11 trustee. Mr. West relates that monthly reports filed by the Debtor show continuing losses. He adds that as the Debtor has no income, all administrative costs represent a diminution in the funds available to prepetition creditors. The remaining activities in the case would be more efficiently conducted by a Chapter 11 trustee, Mr. West maintains. Perdue BioEnergy, major creditor and litigant, has filed a motion to convert the case. According to Mr. West, although the litigation position of Perdue must be considered in the analysis, the issue it raises as to current management of the Debtor is serious and supports appointment of a Chapter 11 trustee. About Clean Burn Founded in 2005, Clean Burn Fuels LLC is the first company to produce ethanol in North Carolina. It completed the construction of its ethanol plant in August 2010 and started producing and selling ethanol and dried distillers grains with solubles (DDGS) shortly thereafter. Clean Burn filed for Chapter 11 bankruptcy protection (Bankr. M.D.N.C. Case No. 11-80562) on April 3, 2011. John A. Northen, Esq., at Northen Blue, L.L.P., in Chapel Hill, N.C., represents the Debtor. Charles M. Ivey, Esq., at Ivey McClellan Gatton, in Greensboro, N.C., represents the Creditors Committee as counsel. Since the Chapter 11 petition date, the Debtor has not operated its ethanol plant. CLINTON COURT: Has No Assets to Administer, Wants Case Dismissal ---------------------------------------------------------------- Clinton Court Development LLC has asked the U.S. Bankruptcy Court for the Southern District of New York to dismiss its Chapter 11 case. The Debtor said, in its motion, that there is no longer the need for bankruptcy court protection. On Nov. 3, 2011, the Court entered an order granting the motion of T.D. Bank, N.A., for relief from the automatic stay provisions of 11 U.S.C. Sec. Section 362. The Debtor was advised that TD Bank is prepared to proceed with its foreclosure sale of the Debtor's real property located at 525 Clinton Avenue, Brooklyn, New York and 508 Waverly Avenue, Brooklyn, New York, respectively. Since the Debtor has no other substantial assets to administer in the proceeding, there was no need for the bankruptcy case to continue. The Debtor also related that Kevin Cahill, the receiver appointed in the foreclosure proceeding, remained in place and in accordance with an order to show cause entered by the Court on Oct. 11, 2011, pending a hearing and final determination on the receiver motion. At this juncture, the Debtor does not intend to oppose the receiver motion and submits that the receiver motion should be carried to the same return date as the dismissal motion. A hearing was held Dec. 19, 2011, however, according to the Debtor's docket, remote electronic access to the transcript is restricted until March 22, 2012. About Clinton Court Development Clinton Court Development LLC, the owner of a 13-story mixed-use building on Clinton Avenue in Brooklyn, filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-14673) on Oct. 5, 2011, claiming the property is worth about $17 million. Mortgages total roughly $42.3 million. The primary secured creditor is TD Bank NA. The Company also owns a two-story commercial building on Waverly Avenue in Brooklyn. Judge Robert E. Gerber presides over the case. The Debtor is represented by Robert R. Leinwand, Esq., at Robinson Brog Leinwand Greene Genovese & Gluck P.C. as counsel. The Debtor scheduled $17,210,000 in assets and $47,347,150 in liabilities. The petition was signed by David Weiss, manager. Attorneys for TD Bank N.A., are H. Michael Lynch, Esq., and Gary O. Ravert, Esq., at Lynch & Associates. C.M. MEIERS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: C.M. Meiers Company, Inc. dba CMM of Texas Integrated Benefit Consultants 21045 Califa Street, Suite 100 Woodland Hills, CA 91367 Bankruptcy Case No.: 12-10229 Chapter 11 Petition Date: January 9, 2012 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Maureen Tighe Debtor's Counsel: Elaine Nguyen, Esq. WEINTRAUB & SELTH APC 11766 Wilshire Boulevard, Suite 1170 Los Angeles, CA 90025 Tel: (310) 207-1494 Fax: (310) 442-0660 E-mail: elaine@wsrlaw.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/cacb12-10229.pdf The petition was signed by Eric Rothman, vice president. DKG & ASSOCIATES: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: DKG & Associates, Ltd. 10800 NW 92 Terr, Suite 102 Miami, FL 33178 Tel: (305) 805-9066 Bankruptcy Case No.: 12-10329 Chapter 11 Petition Date: January 6, 2012 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: Robert A. Mark Debtor's Counsel: Scott Alan Orth, Esq. LAW OFFICES OF SCOTT ALAN ORTH, P.A. 3880 Sheridan Street Hollywood, FL 33021 Tel: (305) 757-3300 Fax: (305) 757-0071 E-mail: orthlaw@bellsouth.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/flsb12-10329.pdf The petition was signed by Keith George, managing partner. COOPERATIVA DE SEGUROS: A.M. Best Affirms FSR at 'B-' ----------------------------------------------------- A.M. Best Co. has revised the outlook to stable from positive and affirmed the financial strength rating of B- (Fair) and issuer credit rating of "bb-" of Cooperativa de Seguros de Vida de Puerto Rico (COSVI) (San Juan, PR). COSVI is a cooperative life insurance company owned by cooperative organizations in Puerto Rico. The revised outlook reflects COSVI's negative statutory operating results in 2011, lower than expected risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio and high, albeit decreasing, exposure to common stocks, real-estate and mortgages relative to capital. A.M. Best believes there is uncertainty surrounding COSVI's ability to generate consistent and sustainable positive earnings from its core lines of business. However, a number of initiatives geared toward administrative efficiencies are expected to stabilize operating results in the medium term. While improved, the balance sheet strength remains a challenge for COSVI due to leverage represented by borrowed money and a capital structure, which despite restructuring, retains a small amount of surplus notes. Partially offsetting these negative rating factors are COSVI's improved quality of capital, mostly due to a program that converts the high level of surplus notes to common equity, a decrease in investment risk due to changes in the company's investment strategy and a well established presence in the cooperative and life insurance marketplace in Puerto Rico, where it offers a diversified product portfolio. During 2011, COSVI was able to convert almost 70% of its interest bearing surplus notes to common stock capital. A.M. Best expects the remaining scheduled conversion to be completed in the near future. In addition, COSVI has the commitment of its members to support the entity's financial flexibility. Key rating factors that could result in a positive rating action include a measurable track record of sustained profitability, growth in risk-adjusted and absolute capital, reduced volatility in operating results and continued reduction in COSVI's investment margin balances. Key rating factors that could result in a negative rating action include further deterioration of COSVI's operating results, erosion in capital or changes to investment strategy that result in increases in margin investing or additional investment losses. DAIS ANALYTIC: Amends 29.4 Million Common Shares Offering --------------------------------------------------------- Dais Analytic Corporation filed with the U.S. Securities and Exchange Commission a Pre-Effective Amendment No. 3 to Form S-1 registration statement relating to a public offering of up to 29,411,765 shares of the Company's common stock. The public offering price for the common stock offered is estimated to be up to $0.40 per share. The Company's common stock is quoted on the OTC Bulletin Board under the symbol "DLYT.OB". On Jan. 13 , 2012, the last reported sale price for the Company's common stock was $0.33 per share. The proposed aggregate price of the shares offered hereby assuming an offering price of $0.40 per share is $11,764,706. A full-text copy of the amended prospectus is available at: http://is.gd/VzrDOw About Dais Analytic Odessa, Fla.-based Dais Analytic Corporation has developed and patented a nano-structure polymer technology, which is being commercialized in products based on the functionality of these materials. The initial product focus of the Company is ConsERV, an energy recovery ventilator. The Company also has new product applications in various developmental stages. Cross, Fernandez & Riley LLP, in Orlando, Fla., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company has incurred significant losses since inception and has a working capital deficit and stockholders' deficit of $2,861,448 and $6,722,092 at Dec. 31, 2010. The Company reported a net loss of $1.43 million on $3.34 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $7.12 million on $1.53 million of revenue during the prior year. The Company reported a net loss of $3.38 million on $2.61 million of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $1.94 million on $2.36 million of revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $2.69 million in total assets, $8.79 million in total liabilities, and a $6.09 million total stockholders' deficit. DAYBREAK OIL: Incurs $408,000 Net Loss in Nov. 30 Quarter --------------------------------------------------------- Daybreak Oil and Gas, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $408,318 on $290,912 of oil and gas sales for the three months ended Nov. 30, 2011, compared with a net loss of $451,002 on $259,064 for the same period during the prior year. The Company reported a net loss of $1.2 million on $1.1 million of oil and gas sales for the fiscal year ended Feb. 28, 2011, compared with a net loss of $2.3 million on $471,442 of oil and gas sales for the fiscal year ended Feb. 28, 2010. For the nine months ended Nov. 30, 2011, the Company reported a net loss of $822,246 on $1 million of oil and gas sales, compared with a net loss of $1.21 million on $759,121 of oil and gas sales for the same period a year ago. The Company's balance sheet at Nov. 30, 2011, showed $3.51 million in total assets, $4.18 million in total liabilities, and a $664,175 total stockholders' deficit. As reported in the TCR on June 1, 2011, MaloneBailey, LLP, in Houston, expressed substantial doubt about Daybreak Oil's ability to continue as a going concern, following the Company's results for the fiscal year ended Feb. 28, 2011. The independent auditors noted that the Company suffered losses from operations and has negative operating cash flows. A full-text copy of the Form 10-Q is available for free at: http://is.gd/p5c2aT About Daybreak Oil Daybreak Oil and Gas, Inc. is an independent oil and natural gas exploration, development and production company. The Company is headquartered in Spokane, Washington and has an operations office in Friendswood, Texas. The Company's common stock is quoted on the OTC Bulletin Board market under the symbol DBRM.OB. Daybreak has over 20,000 acres under lease in the San Joaquin Valley of California. DELTRON INC: Incurs $7.8 Million Net Loss in Fiscal 2011 -------------------------------------------------------- Deltron, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $7.89 million on $3.50 million of sales for the year ended Sept. 30, 2011, compared with a net loss of $360,590 on $2.54 million of sales for the nine months ended Sept. 30, 2010. The Company's balance sheet at Sept. 30, 2011, showed $4.03 million in total assets, $12.38 million in total liabilities, and a $8.35 million total stockholders' deficit. WilsonMorgan LLP, in Irvine, Calif., noted that the Company has suffered recurring losses from operations and has a net capital deficiency that 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/I3IFVm About Deltron Inc. Based in Garden Grove, Calif., Deltron, Inc., is a manufacturing company with two distinct business segments: polyurethane and rebreather. The Company's primary business is Elasco, Inc., which is focused on manufacturing technology for plastic and polyurethane products. The Company's secondary business segment is focused on the development of deep-sea exploration breathing technology marketed as Blu Vu. DON VICHE: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: Don Viche Investments 1966 W. 20th Street Los Angeles, CA 90018 Bankruptcy Case No.: 12-10485 Chapter 11 Petition Date: January 6, 2012 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Barry Russell Debtor's Counsel: Tony M. Soliman, Esq. SOLIMAN LAW GROUP, PC 1600 N. Broadway, Suite 740 Santa Ana, CA 92706 Tel: (855) 695-3231 Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its largest unsecured creditors filed with the petition does not contain any entry. The petition was signed by Ruperto Rojas, chief executive officer. DRUG AND VIOLENCE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Drug and Violence Prevention Partners, Inc. 4516 Lovers Lane, Suite 355 Dallas, TX 75229 Bankruptcy Case No.: 12-30235 Chapter 11 Petition Date: January 10, 2012 Court: U.S. Bankruptcy Court Northern District of Texas (Dallas) Judge: Stacey G. Jernigan Debtor's Counsel: Joyce W. Lindauer, Esq. JOYCE W. LINDAUER, ATTORNEY AT LAW 8140 Walnut Hill Lane, Suite 301 Dallas, TX 75231 Tel: (972) 503-4033 Fax: (972) 503-4034 E-mail: courts@joycelindauer.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/txnb12-30235.pdf The petition was signed by Kenneth Greenwood, president/CEO. Affiliates that filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Kenneth Greenwood 11-36180 09/30/11 James Stouffer 12-30210 01/06/12 DUNE ENERGY: Completes 10-1/2% Senior Notes Exchange Offer ---------------------------------------------------------- Dune Energy, Inc., on Dec. 22, 2011, completed its out-of-court restructuring, which included the consummation of the purchase of $297,012,000 aggregate principal amount, or 99%, of the Company's 10 1/2% Senior Secured Notes due 2012 in exchange for shares of the Company's newly issued common stock, shares of a new series of preferred stock that mandatorily converted into common stock and approximately $50 million aggregate principal amount of newly issued Floating Rate Senior Secured Notes due 2016. In connection with the issuance of the common stock in the exchange offer, the Company entered into a Registration Rights Agreement, dated Jan. 10, 2012, with certain holders of the Old Notes. Under the Agreement, the Company agreed to use its commercially reasonable efforts to file with the United States Securities and Exchange Commission and to cause to become effective a registration statement relating to an offer to issue common stock having terms substantially identical to the common stock received by such holders of the Old Notes through the exchange offer. The Company also agreed to use its commercially reasonable efforts to keep the shelf registration statement effective until the earliest to occur of: (i) the disposition of all shares of registrable securities registered under the shelf registration statement in accordance with such registration statement or the cessation of all such shares to be outstanding; or (ii) the availability under Rule 144 of the Securities Act of 1933, as amended, for each holder of registrable securities to immediately freely resell without restriction all registrable securities held by such holder and covered by the shelf registration statement. A full-text copy of the Registration Rights Agreement is available for free at http://is.gd/IEZv9p About Dune Energy Dune Energy, Inc. (NYSE AMEX: DNE) -- http://www.duneenergy.com/ -- is an independent energy company based in Houston, Texas. Since May 2004, the Company has been engaged in the exploration, development, acquisition and exploitation of natural gas and crude oil properties, with interests along the Louisiana/Texas Gulf Coast. The Company's properties cover over 90,000 gross acres across 27 producing oil and natural gas fields. The Company reported a net loss of $75.53 million on $64.18 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $59.13 million on $52.24 million of revenue during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $271.17 million in total assets, $376.85 million in total liabilities, $156.56 million in redeemable convertible preferred stock, and a $262.24 million total stockholders' deficit. * * * As reported by the TCR on Dec. 27, 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on Dune Energy Inc. to 'SD' (selective default) from 'CC'. "The rating actions follow the company's announcement that it has completed the exchange offer for its 10.5% senior notes due 2012, which we consider a distressed exchange and tantamount to a default," said Standard & Poor's credit analyst Stephen Scovotti. "Holders of $297 million of principle amount of the senior secured notes exchanged their 10.5% senior secured notes for common stock, which in the aggregate constitute 97.0% of Dune's common stock post-restructuring, and approximately $49.5 million of newly issued floating rate senior secured notes due 2016. We consider the completion of such an exchange to be a distressed exchange and, as such, tantamount to a default under our criteria." In the Jan. 2, 2012, edition of the TCR, Moody's Investors Service revised Dune Energy, Inc.'s Probability of Default Rating (PDR) to Caa3/LD from Ca following the closing of the debt exchange offer of the company's 10.5% secured notes. Simultaneously, Moody's upgraded the Corporate Family Rating (CFR) to Caa3 reflecting Dune's less onerous post-exchange capital structure and affirmed the Ca rating on the secured notes. The revision of the PDR reflects Moody's view that the exchange transaction constitutes a distressed exchange. Moody's will remove the LD (limited default) designation in two days, change the PDR to Caa3, and withdraw all ratings. DUNE ENERGY: TPG Opportunities Discloses 13.7% Equity Stake ----------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, TPG Opportunities Advisors, Inc., disclosed that, as of Dec. 22, 2011, they beneficially own 5,303,846 shares of common stock of Dune Energy, Inc., representing 13.7% of the shares outstanding. The percentage is based on a total of approximately 38,600,000 shares of common stock outstanding on a post- restructuring basis, following the reverse stock split. A full- text copy of the Schedule 13G is available for free at: http://is.gd/w1kxKV About Dune Energy Dune Energy, Inc. (NYSE AMEX: DNE) -- http://www.duneenergy.com/ -- is an independent energy company based in Houston, Texas. Since May 2004, the Company has been engaged in the exploration, development, acquisition and exploitation of natural gas and crude oil properties, with interests along the Louisiana/Texas Gulf Coast. The Company's properties cover over 90,000 gross acres across 27 producing oil and natural gas fields. The Company reported a net loss of $75.53 million on $64.18 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $59.13 million on $52.24 million of revenue during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $271.17 million in total assets, $376.85 million in total liabilities, $156.56 million in redeemable convertible preferred stock, and a $262.24 million total stockholders' deficit. * * * As reported by the TCR on Dec. 27, 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on Dune Energy Inc. to 'SD' (selective default) from 'CC'. "The rating actions follow the company's announcement that it has completed the exchange offer for its 10.5% senior notes due 2012, which we consider a distressed exchange and tantamount to a default," said Standard & Poor's credit analyst Stephen Scovotti. "Holders of $297 million of principle amount of the senior secured notes exchanged their 10.5% senior secured notes for common stock, which in the aggregate constitute 97.0% of Dune's common stock post-restructuring, and approximately $49.5 million of newly issued floating rate senior secured notes due 2016. We consider the completion of such an exchange to be a distressed exchange and, as such, tantamount to a default under our criteria." In the Jan. 2, 2012, edition of the TCR, Moody's Investors Service revised Dune Energy, Inc.'s Probability of Default Rating (PDR) to Caa3/LD from Ca following the closing of the debt exchange offer of the company's 10.5% secured notes. Simultaneously, Moody's upgraded the Corporate Family Rating (CFR) to Caa3 reflecting Dune's less onerous post-exchange capital structure and affirmed the Ca rating on the secured notes. The revision of the PDR reflects Moody's view that the exchange transaction constitutes a distressed exchange. Moody's will remove the LD (limited default) designation in two days, change the PDR to Caa3, and withdraw all ratings. EDEN RESEARCH: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Eden Research, LLC 10 W. Airpark Vista Boulevard Dayton, NV 89403 Bankruptcy Case No.: 12-50044 Chapter 11 Petition Date: January 10, 2012 Court: U.S. Bankruptcy Court District of Nevada (Reno) Judge: Bruce T. Beesley Debtor's Counsel: Kevin A. Darby, Esq. DARBY LAW PRACTICE, LTD. 4777 Caughlin Parkway Reno, NV 89519 Tel: (775) 322-1237 Fax: (775) 996-7290 E-mail: kevin@darbylawpractice.com Scheduled Assets: $1,009,314 Scheduled Liabilities: $2,377,460 The Company?s list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nvb12-50044.pdf The petition was signed by Mary Mains, managing member/CEO. ENER1 INC: Maturity of Bzinfin Loan Agreement Extended to Jan. 20 ----------------------------------------------------------------- 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 Jan. 6, 2012, and effective as of Jan. 9, 2012, amending the terms of the $4,500,000 Loan Agreement, dated as of Nov. 16, 2011. Pursuant to the Third Amendment, the Parties extended the maturity date of the Loan Agreement from Jan. 9, 2012, to Jan. 20, 2012. A copy of the Amendment is available for free at http://is.gd/FRYp1A 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 nano-manufacturing. 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. EQUINE VISION: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Equine Vision, LLC 120 Spring Valley Road Valencia, PA 16059 Bankruptcy Case No.: 12-20107 Chapter 11 Petition Date: January 10, 2012 Court: U.S. Bankruptcy Court Western District of Pennsylvania (Pittsburgh) Debtor's Counsel: Brian C. Thompson, Esq. GRUDOWSKI & THOMPSON, P.C. 400 Penn Center Boulevard, Suite 306 Pittsburgh, PA 15235 Tel: (412) 823-8080 Fax: (412) 823-8686 E-mail: bthompson@grudowskithompson.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its largest unsecured creditors filed with the petition does not contain any entry. The petition was signed by Dyann Hermann, managing member. FOUR JAYS: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Four Jays Development, Inc. dba Steel Castles 37 Challedon Drive Candler, NC 28715 Bankruptcy Case No.: 12-10025 Chapter 11 Petition Date: January 11, 2012 Court: U.S. Bankruptcy Court Western District of North Carolina (Asheville) Judge: George R. Hodges Debtor's Counsel: David G. Gray, Esq. 81 Central Avenue Asheville, NC 28801 Tel: (828) 254-6315 E-mail: judyhj@bellsouth.net Scheduled Assets: $1,874,521 Scheduled Liabilities: $2,499,166 The Company?s list of its Nine largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/ncwb12-10025.pdf The petition was signed by John K. Jonas, president. EUROCLASS MOTORS: Plan Filing Period Extended Until Jan. 30 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico has granted Euroclass Motors, Inc.'s third motion for the extension of its exclusive periods to file and solicit acceptances of a filed plan through and including Jan. 30, 2012, and May 3, 2012, respectively. The extension will be the final extension of the Debtor's exclusive periods per order of the Bankruptcy Court. The Debtor will use the extension to reconcile claims filed in its Chapter 11 case and for the preparation of its audited financial statements. About Euroclass Motors San Juan, Puerto Rico-based Euroclass Motors, Inc. filed for Chapter 11 protection (Bankr. D. P.R. Case No. 11-05772) on July 6, 2011. Ramon Vega Diaz, president of the Debtor, filed the petition. The Chapter 11 case of Euroclass Motors, Inc., has been reassigned to the Hon. Mildred Caban Flores. The Debtor estimated assets between $1 million and $10 million and estimated debts between $10 million and $50 million. Charles Alfred Cuprill, at Charles A Cuprill, PSC Law Office, in San Juan, Puerto Rico, represents the Debtor in this case. Affiliate Autos Vega, Inc., is a car dealership engaged in the sales of new and used cars and trucks car parts, accessories and providing vehicle repair and maintenance, based in San Juan, Puerto Rico. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 11-05773) on July 6, 2011. The Debtor disclosed $22,959,296 in assets and $34,224,323 in liabilities. FAITH CHRISTIAN: No MORs Filed; U.S. Trustee Wants Dismissal ------------------------------------------------------------ Donald F. Walton, the U.S. Trustee for Region 21, asks the Bankruptcy Court for the dismissal or conversion of the Chapter 11 case of Faith Christian Family Church of Panama City Beach Inc. Jason H. Egan, Esq., representing the U.S. Trustee, informs the Court that since filing the Chapter 11 case, the Debtor has not filed a single monthly operating report. The Debtor's May, June, July, August, September, and October reports are past due at this time. Mr. Egan adds that the Debtor has not paid any quarterly fees to the United States Trustee since filing its chapter 11 case on May 24, 2011. Quarterly fees to the United States Trustee for the second quarter of 2011 were due on or before July 31, 2011. Quarterly fees for the third quarter of 2011 were due on or before Oct. 31, 2011. The quarterly fee balance outstanding for the second and third quarters of 2011 is estimated to be $1,300. However, without any financial information, the U.S. Trustee has no way to accurately calculate fees due. About Faith Christian Family Church Faith Christian Family Church of Panama City Beach Inc. operates the Faith Christian Family Church in Panama City Beach, Florida. The church filed for Chapter 11 bankruptcy protection (Bankr. N.D. Fla. Case No. 11-50288) on May 24, 2011. The Debtor disclosed $11,339,469 in assets, and $3,361,477 in debts as of the Chapter 11 filing. Charles M. Wynn, Esq., at Charles M. Wynn Law Offices, P.A., serves as the Debtor's bankruptcy counsel. FUEL DOCTOR: Enters Into Agency Agreement with Senibellacorp ------------------------------------------------------------ Fuel Doctor Holdings, Inc., on Jan. 1, 2012, entered into an agency agreement with Senibellacorp S.A., an unaffiliated company located in Ecuador pursuant to which the Agent will have the exclusive right and license to sell, market and distribute the Company's fuel saving component which reduces the utilization of fuel known as "Fuel Doctor" to potential clients in Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela. The exclusivity of the Agreement is subject to the Agent meeting certain minimum purchase orders requirements during the Term of the Agreement. The Agreement will have an initial term commencing on the Effective Date and ending on June 30, 2012, subject to the Agent's ability to extend the term through Dec. 16, 2012, provided that the Agent is then not in default under the Agreement. Notwithstanding the foregoing, the Agreement may be terminated (i) by either party upon a material breach of the Agreement (ii) by the Company upon a change of ownership of the Agent or (iii) by mutual written agreement of the parties. The Agent will have the option to extend the term for an additional five-year term upon delivery of written notice to Company no earlier than 180 days or later than 90 days prior to the expiration of the Term and the option will be based on satisfying, among other things, the the quantity order requirements. In consideration for the grant of the exclusive license, the Agent agreed to provide the Company with certain fees for each Product purchased by Agent. The fees payable to the Company will be for a period of 12 months after the Effective Date of the Agreement and thereafter the Company and Agent may mutually agree upon any price modification. In the event that the parties fail to agree upon such price modifications, the Agreement will be terminated immediately. A full-text copy of the Form 8-K is available at: http://is.gd/s3ROfX About Fuel Doctor Calabasas, Calif.-based Fuel Doctor Holdings, Inc., is the exclusive distributor for the United States and Canada of a fuel efficiency booster (the FD-47), which plugs into the lighter socket/power port of a vehicle and increases the vehicle's miles per gallon through the power conditioning of the vehicle's electrical systems. The Company has also developed, and plans on continuing to develop, certain related products. For the nine months ended Sept. 30, 2011, the Company has reported a net loss of $1.9 million on $811,576 of revenues, compared with a net loss of $1.7 million on $603,329 of revenues for the corresponding period last year. The Company had an accumulated deficit at Sept. 30, 2011, had a net loss and net cash used in operating activities for the interim period then ended. "While the Company is attempting to generate sufficient revenues, the Company's cash position may not be sufficient to support the Company's daily operations," the Company said in the filing. GARCIA ENTERPIRSES: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Garcia Enterprises, LP 741 Cesar Chavez Boulevard Calexico, CA 92231 Bankruptcy Case No.: 12-00206 Chapter 11 Petition Date: January 9, 2012 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: Gloria Martinez-Senftner, Esq. MARTINEZ BUSINESS & IMMIGRATION LAW GROUP, PC 2999 Douglas Boulevard, Suite 215 Roseville, CA 95661 Tel: (916) 797-9907 E-mail: gloria.senftner@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/casb12-00206.pdf The petition was signed by Andres Garcia, general & managing partner. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Andres Garcia & Estela Garcia -- 01/05/12 GELT PROPERTIES: Can Hire O'Kelly Ernst as Litigation Counsel ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Pennsylvania authorized Gelt Properties, LLC, and Gelt Financial Corporation to employ O'Kelly Ernst Bielli & Wallen, LLC, as their special counsel to represent their interests in the pending litigation by New Century Bank, d/b/a Customers Bank in the Philadelphia Court of Common Pleas. About Gelt Properties Based in Huntington Valley, Pennsylvania, Gelt Properties, LLC, and affiliate Gelt Financial Corporation borrow money from traditional lenders and make loans to commercial borrowers. They also acquire and manage real estate. Gelt Properties and Gelt Financial filed for (Bankr. E.D. Pa. Case Nos. 11-15826 and 11- 15826) on July 25, 2011. Judge Magdeline D. Coleman presides over the cases. Albert A. Ciardi, III, Esq., Jennifer E. Cranston, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., in Philadelphia, Pa., serve as the Debtors' bankruptcy counsel. The petitions were signed by Uri Shoham, the Debtors' chief financial officer. The Debtors' other professionals include: Eisenberg, Gold & Cettei P.C. as its special counsel to provide proper legal counsel to the Debtors with regard to defending against certain actions, Cohen and Forman as their special counsel to advise them upon all matters which may arise or which may be incident to the bankruptcy proceedings. Gelt Properties disclosed $4,727,090 in assets and $4,842,792 in liabilities as of the Chapter 11 filing. Its affiliate, Gelt Financial, has filed its schedules disclosing $20,340,725 in assets and $17,050,558 in liabilities as of the Chapter 11 filing. On Sept. 15, 2011, a committee of unsecured creditors was appointed. Schoff McCabe, P.C. represents the Committee. GELTECH SOLUTIONS: Deregisters Unsold Securities ------------------------------------------------ GelTech Solutions, Inc., filed with the U.S. Securities and Exchange Commission a Post-Effective Amendment No. 1 to a Registration Statement on Form S-1 to deregister the securities which were registered under the Registration Statement but were not sold. The selling shareholder may continue to sell as permitted by Rule 144. Based on the information provided by the selling shareholder named in the Registration Statement, the Company has calculated that of the 2,500,000 shares of common stock, 783,831 of the shares issued to the selling shareholder were not sold under the Registration Statement and 100,320 of the pro-rata shares were not issued by the Company to the selling shareholder. The Company therefore is filing this Post-Effective Amendment to deregister these shares. About GelTech Solutions Jupiter, Fla.-based GelTech Solutions. Inc. (OTC Bulletin Board: GLTC) -- http://www.GelTechsolutions.com/-- is a Delaware corporation organized in 2006. The Company creates innovative, Earth-friendly, cost-effective products that help industry, agriculture, and the general public accomplish environmental and safety goals, such as water conservation and the protection of lives, homes, and property from fires. The Company's current business model is focused on the following products: 1) FireIce(R), a fire suppression product, 2) SkinArmor(TM), an ointment used for protecting skin from direct flame and high temperatures, and 3) Soil2O(TM), a line of agricultural moisture retention products. The Company reported a net loss of $6.02 million on $221,804 of sales for the fiscal year ended June 30, 2011, compared with a net loss of $3.53 million on $566,240 of sales during the prior year. Salberg & Company, P.A., in Boca Raton, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has a net loss and net cash used in operating activities in 2011 of $6,026,641 and $3,636,213, respectively, and has an accumulated deficit of $15,669,827 at June 30, 2011. The Company's balance sheet at Sept. 30, 2011, showed $1.71 million in total assets, $1.92 million in total liabilities, and a $214,870 total stockholders' deficit. GENTA INC: Has 1.5 Billion Outstanding Common Shares ---------------------------------------------------- The number of outstanding shares of Genta Incorporated common stock par value $0.001 as of Jan. 13, 2011, is 1,529,054,259. 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. GLEN ROSE: Gastek CEO and 3 Others Named to Board of Directors -------------------------------------------------------------- Glen Rose Petroleum Corporation announced the appointment to the board of Mikhail Afendikov, Robert L.M. Hilliard, MD, Misbah Al Droubi, and Cliff M. West, Jr., each to serve until the next meeting of the shareholders of the Company. Mikhail Afendikov, 47, has been the CEO of Gastek LLC, and oil and gas exploration company in the Ukraine, since 2005 and, since 2005, has served as the CEO of Clarkson Investments LLC, a private equity Company. Since 1994, Mr. Afendikov has been a director of V.E.M.A. Shippin Co. Ltd. Mr. Afendikov received a medical degree from Donetsk State Medical University in Ukraine in 1987 and a doctorate degree in business administration from Kennedy-Western University in 1995. Robert L.M. Hilliard, MD, 46, currently is the Chief Operating Officer for United Healthcare Community Plan of Texas, a subsidiary of UnitedHealth Group, a position he has held since October 2011. From June 2009 until September 2011, Dr. Hilliard was Chief Medical Officer for Molina Healthcare of Texas, and from November 2007 until June 2009, Dr. Hilliard was the Regional Medical Director for Western Commercial Markets for Humana. Dr. Hilliard majored in social work from The University of Texas at Austin, a Medical Degree from the University of Texas Health Science Center at San Antonio, and his Masters in Business Administration from the J.L. Kellogg School of Management at Northwestern University. Misbah Al Droubi, 53, currently is the Chairman of BUIC Capital Management, a private equity company with offices in Spain, advising Middle Eastern and European investors with regard to diverse commercial investments, a position he has held since 2008. From 2005 until 2007, Mr. Al Droubi was the CEO of Hares Group, a private investment company. In 2005 he led the merger of Rudis, an oil exploration company in Ukraine and Cardinal Resources, a London based oil exploration company, and has continued to be a principal shareholder and director of Cardinal Resources. Cliff M. West, Jr., 72, was appointed by the Board of Directors to serve as a director and as the Executive Vice President and Chief Operating Officer of the Company. Since 2008, Mr. West has been and independent consultant to several oil and gas explorations companies in Texas, exploration and field operations. From 2004 until 2008, Mr. West was the Executive Vice President and COO of Cardinal Houston Resources, an oil and gas exploration company in Texas. During that period, Mr. West also served as the COO of Taurex Resources, plc and Condor Exploration, Inc., both oil and gas exploration companies in Texas. Mr. West also served as a director of each of those companies. Mr. West a B.A. in Geology in 1961 from the University of Southern Mississippi and his M.S. in Geology from West Virginia University in 1963. Mr. West is a member of the American Association of Petroleum Geologists, the Society of Exploration Geophysicists, and the Houston Geological Society and is a Registered Professional Geoscientist in the State of Texas and an American Certified Petroleum Geologist. About Glen Rose Glen Rose Petroleum Corporation presently is focused on the development of on-shore U.S. oil and gas assets. Glen Rose has five leases covering 10,500 gross acres in the Wardlaw Field and 5,400 gross acres in the Adamson Field, both located in Edwards County, TX. The Company's net loss for the 2011 fiscal year was $14,662,555, as compared to a restated net loss of $12,176,826 for the 2010 fiscal year. The Company's balance sheet at Sept. 30, 2011, showed $8.32 million in total assets, $17.69 million in total liabilities, and a $9.36 million total shareholders' deficit. The Company said it has incurred substantial losses from operations and it has negative operating cash flows which raises substantial doubt about its ability to continue as a going concern. GRAND RIVER: Hearing on Cash Collateral Access Scheduled for Today ------------------------------------------------------------------ The Hon. Daniel S. Opperman of the U.S. Bankruptcy Court for the Eastern District of Michigan will convene a hearing today, Jan. 18, 2012, at 11:00 a.m., to consider Grand River Infrastructure Inc.'s request for continued access to Fifth Third Bank's cash collateral. Previously, the Court approved a stipulation between the Debtor and Fifth Third, authorizing the Debtor to use the cash collateral until Jan. 19, 2012. Pursuant to the stipulation, among other things: 1. the Bank asserts that, as of Nov. 1, 2011, the Debtor owed $7,296,787; 2. the Bank asserts that it has a first-priority lien on, among other things, all of Debtor's cash collateral; 3. As adequate protection from any diminution in the value of any of the collateral, Bank will have: (a) a lien on the types and descriptions of property that were described in the prepetition loan documents, and to all proceeds and products thereof; and (b) an administrative priority equivalent in priority to a claim under Section 507(b) of the Code. The lien will be to the same extent and with the same priority as existed immediately prior to the Petition Date. About Grand River Infrastructure Grand River Infrastructure, Inc., based in Durand, Michigan, manufactures and sells concrete bridges and sewer products. Grand River filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 11-35206) on Nov. 14, 2011. Judge Daniel S. Opperman presides over the case. Lawyers at Lambert, Leser, Isackson, Cook & Giunta, P.C., serve as the Debtor's counsel. The Debtor disclosed $21,750,635 in assets and $9,289,690 in liabilities as of the Chapter 11 filing. The petition was signed by David C. Marsh, vice president. Daniel M. Mcdermott, the U.S. Trustee for Region 9, appointed five unsecured creditors to serve on the Official Committee of Unsecured Creditors. The Committee is represented by Erman, Teicher, Miller, Zucker & Freedman, P.C. GREAT PLAINS: Wants Receiver Ordered to Turn Over Assets -------------------------------------------------------- Great Plains Exploration LLC asks the Bankruptcy Court to compel a receiver to turn over the Debtors' assets. The Debtors argue that the receiver is the "custodian" being referred to in 11 U.S.C. Sec. 543 and therefore required to turn over all property and control to the Debtors. After filing of the petitions for Oz Gas and Great Plains, counsel for the Debtors communicated the filing to and spoke with counsel for Mark E. Dottore as receiver. Counsel for the Debtors followed that conversation with an e-mail to counsel for the Receiver, attaching copies the filing certificates for the two case and requested immediate turnover of the property and records of the two Debtors. Neither the Receiver nor his counsel have responded to the request for turnover. The Debtors contend that, without control of their property and records, they are unable to adequately prosecute their reorganization proceedings; cannot comply with the requirements of the Bankruptcy Code, Bankruptcy Rules and the Bankruptcy Court by filing accurate lists, schedules and Statements of Financial Affairs; and cannot fulfill their requirements to maintain and protect their property and deal appropriately with their creditors. The Debtors contend there is no excuse for the Receiver's failure to immediately deliver control of the records and assets to the Debtors other than to further the Receiver's influence in the matter and make it more difficult for the Debtors to regain control of their property and assets and to manage their businesses. On June 18, 2010, Oz Gas and Great Plains, along with other non- debtor parties including Richard M. Osborne and The Richard M. Osborne Trust, entered into a Forbearance Agreement with RBS Citizens, N.A., dba Charter One, which asserts $30 million in claims, pursuant to which RBS agreed to forbear from enforcing its rights and remedies under the loan agreements until July 1, 2011. RBS claims that the Forbearance Agreement expired on July 1, 2011, and the lines of credit have not been paid off. Great Plains said all required payments under the Forbearance Agreement were made as agreed. On Nov. 21, 2011, at the request of RBS, a receiver was appointed for all three corporate Debtors, in the United States District Court for the Northern District of Ohio at case No. 11-cv-2089- CAB. The Order Appointing Receiver was appealed to the Sixth Circuit Court of Appeals on Dec. 19, 2011 and the appeal is currently pending. About Great Plains Exploration, Oz Gas and John D. Oil Mentor, Ohio-based Great Plains Exploration LLC engaged primarily in the acquisition, development, production, exploration, and sale of oil and gas. Great Plains primarily sells its oil and gas products to gas marketing companies and refiners. Oz Gas, LTD. and Great Plains filed voluntary Chapter 11 petitions (Bankr. W.D. Pa. Case Nos. 12-10057 and 12-10059) on Jan. 11, 2012. John D. Oil and Gas Company filed a voluntary Chapter 11 petition (Bankr. W.D. Pa. Case No. 12-10063) on Jan. 13, 2012. Judge Thomas P. Agresti oversees the cases. Robert S. Bernstein, Esq., at Bernstein Law Firm P.C., serves as counsel to the Debtors. Each of Great Plains and Oz Gas estimated $10 million to $50 million in assets and debts. The petitions were signed by Richard M. Osborne, CEO. John D. Oil, also based in Mentor, Ohio, was in the business of acquiring, exploring, developing, and producing oil and natural gas in Northeast Ohio. It had 58 producing wells. Its balance sheet at Sept. 30, 2011, showed $8.12 million in total assets, $12.92 million in total liabilities and a $4.79 million total deficit. GREAT PLAINS: Hires Bernstein Law Firm as Chapter 11 Counsel ------------------------------------------------------------ Great Plains Exploration LLC seeks Court permission to hire Bernstein Law Firm, P.C., as its Chapter 11 counsel. The individuals presently designated to represent the Debtor and their hourly rates are: Professionals Hourly Rate ------------- ----------- Robert S. Bernstein, Esq. $465 Nicholas D. Krawec, Esq. $360 Kirk B. Burkley, Esq. $340 Peter J. Ashcroft, Esq. $250 Shawn Mcclure, Esq. $245 Kit F. Pettit, Esq. $270 Jodi L. Hause, Esq. $250 Lara E. Shipkovitz, Esq. $185 Maribeth Thomas $170 Susan Harding (Paralegal) $115 Tiffiany Waldschmidt (Administrative Assistant) $100 Robert S. Bernstein, Esq., attests that his firm has no connection with any creditors, or any other party-in-interest, or their attorneys. About Great Plains Exploration, Oz Gas and John D. Oil Mentor, Ohio-based Great Plains Exploration LLC engaged primarily in the acquisition, development, production, exploration, and sale of oil and gas. Great Plains primarily sells its oil and gas products to gas marketing companies and refiners. Oz Gas, LTD. and Great Plains filed voluntary Chapter 11 petitions (Bankr. W.D. Pa. Case Nos. 12-10057 and 12-10059) on Jan. 11, 2012. John D. Oil and Gas Company filed a voluntary Chapter 11 petition (Bankr. W.D. Pa. Case No. 12-10063) on Jan. 13, 2012. Judge Thomas P. Agresti oversees the cases. Each of Great Plains and Oz Gas estimated $10 million to $50 million in assets and debts. The petitions were signed by Richard M. Osborne, CEO. John D. Oil, also based in Mentor, Ohio, was in the business of acquiring, exploring, developing, and producing oil and natural gas in Northeast Ohio. It had 58 producing wells. Its balance sheet at Sept. 30, 2011, showed $8.12 million in total assets, $12.92 million in total liabilities and a $4.79 million total deficit. On June 18, 2010, Oz Gas and Great Plains, along with other non- debtor parties including Richard M. Osborne and The Richard M. Osborne Trust, entered into a Forbearance Agreement with RBS Citizens, N.A., dba Charter One, which asserts $30 million in claims, pursuant to which RBS agreed to forbear from enforcing its rights and remedies under the loan agreements until July 1, 2011. RBS claims that the Forbearance Agreement expired on July 1, 2011, and the lines of credit have not been paid off. Great Plains said all required payments under the Forbearance Agreement were made as agreed. On Nov. 21, 2011, at the request of RBS, a receiver was appointed for all three corporate Debtors, in the United States District Court for the Northern District of Ohio at case No. 11-cv-2089- CAB. District Judge Christopher A. Boyko issued an order appointing Mark E. Dottore as receiver. The Order Appointing Receiver was appealed to the Sixth Circuit Court of Appeals on Dec. 19, 2011 and the appeal is currently pending. GREAT PLAINS: Wants to Use RBS Citizens' Cash Collateral -------------------------------------------------------- Great Plains Exploration LLC seeks Bankruptcy Court authority to use revenues from the production, drilling, and sale of oil to fund general operations, including, wages, taxes, insurance payments and maintenance costs, while in Chapter 11 proceedings. The Debtor said the revenues constitute cash collateral of prepetition lender, RBS Citizens, N.A., dba Charter One. To protect RBS' interest, Great Plains proposes to grant RBS replacement liens. Great Plains has prepared a 13-week budget and said it projects neutral or positive cash flow during the period. In August 2007, Oz Gas and Great Plains executed and delivered to RBS a Revolving Credit Note for $25 million. Oz Gas and Great Plains granted RBS a security interest in their assets, including accounts; inventory; fixed collateral, including, but not limited to, machinery and equipment, producing wells, undeveloped oil and gas properties, and related sales contracts. In March 2008, John D. and Richard M. Osborne executed and delivered to RBS an Amended and Restated Revolving Credit Note for $9.5 million. John D. granted RBS a security interest in their assets. On June 18, 2010, Oz Gas and Great Plains, along with other non- debtor parties including Richard M. Osborne and The Richard M. Osborne Trust, entered into a Forbearance Agreement with RBS pursuant to which RBS agreed to forbear from enforcing its rights and remedies under the loan agreements until July 1, 2011. RBS claims that the Forbearance Agreement expired on July 1, 2011, and the lines of credit have not been paid off. Notwithstanding the expiration date, Great Plains said all required payments under the Forbearance Agreement were made as agreed. On Nov. 21, 2011, at the request of RBS, a receiver was appointed for all three corporate Debtors, in the United States District Court for the Northern District of Ohio at case No. 11-cv-2089- CAB. District Judge Christopher A. Boyko issued an order appointing Mark E. Dottore as receiver. The Order Appointing Receiver was appealed to the Sixth Circuit Court of Appeals on Dec. 19, 2011 and the appeal is currently pending. RBS claims that the total balance due and owing on the Oz/GP Note and the John D. Note is roughly $30 million. About Great Plains Exploration, Oz Gas and John D. Oil Mentor, Ohio-based Great Plains Exploration LLC engaged primarily in the acquisition, development, production, exploration, and sale of oil and gas. Great Plains primarily sells its oil and gas products to gas marketing companies and refiners. Oz Gas, LTD. and Great Plains filed voluntary Chapter 11 petitions (Bankr. W.D. Pa. Case Nos. 12-10057 and 12-10059) on Jan. 11, 2012. John D. Oil and Gas Company filed a voluntary Chapter 11 petition (Bankr. W.D. Pa. Case No. 12-10063) on Jan. 13, 2012. Judge Thomas P. Agresti oversees the cases. Robert S. Bernstein, Esq., at Bernstein Law Firm P.C., serves as counsel to the Debtors. Each of Great Plains and Oz Gas estimated $10 million to $50 million in assets and debts. The petitions were signed by Richard M. Osborne, CEO. John D. Oil, also based in Mentor, Ohio, was in the business of acquiring, exploring, developing, and producing oil and natural gas in Northeast Ohio. It had 58 producing wells. Its balance sheet at Sept. 30, 2011, showed $8.12 million in total assets, $12.92 million in total liabilities and a $4.79 million total deficit. GREAT PLAINS: Seeks to Borrow $300,000 From Managing Member ----------------------------------------------------------- Great Plains Exploration LLC seeks permission from the Bankruptcy Court to borrow $300,000 in DIP financing from Richard M. Osborne, its managing member. Great Plains noted that although it is seeking to continue using cash collateral, it cannot operate without additional cash. Great Plains said it will need the extra funding to remain current with its post-petition obligations, including equipment loans. Great Plains said the proceeds of the DIP Loan will be advanced to Great Plains as needed so that it may fund operating and capital costs for 13 weeks in accordance with a budget. Great Plains said Mr. Osborne has, in the past, infused significant amounts of capital on behalf of Great Plains to make various secured payments for obligations for which he is also personally guaranteed. The Osborne loan will bear interest at 2% and will be entitled to superpriority administrative expense priority, above all other expenses of administration -- other than quarterly fees of the United States Trustee and professional fees as allowed by the Court. About Great Plains Exploration, Oz Gas and John D. Oil Mentor, Ohio-based Great Plains Exploration LLC engaged primarily in the acquisition, development, production, exploration, and sale of oil and gas. Great Plains primarily sells its oil and gas products to gas marketing companies and refiners. Oz Gas, LTD. and Great Plains filed voluntary Chapter 11 petitions (Bankr. W.D. Pa. Case Nos. 12-10057 and 12-10059) on Jan. 11, 2012. John D. Oil and Gas Company filed a voluntary Chapter 11 petition (Bankr. W.D. Pa. Case No. 12-10063) on Jan. 13, 2012. Judge Thomas P. Agresti oversees the cases. Robert S. Bernstein, Esq., at Bernstein Law Firm P.C., serves as counsel to the Debtors. Each of Great Plains and Oz Gas estimated $10 million to $50 million in assets and debts. The petitions were signed by Richard M. Osborne, CEO. John D. Oil, also based in Mentor, Ohio, was in the business of acquiring, exploring, developing, and producing oil and natural gas in Northeast Ohio. It had 58 producing wells. Its balance sheet at Sept. 30, 2011, showed $8.12 million in total assets, $12.92 million in total liabilities and a $4.79 million total deficit. On June 18, 2010, Oz Gas and Great Plains, along with other non- debtor parties including Richard M. Osborne and The Richard M. Osborne Trust, entered into a Forbearance Agreement with RBS Citizens, N.A., dba Charter One, which asserts $30 million in claims, pursuant to which RBS agreed to forbear from enforcing its rights and remedies under the loan agreements until July 1, 2011. RBS claims that the Forbearance Agreement expired on July 1, 2011, and the lines of credit have not been paid off. Great Plains said all required payments under the Forbearance Agreement were made as agreed. On Nov. 21, 2011, at the request of RBS, a receiver was appointed for all three corporate Debtors, in the United States District Court for the Northern District of Ohio at case No. 11-cv-2089- CAB. District Judge Christopher A. Boyko issued an order appointing Mark E. Dottore as receiver. The Order Appointing Receiver was appealed to the Sixth Circuit Court of Appeals on Dec. 19, 2011 and the appeal is currently pending. GREEN PLANET: Board OKs SingerLewak as Accountants; CFO Resigns --------------------------------------------------------------- The board of directors and the audit committee of the board of directors of Green Planet Group, Inc., approved the engagement of SingerLewak LLP as the Company's new independent registered public accounting firm. During the Company's two most recent fiscal years ended March 31, 2011, and 2010, and through Jan. 12, 2012, neither the Company, nor anyone acting on its behalf, consulted with SingerLewak regarding (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, and SingerLewak did not provide either a written report or oral advice to the Company that SingerLewak concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing, or financial reporting issue; or (ii) any matter that was the subject of any disagreement, as defined in Item 304 (a)(1)(iv) of Regulation S-K and the related instructions, or a reportable event within the meaning set forth in Item 304(a)(1)(v) of Regulation S-K. On Jan. 3, 2012, James C. Marshall, chief financial officer of the Company, resigned from all his positions with the Company and all of its subsidiaries. The Company is considering candidates for the position of Chief Financial Officer, which candidates include existing employees of the Company. In the interim, the Company will rely on existing employees to assume Mr. Marshall's responsibilities. About Green Planet Scottsdale, Ariz.-based Green Planet Group, Inc., is a specialty energy conservation chemical company that produces and supplies technologies to the global transportation, industrial and consumer markets. These technologies include gasoline, oil and diesel additives for engines and other transportation-related fluids and industrial lubricants. The Company also operates an industrial staffing and employment business by providing employees to the light industrial, medical, aviation maintenance and IT industries on a national basis. The Company's balance sheet at Sept. 30, 2011, showed $3.9 million in total assets, $21.0 million in total liabilities, and a stockholders' deficit of $17.1 million. * * * As reported in the TCR on July 21, 2011, Semple, Marchal & Cooper, LLP, in Phoenix, Ariz., said that Green Planet Group's significant operating losses and negative working capital raise substantial doubt about its ability to continue as a going concern. GREENWICH SENTRY: Court Confirms GS & GSP First Amended Plans ------------------------------------------------------------- On Dec. 22, 2010, the Bankruptcy Court for the Southern District of New York confirmed the First Amended Chapter 11 Plan of Reorganization for Greenwich Sentry, L.P., and the First Amended Chapter 11 Plan for Greenwich Sentry Partners, L.P. Holders of BLMIS trustee claims (Class 3), limited partnership interests (Class 5) of both GS and GSP voted to accept the Plans in accordance with Section 1126(c) and (d) of the Bankruptcy Code. All objections received, if any, have been overruled in their entirety or withdrawn. A copy of the Order confirming the Plans is available for free at: http://bankrupt.com/misc/greenwichsentry.doc306.pdf As reported in the Troubled Company Reporter on Oct. 18, 2011, the central feature of the Greenwich Sentry Partners Plan is the BLMIS trustee settlement, wherein the Debtor believing, pursuant to its good faith business judgment, that avoidance action claims of the BLMIS trustee would be difficult to defend, has agreed, in sum, to allow the BLMIS trustee a claim and judgment in the amount of $5,985,000 and the BLMIS trustee has agreed to seek recovery of his claim only from certain specified assets of the Debtor, to allow the Debtor's customer claim against BLMIS in the amount of $2,011,304, to share recovery on certain litigation claims with the Debtor, and to provide for the distribution of the retained assets to creditors and limited partners free and clear of the BLMIS trustee claims. The BLMIS trustee agreed to support the Plans and Disclosure Statement and to vote his claim in favor of the Plans pursuant to the settlement agreements. BLMIS is a broker-dealer registered with the Securities and Exchange Commission, though customer accounts maintained by the Debtors at BLMIS. The Debtors have been informed that holder of not less than $60 million in limited partner interests in GS also favor the Court's approval of the Disclosure Statements and confirmation of the Plans. The Plans provide the Debtors' creditors with substantial recoveries and allows for recovery of equity. Full-text copies of the Disclosure Statements are available for free at http://ResearchArchives.com/t/s?7730 Derivative Claimants' Objection Resolved The Debtors reached a deal with derivative plaintiffs David I. Ferber SEP IRA and Frank E. Pierce and Frank E. Pierce IRA. The settlement resolves a renewed motion that seeks, essentially, authorization to prosecute the claims asserted in the derivative actions (Ferber SEP IRA v. Fairfield Greenwich Group, et al., No. 600469/2009 and Pierce, et al. v. Fairfield Greenwich Group, et al., No. 600498/2009) filed prior to the Petition Date, in 2009, by the Movants in the Supreme Court of the State of New York. The stipulation provides that subject to the Court's approval and in the event the Plans are confirmed, Walker, Truesdell, Roth & Associates, Inc., will be appointed as the Litigation Trustee of each Debtor's Litigation Trust under the Confirmation Order. Any stay of the Litigation Trustees' prosecution of any causes of action to be prosecuted by the Litigation Trustees pursuant to the Plans, will be deemed to be lifted as of the Effective Date. Ferber and Pierce are represented by: Robert A. Wallner, Esq. Kent A. Bronson, Esq. Kristi Stahnke McGregor, Esq. Charles Slidders, Esq. MILBERG LLP One Pennsylvania Plaza New York, NY 10119 Tel: (212) 594-5300 - and - Stephen A. Weiss, Esq. Parvin Aminolroaya, Esq. Christopher M. Van de Kieft, Esq. SEEGER WEISS LLP 77 Water Street New York, NY 10005 Tel: (212) 584-0700 About Greenwich Sentry Liquidators of Fairfield Sentry Limited, filed a Chapter 15 petition for Fairfield in June 2010 (Bankr. S.D.N.Y. Case No. 10-13164). In July 2010, Kenneth Krys and Christopher Stride of Krys & Associates (BVI) Limited, the liquidators of Fairfield Sentry Limited, Fairfield Sigma Limited and Fairfield Lambda Limited obtained cross-border recognition as foreign main proceedings by the U.S. Bankruptcy Court of the funds' insolvency proceedings, pending in the British Virgin Islands. The liquidators are represented in the U.S. by Brown Rudnick LLP. Fairfield Sentry Limited was the largest "feeder fund" to Bernard L. Madoff Investment Securities LLC, and invested approximately 95% of its assets with BLMIS. BLMIS was placed into liquidation proceedings in the United States in December 2008, after it was revealed that Bernard Madoff operated BLMIS as a Ponzi scheme for many years. Fairfield Sigma Limited and Fairfield Lambda Limited were both feeder funds of Fairfield Sentry Limited, and invested all of their assets with Fairfield Sentry Limited. Greenwich Sentry, L.P., and an affiliate filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-16229) on Nov. 19, 2010, hoping to settle lawsuits filed against it in connection with its investments with Bernard L. Madoff. Paul R. DeFilippo, Esq., at Wollmuth Maher & Deutsch LLP, in New York, represents the Debtors in the Chapter 11 cases. Bernard L. Madoff was charged by the Securities and Exchange Commission in December 2008 of orchestrating the largest Ponzi scheme in history, with losses topping US$50 billion. In March 2009, Mr. Madoff pleaded guilty to 11 federal crimes and admitted to turning his wealth management business into a Ponzi scheme. A trustee was appointed to liquidate and has been filing clawback suits against investors who withdrew phony profits from Mr. Madoff. On May 18, 2009, Irving H. Picard, the trustee liquidating the estate of Mr. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC, filed a lawsuit against Fairfield Sentry and Greenwich, seeking the return of $3.55 billion that Fairfield withdrew from Madoff during the period from 2002 to Madoff's arrest in December 2008. Since 1995, the Fairfield funds invested about $4.5 billion with BLMIS. Mr. Picard claims that Fairfield knew or should have known about the fraud give that it received from BLMIS unrealistically high and consistent annual returns of between 10% and 21% in contrast to the vastly larger fluctuations in the S&P 100 Index. In schedules filed with the Court, Greenwich Sentry disclosed $317,073,770 in total assets and $206,337,244 in total liabilities. H GRANADOS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: H Granados Communications, Inc. 20257 Prairie Street Chatsworth, CA 91311 Bankruptcy Case No.: 12-10197 Chapter 11 Petition Date: January 8, 2012 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Alan M. Ahart Debtor's Counsel: Elaine Nguyen, Esq. WEINTRAUB & SELTH APC 11766 Wilshire Boulevard, Suite 1170 Los Angeles, CA 90025 Tel: (310) 207-1494 Fax: (310) 442-0660 E-mail: elaine@wsrlaw.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/cacb12-10197.pdf The petition was signed by Henry Granados, president. HAYDEL PROPERTIES: Case Summary & Largest Unsecured Creditor ------------------------------------------------------------ Debtor: Haydel Properties, LP 211-B Eisenhower Drive Biloxi, MS 39531 Bankruptcy Case No.: 12-50048 Chapter 11 Petition Date: January 11, 2012 Court: U.S. Bankruptcy Court Southern District of Mississippi (Gulfport Divisional Office) Judge: Katharine M. Samson Debtor's Counsel: Patrick A. Sheehan, Esq. Post Office Drawer 8299 Biloxi, MS 39535 Tel: (228) 875-0572 Fax: (228) 875-0895 E-mail: pat@sheehanlawfirm.com - and ? Robert Gambrell, Esq. GAMBRELL & ASSOCIATES, PLLC 101 Ricky D. Britt Boulevard, Suite 3 Oxford, MS 38655 Tel: (662) 281-8800 Fax: (662) 202-1002 E-mail: rg@ms-bankruptcy.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Michael D. Haydel, manager of general partner. Debtor's List of Its Largest Unsecured Creditors contains only One entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Margaret A. Haydel Personal Loans $200,000 801 41st Avenue Gulfport, MS 39501 HOSTESS BRANDS: Meeting to Form Creditors Committee Today --------------------------------------------------------- Tracy Hope Davis, United States Trustee for Region 2, will hold an organizational meeting on Jan. 18, 2012, at 10:30 a.m. in the bankruptcy case of Hostess Brands Inc. The meeting will be held at: Millennium Broadway Hotel New York 145 W. 44th Street, Room 411 (4th Floor) New York, NY 10036 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. About Hostess Brands Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known for iconic brands such as Butternut, Ding Dongs, Dolly Madison, Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride, Twinkies and Wonder. Hostess has 36 bakeries, 565 distribution centers and 570 outlets in 49 states. Hostess filed for Chapter 11 bankruptcy protection early morning on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through 12-22056) in White Plains, New York. Debtor-affiliates that filed separate Chapter 11 petition are IBC Sales Corporation, IBC Trucking LLC, IBC Services LLC, Interstate Brands Corporation, and MCF Legacy Inc. Hostess Brands disclosed assets of $982 million and liabilities of $1.43 billion as of Dec. 10, 2011. Debt includes $860 million on four loan agreements. Trade suppliers are owed as much as $60 million. The bankruptcy filing was made two years after predecessors Interstate Bakeries Corp. and its affiliates emerged from bankruptcy (Bankr. W.D. Mo. Case No. 04-45814). Ripplewood Holding LLC, after providing $130 million to finance the plan, obtained control of IBC's business following the prior reorganization. Hostess Brands is privately held. The new owners pursued new Chapter 11 cases to escape from what they called "uncompetitive and unsustainable" union contracts, pension plans, and health benefit programs. In 2011, Hostess retained Houlihan Lokey to explore sales of its smaller assets and individual brands. Houlihan Lokey oversaw the sale of Mrs. Cubbison's to Sugar Foods Corporation for $12 million, but was unable to sell any of Hostess' core assets. Judge Robert D. Drain oversees the case. Hostess has hired Jones Day as bankruptcy counsel; Stinson Morrison Hecker LLP as general corporate counsel and conflicts counsel; Perella Weinberg Partners LP as investment bankers, and Kurtzman Carson Consultants LLC as administrative agent. Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry Wilson, the head of turnaround and restructuring firm MAEVA Advisors, are representing the Teamsters union. INNER CITY: Wants Until March 6 to Propose a Chapter 11 Plan ------------------------------------------------------------ Inner City Media Corporation, et al., ask the U.S. Bankruptcy Court for the Southern District of New York to extend their exclusive period to file and solicit acceptances for the proposed Chapter 11 plan until March 6, 2012, and May 5, respectively. As reported in the Troubled Company Reporter on Jan. 12, 2012, Judge Shelley C. Chapman entered a bridge order extending through Jan. 23, 2012, the exclusive periods by which the Debtors may file Chapter 11 plan and solicit acceptances for that plan. The Debtors, in their motion, relates that their request was in relation to their exploring various strategic alternatives, including a plan of reorganization and a sale of all or a portion of their assets. The Debtors noted that the relief requested in the sale motion includes certain deadlines that are scheduled to occur after the expiration of the Debtors' exclusive periods. For example, the proposed bid deadline is Feb. 13, 2012; the proposed date of the auction is Feb. 16; and the proposed sale hearing is Feb. 21. The Debtors request was meant to preserve all of their options in case the proposed sale cannot be consummated and there is a resulting need to proceed with a Chapter 11 plan. The Debtor set a Jan. 23 hearing at 2:00 p.m. (EDT), on the requested exclusivity extensions. Objections, if any, are due Jan. 18, at 4:00 p.m. About Inner City 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. INVESTICO DEVELOPMENT: Voluntary Chapter 11 Case Summary -------------------------------------------------------- Debtor: Investico Development Corporation 22580 Telegraph Road Southfield, MI 48033 Bankruptcy Case No.: 12-40376 Chapter 11 Petition Date: January 8, 2012 Court: U.S. Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Walter Shapero Debtor's Counsel: Robert N. Bassel, Esq. P.O. Box T Clinton, MI 49236 Tel: (248) 677-1234 Fax: (248) 369-4749 E-mail: bbassel@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Nadim Hakim, president. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- In re Trimark Development LLC 10-40876 01/13/10 JOHN D. OIL: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: John D. Oil and Gas Company fka Liberty Self-Stor, Inc. 8500 Station Street, Suite 345 Mentor, OH 44060 Bankruptcy Case No.: 12-10063 Chapter 11 Petition Date: January 13, 2012 Court: U.S. Bankruptcy Court Western District of Pennsylvania (Erie) Judge: Thomas P. Agresti Debtor's Counsel: Robert S. Bernstein, Esq. BERNSTEIN LAW FIRM, P.C. 2200 Gulf Tower Pittsburgh, PA 15219 Tel: (412) 456-8101 Fax: (412) 456-8251 E-mail: rbernstein@bernsteinlaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Richard M. Osborne, CEO. Affiliates that filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Great Plains Exploration, LLC 12-10058 01/11/12 Oz Gas, Ltd. 12-10057 01/11/12 Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Dworken & Bernstein, LPA Legal Services $95,592 60 South Park Pl Painesville, OH 44077 Geauga County Treasurer Taxes $43,428 211 Main Street, Room 1-A Chardon, OH 44024 Hahn Loser Legal Services $27,532 200 Public Square, Suite 2800 Cleveland, OH 44114 Lake County Treasurer Taxes $17,218 Kohrman Jackson & Krantz PLL Legal Services $16,786 Maloney + Novotny LLC Accounting Services $15,185 Pure Compliance Trade Debt $8,704 Charter One MC SB Trade Debt $5,757 RR Donnelly Receivables, Inc. Trade Debt $3,608 Registrar & Transfer Company Trade Debt $723 Tri-State Measurement Trade Debt $575 Deep Springs Trout Club Trade Debt $368 Teleco of Cleveland Trade Debt $329 Ashtabulha Co. Treasurer Taxes $273 ComDoc, Inc. Trade Debt $200 Ohio Treasurer of State Taxes $140 Cannon IV, Inc. Trade Debt $129 Portage County Treasurer Taxes $76 Paragon Business Forms Trade Debt $71 New York State Thruway Trade Debt $28 KOREA TECHNOLOGY: Startup DIP Loan Will Now be on Unsecured Basis ----------------------------------------------------------------- Debtors Korea Technology Industry America, Inc., Uintah Basin Resources, LLC, and Crown Asphalt Ridge, L.L.C., filed with the U.S. Bankruptcy court for the District of Utah on Dec. 23, 2011, an amended motion for approval of postpetition financing. The Debtors and their lender, Rutter & Wilbanks Corporation, have agreed that the loan of up to $5,000,000 contemplated by the Original Startup DIP Financing Motion will be on an unsecured, subordinated basis rather than on a superpriority, secured basis, except that $300,000 of the loan, which will be used to pay for costs of extracting tar sands (and thereby produce income) will be on a superpriority, secured basis. A copy of the Amended Startup DIP Loan Agreement is available for free at: http://bankrupt.com/misc/koreatechnology.doc240.pdf A summary of the terms of the Amended Startup DIP Facility is shown below: Borrowers: Korea Technology Industry, Inc., Uintah Basis Resources, LLC, and Crown Asphalt Ridge, L.L.C. Lender: Rutter & Wilbanks Corporation Regular Interest Rate: 5% Default Interest Rate: 10% Fees and expenses: No fees, but the Debtors will pay the expenses of the lender. Maturity: Earlier of Aug. 31, 2012, the effective date of a plan of reorganization, the termination of the Start up DIP loan agreement, or the payment in full of the obligations thereunder. Liens, collateral and No lien or collateral or priority priority: for Advances except that, to secure the Extraction Costs Advances (which can total no more than $300,000), the Lender will receive under section 364(c)(1), a superpriority administrative expense priority; under section 364(d), a fully perfected lien on materials that are extracted utilizing Extraction Cost Advances. Limitation on use The proceeds of the Startup DIP of proceeds: facility will be used only for costs associated with the completion of construction and commissioning of the hot water extraction and evaporation process portions of the Debtors' procession facility and operation of the "dry froth" circuit. A full-text copy of the Original Startup Financing Motion is available for free at: http://bankrupt.com/misc/KOREATECHNOLOGY_dipfinancing.pdf 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. LA VILLITA: Bankruptcy Court Confirms Reorganization Plan --------------------------------------------------------- On Dec. 15, 2011, U.S. Chief Bankruptcy Judge Ronald B. King confirmed La Villita Motor Inns, J.V.'s Second Amended Plan of Reorganization, as submitted Dec. 13, 2011. The Court had approved the Disclosure Statement for the First Amended Plan on Nov. 18, 2011. The Plan provides for the implementation of a global settlement among the Debtor, the Lender and the Guarantor providing for, among other things, the restructuring of the obligations owing to the Lender pursuant to the Lender Loan Documents (including the Loan Modification Agreement, Deed in Lieu of Foreclosure, Guaranty, Escrow Agreement, Closing Instruction Letter and Subordination Agreement provided in the Plan Supplement) and the incurrence of the Subordinated Loan (with Subordinated Creditor Westgrove Properties Ltd.) in order to fund the obligations under the Plan. Classification Summary The Plan segregates the various Claims against the Debtor and Interests in the Debtor into 5 Classes: Class 1. Priority Secured Tax Claims Class 2. Lender Secured Claim Class 3. General Unsecured Claims Class 4. Insider Claims Class 5. Equity Interests Classes 2, 3 and 4 are impaired. Classes 1 and 5 are unimpaired. On or before the Effective Date, the Fixed Rate Note to the Lender will be amended and restated pursuant to the Loan Modification Agreement which provides for, among other things, the bifurcation of the loans under the Fixed Rate Note into two loan tranches -- the Tranche A Loan in the principal amount of $7,182,269, following application of the Closing Date Principal Payment and the Tranche B Loan in the principal amount of $1,499,976. The Tranche A Loan will be paid $48,629 monthly up to and including the month immediately preceding the Jan. 1, 2015 Maturity Date. Any other amounts owing under the Tranche A Loan will be paid in accordance with the terms of the Note. Notwithstanding the foregoing, all outstanding principal, interest and other amounts under the Tranche A Loan will be due and payable on the Maturity Date. The outstanding principal balance of the Tranche B Loan, interest and all other amounts due under the Tranchr B Loan will be due and payable on the Maturity Date. In the event all outstanding amounts under the Tranche A Loan are paid in full on or before the Maturity Date, then the outstanding amounts under the Tranche B Loan will be deemed discharged and released. General Unsecured Claims will be paid in full, with simple interest of 7.5% p.a., over a period of three years from the Effective Date. Class 4 Insider Claims, constituted by accrued management fees in the amount of $3,014,088, will only be paid after payment in full of the Class 2 Lender Claim and Class 3 General Unsecured Claims and will be specifically subordinated to payment in full of the obligations owed to Lender under the Loan Modification Agreement. Equity Interests will retain their Equity Interests in the Debtor as they existed on the Petition Date. A copy of the Second Amended Plan of Reorganization is available for free at http://bankrupt.com/misc/lavillita.doc226.pdf About La Villita Motor Inns JV San Antonio, Texas-based La Villita Motor Inns JV is a joint venture, formed on or about April 14, 1980, that owns and operates a hotel located at 100 La Villita in San Antonio, Texas, known as the Riverwalk Plaza Hotel. It filed for Chapter 11 bankruptcy protection (Bankr. Case No. 10-54864) on Dec. 17, 2010. The Debtor estimated assets at $10 million to $50 million and debts at $1 million to $10 million. The Debtor's original bankruptcy counsel was Oppenheimer, Blend, Harrison & Tate, Inc. that subsequently merged with Strasburger & Price, L.L.P. ORIX filed a motion seeking to disqualify Debtor's counsel following the merger and the Bankruptcy Court granted ORIX's motion by order entered on Sept. 29, 2011. Hohmann, Taube & Summers, L.L.P., in Austin, Texas, replaced OBHT as counsel. LACK'S STORES: Plan Outline Ok'd; Feb. 1 Confirmation Hearing Set ----------------------------------------------------------------- The U.S. Bankruptcy Court will convene a hearing on Feb. 1, 2012, at 2 p.m. Central Time, to consider confirmation of the First Amended Joint Plan of Reorganization of Lack's Stores Incorporated, et al. Eligible creditors have until Jan. 23 at 5:00 p.m. Central Time to submit written objections to the Plan confirmation. Any objection must state the specific grounds for the objection. Replies, if any, to a confirmation objection must be filed with the Court so as to be received no later than Jan. 27, 2012. On Dec. 14, 2011, the Honorable Jeff Bohm approved the disclosure statement explaining the Plan and authorized the Debtors to solicit votes on the Plan. All objections to the Disclosure Statement not otherwise withdrawn, settled or resolved were overruled. For purposes of Plan solicitation, only holders of claims as of Dec. 7, 2011 are entitled to vote on the Plan. In order to be counted, ballots on the Plan must be received by the Balloting Agent no later than Jan. 23, at 5:00 p.m. Pacific Time. Ballots must be received by mail, overnight delivery, or hand delivery. As reported in the Troubled Company Reporter on Oct. 17, 2011, the Plan is designed to accomplish three primary objectives: (1) the collection of Lack's Customer Notes portfolio in the ordinary course of business; (2) the sale of remaining real and personal property that is not necessary to the continued collection of Customer Notes; and (3) the use of proceeds from collection of Customer Notes and sales of the Debtors' other remaining assets to satisfy Claims in accordance with the Plan. A full-text copy of the Disclosure Statement, dated Oct. 5, is available for free at http://ResearchArchives.com/t/s?772e About Lack's Stores Victoria, Texas-based Lack's Stores, Incorporated, is one of the largest, independently-owned retail furniture chains in the United States. Lack's Stores is a chain of 36 retail stores and operates under the trade styles Lacks and Lacks Home Furnishings. The Company sells a complete line of furnishings for the home including furniture, bedding, major appliances and home electronics. The stores are located in South, Central, and West Texas. Lack's Stores filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 10-60149) on Nov. 16, 2010 . Katherine D. Grissel, Esq., Michaela Christine Crocker, Esq., and Richard H. London, Esq., at Vinson & Elkins LLP, assist the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $100 million to $500 million. Affiliates Lack Properties, Inc., Lack's Furniture Centers, Inc., and Merchandise Acceptance Corporation filed separate Chapter 11 petitions. LEE ENTERPRISES: IRS Objects to Amended Prepack Plan ---------------------------------------------------- The United States, on behalf of the Internal Revenue Service, objects to the Amended Joint Prepackaged Plan of Reorganization for Lee Enterprises Inc. A hearing is set for Jan. 23 at 2:00 p.m. to consider confirmation of the prepack plan. The IRS has not filed any claims in the case but said it is still in the process of determining whether it might have claims against Lee. The IRS objects to the third party non-debtor limitation of liability, exculpation, injunction and release provisions set forth in the Plan. The IRS said the injunction provisions violate the Anti-Injunction Act, I.R.C. Sec. 7421(a). The IRS also said the Plan fails to preserve its setoff and recoupment rights. Lee's plan has been proposed to, among other things, amend and extend the maturity of the Debtors' prepetition credit facilities and the so-called PD LLC Notes as part of an overall effort to restructure the Debtors' balance sheet. The Plan was proposed prepetition and obtained the support of 100% of holders of claims related to the Prepetition Credit Agreement, totaling roughly $827.9 million, and 100% of the holders of PD LLC Notes claims, totaling roughly $133.8 million. Lee is a borrower under an Amended and Restated Credit Agreement, dated Dec. 21, 2005, with lenders Deutsche Bank Trust Company Americas, as Administrative Agent; Deutsche Bank Securities Inc. and SunTrust Capital Markets, Inc., as Joint Lead Arrangers, DBSI, as Book Running Manager, SunTrust Bank, as Syndication Agent, and Bank of America, N.A., The Bank of New York and The Bank of Tokyo- Mitsubishi, Ltd., Chicago Branch, as Co-Documentation Agents. The PD LLC Notes consist of notes issued by St. Louis Post Dispatch LLC, a joint venture formed in 2000 in connection with the transfer by Pulitzer Inc. and Herald Inc. of their interests in the assets and operations of the St. Louis Post-Dispatch and certain related businesses. Priority Non-Tax Claims, Other Secured Claims, The Herald Claim, General Unsecured Claims, and Intercompany Claims against, as well as Interests in, all of the Debtors will not be impaired by the Plan, and as a result votes on the Plan were not solicited from holders of those claims and interests. Under the Plan, Holders of Allowed Prepetition Credit Agreement Claims will receive a Pro Rata Share of the loans under a new first-lien term loan facility of up to $689.51 million in aggregate amount. Each Holder of Allowed Prepetition Credit Agreement Claims other than the proposed backstop lenders that has elected to convert up to the Holder's Maximum Exchange Amount of funded Prepetition Credit Agreement Claims will receive a Pro Rata Share of (i) loans under a new second-lien term loan facility to be entered into by the Debtors; and (ii) 15.0% of the common stock of Reorganized Lee Enterprises. Certain Holders of Prepetition Credit Agreement Claims, Goldman Sachs Lending Partners LLC, Mutual Quest Fund, Monarch Master Funding Ltd, Mudrick Distressed Opportunity Fund Global, LP and Blackwell Partners, LLC have committed to acquire up to a maximum amount of $166.25 million of loans under the New Second Lien Term Loan Facility. This commitment also includes the potential payment of up to $10 million in aggregate of Backstop Cash to Reorganized Lee Enterprises on the Effective Date to acquire such loans. Deutsche Bank Trust Company Americas, as administrative agent and collateral agent; and Deutsche Bank Securities Inc. and Goldman Sachs Lending Partners LLC as joint lead arrangers and joint book running managers, have syndicated a $40 million DIP credit facility. The DIP facility matures on the earliest to occur of: -- the later of (a) the six-month anniversary of the petition date, and (b) March 31, 2012; and -- the effective date of the Plan. Early in the case, the Debtors won interim permission to borrow half of the loan commitment pending a final hearing. The Bankruptcy Court approved the DIP facility on a final basis this month. On the Plan Effective Date, the Debtors have the option to convert the DIP Revolving Facility Agreement to a New First Lien Revolving Credit Facility. All obligations under the New First Lien Revolving Credit Facility will be secured by first priority liens on substantially all of the assets of the Reorganized Lee Debtors. Meanwhile, under the Plan, Holders of PD LLC Notes are to receive secured promissory notes -- New PD LLC Notes -- and not less than $5,145,000 cash to reduce the principal amount of PD LLC Notes. Lee Enterprises will also return to Pulitzer $2,692,000 in cash it received from Pulitzer in Nov. 9, 2011, pursuant to the Prepetition Credit Agreement to reduce the subordinated intercompany payable from Lee Enterprises to Pulitzer on a dollar for dollar basis. The Noteholders will also receive a non- refundable fee of $3,500,000 on the Plan Effective Date and payable in kind. The existing PD LLC Notes will be cancelled. The Debtors anticipate that the aggregate principal amount of the New PD LLC Notes at issuance will be $126,355,000. The New PD LLC Notes will, among other things, (i) mature on Dec. 31, 2015; (ii) bear interest at an initial fixed rate of 10.55%, increasing by 75 basis points on a yearly basis beginning Jan. 1, 2013; (iii) be secured by first priority security interests in and liens upon all of the assets of Pulitzer and its subsidiaries -- except Star Publishing Company, as to which the Noteholders will receive first priority security interests in and liens upon (a) assets of Star Publishing that are not related to TNI Partners and (b) the intercompany notes issued by Pulitzer in favor of Star Publishing. A full-text copy of Lee's Plan and Disclosure Statement is available at http://is.gd/8mYUUE Deutsche Bank Trust Company Americas, as DIP Agent and Prepetition Agent, is represented in the Debtors' cases by: Sandeep "Sandy" Qusba, Esq. Terry Sanders, Esq. SIMPSON THACHER & BARTLETT, LLP 425 Lexington Avenue New York, NY 10017 Tel: (212) 455-3760 E-mail: squsba@stblaw.com tsanders@stblaw.com The Initial Backstop Lenders are represented by: Matthew S. Barr, Esq. Brian Kinney, Esq. MILBANK, TWEED, HADLEY & McCLOY LLP One Chase Manhattan Plaza New York, NY 10005-1413 Telephone: (212) 530-5000 Facsimile: (212) 530-5219 E-mail: mbarr@milbank.com bkinney@milbank.com About Lee Enterprises Lee Enterprises, Inc., headquartered in Davenport, Iowa, publishes the St. Louis Post Dispatch and the Arizona Daily Star along with more than 40 other daily newspapers and about 300 weekly newspapers and specialty publications in 23 states. Revenue for the 12 months ended December 2010 was $780 million. The Company has 6,200 employees, with 4,650 working full-time. Lee Enterprises and certain of its affiliates filed for chapter 11 (Bankr. D. Del. Lead Case No. 11-13918) on Dec. 12, 2011. The Debtor selected Sidley Austin LLP and Young Conaway Stargatt & Taylor LLP as counsel; The Blackstone Group as Financial and Asset Management Consultant; and The Garden City Group Inc. as Claims, Noticing and Balloting Agent. The Debtor disclosed total assets of $1.15 billion and total liabilities of $1.25 billion at Sept. 25, 2011. LEHMAN BROTHERS: Dist. Judge to Rule on Whether JPM Suit Belongs ---------------------------------------------------------------- A New York district judge is "working on" a decision on whether Lehman Brothers Holdings Inc.'s $8.6 billion lawsuit against JPMorgan Chase & Co. belongs in district court, according to a January 3, 2011 report by Bloomberg News. U.S. District Judge Richard Sullivan told the two sides last month that a bankruptcy judge may be ready to rule soon on JPMorgan's move to dismiss the lawsuit. He would then decide whether the case raises non-bankruptcy issues that require a district judge, Bloomberg News reported. JPMorgan previously said the lawsuit should be handled by a district judge, and that a bankruptcy court cannot rule on LBHI's allegation that the bank caused monetary damage to the company in 2008. Citing a ruling in the Anna Nicole Smith case that described limits to the power of bankruptcy judges, the bank said a district judge must decide LBHI's common-law damage claims in its lawsuit. JPMorgan, the biggest U.S. bank, is fighting the lawsuit that alleges the bank helped cause LBHI's bankruptcy by demanding the $8.6 billion in collateral. JPMorgan served as LBHI's main clearing bank in the 2008 financial crisis, lending the company's brokerage more than $100 billion a day to settle trades and repurchase agreements. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: SEC Backs LBI in $3-Bil. Barclays Dispute ---------------------------------------------------------- The U.S. Securities and Exchange Commission sided with Lehman Brothers Holdings Inc.'s brokerage in a $3 billion dispute with Barclays Plc over assets, saying the brokerage did not have enough money to pay customers, according to a December 26, 2011 report by Bloomberg News. The agency said that as long as there is a shortfall, Barclays has only a conditional claim on as much as $1.3 billion reserved for customers, Bloomberg News reported. James Giddens, the trustee liquidating the brokerage, previously said he identified about a $5 billion shortfall in customer reserve accounts. The SIPA Trustee made the statement in support of his assertion that Barclays shouldn't be allowed to claim money from the defunct brokerage. "The commission wishes to ensure that assets held in the special reserve bank account for the exclusive benefit of customers as well as other assets required to be held for the benefit of customers are properly administered in the event a broker-dealer is liquidated," the SEC said. Lehman's past "compliance failures" -- including a failure to set aside enough securities for customers, miscoding of accounts and underreported credits -- caused the deficiency, the SIPA Trustee said, Bloomberg News cited. Last year, Barclays and the trustee both appealed U.S. Bankruptcy Judge James Peck's ruling that gave Barclays "only a conditional right" to $769 million in the reserve account unless the trustee had enough to pay customers. In addition to the $769 million, reserves include $507 million in margin for customer transactions at the Options Clearing Corp., the SEC said. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: 3 Law Firms Submit Tender in PSALM's Claim ----------------------------------------------------------- Three law firms have submitted offers in the re-bid process undertaken by the Philippine's Power Sector Assets and Liabilities Management Corporation on its foray to recover some $3.5-million claims with legally-insolvent Lehman Brothers, Myrna M. Velasco of The Manila Bulletin reported on Jan. 1. "There have been three bidders which submitted eligibility documents," PSALM president and chief executive officer Emmanuel R. Ledesma Jr. has disclosed, according to the report. The submission deadline was re-scheduled by the company last December 22; after a bidding failure in October, the report related. The PSALM chief executive has deferred naming the bidders, but he hinted that "all three are big local law firms with foreign partners," the Bulletin said. The CEO added that PSALM's bids and awards committee "has yet to finalize if the bidders will qualify." The announcement of the winning party will be second week of January 2012, according to the report. The cost to be recouped from Lehman Brothers Special Financing Inc. involved PSALM's principal only swap deal with the former, a hedging transaction which is likened to an insurance purchase which requires the company to pay an annual expense premium equivalent to 2.687-percent of the notional amount of $100 million for 19 years, the Bulletin explained. PSALM admitted that it already made two premium payments for the transaction. The approved budget for the legal consultant is P20 million, but Energy Secretary Rene D. Almendras previously indicated the actual cost may still go higher depending on the expenses to be incurred in the proceedings, the Bulletin related. In PSALM's tender notice, it emphasized that the biggest weight will be given to the "applicable experience of the firm and its associates/affiliates" -- this accounted for 50-percent of the criteria and rating system, the Bulletin reported. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Wins Approval of Settlement With Alston -------------------------------------------------------- Lehman Brothers Holdings Inc. obtained court approval to settle nearly $100 million of claims against the company and Lehman Brothers Special Financing Inc. The claims were filed by Elliot Associates and Elliott International following the termination of their derivatives deals with the Lehman units. Alston Investments and Ashton Investments purchased those claims in June of this year. Pursuant to the terms of the settlement, Alston's claims will be slashed by as much as 42% or $34.5 million. Meanwhile, Ashton's claims will be reduced by approximately 45% or $51.9 million. Alston will have an allowed claim of $24 million while the other investment firm will have an allowed claim of more than $32 million against each of the Lehman units. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Wins Approval of Settlement of $7.7BB Sasco Suit ----------------------------------------------------------------- Lehman Brothers Holdings Inc. obtained court approval to settle a $7.7 billion lawsuit filed by investors who bought mortgage- backed securities issued by Structured Asset Securities Corp. The deal calls for the settlement of the SASCO suit for a payment of $40 million. Of this, $31.7 million will be paid through LBHI's directors-and-officers liability insurance programs while the rest will be paid by the company. LBHI will also shoulder the payment of up to $1.7 million in connection with the implementation of the settlements of the SASCO lawsuit and three other cases filed in New York against the company's directors. The court order also authorized the payment of $3 million each to Federal Home Loan Bank of Boston and Stichting Pensioenfonds ABP by Lehman insurers. The payment serves as settlement of the lawsuits Federal Home and Stichting filed against SASCO's officials in connection with SASCO's issuance of mortgage-backed securities. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Committee Backs Monetization of Neuberger Stake ---------------------------------------------------------------- The Official Committee of Unsecured Creditors expressed support for court approval of Lehman Brothers Holdings Inc.'s motion to monetize its equity interests in Neuberger Berman Group LLC investment management business. In a court filing, the Creditors' Committee said the proposed deal between LBHI and Neuberger Berman will generate as much as $1.5 billion. It further said that the company will benefit from future increases in Neuberger Berman's value under the deal. LBHI also drew support from the ad hoc group of Lehman Brothers creditors. The group asked for approval of the motion after the company made changes to the terms of the proposed deal to improve its overall structure. The amendments provide for an additional 2.5% return on the preferred interests to the company and a reduction of the discount to be applied by the valuation agents when determining the purchase price of the common interests. A copy of the term sheet containing the amended terms of the proposed deal is available without charge at: http://bankrupt.com/misc/LBHI_NBGDealAmendments.pdf About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Underwriters Reach $417MM Deal in Class Suit ------------------------------------------------------------- Proposed settlements are to be approved by Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York. The proposed settlements are valued at $507 million, consisting of $417 million to be paid by underwriters and $90 million from former Lehman executives and officers, including former CEO Richard Fuld. Underwriters for Lehman Brothers Holdings Inc. agreed to pay $417 million to settle a suit in multidistrict litigation accusing the bank and its underwriters of misleading investors about risky subprime mortgage positions in their securities offerings, including retirement accounts. The underwriters include Bank of America, Wells Fargo, and Morgan Stanley. "We're basically in a salvage mode when you have a case like this," David Kessler, Esq., at Kessler Topaz Meltzer & Check, in Radnor, Pennsylvania, told Nate Raymond of The American Lawyer. "Anytime you get a half billion dollars in a case involving a bankrupt entity, it's a pretty good result." Mr. Kessler, according to The American Lawyer, said that settlements were the works with additional underwriters, and that the lawyers would most likely file court papers detailing the agreements later this week. The report also added that Max Berger, Esq., at Bernstein Litowitz Berger & Grossman, in New York, said the additional deals would bring the total settlements in the case so far to $517 million. Following this week's agreements, Kessler said that the focus of the case will now turn to non-settling defendants UBS Financial Services Inc. and Ernst & Young, the report related. UBS is facing different allegations than other underwriters because it underwrote principal protected notes, structured investment products that Kessler said were guaranteed regardless of Lehman's bankruptcy, the report pointed out. As for Ernst & Young, Anton Valukas's examiner's report concluded that the auditor had signed off on the Lehman's "materially misleading" financial statements, the report recalled. E&Y, represented by Miles Rutherberg of Latham & Watkins, has said it believes it "will ultimately prevail on the remaining claim." David Kessler may be reached at: David Kessler, Esq. KESSLER TOPAZ MELTZER & CHECK 280 King of Prussia Road Radnor, PA 19087 Tel: (610) 822-2226 Fax: (610) 667-7056 E-mail: dkessler@ktmc.com Max Berger may be reached at: Max Berger, Esq. BERNSTEIN LITOWITZ BERGER & GROSSMAN 1285 Avenue of the Americas New York, NY 10019 Tel: (212) 554-1403 Fax: (212) 554-1444 E-mail: mwb@blbglaw.com About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Asia Unit to Pay $1.5-Bil. to Creditors -------------------------------------------------------- Lehman Brothers Asia Holdings Ltd. is planning to pay a second interim dividend of $1.5 billion or 12% to creditors of the former funding entity of Lehman's Asia Pacific business, Bloomberg News reported. Liquidator Patrick Cowley of KPMG said the total dividends are estimated to be between 37.2% and 53.5%. The dividend will be paid early next year, according to the report. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS AUSTRALIA: Chapter 15 Case Summary -------------------------------------------------- Chapter 15 Petitioner: Marcus Ayres Chapter 15 Debtor: Lehman Brothers Australia Limited aka Grange Securities Limited MLC Centre, Level 46 19 Martin Place Sydney, New South Wales 2000 Australia Chapter 15 Case No.: 12-10063 Chapter 15 Petition Date: January 6, 2012 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Debtor?s Counsel: David R. Seligman, Esq. KIRKLAND & ELLIS LLP 300 North LaSalle Chicago, IL 60654 Tel: (312) 862-2463 Fax: (312) 862-2200 E-mail: david.seligman@kirkland.com Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $500,000,001 to $1 billion The Company did not file a list of creditors together with its petition. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Lehman Brothers Holdings Inc. 08-13555 09/15/08 LIBERATOR INC: Honored with Multiple AVN Awards Nominations ----------------------------------------------------------- Liberator, Inc., has been honored with multiple AVN Awards nominations, including a nomination for its Decor Series Heart Wedge products, as well as a potential corporate award for Best Sex Toy Company. Winners will be announced at the 29th annual AVN Awards ceremony held on Saturday, January 21 at The Joint inside the Hard Rock Hotel & Casino in Las Vegas, NV. "Liberator is thrilled to receive these nominations from AVN," said Louis Friedman, President and CEO of Liberator, Inc. "To have our hard work and dedication recognized in multiple award nominations is humbling and extremely gratifying. I am proud of our staff and everyone involved in helping support our corporate culture to achieve this level of awareness and success in the industry." Mr. Friedman continued, "We would also like to thank our retailers and loyal fans of Liberator products worldwide, because this wouldn't have been possible without them. We are proud of our success to date and look forward to the show." The AVN Awards is the official awards event of the adult entertainment industry. For nearly three decades the AVN Awards show has been the industry's biggest night and the award itself, the industry's highest honor. With a stylish red carpet pre-show and lavish star-studded ceremony, AVN celebrates outstanding achievements in the business and has been dubbed "the Oscars of adult" by Entertainment Weekly. To view the full list of AVN Awards Nominations, please visit: http://avnawards.avn.com/2012-nominees About Liberator Inc. Headquartered in Atlanta, Georgia, Liberator, Inc. is a provider of goods and information to consumers who believe that sensual pleasure and fulfillment are essential to a well-lived and healthy life. The information that the Company provides consists primarily of product demonstration videos that the Company shows on its websites and instructional DVD's that the Company sells. The Company reported a net loss of $801,252 on $17.32 million of net sales for the year ended June 30, 2011, compared with a net loss of $1.03 million on $11.07 million of net sales during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $6.64 million in total assets, $5.44 million in total liabilities, and $1.19 million in total stockholders' equity. Gruber & Company, LLC, in Lake Saint Louis, Missouri, noted that conditions exist which raise substantial doubt about the Company's ability to continue as a going concern unless it is able to generate sufficient cash flows to meet its financing requirements and attain profitable operations. LMW HOLDINGS: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: LMW Holdings, LLC 5 Laurawood Court Laurel, MS 39441 Bankruptcy Case No.: 12-50030 Chapter 11 Petition Date: January 9, 2012 Court: U.S. Bankruptcy Court Southern District of Mississippi (Gulfport Divisional Office) Judge: Katharine M. Samson Debtor's Counsel: Craig M. Geno, Esq. CRAIG M. GENO, PLLC 587 Highland Colony Parkway P.O. Box 3380 Ridgeland, MS 39157 Tel: (601) 427-0048 Fax: (601) 427-0050 E-mail: cmgeno@cmgenolaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Thomas J. McQuillan, member. Affiliates that simultaneously sought Chapter 11 protection: Debtor Case No. ------ -------- Pine Belt Delis, LLC 12-50031 New Gourmet Deli, LLC 12-50034 CLP, LLC 12-50035 New Direction Gourmet, Inc. 12-50036 MADISON 92ND: Plan Outline Hearing Scheduled for Jan. 31 -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on Jan. 31, 2012, at 10:00 a.m., to consider adequacy of the Disclosure Statement explaining Madison 92nd Street Associates, LLC's proposed Plan of Reorganization dated Dec. 14, 2011. Objections, if any, are due Jan. 24. As reported in the Troubled Company Reporter on Dec. 28, 2011, the Plan was proposed by Robert Gladstone, co-manager of the Debtor. According to the Disclosure Statement, the cornerstone of the Plan is the sale of the hotel and pursuit of causes of action. It is expected, but not guaranteed, that the net sale proceeds will be sufficient to pay all creditors in full. However, Courtyard Marriott Corporation, the manager of the hotel, may attempt to assert a large rejection claim. While the Proponent believes that no such claim would be allowed, it believes that any such claim will be below $500,000, and possibly zero. Moreover, the Proponent believes that Courtyard Marriott and affiliates will owe the Debtor for damages resulting from its malfeasance in the Courtyard Action, and in the Rejection Motion. However, in the event that the Court approves a larger rejection claim than the Debtor expects, the Plan will not be held up and can still confirm, as the Plan essentially represents a "pot plan", whereby the net proceeds of the sale of the hotel will be distributed to creditors in order of priority in accordance with the terms of the Plan. The Plan is intended to enable the Debtor to conduct the sale without the likelihood of a subsequent liquidation or the need for further financial reorganization. The Proponent believes that the Debtor will be able to perform its obligations under the Plan and meet its expenses after the Effective Date without further financial reorganization. Also, the Proponent believes that the Plan permits fair and equitable recoveries, while expediting the closing of the Chapter 11 Case. The Plan intends to pay creditors as follows: Class Estimated Percentage Recovery ----- of Allowed Claims ----------------- Class 2 GECC Secured Claims 95.8% Class 3 General Unsecured Claims Undetermined, but as high as 100% Class 4 Other Unsecured Claims Undetermined, but as high as 100% Class 5 Equity Interests Undetermined A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/MADISON_92ND_ds.pdf About Madison 92nd Madison 92nd Street Associates, LLC, owns real property improved by a hotel located at 410 East 92nd Street, New York, known as the Upper East Side Courtyard by Marriott. It filed for Chapter 11 bankruptcy protection as lender General Electric Capital Corp., owed $74 million, has scheduled a foreclosure sale for Aug. 24, 2011. The petition (Bankr. S.D.N.Y. Case No. 11-13917) was filed Aug. 16, 2011, before Judge Stuart M. Bernstein. J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, serves as the Debtor's counsel. It scheduled $84,471,069 in assets and $75,398,580 in debts. The petition was signed by Louis Taic, managing member of 92nd Hotel Associates, LLC and Jeffrey Kosow, managing member of JKNY, LLC, members of the Debtor. Courtyard Management Corporation, which manages and operates the hotel pursuant to a management agreement, is represented by Thomas R. Califano, Esq., and William M. Goldman, Esq., at DLA Piper LLP (US). The Bankruptcy Judge appointed an examiner to explore the best route to reorganization for the Debtor amid a rift between two investor groups. Thomas R. Slome, the examiner, tapped his firm, Meyer, Suozzi, English & Klein, P.C., as his counsel . MAJESTIC CAPITAL: Taps R&Q Quest as Investment Banker ----------------------------------------------------- Majestic Capital, Ltd., fdba CRM Holdings, Inc., asks for permission from the U.S. Bankruptcy Court for the Southern District of New York to employ R&Q Quest Management Services, Limited, as investment banker to market for sale Majestic Capital's 100% stock interest in Twin Bridges, Limited, a wholly owned, non debtor subsidiary of Majestic Capital, and/or the assets of Twin Bridges in accordance with the terms of the engagement letter dated Dec. 14, 2011. Pursuant to the terms of the Engagement Letter and in consideration of the services to be performed by Quest, the Debtors have agreed to pay Quest a fee upon consummation of a Transaction in the amount of the greater of $75,000 or 1.5% of the cash paid to the Debtors as part of a transaction. The engagement is for an initial period of six months, subject to renewal by the parties. Nicholas Frost, the President of Quest, attests that the firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. About Majestic Capital Headquartered in Poughkeepsie, New York City, Majestic Capital, Ltd., formerly known as CRM Holdings Ltd., has two wholly owned subsidiaries, Majestic USA and Twin Bridges, a Bermuda-based reinsurance company. Twin Bridges and Majestic Insurance, a downstream subsidiary of Majestic USA are the two principal insurance companies. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-36225) on April 29, 2011. Affiliates also sought Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 11-36221 - 11-36234) on April 29, 2011. The Debtors retained Murphy & King, P.C. as their general bankruptcy counsel and Genova & Malin as their local counsel. The Debtors tapped Michelman & Robinson, LLP, as special counsel, and Day Seckler, LLP, as accountants and financial advisors. The Debtor disclosed $436,191,000 in assets and $421,757,000 in liabilities as of Dec. 31, 2010. Bruce F. Smith, Esq., and Steven C. Reingold, Esq., at Jager Smith P.C., represent the Official Committee of Unsecured Creditors. The Committee has also tapped J.H. Cohn LLP as its financial advisors. MAKENA GREAT: Has Interim OK to Use Wells Fargo Cash Collateral --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has granted The Makena Great American Anza Company, LLC, interim authorization to use cash collateral of Wells Fargo Bank, N.A., and to pay critical expenses pursuant to a Budget. In addition to the items listed in the Budget, the Debtor and the Receiver are authorized to pay a $4,000 start-up management fee to Storage Etc. Property Management, LLC, pursuant to Section 6.1 of the Property Management Agreement. As adequate protection for any diminution in the value of its prepetition collateral, the Lender is granted Replacement Liens in the Prepetition Collateral, including, without limitation, cash collateral. The Replacement Liens will be in addition to the security interests of the Lender in the Prepetition Collateral and cash collateral. In addition, the Lender is granted a superpriority administrative claim under Section 507(b) of the Bankruptcy Code in the full amount allowable. A copy of the Budget is available for free at: http://bankrupt.com/misc/makenagreat.doc21.pdf The Makena Great American Anza Company, LLC -- http://www.makenacapital.net/ -- is a commercial shopping center developers in Southern California. Makena Great American leads the way in the acquisition and development of "A-Location" small commercial shopping centers and corner properties in Southern California. The Makena Great American Anza Company, LLC, filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 11-48549) on Dec. 1, 2011, in Chicago, Illinois. Gordon E. Gouveia, Esq., at Shaw Gussis Fishman Glantz Wolfson & Towbin, LLC, in Chicago, serve as counsel to the Debtor. The Debtor estimated up to $50,000,000 in assets and up to $50,000,000 in liabilities. MESTLER CONSTRUCTION: Case Summary & Creditors List --------------------------------------------------- Debtor: Mestler Construction, Inc. 351 Third Avenue, Suite #4 Chula Vista, CA 91910 Bankruptcy Case No.: 12-00212 Chapter 11 Petition Date: January 9, 2012 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Judge: Louise DeCarl Adler Debtor's Counsel: James E. Swingley, Esq. JAMES E. SWINGLEY ATTORNEY AT LAW 2320 5th Avenue, Suite 200 San Diego, CA 92101 Tel: (619) 233-1808 Fax: (619) 233-1534 E-mail: legctr@sbcglobal.net Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its 19 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/casb12-00212.pdf The petition was signed by Cheryl A. Mestler, president. METAL STORM: Settles Dispute with ASOF Over Convertible Security ---------------------------------------------------------------- Metal Storm Limited entered into an agreement with The Lind Partners, LLC, as manager of the Australia Special Opportunity Fund LP (ASOF), under which: * ASOF provided loans to the Company in various tranches totalling A$700,000; and * subject to obtaining Shareholder approval and the satisfaction or waiver of various other conditions, ASOF agreed to have the A$700,000 in loans, together with a further payment of A$200,000 cash, applied as consideration for the issue of a new type of convertible security to ASOF. Metal Storm obtained shareholder approval on Dec. 8, 2011, to issue the ASOF Convertible Security to ASOF. Metal Storm has received correspondence from ASOF under which ASOF has alleged that the Company has breached the Convertible Security Agreement and has reserved its rights in relation to the alleged breach. Metal Storm and ASOF have been in negotiations and have now reached an agreement to resolve the matter. The key details of the agreement are as follows: (1) The further payment of A$200,000 cash by ASOF under the Convertible Security Agreement is no longer required. (2) The Company will make early repayment of A$230,000 of the ASOF Loan. (3) The residual ASOF Loan will be exchanged for the ASOF Security, which will have a face value of A$700,000 (all other terms of the ASOF Security remain the same). (4) ASOF waives Metal Storm's breaches of the Convertible Security Agreement and the impact of those breaches on any related agreements with ASOF (including the Deed of Debt Forgiveness under which ASOF has agreed to forgive approximately A$1.53 million of the face value of Secured Notes it has agreed to purchase, subject to various conditions being satisfied or waived). (5) The Company will pay ASOF's reasonable legal expenses in relation to this matter. Through its holding of shares and the ASOF Security, as well as its proposed acquisition of Secured Notes with a face value of approximately A$13 million, ASOF continues to have a vested interest in the Company's future. Note holders and shareholders will have an opportunity to vote on the proposed changes to the terms of the Company's Secured Notes and Interest Bearing Notes at their respective meetings scheduled on Jan. 12, 2012. Shareholder and note holder approval of the proposed changes are key conditions on the acquisition of the Secured Notes by ASOF. After implementation of the agreement with ASOF, Metal Storm will have approximately $750,000 in cash reserves. The Company continues to actively seek to complete private placements for the Rights Issue shortfall and is working to acquire a larger scale investment. About Metal Storm Headquartered in Darra, Queensland, Australia, Metal Storm Limited is a defense technology company with offices in Australia and the United States. It specializes in the research, design, development and integration of projectile launching systems utilizing its "electronically initiated / stacked projectile" technology for use in the defense, homeland security, law enforcement and industrial markets. As reported by the TCR on July 25, 2011, PricewaterhouseCoopers, in Brisbane, Australia, expressed substantial doubt about Metal Storm's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency. The Company reported a net loss of A$8.94 million on A$3.35 million of revenue for 2010, compared with a net loss of A$11.31 million on A$1.11 million of revenue for 2009. The Company's balance sheet at Dec. 31, 2010, showed A$2.15 million in total assets, A$20.64 million in total liabilities, all current, and an equity deficit of A$18.49 million. METAL STORM: Proposes to Issue 41.6 Million Ordinary Shares ----------------------------------------------------------- Metal Storm Limited proposes to issue 41,666,667 ordinary shares pursuant to a convertible security agreement. The Company relies on case 1 in section 708A (5) of the Corporations Act 2001 (Act) in respect of the issue of the Shares. About Metal Storm Headquartered in Darra, Queensland, Australia, Metal Storm Limited is a defense technology company with offices in Australia and the United States. It specializes in the research, design, development and integration of projectile launching systems utilizing its "electronically initiated / stacked projectile" technology for use in the defense, homeland security, law enforcement and industrial markets. As reported by the TCR on July 25, 2011, PricewaterhouseCoopers, in Brisbane, Australia, expressed substantial doubt about Metal Storm's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency. The Company reported a net loss of A$8.94 million on A$3.35 million of revenue for 2010, compared with a net loss of A$11.31 million on A$1.11 million of revenue for 2009. The Company's balance sheet at Dec. 31, 2010, showed A$2.15 million in total assets, A$20.64 million in total liabilities, all current, and an equity deficit of A$18.49 million. METAL STORM: Maturity of Convertible Note Extended to March 2015 ---------------------------------------------------------------- Metal Storm Limited advised that Note Holders have approved the amendment to the Convertible Note Terms at the meeting of Note Holders held in Brisbane on Jan. 12, 2012. As a result of this resolution and the Note Holder resolution being approved, the maturity date of the notes has been extended to March 1, 2015, and the conversion price formula has been amended. The approval of Note Holders is subject to the Company obtaining Shareholder approval for a similar resolution to amend the Note Terms. About Metal Storm Headquartered in Darra, Queensland, Australia, Metal Storm Limited is a defense technology company with offices in Australia and the United States. It specializes in the research, design, development and integration of projectile launching systems utilizing its "electronically initiated / stacked projectile" technology for use in the defense, homeland security, law enforcement and industrial markets. As reported by the TCR on July 25, 2011, PricewaterhouseCoopers, in Brisbane, Australia, expressed substantial doubt about Metal Storm's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency. The Company reported a net loss of A$8.94 million on A$3.35 million of revenue for 2010, compared with a net loss of A$11.31 million on A$1.11 million of revenue for 2009. The Company's balance sheet at Dec. 31, 2010, showed A$2.15 million in total assets, A$20.64 million in total liabilities, all current, and an equity deficit of A$18.49 million. MOHEGAN TRIBAL: Files Mohegan Sun Statistical Report ---------------------------------------------------- The Mohegan Tribal Gaming Authority posted on its Web site its Slot Machine Statistical Report for Mohegan Sun containing statistics relating to slot handle, gross slot win, gross slot hold percentage, slot win contribution, free promotional slot play contribution and weighted average number of slot machines. The Slot Machine Statistical Report includes these statistics on a monthly basis for the three months ended Dec. 31, 2011, and the fiscal year ended Sept. 30, 2011. A copy of the Slot Machine Statistical Report is available at http://is.gd/I4djWs The Authority also posted on its Web site its Slot Machine Statistical Report for Mohegan Sun at Pocono Downs, a full-text copy of which is available at http://is.gd/2oOtuH About Mohegan Tribal Mohegan Tribal Gaming Authority -- http://www.mtga.com/-- is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 507-acre reservation situated in Southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on a 185-acre site on the Tribe's reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility located on a 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania. The Authority's balance sheet at Sept. 30, 2011, showed $2.2 billion in total assets, $2.0 billion in total liabilities and $198.7 million total capital. PricewaterhouseCoopers LLP, in Hartford, Connecticut, expressed substantial doubt about the Authority's ability to continue as a going concern. The independent auditors noted that of the Authority's total debt of $1.6 billion as of Sept. 30, 2011, $811.1 million matures within the next twelve months, including $535.0 million outstanding under the Authority's Bank Credit Facility which matures on March 9, 2012, and the Authority's $250.0 million 2002 8% Senior Subordinated Notes which mature on April 1, 2012. In addition, a substantial amount of the Authority's other outstanding indebtedness matures over the following three fiscal years. MOHEGAN TRIBAL: Incurs $6.8 Million Net Loss in Fiscal 2011 ----------------------------------------------------------- GreenMan Technologies, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $6.81 million on $1.76 million of net sales for the year ended Sept. 30, 2011, compared with a net loss of $5.64 million on $332,533 of net sales during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $3.78 million in total assets, $6.86 million in total liabilities, and a $3.07 million total stockholders' deficit. Schechter Dokken Kanter Andrews & Selcer, Ltd., in Minneapolis, Minnesota, noted in its report on the Company's 2011 financial results 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 that raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/A7QWzh 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. MT3 PARTNERS: Judge Beesley Orders Chapter 11 Case Dismissed ------------------------------------------------------------ Judge Bruce T. Beesley of the U.S. Bankruptcy Court for the District of Nevada entered an order dismissing the Chapter 11 case of MT3 Partners, LLC, after noting that no party appeared at the hearing to dismiss the Chapter 11 case nor filed an objection to the motion. As reported in the Troubled Company Reporter on Oct. 26, 2011, MT3 Partners requested for the dismissal, asserting that it has been and remains unable to formulate a plan of reorganization. Furthermore, as there are no unencumbered assets for unsecured creditors, conversion to a Chapter 7 would not be in the best interest of the creditors nor the estate. Reno, Nevada-based MT3 Partners, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-54172) on Oct. 22, 2010. Jeffrey L. Hartman, Esq., at Hartman & Hartman, in Reno, Nev., serves as counsel to the Debtor. The Debtor estimated its assets at $50 million to $100 million and debts at $10 million to $50 million. MOUNTAIN ENVIRONMENTAL: Case Summary & Creditors List ----------------------------------------------------- Debtor: Mountain Environmental, Inc. P.O. Box 472 Hugo, MN 55038 Bankruptcy Case No.: 12-30107 Chapter 11 Petition Date: January 11, 2012 Court: U.S. Bankruptcy Court District of Minnesota (St. Paul) Judge: Gregory F. Kishel Debtor's Counsel: Steven B. Nosek, Esq. STEVEN B. NOSEK, P.A. 2855 Anthony Lane S, Suite 201 St. Anthony, MN 55418 Tel: (612) 335-9171 Fax: (612) 789-2109 E-mail: snosek@visi.com Scheduled Assets: $2,361,209 Scheduled Liabilities: $2,796,521 The Company?s list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/mnb12-30107.pdf The petition was signed by Paul Montain, president. NATIVE WHOLESALE: Hires Fredericks Peebles as Special Counsel ------------------------------------------------------------- Native Wholesale Supply Company sought and obtained authorization from the U.S. Bankruptcy Court for the Western District of New York to employ Fredericks Peebles & Morgan LLP as its special counsel. About Native Wholesale Native Wholesale Supply Company is in the business of importing cigarettes and other tobacco products from Canada and selling them within the United States. It purchases the products from Grand River Enterprises Six Nations, Ltd., a Canadian corporation and the Debtor's only secured creditor. Native is an entity organized under the Sac and Fox Nation and has its principal place of business at 10955 Logan Road in Perrysburg, New York. Native filed for Chapter 11 bankruptcy (Bankr. W.D.N.Y. Case No. 11-14009) on Nov. 21, 2011. The Chapter 11 filing was triggered to resolve an ongoing dispute with the United States government regarding up to $43 million in assessments made by the government against the Debtor pursuant to the Fair and Equitable Tobacco Reform Act of 2004 and the Tobacco Transition Payment Program and to restructure the terms of payment of any obligation determined to be owing by the Debtor to the U.S. under the Disputed Assessment. The issues pertaining to the Disputed Assessment resulted in two lawsuits, subsequently consolidated, now pending in the Federal District Court. NBOR CORP: Wants Involuntary Case Dismissed for Bad Faith Filing ---------------------------------------------------------------- NBOR Corporation asks the U.S. Bankruptcy Court for the Northern District of California to dismiss involuntary Chapter 11 bankruptcy case filed against it. The Debtor explains that: -- the interests of creditors and the debtor would be better served by dismissal of the case; -- under Bankruptcy Code Section 303, the petitioning creditor fails to meet the requirements of Bankruptcy Code Section 303(b); -- the petitioning creditor did not file the petition in good faith; and -- the petitioning creditor's claim is contingent, subject to bona fide dispute as to amount, and less than the statutory minimum. The Debtor proposed a Feb. 1, 2012 hearing at 9:30 a.m. on the requested dismissal of the case. About NBOR Corporation Mako Strategies, Inc. filed for an involuntary chapter 11 petition (Bankr. N.D. Calif. Case No. 11-72855) against Oakland, California-based NBOR Corporation on Dec. 9, 2011. Bankruptcy Judge William J. Lafferty presides over the case. The petitioner is represented by Randy Michelson, Esq., at Michelson Law Group. NCOAT INC: Amends Plan of Orderly Liquidation --------------------------------------------- nCoat, Inc., and its affiliates have filed a filed an amended disclosure statement in support of its amended joint plan of reorganization dated Jan. 9, 2012, with the U.S. Bankruptcy Court for the Middle District of North Carolina. The Plan of orderly liquidation contemplates the distribution of the Net Sales Proceeds to pay all Allowed Administrative Expenses incurred through the Effective Date, Allowed Priority Unsecured Claims, and Allowed Secured Claims of the Debtors, with any remaining Net Sales Proceeds to be divided equally between the estates of the Debtors and, after payment of Allowed Administrative Expenses incurred after the Effective Date, distributed to unsecured creditors in each case in accordance with the priorities established by the Bankruptcy Code. The Debtors do not anticipate that any excess funds will be available from the subsidiary estates to pay claims of creditors of nCoat. If confirmed, a claims review process regarding Allowed Claims is anticipated to take approximately 180 days after the Confirmation Date. The Debtor anticipates that the Net Sales Proceeds will be the only funds available to satisfy costs of administration and, to the extent possible, the claims of creditors of the Debtors. Cash on hand in the Debtors' estates as of the Petition Date, along with any post-petition collections or recoveries of cash on hand, funds on deposit, and accounts receivable have been expended postpetition in payment of administrative expenses, including the Debtors' payroll and payroll taxes, operating expenses, and professional fees incurred to date. The Debtors do not know of any causes of action or claims which the Debtors could assert against a third party on behalf of the subsidiary estates and do not expect any recoveries pursuant to Bankruptcy Causes of Action or other litigation. However, the Committee has informed counsel for the Debtor that it intends to further investigate potential claims against insiders and third parties on behalf of nCoat which could result in recoveries for the benefit of creditors of nCoat. The Plan provides the opportunity for the Debtor and/or the Committee to pursue the causes of action if warranted. The estates of MCC and HPC have a claim against the estate of nTech arising out of the transfer of the Intellectual Property from MCC and HPC for no consideration in 2006 and 2007. However, the Plan provides for the waiver of the claims against nTech in consideration for the allocation of the Sale Proceeds as between the Debtors. A copy of the Amended Disclosure Statement is available for free at http://bankrupt.com/misc/NCOAT_dsamended.pdf As reported in the Troubled Company Reporter on Oct. 28, 2011, the Plan of orderly liquidation contemplates the distribution of the net sales proceeds ($671,184) to pay all allowed administrative expenses incurred through the effective date, allowed priority unsecured claims, and allowed secured claims (which remain unpaid) of the Debtors, with any remaining net sales proceeds to be divided equally between the estates of MCC, HPC and nTech and, after payment of allowed administrative expenses incurred after the Effective Date, distributed to unsecured creditors in each case in accordance with the priorities established by the Bankruptcy Code. The Debtors expect that there may be funds remaining in the nTech estate after the payment of all secured and unsecured creditors, which would then be distributed to secured and unsecured creditors of nCoat in accordance with the priorities established by the Bankruptcy Code. The Debtors do not anticipate that any excess funds will be available from the estates of MCC and HPC to pay claims of creditors of nCoat. The Allowed Unsecured Claims of nCoat of $788 million (Class 17) will be paid from the nCoat Available Cash (in full or pro rata depending upon the amount of nCoat Available Cash) in one or more distributions after the Effective Date upon the realization of nCoat Available Cash, and after payment in full of Allowed Administrative Expenses incurred by nCoat on or after the Effective Date. The Debtors has estimated that there will likely be no meaningful distribution on Class 17 Allowed Unsecured Claims. The existing equity interests (Class 18) will be extinguished and no distributions will be made on account of such old equity interests. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/ncoat.DS.dkt238.pdf About nCoat Inc. nCoat, Inc., filed for Chapter 11 protection on Aug. 16, 2010, (Bankr. M.D. N.C. Case No. 10-11512). John A. Northen, Esq., and Vicki L. Parrott, Esq., who have offices in Chapel Hill, North Carolina, represent the Debtor. The Debtor disclosed $1,375,746 in assets and $913,619,139 in debts. Affiliates High Performance Coatings, Inc. (Bankr. M.D.N.C. Case No. 10-11515); MCC, Inc., dba Jet Hot (Bankr. M.D. N.C. Case No. 10-11514); and nTech, Inc. (Bankr. M.D. N.C. Case No. 10-11513) file separate Chapter 11 petitions on Aug. 16, 2010. Julie B. Pape, Esq., and William B. Sullivan, Esq., at Womble Carlyle Sandridge & Rice, PLLC, in Winston-Salem, N.C., represent the Official Committee of Unsecured Creditors. On Sept. 28, 2010, the Bankruptcy Court approved the sale substantially all of the Debtors' assets to Fort Ashford Funds, LLC, subject to higher and better bids at an auction. No bids were received by the Debtors other than the initial bid of Fort Ashford. The sale closed on Oct. 1, 2010. After the Sale Date, the Debtors ceased all business operations, paid all undisputed secured claims, assumed and assigned certain executory contracts and unexpired leases to the designee of Fort Ashford, and retained two employees to close the books and records and wind up the business affairs of the Debtors. The Debtors, prior to the Sale Date, specialized in nanotechnology research, licensing, and the commercialization, distribution and application of nano-structured as well as multiple non-nano structured surface coatings. The Debtors' specialized coatings were used by the automotive, diesel engine, trucking, recreational vehicle, motorcycle, aerospace and oil and gas industries for heat management, corrosion resistance, friction reduction, bond strength and appearance. NEWPAGE CORP: Court Modifies Order Approving PwC Employment ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware revised its prior order authorizing Newpage Corporation, et al., to employ PricewaterhouseCoopers LLP as their independent auditor and accountants. The Court directed PwC to provide 10 business days' advance notice to the Debtors or the Official Committee of Unsecured Creditors before: (i) commencing work that is reasonably anticipated to cause the aggregate fees to PwC to exceed the fixed fee contemplated by the Engagement Letters by $100,000 or more; or (ii) increasing the hourly billable rates of individuals assigned to the engagement. The order will not prejudice or otherwise affect any of the rights of the Committee to challenge reasonableness of PwC's compensation and expense reimbursements, including, without limitation, pursuant to Sections 330 and 331 of the Bankruptcy Code. About NewPage Corp. Headquartered in Miamisburg, Ohio, NewPage Corporation was the leading producer of printing and specialty papers in North America, based on production capacity, with $3.6 billion in net sales for the year ended Dec. 31, 2010. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty papers. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications and direct mail advertising. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of roughly 4.1 million tons of paper, including roughly 2.9 million tons of coated paper, roughly 1.0 million tons of uncoated paper and roughly 200,000 tons of specialty paper. NewPage, along with affiliates, filed Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12804) on Sept. 7, 2011. Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M. Abelson, Esq., Dewey & Leboeuf LLP, in New York, serve as counsel. Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serves as co-counsel. Lazard Freres & Co. LLC is the investment banker, and FTI Consulting Inc. is the financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. In its balance sheet, the Debtors disclosed $3.4 billion in assets and $4.2 billion in total liabilities as of June 30, 2011. At an organizational meeting of creditors held on Sept. 21, 2011, the Committee selected Paul Hastings LLP as its bankruptcy counsel and Young Conaway Stargatt & Taylor, LLP to act as its Delaware and conflicts counsel. NewPage prevailed over most objections from the official creditors' committee and won agreement from the bankruptcy judge on final approval of $600 million in secured financing. Moody's Investors Service assigned a Ba2 rating to the $350 million first-out revolving debtor-in-possession credit facility and a B2 rating to the $250 million second-out debtor-in- possession term loan for NewPage. NORTHERN BERKSHIRE: Further Fine-Tunes Proposed Chapter 11 Plan --------------------------------------------------------------- Northern Berkshire Healthcare, Inc., et al., filed on Jan. 5, 2012, a Modified Second Amended Disclosure Statement to accompany the Debtors' Modified Second Amended Plan of Reorganization. Pursuant to Section 4.3 of the Plan, each of the Debtors, as Reorganized Debtors, will continue to exist on and after the Effective Date as a separate legal entity, with all the powers available to such legal entity under applicable law and pursuant to the applicable New Constituent Documents, and without prejudice to any right to alter or terminate such existence (whether by merger, sale, or otherwise) in accordance with such applicable law. If the Plan is confirmed by the Bankruptcy Court, the Holders of Allowed Claims related to the MDFA and MHEFA Notes will respectively receive, in full satisfaction and discharge of their Claims, new bonds secured by beneficial interests in the New MDFA Note, New MHEFA Note, and the ECF Notes (and, if NARH or NBH affiliates with another healthcare institution under certain conditions, the Affiliation Notes); the Holder of the Allowed VNA Hoosac Bank Secured Claim will receive proceeds of the sale of the VNA Building up to the Allowed amount of its Secured Claim; the Holders of Allowed Other Secured Claims unrelated to the MDFA and MHEFA Notes or the VNA Building will each receive, in full satisfaction and discharge of their Claims, a New Note secured by the same collateral or other collateral of like value except as otherwise provided in the Plan; and the Holders of Allowed PBGC Prepetition Claims, Allowed General Unsecured Claims, and the Allowed VNA Hoosac Bank Deficiency Claim will receive, in full satisfaction and discharge of their Claims, their Pro-Rata Share of the Post-Effective Trust Interests conditioned on the appropriate Classes voting to accept the Plan. All distributions under the Plan will be made on or as soon as practicable after the Effective Date, except as otherwise provided in the Plan. In addition, ACA has proposed the ACA Insurance Commutation, under which Commuting Bondholders under the MDFA Note may receive up to $5 million from ACA, over and above any recoveries to which Commuting Bondholders would be entitled from the Reorganized Debtors, which reduces the Allowed amount of the MDFA Note Claim and the amount of New MDFA Bonds the Commuting Bondholders will receive. A copy of the Modified Second Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/northernberkshire.doc438.pdf About Northern Berkshire Healthcare Northern Berkshire Healthcare, Inc. is a non-profit healthcare corporation in northern Berkshire County, Massachusetts. Together with its affiliates, Northern Berkshire Healthcare operates the North Adams Regional Hospital and a visiting nurse association and hospice in North Adams, Massachusetts. Northern Berkshire Healthcare, Inc., North Adams Regional Hospital, Inc., Visiting Nurse Association & Hospice of Northern Berkshire, Inc., Northern Berkshire Healthcare Physicians Group, Inc., and Northern Berkshire Realty, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Mass. Case No. 11-31114) on June 13, 2011, to address their overleveraged balance sheet and effect a reorganization of their operations. On the same day, Northern Berkshire Community Services, Inc., filed a petition for Chapter 7 relief also in the District of Massachusetts bankruptcy court. Judge Henry J. Boroff presides over the Debtors' cases. Steven T. Hoort, Esq., James A. Wright, III, Esq., Jonathan B. Lackow, Esq., and Matthew F. Burrows, Esq., at Ropes & Gray LLP, in Boston, Mass., serve as the Debtors' bankruptcy counsel. The Debtors' Financial Advisors are Carl Marks Advisory Group LLC. GCG Inc. serves as claims and noticing agent. Northern Berkshire disclosed $22,957,933 in assets and $53,379,652 in liabilities as of the Chapter 11 filing. The petition was signed by William F. Frado, Jr., president. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to the official unsecured creditors' committee in the Debtors' cases. The Committee tapped Duane Morris LLP as its counsel. NEVADA CANCER: Institute's Sale to UCSD Wins Court Approval ---------------------------------------------------------- Dow Jones' DBR Small Cap reports that Nevada Cancer Institute won bankruptcy court approval Thursday to sell its assets to the University of California San Diego Health System for $18 million. About Nevada Cancer Founded in 2002, Nevada Cancer Institute Holdings Co. is a nonprofit cancer institute committed to advancing the frontiers of knowledge of cancer through research, enabling affiliated physicians to provide world-class, research-linked clinical cancer services to patients, facilitating outreach and education programs aimed at raising cancer awareness, and reducing the burden of cancer on the people of Nevada. The Debtor has been designated by the State of Nevada as the State's official cancer institute, and is qualified as a nonprofit organization under section 501(c)(3) of the Internal Revenue Code. Nevada Cancer Institute filed for bankruptcy (Bankr. D. Nev. Case No. 11-28676) on Dec. 2, 2011, blaming mounting financial pressures arising from the protracted decline in the economy, decreases in medical reimbursement rates from managed care payor entities, increases in operational costs, decreases in the amount and availability of charitable donations, a reduction in research funding opportunities and increased competition. Lisa Madar signed the petition as secretary. Chief Bankruptcy Judge Mike K. Nakagawa oversees the case. The Debtor is represented by Thomas E. Patterson, Esq., Michael L. Tuchin, Esq., and Courtney E. Pozmantier, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP; and Robert M. Charles, Jr., Esq., and Dawn M. Cica, Esq., at Lewis and Roca LLP, as bankruptcy counsel. Kurtzman Carson Consultants LLC serves as the Debtor's claims and noticing agent. Alvarez & Marsal Healthcare Industry Group LLC serves as the Debtor's restructuring advisors. Lawyers at Pachulski Stang Ziehl & Jones LLP is representing the Official Committee of Unsecured Creditors appointed in the case. Counsel for Bank of America, N.A., as agent for the prepetition lenders, are Craig A. Barbarosh, Esq., and Karen B. Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP. The proposed buyer, The Regents of the University of California on behalf of its UC San Diego Health System, is represented by James W. Kapp, III, Esq., and Gary B. Gertler, Esq., at McDermott Will & Emery. NEVADA CANCER: Notifies Court of Counsel's Hourly Rates Changes --------------------------------------------------------------- Nevada Cancer Institute notifies the U.S. Bankruptcy Court for the District of Nevada that its proposed reorganization counsel Klee, Tuchin, Bogdanoff & Stern LLP, has changed its hourly rates, effective Jan. 1, 2012. The new rates for the professionals at KTB&S that are most likely to perform services in the case during the coming year are: Michael L. Tuchin, Esq. $950 Martin R. Barash, Esq. $725 Courtney E. Pozmantier, Esq. $510 Jonathan M. Weiss, Esq. $290* Shanda D. Dahl, paralegal $250* * The hourly rates for individuals noted with an asterisk have not changed. Their 2012 hourly rates are the same as their 2011 hourly rates. As reported in the Troubled Company Reporter on Dec. 28, 2011, previous rates of Klee professionals expected to be most active in the Debtor's case are: Professional Position Hourly Rate ------------ -------- ----------- Michael L. Tuchin Partner $895 Martin R. Barash Partner $715 Courtney E. Pozmantier Associate $490 Jonathan M. Weiss Associate $290 Shanda D. Dahl Paralegal $250 About Nevada Cancer Institute Founded in 2002, Nevada Cancer Institute Holdings Co. is a nonprofit cancer institute committed to advancing the frontiers of knowledge of cancer through research, enabling affiliated physicians to provide world-class, research-linked clinical cancer services to patients, facilitating outreach and education programs aimed at raising cancer awareness, and reducing the burden of cancer on the people of Nevada. The Debtor has been designated by the State of Nevada as the State's official cancer institute, and is qualified as a nonprofit organization under section 501(c)(3) of the Internal Revenue Code. Nevada Cancer Institute filed for bankruptcy (Bankr. D. Nev. Case No. 11-28676) on Dec. 2, 2011, blaming mounting financial pressures arising from the protracted decline in the economy, decreases in medical reimbursement rates from managed care payor entities, increases in operational costs, decreases in the amount and availability of charitable donations, a reduction in research funding opportunities and increased competition. The Debtor scheduled $129,240,202 in assets and $99,801,251 in liabilities. Lisa Madar signed the petition as secretary. Chief Bankruptcy Judge Mike K. Nakagawa oversees the case. The Debtor is represented by Robert M. Charles, Jr., Esq., and Dawn M. Cica, Esq., at Lewis and Roca LLP, as bankruptcy counsel. Kurtzman Carson Consultants LLC serves as the Debtor's claims and noticing agent. Alvarez & Marsal Healthcare Industry Group LLC serves as the Debtor's restructuring advisors. Lawyers at Pachulski Stang Ziehl & Jones LLP is representing the Official Committee of Unsecured Creditors appointed in the case. Counsel for Bank of America, N.A., as agent for the prepetition lenders, are Craig A. Barbarosh, Esq., and Karen B. Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP. The proposed buyer, The Regents of the University of California on behalf of its UC San Diego Health System, is represented by James W. Kapp, III, Esq., and Gary B. Gertler, Esq., at McDermott Will & Emery. NORTEL NETWORKS: Fraud Trial of Ex-Officials Set to Begin --------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that Canadian prosecutors dropped four of seven fraud-related charges against three former Nortel Networks Corp. executives, ahead of a criminal trial for the men beginning this week that will mark one of the final legal chapters in one of the country's biggest corporate flameouts. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- was once North America's largest communications equipment provider. It has sold most of the businesses while in bankruptcy. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway,Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009. Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. On May 28, 2009, at the request of the Administrators, the Commercial Court of Versailles, France ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in this Court for recognition of the English Proceedings as foreign main proceedings under chapter 15 of the Bankruptcy Code. Nortel Networks divested off key assets while in Chapter 11. Nortel has raised $3.2 billion by selling its operations as it prepares to wind up a two-year liquidation due to insolvency. In June 2011, Nortel added US$4.5 billion to its cash pile after agreeing to sell its remaining patent portfolio to Rockstar Bidco, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July 2011. Nortel Networks has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. OXLEY DEVELOPMENT: Motion to Dismiss or Convert Case Denied ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Georgia denied the motion to dismiss or convert Oxley Development Company, Inc.'s Chapter 11 case. As reported in the Troubled Company Reporter on Dec. 15, 2011, Donald F. Walton, U.S. Trustee for Region 21, asked the Court for the Southern District of Georgia to dismiss the Chapter 11 case of the Debtor, or in the alternative convert the case to one under Chapter 7. The U.S. Trustee stated that the Debtor has not provided certain information and documents requested by the U.S. Trustee, did not attend the Initial Debtor Interview scheduled by the U.S. Trustee, and did not attend the section 341 meeting of creditors scheduled by the Court, which circumstances constitute cause for conversion or dismissal pursuant to 11 U.S.C. Sections 1112(b)(4)(C) and (H). About Oxley Development Company, LLC Oxley Development Company, LLC, based in Kingsland, Georgia, filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 11-21338) on Oct. 31, 2011. In its petition, the Debtor scheduled assets of $125,700,000 and debts of $61,289,500. The petition was signed by Carl M. Drury, III, managing member. William S. Orange, III, Attorney at Law, is the Debtor's Chapter 11 counsel. PACIFIC SUNWEAR: To Close Hundreds of Stores -------------------------------------------- Tyrone Richardson at The Morning Call reports that Pacific Sunwear of California Inc., is shuttering hundreds of underperforming stores, including locations in Palmer Park and Phillipsburg malls, according to store workers. Pacific Sunwear announced in December that it would shutter roughly 200 stores over the next 14 months due to lackluster sales, the report says. The Morning Call relates that both Palmer Park and Phillipsburg stores are hosting liquidation sales. Store workers has said it wasn't known when the liquidation sales would end, the report relays. Pacific Sunwear of California, Inc. -- http://www.pacsun.com/-- is a specialty retailer rooted in the California lifestyle. The company sells casual apparel with a limited selection of accessories and footwear designed to meet the needs of teens and young adults. As of May 1, 2010, the company operated 758 PacSun stores and 125 PacSun Outlet stores for a total of 883 stores in 50 states and Puerto Rico. PARTNERS MUTUAL: A.M. Best Upgrades FSR From 'C++' -------------------------------------------------- A.M. Best Co. has removed from under review with positive implications and upgraded the financial strength rating (FSR) to A- (Excellent) from C++ (Marginal) and issuer credit rating (ICR) to "a-" from "b" of Partners Mutual Insurance Company (Partners) (Waukesha, WI). Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and ICRs of "a-" of Penn National Insurance (Penn National) and its members, Pennsylvania National Mutual Casualty Insurance Company (Penn Mutual), Penn National Security Insurance Company (both domiciled in Harrisburg, PA) and Founders Insurance Company (Lawrenceville, NJ). Additionally, A.M. Best affirmed the debt rating of "bbb" on $50 million 9.5% 30-year surplus notes, due 2034 issued by Penn Mutual. The outlook for all ratings is stable. Partners' ratings were upgraded following receipt of an executed affiliation agreement and confirmation of an approved reinsurance pooling agreement that includes Penn Mutual, Penn National Security and Partners as reinsurance pool members. Under the terms of the pooling agreement, these companies will participate in the consolidated results of their proportional share as follows: Penn Mutual (49%), Penn National Security (49%) and Partners (2%). The reinsurance pooling agreement provides the companies with increased diversification through additional spread of risk, closely aligns the results of their consolidated operations and provides Penn National with access to the territories in Wisconsin and Iowa through Partners independent agency base. Partners will continue to operate as a separate entity writing commercial and personal lines in Wisconsin and Iowa. Going forward, the affiliation will provide Partners with greater economies of scale and product enhancements. The affirmation of Penn National's ratings reflects the group's excellent risk-adjusted capitalization, generally sound operating performance and history of organic surplus growth achieved through retained earnings, which has improved leverage measures during the recent five-year period. The ratings also consider management's initiatives to eliminate the earnings drag of lead-based paint claims through reinsurance covering all existing and future claims up to a predetermined limit. Partially offsetting these positive rating factors are the significant deterioration in underwriting results in recent years reflective of adverse development on lead-based paint claims and significant weather-related losses, the resulting downturn in the group's pre-tax return on revenue measures, which trail the peer composite over the long term, and the geographic risk concentration that exposes results to the potential for weather- related claims. Despite these concerns, the outlook reflects A.M. Best's expectation that earnings should improve over the near term, given the elimination of lead-based paint claims, and that overall capitalization will remain fully supportive of management's conservative operating and investment philosophy. Factors that could result in upward movement of the group's ratings include a significant improvement in operating earnings and resulting return on revenue measures that can be sustained over a period of time. Accordingly, this would enhance the group's ability to generate surplus growth, which has been impacted in recent years due to operating losses. However, factors that could result in downward rating pressure over the near term include additional weakening in operating earnings due to deteriorating underwriting performance or a material increase in catastrophe losses beyond expectations, which weakens overall capitalization. PEAK BROADCASTING: Case Summary & 30 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Peak Broadcasting, LLC 1071 West Shaw Avenue Fresno, CA 93711 Bankruptcy Case No.: 12-10183 Chapter 11 Petition Date: January 10, 2012 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Debtor's Counsel: Michael Seidl, Esq. PACHULSKI, STANG, ZIEHL, YOUNG & JONES 919 N. Market Street, Suite 1600 P.O. Box 8705 Wilmington, DE 19899-8405 Tel: (302) 652-4100 Fax: (302) 652-4400 E-mail: mseidl@pszyj.com Estimated Assets: $50,000,001 to $100,000,000 Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by Todd Lawley, CEO and managing member. Affiliates that sought Chapter 11 protection on Jan. 11, 2012: Debtor Case No. ------ -------- Peak Broadcasting of Fresno, LLC 12-10184 Peak Broadcasting of Boise, LLC 12-10185 Peak Broadcasting of Fresno Licenses, LLC 12-10186 Peak Broadcasting of Boise Licenses, LLC 12-10187 Debtor's List of Its 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Stephen Investments, Inc. Rent $45,954 2141 Tuolumne, Suite A Fresno, CA 93721-1235 Arbitron Inc. Trade $38,318 P.O. Box 3228 Carol Stream, IL 60132-3228 Pacific Gas & Electric Utility $36,305 Box 997300 Sacramento, CA 95899-7300 Pacific Source Trade $28,742 Premiere Radio Networks Trade $18,103 Katz Radio Trade $17,143 ASCAP Trade $15,832 American Tower Corp. Rent $10,937 BMI Trade $9,634 Clear Channel Radio Sales Trade $8,036 SESAC Trade $6,619 CDW Direct Trade $6,018 Harry W. Morrison Foundation Trade $5,481 Sound Exchange Trade $5,163 Associated Press Trade $4,533 Idaho Power Utility $4,512 JMPH 26 Trade $4,100 Office Depot Trade $3,500 Marketron Broadcast Solutions Trade $2,053 ABM Janitorial Trade $1,995 Streamguys Inc. Trade $1,680 Platformic Trade $1,500 Madera District Fair Trade $1,250 Office Depot Trade $1,241 US Bancorp. Rent $1,183 Century Link Trade $998 Thyssenkrupp Elevator Trade $880 Automotive Rentals, Inc. Rent $831 Integra Telecom Trade $829 Radio Advertising Bureau Trade $763 PHOENIX LIFE: A.M. Best Affirms FSR at 'B+' ------------------------------------------- A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of B+ (Good) and issuer credit ratings (ICR) of "bbb-" of the core life insurance entities of The Phoenix Companies, Inc. (Phoenix) [NYSE: PNX], which includes Phoenix Life Insurance Company (Phoenix Life) and PHL Variable Insurance Company. In addition, A.M. Best has revised the outlook to positive from stable and affirmed the ICR of "bb-" of Phoenix, as well as all the debt ratings on the outstanding securities issued by the group. All companies are headquartered in Hartford, CT. (See below for a detailed listing of the debt ratings.) The revised outlook reflects the positive actions taken by Phoenix's management in improving the company's strategy, which includes stabilizing Phoenix's balance sheet while transforming its business profile and successfully executing new business growth. Specifically, A.M. Best notes Phoenix's increased capitalization levels, improved revenues and earnings, reduced surrender activity, good expense management and continued de- risking of its investment portfolio. During the last two years, the company has repositioned its annuity line by developing and offering fixed indexed annuities to the middle market. As a result, Phoenix has experienced meaningful top line revenue growth in 2011 with deposits projected to reach approximately $1.2 billion in 2012. Additionally, Phoenix has expanded its distribution capabilities within its Saybrus subsidiary, which is now expected to be profitable, while continuing to expand its relationships with independent marketing organizations. Surrenders in both the life and annuity businesses have trended positively on a sequential basis as a result of conservation efforts and are now closer to historical norms. Additionally, credit impairments are trending positively and are expected to trend towards long-term historical levels in 2012. A.M. Best believes the group continues to maintain relatively manageable financial leverage, which is expected to be roughly 27% at year-end 2011, with interest coverage approaching three times, and both are within A.M. Best guidelines for the organization's current ratings. In addition, Phoenix holds additional liquidity at the holding company to cover its fixed charges by two times. Somewhat offsetting these positive rating factors are the potential for a reversal of the aforementioned positive trends. A.M. Best notes that Phoenix's new business is concentrated around the highly competitive fixed indexed annuity line of business, which requires competitive pricing and ongoing risk management. Also, although surrender activity has slowed, the levels remain above industry norms and can potentially place additional liquidity stress on the company at a time when alternative sources are limited. Risks also remain in the investment portfolio based on the above-average size of below investment grade holdings relative to surplus as well as spread compression due to lower portfolio reinvestment yields. Moreover, although Phoenix Life's risk-adjusted capital level will benefit from a recent reinsurance transaction on a portion of its closed block, A.M. Best views the transaction as financial reinsurance and one-time in nature. Nevertheless, the group has been able to organically grow its regulatory capital ratios year-over-year through statutory operating earnings. A.M. Best believes Phoenix can benefit from additional administrative system consolidations in order to reduce general expenses and continue efforts to broaden the product line while maintaining overall improvements in persistency. Factors that could lead to positive rating actions include the continuation of positive growth trends in Phoenix's revenues and earnings leading to increased risk-adjusted capital levels, moderating trends in asset impairments, further expense improvements within policyholder administrative platforms and a broadening of Phoenix's business profile. Factors that could lead to negative rating actions include a return by Phoenix to higher levels of credit risk and investment impairments, increases in surrender activity or other liquidity events, significant decline in regulatory capital ratios or a reversal of the current trend in positive earnings. Concurrently, A.M. Best has affirmed the FSRs of B+ (Good) and the ICRs of "bbb-" of Phoenix Life and Annuity Company and American Phoenix Life and Reassurance Company. The outlook for both ratings is stable. These two Phoenix subsidiaries are immaterial to the group and are not writing new business. The following debt ratings have been affirmed: The Phoenix Companies, Inc.? -- "bb-" on $300 million 7.45% senior unsecured notes, due 2032 Phoenix Life Insurance Company? -- "bb" on $175 million 7.15% surplus notes, due 2034 PLUM TV: Court Sets Jan. 23 Hearing to Consider Auction Sale ------------------------------------------------------------ Plum TV, Inc., disclosed that that the U.S. Bankruptcy Court for the Southern District of New York has scheduled a hearing for Jan. 30, 2012, to consider auction procedures for the sale of the Company's assets under Section 363 of the Bankruptcy Code. Additionally, the Bankruptcy Court approved a $250,000 interim loan to the Company by a "stalking horse" bidder to be used to fund ongoing operations. If the Court-supervised auction procedures are approved at the January 30 hearing, the Company anticipates that an auction of the Company's assets will be held on March 1, 2012. Plum TV, Inc., is the owner of the Plum Network of local cable TV channels serving upscale and resort markets such as Martha's Vineyard and the Hamptons. Plum TV, Inc. fdba Plum TV LLC, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10017) on Jan. 3, 2011, in Manhattan. Adam L. Rosen, Esq., at Silverman Acampora LLP, in Jericho, New York, serves as counsel to the Debtor. The Debtor estimated up to $10 million in assets and up to $50 million in liabilities as of Chapter 11 filing. POWER EFFICIENCY: Seeks Stockholder Consent to Amend Pref. Stock ---------------------------------------------------------------- Power Efficiency Corporation sent a cover letter and form of consent to certain holders of its non-registered Series B, Series C-1 and Series D Convertible Preferred Stock, and to certain of its holders of common stock, disclosing the terms and conditions of a potential purchase of approximately $2,500,000 of its newly created Series E Convertible Preferred Stock, by a single existing shareholder of the Company, such preferred stock to be convertible into 250,000,000 shares of Company common stock. Those stockholders also received a copy of the non-binding letter of intent with respect to the Investment. The purpose of such correspondence is to seek consent of those stockholders to amend certain terms of the Designation of Rights, Preferences and Limitations relating to the Preferred Stock which might be impacted by the Investment. The preferred stock and underlying securities which may be issued in this Investment are not, and will not be, registered under the Securities Act of 1933, as amended, or state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. There can be no assurance that the consent of the requisite number of shares will be received to amend the Designations or that the Investment will be consummated. 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. PRESTIGE TELECOM: Has Until Feb. 14 to Submit Plan to Creditors --------------------------------------------------------------- The Canadian Press reports that insolvent Prestige Telecom Inc. said it has received a purchase offer from a company that wants to acquire its tax losses and been given more time to submit a proposal to its creditors in bankruptcy court. The company said the Quebec Superior Court has granted the delay of its proposal until Feb. 14, according to the report. The Canadian Press relates that Prestige said that it has received a purchase offer from a numbered company affiliated with Thornhill Investments Inc., which has already purchased the Montreal-based company's assets. Thornhill has offered to buy all of the company's outstanding shares for $500,000, less fees and costs, the report discloses. The company's shares last traded at three cents each but they'll likely be worthless once the bankruptcy proceeding is complete, the Canadian Press notes. According to the report, Prestige said it is reviewing the offer along with its financial and legal advisers. Any deal would be subject to approval of the court, the Canadian Press notes. About Prestige Telecom Headquartered in Quebec, Canada, Prestige Telecom Inc. was engaged in construction, engineering, equipment supply, refurbishing and installation of telecom wireless application and telephone exchanges and is also engaged in designing, mapping and laying cable for telecom and cable industries. In November 2011, Prestige Telecom, Inc., filed with the Office of the Superintendent of Bankruptcy a notice of intention to submit a proposal to its creditors pursuant to the Bankruptcy and Insolvency Act ( Canada ), appointing Raymond Chabot Inc. as trustee. Prestige has taken this action in connection with the receipt from its main lender and secured creditor, Canadian Imperial Bank of Commerce (CIBC), of a prior notice of its intention to enforce its secured rights over all or substantially all of the Company's assets in accordance with section 244 of the Bankruptcy and Insolvency Act. RCC SOUTH: SFI Belmont's Reorganization Plan Wins Court Approval ---------------------------------------------------------------- The Hon. Sarah S. Curley of the U.S. Bankruptcy Court for the District of Arizona confirmed SFI Belmont LLC's Plan of Reorganization dated Sept. 2, 2011, as non-adversely modified on Nov. 23, 2011. The Court considered at a Nov. 22, 2011, hearing the confirmation of two competing Chapter Plans as proposed by RCC South, LLC and SFI Belmont Plan. According to the Debtor's case docket, the transcript of the hearing or trial on Nov. 22 hearing will not be electronically available for 90 days from the date of filing of the transcript, pursuant to Judicial Conference Policy. Transcript access will be restricted until Feb. 21, 2012. During the period, copies of the transcript may be purchased from the transcription service AV Tranz. As reported in the TCR on Sept. 2, 2011, Lender SFI Belmont LLC, successor-in-interest to iStar FM Loans LLC, a secured creditor and party-in-interest in the bankruptcy case of RCC South, LLC, filed a disclosure statement to accompany its Plan of Reorganization of the Debtor, dated Sept. 2, 2011. Plan Summary The Lender Plan contemplates appointment of a Plan Administrator who will establish a Trust from which most of the Debtor's creditors, except those who own or are otherwise closely affiliated with the Debtor, will be paid in full. The Plan also contemplates a transfer of the Debtor's Property to Belmont, free and clear of all liens, claims, interests and encumbrances, except for Permitted Encumbrances, in satisfaction of $55,000,000 of the Belmont Secured Claim (Class 3) and in consideration for Belmont's agreement to waive its Unsecured Claim (Class 4), in the amount of approximately $22,000,000, against the Debtor only, and in consideration for Belmont providing the Belmont Plan Funding, which will be used to pay the Allowed Claims against the Debtor. A copy of the disclosure statement accompanying the Lender Plan is available for free at http://is.gd/ucJdhb The Debtor's Plan On Nov. 4, 2011, the Court approved the Debtor's Fourth Amended Disclosure Statement relating to Plan of Reorganization, as modified by the Court's Oct. 26, 2011, ruling. The Debtor related that the Plan is complete, inasmuch as it proposes a legally binding agreement by the Debtor, and an intelligent judgment cannot be made without reading it in full. With the exception of the Classes 1-A through 1-C, all the creditors of the Debtor are impaired under the terms of the Plan. The Secured Creditors are impaired because they will be subjected to different treatment than they had originally contracted for with the Debtor. The Unsecured Creditors will be impaired because they will be subject to different treatment than they originally contracted for. Thus, the Debtor will have numerous classes with the right to vote on its Plan of reorganization. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/RCCSOUTH_DS_fourthamendment.pdf About RCC South Scottsdale, Arizona-based RCC South, LLC, owns and operates two Class A" office buildings known as Phase III and Phase IV of the Raintree Corporate Center in Scottsdale Arizona. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 10-23475) on July 27, 2010. John J. Hebert, Esq., Philip R. Rudd, Esq., and Wesley D. Ray, Esq., at Polsenelli Shughart, P.C., in Phoenix, Ariz., assist the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $50 million to $100 million as of the Petition Date. REAL MEX: Gets Two-Month Extension to File Chapter 11 Plan ---------------------------------------------------------- Dow Jones' DBR Small Cap reports that Real Mex Restaurants Inc. won a two-month extension to file its creditor-repayment plan as the restaurant operator works to sell its assets in Chapter 11. About Real Mex Based in Cypress, California, Real Mex Restaurants, Inc., owns and operates restaurants, primarily through its major subsidiaries El Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco Restaurants, Inc. It has 178 restaurants, with 149 in California. There are also 30 franchised locations. It acquired Chevys Inc. for $90 million through confirmation of Chevy's Chapter 11 plan in 2004. Real Mex Restaurants and 16 of its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 11-13122 to 11-13138) on Oct. 4, 2011. Judge Brendan Linehan Shannon oversees the case. Judge Peter Walsh was initially assigned to the case. The Debtors are represented by Mark Shinderman, Esq., Fred Neufeld, Esq., and Haig M. Maghakian, Esq., at Milbank, Tweed, Hadley & McCloy LLP; and Laura Davis Jones, Esq., and Curtis A. Helm, Esq., at Pachulski Stang Ziehl & Jones LLP as counsel. The Debtors' financial advisors are Imperial Capital, LLC. The Debtors' claims, noticing, soliciting and balloting agent is Epiq Bankruptcy Solutions, LLC. Assets are $272.2 million while debt totals $250 million, according to the Chapter 11 petition. The petitions were signed by Richard P. Dutkiewiez, chief financial officer and executive vice president. Counsel to GE Capital Corp., the DIP Agent and the Prepetition First Lien Secured Agent, are Jeffrey G. Moran, Esq., and Peter P. Knight, Esq., at Latham & Watkins LLP; and Kurt F. Gwynne, Esq., at Reed Smith LLP as counsel. Counsel to the Prepetition Secured Second Lien Trustee are Mark F. Hebbeln, Esq., and Harold L. Kaplan, Esq., at Foley & Lardner LLP. Counsel to the Majority Prepetition Second Lien Secured Noteholders are Adam C. Harris, Esq., and David M. Hillman, Esq., at Schulte Roth & Zabel LLP; and Russell C. Silberglied, Esq., at Richards Layton & Finger. Z Capital Management LLC, which holds nearly 70% of the Opco term loan, is represented by Derek C. Abbott, Esq., and Chad A. Fights, Esq., at Morris Nichols Arsht & Tunnell LLP; and Lee R. Bogdanoff, Esq., and Whitman L. Holt, Esq., at Klee Tuchin Bogdanoff & Stern LLP. The Official Committee of Unsecured Creditors retained Kelley Drye & Warren LLP and Cole, Schotz, Meisel, Forman & Leonard P.A. as bankruptcy counsel. REGAL ENTERTAINMENT: Board Approves $1.8-Mil. Bonus to Executives ----------------------------------------------------------------- Pursuant to the previously disclosed Annual Executive Incentive Program of Regal Entertainment Group, and based upon the attainment of performance targets previously established by the Compensation Committee of the Board of Directors of the Company under the Incentive Program, on Jan. 11, 2012, the Company approved annual cash bonus awards for the following individuals: Name and Principal Positions Cash Bonus ---------------------------- ---------- Amy E. Miles, CEO $750,000 Gregory W. Dunn, President and COO $495,000 David H. Ownby, EVP and CFO $288,750 Peter B. Brandow, EVP, Gen. Counsel and Secretary $277,500 Based on its review of the Company's performance, on Jan. 11, 2012, the Committee recommended, and the Company's Board of Directors approved, an increase in the base salaries for fiscal 2012 for the following individuals: Fiscal Name and Principal Positions 2012 Salary ---------------------------- ----------- Amy E. Miles, CEO $800,000 Gregory W. Dunn, President and COO $515,000 David H. Ownby, EVP and CFO $420,000 Peter B. Brandow, EVP, Gen. Counsel and Secretary $395,000 About Mohegan Tribal Mohegan Tribal Gaming Authority -- http://www.mtga.com/-- is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 507-acre reservation situated in Southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on a 185-acre site on the Tribe's reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility located on a 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania. The Company's balance sheet at Sept. 30, 2011, showed $2.2 billion in total assets, $2.0 billion in total liabilities, and $198.7 million total capital. PricewaterhouseCoopers LLP, in Hartford, Connecticut, expressed substantial doubt about the Authority's ability to continue as a going concern. The independent auditors noted that of the Authority's total debt of $1.6 billion as of Sept. 30, 2011, $811.1 million matures within the next twelve months, including $535.0 million outstanding under the Authority's Bank Credit Facility which matures on March 9, 2012, and the Authority's $250.0 million 2002 8% Senior Subordinated Notes which mature on April 1, 2012. In addition, a substantial amount of the Authority's other outstanding indebtedness matures over the following three fiscal years. RIDGE PARK: Exclusive Solicitation Period Extended Until March 22 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California has extended Ridge Parks Office LLC's exclusive periods to file a Chapter 11 plan of reorganization and to solicit acceptances of a filed plan until Jan. 10, 2012, and March 22, 2012, respectively. 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. The petition was signed by Paul Garrett, president of Redhawk Communities, Inc. Ron Bender, Esq., and Krikor J. Meshefejian, Esq., at Levene, Neale, Bender, Yoo & Brill LLP, in Los Angeles, Calif., represent the Debtor as counsel. 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. S & V PROPERTY: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: S & V Property, LP 35 Donegal Avenue Claysville, PA 15323 Bankruptcy Case No.: 12-20121 Chapter 11 Petition Date: January 11, 2012 Court: U.S. Bankruptcy Court Western District of Pennsylvania (Pittsburgh) Judge: Jeffery A. Deller Debtor's Counsel: Christopher M. Frye, Esq. STEIDL & STEINBERG Gulf Tower, Suite 2830 707 Grant Street Pittsburgh, PA 15219 Tel: (412) 391-8000 Fax: (412) 391-0221 E-mail: chris.frye@steidl-steinberg.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its largest unsecured creditors filed with the petition does not contain any entry. The petition was signed by Amrik S. Virk, managing member of S & V, LLC, general partner. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Five Rivers Petroleum, LLC 11-25202 08/18/11 SEARS HOLDINGS: Vendors Seek Faster Payments -------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that several lenders who finance small suppliers to Sears and Kmart say they are pushing for more timely financial information and faster payment terms as they grow worried about the struggling retailer's future. But unlike CIT Group, they aren't pulling the plug. About Sears Holdings Hoffman Estates, Illinois-based Sears Holdings Corporation (Nasdaq: SHLD) -- http://www.searsholdings.com/-- is the nation's fourth largest broadline retailer with more than 4,000 full-line and specialty retail stores in the United States and Canada. Sears Holdings operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation. Sears Holdings also owns a 94% stake in Sears Canada and an 80.1% stake in Orchard Supply Hardware. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. It also has the Country Living collection, which is offered by Sears and Kmart. Kmart Corporation and 37 of its U.S. subsidiaries filed voluntary Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 02-02474) on Jan. 22, 2002. Kmart emerged from chapter 11 protection on May 6, 2003, pursuant to the terms of an Amended Joint Plan of Reorganization. John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, represented the retailer in its restructuring efforts. The Company's balance sheet showed $16,287,000,000 in assets and $10,348,000,000 in debts when it sought chapter 11 protection. Kmart bought Sears, Roebuck & Co., for $11 billion to create the third-largest U.S. retailer, behind Wal-Mart and Target, and generate $55 billion in annual revenues. Kmart completed its merger with Sears on March 24, 2005. Negative Outlook Standard & Poor's Ratings Services in January 2012 lowered its corporate credit rating on Hoffman Estates, Ill.-based Sears Holdings Corp. to 'CCC+' from 'B'. "We removed the rating from CreditWatch, where we had placed it with negative implications on Dec. 28, 2011. We are also lowering the short-term and commercial paper rating to 'C' from 'B-2'. The rating outlook is negative," S&P said. "The corporate credit rating reflects our projection that Sears' EBITDA will be negative in 2012, given our expectations for continued sales and margin pressure," said Standard & Poor's credit analyst Ana Lai. She added, "We further expect that liquidity could be constrained in 2013 absent a turnaround or substantial asset sales to fund operating losses." Moody's Investors Service in January 2012 lowered Sears Holdings Family and Probability of Default Ratings to B3 from B1. The outlook remains negative. At the same time Moody's affirmed Sears' Speculative Grade Liquidity Rating at SGL-2. The rating action reflects Moody's expectations that Sears will report a significant operating loss in fiscal 2011. Moody's added that the rating action also reflects the company's persistent negative trends in sales, which continue to significantly underperform peers. SEAVIEW PLACE: Plan Confirmed With Technical Changes ---------------------------------------------------- Judge K. Rodney May of U.S. Bankruptcy Court for the Middle District of Florida has approved the disclosure statement and confirmed the first amended joint plan of reorganization of Seaview Place Developers, Inc., et al. Judge May also approved several modifications to the Plan that constitute technical changes and/or changes with respect to particular Claims by agreement with the holders of such Claims, and do not affect a material adverse change in the treatment of any Claims or Interests. The changes to the Plan are: A. "BB&T Transferred Property" means the BB&T Collateral transferred to BB&T (or its designee or assignee) pursuant to this Plan in full satisfaction of settlement of the Allowed Amount of any and all Claims held by BB&T, which shall specifically include only the following Real Property and any and all related entitlements and Developer Rights: Seaview Place Condominiums (with 121 Condo Units, 53 garages, and 45 boat slips), Tract 40-A owned by Gulf, and Tract 40-B owned by Gulf. B. Class 6 ? Small Claims shall be eliminated (Sections 3.6 and 4.6). C. Section 9.2 shall be amended to include the additional condition precedent to the Effective Date of the Plan: 9.2.5 Transfer of BB&T Transferred Property. The Debtors and BB&T, or its designee, shall have effectuated the transfer of the BB&T Transferred Property, including but not limited to, the execution of deeds, bills of sale, assignments, no lien affidavits, and non-foreign status certifications and the recording of such documents required to be recorded by law. Under the first amended joint plan of reorganization, the property of the Debtors' estates, together with any property of the Debtors that is not Property of their estates and that is not specifically disposed of or abandoned pursuant to the Plan, will revest in the respective Debtors on the Effective Date (unless the Debtors are merged as a single surviving entity, as contemplated in the Plan). Thereafter, the Reorganized Debtors may operate their businesses and may use, mortgage, acquire, and dispose of such property free of any restrictions of the Bankruptcy Code, the Bankruptcy Rules, and the Bankruptcy Court. As of the Effective Date, all such Property of the Reorganized Debtors will be free and clear of all Liens, Claims, encumbrances, and Equity Interests of any kind, type, or nature whatsoever except as otherwise specifically provided under the Plan. The Debtors' continuing operations and payments to be made under the Plan will be funded by (1) any available Cash, (2) revenues generated from future sales of the Debtors' Retained Property, (3) through the surrender of a substantial portion of their Property in an amount determined by the Bankruptcy Court or by agreement among the affected Creditors, sufficient to satisfy all Allowed Secured Claims, and/or (4) through Exit Financing. With respect to BB&T's Class 3A Secured Claim, estimated at $21,690,694, in accordance with the Mediation Agreement, Seaview and Gulf will, on the Effective Date, transfer, assign, and convey to BB&T all of their respective right, title, and ownership in the Seaview Place Condominiums consisting of 121 condominium units, 53 garages, and 45 boat slips, Tract 40-A, and Tract 40-B, along with any corresponding Developer Rights and all entitlements related to the BB&T Transferred Property in full and complete satisfaction of BB&T's Claims against any and all of the Debtors and the Debtors affiliates released under the Mediation Agreement. BB&T will continue and ultimately dismiss with prejudice the State Litigation as to all parties; the Debtors, BB&T, the Principals, and J&M Development Concepts LLC, will execute mutual general releases; and as long as Debtors are in compliance with the terms of the Mediation Agreement, BB&T will not assert an Unsecured Claim against the Debtors and will vote in favor of and support Confirmation of the Plan. Class 3A is Impaired under the Plan and the Holder of the Class 3A Claim is entitled to vote to accept or reject the Plan. Allowed Class 5 General Unsecured Claims, estimated at $257,500, will receive either (Option 1) a Pro Rata Share of Cash available in the Sales Proceeds Pool as of each Distribution Date, which Distributions will, to the extent of funding in the Sales Proceeds Pool, commence on the first anniversary date following the Effective Date and thereafter on each consecutive anniversary date following the Effective Date (plus interest at an annual rate of 4%), until such Claims are fully paid, or (Option 2) alternatively, at the election of the Debtors and the Holder of such Claim, a lump sum payment of Cash equal to 75% of the Allowed Amount of such Class 5 Claim (without interest) within 45 days following the Effective Date, in full and complete satisfaction of such Claim. Class 5 is Impaired under the Plan and the Holder(s) of Class 5 Claims are entitled to vote to accept or reject the Plan. Unless all Equity Interests are canceled and extinguished (i) in order to satisfy the requirements of 11 U.S.C. Section 1129(b)(2)(B) or (ii) because the DIP Lender has elected to accept newly issued stock in the Reorganized Debtor(s), in full or partial satisfaction of its DIP Financing Claim then, on the Effective Date, each Holder of an Equity Interest in Class 7 will retain such Equity Interest and will retain, unaltered, the legal, equitable, and contractual rights to which such Equity Interest entitles such Holder. Class 7 is Impaired under the Plan and the Holder(s) of a Class 7 Equity Interest is not entitled to vote to accept or reject the Plan. A copy of the First Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/seaviewplace.firstamendedDS.pdf About Seaview Place Developers Clearwater Beach, Florida-based Seaview Place Developers, Inc., filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-05126) on March 22, 2011. In its schedules, the Debtor disclosed $24,769,500 in total assets and $15,147,744 in total debts as of the Petition Date. Affiliates Gulf Landings Development Corporation and Harbor Colony Development, Inc. filed separate petitions for Chapter 11 relief on July 8, 2011 (Bankr. M.D. Fla. Case No. 11-13101 and Case No. 11-13103). The Debtors are owned by J&M Developments LLC. Seaview developed, built, owns, and now manages a nine-story, waterfront high-rise condominium (the "Seaview Building") in Pasco County, Florida commonly known as Seaview Place. Gulf owns properties in Pasco and Pinellas Counties, including two tracts adjacent to Seaview Place. Harbor owns a vacant real property in Pasco County. The Debtors' cases are jointly administered under Lead Case 11- 05126. David S. Jennis, Esq., Chad S. Bowen, Suzy Tate, Esq., and Kathleen L DiSanto, Esq., at Jennis & Bowen, P.L., in Tampa, Florida, represent the Debtors as counsel. SHENGDATECH INC: Exclusive Filing Period Extended to March 19 ------------------------------------------------------------- Judge Bruce T. Beesley of the U.S. Bankruptcy Court for the District of Nevada has extended the period during which the Debtor has the exclusive right to file a Chapter 11 plan to and including March 19, 2012. The period during which the Debtor has the exclusive right to solicit votes to accept the plan is extended to and including June 14, 2012. In its request for the extension, the Debtor said it needs more time to investigate fraudulent actions of its prior management and to locate and secure its assets and the assets of its subsidiaries. The Debtor has worked with the Official Committee of Unsecured Creditors to develop a strategy to recover and safeguard its assets. According to the Debtor, the strategy needs to play out over the coming months in order for the Debtor to be in a position to propose a plan of reorganization. About ShengdaTech Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano precipitated calcium carbonate for the tire industry. ShengdaTech converts limestone into nano-precipitated calcium carbonate (NPCC) using its proprietary and patent-protected technology. NPCC products are increasingly used in tires, paper, paints, building materials, and other chemical products. In addition to its broad customer base in China, the Company currently exports to Singapore, Thailand, South Korea, Malaysia, India, Latvia and Italy. ShengdaTech sought Chapter 11 bankruptcy protection from creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno, Nevada, in the United States. The Shanghai-China based company said in its bankruptcy filing it would fire all of its officers and restructure to try to recover from an accounting scandal. The Company disclosed US$295.4 million in assets and US$180.9 million in debt as of Sept. 30, 2011. The Company's legal representative in its Chapter 11 case is Greenberg Traurig, LLP. On Aug. 23, 2011, the Court entered an interim order confirming the Board of Directors Special Committee's appointment of Michael Kang as the Debtor's chief restructuring officer. Alvarez & Marsal North America, LLC, is the Company's chief restructuring officer. As reported in the TCR on Sept. 7, 2011, the United States Trustee appointed AG Ofcon, LLC, The Bank of New York, Mellon (in its role as indenture trustee for bondholders), and Zazove Associates, LLC, to serve on the Official Committee of Unsecured Creditors of ShengdaTech, Inc. Hogan Lovells US serves as counsel for ShengdaTech's official committee of unsecured creditors. SHENGDATECH INC: Lease Decision Deadline Extended to March 16 ------------------------------------------------------------- Judge Bruce T. Beesley of the U.S. Bankruptcy Court for the District of Nevada has extended the deadline by which ShengdaTech, Inc., must assume or reject the unexpired leases of non-residential real property through and including March 16, 2012, without prejudice to the Debtor's right to seek a further extension of the deadline. About ShengdaTech Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano precipitated calcium carbonate for the tire industry. ShengdaTech converts limestone into nano-precipitated calcium carbonate (NPCC) using its proprietary and patent-protected technology. NPCC products are increasingly used in tires, paper, paints, building materials, and other chemical products. In addition to its broad customer base in China, the Company currently exports to Singapore, Thailand, South Korea, Malaysia, India, Latvia and Italy. ShengdaTech sought Chapter 11 bankruptcy protection from creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno, Nevada, in the United States. The Shanghai-China based company said in its bankruptcy filing it would fire all of its officers and restructure to try to recover from an accounting scandal. The Company disclosed US$295.4 million in assets and US$180.9 million in debt as of Sept. 30, 2011. The Company's legal representative in its Chapter 11 case is Greenberg Traurig, LLP. On Aug. 23, 2011, the Court entered an interim order confirming the Board of Directors Special Committee's appointment of Michael Kang as the Debtor's chief restructuring officer. Alvarez & Marsal North America, LLC, is the Company's chief restructuring officer. As reported in the TCR on Sept. 7, 2011, the United States Trustee appointed AG Ofcon, LLC, The Bank of New York, Mellon (in its role as indenture trustee for bondholders), and Zazove Associates, LLC, to serve on the Official Committee of Unsecured Creditors of ShengdaTech, Inc. Hogan Lovells US serves as counsel for ShengdaTech's official committee of unsecured creditors. SKINNY NUTRITIONAL: Robert Miller Named Chief Sales Officer ----------------------------------------------------------- Skinny Nutritional Corp.'s board of directors determined that Robert W. Miller, the Company's Chief Sales Officer, is a named executive officer of the Company. The Company had hired Mr. Miller as its Chief Sales Officer on Dec. 6, 2011. Pursuant to an employment letter agreed upon between the Company and Mr. Miller which provides for a three year term commencing on Nov. 1, 2011, Mr. Miller is entitled to receive: (i) a base salary of $150,000; (ii) an annual bonus based on performance to be set by the Company's CEO, with bonus levels of 20%, 40% and 50%; (iii) an award of 7,500,000 shares of restricted stock vesting over a three year period, provided that he remains employed by the Company at each such vesting date, with the first tranche vesting on the date approved by the Board; (iv) car allowance of $1,000 per month; and (v) a severance entitlement of 6 months base salary if he is terminated without cause following the first anniversary of the commencement of his employment. Issuances of Unregistered Securities Skinny Nutritional, in October 2011, entered into a consulting agreement with a brand marketing firm. As partial compensation for the services to be provided under the consulting agreement, the Company agreed to issue to the consultant 704,225 shares of common stock and agreed to issue the consultant additional shares of Common Stock in the event that the Company approves additional work by the consultant under the terms of the consulting agreement. In addition, the consultant will also be entitled to monthly cash fees in consideration for its services in accordance with the terms of the agreement. In November 2011, the Company entered into a consulting agreement with an investor relations firm. As partial compensation for the services to be provided under the consulting agreement, the Company agreed to issue to the consultant a maximum of 2,400,000 shares of common stock, with 800,000 shares issuable immediately and an additional 800,000 shares issuable upon the four month and eight month anniversary dates of the engagement agreement, provided that the agreement has not been terminated. In addition, the consultant will also be entitled to monthly cash fees in consideration for its services in accordance with the terms of the agreement. On Jan. 9, 2012, the Company granted 2,000,000 shares of restricted stock to Michael Zuckerman, a non-employee director, in consideration of his performance of services as a director. In addition, on Jan. 9, 2012, the Company granted Mr. Craig Fortin, the Company's Director of Operations, a restricted stock award of 2,120,000 shares in consideration of his services on behalf of the Company. The issuance of the foregoing securities were exempt from registration under the Securities Act of 1933, as amended, under Section 4(2) thereof inasmuch as the acquirers represented to the Company that they were accredited investors and the securities were issued without any form of general solicitation or general advertising. On Jan. 9, 2012, the Company's board of directors approved the accelerated vesting of an aggregate of 3,575,000 options previously granted by the Company under its 2009 Equity Incentive Compensation Plan, including an aggregate of 1,500,000 options held by each of the Company's Chief Executive Officer and Chief Financial Officer. In addition, on that date the Company's board of directors further approved the issuance of a total of 2,860,000 restricted shares of common stock to certain employees, including the Company's Chief Executive Officer and Chief Financial Officer, subject to the execution by the Company and the covered employees of agreements consenting to the cancellation of certain common stock purchase options in consideration of the receipt of the award of restricted shares of common stock. The total number of options covered by this arrangement is 3,575,000 employee stock options which were previously granted by the Company under its 2009 Equity Incentive Compensation Plan. Of this amount, each of the Company's Chief Executive Officer and Chief Financial Officer hold 1,500,000 options. Upon consummation of this arrangement, each of the Company's Chief Executive Officer and its Chief Financial Officer would receive 1,200,000 restricted shares of common stock in consideration of the surrender of 1,500,000 options. About Skinny Nutritional Bala Cynwyd, Pa.-based Skinny Nutritional Corp. (OTC BB: SKNY.OB) -- http://www.SkinnyWater.com/-- has developed and is marketing a line of enhanced waters, all branded with the name "Skinny Water" that are marketed and distributed primarily to calorie and weight conscious consumers. The Company reported a net loss of $6.91 million on $6.92 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $7.30 million on $4.14 million of net revenue during the prior year. The Company also reported a net loss of $5.86 million on $5.18 million of net revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $5.39 million on $5.91 million of net revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $3.22 million in total assets, $3.58 million in total liabilities, all current, and a $366,271 stockholders' deficit. As reported by the TCR on April 25, 2011, Marcum, LLP, in Bala Cynwyd, Pennsylvania, 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 had a working capital deficiency of $3,517,280, an accumulated deficit of $37,827,090, stockholders' deficit of $2,658,043 and no cash on hand. The Company had net losses of $6,914,269 and $7,305,831 for the years ended Dec. 31, 2010 and 2009, respectively. Additionally, the Company is currently in arrears under its obligation for the purchase of trademarks. Under the agreement, the seller of the trademarks may choose to exercise their legal rights against the Company's assets, which includes the trademarks. SNOKIST GROWERS: Court OKs Bailey & Busey as Counsel ---------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Washington authorized Snokist Growers to employ Bailey & Busey PLLC as its counsel. The Debtor will pay the firm based on the firm's customary hourly rates: Roger W. Bailey, Esq. $225 Joshua J. Busey, Esq. $200 Legal Assistants $60 About Snokist Growers Yakima, Washington-based Snokist Growers -- http://www.snokist.com/-- is a century-old cooperative of fruit growers. Snokist provides fresh and processed pears, apples, cherries, plums, and nectarines. Snokist Growers filed for Chapter 11 bankruptcy (Bankr. E.D. Wash. Case No. 11-05868) on Dec. 7, 2011, with plans to liquidate after sales couldn't recover from allegations that it violated food- safety rules. Judge Frank L. Kurtz presides over the case. Lawyers at Bailey & Busey LLC serve as the Debtor's counsel. In its petition, the Debtor scheduled $69,567,846 in assets and $73,392,906 in liabilities. The petition was signed by Jim Davis, president. Counsel for lender Rabo AgriFinance, as agent for itself and KeyBank, is James Ray Streinz, Esq. -- rays@mcewengisvold.com -- at McEwen Gisvold, LLP. Counsel for KeyBank National Association is Bruce W. Leaverton, Esq. -- leavertonb@lanepowell.com -- at Lane Powell, P.C., in Seattle. SONOMA VINEYARDS: Plan of Reorganization Wins Court Approval ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of California confirmed Sonoma Vineyards Estate, LLC's Plan of Reorganization dated as of Aug. 25, 2011. As reported in the Troubled Company Reporter on Sept. 26, 2011, the proposed plan for Sonoma Vineyard is to either sell the entirety or to take the two parcels that are comprised of 58.5 acres and process an application for a 17 estate lot subdivision so that the property can be sold to a developer which in turn would result in all creditors being paid in full and possibly some of the approximately $3,000,000 invested by the members being returned to them. The Sonoma County General Plan allows for a 22 lot residential subdivision on the two lots with APN numbers 142-042-020 and 142 042-021. Under the Sonoma County General Plan Use Policy LU-18t it states that if the existing golf course is abandoned on the 48.5 acre parcel then 15 residential homes may be placed on the parcel. The second parcel that is just less than 10 acres is allowed to be divided into two lots. Both adjacent property owners have consented to support this subdivision. The members of Sonoma Vineyard will advance 50% of the cost to the site planner, architect, engineer and planner to obtain the necessary approvals from Sonoma County for a tentative map on the estate lot subdivision with Geneva Leasing advancing the other 50% pursuant to the terms of a confidential settlement agreement dated March 9, 2011. The costs are to be repaid upon the sale of the property with the tentative map. A full-text copy of the Disclosure Statement dated Aug. 25, 2011, is available for free at http://ResearchArchives.com/t/s?76fb About Sonoma Vineyards Estate Napa, California-based Sonoma Vineyards Estate LLC filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 10- 13447) on Sept. 7, 2010. Michael C. Fallon, Esq., at the Law Offices of Michael C. Fallon, in Santa Rosa, Calif., assists the Debtor in its restructuring effort. In its schedules, the Debtor listed $10,000,038 in assets and $6,998,010 in liabilities. SOUTH EDGE: Stutman Treister Serves as New Counsel -------------------------------------------------- Pursuant to the Joint Plan of Reorganization Proposed by JP Morgan Chase Bank, N.A., as administrative agent under the Prepetition Credit Agreement, and the settling builders, as of the Effective Date of the Plan, Inspirada Builders, LLC, the estate representative, replaces Cynthia Nelson, trustee, as representative of the South Edge estate. Accordingly, as of the Effective Date, counsel for the South Edge Estate is Stutman, Treister & Glatt Professional and Schwartzer & McPherson Law Firm. About South Edge Las Vegas, Nevada-based South Edge LLC owns the Inspirada project, an uncompleted 2,000-acre residential development in Henderson, Nevada, about 16 miles (26 kilometers) southeast of Las Vegas. The eight owners of the project include an affiliate of KB Home, a 49% owner. Other owners are Coleman Toll LP with 10.5%, Pardee Homes Nevada Inc. with 4.9%, Meritage Homes with 3.5%, and Beazer Homes USA Inc. with 2.6%. JPMorgan Chase Bank, N.A., Credit Agricole Corporate and Investment Bank, and Wells Fargo Bank, N.A., filed an involuntary chapter 11 bankruptcy petition (Bankr. D. Nev. Case No. 10-32968) on Dec. 9, 2010, against South Edge, LLC. The petitioning creditors are part of a lender group that provided a $595 million credit. New York-based JPMorgan serves as lender and agent for the group. South Edge filed motions to dismiss the involuntary petition. The Court conducted a contested trial on Jan. 24 and 25, 2011, and Feb. 2 and 3, 2011. On Feb. 3, 2011, the Court entered an order for relief under Chapter 11 of the Bankruptcy Code against the Debtor and issued an order directing the appointment of a chapter 11 trustee. The United States Trustee appointed Cynthia Nelson to serve as Chapter 11 trustee on Feb. 20, 2011. The Court approved the appointment three days later. South Edge is represented by lawyers at Klee, Tuchin, Bogdanoff and Stern LLP, and The Schwartz Law Firm, Inc., as legal counsel. The Chapter 11 trustee also tapped Schwartzer & McPherson Law Firm as local counsel. Petitioning creditors JPMorgan Chase Bank, N.A., and Wells Fargo Bank, N.A., are represented by lawyers at Morrison and Foerster LLP; and Lewis and Roca LLP. Credit Agricole is represented by lawyers at Haynes and Boone LLP, and Jolley Urga Wirth Woodbury & Standish. SP NEWSPRINT: Committee Taps Ashby & Geddes as Delaware Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors of SP Newsprint Holdings, LLC, et al., seeks permission from the Bankruptcy Court to retain Ashby & Geddes, P.A., as its Delaware counsel. The firm will: (a) provide legal advice regarding the rules and practices of the Court applicable to the Committee's powers and duties as an official committee appointed under Section 1102 of the Bankruptcy Code; (b) provide legal advice regarding any sale of the Debtors' assets pursuant to Section 363 of the Bankruptcy Code or otherwise; (c) provide legal advice regarding any disclosure statement and plan filed in these cases and with respect to the process for approving or disapproving a disclosure statement and confirming or denying confirmation of a plan; (d) prepare and review applications, motions, complaints, answers, orders, agreements and other legal papers filed on behalf of the Committee for compliance with the rules and practices of the Court; (e) appear in Court to present necessary motions, applications and pleadings and otherwise protect the interests of the Committee and unsecured creditors of the Debtors; and (f) perform other legal services for the Committee as the Committee believes may be necessary and proper in these Chapter 11 cases. The principal attorneys and paralegals presently designated to represent the Committee and their current hourly rates are: Professional Position Hourly Rate ------------ -------- ----------- William P. Bowden Member $640 Karen B. Skomorucha Associate $385 Stacy L. Newman Associate $315 Chris Warwick Paralegal $185 The firm will also seek reimbursement for its expenses. To the best of the Committee's knowledge, Ashby & Geddes is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: ASHBY & GEDDES, P.A. William P. Bowden, Esq. Karen B. Skomorucha, Esq. Stacy L. Newman, Esq. 500 Delaware Avenue, 8th Floor P.O. Box 1150 Wilmington, Delaware 19899 Tel: (302)654-1888 Fax: (302)654-2067 E-mail: wbowden@ashby-geddes.com kskomorucha@ashby-geddes.com snewman@ashby-geddes.com About SP Newsprint Greenwich, Conn.-based SP Newsprint Holdings LLC -- aka Bulldog Acquisition I LLC, Bulldog Acquisition II LLC, Publishers Papers, Southeastern Paper Recycling and SP Newsprint Merger LLC -- and three affiliates, SP Newsprint Co. LLC, SP Recycling Corporation and SEP Technologies L.L.C, filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-13649) on Nov. 15, 2011. SP Newsprint Holdings LLC is a newsprint company controlled by polo-playing mogul Peter Brant. It is one of the largest producers of newsprint in North America. SP Recycling Corporation, a Georgia corporation and the Debtors' other operating company, was established in 1980 as a means for SP to secure a ready supply of recycled fiber, a key raw material for its newsprint. SP Newsprint is the second Brant-owned newsprint company to tumble into bankruptcy proceedings in recent years. Current and former affiliated entities are Bear Island Paper Company, L.L.C., Brant Industries, Inc., F.F. Soucy, Inc., Soucy Partners Newsprint, Inc., White Birch Paper Company. Judge Christopher S. Sontchi presides over the case. Joel H. Levitin, Esq., Maya Peleg, Esq., and Richard A. Stieglitz Jr., Esq. -- jlevitin@cahill.com , mpeleg@cahill.com and rstieglitz@cahill.com -- at Cahill Gordon & Reindel LLP serve as the Debtors' lead counsel. Lee E. Kaufman, Esq., and Mark D. Collins, Esq. -- kaufman@rlf.com and collins@RLF.com -- at Richards, Layton & Finger, P.A., serve as the Debtors' Delaware counsel. AlixPartners LLP serves as the Debtors' financial advisors and The Garden City Group Inc. serves as the Debtors' claims and noticing agent. In its petition, SP Newsprint Holdings estimated $100 million to $500 million in assets and debts. The petitions were signed by Edward D. Sherrick, executive vice president and chief financial officer. SP NEWSPRINT: Committee Taps BDO Consulting as Financial Advisor ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of SP Newsprint Holdings LLC, et al., seeks permission from the U.S. Bankruptcy Court for the District of Delaware to retain BDO Consulting, a division of BDO USA, LLP, as its financial advisor. BDO Consulting will, among other things: (a) analyze the financial operations of the Debtors pre- and post-petition, as necessary; (b) analyze the financial ramifications of any proposed transactions for which the Debtors seek Bankruptcy Court approval including, but not limited to, post-petition financing, sale of all or a portion of the Debtors' assets, retention of management or employee incentive and severance plans; (c) conduct any requested financial analysis including verifying the material assets and liabilities of the Debtors, as necessary, and their values; (d) assist the Committee in its review of monthly statements of operations submitted by the Debtors; (e) perform claims analysis for the Committee; and (f) assist the Committee in its evaluation of cash flow or other projections, including business plans prepared by the Debtors. BDO will seek payment for compensation of professional services on a fixed monthly basis of $75,000 per month for the first three months and $50,000 per month thereafter, plus reimbursement of actual and necessary expenses. To the best of the Committee's knowledge, BDO is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About SP Newsprint Greenwich, Conn.-based SP Newsprint Holdings LLC -- aka Bulldog Acquisition I LLC, Bulldog Acquisition II LLC, Publishers Papers, Southeastern Paper Recycling and SP Newsprint Merger LLC -- and three affiliates, SP Newsprint Co. LLC, SP Recycling Corporation and SEP Technologies L.L.C, filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-13649) on Nov. 15, 2011. SP Newsprint Holdings LLC is a newsprint company controlled by polo-playing mogul Peter Brant. It is one of the largest producers of newsprint in North America. SP Recycling Corporation, a Georgia corporation and the Debtors' other operating company, was established in 1980 as a means for SP to secure a ready supply of recycled fiber, a key raw material for its newsprint. SP Newsprint is the second Brant-owned newsprint company to tumble into bankruptcy proceedings in recent years. Current and former affiliated entities are Bear Island Paper Company, L.L.C., Brant Industries, Inc., F.F. Soucy, Inc., Soucy Partners Newsprint, Inc., White Birch Paper Company. Judge Christopher S. Sontchi presides over the case. Joel H. Levitin, Esq., Maya Peleg, Esq., and Richard A. Stieglitz Jr., Esq. -- jlevitin@cahill.com , mpeleg@cahill.com and rstieglitz@cahill.com -- at Cahill Gordon & Reindel LLP serve as the Debtors' lead counsel. Lee E. Kaufman, Esq., and Mark D. Collins, Esq. -- kaufman@rlf.com and collins@RLF.com -- at Richards, Layton & Finger, P.A., serve as the Debtors' Delaware counsel. AlixPartners LLP serves as the Debtors' financial advisors and The Garden City Group Inc. serves as the Debtors' claims and noticing agent. In its petition, SP Newsprint Holdings estimated $100 million to $500 million in assets and debts. The petitions were signed by Edward D. Sherrick, executive vice president and chief financial officer. SP NEWSPRINT: Committee Can Retain Lowenstein as Counsel -------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors of SP Newsprint Holdings, LLC, et al., to retain Lowenstein Sandler PC as its counsel. The firm will: (a) provide legal advise as necessary with respect to the Committee's powers and duties as an official committee appointed under Section 1102 of the Bankruptcy Code; (b) assist the Committee in reviewing and negotiating terms for unsecured creditors with respect to (i) the interim use of its cash collateral, (ii) the Debtors' request for interim and final approval of debtor-in-possession financing, (iii) for any sale of substantially all of the Debtors' assets, including negotiating regarding bidding procedures and proposed asset purchase agreements, and (iv) other requests for relief which would impact unsecured creditors; (c) provide legal advice as necessary with respect to any plan and disclosure statement filed in these cases and with respect to the process for approving or disapproving disclosure statements and confirming or denying confirmation of a plan; (d) investigate the Debtors' prepetition lenders' liens, any potential claims against the Debtors' prepetition lenders, and any claims by the estate, including potential claims against insiders; (e) prepare on behalf of the Committee, as necessary, applications, motions, complaints, answers, orders, objections, agreements and other legal documents; (f) appear in Court to present necessary motions, applications, objections and other pleadings, and otherwise protect the interests of those represented by the Committee; and (g) perform other legal services as may be required and authorized by the Committee that are in the best interests of general unsecured creditors. Lowenstein Sandler's current hourly rates for attorneys and other professionals are: Members $435 - $895 Senior Counsel $390 - $660 Counsel $350 - $630 Associates $250 - $470 Legal Assistants $145 - $245 To the best of the Committee's knowledge, Lowenstein Sandler is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About SP Newsprint Greenwich, Conn.-based SP Newsprint Holdings LLC -- aka Bulldog Acquisition I LLC, Bulldog Acquisition II LLC, Publishers Papers, Southeastern Paper Recycling and SP Newsprint Merger LLC -- and three affiliates, SP Newsprint Co. LLC, SP Recycling Corporation and SEP Technologies L.L.C, filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-13649) on Nov. 15, 2011. SP Newsprint Holdings LLC is a newsprint company controlled by polo-playing mogul Peter Brant. It is one of the largest producers of newsprint in North America. SP Recycling Corporation, a Georgia corporation and the Debtors' other operating company, was established in 1980 as a means for SP to secure a ready supply of recycled fiber, a key raw material for its newsprint. SP Newsprint is the second Brant-owned newsprint company to tumble into bankruptcy proceedings in recent years. Current and former affiliated entities are Bear Island Paper Company, L.L.C., Brant Industries, Inc., F.F. Soucy, Inc., Soucy Partners Newsprint, Inc., White Birch Paper Company. Judge Christopher S. Sontchi presides over the case. Joel H. Levitin, Esq., Maya Peleg, Esq., and Richard A. Stieglitz Jr., Esq. -- jlevitin@cahill.com , mpeleg@cahill.com and rstieglitz@cahill.com -- at Cahill Gordon & Reindel LLP serve as the Debtors' lead counsel. Lee E. Kaufman, Esq., and Mark D. Collins, Esq. -- kaufman@rlf.com and collins@RLF.com -- at Richards, Layton & Finger, P.A., serve as the Debtors' Delaware counsel. AlixPartners LLP serves as the Debtors' financial advisors and The Garden City Group Inc. serves as the Debtors' claims and noticing agent. In its petition, SP Newsprint Holdings estimated $100 million to $500 million in assets and debts. The petitions were signed by Edward D. Sherrick, executive vice president and chief financial officer. STONER AND COMPANY: Case Summary & 15 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Stoner and Company c/o Jay D. Stoner 840 Noriker Drive Fort Collins, CO 80524 Bankruptcy Case No.: 12-10429 Chapter 11 Petition Date: January 11, 2012 Court: U.S. Bankruptcy Court District of Colorado (Denver) Judge: Elizabeth E. Brown Debtor's Counsel: Daniel W. Alexander, Esq. DANIEL W. ALEXANDER, PLLC 125 S. Howes Street, Suite 401 Fort Collins, CO 80521 Tel: (970) 482-3300 E-mail: Kdanlawyer@aol.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $100,001 to $500,000 The petition was signed by Jay D. Stoner, president. Debtor's List of Its 15 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Anderson Consulting Engineers, Inc. Engineering $66,000 375 E. Horsetooth Road, Building 5 Consulting Services Fort Collins, CO 80525 The Light Center, Inc. Lighting Equipments/ $57,525 2725 S. College Avenue Supplies/Services Fort Collins, CO 80525 Lind?s Plumbing & Heating, Inc. Plumbing Services $42,850 1414 Blue Spruce Drive, Unit A Fort Collins, CO 80524 Porzak Browning & Bushong LLP Legal Services $41,875 Northern Engineering Services, Inc. Engineering $40,950 Consulting Services Eheart Design Center, Inc. Engineering $35,800 Consulting Services Soukup, Bush & Associate, CPAs, Accounting Services $27,525 P.C. Earth Engineering Consultants, Inc. Engineering $13,850 Consulting Services Pinnacle Consulting Group, Inc. Engineering $12,500 Consulting Services Applegate Group, Inc. Engineering $4,700 Consulting Services B and W Glass Glass Services $4,550 Intermill Land Surveying, Inc. Surveying Consulting $1,625 Thompson Crossing Community HOA Dues $1,200 Association Quick Appliance Repair Service, Appliance Services $600 Inc. TST Inc., Consulting Engineers Engineering $500 Consulting Services TALON THERAPEUTICS: James Flynn Discloses 45.2% Equity Stake ------------------------------------------------------------ In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, James E. Flynn and his affiliates disclosed that, as of Jan. 9, 2012, they beneficially own 15,569,573 shares of common stock of Talon Therapeutcs, Inc.,representing 45.26% of the shares outstanding. As previously reported by the TCR on Sept. 12, 2011, Mr. Flynn disclosed beneficial ownership of 9,506,868 shares. A full-text copy of the amended filing is available for free at http://is.gd/d97kJC 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 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 also reported a net loss of $17.17 million for the nine months ended Sept. 30, 2011, compared with a net loss of $19.71 million for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $5.66 million in total assets, $32.66 million in total liabilities, $30.64 million in 10 million shares authorized, and a $57.64 million total stockholders' deficit. 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. The Company's continued operations depend entirely upon obtaining additional capital. The Company will be unable to continue development of its product candidates unless it is able to obtain additional funding through equity or debt financings or from payments in connection with potential strategic transactions. The Company can give no assurances that any additional capital that it is able to obtain, if any, will be sufficient to meet its needs. Moreover, there can be no assurance that such capital will be available to the Company on favorable terms or at all, especially given the current economic environment which has severely restricted access to the capital markets. If anticipated costs are higher than planned or if the Company is unable to raise additional capital, it will have to significantly curtail planned development to maintain operations through 2011. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. 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. TEKTRON MICRO: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Tektron Micro Electronics, Inc. 7483 - B Candlewood Road Hanover, MD 21076 Bankruptcy Case No.: 12-10249 Chapter 11 Petition Date: January 6, 2012 Court: U.S. Bankruptcy Court District of Maryland (Baltimore) Judge: Robert A. Gordon Debtor's Counsel: Stephen J. Kleeman, Esq. LAW OFFICES OF STEPHEN J. KLEEMAN 401 Washington Avenue, Suite 800 Towson, MD 21204 Tel: (410) 494-1220 Fax: (410) 494-4606 E-mail: barthelaw@aol.com Scheduled Assets: $148,393 Scheduled Debts: $2,342,649 The Company?s list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/mdb12-10249.pdf The petition was signed by William Meyn, president. TELIPHONE CORP: Reports US$2 Million Net Income in Fiscal 2011 -------------------------------------------------------------- Teliphone Corp. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting net income applicable to common shares of US$2.01 million on US$2.25 million of revenue for the year ended Sept. 30, 2011, compared with a net loss applicable to common shares of US$590,041 on US$112,915 of revenue during the prior year. The Company's balance sheet at Sept. 30, 2011, showed US$3.45 million in total assets, US$1.53 million in total liabilities and US$1.92 million total stockholders' equity. KBL, LLP, in New York, noted that the lack of profitable operations in the past and the need to continue to raise funds raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/dsW4xH About Teliphone Corp. Montreal, Canada-based Teliphone Corp. (OTCQB: TLPH) -- http://www.teliphone.ca/-- provides broadband telephone services utilizing its voice over Internet protocol (VoIP) technology platform. TIMMINCO LIMITED: Owes More Than $26MM to Investissement Quebec --------------------------------------------------------------- David Paddon at The Canadian Press reports that the Quebec government's investment agency is owed more than $26 million by Timminco Ltd. In total, the Toronto-based silicon metals company owes $89 million to its various creditors and has run out of sources of funding to keep its operations running, according to court documents obtained by The Canadian Press. The report discloses that the company owed $21.9 million in employee benefits, including $4.3 million for termination to former employees and certain former officers. It also owes various amounts to pension plans for its Ontario and Quebec employees, the report notes. According to The Canadian Press, the documents reveal that Investissement Quebec provided a $25-million loan to Timminco in July 2009 and agreed the following March to add $1.4 million of interest owing to the principal. The loan, which currently racks up interest at a rate of 12% per year, is guaranteed by Timminco and secured by all of the assets of its Becancour Silicon Inc. including its ownership share of Quebec Silicon Limited Partnership. As reported in the Troubled Company Reporter on Jan. 5, 2012, Timminco Limited disclosed that, after consideration of the available alternatives, its Board of Directors has determined that it is in the best interests of the stakeholders of Timminco and its wholly-owned subsidiary, Becancour Silicon Inc. for the Company to commence proceedings under the Companies' Creditors Arrangement Act. The Company's liquidity position has deteriorated as a result of various factors, including reduced cash flows from silicon metal operations, solar market developments that have adversely impacted the timing of a restart of commercial scale production of Timminco Solar, restricted availability of funding under existing credit facilities, and inability to secure additional sources of financing. Accordingly, the Company applied for and obtained an order from the Ontario Superior Court of Justice under the CCAA. The Court has granted CCAA protection for an initial period of 30 days, expiring on Feb. 2, 2012. While under CCAA protection, creditors and others are stayed from enforcing any rights against the Company. The Company will remain in possession and control of their current and future assets, undertaking and properties, and the proceeds thereof. The Company's operations will continue uninterrupted during the CCAA proceeding and obligations to employees and suppliers of goods and services provided after the filing date will continue to be met thereafter. Quebec Silicon Limited Partnership, which is a production partnership that produces silicon metal for Becancour Silicon and Dow Corning, has not applied for creditor protection under CCAA and is not part of these proceedings. Pursuant to the Initial Order, FTI Consulting Canada Inc. has been appointed as monitor in the CCAA proceedings. Timminco produces silicon metal for the chemical (silicones), aluminum and electronics/solar industries, through its 51%-owned production partnership with Dow Corning, known as Quebec Silicon. Timminco is also a producer of solar grade silicon, using its proprietary technology for purifying silicon metal, for the solar photovoltaic energy industry, through Timminco Solar, a division of its wholly owned subsidiary Becancour Silicon. TRAILER BRIDGE: Reaches Deal With Noteholders, Files Plan --------------------------------------------------------- Trailer Bridge, Inc. has reached an agreement with its major note holders and submitted a restructuring plan to the United States Bankruptcy Court for the Middle District of Florida on Jan. 14, 2012. If the Plan is approved, the Company will seek to emerge from Chapter 11 by the end of March 2012. Strategic Reorganization After working closely with the largest public note holders, including SEACOR Holdings, Inc. and Whippoorwill Associates, Inc., which collectively represent more than 90% of the $82.5 million 9.25% Senior Secured Notes, the Company reached an agreement with the Majority Note Holders on a plan the Company believes will strengthen its balance sheet and provide long-term security for its operations. As part of this agreement, the Majority Note Holders have agreed to provide the Company with exit financing to fund the distributions under the Plan. Under the proposed Plan, current holders of the Notes would receive a pro rata share of a $65 million debt instrument and 91% interest in the newly restructured company. As a result, upon emergence from bankruptcy, SEACOR Holdings, Inc. will be the Company's largest stakeholder and intends to use its extensive maritime transportation experience to assist the Company in implementing its strategy to return it to sustainable and profitable operations. If the Plan is approved, secured creditors and contract parties will receive 100% payment on their pre-filing claims and unsecured creditors will receive their pro rata distribution from funds made available to them from an exit financing facility provided by the Majority Note Holders. Additionally, the holders of Trailer Bridge's existing common equity will have the option to receive 9% of the reorganized Company's common equity or a cash payment of $0.15 per share. Holders of the existing common equity are encouraged to review the Plan as filed with the Bankruptcy Court at www.kccllc.net/TrailerBridge, and, upon approval, information will be sent to such holders regarding their options. Approval of the Plan is subject to a number of conditions, including Bankruptcy Court approval, the execution of definitive documentation, and receipt of necessary acceptances from creditor classes and equity interest holders. Throughout this process, Trailer Bridge provided uninterrupted service to its customers and continued its normal vessel sailing schedule between Jacksonville, Florida, San Juan, Puerto Rico, and the Dominican Republic. Comments from Management William G. Gotimer, Jr. and Mark A. Tanner, the Company's co-Chief Executive Officers, jointly stated, "We are very pleased to have reached an agreement that strengthens our ability to provide quality service to our customers. We have worked diligently to keep customers, vendors, employees and shareholders apprised of our progress, and greatly appreciate their support. We expect to emerge from this process with a revitalized balance sheet and a stronger company." 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. The Debtor listed $97,345,981 in assets, and $112,538,934 in liabilities. The petition was signed by Mark A. Tanner, co-chief executive officer. TRIUS THERAPEUTICS: Michael Powell Ceases to Hold 5% Equity Stake ----------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Dr. Michael F. Powell and his affiliates disclosed that, as of Jan. 12, 2012, they beneficially own 177,924 shares of common stock of Trius Therapeutics, Inc., representing 0% of the shares outstanding. As previously reported by the TCR on Dec. 7, 2011, Dr. Powell disclosed beneficial ownership of 3,648,874 shares. A full-text copy of the amended filing is available at http://is.gd/Xmq55e About Trius Therapeutics San Diego, Calif.-based Trius Therapeutics, Inc. (Nasdaq: TSRX) -- http://www.triusrx.com/-- is a biopharmaceutical company focused on the discovery, development and commercialization of innovative antibiotics for serious, life-threatening infections. The Company's first product candidate, torezolid phosphate, is an IV and orally administered second generation oxazolidinone being developed for the treatment of serious gram-positive infections, including those caused by MRSA. In addition to the company's torezolid phosphate clinical program, it is currently conducting two preclinical programs using its proprietary discovery platform to develop antibiotics to treat infections caused by gram-negative bacteria. The Company has incurred losses since its inception and it anticipates that it will continue to incur losses for at least the next several years. The Company does not anticipate that its existing working capital, including the funds received on Aug. 6, 2010, from its IPO, alone will be sufficient to fund its operations through the successful development and commercialization of torezolid phosphate or any other products it develops. As a result, the Company says it will need to raise additional capital to fund its operations and continue to conduct clinical trials to support potential regulatory approval of torezolid phosphate and any other product candidates. The Company reported a net loss of $23.86 million on $8.03 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $22.68 million on $5.01 million of total revenues during the prior year. The Company also reported a net loss of $5.73 million on $36 million of total revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $15.11 million on $5.51 million of total revenues for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $77.02 million in total assets, $15.64 million in total liabilities and $61.38 million in total stockholders' equity. "We are pleased to report our consistent achievement of objectives since our IPO in August 2010," said Jeffrey Stein, Ph.D., president and chief executive officer of Trius. "We look forward to continuing our track record of solid execution in our clinical trials and company development." TURKPOWER CORP: Delays Form 10-Q for Nov. 30 Quarter ---------------------------------------------------- Due to its recent change in independent account, Turkpower Corporation was unable to compile the necessary financial information required to prepare a complete filing of its Quarterly Report for the period ended Nov. 30, 2011. Thus, the Company would be unable to file the periodic report in a timely manner without unreasonable effort or expense. The Company expects to file within the extension period. About TurkPower Corporation New York-based TurkPower Corporation (formerly Global Ink Supply Co.) was incorporated on Nov. 4, 2004, in Delaware. On May 11, 2010, Global Ink Supply Co. changed its name to TurkPower Corporation. On Dec. 23, 2009, the Company entered into the consulting and service operations business, offering domestic and international clients consulting services. The Company acts as a full-service operator for wind, hydro, solar, and geothermal energy parks in Turkey. The Company also generates revenue by entering into agreements with other entities to provide consulting services to clients in the energy market. The Company reported a net loss of $5.86 million on $64,308 of revenue for the year ended May 31, 2011, compared with a net loss of $511,149 on $215,050 of revenue during the prior year. The Company's balance sheet at Aug. 31, 2011, showed $10.09 million in total assets, $3.71 million in total liabilities and $6.37 million in total stockholders' equity. MaloneBailey LLP, in Houston, Texas, noted that the Company has incurred losses from operations and has a working capital deficit as of May 31, 2011, which raises substantial doubt about its ability to continue as a going concern. U.S. EAGLE: Committee Can Retain Eisneramper as Accountant ---------------------------------------------------------- The U.S. Bankruptcy Court for the District Court of New Jersey authorized the Official Committee of Unsecured Creditors of U.S. Eagle Corporation to retain Eisneramper LLP as its accountant and financial advisor. The firm will: Eisneramper will: a) gain an understanding of the Debtors' business, books and records and reporting systems; b) review key pleadings and filings in connection with the bankruptcy case, including the Debtors' statement of financial affairs, Chapter 11 schedules, and financial budgets; c) consult with the Committee, the Committee's counsel and the Debtors' representatives regarding the Debtors' financial performance; d) assist the Committee in analyzing budget vs. actual results; e) consult with the Committee, in preparing and reviewing financial information required in a Plan of Reorganization, including disclosures; f) consult with the Committee, and where necessary, assist in the preparation of business plans, including long-term projections and liquidation analyses; g) analyze, formulate and advise in connection with potential income tax ramifications of this Chapter 11 filing or proposed Plan of Reorganization; h) provide expert witness testimony, as required, in connection with financial issues relating to this Chapter 11 matter; i) attend meetings and telephone calls with management, counsel and other parties, as necessary; and j) provide other services as directed by the Committee or its counsel. EisnerAmper will be paid based on the usual and customary billing rates of its professionals: Designations Hourly Rates ------------ ------------ Partners/Directors $400 - $560 Managers/Senior Managers $275 - $400 Paraprofessionals/Staff $115 - $275 About U.S. Eagle U.S. Eagle filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-10392) on Jan. 6, 2011. Samuel Jason Teele, Esq., at Lowenstein Sandler PC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliates U.S. Eagle Litho, Inc. (Bankr. D. N.J. Case No. 11- 10401), Eagle One Golf Products, Inc. (Bankr. D. N.J. Case No. 11- 10397), Julius Realty Corporation (Bankr. D. N.J. Case No. 11- 10393), Traffic Control Service, Inc., An Arizona Corporation (Bankr. D. N.J. Case No. 11-10398), Traffic Control Service, Inc., A California Corporation (Bankr. D. N.J. Case No. 11-10403), and Traffic Control Service, Inc., A Nevada Corporation (Bankr. D. N.J. Case No. 11-10392) filed separate Chapter 11 petitions on Jan. 6, 2011. Three Twenty One Capital Partners, LLC serves as exclusive agent for the Debtors. On Feb. 22, 2011, the U.S. Trustee appointed an Official Committee of Unsecured Creditors. Porzio, Bromberg & Newman, P.C., represents the Committee. No trustee or examiner has been requested or appointed in the Chapter 11 cases. U.S. EAGLE: Can Hire Hilco Real as Real Estate Broker ----------------------------------------------------- The U.S. Bankruptcy Court for the District Court of New Jersey authorized U.S. Eagle Corporation to employ Hilco Real Estate, LLC, as real estate broker and Lee & Associates as the sub-listing broker for certain properties. The Court vacated its prior order authorizing the Debtor to employ Grubb & Ellis Company as its real estate broker. The Debtor sought a change in its broker because it believes that a traditional brokerage process would yield few, if any, tangible results. The Debtor therefore has modified its sales strategy and decided to market its properties in a non-traditional (outside of bankruptcy) process which led to the employment of Hilco. Hilco will, among other things: (a) take the necessary steps to list and market the Riverside Properties in a manner to maximize the value thereof; (b) facilitate the dissemination of information to interested parties with respect to the Riverside Properties; and (c) assist the Debtors with the sale process. Hilco will receive 6 percent of the gross sale proceeds from the sale of the Riverside Properties if it is the sole real estate broker. However, if the buyer of the Riverside Properties is represented by a separate broker, the Debtors will seek permission to compensate Hilco at 7 percent of the gross sale proceeds as the commission will be shared with the buyer's broker. About U.S. Eagle U.S. Eagle filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-10392) on Jan. 6, 2011. Samuel Jason Teele, Esq., at Lowenstein Sandler PC, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliates U.S. Eagle Litho, Inc. (Bankr. D. N.J. Case No. 11- 10401), Eagle One Golf Products, Inc. (Bankr. D. N.J. Case No. 11- 10397), Julius Realty Corporation (Bankr. D. N.J. Case No. 11- 10393), Traffic Control Service, Inc., An Arizona Corporation (Bankr. D. N.J. Case No. 11-10398), Traffic Control Service, Inc., A California Corporation (Bankr. D. N.J. Case No. 11-10403), and Traffic Control Service, Inc., A Nevada Corporation (Bankr. D. N.J. Case No. 11-10392) filed separate Chapter 11 petitions on Jan. 6, 2011. Three Twenty One Capital Partners, LLC serves as exclusive agent for the Debtors. On Feb. 22, 2011, the U.S. Trustee appointed an Official Committee of Unsecured Creditors. Porzio, Bromberg & Newman, P.C., represents the Committee. No trustee or examiner has been requested or appointed in the Chapter 11 cases. U.S. EAGLE: Plan Filing Period Further Extended to Jan. 30 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey has further extended U.S. Eagle Corporation and its debtor-affiliates' exclusive periods to file a plan of reorganization and to solicit acceptances of a plan of reorganization, through and including Jan. 30, 2012, and April 1, 2012, respectively. About U.S. Eagle U.S. Eagle filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-10392) on Jan. 6, 2011. Kenneth A. Rosen, Esq., S. Jason Teele, Esq., and Cassandra M. Porter, Esq., at Lowenstein Sandler PC, in Roseland, N.J., serve as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliates U.S. Eagle Litho, Inc. (Bankr. D. N.J. Case No. 11- 10401), Eagle One Golf Products, Inc. (Bankr. D. N.J. Case No. 11- 10397), Julius Realty Corporation (Bankr. D. N.J. Case No. 11- 10393), Traffic Control Service, Inc., An Arizona Corporation (Bankr. D. N.J. Case No. 11-10398), Traffic Control Service, Inc., A California Corporation (Bankr. D. N.J. Case No. 11-10403), and Traffic Control Service, Inc., A Nevada Corporation (Bankr. D. N.J. Case No. 11-10392) filed separate Chapter 11 petitions on Jan. 6, 2011. Three Twenty One Capital Partners, LLC serves as exclusive agent for the Debtors. On Feb. 22, 2011, the U.S. Trustee appointed an Official Committee of Unsecured Creditors. Porzio, Bromberg & Newman, P.C., represents the Committee. No trustee or examiner has been requested or appointed in the Chapter 11 cases. USEC INC: Expects to Expense $137MM in Q4 Related to ACP Project ---------------------------------------------------------------- USEC Inc. concluded that it expects to expense approximately $127 million of previously capitalized work in progress costs related to a number of earlier AC100 centrifuge machines used in the lead cascade test program. These machines were determined to no longer be compatible with the commercial plant design for the American Centrifuge Plant. This expense is a non-cash charge in the fourth quarter of 2011 related to these machines. The Company previously disclosed in its periodic reports that it was evaluating the ongoing utility of a number of earlier AC100 centrifuge machines that were previously capitalized as part of construction work in progress. Following the completion of this review, which included the evaluation of several potential uses for these earlier machines and the related economics for each scenario, the Company determined that these centrifuge machines have no future economic benefit and should be expensed. This conclusion does not affect centrifuge machines that are currently being operated in the Company's lead cascade in Piketon, Ohio, which are the current commercial plant design, or any machines that would be built as part of any research, development and demonstration (RD&D) program being discussed with the U.S. Department of Energy (DOE). On Jan. 13, 2012, the Company also concluded that it expects to expense approximately $10 million in the fourth quarter of 2011 of previously capitalized amounts related to prepayments made to a supplier for the American Centrifuge Plant. The Company's contract with this supplier could not be extended and this amount represents the remaining balance for prepayments for materials that the Company will not purchase under the contract. Under the terms of the contract, the prepayment is credited against a portion of the purchase price for the materials and the Company does not plan on purchasing sufficient material to recoup the full credit prior to expiration of the contract. These management decisions were reported to and affirmed by the Board of Directors at a meeting held on Jan. 13, 2012. The Company has not yet completed its financial review for the quarter or year ended Dec. 31, 2011. However, based on the Company's analysis to date, the Company expects to record a full valuation allowance in the fourth quarter of 2011 for the net deferred tax asset created by the charges, as well as all other previously recorded net deferred tax assets. The Company's net deferred tax assets were approximately $246 million as of Sept. 30, 2011. A valuation allowance is required if it is more likely than not that a deferred tax asset cannot be realized in the future. That realization is dependent on having sufficient taxable income to realize the deferred tax asset. As described in the Company's quarterly report on Form 10-Q for the quarter ended Sept. 30, 2011, in practice, positive and negative evidence is reviewed with objective evidence receiving greater weight. One of the most difficult forms of negative evidence to overcome is a cumulative loss in recent years. Based on anticipated fourth quarter and year end 2011 results, taking into account the charges described above, the Company expects to have a significant loss resulting in a cumulative loss in recent years. In addition, the Company will be continuing as part of its year- end financial review to evaluate the recoverability of the remainder of previously capitalized costs related to the American Centrifuge project (which, including the approximately $137 million, totaled approximately $1.3 billion as of Sept. 30, 2011). Depending on the outcome of the evaluation, the Company could expense up to the full amount of previously capitalized costs related to the American Centrifuge project as early as the fourth quarter of 2011. Events that could negatively affect this evaluation include a failure to enter into an agreement with DOE to provide funding for the project as part of the RD&D program. The Company's incurrence of the impairment charges described in the first paragraph above and the valuation allowance for the Company's deferred tax assets will not result in future cash expenditures, however, they will have a direct negative impact on the Company's net income and shareholder's equity for the period in which they are recorded. In addition, the valuation allowance will result in the Company's inability to record tax benefits on future losses until the Company generates sufficient taxable income to support the elimination of the valuation allowance. However, the valuation allowance will not affect the Company's ability to use its deferred tax assets if it generates taxable income in the future. The impairment charge and the valuation allowance will not impact the Company's cash flow from operations. About USEC Inc. Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) -- http://www.usec.com/-- supplies enriched uranium fuel for commercial nuclear power plants. The Company reported a net loss of $44.70 million on $1.21 billion of total revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $1.50 million on $1.37 billion of total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $4.04 billion in total assets, $2.72 billion in total liabilities and $1.32 billion in stockholders' equity. * * * USEC Inc. carries 'Caa1' corporate and probability of default ratings, with "developing" outlook, from Moody's, and 'CCC+' long term foreign issuer credit rating and 'CCC-' long term local issuer credit rating, with outlook "developing", from Standard & Poor's. In May 2010, S&P said that its rating and outlook on USEC Inc. are not affected by the announcement that Toshiba Corp. and Babcock & Wilcox Investment Co., an affiliate of The Babcock & Wilcox Co., have signed a definitive investment agreement for $200 million with USEC. VEGAS, INC.: Voluntary Chapter 15 Case Summary ---------------------------------------------- Debtor: Vegas, Inc. aka Vegas Liquor 8024 Greenfield Road Detroit, MI 48228 Bankruptcy Case No.: 12-40572 Chapter 11 Petition Date: January 11, 2012 Court: U.S. Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Steven W. Rhodes Debtor's Counsel: Donald C. Darnell, Esq. DARNELL, PLLC 7926 Ann Arbor Street Dexter, MI 48130 Tel: (734) 424-5200 Fax: (734) 786-1605 E-mail: dondarnell@darnell-law.com Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $100,000,001 to $500,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Mark Thuwaini, president. VOICES OF FAITH: Seeks to Hire Geiger Law as Co-Counsel ------------------------------------------------------- Voices of Faith Ministries, Inc., seeks permission from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Geiger Law, LLC, as its co-counsel. As general bankruptcy counsel, Geiger Law will: (a) advise the Debtor with respect to its powers and duties as debtor and debtor-in-possession in the continued management and operation of its business and property; (b) attend meetings and negotiate with representatives of creditors and other parties-in-interest and advise and consult on the conduct of the Chapter 11 case, including all of the legal and administrative requirements of operating in Chapter 11; (c) take necessary action to protect and preserve Debtor's estate, including the prosecution of actions on its behalf, the defense of any actions commenced against the estate, negotiations concerning all litigation in which Debtor may be involved and objections to claims filed against the estate; (d) review and prepare on behalf of Debtor all documents and agreements as they become necessary and desirable; (e) review and prepare on behalf of Debtor all motions, administrative and procedural applications, answers, orders, reports and papers necessary to the administration of the estate; (f) negotiate and prepare on Debtor's behalf a plan of reorganization, disclosure statement and all related agreements or documents and take any necessary action on behalf of Debtor to obtain confirmation of such plan; (g) review and object to claims, analyze, recommend, prepare, and bring any causes of action created under the Bankruptcy Code; (h) advise Debtor in connection with any sale of assets; (i) appear before this Court, any appellate courts, and the U.S. Trustee, and protect the interests of Debtor's estate before such courts and the U.S. Trustee; and (j) perform all other necessary legal services and give all other necessary legal advice to the Debtor in connection with the Chapter 11 case. David A. Geiger's current hourly rate is $300. Geiger Law received 2 retainer payments from Debtor totaling $10,000 for work to be performed with respect to the Chapter 11 case. To the best of the Debtor's knowledge, Geiger Law is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Voices of Faith Ministries, Inc., based in Stone Mountain, Georgia, filed for Chapter 11 bankruptcy (Bankr. N.D. Ga. Case No. 11-85028) on Dec. 5, 2011. John A. Moore, Esq. -- jmoore@moorelawllc.com -- at The Moore Law Group, LLC, serves as the Debtor's counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Gary Hawkins, Sr., CEO. WALLDESIGN INC: Union Wants Management Replaced by Trustee ---------------------------------------------------------- The International Union of Painters and Allied Trades District Council 15 wants the Bankruptcy Court to appoint a Chapter 11 trustee to oversee Walldesign Inc.'s business. The union alleges fraud, dishonesty, incompetence and gross mismanagement on the part of the debtor's current management. The union also contends the debtor has violated the parties' collective bargaining agreement by failing to honor wage and benefit obligations. The union has filed charges before the National Labor Relations Board over the debtor's unfair labor practices. The union is objecting to the approval of Walldesign's requests for authority to pay prepetition obligations it elects to pay, use cash collateral, and sell personal property. The union suspects the debtor is trying to undercut union members by striking a "labor" deal with Imperial Building Group Inc. The union believes Imperial may be an alter ego of the debtor or the debtor's sole owner Michael Bello, pointing out that both companies operate from the same business location -- owned and leased by Michael Bello -- performing the same work and servicing the same customers. The union also notes the California State Licensing Board lists Mr. Bellow as the responsible manager of Imperial and owns 10% or more of Imperial's voting stock/equity. The union says the hearing on the debtor's requests should be postponed until an official committee of unsecured creditors is appointed and has been given an opportunity to review the requests. The union is represented by Jordan D. Mazur, Esq. -- jmazur@unioncounsel.net -- at Weinberg Roger & Rosenfeld P.C. Walldesign is seeking Court approval of procedures for the sale of various personal properties, which include vehicles and equipment, to be sold for $50,000 or less each. The properties were used in the ordinary course of the debtor's operations. However, certain of the assets are now or will become unnecessary or otherwise idle. The debtor wants to sell the Idle Assets to bring additional cash into the estate and to eliminate unnecessary carrying costs. The debtor said immediate approval of the sale procedures is critical in that the Idle Assets are declining in value each day. Walldesign is also seeking Court permission to use cash collateral of Comerica Bank, its primary secured lender, to finance business operations while in bankruptcy. The debtor owes Comerica roughly $4.9 million pursuant to a line of credit, plus corporate credit card debt, potential letter of credit liability, and related fees and expenses. The debtor also faces roughly $5.0 million in unsecured claims. The debtor and Comerica have agreed to the use of cash collateral, subject to the Court's approval of the parties' Stipulation. The debtor proposes to grant Comerica replacement liens of the same type and priority as currently held on all collateral, including but not limited to, all accounts receivable and assets generated post-petition. During the next six months, the debtor projects that it will generate roughly $9 million in revenues through the completion of existing backlog, and that it will generate roughly $2.7 million in cash. Marc J. Winthrop, Esq., Sean A. O'Keefe, Esq., and Jeannie Kim, Esq. -- sokccfc@winthropcouchot.com and jkim@winihropcouchot.com -- at Winthrop Couchot, serve as the Debtor's counsel. About Walldesign Walldesign Inc., incorporated in 1983, has been in the business of installing drywall, insulation, plaster and providing related services to single and multi-family construction projects throughout California, Nevada and Arizona for over 20 years. Customers include some of the largest homebuilders in the United States, such as Pulte, DR Horton, K. Hovnanian, Toll Brothers and KB Homes. In fiscal 2011, Walldesign generated more than $43.5 million in annual revenues. Walldesign, based in Newport Beach, California, said the global credit crisis that occurred in the third quarter of 2008 had a severe negative impact on its business: capital for construction projects dried up, buyers vacated the market for new homes and profit margins on new jobs eroded. Although it has significantly downsized its operations in an effort to remain profitable in the recessionary conditions, cash flow problems arose during this process. These problems slowed payments to vendors, precipitating collection lawsuits forcing it to seek Chapter 11 protection (Bankr. C.D. Calif. Case No. 12-10105) on Jan. 4, 2012. Judge Robert N. Kwan presides over the case. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Michael Bello, chief executive officer. WALLDESIGN INC: Sec. 341 Creditors' Meeting Set for Feb. 29 ----------------------------------------------------------- The U.S. Trustee will hold a Meeting of Creditors under 11 U.S.C. Sec. 341(a) in the bankruptcy case of Walldesign Inc., on Feb. 29, 2012, at 10:30 a.m. at RM 1-159, 411 W Fourth St., in Santa Ana. Walldesign Inc., incorporated in 1983, has been in the business of installing drywall, insulation, plaster and providing related services to single and multi-family construction projects throughout California, Nevada and Arizona for over 20 years. Customers include some of the largest homebuilders in the United States, such as Pulte, DR Horton, K. Hovnanian, Toll Brothers and KB Homes. In fiscal 2011, Walldesign generated more than $43.5 million in annual revenues. Walldesign, based in Newport Beach, California, said the global credit crisis that occurred in the third quarter of 2008 had a severe negative impact on its business: capital for construction projects dried up, buyers vacated the market for new homes and profit margins on new jobs eroded. Although it has significantly downsized its operations in an effort to remain profitable in the recessionary conditions, cash flow problems arose during this process. These problems slowed payments to vendors, precipitating collection lawsuits forcing it to seek Chapter 11 protection (Bankr. C.D. Calif. Case No. 12-10105) on Jan. 4, 2012. Judge Robert N. Kwan presides over the case. Marc J. Winthrop, Esq., Sean A. O'Keefe, Esq., and Jeannie Kim, Esq., at Winthrop Couchot, serve 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 Michael Bello, chief executive officer. WEGENER CORP: Incurs $856,632 Net Loss in Dec. 2 Quarter -------------------------------------------------------- Wegener Corporation filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $856,632 on $1.38 million of revenue for the three months ended Dec. 2, 2011, compared with a net loss of $25,776 on $2.97 million of revenue for the three months ended Dec. 3, 2010. The Company reported a net loss of $1.46 million on $9.11 million of net revenues for the year ended Sept. 2, 2011, compared with a net loss of $2.31 million on $8.92 million of net revenues for the year ended Sept. 3, 2010. The Company's balance sheet at Dec. 2, 2011, showed $7.16 million in total assets, $9.50 million in total liabilities, all current, and a $2.34 million total capital deficit. In its report on the Company's 2011 results, Habif, Arogeti & Wynne, LLP, in Atlanta, Georgia, noted that the Company has suffered recurring losses from operations and has a capital deficiency that raise substantial doubt about its ability to continue as a going concern. Bankruptcy warning The Company's ability to continue as a going concern is dependent on generating sufficient new orders and revenues in the very near term to provide sufficient cash flow from operations to pay the Company's current level of operating expenses, to provide for inventory purchases and to reduce past due amounts owed to vendors and service providers. No assurances may be given that the Company will be able to achieve sufficient levels of new orders in the near term to provide adequate levels of cash flow from operations. Should the Company be unable to achieve near term profitability and generate sufficient cash flow from operations, the Company would need to raise additional capital or obtain additional borrowings beyond the Company's existing loan facility. The Company currently has limited sources of capital, including the public and private placement of equity securities and additional debt financing. No assurances can be given that additional capital or borrowings would be available to allow the Company to continue as a going concern. If near term shippable bookings are insufficient to provide adequate levels of near term liquidity and any required additional capital or borrowings are unavailable, the Company will likely be forced to enter into federal bankruptcy proceedings. A full-text copy of the Form 10-Q is available for free at: http://is.gd/6mLrzf About Wegener Corp. Johns Creek, Ga.-based Wegener Corporation -- http://www.wegener.com/-- was formed in 1977 and is a Delaware corporation. The Company conducts its continuing business through Wegener Communications, Inc. (WCI), a wholly-owned subsidiary. WCI, a Georgia corporation, is an international provider of digital video and audio solutions for broadcast television, radio, telco, private and cable networks. WESTSIDE MEDICAL: Files Liquidating Plan to Pay Unsecured Claims ---------------------------------------------------------------- Westside Medical Park, LLC submitted a Plan of Liquidation and Disclosure Statement to the U.S. Bankruptcy Court for the Central District of California dated Dec. 21, 2011. The Debtor owned real estate properties in California intended to be developed primarily for health care uses, but defaulted on a $61 million debt in November 2011. The Debtor thus sought bankruptcy protection to try to preserve value for unsecured creditors. The Plan lists the sources of money earmarked to pay creditors. No payments to interest holders will be made. Sources of distribution to creditors will be (i) cash on hand, which totaled $666,770 as of Nov. 30, 2011; and (ii) any recovery generated from "avoidance power actions" and litigation, all of which will be pursued by the Official Committee of Unsecured Creditors. Most likely, general unsecured creditors can expect payments to commence within 30 days after entry of a final unappealable order confirming the Debtor's liquidating plan. The Debtor calculates the claims of general unsecured creditors aggregate $1,143,846. Under the Plan, unsecured creditors will receive pro rata distributions from the Available Cash and any recovery from any Avoidance Power Action or litigation. A copy of the Disclosure Statement dated Dec. 21 is available for free at http://bankrupt.com/misc/WESTSIDEMEDICAL_DiscStmDec21.PDF About Westside Medical Los Angeles, California-based Westside Medical Park, LLC, filed for Chapter 11 bankruptcy protection on November 3, 2010 (Bankr. C.D. Calif. Case No. 10-57457). John P. Kreis, P.C., is the Debtor's general bankruptcy counsel. Garfield & Tepper serves as special litigation counsel. Peregrine Realty Partners has been tapped as appraiser. The Debtor estimated assets and debts at $50 million to $100 million as of the Chapter 11 filing. On Dec. 28, 2010, Peter C. Anderson, the U.S. Trustee, appointed these entities to serve in the Official Committee of Unsecured Creditors in the Debtor's case: 1. Dakota Communications 2. Burnside & Associates, Inc. 3. Argo Group US, Inc. 4. A.C. Martin Partners, Inc. * Cadwalader's Top Restructuring Trio Joins Pillsbury ----------------------------------------------------- Pillsbury disclosed that a group of prominent insolvency and restructuring partners is joining its firmwide Insolvency & Restructuring practice, and will be resident in the firm's New York office. Deryck Palmer, Andrew Troop and Christopher Mirick arrive from Cadwalader, Wickersham & Taft, where Palmer was the Co-Chairman of the financial restructuring department and a former member of the firm's Management Committee. Deryck Palmer was a recent delegate to the UNCITRAL Working Group V (Insolvency Law) on behalf of the International Law Institute. He was also selected as one of the lead counsels to the U.S. Treasury Department in the General Motors restructuring and represented the Detroit Public Schools, the sixth-largest school district in the country, in one of the most successful municipal restructurings, out of court. He and his team concentrate their practice on the representation of all parties involved in proceedings under Chapter 11 of the Bankruptcy Code, as well as in workout, corporate restructuring and bankruptcy matters. They have handled some of the largest and most significant matters in the country during the past three decades, including LyondellBasell Industries in its reorganization case; Millennium Custodial Trust; Apollo Health Street; and Citibank in the Lehman Brothers Holdings Chapter 11 case. Other recent clients include Omnicare, JPMorgan Chase and numerous private equity firms and hedge funds with investments in distressed credits. The team represents both creditors and debtors, including representation of lenders extending credit to troubled borrowers and entities investing in or acquiring troubled companies or assets from distressed owners, in various industry sectors including automotive, retail, real estate, energy, health care, hospitality and manufacturing. They enhance Pillsbury's capabilities in these key industry sectors and bring significant additional experience representing municipal and health care entities in debt restructurings and working with traditional and non-traditional lenders in creating new lending products for municipalities. "Insolvency & Restructuring is a key area of strategic growth for Pillsbury. The addition of these tremendously accomplished lawyers broadens, deepens and transforms our reach and enhances our ability to deliver the highest quality service to our clients," said Pillsbury Firm Chair Jim Rishwain. "Deryck's team is a perfect addition to our insolvency group's established practice. They bring extensive experience in the financial services sector, a key industry for Pillsbury and our clients. Our Finance, M&A, Litigation, Tax and Real Estate practices, among others, will benefit with the addition of this elite team and contribute to the creation of a world-class bankruptcy practice." "Pillsbury's insolvency group and the firm's industry strengths form a very dynamic platform for our combined team," Palmer noted. "Together, we are excited about our practice's remarkable opportunities and focus on client service as challenges in this field become more complex across different types of organizations." Recognized as one of the "Leading Law Firm Rainmakers" by the Minority Corporate Counsel Association, Palmer is active in the American Bankruptcy Institute and the Turnaround Management Association. For more than 10 years, he served as a foreign advisor on U.S. bankruptcy law to the People's Republic of China (PRC) and was instrumental in the drafting of the new PRC Enterprise Bankruptcy Law. An Adjunct Professor of Law at New York Law School, Palmer received his B.A. from Syracuse University and his J.D. from the University of Michigan. Andrew Troop and Christopher Mirick have also received accolades for their work. Most recently, Legal 500 recognized Troop for being "extremely capable, effective and creative," and IFLR1000 reported that clients praise Mirick for demonstrating "tremendous leadership skills" and having "very innovative solutions." Troop and Mirick focus their practices on business reorganizations and debtors' and creditors' rights. Troop's practice includes representing nonprofit organizations within his primary focus of debtors' and creditors' rights. He received his J.D. from Northwestern University School of Law and his B.A. from Amherst College. Mirick has represented private equity clients in connection with acquiring, selling and reorganizing both domestic and international portfolio companies. He has also counseled mezzanine lenders and private equity investors in defending fraudulent-transfer and breach-of-duty claims asserted in connection with companies to which they have extended credit or invested equity. A graduate of Amherst College, he holds a J.D. from Harvard Law School. Pillsbury's Insolvency & Restructuring practice is a well- integrated team of lawyers practicing in New York, Los Angeles, San Francisco, Washington DC, San Diego and Orange County (together with colleagues in London, Tokyo and Shanghai). Practice members represent a broad spectrum of clients dealing with complex, sophisticated and distressed financial situations, including the representation of distressed entities as well as clients that lend to distressed entities. Recent bankruptcy representation includes the equity committees in Solutia and Tronox, the debtor in Congoleum, and clients with signification positions in the Washington Mutual, Delta Airlines, Heller Ehrman and Coudert Brothers cases. About Pillsbury Winthrop Pillsbury is a full-service law firm with a keen industry focus on energy & natural resources, financial services, real estate & construction, and technology. Based in the world's major financial, technology and energy centers, Pillsbury counsels clients on global regulatory, litigation and corporate matters * Upcoming Meetings, Conferences and Seminars --------------------------------------------- April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 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 ***