/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/120131.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, January 31, 2012, Vol. 16, No. 30 Headlines 1555 WABASH: Can Use Cash Collateral Through Jan. 31 237 EAST ONTARIO: Files Schedules of Assets & Liabilities 237 EAST ONTARIO: Court Orders Filing of Ch. 11 Plan by April 9 237 EAST ONTARIO: Can Hire Neal Wolf as Restructuring Counsel 3900 BISCAYNE: Can Use BB&T Cash Collateral Up to Feb. 21 400 BLAIR: Asks Court to Reinstate Stay on SBMS Foreclosure Sale 505 WEST: Case Summary & Largest Unsecured Creditor ADAMS COUNTY: Moody's Affirms 'Ba1' General Obligation Rating ADOBE TRUCKING: U.S. Trustee Wants Case Converted to Chapter 7 AES ENERGY: Has Yet to Find Buyer for Facilities ALC HOLDINGS: Has Court OK to Employ Melanie B. Cox as Interim CEO ALLY FINANCIAL: Moody's Assigns B2 Rating to Subordinated Debt AMERCABLE INC: S&P Puts 'B-' Corporate Rating on Watch Negative AMERICAN REALTY: Files for Chapter 11 Las Vegas AMERICAN REALTY: Voluntary Chapter 11 Case Summary ATRINSIC INC: Earns $615,000 from Sale of Subscription Business ATTACHMATE CORP: S&P Affirms 'BB-' Rating on $300-Mil. Term Loan AURORA USA: Moody's Assigns 'B3' Corporate Family Rating BANKEAST: Closed; U.S. Bank NA Assumes All Deposits BATAVIA NURSING: Bankruptcy Trustee Pays Employees BEACON POWER: Creditors' Panel Can Hire Blank Rome as Counsel BEAR VALLEY: Court Dismisses Chapter 11 Case BEAU VIEW: Files for Chapter 11 in Gulfport, Mississippi BEAU VIEW: Voluntary Chapter 11 Case Summary BELTWAY ONE: Wants to Hire Keith Harper as Valuation Expert BERNARD L. MADOFF: New York Mets Owners Seek Dismissal of Lawsuit BEYOND OBLIVION: Eyeing Sale of Intellectual Property Assets BILLMYPARENTS INC: Joseph Proto Named to Board of Directors BLUE WILLOW: Sells Assets to Donald Poss for $930,000 BONDS.COM GROUP: Engages EisnerAmper as Accountants BOZEL S.A.: Pick & Zabicki Approved as Creditors Committee Counsel CABI SMA: Brickell Central Wants $700,000 DIP Loan Denied CAESARS ENTERTAINMENT: Amends Form S-1 Registration Statement CAESARS ENTERTAINMENT: Bank Debt Trades at 16% Off CARPENTER CONTRACTORS: Disclosures Hearing Adjourned Until Feb. 13 CALYPTE BIOMEDICAL: Incurs $242,000 Net Loss in Third Quarter CENTURION PROPERTIES: Inks Deal Dismissing Centrum Parties' Claims CIENA CORP: S&P Affirms 'B' Corporate Rating; Outlook Negative CITIZENS REPUBLIC: Reports $18.2 Million Net Income in Q4 CLAIRE'S STORES: Bank Debt Trades at 9% Off in Secondary Market CLARE AT WATER: Files Amended Schedules of Assets and Liabilities CLEAN BURN: Plan Outline Hearing Scheduled for March 6 CLEAN TRANSPORTATION: Has $191,542 Restated Loss in Q2 2011 CLEARWIRE CORP: Completes $300-Mil. Senior Secured Notes Offering CONGRESS BUILDING: Voluntary Chapter 11 Case Summary COYOTES HOCKEY: NHL's Asking Price Blamed for Sale Delay CRYSTALLEX INTERNATIONAL: Ontario Court Extends Stay to March 23 CUI GLOBAL: Common Stock to Trade on NASDAQ Stock Market CUSHING MANUFACTURING: Files for Chapter 11 Bankruptcy Protection DAVID'S BRIDAL: S&P Affirms 'B' Corporate Credit Rating DEEP DOWN: Goldman Capital Discloses 6.5% Equity Stake DENNY'S CORP: Wells Fargo Discloses 7.4% Equity Stake DEX MEDIA EAST: Bank Debt Trades at 54% Off in Secondary Market DEX MEDIA WEST: Bank Debt Trades at 44% Off in Secondary Market DRINKS AMERICAS: Issues 9.9 Million Common Shares to Worldwide DYNEGY INC: Court Sets Feb. 24, 2012 Claims Bar Date DYNEGY INC: Committee Wins OK to Hire Blackstone as Advisor DYNEGY INC: Examiner Proposes Quinn Emanuel as Counsel DYNEGY INC: Examiner Proposes Zolfo Cooper as Advisor EAGLE CROSSROADS: Asks Court to Dismiss Chapter 11 Case EASTMAN KODAK: Taps Hires Kekst and Co. as Communications Advisor EASTMAN KODAK: Eastman Business Park May Be Sold in Bankruptcy EASTMAN KODAK: Business as Usual for Kodak UK ELECTRICAL COMPONENTS: Moody's Affirms B2 Corporate Family Rating ELECTRICAL COMPONENTS: S&P Puts 'B' Credit Rating on Watch Neg. EMPRESAS BASTARD: Wants U.S. Trustee's Dismissal Bid Denied ENER1 INC: Alex Sorokin to Receive $75,000 Monthly Salary as CEO ENER1 INC: Wants to Hire Reed Smith as General Counsel EPICEPT CORP: Receives Finalized FDA Guidance for AmiKet EPICEPT CORP: Engages SunTrust to Explore Potential Sale FAIR MARKET: Sec. 341 Meeting Set for Feb. 21 FENTON SUB: Disclosure Statement Hearing Set for Feb. 29 FENTON SUB: Court Approves Use of Cash Collateral on Final Basis FILENE'S BASEMENT: Judge Denies Request to Disband Committee FIRST GUARANTY: Closed; CenterState Bank Assumes All Deposits FIRST FOLIAGE: Court Converts Case to Chapter 7 FIRSTPLUS FINANCIAL: Judge Puts Bankruptcy Case on Hold FRANNCY HOLDINGS: Agrees to Dismiss Chapter 11 Case FRONTIER COMMUNICATIONS: S&P Affirms 'BB' Corp. Credit Rating GATEHOUSE MEDIA: Bank Debt Trades at 74% Off in Secondary Market GENESYS GROUP: Moody's Revises Sr. Secured Debt Rating to 'B1' GENTIVA HEALTH: S&P Keeps 'B-' Corporate Rating on Watch Negative GRAND RIVER: Court Approves Winegard Haley as Special Counsel GRUBB & ELLIS: Zazove Discloses 7.1% Equity Stake GSW HOLDINGS: Hires Special Counsel for BP Oil Spill Matters HAWKER BEECHCRAFT: Bank Debt Trades at 23% Off HEIDTMAN MINING: Asks Court to Dismiss Chapter 11 Case HENRY COUNTY: First State Bank Closed by Regulators HORIZON LINES: Resolves Record-Keeping Incident with DOJ HUDSON HEALTHCARE: Files 1st Amended Liquidating Plan HUPAH HOLDINGS: S&P Assigns 'B' Corporate Credit Rating INDALEX LTD: June 5 Hearing Date Set for Deemed Trust Appeal INTEGRATED BIOPHARMA: Imperium Forbearance Expired on Jan. 27 INVESTORS LENDING: Committee Hires McCallar as Attorney IPC SYSTEMS: Moody's Affirms 'B3' Corporate Family Rating JAMES RIVER: Amends Bylaws to Revise Director Nominations JESCO CONSTRUCTION: Sec. 341 Creditors' Meeting Set for Feb. 17 JLH ENTERPRISES: Files for Chapter 11 Bankruptcy Protection KENTUCKIANA MEDICAL: Town to Review Refinancing Plan KINGSBURY CORP: Sells Assets to Optimation for $2.6 Million KV PHARMACEUTICAL: Kingdon Capital Holds 7% of Class A Shares LAMAR MEDIA: Moody's Assigns 'B1' Rating to $400-Mil. Sr. Notes LAMAR MEDIA: S&P Upgrades Corporate Credit Rating to 'BB-' LAST MILE: Committee Can Retain Halperin Battaglia as Counsel LAST MILE: Taps Griffin as Investment Banker and Financial Advisor LAST MILE: Can Continue Using Manufacturers and Traders Cash LOS ANGELES DODGERS: Lease Decision Period Extended to April 30 LOS ANGELES DODGERS: Can Employ Covington as Special Counsel MARSICO HOLDINGS: Bank Debt Trades at 65% Off in Secondary Market MC2 CAPITAL: Court OKs MacConaghy & Barnier as Bankruptcy Counsel MEDIA GENERAL: Incurs $3.3 Million Net Loss in Fourth Quarter MEDIA GENERAL: Royce & Associates Owns 4.8% of Class A Shares MEDICURE INC: Reports C$1 Million Net Income in Q2 2012 MERCEDES HOMES: Ends Operations After Getting Deals for New Homes MERIDIAN SHOPPING: Sec. 341 Creditors' Meeting Set for Feb. 22 MERIDIAN SHOPPING: Status Conference Set for March 1 METRO-GOLDWYN-MAYER: S&P Raises Corporate Credit Rating to 'B' MF GLOBAL: Missing $1.2 Billion May No Longer Be Recoverable MICROTHIN.COM INC: Case Summary & 14 Largest Unsecured Creditors MIDWEST ENVIRONMENTAL: Case Summary & 10 Largest Unsec. Creditors MIL 509: Case Summary & 9 Largest Unsecured Creditors MOHEGAN TRIBAL: Files Mohegan Sun Statistical Report MONEYGRAM INT'L: David Brown Appointed SVP and CAO MOONLIGHT BASIN: Emerges From Bankruptcy; Now Owned by Lehman MOORE SORRENTO: Has Fifth Interim Authority to Use Cash Collateral MORGANS HOTEL: MFS Discloses 5.7% Equity Stake MORRIER RANCH: Sec. 341(a) Creditors' Meeting Set for March 8 MOUNTAIN VIEW: Case Summary & 10 Largest Unsecured Creditors MT. JORDAN: Emerges from Bankruptcy NATURA WORLD: Seeks U.S. Recognition of BIA Case in Canada NATURA WORLD: Chapter 15 Case Summary NEBRASKA BOOK: Closes Seven Off-Campus Bookstore NORTHBAY ENTERPRISES: Case Summary & 12 Largest Unsec Creditors ONCOLOGY ASSOCIATES: Voluntary Chapter 11 Case Summary OPEN SOLUTIONS: Bank Debt Trades at 10% Off in Secondary Market OPPENHEIMER PARTNERS: Cash Collateral Hearing Continued to March 6 OPPENHEIMER PARTNERS: U.S. Trustee Unable to Form Committee OPPENHEIMER PARTNERS: Court OKs Gordon Silver as Counsel OVERLAND STORAGE: Amends 5 Million Common Shares Offering OVERLAND PARK: Fitch Affirms 'BB' Rating on $65.7MM Rev. Bonds PACIFIC DEVELOPMENT: Asks Court to Decide on Properties' Value PATRIOT BANK: Closed; First Resource Bank Assumes All Deposits PATRIOT NATIONAL: To Offer 3-Mil. Shares Under 2012 Stock Plan PELICAN ISLES: Has Access to CDT Cash Collateral Until Feb. 28 PENINSULA HOSPITAL: Can Hire Alvarez & Marsal as Financial Advisor PENINSULA HOSPITAL: Can Access 1199 Funds' Cash Until Jan. 31 PENINSULA HOSPITAL: Examiner Taps Certilman Balin as Counsel PENINSULA HOSPITAL: Examiner Taps EisnerAmper LLP as Accountant PENINSULA HOSPITAL: Examiner Taps Giambalvo Stalzer as Accountant PETRA FUND: Files Schedules of Assets and Liabilities PHIBRO ANIMAL: S&P Affirms 'B-' Corporate Credit Rating PINNACLE AIRLINES: Obtains Pact to Defer Payment of $16-Mil. Debt POTOMAC SUPPLY: Seeks to Use Regions Bank Cash Collateral PROFESSIONAL VET: Ends Duty to File Reports Under Exchange Act PWPB LLC: Case Summary & 2 Largest Unsecured Creditors R.E. LOANS: Court Extends Plan Filing Period Until Feb. 1 READER'S DIGEST: S&P Affirms 'CCC+' Rating; Outlook Negative REALOGY CORP: Prices Offerings of Two Senior Secured Notes REALOGY CORP: Moody's Affirms 'Caa2' Corporate Family Rating REPUBLIC MORTGAGE: S&P Cuts Financial Strength Rating to 'R' RIVER ROCK: Suspending Filing of Reports with SEC ROOMSTORE INC: Can Hire FTI Consulting as Financial Advisors ROOMSTORE INC: Wants to Employ Kaplan & Frank as Local Counsel ROOMSTORE INC: Wants American Legal as Notice & Claims Agent ROOMSTORE INC: Committee Wants Hunton & Williams as Counsel ROOMSTORE INC: Panel Wants Alvarez & Marsal as Financial Advisors RYLAND GROUP: Posts $812,000 Net Income in Fourth Quarter SAVANNAH INTERESTS: Files Schedules of Assets and Liabilities SAVANNAH INTERESTS: Court OKs Morris Manning as General Counsel SCI REAL ESTATE: Hires Thompson & Knight as Special Counsel SEA TRAIL: Court Okays Hiring of McIntyre Paradis as Accountants SEA TRAIL: Can Hire The Finley Group as Financial Consultant SEARCHMEDIA HOLDINGS: Partially Settles Dispute with CSV, Et Al. SEARS HOLDINGS: Robert Riecker Elected as VP, Controller and CAO SECURITY NATIONAL: Files Schedules of Assets & Liabilities SECURITY NATIONAL: Can Access Cash Collateral Until Feb. 10 SEQUENOM INC: Files Infringement Lawsuits Against Aria and Natera SHUANEY IRREVOCABLE: U.S. Trustee Won't Appoint Creditor's Panel SMITH CREEK: U.S. Trustee Fails to Appoint Creditor's Committee STOCKDALE TOWER: U.S. Trustee Fails To Appoint Creditor's Panel SUDDENLY BEAUTIFUL: Feb. 8 Status Hearing Set in Involuntary Case SWEET PETROLEUM: Case Summary & 6 Largest Unsecured Creditors TARGA RESOURCE: Moody's Assigns 'Ba3' Rating to New Senior Notes TARGA RESOURCES: S&P Assigns 'BB' Rating on $400-Mil. Sr. Notes TENN COMMERCE BANK: Closed; Republic B&T Assumes All Deposits TOWN CENTER AT DORAL: Judge Allows CDD to File Rival Plan TRAVELPORT INC: Bank Debt Trades at 17% Off in Secondary Market TRAVELPORT INC: Bank Debt Trades at 14% Off in Secondary Market TRIBUNE CO: MDL Panel Consolidates 44 Shareholders Suits TRIBUNE CO: Deutsche Bank Wants Lift Stay on Fraud Suits TRIBUNE CO: Chicago Tribune Offers Employee Voluntary Buyouts TXU CORP: Bank Debt Trades at 35% Off in Secondary Market TRIBUNE CO: Bank Debt Trades at 36% Off in Secondary Market TRIUS THERAPEUTICS: Offering 8.6MM Common Shares at $5.25 Apiece TRONOX INC: Moody's Assigns 'Ba3' Corporate Family Rating TRONOX INC: S&P Assigns Prelim. 'BB' Corporate Credit Rating UNISYS CORP: Joseph Harrosh Ceases to Hold 5% Equity Stake VAN HUNTER: Files Red-Lined Third Amended Plan of Liquidation VILLA D'ESTE: Member Wants Court to Deny Case Dismissal Plea VILLAGE AT PENN: Files Schedules of Assets and Liabilities VILLAGE GROUP: Voluntary Chapter 11 Case Summary WATERFORD GAMING: Moody's Says Caa3 CFR Not Hit by Change Offer WILCOX EMBARCADERO: Files Chapter 11 Petition in Oakland WILCOX EMBARCADERO: Case Summary & 19 Largest Unsecured Creditors WINDRUSH SCHOOL: Asks Court to Dismiss its Chapter 11 Case WORLD SURVEILLANCE: Issues 6.2-Mil. Common Shares to Brio Capital W.R. GRACE: NJ Court Dismisses Claims vs. Integrity Insurance W.R. GRACE: Libby Site Waterways Still Contaminated W.R. GRACE: Former Martin Marietta Exec. Joins Board ZAIS INVESTMENT: Hildene Capital Withdraws Reorganization Plan * Distressed Investors Get Creative as Default Rate Remains Low * Large Companies With Insolvent Balance Sheets ********* 1555 WABASH: Can Use Cash Collateral Through Jan. 31 ---------------------------------------------------- Judge Jacqueline Cox of the U.S. Bankruptcy Court for the Northern District of Illinois authorized 1555 Wabash LLC to use cash collateral through Jan. 31, 2012, in accordance with a budget. However, the Debtor is barred from paying any affiliate or insider of the Debtor. The Lenders are granted valid, perfected, enforceable security interests in and to Debtor's post-petition assets, but only to the extent of any diminution in the value of assets. A copy of the cash collateral order is available for free at: http://bankrupt.com/misc/1555WABASH_cashcoll_intorder.pdf As reported in the Troubled Company Reporter on Jan. 10, 2012, 1555 Wabash LLC has sought Court authority to use certain cash and cash equivalents that allegedly serve as collateral for claims asserted against the Debtor and its property by AMT CADC Venture LLC as senior lender, and Weyerhauser Realty Investors as junior lender. A full-text copy of Wabash's proposed 4-month budget through April 2012 is available at http://is.gd/wWxrWI 1555 Wabash LLC owns and operates a 14-story mixed use building located at 1555 South Wabash, in Chicago, Illinois. The property is comprised of 176 residential units plus 11,000 square feet of commercial space located on the first floor of the building. The property was originally developed as condominium units to be sold at designated sale prices to qualified buyers. Construction was generally completed as of the middle of 2009. Only 36 of the 100 sale contracts closed. As of the Petition Date, the Debtor is leasing 115 of the remaining 140 residential apartment units -- roughly 82% -- to qualified tenants, while the commercial space is presently vacant. The cash collateral issues in the Chapter 11 case relate to the rents generated at the Property and the funds on deposit in accounts maintained by the Debtor. The Senior Lender asserts a first position mortgage lien and claim against the Property which purportedly secures a senior mortgage debt of $42,126,967. In addition to its mortgage lien on the Property, the Senior Lender asserts a security interest in and lien upon the rents being generated at the Property. The Junior Lender asserts a mortgage lien and claim against the Property which secures a second subordinate mortgage debt of $7,492,743. In addition to its mortgage lien on the Property, the Junior Lender asserts a security interest in and lien upon the rents being generated at the Property. The Debtor said it needs access to cash collateral to continue to operate its business and manage its financial affairs and effectuate an effective reorganization. According to papers filed by the Debtor in court, the original mortgage lender was seized by regulators with all loans (including the Debtor's loan) and related assets being acquired by and transferred to the Senior Lender. The Debtor attempted to negotiate a re-setting of the required sale prices for the condominium units so as to reflect realistic values for such condominium units in light of the economic downturn. Both the regulators and, then, the Senior Lender refused to adjust these sale prices. As a result, the Debtor has been unable to sell the condominium units (as the sale prices are grossly in excess of that justified in the marketplace) and has turned to renting the unsold condominiums as apartment units. The Debtor's operational and profitability problems are principally due to the general economic problems facing the country over the last several years (particularly in real estate). Despite these issues, the Debtor said it generates substantial rental income at the Property that will serve as the basis for the formulation and implementation of an exit strategy from the Chapter 11 case. In partial response to an action brought by the Debtor against its prior mortgage lender and other mechanics lien creditors in the Circuit Court of Cook County, Illinois, the Senior Lender filed a counterclaim which, among other things, seeks to foreclose on the Property. On Dec. 22, 2011, the State Court entered an Order in the Foreclosure appointing a receiver for the Property. The Chapter 11 case was filed before the receiver took possession of the Property. The Debtor has attempted to resolve all of the issues with the Senior Lender, thus far without success. The Debtor intends to continue with settlement negotiations with the Senior Lender. 1555 Wabash LLC filed for Chapter 11 (Bankr. N.D. Ill. Case No. 11-51502) on Dec. 27, 2011, to halt foreclosure of the property. Judge Jacqueline P. Cox oversees the case. David K. Welch, Esq., at Crane Heyman Simon Welch & Clar, serves as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by Theodore Mazola, president of New West Realty Development Corp, sole member and manager of the Debtor. 237 EAST ONTARIO: Files Schedules of Assets & Liabilities --------------------------------------------------------- 237 East Ontario LLC disclosed in its Summary of Schedules filed Jan. 13, 2012, that its total assets reached $11,057,764 while total liabilities are $8,305,907: Assets Liabilities ------ ----------- A. Real Property $9,000,000 $964,019 B. Personal Property 2,057,764 C. Property Claimed n/a n/a as Exempt D. Creditors Holding 1,075,746 Secured Claims E. Creditors Holding 0 Unsecured Priority Claims F. Creditors Holding 6,266,141 Unsecured Nonpriority Claims About 237 East Ontario LLC 237 East Ontario LLC filed its Chapter 11 petition (Bankr. N.D. Ill. Case No. 11-49504) on Dec. 9, 2011. Judge Carol A. Doyle presides over the proceeding. The Debtor is represented by Neal Wolf & Associates, LLC. 237 EAST ONTARIO: Court Orders Filing of Ch. 11 Plan by April 9 --------------------------------------------------------------- Judge Carol A. Doyle of the U.S. Bankruptcy Court for the Northern District of Illinois ordered 237 East Ontario LLC to file its Chapter 11 Plan and Disclosure Statement by April 9, 2012. Counsel preparing the documents will submit preliminary drafts to the United States Trustee and creditor's counsel on the notice list in order that comments may be received before filing, Judge Doyle ruled. The case is set for a status on the filing of the plan and disclosure statement on April 12, 2012, at 10:30 a.m. in Courtroom 742, 219 South Dearborn Street, Chicago, Illinois, Judge Doyle directed. 237 East Ontario LLC filed its Chapter 11 petition (Bankr. N.D. Ill. Case No. 11-49504) on Dec. 9, 2011. Judge Carol A. Doyle presides over the proceeding. The Debtor is represented by Neal Wolf & Associates, LLC. On Jan. 13, 2012, the Debtor disclosed its total assets reached $11,057,764 while total liabilities are $8,305,907. 237 EAST ONTARIO: Can Hire Neal Wolf as Restructuring Counsel ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois gave 237 East Ontario LLC permission to employ Neal Wolf & Associates, LLC, as its restructuring and bankruptcy counsel. The firm will: (a) advise the Debtor with respect to its rights, powers, and duties as debtor-in-possession; (b) advise the Debtor with respect to matters like, without limitation, the automatic stay, obtaining of credit, use of property of the estate, assumption or rejection of executory contracts and unexpired leases, avoidance actions, sales of assets, claims belonging to and against the estate, and formulation of a plan of reorganization; (c) attend meetings and negotiate with representatives of creditors and other parties-in-interest; (d) take all necessary actions to protect and preserve the Debtor's estate, including, without limitation, prosecuting actions on the Debtor's behalf, defending any action commenced against the Debtor, and representing the Debtor's interests in negotiations concerning litigation in which the Debtor is or becomes involved, including objections to claims filed against the Debtor's estate; (e) represent the Debtor in connection with all motions, applications, answers, objections, orders, reports and papers necessary to the administration of the Debtor's estate; (f) prepare and take any necessary action on behalf of the Debtor to obtain approval of any disclosure statement and confirmation of a Chapter 11 plan; (g) appear before the Court, any appellate courts, and the United States Trustee in connection with any matter relating to the case; (h) represent the Debtor in connection with any interactions with any federal, state, and local government agencies; and (i) perform all other necessary legal services and provide all other necessary legal advice to the Debtor in connection with the case. NW&A received from the Debtor attorneys' fees totaling $14,686 for the legal services performed by NW&A in preparing the case for filing. The current billing rates of the attorneys and the legal assistants to be primarily responsible for representing the Debtor, which NW&A may subsequently review and revise, are: Name Title Hourly Rate ---- ----- ----------- Neal L. Wolf Manager & Sole Member $595 Gerald F. Munitz Senior Counsel 595 Dean C. Gramlich Counsel 475 Jordan M. Litwin Associate 325 Folarin Dosunmu Associate 325 John A. Benson, Jr. Associate 300 Jacob R. Lenzke Associate 300 Dominic J. Dutra Law Clerk 200 Diane M. Wolski Legal Assistant 150 The Debtor believes NW&A is a "disinterested person" as that phrase is defined in Section 101(14) of the Bankruptcy Code. About 237 East Ontario LLC 237 East Ontario LLC filed its Chapter 11 petition (Bankr. N.D. Ill. Case No. 11-49504) on Dec. 9, 2011. Judge Carol A. Doyle presides over the proceeding. The Debtor is represented by Neal Wolf & Associates, LLC. On Jan. 13, 2012, the Debtor disclosed its total assets reached $11,057,764 while total liabilities are $8,305,907. 3900 BISCAYNE: Can Use BB&T Cash Collateral Up to Feb. 21 --------------------------------------------------------- The Hon. A. Jay Cristol of the U.S. Bankruptcy Court for the Southern District of Florida authorized, on an interim basis, 3900 Biscayne, LLC to use the cash collateral of Branch Banking and Trust Company (BB&T), on an interim basis up to Feb. 21, 2012, in accordance with a budget. Judge Cristol orders that the Debtor will not make any payments for the line item titled "Phase II Tenant Build-Out ($55,000 in total)" without prior notice and written approval by or on behalf of BB&T. Moreover, no payments will exceed the line items on the budget by an amount exceeding 5% of each such line item. As adequate protection for any diminution in value of the collateral, the Debtor will grant BB&T will receive replacement liens against all of the Debtor's assets, to the same priority, validity and extent that BB&T held prepetition. As additional adequate protection, the Debtor will make monthly payments to BB&T of interest only on the A Note principal of $10,800,000 at the annual rate of 2.7%. A final hearing on the motion is set on Feb. 15, 2012, at 2:30 p.m. A copy of the cash collateral order and budget is available for free at: http://bankrupt.com/misc/3900BISCAYNE_cashcollbudget.pdf About 3900 Biscayne 3900 Biscayne, LLC, is a Florida limited liability company which owns real property located at 3900 Biscayne, in Miami, currently leased to Miami Arts, Inc., a tuition-free public charter school offering college-preparatory academic curriculum and conservatory- style training in the visual and performing arts. The Company filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 11-22948) on May 12, 2011, in Miami, Florida. Judge A. Jay Cristol presides over the case. James C. Moon, Esq., and Peter D. Russin, Esq., at Meland Russin & Budwick, P.A., in Miami, represent the Debtor in its Chapter 11 effort. The Debtor disclosed $14,857,484 in total assets and $13,691,533 in total liabilities as of the Chapter 11 filing. To date, the U.S. Trustee has not appointed an official committee of unsecured creditors in the Debtor's case. 400 BLAIR: Asks Court to Reinstate Stay on SBMS Foreclosure Sale ---------------------------------------------------------------- 400 Blair Realty Holdings, L.L.C., has asked the U.S. Bankruptcy Court for the District of New Jersey to reinstate the automatic stay with respect to SBMS' foreclosure sale. According to the Debtor's case docket, remote electronic access to the transcript regarding the Dec. 21, 2011, hearing on the Debtor's motion to reinstate stay will be restricted until March 21, 2012. About 400 Blair Realty 400 Blair Realty Holdings, LLC, in Morristown, New Jersey, was formed in June 2000 to acquire real property improved with 181,000 sq. ft industrial building situated on 14.7 acres located at 400 Blair Road, Carteret, Middlesex County, New Jersey. The Property was acquired on Aug. 6, 1999. United States Land Resources, L.P., holds a 50% equity interest in 400 Blair. USLR's general partner is United States Realty Resources, Inc., and Lawrence S. Berger is the president of USRR. 400 Blair's other member is Success Treuhand GmbH, which holds a 50% equity interest. Success is a trust set up under German law. Success operates much like a United States trust company. Success' sole owner is Eckart Straub, a German national. 400 Blair filed for Chapter 11 bankruptcy (Bankr. D. N.J. Case No. 11-37887) on Sept. 23, 2011, after a court appointed a receiver for its property and ordered a foreclosure sale. Judge Michael B. Kaplan presides over the case. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by Lawrence S. Berger, manager. The Debtor's bankruptcy counsel is Morris S. Bauer, Esq., at Norris McLaughlin & Marcus, PA, in Bridgewater, New Jersey. 505 WEST: Case Summary & Largest Unsecured Creditor --------------------------------------------------- Debtor: 505 West 150th Street LLC 505 West 150th Street New York, NY 10031 Bankruptcy Case No.: 12-10290 Chapter 11 Petition Date: January 25, 2012 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Judge: James M. Peck Debtor's Counsel: Roy J. Lester, Esq. LESTER & ASSOCIATES, P.C. 600 Old Country Road, Suite 229 Garden City, NY 11530 Tel: (516) 357-9191 Fax: (516) 357-9281 E-mail: rlester@rlesterlaw.com Scheduled Assets: $1,700,860 Scheduled Liabilities: $497,536 The petition was signed by Yolanda Reeder, 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 ------ --------------- ------------ ConEd Services $1,000 Cooper Station P.O. Box 138 New York, NY 10276 ADAMS COUNTY: Moody's Affirms 'Ba1' General Obligation Rating ------------------------------------------------------------- Moody's Investors Service has affirmed Adams County's (MS) Ba1 general obligation rating and has revised the outlook to positive from negative. The rating affirmation affects $1.1 million in outstanding unlimited tax debt issued by the County in 2002. SUMMARY RATIONALE The Ba1 rating affirmation reflects the county's weak financial management practices as demonstrated by eight years of deficit spending (fiscals 2000 through 2008) and negative fund balance position (fiscal 2003 through 2009); potential for future deficit spending as county management has yet to correct financial management practices that resulted in prior deficits; and outsized enterprise risk that is posed by the county owned and operated hospital. The revised outlook reflects positive operating results in fiscal 2009 and 2010 and a positive fund balance position due to the resolution of an inter-fund liability. The positive outlook also reflects the possibility that improved financial management procedures will be considered. STRENGTHS - Relatively stable local economy - Low debt burden CHALLENGES - History of deficit spending and negative fund balance position - Outsized enterprise risk posed by county owned hospital OUTLOOK The positive outlook reflects the county's positive fund balance position that was established in fiscal 2010 and adequate cash balance. Moody's anticipates further improvement in the county's financial position as the county works to restore balanced operations and implement sound budgeting practices. WHAT COULD CHANGE THE RATING -- UP: Established trend of balanced operations and improved financial position Implementation of improved and codified financial management practices that mitigate the risk of future deterioration of the county's financial profile WHAT COULD CHANGE THE RATING -- DOWN: Deficit spending that reduces the county's financial flexibility Return to negative fund balance position Inability or unwillingness to implement improved financial management policies Operating or debt service support to the county hospital that exceeds current expectations and hinders the county's financial recovery PRINCIPAL METHODOLOGY The principal methodology used in this rating was General Obligation Bonds Issued by U.S. Local Governments published in October 2009. ADOBE TRUCKING: U.S. Trustee Wants Case Converted to Chapter 7 -------------------------------------------------------------- Judy A. Robbins, U.S. Trustee for Region 7, asks the U.S. Bankruptcy Court for the Western District of Texas to convert the Chapter 11 case of Adobe Trucking, Inc., to one under Chapter 7 of the Bankruptcy Code. According to the U.S. Trustee, as of Jan. 10, 2012, the Debtor has failed to file a disclosure statement or plan of reorganization. Based on the Debtor's monthly operating reports, it does not appear that Debtor is able to generate any income. The U.S. Trustee asserts that the Debtor's delay in proposing a plan and insufficient cash flow evidence the substantial or continuing loss to or diminution of the estate and the absence of a reasonable likelihood of rehabilitation. The U.S. Trustee is represented by: James W. Rose, Jr., Esq. 615 E. Houston, Rm. 533 P.O. Box 1539 San Antonio, TX 78295-1539 Tel: (210) 472-4640 Fax: (210) 472-4649 About Adobe Trucking Odessa, Texas-based Adobe Trucking, Inc., filed for Chapter 11 bankruptcy protection (Bankr. W.D. Texas Case No. 10-70353) on Nov. 23, 2010. Wiley France James, III, Esq., at James & Haugland, P.C., serves as the Debtor's bankruptcy counsel. The Debtor disclosed $10,339,616 in assets and $9,685,743 in liabilities. In June 2011, the Bankruptcy Court denied the request of PNC Bank N.A., M&I Business Credit LLC, Land Holding LLC, and Paul Frank to convert the case to one under Chapter 7 of the Bankruptcy Code. AES ENERGY: Has Yet to Find Buyer for Facilities ------------------------------------------------ John Christensen at the Chronicle-Express reports that AES Eastern Energy spokesman Bill Rady, president of AES Greenidge, said the company's six coal-fired power plants have been packaged for sale in two lots; the two large plants, Somerset and Cayuga, and the four smaller plants, Greenidge, Westover, Hickling, and Jennison in New York. But no buyer has come forth, and two of the plants are already scheduled to be demolished. According to the report, Mr. Rady said that of the four, Greenidge stands the best chance of purchase, being the most recently operated facility and most easily restarted. Hickling and Jennison have been shut down since 2000. Somerset is also likely to come down. But Mr. Rady holds out little hope that a buyer will come forward, the report says. The report relates that the Cayuga and Somerset plants are still operating, but at reduced capacity due to low demand and reduced electricity price. "They are not economically viable to survive," Mr. Rady added. "Cheap gas and expensive coal, plus the environmental requirements of federal regulations are killing them." The report notes AES Eastern Energy just negotiated a reduction of Greenidge's Payment In Lieu Of Taxes -- PILOT -- with Yates County and the Town of Torrey. From the originally agreed $1.1 million annual payment when it was operable, AES EE will pay just $600,000 this year and $400,000 next year. The report also relates that, with the survival of the company so unsure, Steve Griffin of the Finger Lakes Economic Development Center suggested the arrangement as preferable to the $500,000 annual payments the company wanted. The report adds Messrs. Rady and Griffin stated that if Greenidge is demolished, court appointed trustees will ensure a complete cleanup of the site in the dissolution of the company properties. About AES Eastern Energy Ithaca, New York-based AES Eastern Energy, L.P. operates four coal-fired electricity generating facilities with a gross capacity of 1,169 MW. AEE leases two of those plants. AEE sells electricity into the spot market at prevailing New York Independent System Operator wholesale market prices. AEE is a special purpose entity that is indirectly wholly owned by AES Corp. AES Eastern Energy and 13 affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 11-14138 through 11-14151) on Dec. 30, 2011. Lawyers at Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A. are legal counsel to AES Eastern Energy and affiliates. Barclays Capital is serving as investment banker and financial advisor. Kurtzman Carson Consultants serves as claims and noticing agent. AES Eastern Energy estimated $100 million to $500 million in assets and $500 million to $1 billion in debts. The petition was signed by Peter Norgeot, general manager. ALC HOLDINGS: Has Court OK to Employ Melanie B. Cox as Interim CEO ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware authorized ALC Holdings LLC, et al., to employ MBC Consulting and Melanie B. Cox as interim chief executive officer. MBC Consulting is performing restructuring services to the Debtors. The Court ordered that for a period of three years after the conclusion of the engagement, neither MBC, or any affiliates will make any investments in the Debtors or the Reorganized Debtors. About ALC Holdings LLC Farmington Hills, Michigan-based ALC Holdings LLC dba American Laser Centers, and American Laser Skincare, provides laser hair removal treatments. The Company and its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-13853) on Dec. 8, 2011. Bankruptcy Judge Mary F. Walrath presides over the case. Landis Rath & Cobb LLP represents the Debtors in their restructuring efforts. BMC Group Inc. serves as claims agent; SSG Capital Advisors, LLC serves as financial advisors; and Traverse, LLC serves as restructuring crisis manager. As of Oct. 31, 2011, the Debtors disclosed total assets of $80.4 million and total liabilities including $40.3 million owing on a first-lien debt, $51 million in subordinated notes, and $17.9 million is owing to trade suppliers. American Laser Centers of California LLC disclosed $20,988,454 in assets and $99,951,866 in liabilities as of the Chapter 11 filing. ALC Holdings LLC disclosed $14,662 in assets and $93,744,094 in liabilities. The petitions were signed by Andrew Orr, chief financial officer & VP corporate operations. Herrick, Feinstein LLP represents the Official Committee of Unsecured Creditors. The Committee tapped Ashby & Geddes, P.A. as Delaware Counsel and J.H. Cohn LLP as its financial advisor. ALLY FINANCIAL: Moody's Assigns B2 Rating to Subordinated Debt -------------------------------------------------------------- Moody's Investors Service assigned a rating of B2 to Ally Financial Inc.'s (Ally; B1 senior unsecured) $482.9 million subordinated unsecured notes maturing December 31, 2018. These notes were issued as part of an exchange offering in December 2008 by Ally to holders of certain notes issued by Residential Capital LLC (ResCap; Ca senior unsecured), an Ally subsidiary. The rating outlook is stable. Due to an internal administrative error, Moody's previously misclassified this instrument as senior unsecured debt and therefore assigned an incorrect rating. Moody's has now reclassified this debt as subordinated and assigned a new rating. The ratings that were previously assigned to this debt in error have been removed. RATINGS RATIONALE The B2 rating assigned to Ally's subordinated notes reflects their priority in Ally's capital structure, including their subordination to Ally's senior indebtedness. Ally's ratings are based upon its position as an established auto finance company with important business ties to GM and Chrysler and their dealers. Ratings are also supported by the company's progress in strengthening capital and liquidity. Ally's ratings and outlook also reflect its operating prospects in its core auto finance and mortgage origination and servicing businesses, based upon positive asset quality performance trends. Ally's ratings are constrained by the firm's GM and Chrysler- related concentrations, its exposure to ResCap contingencies, execution risks associated with its efforts to further transition to a bank operating and funding model, and uncertainty regarding the sustainability of its long-term performance prospects given the competitive environment and the company's evolving business model. The last rating action was an upgrade of Ally's issuer and senior unsecured debt ratings to B1 from B3 on February 7, 2011. The principal methodology used in this rating was Analyzing the Credit Risks of Finance Companies published in October 2000. Ally Financial Inc. is a global provider of auto finance, residential mortgage finance, and related products and services. Residential Capital, LLC is a wholly-owned subsidiary of Ally engaged in residential mortgage origination and servicing. AMERCABLE INC: S&P Puts 'B-' Corporate Rating on Watch Negative --------------------------------------------------------------- Standard & Poor's Rating Services placed all of its ratings, including the 'B-' corporate credit rating, on El Dorado, Ark.- based AmerCable Inc. on CreditWatch with negative implications. "The negative CreditWatch listing reflects our expectation that the electrical cable manufacturer's upcoming revolver maturity may affect its ability to fund near-term obligations, coupled with the negligible headroom it has under financial covenants governing its credit facilities and its overall liquidity position," said Standard & Poor's credit analyst Gayle Bowerman. "It also incorporates our view that growth in the company's end markets may be slowing following recent announcements of curtailed production in the natural gas and mining sectors. Despite EBITDA growth in 2011, we are uncertain that the company's performance will be strong enough to comply with the leverage covenant on its first- lien notes which limit its trailing-12-month debt to EBITDA without an equity cure from its private equity sponsor, particularly in light of the recent covenant step down to 4.5x from 5x," S&P said. "The rating on AmerCable reflects our assessment of the company's business risk profile as 'vulnerable' and financial risk profile as 'highly leveraged'. The company maintains thin cash balances and may be unable to fund daily operations if their revolver is not refinanced. We expect that even small fluctuations in EBTIDA may result in a covenant violation without a contribution from the company's private equity sponsor," S&P said. "In resolving the CreditWatch, we will evaluate the company's near-term operating and financial prospects, including the refinancing of its revolver and covenant projections. We expect to resolve the CreditWatch within 90 days," S&P said. AMERICAN REALTY: Files for Chapter 11 Las Vegas ----------------------------------------------- American Realty Trust, Inc., filed a Chapter 11 petition (Bankr. D. Nev. Case No. 12-10883) on Jan. 26, 2012, estimating assets and debts of $10 million to $50 million. The Debtor is a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101 (51B). According to the docket, a meeting of creditors under 11 U.S.C. Sec. 341 is scheduled for March 1, 2012 at 1:00 p.m. Proofs of claim are due May 30, 2012. AMERICAN REALTY: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: American Realty Trust, Inc. 953 East Sahara, Suite 200 Las Vegas, NV 89104 Bankruptcy Case No.: 12-10883 Chapter 11 Petition Date: January 26, 2012 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Ogonna M. Atamoh, Esq. SANTORO DRIGGS WALCH LEARNEY HOLLEY & THOMPSON 400 S. 4th Street, 3rd Floor Las Vegas, NV 89101 Tel: (702) 791-0308 Fax: (702) 791-1912 E-mail: oatamoh@nevadafirm.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Steven A. Shelley, vice president. ATRINSIC INC: Earns $615,000 from Sale of Subscription Business --------------------------------------------------------------- Atrinsic, Inc., completed the sale of certain short codes, domain names, trademarks and databases used in the Company's subscription businesses to Mkono Media Corp., pursuant to an asset purchase agreement by and between the Company and Mkono dated as of Dec. 28, 2011. The transaction resulted in net cash proceeds to the Company of $615,000. About Atrinsic Inc. New York City-based Atrinsic, Inc. (NASDAQ: ATRN) is a marketer of direct-to-consumer subscription products and an Internet search-marketing agency. The Company sells entertainment and lifestyle subscription products directly to consumers, which the Company markets through the Internet. The Company also sells Internet marketing services to its corporate and advertising clients. The Company reported a net loss of $14.2 million on $25.7 million of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $11.6 million on $32.2 million of revenue for the nine months ended Sept. 30, 2010. The Company's balance sheet at Sept. 30, 2011, showed $14.1 million in total assets, $19.7 million in total liabilities, and a stockholders' deficit of $5.6 million. As reported in the TCR on April 12, 2011, KPMG LLP, in New York, expressed substantial doubt about Atrinsic'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 from operations. ATTACHMATE CORP: S&P Affirms 'BB-' Rating on $300-Mil. Term Loan ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Houston- based host connectivity and systems and security management provider Attachmate Corp. to stable from positive. "We also affirmed all existing ratings on the company," S&P said. Attachmate is one of four business units in a privately held enterprise software holding company named The Attachmate Group Inc. The other three business units are Novell, NetIQ, and SUSE. The senior secured facilities are secured by substantially all the assets of The Attachmate Group. "Additionally, we affirmed the 'BB-' issue-level rating on the company's $300 million first-lien term loan add-on. The '1' recovery rating remained unchanged and indicates our expectation of very high (90%-100%) recovery in the event of a payment default," S&P said. "The company also has a $275 million second-lien term loan and a $100 million second-lien term loan add-on that we do not rate," S&P said. The company intends to use the proceeds from the first- and second-lien term loan add-ons, along with about $243 million of existing cash, to pay dividends of $609 million to the sponsors. "The ratings reflect our expectation that Attachmate will generate good free operating cash flow (FOCF) and the substantial progress made in its integration of Novell, which it acquired in April 2011," said Standard & Poor's credit analyst David Tsui. "Attachmate had identified substantial operational and end-market synergies and expects to fully realize the planned benefits by June 2012, the most considerable of which is from reduction-in- force, which the company has already implemented by September 2011. However, the rating reflects its aggressive financial policy, with the proposed dividend recapitalization within a year of a transformative acquisition, while still facing the challenge of reversing the negative revenue trend at Novell." "For the 12 months ended Sept. 30, 2011, total revenue has declined modestly. Legacy Attachmate has experienced revenue growth while Novell's has been under pressure, with revenue declines due to the establishment of post-closing business unit structure and the extended closing period for the acquisition. Overall profitability is good, in the high-30% area, and we expect it remain at the current level as the cost-reduction plan has been mostly complete," S&P said. "The stable outlook reflects our expectation that Attachmate's operating performance will continue to improve following the integration of the Novell acquisition. We could raise the rating if Attachmate can grow organically by improving its Novell and NetIQ businesses without significantly affecting the company's profitability, while sustaining their leverage at its current level," S&P said. "We could consider a downgrade if the reduced headcount contributes to higher-than-expected revenue declines, or if the company engages in additional shareholder-friendly initiatives, leading to depressed FOCF and leverage sustained above 8x," S&P said. AURORA USA: Moody's Assigns 'B3' Corporate Family Rating -------------------------------------------------------- Moody's Investor's Service assigned a Caa1 rating to Aurora USA Oil & Gas, Inc.'s (Aurora) senior unsecured notes due 2017. Moody's also assigned a B3 Corporate Family Rating (CFR) and Probability of Default Rating (PDR), and an SGL-2 Speculative Grade Liquidity (SGL) rating to Aurora. This is the first time that Moody's has rated Aurora. The outlook is stable. RATINGS RATIONALE "The B3 CFR is supported by Aurora's strong full cycle metrics with production consisting of 82% liquids, leverage which is expected to decline to low levels during 2012 assuming production grows in line with company expectations, the strong operational track record of Marathon which is the operator of all of Aurora's wells, a pro-forma cash balance large enough to fund nearly all of planned 2012 capital spending, and a large drilling inventory", commented Jonathan Kalmanoff, Moody's Analyst. "The rating is restrained by concentration in a single field with a small number of wells and early stage operations." Aurora's position as a non-operating owner of minority interests in wells and acreage operated by Marathon has both positive and negative implications. Having a minority interest allows Aurora to diversify its drilling risk among a larger number of wells while benefitting from Marathon's strong operational track record. The arrangement also limits the control Aurora has over its capital spending budget, since the company must fund its share of the drilling costs for any wells Marathon wants to drill or lose its interests in those wells (and acreage surrounding the well, prior to the acreage becoming held by production). The CFR and stable outlook assume that Aurora will maintain adequate liquidity to fund its share of Marathon's drilling program and that production in the Sugarkane Field will grow in line with company expectations. The SGL-2 indicates good liquidity through 2012. At September 30, 2011 pro forma for the notes issuance, Aurora had 265 million of cash and $5 million of availability under a credit facility, compared to a 2012 capital expenditure budget of $276 million for 2012. The credit facility has a pro forma borrowing base of $35 million and is subject to redeterminations in April and October of each year based on the value of oil and gas reserves. Financial covenants under the facility are debt / EBITDAX of not more than 4.5x (decreasing to 4.0x in the fourth quarter of 2012), EBITDAX / interest of not less than 2.0x, and a current ratio of not less than 1.0x. These covenants do not apply until March 31, 2012 and Moody's expects the company to be well in compliance with the covenants through 2012 with leverage decreasing as production ramps up over the course of the year. There are no debt maturities prior to 2016 when the credit facility matures. Substantially all of the company's assets are pledged as security under the credit facility which limits the extent to which asset sales could provide a source of additional liquidity if needed. The Caa1 senior unsecured note rating reflects both the overall probability of default of Aurora, to which Moody's assigns a PDR of B3, and a loss given default of LGD4-59%. The size of the senior secured revolver's priority claim relative to the senior unsecured notes results in the notes being rated one notch beneath the B3 CFR under Moody's Loss Given Default Methodology. The stable outlook assumes that Aurora will maintain adequate liquidity to fund its share of Marathon's drilling program, and that production in the Sugarkane Field will grow in line with company expectations. Moody's could upgrade the ratings if Aurora achieves net proved developed reserves of at least 40 MMBOE and net average daily production in excess of 15 MBOE per day while maintaining debt to net proved developed reserves below $10 per BOE. Moody's could downgrade the ratings if Aurora fails to maintain adequate liquidity to fund its share of Marathon's drilling program, the production response to capital spending is not in line with company forecasts, or EBITDA/interest is expected to be below 2.5x on a quarterly run rate basis. The principal methodology used in rating Aurora was the Global Independent Exploration and Production Industry Methodology published in December 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Aurora USA Oil & Gas, Inc. is an independent E&P company headquartered in Texas. It is a wholly owned subsidiary of parent company Aurora Oil and Gas Limited which is headquartered in Australia. BANKEAST: Closed; U.S. Bank NA Assumes All Deposits --------------------------------------------------- BankEast of Knoxville, Tenn., was closed on Jan. 27, 2012, by the Tennessee Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with U.S. Bank National Association of Cincinnati, Ohio, to assume all of the deposits of BankEast. The ten branches of BankEast will reopen during normal banking hours as branches of U.S. Bank National Association. Depositors of BankEast will automatically become depositors of U.S. Bank National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of BankEast should continue to use their existing branch until they receive notice from U.S. Bank National Association that it has completed systems changes to allow other U.S. Bank National Association branches to process their accounts as well. As of Sept. 30, 2011, BankEast had around $272.6 million in total assets and $268.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, U.S. Bank National Association agreed to purchase essentially all of the assets. Customers with questions about the transaction should call the FDIC toll-free at 1-800-517-1839. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/bankeast.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $75.6 million. Compared to other alternatives, U.S. Bank National Association's acquisition was the least costly resolution for the FDIC's DIF. BankEast is the seventh FDIC-insured institution to fail in the nation this year, and the second in Tennessee. The last FDIC-insured institution closed in the state was Tennessee Commerce Bank, Franklin, also on Jan. 27. BATAVIA NURSING: Bankruptcy Trustee Pays Employees -------------------------------------------------- Scott DeSmit at the Daily News reports that Jeffrey Hammond, a spokesman for the New York State Department of Health, said a bankruptcy trustee issued checks to employees at Batavia Nursing Home on Jan. 24, 2012. According to the report, it was one of numerous times that employees were not paid on time in what has been a problematic year for the nursing home. The nursing home at 257 State St. has been the scene of difficulties during the past year due to the legal troubles of its owner, Marc I. Korn of East Amherst. The report relates that Mr. Korn was indicted in federal court in December and charged with engaging in illegal schemes to obtain money and making false statements to police. Mr. Korn allegedly stole up to $1 million from a charitable organization and from patient trust accounts. Based in Williamsville, New York, Batavia Nursing Home LLC filed for Chapter 11 protection on Sept. 19, 2011 (Bankr. W.D. N.Y. Lead Case No. 11-13223). Judge Michael J. Kaplan presides over the case. Arthur G. Baumeister, Jr., Esq., at Amigone, Sanchez, et al., represents the Debtors. The Debtor estimated both assets and debts of between $1 million and $10 million. BEACON POWER: Creditors' Panel Can Hire Blank Rome as Counsel ------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Beacon Power Corporation, et al., sought and obtained permission from the U.S. Bankruptcy Court to retain Blank Rome LLP as counsel to represent it and perform services for the Committee in connection with carrying out its fiduciary duties and responsibilities under the Bankruptcy Code consistent with section 1103(c) and other provisions of the Bankruptcy Code. The customary and proposed hourly rates to be charged Blank Rome for the individuals expected to be directly involved in representing the Committee are: Bonnie Glantz Fatell $730 per hour Gregory F. Vizza $300 per hour From time to time, other Blank Rome attorneys may be involved in these cases as needed. Hourly rates of partners and counsel range from $390 to $875 per hour, associates? rates range from $225 to $545 per hour, and paralegals? rates range from $120 to $315 per hour. To the best of the Debtors' knowledge, Blank Rome is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Beacon Power Tyngsboro, Mass.-based Beacon Power Corporation (Nasdaq: BCOND) -- http://www.beaconpower.com/-- designs, manufactures and operates flywheel-based energy storage systems that it has begun to deploy in company-owned merchant plants that sell frequency regulation services in open-bid markets. Beacon Power filed for Chapter 11 protection on Oct. 30, 2011, in Delaware (Bankr. D. Del. Case No. 11-13450). Brown Rudnick and Potter Anderson & Corroon serve as the Debtor's counsel. Beacon disclosed assets of $72 million and debt totaling $47 million, including a $39.1 million loan guaranteed by the U.S. Energy Department. Beacon built a $69 million facility with 20 megawatts of balancing capacity in Stephentown, New York, funded mostly by the DoE loan. The Debtors tapped Miller Wachman, LLP as auditors, Pluritas, LLC as intellectual property advisors, CRG Partners Group LLC as financial advisors. Beacon Power is the second cleantech company which has been backed by the U.S. Department of Energy via loan guarantees to fail this year. The first was Solyndra, which declared Chapter 11 bankruptcy on Sept. 6, 2011. Roberta A. DeAngelis, the United States Trustee for Region 3, appointed four unsecured creditors to serve on the Official Committee of Unsecured Creditors of Beacon Power Corporation. Affiliates that simultaneously sought Chapter 11 protection are Stephentown Holding LLC (Bankr. D. Del. Case No. 11-13451) and Stephentown Regulation Services LLC (Bankr. D. Del. Case No. 11-13452). BEAR VALLEY: Court Dismisses Chapter 11 Case -------------------------------------------- The U.S. Bankruptcy Court for the Central District of California dismissed the Chapter 11 case of Bear Valley Family Limited Partnership at the behest of its owner, Ronan Armony. As reported in the Troubled Company Reporter on June 20, 2011, Ronan Armony sought dismissal of the Debtor's Chapter 11 case. Mr. Armony said he is the 80% owner and general partner of the Debtor. According to Mr. Armony, there has been an ongoing dispute between him and Gary Kanter, who signed the Debtor's chapter 11 petition, in connection with the development of a shopping center in Victorville, California. Mr. Armony purchased the property and spent $10 million of his own money in connection with the property. Mr. Armony said he sued Mr. Kanter in Superior Court in San Bernardino County for breach of contracts and fraud in connection with his failure to perform on several agreements. He said Mr. Kanter placed the Debtor in bankruptcy in an attempt to avoid rulings in state court on motions for preliminary injunctions and a writ of attachment, which were scheduled to be heard June 16, 2011. He also alleged that the bankruptcy filing was made without his knowledge or consent, calling the filing "fraudulent". About Bear Valley Family Based in Costa Mesa, California, Bear Valley Family Limited Partnership filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-17893) on June 2, 2011. The Law Office of Christopher P. Walker, P.C., in Anaheim Hills, Calif., serves as the Debtor's general bankruptcy counsel. Judge Robert N. Kwan presides over the case. The Debtor scheduled assets of $14,006,000 and liabilities of $7,353,409. H. Mark Mersel, Esq., and Sheri Kanesaka, Esq., at Bryan Cave LLP, in Irvine, Calif., represent secured creditor Armed Forces Bank, N.A., successor by merger to Bank Midwest, N.A. Brent H. Blakely, Esq., and Courtney Stuart Alban, Esq., at Blakely Law Group, in Hollywood, Calif., represent Ronen Armony as counsel. Ronen Armony claims to be the real party-in-interest in the Debtor's case. BEAU VIEW: Files for Chapter 11 in Gulfport, Mississippi -------------------------------------------------------- Beau View of Biloxi, LLC, filed a bare-bones Chapter 11 petition (Bankr. S.D. Miss. Case No. 12-50141) on Jan. 26, 2012. The Mandeville, Louisiana-based debtor disclosed that it is a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101 (51B) with assets and debts of $10 million to $50 million. BEAU VIEW: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: Beau View of Biloxi, LLC #10 Caribbean Court Mandeville, LA 70448 Bankruptcy Case No.: 12-50141 Chapter 11 Petition Date: January 26, 2012 Court: U.S. Bankruptcy Court Southern District of Mississippi (Gulfport Divisional Office) Judge: Katharine M. Samson Debtor's Counsel: J. Walter Newman, IV, Esq. NEWMAN & NEWMAN 248 East Capitol Street, Suite 539 Jackson, MS 39201 Tel: (601) 948-0586 Fax: (601) 948-0588 E-mail: wnewman95@msn.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Richard L. Landry, III, designated representative. BELTWAY ONE: Wants to Hire Keith Harper as Valuation Expert ----------------------------------------------------------- Beltway One Development Group LLC asks, in a second amended motion, the U.S. Bankruptcy Court for the District of Nevada for permission to employ Keith Harper as valuation expert. The Debtor relates that the second amended motion is based on the amendment to the declaration of Mr. Harper, MAI in support of the Debtor's application of Mr. Harper as appraiser and valuation expert. The Debtor requests that the Court reaffirm that the Debtor is authorized to employ Mr. Harper to provide appraisal and valuation expert services to the Debtor, allowing compensation and reimbursement of the other fees and expenses to be paid as an administrative expense. http://bankrupt.com/misc/BELTWAYONE_keithharper_2ndamendement.pdf On Dec. 20, 2011, the Debtor filed an amended version of its application to employ Keith Harper as valuation expert. A full- text copy of the amended application is available for free at: http://bankrupt.com/misc/BELTWAYONE_keithharper.pdf About Horizon Village Square et al. Four related Las Vegas, Nevada-based entities sought Chapter 11 bankruptcy protection on July 13, 2011. The businesses are owned or managed by local business people and firms, including Todd Nigro, Nigro Development LLC, a Nigro family trust and other investors. Horizon Village Square LLC (Bankr. D. Nev. Case No. 11-21034) owns the Vons-anchored Horizon Village Square Shopping Center near I-515 and Horizon Drive in Henderson. The property includes five retail buildings with nearly 43,000 square feet of space. Ten Saints LLC (Bankr. D. Nev. Case No. 11-21028) owns the 134- room Hampton Inn & Suites at St. Rose Parkway and Seven Hills Drive in Henderson. Beltway One Development Group LLC (Bankr. D. Nev. Case No. 11-21026) owns the Desert Canyon Business Park at Russell Road and the Las Vegas Beltway. It has two buildings and 15 acres. Nigro HQ LLC (Bankr. D. Nev. Case No. 11-21014) owns an office building at 9115 W. Russell Road occupied by Bank of George, Infinity Plus LLC and Nigro Construction Inc. Todd Nigro said the four bankruptcies were caused by threatened foreclosures -- typically related to Wells Fargo Bank demanding payments to keep loan-to-value ratios at specified levels. Judge Mike K. Nakagawa presides over the cases. Lawyers at Gordon Silver serve as the Debtors' bankruptcy counsel. The bankruptcy petitions estimated assets and debts from $1 million to $10 million each for Nigro HQ; and from $10 million to $50 million in both assets and debts for Horizon Village, Ten Saints and Beltway One. A fifth related business, Russell Boulder LLC, filed for bankruptcy (Bankr. D. Nev. Case No. 10-29724) on Oct. 19, 2010. It owns the 600-suite Siena Suites extended stay property at Boulder Highway and Russell Road. Edward M. Zachary, Esq., at Bryan Cave LLP, in Bryan Cave LLP, in Phoenix, Ariz., and Robert M. Charles, Jr., Esq., at Lewis and Roca LLP, in Las Vegas, Nev., represent Wells Fargo Bank, N.A., as counsel. BERNARD L. MADOFF: New York Mets Owners Seek Dismissal of Lawsuit ----------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that the owners of the New York Mets baseball team asked a federal judge late Thursday to dismiss a lawsuit by the court-appointed trustee seeking to recover money for victims of convicted Ponzi-scheme-operator Bernard Madoff. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of July 15, 2011, a total of US$6.88 billion in claims by investors has been allowed, with US$794.9 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. Mr. Picard has filed 1,000 lawsuits seeking $100 billion from banks such as HSBC Holdings Plc and JPMorgan Chase & Co. The trustee has seen more than $28 billion of his claims tossed by district judges. BEYOND OBLIVION: Eyeing Sale of Intellectual Property Assets ------------------------------------------------------------ Beyond Oblivion Inc. filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 12-10282) on Jan. 24, 2012, listing assets of between $1 million and $10 million, and debts of between $100 million to $500 million. Jacqueline Palank at Dow Jones' Daily Bankruptcy Review reports the company aims to sell its intellectual property and related infrastructure through a competitive auction process overseen by the bankruptcy court. The report relates that Beyond Oblivion's board of directors said in court papers that existing lenders, including Allen & Co., have agreed to provide a $750,000 loan to fund the sale and the company's wind-down, subject to bankruptcy-court approval. The report adds that News Corp., which owns The Wall Street Journal and Dow Jones Newswire, invested in the start-up company, before it shut down at the end of 2011. Other investors include charitable organization Wellcome Trust, investment firm Allen & Co. and technology company Intertrust Technologies Corp. Gerard Catalanello, Esq. -- gcatalanello@duanemorris.com -- at Duane Morris LLP, represents the company. Beyond Oblivion Inc. is a digital music startup that raised $87 million from investors like News Corp. The Company's case has been assigned to Judge Allan L. Gropper. BILLMYPARENTS INC: Joseph Proto Named to Board of Directors ----------------------------------------------------------- Mr. Joseph Proto was appointed to the Board of Directors of BillMyParents Inc. effective as of Jan. 25, 2012. From 2007 to the present, Mr. Proto has been the Chairman and Chief Executive Officer of Transactis Inc., an electronic billing company. In 1996, Mr. Proto founded REMITCO, a remittance processing company, where he also served as President until 2006. REMITCO was acquired in 2000 by First Data Corp. In 1982, Mr. Proto founded Financial Telesis (CashFlex), a payment processor to 65 of the top 100 banks in the United States, which was acquired by CoreStates/Wachovia in 1992 and is now a part of Wells Fargo. In 2004, Mr. Proto co-founded Windham Ventures, an investment company focusing on financial technology and life sciences companies, where he currently serves as a founding partner. Mr. Proto is 55 years old. In connection with Mr. Proto's appointment to the Board, the Company agreed to grant Mr. Proto warrants or stock options to purchase up to 2,000,000 shares of common stock at an exercise price of $0.44 per share, vesting monthly over a period of 36 months provided Mr. Proto continues to serve on the Board, and having a term of 5 years. Effective as of Jan. 25, 2012, Mr. Mark Sandson retired from the Board of Directors of the Company. Mr. Sandson's departure from the Board of Directors was not the result of any disagreements with the Company. The Board expressed its appreciation for Mr. Sandson's past service and contributions. About BillMyParents San Diego, Calif.-based BillMyParents, Inc., markets prepaid cards with special features aimed at young people and their parents. BMP is designed to enable parents and young people to collaborate toward the goal of responsible spending. The Company reported a net loss of $14.2 million on $104,030 of revenues for the fiscal year ended Sept. 30, 2011, compared with a net loss of $6.9 million on $6,675 of revenues for the fiscal year ended Sept. 30, 2010. The Company's balance sheet at Sept. 30, 2011, showed $1.6 million in total assets, $2.8 million in total current liabilities, and a shareholders' deficit of $1.2 million. BDO USA, LLP, in La Jolla, California, expressed substantial doubt about BillMyParents's ability to continue as a going concern. The independent auditors noted that the Company has incurred net losses since inception and has an accumulated deficit and stockholders' deficiency at Sept. 30, 2011. BLUE WILLOW: Sells Assets to Donald Poss for $930,000 ----------------------------------------------------- Douglas Moser of The Covington (Ga.) News, citing papers filed in Bankruptcy Court, reports that Blue Willow Inn Restaurant will sell all the property surrounding the restaurant, including a historic mansion, as part of its bankruptcy plan. According to the report, the Company got a federal bankruptcy judge's approval on Jan. 18, 2012, to sell 7.1 acres on North Cherokee Road that includes the restaurant and gift shop building and the retail center, to Donald Poss, a farmer from Good Hope in Walton County, for $930,000. The report says Blue Willow Inn will lease the mansion to continue operating the restaurant and gift shop. The report notes that the sale included three separate but adjacent plots on North Cherokee Road -- one 2.4-acre plot that includes the historic mansion where the restaurant operates, a .86-acre plot next to it and 3.84 acres behind those two where the Van Dykes built a retail center and a Christian-themed museum. The report adds that the sale has not closed yet. The judge approved the sale as part of Blue Willow's plan to exit bankruptcy, which was filed in August and modified this winter. The report says, once the sale is closed, all the proceeds are to go to Wells Fargo to pay towards debts the Blue Willow owes, though that will not cover the total amount owed the bank, according to the agreement. Several public creditors are in line behind Wells Fargo, including the Georgia Department of Community Affairs and the Georgia Cities Foundation. The report says another person, who was not named, offered $750,000 for the properties, but that offer was turned down in favor of Mr. Poss' higher bid. The report notes Mr. Poss will be responsible for paying the commission and closing costs to King Industrial Realty, Inc., of Atlanta, the real estate broker involved in the deal. Based in Social Circle, Georgia-based Blue Willow Inn Gift Shop Inc. filed for Chapter 11 bankruptcy protection (Bank. M.D. Ga. Lead Case No. 10-31270) on July 20, 2010. Judge James P. Smith presides over the case. Martha A. Miller, Esq., at Martha A. Miller, P.C., represents the Debtors. The Debtors estimated assets between $100,000 and $500,000, and debts between $1 million and $10 million. BONDS.COM GROUP: Engages EisnerAmper as Accountants --------------------------------------------------- The Audit Committee of the Board of Directors of Bonds.com Group, Inc., engaged EisnerAmper LLP as the Company's independent registered public accounting firm for the fiscal year ended Dec. 31, 2011. During the two fiscal years ended Dec. 31, 2011, and 2010, and the interim period through the date of such engagement, neither the Company nor any one acting on its behalf consulted with EisnerAmper regarding (i) the application of accounting principles to any specified transaction, either completed or proposed; or (ii) any matter that was either the subject of a "disagreement" or a "reportable event," as those terms are defined in Item 304(a)(1) of Regulation S-K. On Dec. 28, 2011, Daszkal Bolton LLP, resigned as the Company's independent auditors. About Bonds.com Group Based in Boca Raton, Florida, Bonds.com Group, Inc. (OTC BB: BDCG) -- http://www.bonds.com/-- through its subsidiary Bonds.com, Inc., serves institutional fixed income investors by providing a comprehensive zero subscription fee online trading platform. The Company designed the BondStation and BondStationPro platforms to provide liquidity and competitive pricing to the fragmented Over- The-Counter Fixed Income marketplace. The Company differentiates itself by offering through Bonds.com, Inc. an inventory of more than 35,000 fixed income securities from more than 175 competing sources. Asset classes currently offered on BondStation and BondStationPro, the Company's fixed income trading platforms, include municipal bonds, corporate bonds, agency bonds, certificates of deposit, emerging market debt, structured products and U.S. Treasuries. As reported by the TCR on May 9, 2011, Daszkal Bolton LLP, in Boca Raton, Fla., in its audit reports for the years ended Dec. 31, 2009, and Dec. 31, 2010, expressed substantial doubt about the Company's ability to continue as a going concern. The auditors noted that the Company has sustained recurring losses and has negative cash flows from operations. The Company reported a net loss of $12.51 million on $2.71 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $4.69 million on $3.90 million of revenue during the prior year. The Company also reported a net loss of $12.26 million on $2.84 million of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $9.21 million on $2.01 million of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $4.10 million in total assets, $15.52 million in total liabilities and a $11.42 million stockholders' deficit. BOZEL S.A.: Pick & Zabicki Approved as Creditors Committee Counsel ------------------------------------------------------------------ The Hon. Arthur J. Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York authorized the Official Committee of Unsecured Creditors in the Chapter 11 case of Bozel, S.A., et al., to retain Pick & Zabicki, LLP as its counsel under a general retainer. P&Z is expected to, among other things: a) assist the Committee in analyzing the claims of the Debtor's creditors and in negotiating with such creditors; b) assist with the Committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtor and the operation of the Debtor's business; and c) assist the Committee in its analysis of and negotiations with the Debtor or any third-party concerning matters related to the realization by creditors of a recovery on claims and other means of realizing value in these cases; To the best of the Committee's knowledge, P&Z is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Bozel S.A. Bozel S.A. is a company limited by shares (a 'societe anonyme"or ('s.A.") organized under the Grand Duchy of Luxembourg, and registered with the Luxembourg Trade and Companies Register under the number B107769. Bozel is a holding company which, at the time of its Chapter 11 filing, owned substantially all of the stock in Bozel Mineracao, S.A. (organized in Brazil) ("Bozel Brazil") and Bozel Europe S.A.S. (organized in France) ("Bozel Europe"), and continues to own Bozel, LLC (organized in the state of Florida). Prior to the sale of Bozel Brazil and Bozel Europe to Japan Metals & Chemicals, Co., Ltd. ("JMC"), Bozel S.A., through its three operating subsidiaries on three continents, was a worldwide leader in the sale of calcium silicon ("CaSi"). Immediately preceding its filing for bankruptcy protection, Bozel S.A. sold over 40% of the world's CaSi powder output. Bozel Brazil produces primarily CaSi and cored wire, which is an industry-preferred ingredient in the production of high quality steel and steel alloys. Bozel Europe produces primarily cored wire. Bozel, LLC, formerly marketed and distributed in the United States the products produced by Bozel Brazil. Bozel S.A. is the sole member and manager of Bozel, LLC. Bozel sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-11802) on April 6, 2010. In its amended schedules, Bozel disclosed US$41,134,010 in assets and US$47,365,036 in liabilities. Bozel, LLC, filed a separate petition for Chapter 11 (Bankr. S.D.N.Y. Case No. 11-10033) on Jan. 10, 2011. Allen G. Kadish, Esq., and Kaitlin R. Walsh, Esq., at Greenberg Traurig, LLP, in New York, and Mark D. Bloom Esq., at Greenberg Traurig, LLP, in Miami, represent the Debtors as counsel. The two cases are jointly administered under Case No. 10-11802. CABI SMA: Brickell Central Wants $700,000 DIP Loan Denied --------------------------------------------------------- Secured creditor Brickell Central, LLC, asks the U.S. Bankruptcy Court for the Southern District of Florida to deny the request of CABI SMA Tower I, LLLP, for authorization to obtain postpetition unsecured financing. Brickell Central is a creditor with respect to more than $30.5 million in note obligations owed by the Debtor. The Debtor is requesting authorization to obtain $700,000 in financing on an administrative priority basis from its affiliates Cabi Holdings, Inc. and Cabi Developers, LLC to ensure that professionals receive distributions prior to the confirmation of the Debtors plan. As reported in the Troubled Company Reporter on Dec. 27, 2011, the terms of the proposed DIP financing include: A. Interest Rate: 6-month LIBOR plus 100 basis points (simple interest, payable at maturity, adjusted on the last business day of each calendar quarter) B. Maturity: Unless extended by the Lenders in writing, upon the first to occur of (a) the Effective Date of a Confirmed Plan of Reorganization, or (b) the dismissal or conversion of the Debtor's bankruptcy case. C. Fees: None D. Disbursements: Funds to be disbursed upon request; interest to accrue from disbursement date(s) G. Prepayment: Authorized in whole or in part without penalty. According to Brickell Central, the Debtor's prospects for reorganization and the availability of distributions to creditors are in doubt. Brickell Central assert that administrative creditors must not be allowed to walk away from the proceeding with a full recovery. If, however, the Debtor's affiliates are willing to provide the administratively insolvent entity with financing that is subordinate to the repayment of unsecured debt (in accordance with the percentage distributions set forth in the Debtor's plan), Brickell Central has no opposition to the incurrence of the financing. About Cabi SMA Tower I Based in Miami, Florida, Cabi SMA Tower I, LLLP -- fka Cabi SMA Retail 1, LLC; Cabi SMA, LLLP; Cabi SMA Tower 2, LLC; Cabi SMA Tower 2, LLLP; Capital at Brickell; Cabi SMA Retail 2, LLLP; Cabi SMA Retail 2, LLC; Cabi SMA Tower 1, LLC; and Cabi SMA Retail I, LLLP -- owns multiple vacant parcels around South Miami Avenue and S.W. 14th Street in Miami, Florida. It acquired the parcels to develop residential, hotel, and retail space, including a condominium development. The parcels are being managed by Cabi Developers, LLC pursuant to a management agreement. Cabi SMA Tower I filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-49009) on Dec. 28, 2010. Mindy A. Mora, Esq., and Tara V. Trevorrow, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, in Miami, serve as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliates Cabi Downtown, LLC (Bankr. S.D. Fla. Case No. 09-27168) and Cabi New River LLC (Bankr. S.D. Fla. Case No. 10-49013) filed separate Chapter 11 petitions. No creditor's committee has been appointed in Cabi SMA Tower I, LLLP's Chapter 11 case. CAESARS ENTERTAINMENT: Amends Form S-1 Registration Statement ------------------------------------------------------------- Caesars Entertainment Corporation filed with the U.S. Securities and Exchange Commission amendment no. 2 to Form S-1 Registration Statement relating to an initial public offering of the Company's common stock. The Company is selling indeterminate shares in this offering. Prior to this offering, there has been no public market for the Company's common stock. The Company has applied to list its common stock on the Nasdaq Global Select Market under the symbol "CZR." The listing is subject to approval of the Company's application. A full-text copy of the amended prospectus is available at http://is.gd/5Lvmze About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies, with annual revenue of $4.2 billion, 20 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. The Company also reported a net loss of $471.30 million on $6.66 billion of net revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $629.30 million on $6.69 billion of net revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $28.86 billion in total assets, $27.62 billion in total liabilities, $36 million in redeemable non-controlling interests, and $1.20 billion total stockholders' equity. * * * Harrah's announced its re-branding to Caesar's on mid-November 2010. Harrah's carries 'Caa3' long term corporate family and probability of default ratings, with 'positive' outlook, from Moody's Investors Service. It has a 'B-' issuer credit rating, with 'stable' outlook, from Standard & Poor's. "The 'B-' corporate credit rating reflects Caesars' very weak credit measures and our belief that prospects for a meaningful rebound in net revenues and EBITDA in 2011 do not seem promising given the current economic outlook," said Standard & Poor's credit analyst Ben Bubeck in May 2011. "While several actions taken by management have positioned the company with a moderate covenant cushion and very limited debt maturities over the next few years, Caesars' capacity to continue to fund operational and capital spending needs and meet debt service obligations relies on meaningful growth in cash flow generation over the next few years." As reported by the TCR on March 3, 2011, Moody's Investors Service upgraded Caesars Entertainment's Corporate Family ratings and Probability of Default ratings to Caa2. CET's Caa2 Corporate Family Ratings reflect very high leverage, weak interest coverage, the company's debt financed growth strategy, and Moody's view that the company's current capital structure in unsustainable in the long-term. The ratings reflect Moody's expectation that gaming demand will rebound very slowly over the next several years. However, in the absence of a material de-leveraging transaction, Moody's do not expect the company's capital structure to improve materially over the next few years. Additionally, given CEC's weak credit profile, there is a possibility that the company could again pursue transactions that will result in impairment of debt holder claims as a means to improve its capital structure. CAESARS ENTERTAINMENT: Bank Debt Trades at 16% Off -------------------------------------------------- Participations in a syndicated loan under which Caesars Entertainment Inc., formerly known as Harrah's Entertainment Inc., is a borrower traded in the secondary market at 84.33 cents-on- the-dollar during the week ended Friday, Jan. 27, 2012, an increase of 1.21 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 425 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 28, 2018, and carries Moody's B3 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies, with annual revenue of $4.2 billion, 20 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. The Company also reported a net loss of $471.30 million on $6.66 billion of net revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $629.30 million on $6.69 billion of net revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $28.86 billion in total assets, $27.62 billion in total liabilities, $36 million in redeemable non-controlling interests, and $1.20 billion total stockholders' equity. * * * Harrah's announced its re-branding to Caesar's on mid-November 2010. Harrah's carries 'Caa3' long term corporate family and probability of default ratings, with 'positive' outlook, from Moody's Investors Service. It has a 'B-' issuer credit rating, with 'stable' outlook, from Standard & Poor's. "The 'B-' corporate credit rating reflects Caesars' very weak credit measures and our belief that prospects for a meaningful rebound in net revenues and EBITDA in 2011 do not seem promising given the current economic outlook," said Standard & Poor's credit analyst Ben Bubeck in May 2011. "While several actions taken by management have positioned the company with a moderate covenant cushion and very limited debt maturities over the next few years, Caesars' capacity to continue to fund operational and capital spending needs and meet debt service obligations relies on meaningful growth in cash flow generation over the next few years." As reported by the TCR on March 3, 2011, Moody's Investors Service upgraded Caesars Entertainment's Corporate Family ratings and Probability of Default ratings to Caa2. CET's Caa2 Corporate Family Ratings reflect very high leverage, weak interest coverage, the company's debt financed growth strategy, and Moody's view that the company's current capital structure in unsustainable in the long-term. The ratings reflect Moody's expectation that gaming demand will rebound very slowly over the next several years. However, in the absence of a material de-leveraging transaction, Moody's do not expect the company's capital structure to improve materially over the next few years. Additionally, given CEC's weak credit profile, there is a possibility that the company could again pursue transactions that will result in impairment of debt holder claims as a means to improve its capital structure. CARPENTER CONTRACTORS: Disclosures Hearing Adjourned Until Feb. 13 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Florida has continued until Feb. 13, 2012, at 1:30 p.m., the hearing to consider adequacy of the Disclosure Statement explaining Carpenter Contractors of America, Inc., and CCA Midwest, Inc.'s Plan of Reorganization. As reported in the Troubled Company Reporter on Sept. 23, 2011, the Plan contemplates the continuation of the Debtors' operations after plan confirmation plan. Donald L. Thiel will continue to sit as chairman and president of the post-confirmation management of Carpenter Contractors of America, Inc. Kenneth B. Thiel will retain his position as President of the post-confirmation management of CCA Midwest, Inc. The Plan of Reorganization and Disclosure Statement filed on Aug. 31, 2011, provides that payments and distributions under the Plan will be funded by the Debtors' current and ongoing business operations. In addition to the revenues generated by the business operations of the Debtors, Donald L. Thiel has agreed to the deferral of his unsecured claims in Class 3.6 which will result in additional cash availability. First American has agreed to provide the Debtors with a one year $5,120,000 exit financing line of credit renewable annually for 3 years, and a $2,500,000 term note, repayable in 36 monthly installments. Donald and Judith Thiel have also agreed to provide the Debtors with exit financing in the form of a $1,000,000 revolving line of credit, repayable when the Debtors have available cash flow. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/carpentercontractors.DS.pdf About Carpenter Contractors Pompano Beach, Florida-based Carpenter Contractors of America, Inc., dba R&D Thiel, provides carpentry services to builders of new homes primarily in Illinois and Florida. It also manufactures building components and distributes construction materials in Illinois, Florida, and North Carolina. CCA Midwest Inc. provides carpentry services to builders of new homes in Illinois. It is a wholly-owned subsidiary of Carpenter Contractors. Carpenter Contractors and CCA Midwest filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Lead Case No. 10-42604) on Oct. 25, 2010. Chad P. Pugatch, Esq., and Christian Savio, Esq., at Rice Pugatch Robinson & Schiller, P.A., in Ft. Lauderdale, Fl., serve as the Debtors' bankruptcy counsel. Attorneys at Shaw Gussis Fishman Glantz Wolfson & Towbin LLC, serve as special counsel. GlassRatner Advisory & Capital Group, LLC, led by Thomas Santoro, is the Debtors' financial advisor, and Scott L. Spencer, CPA and Crowe Horwath, LLP. is the Debtors' accountant for audit work. Carpenter Contractors disclosed $42,900,573 in assets and $25,861,652 in liabilities as of the Chapter 11 filing. The U.S. Trustee for Region 21 notified the Court that until further notice, he will not appoint a committee of creditors. CALYPTE BIOMEDICAL: Incurs $242,000 Net Loss in Third Quarter ------------------------------------------------------------- Calypte Biomedical Corporation filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $242,000 on $107,000 of product sales for the three months ended Sept. 30, 2011, compared with net income of $10.48 million on $124,000 of product sales for the same period during the prior year. The Company reported a net loss of $437,000 on $505,000 of product sales for the nine months ended Sept. 30, 2011, compared with net income of $9.25 million on $314,000 of product sales for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $2.09 million in total assets, $6.94 million in total liabilities, and a $4.85 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/4Jc5Q6 About Calypte Biomedical Portland, Oregon-based Calypte Biomedical Corporation develops, manufactures, and distributes in vitro diagnostic tests, primarily for the diagnosis of Human Immunodeficiency Virus ("HIV") infection. Odenberg, Ullakko, Muranishi & Co. LLP, in San Francisco, California, expressed substantial doubt about Calypte Biomedical's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring operating losses and negative cash flows from operations, and management believes that the Company's cash resources will not be sufficient to sustain its operations through 2011 without additional financing. "At Dec. 31, 2010, and 2009, we had working capital deficits of $3.5 million and $16.6 million, respectively, the Company said in the filing. "As of Dec. 31, 2009, the $11.6 million outstanding under our Credit Facility and Convertible Notes was under default. Our cash on hand and existing sources of cash are insufficient to fund our cash needs over the next twelve months under our current capital structure." The Company recorded a gain on transfer of assets of $2.3 million and a gain on restructuring of notes of $8.5 million in 2010, absent in 2009. Bankruptcy Warning The Company does not have any long term agreement for capital infusion at this point in time. As the Company's cash flows from its operating and investing activities are currently not adequate to sustain its operations, if the Company is unable to raise capital, the Company will likely be unable to continue its operations. Failure to obtain additional financing will likely cause the Company to seek bankruptcy protection under Chapter 7 of the U.S. Bankruptcy Code. CENTURION PROPERTIES: Inks Deal Dismissing Centrum Parties' Claims ------------------------------------------------------------------ Centurion Properties III, LLC and SMI Group XIV, LLC ask the U.S. Bankruptcy Court for the Eastern District of Washington to approve a stipulation dismissing the claims asserted in the Bankruptcy case and adversary proceeding. The stipulation with Centrum Financial Services, Inc., Trident Investments, Inc., Equity Funding LLC, and Derek Edmonds provides for the dismissal with prejudice of the claims, except as to Centrum's Proof of Claim No. 5-1, which has been assigned by Centrum to SMI or to an entity designated by SMI. Centrum Financial Investments, Inc. is represented by: John Hathaway, Esq. LAW OFFICES OF JOHN W. HATHAWAY PLLC 701 5th Ave., Suite 4600 Seattle, WA 98104 Tel: (206) 624-7100 E-mail: jhathaway@seanet.com - and - Peter Ehrlichman, Esq. Todd S. Fairchild, Esq. DORSEY & WHITNEY LLP 701 Fifth Avenue, Suite 6100 Seattle, WA 98104 Tel: (206) 903-8825 E-mails: ehrlichman.peter@dorsey.com fairchild.todd@dorsey.com About Centurion Properties Kennewick, Washington-based Centurion Properties III, LLC, was established in 2006 for the sole purpose of acquiring real estate project Battelle Leaseholds located in Richland, Washington. Its sole asset is its leasehold interests in the Battelle Memorial Institute Campus and improvements, valued in excess of $90 million. CPIII filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wash. Case No. 10-04024) on July 9, 2010. John D. Munding, Esq., at Crumb & Munding, assists the Company in its restructuring effort. Dan. E. Gorczycki of Savills LLC serves as its finance advisor. The Company disclosed $98,907,255 in assets and $115,334,775 in liabilities. The Plan is premised upon CPIII's ability to obtain replacement financing for its secured debt obligations within a fixed period of time. General unsecured claims will be paid in full, with interest at 5% from the Effective Date, within 26 months of the Initial Distribution Date and after all secured claims paid in full. The United States Trustee was unable to appoint a creditors committee in the case. CIENA CORP: S&P Affirms 'B' Corporate Rating; Outlook Negative -------------------------------------------------------------- Standard & Poor's Rating Services revised its outlook on Linthicum, Md.?based communications networking provider Ciena Corp. to stable from negative. "At the same time, we affirmed our 'B' corporate credit and senior unsecured ratings on the company," S&P said. "The rating reflects our expectation that the company will sustain positive operating trends and improve leverage metrics," said Standard & Poor's credit analyst William Backus, "based on the completion of the integration of Nortel's MEN business without disruption to operations." "We expect that ongoing sales momentum will be sustained and that free operating cash flows (FOCF) will be positive in fiscal year 2012 despite a muted carrier capital spending outlook for the year. We believe that adjusted EBITDA generation in fiscal year 2012 will improve from the $89 million we calculate for fiscal year 2011. We expect credit metrics to improve throughout fiscal year 2012, reflecting an, improving sales mix from increased switching equipment and software sales and increasing operating leverage as expenses are held near current levels." "We view Ciena's business risk profile as 'weak', reflecting highly volatile earnings due to cyclical telecom capital equipment demand, high research and development (R&D) commitments, and a highly competitive market with a number of much larger and better resourced competitors. Offsetting these factors, the company maintains the second-largest market share for optical transport and switching equipment, with leading U.S. market share in the emerging 40G/100G transport segment," S&P said. "The MEN acquisition increased Ciena's scale and market share of the optical networking equipment industry, and the company is better positioned to benefit from an upgrade cycle in telecommunication capital equipment," S&P said. "The outlook is stable. The company has integrated the sizable Nortel MEN business without disruption to operations and has started to produce positive cash flows while maintaining adequate liquidity. However, Ciena remains vulnerable to telecom capital spending cycles, and liquidity remains a key rating consideration," S&P said. "We could lower the rating if the company's recent positive revenue and cash flow momentum are reversed or if cash and liquid investments decline below $400 million. Ciena's highly leveraged financial profile currently limits a possible upgrade," S&P said. CITIZENS REPUBLIC: Reports $18.2 Million Net Income in Q4 --------------------------------------------------------- Citizens Republic Bancorp reported net income of $18.24 million on $99.33 million of total interest income for the three months ended Dec. 31, 2011, compared with a net loss of $106.15 million on $114.02 million of total interest income for the same period during the prior year. The Company also reported a net loss of $11.57 million on $308.48 million of total interest income for the nine months ended Sept. 30, 2011, compared with a net loss of $186.77 million on $370.42 million of total interest income for the same period a year ago. The Company reported net income of $6.66 million on $407.82 million of total interest income for the 12 months ended Dec. 31 2011, compared with a net loss of $292.92 million on $484.44 million of total interest income during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $9.46 billion in total assets, $8.44 million in total liabilities, and $1.02 billion in total shareholders' equity. "2011 was a pivotal year for Citizens. We successfully executed on our strategies and returned to sustained profitability. We significantly improved the risk profile of the bank by reducing problem assets and improving all of our credit metrics while strengthening our capital levels," commented Cathleen Nash, president and chief executive officer. "Our strategic focus for 2012 is to continue to provide top tier client service, prudently rebuild our loan portfolio, mitigate net interest margin pressure, ensure reserve levels reflect our improved risk profile and support loan growth, and continue to report consistent profits," added Ms. Nash. A full-text copy of the press release is available for free at: http://is.gd/NOaLL6 About Citizens Republic Flint, Michigan-based Citizens Republic Bancorp, Inc., is a diversified banking and financial services company that is registered as a bank holding company under the Bank Holding Company Act of 1956, as amended. Citizens provides a full range of banking and financial services to individuals and businesses through its banking subsidiary, Citizens Bank. * * * As reported in the TCR on Feb. 8, 2011, Fitch Ratings downgraded the long-term and short-term Issuer Default Ratings for Citizens Republic Bancorp, Inc., and its principal banking subsidiaries to 'CCC/C' from 'B-/B', respectively. CLAIRE'S STORES: Bank Debt Trades at 9% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Claire's Stores, Inc., is a borrower traded in the secondary market at 90.78 cents- on-the-dollar during the week ended Friday, Jan. 27, 2012, an increase of 2.22 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on May 29, 2014, and carries Moody's B3 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- operates as a specialty retailer of fashion accessories and jewelry for preteens and teenagers, as well as for young adults in North America and internationally. It offers jewelry products that comprise costume jewelry, earrings, and ear piercing services; and accessories, including fashion accessories, hair ornaments, handbags, and novelty items. Based in Pembroke Pines, Florida, Claire's Stores operates under two brands: Claire's(R), which operates worldwide and Icing(R), which operates only in North America. As of Jan. 31, 2009, Claire's Stores, Inc., operated 2,969 stores in North America and Europe. Claire's Stores also operates through its subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. The Company also franchises 198 stores in the Middle East, Turkey, Russia, South Africa, Poland and Guatemala. The Company's balance sheet at Oct. 29, 2011, showed $2.81 billion in total assets, $2.86 billion in total liabilities, and a $44.61 million stockholders' deficit. As reported by the Troubled Company Reporter on March 15, 2011, Moody's upgraded Claire's Stores' senior secured bank credit facilities to B3 from Caa1 and its Speculative Grade Liquidity Rating to SGL-2 from SGL-3. All other ratings were affirmed including Claire's Caa2 Corporate Family Rating. The rating outlook is positive. CLARE AT WATER: Files Amended Schedules of Assets and Liabilities ----------------------------------------------------------------- The Clare at Water Tower filed with the U.S. Bankruptcy Court for the Northern District of Illinois on Jan. 12, 2012, amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $47,537,779 B. Personal Property $9,240,892 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $232,804,159 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $88,943,472 ----------- ----------- TOTAL $56,778,671 $321,747,632 A copy of the Amended Schedules is available at no charge at http://bankrupt.com/misc/clareatwater.doc171.pdf The Debtors' Schedules of Assets and Liabilities, filed Dec. 16, 2011, disclosed $56,631,385 in assets and $314,167,822 in liabilities. A copy of the Dec. 16, 2011 Schedules is available at no charge at http://bankrupt.com/misc/clareatwater.doc134.pdf 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: Plan Outline Hearing Scheduled for March 6 ------------------------------------------------------ The U.S. Bankruptcy Court for the Middle District of North Carolina will convene a hearing on March 6, 2012, at 10:00 a.m., to consider adequacy of the Disclosure Statement explaining Clean Burn Fuels, LLC's Plan of Reorganization dated Dec. 28, 2011. Objections, if any, are due Feb. 4. The Debtors will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, the Plan contemplates that the best disposition of the Debtor's estate would involve (i) the appointment of a trustee pursuant to Section 1104 of the Bankruptcy Code; (ii) the sale or collection of any remaining property of the estate; and (ii) the pursuit of any causes of action or claims which the trustee could assert pursuant to Sections 541, 542, 544, 545, 546, 547, 548, 549, 550 or 553 of the Bankruptcy Code, followed by the distribution of the cash proceeds to creditors in accordance with the priorities established by the Bankruptcy Code. If confirmed, a claims review process regarding Allowed Claims is anticipated to take approximately 180 days after the Confirmation Date. Under the Plan, holders of Allowed Priority Unsecured Claims will be paid from available cash (in full or in regular installments, depending on the amount of available cash), with interest at the federal judgment rate in effect at the Petition Date and over a period not exceeding five years from and after the Petition Date. Holders of Allowed Unsecured Claims will be paid in cash, in full or pro rata depending upon the amount of available cash, after payment in full of all Allowed Administrative Claims, Priority Tax Claims, Priority Unsecured Claims, and Secured Claims, in one or more distributions after the Effective Date upon the realization of available cash and as determined by the trustee from time to time. No postpetition interest will be paid on any Allowed Unsecured Claims unless all Allowed Claims have been paid in full. Pursuant to the Cape Fear Order, Cape Fear will have a subordinated Allowed Unsecured Claim in the amount of $30,000,000 which will be paid in cash, in full or in part depending upon the amount of available cash, after payment in full of all other Allowed Claims, and in one or more distributions after the Effective Date upon the realization of available cash. Under the Plan, the existing Equity Interests will be terminated and holders of these interests will receive no distribution unless and until all allowed claims are paid in full, plus interest as provided herein. At or before the Confirmation Date, the Bankruptcy Court will appoint Sarah A. Conti or a similarly qualified individual as Trustee pursuant to Section 1104 of the Bankruptcy Code. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/CLEAN_BURN_ds.pdf 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. Anderson Bauman Tourtellot Vos & Co. serves as financial consultant and chief restructuring officer. Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, LLP serves as special counsel to assist the Debtor in its state court litigation matters, including various lawsuits pending in Hoke County, North Carolina. The Debtor disclosed $79,516,062 in assets and $79,218,681 in liabilities as of the Chapter 11 filing. 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 TRANSPORTATION: Has $191,542 Restated Loss in Q2 2011 ----------------------------------------------------------- Clean Transportation Group, Inc., filed on Jan. 27, 2012, Amendment No. 2 to its quarterly report on Form 10-Q for the quarter ended June 30, 2011, originally filed with the Securities and Exchange Commission on Aug. 22, 2011, for the primary purpose of adjusting the amount of goodwill recognized in the consolidated financial statements of the Company at June 30, 2011, based on a closer assessment of the fair value of the acquisition transaction with Engine Clean Solutions, from US$1,561,327 to US$608,724. In addition, the value of shares issued for conversion of debt was revised from $0.50 per share to $0.10 per share, which more closely represents the fair value at the date of the transaction resulting in a conversion of US$28,443 of debt rather than US$142,217 previously recognized. The Company reported a net loss of US$191,542 on US$49,745 of sales for the three months ended June 30, 2011, compared with a net loss of US$12,133 on US$0 sales for the same period of 2010. For the six months ended June 30, 2011, the Company incurred a net loss of US$210,462 on US$49,745 of sales, compared with a net loss of US$27,957 on US$0 of sales for the corresponding period of 2010. The Company's balance sheet at June 30, 2011, showed US$1.2 million in total assets, US$733,743 in total liabilities, and stockholders' equity of US$423,121. "The Company has sustained recurring losses, has accumulated deficit and a deficit in working capital," the Company said in the filing. "This raises substantial doubt about the Company's ability to continue as a going concern." A complete text of the Form 10-Q/A is available for free at: http://is.gd/WOx6aC Headquartered in Vancouver, Canada, Clean Transportation Group, Inc., was organized Aug. 23, 1978, under the laws of the State of Utah as Price Card & Gift, Inc. On June 27, 2008, the Company changed its name to Quintana Gold Resources Corp. and on April 18, 2011, the Company amended its articles of incorporation changing the name to Clean Transportation Group, Inc. The Company receives revenues from the sale of fuel cleaning systems. CLEARWIRE CORP: Completes $300-Mil. Senior Secured Notes Offering ----------------------------------------------------------------- Clearwire Corporation announced the completion of the offering by its operating subsidiary, Clearwire Communications LLC, of $300.0 million aggregate principal amount of 14.75% first-priority senior secured notes due 2016 at an issue price of 100%. As previously announced, the Company intends to use the net proceeds of the offering for the deployment of mobile 4G LTE technology alongside the mobile 4G WiMAX technology currently on its network and for the operation and maintenance of its networks and for general corporate purposes. The Notes were issued in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended, to qualified institutional buyers in accordance with Rule 144A and to persons outside the U.S. pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or any state or other securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. About Clearwire Corporation Kirkland, Wash.-based Clearwire Corporation (NASDAQ: CLWR) -- http://www.clearwire.com/-- through its operating subsidiaries, is a leading provider of wireless broadband services. Clearwire's 4G mobile broadband network serves 68 markets, including New York City, Los Angeles, Chicago, Dallas, Philadelphia, Houston, Miami, Washington, D.C., Atlanta and Boston. The Company reported a net loss of $2.30 billion on $556.82 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.25 billion on $274.46 million of revenue during the prior year. The Company also reported a net loss attributable to Clearwire Corporation of $480.48 million on $891.59 million of revenue for the nine months ended Sept. 30, 2011, compared with a net loss attributable to Clearwire of $359.42 million on $359.95 million of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $8.76 billion in total assets, $5.15 billion in total liabilities and $3.61 billion in total stockholders' equity. * * * As reported by the TCR on Nov. 25, 2011, Standard & Poor's Ratings Services lowered its corporate credit and senior secured first- lien issue-level ratings on Bellevue, Wash.-based wireless provider Clearwire Corp. to 'CCC' from 'CCC+'. "The downgrade reflects our concerns that the company may choose to skip its $237 million of interest payments due on Dec. 1, 2011," explained Standard & Poor's credit analyst Allyn Arden. "With about $698 million of cash on the balance sheet, Clearwire has sufficient funds to pay the remaining interest expense due in 2011, although Standard & Poor's believes that it would still have to raise significant capital to maintain operations in 2012 despite the cost-reduction measures it has already achieved. If Clearwire elected to make the interest payment, we believe that it would exit 2011 with around $350 million to $400 million in cash, which assumes less than $100 million of capital expenditures and EBITDA losses. We do not believe that this cash balance will be sufficient to cover free operating cash flow (FOCF) losses and a Long-Term Evolution (LTE) wireless network overlay in 2012 and that the company will require additional funding during the year." CONGRESS BUILDING: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Congress Building II, LLC 100 East 7th Street, Suite 401 Kansas City, MO 64106 Bankruptcy Case No.: 12-40257 Chapter 11 Petition Date: January 25, 2012 Court: U.S. Bankruptcy Court Western District of Missouri (Kansas City) Judge: Jerry W. Venters Debtor's Counsel: Jeffrey A. Deines, Esq. LENTZ CLARK DEINES, PA 9260 Glenwood Overland Park, KS 66212 Tel: (913) 648-0600 Fax: (913) 648-0664 E-mail: lclaw@lcdlaw.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 Richard C. Watkins, manager. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Congress Building I 12-40205 01/20/12 COYOTES HOCKEY: NHL's Asking Price Blamed for Sale Delay -------------------------------------------------------- Phoenix Business Journal reports that The Phoenix Coyotes' long ownership saga persists, and one of the factors delaying a sale has been the National Hockey League's asking price for the team. The NHL bought the Coyotes out of Chapter 11 bankruptcy in 2009 for $140 million. The league's asking price has been pegged at $170 million. According to the report, that figure might have to come down to get a deal done. The report says the city of Glendale needs to work out a lease deal for Jobing.com Arena for a new owner, and that has also been a fly in the ointment. But Glendale Mayor Elaine Scruggs this time blames the NHL. The report adds Glendale paid the NHL $25 million after last season to cover the Coyotes' losses and operate the team and arena. The city is slated to do the same after this season if a sale isn't completed. Former San Jose Sharks CEO Greg Jamison is looking at buying the Coyotes, as is Chicago White Sox and Bulls owner Jerry Reinsdorf. But either those deals would need to overcome the sales price and lease issues. About Coyotes Hockey Dewey Ranch Hockey LLC, Arena Management Group, LLC, Coyotes Holdings, LLC, and Coyotes Hockey, LLC -- owners and affiliates of the Phoenix Coyotes National Hockey League team -- filed for Chapter 11 protection (Bankr. D. Ariz. Case No. 09-09488) on May 5, 2009. The Debtors were represented by Squire, Sanders & Dempsey, LLP, in Phoenix, and estimated their assets and debts to be between $100 million and $500 million. In the third quarter of 2009, Judge Redfield T. Baum approved the sale of the Phoenix Coyotes to the National Hockey League, which acquired the team to quash a plan by Research-In-Motion founder Jim Balsillie to move the team to Ontario, Canada. Coyotes was sent to Chapter 11 to effectuate a sale by owner Jerry Moyes to Mr. Balsillie. The NHL acquired the team for $140 million in October 2009 and said it wants to sell the team for $170 million. The city of Glendale, Arizona, owns Jobing.com Arena, where the team plays. In September 2010, the Bankruptcy Court rejected a motion to impose a trustee or convert the case to a Chapter 7 liquidation. CRYSTALLEX INTERNATIONAL: Ontario Court Extends Stay to March 23 ---------------------------------------------------------------- Crystallex International Corporation announced Thursday an update regarding activities since obtaining an initial order from the Ontario Superior Court of Justice (Commercial List) for protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA"), dated Dec. 23, 2011. The order grants Crystallex CCAA protection until January 21. Under the order, proceedings by creditors or others cannot be continued or commenced without the consent of the Company and Ernst & Young Inc. (the Monitor) or leave of the Court. On Jan. 20, 2012, the Court extended the stay until March 23, 2012. At the same time, the Court approved the terms of an interim bridge loan for Crystallex in the amount of US$3.125 million. The bridge loan is a secured, short term loan, due the earlier of April 16, 2012, or the first draw on a debtor-in-possession ("DIP") financing facility, and is intended to provide the Company with working capital while it continues to pursue DIP financing and progress its arbitration claim. Crystallex has also commenced a proceeding under Chapter 15 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware in order to ensure that relevant CCAA orders are enforced in the United States. The Bankruptcy Court has recognized Crystallex's CCAA proceeding as well as the initial order and subsequent stay extension of the Ontario Superior Court of Justice. Crystallex Arbitration against Venezuela At an initial hearing on Dec. 1, 2011, the arbitral tribunal appointed under the rules of the Additional Facility of the International Centre for the Settlement of Investment Disputes ("ICSID") in respect of the Company's arbitration claim agreed upon a schedule of written submissions and set the final oral hearing date. Based upon the schedule set for the claim, Crystallex is obligated to file its first written submission with ICSID on Feb. 10, 2012, and Venezuela's first written submission is due to be filed on Aug. 31, 2012. Both parties will file additional submissions in 2013, Crystallex on Jan. 18, 2013, and Venezuela on June 10, 2013, with the final oral hearing set for Nov. 11-22, 2013. in Washington, D.C. About Crystallex Crystallex International Corporation is a Canadian based mining company, with a focus on acquiring, exploring, developing and operating mining projects. Crystallex has successfully operated an open pit mine in Uruguay and developed and operated three gold mines in Venezuela. The Company's principal asset is its international claim in relation to its investment in the Las Cristinas gold project located in Bolivar State, Venezuela. On Dec. 23, 2011, announced that it obtained an order from the Ontario Superior Court of Justice (Commercial List) for protection under the Companies' Creditors Arrangement Act (Canada) (CCAA). Ernst & Young Inc. was appointed monitor under the order. Crystallex has also commenced a proceeding under Chapter 15 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware in order to ensure that relevant CCAA orders are enforced in the United States. The Bankruptcy Court has recognized Crystallex's CCAA proceeding as well as the initial order and subsequent stay extension of the Ontario Superior Court of Justice. The Company reported a net loss of US$33.7 million for the nine months ended Sept. 30, 2011, compared with a net loss of US$27.7 million for the same period in 2010. The Company reported losses from continuing operations of US$22.0 million and US$14.5 million for the nine months Sept. 30, 2011, and 2010, respectively. Following the Government of Venezuela's unilateral cancellation of the Las Cristinas Mine Operating Contract (the "MOC") on Feb. 3, 2011, the Company filed for arbitration before ICSID's Additional Facility and commenced the process of handing the Las Cristinas project back to the Government of Venezuela. The handover to the Government of Venezuela was completed on April 5, 2011, upon receipt of a certificate of delivery from the Corporacion Venezolana de Guayana (the "CVG"). As a result, the Company has determined that its operations in Venezuela should be accounted for as a discontinued operation. The Company reported losses from discontinued operations of US$11.7 million and US$13.1 million for the nine months ended Sept. 30, 2011, respectively. The Company's balance sheet at Sept. 30, 2011, showed US$19.8 million in total assets, US$115.17 million in total liabilities and a stockholders' deficit of US$95.3 million. CUI GLOBAL: Common Stock to Trade on NASDAQ Stock Market -------------------------------------------------------- CUI Global, Inc., filed a Form 8-A with the U.S. Securities and Exchange Commission in connection with the listing of the Company's common stock on The NASDAQ Stock Market LLC. The Common Stock is presently quoted on the OTC Bulletin Board. Upon commencement of trading of the Common Stock on The NASDAQ Stock Market LLC, the Company will no longer be eligible to have its Common Stock quoted on the OTCBB. About CUI Global Tualatin, Ore.-based CUI Global, Inc., formerly known as Waytronx, Inc., is a platform company dedicated to maximizing shareholder value through the acquisition, development and commercialization of new, innovative technologies. The Company reported a net loss of $7.5 million on $40.9 million of revenues for 2010, compared with a net loss of $16.0 million on $28.9 million of revenues for 2009. The Company also reported consolidated net profit of $177,961 on $30.14 million of total revenue for the nine months ended Sept. 30, 2011, compared with a consolidated net loss of $3.41 million on $26.28 million of total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $32.78 million in total assets, $20.07 million in total liabilities, and $12.70 million in total stockholders' equity. As reported by the TCR on April 8, 2011, Webb & Company, in Boynton Beach, Florida, expressed substantial doubt about CUI Global's ability to continue as a going concern. The independent auditors noted that the Company has a net loss of $7,015,896, a working capital deficiency of $675,936 and an accumulated deficit of $73,596,738 at Dec. 31, 2010. CUSHING MANUFACTURING: Files for Chapter 11 Bankruptcy Protection ----------------------------------------------------------------- Michael Schwartz at Richmond Bizsense reports that Cushing Manufacturing & Equipment Co. sought Chapter 11 bankruptcy protection on Jan. 23, 2012. The Company listed both assets and debts between $1 million and $10 million. The report says the company hasn't yet filed a list of specific creditors. According to the report, owner Ross Jennings wouldn't say what exactly led to the bankruptcy. But Mr. Jennings, who co-owns the company with his brother Randy, said a plan to work things out is in motion. Mr. Jennings added that the recession had an effect on the company but was only a small factor in the bankruptcy. The report notes Kevin Lake of McDonald, Sutton & DuVal, represents the Company. Founded in 1957, Cushing Manufacturing & Equipment Co. makes custom metal fabrication, including making various metal shelters. The company has 20 employees and is headquartered in a 60,000- square-foot facility. DAVID'S BRIDAL: S&P Affirms 'B' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Conshohocken, Pa.-based David's Bridal Inc. (DBI). The outlook is stable. "At the same time, we raised our issue-level rating on the company's $340 million term loan B due 2014 to 'B+' from 'B'. We also revised the recovery rating on the debt to '2' from '3'. The '2' recovery rating indicates our expectation of substantial (70%- 90%) recovery for term loan B lenders in the event of a payment default. We do not rate the company's asset-based loan (ABL) or senior subordinated notes," S&P said. "The speculative-grade ratings on DBI reflect our business risk profile assessment of 'weak' and financial risk profile assessment of 'highly leveraged'," said Standard & Poor' credit analyst Brian Milligan. "The financial risk assessment incorporates our forecast for credit ratios to remain deep within levels indicative of a highly leveraged financial risk profile, and for management's financial policies to remain very aggressive. According to our criteria, we treat the preferred stock as debt in calculating credit ratios. Because of the leveraged buyout (LBO) considerations that Leonard Greene's ownership of DBI creates, we view this security as a means for extracting cash, and we would anticipate the replacement of the preferred stock with debt upon a change in control. We forecast the ratio of adjusted total debt to EBITDA will remain near 10x, funds from operations (FFO) to total debt will remain near 9%, and EBITDA coverage of interest will remain near 1x for the foreseeable future. The exclusion of the preferred stock would reduce total debt to EBITDA by about 3.5x, increase FFO to total debt by about 5%, and increase EBITDA coverage of interest by about 1.0x. The improved credit ratios would still be indicative of a highly leveraged financial risk profile, though." "Our business risk assessment incorporates our analysis that the company has a narrow business focus in the highly competitive and fragmented bridal specialty retail market. Our assessment also identifies risks associated with recent trends of fewer marriages and less money spent on weddings in the U.S. Positive aspects to our business risk assessment include the company's recognized brand name in the U.S. bridal specialty retail market," S&P said. "The stable outlook on DBI reflects our expectation for the company's credit ratios to remain deep within levels indicative of a highly leveraged financial risk profile. It also reflects our belief that the business risk profile assessment of weak will remain appropriate over the outlook period. The principal factors supporting our business risk assessment include the company's narrow business focus and its geographic concentration in the U.S.," S&P said. "We could consider a downgrade or negative outlook if operating performance significantly deteriorates, likely the result of increased competitive pressure or weaker retail conditions. Specifically, this would result in adjusted leverage increasing above 11.5x. Based on third-quarter fiscal 2011 results, EBITDA must decline more than 15% or debt must increase by about $225 million for adjusted leverage to rise that high," S&P said. "While unlikely over the near term, we could consider an upgrade or positive outlook if operating performance exceeds our current forecast, resulting in adjusted leverage approaching 8.5x. Based on third-quarter fiscal 2011 results, EBITDA growth of 12% or debt reduction of $120 million is necessary for adjusted leverage to do so," S&P said. DEEP DOWN: Goldman Capital Discloses 6.5% Equity Stake ------------------------------------------------------ In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Goldman Capital Management Inc. disclosed that, as of Jan. 24, 2012, it beneficially owns 13,411,034 shares of common stock of Deep Down Inc. representing 6.5% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/zKLRQq About Deep Down Houston, Tex.-based Deep Down, Inc. -- http://www.deepdowncorp.com/-- is an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services, serving the worldwide offshore exploration and production industry. The Company reported a net loss of $17.41 million on $42.47 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $16.78 million on $28.81 million of revenue during the prior year. The Company reported a net loss of $1.19 million on $21.94 million of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $7.38 million on $26.23 million of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $32.45 million in total assets, $11.02 million in total liabilities, and $21.43 million in total stockholders' equity. During the Company's fiscal years ended Dec. 31, 2010 and 2009, the Company has supplemented the financing of its capital needs through a combination of debt and equity financings. Most significant in this regard has been the Company's debt facility the Company has maintained with Whitney National Bank. The Company's loans outstanding under the Amended and Restated Credit Agreement with Whitney become due on April 15, 2012. The Company will need to raise additional debt or equity capital or renegotiate the existing debt prior to such date. The Company is currently in discussions with several lenders who have expressed interest in refinancing its debt. The Company's plan is to refinance the outstanding indebtedness under the Restated Credit Agreement or seek terms with Whitney that will provide an extension of such Restated Credit Agreement along with additional liquidity. However, the Company cannot provide any assurance that any financing will be available to it on acceptable terms or at all. If the Company is unable to raise additional capital or renegotiate its existing debt, this would have a material adverse impact on the Company's business or would raise substantial doubt about its ability to continue as a going concern. In addition, as of Dec. 31, 2010, the Company was not in compliance with the financial covenants under the Restated Credit Agreement. On March 25, 2011 the Company obtained a waiver for these covenants as of Dec. 31, 2010. DENNY'S CORP: Wells Fargo Discloses 7.4% Equity Stake ----------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Wells Fargo & Company disclosed that, as of Dec. 31, 2011, it beneficially owns 7,190,151 shares of common stock of Denny's Corporation representing 7.46% of the shares outstanding. A full-text copy of the filing is available at http://is.gd/6Eabqp About Denny's Corporation Based in Spartanburg, South Carolina, Denny's Corporation (NASDAQ: DENN) -- http://www.dennys.com/-- Denny's is one of America's largest full-service family restaurant chains, consisting of 1,348 franchised and licensed units and 232 company-owned units, with operations in the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico. The Company's balance sheet at Sept. 28, 2011, showed $280.63 million in total assets, $376.11 million in total liabilities, and a $95.47 million total shareholders' deficit. * * * Denny's carries 'B2' corporate family and probability of default ratings from Moody's Investors Service and a 'B+' corporate credit rating from Standard & Poor's. DEX MEDIA EAST: Bank Debt Trades at 54% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media East LLC is a borrower traded in the secondary market at 46.33 cents-on- the-dollar during the week ended Friday, Jan. 27, 2012, an increase of 0.73 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 250 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 24, 2014. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About R.H. Donnelley & Dex Media East Based in Cary, North Carolina, R.H. Donnelley Corp., fka The Dun & Bradstreet Corp. (NYSE: RHD) -- http://www.rhdonnelley.com/-- publishes and distributes print and online directories in the U.S. It offers print directory advertising products, such as yellow pages and white pages directories. R.H. Donnelley Inc., Dex Media, Inc., and Local Launch, Inc., are the company's only direct wholly owned subsidiaries. Dex Media East LLC is a publisher of the official yellow pages and white pages directories for Qwest Communications International Inc. in the states, where Qwest is the primary incumbent local exchange carrier, such as Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection (Bank. D. Del. Case No. 09-11833 through 09- 11852) on May 28, 2009, after missing a $55 million interest payment on its senior unsecured notes. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, represented the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, served as the Debtors' local counsel. The Debtors' financial advisor was Deloitte Financial Advisory Services LLP while its investment banker was Lazard Freres & Co. LLC. The Garden City Group, Inc., served as claims and noticing agent. The Official Committee of Unsecured Creditors tapped Ropes & Gray LLP as its counsel, Cozen O'Connor as Delaware bankruptcy co-counsel, J.H. Cohn LLP as its financial advisor and forensic accountant, and The Blackstone Group, LP, as its financial and restructuring advisor. The Debtors emerged from Chapter 11 bankruptcy proceedings at the end of January 2010. DEX MEDIA WEST: Bank Debt Trades at 44% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media West LLC is a borrower traded in the secondary market at 56.33 cents-on- the-dollar during the week ended Friday, Jan. 27, 2012, an increase of 0.83 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 24, 2014, and carries Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Dex Media West Dex Media West LLC is a subsidiary of Dex Media West, Inc., and an indirect wholly owned subsidiary of Dex Media, Inc. Dex Media is a direct wholly owned subsidiary of R.H. Donnelley Corporation. Dex Media West is the exclusive publisher of the official yellow pages and white pages directories for Qwest Corporation, the local exchange carrier of Qwest Communications International, Inc., in Arizona, Idaho, Montana, Oregon, Utah, Washington, and Wyoming. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection (Bank. D. Del. Case No. 09-11833 through 09- 11852) on May 28, 2009, after missing a $55 million interest payment on its senior unsecured notes due April 15, 2009. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois, served as lead bankruptcy counsel to the Debtors. Attorneys at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, served as local counsel. Deloitte Financial Advisory Services LLP was the financial advisor and Lazard Freres & Co. LLC was the investment banker. The Garden City Group, Inc., was claims and noticing agent. The Official Committee of Unsecured Creditors tapped Ropes & Gray LLP as its counsel, Cozen O'Connor as Delaware bankruptcy co-counsel, J.H. Cohn LLP as its financial advisor and forensic accountant, and The Blackstone Group, LP, as its financial and restructuring advisor. The Debtors emerged from Chapter 11 bankruptcy proceedings at the end of January 2010. DRINKS AMERICAS: Issues 9.9 Million Common Shares to Worldwide -------------------------------------------------------------- As reported on the current report on Form 8-K of Drinks Americas Holdings, Ltd., as filed with the Securities and Exchange Commission on Jan. 25, 2012, the Company issued a certain number of shares of the Company's common stock. The Original Report is amended solely to correct a misstated number of shares. The Original Report was amended by replacing the sentence, reading "4,175,348 shares, representing the 49% allocation of the Resulting Ownership, were issued to Worldwide", with the corrected sentence, reading "9,929,602 shares, representing the 49% allocation of the Resulting Ownership, were issued to Worldwide." About Drinks Americas Headquartered in Wilton, Conn., Drinks Americas Holdings, Ltd. -- http://www.drinksamericas.com/-- through its majority-owned subsidiaries, Drinks Americas, Inc., Drinks Global, LLC, D.T. Drinks, LLC, and Olifant U.S.A Inc., imports, distributes and markets unique premium wine and spirits and alcoholic beverages associated with icon entertainers, celebrities and destinations, to beverage wholesalers throughout the United States. The Company reported a net loss of $4.58 million on $497,453 of net sales for the year ended April 30, 2011, compared with a net loss of $5.61 million on $890,380 of net sales during the prior year. Bernstein & Pinchuk, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses from operations since its inception and has a working capital deficiency. The Company's balance sheet at Oct. 31, 2011, showed $2.52 million in total assets, $5.35 million in total liabilities, and a $2.83 million total stockholders' deficiency. DYNEGY INC: Court Sets Feb. 24, 2012 Claims Bar Date ---------------------------------------------------- The Bankruptcy Court presiding the Chapter 11 cases of Dynegy Holdings LLC and its affiliates has established: * February 24, 2012 at 5:00 p.m. (prevailing Eastern Time) as the deadline for each person or entity to file proofs of claim based on prepetition claims against the Debtors; and * May 7, 2012 at 5:00 p.m. (prevailing Eastern Time) as the deadline for governmental units, to file Proofs of Claim against the Debtors. All persons and entities who hold a claim against a Debtor that arose on or prior to the November 7, 2011 Petition Date, and who desire to share in any distribution made in the Chapter 11 cases, must file a written proof of the claim on or before the applicable Bar Date, in accordance with the Court's Order. The Debtors proposed Feb. 22, 2012 at 5:00 p.m. (prevailing Eastern Time) as the deadline for each person or entity to file proofs of claim based on prepetition claims against the Debtors. For governmental units, the Debtors proposd to establish May 7, 2012, as the deadline for filing claims. All persons and entities who hold a claim against a Debtor that arose on or prior to November 7, 2011, and who desire to share in any distribution made in the Chapter 11 cases, must file a written proof of that claim on or before the applicable bar date. Original Proofs of Claim must be filed either by U.S. Postal Service mail or overnight delivery to the official noticing and claims agent in the Chapter 11 cases, Epiq Bankruptcy Solutions, LLC, or by delivering the original Proof of Claim by hand to the Bankruptcy Court. Neither Epiq nor the Bankruptcy Court is to be required to accept Proofs of Claim sent by facsimile, telecopy, or electronic mail transmission. These persons are not required to file a Proof of Claim on or before the applicable Bar Date: (a) any person or entity whose claim is listed on the Debtors' schedules of assets and liabilities and schedules of executory contracts and unexpired leases and whose and (i) whose claim is not described as "disputed," "contingent," or "unliquidated," and (ii) who does not dispute the amount or nature of the claim set forth in the Schedules; (b) any person or entity that has already been paid in full by the Debtors; (c) any holder of an equity interest in the Debtors need not file a proof of interest with respect to the ownership of the equity interest at this time; provided (d) any person or entity that holds a claim that has been allowed by an order of the Bankruptcy Court entered on or before the applicable Bar Date; that any holder of an equity interest who wishes to assert a claim against the Debtors (as opposed to ownership interests) must submit a Proof of Claim asserting that claim on or prior to the applicable Bar Date pursuant to the proposed claims filing procedures; (e) any holder of a claim for which a separate deadline and procedure for setting forth that claim has been fixed by the Bankruptcy Court; (f) any holder of a claim who has already properly filed a Proof of Claim with the Clerk of the Court or Debtors' Court-approved claims agent, Epiq, against the Debtors utilizing a claim form which substantially conforms to the Proof of Claim Form; (g) any person or entity that asserts a claim under Sections 503(b) or 507(a) of the Bankruptcy Code as an expense of administration of the Debtors' estates, except any holder of a claim arising under Section 503(b)(9), which claim must be asserted by filing a Proof of Claim on or prior to the applicable Bar Date; (h) any person or entity whose claim is limited exclusively to the repayment of principal, interest, and other fees and expenses on or under any agreements governing any debt security issued by any of the Debtors pursuant to an indenture if the indenture trustee or similar fiduciary under the applicable indenture files a Proof of Claim against the applicable Debtor, on or before the Bar Date, on account of all holders of Debt Claims under the applicable debt instruments; provided that any holder of a Debt Claim wishing to assert a claim arising out of or relating to a debt instrument, other than a Debt Claim, will be required to file a Proof of Claim with respect to that claim on or before the Bar Date, unless another exception applies; and (i) any Debtor having a claim against another Debtor or any non-Debtor affiliate of the Debtors having a claim against any of the Debtors; provided that the Debtors agree to provide the Official Committee of Unsecured Creditors with information reasonably requested by the Committee for the Committee to assess the existence or validity of any claims of non-debtor affiliates against any of the Debtors and whether the Committee has a basis for objecting to those claims. Any person or entity that holds a claim that arises from the rejection of an executory contract or unexpired lease must file a Proof of Claim by the later of (a) the applicable Bar Date and (b) 30 days after the date of notice of rejection provided by the Debtors unless the order approving rejection provides otherwise. About Dynegy Inc. Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE: DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. In August, Dynegy implemented an internal restructuring that created two units, one owning eight primarily natural gas-fired power generation facilities and another owning six coal-fired plants. Dynegy missed a $43.8 million interest payment Nov. 1, 2011, and said it was discussing options for managing its debt load with certain bondholders. Dynegy Holdings LLC and four other affiliates of Dynegy Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-38111) Nov. 7 to implement an agreement with a group of investors holding more than $1.4 billion of senior notes issued by Dynegy's direct wholly-owned subsidiary, Dynegy Holdings, regarding a framework for the consensual restructuring of more than $4.0 billion of obligations owed by DH. If this restructuring support agreement is successfully implemented, it will significantly reduce the amount of debt on the Company's consolidated balance sheet. Dynegy Holdings disclosed assets of $13.77 billion and debt of $6.18 billion, while Roseton LLC and Dynegy Danskammer LLC each estimated $100 million to $500 million in assets and debt. Dynegy Holdings and its affiliated debtor-entities are represented in the Chapter 11 proceedings by Sidley Austin LLP as their reorganization counsel. Dynegy and its other subsidiaries are represented by White & Case LLP, who is also special counsel to the Debtor Entities with respect to the Roseton and Danskammer lease rejection issues. Dynegy was advised by Lazard Freres & Co. LLC and the Debtor Entities' financial advisor is FTI Consulting. The Official Committee of Unsecured Creditors has tapped Akin Gump Strauss Hauer & Feld LLP as counsel nunc pro tunc to November 16, 2011. Bankruptcy Creditors' Service, Inc., publishes DYNEGY BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Dynegy Inc. (http://bankrupt.com/newsstand/or 215/945-7000) DYNEGY INC: Committee Wins OK to Hire Blackstone as Advisor ----------------------------------------------------------- Pursuant to Sections 328(a) and 1103 of the Bankruptcy Code, the Bankruptcy Court has authorized the Official Committee of Unsecured Creditors to retain Blackstone Advisory Partners L.P. as Financial Advisor nunc pro tunc to November 18, 2011. The Court ruled that Blackstone's monthly fees and "Restructuring Fee" will be subject to the standard of review set forth in Section 328(a) of the Bankruptcy Code and will not be subject to the standard of review set in Section 330 of the Bankruptcy Code; provided that the U.S. Trustee will be entitled to object to, and whether or not any objection is filed, the Court retains the power to review, applications by Blackstone for payment of the Monthly Fee and Restructuring Fee. The Debtors told the Court they have no objection to the Committee's retention of Blackstone as its financial advisor. However, the Debtors point out that, given the circumstances of their "pre-negotiated" Chapter 11 Cases, they believe Blackstone's $3.75 million restructuring fee should be subject to review by the Debtors under Section 330 of the Bankruptcy Code. The Committee responded that the proposed compensation structure, including the restructuring fee, is fair and reasonable and well within the "market" rate for services of the type Blackstone will be providing to the Committee. In its application, the Committee said that Blackstone is expected to provide these services: (a) assist in the evaluation of the Debtors' businesses and prospects; (b) analyze the Debtors' long-term business plan and related financial projections; (c) evaluate the Debtors' financial liquidity, debt capacity and capital structure and evaluate alternatives to improve such liquidity; (d) assist in the development of financial data and presentations to the Committee; (e) value any consideration offered by either the Debtors or Dynegy to unsecured creditors of the Debtors in connection with a Restructuring; (f) analyze various restructuring scenarios and the potential impact of these scenarios on recoveries for Unsecured Creditors; (g) participate in negotiations among the Committee, the Debtors, Dynegy and its other creditors, suppliers, lessors and other interested parties; (h) assist in evaluating the treatment of leases by the Debtors; (i) provide expert witness testimony concerning any of the subjects encompassed by the other financial advisory services, if requested by the Committee; and (j) provide other advisory services as are customarily provided in connection with the analysis and negotiation of a Restructuring, as requested and mutually agreed. As consideration for Blackstone's services, the Committee sought approval of this fee structure: (a) a monthly advisory fee (the "Monthly Fee") in the amount of $150,000 in cash, with the first Monthly Fee payable upon the execution of the Engagement Letter by both parties and additional installments of such Monthly Fee payable in advance on each monthly anniversary of the Effective Date. Half of all Monthly Fees beginning with the seventh Monthly Fee payment will be credited against the Restructuring Fee; (b) a Restructuring Fee equal to $3,750,000. Except as otherwise provided in the Engagement Letter, a Restructuring will be deemed to have been completed upon the confirmation of a plan pursuant to an order of the Bankruptcy Court, or in the case of a sale or other disposition of substantially all of the assets of the Debtors, upon an order of the Bankruptcy Court approving the sale or other disposition. The Restructuring Fee will be earned on completion of a Restructuring and will be payable, in cash, on the consummation of a Restructuring; and (c) reimbursement of all reasonable out-of-pocket expenses incurred during this engagement, including, but not limited to, travel and lodging, direct identifiable data processing, document production, publishing services and communication charges, courier services, working meals, and the reasonable fees and expenses of the Advisor's counsel and other necessary expenditures, payable upon rendition of invoices setting forth in reasonable detail the nature and amount of the expenses. Michael Genereax, a senior managing director of Blackstone Advisory, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Dynegy Inc. Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE: DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. In August, Dynegy implemented an internal restructuring that created two units, one owning eight primarily natural gas-fired power generation facilities and another owning six coal-fired plants. Dynegy missed a $43.8 million interest payment Nov. 1, 2011, and said it was discussing options for managing its debt load with certain bondholders. Dynegy Holdings LLC and four other affiliates of Dynegy Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-38111) Nov. 7 to implement an agreement with a group of investors holding more than $1.4 billion of senior notes issued by Dynegy's direct wholly-owned subsidiary, Dynegy Holdings, regarding a framework for the consensual restructuring of more than $4.0 billion of obligations owed by DH. If this restructuring support agreement is successfully implemented, it will significantly reduce the amount of debt on the Company's consolidated balance sheet. Dynegy Holdings disclosed assets of $13.77 billion and debt of $6.18 billion, while Roseton LLC and Dynegy Danskammer LLC each estimated $100 million to $500 million in assets and debt. Dynegy Holdings and its affiliated debtor-entities are represented in the Chapter 11 proceedings by Sidley Austin LLP as their reorganization counsel. Dynegy and its other subsidiaries are represented by White & Case LLP, who is also special counsel to the Debtor Entities with respect to the Roseton and Danskammer lease rejection issues. Dynegy was advised by Lazard Freres & Co. LLC and the Debtor Entities' financial advisor is FTI Consulting. The Official Committee of Unsecured Creditors has tapped Akin Gump Strauss Hauer & Feld LLP as counsel nunc pro tunc to November 16, 2011. Bankruptcy Creditors' Service, Inc., publishes DYNEGY BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Dynegy Inc. (http://bankrupt.com/newsstand/or 215/945-7000) DYNEGY INC: Examiner Proposes Quinn Emanuel as Counsel ------------------------------------------------------ Susheel Kirpalani, Esq., the Chapter 11 examiner for Dynegy Holdings, LLC and its Debtor affiliates, ask the Court for authority to retain Quinn Emanuel Urquhart & Sullivan LLP as counsel nunc pro tunc to January 12, 2012, to represent him and perform services for him in connection with carrying out his fiduciary duties and responsibilities under the Bankruptcy Code, consistent with Section 1106 of the Bankruptcy Code. The Examiner anticipates that in connection with his investigation, Quinn Emanuel will provide these services, among others: a. take all necessary actions to assist and advise the Examiner in the discharge of his duties and responsibilities under the Examiner Order and the Bankruptcy Code; b. prepare on behalf of the Examiner motions, applications, notices, answers, orders and documents necessary in the discharge of the Examiner's duties; c. represent the Examiner at all hearings and other proceedings before this Court, any appellate courts, and the United States Trustee; and, advocate and protect the interests of the Examiner before such courts; d. analyze and advise the Examiner regarding any legal issues that arise in connection with the investigation; e. assist with interviews and examinations in connection with the Investigation; f. perform all other necessary legal services on behalf of the Examiner in connection with the Chapter 11 Cases; and g. assist the Examiner in undertaking additional tasks that the Court may direct. The Examiner asks that all fees and related costs and expenses incurred by Quinn Emanuel be paid as administrative expenses of the estate pursuant to Sections 330(a), 503(b) and 507(a)(1) of the Bankruptcy Code. Quinn Emanuel's standard hourly rates, which are based upon the professionals' level of experience, range from $810 to $1075 for partners, $760 to $900 for counsel, $430 to $750 for associates, and $290 to $350 for paralegals and professional staff. If retention of Quinn Emanuel is approved by the Court, the firm will provide a discount of 10% on the rates of any professionals and paraprofessionals that incur time on the engagement. The firm will also be reimbursed for necessary out-of-pocket expenses. The Examiner is a member of Quinn Emanuel. He assures the Court that he and his firm is each a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Dynegy Inc. Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE: DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. In August, Dynegy implemented an internal restructuring that created two units, one owning eight primarily natural gas-fired power generation facilities and another owning six coal-fired plants. Dynegy missed a $43.8 million interest payment Nov. 1, 2011, and said it was discussing options for managing its debt load with certain bondholders. Dynegy Holdings LLC and four other affiliates of Dynegy Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-38111) Nov. 7 to implement an agreement with a group of investors holding more than $1.4 billion of senior notes issued by Dynegy's direct wholly-owned subsidiary, Dynegy Holdings, regarding a framework for the consensual restructuring of more than $4.0 billion of obligations owed by DH. If this restructuring support agreement is successfully implemented, it will significantly reduce the amount of debt on the Company's consolidated balance sheet. Dynegy Holdings disclosed assets of $13.77 billion and debt of $6.18 billion, while Roseton LLC and Dynegy Danskammer LLC each estimated $100 million to $500 million in assets and debt. Dynegy Holdings and its affiliated debtor-entities are represented in the Chapter 11 proceedings by Sidley Austin LLP as their reorganization counsel. Dynegy and its other subsidiaries are represented by White & Case LLP, who is also special counsel to the Debtor Entities with respect to the Roseton and Danskammer lease rejection issues. Dynegy was advised by Lazard Freres & Co. LLC and the Debtor Entities' financial advisor is FTI Consulting. The Official Committee of Unsecured Creditors has tapped Akin Gump Strauss Hauer & Feld LLP as counsel nunc pro tunc to November 16, 2011. Bankruptcy Creditors' Service, Inc., publishes DYNEGY BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Dynegy Inc. (http://bankrupt.com/newsstand/or 215/945-7000) DYNEGY INC: Examiner Proposes Zolfo Cooper as Advisor ----------------------------------------------------- Susheel Kirpalani, Esq., the Chapter 11 examiner for Dynegy Holdings, LLC and its Debtor affiliates, ask the Court for authority to retain Zolfo Cooper LLC as financial advisor nunc pro tunc to January 14, 2012. The Examiner asks that Zolfo Cooper's retention be nunc pro tunc to January 14, 2012, the date on which Zolfo Cooper began to work for the Examiner, assisting in the Examiner's Investigation and familiarizing the Examiner with the case in order to enable him to properly perform his duties. At the Examiner's direction, Zolfo Cooper has, among other things, participated in meetings with the Examiner and his proposed counsel to discuss scope and priority; participated in a meeting between the Examiner and other professionals to get a top-level overview of other professionals' perspectives on the issues; begun reviewing publicly available information for potentially relevant information; read and summarized public filings related to restructuring transactions; participated in discussions regarding the preliminary approaches and work plans; and participated in meetings with representatives of the Debtors. The billing rates for professionals who may be assigned to the engagement are: Managing Directors $775 to $825 Professional Staff $230 to $695 Support Personnel $55 to $295 Zolfo Cooper agrees to apply a 10% discount to the professional fees, without prejudice to existing or future bankruptcy engagements. Scott W. Winn, a senior managing director of Zolfo Cooper, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Dynegy Inc. Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE: DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. In August, Dynegy implemented an internal restructuring that created two units, one owning eight primarily natural gas-fired power generation facilities and another owning six coal-fired plants. Dynegy missed a $43.8 million interest payment Nov. 1, 2011, and said it was discussing options for managing its debt load with certain bondholders. Dynegy Holdings LLC and four other affiliates of Dynegy Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-38111) Nov. 7 to implement an agreement with a group of investors holding more than $1.4 billion of senior notes issued by Dynegy's direct wholly-owned subsidiary, Dynegy Holdings, regarding a framework for the consensual restructuring of more than $4.0 billion of obligations owed by DH. If this restructuring support agreement is successfully implemented, it will significantly reduce the amount of debt on the Company's consolidated balance sheet. Dynegy Holdings disclosed assets of $13.77 billion and debt of $6.18 billion, while Roseton LLC and Dynegy Danskammer LLC each estimated $100 million to $500 million in assets and debt. Dynegy Holdings and its affiliated debtor-entities are represented in the Chapter 11 proceedings by Sidley Austin LLP as their reorganization counsel. Dynegy and its other subsidiaries are represented by White & Case LLP, who is also special counsel to the Debtor Entities with respect to the Roseton and Danskammer lease rejection issues. Dynegy was advised by Lazard Freres & Co. LLC and the Debtor Entities' financial advisor is FTI Consulting. The Official Committee of Unsecured Creditors has tapped Akin Gump Strauss Hauer & Feld LLP as counsel nunc pro tunc to November 16, 2011. Bankruptcy Creditors' Service, Inc., publishes DYNEGY BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Dynegy Inc. (http://bankrupt.com/newsstand/or 215/945-7000) EAGLE CROSSROADS: Asks Court to Dismiss Chapter 11 Case ------------------------------------------------------- Eagle Crossroads Center LLC asks the U.S. Bankruptcy Court to dismiss its Chapter 11 case, pursuant to Section 1112 of the Bankruptcy Code. On Dec. 15, 2011, Karlin Crossroads, LLC and Hillcrest Eagle Shopping Center, L.P., the Debtor's sole owner, entered into a Master Agreement whereby Karlin agreed to purchase a note from Bank of America for $33,000,000. Hillcrest agreed to facilitate the acquisition by, among other things, transferring (1) $2,000,000 to Karlin on or before Dec. 16, 2011; (2) $945,000 on or before Dec. 19, 2011; and (3) $2,515,000 on or before Jan. 31, 2012. Following acquisition of the Note, Karlin agrees to accept a discounted payoff of the Note for an amount equal to (a) $35,400,000 and (b) a Supplemental Payoff Amount -- as defined in the Master Agreement to be the balance of the Discounted Pay Off Amount plus interest from Jan. 31, 2012 through the closing date. In conjunction with the Pay-Off Amount, Karlin agrees to make a new loan for $29,000,000 with an interest rate of 10.25% and with a maturity date of June 30, 2012, subject to a 210-day extension, which New Loan will be secured by a new deed of trust on the Property. The payment on the New Loan is expected to be $247,000. As reported in the Troubled Company Reporter on Sept. 27, 2011, the Debtor entered into a November 2007 loan agreement with Morgan Stanley Mortgage Capital Holdings LLC, pursuant to which the Debtor borrowed $52 million. The Debtor used the proceeds of the loan to own, maintain, and operate the retail shopping center property located at 6464 Decatur Boulevard in North Las Vegas, Nevada. Subsequently, and effective as of Dec. 28, 2007, Morgan Stanley assigned its rights, title and interest in the loan, and to the loan documents, to Wells Fargo Bank, N.A., as trustee for Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series 2007-HQ13. Six months later, i.e. effective as of June 30, 2009, Wells Fargo assigned its rights, title and interest in the loan, and to the loan documents, to the lender. According to the Debtor, with Karlin's purchase of the BofA Note, Debtor has been put in a position of being able to continue payment to its new secured lender and in a position to obtain conventional long-term financing and consequently, no longer needs the protections of the Bankruptcy Code. As such, dismissal of the Chapter 11 Bankruptcy Case is in the best interest of the Debtor and its creditors. Additionally, the Debtor said it has sufficient cash flow and cash on hand to pay all claims of the estate upon dismissal including administrative, priority, and unsecured claims. About Eagle Crossroads Center Los Angeles, California-based Eagle Crossroads Center, LLC, owns and operates a retail shopping center property located at 6464 Decatur Boulevard, in North Las Vegas, Nevada. The Property has consistently maintained strong occupancy rates, and is currently roughly 95% occupied. Eagle Crossroads Center filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case No. 11-23749) on Aug. 30, 2011, before Judge Bruce T. Beesley. Thomas H. Fell, Esq., at Gordon Silver, serves as the Debtor's bankruptcy counsel. The Debtor estimated assets and debts of $50 million to $100 million as of the Chapter 11 filing. EASTMAN KODAK: Taps Hires Kekst and Co. as Communications Advisor ----------------------------------------------------------------- Corporate and financial communications specialist Kekst and Company is advising onetime Eastman Kodak Company on its Chapter 11 filing, a Holmes Report dated Jan. 22 disclosed. Kekst managing directors Jeremy Fielding and Ruth Pachman are leading what the firm describes as "a large Kekst team" working on the important assignment, the report said. The report related that Kekst's bankruptcy and restructuring practice has been very active in recent months, advising AMR Corporation on its Chapter 11 reorganization; the Los Angeles Dodgers on its bankruptcy and host of other issues; and bookseller Borders. The firm is also working with the special investigation task force of the board of Penn State following the university's sex scandal last year, the report said. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, voluntarily filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. are not included in the filing and will continue to operate as usual. The Company, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Having invested significantly in research and development for over a century, Kodak has a vast portfolio of patents. In 1975, Kodak scientists invented the first digital camera. Kodak then went on to develop a vast collection of patented technologies to enhance digital image capture and processing, technologies that are used in virtually every modern digital camera, smartphone and tablet, as well as numerous other devices. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Kodak says it has "significant" legacy liabilities, which include $1.2 billion in non-U.S. pension liabilities, $1.3 billion of Other Post-Employment Benefit ("OPEB") liabilities and roughly $100 million in environmental liabilities. Kodak has outstanding funded debt in an aggregate amount of roughly $1.6 billion, consisting primarily of roughly: (a) $100 million outstanding under the first lien revolving credit facility plus an additional $96 million in face amount of outstanding letters of credit; (b) $750 million in principal amount of second lien secured notes; (c) $400 million in principal amount of convertible notes; and (d) $283 million in principal amount of other senior unsecured debt. Kodak also has roughly $425 million in outstanding trade debt. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtor. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. A group of second lien lenders are represented by Akin Gump Strauss Hauer & Feld LLP. Bankruptcy Creditors' Service, Inc., publishes EASTMAN KODAK BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Eastman Kodak and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). EASTMAN KODAK: Eastman Business Park May Be Sold in Bankruptcy -------------------------------------------------------------- Eastman Business Park, the 1,200-acre real estate and buildings that was once the heart of Eastman Kodak Co.'s industrial empire, may be sold as a whole or in pieces as the beleaguered company moves to restructure in federal bankruptcy court, Tom Tobin, writing for Democrat and Chronicle.com, reported. Greater Rochester Enterprise CEO Mark Peterson, according to the report, said, prior to the company's Chapter 11 court filing last Thursday, Kodak had opened discussions with a potential buyer for the entire 1,200-acre business park, though the talks were preliminary. "There's a lot still to do and they are not close to a deal," Mr. Peterson told the news agency. He said a price had been discussed, though he said he didn't know it, and that a private equity firm was involved in the deal, though not as the principal buyer, the report related. "The discussions are ongoing," Mr. Peterson said. "The bankruptcy filing hasn't changed that." The report related that Kodak in the past decade has tried aggressively to bring in buyers and tenants to the property, formerly known as Kodak Park. The report added that from 2003 to 2007, Kodak spent millions to upgrade a complex that was already renowned for being self-sufficient. The site has its own water, sewer and power supplies, as well as its own fire department. About 30 companies other than Kodak now either own or rent space at the park, the report related. There are 300 acres of open space and other former Kodak buildings are available for sale or lease. According to the report, Michael Alt, the Kodak manager who serves as director of Eastman Business Park, said he couldn't respond to questions about the park before first vetting them with the relevant company officials. "This is a complex legal proceeding and anything we say from now on will need to be reviewed first," Mr. Alt told the news agency. When a company seeks to reorganize under court protection, as occurs in a Chapter 11 filing, "non-core assets" such as Eastman Business Park become part of the process. Sale of property and signing of new leases may require approval of the court. That doesn't mean that real estate efforts involving the park are suspended. In fact, Peterson said the judge may expedite the sale and lease of such assets to improve Kodak's cash reserves and overall financial picture. Tenant Not Affected by Filing A Jan. 20 report by CleanEnergyAuthority.com said the solar research of Natcore Technology won't be affected by Eastman Kodak Company's bankruptcy filing. Natcore is renting space at Kodak's labs and using Kodak's machinery for its solar research. "We are merely tenants of the Eastman Business Park," Natcore CEO Chuck Provini told Reuters. "This is a 1,200-acre facility that once employed more than 30,000 Kodak employees. This facility was repurposed and currently has 6,200 employees, half of which still work for Kodak while the other half work for 35 other tenant companies, of which Natcore is one." Natcore Technology, according to the report, is working on a bigger solar technology, using liquid phase deposition and quantum dots to develop a more efficient solar cell at a lower cost. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, voluntarily filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. are not included in the filing and will continue to operate as usual. The Company, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Having invested significantly in research and development for over a century, Kodak has a vast portfolio of patents. In 1975, Kodak scientists invented the first digital camera. Kodak then went on to develop a vast collection of patented technologies to enhance digital image capture and processing, technologies that are used in virtually every modern digital camera, smartphone and tablet, as well as numerous other devices. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Kodak says it has "significant" legacy liabilities, which include $1.2 billion in non-U.S. pension liabilities, $1.3 billion of Other Post-Employment Benefit ("OPEB") liabilities and roughly $100 million in environmental liabilities. Kodak has outstanding funded debt in an aggregate amount of roughly $1.6 billion, consisting primarily of roughly: (a) $100 million outstanding under the first lien revolving credit facility plus an additional $96 million in face amount of outstanding letters of credit; (b) $750 million in principal amount of second lien secured notes; (c) $400 million in principal amount of convertible notes; and (d) $283 million in principal amount of other senior unsecured debt. Kodak also has roughly $425 million in outstanding trade debt. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtor. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. A group of second lien lenders are represented by Akin Gump Strauss Hauer & Feld LLP. Bankruptcy Creditors' Service, Inc., publishes EASTMAN KODAK BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Eastman Kodak and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). EASTMAN KODAK: Business as Usual for Kodak UK --------------------------------------------- David Webb, Kodak Ltd. (UK) general manager, sent an e-mail dated Jan. 20 to assure customers and clients that they are not part of the bankruptcy filing of its U.S. subsidiaries and that it's business as usual for Kodak's non-US subsidiaries, including its unit in the United Kingdom. The non-U.S. subsidiaries that are not part of the Jan. 19 Chapter 11 filing include subsidiaries in UK, Ireland, Middle East, Africa, Central and Eastern Europe. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, voluntarily filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. are not included in the filing and will continue to operate as usual. The Company, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Having invested significantly in research and development for over a century, Kodak has a vast portfolio of patents. In 1975, Kodak scientists invented the first digital camera. Kodak then went on to develop a vast collection of patented technologies to enhance digital image capture and processing, technologies that are used in virtually every modern digital camera, smartphone and tablet, as well as numerous other devices. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Kodak says it has "significant" legacy liabilities, which include $1.2 billion in non-U.S. pension liabilities, $1.3 billion of Other Post-Employment Benefit ("OPEB") liabilities and roughly $100 million in environmental liabilities. Kodak has outstanding funded debt in an aggregate amount of roughly $1.6 billion, consisting primarily of roughly: (a) $100 million outstanding under the first lien revolving credit facility plus an additional $96 million in face amount of outstanding letters of credit; (b) $750 million in principal amount of second lien secured notes; (c) $400 million in principal amount of convertible notes; and (d) $283 million in principal amount of other senior unsecured debt. Kodak also has roughly $425 million in outstanding trade debt. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtor. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. A group of second lien lenders are represented by Akin Gump Strauss Hauer & Feld LLP. Bankruptcy Creditors' Service, Inc., publishes EASTMAN KODAK BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Eastman Kodak and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). ELECTRICAL COMPONENTS: Moody's Affirms B2 Corporate Family Rating ----------------------------------------------------------------- Moody's Investors Service has revised the rating outlook of Electrical Components International, Inc. (ECI) to negative from positive. Concurrently, Moody's affirmed all of the company's ratings, including the B2 corporate family rating. These ratings were affirmed: B2 Corporate Family Rating; B3 Probability of Default Rating; B1 (LGD2, 26%) to the existing $30 million revolving credit facility due 2016; and B1 (LGD2, 26%) to the existing $160 million senior secured term loan due 2017. RATINGS RATIONALE The change in outlook to negative from positive reflects Moody's view that ECI's financial flexibility will tighten over the intermediate term due to the contractual quarterly covenant step- downs set to begin in the first quarter of 2012. The company's recent performance has been below expectations, and Moody's anticipates that EBITDA performance will be uneven over the intermediate term due to persistent challenges in the US housing market, tempered consumer sentiment and potential volatility in quarterly order trends. Accordingly, Moody's believes the company will need to apply a considerable portion of its expected free cash flow to debt reduction in order to maintain covenant compliance. The B2 corporate family rating reflects ECI's moderate leverage and adequate liquidity profile, which benefits from both its cash generation and a receivables factoring program. At the same time, the rating considers the company's high customer concentration within the North American white goods appliance sector, with heavy reliance on three top appliance manufacturers in the US. The rating benefits from the company's dominant position as a wire harness manufacturer in North America and Europe for the white goods sector and its low cost manufacturing capabilities. A ratings downgrade could occur if ECI's financial flexibility weakens further due to an inability to maintain covenant compliance and/or to generate free cash flow. A ratings upgrade is not likely over the near term. However, the ratings outlook could revert to stable if covenant headroom increases through debt reduction, EBITDA growth or covenant amendments. The principal methodology used in rating Electrical Components International, Inc. was the Global Manufacturing Industry Methodology published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Electrical Components International, Inc., headquartered in St. Louis, Missouri, is a leading manufacturer of wire harnesses and provider of contract assembly services to North American, European and Asian white goods appliance manufacturers. In addition, the company produces specialty wire harnesses for the transportation, heating, ventilations and air conditioning, construction and agriculture end markets. The company generated approximately $527 million of sales in the twelve months ending September 30, 2011. ELECTRICAL COMPONENTS: S&P Puts 'B' Credit Rating on Watch Neg. --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on St. Louis, Mo.-based electrical wire harness manufacturer Electrical Components International Inc. (ECI), including the 'B' corporate credit rating, on CreditWatch with negative implications. "The CreditWatch listing reflects our opinion that ECI's end markets, especially residential construction, will remain weak over the next 12 to 18 months and could present a challenge for the company to comply with its leverage covenant as it steps down," said Standard & Poor's credit analyst Sarah Wyeth. "Although we recognize that the company could use proceeds from receivable finance programs to reduce debt, we believe the risk of deteriorating operating performance and negative free cash flow has increased to the extent that covenant compliance could become difficult in early 2013," she added. ECI manufactures electrical wire harnesses, which transmit electricity throughout appliances or pieces of machinery, and generated about $530 million in sales in 2010. Demand for the company's products is closely tied to the domestic housing market, which likely will remain weak through 2012 partly due to high levels of unemployment. Modest recovery in residential construction spending beginning in 2013 will be from very low levels and could be at risk if the U.S. enters a recession -- Standard & Poor's economists currently place the odds of this at 30%. The company's liquidity is "less than adequate" under Standard & Poor's criteria. Headroom under the company's leverage covenant has declined. If end markets and performance do not stabilize, the company could be challenged to comply with covenants when they step down in 2013, even if it reduces debt with proceeds from its receivable finance program. Standard & Poor's expects to review the company's liquidity position and resolve the CreditWatch placement within the next 90 days. EMPRESAS BASTARD: Wants U.S. Trustee's Dismissal Bid Denied ----------------------------------------------------------- Empresas Bastard Incorporado filed with the U.S. Bankruptcy Court objects to the U.S. Trustee's motion to dismiss its Chapter 11 case. Donald F. Walton, the United States Trustee for Region 21, wants the Debtor's case dismissed due to the Debtor's: a) unexcused failure to timely satisfy any filing or reporting requirement established by 11 U.S.C. or by applicable rules; and b) failure to timely provide information or attend meetings reasonably requested by the U.S. Trustee. The Debtor denies it is abusing the bankruptcy process. The Debtor said in court papers that its president, Antonio Bastard Rodriguez, the President of the Debtor, may be suffering from some mental health issues that may be bordering on Alzheimer's or dementia, causing him to fail to provide the necessary documents required by the U.S. Trustee. The Debtor noted that its asset consists of plots of land and thus an issue of loss or diminution of the estate is not at issue. On the other hand, the Debtor added, the reorganization and implementation of a project the Debtor proposed may increase rather than diminish the value of the properties. About Empresas Bastard Empresas Bastard Incorporado, based in San Juan, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-08736) on Oct. 8, 2011. Robert Millan, Esq., at Millan Law Offices, represented the Debtor. The petition was signed by Antonio Bastard Rodriguez, president. The Debtor disclosed US$42,700,000 in assets and US$21,067,331 in liabilities as of the Chapter 11 filing. In December 2011, Robert Millan, Esq., sought authority from the U.S. Bankruptcy Court to withdraw as counsel. Mr. Millan related that on Nov. 11, 2011, the Debtor informed that a new counsel was being sought. ENER1 INC: Alex Sorokin to Receive $75,000 Monthly Salary as CEO ---------------------------------------------------------------- On Jan. 25, 2012, Ener1, Inc., entered into an Employment Agreement with Alex Sorokin and Company, LLC, d/b/a Sorokin and Associates for the services of Alex Sorokin as Chief Executive Officer. Mr. Sorokin has served as Interim Chief Executive Officer of the Company since Nov. 4, 2011. The Employment Agreement will continue for a period to be mutually agreed upon by the Company and Mr. Sorokin, provided that if the Company files a case under Chapter 11, the minimum term of the Employment Agreement will equal the lesser of (i) 90 days after confirmation of the plan of reorganization of the Company in the Chapter 11 case or (ii) 150 days after the date of filing the Chapter 11 case. The Employment Agreement may be earlier terminated in the event of Mr. Sorokin's death, disability or termination by the Company for cause. In addition, either party may terminate the Employment Agreement at any time upon at least 30 days' prior written notice, provided that the Employment Agreement will automatically terminate on the 150th day after the date of filing the Chapter 11 case unless the parties have otherwise mutually agreed in writing. Under the Employment Agreement, Mr. Sorokin will be entitled to a monthly salary of $75,000. In addition, Mr. Sorokin will be entitled to a $700,000 bonus upon confirmation of the Plan and an additional $250,000 upon the successful completion of an organizational restructuring of the Company occurring within the earlier of (x) 90 days after the date of confirmation of the Plan or (y) 150 days after the date of filing the Chapter 11 case. In the event Mr. Sorokin is terminated by the Company for any reason other than for cause, Mr. Sorokin will be entitled to any base compensation accrued during the 30-day termination notice period, as well as any earned and unpaid bonuses. Mr. Sorokin and the Company will also execute and deliver mutual general releases of claims within three business days of the payment of such amounts. In connection with the Employment Agreement, Mr. Sorokin also agreed to several restrictive covenants including non- disparagement of the Company and confidentiality. About Ener1 Inc. Ener1, Inc. (OTC: HEVV) is an energy storage technology company that develops compact, lithium-ion-powered energy storage solutions for applications in the electric utility, transportation and industrial electronics markets. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 12-10299) on Jan. 26, 2012. Judge Martin Glenn presides over the case. Edward J. Estrada, Esq., and Michael J. Venditto, Esq.. at Reed Smith LLP, in New York, N.Y., represent the Debtor as counsel. Houlihan Lokey Capital serves as the Debtor's Financial Advisor. The Garden City Group, Inc., is the Debtor's Claims and Noticing Agent. In its petition, the Debtor listed estimated assets of $73,900,000 and estimated debts of $90,538,529 as of Jan. 25, 2012. The petition was signed by Alex Sorokin, interim chief executive officer. ENER1 INC: Wants to Hire Reed Smith as General Counsel ------------------------------------------------------ Ener1 Inc. seeks Bankruptcy Court authority to employ Reed Smith LLP as its general Chapter 11 counsel. Since August 2011, Reed Smith has represented Ener1 in connection with its restructuring and the negotiation and drafting of its prepackaged plan of reorganization and the documents necessary to implement the reorganization contemplated by the Plan. As of the petition date, Reed Smith has incurred roughly $1,700,523 in fees and expenses. The Debtor has paid that amount in full. Reed Smith will be paid for its services according to its hourly rates: Professionals Hourly Rates ------------- ------------ Partners Edward J. Estrada, Esq., $670 Michael J. Venditto, Esq. $715 Nicole H. Kolhoff, Esq. $595 Scott M. Esterbrook, Esq. $545 Associates Nina V. Ayer, Esq. $395 Sarah K. Kam, Esq. $520 Elizabeth McGovern, Esq. $460 Chrystal A. Puleo, Esq. $510 Paralegals William J. Jarboe $180 Anne Suffern $295 Reed Smith has agreed to cap its fees in the bankruptcy case at $225,000. Edward J. Estrada, Esq., a member at the firm, attests that Reed Smith does not hold or represent any interest adverse to the Debtor's estate and is a "disinterested person" as that phrase is defined in Section 101(14) of the Bankruptcy Code. About Ener1 Ener1 Inc. (OTC: HEVV) -- http://www.ener1.com/-- is a New York- based developer of compact, lithium-ion-powered energy storage solutions for applications in the electric utility, transportation and industrial electronics markets. It has three business lines: 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; and NanoEner develops technologies, materials and equipment for nano-manufacturing. Ener1, which received a $118 million U.S. Energy Department grant to make electric-car batteries, filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-10299) on Jan. 26, 2012, to implement a prepackaged plan of reorganization. The Plan has been unanimously accepted by all of Ener1's impaired creditors. Under its restructuring, the Debtor will reduce funded debt from $91 million to $46 million, under a plan where debt holders will receive newly issued debt and equity. The plan provides for a restructuring of the Company's long-term debt and the infusion of up to $81 million of equity funding. Of this amount, a new debtor-in-possession credit facility of up to $20 million will be available to support working capital needs during the restructuring. The balance, for a total of up to $81 million, will be available over the four years following Court approval of the restructuring plan and subject to the satisfaction of certain terms and conditions. The claims of Ener1's general unsecured creditors will be unimpaired and paid by the Company under the restructuring plan. All of the Company's existing common stock will be canceled, the long-term debt holders will be receiving a combination of cash, a new term loan and new common stock in exchange for their claims, and new preferred stock will be issued to the provider of the post-petition and exit funding. Suppliers to the Company will be paid under normal terms for goods and services provided after the Chapter 11 filing date. Payments for goods and services provided directly to the Company prior to the filing date have been previously settled or will be paid pursuant to the restructuring plan when it is approved by the Court. Of the $81 million, $50 million will be provided periodically by Bzinfin S.A. over a period of 24 months following the effective date of the plan. Bzinfin and other parties will invest their pro rata share of up to $31 million through the purchase of preferred stock from time to time through 2013 to 2015. Ener1 expects to complete the restructuring process in about 45 days. Ener1 disclosed assets of $73.9 million and debt of $90.5 million as of Dec. 31. It owes $57.3 million on 8.25% senior notes and $11.2 million under a line of credit provided by Bzinfin S.A. Judge Martin Glenn oversees the case. Reed Smith LLP is Ener1's legal adviser and its financial adviser is Houlihan Lokey Capital Inc. The Garden City Group serves as its claims and noticing agent. In its petition, Ener1 estimated $73,900,000 in assets and $90,538,529 in liabilities. The petition was signed by Alex Sorokin, interim chief executive officer. EPICEPT CORP: Receives Finalized FDA Guidance for AmiKet -------------------------------------------------------- EpiCept Corporation received further encouraging guidance for the Phase III clinical and nonclinical development and subsequent New Drug Application filing of AmiKet in the treatment of chemotherapy - induced peripheral neuropathy based on the issuance of the final minutes of the Company's meeting with the U.S. Food and Drug Administration (FDA) in December 2011. AmiKet is a prescription topical cream intended for the treatment of peripheral neuropathic pain. In the final meeting minutes recently received by EpiCept, the FDA acknowledged that painful symptoms due to CIPN represent a significant unmet medical need and encouraged EpiCept to apply for Fast Track designation. Further, the FDA waived several expensive and time consuming non-clinical toxicology studies, and indicated that a single four-arm factorial trial might suffice for regulatory approval if combined with other pivotal data in another neuropathy such as diabetic peripheral neuropathy. The key element of the proposed Phase III clinical program is a 12-week, four-arm, factorial designed trial in CIPN that would seek to demonstrate AmiKet's superiority compared with placebo and with each of the component drugs of AmiKet, amitriptyline and ketamine. EpiCept intends to submit the protocol for this trial to the FDA via a Special Protocol Assessment. An additional two- arm efficacy study in another painful peripheral neuropathy may be performed as an alternative strategy to a second factorial- designed trial for the NDA filing, which could potentially lead to a broader label in the treatment of peripheral neuropathic pain. In addition to the positive outcome previously reported for AmiKet in CIPN, EpiCept has reported statistically significant positive results in the treatment of pain from post-herpetic neuralgia in several Phase II studies, the non-inferiority of AmiKet compared with gabapentin in another placebo controlled study, and a positive trend in the treatment of pain in a diabetic neuropathy Phase II study. Jack Talley, EpiCept President and CEO, commented, "We are very pleased that the meeting minutes confirmed our belief that the FDA's requirements for the clinical and nonclinical programs to support an AmiKet NDA filing are achievable. We consider this a very positive outcome that will likely benefit AmiKet's market opportunity and time to NDA filing. Further, we believe this will facilitate SunTrust Robinson Humphrey's efforts to identify potential acquirers or strategic partners to advance AmiKet towards approval and commercialization in the United States. This program may also facilitate the filing of a marketing authorization application (MAA) for the European Union." The meeting minutes included a summary of the nonclinical program requirements to file an NDA, which notably included only a single dermal carcinogenicity study. The dermal photo- irritation/toxicity assessment may be waived, provided dermal photo-irritation is assessed in the clinical program. A COMET assay (Single Cell Gel Electrophoresis to detect DNA damage) study is required prior to initiation of the long-term open label clinical safety study. Earlier this month, EpiCept announced that it had engaged SunTrust Robinson Humphrey to assist in exploring strategic alternatives to maximize the commercial opportunity of AmiKet. The engagement will focus on the identification and implementation of a strategy designed to optimize AmiKet's value for the Company's shareholders. About EpiCept Corporation Tarrytown, N.Y.-based EpiCept Corporation (Nasdaq and Nasdaq OMX Stockholm Exchange: EPCT) -- http://www.epicept.com/-- is focused on the development and commercialization of pharmaceutical products for the treatment of cancer and pain. The Company's lead product is Ceplene(R), approved in the European Union for the remission maintenance and prevention of relapse in adult patients with Acute Myeloid Leukemia (AML) in first remission. In the United States, a pivotal trial is scheduled to commence in 2011. The Company has two other oncology drug candidates currently in clinical development that were discovered using in-house technology and have been shown to act as vascular disruption agents in a variety of solid tumors. The Company's pain portfolio includes EpiCept(TM) NP-1, a prescription topical analgesic cream in late-stage clinical development designed to provide effective long-term relief of pain associated with peripheral neuropathies. The Company's recurring losses from operations and the Company's stockholders' deficit raise substantial doubt about its ability to continue as a going concern and, as a result, the Company's independent registered public accounting firm, Deloitte & Touche LLP, in Parsippany, New Jersey, included an explanatory paragraph in its report on the Company's consolidated financial statements for the year ended Dec. 31, 2010, which was included in our Annual Report on Form 10-K, with respect to this uncertainty. The Company also reported a net loss of $12.20 million on $737,000 of total revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $12.56 million on $703,000 of total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $12.19 million in total assets, $26.44 million in total liabilities and a $14.25 million total stockholders' deficit. EPICEPT CORP: Engages SunTrust to Explore Potential Sale -------------------------------------------------------- EpiCept Corporation confirmed that its engagement of SunTrust Robinson Humphrey to assist in exploring strategic alternatives to maximize the commercial opportunity of AmiKet includes the evaluation of potential transactions involving the sale of the Company. AmiKet is the Company's prescription topical cream intended for the treatment of neuropathic pain. The engagement of SunTrust Robinson Humphrey will focus on the identification and implementation of a strategy designed to optimize AmiKet's value for the Company's shareholders. In an article dated Jan. 24, 2012, appearing in Nyhetsbyr†n Direkt (Stockholm, Sweden), Jack Talley, EpiCept's President and CEO, indicated that in addition to exploring strategic alternatives, the Company would consider a sale "at a reasonable price". EpiCept recently announced that it has received further encouraging guidance for the Phase III clinical and nonclinical development and subsequent New Drug Application (NDA) filing of AmiKet in the treatment of chemotherapy-induced peripheral neuropathy (CIPN) based on the issuance of the final minutes of the Company's meeting with the U.S. Food and Drug Administration (FDA) in December 2011. In an article dated Jan. 24, 2012, appearing in Nyhetsbyr†n Direkt (Stockholm, Sweden), Jack Talley, EpiCept's President and CEO, indicated that in addition to exploring strategic alternatives, the Company would consider a sale "at a reasonable price". EpiCept recently announced that it has received further encouraging guidance for the Phase III clinical and nonclinical development and subsequent New Drug Application (NDA) filing of AmiKet in the treatment of chemotherapy-induced peripheral neuropathy (CIPN) based on the issuance of the final minutes of the Company's meeting with the U.S. Food and Drug Administration (FDA) in December 2011. About EpiCept Corporation Tarrytown, N.Y.-based EpiCept Corporation (Nasdaq and Nasdaq OMX Stockholm Exchange: EPCT) -- http://www.epicept.com/-- is focused on the development and commercialization of pharmaceutical products for the treatment of cancer and pain. The Company's lead product is Ceplene(R), approved in the European Union for the remission maintenance and prevention of relapse in adult patients with Acute Myeloid Leukemia (AML) in first remission. In the United States, a pivotal trial is scheduled to commence in 2011. The Company has two other oncology drug candidates currently in clinical development that were discovered using in-house technology and have been shown to act as vascular disruption agents in a variety of solid tumors. The Company's pain portfolio includes EpiCept(TM) NP-1, a prescription topical analgesic cream in late-stage clinical development designed to provide effective long-term relief of pain associated with peripheral neuropathies. The Company's recurring losses from operations and the Company's stockholders' deficit raise substantial doubt about its ability to continue as a going concern and, as a result, the Company's independent registered public accounting firm, Deloitte & Touche LLP, in Parsippany, New Jersey, included an explanatory paragraph in its report on the Company's consolidated financial statements for the year ended Dec. 31, 2010, which was included in our Annual Report on Form 10-K, with respect to this uncertainty. The Company also reported a net loss of $12.20 million on $737,000 of total revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $12.56 million on $703,000 of total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $12.19 million in total assets, $26.44 million in total liabilities and a $14.25 million total stockholders' deficit. FAIR MARKET: Sec. 341 Meeting Set for Feb. 21 --------------------------------------------- J.K. Dineen, reporter at San Francisco Business, reports that Fair Market Properties filed for Chapter 11 bankruptcy protection on Jan. 18, 2012. The company owes about $4 million to East West Bank. According to the report, the loan originally came from United Commercial Bank, which banking regulators shut down and sold to East West Bank in November 2009. David Addington said East West Bank has been unresponsive to his efforts to renegotiate the terms of the loan. "It was easier to borrow money in 2004 than it is to pay it back today," Mr. Addington, who said he is hoping to hold on to the property, said. The report says other creditors holding (unsecured) claims include: Geo-Peg Investments ($600,000), Heller Manus Architects ($32,400), Duane Morris ($30,000), MHC Engineers ($25,700), and PG&E ($20,000). The report says the bankruptcy filing doesn't impact the Warfield Theater and adjacent office building at 988 Market St., which Addington owns through a separate limited partnership. That property is on the market with Marcus & Millichap. Mr. Addington bought the Warfield properties for $10.5 million in 2005. The First Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) is set for Feb. 21, 2012, at 9:00 a.m. at San Francisco U.S. Trustee Office. Proofs of claim are due in the case by May 21. Fair Market Properties filed for Chapter 11 protection on Jan. 18, 2012 (Bankr. N.D. Calif. Case No. 12-30155). It is represented by: Michael St. James, Esq. ST. JAMES LAW 155 Montgomery St. #1004 San Francisco, CA 94104 Tel: (415)391-7566 E-mail: ecf@stjames-law.com FENTON SUB: Disclosure Statement Hearing Set for Feb. 29 -------------------------------------------------------- Judge Robert J. Kressel of the U.S. Bankruptcy Court for the District of Minnesota set the hearing for Fenton Sub Parcel D, LLC, and Bowles Sub Parcel D, LLC's disclosure statement explaining the Debtors' joint plan of reorganization for Feb. 29, 2012, at 10:00 a.m. at Courtroom 8 West, 8th Floor, 300 S 4th St., Minneapolis. The Plan anticipates that all property of the estate will be vested in the Reorganized Debtors. The Debtors will continue to operate Pool D Properties -- six parcels of real property located in Anoka, Dakota, and Hennepin Counties, Minnesota; may market the Pool D Properties for sale either individually or in one or more groups; and may seek alternative financing. The secured claim of Wells Fargo Bank N.A. as Lender will be paid in full over time with the income generated by the operation of the Pool D Properties, by the proceeds of the sale(s) of one or more of the Pool D Properties, with the proceeds of new financing, or with a combination of these options. The Lender will retain its liens to secure such payments. Steven B. Hoyt's lien in the properties will be released. Unsecured creditors will receive up to 100% of their claims, without interest, from distributions from excess cash generated by postpetition operations and from the sale(s) or refinancing and operations after the Lender is paid in full. The actual amount to be paid depends on the results of operations and sales or refinancing. The most likely range of recovery from operations is estimated to be 0% to 21%; the ultimate sales prices are unknown, but could result in full payment to unsecured creditors. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/FENTON_SUB_ds.pdf About Fenton Sub Parcel D and Bowles Sub Parcel D Fenton Sub Parcel D LLC and Bowles Sub Parcel D LLC jointly own industrial multi-tenant properties located in the Twin Cities. They are controlled by StoneArch II/WCSE Minneapolis Industrial LLC. StoneArch is the 100% member of Bowles Subsidiary, LLC and of Fenton Subsidiary LLC. Bowles Subsidiary LLC is then the 100% member of Bowles Sub Parcel D LLC, and Fenton Subsidiary LLC is the 100% member of Fenton Sub Parcel D, LLC. In 2007, StoneArch acquired various LLCs, which in turn owned 27 industrial multi- tenant properties located in the Twin Cities. The properties were divided into four separate pools: A, B, C, and D. Fenton Sub Parcel D and Bowles Sub Parcel D jointly own the properties in pool D. As tenants in common, Fenton Sub Parcel D has an undivided 74.5394% interest and Bowles Sub Parcel D has an undivided 25.4606% interest. The Pool D Properties consist of six parcels of real property located in Anoka, Dakota, and Hennepin Counties, Minnesota. The Debtors expect the Pool D Properties to be worth $13,135,656 as of the Petition Date. Although they are two separate legal entities, Fenton Sub Parcel D and Bowles Sub Parcel D have consistently been treated as one enterprise. Hoyt Properties, Inc., acts as agent in managing the Pool D Properties. Fenton Sub Parcel D and Bowles Sub Parcel D filed for Chapter 11 bankruptcy (Bankr. D. Minn. Case Nos. 11-44430 and 11-44434) on June 29, 2011. The Debtors' petitions were signed by Steven Bruce Hoyt, chief manager, who is also a debtor (Bankr. D. Minn. Case No. 11-43816). He is separately represented by Michael C. Meyer, Esq., at Ravich Meyer Kirkman McGrath & Nauman, P.A. The cases were originally assigned to Judge Dennis D. O'Brien and reassigned to Judge Robert J. Kressel as the cases are related to the Hoyt case, which was filed earlier before Judge Kressel. Cynthia A. Moyer, Esq., James L. Baillie, Esq., and Sarah M. Gibbs, Esq., at Fredrikson & Byron, PA, represent the Debtors. FENTON SUB: Court Approves Use of Cash Collateral on Final Basis ---------------------------------------------------------------- Judge Robert J. Kressel of the U.S. Bankruptcy Court for the District of Minnesota are authorized Fenton Sub Parcel D, LLC, and Bowles Sub Parcel D, LLC, to use cash collateral, including rents, that may be subject to the lien of Wells Fargo Bank, N.A., as trustee for the registered holders of J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2004-LN2 for the items and in amounts consistent with a budget, through March 31, 2012. Wells Fargo had earlier objected to the Debtors' request saying that its interest in the cash collateral is not adequately protected. The Lender asserted that the Debtors should be required to provide the Lender with typical non-monetary forms of adequate protection. The Court ruled that the Debtors will maintain insurance on the parcels of real estate they own and will reserve on a monthly basis amounts for payments of those insurance premiums in the amounts set forth on the budget. The Debtors will pay all real estate taxes on the properties as they become due and will reserve on a monthly basis amounts for payments of those real estate taxes in the amounts set forth on the budget. The Debtors will continue to maintain the properties to their current standards. The Debtors will make financial records, including profit and loss statements, monthly balance sheets, accounts receivable and payable reports, cash flow reports, rent rolls, and other matters, available to the lender, or any servicer or special servicer appointed by the lender, on reasonable request; and will provide a monthly reconciliation to the lender by the 25th of each month for the preceding month comparing the debtors' actual revenue and expenditures against the budgeted revenue and expenditures as detailed in the budget. As reported in the Troubled Company Reporter on Dec. 14, 2011, before their bankruptcy filing, the Debtors incurred financing for the Pool D Properties -- six parcels of real property located in Anoka, Dakota, and Hennepin Counties, Minnesota -- from Nomura Credit and Capital, Inc., in the amount of $11,604,000. Pursuant to an Amended and Restated Promissory Note dated April 12, 2007, the Debtors assumed the First Mortgage Debt. The principal on the First Mortgage Debt has been paid down by over $1 million to date. On Aug. 20, 2004, Nomura endorsed the promissory note and assigned the Mortgage and the Assignment of Leases to the lender. The lender asserted that, as of the petition date, the total amount owed by Debtors to the lender was $10,341,107, including interest, fees, and costs. The lender stated that, as of Oct. 31, 2011, the total amount owed to lender was $10,899,994, while the Court's determined value of the lender's collateral is only $10,668,000. As adequate protection for any diminution in value of the lender's collateral, the Debtors will grant the lender a replacement lien on postpetition rents. The Debtors relate that their use of the cash collateral to maintain the value of the Pool D Properties is sufficient to meet the adequate protection requirements of the Bankruptcy Code. About Fenton Sub Parcel D and Bowles Sub Parcel D Fenton Sub Parcel D LLC and Bowles Sub Parcel D LLC jointly own industrial multi-tenant properties located in the Twin Cities. They are controlled by StoneArch II/WCSE Minneapolis Industrial LLC. StoneArch is the 100% member of Bowles Subsidiary, LLC and of Fenton Subsidiary LLC. Bowles Subsidiary LLC is then the 100% member of Bowles Sub Parcel D LLC, and Fenton Subsidiary LLC is the 100% member of Fenton Sub Parcel D, LLC. In 2007, StoneArch acquired various LLCs, which in turn owned 27 industrial multi-tenant properties located in the Twin Cities. The properties were divided into four separate pools: A, B, C, and D. Fenton Sub Parcel D and Bowles Sub Parcel D jointly own the properties in pool D. As tenants in common, Fenton Sub Parcel D has an undivided 74.5394% interest and Bowles Sub Parcel D has an undivided 25.4606% interest. The Pool D Properties consist of six parcels of real property located in Anoka, Dakota, and Hennepin Counties, Minnesota. The Debtors expect the Pool D Properties to be worth $13,135,656 as of the Petition Date. Although they are two separate legal entities, Fenton Sub Parcel D and Bowles Sub Parcel D have consistently been treated as one enterprise. Hoyt Properties, Inc., acts as agent in managing the Pool D Properties. Fenton Sub Parcel D and Bowles Sub Parcel D filed for Chapter 11 bankruptcy (Bankr. D. Minn. Case Nos. 11-44430 and 11-44434) on June 29, 2011. The Debtors' petitions were signed by Steven Bruce Hoyt, chief manager, who is also a debtor (Bankr. D. Minn. Case No. 11-43816). He is separately represented by Michael C. Meyer, Esq., at Ravich Meyer Kirkman McGrath & Nauman, P.A. The cases were originally assigned to Judge Dennis D. O'Brien and reassigned to Judge Robert J. Kressel as the cases are related to the Hoyt case, which was filed earlier before Judge Kressel. Cynthia A. Moyer, Esq., James L. Baillie, Esq., and Sarah M. Gibbs, Esq., at Fredrikson & Byron, PA, represent the Debtors. FILENE'S BASEMENT: Judge Denies Request to Disband Committee ------------------------------------------------------------ Dow Jones' DBR Small Cap reports that the judge in Syms Corp.'s bankruptcy case denied a request by the committee of unsecured creditors to disband the committee of equity security holders and set another hearing to decide whether to put a cap on the spending of both committees. About Filene's and Syms Massachusetts-based Filene's Basement, also called The Basement, is the oldest off-price retailer in the United States. The Basement focuses on high-end goods and is known for its distinctive, low-technology automatic markdown system. Filene's Basement first filed for Chapter 11 bankruptcy protection in August 1999. Filene's Basement was bought by a predecessor of Retail Ventures, Inc., the following year. Retail Ventures in April 2009 transferred the unit to Buxbaum. Filene's Basement, Inc. and its affiliates filed for Chapter 22 (Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy Solutions serves as claims and notice agent. The Debtors estimated $50 million to $100 million in assets and $100 million to $500 million in debts. The 2009 Debtor was formally renamed FB Liquidating Estate, following the sale of all of its assets to Syms Corp. in June 2009. Pursuant to the Liquidating Plan confirmed in January 2010, secured creditors in the Chapter 11 case have been paid in full, and holders of priority, administrative and convenience class claims have received 100% of their allowed claims. As reported by the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen, Chairman of Abacus Advisors LLC and Chief Restructuring Officer for FB Liquidating Estate disclosed that a second distribution of dividend checks to Filene's unsecured creditors amounting to 12.5% of approved claims has been made, bringing the cumulative distributions on unsecured claims to 62.5%. On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 11-13511 to 11-13514) after a failed bid to sell the business. The two units are Syms Clothing Inc. and Syms Advertising Inc. Judge Kevin J. Carey presides over the case. Lawyers at Skadden Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The Debtors tapped Rothschild Inc. as investment banker and Cushman and Wakefield Securities, Inc., as real estate financial advisors. Syms shuttered its namesake and Filene's Basement outlets upon the bankruptcy filing and tapped a joint venture of Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC to run the going-out-of-business sales. The sale may continue until Jan. 31, 2012. Filene's Basement estimated $1 million to $10 million in assets and $50 million to $100 million in debts. The petitions were signed by Gary Binkoski, authorized representative of Filene's Basement. The official committee of unsecured creditors appointed in the 2011 case has retained Hahn & Hessen LLP as legal counsel. Holders of equity in Syms Corp. pushed for an official shareholders' committee and separation of the Syms and Filene's Basement bankruptcy estates. Gordon Brothers and Hilco are represented by Goulston & St FIRST GUARANTY: Closed; CenterState Bank Assumes All Deposits ------------------------------------------------------------- First Guaranty Bank and Trust Company of Jacksonville in Jacksonville, Fla., was closed on Jan. 27, 2012, by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CenterState Bank of Florida, National Association, of Winter Haven, Fla., to assume all of the deposits of First Guaranty Bank and Trust Company of Jacksonville. The eight branches of First Guaranty Bank and Trust Company of Jacksonville will reopen during normal business hours as branches of CenterState Bank of Florida, National Association. Depositors of First Guaranty Bank and Trust Company of Jacksonville will automatically become depositors of CenterState Bank of Florida, National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of First Guaranty Bank and Trust Company of Jacksonville should continue to use their existing branch until they receive notice from CenterState Bank of Florida, National Association, that it has completed systems changes to allow other CenterState Bank of Florida, National Association, branches to process their accounts as well. As of Sept. 30, 2011, First Guaranty Bank and Trust Company of Jacksonville had around $377.9 million in total assets and $349.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, CenterState Bank of Florida, National Association, agreed to purchase essentially all of the assets. The FDIC and CenterState Bank of Florida, National Association, entered into a loss-share transaction on $292.9 million of First Guaranty Bank and Trust Company of Jacksonville's assets. CenterState Bank of Florida, National Association, will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers with questions about the transaction should call the FDIC toll-free at 1-800-508-8289. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/fgbtcj.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $82.0 million. Compared to other alternatives, CenterState Bank of Florida, National Association's acquisition was the least costly resolution for the FDIC's DIF. First Guaranty Bank and Trust Company of Jacksonville is the fourth FDIC-insured institution to fail in the nation this year, and the second in Florida. The last FDIC-insured institution closed in the state was Central Florida State Bank of Belleview, Fla., on Jan. 20, 2012. FIRST FOLIAGE: Court Converts Case to Chapter 7 ----------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida has converted First Foliage L.C.'s bankruptcy case to Chapter 7, at the Debtor's request. The Debtor will provide notice to affected parties of the deadline set pursuant to the Bankruptcy Court's Local Rule 1019-1(F)(1) for filing by a nongovernmental unit a request for payment of an administrative expense. As reported in the Troubled Company Reporter on Dec. 12, 2011, the Debtor said that upon the consummation of the sale of substantially all of its assets, all employees were terminated and the Debtor is in the final stages of winding down its business affairs as a debtor-in-possession. About First Foliage, L.C. Homestead, Florida-based First Foliage, L.C., once operated a business that supplied tropical plants to retailers. The Company filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-27532) on June 23, 2010. Luis Salazar, Esq., at Infante, Zumpano, Hudson & Miloch, LLC, represented the Debtor. Berger Singerman, P.A., served as counsel to the Official Committee of Unsecured Creditors. The Company estimated $50 million to $100 million in assets and $10 million to $50 million in liabilities in its Chapter 11 petition. First Foliage LC has sold its assets to Costa Farms LLC for roughly $22 million. FIRSTPLUS FINANCIAL: Judge Puts Bankruptcy Case on Hold ------------------------------------------------------- Lynda Cohen at pressofAtlanticCity reports that the bankruptcy case of FirstPlus Financial Group involving Nicodemo S. Scarfo, a reputed mobster from Galloway Township, will be put on hold pending a criminal trial involving Mr. Scarfo and others in New Jersey. According to the report, Mr. Scarfo and a dozen others are awaiting trial on charges that they took over FirstPlus Financial and stole at least $12 million. The report says the company's Chapter 11 trustee filed suit in a bankruptcy court in Texas against Mr. Scarfo and several others demanding restitution and other payment from groups he says breached their fiduciary duties and conspired in "siphoning off" the company's assets and then hid their financial misdeeds with "misleading public filings." Those named in the suit include seven of Mr. Scarfo's co-defendants in the criminal case. The report relates that on Nov. 30, 2011, U.S. Attorney Paul Fishman and the two prosecutors in the New Jersey case filed a motion to intervene in the Texas case, staying those proceedings to allow for the criminal trial to go first. On Jan. 12, 2012, a Texas judge agreed, ordering that the bankruptcy case be halted -- except for pending motions to dismiss -- "until the completion of the federal criminal trial in the District of New Jersey." The report says 11 of the 13 defendants in the case are free pending trial. But Mr. Scarfo and close friend Salvatore Pelullo of Philadelphia, have been denied release. Mr. Scarfo appealed the ruling keeping him jailed, but it was upheld in a finding that called him a danger to society. About FirstPlus Financial Based in Beaumont, Texas, FirstPlus Financial Group, Inc. (Pink Sheets: FPFX) -- http://www.firstplusgroup.com/-- is a diversified company that provides commercial loan, consumer lending, residential and commercial restoration, facility (janitorial and maintenance) services, insurance adjusting services, construction management services and a facilities and restoration franchise business. The Company has three direct subsidiaries, Rutgers Investment Group, Inc., FirstPlus Development Company and FirstPlus Enterprises, Inc. In turn, FirstPlus Enterprises, Inc., has three of its own direct subsidiaries, FirstPlus Restoration Co., LLC, FirstPlus Facility Services Co., LLC and The Premier Group, LLC. FirstPlus Restoration and FirstPlus Facility jointly own FirstPlus Restoration & Facility Services Company. Additionally, FirstPlus Development has one direct subsidiary FirstPlus Acquisitions-1, Inc. A subsidiary of FirstPlus Financial Group -- FirstPlus Financial Inc. -- filed for Chapter 11 bankruptcy in March 1999 before the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, amid turmoil in the asset-backed securitization markets and the lack of a reliable, committed secondary take-out source for high LTV loans. A modified third amended plan of reorganization was confirmed in that case in April 2000. The Company filed for Chapter 11 protection on June 23, 2009 (Bankr. N.D. Tex. Case No. 09-33918). Aaron Michael Kaufman, Esq., and George H. Tarpley, Esq., at Cox Smith Matthews Incorporated, serve as counsel. The Debtor has total assets of $15,503,125 and total debts of $4,539,063 as of June 30, 2008. FirstPLUS Financial Group disclosed $1,264,637 in assets and $10,347,448 in liabilities as of the Chapter 11 filing. Matthew D. Orwig was appointed as the Chapter 11 trustee in the Debtor's cases. He is represented by Peter A. Franklin, Esq., and Erin K. Lovall, Esq., at Franklin Skierski Lovall Hayward LLP. Franklin Skierski was elevated to lead counsel from local counsel in the stead of Jo Christine Reed and SNR Denton US LLP, due to the maternity leave of Ms. Reed. Kurtzman Carson Consultants serve as notice and balloting agent. FRANNCY HOLDINGS: Agrees to Dismiss Chapter 11 Case --------------------------------------------------- Jeff Engle at Marshfield News-Herald reports that Franncy Holdings, the owners of Clearwaters Hotel and Convention Center, agreed to dismiss its Chapter 11 bankruptcy protection on Jan. 25, 2012, leaving the future of the Marshfield hotel unclear. According to the report, a U.S. bankruptcy judge approved the dismissal of the Company's bankruptcy case, which lawyers for both the bank and the hotel had signed off on. "(Franncy Holdings) agreed that it was highly unlikely that it was going to be able to reorganize itself operating under Chapter 11 (bankruptcy)," the report quotes Borrego Springs Bank's lawyer, Chris Stewart, as saying. "I think they just recognized that they were running out of cash." Mr. Stewart said the bank likely will resume its efforts to foreclose on the hotel property, which it sought in April because Franncy owners were allegedly delinquent on their mortgage payments. Clearwaters opened in 1968 and has 103 hotel rooms, along with the Atlantis Lounge, Clearwaters Restaurant and conference space. Franncy purchased the business in 2009 from Guardian Hospitality, which had owned it since 2002. FRONTIER COMMUNICATIONS: S&P Affirms 'BB' Corp. Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Stamford, Conn.-based incumbent local exchange carrier (ILEC) Frontier Communications Corp. to negative from stable. "At the same time, we affirmed the 'BB' corporate credit rating and all issue-level ratings on its debt," S&P said. "The outlook revision is based on the company's declining revenue and cash flow and our expectation that it will be challenged to meaningfully improve operating trends in the near term," said Standard & Poor's credit analyst Allyn Arden, "especially given intense competitive pressures from wireless substitution and cable companies offering telephone and data services." "While the acquisition of about 4 million access lines from Verizon in July 2010 improved the company's scale and market diversity, reducing access-line losses and adding new data subscribers in these markets has been difficult because of the long transition period and system switchovers." "The outlook is negative and reflects the declining trend in revenue and EBITDA from access-line erosion, particularly in the legacy Verizon markets, because of cable telephony competition and wireless substitution. Moreover, we believe that the company's sizable dividend limits prospects for debt reduction, given our expectations for declining FOCF," S&P said. "We could lower the ratings if operating performance does not show meaningful improvement over the next year, as this would limit prospects for reducing leverage below 3x. To achieve this leverage threshold, we believe the company would need to grow EBITDA by about 10% from our projected 2011 EBITDA of around $2.45 billion," S&P said. "Although unlikely in the near term given Frontier's aggressive financial policy, we could revise the outlook to stable if the company can improve operating trends, showing a trajectory toward leverage of 3x or lower, by increasing DSL penetration and stemming the rate of access-line declines in the legacy Verizon markets," S&P said. GATEHOUSE MEDIA: Bank Debt Trades at 74% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which GateHouse Media, Inc., is a borrower traded in the secondary market at 25.60 cents- on-the-dollar during the week ended Friday, Jan. 27, 2012, an increase of 2.08 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 27, 2014, and carries Moody's Ca rating and Standard & Poor's CCC- rating. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About GateHouse Media GateHouse Media, Inc. -- http://www.gatehousemedia.com/-- headquartered in Fairport, New York, is one of the largest publishers of locally based print and online media in the United States as measured by its 97 daily publications. GateHouse Media currently serves local audiences of more than 10 million per week across 21 states through hundreds of community publications and local Web sites. The Company reported a net loss of $28.42 million on $381.35 million of total revenues for the nine months ended Sept. 25, 2011, compared with a net loss of $27.74 million on $415.22 million of total revenues for the nine months ended Sept. 30, 2010. The Company reported a net loss of $26.64 million on $558.58 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $530.61 million on $584.79 million of total revenue for the year ended Dec. 31, 2009. The Company's balance sheet at Sept. 25, 2011, showed $511.80 million in total assets, $1.32 billion in total liabilities and a $811.28 million total stockholders' deficit. GENESYS GROUP: Moody's Revises Sr. Secured Debt Rating to 'B1' -------------------------------------------------------------- Moody's Investors Service has lowered the senior secured debt of the Genesys group -- to B1 from Ba3. The B1 rating reflects the revision to Genesys' starting capital structure from what had been anticipated in Moody's January 6, 2012 press release, in which secured debt will now comprise a greater portion of the debt, with a corresponding reduction in the amount of unsecured debt. The debt will be issued by three co-borrowers, including Greeneden U.S. Holdings II, LLC. The B2 corporate family rating and probability of default rating are unchanged. RATINGS RATIONALE The B1 senior secured debt rating reflects the planned capital structure. The new structure will now have a $575 million senior secured term loan and only $200 million of senior unsecured notes (compared to $550 million senior secured term loan and $225 million of senior unsecured notes previously). The $50 million senior secured revolver (undrawn at closing) is unchanged. The changed structure results in an increase in secured claims, combined with a corresponding reduction in the cushion of unsecured debt, resulting in a higher expected loss on the senior secured debt as reflected by the B1 rating. These ratings were changed: Senior Secured Revolving Credit Facility due 2017 -- B1 (LGD3 -- 34%) from Ba3 (LGD3 -- 32%) Senior Secured Term Loan due 2019 -- B1 (LGD3 -- 34%) from Ba3 (LGD3 -- 32%) The following ratings were affirmed: Corporate Family Rating -- B2 Probability of Default Rating -- B2 Rating Outlook -- stable. The principal methodology used in rating Genesys was the Global Software Industry Methodology published in May 2009. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. GENTIVA HEALTH: S&P Keeps 'B-' Corporate Rating on Watch Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services said its 'B-' rating on Atlanta, Ga.-based home health provider Gentiva Health Service Inc. remains on CreditWatch, where it was initially placed with negative implications Nov. 3, 2011. "The recent partial amendment to Gentiva's senior secured credit agreement prevented a possible covenant breach in the December 2011 quarter by eliminating a scheduled step-down of the consolidated leverage ratio covenant and allowing for adjustments for one-time restructuring charges. Still, the amendment does not address the step-down to 4.5x scheduled for the March 2012 quarter-end," S&P said. "While the company provided earnings guidance for 2012, operating trends remain negative and under pressure. We believe that the company remains exposed to a technical default in the near term," S&P said. "We plan to resolve the CreditWatch listing after assessing the impact of 2012 Medicare rate cuts and restructuring initiatives on Gentiva's leverage and cash flow. Additionally, we will monitor the company's efforts to secure a final amendment to its credit agreement. We could lower the rating if the scheduled covenant step-down is not addressed by mid-March 2012" S&P said. GRAND RIVER: Court Approves Winegard Haley as Special Counsel ------------------------------------------------------------- Grand River Infrastructure, Inc., sought and obtained permission from the U.S. Bankruptcy Court for the Eastern District of Michigan to employ Winegarden, Haley, Lindholm & Robertson, PLC, as non-bankruptcy counsel for the purpose of continuing its representation of the Debtor in the various litigation and related non-litigation matters, as well as similar litigation collection matters that may arise during the pendency of the bankruptcy proceeding. Prior to the Petition Date, Winegarden was actively representing the Debtor in at least 11 different litigation matters, all at varying stages. Alan F. Himelhoch, Esq., a partner of Winegarden, will be primarily responsible for representation of the Debtor. The Debtor will pay Mr. Himelhoch $180 per hour plus reimbursement of expenses. Mr. Himelhoch attests that his firm does not represent and hold any interest which is adverse to the Debtor or its estate with respect to the matters for which it is to be employed. 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. GRUBB & ELLIS: Zazove Discloses 7.1% Equity Stake ------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Zazove Associates, LLC, and its affiliates disclosed that, as of Dec. 31, 2011, they beneficially own 5,391,554 shares of common stock of Grubb & Ellis Company representing 7.14% of the shares outstanding. As previously reported by the TCR on May 6, 2011, Zazove disclosed beneficial ownership of 3,943,410 common shares. A full-text copy of the amended filing is available for free at http://is.gd/bGp4MQ About Grubb & Ellis Company Grubb & Ellis Company -- http://www.grubb-ellis.com/-- is one of the largest and most respected commercial real estate services and investment companies in the world. Our 5,200 professionals in more than 100 company-owned and affiliate offices draw from a unique platform of real estate services, practice groups and investment products to deliver comprehensive, integrated solutions to real estate owners, tenants and investors. The firm's transaction, management, consulting and investment services are supported by highly regarded proprietary market research and extensive local expertise. Through its investment management business, the company is a leading sponsor of real estate investment programs. The Company reported a net loss of $69.7 million on $575.5 million of revenues for 2010, compared with a net loss of $80.5 million on $527.9 million of revenues for 2009. The Company also reported a net loss of $28.61 million on $378.90 million of total revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $58.56 million on $372.38 million of total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $149.77 million in total assets, $152.74 million in total liabilities, $98.89 million in preferred stock, and a $101.85 million total deficit. The Company said it may seek additional financing prior to the completion of its review of strategic alternatives. It is anticipated that any strategic alternative would include provisions to extend, retire or refinance the Colony credit facility at or prior to maturity. If the Company is unable to extend, retire or refinance the Colony credit facility prior to maturity, it could create substantial doubt about the Company's ability to continue as a going concern for the twelve month period following the date of these financial statements. The Company believes that upon completion of its strategic alternative process the Company will have sufficient liquidity to operate in the normal course over the next twelve month period. GSW HOLDINGS: Hires Special Counsel for BP Oil Spill Matters ------------------------------------------------------------ GSW Holdings LLC obtained permission from the Bankruptcy Court to employ these law firms as special counsel: * Douglas D. Lyons, P.A., * Lyons & Farrar, P.A., * Howard & Associates Attorneys at Law, P.A., * Sheller P.C., and * Law Office of Samuel T. Adams On April 20, 2010, a massive oil spill occurred in the Gulf of Mexico. On Feb. 21, 2011, the Lyons Law Firm filed a claim against the Gulf Coast Claims Facility, the administrator of the $20 billion British Petroleum settlement fund on behalf of the Debtor for damages the Debtor sustained as a result of the BP Oil Spill. The Debtor asserted a claim against British Petroleum in the amount of $175,467,755. The administrator for the fund established to compensate claimants for damages as a result of the BP Oil Spill denied the BP Claim. The Debtor intends for the BP Law Firms, post-petition, to provide services necessary to represent the Debtor and pursue the Debtor's claims against British Petroleum, Transocean, Hallburton, Anadanke, Hyundia, Cameron, et al. The BP Law Firms intend to (a) charge a contingency fee for legal services based on a percentage of recovery, and (b) seek reimbursement of actual and necessary expenses and other charges. As compensation for their services in obtaining any interim or advance payments from BP or the Gulf Coast Claims Facility administered by Ken Feinberg, the Debtor agreed to a payment of 20% of the gross amount up to $500,000, and 20% of the gross amount in excess of $500,000 of any such interim or advance payment, plus costs as set forth in Authority to Represent. In addition to any fees for obtaining any interim or advance payments from BP or The Fund, as compensation for services the BP Law Firms will be entitled to receive 20% of the gross amount up to $500,000 and 20% of the gross amount in excess of $500,000 of any future, final or lump sum settlement payments from BP or The Fund, plus costs as set forth in the Authority to Represent. The Debtor will reimburse the BP Law Firms for actual and necessary expenses. About GSW Holdings LLC Gulfport, Mississippi-based GSW Holdings LLC filed for Chapter 11 bankruptcy (Bankr. S.D. Miss. Case No. 11-52338) on Oct. 11, 2011. Judge Katharine M. Samson presides over the case. Wheeler & Wheeler serves as its local bankruptcy counsel. The Debtor disclosed $22,225,500 in assets and $8,851,228 in liabilities. The Debtor is represented by Douglas Scott Draper, Esq., at Heller Draper Patrick & Horn, L.L.C., in New Orleans, LA. HAWKER BEECHCRAFT: Bank Debt Trades at 23% Off ---------------------------------------------- Participations in a syndicated loan under which Hawker Beechcraft is a borrower traded in the secondary market at 77.05 cents-on- the-dollar during the week ended Friday, Jan. 27, 2012, an increase of 1.18 percentage points from the previous week, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on March 26, 2014, and carries Moody's Caa2 rating and Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Hawker Beechcraft Hawker Beechcraft Acquisition Company, LLC, headquartered in Wichita, Kansas, manufactures business jets, turboprops and piston aircraft for corporations, governments and individuals worldwide. The Company's balance sheet at Sept. 30, 2011, showed $3.10 billion in total assets, $3.49 billion in total liabilities and a $383.20 million total deficit. * * * As reported by the Troubled Company Reporter on Sept. 16, 2011, Moody's Investors Service has lowered all the credit ratings, including the corporate family rating to Caa3 from Caa2, of Hawker Beechcraft Acquisition Company LLC. The rating outlook is negative. The downgrades reflect Hawker Beechcraft's mounting retained deficit and Moody's view that the soft economy dims chances for profitability anytime soon. Although limited near-term debt maturities exist, with the prospect of further losses Moody's views the capital structure to be unsustainable. Pronounced risk that some form of restructuring of the company's debt obligations may occur underscores the negative rating outlook. Softness in most developed economies should constrain demand for the smaller and mid-sized cabin aircraft that comprise the company's Business and General Aviation product portfolio. While management has aggressively lowered overhead and cut production costs, the revenue outlook seems weak. As of June 30, 2011, the debt to book capital ratio was 114% and the trailing 12-month EBITDA to interest ratio was 0.2x (Moody's adjusted basis). In the Dec. 5, 2011 edition of the TCR, Standard & Poor's Ratings Services lowered its ratings on Hawker Beechcraft, including the corporate credit rating to 'CCC' from 'CCC+'. "The downgrade reflects Hawker's continued poor credit protection measures and tighter liquidity resulting from declining revenues, significant (albeit improving) losses, and weak cash generation," said Standard & Poor's credit analyst Christopher DeNicolo. "We have concerns about the company's ability to maintain covenant compliance." HEIDTMAN MINING: Asks Court to Dismiss Chapter 11 Case ------------------------------------------------------ Heidtman Mining, LLC, asks the Bankruptcy Court to dismiss its Chapter 11 case as the assets in the case have been -- or are in the process of being -- fully distributed per prior court orders and nothing remains for the estate to administer. The Debtor sold substantially all of its assets -- its Arkansas coal mine -- and has distributed the bulk of the sale proceeds to creditors. The bulk of distributions to creditors were to secured creditors holding secured claims against the coal mine assets, to repay debtor-in-possession funding, to pay for the costs, including cure costs, of assuming various contracts related to the mining assets, to priority employee claims, and for administrative costs. With the final distributions, no assets will remain undistributed and the case can be dismissed. Since the coal mine sale, the Debtor has not operated as a business and there exists nothing to reorganize at this juncture. About Heidtman Mining Toledo, Ohio-based Heidtman Mining, LLC, filed for Chapter 11 bankruptcy (Bankr. W.D. Ark. Case No. 09-72912) on June 12, 2009. George H. Tarpley, Esq., Marcus Jermaine Watson, Esq., at Cox Smith Matthews Incorporated; and Mark W. Hodge, Esq., at Chisenhall, Nesturd & Julian, represent the Debtor in its restructuring efforts. The Debtor estimated $10 million to $50 million in assets and $50 million to $100 million in debts in its bankruptcy petition. HENRY COUNTY: First State Bank Closed by Regulators --------------------------------------------------- The First State Bank, a wholly-owned banking subsidiary of Henry County Bancshares, Inc., was placed into receivership by the Georgia Department of Banking and Finance. The Federal Deposit Insurance Corporation was named as Receiver, and it has transferred the deposits and substantially all of the assets of the Bank in an FDIC assisted transaction. "Though The First State Bank has historically been one of Georgia's soundest banks, we were unable to overcome the weak economy and other factors that affected our market and our industry. While the Bank remained liquid and was profitable in its core operations, its capital was depleted to the point that it was below the regulatory minimum capital allowed for a bank to continue operating, and today's action is the unfortunate result," said David H. Gill, President and CEO. The Bank was the only remaining community bank headquartered in Henry County and becomes the 10th bank with offices in the county to be placed into receivership. A full-text copy of the Company's letter to shareholders is available for free at http://is.gd/7DHSdZ About Henry County Stockbridge, Georgia-based Henry County Bancshares, Inc., is a Georgia business corporation which operates as a bank holding company. The Company was incorporated on June 22, 1982, for the purpose of reorganizing The First State Bank to operate within a holding company structure. The Bank is a wholly owned subsidiary of the Company. The Company's principal activities consist of owning and supervising the Bank, which engages in a full service commercial and consumer banking business, as well as a variety of deposit services provided to its customers. Until Dec. 15, 2009, when it suspended operations, the Company also conducted mortgage-lending operations through the Bank's wholly owned subsidiary, First Metro Mortgage Company. First Metro provided the Bank's customers with a wide range of mortgage banking services and products in the same primary market area as the Bank. As reported by the TCR on April 6, 2011, Mauldin & Jenkins, LLC, in Atlanta, Ga., expressed substantial doubt about Henry County Bancshares' ability to continue as a going concern. The independent auditors noted that the Company as suffered significant losses from operations due to the economic downturn, which has resulted in declining levels of capital. The Company reported a net loss of $6.7 million on $10.0 million of net interest income for 2010, compared with a net loss of $36.6 million on $6.6 million of net interest income for 2009. Other operating income was $3.9 million for 2010, compared with $2.6 million for 2009. The Company's balance sheet at March 31, 2011, showed $574.87 million in total assets, $560.11 million in total liabilities, and $14.76 million in total stockholders' equity. HORIZON LINES: Resolves Record-Keeping Incident with DOJ -------------------------------------------------------- Horizon Lines, Inc., announced that its Horizon Lines, LLC, operating subsidiary has entered into an agreement with the U.S. Department of Justice, under which the ocean cargo carrier will plead guilty to two counts of providing federal authorities with false vessel oil record-keeping entries on a containership in the U.S. West Coast-Hawaii service. Under the agreement, which is subject to court approval, the company will pay a fine of $1.0 million and donate an additional $500,000 to the National Fish & Wildlife Foundation for environmental community service programs. The company also has agreed to be placed on probation for three years and institute an environmental compliance plan. The charges stem from the improper use of an oily water separator and related inappropriate record keeping on the Horizon Enterprise, an American-flag containership that sails between Tacoma, Oakland and Honolulu. Oily water separators are used to remove oil from bilge or wastewater, so that the water can then be legally discharged into the ocean. The Company responded promptly and proactively to the discovery of these violations. As part of the Company's environmental review, Horizon Lines conducted a fleet-wide audit and has cooperated fully with the Department of Justice, the U.S. Coast Guard and other authorities involved. It also immediately implemented a compliance and training program, which is being performed by an outside contractor. The program augments the Company's existing environmental policies for mitigating operational impacts while at sea. Additionally, the company has established the position of Environmental Compliance Director to lead Horizon's overall environmental compliance programs. The position reports directly to the Company's Chief Compliance Officer and the Board of Directors. "Horizon Lines has always endeavored to operate as a responsible environmental steward," said Stephen Fraser, President and Chief Executive Officer. "We do not in any way minimize the unauthorized actions by a few individuals that run contrary to the care and training normally demonstrated by our vessel crews throughout the company. We are making every effort to see that this does not happen again, as we continue to provide service to our customers as an environmentally responsible American corporation." About Horizon Lines Charlotte, N.C.-based Horizon Lines, Inc. (NYSE: HRZ) is the nation's leading domestic ocean shipping and integrated logistics company. The Company owns or leases a fleet of 20 U.S.-flag containerships and operates five port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. The Company provides express trans-Pacific service between the U.S. West Coast and the ports of Ningbo and Shanghai in China, manages a domestic and overseas service partner network and provides integrated, reliable and cost competitive logistics solutions. The Company's balance sheet at Sept. 25, 2011, showed $677.4 million in total assets, $801.7 million in total liabilities, and a stockholders' deficit of $124.3 million. Ernst & Young LLP, in Charlotte, North Carolina, expressed substantial doubt Horizon Lines' ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 26, 2010. The independent auditors noted that there is uncertainty that Horizon Lines will remain in compliance with certain debt covenants throughout 2011 and will be able to cure the acceleration clause contained in the convertible notes. "The Company believes the Oct. 5, 2011 refinancing transactions more fully described in Note 18 to these financial statements have resolved the concern as to compliance with debt covenants throughout the remainder of 2011," the Company said in the filing. "In addition, the Company believes it will be in compliance with its debt covenants through 2012." Refinancing The Company was not in compliance with the maximum senior secured leverage ratio and the minimum interest coverage ratio under its Senior Credit Facility at the close of its third fiscal quarter ended Sept. 25, 2011. Non-compliance with these financial covenants constituted an event of default, which could have resulted in acceleration of the maturity. None of the indebtedness under the Senior Credit Facility or Notes was accelerated prior to the completion of a comprehensive refinancing on Oct. 5, 2011. The Senior Credit Facility and 99.3% of the 4.25% Convertible Senior Notes were repaid as part of the refinancing. In addition, as a result of the completion of the refinancing, the short-term obligations under the Senior Credit Facility, the Notes and the Bridge Loan have been classified as long-term debt. As a result of the efforts to refinance the Company's debt and the 2011 amendments to the Senior Credit Facility, the Company paid $17.3 million in financing costs and recorded a loss on modification of debt of $0.6 million during 2011. * * * As reported by the TCR on Aug. 26, 2011, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Horizon Lines Inc. to 'SD' from 'CCC'. The rating action on Horizon Lines follow the company's decision to defer the interest payment on its $330 million senior convertible notes due August 2012, exercising the 30-day grace period. "Under our criteria, we view failure to make an interest payment within five business days after the due date for payment a default, regardless of the length of the grace period contained in an indenture," said Standard & Poor's credit analyst Funmi Afonja. HUDSON HEALTHCARE: Files 1st Amended Liquidating Plan ----------------------------------------------------- On Jan. 10, 2012, Hudson Healthcare, Inc., and the Official Committee of Unsecured Creditors filed their First Amended Joint Plan of Orderly Liquidation and an explanatory Disclosure Statement. The Plan provides that the proceeds from the liquidation of the Debtor's Assets will be distributed to Creditors in accordance with the distributive provisions and priority scheme of the Bankruptcy Code. The Plan will be implemented by establishing a Liquidating Trust that will be administered by the Liquidating Trustee. On the Effective Date, the Debtor's Assets, except for the D&O and Tort Claims and rights in and proceeds of any errors and omissions insurance policies maintained by or on behalf of the Debtor, including the D&O Policies, will be transferred to the Liquidating Trust for the benefit of Creditors. The Liquidating Trustee will be responsible for liquidating the Assets that comprise the Liquidating Trust Estate. On the Effective Date, the D&O and Tort Claims and related Assets will revest in the Debtor and will be prosecuted by the Debtor Representative. Upon the entry of judgment or settlement, the relevant proceeds of the D&O and Tort Claims, if any, will be transferred to the Liquidating Trust. The Plan segregates the various claims against the Debtor into three classes - Priority Non-Tax Claims, Secured Claims, and General Unsecured Claims. The Debtor believes that it has satisfied substantially all, if not all, of the Class 1 Priority Non-Tax Claims. To the extent there remain any Priority Nnon-Tax Claims, Holders thereof will receive Cash from the Administrative Expense/Priority Claim Reserve or the GUC Account, as necessary, in an amount equal to the Allowed Amount of their Claims, without interest, on the later of (a) ten (10) Business Days after the Effective Date; or (b) ten (10) Business Days after the date of entry of a Final Order allowing such Priority Non-Tax Claim, or as soon thereafter as is practicable. Class 1 Claims are not Impaired and holders thereof are conclusively presumed to have accepted the Plan. The Plan Proponents are not aware of any outstanding Secured Claims. To the extent there remain any Secured Claims and such claims are allowed, in the sole discretion of the Plan Proponents the Holder of an Allowed Class 2 Secured Claim will be treated in one of the following ways: (i) on the Effective Date, the legal, equitable, and contractual rights of each Holder of an Allowed Secured Claim will be reinstated in accordance with the provisions of Section 1124(2) of the Bankruptcy Code; (ii) on the Effective Date, the Holder of an Allowed Secured Claim will (a) retain a Lien securing such Allowed Secured Claim and (b) receive deferred Cash payments from the Liquidating Trust totaling at least the value of such Allowed Secured Claim as of the Effective Date; (iii) on the Effective Date, the collateral securing such Allowed Secured Claim will be surrendered to the Holder of such Allowed Secured Claim in full satisfaction of such Allowed Secured Claim; or (iv) the Holder of an Allowed Secured Claim will be paid, in Cash, an amount equal to such Holder's Allowed Secured Claim, on the later of (a) ten (10) Business Days after the Effective Date, or (b) ten (10) Business Days after the date of entry of a Final Order allowing such Claim as a Secured Claim, or as soon thereafter as is practicable. Secured Claims in Class 2 are unimpaired and, therefore, are conclusively presumed to have accepted the Plan and are not entitled to vote or reject the Plan. In general, the Plan provides that all Class 3 General Unsecured Claims will be paid Pro Rata from funds available for distribution after payment of administrative expenses and priority claims on the GUC Distribution Date. As of the Bar Date, the filed Class 3 Claims are estimated to total approximately $36,727,00. Class 3 is Impaired and the Holders of Allowed Class 3 Claims are entitled to vote to accept or reject the Plan. A copy of the Disclosure Statement for the Plan Proponents' Joint First Amended Joint Plan of Orderly Liquidation is available for free at http://bankrupt.com/misc/hudsonhealthcare.doc474.pdf About Hudson Healthcare Hudson Healthcare Inc. is a non-for-profit corporation formed under the laws of the State of New Jersey. Until the sale of Hoboken University Medical Center by the Hoboken Municipal Hospital Authority, the Debtor owned and managed the day-today operations of the Hospital on the Authority's behalf pursuant to a Manager Agreement dated Feb. 1, 2007. Other than certain contract rights, other intangibles, and approximately 12 vehicles, the Debtor did not own any Hospital assets. Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets and debt of less than $50 million. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Attorneys at Trenk, DiPasquale, Webster, Della Fera & Sodono, P.C., in West Orange, N.J., serve as counsel to the Debtor. Daniel T. McMurray, the patient care ombudsman, has tapped Neubert, Pepe & Monteith, P.C., as his counsel effective Aug. 25, 2011. The Official Committee of Unsecured Creditors of Hudson Healthcare has retained Sills Cummis & Gross P.C., in Newark, N.J., as its counsel, nunc pro tunc to Aug. 12, 2011. JH Cohn LLP serves as Financial Advisor to the Committee. Epiq Bankruptcy Solutions, LLC, is the Claims and Noticing Agent and Solicitation Agent. HUPAH HOLDINGS: S&P Assigns 'B' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Hupah Holdings S.A. (doing business as Capital Safety Group, with operations headquarters in the U.S.). The outlook is stable. "At the same time, Standard & Poor's assigned a 'B' issue-level rating and '3' recovery rating to the company's $470 million senior secured credit facilities, which comprise a $425 million senior secured term loan and a $45 million revolver," S&P said. "Capital Safety Group manufactures fall protection, confined space, and rescue equipment such as harnesses, lanyards, blocks, and anchor points. The company's main end markets include construction (24% of revenues), oil and gas (21%), industrial (12%), utilities (11%), and transportation (9%)," S&P said. "We believe Capital Safety's business profile will remain weak because of its narrow focus in a niche market, fall protection equipment, which is a subset of the competitive and fragmented personal protection equipment industry. This limits the company's scale of operations," said Standard & Poor's credit analyst John Sico. "We consider Capital Safety's financial risk profile to be highly leveraged," he added. Capital Safety's three brands -- DBI-SALA, PROTECTA, and UNILINE - - are positioned as premium brands within the fall protection equipment market. Capital Safety benefits from its customers' need to adhere to regulatory and compliance safety requirements. The company's customers exhibit some brand loyalty and are less price- sensitive due to the "life or death" nature of the products as well as training services that the company provides. However, it could have product liability claims if a significant accident or safety failure were linked to its products. INDALEX LTD: June 5 Hearing Date Set for Deemed Trust Appeal ------------------------------------------------------------ The Supreme Court of Canada has set June 5, 2012, as the day on which it will hear an appeal from the decision of the Court of Appeal for Ontario in Re Indalex, the landmark case dealing with the scope and priority of the deemed trust (a form of statutory security interest) provided for under the Pension Benefits Act (Ontario). About Blakes Restructuring & Insolvency Group Blakes is an insolvency practice based in Canada. It has offices in Toronto, Montreal, Calgary, and Vancouver. INTEGRATED BIOPHARMA: Imperium Forbearance Expired on Jan. 27 ------------------------------------------------------------- Integrated Biopharma, Inc., entered into a letter agreement, dated Jan. 24, 2012, with Imperium Advisers, LLC, as Collateral Agent on behalf of Investors, which amends the Forbearance Agreement dated as of Oct. 4, 2011, to (i) extend the termination date of the Forbearance Agreement to Jan. 27, 2012, and (ii) provide that any interest payments due and payable to the Collateral Agent by the Company through Jan. 27, 2012, pursuant to the terms of the 8% Senior Secured Notes of the Company will accrue and be due and payable on Jan. 28, 2012. On Jan. 20, 2012, the Company agreed to amend the Forbearance Agreement to (i) extend the termination date of the Forbearance Agreement to Jan. 24, 2012, and (ii) provide that any interest payments due and payable to the Collateral Agent by the Company through Jan. 24, 2012, pursuant to the terms of the 8% Senior Securities Notes of the Company will accrue and be due and payable on Jan. 25, 2012. About Integrated BioPharma Based in Hillside, N.J., Integrated BioPharma, Inc. (INBP.OB) -- -- http://www.healthproductscorp.us/ -- is engaged primarily in manufacturing, distributing, marketing and sales of vitamins, nutritional supplements and herbal products. The Company's customers are located primarily in the United States. The Company was previously known as Integrated Health Technologies, Inc., and, prior to that, as Chem International, Inc. The Company was reincorporated in its current form in Delaware in 1995. The Company continues to do business as Chem International, Inc., with certain of its customers and certain vendors. The Company reported a net loss of $2.28 million on $25.13 million of net sales for the fiscal year ended June 30, 2011, compared with a net loss of $5.53 million on $20.16 million of net sales during the prior fiscal year. The Company's balance sheet at Sept. 30, 2011, showed $13.41 million in total assets, $20.73 million in total liabilities, all current, and a $7.32 million total stockholders' deficiency. Friedman, LLP, in East Hanover, NJ, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has a working capital deficiency, recurring net losses and has defaulted on its debt obligations. INVESTORS LENDING: Committee Hires McCallar as Attorney ------------------------------------------------------- The Official Committee of Unsecured Creditors of the Chapter 11 case of Investors Lending Group, LLC, sought and obtained permission from the Bankruptcy Court to retain McCallar Law Firm as its attorney. The Unsecured Creditors Committee will pay on an hourly basis C. James McCallar, Jr., Esq., at $375 an hour and Tiffany E. Caron, Esq., $275 an hour. To the best of the Committee's knowledge, the firm has no interest adverse to the Committee and its employment would be in the best interest of the Committee. The firm may be reached at: C. James McCallar, Jr., Esq. Tiffany E. Caron, Esq. MCCALLAR LAW FIRM P.O. Box 9026 Savannah, GA 31412 Tel: (912) 234-1215 E-mail: mccallar@mccallarlawfirm.com tiffany.caron@mccallarlawfirm.com Based in Savannah, Georgia, Investors Lending Group LLC filed for Chapter 11 (Bankr. S.D. Ga. Case No. 11-41963) on Sept. 21, 2011. Judge Lamar W. Davis Jr. presides over the case. The Debtor scheduled assets of $14,197,900 and debts of $18,634,570. The petition was signed by Isaac L. Rabhan, CEO/assistant manager. James L. Drake, Jr. P.C., acts as counsel to the Debtor. In November 2011, the U.S. Trustee for Region 21 appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors of Investors Lending. IPC SYSTEMS: Moody's Affirms 'B3' Corporate Family Rating --------------------------------------------------------- Moody's Investors Service affirmed IPC Systems, Inc.'s ("IPC") B3 Corporate Family Rating and the existing ratings for the company's debt instruments, and raised IPC's probability of default rating to B3, from Caa1. The outlook for the ratings is changed to stable from negative. Moody's has taken these rating actions: Issuer: IPC Systems Inc. -- Corporate Family Rating -- Affirmed B3 -- Probability of Default Rating -- B3, upgraded from Caa1 -- $70 million secured revolver due 2013 -- Affirmed B1, LGD3 (33%), point estimate revised from LGD2 (20%) -- $636 million first lien secured credit facility due 2014 ? Affirmed B1, LGD3 (33%), point estimate revised from LGD2 (20%) -- $315 million second lien secured credit facility due 2015 ? Affirmed Caa2, LGD5 (86%), point estimate revised from LGD5 (72%) Outlook Action: Ratings Outlook changes to Stable from Negative RATINGS RATIONALE The stable ratings outlook reflects Moody's expectations that IPC's financial leverage should continue to decline and that the company will maintain good liquidity in the next 12 to 18 months. Driven by the recovery in demand for turret systems and network circuits at the trading floors, IPC's revenue and EBITDA increased in the fiscal year 2011 and the company's total Debt-to-EBITDA leverage declined from over 8.0x in 2010 to 6.8x for the fiscal year ended September 2011. Moody's expects the company to maintain good liquidity comprised of its growing cash balances, projected free cash flow and partial access to borrowings under the revolving credit facility. Moody's raised IPC's Probability of Default rating to B3, from Caa1, to reflect the company's more sustainable capital structure. However, IPC's ratings would come under pressure if the company is unable to address the approaching revolving and term loan maturities in a timely manner. The B3 Corporate Family Rating reflects IPC's still high financial leverage, especially in the context of the cyclical demand for its products by financial services firms, IPC's small scale relative to its primary competitors, and its narrow business focus as a provider of specialized telephony systems and networks services to financial trading community. The rating is supported by IPC's good liquidity, its leading market position as a supplier of specialized telephony systems to traders and brokers in the financial services industry, and the company's historically long standing relationships with its key customers. Moody's could upgrade IPC's ratings if the company maintains good revenue and free cash flow growth, and it could sustain Total Debt-to-EBITDA leverage below 6.0x and produces consistent levels of free cash flow of about 8% to 10% of its total debt. IPC's ratings could be downgraded if the company's liquidity deteriorates, or an erosion in revenue or profitability causes IPC's Total Debt-to-EBITDA leverage to increase toward 7.0x and free cash flow to decline to the low single digit percentages of total debt. The principal methodology used in rating IPC Systems was the Global Communications Equipment Industry Methodology published in July 2008. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. IPC Systems, Inc., headquartered in Jersey City, New Jersey, provides voice trading products, systems and network services to the financial services industry. JAMES RIVER: Amends Bylaws to Revise Director Nominations --------------------------------------------------------- The Board of Directors of James River Coal Company adopted and approved amended and restated bylaws of the Company, effective as of April 23, 2012. The Bylaws restate the Company's bylaws in their entirety and were adopted to implement revisions to the Company's advance notice requirements with respect to director nominations and certain other business a shareholder wishes to bring before an annual meeting of shareholders. These amendments will be effective for annual meetings of the shareholders occurring after the 2012 annual meeting of shareholders. The Company has scheduled its 2012 Annual Meeting of Shareholders to be held at the Company's principal office located at 901 E. Byrd Street, Suite 1600, Richmond, Virginia 23219, on Monday, April 23, 2012, at 10:00 a.m., local time. The Company set March 13, 2012, as the record date for shareholders entitled to notice of, and to vote at, the 2012 Annual Meeting. About James River Headquartered in Richmond, Virginia, James River Coal Company (NasdaqGM: JRCC) -- http://www.jamesrivercoal.com/-- mines, processes and sells bituminous steam and industrial-grade coal primarily to electric utility companies and industrial customers. The company's mining operations are managed through six operating subsidiaries located throughout eastern Kentucky and in southern Indiana. The Company also reported a net loss of $10.54 million on $820.47 million of total revenue for the nine months ended Sept. 30, 2011, compared with net income of $52.29 million on $539.06 million of total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $1.38 billion in total assets, $929.56 million in total liabilities, and $451.26 million in total shareholders' equity. * * * James River carries a 'B' corporate credit rating from Standard & Poor's Ratings Services, and 'B3' corporate family rating from Moody's Investors Service. As reported by the TCR on March 25, 2011, Moody's Investors Service upgraded James River Coal Company's Corporate Family Rating to 'B3' from 'Caa2'. The rating upgrade reflects post- acquisition potential for significant increase in JRCC's metallurgical coal production, increase in operational diversity within Central Appalachia, and greater access to export markets. The S&P corporate rating was upgraded from 'B-' in March 2011. "The upgrade reflects S&P's view that the IRP acquisition provides James River Coal exposure to the attractive metallurgical coal market," said Standard & Poor's credit analyst Fred Ferraro. "The acquisition also adds management experience in overseas marketing, and expands the company's reserve life. Furthermore, S&P expects that it will be funded in a way that is consistent with the current capital structure so as to maintain the current credit metrics." JESCO CONSTRUCTION: Sec. 341 Creditors' Meeting Set for Feb. 17 --------------------------------------------------------------- Ronald H. McAlpin, Assistant United States Trustee for Region 5, will convene a Meeting of Creditors pursuant to Sec. 341(a) of the BankruptcyCode in the Chapter 11 case of Jesco Construction Corp., a Delaware Corporation, on Feb. 17, at 10:30 a.m. at Hancock Bank Building, 2510 14th Street, Room 920, Gulfport, MS 39501 For all creditors, except a government unit, proofs of claim are due in the case by May 4, 2012. For a governmental unit, proofs of claim are due by July 3, 2012. Headquartered in Wiggins, Mississippi, Jesco Construction Corp., a Delaware Corporation, specializes in disaster response and was part of the Hurricane Katrina cleanup. It filed for Chapter 11 bankruptcy (Bankr. S.D. Miss. Case No. 12-50014) on Jan. 5, 2012. Judge Katharine M. Samson presides over the case. Craig M. Geno, Esq., at Harris Jernigan & Geno, PLLC, serves as the Debtor's counsel. In its petition, the Debtor estimated $100 million to $500 million in assets and $10 million to $50 million in debts. JLH ENTERPRISES: Files for Chapter 11 Bankruptcy Protection ----------------------------------------------------------- StarTribune reports that JLH Enterprises Inc. filed on Jan. 20, 2012, for Chapter 11 protection in the U.S. Bankruptcy Court in Minneapolis and St. Paul, Minnesota (Case No. 12-30292). The Company has yet to files schedules. Joseph P. Helkamp is the president of the Company. J L H Enterprises Inc. is a private company categorized under Mufflers and Exhaust Systems-Engine. KENTUCKIANA MEDICAL: Town to Review Refinancing Plan ---------------------------------------------------- Ben Zion Hershberg at The Courier-Journal reports that Rebecca Lockard, attorney of Clarksville, Indiana, said she will only commit Clarksville to investigating the plan to refinance Kentuckiana Medical Center -- and not commit the town to participating. According to the report, lawyers for the hospital have filed preliminary plans to refinance with a $38 million investment from the Argenta Group LLC, which would allow the addition of beds and operating rooms and the repayment of debts. The report says an Argenta official has said the financing is from insurance companies and can be provided at favorable interest rates only if a local government, with its secure finances, is involved. The Argenta plan calls for Clarksville to lease the hospital from Argenta and then sublease it to the hospital's doctors hospital, says the report. The report adds that U.S. Bankruptcy Judge Basil Lorch III has demanded evidence of serious commitments by local government and investors in the hospital at a hearing that took place on Jan. 24, 2012, if Judge Lorch is to allow the medical center to retain its Chapter 11 protection from creditors. The report relates that Tim Donahue, the hospital's court- appointed reconstruction manager, said he hopes the letter from Clarksville will provide the evidence Judge Lorch wants. Clarksville, Indiana-based Kentuckiana Medical Center LLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ind. Case No. 10-93039) on Sept. 19, 2010. David M. Cantor, Esq., at Seiller Waterman LLC, represents the Debtor. The Debtor scheduled $9,496,899 in assets, and $25,029,083 in liabilities. KINGSBURY CORP: Sells Assets to Optimation for $2.6 Million ----------------------------------------------------------- SentinelSource.com reports Kingsbury Corp. said it is selling off its assets and property to Optimation Technology Inc. of Rush, New York. According to the report, Kingsbury won the bid for Kingsbury's non-real estate assets last week, purchasing them for $2.6 million. Kingsbury listed the fair market value of the assets at $4,050,000. Optimation was the only bidder. The report adds that the fate of the 300,000-square-foot facility on Laurel Street still remains unclear. The total property value was assessed by the city at $4,238,100. The report says, if the sale is successful, Kingsbury's machine- tooling capabilities will become part of a national operation with offices from Austin, Texas, to Nashua. Optimation plans to move the machinery to its location in New York. The company also plans to operate a small engineering office in Keene, New Hampshire. The report further says the sale needs to be finalized by a judge before Optimation can take over. A hearing was set on Jan. 30, 2012, in U.S. Bankruptcy Court in Manchester, New Hampshire. The hearing will also allow those who filed objections to the sale to argue their case. About Kingsbury Corp. Kingsbury Corp. -- http://www.kingsburycorp.com/-- makes and assembles machine systems. Kingsbury Corporation and affiliate Ventura Industries, LLC, filed Chapter 11 petition (Bankr. D. N.H. Case Nos. 11-13671 and 11-13687) on Sept. 30, 2011. Jennifer Rood, Esq., and Robert J. Keach, Esq., at Berstein, Shur, Sawyer & Nelson, serve as counsel to the Debtors. Donnelly Penman & Partners serves as its investment banker. In its schedules, the Debtor disclosed $10,134,679 in assets, and $24,534,973 in liabilities as of the petition date. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to serve on the Official Committee of Unsecured Creditors of Kingsbury Corporation. KV PHARMACEUTICAL: Kingdon Capital Holds 7% of Class A Shares ------------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Kingdon Capital Management, L.L.C., and Mark Kingdon disclosed that, as of Jan. 17, 2012, they beneficially own 3,440,000 shares of Class A common shares of K-V Pharmaceutical Company representing 7.05% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/kNV77L About KV Pharmaceutical Company KV Pharmaceutical Company (NYSE: KVa/KVb) -- http://www.kvpharmaceutical.com/-- is a fully integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded and generic/non-branded prescription pharmaceutical products. The Company markets its technology distinguished products through ETHEX Corporation, a subsidiary that competes with branded products, and Ther-Rx Corporation, the company's branded drug subsidiary. KV Pharmaceutical has not timely filed its Form 10-K for the year ended March 31, 2010 and its Form 10-Qs for the subsequent quarterly periods. The Company's independent accounting firm, KPMG, resigned on June 25, 2010, and the Company has tapped BDO USA, LLP, to audit the fiscal 2010 financial statements. The Form 10-Q for the quarter ended June 30, 2010, was only filed March 10, 2011. The Company was not able to complete its Form 10-Q for the three- and six-month periods ended Sept. 30, 2011, by the filing deadline of Nov. 9, 2011, without unreasonable effort and expense. The Company expects to file this Form 10-Q with the SEC as soon as practicable after filing the amended filings, and, in any case, within five days of those filings. KPMG LLP, in St. Louis, Missouri, expressed substantial doubt about K-V Pharmaceutical's ability to continue as a going concern. The independent auditors noted that the Company has suspended the shipment of all products manufactured by it and must comply with a consent decree with the FDA before approved products can be reintroduced to the market. Significant negative impacts on operating results and cash flows from these actions including the potential inability of the Company to raise capital; suspension of manufacturing; significant uncertainties related to litigation and governmental inquiries; and debt covenant violations. The Company's balance sheet at of March 31, 2011, showed $564.70 million in total assets, $942.50 million in total liabilities and a $377.80 million total shareholders' deficit. The Company reported a net loss of $271.70 million on $27.30 million of net revenues for the year ended March 31, 2011, compared with a net loss of $283.60 million on $9.10 million of net revenues during the prior year. LAMAR MEDIA: Moody's Assigns 'B1' Rating to $400-Mil. Sr. Notes --------------------------------------------------------------- Moody's Investors Service assigned a Baa3 rating to the new $100 million senior secured Term Loan A-3 credit facility of Lamar Media Corporation, an operating subsidiary of Lamar Advertising Company, and a B1 rating to the company's new $400 million senior subordinated notes. The company's Ba3 Corporate Family Rating (CFR), Ba3 Probability of Default Rating (PDR) and SGL-2 Speculative Grade Liquidity rating are not affected by these actions and the rating outlook is stable. Details of the rating action are: Issuer: Lamar Media Corporation -- $100 million Senior Secured Term Loan A-3, Assigned Baa3, LGD2-13% -- $400 million Senior Subordinated 10 year Notes, Assigned B1, LGD5-81% Proceeds from the $100 million Term Loan A-3, $400 million Senior Sub Notes along with approximately $146 million borrowed under the existing revolver, will be used to fund a tender offer for up to $600 million of the exiting 6.625% Senior Subordinated Notes due 2015 on a pro-rata basis. RATING RATIONALE The rating assigned to the senior secured Term Loan A-3 of Baa3 and the senior subordinated notes rating of B1 is based on the application of Moody's LGD methodology. While the outcome results in a higher amount of senior secured debt compared to Subordinated debt pro-forma for the transaction, the company has paid down $250 million of primarily senior secured debt over the last twelve months ending September 2011. The Baa3 rating on the senior secured credit facility reflects the priority over unsecured debt by virtue of the security package. The B1 rating on the subordinated notes reflects their junior most position in the capital structure and their contractual subordination to all senior secured and senior unsecured creditors. There is no change in the company's Ba3 CFR and Ba3 PDR at this time as the transactions have a relatively neutral impact on credit metrics although it extends out $400 million of debt to 2022 and may provide some interest expense savings. The company's revenues continue to recover from the impact of the sharp cyclical downturn and margins have improved from cost savings achieved over the past few years. It has also benefited from its continued focus on debt repayment, mentioned above, along with capex spend of approximately $100 million expected in 2011 which will be used in part, to expand its digital billboard footprint. Moody's believes that revenue growth will continue in the low to mid single digits with similar growth in EBITDA and free cash flow. Moody's also expects the company will continue to paydown debt and anticipate the revolver balance will decline substantially by the end of 2012 with free cash flow meeting the operating cash needs of the company. The combination of strong operating performance, good free cash flow, and conservative financial policies position the company at the high end of the Ba3 CFR level. Lamar's SGL-2 liquidity rating reflects its ability to generate strong free cash flows, the absence of material near-term debt maturities until 2014 and 2015, and Moody's expectation that Lamar will remain in compliance with financial covenants under the credit facility. Additional cushion in its financial covenants may be provided by an effort to amendment its credit agreement to eliminate further step downs in its covenant requirements in future years. The last rating action was on April 8, 2010 when Moody's assigned ratings to the Senior Secured Bank Credit Facility and $400 million Senior Subordinated Note with the CFR affirmed at Ba3. Lamar's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (iii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside Lamar's core industry and believes Lamar's ratings are comparable to those of other issuers with similar credit risk. The principal methodology used in rating Lamar Media Corporation was the Global Broadcast Industry Methodology published in June 2008. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Lamar Advertising Company, with its headquarters in Baton Rouge, Louisiana, is a leading owner and operator of advertising structures in the U.S. and Canada. The company generated revenues of $1.121 billion on a LTM basis as of September 2011. LAMAR MEDIA: S&P Upgrades Corporate Credit Rating to 'BB-' ---------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Baton Rouge, La.-based outdoor advertising operator Lamar Advertising Co. and its operating subsidiary, Lamar Media Corp. (Lamar), to 'BB-' from 'B+'. The rating outlook is stable. "At the same time, we assigned our 'BB+' issue-level rating to Lamar's proposed new $100 million senior secured term loan, with a recovery rating of '1', indicating our expectation of very high (70% to 90%) recovery for lenders in the event of a payment default. We also raised our issue-level ratings on the company's existing senior secured first-lien debt to 'BB+' from 'BB', in accordance with our notching criteria for a recovery rating of '1'," S&P said. "We also assigned the company's proposed $400 million of senior subordinated notes due 2022 our 'BB-' issue-level rating, with a recovery rating of '3', indicating our expectation of meaningful (50% to 70%) recovery for noteholders in the event of a payment default. In addition, we raised our issue-level ratings on the company's existing senior subordinated debt to 'BB-' from 'B+'," S&P said. "We expect Lamar to use proceeds, along with borrowings under its revolving credit facility, to tender for $500 million (potentially upsized to $600 million) of its 6.625% senior subordinated notes due 2015," S&P said. "The upgrade reflects our expectation that Lamar will be able to reduce and sustain fully-adjusted leverage below 5.5x in 2012, based on modest EBITDA growth and voluntary debt reduction from discretionary cash flow," explained Standard & Poor's credit analyst Michael Altberg. Lamar's business risk profile is "satisfactory", because of its strong position in small to midsize outdoor advertising markets, consistently high EBITDA margin of 40% to 42%, and only moderate structural pressure compared with various other media due to less competition from online advertising. "We consider the company's financial profile as 'aggressive,' given its still-high, albeit declining, fully adjusted leverage, which stood at 5.9x as of Sept. 30, 2011. We view liquidity as 'adequate,' given the company's good discretionary cash flow, and that a financial policy oriented toward debt repayment will continue in 2012," S&P said. "Lamar is the third-largest U.S. outdoor advertising company, based on number of displays. A significant portion of its revenues comes from its higher-margin billboard business. Unlike its much larger competitors, Clear Channel Communications Inc. and CBS Corp., Lamar generates a high percentage of revenues from small to midsize markets, where its strong market shares helped to mitigate local revenue declines in 2009. In addition, Lamar has a significantly higher EBITDA margin than larger-market peers'. We attribute this, in part, to its lack of participation in international markets, where CBS and Clear Channel operate with a higher mix of lower-margin transit displays than in the U.S. Furthermore we believe Lamar has less domestic exposure to lower- margin specialty displays than its larger peers," S&P said. LAST MILE: Committee Can Retain Halperin Battaglia as Counsel ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has granted the Official Committee of Unsecured Creditors in the Chapter 11 case of Last Mile Inc. permission to retain Halperin Battaglia Raicht, LLP, as it counsel, nunc pro tunc to Nov. 29, 2011. HBR will, among other things: a. advise the Committee with respect to its rights, duties and powers in this case; b. assist and advise the Committee in its consultations with the Debtor relative to the administration of this case; c. assist the Committee in analyzing the claims of Debtor's creditors and in negotiating with such creditors; d. assist with the Committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtor, the operation of the Debtor's business and the proposed disposition of the business or assets; and e. assist the Committee in its analysis of and negotiations with the Debtor or any third party concerning matters related to the realization by creditors of a recovery on claims and other means of realizing value in this case. Compensation will be payable to HBR on an hourly basis, plus reimbursement of actual, necessary expenses and other charges incurred by the firm. HBR's current hourly rates are from $525 to $195 per hour for attorneys and $125 to $95 per hour for paraprofessionals. Alan D. Halperin, a partner of Halperin Battaglia Raicht, attested that the firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. About Last Mile Based in Lebanon, Pennsylvania, Last Mile Inc., aka Sting Communications, is a telecommunications services company delivering advanced Ethernet transport services. It specializes in designing, implementing and managing Wide Area Networks that leverage the power of Internet Protocol to link the customers' locations securely, efficiently and cost effectively to support delivery of advanced applications, voice, data and video at scalable broadband speeds. Last Mile filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 11-14769) on Oct. 12, 2011. Judge Sean H. Lane presides over the case. Kenneth A. Rosen, Esq., and Thomas A. Pitta, Esq., at Lowenstein Sandler PC, in New York, represent the Debtor as counsel. In its schedules, the Debtor disclosed $11,757,058 in assets and $23,300,655 in liabilities. Tracy Hope Davis, the United States Trustee for Region 2, pursuant to 11 U.S.C. Sec. 1102(a) and (b), appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors of Last Mile Inc., aka Sting Communications. Halperin Battaglia Raicht, LLP, serves as counsel for the Committee. LAST MILE: Taps Griffin as Investment Banker and Financial Advisor ------------------------------------------------------------------ Last Mile Inc. asks the U.S. Bankruptcy Court for the Southern District of New York for authorization to employ Griffin Financial Group, LLC, as its investment banker and financial advisor, in connection with (i) the sale of all or substantially all of the assets of the Debtor; (ii) the review of private placement financing alternatives available to the Debtor, if any, involving raising debt and/or equity (the "Financing"); and (iii) the restructuring of the balance sheet of the Debtor. Griffin will provide a broad range of necessary financial advisory and investment banking services. Subject to Court approval, Griffin will be compensated in accordance with the following compensation structure: 1. Retainer Fee. A monthly retainer fee (the "Retainer Fee") of $5,000 will be due and payable on the first of every month beginning Feb. 1, 2012, without separate invoice. 2. Transaction Fee. Upon completion of a Sale, Financing or Restructuring Transaction, and subject to an order approving the sale of all or substantially all of the Companies assets or through a confirmed plan of reorganization in a Chapter 11 bankruptcy proceeding, the Company will pay Griffin a fee in the amount of $250,000 (less retainers paid to date up to a maximum of $50,000) (the "Transaction Fee",) payable in cash, in federal funds via wire transfer or certified check at any closing. 3. Expenses. Griffin will invoice on a monthly basis, and the Company will promptly pay, Griffin's reasonable out-of-pocket expenses incurred in providing the above services (including, but not limited to, travel, meeting, telephone, copy services, postage and shipping, legal fees and expenses and database expenses, etc.). To the best of the Debtor's knowledge and except to the extent disclosed in the motion and the Bernabeo Certification: (a) Griffin is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, as required by Section 327(a) of the Bankruptcy Code and does not hold or represent an interest adverse to the Debtor's estate; and (b) Griffin has no connection to the Debtor, its creditors or its related parties except as may be disclosed in the Bernabeo Certification. A copy of the Griffin employment application is available for free at http://bankrupt.com/misc/lastmile.doc63.pdf About Last Mile Based in Lebanon, Pennsylvania, Last Mile Inc., aka Sting Communications, is a telecommunications services company delivering advanced Ethernet transport services. It specializes in designing, implementing and managing Wide Area Networks that leverage the power of Internet Protocol to link the customers' locations securely, efficiently and cost effectively to support delivery of advanced applications, voice, data and video at scalable broadband speeds. Last Mile filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 11-14769) on Oct. 12, 2011. Judge Sean H. Lane presides over the case. Kenneth A. Rosen, Esq., and Thomas A. Pitta, Esq., at Lowenstein Sandler PC, in New York, represent the Debtor as counsel. In its schedules, the Debtor disclosed $11,757,058 in assets and $23,300,655 in liabilities. Tracy Hope Davis, the United States Trustee for Region 2, pursuant to 11 U.S.C. Sec. 1102(a) and (b), appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors of Last Mile Inc., aka Sting Communications. Halperin Battaglia Raicht, LLP, serves as counsel for the Committee. LAST MILE: Can Continue Using Manufacturers and Traders Cash ------------------------------------------------------------ On Jan. 17, 2012, the U.S. Bankruptcy Court for the Southern District of New York, entered an interim bridge order authorizing Last Mile, Inc., to continue using cash collateral of Manufacturers and Traders Trust Company for the period through the date which is earliest to occur of (a) Jan. 27, 2012, or (b) a Termination Declaration Date pursuant to and in accordance with the Budget attached as Exhibit A to the Third Interim Cash Collateral Order (Docket No. 60), subject to the variance allowances contained in paragraph 3 of the Interim Cash Collateral Order [Docket No. 19], to satisfy (in the order of) (i) all payments required under their ground leases; (ii) all monthly payments to be made in escrow for insurance and taxes; and (iii) operational costs and expenses arising in connection with the administration of the Debtor's estate. Pursuant to paragraph 3 of the Interim Cash Collateral Order, the Debtor may move amounts between line items on the Budget consistent with reasonable financial practice, may not exceed any line item on the Budget by more than 10% without the Lender's permission but may apply unused amounts for any line item on the Budget towards the payment of any other line item on the Budget. A copy of the January 17 Interim Bridge Order is available for free at http://bankrupt.com/misc/lastmile.doc69.pdf About Last Mile Based in Lebanon, Pennsylvania, Last Mile Inc., aka Sting Communications, is a telecommunications services company delivering advanced Ethernet transport services. It specializes in designing, implementing and managing Wide Area Networks that leverage the power of Internet Protocol to link the customers' locations securely, efficiently and cost effectively to support delivery of advanced applications, voice, data and video at scalable broadband speeds. Last Mile filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 11-14769) on Oct. 12, 2011. Judge Sean H. Lane presides over the case. Kenneth A. Rosen, Esq., Jeffrey A. Kramer, Esq., and Thomas A. Pitta, Esq., at Lowenstein Sandler PC, in New York, represent the Debtor as counsel. In its schedules, the Debtor disclosed $11,757,058 in assets and $23,300,655 in liabilities. Tracy Hope Davis, the United States Trustee for Region 2, pursuant to 11 U.S.C. Sec. 1102(a) and (b), appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors of Last Mile Inc., aka Sting Communications. Halperin Battaglia Raicht, LLP, serves as counsel for the Committee. LOS ANGELES DODGERS: Lease Decision Period Extended to April 30 --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has extended, pursuant to Sections 365(d)(4) of the Bankruptcy Code the deadline for Los Angeles Dodgers LLC, et al., to assume or reject unexpired leases of nonresidential real property through and including April 30, 2012, with the written consent of the applicable landlords. About Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. In its schedules, the LA Dodgers baseball club disclosed $77,963,734 in assets and $4,695,702 in liabilities. LA Real Estate LLC disclosed $161,761,883 in assets and $0 in liabilities. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Public relations specialist Kekst and Company has been hired for crisis support. Covington & Burling LLP serves as special counsel. An official committee of unsecured creditors has been appointed in the case. The panel has tapped Lazard Freres & Co. as financial adviser and investment banker, and Morrison & Foerster LLP and Pinckney, Harris & Weidinger, LLC as counsel. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection. The reorganization is being financed with a $150 million unsecured loan from the Commissioner of Major League Baseball. The loan gives the Commissioner few of the controls lenders often demanded from bankrupt companies. LOS ANGELES DODGERS: Can Employ Covington as Special Counsel ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware has granted Los Angeles Dodgers LLC, et al., permission to employ Covington & Burling LLP as special counsel, nunc pro tunc to July 20, 2011. As reported in the TCR on Dec. 26, 2011, Covington & Burling LLP will, among other things: a. negotiate on behalf of the Debtors the terms of a potential transaction involving the telecast rights; b. prepare on behalf of the Debtors all necessary transactional documents in connection with a potential transaction involving the telecast rights; and c. perform all other necessary legal services in connection with a potential transaction involving the Telecast Rights as may be requested by the Debtors is deemed necessary or appropriate by Covington (excluding legal services in connection with obtaining this Court's approval of any such media rights deal, which will instead be provided by the Debtors' bankruptcy counsel, Dewey & LeBoeuff LLP) Douglas G. Gibson attested that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm's rates are: Personnel Rates --------- ----- Lead Attorney $830 Paralegal/non-attorney $275-$940 About Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. In its schedules, the LA Dodgers baseball club disclosed $77,963,734 in assets and $4,695,702 in liabilities. LA Real Estate LLC disclosed $161,761,883 in assets and $0 in liabilities. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Public relations specialist Kekst and Company has been hired for crisis support. Covington & Burling LLP serves as special counsel. An official committee of unsecured creditors has been appointed in the case. The panel has tapped Lazard Freres & Co. as financial adviser and investment banker, and Morrison & Foerster LLP and Pinckney, Harris & Weidinger, LLC as counsel. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection. The reorganization is being financed with a $150 million unsecured loan from the Commissioner of Major League Baseball. The loan gives the Commissioner few of the controls lenders often demanded from bankrupt companies. MARSICO HOLDINGS: Bank Debt Trades at 65% Off in Secondary Market ----------------------------------------------------------------- Participations in a syndicated loan under which Marsico is a borrower traded in the secondary market at 34.90 cents-on-the- dollar during the week ended Friday, Jan. 27, 2012, an increase of 2.57 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Dec. 14, 2014. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Marsico Holdings, LLC, is the new indirect parent of Marsico Capital Management, LLC, and Marsico Fund Advisors, LLC. Marsico Capital Management is a Denver-based asset management firm offering investment services to institutional and retail investors. The last rating action was taken on Oct. 13, 2010, when Moody's downgraded the ratings of Marsico Parent Company, LLC's senior secured bank facilities to Caa2 from Caa1and put them on review for further downgrade. In addition, the rating of Marsico Parent Holdco, LLC's senior note was downgraded to C from Ca with a stable outlook. In the same rating action, Moody's also put the Caa3 corporate family rating of Marsico Parent on review for possible downgrade. Moody's affirmed Marsico Parent's senior unsecured notes at Ca and changed the outlook to stable from negative. MC2 CAPITAL: Court OKs MacConaghy & Barnier as Bankruptcy Counsel ----------------------------------------------------------------- MC2 Capital Partners LLC sought and obtained permission from the U.S. Bankruptcy Court for the Northern District of California to employ MacConaghy & Barnier, PLC as bankruptcy counsel under a general retainer. John H. MacConaghy, Esq., will lead the engagement. MC2 Capital Partners, LLC, based in San Rafael, California, filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-14366) on Dec. 1, 2011. Judge Alan Jaroslovsky presides over the case. In its petition, the Debtor estimated $10 million to $50 million in assets and $50 million to $100 million in debts. The Debtor's Manager is Monahan Pacific Corporation. Thomas Monahan -- an officer and director of Monahan Pacific Corporation and the holder of 95% of the LLC equity interests in the Debtor -- signed the petition. He has been appointed as responsible individual for the Debtor. MEDIA GENERAL: Incurs $3.3 Million Net Loss in Fourth Quarter ------------------------------------------------------------- Media General, Inc., reported a net loss of $3.30 million on $167.73 million of total revenues for the 13 weeks ending Dec. 25, 2011, compared with net income of $9.04 million on $189.87 million of total revenues for the 13 weeks ending Dec. 26, 2010. The Company reported a net loss of $71.01 million on $448.47 million of total revenues for the nine months ended Sept. 25, 2011, compared with a net loss of $31.68 million on $488.23 million of total revenues for the nine months ended Sept. 26, 2010. The Company reported a net loss of $74.32 million on $616.20 million of total revenues for the 52 weeks ending Dec. 25, 2011, compared with a net loss of $22.63 million on $678.11 million of total revenues for the 52 weeks ended Dec. 26, 2010. The Company's balance sheet at Dec. 25, 2011, showed $1.08 billion in total assets, $1.05 billion in total liabilities and $33.95 million in stockholders' equity. "Media General's fourth-quarter results reflected several positive trends. Automotive advertising at our Broadcast television stations increased 14 percent from the prior year. Excluding Political revenues, total Broadcast revenues increased nearly 9 percent," said Marshall N. Morton, president and chief executive officer. "In addition, the decline in Print revenues moderated to 6.6 percent, compared with a 9.1 percent decrease in the third quarter of 2011. Fourth-quarter Print revenues included strong preprint advertising volume in several markets and solid retail advertising related to the holidays. A full-text copy of the press release is available for free at: http://is.gd/fSpNDY About Media General Richmond, Virginia-based Media General Inc. (NYSE: MEG) -- http://www.mediageneral.com/-- is an independent communications company with interests in newspapers, television stations and interactive media in the United States. The Company operates in three business segments: Publishing, Broadcast and Interactive Media. The Company owns 25 daily newspapers and more than 150 other publications, as well as 23 television stations. The Company also operates more than 75 online enterprises. In March 2008, the Company completed the purchase of DealTaker.com, an online social shopping portal. * * * As reported by the Troubled Company Reporter on October 5, 2011, Moody's Investors Service downgraded Media General, Inc.'s (Media General) Corporate Family Rating (CFR) and senior secured bond rating to B3 from B2, and lowered the company's speculative-grade liquidity rating to SGL-4 from SGL-3. The rating actions reflect the liquidity pressure from the approaching March 2013 credit facility maturity and heightened risk of a covenant violation, as well as the operating pressure from a weaker advertising market. The rating outlook is negative. The TCR also reported on Oct. 28, 2011, that Standard & Poor's Ratings Services lowered its corporate credit on Richmond, Va.- headquartered Media General Inc. to 'CCC+' from 'B-'. "The downgrade reflects our expectation that Media General could face difficulties in maintaining covenant compliance in 2012," S&P said. MEDIA GENERAL: Royce & Associates Owns 4.8% of Class A Shares ------------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Royce & Associates, LLC, disclosed that, as of Dec. 31, 2011, it beneficially owns 1,097,705 shares of Class A common stock of Media General, Inc., representing 4.86% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/U8yxVv About Media General Richmond, Virginia-based Media General Inc. (NYSE: MEG) -- http://www.mediageneral.com/-- is an independent communications company with interests in newspapers, television stations and interactive media in the United States. The Company operates in three business segments: Publishing, Broadcast and Interactive Media. The Company owns 25 daily newspapers and more than 150 other publications, as well as 23 television stations. The Company also operates more than 75 online enterprises. In March 2008, the Company completed the purchase of DealTaker.com, an online social shopping portal. The Company reported a net loss of $71.01 million on $448.47 million of total revenues for the nine months ended Sept. 25, 2011, compared with a net loss of $31.68 million on $488.23 million of total revenues for the nine months ended Sept. 26, 2010. The Company reported a net loss of $74.32 million on $616.20 million of total revenues for the 52 weeks ending Dec. 25, 2011, compared with a net loss of $22.63 million on $678.11 million of total revenues for the 52 weeks ended Dec. 26, 2010. The Company's balance sheet at Dec. 25, 2011, showed $1.08 billion in total assets, $1.05 billion in total liabilities and $33.95 million in stockholders' equity. * * * As reported by the Troubled Company Reporter on October 5, 2011, Moody's Investors Service downgraded Media General, Inc.'s (Media General) Corporate Family Rating (CFR) and senior secured bond rating to B3 from B2, and lowered the company's speculative-grade liquidity rating to SGL-4 from SGL-3. The rating actions reflect the liquidity pressure from the approaching March 2013 credit facility maturity and heightened risk of a covenant violation, as well as the operating pressure from a weaker advertising market. The rating outlook is negative. The TCR also reported on Oct. 28, 2011, that Standard & Poor's Ratings Services lowered its corporate credit on Richmond, Va.- headquartered Media General Inc. to 'CCC+' from 'B-'. "The downgrade reflects our expectation that Media General could face difficulties in maintaining covenant compliance in 2012," S&P said. MEDICURE INC: Reports C$1 Million Net Income in Q2 2012 ------------------------------------------------------- Medicure Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 6-K, reporting net income of C$1.05 million on C$2.24 million of net product sales for the three months ended Nov. 30, 2011, compared with net income of C$709,912 on C$802,409 of net product sales for the same period during the prior year. The Company reported a loss and comprehensive loss of C$2.01 million on C$3.62 million of net product sales for the fiscal year ended May 31, 2011, compared with a loss and comprehensive loss of C$5.53 million on C$3.31 million of net product sales during the prior year. The Company reported net income of C$24.60 million on C$3.76 million of net product sales for the six months ended Nov. 30, 2011, compared with a net loss of C$869,925 on C$1.63 million of net product sales for the same period a year ago. The Company's balance sheet at Nov. 30, 2011, showed C$6.51 million in total assets, C$7.08 million in total liabilities and a C$574,987 total shareholders' deficiency. A full-text copy of the Form 6-K is available for free at: http://is.gd/xwM2Ti About Medicure Inc. Based in Winnipeg, Manitoba, Canada, Medicure Inc. (TSX/NEX: MPH.H) -- http://www.medicure.com/-- is a biopharmaceutical company engaged in the research, development and commercialization of human therapeutics. The Company has rights to the commercial product, AGGRASTAT(R) Injection (tirofiban hydrochloride) in the United States and its territories (Puerto Rico, U.S. Virgin Islands, and Guam). AGGRASTAT(R), a glycoprotein GP IIb/IIIa receptor antagonist, is used for the treatment of acute coronary syndrome (ACS) including unstable angina, which is characterized by chest pain when one is at rest, and non-Q-wave myocardial infarction. KPMG LLP, in Winnipeg, Canada, noted that Medicure has experienced operating losses since incorporation that raises significant doubt about its ability to continue as a going concern. MERCEDES HOMES: Ends Operations After Getting Deals for New Homes ----------------------------------------------------------------- Wayne T. Price at Florida Today reports that Mercedes Homes LLC said it is ending operations two years after filing for Chapter 11 bankruptcy after its contracts for new homes are satisfied. According to the report, Marc Watson, the chief restructuring officer of Mercedes Homes LLC, said: "The change in executive management was implemented to facilitate a structured conclusion to Mercedes Homes? business operations." Mr. Watson added: "Mercedes will continue to conduct business, including continuing to sell new homes, as part of the plan for the orderly conclusion of business. A structured plan was designed and implemented to ensure that homes currently under construction are timely and properly delivered to our customers." Headquartered in Melbourne, Florida, Mercedes Homes Inc. -- http://www.mercedeshomes.com/-- operates a homebuilding company that was established in 1983 by Howard Buescher, a 23-year veteran of the homebuilding business and his daughter Susan Girard. The Company employs approximately 400 people who sell, and construct, homes of distinctive quality in over 80 communities in Florida, Texas and North and South Carolina. The Company and 10 affiliates filed for Chapter 11 protection on Jan. 26, 2009 (Bankr. S.D. Fla. Lead Case No. 09-11191). Sean T. Cork, Esq., Tina M. Talarchyk, Esq., and Craig D. Hansen, Esq., at Squire, Sanders & Dempsey, LLP, represent the Debtors in their restructuring efforts. Richard M. Williamson and Alvarez & Marsal North American LLC serve as the Debtors' chief restructuring officer, Odyssey Capital Group LLC as valuation expert, Michael P. Kahn & Associates LLC as financial advisor and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors' Schedules of Assets and Liabilities delivered to the bankruptcy court in March 2009 show $309 million in assets available to pay liabilities totalling $280 million, $224 million of which is owed to secured creditors. M. Bryant Gatrell, Esq., at Moore & Van Allen PLLC, represents the agent for the Debtors' prepetition first lien facilities. Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Exelrod, LLP, represents the agent for the Debtors' prepetition second lien facility. MERIDIAN SHOPPING: Sec. 341 Creditors' Meeting Set for Feb. 22 -------------------------------------------------------------- The U.S. Trustee for the Northern District of California, in Santa Ana, will hold a First Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the Chapter 11 case of Meridian Shopping Center LLC, on Feb. 22, 2012, at 10:30 a.m. at San Jose Room 268. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Proofs of claim are due May 22, 2012. Meridian Shopping Center LLC, based in Milpitas, California, filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 12-50380) on Jan. 18, 2012. Judge Stephen L. Johnson presides over the case. The Law Office of Dennis Yan serves as the Debtor's counsel. The Debtor scheduled $14,000,000 in assets and $10,912,623 in liabilities. The petition was signed by John Wynn, manager. MERIDIAN SHOPPING: Status Conference Set for March 1 ---------------------------------------------------- The Bankruptcy Court has set a Status Conference in the Chapter 11 case of Meridian Shopping Center LLC for March 1, 2012, at 9:30 a.m. at San Jose Courtroom 3099 - Johnson. Meridian Shopping Center LLC, based in Milpitas, California, filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 12-50380) on Jan. 18, 2012. Judge Stephen L. Johnson presides over the case. The Law Office of Dennis Yan serves as the Debtor's counsel. The Debtor scheduled $14,000,000 in assets and $10,912,623 in liabilities. The petition was signed by John Wynn, manager. METRO-GOLDWYN-MAYER: S&P Raises Corporate Credit Rating to 'B' -------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Beverly Hills, Calif.-based Metro-Goldwyn-Mayer Inc. (MGM) to 'B' from 'B-'. The rating outlook is stable. "In conjunction with the upgrade, we raised our issue-level ratings on the company's senior secured credit facilities to 'BB-' (two notches higher than the 'B' corporate credit rating on the company). Our recovery rating on this debt remains unchanged at '1', indicating our expectation of very high (90% to 100%) recovery for lenders in the event of a payment default," S&P said. "The upgrade reflects our view that the company has stabilized its library cash flow since emerging from bankruptcy in December 2010," said Standard & Poor's credit analyst Deborah Kinzer. "The stable rating outlook reflects our expectation that although the company faces risks associated with the resumption of film production activities in 2012, releases scheduled at the end of the year, anchored by a new James Bond film and the first Hobbit movie, will enable it to regain modest profitability in new production." "We regard MGM's business risk profile as 'weak'. The company relies on its film library for the bulk of its revenue and EBITDA. Film library values have diminished in recent years, as catalog sales have weakened amid competition from alternative forms of entertainment. Also, MGM faces the risk of losses and write-downs on new releases in 2012 after about a two-year hiatus," S&P said. "We regard the company's financial risk profile as 'highly leveraged' because of its still-heavy debt burden, despite the steep debt reduction after its emergence from bankruptcy in late 2010. In addition, we believe that debt will remain high over the next few years as the company funds a considerable portion of film production with advances from its co-financing partners," S&P said. "MGM is a pure-play filmed entertainment company. Its extensive film and TV library contains about 4,100 theatrically released movies and 10,800 TV episodes. Franchise properties include the James Bond film series, Rocky films, and the Stargate TV series. The company also has a 50% interest in the two upcoming Hobbit movies. MGM's library represents its most stable source of cash flow, although the prospects for increasing this cash flow receded during the 2010-2011 period, during which the company had no new releases and was exposed to unfavorable trends in home video. The company has actively licensed its titles to domestic and international TV channels and to digital video service providers, but we believe that future licensing activities will only be successful if the library is refreshed with new films. In 2012, management plans to resume producing a regular slate of four to six films a year, but it will take several years, depending on success, for cash flow from all distribution windows to fund ongoing production without further borrowing. We view the James Bond and Hobbit films as promising for MGM's future box-office performance, but the success of other films involves high risk," S&P said. MF GLOBAL: Missing $1.2 Billion May No Longer Be Recoverable ------------------------------------------------------------ The Wall Street Journal's Scott Patterson and Aaron Lucchetti report that nearly three months after MF Global Holdings Ltd. collapsed, officials hunting for an estimated $1.2 billion in missing customer money increasingly believe that much of it might never be recovered, according to people familiar with the investigation. According to WSJ, a person close to the investigation said the findings so far suggest that a "significant amount" of the money could have "vaporized" as a result of chaotic trading at MF Global during the week before the company's Oct. 31 bankruptcy filing. The report says many officials now believe certain employees at MF Global dipped into the "customer segregated account" that the New York company was supposed to keep separate from its own assets -- and then used the money to meet demands for more collateral or to unfreeze assets at banks and other counterparties as they grew more concerned about their financial exposure to MF Global. WSJ also notes investigators are examining other scenarios that have gained traction in recent weeks, such as the possibility that MF Global suffered steep losses on investments made using customer money. Officials investigating the case have looked into whether such investments were appropriate under rules at the time. According to the report, people familiar with the matter said as money poured out of MF Global, much of it likely passed through J.P. Morgan Chase & Co. and other banks where the securities firm had accounts, as well as trade-clearing partners such as Depository Trust & Clearing Corp. and LCH.Clearnet Group Ltd. Those companies have denied being knowingly in possession of any missing MF Global money, and any efforts to make them fill the hole would face daunting hurdles. And because the firms usually were middlemen between MF Global and other counterparties, the funds they touched were then scattered widely, complicating the search. According to the report, James Giddens, the bankruptcy trustee for MF Global's U.S.-based brokerage operation, said of the $6 billion kept at MF Global by farmers, hedge funds, floor traders and other customers when panic erupted over its exposure to European sovereign debt and shaky financial outlook, about $5.3 billion has been located. But hundreds of millions of customer dollars are potentially snarled in litigation with other parts of MF Global, including its U.K. arm, and U.S. officials might never be able to recover those funds. WSJ relates Mr. Giddens believes the shortfall is at least $1.2 billion, though regulators at the Commodity Futures Trading Commission and CME Group Inc., parent of the Chicago Mercantile Exchange and New York Mercantile Exchange, have estimated the total is smaller than that. So far, WSJ notes, Mr. Giddens's office has returned about 72% of the money in customers' U.S. accounts when MF Global filed for bankruptcy at the end of October. Money in accounts outside the U.S. remains frozen, and officials have gotten few big breaks in the case. Mr. Giddens's investigations include about 14 lawyers and 60 forensic accountants. WSJ also reports that on Thursday, a House Financial Services subcommittee will zero in on MF Global's risk-management practices and the role of credit-rating firms in the collapse. Among the people scheduled to testify at the hearing is Michael Roseman, a former chief risk officer at MF Global who raised serious concerns several times in 2010 about the growing bet on European bonds by MF Global CEO Jon S. Corzine. About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/ -- is one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11- 15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. It is easily the largest bankruptcy filing so far this year. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on December 19, 2011. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. U.S. regulators are investigating about $633 million missing from MF Global customer accounts, a person briefed on the matter said Nov. 3, according to Bloomberg News. Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by MF Global Holdings and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MICROTHIN.COM INC: Case Summary & 14 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Microthin.com Inc. 1291 Brummel Ave. Elk Grove Village, IL 60007 Bankruptcy Case No.: 12-02450 Chapter 11 Petition Date: January 25, 2012 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Carol A. Doyle Debtor's Counsel: Chester H. Foster, Jr., Esq. FOSTER & SMITH 3825 W 192nd St. Homewood, IL 60430 Tel: (708) 799-6300 Fax: (708) 799-6339 E-mail: chf@fostersmithlaw.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 14 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb12-02450.pdf The petition was signed by Daniel O'Malley, secretary. MIDWEST ENVIRONMENTAL: Case Summary & 10 Largest Unsec. Creditors ----------------------------------------------------------------- Debtor: Midwest Environmental Services Group, Inc. 343 W. Erie, Ste. 220 Chicago, IL 60654 Bankruptcy Case No.: 12-02569 Chapter 11 Petition Date: January 25, 2012 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Pamela S. Hollis Debtor's Counsel: Kurt J. Kolar, Esq. LAW OFFICE OF KURT J. KOLAR 191 N. Wacker, Suite 2300 Chicago, IL 60606 Tel: (312) 641-3230 Fax: (312) 641-3225 E-mail: kjkolar@kjkolarlaw.com Scheduled Assets: $216,748 Scheduled Liabilities: $1,294,551 A list of the Company's 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb12-02569.pdf The petition was signed by Kimberly Heath, president. MIL 509: Case Summary & 9 Largest Unsecured Creditors ----------------------------------------------------- Debtor: MIL 509 West 212-I, LLC 509 West 212th Street New York, NY 10034 Bankruptcy Case No.: 12-10291 Chapter 11 Petition Date: January 25, 2012 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Judge: Robert E. Gerber Debtor's Counsel: Edward E. Neiger, Esq. NEIGER LLP 151 West 46th Street, 4th Floor New York, NY 10036 Tel: (212) 267-7342 Fax: (212) 918 3427 E-mail: eneiger@neigerllp.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Company?s list of its nine largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nysb12-10291.pdf The petition was signed by Zohar A. Cohen, managing member. MOHEGAN TRIBAL: Files Mohegan Sun Statistical Report ---------------------------------------------------- The Mohegan Tribal Gaming Authority, on Jan. 27, 2012, posted on its Web site its Table Games Statistical Report for Mohegan Sun at Pocono Downs containing statistics relating to gross table games revenues, table games tax and weighted average number of table games. The Table Games 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 Table Games Statistical Report is available for free at: http://is.gd/864Fog About Mohegan Tribal Gaming Authority 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. MONEYGRAM INT'L: David Brown Appointed SVP and CAO -------------------------------------------------- MoneyGram International named David B. Brown as senior vice president and chief accounting officer. The CAO position was created to bring together the various accounting and finance functions under one executive for better efficiencies. In this new role, Brown has global responsibilities for accounting, tax and financial planning & analysis. Prior to joining MoneyGram, Brown was chief financial officer for Dresser, Inc., a GE subsidiary, and led the recent integration of Dresser into various business units of GE's energy division. He has lived and worked in England, Russia and Brazil for notable companies such as Halliburton, LSG Sky Chefs and the Brink's Company. "David is seasoned financial professional whose career includes technical, operational and global experience," said Jim Shields, MoneyGram executive vice president and chief financial officer. "His hands-on leadership, strong technical background and solid understanding of global financial operations will be valuable for leading this new position." Brown earned a B.B.A., Accounting from the University of Texas at Austin and is a certified public accountant in the State of Texas. He sits on the Cubic Energy, Inc. (NYSE:AMEX QBC) board of directors and serves on the compensation committee, as chair of the audit committee and as a financial expert. As Senior Vice President - Chief Accounting Officer of the Company, Mr. Brown will receive an annual base salary of $310,000. Mr. Brown will also be eligible to participate in the Company's equity incentive compensation program and the Company's Performance Bonus Plan, pursuant to which Mr. Brown will be eligible for an annual bonus of 50% of his Base Salary if annual PBP bonus base targets are achieved and 100% of his Base Salary if annual PBP bonus maximum targets are achieved. Annual PBP bonus targets will be established by the Company's Board of Directors. About MoneyGram International MoneyGram International, Inc. (NYSE: MGI) -- http://www.moneygram.com/-- is a global payment services company. The Company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. MoneyGram is a New York Stock Exchange-listed company with 203,000 global money transfer agent locations in 191 countries and territories. The Company's balance sheet at Sept. 30, 2011, showed $5 billion in total assets, $5.10 billion in total liabilities and a $108.16 million total stockholders' deficit. * * * As reported by the TCR on Nov. 15, 2011, Fitch Ratings has affirmed and simultaneously withdrawn the 'B+' Issuer Default Rating (IDR) of MoneyGram International Inc. Fitch has withdrawn the rating for business reasons. The ratings is no longer relevant to the agency's coverage. MOONLIGHT BASIN: Emerges From Bankruptcy; Now Owned by Lehman ------------------------------------------------------------- The effective date of the Second Amended Joint Chapter 11 Plan of Moonlight Basin Ranch L.P. and its debtor affiliates occurred on Jan. 19, 2012. The Chapter 11 Plan provides for the transfer of substantially all of the Debtors' assets to Lehman Brothers Holdings Inc. and Lehman Commercial Paper Inc. in satisfaction to the Lenders' prepetition secured claims. "The sale has been consummated between Moonlight and a Lehman subsidiary is now the new owner of Moonlight Basin," said Moonlight Basin C.O.O. Russ McElyea, NBCmontana.com reported. The ski resort has been in Chapter 11 bankruptcy since 2009. Lehman Brothers loaned money to Moonlight in 2007. "We've obviously been through a difficult process the last couple years and part of the restructuring objective was to reconfigure the business so that we're taking advantage of more revenue opportunities and decreasing our expenses. So we're going to continue doing that into the future," McElyea said in the report. About Moonlight Basin Ennis, Montana-based Moonlight Basin Ranch LP and affiliated Debtors Lone Mountain Food & Beverage, LLC, Moonlight Lodge, LLC, Moonlight Golf, LLC, Moonlight Spa, LLC, Moonlight Basin, LLC, and Moonlight Basin Mezz, LLC, each filed for Chapter 11 bankruptcy protection (Bankr. D. Mont. Case Nos. 09-62327 to 09-62332; 09- 62334) on Nov. 18, 2009. Craig D. Martinson, Esq., and James A. Patten, Esq., who have offices in Billings, Montana, assist the Debtor in its restructuring effort. In its amended schedules, Moonlight Basin Ranch LP disclosed $45,519,089 in assets and $97,407,467 in liabilities as of the petition date. Treeline Springs, LLC, and Mountain Top Construction Company, LLC, filed for Chapter 11 protection (Bankr. D. Mont. Case No. 09-62368, 09-62370) on Nov. 23, 2009. The Debtors, together with their nondebtor affiliates, operate the Moonlight Basin Resort (the "Resort"), a ski and golf community situated on more than 8,000 acres of land at the north face of Lone Mountain in Big Sky, Montana, approximately 50 miles from Bozeman, Montana. The overall development plan for the Resort also contemplates a total of approximately 1,650 residential dwellings. As of Sept. 2, 2011, approximately 340 units/lots have been sold. The Debtors' Chapter 11 Cases have been consolidated for procedural purposes only and are being jointly administered under case number 09-62327 pursuant to Bankruptcy Rule 1015(b). MOORE SORRENTO: Has Fifth Interim Authority to Use Cash Collateral ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Texas authorized, in a fifth interim order, Moore Sorrento, LLC, to use the cash collateral in which Wells Fargo Bank, N.A., asserts an interest. The Debtor's authority to use cash collateral will terminate on March 4, 2012, at 12:00 a.m., Prevailing Central Time. The final hearing to consider the Debtor's request for approval of the motion will be held on Feb. 29, 2012, at 9:30 a.m. As of the Petition Date, Wells Fargo asserts a perfected and senior priority lien on the Wells Fargo Collateral to secure payment of the First Note, as reflected by, among other things, that certain Mortgage (with Power of Sale), Security Agreement, Assignment of Rents and Financing Statement dated Nov. 7, 2007, and that certain Assignment of Rents dated Nov. 7, 2007. The Debtor will use the cash collateral to fund its business operations. The Debtor must not exceed the expenditures by 10% on any line item basis or 10% of the total monthly expenditures, provided that the Debtor will not make any payments to or for the benefit of any "insider". Under the cash collateral order, the Debtor is authorized to: A. use up to $76,562 of Excess Cash during the month of January to make one or more payments to one or more of the T.I. Tenants in order to reduce the unpaid balance of the T.I.s owed by the Debtor to the T.I. Tenants; and B. use up to an additional $76,562 of Excess Cash during the month of January 2012 to make one or more payments to one or more of the T.I. Tenants in order to reduce the unpaid balance of the T.I.s owed by the Debtor to the T.I. Tenants. The Debtor will have sole and complete discretion to determine the portion, if any, of the $76,562 of Excess Cash the Debtor is authorized to expend in both November 2011 and December 2011; provided, however, that the Debtor will not pay to any particular T.I. Tenant an amount exceeding the amount necessary to fully satisfy the unpaid balance of the T.I. owed by the Debtor to T.I. Tenant. As adequate protection for any diminution in value of the lender's collateral, the Debtors will grant Wells Fargo replacement liens on the prepetition Wells Fargo collateral, and property acquired by the Debtor after the Petition Date; and superpriority administrative expense claim. As additional adequate protection the Debtor will make (a) an adequate protection payment to Wells Fargo on Jan. 10, 2012, in the amount of $100,000, and an adequate protection payment to Wells Fargo by Feb. 10, 2012, in the amount of $175,662. The payments will be applied to outstanding interest due under the loans. In addition, on or before the 10th day of each month, the Debtor will deposit escrows for real estate taxes ($23,100) and insurance ($3,300), which amounts will be held by Wells Fargo in reserve accounts pending further order of the Court. A copy of the cash collateral budget is available for free at: http://bankrupt.com/misc/MOORESORRENTO_cashcoll_budget.pdf About Moore Sorrento Hurst, Texas-based Moore Sorrento, LLC, owns real property located in Moore, Oklahoma, commonly known as the Shops at Moore, which the Company operates as a retail shopping center. The center's current 23 tenants offer various goods and services to retail customers. Moore Sorrento filed Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 11-44651) on Aug. 17, 2011. J. Robert Forshey, Esq., and Matthew G. Maben, Esq., at Forshey & Prostok, LLP, in Fort Worth, Tex., serve as the Debtor's counsel. In its schedules, Moore Sorrento disclosed assets of $43,259,900 and liabilities of $42,262,158 as of the Petition Date. As reported in the TCR on Oct. 20, 2011, Moore Sorrento delivered a plan of reorganization and disclosure statement dated Oct. 3, 2011, to the U.S. Bankruptcy Court for the Northern District of Texas. All classes of claims and interests are estimated to have 100% recovery under the Plan. MORGANS HOTEL: MFS Discloses 5.7% Equity Stake ---------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, the Massachusetts Financial Services Company disclosed that, as of Dec. 31, 2011, it beneficially owns 1,762,663 shares of common stock of Morgans Hotel Group Co. representing 5.7% of the shares outstanding. A full-text copy of the filing is available at http://is.gd/7E1rw4 About Morgans Hotel Group Based in New York, Morgans Hotel Group Co. (Nasdaq: MHGC) -- http://www.morganshotelgroup.com/-- is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector. Morgans Hotel Group operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles and South Beach, Clift in San Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group also manages hotels in Isla Verde, Puerto Rico and Playa del Carmen, Mexico. Morgans Hotel Group has other property transactions in various stages of completion, including projects in SoHo, New York and Palm Springs, California. The Company reported a net loss of $83.64 million on $236.37 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $101.60 million on $225.05 million of total revenues during the prior year. The Company also reported a net loss of $70.29 million on $155.29 million of total revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $76.14 million on $171.31 million of total revenues for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $480.80 million in total assets, $557.97 million in total liabilities and a $77.17 million total deficit. MORRIER RANCH: Sec. 341(a) Creditors' Meeting Set for March 8 ------------------------------------------------------------- The U.S. Trustee in Spokane, Washington, will hold a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the Chapter 11 case of Morrier Ranch, Inc., on March 8, 2012, at 2:30 p.m. at Red Lion Hotel Yakima Center, 607 E Yakima Ave, in Yakima, Washington. This is the first meeting of creditors required under Section 341(a) of the U.S. Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Creditors must file proofs of claim in the case by June 6, 2012. Government entities, meanwhile, have until July 16, 2012, to file proofs of claim. Yakima, Washington-based Morrier Ranch, Inc., aka Morrier Hop Storage, filed for Chapter 11 bankruptcy (Bankr. E.D. Wash. Case No. 12-00179) on Jan. 17, 2012. Judge Patricia C. Williams presides over the case, taking the assignment from Judge Frank L. Kurtz. James P. Hurley, Esq., at Hurley & Lara, serves as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in assets, and $1 million to $10 million in debts. The petition was signed by Joseph R. Morrier, president. MOUNTAIN VIEW: Case Summary & 10 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Mountain View Services, Inc. P.O. Box 473 Tryon, NC 28782 Bankruptcy Case No.: 12-40047 Chapter 11 Petition Date: January 25, 2012 Court: U.S. Bankruptcy Court Western District of North Carolina (Shelby) Judge: J. Craig Whitley Debtor's Counsel: David G. Gray, Esq. 81 Central Avenue Asheville, NC 28801 Tel: (828) 254-6315 E-mail: judyhj@wgcdlaw.com Scheduled Assets: $3,334,000 Scheduled Liabilities: $2,964,117 The Company?s list of its 10 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/ncwb12-40047.pdf The petition was signed by Judy B. Brown, president. MT. JORDAN: Emerges from Bankruptcy ----------------------------------- Mt. Jordan Limited Partnership's Amended Plan of Reorganization became effective on Jan. 9, 2012. Pursuant to the Plan, bankruptcy professionals of the Debtor will have 30 days from the Effective Date to file final application for the allowance of compensation for services rendered or reimbursement of expenses incurred through and including the Effective Date. All applications for allowance of administrative claims other than (a) fees and expenses of Professionals, and (b) fees and charges assessed against the Estate will be filed with the Bankruptcy Court not later than 30 days after the Effective Date. About Mt. Jordan Mt. Jordan Limited Partnership, in Draper, Utah, filed for Chapter 11 bankruptcy (Bankr. D. Utah Case No. 10-37050) on Dec. 9, 2010, Judge R. Kimball Mosier presiding. Steven C. Strong, Esq. -- scs@pkhlawyers.com -- at Parsons Kinghorn Harris PC, in Salt Lake City, serves as bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million and debts at $1 million to $10 million. NATURA WORLD: Seeks U.S. Recognition of BIA Case in Canada ---------------------------------------------------------- The foreign representative of Natura World, Inc., filed a Chapter 15 petition in Nevada (Bankr. D. Nev. Case No. 12-10891) to seek recognition of its bankruptcy proceeding in Ontario, Canada. According to court filings, Cambridge, Ontario-based Natura World is operating its business in the ordinary course and administering its reorganization subject to the jurisdiction of the Superior Court of Justice in Bankruptcy and Insolvency in Ontario, Canada. The petitioner is asking the U.S. Bankruptcy Court to enter an order recognizing the voluntary proceeding under the Bankruptcy and Insolvency Act in Canada as a foreign main proceeding under Chapter 15. The Debtor is estimated to have $1 million to $10 million in assets and more than $10 million in liabilities. The Debtor estimates that funds will be available for distribution to unsecured creditors. Ralph Rossdeutscher, president of Natura World, signed the Chapter 15 petition as foreign representative. NATURA WORLD: Chapter 15 Case Summary ------------------------------------- Chapter 15 Petitioner: Ralph Rossdeutscher Chapter 15 Debtor: Natura World, Inc. One Nature Way Cambridge, Ontario, N3C 0A4 Chapter 15 Case No.: 12-10891 Type of Business: The debtor is a manufacturer of mattresses and bedding products based in Canada. Chapter 15 Petition Date: January 26, 2012 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor?s Counsel: Jeanette E. McPherson, Esq. SCHWARTZER & MCPHERSON LAW FIRM 2850 S. Jones Boulevard, #1 Las Vegas, NV 89146 Tel: (702) 228-7590 E-mail: jmcpherson@s-mlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Company did not file a list of creditors together with its petition. NEBRASKA BOOK: Closes Seven Off-Campus Bookstore ------------------------------------------------ Frannie Sprouls at Daily Nebraskan News reports that the Nebraska Book Company closed seven off-campus bookstore locations around the United States on Jan. 5, 2012. The report says out of 138 off-campus bookstore locations, NBC canceled seven leases. According to the report, the seven off-campus stores are: GotUsed Bookstore in Pittsburgh, Penn., The College Store in Akron, Ohio, Spirit Shop in Lubbock, Texas, Traditions Bookstore-Woodstone in College Station, Texas, Chattanooga Books in Chattanooga, Tenn., Madison Textbooks in Madison, Wis., and Florida Book Store Volume III in Gainesville, Fla. These stores remained open for the back- to-school rush in January, the plan being to close in mid-to-late February 2012. About Nebraska Book Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. Lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the Petition Date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. The Official Committee of Unsecured Creditors selected Lowenstein Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow Financial Inc. as financial advisers. Nebraska Book has been unable to confirm a pre-packaged Chapter 11 plan that would have swapped some of the existing debt for new debt, cash and the new stock, due to an inability to secure $250 million in exit financing. The company's exclusive period for proposing a plan is set to expire on Jan. 23. NORTHBAY ENTERPRISES: Case Summary & 12 Largest Unsec Creditors --------------------------------------------------------------- Debtor: Northbay Enterprises, Inc. dba Aqua Terra of Annapolis 164 Main St. Annapolis, MD 21401 Bankruptcy Case No.: 12-11229 Chapter 11 Petition Date: January 25, 2012 Court: United States Bankruptcy Court District of Maryland (Baltimore) Judge: David E. Rice Debtor's Counsel: Joseph Laumann, Esq. LAW OFFICE OF JOSEPH LAUMANN 1160 Spa Rd., Suite 3C Annapolis, MD 21403 Tel: (410) 216-9822 Fax: (410) 216-9804 E-mail: laumannlaw@msn.com Scheduled Assets: $7,085 Scheduled Liabilities: $1,352,820 A list of the Company's 12 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb12-11229.pdf The petition was signed by Ken Chase, owner. ONCOLOGY ASSOCIATES: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Oncology Associates of Ocean County, LLC 512 Lakehurst Road Toms River, NJ 08755 Bankruptcy Case No.: 12-11790 Chapter 11 Petition Date: January 25, 2012 Court: U.S. Bankruptcy Court District of New Jersey (Trenton) Judge: Raymond T. Lyons, Jr. Debtor's Counsel: Joseph Casello, Esq. COLLINS, VELLA & CASELLO 1451 Highway 34 South, Suite 303 Farmingdale, NJ 07727 Tel: (732) 751-1766 Fax: (732) 751-1866 E-mail: jcasello@cvclaw.net 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 Dr. Barbara Schneider, managing member. OPEN SOLUTIONS: Bank Debt Trades at 10% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Open Solutions Inc. is a borrower traded in the secondary market at 90.08 cents- on-the-dollar during the week ended Friday, Jan. 27, 2012, an increase of 2.75 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 212.5 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 18, 2014, and carries Moody's B1 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Open Solutions Headquartered in Glastonbury, Conn., Open Solutions, Inc., is a privately held provider of core data processing and information management software solutions for financial institutions including community banks / thrifts and credit unions. In January 2007, the company was acquired by The Carlyle Group and Providence Equity Partners in a leveraged transaction of roughly $1.4 billion including the assumption of debt. * * * The Troubled Company Reporter, on Nov. 4, 2011, reported that Moody's affirmed Open Solutions, Inc.'s B3 Corporate Family Rating (CFR) and Probability of Default Rating, and the ratings for the company's existing debt. As part of the ratings action, Moody's maintained the negative rating outlook for the company's debt ratings, as the company remains in the midst of a protracted turnaround amid challenging market conditions. The affirmation of Open Solutions' B3 rating reflects Moody's belief that the company's revenue should stabilize during the second half of 2011, and subsequently its revenue and free cash flow should resume organic growth in 2012. Moody's expectations for a rebound in Open Solutions' revenue and free cash flow are mainly supported by the company's improving revenue retention rates, growth in new unit sales and higher backlog of revenue. The negative outlook reflects Open Solutions' challenges in maintaining strong sales performance of its new DNA core platform to replace the declining revenue from its legacy data processing platforms, which the company does not actively market. The TCR reported on Nov. 4, 2011, that Standard & Poor's revised its outlook on Open Solutions, Inc., to negative from stable. "We also affirmed our 'B' corporate credit rating on the company and our 'CCC+' issue rating on its $325 million senior subordinated notes. The '6' recovery rating on the notes remains unchanged," S&P said. "In addition, we lowered the bank loan rating on the company's first-lien credit facilities to 'B+' from 'BB-' and revised the recovery rating to '2' from '1'. The '2' recovery rating indicates substantial (70%-90%) recovery in the event of a payment default," S&P stated. "The outlook revision reflects that revenues have been declining since 2008, restricting the company's ability to reduce debt from current elevated levels," said Standard & Poor's credit analyst Jacob Schlanger. OPPENHEIMER PARTNERS: Cash Collateral Hearing Continued to March 6 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Arizona has continued the hearing set on Oppenheimer Partners Properties LLP's motion for entry of order authoring use of cash collateral. The Final Hearing on the Debtor's Cash Collateral Motion is continued to March 6, 2012, at 1:30 p.m. The Court on Dec. 19, 2011, entered an interim order authorizing the Debtor to use cash collateral. The Interim Order will continue in full force and effect and will terminate on the date of the Final Hearing. About Oppenheimer Partners Oppenheimer Partners Properties LLP owns and operates a 184-unit residential apartment complex in Phoenix, Arizona. Oppenheimer purchased the property in June 2007 for $12 million through a combination of cash and a construction loan totaling $12.4 million. Oppenheimer filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case No. 11-33139) on Dec. 2, 2011. Judge Sarah Sharer Curley presides over the case. Gordon Silver's Robert C. Warnicke, Esq., serves as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Eric Hamburger, managing partner. Oppenheimer said it anticipates filing a plan of reorganization that will pay creditors the full amount of their allowed claims. OPPENHEIMER PARTNERS: U.S. Trustee Unable to Form Committee ----------------------------------------------------------- The United States Trustee said that an official committee under 11 U.S.C. Sec. 1102 has not been appointed in the bankruptcy case of Oppenheimer Partners Properties LLP because an insufficient number of persons holding unsecured claims against the Debtor has expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. Oppenheimer Partners Properties LLP owns and operates a 184-unit residential apartment complex in Phoenix, Arizona. Oppenheimer purchased the property in June 2007 for $12 million through a combination of cash and a construction loan totaling $12.4 million. Oppenheimer filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case No. 11-33139) on Dec. 2, 2011. Judge Sarah Sharer Curley presides over the case. Gordon Silver's Robert C. Warnicke, Esq., at serves as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Eric Hamburger, managing partner. Oppenheimer said it anticipates filing a plan of reorganization that will pay creditors the full amount of their allowed claims. OPPENHEIMER PARTNERS: Court OKs Gordon Silver as Counsel -------------------------------------------------------- Oppenheimer Partners Properties LLP sought and obtained permission from the U.S. Bankruptcy Court for the District of Arizona to employ Gordon Silver's Robert C. Warnicke, Esq. -- phxbknotices@gordonsilver.com -- as the Debtor's counsel. Oppenheimer Partners Properties LLP owns and operates a 184-unit residential apartment complex in Phoenix, Arizona. Oppenheimer purchased the property in June 2007 for $12 million through a combination of cash and a construction loan totaling $12.4 million. Oppenheimer filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case No. 11-33139) on Dec. 2, 2011. Judge Sarah Sharer Curley presides over the case. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Eric Hamburger, managing partner. Oppenheimer said it anticipates filing a plan of reorganization that will pay creditors the full amount of their allowed claims. OVERLAND STORAGE: Amends 5 Million Common Shares Offering --------------------------------------------------------- Overland Storage, Inc., filed with the U.S. Securities and Exchange Commission amendment no. 1 to Form S-3 registration statement relating to the offer and sell of up to an aggregate of 5,000,000 shares of the Company's common stock. The Company will provide the specific terms of the shares of the Company's common stock, including their offering price and the methods by which the Company will sell the shares of its common stock, in supplements to this prospectus. The Company may offer and sell the shares of its common stock on an immediate, continuous or delayed basis directly to investors or through underwriters, dealers or agents, or through a combination of these methods. The Company's common stock is traded on The NASDAQ Capital Market under the symbol "OVRL". On Jan. 25, 2012, the last reported sale price for the Company's common stock on The NASDAQ Capital Market was $2.28 per share. Any shares of the Company's common stock sold pursuant to a prospectus supplement will be listed on The NASDAQ Capital Market. A full-text copy of the amended prospectus is available at: http://is.gd/movupv About Overland Storage San Diego, Calif.-based Overland Storage, Inc. (Nasdaq: OVRL) -- http://www.overlandstorage.com/-- is a global provider of unified data management and data protection solutions designed to enable small and medium enterprises (SMEs), corporate departments and small and medium businesses (SMBs) to anticipate and respond to change. The Company reported a net loss of $14.50 million on $70.19 million of net revenue for the fiscal year ended June 30, 2011, compared with a net loss of $12.96 million on $77.66 million of net revenue during the prior fiscal year. Moss Adams LLP, in San Diego, California, noted that the Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. OVERLAND PARK: Fitch Affirms 'BB' Rating on $65.7MM Rev. Bonds -------------------------------------------------------------- Fitch Ratings takes the following rating action on Overland Park Development Corporation, Kansas (the corporation): -- $65.7 million outstanding (Overland Park convention center hotel project) second tier refunding revenue bonds, series 2007B affirmed at 'BB'. The Rating Outlook is Stable. The bonds are special limited obligations payable solely from a subordinate lien on the net operating revenues of the convention hotel, a 4.5% citywide hotel tax, subject to annual appropriation, and a cash funded debt service reserve funded to the IRS standard. The bonds also have a subordinate lien on the leasehold interest of the convention hotel. The corporation is a not-for-profit corporation created for the sole purpose of constructing and owning a 412-room convention hotel located adjacent to the city's convention center. The corporation board is comprised of six members of the city's governing body, appointed by the mayor and approved by the city council. The convention hotel opened in December 2002 and is operated as a Sheraton hotel under a hotel operating agreement with Starwood Hotels & Resort that expires in November 2022. The city's convention center opened in 2002 and primarily hosts regional business and community needs in 60,000 square feet of exhibit space and a 25,000 square foot ballroom. Fitch's rating is based primarily on the coverage generated from the 4.5% citywide hotel tax imposed upon the roughly 5,100 available hotel rooms located within the city, although the citywide hotel tax technically supplements the subordinate pledge of net revenues from the convention hotel. A citywide hotel tax has been levied since 1982 and is collected by the state and remitted to the city quarterly minus a 2% collection fee. Overland Park has covenanted to budget sufficient citywide hotel tax revenues to pay the next year's debt service on the bonds pursuant to a debt service support agreement between the city and the corporation. However, the allocation of hotel tax revenues is subject to annual appropriation and is capped at amounts received solely from the 4.5% citywide hotel tax. Once the city appropriates funds, the obligation is absolute and unconditional without abatement, deduction or set-off and counterclaim. The commitment of citywide hotel tax revenues can be released if debt service coverage from net revenues of the convention hotel exceeds a certain threshold; however, these revenues would be reinstated if coverage subsequently fell below 1.75x at any time through maturity. Other legal provisions, which only provide meaningful credit strength in the unlikely event that the hotel tax commitment is released, include the crediting of all convention hotel revenues under a lockbox agreement with the trustee, and a 1.05x rate covenant. The citywide hotel tax experienced a compounded annual growth rate of 6.1% between 1994 and 2006, and thus the hotel tax was reasonably forecasted to annually increase 3.7% between 2007 and 2018. Based on the 2007 forecast, available hotel tax revenues were projected to fully cover annual debt service at least 1.4x throughout the life of the bonds. However, due to the severity of the economic recession, actual hotel tax revenues have been at least 26% below projections in each of the past three years. Actual citywide hotel tax revenues in 2009 fell 17% from the year prior, declined 1% in 2010, and increased 11% in 2011. As a result, available citywide hotel tax revenues in 2009, 2010, and 2011 covered annual debt service 1.0x, 0.9x, and 1.0x respectively. Net operating revenues from the convention hotel and other balances have enhanced debt service coverage for the past three years. Combined hotel tax and net operating revenues for 2009, 2010, and 2011 (estimated) covered annual debt service 1.1x, 1.0x, and 1.3x respectively. However, 2011 citywide hotel revenues cover maximum annual debt service maturing in 2032 by only 0.5x because of the ascending debt service structure. The bonds are also supported by a cash funded debt service reserve totaling $6.56 million as of December 31, 2011. As a stress test, if estimated 2011 hotel tax revenues were held flat and no revenues were received from the net operating revenue pledge, the debt service reserve would be exhausted by 2020. Based on Fitch's calculations, 2.9% annual growth in citywide hotel tax revenues plus amounts in the debt service reserve will be necessary to sufficiently satisfy debt service in all years. Overland Park, the second largest city in the state of Kansas, is an affluent community located within the Kansas City metropolitan region that benefits from a deep and diverse local economy, an extensive transportation network, available land, and a well- educated workforce. Several Fortune 500 companies are located within the city. The financial services and professional and business service sectors account for a greater percentage of total countywide employment compared to the national average. The city's 2010 population of 173,372 is up 16% since 2000, which continues a multi-decade growth trend. Wealth levels are above average at 150% and 142% of the state and national averages, respectively. The city's November 2011 unemployment rate of 5.5% compared favorably to the national average. The city's low unemployment rate is reflective of the city's educated workforce, of which 55% attained higher education versus 27% nationally. Citywide hotel occupancy historically has been driven by individual and group business travelers. Local demand for hotels wavered somewhat in recent years due to both the protracted economic recession and Sprint Nextel Corporation's reduced presence within the city. However, as a positive development, several other major corporations have sublet space on the Sprint campus, which has led to increased hotel demand. Citywide hotel occupancy increased 6.4% in 2011 compared to the year prior, and the average daily room rate is up 2.6%. PACIFIC DEVELOPMENT: Asks Court to Decide on Properties' Value -------------------------------------------------------------- Pacific Development, L.C., asks the U.S. Bankruptcy Court for the District of Utah to determine the valuation of the Payson Commercial Property and Heritage Village Subdivision. The Debtor needs to determine the fair market value of its Heritage Village Property as part of an ongoing proceedings regarding Central Bank's foreclosure on the same. As reported in the Troubled Company Reporter on July 21, 2011, Central Bank provided postpetition funding to construct four homes at a time for pre-sold contracts to qualified buyers. The Debtor's Plan provides for the continuation of the development and construction of Heritage Village, its residential development in Payson, Utah. The parties dispute the values of the properties and have obtained appraisals to present to the Court for determination. To resolve the dispute, Central Bank, Pacific Development and the Official Committee of Unsecured Creditors agree that: (a) Central Bank will be allowed the right to continue with and conclude its non-judicial foreclosure proceedings against the Payson Commercial Property and the Heritage Village Subdivision; (b) the successful bid amount from the non-judicial foreclosure proceedings of the Subject Property will be applied in full satisfaction of the loan obligation, which obligation is secured by the subject Property; (c) after the application of the successful bid amount from the non-judicial foreclosure proceedings of the Subject Property, Central Bank waives any and all deficiency claims against the Debtor, Debtor's property or any guarantors pertaining to the loan obligations. About Pacific Development Provo, Utah-based Pacific Development, L.C., is the obligor on and owner of various real estate development loans for properties primarily located in Payson, Salem, Springville and Harrisburg, Utah. The Company filed for Chapter 11 protection (Bankr. D. Utah Case No. 10-22754) on March 10, 2010. Blake D. Miller, Esq., and James W. Anderson, Esq., at Miller Guymon, PC, in Salt Lake City, represent the Debtor in its restructuring effort. The Debtor estimated its assets at $10 million to $50 million and debts at $1 million to $10 million. David P. Billings, Esq., and J. Thomas Beckett, Esq., at Parsons, Behle & Latimer, P.C., in Salt Lake City, represent the Official Committee of Unsecured Creditors. PATRIOT BANK: Closed; First Resource Bank Assumes All Deposits -------------------------------------------------------------- Patriot Bank Minnesota of Forest Lake, Minn., was closed on Jan. 27, 2012, by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Resource Bank of Savage, Minn., to assume all of the deposits of Patriot Bank Minnesota. The three branches of Patriot Bank Minnesota will reopen during normal business hours as branches of First Resource Bank. Depositors of Patriot Bank Minnesota will automatically become depositors of First Resource Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Patriot Bank Minnesota should continue to use their existing branch until they receive notice from First Resource Bank that it has completed systems changes to allow other First Resource Bank branches to process their accounts as well. As of Sept. 30, 2011, Patriot Bank Minnesota had around $111.3 million in total assets and $108.3 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Resource Bank agreed to purchase essentially all of the assets. The FDIC and First Resource Bank entered into a loss-share transaction on $79.4 million of Patriot Bank Minnesota's assets. First Resource Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html. Customers with questions about the transaction should call the FDIC toll-free at 1-800-450-5417. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/patriot-mn.html. The FDIC estimates that the cost to the Deposit Insurance Fund will be $32.6 million. Compared to other alternatives, First Resource Bank's acquisition was the least costly resolution for the FDIC's DIF. Patriot Bank Minnesota is the sixth FDIC-insured institution to fail in the nation this year, and the first in Minnesota. The last FDIC-insured institution closed in the state was The Riverbank of Wyoming, Minn., on Oct. 7, 2011. PATRIOT NATIONAL: To Offer 3-Mil. Shares Under 2012 Stock Plan -------------------------------------------------------------- Patriot National Bancorp, Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 registering 3 million shares of common stock issuable under the Company's 2012 Stock Plan. The proposed maximum offering price is $5.19 million. A full-text copy of the prospectus is available at http://is.gd/Ovyess About Patriot National Bancorp Stamford, Conn.-based Patriot National Bancorp, Inc. (NASDAQ: PNBK) is the parent company of Patriot National Bank, a national banking association headquartered in Stamford, Fairfield County, in Connecticut. Patriot National Bank has 19 full service branches, 16 in Connecticut and three in New York. The Company reported a net loss of $15.40 million on $35.61 million of total interest and dividend income for the year ended Dec. 31, 2010, compared with a net loss of $23.88 million on $42.97 million of total interest and dividend income during the prior year. The Company also reported a net loss of $15.90 million on $21.44 million of total interest and dividend income for the nine months ended Sept. 30, 2011, compared with a net loss of $11.32 million on $27.56 million of total interest and dividend income for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $628.42 million in total assets, $577.75 million in total liabilities and $50.67 million in total shareholders' equity. PELICAN ISLES: Has Access to CDT Cash Collateral Until Feb. 28 -------------------------------------------------------------- In a third interim agreed order dated Dec. 28, 2011, the U.S. Bankruptcy Court for the Southern District of Florida extended Pelican Isles Limited Partnership's authorization to use cash collateral of CDT Mortgage, LLC, through 5:00 p.m. of Feb. 28, 2012, upon the same terms and conditions as this Court's initial Interim Order (ECF #40), subject to the same monthly budget as the Second Interim Order (ECF #62), modified to allow payment in December 2011 to Bates Exterminating Company, in the amount of $2,250. A further hearing will be held at 1:30 p.m. on Feb. 23, 2012. Deadline for filing and service of any objection to the continuing use of cash collateral will be 7 days prior to the scheduled hearing date. A copy of ECF #62 is available for free at: http://bankrupt.com/misc/pelicanisles.dkt62.pdf A copy of ECF #40 is available for free at: http://bankrupt.com/misc/pelicanisles.dkt40.pdf About Pelican Isles Pelican Isles Limited Partnership, dba Pelican Isles Apartments and Pelican Isles owns and operates a 150-unit affordable rental community, built in 2005, which is located in Sebastian, Florida. The Apartment Complex provides tax-assisted low income housing to residents in the Sebastian, Florida area. The second real property owned by the Debtor is a parcel of undeveloped land, which is adjacent to the Apartment Complex. The Company filed for Chapter 11 protection (Bankr. S.D. Fla. Case No. 11-38544) on Oct. 14, 2011, estimating between $10 million and $50 million in assets and $1 million and $10 million in debts. Ronald G. Neiwirth, Esq., at Boyd & Jenerette, P.A, in Miami, Fla., serves as bankruptcy counsel. The petition was signed by John Corbett, President of The Partnership, Inc., the general partner of the Debtor. PENINSULA HOSPITAL: Can Hire Alvarez & Marsal as Financial Advisor ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of New York authorized Peninsula Hospital Center, et al., to employ Alvarez & Marsal Healthcare Industry Group LLC as their financial advisors. The Troubled Company Reporter reported on Dec. 12, 2011, that A&M will provide assistance to the Debtors with respect to management of the overall restructuring process, the development of ongoing business and financial plans and supporting restructuring negotiations among the Debtors, their advisors and their creditors with respect to an overall strategy for the Chapter 11 cases. A&M will receive compensation of $64,000 for the period Sept. 19, 2011, to Sept. 30. The hourly rates of A&M's personnel are: Managing Directors $600 - $850 Directors and Senior Directors $375 - $600 Associates and Senior Associates $275 - $375 Analysts $200 - $275 Commencing Oct. 16, 2011, A&M's monthly compensation will be capped at $125,000 per calendar month which will be pro rated for partial calendar months. A&M received $125,000 as a retainer in connection with preparing for and conducting the filing of the Chapter 11 cases. 90 days prior to the bankruptcy filing, A&M received retainers totaling $175,000 for the services performed or to be performed for the Debtors. To the best of the Debtors' knowledge, A&M is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody serves as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. Richard J. McCord, Esq., of Certilman Balin, & Hyman, LLP, has been appointed by the Court as examiner in the Debtors' cases. He is tasked to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. PENINSULA HOSPITAL: Can Access 1199 Funds' Cash Until Jan. 31 ------------------------------------------------------------- The Hon. Elizabeth S. Stong of the U.S. Bankruptcy Court for the Eastern District of New York, in a sixth interim order, authorized Peninsula Hospital Center, et al., to use cash collateral of 1199 SEIU National Benefit Fund for Health and Human Services Employees, 1199SEIU Health Care Employees Pension Fund, League/1199SEIU Training and Upgrading Fund, 1199SEIU Employer Child Care Fund, and League/1199SEIU Health Care Industry Job Security Fund -- 1199 Funds -- until January 31, 2012. The Court ordered that: (a) The Debtors will pay the sum of $236,262.66 to the 1199 Funds on or before Jan. 31, 2012; (b) The balance of the amounts owed to the 1199 Funds for the postpetition period due Dec. 31, 2011, will be treated as an allowed administrative expense claim of the 1199 Funds; and (c) The Debtors will be authorized on consent to use the Cash Collateral of the 1199 Funds and Revival commencing as of Dec. 30, 2011 through and including Jan. 31, 2012. Judge Stong ruled that the Debtors will not use, control, or have any property interest in, any of these accounts or any funds therein: (i) the account referenced in that certain Assignment of Deposit Account between PHC and JPMorgan Chase Bank, N.A., dated Jan. 1, 2009; (ii) the trust funds and accounts established and created pursuant to that certain Indenture of Trust between New York City Industrial Development Agency and United States Trust Company of New York (as Trustee) dated December 1, 1998; and (iii) any other similar collateral accounts, trust funds or trust accounts established in connection with the Indenture or any related agreements, including without limitation the following JPM account numbers: 777-138387 and 777-138379. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody serves as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. Richard J. McCord, Esq., of Certilman Balin, & Hyman, LLP, has been appointed by the Court as examiner in the Debtors' cases. He is tasked to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. PENINSULA HOSPITAL: Examiner Taps Certilman Balin as Counsel ------------------------------------------------------------ Richard J. McCord, Esq., as Chapter 11 Examiner for Peninsula Hospital Center, et al., seeks permission from the U.S. Bankruptcy Court for the Eastern District of New York to employ the law firm of Certilman Balin Adler & Hyman LLP as his counsel, nunc pro tunc to Dec. 16, 2011. Mr. McCord is also a member of the law firm. According to Mr. McCord, M. Allan Hyman, Esq., Jaspreet S. Mayall, Esq., Carol A. Glick, Esq., and Robert W. Griswold, Esq., as members of Certilman Balin, have had extensive experience in bankruptcy-related proceedings. Mr. McCord wants the firm to assist him in investigating: (i) the Debtors' prepetition relationship with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co., LLC, and any affiliates; (ii) any current transactions between the Debtors and the Revival Entities; (iii) the connections and relationships between the Revival Entities and the Debtors' current management and boards of directors in the context of whether current management and the boards of directors can properly manage the Debtors and exercise their duties under the Bankruptcy Code and applicable non-bankruptcy law; and (iv) other matters that the Court deems appropriate upon proper application. Mr. Hyman assures the Court that his firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Certilman Balin has been advised that the fees and expenses of the Examiner and his professionals have been capped at $200,000. Compensation to the firm will be made upon proper application to the Bankruptcy Court. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody serves as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. Richard J. McCord, Esq., of Certilman Balin, & Hyman, LLP, has been appointed by the Court as examiner in the Debtors' cases. He is tasked to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. PENINSULA HOSPITAL: Examiner Taps EisnerAmper LLP as Accountant --------------------------------------------------------------- Richard J. McCord, Esq., as Chapter 11 Examiner for Peninsula Hospital Center, et al., seeks permission from the U.S. Bankruptcy Court for the Eastern District of New York to employ EisnerAmper LLP as his accountant, nunc pro tunc to Dec. 16, 2011, for purposes of investigating: (i) the Debtors' prepetition relationship with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co., LLC, and any affiliates; (ii) any current transactions between the Debtors and the Revival Entities; (iii) the connections and relationships between the Revival Entities and the Debtors' current management and boards of directors in the context of whether current management and the boards of directors can properly manage the Debtors and exercise their duties under the Bankruptcy Code and applicable non-bankruptcy law; and (iv) other matters that the Court deems appropriate upon proper application. David Ringer, a member of EisnerAmper LLP, discloses the normal billing rates for his firm are: Partners $410 - $550 Director and Senior Managers $310 - $405 Managers $285 - $305 Seniors $230 - $280 Staff assistance/paraprofessionals $125 - $230 Mr. Ringer assures the Court his firm represents no interest adverse to that of the Peninsula Debtors or unsecured creditors in the case. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody serves as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. Richard J. McCord, Esq., of Certilman Balin, & Hyman, LLP, has been appointed by the Court as examiner in the Debtors' cases. He is tasked to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. PENINSULA HOSPITAL: Examiner Taps Giambalvo Stalzer as Accountant ----------------------------------------------------------------- Richard J. McCord, Esq., as Chapter 11 Examiner for Peninsula Hospital Center, et al., seeks permission from the U.S. Bankruptcy Court for the Eastern District of New York to employ Giambalvo, Stalzer & Company, CPAs, P.C., as accountants, nunc pro tunc to Jan. 11, 2012. The Examiner wants Giambalvo Stalzer to: (i) review cash flow projections and operating reports; (ii) investigate payments made between the Debtor and Revival Home Health Care, Revival Acquisitions Group LLC and Revival Funding Co., LLC; (iii) review transactions between related companies and possible related party transactions; (iv) analyze various financial and loan agreements; (v) review appraisals; (vi) attend meetings with the Examiner and parties; and (vii) investigate other matters that the Court deems appropriate upon proper application. Mr. McCord explains that the retention of an accountant is needed to assist in his charge as Examiner in conducting an analysis of the financial documents to establish that the Debtor can successfully emerge from Chapter 11 for the benefit of creditors. Mr. Giambalvo, president of the firm, discloses that their normal hourly rates are: Principals $350 Director and Senior Manager $250 Manager $225 Senior $200 Staff Accountant $150 Staff Assistants and Professionals $100 Mr. Giambalvo assures the Court his firm represents no interest adverse to that of the Peninsula Debtors, unsecured creditors or its shareholders and officers in the case. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody serves as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. Richard J. McCord, Esq., of Certilman Balin, & Hyman, LLP, has been appointed by the Court as examiner in the Debtors' cases. He is tasked to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. PETRA FUND: Files Schedules of Assets and Liabilities ----------------------------------------------------- Petra Fund REIT Corp. filed with the U.S. Bankruptcy Court for the Southern District of New York its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ---------- ----------- A. Real Property $0 B. Personal Property $4,438,305 C. Property Claimed as Exempt D. Creditors Holding Secured Claims Unknown E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $123,663,104 ----------- ------------ TOTAL $4,438,305 $123,663,104 A copy of Petra Fund REIT Corp.'s schedules is available for free at http://bankrupt.com/misc/PETRA_FUND_sal.pdf About Petra Fund Petra Fund REIT Corp. and its affiliates are in the business of originating, investing in, structuring and trading loans secured by commercial real-estate. Petra Offshore Fund LP is the parent. Petra Fund and Petra Offshore sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 10-15500) on Oct. 20, 2010, and are represented by Shaya M. Berger, Esq., and Brian E. Goldberg, Esq., at Dickstein Shapiro, LLP. At the time of the filing, each of the Debtor estimated its assets at less than $10 million and its debts at more than $100 million. Petra Fund blamed its Chapter 11 filing on the extraordinary and unprecedented collapse of the credit and commercial real estate markets, which caused a mark-to-market value of its assets to plummet. The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on Feb. 3, 2012, at 11:00 a.m. to consider confirmation of Petra Fund Reit Corp., et al.'s Plan of Reorganization dated as of Dec. 19, 2011. PHIBRO ANIMAL: S&P Affirms 'B-' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Ridgefield Park, N.J.-based Phibro Animal Health Corp. to stable from negative. "At the same time, we affirmed our 'B-' corporate credit and issue-level ratings," S&P said. "Over the next year we expect Phibro to generate mid- to high- single-digit organic growth based on higher volumes of key products generated by an improved competitive position and growing demand for animal protein," said Standard & Poor's credit analyst Michael Berrian. "We also believe Phibro will be able to at least maintain margins in the 10%-11% range, which we consider low, but characteristic of the commodity-like nature of Phibro's core animal health business. Given that a key product is produced in Brazil, our margin expectations reflect our expectation that foreign currency movements will continue to remain favorable to Phibro. We note, however, that adverse foreign currency movements and prospects for a changing competitive landscape could disrupt our margin expectations." "The rating on Phibro primarily reflect a 'highly leveraged' (as we define the term) financial risk profile that reflects leverage that we believe will be sustained at more than 5x over the next year. In our opinion, Phibro has a 'vulnerable' (as we define the term) business risk profile with a narrow focus in the niche worldwide animal feed additives industry and the presence of larger, more diversified competitors," S&P said. "Phibro's 'highly leveraged' financial risk profile primarily reflects adjusted leverage that we believe will be sustained at more than 5x over the next year and funds from operations (FFO) to total debt that will be about 10%. We believe that volume growth and a stable competitive environment will contribute to modest EBITDA expansion. We believe that this is the primary reason adjusted leverage could decline in the near-term from over 6x. Prospects for additional deleveraging in 2013 appear favorable as continued free cash flow generation will help Phibro to repay upcoming debt maturities in that year. At Sept. 30, 2011, adjusted leverage was more than 6x and FFO to total debt was 8%. Leverage increased following $300 million of senior secured note issuances since 2010 (to refinance existing debt and to pay a $50 million dividend) and lower than expected EBITDA following a challenging business environment in fiscal 2011," S&P said. "Phibro's 'vulnerable' business risk profile reflects an established but concentrated position in the niche worldwide animal feed additives industry. This vulnerability was highlighted in fiscal 2011 when foreign exchange and competitive pressures combined to result in lower than expected EBITDA. Phibro's manufacturing in Brazil exposes the company to foreign currency swings while competition from larger and more diversified companies can limit pricing flexibility. Phibro is subject to fluctuations in demand and cost of raw materials, which is tied to volatility in commodities pricing. Historically, Phibro has been able to pass along a portion of its raw-material cost increases in the form of higher pricing, which insulates them from commodity price risk. However, competition from larger players that can more readily absorb lower prices can limit Phibro's pricing flexibility beyond those contractual raw material cost increases. This contributes to our assumption that near-term, mid single digit, revenue growth is predicated on higher volumes, not price increases," S&P said. PINNACLE AIRLINES: Obtains Pact to Defer Payment of $16-Mil. Debt ----------------------------------------------------------------- Pinnacle Airlines Corp. entered into an agreement to postpone payment of $16.6 million of debt until April 2, 2012. Export Development Canada, as Loan Trustee, agreed to defer principal and interest payment due during the period from Jan. 14, 2012, through and including March 31, 2012, under the Trust Indenture and Security Agreements. EDC agreed to waive any resulting default or event of default under the Security Agreements and forbear from taking any enforcement action in connection with such deferral and waiver. As reported by the TCR on Jan. 24, 2011, the Company informed its employees that its financial position continues to worsen at an alarming rate and that it needs to act immediately. "This is a positive development and provides more time to work with our partners to identify appropriate concessions or contract modifications that get us closer to our goal of improving liquidity and profitability," Pinnacle spokesman Joe Williams said, according to Memphis Commercial Appeal. A full-text copy of the Agreement is available for free at: http://is.gd/eIPd8X About Pinnacle Airlines Corp. Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/-- a $1 billion airline holding company with 7,800 employees, is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc. Flying as Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corp. operating subsidiaries operate 199 regional jets and 80 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize. Corporate offices are located in Memphis, Tenn., and hub operations are located at 11 major U.S. airports. The Company reported $8.81 million on $938.05 million of total operating revenue for the nine months ended Sept. 30, 2011, compared with net income of $17.02 million on $729.13 million of total operating revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $1.53 billion in total assets, $1.42 billion in total liabilities and $112.31 million in total stockholders' equity. POTOMAC SUPPLY: Seeks to Use Regions Bank Cash Collateral --------------------------------------------------------- Potomac Supply Corporation seeks Bankruptcy Court permission to use cash collateral of Regions Bank. Potomac said it will need to use cash that may comprise cash collateral within the meaning of section 363(a) of the Bankruptcy Code to, among other things, fund day-to-day operations and maintain and preserve the value of its assets. Potomac said based upon its own appraisals, Regions is substantially oversecured and its equity cushion is adequate protection. Regions is owed $17,344,159. According to appraisals commissioned by Regions in 2011 (of the Plant, the Equipment and certain real estate) and current estimates by Potomac (of its inventory and accounts receivable), its collateral is valued at $30,860,000, comprising (i) $17,500,000 for the Plant; (ii) $4,260,000 for the Equipment; (iii) $5,000,000 for the Inventory; (iv) $2,000,000 for the accounts receivable; and (v) $2,100,000 for Additional Encumbered Real Estate. Potomac said does not concede the extent, priority or validity of any of Regions' claims and reserves the right to challenge, on any basis, any and all of Regions' claims. Potomac's principal assets (and corresponding values) that do not serve as collateral for the Bank include 22 tracts of property -- timberland, developed and undeveloped commercial and residential real estate -- with a total value of roughly $7,000,000. About Potomac Supply Corp. Kinsale, Virginia-based building-supply manufacturer Potomac Supply Corporation filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 12-30347) on Jan. 20, 2012, estimating assets and debts of $10 million to $50 million. Potomac in mid-January announced it was suspending manufacturing operations in Kinsale after its lender refused to provide financing without additional investment. Judge Douglas O. Tice, Jr. presides over the case. Patrick J. Potter, Esq., at Pillsbury Winthrop Shaw Pittman LLP, serves as the Debtor's bankruptcy counsel. The petition was signed by William T. Carden, Jr., chief executive officer. PROFESSIONAL VET: Ends Duty to File Reports Under Exchange Act -------------------------------------------------------------- Professional Veterinary Products, Ltd. filed on Jan. 26, 2012, on Form 15-12G, a notice of termination of duty to file reports pursuant to Section 12(g) of the Securities Exchange Act of 1934. The class of securities covered by this Form is the Common Stock, par value $1.00 per share, of Professional Veterinary Products, Ltd. A copy of the Form 15-12G is available for free at: http://is.gd/9vVTrk About Professional Veterinary Products Professional Veterinary Products, Ltd. -- http://www.pvpl.com/-- operates a veterinary supply company owned and managed by veterinarians. Professional Veterinary sought Chapter 11 protection from creditors (Bankr. D. Neb. Case No. 10-82436) on Aug. 20, 2010, in Omaha, Nebraska. Affiliates ProConn, LLC, and Exact Logistics, LLC, also filed for Chapter 11. The Company reported $89.79 million in total assets, $78.23 million in total liabilities, and $11.56 million in stockholders' equity at April 30, 2010. The Company hired McGrath North Mullin & Kratz PC LLC, as bankruptcy counsel and Alliance Management as financial and restructuring advisors. As reported in the TCR on Dec. 20, 2011, the Bankruptcy Court confirmed the First Amended Joint Chapter 11 Plan of Liquidation proposed by the Debtors and the Official Committee of Unsecured Creditors. The effective date of the Plan is Jan. 26, 2012. The Bankruptcy Court confirmed the Debtors' and the Committee's First Amended Joint Disclosure Statement on Nov. 1, 2011. PWPB LLC: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------ Debtor: PWPB, LLC 1761 Latham Road West Palm Beach, FL 33409 Bankruptcy Case No.: 12-11903 Chapter 11 Petition Date: January 25, 2012 Court: United States Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Erik P. Kimball Debtor's Counsel: Brett A. Elam, Esq. THE LAW OFFICES OF BRETT A. ELAM, P.A. 105 S Narcissus Ave # 802 West Palm Beach, FL 33401 Tel: (561) 833-1113 E-mail: belam@brettelamlaw.com Scheduled Assets: $484,317 Scheduled Liabilities: $1,425,000 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb12-11903.pdf The petition was signed by Stephen Lavine, managing member. R.E. LOANS: Court Extends Plan Filing Period Until Feb. 1 --------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas has extended the exclusive period in which only R.E. Loans, LLC, et al., may file a plan under Sections 1121(b) and 1121(c)(2) of the Bankruptcy Code to, and including, Feb. 1, 2012. As reported in the TCR on Jan. 10, 2012, the Debtors related that they still have to finalize the plan discussions with the Official Committee of Noteholders and Wells Fargo Capital Finance, LLC, the Debtors' prepetition and debtor-in-possession financing lender. About R.E. Loans R.E. Loans LLC was, for many years, in the business of providing financing to home builders and developers of real property. R.E. Future LLC and Capital Salvage own the real property obtained following foreclosure proceedings initiated by R.E. Loans against its borrowers. R.E. Loans is the sole shareholder of Capital Salvage and the sole member of R.E. Future. B-4 Partners LLC is the sole member of R.E. Loans. As a result of the multiple defaults by R.E. Loans' borrowers, R.E. Loans has transitioned from being a lender to becoming a property management company. Lafayette, California-based R.E. Loans, R.E. Future and Capital Salvage filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case Nos. 11-35865, 11-35868 and 11-35869) on Sept. 13, 2011. Judge Barbara J. Houser presides over the case. Stutman, Treister & Glatt Professional Corporation, in Los Angeles, and Gardere, Wynne Sewell LLP, in Dallas, represent the Debtors as counsel. James A. Weissenborn at Mackinac serves as R.E. Loans' chief restructuring officer. The Debtors tapped Hines Smith Carder as their litigation and outside general counsel. The Debtors tapped Alixpartners, LLP as noticing agent, and Latham & Watkins LLP as special counsel in real estate matters. R.E. Loans disclosed $713,622,015 in assets and $886,002,786 in liabilities as of the Chapter 11 filing. William T. Neary, the U.S. Trustee for Region 6, appointed 12 members to the Official Committee of Noteholders of R.E. Loans LLC. Akin Gump Strauss Hauer & Feld LLP, in Dallas, represents the Committee as counsel. READER'S DIGEST: S&P Affirms 'CCC+' Rating; Outlook Negative ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its corporate credit rating on Reader's Digest Assn. Inc. at 'CCC+'. The rating outlook is negative. "At the same time, we placed our 'CCC' rating on the company's $525 million senior secured notes on CreditWatch with positive implications, reflecting the possibility that we could positively revise the '5' recovery rating on this debt, and thereby raise the issue rating as per our notching criteria, if the company uses the proceeds to pay down debt. The rating action follows Reader's Digest's announcement that it has entered into an agreement to sell Allrecipes.com for $175 million. The company expects the transaction to close in the first quarter. Following the transaction close, the company will be required to repay the $45 million secured term loan due 2013," S&P said. S&P's 'CCC+' rating on Reader's Digest reflects its expectations that: The company will continue facing secular pressures in its publications business; Its publishing business will remain highly competitive; There are minimal growth prospects in its direct marketing business; and Its direct marketing model -- selling music, videos, and books -- will become increasingly uncompetitive. "The rating also reflects the dated image of the Reader's Digest flagship magazine and its burdensome operating cost structure. These considerations support our view of the business risk profile as 'vulnerable' and our expectation that sales will continue to decline. We consider the company's financial profile to be 'highly leveraged,' given the company's significant discretionary cash flow deficits and debt burden," S&P said. "In our base-case scenario, we expect that the company will report full-year 2011 revenues, excluding fair value adjustments and currency exchange movements, declining at a high-single-digit to low-double-digit percentage rate because of weak consumer demand and sharp revenue declines in the Lifestyles and Entertainment Direct (LED) segment. We believe that, despite the roll-off of higher marketing expense in the first half, full-year EBITDA could decline by over 30%. In our 2012 base-case scenario, we believe that revenues could decline at a double-digit rate because of the impact of divestitures, a weak economy, anemic consumer demand in Europe and the U.S., and secular pressures on the business. While the company has sold 'Everyday with Rachel Ray,' which was losing money, and plans to manage down losses at its LED business, we believe that EBITDA could continue to decline because of the company's burdensome cost structure and our expectation of high restructuring costs. However, we believe that negative discretionary cash flow could moderate because of the roll-off of high severance costs and one-time bonuses," S&P said. "In our opinion, there are significant uncertainties and limited visibility surrounding Reader's Digest's revenues and earnings prospects given its declining businesses and ongoing restructuring requirements," said Standard & Poor's credit analyst Minesh Patel. "These risks exist despite the Reader's Digest's new 'Master Brands' business strategy, which focuses the company on its core brands, the divestitures of underperforming businesses, and cost-reduction initiatives." REALOGY CORP: Prices Offerings of Two Senior Secured Notes ---------------------------------------------------------- Realogy Corporation priced $593 million aggregate principal amount of 7.625% senior secured first lien notes due 2020 and $325 million aggregate principal amount of 9.000% senior secured notes due 2020 in connection with its previously announced private offering exempt from the registration requirements of the Securities Act of 1933, as amended. The closing of the private offering is expected to occur on Feb. 2, 2012, subject to customary closing conditions. Each series of Notes will be guaranteed on a senior secured basis by Domus Intermediate Holdings Corp., the Company's parent, and each domestic subsidiary of the Company that is a guarantor under its senior secured credit facility and certain of its outstanding securities. Each series of Notes will also be guaranteed by Domus Holdings Corp., the Company's indirect parent, on an unsecured senior subordinated basis. Each series of Notes will be secured by substantially the same collateral as the Company's existing first lien obligations under its senior secured credit facility. The priority of the collateral liens securing the First Lien Notes will be (i) equal to the collateral liens securing the Company's first lien obligations under its senior secured credit facility and (ii) senior to the collateral liens securing the Company's other secured obligations that are not secured by a first priority lien, including the New First and a Half Lien Notes and the Company's second lien obligations under its senior secured credit facility. The priority of the collateral liens securing the New First and a Half Lien Notes will be (i) junior to the collateral liens securing the Company's first lien obligations under its senior secured credit facility and the First Lien Notes and (ii) senior to the collateral liens securing the Company''s second lien obligations under its senior secured credit facility. The Notes will not be registered under the Securities Act or any state securities law and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and applicable state securities laws. The Notes will be offered in the United States only to qualified institutional buyers under Rule 144A of the Securities Act and outside the United States under Regulation S of the Securities Act. The Company will use proceeds from the offering of the Notes of approximately $918 million, (i) to prepay $629 million of its first lien term loan borrowings under its senior secured credit facility which are due to mature in October 2013, (ii) to repay all of the $133 million in outstanding borrowings under the portion of its revolving credit facility which is due to mature in April 2013, and (iii) to repay $156 million of the outstanding borrowings under the portion of its revolving credit facility which is due to mature in April 2016. In conjunction with the repayments described in clauses (ii) and (iii) of $289 million, the Company will be reducing the commitments under its revolving credit facility by a like amount. About Realogy Corp. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have around 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. Realogy reported a net loss of $285 million on $3.16 billion of net revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $7 million on $3.12 billion of net revenues for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $7.89 billion in total assets, $9.24 billion in total liabilities, and a $1.34 billion total deficit. Realogy has 'Caa2' corporate family rating and 'Caa3' probability of default rating, with positive outlook, from Moody's. The rating outlook is positive. Moody's said in January 2011 that the 'Caa2' CFR and 'Caa3' PDR reflects very high leverage, negative free cash flow and uncertainty regarding the timing and strength of a recovery of the residential housing market in the U.S. Moody's expects Debt to EBITDA of about 14 times for the 2010 calendar year. Despite the recently completed and proposed improvements to the debt maturity profile, the Caa2 CFR continues to reflect Moody's view that current debt levels are unsustainable and that a substantial reduction in debt levels will be required to stabilize the capital structure. In February, Standard & Poor's Ratings Services raised its corporate credit rating on Realogy Corp. to 'CCC' from 'CC'. The rating outlook is positive. REALOGY CORP: Moody's Affirms 'Caa2' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service assigned a B1 rating to $593 million of proposed senior secured first-lien notes and a Caa1 rating to $325 million of proposed senior secured (first and half lien) notes of Realogy Corporation (Realogy). Concurrently, all other ratings including the Caa2 Corporate Family Rating (CFR), Caa3 Probability of Default Rating (PDR) and SGL-4 Speculative Grade Liquidity Rating were affirmed. The rating outlook remains stable. The proceeds from the note offerings will be used to prepay $629 million of term loan borrowings and repay borrowings under the revolving credit facility. Concurrent with the closing of the note offerings, the $289 million revolving credit facility set to mature in April 2013 will terminate. Following completion of the note offerings, availability under the $363 million revolving credit facility expiring in 2016 will be approximately $239 million. These ratings (LGD assessments) were assigned: Senior secured first lien notes due 2020, B1 (LGD 1, 6%) Senior secured notes (one and half lien) due 2020, Caa1 (LGD 2, 22%) The following ratings were affirmed (LGD assessments updated): Senior secured revolving credit facility due 2016, B1 (LGD 1, 6% from 7%) Senior secured term loan due 2016, B1 (LGD 1, 6% from 7%) Senior secured synthetic letter of credit facility due 2013/2016, B1 (LGD 1, 6% from 7%) Senior secured (one and half lien) notes due 2019, Caa1 (LGD 2, 22% from 24%) Second lien term loan due 2017, Caa2 (LGD 3, 33%) 11.5% senior unsecured notes due 2017, Caa3 (LGD 3, 44%) 12% senior unsecured notes due 2017, Caa3 (LGD 3, 44%) 10.5% senior unsecured cash pay notes due 2014, Caa3 (LGD 3, 44%) 11.00%/11.75% senior unsecured toggle notes due 2014, Caa3 (LGD 3, 44%) 11% senior subordinated convertible notes due 2018, Ca (LGD 5, 70%) 12.375% senior subordinated notes due 2015, Ca (LGD 5, 70%) Corporate family Rating, Caa2 Probability of Default Rating, Caa3 Speculative grade liquidity, SGL-4 The following ratings were affirmed and will be withdrawn upon the close of the refinancing: Senior secured revolving credit facility due 2013, B1 (LGD 1, 7%) Senior secured term loan due 2013, B1 (LGD 1, 7%) RATINGS RATIONALE "The proposed refinancing reduces near term debt maturities but increases cash interest expense and the cash burn of the company. Leverage remains very high and free cash flow will be significantly negative in 2012", stated Lenny Ajzenman, Senior Vice President. The Caa2 Corporate Family Rating and Caa3 Probability of Default Rating reflect very high financial leverage, consistently negative free cash flow and Moody's view that Realogy's capital structure is unsustainable. Debt to EBITDA (reflecting Moody's standard adjustments) was nearly 12.5 times in the September 30, 2011 LTM period. The ratings continue to reflect Moody's view that a substantial reduction in debt levels will be required to stabilize the capital structure. It should be noted that the capital structure includes $2.1 billion of convertible debt and an affiliate of Apollo Management, L.P. (Apollo), Realogy's equity sponsor, controls a significant portion of its outstanding debt. The residential housing market in the US remained weak in 2011 which contributed to Realogy's flattish revenues and a moderate decline in Adjusted EBITDA. A slow recovery in home sale volume in 2012 should lead to modest revenue and EBITDA growth but credit metrics should remain very weak. The ratings are supported by the company's leading market positions, strong brands, solid EBITDA margins and the potential for EBITDA growth upon a recovery in the housing market. The SGL-4 Speculative Grade Liquidity Rating reflects Realogy's weak liquidity profile. After the note offerings, Realogy will have about $239 million of availability under the $363 million revolving credit facility expiring in 2016. Given Moody's expectation for about $200 million of negative free cash flow in 2012, the revolver could be fully utilized by late 2012 or the first half of 2013. The proposed refinancing increases headroom under financial maintenance covenants in the near term. However absent solid EBITDA growth or another refinancing, further revolver utilization over the next 12 to 15 months to finance negative free cash flow could lead to difficulty maintaining covenant compliance. The ratings could be upgraded if home sale volume or pricing rebounds solidly leading to strong growth in EBITDA and a substantial improvement in credit metrics and liquidity. A material reduction in debt levels from the conversion of the convertible debt to common equity, an equity offering or other balance sheet restructuring could also lead to an upgrade. The ratings could be downgraded if the housing market weakens further leading to a material decline in Realogy's profitability or credit metrics, the likelihood of a default increases or Moody's estimate of recovery in a default scenario materially declines. For further information, see Realogy's Credit Opinion published on Moodys.com. The principal methodology used in rating Realogy was the Business & Consumer Service Industry Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. REPUBLIC MORTGAGE: S&P Cuts Financial Strength Rating to 'R' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its unsolicited financial strength rating on RMIC to 'R' from 'CC'. "We also affirmed our unsolicited ratings on RMIC-NC at 'CC' and subsequently withdrew them," S&P said. "Standard & Poor's lowered the RMIC ratings to 'R', signifying regulatory supervision, after the North Carolina Department of Insurance placed the company under its supervision," said Standard & Poor's credit analyst Robert Green. Pursuant to the order, RMIC will reduce the cash payments on all claims paid after Jan. 19, 2012, by 50% for an initial period not to exceed one year. The remaining 50% will be included in the statutory capital of RMIC, to be paid at a future date as and when necessary funds are available. "These actions do not affect the ratings on the ultimate parent company, Old Republic International (BBB+/Negative/--). The negative outlook on RMIC-NC at the time of withdrawal is based on the company's run-off status with uncertain claim development, deteriorating capital, and possible regulatory intervention should losses worsen," S&P said. RIVER ROCK: Suspending Filing of Reports with SEC ------------------------------------------------- River Rock Entertainment Authority filed a Form 15 notifying of its suspension of its duty under Section 15(d) to file reports required by Section 13(a) of the Securities Exchange Act of 1934 with respect 9 3/4% senior notes due 2011. Pursuant to Rule 12h-3, the Company is suspending reporting because there are currently less than 300 holders of record of the Senior Notes. There were only 30 holders of the Senior Notes as Jan. 26, 2012. About River Rock Headquartered in Geyserville, California, River Rock Entertainment Authority is a governmental instrumentality of the Dry Creek Rancheria Band of Pomo Indians, a federally recognized Indian tribe. River Rock Casino is a governmental development project of the Authority. The Casino offers Class III slot and video poker gaming machines, house banked table games, including Blackjack, Three card poker, Mini-baccarat and Pai Gow poker, Poker, featuring Texas Hold' em, comprehensive food and non-alcoholic beverage offerings, and goods for sale on tribal land located in Geyserville, California. River Rock's balance sheet at Sept. 30, 2011, showed $222.79 million in total assets, $214.66 million in total liabilities, all current, and $8.13 million in total net assets. * * * As reported by the TCR on Nov. 8, 2011, Moody's Investors Service lowered River Rock Entertainment Authority's ("RREA" or "Authority") Probability of Default Rating ("PDR") to D from Caa2 and its Corporate Family Rating ("CFR") to Ca from Caa2. Moody's rating action was prompted by the Authority's inability to complete the proposed refinancing transaction on time, resulting in non-payment of the principal amount due on its existing debt of $200 million senior secured notes on their maturity date of November 1, 2011, which Moody's views as a default. The downgrade of the CFR to Ca reflects Moody's view that the current debt holders could incur a possible material impairment in the debt restructuring process. The company is in discussion with lenders and has entered into a forbearance and support agreement dated November 2, 2011 with approximately 60% of note holders that contemplates an exchange offer. In the Jan. 23, 2012, edition of the TCR, Standard & Poor's Ratings Services withdrew its ratings, including its 'D' issuer credit rating, on Sonoma Co., Calif.-based River Rock Entertainment Authority (RREA) at the request of the issuer. RREA was created to operate the River Rock Casino for the Dry Creek Rancheria Band of Pomo Indians. "On Nov. 2, 2011, we lowered our issuer credit rating on RREA, as well as our issue-level rating on RREA's existing $200 million senior notes, to 'D' from 'CCC'. The rating actions followed RREA's failure to repay the principal on its existing $200 million senior notes by the Nov. 1, 2011 maturity. On Dec. 21, 2011, RREA announced it had reached an agreement to exchange 98.20% of the total principal amount of the defaulted existing notes for $96,622,000 of new 9% series A senior notes due 2018, $93,302,000 of new 8% tax-exempt series B senior notes due 2018, and cash payments totaling nearly $19 million," S&P said. Bankruptcy Warning The Company has a significant amount of debt coming due in fiscal 2011 that it may not be able to repay. The Company's $200.0 million of Senior Notes mature in November 2011. The Company has been exploring its options to refinance its Senior Notes and expect to propose a refinancing transaction in the near future. While the Company expects to be able to refinance this debt, there can be no assurances that this in fact will occur. In such case, failure to refinance or extend the maturity date of this debt will give the holders of such debt certain rights under the Company's indenture which are limited by the terms of the Company's indenture, the Company's waiver of sovereign immunity and remedies available to creditors to Native American gaming operators under federal law and by the Company's Compact. In addition, it is uncertain whether the Company or the Dry Creek Rancheria Band of Pomo Indians may be a debtor in a case under the U.S. Bankruptcy Code. Without bankruptcy court protection, other creditors might receive preferential payments or otherwise obtain more than they would have under a bankruptcy court proceeding. If the Company commences a case under the U.S. Bankruptcy Code and the bankruptcy court does not dismiss the case, payments from the debtor would cease. It is uncertain how long payments under the Senior Notes could be delayed following commencement of a bankruptcy case. ROOMSTORE INC: Can Hire FTI Consulting as Financial Advisors ------------------------------------------------------------ RoomStore Inc. sought and obtained the U.S. Bankruptcy Court for the Eastern District of Virginia's permission to employ the consulting firm of FTI Consulting, Inc., as its financial advisors and consultants. The firm, among others, will: * assist in soliciting and negotiating proposals to close certain stores and liquidate inventory located in those stores; * assist the Debtor with information and analyses required pursuant to the Debtor's Debtor-In-Possession financing including, but not limited to, preparation for hearings regarding DIP financing; * assist the Debtor in the preparation of financial related disclosures required by the Court, including the Schedules of Assets and Liabilities, the Statement of Financial Affairs and Monthly Operating Reports; * provide advisory assistance in connection with the development and implementation of employee programs; * assist and advise the Debtors with respect to the identification of core business assets and the disposition of assets or liquidation of unprofitable operations; * assist with the identification of executory contracts and leases and performance of cost/benefit evaluations with respect to the affirmation or rejection of each; * assist regarding the valuation of the present level of operations and identification of areas of potential cost savings, including overhead and operating expense reductions and efficiency improvements; * assist in the preparation of financial information for distribution to creditors and others, including, but not limited to, cash flow projections and budgets, cash receipts and disbursement analysis, analysis of various asset and liability accounts, and analysis of proposed transactions for which Court approval is sought; * attend meetings and assist in discussions with potential investors, banks and other secured lenders, any statutory committee appointed in the chapter 11 case, the U.S. Trustee, other parties in interest and professionals hired by the same, as requested; * assist in the preparation of information and analysis necessary for the confirmation of a Plan of Reorganization in the chapter 11 case; * assist in the evaluation and analysis of avoidance actions, including fraudulent conveyances and preferential transfers; and * render other general business consulting or other assistance as Debtors' management or counsel may deem necessary that are consistent with the role of a financial advisor and not duplicative of services provided by other professionals. The customary hourly rates, subject to periodic adjustments, charged by FTI's professionals anticipated to be assigned to the case are: Senior Managing Directors $780 - $895 Directors/Managing Directors $560 - $745 Consultants/Senior Consultants $280 - $530 Administrative/Paraprofessionals $115 - $230 FTI has requested that it be engaged under a general retainer. The Debtor believes that FTI should be employed under a general retainer because of the variety and complexity of the services that will be required during these proceedings. FTI has received from the Debtor total "on account" cash in the amount of $40,000. Since commencing the engagement, FTI has invoiced the Debtor $135,075.60, which amount reflects $127,382.50 billed to the Debtor for professional services, $7,693.10 for out- of-pocket expense reimbursement and the $40,000 held as On-Account Cash. Prior to the Petition Date, FTI applied $0 of its initial $40,000 cash on account for estimated fees and expenses. Stephen L. Coulombe at FTI informed the Court that except as disclosed his firm (i) has no connection with the Debtor, its creditors or other parties in interest; (ii) does not hold any interest adverse to the Debtor's estate; and (iii) is a "disinterested person" as defined within Bankruptcy Code Section 101(14). About RoomStore Inc. Richmond, Virginia-based RoomStore, Inc., operates a chain of 64 retail furniture stores, including both large-format stores and clearance centers in eight states: Pennsylvania, Maryland, Virginia, North Carolina, South Carolina, Florida, Alabama, and Texas. It also has five warehouses and distribution centers located in Maryland, North Carolina, and Texas that service the Retail Stores. The Company also offers its home furnishings through Furniture.com, a provider of internet-based sales opportunities for regional furniture retailers. The Company owns 65% of Mattress Discounters Group LLC, which operates 83 mattress stores (as of Aug. 31, 2011) in the states of Delaware, Maryland and Virginia and in the District of Columbia. RoomStore was founded in 1992 in Dallas, Texas, with four retail furniture stores. With more than $300 million in net sales for its fiscal year ending 2010, RoomStore is one of the 30 largest furniture retailers in the United States. RoomStore filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 11-37790) on Dec. 12, 2011, following store-closing sales at four of its retail stores, located in Hoover, Alabama; Fayetteville, North Carolina; Tallahassee, Florida; and Baltimore, Maryland. Judge Douglas O. Tice, Jr., presides over the case. Lawyers at Lowenstein Sandler PC and Kaplan & Frank, PLC serve as the Debtor's bankruptcy counsel. FTI Consulting, Inc., serves as the Debtor's financial advisors and consultants. The Company's balance sheet at Aug. 31, 2011, showed $70.4 million in total assets, $60.3 million in total liabilities, and stockholders' equity of $10.1 million. The petition was signed by Stephen Girodano, president and chief executive officer. Liquidator Hilco Merchant Resources, Inc., is represented in the case by Gregg M. Galardi, Esq., at DLA Piper LLP (US); and Robert S. Westermann, Esq., and Sheila de la Cruz, Esq., at Hirschler Fleischer, P.C. The U.S. Trustee for Region 4 named seven members to the official committee of unsecured creditors in the case. ROOMSTORE INC: Wants to Employ Kaplan & Frank as Local Counsel -------------------------------------------------------------- RoomStore Inc. seeks authority from the U.S. Bankruptcy Court for the Eastern District of Virginia to employ Kaplan & Frank, PLC, as its Virginia bankruptcy counsel. The firm will: A. provide the Debtor with advice and prepare all necessary documents regarding debt restructuring, bankruptcy and asset dispositions; B. take all necessary actions to protect and preserve the Debtor's estate during the pendency of the chapter 11 case, including the prosecution of actions by the Debtor, the defense of actions commenced against the Debtor, negotiations concerning litigation in which the Debtor are involved and objecting to claims filed against the estate; C. prepare on behalf of the Debtor, as debtors in possession, all necessary motions, applications, answers, orders, reports and papers in connection with the administration of the chapter 11 case; D. counsel the Debtor with regard to their rights and obligations as debtor in possession; E. appear in Court and to protect the interests of the Debtor before the Court; and F. perform all other legal services for the Debtor which may be necessary and proper in the proceedings. The names, positions and current hourly rates of the Kaplan & Frank lawyers currently expected to have primary responsibility for providing services to the Debtors are: Troy Savenko (Of Counsel) $295/hour Christopher J. Hoctor (Partner) $285/hour Leslie A. Skiba (Associate) $265/hour Kaplan & Frank was first retained to represent the Debtor in connection with a potential restructuring or chapter 11 filing in November 2011. Prior to the Petition Date, Kaplan & Frank received an aggregate retainer of $22,000, paid in two installments of $10,000 (paid on November 28, 2011) and $12,000 (paid on December 9, 2011). About $1,026 of this retainer has been applied to prepetition services rendered and expenses incurred by Kaplan & Frank while $15,479 of this retainer was applied to the costs, fees and expenses associated with the filing of Debtor's chapter 11 petition. The balance, totaling $5,495, will be held in trust for the Debtor and utilized by Kaplan & Frank as an advance deposit for post-petition fees and expenses. As part of the terms of its retention, Kaplan & Frank required the Advance Deposit to be $50,000 as security of payment for attorney fees and out-of pocket expenses to be incurred by the Debtor in connection with its bankruptcy. Because of the Debtor's prepetition circumstances, the Debtor committed to supplement the Advance Deposit as necessary, but not less than $10,000 per month beginning on December 15, 2011, until the Advance Deposit held in Kaplan & Frank's escrow account is $50,000. The Debtor also granted to Kaplan & Frank a security interest in all amounts held to secure repayment of its fees and expenses as they become due. "To the best of my knowledge, Kaplan & Frank does not hold an interest adverse to the Debtor's estate and is a 'disinterested person' as that term is defined in Section 101(14) of the Bankruptcy Code," Mr. Savenko attests. About RoomStore Inc. Richmond, Virginia-based RoomStore, Inc., operates a chain of 64 retail furniture stores, including both large-format stores and clearance centers in eight states: Pennsylvania, Maryland, Virginia, North Carolina, South Carolina, Florida, Alabama, and Texas. It also has five warehouses and distribution centers located in Maryland, North Carolina, and Texas that service the Retail Stores. The Company also offers its home furnishings through Furniture.com, a provider of internet-based sales opportunities for regional furniture retailers. The Company owns 65% of Mattress Discounters Group LLC, which operates 83 mattress stores (as of Aug. 31, 2011) in the states of Delaware, Maryland and Virginia and in the District of Columbia. RoomStore was founded in 1992 in Dallas, Texas, with four retail furniture stores. With more than $300 million in net sales for its fiscal year ending 2010, RoomStore is one of the 30 largest furniture retailers in the United States. RoomStore filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 11-37790) on Dec. 12, 2011, following store-closing sales at four of its retail stores, located in Hoover, Alabama; Fayetteville, North Carolina; Tallahassee, Florida; and Baltimore, Maryland. Judge Douglas O. Tice, Jr., presides over the case. Lawyers at Lowenstein Sandler PC and Kaplan & Frank, PLC serve as the Debtor's bankruptcy counsel. FTI Consulting, Inc., serves as the Debtor's financial advisors and consultants. The Company's balance sheet at Aug. 31, 2011, showed $70.4 million in total assets, $60.3 million in total liabilities, and stockholders' equity of $10.1 million. The petition was signed by Stephen Girodano, president and chief executive officer. Liquidator Hilco Merchant Resources, Inc., is represented in the case by Gregg M. Galardi, Esq., at DLA Piper LLP (US); and Robert S. Westermann, Esq., and Sheila de la Cruz, Esq., at Hirschler Fleischer, P.C. The U.S. Trustee for Region 4 named seven members to the official committee of unsecured creditors in the case. ROOMSTORE INC: Wants American Legal as Notice & Claims Agent ------------------------------------------------------------ RoomStore Inc. seeks permission from the U.S. Bankruptcy Court for the Eastern District of Virginia to employ American Legal Claims Services, LLC, as its notice and claims agent, effective as of January 5, 2012. As noticing, claims and balloting agent, ALCS is expected to: (i) serve as the Court's notice agent to mail certain notices to the estate's creditors and parties-in-interest, (ii) provide computerized claims, claims objections and balloting database services, and (iii) provide expertise, consultation and assistance with claim and ballot processing and with other administrative information related to the Debtor's bankruptcy case. In addition, ALCS will assist the Debtor with, among other things: (a) maintaining and updating the master mailing lists of creditors; (b) to the extent necessary, gathering data in conjunction with the preparation of the Debtor's schedules of assets and liabilities and statements of financial affairs; (c) tracking and administration of claims; and (d) performing other administrative tasks pertaining to the administration of the Chapter 11 Case as may be requested by the Debtor or the Clerk's Office in accordance with the terms of its retention agreement. Although the Debtor does not propose to employ ALCS under Section 327 of the Bankruptcy Code, to the best of the Debtor's knowledge, information, and belief, ALCS has represented that it neither holds nor represents any interest adverse to the Debtor's estate in connection with any matter on which it would be employed and that it is a "disinterested person," as referenced in Bankruptcy Code Section 327(a) and as defined in Bankruptcy Code Section 101(14), as modified by Bankruptcy Code Section 1107(b). The fees ALCS will charge in connection with its services to the Debtor are set forth in its retention agreement. About RoomStore Inc. Richmond, Virginia-based RoomStore, Inc., operates a chain of 64 retail furniture stores, including both large-format stores and clearance centers in eight states: Pennsylvania, Maryland, Virginia, North Carolina, South Carolina, Florida, Alabama, and Texas. It also has five warehouses and distribution centers located in Maryland, North Carolina, and Texas that service the Retail Stores. The Company also offers its home furnishings through Furniture.com, a provider of internet-based sales opportunities for regional furniture retailers. The Company owns 65% of Mattress Discounters Group LLC, which operates 83 mattress stores (as of Aug. 31, 2011) in the states of Delaware, Maryland and Virginia and in the District of Columbia. RoomStore was founded in 1992 in Dallas, Texas, with four retail furniture stores. With more than $300 million in net sales for its fiscal year ending 2010, RoomStore is one of the 30 largest furniture retailers in the United States. RoomStore filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 11-37790) on Dec. 12, 2011, following store-closing sales at four of its retail stores, located in Hoover, Alabama; Fayetteville, North Carolina; Tallahassee, Florida; and Baltimore, Maryland. Judge Douglas O. Tice, Jr., presides over the case. Lawyers at Lowenstein Sandler PC and Kaplan & Frank, PLC serve as the Debtor's bankruptcy counsel. FTI Consulting, Inc., serves as the Debtor's financial advisors and consultants. The Company's balance sheet at Aug. 31, 2011, showed $70.4 million in total assets, $60.3 million in total liabilities, and stockholders' equity of $10.1 million. The petition was signed by Stephen Girodano, president and chief executive officer. Liquidator Hilco Merchant Resources, Inc., is represented in the case by Gregg M. Galardi, Esq., at DLA Piper LLP (US); and Robert S. Westermann, Esq., and Sheila de la Cruz, Esq., at Hirschler Fleischer, P.C. The U.S. Trustee for Region 4 named seven members to the official committee of unsecured creditors in the case. ROOMSTORE INC: Committee Wants Hunton & Williams as Counsel ----------------------------------------------------------- The Official Committee of Unsecured Creditors of RoomStore Inc. seeks permission from the U.S. Bankruptcy Court for the Eastern District of Virginia to retain Hunton & Williams LLP as its counsel. Hunton & Williams will: a) assist, advise and represent the Committee in consultations with the Debtor regarding the administration of the case; b) assist, advise and represent the Committee in analyzing the Debtor's assets and liabilities, including mortgages, liens and other security interests in the Debtor's property, and participate in and review any proposed asset sales, any asset dispositions, financing arrangements and cash collateral stipulations in connection with the proceedings; c) assist, advise and represent the Committee in any manner relevant to reviewing and determining the Debtor's rights and obligations under its leases and executory contracts; d) assist, advise and represent the Committee in investigating the acts, conduct, assets, liabilities and financial condition of the Debtor, the Debtor's operations and the desirability of the continuance of any portion of those operations, and any other matters relevant to the case or to the formation of a plan; e) assist, advise and represent the Committee in its participation in the negotiation, formulation and drafting of a plan of liquidation or reorganization; f) advise the Committee on the issues concerning the appointment of a trustee or examiner under Section 1104; g) assist, advise and represent the Committee in understanding its powers and its duties under the Bankruptcy Code and the Bankruptcy Rules and in performing other services in the interests of those represented by the Committee; h) assist, advise and represent the Committee in the evaluation of claims and on any litigation matters, including avoidance actions; and i) provide other services to the Committee as may be necessary or appropriate in the case. The firm's hourly rates range from $475 to $735 per hour for partners and counsel, $240 to $485 per hour for associates, and $135 to $235 per hour for paralegals and other support staff. Tyler P. Brown, Esq., a partner with Hunton & Williams LLP, disclose that the principal attorneys and paralegals presently designated to represent the Committee and their current hourly rates are: Attorney Status Hourly Rate Year of Admission -------- ------ ----------- ----------------- Tyler P. Brown Partner $630 1987 Justin F. Paget Associate $310 2008 Eric W. Flynn Associate $240 2009 Matthew A. Lambert Paralegal $160 n/a Mr. Brown says Hunton & Williams currently represents, has represented, and likely will continue to represent or have connections with certain of the Debtor's creditors and other parties in interest in ongoing matters unrelated to the chapter 11 case. None of the representations of the entities disclosed in these unrelated matters concern an interest adverse to the Committee or the Debtor's creditors. About RoomStore Inc. Richmond, Virginia-based RoomStore, Inc., operates a chain of 64 retail furniture stores, including both large-format stores and clearance centers in eight states: Pennsylvania, Maryland, Virginia, North Carolina, South Carolina, Florida, Alabama, and Texas. It also has five warehouses and distribution centers located in Maryland, North Carolina, and Texas that service the Retail Stores. The Company also offers its home furnishings through Furniture.com, a provider of internet-based sales opportunities for regional furniture retailers. The Company owns 65% of Mattress Discounters Group LLC, which operates 83 mattress stores (as of Aug. 31, 2011) in the states of Delaware, Maryland and Virginia and in the District of Columbia. RoomStore was founded in 1992 in Dallas, Texas, with four retail furniture stores. With more than $300 million in net sales for its fiscal year ending 2010, RoomStore is one of the 30 largest furniture retailers in the United States. RoomStore filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 11-37790) on Dec. 12, 2011, following store-closing sales at four of its retail stores, located in Hoover, Alabama; Fayetteville, North Carolina; Tallahassee, Florida; and Baltimore, Maryland. Judge Douglas O. Tice, Jr., presides over the case. Lawyers at Lowenstein Sandler PC and Kaplan & Frank, PLC serve as the Debtor's bankruptcy counsel. FTI Consulting, Inc., serves as the Debtor's financial advisors and consultants. The Company's balance sheet at Aug. 31, 2011, showed $70.4 million in total assets, $60.3 million in total liabilities, and stockholders' equity of $10.1 million. The petition was signed by Stephen Girodano, president and chief executive officer. Liquidator Hilco Merchant Resources, Inc., is represented in the case by Gregg M. Galardi, Esq., at DLA Piper LLP (US); and Robert S. Westermann, Esq., and Sheila de la Cruz, Esq., at Hirschler Fleischer, P.C. The U.S. Trustee for Region 4 named seven members to the official committee of unsecured creditors in the case. ROOMSTORE INC: Panel Wants Alvarez & Marsal as Financial Advisors ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of RoomStore Inc. seeks permission from the U.S. Bankruptcy Court for the Eastern District of Virginia to retain the consulting firm Alvarez & Marsal North America, LLC, as its financial advisors, effective as of December 22, 2011. A&M will: * assist the Committee in the review of financial related disclosures required by the Court, including the Schedules of Assets and Liabilities, the Statement of Financial Affairs and Monthly Operating Reports; * assist the Committee with information and analyses required pursuant to the Debtor's postpetition financing; * assist with a review of the Debtor's short-term cash management procedures; * assist with a review of the Debtor's performance of cost/benefit evaluations with respect to the assumption or rejection of various executory contracts and leases; * assist regarding the evaluation of the present level of operations and identification of areas of potential cost savings, including overhead and operating expense reductions and efficiency improvements; * assist in the review of financial information distributed by the Debtor to creditors and others, including, but not limited to, cash flow projections and budgets, cash receipts and disbursement analysis and analysis of various asset and liability accounts; * attend meetings with the Debtor, the Debtor's lenders and creditors, the Committee and any other official committees organized in the chapter 11 case, the U.S. Trustee, other parties in interest and professionals hired by the same, as requested; * assist in the review and/or preparation of information and analysis necessary for the confirmation of a plan in the chapter 11 case; * assist in the evaluation and analysis of avoidance actions, including fraudulent conveyances and preferential transfers (other than with respect to the valuation of particular asset transfers); and * render other general business consulting or other assistance as the Committee or its counsel may deem necessary, consistent with the role of a financial advisor and not duplicative of services provided by other professionals in the chapter 11 case. The standard hourly rates, subject to periodic adjustments, charged by A&M's professionals are: Directors/Managing Directors $450 - $850 Analysts/Associates $250 - $450 A&M seeks certain indemnification from the Debtor. Mark A. Roberts, a Managing Director with Alvarez & Marsal North America, LLC, assures the Court his firm does not represent any other entity having an interest adverse to the Committee in connection with the case, and therefore believes it is eligible to represent the Committee under Section 1103(b) of the Bankruptcy Code. About RoomStore Inc. Richmond, Virginia-based RoomStore, Inc., operates a chain of 64 retail furniture stores, including both large-format stores and clearance centers in eight states: Pennsylvania, Maryland, Virginia, North Carolina, South Carolina, Florida, Alabama, and Texas. It also has five warehouses and distribution centers located in Maryland, North Carolina, and Texas that service the Retail Stores. The Company also offers its home furnishings through Furniture.com, a provider of internet-based sales opportunities for regional furniture retailers. The Company owns 65% of Mattress Discounters Group LLC, which operates 83 mattress stores (as of Aug. 31, 2011) in the states of Delaware, Maryland and Virginia and in the District of Columbia. RoomStore was founded in 1992 in Dallas, Texas, with four retail furniture stores. With more than $300 million in net sales for its fiscal year ending 2010, RoomStore is one of the 30 largest furniture retailers in the United States. RoomStore filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 11-37790) on Dec. 12, 2011, following store-closing sales at four of its retail stores, located in Hoover, Alabama; Fayetteville, North Carolina; Tallahassee, Florida; and Baltimore, Maryland. Judge Douglas O. Tice, Jr., presides over the case. Lawyers at Lowenstein Sandler PC and Kaplan & Frank, PLC serve as the Debtor's bankruptcy counsel. FTI Consulting, Inc., serves as the Debtor's financial advisors and consultants. The Company's balance sheet at Aug. 31, 2011, showed $70.4 million in total assets, $60.3 million in total liabilities, and stockholders' equity of $10.1 million. The petition was signed by Stephen Girodano, president and chief executive officer. Liquidator Hilco Merchant Resources, Inc., is represented in the case by Gregg M. Galardi, Esq., at DLA Piper LLP (US); and Robert S. Westermann, Esq., and Sheila de la Cruz, Esq., at Hirschler Fleischer, P.C. The U.S. Trustee for Region 4 named seven members to the official committee of unsecured creditors in the case. RYLAND GROUP: Posts $812,000 Net Income in Fourth Quarter --------------------------------------------------------- Ryland Group, Inc., reported net income of $812,000 on $261.75 million of total revenues for the three months ended Dec. 31, 2011, compared with a net loss of $19.14 million on $215.07 million of total revenues for the same period during the prior year. The Company reported a net loss of $51.56 million on $628.98 million of total revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $66 million on $786.88 million of total revenues for the same period during the prior year. The Company reported a net loss of $50.75 million on $890.73 million of total revenues for the 12 months ended Dec. 31, 2011, compared with a net loss of $85.14 million on $1 billion of total revenues during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $1.57 billion in total assets, $1.09 billion in total liabilities and $483.91 million in total equity. A full-text copy of the press release is available for free at: http://is.gd/CKd8hh About Ryland Group Headquartered in Calabasas, California, The Ryland Group, Inc. (NYSE: RYL) -- http://www.ryland.com/-- is one of the nation's largest homebuilders and a leading mortgage-finance company. Since its founding in 1967, Ryland has built more than 285,000 homes and financed more than 240,000 mortgages. The Company currently operates in 15 states and 19 homebuilding divisions across the country and is listed on the New York Stock Exchange under the symbol "RYL." * * * As reported by the Troubled Company Reporter on June 21, 2010, Fitch Ratings has affirmed Ryland Group, Inc.'s ratings -- Issuer Default Rating at 'BB'; and Senior unsecured debt at 'BB'. The Rating Outlook has been revised to Stable from Negative. Ryland Group carries Moody's "Ba3" corporate family rating, "Ba3" probability of default rating, "Ba3" senior unsecured notes rating, and "SGL-2" speculative grade liquidity rating. Ryland Group carries Standard & Poor's Ratings Services' 'BB-' corporate credit and senior unsecured note ratings. In the Sept. 14, 2011, edition of the TCR, Fitch Ratings has downgraded its ratings for Ryland Group, Inc., including the company's Issuer Default Rating (IDR) to 'BB-' from 'BB'. The Rating Outlook has been revised to Negative from Stable. The downgrade in RYL's IDR and senior unsecured ratings reflects the still very challenging U.S. housing market which is likely bouncing on the bottom, following a massive cyclical correction. With the recent softening in the economy and lowered economic growth expectations for 2011 and 2012, the environment may at best only support a relatively modest recovery in housing metrics over the next year and a half. Moreover, RYL's underperformance relative to its peers in certain operational and financial categories during recent quarters, and its slimming cash position penalizes the ratings and influences the Outlook. SAVANNAH INTERESTS: Files Schedules of Assets and Liabilities ------------------------------------------------------------- Savannah Interests, LLC, filed with the U.S. Bankruptcy Court for the Southern District of Georgia a Summary of Schedules reporting total assets of $10.64 million and total liabilities of $8.65 million. The Debtor's liabilities comprise mainly of $8.11 million claims owing to secured creditors and $546,964 claims owing to unsecured creditors. Savannah Interests LLC, based in Conifer, Colorado, filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 11-42698) Dec. 30, 2011. Lawyers at Morris, Manning & Martin LLP represent the Debtor as counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by David Hennessy, CEO of Gulfstream Capital Corp., managing member. SAVANNAH INTERESTS: Court OKs Morris Manning as General Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Georgia authorized Savannah Interests, LLC, to employ Morris, Manning & Martin LLP as its general reorganization counsel. On Dec. 29, 2011, Debtor's managing member paid the Firm $20,000 as a retainer for this Chapter 11 case. The source of the retainer funds is Gulfstream Capital Corporation. The Debtor believes that the firm is "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be contacted at: John D. Northup III Georgia Bar No. 546696 24 Drayton Street, Suite 712 Savannah, Georgia 31401 Telephone: (912) 651-8945 E-mail: jnorthup@mmmlaw.com - and - Lisa Wolgast Georgia Bar No. 773399 Pro Hac Pending 1600 Atlanta Financial Center 3343 Peachtree Rd., N.E. Atlanta, Georgia 30326 Telephone: (404) 233-7000 E-mail: lwolgast@mmmlaw.com About Savannah Savannah Interests LLC, based in Conifer, Colorado, filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 11-42698) Dec. 30, 2011. Lawyers at Morris, Manning & Martin LLP represent the Debtor as counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by David Hennessy, CEO of Gulfstream Capital Corp., managing member. SCI REAL ESTATE: Hires Thompson & Knight as Special Counsel ----------------------------------------------------------- SCI Real Estate Investments LLC and Secured California Investments Inc., sought and obtained permission from the Bankruptcy Court to employ Thompson & Knight LLP as special real estate counsel to provide real estate legal counsel to the Debtors. Mark Weibel, the firm's primary attorney expected to provide services, will be paid at an hourly rate of $485. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm may be reached at: Mark Weibel, Esq. THOMPSON & KNIGHT LLP One Arts Plaza 1722 Routh Street, Suite 1500 Dallas, TX 75201 Tel: (214) 969-1111 Fax: (214) 999-9221 E-mail: Mark.Weibel@tklaw.com About SCI Real Estate Investments Los Angeles, California-based SCI Real Estate Investments, LLC, filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-15975) on Feb. 11, 2011. Jeffrey W. Dulberg, Esq., at Pachulski Stang Ziehl & Jones LLP, serves as the Debtor's bankruptcy counsel. Haskell & White LLP as accountant. Kennerly, Lamishaw & Rossi LLP as special real estate counsel. The Debtor disclosed $55,431,222 in assets and $69,514,028 in liabilities as of the Chapter 11 filing. Peter C. Anderson, the U.S. Trustee for Region 16, appointed three members to the official committee of unsecured creditors in the Chapter 11 cases of SCI Real Estate Investments. Levene, Neale, Bender, Yoo & Brill L.L.P., represents the Committee as its general bankruptcy counsel. SEA TRAIL: Court Okays Hiring of McIntyre Paradis as Accountants ---------------------------------------------------------------- Sea Trail Corporation obtained permission from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ McIntyre, Paradis, Wood & Company CPA's PLLC as its accountants. As reported by the Troubled Company Reporter on Dec. 13, 2011, the Debtor will pay McIntyre Paradis a flat fee of $5,275 for the preparation of annual state and federal tax returns and depreciation schedules. In addition, the Debtor will pay McIntyre Paradis on an hourly basis of a maximum of $155 per hour in connection with reviewing, auditing and consulting services. Stanley Paradis, CPA, of McIntyre, Paradis, Wood & Company CPA's PLLC, assured the Court that neither he nor his firm holds any interest adverse to the interest of the estate. Headquartered in Sunset Beach, North Carolina, Sea Trail Corporation operates the Sea Trail Golf Resort and Conference Center. The Debtor's business operations are comprise of three operating divisions, including the golf division, the convention and resort division, and the real estate division. Sea Trail Corporation filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 11-07370) on Sept. 27, 2011, in Wilson, North Carolina. The Debtor reported $34,222,281 in assets and $22,174,201 in liabilities as of the Chapter 11 filing. Stubbs & Perdue P.A. is the Debtors' attorney. McIntyre, Paradis, Wood & Company CPA's PLLC is the Debtor's accountants. The Finley Group, Inc., is the Debtor's financial consultant. Sea Trail Corporation's official committee of unsecured creditors retained J.M. Cook and his firm, J.M. Cook, P.A., as counsel. SEA TRAIL: Can Hire The Finley Group as Financial Consultant ------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of North Carolina authorized Sea Trail Corporation to employ The Finley Group, Inc., as its financial consultant, nunc pro tunc to Nov. 9, 2011. As reported by the Troubled Company Reporter on Dec. 13, 2011, upon retention, The Finley Group will: (a) assist the Debtor in the preparation of financial related disclosures and reporting required by any orders of the Court or the Bankruptcy Code; (b) assist the Debtor in assessing its various divisions and offer recommendations to improve the productivity and profitability of them; (c) assist the Debtor in selecting a property management firm to provide services in connection with the rental program, convention services, conference bookings, tournament reservations, and resort reservations as a whole; (d) assist the Debtor in preparation of financial information for distribution to creditors and others, including but not limited to cash flow projections and budgets, cash receipts and disbursement analysis, analysis of accounts receivable and accounts payable, and analysis of future transactions; and (e) attend meetings and assist in discussions with investors, banks, secured lenders, other parties-in-interest, and other professionals hired by the state on an as requested basis. The firm's hourly rates are: President $375 - $400 Managing Directors $325 - $375 Associates $225 - $300 Paraprofessionals $75 - $150 The Finley Group has agreed that the hourly rate for services provided by Matthew Smith will be $325 per hour. With respect to travel, out-of-town travel will be billed at 50% of the hourly rates. The Debtor will reimburse the firm for reasonable out-of-pocket expenses. The Debtor has agreed to indemnify The Finley Group. Matthew Smith, of The Finley Group, Inc., attested that neither he nor his firm holds or represents an interest adverse to the interest of the estate. About Sea Trail Corporation Headquartered in Sunset Beach, North Carolina, Sea Trail Corporation operates the Sea Trail Golf Resort and Conference Center. The Debtor's business operations are comprise of three operating divisions, including the golf division, the convention and resort division, and the real estate division. Sea Trail Corporation filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 11-07370) on Sept. 27, 2011, in Wilson, North Carolina. The Debtor reported $34,222,281 in assets and $22,174,201 in liabilities as of the Chapter 11 filing. Stubbs & Perdue P.A. is the Debtors' attorney. McIntyre, Paradis, Wood & Company CPA's PLLC is the Debtor's accountants. The Finley Group, Inc., is the Debtor's financial consultant. Sea Trail Corporation's official committee of unsecured creditors had retained J.M. Cook and his firm, J.M. Cook, P.A., as counsel. SEARCHMEDIA HOLDINGS: Partially Settles Dispute with CSV, Et Al. ---------------------------------------------------------------- SearchMedia Holdings Limited reached settlement agreements for the arbitration between the Company and certain of its predecessor shareholders. The arbitration was filed between SearchMedia Holdings Limited vs. China Seed Ventures, LP, Qinying Liu, Deutsche Bank AG Hong Kong Branch, Le Yang, and Sun Hing Associates Ltd. and Vervain Equity Investments Limited related to matters from the Share Exchange Agreement which closed on Oct. 30, 2009. The Settlement Agreements with CSV, Ms. Liu and Ms. Yang are effective immediately while the settlement agreement with Deutsche Bank is conditional upon certain determinations by the arbitration panel. In addition, SearchMedia has reached an agreement with Linden Ventures II BVI Ltd., a pre-merger investor, in which SearchMedia will repurchase all of their shares outstanding. As part of the settlement with the Settling Defendants and Linden, (i) 2.5 million shares will be repurchased by the Company at an average price per share of $0.25 and those shares will be retired, (ii) 2.0 million shares will be surrendered and cancelled without consideration, and (iii) 1.6 million warrants will be surrendered and cancelled without consideration. The cancelled warrants have strike prices ranging from $0.0001 to $7.88 per share. Upon completion of the transactions contemplated by the settlement agreements, the Company will have 17.4 million shares outstanding, including 0.8 million shares recently issued to subsidiaries of the Company in settlement of certain earnout obligations. In addition, as part of the settlement, the Settling Defendants have agreed to forego their right, under a voting agreement, to nominate four members to the SearchMedia board of directors, and Ms. Liu resigned her position as a member of the SearchMedia Board of Directors effective Jan. 23, 2012. The Company intends to vigorously continue its claims against the Nan Fung Entities, the remaining party in the arbitration. Mr. Paul Conway, Chief Executive Officer of SearchMedia, commented, "We are happy to reach these settlement agreements to resolve a long standing issue. As part of the settlement we will eliminate 4.5 million outstanding shares, significantly reduce our overhang of warrants, and facilitate the appointment of additional directors. As we continue to move beyond the complications that we inherited, our current management team will be able to better focus on execution of our business strategy to capture the exciting opportunities in China's advertising market." About SearchMedia SearchMedia is a leading nationwide multi-platform media company and one of the largest operators of integrated outdoor billboard and in-elevator advertising networks in China. SearchMedia operates a network of high-impact billboards and one of China's largest networks of in-elevator advertisement panels in 50 cities throughout China. Additionally, SearchMedia operates a network of large-format light boxes in concourses of eleven major subway lines in Shanghai. SearchMedia's core outdoor billboard and in- elevator platforms are complemented by its subway advertising platform, which together enable it to provide a multi-platform, "one-stop shop" services for its local, national and international advertising clients. Marcum Bernstein & Pinchuk LLP, in New York, expressed substantial doubt about SearchMedia Holdings' ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring net losses from operations and has a working capital deficiency. The Company reported a net loss of $46.6 million on $49.0 million of revenues for 2010, compared with a net loss of $22.6 million on $37.7 million of revenues for 2009. SEARS HOLDINGS: Robert Riecker Elected as VP, Controller and CAO ---------------------------------------------------------------- The Board of Directors of Sears Holdings Corporation elected Robert A. Riecker as the Company's Vice President, Controller and Chief Accounting Officer, effective Jan. 25, 2012. He is assuming the position of the Company's principal accounting officer from William K. Phelan, and will report to Mr. Phelan. Mr. Phelan, who was appointed to the position of Senior Vice President, Finance of the Company, also is responsible for the Company's treasury, tax and risk management functions. Mr. Riecker, age 47, joined the Company as Assistant Controller in October 2005 and served as Vice President and Assistant Controller from May 2007 to October 2011. From October 2011 until his election as Vice President, Controller and Chief Accounting Officer, he served as the Company's Vice President, Internal Audit. 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. SECURITY NATIONAL: Files Schedules of Assets & Liabilities ---------------------------------------------------------- Security National Properties Funding III, LLC, et al., disclosed in its summary of schedules of assets and liabilities that its total assets reach $24,758,433 comprised mostly of intercompany receivables. The Debtors' total liabilities reach $354,657,501, with Bank of America holding the lone secured claim for $159,991,940; the Commissioner of Taxation and Finance at Binghamton, New York holding the lone unsecured priority claim for $1,189; and creditors holding unsecured non-priority claims totaling $194,664,371. The creditor holding the largest unsecured non- priority claim is Security National Properties Funding LLC with $131,409,679. Eureka, California-based Security National Properties Funding III LLC owns and operates 33 commercial office, retail, industrial and other properties. Security National and various affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-13277) on Oct. 13, 2011. Judge Kevin Gross presides over the case. Andrew R. Remming, Esq., and Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, serve as the Debtors' counsel. GCG Inc. serves as the Debtors' claims and notice agent. The Debtors' scheduled assets total $24,758,433 while scheduled liabilities total $354,657,501. SECURITY NATIONAL: Can Access Cash Collateral Until Feb. 10 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized, in a fourth interim order, Security National Properties Funding III, LLC, et al., to use cash collateral of prepetition agents and lenders through the conclusion of the final hearing scheduled for Feb. 10, 2012, at 2:00 p.m. As reported by the Troubled Company Reporter on Jan. 10, 2012, the parties with an alleged interest in the cash collateral are Bank of America, N.A., in its capacity as administrative agent for itself and other lenders under the prepetition credit agreement, and Banc of America Securities LLC, as sole arranger and sole book manager. The Debtors would use the cash collateral to (i) maintain their operations and provide funding to affiliates; (ii) pay certain prepetition obligations; and (iii) pay disbursements. As adequate protection, the Administrative Agent is granted replacement liens in (a) all postpetition rents generated by the qualified properties and (b) the qualified properties, with the same priority as the administrative agent's prepetition liens in the cash collateral. A full-text copy of the Fourth Interim Order is available for free at: http://bankrupt.com/misc/SECURITY_NATIONAL_cashcoll_4thorder.pdf About Security National Properties Funding III Eureka, California-based Security National Properties Funding III LLC owns and operates 33 commercial office, retail, industrial and other properties. Security National and various affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-13277) on Oct. 13, 2011. Judge Kevin Gross presides over the case. Andrew R. Remming, Esq., and Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, serve as the Debtors' counsel. GCG Inc. serves as the Debtors' claims and notice agent. The Debtors' scheduled assets total $24,758,433 while scheduled liabilities total $354,657,501. SEQUENOM INC: Files Infringement Lawsuits Against Aria and Natera ----------------------------------------------------------------- Sequenom, Inc., filed separate complaints against defendants (a) Aria Diagnostics, Inc., and (b) Natera, and DNA Diagnostics Center, Inc., in the United States District Court for the Southern District of California. The Aria Complaint also names Isis Innovation Limited as a nominal defendant for purposes of subject matter jurisdiction only and it seeks to realign Isis as a plaintiff in the matter. In the Complaints, the Company has alleged that Aria and Natera are directly infringing U.S Patent No. 6,258,540 entitled Non- Invasive Prenatal Diagnosis, which the Company has exclusively in- licensed from Isis. Aria and Natera filed separate complaints in the United States District Court for the Northern District of California seeking a declaratory judgment that they do not infringe the '540 Patent. The Company contends that the complaints filed by Aria and Natera are not a proper declaratory judgment action and should be dismissed. About Sequenom Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. Sequenom reported a net loss of $120.85 million on $47.45 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $71.01 million on $37.86 million of total revenue during the prior year. The Company also reported a net loss of $51.98 million on $40.42 million of total revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $98.82 million on $33.70 million of total revenues for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $152.99 million in total assets, $42.13 million in total liabilities and $110.85 million in total stockholders' equity. Ernst & Young LLP of San Diego, California, in its audit report attached to the 2010 financial statements, did not include a going concern qualification for Sequenom. E&Y, in its report on the 2009 results, expressed substantial doubt against Sequenom's ability as a going concern, noting that the Company "has incurred recurring operating losses and does not have sufficient working capital to fund operations through 2010." SHUANEY IRREVOCABLE: U.S. Trustee Won't Appoint Creditor's Panel ---------------------------------------------------------------- Charles F. Edwards, Assistant United States Trustee for Region 21, has informed the U.S. Bankruptcy Court for the Northern District of Florida that he will not appoint an Official Committee of Unsecured Creditors of Shuaney Irrevocable Trust, pursuant to 11 U.S.C. Sec.1102, until further notice. Shuaney Irrevocable Trust, in Fort Walton Beach, Florida, filed for Chapter 11 bankruptcy (Bankr. N.D. Fla. Case No. 11-31887) on Dec. 1, 2011. Judge William S. Shulman presides over the case. The Law Office of Mark Freund, Esq. -- loomf@comcast.net -- serves as the Debtor's counsel. The Debtor scheduled $20,996,723 in assets and $19,625,890 in debts. The petition was signed by Michael P. Spellman, Trustee. SMITH CREEK: U.S. Trustee Fails to Appoint Creditor's Committee --------------------------------------------------------------- Judy A. Robbins, United States Trustee for Region 7, is unable to appoint a committee an Official Committee of Unsecured Creditors of Smith Creek Partners, LP, pursuant to 11 U.S.C. Sec.1102, because there are less than three eligible unsecured creditors. Houston-Texas-based Smith Creek Partners LP filed for Chapter 11 bankruptcy (Bankr. S.D. Tex. Case No. 11-40495) on Dec. 7, 2011. Judge Jeff Bohm presides over the case. Richard L. Fuqua, II, Esq., at Fuqua & Associates, PC, serves as the Debtor's counsel. According to its schedules, Smith Creek disclosed $16,400,000 in total assets and $4,463,000 in total liabilities. The petition was signed by Stephen R. Fincher, president of Linchpin Investments, Inc., Smith Creek's general partner. STOCKDALE TOWER: U.S. Trustee Fails To Appoint Creditor's Panel --------------------------------------------------------------- August B. Lands, Acting United States Trustee for Region 17, has informed the U.S. Bankruptcy Court for the Eastern District of California that he is unable to appoint an Official Committee of Unsecured Creditors of Stockdale Tower 1, LLC, pursuant to 11 U.S.C. Sec.1102. About Stockdale Tower Bakersfield, California-based Stockdale Tower 1, LLC, filed for Chapter 11 bankruptcy (Bankr. E.D. Calif. Case No. 11-62167) on Nov. 7, 2011. Judge W. Richard Lee presides over the case. Scott T. Belden, Esq., and Jacob L. Eaton, Esq., of Klein, DeNatale, Goldner, Cooper, Rosenlieb & Kimball, LLP, serve as the Debtor's bankruptcy counsel. The Debtor disclosed $17,880,755 in assets and $17,870,212 in liabilities as of the Chapter 11 filing. SUDDENLY BEAUTIFUL: Feb. 8 Status Hearing Set in Involuntary Case ----------------------------------------------------------------- The Bankruptcy Court in Las Vegas has set a status hearing for Feb. 8, 2012, at 9:30 a.m. with respect to the involuntary Chapter 11 petition filed against Suddenly Beautiful, Inc. Las Vegas, Nevada-based Suddenly Beautiful Inc. was placed in bankruptcy after creditor M. Avila filed an involuntary Chapter 11 bankruptcy petition (Bankr. D. Nev. Case No. 12-10102) on Jan. 5, 2012. Judge Mike K. Nakagawa presides over the case. The petitioning creditor has appeared pro se in the case. SWEET PETROLEUM: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Sweet Petroleum Corporation dba Buellton 76 dba Lompoc 76 89 E Hwy 246 Buellton, CA 93427 Bankruptcy Case No.: 12-10300 Chapter 11 Petition Date: January 25, 2012 Court: United States Bankruptcy Court Central District of California (Santa Barbara) Judge: Robin Riblet Debtor's Counsel: Reed H. Olmstead, Esq. HURLBETT & FAUCHER 3324 State St., Suite O Santa Barbara, CA 93105 Tel: (805) 963-9111 Fax: (805) 963-2209 E-mail: reed@hf-bklaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb12-10300.pdf The petition was signed by Golam Mostafa, president. TARGA RESOURCE: Moody's Assigns 'Ba3' Rating to New Senior Notes ---------------------------------------------------------------- Moody's Investors Service assigned a Ba3 rating to Targa Resources Partners LP's (Targa) proposed $400 million senior unsecured notes due 2022. The partnership's Ba2 Corporate Family Rating, Ba2 Probability of Default Rating and the rating of the other existing senior notes were not affected by this action. The proceeds from the senior note offering will be used to reduce the borrowings under Targa's $1.1 billion senior secured revolving credit facility. After applying the proceeds, Targa is expected to have approximately $1 billion of revolver availability. The revolving credit facility is available for general corporate purposes, and in the recent past, it was used to fund the acquisition of storage and terminaling facilities. The outlook remains stable. RATINGS RATIONALE In early 2012, the Corporate Family Rating for Targa was upgraded to Ba2 from Ba3 to reflect the improving leverage profile and the increased emphasis on investments designed to boost the proportion of the partnership's cash flow derived from fee-based businesses. The senior note rating was upgraded at that time to Ba3 from B1. Because the new senior notes are refinancing existing outstanding debt, Moody's does not believe their issuance materially increases the partnership's credit risk. "The current rating level is supported by Moody's belief that Targa is focused on building a more durable and less volatile business profile while keeping the ratio of debt to EBITDA below 4.0x level," said Stuart Miller, Moody's Vice President and Senior Analyst. "Over time, if the percentage of fee-based operating income increases, future ratings improvements are possible." Over the last few years, Targa has reduced its earnings volatility, to some degree, by its investments in NGL transportation, fractionation, and distribution services. More recently, Targa has invested in storage and terminaling assets to increase the proportion of its cash flow that comes from fee-based revenues. However, the current credit rating remains constrained by the commodity price and volume risk embedded in Targa's legacy gas gathering and processing business. Roughly 75% of Targa's operating income is directly exposed to commodity price volatility, although much of the near term risk has been hedged with natural gas, crude oil, and direct product hedges. The ratings also remain constrained by the master limited partnership organizational structure. Like many midstream master limited partnerships, Targa has substantial negative free cash flow because of significant growth capital expenditures and a high distribution payout level, both of which increase credit risk and reliance on external capital sources. The ratio of debt to EBITDA (with Moody's standard adjustments) as of September 30, 2011 was 3.3x. Including the debt at Targa Resources Corp., leverage is marginally higher at 3.4x. Despite an aggressive capital program in 2012, Moody's projections suggest that leverage will not increase significantly as cash flow is realized from the investments made in 2011. To satisfy its short term liquidity needs, Targa relies on its $1,100 million senior secured revolving credit facility. The credit facility matures in July 2015 and current availability after application of the proceeds of the new senior notes is approximately $1 billion. This is more than sufficient to support the expected out-spending of internally generated cash flow in 2012. The financial covenants incorporated in the credit facility allow for a significant degradation in financial performance before they would be triggered. To be considered for any additional positive rating actions, Targa would need to show a commitment to maintaining leverage near 3.5x along with a significant improvement in the proportion of its operating income being generated from fee-based arrangements. Alternatively, a negative action could result if leverage exceeds 4.0x because of the high percentage of operating income that is currently being generated from less durable, non-fee based businesses. The principal methodology used in rating Targa Resource Partners LP was the Global Midstream Energy rating methodology published in November 2010. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. Targa Resource Partners LP is a mid-sized midstream master limited partnership headquartered in Houston, Texas. TARGA RESOURCES: S&P Assigns 'BB' Rating on $400-Mil. Sr. Notes --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' issue-level rating and '4' recovery rating to Targa Resources Partners L.P.'s and Targa Resources Partners Finance Corp.'s proposed $400 million senior unsecured notes due 2022. "The recovery rating of '4' indicates our expectation of average (30%-50%) recovery if a payment default occurs. The partnership intends to use net proceeds to reduce borrowings under its secured revolving credit facility and for general corporate purposes, which may include redeeming or repurchasing some of its outstanding notes, working capital, and acquisitions. As of Sept. 30, 2011, Targa had $535 million outstanding under its secured credit facility and total balance-sheet debt of $1.5 billion," S&P said. "Houston-based Targa is a midstream energy company that specializes in natural gas gathering and processing, and the fractionating and distribution of natural gas liquids. Our corporate credit rating on Targa is 'BB', and the outlook is stable," S&P said. Rating List Targa Resources Partners L.P. Corporate credit rating BB/Stable/-- New Ratings Targa Resources Partners L.P. Targa Resources Partners Finance Corp. $400 mil. senior unsecured notes due 2022 BB Recovery rating 4 TENN COMMERCE BANK: Closed; Republic B&T Assumes All Deposits ------------------------------------------------------------- Tennessee Commerce Bank of Franklin, Tenn., was closed on Jan. 27, 2012, by the Tennessee Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Republic Bank & Trust Company of Louisville, Ken., to assume all of the deposits of Tennessee Commerce Bank. The sole branch of Tennessee Commerce Bank will reopen during its regular banking hours as a branch of Republic Bank & Trust Company. Depositors of Tennessee Commerce Bank will automatically become depositors of Republic Bank & Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Tennessee Commerce Bank should continue to use their existing branch until they receive notice from Republic Bank & Trust Company that it has completed systems changes to allow other Republic Bank & Trust Company branches to process their accounts as well. As of Sept. 30, 2011, Tennessee Commerce Bank had around $1.185 billion in total assets and $1.156 billion in total deposits. In addition to assuming all of the deposits of the failed bank, Republic Bank & Trust Company agreed to purchase around $203.9 million of the failed bank's assets. The FDIC will retain most of the assets for later disposition. Customers with questions about the transaction should call the FDIC toll-free at 1-800-450-5668. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/tcb.html. The FDIC estimates that the cost to the Deposit Insurance Fund will be $416.8 million. Compared to other alternatives, Republic Bank & Trust Company's acquisition was the least costly resolution for the FDIC's DIF. Tennessee Commerce Bank is the fifth FDIC- insured institution to fail in the nation this year, and the first in Tennessee. The last FDIC-insured institution closed in the state was Bank of Alamo, on Nov. 8, 2002. TOWN CENTER AT DORAL: Judge Allows CDD to File Rival Plan --------------------------------------------------------- Brian Bandell, senior reporter at South Florida Business Journal, reports that U.S. Bankruptcy Judge Robert Mark threw a wrench into the plans of Miami-based Terra Group to acquire control of the 120-acre project of Town Center at Doral LLC when he allowed a secured creditor to file a competing plan. According to the report, in November 2011, Terra Group asked Mark to approve its "plan support agreement" with Town Center at Doral. Terra Group would finance the bankruptcy case and seek to acquire the equity interests of the Debtors. However, a community development district would have to take a significant discount on its claim for that to happen. The Debtor owes $110 million, including interest, to the community development district -- CDD -- and $103.9 million to mortgage holder AMTC CADC Venture. The CDD is a government entity that funded the infrastructure improvements to the site, which has approval for 1,109 homes, 230,000 square feet of flex office space and 188,000 square feet of retail/office space The report says Phil Hudson, Esq. -- pmhudson@arnstein.com -- a partner with Arnstein & Lehr in Miami, Florida, who represents the CDD in the bankruptcy case, said that a bankruptcy case has never stripped a CDD of its right to claim full collateral. This issue is important because CDDs are used to levy taxes in support of development projects across the country and bond investors must have confidence that they are worth something, Mr. Hudson said. The report says Judge Mark allowed the CDD to file a competing bankruptcy plan for Town Center at Doral within 14 days. Mr. Hudson said his client's plan would call for an open market auction that would guarantee the unsecured creditors at least $2 million. Even if the CDD wins the auction with a credit bid, it would pay the $2 million to the other creditors. About Town Center Town Center at Doral, LLC, Landmark at Doral East, LLC, Landmark at Doral South, LLC, Landmark Club at Doral, LLC, and Landmark at Doral Developers, LLC, companies associated with the aborted Landmark at Doral development, filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case Nos. 11-35884 to 11-35888) on Sept. 19, 2011, almost three years after AmTrust Bank sought to foreclose on the project. Town Center at Doral, LLC, posted assets of $29,297,300 and liabilities of $166,133,171. Isaac Kodsi signed the petitions as vice president. The Property consists of 16 individual tracts of land that remain undeveloped with the exception of an unfinished 4-level parking garage. Prior to the Petition Date, the Debtors had sought and obtained approvals for the development of residential units (townhomes and condominiums), retail/office/mixed use, and flex office at the Property. Mindy A. Mora, Esq., and Tara V. Trevorrow, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, in Miami, serve as counsel to the Debtors. Glenn D. Moses, Esq., at Genovese, Joblove & Battista, P.A., IN Miami, represents the official committee of unsecured creditors. Cleveland, Ohio-based AmTrust filed for foreclosure in October 2008 based on the $124.4 million in mortgages that were granted the developer in 2005. Several projects started by EB Developers fell into foreclosure after owner and CEO Elie Berdugo died in February 2008. TRAVELPORT INC: Bank Debt Trades at 17% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Travelport Inc. is a borrower traded in the secondary market at 83.42 cents-on-the- dollar during the week ended Friday, Jan. 27, 2012, an increase of 0.67 percentage points from the previous week, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Aug. 23, 2015, and carries Moody's B1 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Travelport Holdings Travelport Holdings is the direct parent of Travelport Limited, is a broad-based business services company and a leading provider of critical transaction processing solutions to companies operating in the global travel industry. With a presence in 160 countries and approximately 3,500 employees, Travelport is comprised of the global distribution system (GDS) business, which includes the Galileo and Worldspan brands and its Airline IT Solutions business, which hosts mission critical applications and provides business and data analysis solutions for major airlines. Travelport also owns approximately 48% of Orbitz Worldwide (NYSE: OWW), a leading global online travel company. Travelport is a private company owned by The Blackstone Group, One Equity Partners, Technology Crossover Ventures, and Travelport management. Travelport Holdings Limited is a holding company with no direct operations. Its principal assets are the direct and indirect equity interests it holds in its subsidiaries, including Travelport Limited. Travelport Limited, a direct subsidiary of Travelport Holdings Limited, reported net income of $283 million on $1.061 billion of net revenue for the six months ended June 30, 2011, compared with net income of $1 million on $1.056 billion of net revenue for the same period of 2010. Results for the six months ended June 30, 2011, includes gain of $312 million, net of tax, from the sale of sale of the Gullivers Travel Associates ("GTA") business to Kuoni Travel Holdings Limited ("Kuoni"). The sale was completed on May 5, 2011. Loss from continuing operations was $4 million during the six months ended June 30, 2011, compared with a loss of $2 million for the same period of 2010. The Company's balance sheet at Sept. 30, 2011, showed $3.43 billion in total assets, $4.21 billion in total liabilities and a $780 million total deficit. * * * As reported by the TCR on Oct. 10, 2011, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on travel services provider Travelport Holdings Limited (Travelport Holdings) and indirect subsidiary Travelport LLC (Travelport) to 'SD' (selective default) from 'CC'. The downgrades follow the implementation of a capital restructuring, which was necessary because of the Travelport group's high leverage, weak liquidity, and the upcoming maturity of its $693 million (as of end-June 2011) PIK loan in March 2012. "According to our criteria, we view this restructuring as a distressed exchange and tantamount to a default (see 'Rating Implications Of Exchange Offers And Similar Restructurings, Update,' published May 12, 2009, on RatingsDirect on the Global Credit Portal)," S&P related. TRAVELPORT INC: Bank Debt Trades at 14% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Travelport Inc. is a borrower traded in the secondary market at 86.25 cents-on-the- dollar during the week ended Friday, Jan. 27, 2012, an increase of 0.63 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 250 basis points above LIBOR to borrow under the facility. The bank loan matures on Aug. 23, 2013, and carries Moody's B1 rating. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Travelport Holdings Travelport Holdings is the direct parent of Travelport Limited, is a broad-based business services company and a leading provider of critical transaction processing solutions to companies operating in the global travel industry. With a presence in 160 countries and approximately 3,500 employees, Travelport is comprised of the global distribution system (GDS) business, which includes the Galileo and Worldspan brands and its Airline IT Solutions business, which hosts mission critical applications and provides business and data analysis solutions for major airlines. Travelport also owns approximately 48% of Orbitz Worldwide (NYSE: OWW), a leading global online travel company. Travelport is a private company owned by The Blackstone Group, One Equity Partners, Technology Crossover Ventures, and Travelport management. Travelport Holdings Limited is a holding company with no direct operations. Its principal assets are the direct and indirect equity interests it holds in its subsidiaries, including Travelport Limited. Travelport Limited, a direct subsidiary of Travelport Holdings Limited, reported net income of $283 million on $1.061 billion of net revenue for the six months ended June 30, 2011, compared with net income of $1 million on $1.056 billion of net revenue for the same period of 2010. Results for the six months ended June 30, 2011, includes gain of $312 million, net of tax, from the sale of sale of the Gullivers Travel Associates ("GTA") business to Kuoni Travel Holdings Limited ("Kuoni"). The sale was completed on May 5, 2011. Loss from continuing operations was $4 million during the six months ended June 30, 2011, compared with a loss of $2 million for the same period of 2010. The Company's balance sheet at Sept. 30, 2011, showed $3.43 billion in total assets, $4.21 billion in total liabilities and a $780 million total deficit. * * * As reported by the TCR on Oct. 10, 2011, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on travel services provider Travelport Holdings Limited (Travelport Holdings) and indirect subsidiary Travelport LLC (Travelport) to 'SD' (selective default) from 'CC'. The downgrades follow the implementation of a capital restructuring, which was necessary because of the Travelport group's high leverage, weak liquidity, and the upcoming maturity of its $693 million (as of end-June 2011) PIK loan in March 2012. "According to our criteria, we view this restructuring as a distressed exchange and tantamount to a default (see 'Rating Implications Of Exchange Offers And Similar Restructurings, Update,' published May 12, 2009, on RatingsDirect on the Global Credit Portal)," S&P related. TRIBUNE CO: MDL Panel Consolidates 44 Shareholders Suits -------------------------------------------------------- Michael ONeal of Chicago Tribune reported that a panel of federal district court judges consolidated 44 shareholder lawsuits brought by several groups of junior Tribune Co. shareholders relating to the media company's 2007 leveraged buyout. The U.S. Judicial Panel on Multidistrict Litigation's order will combine the lawsuits under Judge Richard Howell for pretrial purposes, meaning the federal judge will oversee all the briefing and discovery related to those cases, Chicago Tribune related. The panel said it would delay for now ruling whether four similar lawsuits against former Tribune shareholders brought by a group of company retirees should also be consolidated, the report stated. For now, all the cases are stayed per the U.S. Bankruptcy Court for the District of Delaware's SLCFC Order. Parties in Tribune's bankruptcy earlier agreed that the individual cases might be disruptive if they proceed, the report related. Consequently, Judge Howell's first step will likely be to hold a status conference within a month or two to speed himself up on the issues in the cases and determine, in coordination with the Bankruptcy Court, whether they would still be disruptive to Tribune's bankruptcy cases, which are now further along, a lawyer familiar with the case told Chicago Tribune. The cases arise from claims brought under state laws by a group of junior bondholders that the complex, debt-laden Tribune. buyout, orchestrated by Chicago billionaire Sam Zell, was a fraudulent conveyance, meaning the transaction left the company insolvent from the start, Chicago Tribune recalled. If proven, the bondholders argue, investors should not have benefited, which means the $8.2 billion they received for their stock at the time the deal closed should be made available to satisfy the more than $2.5 billion creditors claim they are owed, the report relayed. About estimated 33,000 to 35,000 investors are potentially on the hook for money they received in 2007, when the company went private at $34 a share, said the report. Defendants include large institutional investors and thousands of current and former employees of Tribune Co., which owns the Chicago Tribune, the Los Angeles Times and other media assets, the report noted. Many others are people who simply bought the stock on the open market, the report said. Many of those smaller shareholders objected to the consolidation of the cases on grounds that it would be disproportionately expensive and disruptive for them to defend themselves in New York, the report relayed. The Multidistrict Panel, however, said those concerns were outweighed by the efficiency of consolidation, according to the report. Former shareholders led by Robert R. McCormick Foundation previously disputed whether the junior bondholders have the right to pursue the lawsuits outside of bankruptcy court, Chicago Tribune related. In response, the bondholders led by Aurelius Capital Management, argued they have every right to try to recoup their losses under state fraudulent conveyance laws. Consequently, Judge Holwell will have to determine whether federal law in this case should pre-empt state law, the report added. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIBUNE CO: Deutsche Bank Wants Lift Stay on Fraud Suits -------------------------------------------------------- Deutsche Bank Trust Company Americas, Law Debenture Trust Company of New York, and Wilmington Trust Company, ask the U.S. Bankruptcy Court for the District of Delaware to lift the stay of prosecution of the state law constructive fraudulent conveyance actions imposed pursuant to the Court's April 25, 2011 order. On June 2 and 3, 2011, the Indenture Trustees commenced the SLCFC Actions by filing complaints in three state courts -- New York, Delaware and California -- and 20 federal district courts across the country including Arizona, California, Colorado, Connecticut, the District of Columbia, Florida, Illinois, Indiana, Massachusetts, Maryland, Minnesota, North Carolina, New Jersey, Ohio, Pennsylvania, Texas, Virginia, Vermont, Washington and Wisconsin. In accordance with the April 25 Order, the Indenture Trustees sought to stay the SLCFC Actions pending further order lifting the stays, and successfully obtained such stays in nearly all of the SLCFC Actions. They subsequently filed additional SLCFC Actions in Colorado, Texas and New York district courts. By order dated June 28, 2011, the Bankruptcy Court supplemented the April 25 Order to make clear that, among other things, the stay provisions of the April 25 Order did not preclude motion practice seeking to consolidate or coordinate, or notices of removal of, the SLCFC Actions. After entry of the June 28 Order, various defendants removed to federal court all of the SLCFC Actions that were originally filed by the Indenture Trustees in state court, save one. In December 2011, the U.S. Judicial Panel on Multidistrict Litigation ordered the SLCFC Actions pending in federal courts outside of New York transferred to Judge Richard J. Holwell of the U.S. District Court for the Southern District of New York. The MDL Panel also issued conditional transfer orders covering the remaining SLCFC Actions and certain actions commenced by former employees of the Times Mirror Company to the New York District Court. Judge Holwell further issued an order staying all of the Tribune-related cases consolidated before him pending further order of the New York District Court or the Bankruptcy Court. By this motion, the Indenture Trustees ask the Bankruptcy Court to lift the stay of the SLCFC Actions directed by the April 25 Order, so that the SLCFC Actions transferred to the New York District Court, and the California Action, can proceed on a schedule and in a manner to be determined by the courts presiding over the actions. Counsel to Deutsche Bank, Katharine L. Mayer, Esq., at McCarter & English LLP, in Wilmington, Delaware, notes that at the March 22, 2011 Hearing, the Bankruptcy Court determined that a temporary stay of the SLCFC Actions was necessary in order to, among other things, ensure that the parties-in-interest to the Debtors' then- pending confirmation litigation would have a full and fair opportunity to present all of their objections to the Competing Plans. In the Confirmation Opinion, however, the Bankruptcy Court ruled that confirmation objections regarding the SLCFC Actions, including -- whether those claims are preempted or otherwise impacted by Section 546(e) of the Bankruptcy Code, did not preclude confirmation of the DCL Plan, and -- are best left for determination by the courts hearing those claims, she points out. In light of this ruling, there is no longer any need to stay prosecution of the SLCFC Actions so that objections to the Competing Plans may be preserved, Ms. Mayer says. The Bankruptcy Court will consider the Indenture Trustee's request on February 2, 2012. Objections are due no later than January 26. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIBUNE CO: Chicago Tribune Offers Employee Voluntary Buyouts ------------------------------------------------------------- Robert Channick of Chicago Tribune reported that the newspaper firm told employees it will offer an undisclosed number of voluntary buyouts in the newsroom as it continues to grapple with a changing media landscape and challenging economy. Tribune senior vice president and editor of the Tribune Gerry Kern issued a memo outlining the voluntary separation program, which will be open to all editorial staff except top departmental management, the report relayed. "We begin the year with a need to reduce costs as we face the continued financial pressures from a weak economy and structural changes in our industry," Chicago Tribune quoted Mr. Kern as saying. The Tribune SVP however appeared to not rule out future layoffs, saying "we prefer to meet our financial goals entirely through this voluntary plan, but other actions may be required," according to Chicago Tribune. The buyout program will offer two weeks of base pay for the first year of service, and one week for every additional year completed, the report disclosed. Employees who accepted for a buyout will likely exit the newsroom between Feb. 10 and Feb. 24, the report noted. The company will make group outplacement and career counseling services available to those participating in the buyout program, the report said. The memo further noted that factors determining whether an employee will be accepted for a voluntary buyout include seniority, depth at various positions and business objectives, the report added. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TXU CORP: Bank Debt Trades at 35% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which TXU Corp., now known as Energy Future Holdings Corp., is a borrower traded in the secondary market at 64.85 cents-on-the-dollar during the week ended Friday, Jan. 27, 2012, an increase of 1.12 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 10, 2014, and carries Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80%-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. Energy Future Holdings Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $710 million on $2.32 billion of operating revenues for the three months ended Sept. 30, 2011, compared with a net loss of $2.90 billion on $2.60 billion of operating revenue for the same period during the prior year. The Company also reported a net loss of $1.77 billion on $5.67 billion of operating revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $2.97 million on $6.59 billion of operating revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $44.02 billion in total assets, $51.68 billion in total liabilities and a $7.66 billion total deficit. The Company's consolidated balance sheets at Dec. 31, 2010, showed $46.388 billion in total assets, $52.299 billion in total liabilities, and a stockholders' deficit of $5.911 billion. * * * In April 2011, Moody's Investors Service affirmed the 'Caa2' Corporate Family Rating, 'Caa3' Probability of Default Rating and SGL-4 Speculative Grade Liquidity Ratings of EFH. Outlook is stable. EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited financial flexibility; its capital structure appears to be untenable, calling into question the sustainability of the business model; and there is no expectation for any meaningful debt reduction over the next few years, beyond scheduled amortizations. At the end of February 2011, Fitch Ratings it does not expect to take any immediate rating action on EFH's Texas Competitive Electric Holdings Company LLC or their affiliates based on recent default allegations from lender Aurelius. EFH carries a 'CCC' corporate rating, with negative outlook, from Fitch. TRIBUNE CO: Bank Debt Trades at 36% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Tribune Co. is a borrower traded in the secondary market at 64.21 cents-on-the- dollar during the week ended Friday, Jan. 27, 2012, an increase of 2.12 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on May 17, 2014. Moody's has withdrawn its rating on the loan. The loan is one of the biggest gainers and losers among 155 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIUS THERAPEUTICS: Offering 8.6MM Common Shares at $5.25 Apiece ---------------------------------------------------------------- Trius Therapeutics, Inc., announced the pricing of an underwritten public offering of 8,600,000 shares of its common stock at a price to the public of $5.25 per share. The gross proceeds to Trius from this offering are expected to be approximately $45.2 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by Trius. The offering is expected to close on or about Jan. 31, 2012, subject to customary closing conditions. Citigroup and Piper Jaffray & Co. are acting as joint book-running managers and Canaccord Genuity Inc. and Ladenburg Thalmann & Co. Inc. are acting as co-managers in the offering. Trius has granted the underwriters a 30-day option to purchase up to an aggregate of 1,290,000 additional shares of common stock. Trius anticipates using the net proceeds from the offering for general corporate purposes, including clinical trial and other research and development expenses, capital expenditures, working capital and general and administrative expenses. The securities are being offered by Trius pursuant to a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission Sept. 15, 2011. A preliminary prospectus supplement related to the offering has been filed with the SEC and is available on the SEC's Web site at http://www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to these securities may also be obtained, when available, from Citigroup, Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, at 1-800-831-9146 and at batprospectusdept@citi.com or from Piper Jaffray & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, via telephone at 800-747-3924 or email at prospectus@pjc.com. 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." TRONOX INC: Moody's Assigns 'Ba3' Corporate Family Rating --------------------------------------------------------- Moody's Investors Service assigned a Ba3 Corporate Family Rating (CFR) to Tronox Incorporated and Ba2 rating to its proposed $550 million term loan due 2017. The term loan is being used to refinance the company's existing $425 million term loan and will incorporate terms allowing for the pending acquisition of the Exxaro Mineral Sands business that was announced in September 2011. The rating outlook is stable. The following summarizes the ratings: Tronox Incorporated Corporate Family Rating -- Ba3 Probability of Default Rating -- Ba3 $550mm term loan -- Ba2 (LGD3, 39%) Outlook: Stable RATINGS RATIONALE Tronox's Ba3 CFR reflects its strong operating performance, liquidity and credit metrics, along with Moody's expectation that continued favorable titanium dioxide (TiO2) industry conditions will result in robust financial results during 2012-2013. Industry conditions allowed Tronox to sell all its production and raise prices multiple times during 2011. The ratings are supported by Tronox's position as the fifth largest global producer, geographically diverse production assets, a global sales base, long-standing TiO2 customer relationships, economies of scale at its Hamilton plant and access to its own chloride production technology. Tronox's profit margins benefit from the shedding of its legacy environmental liabilities during the bankruptcy process completed in February 2011. The ratings are limited by the company's business profile (particularly the narrow product line) and size as well as the cyclical nature of the TiO2 industry. We believe that the TiO2 producers are experiencing peak of the cycle conditions and the duration of such robust economic conditions is uncertain as companies expand capacity and customers work to reduce usage. Moody's expects TiO2 producers to be better off than in the past, but the through the cycle profitability is uncertain. The ratings are supported by the strong credit metrics that are typical of higher rated companies, but tempered by expectations that these metrics will decline as the industry's peak of the cycle conditions pass sometime after 2013. Tronox's titanium ore feedstock contracts expose it to spot market prices, that are expected to escalate significantly in 2012-2013 as a result of the tight titanium ore supply situation, but will be offset by new supply from the Exxaro Mineral Sands business. The ratings assume that Tronox will close on the Exxaro Mineral Sands acquisition, which will be a credit positive for Tronox, resulting in a more favorable business profile that places Tronox in a better position to weather the vagaries of the business cycle with stronger and more stable earnings. The backward vertical integration provides a secure supply of titanium ore at a time when ore supplies are tight, alleviates the immediate cost pressure from ore feedstock price increases and allows the company to capture greater margins in the value chain and achieve synergies. The vertical integration into titanium ore is expected to provide a higher level of cash flow over the cycle, allowing for a more levered capital structure. It will have a long ore position, allowing it to capitalize on rising ore prices. The profitability of the Exxaro Mineral Sands business has varied historically and has generally been much lower than it is projected to be over the next two to three years. The use of equity and a relatively small cash outlay ($190 million) to fund the acquisition will give Tronox the flexibility to choose its long-term capital structure and adopt a financial philosophy consistent with its business and industry conditions. However, Moody's notes that acquisitions are subject to normal integration risks. While Tronox has some familiarity with the titanium ore business through its Tiwest joint venture in Australia, it does not have experience with operations such as the Exxaro Minerals Sands business in South Africa. Additionally, Tronox will be required to develop the proposed Fairbreeze mine at the KZN Mineral Sands site, which is not yet fully permitted, as the Hillendale mine winds down production in 2012. The assigned rating assumes that Tronox will not increase its balance sheet debt prior to consummating the Exxaro Mineral Sands acquisition, but there could be a leveraging event subsequent to the acquisition. Moody's expects the company to target a capital structure that would be supportive of the current or a higher CFR throughout its industry's cycle. (Given the current peak of the cycle conditions, Moody's expects the company's credit metrics to be supportive of a rating higher than the assigned rating.) To the extent that Moody's expects Tronox will be able to maintain a debt to total capitalization ratio of less than 28% (based on the pro forma combined company data presented in its Form S-4 dated 12/30/2011), Moody's could upgrade the ratings after the company establishes its target capital structure following the Exxaro Mineral Sands acquisition. There is little downward pressure on the ratings at this time, given the robust industry conditions and relatively low leverage for the rating. Moody's expects that Tronox will have ample liquidity supported by its cash balances ($131 million as of September 30, 2011), strong positive free cash flow ($112 million for the six months ended September 30, 2011) and unused availability under it asset-based revolving credit facility. Tronox may need to increase the size of its revolving credit facility or maintain cash balances after acquiring the Exxaro Mineral Sands business to accommodate higher liquidity needs. Moody's expects that the financial covenants requirements under the term loan and revolver will be easily met while Tronox generates strong profits in 2012-2013. The principal methodology used in rating Tronox was the Global Chemical Industry Methodology published in December 2009. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Tronox Incorporated (Tronox), headquartered in Oklahoma City, Oklahoma, is the world's fifth largest producer of titanium dioxide (TiO2). It operates three plants in Hamilton, MS, Botlek, The Netherlands, and Kwinana, Australia (Tiwest joint venture is 50% owned by Tronox/50% owned by Exxaro Resources Ltd.). The company is also a producer of electrolytic chemicals (approximately 8% of revenues for the twelve months ended September 30, 2011). Revenues were $1.6 billion for the twelve months ending September 30, 2011. TRONOX INC: S&P Assigns Prelim. 'BB' Corporate Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its preliminary 'BB' corporate credit rating to Oklahoma City-based Tronox Inc. "At the same time, we assigned our preliminary 'BBB-' issue-level rating and preliminary '1' recovery rating to the company's proposed $425 million senior secured term loan and $125 million delayed draw term loan. The '1' recovery rating reflects our expectation for a very high (90% to 100%) recovery in the event of a payment default based on the current capital structure," S&P said. "We are also placing the ratings on CreditWatch with developing implications pending further information on the company's acquisition and capital structure plans," S&P said. "In September 2011, Tronox announced a definitive agreement to acquire Exxaro Mineral Sands, a subsidiary of South Africa-based Exxaro Resources Ltd., in an equity-funded transaction valued at approximately $1.5 billion," said Standard & Poor's credit analyst Seamus Ryan. "We have placed all ratings on CreditWatch with developing implications to indicate the potential that the ratings could be lowered or affirmed once additional details related to the acquisition financing and longer-range financial policies become available. While we view this scenario as unlikely, we could raise the ratings modestly if Tronox closes the acquisition as expected and does not increase leverage to fund growth or shareholder rewards. In this scenario, we would view the combined company's business risk profile as improved. We view this as less likely in light of management's recent public comments regarding the potential for the post-acquisition capital structure to support more debt in order to optimize shareholder returns." "The preliminary ratings on Tronox reflect our assessment of its current business profile as 'weak' and financial risk profile as 'intermediate'. Our evaluation of the business risk profile stems from the company's focus on the cyclical titanium dioxide (TiO2) market, the potential for some margin contraction from rising titanium ore feedstock prices, and exposure to demand variations that reflect the level of economic growth in key markets. It also reflects company's good geographic diversity and operating efficiency, and our expectation that favorable industry conditions will support sustained pricing power during the next two years. Financial metrics are currently strong for the ratings, with the key ratio of funds from operations (FFO) to total adjusted debt reaching more than 50% as of Sept. 30, 2011. Our expectation at the rating is for FFO to total adjusted debt to remain above 30% over the cycle," S&P said. "The developing implications of the CreditWatch listing indicate that we could raise, affirm, or lower the ratings, depending on future developments, including the closing of the Exxaro Mineral Sands acquisition and the details of potential financing plans. In our assessment, we would balance the potential improvements to the business risk profile against the potential weakening of the financial risk profile arising from additional leverage and increased financial policy risk," S&P said. "While we view this scenario as unlikely," Mr. Ryan continued, "we could raise the ratings modestly if Tronox closes the acquisition as expected and does not increase leverage to fund growth or shareholder rewards. We could affirm the ratings if the company balances improvements to the business risk profile with capital structure objectives that are appropriate for the rating. We could lower the ratings if Tronox increases leverage without closing on the acquisition, or if the combined company increases leverage enough to weaken credit measures beyond our expectations for the current rating." UNISYS CORP: Joseph Harrosh Ceases to Hold 5% Equity Stake ---------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Joseph L. Harrosh disclosed that, as of Dec. 31, 2011, he beneficially owns less than 5% of outstanding shares of common stock of Unisys Corporation. As previously reported by the TCR on Jan. 14, 2011, Mr. Harrosh disclosed beneficial ownership of owns 2,826,112 common shares. A full-text copy of the amended filing is available at http://is.gd/Xb2KSh About Unisys Corp. Based in Blue Bell, Pennsylvania, Unisys Corporation (NYSE: UIS) -- http://www.unisys.com/-- provides a portfolio of IT services, software, and technology that solves critical problems for clients. With more than 26,000 employees, Unisys serves commercial organizations and government agencies throughout the world. The Company also reported net income of $42.30 million on $2.86 billion of revenue for the nine months ended Sept. 30, 2011, compared with net income of $140.20 million on $2.97 billion of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $2.56 billion in total assets, $3.16 billion in total liabilities and a $594.50 million total stockholders' deficit. * * * As reported by the Troubled Company Reporter on Feb. 24, 2011, Moody's Investors Service has affirmed Unisys' B1 corporate family rating and all other ratings, and also changed the rating outlook to positive from stable. This outlook change follows the announcement by Unisys of plans to issue mandatory convertible preferred stock, redeem secured notes, and tender for additional bonds which Moody' estimates will reduce secured debt by up to $390 million. Upon completion of the transactions, the loss given default assessments will be revised based on the remaining debt balances. In the May 5, 2011 edition of the TCR, Standard & Poor's Ratings Services raised its corporate credit rating on Blue Bell, Pa.- based Unisys Corp. to 'BB-' from 'B+', and removed the ratings from CreditWatch, where they were placed with positive implications on Feb. 22, 2011. "The upgrade reflects Unisys' improved financial profile following the recent debt redemptions," said Standard & Poor's credit analyst Martha Toll-Reed, "and adequate liquidity, which provides some capacity at the current rating for potential earnings volatility." "The ratings reflect our view that Unisys' improved financial profile and consistently positive annual free cash flow will provide sufficient cushion in the near term to mitigate the potential for ongoing revenue declines and operating performance volatility," added Ms. Toll- Reed. As reported by the TCR on Oct. 18, 2011, Fitch Ratings has affirmed and withdrawn the 'BB-' long-term Issuer Default Rating of Unisys Corporation. Fitch has decided to discontinue the rating, which is uncompensated. VAN HUNTER: Files Red-Lined Third Amended Plan of Liquidation ------------------------------------------------------------- The Frost National Bank and Corey Van Trease have filed a Red- Lined Third Amended Plan of Liquidation for Van Hunter Development, Ltd., with the U.S. Bankruptcy Court for the Eastern District of Texas. The Plan contemplates the liquidation of all property of the Debtor. The Debtor has placed a $75,000 retainer with its bankruptcy counsel. The retainer will be used to satisfy administrative claims in the Debtor's case. The proceeds of Frost's collateral will be used to satisfy closing costs and property taxes secured by such property with the remainder paid to Frost. The Plan segregates the various claims against and interests in the Debtor into seven (7) classes: Allowed Priority Claim of the IRS (Class 1), Allowed Secured Property Tax Claims (Class 2), Allowed Frost Claim (Class 3), Allowed JRW Construction, Inc. (Class 4), Other Alleged Secured Claims (Class 5), Allowed General Unsecured Claims (Class 6), and Interests in the Debtor (Class 7). Classes 3 ? 6 are Impaired, and, therefore, entitled to vote. Holders of Allowed Interests will retain their pre-petition interest in the Debtor until dissolution pursuant to Article 6.07 and will not receive any distributions on account of such Interests until the satisfaction of all amounts due Classes 1 - 6. The Debtor will distribute any Retainer remaining after payment of Allowed Administrative Claims set forth in Article 2.01 and Allowed Class 1 Claims, all unencumbered proceeds remaining after closing from the sale of the Unencumbered Lot, as well as other Debtor property or the proceeds thereof, pro-rata to Allowed Class 6 Claims until class 6 Claims are paid 100% of their Allowed Claims. Class 6 is Impaired and entitled to Vote on the Plan. Frost will retain all Liens securing the Debtor's obligations under the Frost Loan Documents. Class 3 is Impaired and entitled to vote on the Plan. A copy of the Red-Lined Third Amended Plan of Liquidation is available for free at: http://bankrupt.com/misc/vanhunter.frostred- lined3rdamendedplan.pdf About Van Hunter Development Dallas, Texas-based Van Hunter Development, Ltd,, is a limited partnership which owns various lots in the exclusive Chateau du Lac subdivision in Flower Mound, Texas. The Company filed for Chapter 11 bankruptcy (Bankr. E.D. Texas Case No. 10-40052) on Jan. 4, 2010. Singer & Levick, P.C., in Addison, Texas, serve as general bankruptcy counsel. In its schedules, the Debtor disclosed $16,378,784 in assets and $15,294,367 in liabilities as of the petition date. The Debtor is a limited partnership whose two principals are Gary Evans and Corey Van Trease. VILLA D'ESTE: Member Wants Court to Deny Case Dismissal Plea ------------------------------------------------------------ Dilip K. Ram, managing member of Villa D'Este LP, asks the U.S. Bankruptcy Court for the Central District of California to deny motions to dismiss or convert its Chapter 11 case to one under Chapter 7 of the Bankruptcy Code; and for relief from stay by Bank of America. According to Mr. Ram: -- creditor BofA has violated the automatic stay of Section 362 of the Bankruptcy Code; and -- creditor BofA has wrongfully interfered with the bankruptcy in an attempt to obtain a preference or preferential transfer in violation of Sections 547 and 548 of the Bankruptcy Code. About Villa D'Este Villa D'Este LP, in Los Angeles, California, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-21488) on Sept. 28, 2011. Judge Victoria S. Kaufman presides over the case. The Law Office of Elaine D. Etingoff -- elaineetingoff@gmail.com -- serves as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Phillip Ram, operating manager of general partner. Affiliates that previously filed separate Chapter 11 petitions are: Norman Salter (Bankr. C.D. Calif. Case No. 09-11653) on Feb. 17, 2009; and Phillip Ram, aka Dilip K. Ram (Bankr. C.D. Calif. Case No. 09-10969) on Jan. 21, 2009. Secured lender Bank of America is represented by Patricia H. Lyon, Esq., and Celine Mui, Esq. -- phlyon@frenchandlyon.com and cmui@frenchandlyon.com -- at French & Lyon PC. VILLAGE AT PENN: Files Schedules of Assets and Liabilities ---------------------------------------------------------- The Village at Penn State Retirement Community has filed with the U.S. Bankruptcy Court for the Middle District of Pennsylvania its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $3,225,751 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $34,652,679 E. Creditors Holding Unsecured Priority Claims $221,902 F. Creditors Holding Unsecured Non-priority Claims $28,866,784 ----------- ----------- TOTAL $3,225,751 $63,741,066 A copy of The Village at Penn State Retirement Community's schedules is available for free at: http://bankrupt.com/misc/THE_VILLAGE_AT_PENN_sal.pdf About The Village at Penn State The Village at Penn State Retirement Community is a nonprofit corporation organized and existing under the laws of the Commonwealth of Pennsylvania and qualifies as a tax exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. It owns and operates a continuing care retirement community at 260 Lion's Hill Road, State College Pennsylvania. It is not affiliated with any religious or charitable organization. The Village at Penn State Retirement Community sought Chapter 11 protection (Bankr. M.D. Pa. Case No. 11-08005) on Nov. 30, 2011, due to its inability to make the required payments under a loan agreement with Blair County Industrial Development Authority since October 2009. While J.P. Morgan Trust Company, as predecessor Indenture Trustee to Wells Fargo Bank, National Association, issued a notice of default to the Debtor on account of those failures, the Trustee opted to work with the Debtor in furtherance of a mutually-agreeable solution rather than pursue state court remedies. The Chapter 11 case, and the planned sale of the Debtor's assets, is the direct result of those efforts. Judge Mary D. France presides over the case. Lawyers at McElroy, Deutsch, Mulvaney & Carpenter LLP serve as the Debtor's counsel. Latsha Davis & McKenna, P.C., serves as special corporate labor and healthcare counsel; SF & Company serves as accountants; Pepper Hamilton LLP acts as special construction litigation counsel; Pepper Hamilton also serves as special counsel; and RBC Capital Markets serves as broker and advisor. The Village at Penn State Retirement Community estimated assets of $10 million to $50 million and estimated debts of $50 million to $100 million. Marianne Hogg signed the petition as executive director. Wells Fargo is represented in the case by Daniel S. Bleck, Esq., at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. The U.S. Trustee has not appointed an official committee of unsecured creditors in the case due to insufficient response from creditors. Wilmarie Gonzalez has been appointed as Long-term Care Ombudsman. She is represented by Cynthia A. Haines -- cihaines@pa.gov -- and Harriet F. Withstandley at Commonwealth of Pennsylvania Department of Aging. VILLAGE GROUP: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Village Group 30, Inc. 2191 Jones Road Fort Lee, NJ 07024 Bankruptcy Case No.: 12-11715 Chapter 11 Petition Date: January 25, 2012 Court: U.S. Bankruptcy Court District of New Jersey (Newark) Judge: Rosemary Gambardella Debtor's Counsel: Young Min Kim, Esq. LAW OFFICES OF YOUNG MIN KIM, PC 1627 Parker Avenue, 2nd Floor Fort Lee, NJ 07024 Tel: (201) 944-5767 Scheduled Assets: $3,000,500 Scheduled Liabilities: $7,760,000 The Company?s list of its largest unsecured creditors filed with the petition does not contain any entry. The petition was signed by Dee Sek Yang, president. WATERFORD GAMING: Moody's Says Caa3 CFR Not Hit by Change Offer --------------------------------------------------------------- Moody's Investors Service said that Waterford Gaming, LLC's Caa3 Corporate Family Rating and negative rating outlook are not affected by Mohegan Tribal Gaming Authority's (Caa3/ negative) recently announced exchange offer. According to a 8-K filing, Mohegan Tribal Gaming Authority announced that it has commenced a series of debt refinancing transactions designed to extend the maturity dates of the company's capital structure, including private par exchange offers and an amendment and restatement of its credit facility. Notably, the exchange proposal does not include languages that contemplate either a blockage or a reduction of relinquishment payment, the sole source of income and cash flow for Waterford. However, Waterford's Caa3 CFR and negative outlook continue to reflect the high default probability and weak recovery prospects for bond holders irrespective of the final outcome of MTGA's debt exchange. Waterford is a special purpose company formed solely for the purpose of holding its 50% partnership interest, as a general partner, in TCA, a Connecticut general partnership and the manager (until January 1, 2000) and developer of the Mohegan Sun casino located in Uncasville, CT. TCA receives relinquishment fees based on certain gross revenues of the Mohegan Sun casino, which is owned and operated by MTGA. WILCOX EMBARCADERO: Files Chapter 11 Petition in Oakland -------------------------------------------------------- Wilcox Embarcadero Associates, LLC, filed a Chapter 11 petition in Oakland (Bankr. N.D. Calif. Case No. 12-40758) on Jan. 26, 2012. The Debtor disclosed $10.2 million in assets and under $8.6 million in liabilities in its schedules. According to the petition, the Debtor is a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101 (51B). The Debtor owns commercial real property in Oakland that its valued at $10.1 million and secures a $8.55 million debt to Wells Fargo and Owens Mortgage Investment Fund, LP. WILCOX EMBARCADERO: Case Summary & 19 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Wilcox Embarcadero Associates, LLC 977 Stow Lane Lafayette, CA 94549 Bankruptcy Case No.: 12-40758 Chapter 11 Petition Date: January 26, 2012 Court: U.S. Bankruptcy Court Northern District of California (Oakland) Debtor's Counsel: Alan E. Ramos, Esq. STEELE, GEORGE, SCHOFIELD & RAMOS, LLP 700 Ygnacio Valley Road, #300 Walnut Creek, CA 94596-3838 Tel: (925) 280-1700 E-mail: aramos@sgsrlaw.com Scheduled Assets: $10,215,315 Scheduled Debts: $8,616,584 The petition was signed by Jeffrey A. Wilcox, managing member. Debtor's List of Its 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Aspire Public Schools Lease Deposit $31,016 1001 22nd Avenue, Suite 100 Oakland, CA 94606 Restaurant Designs Lease Deposit $6,450 1001 22nd Avenue Oakland, CA 94606 Outdoor Pro Shop Lease Deposit $4,980 1822 Embarcadero Oakland, CA 94606 Hopalong Animal Rescue Lease Deposit $3,500 The Shooter Company -- $3,404 Irish Monkey Lease Deposit $3,300 Braithwaites Conumer Goods, LLC Lease Deposit $3,000 Hellenic Pacific Management, Inc. -- $3,000 Universal Janitorial -- $2,539 Matt Lucas Lease Deposit $1,700 Aquamatic Fire Protection, Inc. -- $1,650 ACME Fire Extinguisher Co., Inc. -- $1,590 Donal O'Sullivan Lease Deposit $1,250 Associated Contractors, Inc. -- $1,140 Tree Care of California -- $750 PAC Integrations, Inc. -- $585 Flynn Plumbing -- $271 Chris Beckham Construction -- $250 Martin's Sweeping Service -- $140 WINDRUSH SCHOOL: Asks Court to Dismiss its Chapter 11 Case ---------------------------------------------------------- Windrusth School asks the U.S. Bankruptcy Court for the Northern District of California to dismiss its Chapter 11 case with prejudice, pursuant to Section 1112 of the Bankruptcy Code. The Debtor tells the Court that, assuming that it is in compliance with the the terms of the WFB Settlement Agreement as of Jan. 31, 2012, there will be no further need for protection for the Debtor under the provisions of chapter 11, and therefore, dismissal is warranted. The WFB Settlement Agreement provides for continued operation of the Debtor's school through the end of the 2011-2012 academic year, assuming continuing performance of the Debtor's obligations under that agreement, including adherence to an agreed-upon budget subject to certain variations permitted under the settlement agreement's terms. Among other expenditures, the agreed-upon budget provides for payment of all prepetition vendor claims owed by the Debtor, in the approximate amount of $50,000, upon dismissal of the Debtor's Chapter 11 case. Also under the terms of the agreed-upon budget, priority claims (payroll and employee benefit obligations) will continue to be satisfied in the normal course of business, and contingent obligations under Tuition Contracts will be satisfied by continued education of enrolled students in the current school year. Under the terms of the WFB Settlement Agreement, the Debtor is required to satisfy certain revenue, cash balance and other performance thresholds as of the end of each calendar month during the term of the settlement. In particular, revenue, headcount and cashflow criteria are established for Dec. 31, 2011, and Jan. 31, 2012, and in the event that those criteria are satisfied and the Debtor is otherwise in compliance with the terms of the settlement agreement, pursuant to Section 13 of the WFB Settlement Agreement, the Debtor's Chapter 11 case will be dismissed with prejudice in early February 2012. The Debtor has satisfied all of the criteria required of it as of Dec. 31, 2011, under the terms of the WFB Settlement Agreement, and the Debtor anticipates satisfying the agreement's requirements as of Jan. 31, 2012, as well. Accordingly, assuming achievement of those requirements, dismissal of the Debtor's chapter 11 case will be appropriate in early February 2012 under the terms of the WFB Settlement Agreement. The U.S. Bankruptcy Court for the Northern District of California has scheduled a hearing for Feb. 8, 2012, at 9:15 a.m. to consider the Debtor's dismissal motion. About Windrush School Based in El Cerrito, California, Windrush School is a private K-8 school. The Company filed for Chapter 11 protection on Sept. 30, 2011 (Bankr. D. N.D. Calif. Case No. 11-70440). Judge William J. Lafferty presides over the case. Merle C. Meyers, Esq., and Michele Thompson, Esq., at Meyers Law Group P.C., I San Francisco, Calif., represent the Debtor. In its schedules, the Debtor disclosed $14,809,364 in assets and $13,206,276 in liabilities. Attorneys for secured lender Wells Fargo Bank N.A. are Mike C. Buckley, Esq., James Neudecker, Esq., and Renee C. Feldman, Esq., at Reed Smith LLP. Wells Fargo is the Indenture Trustee under an Indenture between California Statewide Communities Development Authority dated as of July 1, 2017, pertaining to $13,000,000 of revenue bonds issued by the Authority. WORLD SURVEILLANCE: Issues 6.2-Mil. Common Shares to Brio Capital ----------------------------------------------------------------- World Surveillance Group Inc. issued an aggregate of 6,215,543 shares of common stock to Brio Capital L.P. in accordance with a Court order dated December 2011. Brio Capital L.P., the holder of several warrants dating back to 2006, filed an action against the Company on Feb. 25, 2011, in the District Court for the Southern District of New York which was withdrawn. A new action was filed on March 28, 2011, in New York Supreme Court for, among other things, the issuance of approximately 6.2 million shares of common stock, par value $0.00001 per share upon the exercise of certain warrants. The New York Supreme Court granted a non-final Summary Judgment Order in favor of Brio requiring the Company to issue 6,215,543 shares of Common Stock. The issuance relates to the cashless exercise of certain Class A and Class B Warrants issued by the Company to Brio Capital dating back to 2006. A hearing will be held at a later date to determine an amount of legal fees the Company will be required to pay. The Brio Shares were issued as restricted securities under an exemption provided by Section 4(2) of the Securities Act of 1933, as amended. However, pursuant to an opinion of counsel issued in connection with the provisions of Rule 144 promulgated by the Securities and Exchange Commission pursuant to the Act, the Brio Shares will be freely tradable upon issuance. About World Surveillance World Surveillance Group Inc. designs, develops, markets and sells autonomous lighter-than-air (LTA) unmanned aerial vehicles (UAVs) capable of carrying payloads that provide persistent security and/or wireless communication from air to ground solutions at low, mid and high altitudes. The Company's airships, when integrated with electronics systems and other high technology payloads, are designed for use by government-related and commercial entities that require real-time intelligence, surveillance and reconnaissance or communications support for military, homeland defense, border control, drug interdiction, natural disaster relief and maritime missions. The Company is headquartered at the Kennedy Space Center, in Florida. The Company reported a net loss of $340,155 on $130,144 of net sales for the nine months ended Sept. 30, 2011, compared with a net loss of $7.78 million on $200,000 of net sales for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $2.94 million in total assets, $16.87 million in total liabilities and a $13.93 million total stockholders' deficit. Rosen Seymour Shapss Martin & Company LLP, in New York, expressed substantial doubt about Sanswire's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2010. The independent auditor noted that the Company has experienced significant losses and negative cash flows, resulting in decreased capital and increased accumulated deficits. W.R. GRACE: NJ Court Dismisses Claims vs. Integrity Insurance ------------------------------------------------------------- W.R. Grace & Co. appealed from the denial of its claims for insurance benefits on account of its alleged liability for asbestos-related injuries that were allegedly covered by policies of excess insurance purchased from Integrity Insurance Company, an insurance entity that is presently in liquidation. At issue is whether Grace's proofs of claim met the requirements of the Uniform Insurers Liquidation Act and interpreted by the New Jersey Supreme Court. In a Jan 11, 2012 memorandum and opinion, a three-member panel of justices of the Superior Court of New Jersey, Appellate Division, composes of Judges Edith K. Payne, Susan L. Reisner, and Marie P. Simonelli affirmed the denial after finding that the proofs failed to meet the requirements of the Act and precedent. In its appeal, Grace relied on the report of its expert witness, Dr. Mark A. Peterson, who submitted an expert report regarding the valuation of claims dated June 2007, and presented a summary of his conclusions to the bankruptcy court during plan confirmation hearings that included his estimate of the value of claims pending at the time of bankruptcy in the amount of $549 million and his estimate of the value of claims arising during the bankruptcy period in the sum of $2.253 billion. However, after a review of that report, the Superior Court determined that the figures disclosed are premised on estimations based on Grace's prior loss experience, a forecast of future claims handling approaches and their results, and upon the loss experience of comparable asbestos claim defendants like Johns Manville. Thus, the Superior Court ruled, the estimates of the value of the claims do not "stand on their own," but instead, are dependent, among other things, upon values attributed to other claims. As a consequence, the claims are not "absolute" under the standards for absolute claims set forth by the Supreme Court, the Superior Court held. The fact that the claimants are known does not change this analysis, the Court added. The Superior Court also held that the Uniform Insurers Liquidation Act, as adopted in New Jersey, provides a comprehensive mechanism for the liquidation of insurance companies and for allowance of certain claims against the estates of those companies and federal bankruptcy law plays no part in this State regulatory scheme. The Superior Court also affirmed the denial of Grace's supplemental proof of claim for recovery of $641 million allegedly paid on personal injury claims before April 2, 2001. The Superior Court held that Grace has offered no explanation why the data was not timely furnished nor has it offered relevant precedent that would permit it to supplement its POCs with information in its possession from the outset and to compel consideration of its untimely POCs by the liquidator of Integrity. The case is Commissioner of Insurance v. Integrity Insurance Company, No. A-250-10T4 (N.J.). A copy of the Jan. 11 Decision is available at http://is.gd/EDtDmMfrom Leagle.com W.R. Grace & Co. is represented by: Kenneth E. Sharperson, Esq. Robert M. Horkovich, Esq. Robert Y. Chung, Esq. ANDERSON KILL & OLICK, P.C. 1251 Avenue of the Americas New York, NY 10020 Tel: (212) 278-1000 Fax: (212) 278-1733 E-mail: ksharperson@andersonkill.com rhorkovich@andersonkill.com rchung@andersonkill.com The NJ Commissioner of Insurance is represented by: David M. Freeman, Esq. John D. Gagnon, Esq. MAZIE SLATER KATZ & FREEMAN, L.L.C. 103 Eisenhower Parkway, 2nd Floor Roseland, NJ 07068 Tel: (973) 328-9898 E-mail: dfreeman@mskf.net jgagnon@mskf.net About W.R. Grace & Co. Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) - - http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace has obtained confirmation from the bankruptcy court of a plan co-proposed with the Official Committee of Asbestos Personal Injury Claimants, the Official Committee of Equity Security Holders, and the Asbestos Future Claimants Representative. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. Implementation of the Plan has been held up by appeals in District Court from various parties, including a group of prepetition bank lenders and the Official Committee of Unsecured Creditors. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W.R. GRACE: Libby Site Waterways Still Contaminated --------------------------------------------------- Tests of the waterways surrounding Libby, Montana, show extremely high levels of asbestos, complicating a cleanup that has already cost $370 million over the past decade, the Great Falls Tribune reported in Dec. 2012. W.R. Grace & Co. mined asbestos-tainted vermiculite near Libby to make residential insulation until 1990. Now the area is one of the largest superfund sites in the nation's history. An estimated 400 people have died and 1,750 were sickened by the asbestos dust released from the vermiculite mine. Until recently asbestos contamination in the water near the mine was not given as much attention as the concentrations in the air. The health effects from ingesting the mineral are not as well documented as those from inhaling it; however, concerns arose when the levels in Rainy Creek showed a count of 55 million asbestos fibers per liter on May 17. The limit for the same type of asbestos fibers in drinking water is only 7 million fibers (greater than 10 microns in length) per liter. State officials called the results "troubling," according to the Tribune, and asked the EPA and Grace to keep asbestos-contaminated sediment away from the water with berms along the creeks, more vegetation, and other methods. "EMSL Analytical, Inc. has three decades of experience testing for asbestos, and our expertise has made us the nation's leading asbestos testing laboratory with over 30 locations nationwide," states Ed Cahill, EMSL's National Director of Asbestos. "We use the most advanced methods available to analyze asbestos in various types of samples, including water, soil, rock, air, settled dust, building materials, and vermiculite." EMSL Analytical, Inc. -- http://www.emsl.com/-- is a nationally recognized and locally focused provider of consumer product, environmental, industrial hygiene, food and materials testing services to professionals and the general public. In addition, the company offers a large variety of air sampling equipment, sampling cassettes, and monitoring equipment. The company has an extensive list of accreditations from leading organizations, as well as state and federal regulating bodies. About W.R. Grace & Co. Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) - - http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace has obtained confirmation from the bankruptcy court of a plan co-proposed with the Official Committee of Asbestos Personal Injury Claimants, the Official Committee of Equity Security Holders, and the Asbestos Future Claimants Representative. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. Implementation of the Plan has been held up by appeals in District Court from various parties, including a group of prepetition bank lenders and the Official Committee of Unsecured Creditors. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W.R. GRACE: Former Martin Marietta Exec. Joins Board ---------------------------------------------------- W. R. Grace & Co. (NYSE: GRA) announced the election of Janice K. Henry to its Board of Directors. Mr. Henry's election, which is effective immediately, increases the size of the Board to 10 directors. Mr. Henry, 60, most recently served as Senior Vice President of Martin Marietta Materials, Inc., a producer of construction aggregates, until her retirement in June 2006. Since her retirement, she has served on several boards, and currently is a director of Cliffs Natural Resources Inc. Over the course of Mr. Henry's career, she held numerous positions in financial leadership including serving as Chief Financial Officer and Treasurer at Martin Marietta Materials, Inc., and numerous other financial and accounting positions at Martin Marietta Corporation (now Lockheed Martin Corporation). "Janice's business and financial experience, including acquisitions and capital structuring, is compelling," said Fred Festa, Grace's Chairman and CEO. "Her strategic guidance and perspective will be valuable to our board and leadership team." SEC Filings In a Form 8-K filing with the Securities and Exchange Commission on January 20, 2012, Grace disclosed that the Board elected Ms. Henry as a Director and appointed her to the Audit, Compensation, Nominating and Governance, and Corporate Responsibility Committees. In another regulatory filing, Grace disclosed that Ms. Henry does not beneficially own any Grace security as of January 18, 2012. About W.R. Grace & Co. Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) - - http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace has obtained confirmation from the bankruptcy court of a plan co-proposed with the Official Committee of Asbestos Personal Injury Claimants, the Official Committee of Equity Security Holders, and the Asbestos Future Claimants Representative. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. Implementation of the Plan has been held up by appeals in District Court from various parties, including a group of prepetition bank lenders and the Official Committee of Unsecured Creditors. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ZAIS INVESTMENT: Hildene Capital Withdraws Reorganization Plan -------------------------------------------------------------- Hildene Capital Management, LLC, et al., notified that U.S. Bankruptcy Court for the District of New Jersey that they had withdrawn the proposed Plan Of Reorganization for Zais Investment Grade Limited VII. On Sept. 30, 2011, Hildene Capital Management and Hildene Opportunities Master Fund, Ltd. filed a Plan of Reorganization for the Debtor. The Plan was amended on Nov. 7. Hildene Capital related that they had reached a settlement with certain creditors of the Debtor's estate, thus, they will no longer be pursuing confirmation of the Plan. As a result of the withdrawal of the Plan, parties are no longer required to submit their ballots to the voting agent. Additionally, the Plan confirmation hearing scheduled for Feb. 6, 2012, at 10 a.m. (Eastern Time) is canceled. Hildene Capital is represented by: Jonathan Pickhardt, Esq. Susheel Kirpalani, Esq. Scott C. Shelley, Esq. QUINN EMANUEL URQUHART& SULLIVAN LLP 51 Madison Avenue, 22nd Floor New York, NY 10010 Tel: (212) 849-7000 Fax: (212) 849-7100 E-mail: onpickhardt@quinnemanuel.com scottshelley@quinnemanuel.com - and - Eric D. Winston, Esq. 865 S. Figueroa St., 10th Floor Los Angeles, CA 90017 Tel: (213) 443-3000 Fax: (213) 443-3100 About Zais Investment Grade Limited Zais Investment Grade Limited VII is based in Grand Cayman. On April 1, 2011, Anchorage Capital Master Offshore, Ltd., GRF Master Fund, L.P., and Anchorage Illiquid Opportunities Offshore Masters, L.P. filed an involuntary Chapter 11 petition against Zais Investment Grade Limited VII. On April 26, 2011, the U.S. Bankruptcy Court for the District of New Jersey entered an order for relief under chapter 11 of the Bankruptcy Code. The Debtor tapped Wollmuth Maher & Deutsch LLP as general bankruptcy counsel, and Jones Day as special counsel. The Debtor disclosed US$365,771,549 in liabilities in its schedules. * Distressed Investors Get Creative as Default Rate Remains Low --------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that as Hunting for returns amid the corporate default drought, U.S. distressed investors are exploring ways to invest in Europe and to take higher-risk tranches of the capital structure in plays closer to home, said fund managers and distressed investors. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Share- Total Total Holders Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ ------- ------- ANOORAQ RESOURCE ARQ SJ 927.7 (148.7) 29.2 AUTOZONE INC AZO US 5,932.6 (1,347.1) (736.3) LORILLARD INC LO US 3,152.0 (1,174.0) 1,299.0 DUN & BRADSTREET DNB US 1,775.6 (558.0) (478.3) MEAD JOHNSON MJN US 2,580.0 (144.8) 678.3 WEIGHT WATCHERS WTW US 1,086.5 (470.5) (292.3) CLOROX CO CLX US 4,077.0 (76.0) (30.0) TAUBMAN CENTERS TCO US 2,518.2 (467.9) - MEDIVATION INC MDVN US 188.3 (3.9) 89.4 DIRECTV-A DTV US 18,232.0 (2,471.0) 103.0 VERISK ANALYTI-A VRSK US 1,379.9 (158.9) (234.2) AMC NETWORKS-A AMCX US 2,121.5 (1,065.5) 519.5 SUN COMMUNITIES SUI US 1,328.6 (72.4) - MOODY'S CORP MCO US 2,521.3 (174.2) 525.1 CHOICE HOTELS CHH US 467.9 (14.4) 28.0 VERISIGN INC VRSN US 1,657.7 (166.7) 724.5 DOMINO'S PIZZA DPZ US 438.2 (1,221.0) 118.2 IMPERVA INC IMPV US 42.5 (6.6) (5.8) GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 IPCS INC IPCS US 559.2 (33.0) 72.1 HCA HOLDINGS INC HCA US 23,756.0 (9,062.0) 2,422.0 MAINSTREET EQUIT MEQ CN 477.7 (11.1) - RENTECH NITROGEN RNF US 152.4 (76.1) (32.3) SALLY BEAUTY HOL SBH US 1,728.6 (219.0) 419.1 CHENIERE ENERGY CQP US 1,803.0 (524.1) 67.7 GROUPON INC GRPN US 795.6 (15.6) (301.0) UNISYS CORP UIS US 2,566.9 (594.5) 464.7 RSC HOLDINGS INC RRR US 3,075.9 (50.7) (199.1) AMERISTAR CASINO ASCA US 2,039.6 (105.7) (50.8) CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - LEVEL 3 COMM INC LVLT US 9,254.0 (523.0) 1,058.0 THERAVANCE THRX US 283.3 (59.2) 229.4 MONEYGRAM INTERN MGI US 5,000.3 (108.2) 33.9 VECTOR GROUP LTD VGR US 931.0 (66.7) 252.6 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 INCYTE CORP INCY US 371.2 (181.0) 225.5 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) PROTECTION ONE PONE US 562.9 (61.8) (7.6) ANGIE'S LIST INC ANGI US 32.6 (38.9) (25.9) BOSTON PIZZA R-U BPF-U CN 146.9 (105.3) (2.0) REVLON INC-A REV US 1,081.7 (685.1) 148.6 CLOVIS ONCOLOGY CLVS US 26.4 (18.1) (19.2) OTELCO INC-IDS OTT-U CN 316.1 (10.1) 22.9 IDENIX PHARM IDIX US 88.8 (2.3) 54.6 CABLEVISION SY-A CVC US 6,740.1 (5,525.9) (886.1) OTELCO INC-IDS OTT US 316.1 (10.1) 22.9 MANNING & NAPIER MN US 66.1 (184.6) - NATIONAL CINEMED NCMI US 807.9 (346.2) 56.6 FREESCALE SEMICO FSL US 3,596.0 (4,488.0) 1,386.0 SINCLAIR BROAD-A SBGI US 1,563.8 (125.4) 45.7 WESTMORELAND COA WLB US 769.0 (174.4) (5.9) FNB UNITED CORP FNBN US 1,643.9 (129.9) - REGAL ENTERTAI-A RGC US 2,262.0 (555.7) (25.8) QUALITY DISTRIBU QLTY US 304.3 (105.9) 44.1 JUST ENERGY GROU JE CN 1,584.2 (242.2) (215.6) JUST ENERGY GROU JSTEF US 1,584.2 (242.2) (215.6) AMER AXLE & MFG AXL US 2,232.8 (373.3) 125.6 DEAN FOODS CO DF US 5,911.2 (58.1) 327.7 CHENIERE ENERGY LNG US 2,651.4 (446.9) (282.7) SINCLAIR BROAD-A SBTA GR 1,563.8 (125.4) 45.7 ACCO BRANDS CORP ABD US 1,050.3 (32.6) 298.7 LIZ CLAIBORNE LIZ US 1,144.0 (420.0) (97.3) NEXSTAR BROADC-A NXST US 582.7 (187.0) 26.2 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) TOWN SPORTS INTE CLUB US 445.1 (3.2) (30.8) WARNER MUSIC GRO WMG US 3,583.0 (289.0) (630.0) NYMOX PHARMACEUT NYMX US 6.5 (5.5) 3.3 ISTA PHARMACEUTI ISTA US 137.5 (34.8) (7.5) PRIMEDIA INC PRM US 208.0 (91.7) 3.6 BLUEKNIGHT ENERG BKEP US 320.8 (12.5) (69.9) QWEST COMMUNICAT Q US 16,849.0 (1,560.0) (2,828.0) NPS PHARM INC NPSP US 237.4 (38.6) 183.5 MERITOR INC MTOR US 2,663.0 (961.0) 206.0 PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PDL BIOPHARMA IN PDLI US 270.5 (243.2) 44.6 DIGITAL DOMAIN M DDMG US 178.9 (85.7) (38.3) MORGANS HOTEL GR MHGC US 480.8 (77.2) (4.1) PALM INC PALM US 1,007.2 (6.2) 141.7 GENCORP INC GY US 994.2 (143.4) 102.2 CC MEDIA-A CCMO US 16,508.9 (7,456.0) 1,531.3 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 HUGHES TELEMATIC HUTC US 94.0 (111.8) (39.0) ABSOLUTE SOFTWRE ABT CN 120.2 (9.2) 2.7 SMART TECHNOL-A SMA CN 514.9 (9.4) 171.8 LIN TV CORP-CL A TVL US 815.8 (115.0) 56.6 SMART TECHNOL-A SMT US 514.9 (9.4) 171.8 DENNY'S CORP DENN US 280.6 (95.5) (40.1) HUGHES TELEMATIC HUTCU US 94.0 (111.8) (39.0) SYNERGY PHARMACE SGYP US 2.1 (8.6) (6.1) CENVEO INC CVO US 1,407.1 (331.1) 222.9 CINCINNATI BELL CBB US 2,683.8 (626.1) 22.7 CANADIAN SATEL-A XSR CN 174.4 (29.8) (55.9) ODYSSEY MARINE OMEX US 25.8 (0.7) (4.1) ********* 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 ***