/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/120313.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, March 13, 2012, Vol. 16, No. 72 Headlines 321 18TH STREET: Case Summary & 6 Largest Unsecured Creditors A&M PROPERTY: Case Summary & 3 Largest Unsecured Creditors ALEXANDER SRP: Cash Collateral Hearing Set for March 16 ALEXANDER SRP: Has Until March 28 to File Schedules ALEXANDER SRP: Sec. 341(a) Creditors' Meeting on April 4 ALEXANDRIA REAL ESTATE: S&P Rates $130MM Series E Pref. Stock 'BB' AMERICAN AIRLINES: USAir Purchases American Web Names APEX KATY: Patient Care Ombudsman Not Necessary ARTHUR KLAPSTEIN: Canadian Bankr. Case Recognized by U.S. Court AXXIUM CUSTOM: Case Summary & 2 Largest Unsecured Creditors AZ-TECH RADIOLOGY: Case Summary & 20 Largest Unsecured Creditors BAKERS FOOTWEAR: Marxe and Greenhouse Disclose 17.6% Equity Stake BARNWELL COUNTY: Plan Outline Hearing Scheduled for March 19 BANKUNITED FINANCIAL: Liquidating Plan Becomes Effective BAY THREE: Case Summary & 20 Largest Unsecured Creditors BE AEROSPACE: S&P Rates $500-Mil. Senior Unsecured Notes at 'BB' BEAZER HOMES: Moody's Updates Credit Opinion, Gives 'Caa2' CFR BERNARD L. MADOFF: Wilpon, Madoff Jury Trial Begins Monday BEXAR COUNTY: Moody's Reviews B1, B3 Bond Ratings for Downgrade BRI BUSINESS: Case Summary & 5 Largest Unsecured Creditors BRIER CREEK: Case Summary & 8 Largest Unsecured Creditors CANO PETROLEUM: Case Summary & Largest Unsecured Creditors CAMP COOLEY: U.S. Trustee Wants Case Dismissed or Converted CARITAS HEALTH: April 25 Hearing on Plan Confirmation Scheduled CASELLA WASTE: S&P Lowers Corp. Rating to 'B'; Outlook Negative CATHAY ENTERPRISES: Design Trend Wins $550,000 Judgment CENVEO CORP: Moody's Rates New Notes 'Caa2'; Affirms 'B3' CFR CHALLENGE GOLF: Case Summary & 20 Largest Unsecured Creditors CHESTER DOWNS: S&P Keeps 'B-' Corp. Credit Rating; Outlook Stable CHINA TEL GROUP: Enters Into $1MM Line of Credit with Weal Group CIMA LLC: Alford Clausen Okayed as Corporate Counsel CLARE OAKS: Has Final Approval of $6 Million DIP Loan CLEAN BURN: Perdue BioEnergy Wants Plan Outline Adequacy Denied CMS ENERGY: Moody's Affirms 'Ba1' Senior Unsecured Ratings COLLEEN STRAWBRIDGE: Transfer of Apartment Ownership Affirmed COMMUNITY HEALTH: S&P Rates $750-Mil. Sr. Secured Term Loan 'BB' COMMUNITY MEMORIAL: Patient Care Ombudsman Named COMMUNITY MEMORIAL: Has 5-Member Creditors' Committee COMMUNITY MEMORIAL: Seeks Approval of McDonald Hopkins Hiring COMMUNITY MEMORIAL: Taps Conway MacKenzie as Financial Advisors CONTINENTAL AIRLINES: S&P Keeps 'B' Corporate Credit Rating COVANTA HOLDING: Moody's Issues Summary Credit Opinion COVANTA HOLDING: S&P Affirms 'BB-' Corporate Credit Rating CRYOPORT INC: Terminates Employment of Mark Engelhart's as CCO CLUB DEPORTIVO: Case Summary & 13 Largest Unsecured Creditors DELTA PETROLEUM: S&P Withdraws 'D' Corporate Credit Rating DENISON COUNTRY: Case Summary & 4 Largest Unsecured Creditors DEX ONE: Secures Lender Approval for Credit Pact Amendments DYNEGY HOLDINGS: Wins Nod to Reject New Windsor Office Lease DYNEGY HOLDINGS: Examiner Wins OK for Davies Ward as Tax Counsel EAGLE POINT: Galpin Files Schedules of Assets & Liabilities EASTMAN KODAK: Court Approves Lazard as Investment Banker EASTMAN KODAK: Wins Nod for Linklaters as Foreign Counsel EASTMAN KODAK: To Close Graphic Communications Unit in Bulgaria EASTMAN KODAK: Wells Fargo Now Co-Collateral Agent Under DIP Loan EATON MOERY: Wants to Borrow Money from Insider Bryan Moery EATON MOERY: U.S. Trustee Wants Ch. 11 Case Dismissed or Converted EATON MOERY: Gets Court Nod to Renew First National Bank Note EDISON INTERNATIONAL: Moody's Issues Summary Credit Opinion EDUCATION MANAGEMENT: S&P Revises Outlook on 'BB-' CCR to Negative EDWARD DEETS: Files Schedules of Assets and Liabilities EFD LTD: Chapter 11 Plan Confirmation Hearing Reset for April 9 EMMIS COMMUNICATIONS: T. Stabosz Owns 5.3% of Class A Shares EMPIRE DISTRICT: Moody's Issues Summary Credit Opinion EMPIRE RESORTS: To Issue 3-Mil. Shares Under 2008 Incentive Plan EMPIRE RESORTS: Presents Concord Resort Redevelopment Master Plan EMPIRE RESORTS: Louis Cappelli Discloses 5.5% Equity Stake EV ENERGY: S&P Keeps 'B-' Rating on $500-Mil. Sr. Unsecured Notes EV ENERGY: S&P Keeps 'B-' Rating on $400-Mil. Sr. Unsecured Notes EVERGREEN SOLAR: Wants to Abandon Devens Facility FIRST DATA: Moody's Rates $850-Mil. First Lien Notes at 'B1' FRANCISCAN COMMUNITIES: March 30 Set as General Claims Bar Date FRESNO PACIFIC: Moody's Withdraws 'Ba2' Rating on Revenue Bonds GELT PROPERTIES: Dunne Wright OK'd as Maryland Property Manager GETTY PETROLEUM: Stops 9 Lawsuits Involving Indemnified Parties GLOBAL AVIATION: Wants to Hire Ernst & Young LLP as Tax Advisor GLOBAL AVIATION: Ford & Harrison LLP as Special Labor Counsel GLOBAL AVIATION: Taps Kurtzman Carson as Administrative Agent GLOBAL AVIATION: Taps Pachulski as Conflicts Counsel GREAT PLAINS: Moody's Issues Summary Credit Opinion GUZMAN & GONZALEZ: Case Summary & 2 Largest Unsecured Creditors HAWAIIAN ELECTRIC: Moody's Issues Summary Credit Opinion HISJ HOLDINGS: Case Summary & 20 Largest Unsecured Creditors IMEDICOR INC: Incurs $627,901 Net Loss in December 31 Quarter INN & SUITES: Case Summary & 14 Largest Unsecured Creditors INTEGRATED FREIGHT: Cross Creek Assets Foreclosed by Creditors INTERNAL FIXATION: Sells 70,000 8% Convertible Note to Asher ISTAR FINANCIAL: Moody's Rates Sr. Secured Facility at 'B1/B2' JAMAR SANTOS: Case Summary & 20 Largest Unsecured Creditors JEANS.COM INC: Case Summary & 20 Largest Unsecured Creditors JOE'S PROPERTIES: Case Summary & 8 Largest Unsecured Creditors JORDAN MAX DENNING: Dist. Court Says Country Boys Not Insider KNOBLE CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors L190-1 SHADOW: Case Summary & 9 Largest Unsecured Creditors LA JOLLA: Has 4.2 Million Outstanding Common Shares LAMPEAS FAMILY: Case Summary & 15 Largest Unsecured Creditors LINWOOD FURNITURE: Plans to Modernize Operations M WAIKIKI: Marriott's Plan Provides Full Payment to Most Creditors MAJESTIC CAPITAL: Plan Confirmation Hearing Set for April 25 MARKET STREET: Must File Chapter 11 Plan by End of March MARKETING WORLDWIDE: Angus Gillis Discloses 9.8% Equity Stake MEDCLEAN TECHNOLOGIES: Robert Hockett Resigns from Board MAUI INTERIORS: Case Summary & 3 Largest Unsecured Creditors MELANIE SQUARE: Files for Chapter 11 Bankruptcy Protection MELANIE SQUARE: Case Summary & 9 Largest Unsecured Creditors MOHAWK INDUSTRIES: Moody's Affirms 'Ba1' Corporate Family Rating MONTANA ELECTRIC: Rejects Great Falls City's Request for Rate Cut MT. ZION: Court Okays Cash Collateral Use Until May 1 MUELLER WATER: Moody's Says U.S. Pipe Sale No Impact on 'B3' CFR NEBRASKA BOOK: Files New Plan Cutting Out Subordinated Debt NORTH EAST TRANSFER: Files for Chapter 11 Bankruptcy Protection NRG ENERGY: Moody's Issues Summary Credit Opinion NUTRA PHARMA: Board OKs Bruno Sartori as Chief Financial Officer NV ENERGY: Moody's Issues Summary Credit Opinion OPA HOSPITALITY: Voluntary Chapter 11 Case Summary PANELTECH INTERNATIONAL: Seeks Chapter 11 Bankruptcy Protection PANELTECH INT'L: Case Summary & 2 Largest Unsecured Creditors PARK PLASTICS: Has Until July 19 to File Chapter 11 Plan PEMBROOK PINES: Case Summary & 14 Largest Unsecured Creditors PENTAIR INC: Moody's Withdraws 'Ba1' Sr. Unsecured Issuer Rating PETROQUEST ENERGY: S&P Gives B Corp. Credit Rating, Outlook Stable PFF BANCORP: Sets April 25 Plan Confirmation Hearing PPL CORPORATION: Moody's Issues Summary Credit Opinion PRECISION OPTICS: Austin Marxe Equity Stake Down to 39.7% PUGET SOUND: Moody's Issues Summary Credit Opinion QUALITY DISTRIBUTION: Prices 5MM Shares Offering at $13 Apiece QUANTUM FUEL: Incurs $38.5-Mil. Net Loss in 8 Mos. Ended Dec. 31 R&G MORTGAGE: Says Remaining Real Estate Assets Worth $833K R&G MORTGAGE: Taps Foley & Lardner as Bankruptcy Counsel R&G MORTGAGE: Prescient to Manage & Market Real Estate R&G MORTGAGE: Hiring FDIC as Management Agent R.E. LOANS: Says Venue Transfer Will Not Assure Case Consolidation RADIATION THERAPY: Moody's Says Goodwill Impairment Credit Neg. RESCARE INC: Moody's Upgrades Corporate Family Rating to 'Ba3' RIMO LANDWORX: Case Summary & 3 Largest Unsecured Creditors ROCKWALL DEV: Case Summary & 4 Largest Unsecured Creditors ROTHSTEIN ROSENFELDT: Suit v. Regent Stays in Bankr. Court For Now ROVI CORP: S&P Affirms 'BB-' Corp. Credit Rating; Outlook Stable SAHARA TOWNE: Case Summary & 8 Largest Unsecured Creditors SELECT TREE: Case Summary & 20 Largest Unsecured Creditors SEQUENOM INC: Incurs $74.1 Million Net Loss in 2011 SILGAN HOLDINGS: Moody's Rates $300MM Sr. Unsec. Notes at 'Ba2' SPANISH GROVE: Case Summary & Unsecured Creditor SQUARE ONE: Case Summary & 7 Largest Unsecured Creditors TEFFT BRIDGE: Case Summary & 20 Largest Unsecured Creditors TEMPLE CHURCH: Case Summary & 19 Largest Unsecured Creditors TENNECO INC: Moody's Affirms 'Ba3' Corporate Family Rating TENNECO INC: S&P Keeps 'BB' Corp. Credit Rating; Outlook Stable TIMOS INCORPORATED: Case Summary & 19 Largest Unsecured Creditors TODD MCFARLANE: Settles Copyright Issue With Gaiman for $382,000 TRAINOR GLASS: Case Summary & 20 Largest Unsecured Creditors TRIDENT MICROSYSTEMS: Entropic Has Final Nod to Buy Business TRU-WAY CHURCH: Voluntary Chapter 11 Case Summary TXU CORP: Bank Debt Trades at 43% Off in Secondary Market TXU CORP: Bank Debt Trades at 38% Off in Secondary Market UNI-PIXEL INC: Incurs $8.5 Million Net Loss in 2011 UNIGENE LABORATORIES: Incurs $17.9 Million Net Loss in 2011 US CAPITAL HOLDINGS: CanPartners Foreclosure Cues Ch. 11 Filing VERSO PAPER: S&P Rates $345-Mil. Senior Secured Notes at 'BB-' WAIAKEA WATERFRONT: Case Summary & Largest Unsecured Creditor WATERLOO RESTAURANT: In Chapter 11 to Sell Assets WATERLOO RESTAURANT: Case Summary & 20 Largest Unsecured Creditors WAVELAND PROFESSIONAL: Voluntary Chapter 11 Case Summary WEIGHT WATCHERS: S&P Assigns 'BB+' Senior Secured Debt Rating WESTAR ENERGY: Moody's Issues Summary Credit Opinion YACOOBIAN ENTERPRISES: Bristol Buys 3 Hotels for $9.8 Million ZALE CORP: Files Form 10-Q, Reports $28.8MM Earnings in Q2 2012 ZOGENIX INC: Incurs $23.7 Million Net Loss in Fourth Quarter ZOO ENTERTAINMENT: In Talks with D. Smith on Possible Financing ZOO ENTERTAINMENT: MMB Agrees to Provide $200,000 Add'l Funding * Chicago's City National Bank Failure is 13th This Year * S&P 2012 Global Corporate Defaults Tally Rises to 23 * Large Companies With Insolvent Balance Sheets ********* 321 18TH STREET: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: 321 18th Street, LLC 6328 Eastern Avenue, NE Washington, DC 20011 Bankruptcy Case No.: 12-00170 Chapter 11 Petition Date: March 7, 2012 Court: United States Bankruptcy Court District of Columbia (Washington, D.C.) Judge: S. Martin Teel, Jr. Debtor's Counsel: Richard H. Gins, Esq. THE LAW OFFICE OF RICHARD H. GINS LLC 3 Bethesda Metro Center, Suite 430 Bethesda, MD 20814 Tel: (301) 718-1078 Fax: (301) 718-8659 E-mail: Richard@ginslaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the list of six largest unsecured creditors is available for free at http://bankrupt.com/misc/dcb12-00170.pdf The petition was signed by Vincent L. Abell, managing member. A&M PROPERTY: Case Summary & 3 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: A&M Property Management, LLC 155 Kirkland Circle, #400 Oswego, IL 60543 Bankruptcy Case No.: 12-09457 Chapter 11 Petition Date: March 9, 2012 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Susan Pierson Sonderby Debtor's Counsel: Chris D. Rouskey, Esq. ROUSKEY AND BALDACCI 151 Springfield Ave. Joliet, IL 60435 Tel: (815) 741-2118 Fax: (815) 741-0670 E-mail: rouskey-baldacci@sbcglobal.net Scheduled Assets: $1,527,525 Scheduled Liabilities: $1,000,901 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb12-09457.pdf The petition was signed by David Kives, manager. ALEXANDER SRP: Cash Collateral Hearing Set for March 16 ------------------------------------------------------- Alexander SRP Apartments, LLC, will appear before the Court on March 16, 2012, at 11:00 a.m., to seek authority to use cash collateral. On Feb. 26, 2008, the Debtor obtained financing from Regions Bank in the original principal amount of $17,119,000 for the construction of the Odyssey Lake Apartments. The Note matured Jan. 26, 2011. On May 12, 2011, Regions Bank and the Debtor entered into a Forbearance Agreement extending the term of the Note, which expired Jan. 26, 2012. The Note has changed hands several times. On July 22, 2011, Regions Bank assigned the Loan Documents to LSREF2 Baron Trust 2011. On Sept. 20, 2011, LSREF2 Baron Trust 2011 assigned the Loan Documents to Wells Fargo Bank, N.A. Finally, on Feb. 13, 2012, Wells Fargo Bank, N.A., assigned the Loan Documents to LSREF2 Baron, LLC. A construction defect resulted in water intrusion into some of the units on the Property and has resulted in claims against contractors and architects and has limited the Debtor's ability to reach fully stabilized occupancy at 90% required to obtain permanent financing and pay off the matured Note. LSREF2 Baron asserts liens and security interests in the Property. It also asserts that the proceeds received from the Property consisting of rental payments made by tenants is "cash collateral" as defined in 11 U.S.C. Sec. 363(a). The Debtor said it needs to use cash collateral for working capital and other general corporate purposes during the pendency of the Chapter 11 case. As adequate protection to the Lender to the extent of any diminution in value of the Lender's prepetition collateral, the Debtor proposes to provide a replacement lien in postpetition rents and other income from the Property in the same order of priority as existed prepetition for such Lender. In addition, cash collateral will only be used for items set forth in a budget to be approved by the Court. The Debtor believes the value of the Property is sufficiently in excess of the accrued principal and interest owed on Lender's Note that the risk of diminution in value of the collateral is minimal. Alexander SRP Apartments Alexander SRP Apartments, LLC, the owner and operator of a 232- unit apartment complex known as Odyssey Lake Apartments, located in Brunswick, Georgia, filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 12-20272) on March 5, 2012. The apartment is currently roughly 84% occupied. The Debtor said it is a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B). It estimated assets and debts of $10 million to $50 million. Judge Susan D. Barrett oversees the case, taking over from Judge John S. Dalis. Robert M. Cunningham, Esq., at Hunter Maclean Exley & Dunn, PC; and Laura E. Woodson, Esq., and Robert Williamson, Esq. -- lwoodson@swlawfirm.com and rwilliamson@swlawfirm.com -- at Scroggins & Williamson, P.C., serve as counsel for the Debtor. ALEXANDER SRP: Has Until March 28 to File Schedules --------------------------------------------------- Alexander SRP Apartments, LLC, sought and obtained an extension from the Bankruptcy Court to file its schedules of assets and liabilities and statement of financial affairs by March 28, 2012. Alexander SRP Apartments, the owner and operator of a 232-unit apartment complex known as Odyssey Lake Apartments, located in Brunswick, Georgia, filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 12-20272) on March 5, 2012. The apartment is currently roughly 84% occupied. The Debtor said it is a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B). It estimated assets and debts of $10 million to $50 million. Judge Susan D. Barrett oversees the case, taking over from Judge John S. Dalis. Robert M. Cunningham, Esq., at Hunter Maclean Exley & Dunn, PC; and Laura E. Woodson, Esq., and Robert Williamson, Esq., at Scroggins & Williamson, P.C., serve as counsel for the Debtor. ALEXANDER SRP: Sec. 341(a) Creditors' Meeting on April 4 -------------------------------------------------------- The U.S. Trustee in Savannah, Georgia, will hold a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the Chapter 11 case of Alexander SRP Apartments, LLC, on April 4, 2012, at 1:00 p.m. at Brunswick Meeting Room. The last day to oppose discharge or dischargeability is June 4, 2012. Proofs of claim are due in the case by July 3, 2012. However, governmental units may file proofs of claim by Sept. 4, 2012. Alexander SRP Apartments Alexander SRP Apartments, LLC, the owner and operator of a 232- unit apartment complex known as Odyssey Lake Apartments, located in Brunswick, Georgia, filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 12-20272) on March 5, 2012. The apartment is currently roughly 84% occupied. The Debtor said it is a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B). It estimated assets and debts of $10 million to $50 million. Judge Susan D. Barrett oversees the case, taking over from Judge John S. Dalis. Robert M. Cunningham, Esq., at Hunter Maclean Exley & Dunn, PC; and Laura E. Woodson, Esq., and Robert Williamson, Esq., at Scroggins & Williamson, P.C., serve as counsel for the Debtor. ALEXANDRIA REAL ESTATE: S&P Rates $130MM Series E Pref. Stock 'BB' ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'BB' rating to the $130 million 6.45% series E cumulative redeemable preferred stock issued by Pasadena California-based Alexandria Real Estate Equities Inc. Subject to board approval, the company intends to call for redemption its 8.375% series C preferred stock. The new lower-cost preferred issuance will save the company a modest $1.7 million in annual preferred dividends. "Our rating on Alexandria reflects the company's satisfactory business risk profile evidenced by the portfolio's well-located assets in key life science markets, which have exhibited stability and positive same-store performance through the recent downturn, a strong tenant roster, and favorable lease terms that should support core cash flow stability, which is balanced by an active development pipeline, including significant land holdings. We consider the company's financial risk profile to be significant, reflecting an improved leverage profile, a still high debt-plus- preferred-EDITDA ratio, and adequate but strengthening coverage measures. The financial profile also reflects a high proportion of short-term, low-cost floating-rate debt that subsidizes debt coverage measures," S&P said. "The stable outlook reflects our expectation that core cash flow will remain stable, and that incremental cash flow from acquisitions and redevelopment/development will enhance overall cash flow and improve debt coverage. Specifically, we expect fixed-charge coverage (FCC) to improve to 2.3x or better over the next 12 months. We would consider an upgrade if FCC rises comfortably above 2.5x, the debt-plus-preferred shares-to-EBITDA ratio declines to the 6x-7x range, and Alexandria reduces its exposure to value-added assets. We would downgrade the issuer if FCC falls below 2.0x for a prolonged period of time, liquidity becomes constrained, or if the company experiences any meaningful development stumbles," S&P said. Rating List Alexandria Real Estate Equities Inc./Alexandria Real Estate Equities L.P. Corporate credit rating BBB-/Stable New Rating Alexandria Real Estate Equities Inc. $130 million 6.45% Ser. E Pfd. BB AMERICAN AIRLINES: USAir Purchases American Web Names ----------------------------------------------------- Susan Carey, writing for The Wall Street Journal, reports that US Airways Group Inc. has claimed a number of Internet addresses that could come in handy in the event of a combination with American Airlines. WSJ relates a number of Web addresses -- including American-USAirways.com, AmericanUSAirways.net, USandAA.com and OneworldOneairline.com -- were registered by a third-party Internet domain registrar on Friday "The purchase of these domain names, along with any potential transaction names, is simply a step to ensure others do not use our marks in a way that might negatively impact our brand," US Airways said, according to the report. Although it "is not imperative that US Airways participate in further consolidation . . . we are interested in studying potential value-enhancing opportunities, including a possible US Airways-AMR transaction," US Airways added. WSJ says American declined to comment. US Airways disclosed in January that it hired investment bankers Barclays Capital and Millstein & Co., and law firm Latham & Watkins LLP to help it assess a possible bid for AMR. Delta Air Lines Inc. and private equity firm TPG Capital also have in the past few months expressed interest in purchasing or investing in AMR, people familiar with the matter have told the Journal. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). APEX KATY: Patient Care Ombudsman Not Necessary ----------------------------------------------- Melissa A. Haselden, Esq., at Hoover Slovacek LLP, has informed the Bankruptcy Court that a patient care ombudsman is not required in the Chapter 11 case of Apex Katy Physicians, LLC. According to a notice filed by the Hoover firm, the Debtor is currently not engaged in a "health care business," as defined in 11 U.S.C. 101(27A). The Debtor owns real property and improvements, along with certain related incidental equipment, that, in the past, have been utilized to operate a hospital facility. Currently the Debtor has no patients or operations in this facility. Accordingly, appointment of a patient care ombudsman pursuant to 11 U.S.C. Sec. 333 is not required in the case. About Apex Katy Physicians Apex Katy Physicians, LLC, filed a bare-bones Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-31848) on March 6, 2012, estimating $10 million to $50 million in assets and debts. Judge Marvin Isgur presides over the case. Attorneys at Hoover Slovacek, LLP, represent the Debtor. An affiliate, Apex Long Term Acute Care - Katy, LP, a long-term care facility, filed a Chapter 11 petition (Case No. 09-37096) on Sept. 25, 2009. ARTHUR KLAPSTEIN: Canadian Bankr. Case Recognized by U.S. Court --------------------------------------------------------------- The Hon. George B. Nielsen of the U.S. Bankruptcy Court for the District of Arizona entered an order recognizing Arthur Cecil Klapstein's Canadian Bankruptcy Case as a foreign main proceeding. The Chapter 15 petition for recognition of a foreign main proceeding was brought by Mackay & Company Ltd., Russell Law, CA, CIRP, CFE, Chartered Insolvency & Restructuring Practitioner, its president, as the trustee and authorized foreign representative in the bankruptcy case that is pending in the Court of Queen's Bench of Alberta Judicial District of Edmonton in Bankruptcy. The Court said that the Debtor has satisfied the requirements pursuant to Sections 1504, 1515 and 1517 of the Bankruptcy Code. About Arthur Klapstein Mackay & Company, Ltd., as foreign representative, filed a Chapter 15 petition for Arthur Cecil Klapstein also known as Art Klapstein (Bank. D. Ariz. Case No. 11-32589) on Nov. 28, 2011. The petitioner is represented by Joseph WM. Kruchek, Esq., at Kutak Rock LLP. Klepstein is estimated to have assets of up to $500,000 and liabilities at $100 million to $500 million. Records kept by the TCR indicate that Mackay & Company on April 27, 2005, commenced a Sec. 304 petition (Bankr. D. Ariz. Case No. 05-07414) for debtors Arthur Cecil and Eugenie Klapstein. According to the 2005 filing, the Debtors domiciled in and have their principal place of business in Canada and the Debtors have bankruptcy cases in Canada. The Sec. 304 proceeding was commenced after Mackay learned of assets located in the U.S., including bank records of funds held in Chase Bank One, Bank of America and Wells Fargo. AXXIUM CUSTOM: Case Summary & 2 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Axxium Custom Homes Dallas LLC 16990 Dallas Parkway Suite 101 Dallas, TX 75248 Bankruptcy Case No.: 12-31504 Chapter 11 Petition Date: March 6, 2012 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Stacey G. Jernigan Debtor's Counsel: Eric A. Liepins, Esq. ERIC A. LIEPINS, P.C. 12770 Coit Rd., Suite 1100 Dallas, TX 75251 Tel: (972) 991-5591 E-mail: eric@ealpc.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $100,001 to $500,000 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb12-31504.pdf The petition was signed by Ali Manteghi, managing member. AZ-TECH RADIOLOGY: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: AZ-Tech Radiology & Open M.R.I., L.L.C. 2653 W. Guadalupe Road Mesa, AZ 85202 Bankruptcy Case No.: 12-04702 Chapter 11 Petition Date: March 9, 2012 Affiliates that simultaneously filed Chapter 11 petitions: Debtor Case No. ------ -------- Great Western Developers, LLC 12-04703 Accident Rehab & Physical Therapy, L.L.C. 12-04704 Az-Tech Equipment Leasing, LLC 12-04705 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: George B. Nielsen, Jr. Debtor's Counsel: Brenda K. Martin, Esq. OSBORN MALEDON, P.A. The Phoenix Plaza 2929 N. Central Avenue, Suite 2100 Phoenix, AZ 85012-2794 Tel: (602) 640-9346 Fax: (602) 664-2043 E-mail: bmartin@omlaw.com - and ? Warren J. Stapleton, Esq. OSBORN MALEDON, P.A. 2929 N. Central Avenue, Suite 2100 Phoenix, AZ 85012 Tel: (602) 640-9354 Fax: (602) 640-2088 E-mail: wstapleton@omlaw.com AZ-Tech: Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 Great Western: Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petitions were signed by Rakesh Pahwa, manager. AZ-Tech Radiology's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Philips Medical Systems -- $730,858 7551 S. Willow, Suite 102 Tempe, AZ 85283 GE Heathcare Fin Services -- $442,243 P.O. Box 843553 Dallas, TX 75284-3553 Hologic -- $91,207 24506 Network Place Chicago, IL 60673-1245 NovaRad -- $73,000 Cardinal Health -- $55,529 Southwest MR Services, Inc. -- $52,670 VHS Acquisition Sub #8-008 -- $47,223 Allied Health Products -- $40,033 BC Technical -- $39,000 Nationwide Medical/Surgical Inc. -- $33,379 SB Capital Corp Elkhart -- $33,026 DP Air Corporation -- $29,095 Unisyn Medical Technologies -- $27,003 Healthcare Staffing Solutions, Inc.-- $18,000 Vitera Healthcare Solutions -- $17,902 MagnaServ Enterprises, Inc. -- $15,206 RDL Medical -- $14,520 McKesson Medical Surgical -- $12,220 Siemens Medical Solutions -- $11,941 MIMM Software -- $11,100 BAKERS FOOTWEAR: Marxe and Greenhouse Disclose 17.6% Equity Stake ----------------------------------------------------------------- In a Schedule 13G filed with the U.S. Securities and Exchange Commission, Austin W. Marxe and David M. Greenhouse disclosed that, as of Feb. 29, 2012, they beneficially own 1,640,000 shares of common stock of Bakers Footwear Group, Inc., representing 17.6% of the shares outstanding. A copy of the filing is available for free at http://is.gd/kwNsQW About Bakers Footwear St. Louis, Mo.-based Bakers Footwear Group, Inc. (OTC BB: BKRS.OB) is a national, mall-based, specialty retailer of distinctive footwear and accessories for young women. The Company's merchandise includes private label and national brand dress, casual and sport shoes, boots, sandals and accessories. The Company currently operates 231 stores nationwide. Bakers' stores focus on women between the ages of 16 and 35. Wild Pair stores offer fashion-forward footwear to both women and men between the ages of 17 and 29. The Company reported a net loss of $14.33 million on $131.51 million of net sales for the 39 weeks ended Oct. 29, 2011, compared with a net loss of $14.46 million on $127.39 million of net sales for the 13 weeks ended Oct. 30, 2010. The Company reported a net loss of $9.29 million in fiscal year ended Jan. 29, 2011, following a net loss of $9.08 million in fiscal year ended Jan. 30, 2010. The Company's balance sheet at Oct. 29, 2011, showed $47.12 million in total assets, $67.16 million in total liabilities and a $20.04 million total shareholders' deficit. As reported by the TCR on May 6, 2011, Ernst & Young LLP, in St. Louis, Mo., expressed substantial doubt about Bakers Footwear's ability to continue as a going concern. The independent auditors noted that the Company has incurred substantial losses from operations in recent years and has a significant working capital deficiency. Bankruptcy Warning The Company noted in the Form 10-K for the fiscal year ended Jan. 29, 2011, that its ability to maintain and ultimately improve its liquidity position is highly dependent on sustaining the positive sales trends that began in June 2008 and have continued through April 2011. Comparable store sales for the last three quarters of fiscal year 2008 increased 4.7% and its comparable store sales for fiscal years 2009 and 2010 increased 1.3% and 1.7%, respectively. Through the first 12 weeks of fiscal year 2011 comparable stores sales increased 10.1%. The Company noted that net losses in recent years have negatively impacted its liquidity and financial position. As of Jan. 29, 2011, it had negative working capital of $8.7 million, unused borrowing capacity under our revolving credit facility of $3.1 million, and a shareholders' deficit of $6.0 million. The Company stated, "If positive sales trends do not continue, or if we were to incur significant unplanned cash outlays, it would become necessary for us to obtain additional sources of liquidity, or take additional cost cutting measures. Any future financing would be subject to our financial results, market conditions and the consent of our lenders. We may not be able to obtain additional financing or we may only be able to obtain such financing on terms that are substantially dilutive to our current shareholders and that may further restrict our business activities. If we cannot obtain needed financing, our operations may be materially negatively impacted and we may be forced into bankruptcy or to cease operations and you could lose your investment in the Company." BARNWELL COUNTY: Plan Outline Hearing Scheduled for March 19 ------------------------------------------------------------ The Hon. David R. Duncan of the U.S. Bankruptcy Court for the District of South Carolina will convene a hearing on March 19, 2012, at 10:00 a.m., to consider adequacy of the Disclosure Statement explaining Barnwell County Hospital in South Carolina's Plan for Adjustment of Debts, as modified, supplemented and amended. According to the Disclosure Statement, the Plan is premised upon the Asset Purchase Agreement between the Debtor and SC Regional Health System, LLC, under which RHS will acquire substantially all of the operating assets of the Debtor free of any liens. RHS will also acquire all Medicare and Medicaid incentives payments available to the Debtor under the HITECH Act as a result of the Debtor's use of certified electronic health record technology. The HITECH Funds received by Debtor to date total $1,060,032, which are being held in trust by the Debtor until closing at which time these funds would be transferred to RHS. RHS will use the HITECH Funds to make the payments contemplated by the Plan in Classes 1, 5, 6, and 7. Additionally, the Debtor will provide all of its cash and accounts receivable to implement the Plan. Upon the closing of the sale, RHS will provide a combination of cash and assumption of liabilities to enable the Debtor to implement the Plan and satisfy its obligations under the Plan. RHS has agreed to: l) accept an immediate assignment of the executory contracts and leases that it notifies the Debtor to assume pursuant to the APA, and pay all cure amounts due and owing in connection with the assumption of any contract or lease; 2) pay the Debtor's transaction costs due to Stroudwater related to the sale in an amount not to exceed $300,000; 3) pay the amounts with respect to the Claims of The United States (on behalf of itself, its officers, agents, agencies, and departments), Healthland, First Citizens, and SCRH; and 4) in its sole discretion, rehire certain employees after the closing. The Debtor will provide this combination of cash to enable it to implement the Plan and satisfy its obligations under the Plan: a) the Debtor will contribute all of its cash on hand, all Pre- Closing Accounts Receivable, well as any refunds, settlements and retroactive adjustments, including those arising in connection with Medicare and Medicaid, due to Debtor as of the Closing Date, first for payment of Allowed Administrative Claim and second to the payment to the Class 2 general unsecured creditors claims; and b) the Debtor will transfer the right to recover all preferential and fraudulent transfers to the Committee for the benefit of the Class 2 claimants (allowed general unsecured creditors). A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/BARNWELL_COUNTY_ds.pdf About Barnwell County Hospital Barnwell County Hospital in South Carolina filed for municipal reorganization under Chapter 9 of the Bankruptcy Code (Bankr. D. S.C. Case No. 11-06207) on Oct. 5, 2011, in Columbia, South Carolina. The hospital is licensed for 53 beds, although only 31 are currently operating. It also operates three rural health clinics in southwestern South Carolina. The hospital said it filed because the county said it's no longer willing or able to fund losses. The hospital has no bonded debt. Assets and debts are both less than $10 million. Judge David R. Duncan oversees the case. Lindsey Carlbert Livingston, Esq., and Stanley H. McGuffin, Esq., at Haynsworth Sinkler Boyd, PA, represent the Debtor as counsel. The petition was signed by Charles Lowell Jowers, Sr., chairman of the hospital's board of trustees. W. Clarkson McDow, Jr., the U.S. Trustee for Region 4, appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors of Barnwell County Hospital. BANKUNITED FINANCIAL: Liquidating Plan Becomes Effective -------------------------------------------------------- The Fourth Amended Joint Plan of Liquidation proposed by the Official Committee of Unsecured Creditors of BankUnited Financial became effective on March 9, 2012. On Feb. 27, 2012, the Committee filed with the Bankruptcy Court the Fourth Amended Liquidating Plan. On March 2, 2012, the Bankruptcy Court entered an order confirming the Liquidating Plan with respect to the Company and BankUnited Financial Services Incorporated, but not CRE America Corporation. The Liquidating Plan provides for the appointment of a plan administrator who will be charged with liquidating the remaining assets of the Company. The plan administrator will make distributions to creditors from the proceeds of the liquidation. Administrative and priority claims will be paid in full upon their allowance by the Bankruptcy Court. The unsecured creditors will receive a pro-rata distribution of the remaining proceeds on their claims that are ultimately allowed by the Bankruptcy Court. Pursuant to the Liquidating Plan, on the Effective Date all equity interests in the Company, including the Company's Class A Common Stock, Class B Common Stock and Series B Preferred Stock, which existed immediately prior to the petition date will be automatically cancelled and the obligations of the Company with respect to those equity interests will be terminated. On the Effective Date, all equity interests of the Company, including the Class A Common Stock, will be deemed extinguished and the certificates and all other documents representing those equity interests, if any, will be deemed cancelled and of no force or effect. As of the Effective Date, each of Danielle Lindholm, Gol Kalev, Lester Bliwise, Marc Jacobson, and Doyle Bartlett resigned as directors of the Company and its subsidiaries in accordance with the Liquidating Plan. In addition, Joseph J. Luzinski resigned as the Chief Restructuring Officer of the Company and its subsidiaries as of the Effective Date. In accordance with the Liquidating Plan, Clifford Zucker has been appointed as the plan administrator and sole director of the Company and its subsidiaries as of the Effective Date. About BankUnited Financial BankUnited Financial Corp. (OTC Ticker Symbol: BKUNQ) -- http://www.bankunited.com/-- was the holding company for BankUnited FSB, the largest banking institution headquartered in Coral Gables, Florida. On May 21, 2009, BankUnited FSB was closed by regulators and the Federal Deposit Insurance Corporation facilitated a sale of the bank to a management team headed by John Kanas, a veteran of the banking industry and former head of North Fork Bank, and a group of investors that include W.L. Ross & Co., Blackstone Group, Carlyle and Centerbridge. The new owners installed Mr. Kanas as CEO and he sought to revamp BankUnited as a commercial lender in south Florida. BankUnited Financial and its affiliates filed for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 09-19940) on May 22, 2009. Stephen P. Drobny, Esq., and Peter Levitt, Esq., at Shutts & Bowen LLP; Mark D. Bloom, Esq., and Scott M. Grossman, Esq., at Greenberg Traurig, LLP; and Michael C. Sontag, at Camner, Lipsitz, P.A., represent the Debtors as counsel. Corali Lopez-Castro, Esq., David Samole, Esq., at Kozyak Tropin & Throckmorton, P.A.; and Todd C. Meyers, Esq., at Kilpatrick Stockton LLP, serve as counsel to the official committee of unsecured creditors. The banking unit had assets of $12.8 billion and deposits of $8.6 billion as of May 2, 2009. The holding company, in its bankruptcy petition, disclosed $37,729,520 in assets against $559,740,185 in debts. Aside from those assets, BankUnited said a "valuable" asset is its $3.6 billion net operating loss carryforward. Wilmington Trust Co., U.S. Bank, N.A., and the Bank of New York were listed among the company's largest unsecured creditors in their roles as trustees for security issues. BankUnited estimated the Bank of New York claim tied to convertible securities at $184 million. U.S. Bank and Wilmington Trust are owed $120 million and $118.171 million on account of senior notes. BAY THREE: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Bay Three Limited, Inc 1356 Fischer Blvd Toms River, NJ 08753-3088 Bankruptcy Case No.: 12-15866 Chapter 11 Petition Date: March 7, 2012 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Michael B. Kaplan Debtor's Counsel: Timothy P. Neumann, Esq. BROEGE, NEUMANN, FISCHER & SHAVER 25 Abe Voorhees Drive Manasquan, NJ 08736 Tel: (732) 223-8484 Fax: (732) 223-2416 E-mail: tneumann@bnfsbankruptcy.com Scheduled Assets: $130,705 Scheduled Liabilities: $2,115,744 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb12-15866.pdf The petition was signed by Anthony Baiamonte, III, president. BE AEROSPACE: S&P Rates $500-Mil. Senior Unsecured Notes at 'BB' ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' issue-level rating to BE Aerospace Inc.'s planned $500 million senior unsecured notes maturing in 2022, one notch below the corporate credit rating. "The recovery rating is '5', indicating our expectation that noteholders would receive modest (10%-30%) recovery in a payment default. We expect the U.S.-based aircraft supplier to use note proceeds toward repayment of borrowings under its revolving credit facility, which it drew to partially finance the $400 million acquisition of UFC Aerospace Corp. in January 2012," S&P said. "The corporate credit rating and outlook on BE Aerospace reflect our expectations that the company's earnings will increase, with a boost from acquired operations, and that commercial aerospace market conditions will be solid in 2012. This should allow credit protection measures to recover sufficiently over the next year, following modest deterioration because of the UFC acquisition. Our ratings on BE Aerospace also take into account the risks associated with the cyclical global airline industry as well as the relatively small size of the markets the company serves. We assess the company's business risk profile as 'fair' and its financial risk profile as 'significant,' as our criteria define the terms," S&P said. Ratings List BE Aerospace Inc. Corporate credit rating BB+/Stable/-- Rating Assigned Senior unsecured $500 mil. notes due 2022 BB Recovery rating 5 BEAZER HOMES: Moody's Updates Credit Opinion, Gives 'Caa2' CFR -------------------------------------------------------------- Moody's Investors Service has just updated the credit opinion for Beazer Homes USA, Inc. Moody's current ratings for Beazer Homes USA are: Corporate Family Rating of Caa2 Probability of Default Rating of Caa2 Senior Secured Rating of B2 (LGD2, 24%) Senior Secured Shelf Rating of (P)B2 Senior Unsecured Rating of Caa3 (LGD4, 67%) Senior Unsecured Shelf Rating of (P)Caa3 Subordinate Shelf Rating of (P)Ca Preferred Shelf Rating of (P)Ca Speculative Grade Liquidity Rating of SGL-3 Ratings Rationale The Caa2 corporate family rating reflects Moody's expectation that Beazer's operating and financial performance, while improving modestly, will remain weak over the next two years. More specifically, Moody's assumes that elevated debt leverage, on- going operating losses, and declining tangible equity will continue over this time period. In addition, Moody's expects that Beazer's cash flow generation, which was a negative $113 million on a reported basis (and a negative $106 million on a Moody's- adjusted basis) over the trailing 12 months ended December 31, 2011, will continue to be weak in fiscal 2012 and 2013, as the benefits of inventory liquidation have largely played out and the company pursues land investments. At the same time, the ratings are supported by the company's extended debt maturity profile and the possibility of its being able to replenish its unrestricted cash position as a result of preserving its refinancing basket (by drawing on a cash-secured term loan). Moody's also recognizes that the impairments and other charges are likely to be less material going forward. The stable rating outlook indicates that although Moody's does not foresee a macro environment in the coming two years that would materially help the company's operating performance, Moody's do not expect Beazer's performance to change significantly in either direction from current levels. The outlook and/or ratings could come under pressure if the company were to deplete its cash reserves either through sharper than expected operating losses or through a sizable investment or other transaction. Although in the near term it is unlikely, over a longer time horizon the outlook and/or ratings could improve if the company were to become and remain profitable, maintain adequate liquidity, continue to grow its tangible equity base, and reduce adjusted debt leverage to below 65%. The principal methodology used in rating Beazer Homes USA, Inc was the Global Homebuilding Industry Methodology published in March 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. BERNARD L. MADOFF: Wilpon, Madoff Jury Trial Begins Monday ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Fred Wilpon and other owners of the New York Mets baseball club held a pretrial conference on March 9 before they go on trial March 19. The trustee for Bernard L. Madoff Investment Securities Inc. will ask a federal court jury to require repayment of $303 million taken out of the Ponzi scheme in the two years before bankruptcy in 2008. The trial is set to be held in U.S. District Court in Manhattan before U.S. District Judge Jed Rakoff, who has already ruled the Wilpon group must return $83 million in fictional profits paid out from their Madoff accounts. According to the report, the lawyers told Judge Rakoff they expect the trial will take two weeks. Judge Rakoff said he will limit opening statements to 45 minutes, given the inability of a jury to absorb too much information at the opening of a trial. Mr. Rochelle recounts that on March 5, Judge Rakoff ruled that the Wilpon group in substance had no defenses to the trustee's complaint seeking recovery of $83 million in false profits. He said that the trustee was only required to prove that the money taken out was profit that existed exclusively on paper because Madoff never purchased any securities for the customers' accounts. The Wilpon group can't appeal until Judge Rakoff enters a formal judgment for what will be a maximum of $83 million, plus interest. The Wilpon suit in district court is Picard v. Katz, 11-03605, U.S. District Court, Southern District of New York (Manhattan). About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of Feb. 8, 2012, Mr. Picard has recovered $8.7 billion for investors. A total of $325.5 million has been distributed to investors. 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. BEXAR COUNTY: Moody's Reviews B1, B3 Bond Ratings for Downgrade --------------------------------------------------------------- Moody's Investors Service has placed the B1 and B3 rating of Bexar County (TX) Housing Finance Corporation Multifamily Housing Revenue Bonds (American Opportunity for Housing-Dublin, Kingswood, and Waterford Apartments Project) Senior Series 2001A and the Subordinate Series 2001B under review for possible downgrade. The Junior Subordinate Series C bonds are not rated. Rating Rationale The rating action is based on declining financial performance, poor occupancy rates and the ongoing legal issues surrounding a fire which occurred at the Dublin property in 2009. Dublin, Waterford, and Kingswood Manor apartments are three separate multi-family rental properties located in San Antonio, Texas with 156, 133, and 129 units respectively. The properties are located approximately 8 to 12 miles north of downtown San Antonio. LEGAL SECURITY: The bonds are secured by a lien on and pledge and assignment of a security interest in the Trust Estate. STRENGTHS * Fully funded debt service reserve funds for the Series A bonds. * Bonds are secured by the revenues from all three properties, instead of relying on revenues from one property to cover debt service on the bonds. Moody's views this diversification of revenues as a credit strength. CHALLENGES * Tapping of the subordinate debt service reserve funds. * Both physical and economic occupancy at the properties continue to be a challenge. * The projects have been relying on owner contributions in order to cover operating deficiencies. * There is further financial stress from a fire in February 2009 at the Dublin apartments. What could change the rating- UP -- Improvement in physical and economic occupancy rates, leading to increased rental revenue and growth in debt service coverage. -- Insurance proceeds being received and the resolution of legal issues surrounding the fire. What could change the rating- DOWN -- Material deterioration in debt service coverage. The principal methodology used in this rating was Global Housing Projects published in July 2010. BRI BUSINESS: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: BRI Business Services, Inc. 611 Commerce Street The Tower Suite 1327 Nashville, TN 37203 Bankruptcy Case No.: 12-02332 Chapter 11 Petition Date: March 9, 2012 Court: United States Bankruptcy Court Middle District of Tennessee (Nashville) Judge: Marian F. Harrison Debtor's Counsel: Griffin S Dunham, Esq. Robert Mark Donnell, Esq. Robert J Mendes, Esq. MGLAW PLLC 2525 West End Avenue, Suite 1475 Nashville, TN 37203 Tel: (615) 846-8000 Fax: (615) 846-9000 E-mail: gsd@mglaw.net rmd@mglaw.net RJM@MGLAW.NET Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the list of five largest unsecured creditors is available for free at http://bankrupt.com/misc/tnmb12-02332.pdf The petition was signed by Steve W. Rawlins, president. BRIER CREEK: Case Summary & 8 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Brier Creek Corporate Center Associates Limited Partnership 3700 Arco Corporate Drive, Suite 350 Charlotte, NC 28273 Bankruptcy Case No.: 12-01855 Affiliates that simultaneously filed Chapter 11 petitions: Debtor Case No. ------ -------- Brier Creek Office #4, LLC 12-01856 Brier Creek Office #6, LLC 12-01857 Service Retail at Brier Creek, LLC 12-01858 Service Retail at Whitehall II L.P. 12-01859 Shopton Ridge 30-C, LLC 12-01860 Whitehall Corporate Center #4, LLC 12-01862 Whitehall Corporate Center #5, LLC 12-01863 Whitehall Corporate Center #6, LLC 12-01864 Chapter 11 Petition Date: March 9, 2012 Court: U.S. Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtors' Counsel: John A. Northen, Esq. NORTHEN BLUE, LLP P.O. Box 2208 Chapel Hill, NC 27515-2208 Tel: (919) 968-4441 Fax: (919) 942-6603 E-mail: jan@nbfirm.com - and ? Vicki L. Parrott, Esq. NORTHEN BLUE, LLP P.O. Box 2208 Chapel Hill, NC 27515-2208 Tel: (919) 968-4441 Fax: (919) 942-6603 E-mail: vlp@nbfirm.com Debtors' Special Counsel: RAYBURN COOPER & DURHAM, P.A. Debtors' Accountants: GRANT THORNTON LLP Brier Creek Corporate's Scheduled Assets: $19,713,147 Brier Creek Corporate's Scheduled Liabilities: $18,086,183 The petitions were signed by Terry Bradshaw, vice president. Brier Creek Corporate's List of Its Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bank of America, N.A Lots $10,389,671 100 North Tryon Street NC1-007-11-15 Charlotte, NC 28255 Brier Creek Corporate Ctr. Association Dues $106,485 Master Assn. 3700 Arco Corporate Drive, Suite 350 Charlotte, NC 28273 John R McAdams Company, Inc. Lots $29,496 P.O. Box 14005 Research Triangle Park, NC 27709 Kimley Horn and Associates Land Services $10,654 K&L Gates Legal Services $9,482 J. Davis Architects Architect Services $5,009 Clark Corporate Services Repairs $2,130 Kesick Contracting Land Services Unknown CANO PETROLEUM: Case Summary & Largest Unsecured Creditors ---------------------------------------------------------- Lead Debtor: Cano Petroleum, Inc. fdba Huron Ventures, Inc. 6500 N. Beltline Road, Suite 200 Irving, TX 75063 Bankruptcy Case No.: 12-31549 Chapter 11 Petition Date: March 7, 2012 Debtor-affiliate that filed separate Chapter 11 petitions: Petition Entity Case No. Date ------ -------- ---- Cano Petro of New Mexico, Inc. 12-31550 3/07/2012 Assets: $50,000,001 to $100,000,000 Debts: $50,000,001 to $100,000,000 Ladder Companies, Inc. 12-31551 3/08/2012 Assets: $50,000,001 to $100,000,000 Debts: $50,000,001 to $100,000,000 Square One Energy, Inc. 12-31552 3/08/2012 Tri-Flow, Inc. 12-31553 3/08/2012 W.O. Energy of Nevada, Inc. 12-31554 3/08/2012 WO Energy, Inc. 12-31555 3/08/2012 W.O. Operating Company, Ltd. 12-31556 3/08/2012 W.O. Production Company, Ltd. 12-31557 3/08/2012 Court: U.S. Bankruptcy Court Northern District of Texas (Dallas) Judge: Barbara J. Houser About the Debtors: Cano Petroleum (NYSE Amex: CFW) is an independent oil and natural gas company with assets located onshore in the U.S. in Texas, New Mexico, and Oklahoma. The Debtors have entered into a stock purchase agreement dated March 7, 2012, with NBI Services Inc. NBI Services, as stalking horse, will purchase all of the issued and outstanding capital stock of reorganized Cano, absent higher and better offers. Debtors' Counsel: Cassandra Ann Sepanik, Esq. THOMPSON & KNIGHT LLP 1722 Routh Street, Suite 1500 Dallas, TX 75201 Tel: (214) 969-1700 E-mail: cassandra.sepanik@tklaw.com - and ? David M. Bennett, Esq. THOMPSON & KNIGHT LLP 1722 Routh Street, Suite 1500 Dallas, TX 75201-2533 Tel: (214) 969-1486 E-mail: david.bennett@tklaw.com - and ? Demetra L. Liggins, Esq. THOMPSON & KNIGHT LLP 333 Clay Street, Suite 3300 Houston, TX 77002 Tel: (713) 654-8111 Fax: (713) 654-1871 E-mail: Demetra.Liggins@tklaw.com NBI Services' Counsel: MCDONALD, MCCANN & METCALF, LLP Total Assets: $63.37 million as of Sept. 30, 2011 Total Debts: $116.26 million as of Sept. 30, 2011 The petitions were signed by James R. Latimer, III, chief executive officer. A. Cano Petroleum's List of Its 10 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ VISA Credit Card $179,398 P.O. Box 4513 Carol Stream, IL 60197-4513 Cantey Hanger LLP Attorney Fees $145,752 600 W. 6th Street, Suite 300 Fort Worth, TX 76102-3685 Travelers Trade Debt $25,000 13607 Collections Center Drive Chicago, IL 60693 Bro-Co LLC Lease $24,295 Vinson & Elkins LLP Attorney Fees $13,791 Executive Flight Services, Inc. Trade Debt $6,064 Drilling Info. Inc. Trade Debt $4,953 IHS Global Inc. Trade Debt $3,031 Bottomline Technologies Trade Debt $2,165 Underwood Wilson Berry Stein & Attorney Fees $1,976 Johnson B. Cano Petro of New Mexico's List of Its 10 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ National Oilwell Varco Trade Debt $86,563 P.O. Box 200838 Dallas, TX 75320-0838 Rainey Mckay dba BJ Pipe & Supply Trade Debt $29,887 600 Tatum Highway Lovington, NM 88260 Standard E&S Trade Debt $27,832 dba Standard Energy Service P.O. Box 2724 Lubbock, TX 79408 Reef Services LLC Trade Debt $20,580 Andrews Pump & Supply Inc. Trade Debt $14,436 Caval Pumping Unit Service LLC Trade Debt $13,527 Submersible Pumps Inc. Trade Debt $10,180 Real Time Automation Trade Debt $7,234 Warrior Energy Services Corp Trade Debt $5,618 WRH Inc. Trade Debt $1,029 C. Ladder Companies' List of Its 10 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Danlin Industries Corporation Trade Debt $107,290 1200 E. Campbell Road, Suite 108 Richardson, TX 75081 Submersible Pumps Inc. Trade Debt $52,958 1800 S. Little Avenue Cushing, OK 74023 Pumps of Oklahoma Inc Trade Debt $39,557 1220 NW 3rd Street P.O. Box 1124 Oklahoma City, OK 73101 Butcher Well Service Trade Debt $34,688 Drumright Oilwell Service LLC Trade Debt $25,473 Ridenhour Construction Trade Debt $16,625 REP Enterprises Trade Debt $15,815 Cates Supply, Inc. Trade Debt $14,577 Davenport Fire Department Trade Debt $4,450 APAC-Central Inc. Trade Debt $498 CAMP COOLEY: U.S. Trustee Wants Case Dismissed or Converted ----------------------------------------------------------- U.S. Trustee Judy A. Robbins filed a motion with the U.S. Bankruptcy Court seeking conversion of Camp Cooley Ltd.'s Chapter 11 case to Chapter 7, or alternatively dismissing it because the Debtor has failed, and continues to fail, to timely file its Monthly Operating Reports and to pay U.S. Trustee fees. The Debtor filed a plan of reorganization on April 22, 2010. The Court denied confirmation on Sept. 21, 2010, and ordered the Debtor to engage in an orderly liquidation of its assets. The Debtor has liquidated all or substantial all of its tangible assets, and still retains certain causes of action. Because the Debtor has not filed its five most recent monthly operating reports, the U.S. Trustee said it cannot accurately calculate the amount of U.S. Trustee Program fees which the Debtor owes under 28 U.S.C. Sec. 1930. The U.S. Trustee estimates that the Debtor owes $20,000 in quarterly fees for the third and fourth quarters of 2011. The quarterly fees for the third quarter were due Oct. 30, 2011. The quarterly fees for the fourth quarter were due Jan. 31, 2012. About Camp Cooley Franklin, Texas-based Camp Cooley Ltd. operated an agricultural and farming business. Camp Cooley is the entity resulting from the merger of these entities effective Nov. 7, 2009: North CC Pipeline, LLC; Birkel CCR GP LLC; CCR Royalty, Ltd.; Ultimate Genetics, LLC; and Camp Cooley Genetics, LLC. Camp Cooley filed for Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 09-61311) on Nov. 8, 2009. In its schedules, the Debtor disclosed $57,917,118 in assets and $28,138,421 in liabilities. Blake L. Beckham, Esq., at Beckham & Mandel, Esq., in Dallas; and Debra L. Innocenti, Esq., Raymond W. Battaglia, Esq., and Robert K. Sugg, Esq., at Oppenheimer Blend Harris & Tate, in San Antonio, Tex., represent the Debtor as counsel. CARITAS HEALTH: April 25 Hearing on Plan Confirmation Scheduled --------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of New York will convene a hearing on April 25, 2012, at 2:30 p.m., prevailing Eastern Time, to consider the confirmation of Caritas Health Care, Inc., and its debtor-affiliates' Chapter 11 Plan, amended as of Feb. 22, 2012. The Court set April 6, 2012 at 4:00 p.m., as the deadline for written ballots accepting or rejecting the Plan, and for filing objections to the Plan. According to the Second Amended Disclosure Statement, the Plan provides a means by which the proceeds of the liquidation of the Debtors' assets will be distributed under Chapter 11 of the Bankruptcy Code. The Debtors have consummated the sale of substantially all of their physical assets pursuant to orders of the Court authorizing the Debtors to sell (i) their equipment and medical supplies, and (ii) their real estate assets. The Plan implements the distribution of the proceeds of asset sales to holders of allowed Claims, and provides for liquidation of any remaining assets and a process for recovery of any causes of action belonging to the Debtors' and their estates. A copy is available for free at: http://bankrupt.com/misc/CARITAS_HEALTH_ds_2ndamended.pdf Previously, Tracy Hope Davis, U.S. Trustee for Region 2 objected to the proposed first amended disclosure statement stating that the Debtors' Disclosure Statement is deficient because it contains 1) an improper discharge of the Debtors in violation of Section 1141(d)(3); 2) overly broad third party releases; and 3) inadequate information regarding a) cash on hand on the effective date; b) professional fees; c) the plan administrator and d) quarterly fees and post-confirmation reporting. About Caritas Health Care Caritas Health Care Inc. was the owner of Mary Immaculate Hospital and St. John's Queens Hospital. Caritas, created by Wyckoff Heights Medical Center, purchased the two hospitals in a bankruptcy sale in early 2007 from St. Vincent Catholic Medical Centers of New York. St. John's has 227 generate acute-care beds while Mary Immaculate has 189. Caritas Health Care, Inc., and eight of its affiliates sought chapter 11 protection (Bankr. E.D.N.Y., Case No. 09-40901) on Feb. 6, 2009. Jeffrey W. Levitan, Esq., and Adam T. Berkowitz, Esq., at Proskauer Rose, LLP, represent the Debtors. Martin G. Bunin, Esq., and Craig E. Freeman, Esq., at Alston & Bird LLP, represent the official committee of unsecured creditors. Caritas sold the hospitals to Joshua Guttman in November 2009 for $17.7 million. CASELLA WASTE: S&P Lowers Corp. Rating to 'B'; Outlook Negative --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Rutland, Vt.-based Casella Waste Systems Inc. to 'B' from 'B+'. "At the same time, we lowered our issue-level ratings on the company's various debt issues. The recovery ratings remain unchanged," S&P said. "The downgrade reflects our concerns surrounding the very limited headroom under Casella's financial covenants, which have pressured liquidity," said Standard & Poor's credit analyst James Siahaan. "As of Jan. 31, 2012, we estimate effective availability under its $227.5 million revolving credit facility (taking into account the borrowing limitations based on a potential financial covenant breach) was $3 million--much lower than the almost $87 million of availability the company had during the same period one year ago. Although we expect the company to be able to amend the terms of its credit facility to obtain additional headroom, we believe that Casella's debt balance is likely to remain high and that its prospects of earnings growth may be muted," S&P said. "The ratings on Casella reflect our view of Casella's financial risk as 'highly leveraged' marked by high debt balances and minimal free cash generation. We view Casella's business risk profile as 'fair', reflecting the company's participation in a recession-resistant industry, its competitive market positions in its operating regions, and generally good profitability despite its somewhat modest scale of operations," S&P said. Casella is a vertically integrated provider of collection, recycling, transfer, and disposal services to residential, commercial, and industrial customers. Its trailing-12-month sales as of Jan. 31, 2012, totaled $481 million, making it one of the larger regional solid waste haulers. It operates predominantly in the northeastern U.S. and focuses on competing in secondary and tertiary markets. Casella occupies the largest or second-largest market position in about 80% of the markets it serves. Roughly 82% of revenues are derived from its solid waste operations, with 10% coming from recycling assets and another 8% from major accounts. Within Casella's solid waste operations, collection accounted for 42% of segment revenue during the nine months ended Jan. 31, 2012, followed by disposal (26%), processing and organics (11%), and power/landfill gas to energy (3%). "The outlook is negative, indicating the possibility that we may lower the ratings during the next year. Although we expect Casella to amend the terms of its credit facility to ease the liquidity pressure from its financial covenants, there is some uncertainty as to the level of the relief at the outset, as well as to the timing of future step-downs. We could also lower the ratings if economic weakness, price competition, or adverse movements in recycled commodities or fuel prices cause earnings or cash flow to deteriorate, so that the company cannot maintain FFO to total adjusted debt of 10% to 15%," S&P said. "However, we believe Casella could stabilize its credit risk profile by demonstrating improved operating performance in subsequent quarters or by divesting noncore assets and using the proceeds to reduce debt. Although we also believe that the company remains committed to reducing debt (as evidenced by its use of asset divestiture proceeds in 2011 to repay term loan borrowings, reducing debt by more than $100 million), uncertainty regarding asset sales and internal growth lead us to the conclusion that it's unlikely that the pace of deleveraging would be rapid enough to warrant higher ratings within the next year. While less likely, we could raise the ratings if there is improvement in operating results or if proceeds from additional asset sales enable the company to generate FFO to debt exceeding 15%," S&P said. CATHAY ENTERPRISES: Design Trend Wins $550,000 Judgment ------------------------------------------------------- District Judge Neil V. Wake in Arizona issued judgment on Tuesday -- which judgment is nunc pro tunc to March 29, 2011 -- in favor of Design Trend International Interiors, Ltd., and against Cathay Enterprises, Inc., for (1) the principal sum of $169,025, with prejudgment interest at 10% per annum from June 5, 2003 to March 28, 2011, and post judgment interest at the federal judgment rate (as of March 29, 2011) of 0.26% from March 29, 2011 until paid; (2) attorneys fees of $382,966; and (3) taxable costs and the amount of $10,203. The dispute stems from a March 2001 contract in which Design Trend agreed to remodel Cathay's hotel for a fixed price of $1,277,000, inclusive of sales tax. As of late July 2001, Cathay's payments to Design Trend totaled $986,707. Cathay has since made no further payments to Design Trend. Under the contract as modified in July 2001, the parties expected Design Trend to complete its work by Aug. 31, 2001. Through two Arizona Registrar of Contractors proceedings filed by Cathay against Design Trend, it was established by decision dated June 5, 2003, that Design Trend had not completed its work for Cathay by Aug. 31, 2001, but had substantially completed its work by mid- February 2003. Cathay protests that its contract with Design Trend did not require a final payment until an architect issued a certificate of completion. To this day, Design Trend has not obtained a certificate of completion, and therefore, Cathay argues, it was never under an obligation to pay until the District Court entered judgment on March 29, 2011. But Cathay's position all along is that Design Trend never completed the project. In any event, the District Court said it is satisfied that the Registrar's June 5, 2003 ruling, preceded by two Registrar inspections, is the substantial equivalent of an architect's certificate of completion. Accordingly, Cathay became obligated at least as of June 5, 2003. The case before the District Court is Design Trend International Interiors, Ltd., an Arizona corporation, Appellant, v. Cathay Enterprises, Inc., an Arizona corporation, Appellee, No. CV 10- 01079 (D. Ariz.). A copy of the Court's March 6, 2012 Order is available at http://is.gd/ghwBXYfrom Leagle.com. Design Trend International Interiors Limited is represented by Dennis Ira Wilenchik, Esq. -- DIW@wb-law.com -- at Wilenchik & Bartness PC. Cathay Enterprises, Inc., Tempe, Arizona, filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case No. 04-15766) on Sept. 7, 2004. Judge Redfield T. Baum Sr., was assigned to the case. Cathay Enterprises is represented by Daniel P. Collins, Esq., and Philip G. May, Esq., at Collins May Potenza Baran & Gillespie PC. In its petition, the Debtor estimated $1 million to $10 million in assets and debts. A review of the bankruptcy docket shows that the trustee moved to convert the case to Chapter 7 on multiple occasions, but all of those motions were withdrawn or denied. The docket indicates that Cathay's case remains in Chapter 11. CENVEO CORP: Moody's Rates New Notes 'Caa2'; Affirms 'B3' CFR ------------------------------------------------------------- Moody's Investors Service rated Cenveo Corporation's new senior unsecured notes issue Caa2 and, at the same time, affirmed the company's B3 corporate family rating (CFR) and B3 probability of default rating (PDR). As part of the same action, Cenveo's senior secured back credit facility rating was affirmed at Ba3, the rating for its second lien notes issue was affirmed at B3, and the company's speculative grade liquidity rating was affirmed at SGL-3 (adequate). The outlook remains negative, however, it is expected that upon the notes issue proceeds being applied, as anticipated, towards outstanding tender offers for near term debt maturities, that the outlook will be stabilized. As well, upon Cenveo's existing Caa1-rated senior unsecured and Caa2-rated senior subordinated notes having been retired pursuant to the tender offer, their ratings will be withdrawn. Since the new notes issue and the related tender offer involve a like amount of debt, the transaction does not affect Cenveo's credit profile and the company's ratings were affirmed. The transaction is positive as it extends the weighted average term to maturity of Cenveo's debt. In addition, by refinancing junior- ranking near-term maturities, it is expected that a successful transaction will allow the ratings outlook to be stabilized. The following summarizes Cenveo's ratings and today's rating actions: Issuer: Cenveo Corporation Senior Unsecured Regular Bond/Debenture, Assigned Caa2 (LGD5, 82%) Corporate Family Rating, Affirmed at B3 Probability of Default Rating, Affirmed at B3 Senior Secured Bank Credit Facility, Affirmed at Ba3 with the LGD assessment revised to (LGD2, 14%) from (LGD2, 15%) Senior Secured Second Lien Notes, Affirmed at B3 with the LGD assessment revised to (LGD3, 46%) from (LGD3, 48%) Senior Unsecured Regular Bond/Debenture, Affirmed at Caa1 (LGD5, 70%) (to be withdrawn upon completion of an outstanding tender offer) Senior Subordinated Regular Bond/Debenture, Affirmed at Caa2 (LGD5, 89%) (to be withdrawn upon completion of an outstanding tender offer) Speculative Grade Liquidity Rating, Unchanged at SGL-3 Outlook Actions: Outlook, Unchanged as Negative (expected to be revised to Stable upon completion of an outstanding tender offer) Ratings Rationale Cenveo's B3 ratings result primarily from limited debt repayment capacity that results from the inter-relationship of significant interest expense that results from elevated financial leverage along with systemic issues that limit growth prospects and suppress operating margins. With EBITDA margins of only 10%-to-12% and with interest expense amounting to some 60% of EBITDA, cash flow operations is a relatively weak proportion of revenues (all figures incorporate Moody's standard adjustments). The rating draws support from the company's very low capital intensity, however, while low capital intensity can be a positive feature as it facilities free cash flow generation, Moody's thinks low capital intensity results more from poor return prospects that cause capital rationing than from asset productivity gains. The poor return arithmetic, in turn, stems from the secular decline of core printing activities and Moody's thinks that operational risks are increasing as the business environment continues to deteriorate. As well, visibility of forward activity levels is opaque and the timing and magnitude of future growth (or secular decline) is highly uncertain. Moody's anticipates only modest top- line growth and expect little in the way of margin expansion. With that and given the co-cyclicality of results with general economic conditions, liquidity is an important consideration. Cenveo maintains adequate liquidity. Rating Outlook Uncertainties related to refinance activities and Cenveo's ability to access appropriate amounts of junior capital on a timely and cost-effective basis - in what will be a crowded market place - in conjunction with ongoing business risks and a still over-leveraged capital structure, cause the rating outlook to be negative. Should an outstanding tender offer be concluded successfully, it is expected that the outlook will be stabilized. What Could Change the Rating - Up Moody's would consider an upgrade if TD/EBITDA leverage were expected to be reduced to 6.0x or lower on a sustained basis and positive free cash flow were expected to be sustained at approximately 5% of total debt (in both case, incorporating Moody's standard adjustments). A rating upgrade would also have to involve assurance of solid liquidity arrangements, an absence of near-term refinance risks, improved industry fundamentals, and a somewhat stabilized business platform. What Could Change the Rating - Down Since potential default risk increases as the refinance window shrinks, a lack of progress in refinancing near term debt maturities may provide a catalyst for near term ratings actions. In addition, Moody's would consider Cenveo's ratings for potential downgrade if free cash flow generation was expected to be minimal or negative for a prolonged period and/or if TD/EBITDA was expected to be in excess of 7x on a sustained basis. A debt- financed acquisition of more than nominal size and/or adverse liquidity developments (in addition to those related to refinance matters) could also result in downward rating pressure. The principal methodology used in rating Cenveo was the Global Publishing 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. CHALLENGE GOLF: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: The Challenge Golf Group of the Carolinas, LLC 187 North Main Street Rutherfordton, NC 28139 Bankruptcy Case No.: 12-40150 Chapter 11 Petition Date: March 8, 2012 Court: United States Bankruptcy Court Western District of North Carolina (Shelby) Judge: J. Craig Whitley Debtor's Counsel: D. Rodney Kight, Jr., Esq. KIGHT LAW OFFICE PC 7 Orchard Street, Suite 100 Asheville, NC 28801 Tel: (828) 255-9881 Fax: (828) 255-9886 E-mail: info@kightlaw.com Scheduled Assets: $1,502,200 Scheduled Liabilities: $4,089,594 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncwb12-40150.pdf The petition was signed by James McDonnell, member. CHESTER DOWNS: S&P Keeps 'B-' Corp. Credit Rating; Outlook Stable ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' issue-level rating to Chester, Pa.-based Chester Downs and Marina's $330 million 9.25% senior secured notes due 2020, co-issued by Chester Downs Finance Corp. "In addition, we assigned the notes a recovery rating of '1', indicating our expectation of very high (90%-100%) recovery for noteholders in the event of payment default. Our rating assignment follows the closing of the notes offering and our review of final documentation," S&P said. "The company used the proceeds to repay its existing term loan debt and to make a distribution to its parent company, Harrah's Chester Downs Investment Co., a wholly owned subsidiary of Caesars Entertainment Operating Co. (CEOC). The 'B-' corporate credit rating remains unchanged. The rating outlook is stable," S&P said. "Our 'B-' corporate credit rating reflects the 'highly leveraged' financial risk profile (based on our criteria) and very aggressive financial policy of Chester Downs' indirect majority owner and property manager, CEC. Through its subsidiary--CEOC--CEC currently owns a 99.5% stake in Chester. Given CEC's substantial majority controlling position, we view Chester's credit quality as linked to CEC's. We believe a bankruptcy at CEC could result in a bankruptcy at Chester, despite its relatively moderate financial burden, because we believe CEC could decide to include Chester in a broader bankruptcy proceeding. Management could accomplish this by buying out the minority investors for a relatively insignificant sum," S&P said. "As a stand-alone entity, our assessment of Chester's financial risk profile as 'aggressive' and our assessment of Chester's business risk profile as 'weak' might support a higher rating. However, it is unlikely our rating on Chester would be higher than our rating on CEC," S&P said. "Our assessment of Chester's financial risk profile as aggressive reflects its high debt balances, which, following the recent transaction, consists solely of the $330 million senior secured notes," said Standard & Poor's credit analyst Melissa Long. Still, under our performance expectations for the property and incorporating minimal capital spending needs, we expect positive free operating cash flow generation," S&P said. "Our assessment of Chester's business risk profile as weak reflects its limited diversity as an operator of a single gaming property and increased competitive pressure in the Philadelphia- area gaming market in recent years. These factors are partially offset by the inclusion of the property in Caesars' Total Rewards player network, which offers some competitive advantage, and strong market demographics," S&P said. "Although we expect credit measures at Chester to remain strong for our 'B-' rating, the rating and stable outlook reflect the link between Chester and CEC. CEC's aggressive financial policy and weak credit quality limit a possible upgrade over the foreseeable future. Without at least modest growth over the next few quarters and an expectation for positive operating momentum to continue to build in 2012 and 2013, we could lower our rating on CEC, as the company could be challenged to meet fixed charges while servicing its current capital structure, and might again seek to restructure its debt obligations," S&P said. CHINA TEL GROUP: Enters Into $1MM Line of Credit with Weal Group ---------------------------------------------------------------- VelaTel Global Communications, Inc., formerly known as China Tel Group, Inc., on March 5, 2012, granted a Line of Credit Promissory Note to Weal Group, Inc., in the principal amount of $1,052,631. The disbursement amount of the Weal Note is $1,000,000. Weal will retain a 5% Holdback as a set-up fee and compensation for Weal's due diligence. The difference between the disbursement amount and the principal amount represents the 5% Holdback fee. The Maturity Date of the Weal Note is March 5, 2013. The Company may prepay the Weal Note in whole or in part prior to its Maturity Date without penalty. The Weal Note bears interest on its principal amount at 10% per annum. The Weal Note provides: Contemporaneously with the execution of the Weal Note, Borrower is maker on a Note with Isaac Organization, Inc. The Isaac Note provides that Borrower and Isaac agree to add a conversion feature granting Isaac an option to convert all or a portion of the balance of principal and interest due under the Isaac Note to shares of Borrower's Series A common stock. The details of the conversion feature will be agreed to between the Parties when Borrower has additional authorized Shares available for issuance. Upon that amendment or substitution of the Isaac Note, Borrower agrees to amend or substitute the Weal Note with an amended Weal Note containing identical conversion features to the amended or substituted Isaac Note. A complete copy of the Weal Note is available for free at: http://is.gd/A1CN6A About China Tel Based in San Diego, California, and Shenzhen, China, China Tel Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/-- provides high speed wireless broadband and telecommunications infrastructure engineering and construction services. Through its controlled subsidiaries, the Company provides fixed telephony, conventional long distance, high-speed wireless broadband and telecommunications infrastructure engineering and construction services. ChinaTel is presently building, operating and deploying networks in Asia and South America: a 3.5GHz wireless broadband system in 29 cities across the People's Republic of China with and for CECT-Chinacomm Communications Co., Ltd., a PRC company that holds a license to build the high speed wireless broadband system; and a 2.5GHz wireless broadband system in cities across Peru with and for Perusat, S.A., a Peruvian company that holds a license to build high speed wireless broadband systems. Since the Company's inception until June 30, 2011, it has incurred accumulated losses of approximately $242.36 million. The Company expects to continue to incur net losses for the foreseeable future. The Company's independent accountants have expressed substantial doubt about the Company's ability to continue as a going concern in their audit report, dated April 15, 2011, for the period ended Dec. 31, 2010. As reported by the TCR on April 21, 2011, Mendoza Berger & Company, LLP, in Irvine, California, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The Company reported a net loss of $66.6 million in 2010, following a net loss of $56.0 million in 2009. The Company reported a net loss of $18.0 million on $488,000 of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $38.2 million on $730,000 of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $11.57 million in total assets, $22.22 million in total liabilities and a $10.64 million total stockholders' deficit. CIMA LLC: Alford Clausen Okayed as Corporate Counsel ---------------------------------------------------- CIMA LLC sought and obtained permission from the U.S. Bankruptcy Court to employ Alford, Clausen & McDonald LLC as special corporate and transactional counsel. AC&M has previously provided services to the Debtor. As reflected on the Debtor's schedules of assets and liabilities, as amended, AC&M is listed as an unsecured, non-priority creditor in the amount of $677,447.24. The firm attests that it has no connection with (a) the United States Trustee or any person employed by the Office of the United States Trustee; or (b) any attorneys, accountants, financial consultants, or investment bankers who represent or may represent creditors or other parties in interest in the case. The firm's rates are: Personnel Rates --------- ----- Partners $250-$285 Paraprofessional $125 About CIMA L.L.C. Based in Ft. Lauderdale, Florida, CIMA, L.L.C., is the developer and current owner of a 200-acre parcel of land located in Mobile, Alabama, with frontage on Interstate 10, a major thoroughfare. The parcel has been subdivided into parcels, and some infrastructure work has been done. CIMA filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-33279) on Aug. 22, 2011, disclosing $18,876,064 in assets and $10,535,230 in liabilities as of the Chapter 11 filing. Bankruptcy Judge Raymond B. Ray later approved a request by the secured creditor to transfer the case to Alabama (Bankr. S.D. Ala. 11-04981). Chief Bankruptcy Judge Margaret A. Mahoney now oversees the case. Leslie Gern Cloyd, Esq., at Berger Singerman, P.A., represents the Debtor. Ronald F. Suber, Attorney at Law, acts as local counsel. When it filed for bankruptcy, CIMA said it was finalizing plans with one or more investor groups for further development of its parcel. CLARE OAKS: Has Final Approval of $6 Million DIP Loan ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Clare Oaks was given final approval on March 8 to borrow $6 million. Senior Care Development, LLC, is providing postpetition financing in the form of a multiple draw term loan made available to the Debtor in a principal amount of up to $6,000,000, with superpriority claims and first priority priming liens senior to any prepetition or postpetition liens. As reported in the Troubled Company Reporter on Dec. 30, 2011, the DIP facility matures on the earliest of (i) July 31, 2012, which date may be extended for one month; (ii) the effective date of a plan of reorganization in the Chapter 11 case, (iii) the closing of the sale, if any, of all or substantially all of the Borrower's assets or (iv) the acceleration of the loans and the termination of the commitments in accordance with the terms of the DIP Loan Agreement. The DIP Loan will carry interest at the greater of (i) 200 basis points plus 4.0% per annum or (ii) the then-current LIBOR Rate plus 4.0% per annum. The default rate is an additional 200 basis points per annum. The Debtor is required to pay the DIP Lender a $300,000 commitment fee (payable out of the initial advance). If applicable, an extension fee of $60,000 is payable on the maturity date. A $120,000 exit fee is also payable on the maturity date. About Clare Oaks Clare Oaks, an Illinois not-for-profit corporation organized under section 501(c)(3) of the Internal Revenue Code, operates a namesake continuing care retirement community in Bartlett, Illinois. Its members are the Sisters of St. Joseph of the Third Order of St. Francis, a Roman Catholic religious institute, who are elected and serving as the members of the Central Board of the Congregation. Clare Oaks is managed by CRSA/LCS Management LLC, an affiliate of Life Care Services LLC. Clare Oaks filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 11-48903) on Dec. 5, 2011. Judge Pamela S. Hollis presides over the case. David R. Doyle, Esq., George R. Mesires, Esq., and Patrick F. Ross, Esq., at Ungaretti & Harris LLP, in Chicago, serve as the Debtor's counsel. North Shores Consulting serves as the Debtor's operations consultant. Continuum Development Services and Alvarez & Marsal Healthcare Industry Group LLC serve as advisors. Alvarez & Marsal's Paul Rundell serves as the Chief Restructuring Officer. Sheila King Marketing + Public Relations serves as communications advisors. CliftonLarsonAllen is the Debtor's accountants. B.C. Ziegler and Company is the Debtor's proposed investment banker and financial advisor. In its petition, Clare Oaks estimated $100 million to $500 million in assets and debts. The petition was signed by Michael D. Hovde, Jr., president. Attorneys at Neal Wolf & Associates, LLC, represent the Official Committee of Unsecured Creditors as counsel. Wells Fargo, as master trustee and bond trustee, is represented by Daniel S. Bleck, Esq., and Charles W. Azano, Esq., at Mintz Levin Cohen Ferris Glovsky and Popeo PC; and Robert M. Fishman, Esq., and Allen J. Guon, Esq., at Shaw Gussis Fishman Glantz Wolfson & Towbin LLC. Sovereign Bank, the letters of credit issuer, is represented by John R. Weiss, Esq., at Duane Morris LLP. Senior Care Development LLC, the DIP Lender, is represented by William S. Fish, Jr., Esq., and Sarah M. Lombard, Esq., at Hinckley Allen & Snyder LLP. CLEAN BURN: Perdue BioEnergy Wants Plan Outline Adequacy Denied --------------------------------------------------------------- Secured and unsecured creditor Perdue BioEnergy, LLC, asks the U.S. Bankruptcy Court for the Middle District of North Carolina to: (i) deny approval of Disclosure Statement explaining Clean Burn Fuels, LLC's Plan of Reorganization dated Dec. 28, 2011; and (ii) require the Debtor to amend the Disclosure Statement to provide adequate information as required by the Bankruptcy Code and the rulings of the Court. Perdue asserts it is owed a total amount of $7,537,729, reflecting a secured claim in the amount of $2,131,448 and an unsecured claim of $5,406,280. According to Perdue, the Debtor has failed to provide creditors and other interested parties adequate information on, among other things: -- the estimated return creditors would receive in a Chapter 7 liquidation compared to the Plan terms; -- disclosure of corporate approval and authorization for filed Plan and Disclosure Statement, since neither are signed by an officer of the Debtor; and -- disclosure of appointment of the Chapter 11 trustee, her duties, and effect of the appointment. The Chapter 11 Plan As reported in the Troubled Company Reporter on Jan. 31, 2012, 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. Sara A. Conti was appointed as Chapter 11 trustee for the Debtor's estate. 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. CMS ENERGY: Moody's Affirms 'Ba1' Senior Unsecured Ratings ---------------------------------------------------------- Moody's Investors Service affirmed the ratings for CMS Energy Corporation (CMS: Ba1 senior unsecured) and its regulated subsidiary Consumers Energy Corporation (Consumers: Baa2 senior unsecured) and changed the rating outlooks for CMS and Consumers to positive from stable. Separately, Moody's assigned a Ba1 rating to CMS' $300 million senior notes due 2022. The outlook is positive. Ratings Rationale "The outlook change follows a steady improvement in CMS' financial profile due in large part to a constructive legislative and regulatory environment" said Moody's Vice President Scott Solomon. Legislation passed by the Michigan legislature in 2008 provided a catalyst for the improved consolidated financial profile. This legislation streamlined the rate case process in a manner that has reduced regulatory lag, placed a 10% cap on customer participation in electric choice and provided financial support for utility investments. Since 2008, the Michigan Public Service Commission (MPSC) has granted Consumers' $285 million in electric rate increases and $97 million in gas rate increases. Moreover, Consumers has an electric and gas rate case pending for which it recently self-implemented $141 million in annual rate increases. The rate case activity has improved CMS' consolidated cash flow and financial metrics. Specifically, CMS' consolidated ratio of cash flow from operations pre-changes in working capital (CFO pre- WC) to debt improved to approximately 16% in 2011 from 10% in 2007 while interest coverage increased to 3.8 times from 2.4 times while adjusted consolidated debt levels have remained relatively constant at approximately $8.1 billion during this timeframe. Consumers' financial metrics have followed a similar positive trend. Specifically, its CFO pre-WC to debt metric improved to 25% in 2011 from 18% in 2007 while interest coverage improved to 5.4 times from 3.8 times. That said, the significant level of parent- level debt continues to constrain the rating of Consumers. As of December 31, 2011, CMS had approximately $2.3 billion of balance sheet debt, representing approximately 33% of total consolidated balance sheet debt. Consumers' faces an elevated capital expenditure program, the magnitude of which will require continued regulatory support in order to maintain the company's improved financial profile. Specifically, Consumers estimates its capital expenditures at approximately $1.40 billion in 2012, $1.25 billion in 2013 and $1.38 billion in 2014. A significant portion of this spending is driven by the evolving environmental requirements and statewide mandates in renewable generating capacity. Consumers' historical capital expenditures were $922 million in 2011, $877 million in 2010 and $827 million in 2009. A rating upgrade over the next 12 to 18 months could be triggered by continued regulatory support provided by the MPSC demonstrated by constructive outcomes in Consumers' pending rate cases and comfort in CMS' ability to maintain consolidated interest coverage and CFO pre-W/C to debt metrics in excess of 3.2 times and 15%, respectively, over Consumers' construction cycle. Evidence of declining support from the MPSC, greater than anticipated capital expenditure requirements or a decline in operating margins such that CMS' consolidated metric of CFO pre-WC to debt declines to below 15% could cause us to revise the rating outlook to stable. The principal methodology used in this rating was Regulated Electric and Gas Utilities published in August 2009. COLLEEN STRAWBRIDGE: Transfer of Apartment Ownership Affirmed ------------------------------------------------------------- District Judge Paul A. Engelmayer denied a pro se appeal by Colleen Strawbridge from a July 15, 2011 Order of the United States Bankruptcy Court for the Southern District of New York (Glenn, J.) approving a stipulation among Gregory Messer, the trustee of Ms. Strawbridge's Chapter 7 estate, Angelina Khanamirian, and 200 E. 74 Owners Corporation. The stipulation provides for the transfer of ownership of Ms. Strawbridge's apartment to Ms. Khanamirian subject to East 74's claim against the apartment. In exchange, the estate receives a release of Ms. Khanamirian's claim against it and funds sufficient to satisfy Ms. Strawbridge's unsecured creditors. The appeal arises out of a nearly decade-long dispute between Ms. Strawbridge and her creditors. The genesis of the dispute is a $200,000 loan that Ms. Strawbridge took in October 2000 from a company called Fairmont Funding. That loan was secured by the shares Ms. Strawbridge owned in East 74, the corporation which owns the co-op apartment in which she lives, and a lease she held as a result of that share ownership. Because those shares and the lease relate to the apartment Ms. Strawbridge lives in, the loan was, in essence, secured by her home. Ms. Strawbridge quickly fell behind on the loan payments and, thereafter, also stopped making monthly maintenance payments to her co-op, East 74. Shortly after the loan was made, the originator, Fairmont, assigned the loan to Indymac Bank. On Nov. 13, 2002, immediately before Indymac was to foreclose on the collateral (and, therefore, the apartment), Ms. Strawbridge filed her first petition for relief under Chapter 13 of the Bankruptcy Code. That case was dismissed by the Bankruptcy Court based on Ms. Strawbridge's failure to make payments pursuant to the plan imposed by the Court or provide documents necessary to the administration of the proceeding. Thereafter, Strawbridge sued Indymac in New York state court, alleging that her debt was the result of a predatory lending scheme; that case was dismissed in 2006 after the court determined that the lending practices surrounding the loan were not predatory. Indymac then sought to foreclose a second time. On Dec. 19, 2006, Strawbridge filed her second bankruptcy petition, this time under Chapter 11 of the Bankruptcy Code. After limited motion practice and an appeal to the District Court, that petition was also dismissed by the Bankruptcy Court for, inter alia, the debtor's failure to file monthly operating reports or to offer a plan of reorganization. After additional litigation in New York state court not relevant to the appeal, Ms. Strawbridge filed another Chapter 11 petition on Dec. 8, 2009. On Feb. 9, 2010, East 74 moved for an order dismissing Ms. Strawbridge's petition or, in the alternative, converting it to a liquidation proceeding pursuant to Chapter 7 of the Bankruptcy Code and appointing a trustee to administer the liquidation of the debtor's assets. On March 5, 2010, the Bankruptcy Court granted East 74's motion to convert the petition to Chapter 7, holding that Ms. Strawbridge "did not file her petition in good faith," and that the 2009 petition was "part of a strategic effort to frustrate the secured creditors' efforts to enforce their interests in the Apartment." While Strawbridge litigated these various matters, the loan secured by her co-op shares and lease changed hands a number of times and continued to collect interest and default fees. In July 2008 Indymac Bank, who had been assigned the loan from the originator, Fairmont Funding, was put into conservatorship by the Federal Deposit Insurance Corporation. On May 20, 2009, in its capacity as conservator, the FDIC assigned Ms. Strawbridge's loan to a company named Kondaur Capital Corporation. In October 2009, Kondaur, in turn, assigned the loan to a company called ESA Ventures, LLC. On Dec. 18, 2009, ESA filed a proof of claim against Ms. Strawbridge's estate, secured by the co-op shares and lease, asserting that the amount due on the loan had ballooned to $562,027 as a result of nearly a decade in default. On March 22, 2010, ESA assigned its secured claim against the estate to Ms. Khanamirian. Upon his appointment, the Chapter 7 Trustee attempted to gain access to Ms. Strawbridge's apartment to assess its value as the estate's primary asset. After several aborted and contentious attempts to access to the apartment, the Trustee and his retained evaluators were granted access in fall 2010 and fixed the apartment's value at approximately $450,000. Because the amount of the secured claims on the estate -- by Ms. Khanamirian on the loan, and by East 74 on the maintenance fees the debtor had not paid -- exceeded the assessed value of the estate's assets, the Trustee engaged the creditors in settlement discussions to resolve their claims. The case before the District Court is, Colleen Strawbridge, Appellant, v. Gregory Messer, as Chapter 7 Trustee, Angelina Khanamirian, and 200 E. 74 Owners Corp., Appellees, No. 11 Civ. 6759 (S.D.N.Y.). A copy of the Court's March 6, 2012 Opinion and Order is available at http://is.gd/FBBBXufrom Leagle.com. Gregory Messer is represented by Gary F. Herbst, Esq. -- gfh@lhmlawfirm.com -- at LaMonica, Herbst & Maniscalco. Angelina Khanamirian is represented by Norman Morris Mendelson, Esq., at Law Offices of Mendelson & Associates PLLC. 200 East 74 Owners Corp. is represented by Joshua Graham Losardo, Esq., at Belkin Burden Wenig & Goldman, LLP. COMMUNITY HEALTH: S&P Rates $750-Mil. Sr. Secured Term Loan 'BB' ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned ratings to the proposed $750 million senior secured term loan B due 2018 to be borrowed by CHS/Community Health Systems Inc., a wholly owned subsidiary of Franklin, Tenn.-based Community Health Systems Inc. "We rated the loan 'BB' (two notches higher than the 'B+' corporate credit rating on the company) with a recovery rating of '1', indicating our expectation of very high (90% to 100%) recovery for lenders in the event of a payment default. This new issue is an extension of the company's existing term loan B that matures in 2014," S&P said. "The corporate credit rating on Community Health is 'B+' and the rating outlook is stable. The rating reflects our assessment of the company's business risk profile as 'fair', because of its large, relatively diversified portfolio of hospitals that helps the company manage uncertain reimbursement and spread local market risk over many markets. The rating is also based on our view of the company's financial risk profile as 'highly leveraged,' reflected in our expectation that the current debt to EBITDA level of about 5.2x will remain largely unchanged. This viewpoint includes our belief that Community will use its cash flow to fund acquisitions and not repay debt. We believe acquisitions will remain a key strategy to increase earnings, particularly as a difficult reimbursement environment and flat patient volume trends (adjusted for outpatient visits) continue to pressure profitability," S&P said. Ratings List Community Health Systems Inc. Corporate Credit Rating B+/Stable/-- CHS/Community Health Systems Inc. $750M sr secd term loan B due 2018 BB Recovery Rating 1 COMMUNITY MEMORIAL: Patient Care Ombudsman Named ------------------------------------------------ Christine Derdarian in Sylvan Lake, Michigan, has been appointed as Patient Care Ombudsman in the Chapter 11 case of Community Memorial Hospital pursuant to a stipulation between the Debtor and Daniel M. McDermott, the United States Trustee for Region 9, which was approved the Bankruptcy Court. Pursuant to Section 333(b) of the Bankruptcy Code, the Patient Care Ombudsman will monitor the quality of patient care provided to patients of the debtor, including interviewing patients and physicians; and not later than 60 days after the date of the appointment, and not less frequently than at 60-day intervals thereafter, report to the court regarding the quality of patient care provided to patients. Ms. Derdarian charges $250 per hour for her services. About Community Memorial Hospital Community Memorial Hospital, operator of the Cheboygan Memorial Hospital, filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 12-20666) on March 1, 2012. Judge Daniel S. Opperman oversees the case. Paul W. Linehan, Esq., at McDonald Hopkins LLC, represents the Debtor as counsel. The Debtor's financial advisor is Conway Mackenzie Inc. The Debtor estimated assets and debts of $10 million to $50 million. Opened in 1942, the Debtor is an independent, not-for-profit entity, organized exclusively for charitable, scientific and educational purposes, and holds tax exempt status in accordance with Section 501(c)(3) of the Internal Revenue Code. The Cheboygan Memorial Hospital is a 25-bed critical access hospital located in Cheboygan, Cheboygan County, a community on the Lake Huron coast. The Debtor has 395 employees. Counsel for Citizens National Bank of Cheboygan is Sandra S. Hamilton, Esq., at Clark Hill PLC. AmerisourceBergen is represented by Dennis M. Haley, Esq., at Winegarden Haley Lindholm & Robertson PLC. The Debtor and McLaren Health Care Corporation have an Asset Purchase Agreement to buy most of the Debtor's assets for $5 million. McLaren is also providing up to $2 million in DIP financing. The APA requires that any outstanding balances on the postpetition financing will be credited toward the purchase price. Christine Derdarian in Sylvan Lake, Michigan, has been appointed as Patient Care Ombudsman pursuant to a stipulation between the Debtor and the U.S. Trustee for Region 9. COMMUNITY MEMORIAL: Has 5-Member Creditors' Committee ----------------------------------------------------- Daniel M. McDermott, the United States Trustee for Region 9, has appointed an official committee of unsecured creditors in the Chapter 11 case of Community Memorial Hospital d/b/a Cheboygan Memorial Hospital pursuant to Sections 1102(a) and 1102(b) of the Bankruptcy Code. The Committee members are: 1. James Scarsella, President ANESTHESIA STAFFING CONSULTANTS 30200 Telegraph Rd., Ste. 220 Bingham Farms, MI 48025 Tel: 248-258-5058 Fax: 248-927-5058 E-mail: Jscarsella@ASConsultants.com 2. Dawn Rouse GORDON FOOD SERVICE, INC. 420 50th St. SW PO Box 2244 Grand Rapids, MI 49501 Tel: 800-905-2796 Fax: 616-717-9551 E-mail: DAWN.ROUSE@GFS.com 3. Kenneth E. Scholten AGILITY HEALTH, INC. 607 Dewey Ave. NW, Ste. 300 Grand Rapids, MI 49504 Tel: 616-356-5007 Fax: 616-356-5001 E-mail: Ken.scholten@agilityhealth.com 4. Greg Robinson HEALTHCARE CLAIMS SOLUTIONS, INC. 3460 S. Dixie Hwy. Moraine, OH 45439 Tel: 937-294-2468 ext. 205 Fax: 937-294-2394 E-mail: greg@myhcsinc.com 5. Mark Hepler MUNSON MEDICAL CENTER 1105 Sixth Street Traverse City, MI 49684 Tel: 231-935-6512 Fax: 231-935-6548 E-mail: mhepler@mhc.net Community Memorial Hospital, operator of the Cheboygan Memorial Hospital, filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 12-20666) on March 1, 2012. Judge Daniel S. Opperman oversees the case. Paul W. Linehan, Esq., at McDonald Hopkins LLC, represents the Debtor as counsel. The Debtor's financial advisor is Conway Mackenzie Inc. The Debtor estimated assets and debts of $10 million to $50 million. Opened in 1942, the Debtor is an independent, not-for-profit entity, organized exclusively for charitable, scientific and educational purposes, and holds tax exempt status in accordance with Section 501(c)(3) of the Internal Revenue Code. The Cheboygan Memorial Hospital is a 25-bed critical access hospital located in Cheboygan, Cheboygan County, a community on the Lake Huron coast. The Debtor has 395 employees. Counsel for Citizens National Bank of Cheboygan is Sandra S. Hamilton, Esq., at Clark Hill PLC. AmerisourceBergen is represented by Dennis M. Haley, Esq., at Winegarden Haley Lindholm & Robertson PLC. The Debtor and McLaren Health Care Corporation have an Asset Purchase Agreement to buy most of the Debtor's assets for $5 million. McLaren is also providing up to $2 million in DIP financing. The APA requires that any outstanding balances on the postpetition financing will be credited toward the purchase price. Christine Derdarian in Sylvan Lake, Michigan, has been appointed as Patient Care Ombudsman pursuant to a stipulation between the Debtor and the U.S. Trustee for Region 9. COMMUNITY MEMORIAL: Seeks Approval of McDonald Hopkins Hiring ------------------------------------------------------------- Community Memorial Hospital seeks Court permission to employ McDonald Hopkins LLC as counsel to render general legal services throughout the course of the Debtor's Chapter 11 case. McDonald Hopkins will charge the Debtor for legal services on an hourly basis at these rates: Billing Category Range ------- -------------- Members $280 - $660 Of Counsel $310 - $605 Associates $185 - $395 Paralegals $115 - $245 Law Clerks $60 - $125 In the 12 months prior to the Chapter 11 filing, the Debtor paid to McDonald Hopkins a "replenishing" retainer in the aggregate amount of $386,138 for legal services performed or to be performed in contemplation of the Debtor's Chapter 11 case. As of the Petition Date, McDonald Hopkins held $125,000 as a retainer, and holds no prepetition claim against the Debtor. McDonald Hopkins attests it does not represent any of the Debtor's secured creditors in any matters related to or adverse to the Debtor, except that McDonald Hopkins has represented General Electric Capital Corporation, which financed some of the Debtor's equipment, in tax matters unrelated to the Debtor. The firm says it is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. About Community Memorial Hospital Community Memorial Hospital, operator of the Cheboygan Memorial Hospital, filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 12-20666) on March 1, 2012. Judge Daniel S. Opperman oversees the case. Paul W. Linehan, Esq., at McDonald Hopkins LLC, represents the Debtor as counsel. The Debtor's financial advisor is Conway Mackenzie Inc. The Debtor estimated assets and debts of $10 million to $50 million. Opened in 1942, the Debtor is an independent, not-for-profit entity, organized exclusively for charitable, scientific and educational purposes, and holds tax exempt status in accordance with Section 501(c)(3) of the Internal Revenue Code. The Cheboygan Memorial Hospital is a 25-bed critical access hospital located in Cheboygan, Cheboygan County, a community on the Lake Huron coast. The Debtor has 395 employees. Counsel for Citizens National Bank of Cheboygan is Sandra S. Hamilton, Esq., at Clark Hill PLC. AmerisourceBergen is represented by Dennis M. Haley, Esq., at Winegarden Haley Lindholm & Robertson PLC. The Debtor and McLaren Health Care Corporation have an Asset Purchase Agreement to buy most of the Debtor's assets for $5 million. McLaren is also providing up to $2 million in DIP financing. The APA requires that any outstanding balances on the postpetition financing will be credited toward the purchase price. Christine Derdarian in Sylvan Lake, Michigan, has been appointed as Patient Care Ombudsman pursuant to a stipulation between the Debtor and the U.S. Trustee for Region 9. The U.S. Trustee also has appointed an official committee of unsecured creditors. COMMUNITY MEMORIAL: Taps Conway MacKenzie as Financial Advisors --------------------------------------------------------------- Community Memorial Hospital asks the Court to approve its employment of Conway MacKenzie, Inc., as financial restructuring advisors to assist it during the Chapter 11 case, and perform other consulting services necessary to the Debtor's continuing operations, effective as of the Petition Date. Conway has been consulting with the Debtor since October 2011. Among other things, Conway's prepetition work included marketing of substantially all of the Debtor's assets. During this period, the Debtor paid Conway current on an hourly basis, a total of $536,636. The Debtor paid Conway a $125,000 retainer prior to bankruptcy filing, and has agreed that the firm will hold the retainer in trust for application against its final allowed fees. The Debtor proposes to pay the firm on an hourly rate (plus costs) basis. Conway's professionals will charge hourly rates ranging from $100 to $450. Conway will also be entitled to a success fee for the execution of a transaction or series of transactions selling the Debtor's operating assets or otherwise execution of strategies that maintain healthcare in Cheboygan County, Michigan. The Success Fee is capped at $125,000. Michael J. Hausman, Managing Director at Conway, attests that the firm does not represent an interest adverse to the Debtor's bankruptcy estate and is a "disinterested person" as that term is defined in Section 101(14) and required by section 327(a) of the Bankruptcy Code. The firm may be reached at: Michael J. Hausman, CTP CONWAY MACKENZIE INC. 401 S Old Woodward Ave., Suite 340 Birmingham, MI 48009-6621 USA Tel: (248) 433-3100 E-mail: mhausman@conwaymackenzie.com About Community Memorial Hospital Community Memorial Hospital, operator of the Cheboygan Memorial Hospital, filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 12-20666) on March 1, 2012. Judge Daniel S. Opperman oversees the case. Paul W. Linehan, Esq., at McDonald Hopkins LLC, represents the Debtor as counsel. The Debtor's financial advisor is Conway Mackenzie Inc. The Debtor estimated assets and debts of $10 million to $50 million. Opened in 1942, the Debtor is an independent, not-for-profit entity, organized exclusively for charitable, scientific and educational purposes, and holds tax exempt status in accordance with Section 501(c)(3) of the Internal Revenue Code. The Cheboygan Memorial Hospital is a 25-bed critical access hospital located in Cheboygan, Cheboygan County, a community on the Lake Huron coast. The Debtor has 395 employees. Counsel for Citizens National Bank of Cheboygan is Sandra S. Hamilton, Esq., at Clark Hill PLC. AmerisourceBergen is represented by Dennis M. Haley, Esq., at Winegarden Haley Lindholm & Robertson PLC. The Debtor and McLaren Health Care Corporation have an Asset Purchase Agreement to buy most of the Debtor's assets for $5 million. McLaren is also providing up to $2 million in DIP financing. The APA requires that any outstanding balances on the postpetition financing will be credited toward the purchase price. Christine Derdarian in Sylvan Lake, Michigan, has been appointed as Patient Care Ombudsman pursuant to a stipulation between the Debtor and the U.S. Trustee for Region 9. The U.S. Trustee also has appointed an official committee of unsecured creditors. CONTINENTAL AIRLINES: S&P Keeps 'B' Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'A-' rating to Continental Airlines Inc.'s series 2012-1 Class A pass- through certificates with an expected maturity of April 11, 2024, and its preliminary 'BBB-' rating to Continental's series 2012-1 Class B pass-through certificates with an expected maturity of April 11, 2020. The final legal maturities will be 18 months after the expected maturity. Continental is issuing the certificates under a Rule 415 shelf registration. "We will assign final ratings after concluding a legal review of the documentation," S&P said. "The preliminary 'A-' and 'BBB-' ratings are based on the consolidated credit quality of Continental's parent, United Continental Holdings Inc. (B/Stable/--); substantial collateral coverage by good-quality aircraft; and the legal and structural protections available to the pass-through certificates. The company will use proceeds of the offerings to refinance four Boeing B737-900ER (extended range) aircraft it already owns, and to finance 2012 and 2013 deliveries of 13 new B737-900ERs and four new Boeing B787-8s. Each aircraft's secured notes are cross- collateralized and cross-defaulted--a provision we believe increases the likelihood that Continental would affirm the notes (and thus continue to pay on the certificates) in bankruptcy," S&P said. "The pass-through certificates are a form of enhanced equipment trust certificates (EETC) and benefit from legal protections afforded under Section 1110 of the federal bankruptcy code and by liquidity facilities provided by the New York branch of Credit Suisse AG (A+/Negative/A-1). The liquidity facilities would cover up to three semiannual interest payments while certificateholders negotiated with Continental in an event of bankruptcy and, if necessary, repossessed and sold aircraft collateral following any default by the airline," S&P said. "The preliminary ratings on the certificates reflect trust property and escrow receipts for deposits Continental has made to Natixis S.A. (A/Stable/A-1). The New York branch of the bank will hold the escrow deposits pending delivery of the new aircraft. Amounts deposited under the escrow agreements are not the property of Continental and are not entitled to the benefits of Section 1110 of the U.S. Bankruptcy Code (which governs creditor rights for aircraft-backed debt and leases). Accordingly, any default arising under an indenture solely by reason of its cross-default provisions may not be a type of default that Section 1110 requires an airline to cure. Any cash collateral held as a result of the cross-collateralization of the equipment notes also would not be entitled to the benefits of Section 1110. Neither the certificates nor the escrow receipts may be separately assigned or transferred. Any cash collateral held as a result of the cross- collateralization of the equipment notes also would not be entitled to the benefits of Section 1110. Neither the certificates nor the escrow receipts may be separately assigned or transferred," S&P said. "We believe that United Continental views these planes as important and would, given the cross-collateralization and cross- default provisions, likely affirm the aircraft notes in a bankruptcy scenario. In contrast to most EETCs that airlines issued before 2009, the cross-default would take effect immediately in a bankruptcy if Continental rejected any of the aircraft notes. This should prevent Continental from selectively affirming some aircraft notes and rejecting others ('cherry- picking'), which often harms the interests of certificateholders in a bankruptcy," S&P said. "We consider the collateral pool to be good quality, comprising 63% B737-900ER and 37% B787-8 models, measured by appraised value. The B737-900ER is the largest model in Boeing's range of current technology narrowbody planes. Entering service in 2007 as a longer-range version of the relatively unsuccessful B737-900, the model has gradually gained orders, although it has somewhat fewer orders (about 450) and operators (16) than Airbus' competing model, the A321-200. The B737-900ER has not yet been as successful as its operating economics and capabilities would suggest. This may be partly because it entered into service only in 2007, fairly recently and shortly before the financial crisis and recession in 2008-2009. However, it is the best plane available to replace B757-200s in domestic U.S. service, a factor borne out by Delta Air Lines Inc.'s recent order. We believe that the global fleet and operator base will continue to expand gradually, particularly if it appears that fuel prices will increase further in coming years," S&P said. "Boeing will offer a B737-900ER with its new engine option (the 'MAX' series), but we do not believe that this will cause current B737-900ER values to fall materially in the near term. Companies are still ordering the current version to replace many of their B757-200s. Following the merger of United and Continental, the combined company operates two families of narrowbody planes, Boeing 737s and Airbus 320s. The combined company appears to favor the B737-900ER to the competing A321-200, based on recent orders and management's stated preference," S&P said. "The remaining collateral value is represented by B787-8s, making their first appearance in a EETC. The B787-8 is Boeing's new long- range, midsize, widebody plane, which it began delivering (after long delays) in September 2011. The B787 family (there is also the larger B787-9, not yet delivered) has been a huge success in terms of orders. There are about 860 sales, one of the fastest starts for any aircraft model. The airline user base is globally diversified, and includes a mix of types of airlines and aircraft leasing companies. It is intended mainly as a replacement for the B767-300ER, a small widebody," S&P said. "The 787 incorporates the most advanced fuel-saving technology, including extensive use of composites (which is also intended to reduce maintenance costs). Indeed, it will have a higher use of composites than the competing Airbus A350, which is expected to deliver several years in the future. As the first model with this level of new technology, it should face little technological risk for many years to come. Although it is always possible that flaws will show up in the plane as it is introduced into service (Boeing is addressing some hairline cracks currently), we expect that these will be resolved without material problems that would affect values," S&P said. "We are applying a depreciation rate of 6.5% annually of the preceding year's value for the 787-8, which is equal to the lowest depreciation rate we currently use for a widebody plane (for the B777-300ER). We chose the 6.5% depreciation rate for the B787-8 considering several factors. Its resale liquidity should be good for a widebody plane, though not as good as for the most popular narrowbody planes (which usually have a greater number of airline operators globally). With its advanced technology, the 787 should face little technological risk for many years to come. At the same time, the first version of a widebody family of planes that a manufacturer introduces (the B787-8, in this case) is often partly superseded by later, improved versions that can carry more passengers (the B787-9 and, potentially, even larger variants). The B787-9 will, according to Boeing, have both a higher seat capacity and slightly longer range than the B787-9, and we believe that this version will ultimately be more successful. For the B737-900ER, we also used a depreciation rate of 93.5%, the same as we have used before," S&P said. "The initial loan-to-value (LTV) of the Class A certificates is 55.3% and of the Class B, 65.5%, using the appraised base values and depreciation assumptions in the offering memorandum. When we evaluate an enhanced equipment trust certificate, we compare the values provided by appraisers that the airline hired with our own sources. In this case, we are focusing on the same maintenance- adjusted, lower of mean or median base value from three appraisers that the prospectus uses. However, we apply more conservative (faster) depreciation rates than those used in the prospectus (3% of initial value each year), and our loan-to-values gradually diverge from those shown in the prospectus, reaching 61% maximum for the Class A certificates and 69% for the Class B certificates. Our analysis also considered that a full draw of the liquidity facility, plus interest on those draws, represents a claim senior to the certificates. This amount is somewhat less than levels typical of a EETC, equal to 5%-6% of collateral value. We factored that added priority claim in our analysis," S&P said. Ratings List Continental Airlines Inc. Corporate credit rating B/Stable/-- New Ratings Continental Airlines Inc. Equipment trust certificates Series 2012-1 Class A pass-thru certs A-(sf) (prelim) Series 2012-1 Class B pass-thru certs BBB-(sf) (prelim) COVANTA HOLDING: Moody's Issues Summary Credit Opinion ------------------------------------------------------ Moody's Investors Service issued a summary credit opinion on Covanta Holding Corporation and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Covanta Holding Corporation. Moody's current ratings on Covanta Holding Corporation are: LT Corporate Family Ratings domestic currency ratings of Ba2 Senior Unsecured domestic currency ratings of Ba3 Senior Unsec. Shelf domestic currency ratings of (P)Ba3 Pref. Shelf domestic currency ratings of (P)B2 Speculative Grade Liquidity Rating ratings of SGL-1 LGD Senior Unsecured domestic currency ratings of 75 - LGD5/81 - LGD5 Probability of Default ratings of Ba2 Ratings Rationale Covanta's Ba2 Corporate Family Rating (CFR) reflects the continuation of relatively consistent credit metrics supported by a diversified, largely contracted portfolio of energy-from-waste (EfW) projects principally located throughout the US. The rating incorporates the strong operating performance of the portfolio and the relatively high barriers to entry for most competing technologies. These strengths are mitigated by the highly leveraged capital structure that remains in place as well as the degree of structural subordination that exists at the Covanta level. About $672 million of secured project level debt is senior to holding company debt at Covanta Energy Company (CEC) and at Covanta. In most cases, documentation in the project level debt agreements include a restricted payments test which must be satisfied in order for dividends to be paid to CEC and Covanta. The rating recognizes that a large portion of Covanta's project level debt has amortized over the past five years and such debt repayment will continue based upon the terms and conditions in the project documents. Moody's calculates that since 2007, about $564 million of project level debt has been repaid and through 2013, 41% of the remaining project level debt or $275 million will amortize. While such amortization represents a sizeable required call on cash flow over that period, the debt repayment profile reduces the degree of structural subordination and strengthens overall credit quality for creditors at CEC and at Covanta. The current Ba2 CFR incorporates Moody's view that such debt amortization will likely be replaced by additional project or corporate level debt to finance new development projects and/or acquisitions. To that end, Moody's observes with the completion of $400 million Covanta senior unsecured note offering and the refinancing of the CEC term loan, corporate level funded debt at the Covanta and CEC level will amount to $1.56 billion or nearly 70% of the consolidated company debt load. Moody's further observes that even with the substantial project debt amortization, the majority of the company's cash flow continue to be sourced by subsidiaries that have project level debt. Rating Outlook The stable outlook on Covanta's rating reflects Moody's expectation that: (i) the energy-from-waste project contracts with the respective municipalities and utilities will remain in place through their current maturities; (ii) Covanta's management will continue to operate the plants at high availability levels and maintain stability with regard to administrative, operating, and maintenance expenses; and (iii) Covanta will continue to balance its share repurchases and potential development projects or acquisitions in a manner neutral to credit quality. What Could Change the Rating - Up Upward rating pressure could surface if Covanta successfully extends its contracts on favorable terms, and finances new development in a reasonably conservatively fashion leading to some de-levering and resulting in a financial improvement such that cash flow to debt exceeds 18% and cash flow coverage of interest expense exceeds 4.5x on a sustainable basis. What Could Change the Rating - Down The ratings could be lowered if the company significantly increases leverage to finance an acquisition or returns to shareholders; several projects are subject to unforeseen capital expenditure requirements, particularly, with regard to environmental regulatory compliance; several key projects have extended outages; or all or a substantial part of the NOLs become unavailable to Covanta, resulting in a decline in key financial metrics including the ratio of cash flow to debt falling below 12% and cash interest coverage declining to below 3.0x for an extended period. The methodologies used in this rating were Unregulated Utilities and Power Companies published in August 2009, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. COVANTA HOLDING: S&P Affirms 'BB-' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on Covanta and CEC. The outlook is stable. "We also assigned a 'BB+' rating to CEC's proposed new $300 million senior secured term loan maturing 2019 and $900 million revolver due 2017. The recovery rating on these new issues is '1', indicating our expectation that lenders would receive a very high (90% to 100%) recovery of principal if a payment default occurs," S&P said. "We also assigned a 'B+' rating to Covanta's new senior unsecured notes due 2022. The recovery rating on these notes is '5', indicating our expectation that lenders would receive a modest (10% to 30%) recovery of principal if a payment default occurs," S&P said. "We have also raised our issue ratings on Covanta's existing unsecured notes to 'B+' from 'B', based on a revision of the recovery rating on this debt to '5' from '6'," S&P said. "Covanta exercised its option to repay the remaining $2 million balance of the $373.7 million senior unsecured convertible debentures due 2027," S&P said. "Effectively, Covanta is extending debt maturities and taking advantage of favorable market terms to decrease the amount of senior debt at CEC with subordinated debt at Covanta. Covanta expects to complete the recapitalization by the end of March," said Standard & Poor's credit analyst Trevor D'Olier-Lees. "The ratings on Covanta reflect an 'aggressive' financial risk profile marked by high debt balances, a capital-intensive business and increased use of free cash flow to pay for dividends and share repurchases. We view Covanta's business risk profile as 'satisfactory', reflecting steady cash distributions from operating assets that are mostly contracted with highly creditworthy municipal and county governments, good operations history, with average boiler availability of about 90%, well above the typical contractual requirement of 85% and the waste business' generally favorable risk characteristics," S&P said. Covanta owns and operates large energy-from-waste (EFW) and renewable energy projects. It is the largest EFW operator in North America, with 41 EFW facilities with a concentration in the U.S. Northeast. It also has five facilities in China and Italy. "The stable outlook reflects Standard & Poor's expectation of predictability and stability of future cash flows from existing waste and power contracts combined with reduced new project development, continued deleveraging of existing project debt, and the planned recapitalization that strengthens the company's liquidity. Although we believe that the waste industry remains recession-resistant, if a recession occurs in 2012-2013 (our view of this happening is about 25%), we think it likely that waste volumes will likely shrink again, leading to lower waste prices. We more likely think that waste prices will stay relatively flat and revenues will grow with inflation over time. We also think that energy prices will remain soft due to low natural gas prices and could soften further if electricity demand falls with a recession. Covanta plans to offset this with more profitable--but more volatile--recycled metals revenues. About 75% of waste and energy revenues are under contract in 2012. Covanta is seeking to renew contracts before they expire and it has been particularly successful on the waste side. However, if the company fails to meet forecasts, which could result from operating problems, a weaker merchant environment, fluctuations in metal prices, a general economic downturn, and debt to EBITDA remains above 5x, we could lower the rating. We would also view another hike in dividends as negative for credit and any borrowing to fund shareholder dividends or stock purchases would likely lead to a downgrade. Although less likely, given the increased use of cash flow to finance shareholder rewards instead of reducing debt, we could consider an upgrade if we see continued solid operations, stability in financial policy, and debt paydown on a consolidated basis that results in financial risk ratios that are more in line with a significant financial risk profile such as a debt/EBITDA of less that 4x," S&P said. CRYOPORT INC: Terminates Employment of Mark Engelhart's as CCO -------------------------------------------------------------- Mark M. Engelhart's employment as the chief commercialization officer of CryoPort, Inc., was terminated. Larry Stambaugh, Chief Executive Officer of the Company, will be responsible for managing the Company's sales and marketing efforts until a new Chief Commercialization Officer is retained and appointed. About CryoPort Inc. Headquartered in Lake Forest, Calif., CryoPort, Inc. (OTC BB: CYRXD) -- http://www.cryoport.com/-- provides innovative cold chain frozen shipping system dedicated to providing superior, affordable cryogenic shipping solutions that ensure the safety, status and temperature of high value, temperature sensitive materials. The Company has developed a line of cost-effective reusable cryogenic transport containers capable of transporting biological, environmental and other temperature sensitive materials at temperatures below 0-degree Celsius. KMJ Corbin & Company LLP expressed substantial doubt about CryoPort's ability to continue as a going concern, following the Company's fiscal 2009 results. The firm noted that the Company has incurred recurring losses and negative cash flows from operations since inception. The Company reported a net loss of $6.16 million on $378,718 of net revenues for the nine months ended Dec. 31, 2011, compared with a net loss of $4.29 million on $375,438 of net revenues for the same period during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $4.22 million in total assets, $3.60 million in total liabilities and $620,873 in total stockholders' equity. CLUB DEPORTIVO: Case Summary & 13 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Club Deportivo De Ponce, Inc. dba Actividades Especiales P.O. Box 1826 Ponce, PR 00733 Bankruptcy Case No.: 12-01794 Chapter 11 Petition Date: March 9, 2012 Court: United States Bankruptcy Court District of Puerto Rico (Ponce) Debtor's Counsel: Juan Carlos Bigas Valedon, Esq. JUAN C BIGAS LAW OFFICE P.O. Box 7011 Ponce, PR 00732-7011 Tel: (787) 259-1000/(787) 633-1253 Fax: (787) 842-4090 E-mail: jcbigas@yahoo.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb12-01794.pdf The petition was signed by Gilberto Sanchez Perez, clerk accountant. DELTA PETROLEUM: S&P Withdraws 'D' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'D' corporate credit rating on Delta Petroleum Corp. at the company's request. "We also withdrew our 'D' unsecured debt rating and '5' recovery rating on the company," S&P said. "Subsequently, we have assigned a 'D' corporate credit to Delta Petroleum Corp. on an unsolicited basis. We also assigned a 'D' debt rating and a '5' recovery rating to the company's senior unsecured debt on an unsolicited basis, reflecting expectations for modest recovery (10% to 30%) in its current default," S&P said. As of Sept. 30, 2011, Delta had approximately $380 million of funded debt. Standard & Poor's downgraded the company to 'D' on Dec. 19, 2011, following its filing for Chapter 11 bankruptcy protection. "The corporate credit rating on Delta reflects its 'highly leveraged' financial profile and 'vulnerable' business risk. It is levered almost exclusively to weak natural gas prices and it has a very small production profile, with third-quarter production just 2.6 billion cubic feet equivalent (Bcfe). A majority of its reserves are in the Rocky Mountain region, where gas differentials (the difference in price from Henry Hub) tend to be volatile. Its breakeven cost structure, inclusive of depletion, depreciation, and amortization (DD&A) is more than $11 per Mcfe, which is uneconomic at current prices," S&P said. DENISON COUNTRY: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Denison Country Club, a Texas Corp. fka The Denison Rod and Gun Club 5216 FM 84 Denison, TX 75020 Bankruptcy Case No.: 12-40610 Chapter 11 Petition Date: March 9, 2012 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Bill F. Payne, Esq. THE MOORE LAW FIRM, LLP 100 North Main Street Paris, TX 75460-4222 Tel: (903) 784-4393 ext. 40 E-mail: lgarner@moorefirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 A copy of the list of four largest unsecured creditors is available for free at http://bankrupt.com/misc/txeb12-40610.pdf The petition was signed by Mike Broyles, president. DEX ONE: Secures Lender Approval for Credit Pact Amendments ----------------------------------------------------------- Dex One Corporation has received approval from lenders to amend its three operating subsidiaries' credit agreements to allow for the repurchase of bank loans at a discount. "We are pleased an overwhelming majority of our lenders supported the amendments. We expect this action, in conjunction with other 2012 payments, to reduce our outstanding obligations by approximately $400 million," said Alfred Mockett, Dex One chief executive officer. "We will continue to seek additional opportunities to strengthen our balance sheet and pay down debt." The material terms of the Amendments include: * From March 9, 2012, until Dec. 31, 2013, each of Dex East, Dex West, and RHDI, subject to the procedures and conditions set forth in each of their respective Amendments and Credit Agreements, is permitted to repurchase and retire loans below par utilizing, in any fiscal year, cash up to a maximum of that Borrower's Portion of Excess Cash Flow for the immediately preceding fiscal year minus the amount of other Designated Excess Cash Expenditures made with such Borrower's Portion of Excess Cash Flow for the immediately preceding fiscal year plus an additional $5,000,000 during the term of the respective Credit Agreements for Voluntary Prepayments if (i) no default or event of default has occurred and is continuing; (ii) such Borrower can certify that no financial covenant event of default could reasonably be expected to occur during the immediately succeeding four calendar quarters if such Voluntary Prepayment is not made; (iii) such Borrower has obtained approval of its board of directors for such Voluntary Prepayment; and (iv) (y) such Borrower and its subsidiaries has unrestricted cash and Permitted Investments of at least $10,000,000 and (z) the Borrowers and their subsidiaries have unrestricted cash and Permitted Investments of at least $40,000,000 on a consolidated basis. * In connection with any proposed Voluntary Prepayment, each Borrower is required to notify its Lenders that such Borrower desires to prepay its loans below par and provide the aggregate amount of cash to be so expended on such proposed Voluntary Prepayment and the price within a range equal to a percentage of par of the principal amount of loans to be prepaid. * Each Voluntary Prepayment will constitute an optional prepayment of loans under each Credit Agreement. * Each Borrower is permitted to make a restricted payment to the Company in an amount equal to one-half of each respective Borrower's cash savings as a result of the Company's election to PIK the interest payments on its 12/14% Senior Subordinated Notes due 2017, which such restricted payment may be used by the Company, within 10 business days of that payment, to effect repurchases of its Senior Subordinated Notes at a price equal to or less than 30% of the principal amount of the Senior Subordinated Notes so repurchased; provided, that no default or event of default is continuing or would result therefrom; provided further, that if such restricted payment is not used to so repurchase Senior Subordinated Notes, such restricted payment must be returned to the respective Borrower within 10 business days of the date thereof. * If the repurchase is effected, concurrently with that repurchase, each Borrower must make a voluntary prepayment at par of the loans outstanding under its respective Credit Agreement in an aggregate amount equal to the amount of such restricted payment. * Each Borrower may elect by written notice to its respective Agent to apply certain optional prepayments (excluding Voluntary Prepayments) to specific scheduled installment repayments due in the then-current fiscal year. * In connection with the Amendments, the Company made certain representations and warranties to the Agents and the Lenders. About Dex One Dex One, headquartered in Cary, North Carolina, is a local business marketing services company that includes print directories and online voice and mobile search. Revenue was approximately $1.1 billion for the LTM period ended Sept. 30, 2010. 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 on May 28, 2009 (Bank. D. Del. Case No. 09- 11833 through 09-11852). They emerged from bankruptcy on Jan. 29, 2010. On the Effective Date and in connection with its emergence from Chapter 11, RHD was renamed Dex One Corporation. The Company reported a net loss of $518.96 million in 2011 compared with a net loss of $923.59 million for the eleven months ended Dec. 31, 2010. The Company's balance sheet at Dec. 31, 2011, showed $3.46 billion in total assets, $3.47 billion in total liabilities, and a $9.86 million total shareholders' deficit. * * * As reported by the TCR on Nov. 21, 2011, Standard & Poor's Ratings Services lowered its ratings on Dex One Corp. and related entities to 'CCC+' from 'B-'. "The rating action is based on Dex One Corp.'s continued weak operating performance and its announcement that it is exploring a potential amendment, which would allow subpar repurchases of its term debt," said Standard & Poor's credit analyst Chris Valentine. He explained, "The term loan is trading at a very significant discount to the par value, which we believe suggests a high probability of a subpar buyback sometime over the next 12 months. Under Standard & Poor's criteria, we would view these subpar buybacks as tantamount to a default." In the Oct. 10, 2011, edition of the TCR, Moody's Investors Service has downgraded the corporate family rating (CFR) for Dex One Corporation's ("Dex One" or "the company") to B3 from B1. The downgrade reflects Moody's doubts that the company will be able to transition its business away from a reliance on print directories quickly enough to stabilize its revenues and earnings. Consequently, Moody's expects that the relatively robust levels of free cash flow that the company is currently generating will decline at an accelerating pace over time. Moody's ratings outlook for Dex One remains negative. DYNEGY HOLDINGS: Wins Nod to Reject New Windsor Office Lease ------------------------------------------------------------ Dynegy Holdings LLC and its affiliates sought and obtained authority from the Bankruptcy Court to reject an unexpired lease by and among Debtor Dynegy Northeast Generation, Inc., and First Columbia 4-LA LLC of approximately 10,000 square feet of office space located at Suite 200, 4 London Avenue, in New Windsor, New York. The rejection date is as of Jan. 31, 2012. The Property is currently vacant and has been vacant for 30 days, Sophia P. Mullen, Esq., at Sidley Austin LLP, in New York, said. She noted that the Debtors have already returned the keys to the Property to the Landlord. Since the Petition Date, the Debtors have continued to pay rent while they evaluated their options with respect to the Property, including attempts to find a subtenant on acceptable terms, Ms. Mullen said. She added that the Debtors are no longer using, and do not anticipate any future use for, the Property. 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 HOLDINGS: Examiner Wins OK for Davies Ward as Tax Counsel ---------------------------------------------------------------- Susheel Kirpalani, Esq., the bankruptcy court-appointed Chapter 11 examiner for Dynegy Holdings LLC and its affiliates, sought and obtained Bankruptcy Court to retain Davies Ward Phillips & Vineberg LLP as special tax counsel, nunc pro tunc to February 11, 2012. As special tax counsel, Davies Ward will help the Examiner analyze the tax effects of past transactions by the Debtors, evaluate transactional and other documentation, conduct interviews, participate in the Bankruptcy Court proceedings, and render other legal services relating to the tax matters as Davies Ward may ask in connection with the case. The Examiner proposes to retain Davies Ward on its usual terms and conditions, with one exception. If retention of Davies Ward is approved by the Court, and without prejudice to Davies Ward's existing or future engagements, Davies Ward will provide a discount of 10% on the rates of professionals and paraprofessionals who incur time on the engagement. The Chapter 11 Examiner expects to retain these Davies Ward professionals and pay them according to their hourly rate: Peter A. Glicklich, Esq. $895 Abraham Leitner, Esq. $730 Megan J. Grandinetti, Esq. $405 Davies Ward will also be reimbursed for all actual out-of-pocket expenses it incurs, like photocopying services, printing, delivery charges, filing fees, postage, travel expenses, computer research time, and other disbursements. Peter A. Glicklich, Esq., a partner at Davies Ward, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. 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 POINT: Galpin Files Schedules of Assets & Liabilities ----------------------------------------------------------- Arthur Critchell Galpin filed with the Bankruptcy Court for the District of Oregon its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $3,923,068 B. Personal Property $31,774,609 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $3,852,597 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $47,846,905 ----------- ----------- TOTAL $35,697,678 $51,699,502 About Eagle Point Developments Eagle Point, in Medford, Oregon, developed the Eagle Point Golf Course, which was built in 1996. Eagle Point filed for Chapter 11 bankruptcy (Bankr. D. Ore. Case No. 12-60353) on Feb. 1, 2012. Judge Thomas M. Renn oversees the case, taking over from Judge Frank R. Alley III. Sussman Shank LLP serves as bankruptcy attorneys. The petition was signed by Arthur Critchell Galpin, managing member. Eagle Point is seeking joint administration of its case with Mr. Galpin's personal bankruptcy case. EASTMAN KODAK: Court Approves Lazard as Investment Banker --------------------------------------------------------- Eastman Kodak Co. obtained Court approval to employ Lazard Freres & Co. LLC as its investment banker. The Debtors and Lazard entered into an amended engagement letter, dated February 24, 2012, to among other things, revise Lazard's compensation. Under the Feb. 24 engagement letter, Lazard will be paid a $250,000 monthly fee, a $12.5 million restructuring fee, and separate fees in connection with the consummation of a sale transaction of the company's intellectual property portfolio or the consummation of the sale of the company's assets other than its IP Portfolio. Lazard will provide investment banking services as the firm and the Debtors deem appropriate and feasible in order to advise the Debtors and their affiliates in the course of the Chapter 11 cases, including, but not limited to: (a) reviewing and analyzing the Company's business and financial condition, as well as its business plan and financial projections; (b) assisting the Company in evaluating potential strategic and capital structure alternatives, including one or more Transactions; (c) assisting the Company in evaluating the potential use of any Transaction proceeds; (d) attending meetings of the Board of Directors of Kodak with respect to matters on which Lazard has been engaged to advise under the Engagement Letter dated September 12, 2011; (e) assisting the Company in any potential IP Sale Transaction, including identifying and interacting with potential Buyers, marketing the Portfolio to potential Buyers, advising the Company in connection with any subsequent negotiations and aiding in the consummation of any IP Sale Transaction; (f) assisting the Company in evaluating and consummating any potential Sale Transactions; (g) advising and assisting the Company in evaluating any potential Financing transaction by the Company, and, subject to Lazard's agreement so to act and, if requested by Lazard, to execution of customary agreements, on behalf of the Company, contacting potential sources of capital as the Company may designate and assisting the Company in implementing that Financing; and (h) rendering financial advice to the Company in connection with any Restructuring, including: (i) assisting in the determination of a range of values for the Company on a going concern basis; (ii) evaluating the Company's potential debt capacity in light of its projected cash flows and assisting in the determination of a capital structure for the Company; (iii) advising the Company on the timing, nature, and terms of new securities, other consideration or other inducements to be offered pursuant to any Restructuring; (iv) advising the Company on tactics and strategies for negotiating with the Stakeholders; (v) participating in meetings and negotiations with the Stakeholders, rating agencies and other appropriate parties; (vi) assisting the Company in preparing documentation within Lazard's area of expertise that is required in connection with any Restructuring; and (vii) providing testimony, as necessary, with respect to matters on which Lazard has been engaged to advise under the Engagement Letter in any proceeding before the Court. In the original proposal, the Debtors said Lazard will be paid these fees for its services: -- A $250,000 monthly fee payable until the completion of a Restructuring or the termination of Lazard's engagement. All Monthly Fees paid following the 12th month of Lazard's engagement will be credited against any fees paid to Lazard if the Company consummates a sale of its intellectual property portfolio or a sale transaction incorporating all or a majority of the Debtors' assets or all or a majority or controlling interest in the equity securities of Eastman Kodak Company; provided, that that credit will only apply to the extent that those fees are approved in their entirety by the Court. -- Separate fees if the Company consummates an IP Sale Transaction or a Sale Transaction, or if the Company consummates any Sale Transaction not covered by the sale of all or substantially all of the Debtors' assets. One half of any Minority Sale Transaction Fee paid will be credited against any Restructuring Fee or Sale Transaction Fee subsequently payable. -- A fee equal to 20% of any break-up, termination, topping or similar fee or payment paid to the Debtors related to an IP Sale Transaction, a Sale Transaction Lazard or a Minority Sale Transaction. -- A fee if the Company consummates any Financing. One-half of any Financing Fees paid will be credited against any Restructuring Fee or Sale Transaction Fee subsequently payable. -- A $12.5 million fee if the Company consummates a Restructuring, which fee is payable to Lazard upon consummation of the Restructuring. Lazard will be periodically reimbursed for all of its reasonable expenses provided that those expenses will not exceed $100,000 in the aggregate without the Company's consent. The Debtors and Lazard have agreed that the terms of an indemnification letter, dated October 24, 2006, will remain in full force and effect and apply to Lazard's engagement under the Sept. 12, 2011 Engagement Letter. David Descoteaux, a managing director of Lazard, assures the Court that his firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b), and holds no interest adverse to the Debtors or their estates. Lazard has informed the Debtors that it is owed approximately $170,000 associated with services performed and expenses incurred prior to the Petition Date. Lazard has waived any and all entitlement to make a prepetition claim against the Debtors with respect to any those fees and expense reimbursement. Accordingly, Mr. Descoteaux says, Lazard will not be a "creditor" of the Debtors within the meaning of Section 101(10). Mr. Descoteaux also discloses that, prior to the Petition Date, Lazard was paid $1,263,333 of Monthly Fees for prepetition services, and received $66,244 for the reimbursement of expenses, in accordance with the Engagement Letter and the Prior Engagement Letter. 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 Debtors. 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. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. 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: Wins Nod for Linklaters as Foreign Counsel --------------------------------------------------------- Eastman Kodak Co. obtained a U.S. Bankruptcy Court order approving the hiring of Linklaters LLP as special foreign counsel. Richard Hitchcock, a barrister and a self-employed member of the Bar of England and Wales, filed a declaration disclosing that he "know[s] of no conflict of interest" that would preclude his instruction by the firm to represent Eastman Kodak in the event necessary to defend the company, participate in a U.S. proceeding or assert its rights under U.K. law. Mr. Hitchcock also filed with the bankruptcy a conflicts check list, a copy of which is available without charge at: http://bankrupt.com/misc/Kodak_LinklatersCheckList.pdf Rebecca Jarvis, Esq., a partner at Linklaters, also filed a declaration in support of the firm's employment, disclosing that the firm received a total of $868,833 in retainer funds, and that the remaining amount of the retainer is $212,822 as of January 19, 2012. As foreign counsel, Linklaters will: (a) advise the Debtors and assist general bankruptcy counsel with regard to the Debtors' foreign branches and non-U.S. subsidiaries, including without limitation, subsidiaries in Europe, the Middle East, Asia and Latin America; (b) advise the Debtors and assist general bankruptcy counsel with regard to cross-border issues implicating laws of foreign jurisdictions, including local laws applicable to the Debtors' foreign branches and non-U.S. subsidiaries, including without limitation those throughout Europe, the Middle East, Asia and Latin America; (c) advise the Debtors and assist general bankruptcy counsel with regard to issues arising with the foreign branches and non-U.S. subsidiaries as a consequence of the Debtors' Chapter 11 cases; (d) advise the Debtors and assist general bankruptcy counsel with respect to the consideration of the positions of the foreign branches and non-U.S. subsidiaries and any interaction and influence on the Debtors' Chapter 11 cases, including without limitation local laws throughout Europe, the Middle East, Asia and Latin America applicable in the context of insolvency, bankruptcy, restructuring, directors' duties, corporate laws and general commercial and finance issues arising in respect of operation of the global business; (e) advise the Debtors and assist general bankruptcy counsel with respect to English law pension issues; (f) advise the Debtors and assist general bankruptcy counsel with respect to liquidity and financing issues affecting the foreign branches and non-U.S. subsidiaries; (g) advise the Debtors and assist general bankruptcy counsel with respect to asset disposition issues and asset maintenance and enhancement issues outside of the U.S.; (h) advise the Debtors and assist general bankruptcy counsel in formulating and drafting any disclosure statement accompanying any plan of reorganization with respect to foreign law issues and the Debtors' foreign branches and non-U.S. subsidiaries; (i) organize and coordinate the matters in conjunction with Linklaters' teams throughout Europe, the Middle East and Asia and local counsel where Linklaters does not have the relevant local foreign law expertise or geographical coverage; (j) attend meetings with third parties and participate in negotiations; (k) appear before the Bankruptcy Court, any district or appellate courts, and the U.S. Trustee; (l) perform the full range of services; and (m) provide other services as the Debtors may request provided that those services do not rise to the level of "conducting the case" and are not duplicative of the services provided by general bankruptcy counsel. For timekeepers in the London office, the applicable hourly rates in the Chapter 11 proceedings, subject to periodic adjustments to reflect economic and other conditions, plus applicable Value Added Tax, if any, are: Partners GBP670 to GBP775 Counsels GBP600 Managing Associates GBP510 to GBP570 Associates GBP300 to GBP480 Trainee Solicitors GBP200 to GBP290 Paralegals GBP120 to GBP200 Linklaters will also be reimbursed for any necessary out-of-pocket expenses. Rebecca L. Jarvis, Esq. -- rebecca.jarvis@linklaters.com -- a partner at Linklaters LLP, assures the Court that her firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors or their estates with respect to the matters on which Linklaters is to be employed. Ms. Jarvis discloses that Linklaters received a $350,000 retainer as security for its fees and disbursements. A portion of the Retainer has been applied to outstanding balances existing as of the Petition Date. The Retainer has not been fully exhausted since received and Linklaters intends to apply the Retainer to any outstanding amounts related to the period prior to the Petition Date that were not processed through Linklaters' billing system as of the Petition Date, Ms. Jarvis tells the Court. 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 Debtors. 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. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. 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: To Close Graphic Communications Unit in Bulgaria --------------------------------------------------------------- Elizabeth Konstantinova at Bloomberg News, citing Capital Daily newspaper, reports that Eastman Kodak Co. will close its Graphic Communications unit in Bulgaria on April 1. According to Bloomberg, the newspaper related that the Sofia, Bulgaria-based factory makes digital and flexographic plates most of which were exported and employs some 180 people. 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 Debtors. 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. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. 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: Wells Fargo Now Co-Collateral Agent Under DIP Loan ----------------------------------------------------------------- Wells Fargo Bank, N.A., has become a party to Eastman Kodak Co.'s Credit Agreement as co-collateral agent, according to Kodak's filings with the the U.S. Securities and Exchange Commission. Kodak has filed a copy of its proposed amendment to the DIP credit Agreement dated January 20, 2012. Citicorp North America, Inc., serves as the other co-collateral agent. The effectiveness of the proposed amendment is subject to certain conditions including the payment of fees and the receipt of consents from certain lenders, Kodak said. There is no assurance that the conditions precedent for the effectiveness of the proposed amendment will be met, the company said in a regulatory filing dated February 22, 2012. A copy of the proposed amendment is available without charge at: http://is.gd/ijcFkF As reported in the Feb. 24, 2012 edition of the Troubled Company Reporter, Eastman Kodak obtained final approval from Judge Allan Gropper of the U.S. Bankruptcy Court in Manhattan to continue borrowing on its $950 million DIP loan from Citigroup Inc. The company previously received interim approval to borrow $650 million. The bankruptcy loan allows Eastman Kodak to operate normally during bankruptcy while it tries to sell its digital- imaging patents. The financing consists of (a) up to $700 million under a senior secured non-amortizing term loan facility, with $450 million available at the effective date and an additional $250 million that will be available after entry of the final order, and (b) up to $250 million under a senior secured non-amortized asset-based revolving credit facility; provided that $25 million will be available to fund only non-Debtor affiliate Kodak Canada. The revolving credit facility will include a sub-facility for letters of credit in the aggregate amount of $200 million. Citicorp North America serves as both syndication and administrative agent for the lenders, and interest will be paid at: (i) the applicable margin plus the base rate or (ii) the applicable margin plus the current LIBO rate, provided that the LIBO rate will be not less than 1.50%. 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 Debtors. 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. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. 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). EATON MOERY: Wants to Borrow Money from Insider Bryan Moery ----------------------------------------------------------- Eaton Moery Environmental Services, Inc., by and through its counsel, James F. Dowden, PA, asks the U.S. Bankruptcy Court for the Eastern District of Arkansas for authorization to borrow money and pledge assets. The Debtor relates that a Disclosure Statement has been approved, and a First Amended Plan has been filed. The filing of a Second Amended Plan is anticipated shortly after AP 11-1212 can be resolved by final order and the instant motion is granted. The Debtor explains that it has fallen significantly behind in remittance of payroll taxes, and it cannot borrow money from a conventional lender. Bryan Moery has agreed to loan the company $250,000 through a Note payable at 5.5% interest per annum with a balloon obligation coming due one year from the date of the loan. The Note would be secured by a lien on all equipment owned by the Debtor. Mr. Moery is an officer, director, and shareholder of the Debtor and a guarantor of significant debt, including but not limited to, Bank of the Ozarks' bond issue and a debt to First National Bank of Wynne. He is also a creditor in the case, but has agreed to waive his claim, with the exception of his right to file a claim for a recent advance to pay fees to counsel for Bank of the Ozarks in the amount of $47,000. The Debtor explains that if the instant motion is approved, it commits to immediately pay the $250,000 on the tax obligations. About Eaton Moery Environmental Services Wynne, Arkansas-based Eaton Moery Environmental Services, Inc., dba Delta Environmental Services, Inc., filed for Chapter 11 bankruptcy protection (Bankr. E.D. Ark. Case No. 10-14713) on June 30, 2010. James F. Dowden, P.A., serves as the Debtor's bankruptcy counsel. The Company estimated assets at $10 million to $50 million and liabilities at $1 million to $10 million. No trustee, examiner, or committee has been appointed in the Debtor's Chapter 11 cases. EATON MOERY: U.S. Trustee Wants Ch. 11 Case Dismissed or Converted ------------------------------------------------------------------ The U.S. Trustee for Region 13 asks the U.S. Bankruptcy Court for the Eastern District of Arkansas to dismiss or convert the Chapter 11 case of Eaton Moery Environmental Services, Inc., to one under Chapter 7 of the Bankruptcy Code. According to the U.S. Trustee, there appears to be a substantial or continuing loss to the estate and unreasonable likelihood of rehabilitation because the Debtor owes postpetition $620,299 in combined taxes and trade accounts payable as of Dec. 31, 2011. The Debtor is also obligated to pay to the U.S. Trustee a minimum of $325 for each quarterly period, including any fraction thereof, until a Plan is confirmed, or the case is converted or dismissed, whichever occurs first. About Eaton Moery Environmental Services Wynne, Arkansas-based Eaton Moery Environmental Services, Inc., dba Delta Environmental Services, Inc., filed for Chapter 11 bankruptcy protection (Bankr. E.D. Ark. Case No. 10-14713) on June 30, 2010. James F. Dowden, P.A., serves as the Debtor's bankruptcy counsel. The Company estimated assets at $10 million to $50 million and liabilities at $1 million to $10 million. No trustee, examiner, or committee has been appointed in the Debtor's Chapter 11 cases. EATON MOERY: Gets Court Nod to Renew First National Bank Note ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Arkansas authorized Eaton Moery Environmental Services, Inc., to renew the note to First National Bank of Wynne relating to a bonding requirement in favor of the State of Arkansas which is required to be in place for the Debtor to continue conducting its waste disposal business. As reported in the Troubled Company Reporter on Feb. 17, 2012, the Debtor related that the bank has requested a Court order authorizing Debtor to renew the note. The Debtor's outstanding secured indebtedness to First National Bank of Wynne is approximately $225,000. The debt is represented by a promissory note in the name of the Debtor and is secured by a Certificate of Deposit in the approximate sum of $100,000 owned by Debtor and bank stock owned by C.B. Moery, Jr., a principal of the Debtor. About Eaton Moery Environmental Services Wynne, Arkansas-based Eaton Moery Environmental Services, Inc., dba Delta Environmental Services, Inc., filed for Chapter 11 bankruptcy protection (Bankr. E.D. Ark. Case No. 10-14713) on June 30, 2010. James F. Dowden, P.A., serves as the Debtor's bankruptcy counsel. The Company estimated assets at $10 million to $50 million and liabilities at $1 million to $10 million. No trustee, examiner, or committee has been appointed in the Debtor's Chapter 11 cases. EDISON INTERNATIONAL: Moody's Issues Summary Credit Opinion ----------------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Edison International and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Edison International and its affiliates. Moody's current ratings on Edison International and its affiliates are: Senior Unsecured domestic currency ratings of Baa2 Senior Unsecured Bank Credit Facility domestic currency ratings of Baa2 LT Issuer Rating domestic currency ratings of Baa2 Senior Unsec. Shelf domestic currency ratings of (P)Baa2 Southern California Edison Company First Mortgage Bonds domestic currency ratings of A1 Senior Unsecured domestic currency ratings of A3 Senior Unsecured Bank Credit Facility domestic currency ratings of A3 LT Issuer Rating ratings of A3 Pref. Stock ratings of Baa2 Pref. Stock domestic currency ratings of Baa2 Preference stock domestic currency ratings of Baa2 Senior Secured Shelf domestic currency ratings of (P)A1 Senior Unsec. Shelf domestic currency ratings of (P)A3 Subordinate Shelf domestic currency ratings of (P)Baa1 Pref. Shelf domestic currency ratings of (P)Baa2 Preferred shelf -- PS2 domestic currency ratings of (P)Baa2 Preference Shelf domestic currency ratings of (P)Baa2 Commercial Paper domestic currency ratings of P-2 Backed First Mortgage Bonds domestic currency ratings of A1 Underlying First Mortgage Bonds domestic currency ratings of A1 SCE Trust I BACKED Pref. Shelf domestic currency ratings of (P)Baa2 SCE Trust II BACKED Pref. Shelf domestic currency ratings of (P)Baa2 SCE Trust III BACKED Pref. Shelf domestic currency ratings of (P)Baa2 Edison Mission Energy LT Corporate Family Ratings domestic currency ratings of B3 Senior Secured Bank Credit Facility domestic currency ratings of B3 Senior Unsecured domestic currency ratings of Caa1 Speculative Grade Liquidity Rating ratings of SGL-4 LGD Senior Secured Bank Credit Facility domestic currency ratings of 49 - LGD3 LGD Senior Unsecured domestic currency ratings of 64 - LGD4 Probability of Default ratings of B3 Midwest Generation, LLC Senior Secured Bank Credit Facility domestic currency ratings of Ba3 LGD Senior Secured Bank Credit Facility domestic currency ratings of 03 - LGD1 BACKED Senior Secured domestic currency ratings of Ba3 LGD BACKED Senior Secured domestic currency ratings of 13 - LGD2 Ratings Rationale EIX's Baa2 senior unsecured rating considers the relatively stable financial performance expected at SCE, the principal source of cash flow and earnings; a fairly conservative dividend payout ratio, balanced against the growing capital investment program; and the challenging prospects for EME, its unregulated wholesale power generation subsidiary. Rating Outlook The stable outlook for EIX is largely based upon the stability of its principal subsidiary, SCE, the parent's moderate dividend policy, balanced by the capital requirements of the organization. The stable outlook factors in an expectation that while EIX will provide EME with appropriate resources to address the financial challenges facing EME, such resources will not include material, direct financial support of this subsidiary. What Could Change the Rating - Up As a holding company that is primarily dependent upon SCE for a substantial portion of its cash flow in the form of dividends, any change in SCE's rating is likely but not certain to result in a similar rating action at EIX. In light of the size of SCE's capital expenditure program and the company's ownership of EME, a substantially weaker subsidiary, limited prospects exist for the rating to be upgraded over the near term. Longer term, however, should EIX's ratio of consolidated cash flow to total debt exceed 20% and the ratio of cash flow to interest expense approaches 5x on a sustainable basis, the rating could be upgraded. What Could Change the Rating - Down EIX's rating could be negatively impacted if the company substantially increases its payments to shareholders or provides material direct credit support for its weaker non-regulated businesses. Also, the failure to finance its substantial capital investment in a conservative manner, which may at some future point include the issuance of common equity, could pressure ratings. Moreover, a negative change in the rating at SCE could result in a negative rating action at EIX, particularly, if the ratio of consolidated cash flow to total debt declined to below 18% and the ratio of cash flow to interest expense fell to 3.5x or less for an extended period. The methodologies used in these ratings were Unregulated Utilities and Power Companies published in August 2009, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. EDUCATION MANAGEMENT: S&P Revises Outlook on 'BB-' CCR to Negative ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its rating outlook on Pittsburgh, Pa.-based for-profit post-secondary school operator Education Management LLC to negative from stable. "At the same time, we affirmed our 'BB-' corporate credit rating on the company, along with all related issue-level ratings on the company's debt," S&P said. "The outlook revision reflects our expectation that a more difficult regulatory structure will continue to cause negative enrollment trends over the near term," said Standard & Poor's credit analyst Chris Valentine. "Given the fixed costs of the business, we expect enrollment declines will lead to weaker credit metrics and lower cash flow generation." "The 'BB-' rating reflects Education Management's dependence on federal student loan programs and is constrained by the Department of Education's (DoE) regulations on gainful employment and federal student loan eligibility. We expect the company's revenue and EBITDA trends to remain under pressure in 2012 and beyond as the company implements further initiatives to reduce student loan default rates and revises its business practices to comply with new regulations," S&P said. "We view Education Management's business risk profile as 'weak' because the regulatory risk outweighs its good market position and business fundamentals. We continue to assess the company's financial risk profile as 'aggressive,' as a result of the high debt balances it incurred in its 2006 leveraged buyout. For 2012, under our base case scenario, we expect leverage to be in the mid- 4x area, broadly in line with the financial risk indicative ratio range of 4x-5x that we associate with an aggressive profile under our criteria," S&P said. "Education Management is one of the leading for-profit post- secondary education providers, offering both traditional and online programs in career-oriented disciplines. The company directly or indirectly derived 90.3% of its fiscal 2011 net revenue from federal government-sponsored financial aid (compared with 88.5% in fiscal 2010) that its students receive. We consider this high exposure to federal student lending as a long-term risk for the company, because any legislative or regulatory action that results in a substantial reduction in funding would significantly hurt its profits," S&P said. "Prior to the implementation of regulatory changes last summer, the company experienced rapid growth in enrollment over the past several years and outperformed many of its peers during a time of more stringent regulation. Historically, annual double-digit gains in same-school enrollment, brisk growth in online programs, and average annual tuition increases have led to healthy EBITDA growth. In recent quarters, changes in the regulation have reversed this trend, resulting in single-digit declines in revenue and enrollments, and even greater EBITDA declines. We expect enrollment declines to persist in fiscal 2012 as a result of a weak economy, tough regulation, and negative publicity surrounding the for-profit education sector," S&P said. "Under our base-case scenario, we expect a fiscal 2012 revenue decline in the low-single digits and a roughly 20% EBITDA decline. The above incorporates our assumption that enrollment will decrease at a high-single-digit rate in 2012. Longer term, if declines persist, they could reduce capacity utilization and create pressure to discontinue programs or even shut down campuses. We expect the EBITDA margin to contract by more than 200 basis points in fiscal 2012 as the company continues to invest more in staffing and centralization of student services. We believe that operating trends could eventually stabilize over the longer term, potentially resulting in moderate revenue and EBITDA growth. Still, recent gainful employment rules could negatively impact enrollment trends by introducing additional quality metrics to measure schools," S&P said. EDWARD DEETS: Files Schedules of Assets and Liabilities ------------------------------------------------------- Edward Deets Holding Company Inc. filed with the Bankruptcy Court for the Middle District of Pennsylvania its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $2,825,000 B. Personal Property $1,226,852 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $5,670,000 E. Creditors Holding Unsecured Priority Claims $5,000 F. Creditors Holding Unsecured Non-priority Claims $350,000 ----------- ----------- TOTAL $2,825,000 $6,025,000 Mountain Top, Pa.-based Edward Deets Holding Company, Inc., filed for Chapter 11 bankruptcy (Bankr. M.D. Pa. Case No. 11-06869) on Oct. 6, 2011. The Debtor estimated assets of $10 million to $50 million and estimated debts of $1 million to $10 million. Hon. Robert N. Opel, II, presides over the case. The petition was signed by Edward Deets, president. EFD LTD: Chapter 11 Plan Confirmation Hearing Reset for April 9 --------------------------------------------------------------- The Hon. Craig A. Gargotta of the U.S. Bankruptcy Court for the Western District of Texas, according to the case docket, has rescheduled until April 9, 2012, at 9:00 a.m., the hearing to consider the confirmation of EFD, LTD. doing business as Blanco San Miguel's proposed Plan of Reorganization. The hearing was previously set for Jan. 9, 2012. On Feb. 14, 2012, Burnet Central Appraisal District, objected to the confirmation of the Debtor's Plan, dated Aug. 12, 2011. CAD's claim is included in the class of claims described as Priority Tax Claims. The claim arises from property taxes for the tax years 2010-2011 due on the Debtor's property described as real property located in the tax jurisdiction. CAD's secured claim is impaired under the Plan, and it has not accepted the plan within the time fixed to do so. According to CAD, the Plan provisions which deal with its secured claims, failed to provide fair and equitable treatment to the secured claim. About EFD, Ltd. Austin, Texas-based EFD, Ltd., dba Blanco San Miguel, fdba Blanco San Miguel, Ltd., filed for Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 11-10846) on April 5, 2011. Eric J. Taube, Esq., at Hohmann Taube & Summers, LLP, in Austin, Texas, serves as the Debtor's bankruptcy counsel. The Company disclosed $128,207,835 in assets and $30,395,205 in liabilities as of the Chapter 11 filing. The U.S. Trustee has not yet appointed an official committee of unsecured creditors. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. EMMIS COMMUNICATIONS: T. Stabosz Owns 5.3% of Class A Shares ------------------------------------------------------------ In a Schedule 13D filed with the U.S. Securities and Exchange Commission, Timothy John Stabosz disclosed that, as of March 1, 2012, he beneficially owns 1,790,150 shares of Class A common stock of Emmis Communications Corporation representing 5.3% of the shares outstanding. A copy of the filing is available at no charge at http://is.gd/0Gu0I8 About Emmis Communications Headquartered in Indianapolis, Indiana, Emmis Communications Corporation -- http://www.emmis.com/-- owns and operates 22 radio stations serving New York, Los Angeles, Chicago, St. Louis, Austin, Indianapolis, and Terre Haute, as well as national radio networks in Slovakia and Bulgaria. The company also publishes six regional and two specialty magazines. The Company reported a consolidated net loss of $11.54 million on $251.31 million of net revenues for the year ended Feb. 28, 2011, compared with a consolidated net loss of $118.49 million on $242.56 million of net revenues during the prior year. For the nine months ended Nov. 30, 2011, the Company reported net income attributable to common shareholders of $97.72 million on $185.08 million of net revenues, compared with a net loss attributable to common shareholders of $7.92 million on $193.24 million of net revenues for the same period during the prior year. The Company's balance sheet at Nov. 30, 2011, showed $365.70 million in total assets, $344.92 million in total liabilities,$56.38 million in series A cumulative convertible preferred stock and a $35.60 million total deficit. * * * In November 2010, Moody's Investors Service affirmed the 'Caa2' Corporate Family Rating and 'Caa3' Probability of Default rating for Emmis Communications Corporation, as well as its SGL-4 speculative grade liquidity rating. Operating performance improved with the economic recovery, but absent debt reduction with proceeds from an asset sale or equity infusion Emmis will likely breach its leverage covenant when the covenant suspension period ends for the quarter ending November 30, 2011, in Moody's opinion. Emmis' CFR and PDR incorporate expectations for a covenant breach in November 2011. Moody's considers the Company's capital structure unsustainable, and its operations in the cyclical advertising business magnify this challenge. Furthermore, Emmis relies on two markets, Los Angeles and New York, for approximately 50% of its revenue, although its ownership of stations in top markets including Chicago as well as NY and LA, support the rating. The negative outlook incorporates Moody's expectations that Emmis will not comply with its maximum leverage covenant when effective for the quarter ending Nov. 30, 2011. EMPIRE DISTRICT: Moody's Issues Summary Credit Opinion ------------------------------------------------------ Moody's Investors Service issued a summary credit opinion on Empire District Electric Company (The) and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Empire District Electric Company (The). Moody's current ratings on Empire District Electric Company (The) are: First Mortgage Bonds domestic currency ratings of A3 Senior Unsecured domestic currency ratings of Baa2 LT Issuer Rating ratings of Baa2 Senior Secured Shelf domestic currency ratings of (P)A3 Senior Unsec. Shelf domestic currency ratings of (P)Baa2 Subordinate Shelf domestic currency ratings of (P)Baa3 Junior Subord. Shelf domestic currency ratings of (P)Baa3 Preference Shelf domestic currency ratings of (P)Ba1 Commercial Paper domestic currency ratings of P-2 Ratings Rationale Moody's focus in recent years has been on the company's sizable capital spending program and trending weakness in credit metrics observed during this time. However, in May 2010 Moody's affirmed all of Empire's existing ratings and changed Moody's outlook to stable, from negative. This action was reflective of Moody's view that Empire ultimately took a balanced approach to building rate base and planning for its future capacity needs (by supplementing new debt with common equity issuance), as well as Moody's expectation that recent balance sheet stress would begin to alleviate as the capex program neared an end in 2010. Moody's believes Empire's credit profile is now well positioned for the Baa2 rating (senior unsecured). Although a relatively small enterprise, the company's core electric utility business has historically generated stable cash flows and Empire's management has targeted a conservative capital structure, albeit with a somewhat aggressive dividend policy. As a regulated utility, Moody's also considers the political and regulatory environment in Missouri which has at times been challenging but has recently been supportive of credit quality. Empire's rating is also guided by Moody's "Regulated Electric and Gas Utility Methodology" published in August 2009. Empire's "mapped" rating under the grid is Baa3 which is on a historical basis. Rating Outlook The rating outlook is stable. Empire's progress on the open Iatan II rate case could impact the company's strength at the current rating level. What Could Change the Rating - Up Moody's would consider the following ranges as consistent with a strongly positioned Baa utility: sustainable increases in cash flow coverage measures including CFO (pre w/c) to adjusted debt above 18%; CFO (pre w/c) + interest / interest cover above 4.0x; and CFO (pre w/c) less dividends to adjusted debt above 13%. What Could Change the Rating - Down Empire is well positioned at this rating level and a near-term negative rating action is unlikely. However, unexpected adverse regulatory or operational developments could negatively pressure the rating. In terms of debt metrics, a decline in cash flow coverage measures including CFO (pre w/c) to debt below 15%; CFO (pre w/c) + interest / interest cover below 3.5x; and CFO (pre w/c) less dividends to adjusted debt below 10% for an extended period would all signal weakness at the current rating level. The principal methodology used in this rating was Regulated Electric and Gas Utilities published in August 2009. EMPIRE RESORTS: To Issue 3-Mil. Shares Under 2008 Incentive Plan ---------------------------------------------------------------- Viking Systems, 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 Amended and Restated 2008 Equity Incentive Plan. On Nov. 10, 2011, the Company's board of directors approved 3,000,000 additional shares to be issued under the Company's Amended and Restated 2008 Equity Incentive Plan. The proposed maximum aggregate offering price is $630,000. A copy of the prospectus is available for free at http://is.gd/iOJ9cc About Viking Systems Based in Westborough, Massachusetts, Viking Systems, Inc. (OTCBB: VKNG.OB) -- http://www.vikingsystems.com/-- is a developer, manufacturer and marketer of visualization solutions for complex minimally invasive surgery. The Company partners with medical device companies and healthcare facilities to provide surgeons with proprietary visualization systems enabling minimally invasive surgical procedures, which reduce patient trauma and recovery time. The Company reported a net loss applicable to common shareholders of $2.92 million in 2011 and a net loss applicable to common shareholders of $2.43 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $5.44 million in total assets, $2.67 million in total liabilities and $2.76 million in total stockholders' equity. EMPIRE RESORTS: Presents Concord Resort Redevelopment Master Plan ----------------------------------------------------------------- Entertainment Properties Trust and Empire Resorts, Inc., presented an overview of the master plan for redevelopment of the former Concord Resort property in Sullivan County, New York yesterday. The presentation before the Town of Thompson Board was held at the Eugene Nesin Theater in Monticello and open to the public in order to continue a dialogue with the community. A comprehensive transformative master development plan for 1500 acres at the site of the former Concord Resort was presented by the industry-leading architect and master planning firm Hart Howerton. Reminiscent of the region's rich history, the new destination resort is expected to include a casino, hotel and harness racetrack, specialty lodging, a championship golf experience, coupled with retail, dining, entertainment and recreational uses, along with new residential communities. The planned family and entertainment destination is expected to create over one thousand jobs and includes hundreds of millions of dollars of investment in the county. The proposed master plan represents a new way of thinking about resort development in the Catskills. Unlike one dimensional plans of past, it envisions a multi-faceted destination resort, which will become the center of tourism and investment in the region. A place to find adventure or relaxation, it will offer family- centered attractions and amenities surrounded by the natural beauty of the Catskills. David Brain, CEO Entertainment Properties Trust commented, "This was an important opportunity for us to connect with the community and articulate our vision. We are excited to continue down the path toward development of this new and exciting family and entertainment destination. We are committed to bringing our plans to reality and will certainly maintain a dialogue with the community as we do." Emanuel Pearlman, Chairman of the Board of Empire Resorts stated, "We were pleased to join Entertainment Properties Trust yesterday to present the vision for the Concord Resort to the Town of Thompson and the people of Sullivan County. Our proposed casino, harness racetrack and hotel is the anchor of this totally new vision for the Catskills. We have assembled a great team that is working with a sense of urgency. We look forward to reporting on our progress to the Town of Thompson Board in the near future. Entertainment Properties Trust and Empire Resorts also announced a new informational project Web site, www.NewCatskillsDestination.com . Visitors to the site can learn more and sign up to receive updates and information on the project as it moves forward. About Empire Resorts Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY) -- http://www.empireresorts.com/-- owns and operates Monticello Casino & Raceway, a video gaming machine and harness racing track and casino located in Monticello, New York, 90 miles northwest of New York City. Friedman LLP, after auditing the Company's financial statements for the year ended Dec. 31, 2010, expressed substantial doubt about the Company's ability to continue as a going concern. Friedman noted that the Company's ability to continue as a going concern depends on its ability to satisfy its indebtedness when due. In addition, the Company has continuing net losses and negative cash flows from operating activities. Empire Resorts reported a net loss of $17.57 million on $68.54 million of net revenues for the year ended Dec. 31, 2010, compared with a net loss of $10.57 million on $67.63 million of net revenues during the prior year. The Company reported net income of $958,000 on $53.53 million of net revenues for the nine months ended Sept. 30, 2011. The Company's balance sheet at Sept. 30, 2011, showed $50.53 million in total assets, $24.86 million in total liabilities, and $25.66 million in total stockholders' equity. EMPIRE RESORTS: Louis Cappelli Discloses 5.5% Equity Stake ---------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Louis R. Cappelli disclosed that, as of March 7, 2012, he beneficially owns 1,643,164 shares of common stock of Empire Resorts, Inc., representing 5.50% of the shares outstanding. These shares of common stock of Empire are owned directly by LRC Acquisition LLC. The percentage is based upon a total of 29,864,100 shares of common stock outstanding as of Feb. 29, 2012, as reported by Bloomberg. As previously reported by the TCR on March 8, 2012, Mr. Cappelli reported beneficial ownership of 1,665,704 common shares or 5.58% equity stake. A copy of the amended filing is available for free at: http://is.gd/oYTBHz About Empire Resorts Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY) -- http://www.empireresorts.com/-- owns and operates Monticello Casino & Raceway, a video gaming machine and harness racing track and casino located in Monticello, New York, 90 miles northwest of New York City. Friedman LLP, after auditing the Company's financial statements for the year ended Dec. 31, 2010, expressed substantial doubt about the Company's ability to continue as a going concern. Friedman noted that the Company's ability to continue as a going concern depends on its ability to satisfy its indebtedness when due. In addition, the Company has continuing net losses and negative cash flows from operating activities. Empire Resorts reported a net loss of $17.57 million on $68.54 million of net revenues for the year ended Dec. 31, 2010, compared with a net loss of $10.57 million on $67.63 million of net revenues during the prior year. The Company reported net income of $958,000 on $53.53 million of net revenues for the nine months ended Sept. 30, 2011. The Company's balance sheet at Sept. 30, 2011, showed $50.53 million in total assets, $24.86 million in total liabilities, and $25.66 million in total stockholders' equity. EV ENERGY: S&P Keeps 'B-' Rating on $500-Mil. Sr. Unsecured Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services said that Houston-based EV Energy Partners (EVEP) has increased the amount of its add on to its existing senior unsecured notes due 2019 to $200 million. This brings the new total on the notes to $500 million. "The 'B-' rating on these notes remains unchanged. The recovery rating remains '5', reflecting our expectation for modest (10% to 30%) recovery for lenders in the event of a payment default," S&P said. "Our recovery analysis incorporates EVEP's plan to use the proceeds to reduce its outstanding revolver balance," said Standard & Poor's credit analyst Marc Bromberg. "The ratings on EV Energy Partners (EVEP) reflect a reserve base that is levered to low natural gas prices, a reserve replacement strategy relying heavily on acquisitions, a high dividend payout to shareholders, and aggressive leverage. The ratings also reflect a decent hedge book over the next several years that should mitigate hydrocarbon pricing volatility, low geological risk associated with the company's high percentage of proved developed reserves, adequate liquidity, and a good cost structure," S&P said. Ratings List EV Energy Partners Corporate credit rating B/Stable/-- Rating Affirmed $500 mil sr unsecured notes due 2019 B- Recovery rating 5 EV ENERGY: S&P Keeps 'B-' Rating on $400-Mil. Sr. Unsecured Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services said that Houston-based EV Energy Partners (EVEP) is adding $100 million to its existing $300 million senior unsecured notes due 2019. This brings the new total on the notes to $400 million. "The existing 'B-' rating on these notes remains unchanged. The recovery rating remains unchanged at '5', reflecting our expectation for modest (10% to 30%) recovery for lenders in the event of a payment default," S&P said. "Our recovery analysis incorporates EVEP's plan to use the proceeds to reduce its outstanding revolver balance," said Standard & Poor's credit analyst Marc Bromberg. "The ratings on EV Energy Partners (EVEP) reflect a reserve base that is levered to low natural gas prices, a reserve replacement strategy relying heavily on acquisitions, a high dividend payout to shareholders, and aggressive leverage. The ratings also reflect a decent hedge book over the next several years that should mitigate hydrocarbon pricing volatility, low geological risk associated with the company's high percentage of proved developed reserves, adequate liquidity, and a good cost structure," S&P said. Ratings List EV Energy Partners Corporate credit rating B/Stable/-- $400 mil sr unsecured notes due 2019 B- Recovery rating 5 EVERGREEN SOLAR: Wants to Abandon Devens Facility ------------------------------------------------- Peg Brickley, writing for Dow Jones Newswires, reports that Evergreen Solar Inc. has asked the Bankruptcy Court for permission to abandon its plant in Devens, Massachusetts, after it failed to find a buyer for the facility. Dow Jones says Evergreen is seeking to walk away from the property before a $543,000 property tax bill comes due. According to Dow Jones, Evergreen said in papers filed in Bankruptcy Court that it has a deal with its landlord, Massachusetts Development Finance Agency, to get out of the ground lease for the facility. The Deven plant was shut down last year and 800 jobs were cut as Evergreen struggled to survive. Dow Jones also reports Judge Mary Walrath signed off last week on a stipulation under which Evergreen's secured creditors who expect to be out more than $100 million at the end of the bankruptcy proceedings agreed to allow general unsecured creditors to get at least a penny on the dollar recovery out of the Chapter 11 case. About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- developed, manufactured and marketed String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Hilco Industrial LLC serves as exclusive marketing and sales agent. Klehr Harrison Harvey Branzburg serves as special conflicts counsel. Zolfo Cooper LLC is the financial advisor. UBS Securities, LLC, serves as investment banker. Epiq Bankruptcy Solutions has been tapped as claims agent. An official committee of unsecured creditors has retained Pepper Hamilton and Kramer Levin Naftalis & Frankel as counsel. The Committee tapped Garden City Group as communications services agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. Evergreen agreed to undertake a marketing process and permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by supporting noteholders, ES Purchaser LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. Evergreen eventually sold its assets on a piecemeal basis in three auctions. Max Era Properties Ltd. from Hong Kong paid $6 million cash and $3.2 million in stock of China Private Equity Investment Holdings Ltd. for the company name, intellectual property, and wafer-making assets. Kimball Holdings LLC paid $3.8 million for solar panel inventory while secured lenders exchanged $21.5 million of their $165 million claim for a $171 million claim against Lehman Brothers Holdings Inc. Max Era and Sovello AG bought equipment and machinery located at the Debtor's Devens, Massachusetts facility for $8.9 million. Evergreen Solar is at least the fourth solar company to seek court protection in 2011. Other solar firms that filed for Chapter 11 bankruptcy are start-up Spectrawatt Inc., which also filed in August, Solyndra Inc., which filed early in September, and Stirling Energy Systems Inc., which filed for Chapter 7 bankruptcy late in September. FIRST DATA: Moody's Rates $850-Mil. First Lien Notes at 'B1' ------------------------------------------------------------ Moody's Investors Service assigned a B1 rating to First Data Corporation's proposed $850 million Senior Secured First Lien Notes due 2019. All other ratings, including the B3 corporate family rating (CFR), and the stable outlook remain unchanged. While total debt will not change with the new $850 million of secured notes, First Data continues to improve its debt maturity profile with this issuance. The proceeds will be used to pay down a portion of the proposed extended term loan of $3.2 billion (extended to March 2017 from September 2014). Nonetheless, First Data will still have over $3.3 billion of its total debt of $24 billion due in September 2014, with another $1.5 billion maturing September 2015. Ratings Rationale The B3 CFR and stable outlook reflect Moody's expectation that First Data will generate mid-single digit percentage revenue and EBITDA growth during 2012, as the economy slowly recovers in the midst of still high unemployment rates, consumer debt levels, and weak housing markets. Although this represents solid growth in the context of uncertain economic conditions, the resulting cash flow is expected to remain light in relation to the very large debt total. Moody's expects First Data will improve its credit metrics modestly (e.g., Debt to EBITDA of over 9 times), yet these metrics will remain within the range of those of other companies also rated at the B3 level. The principal methodology used in rating First Data was the Global 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. Based in Atlanta, Georgia, First Data Corporation, with about $11 billion of projected annual revenues, provides commerce and payment solutions for financial institutions, merchants, and other organizations worldwide. FRANCISCAN COMMUNITIES: March 30 Set as General Claims Bar Date --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Ohio has established March 30, 2012 at 4:00 p.m. (Eastern Time), as the deadline for any individual or entity to file proofs of claim against Franciscan Communities St. Mary of the Woods, Inc. Proofs of claim must be filed either by: i) mailing to: St. Mary of the Woods c/o GCG P.O. Box 9853 Dublin, OH 43017-5753 or ii) delivering the original proof of claim by hand or overnight courier to: St. Mary of the Woods c/o GCG 5151 Blazer Parkway, Suite A Dublin, OH 43017 About Franciscan Communities Illinois-based Franciscan Communities St. Mary of the Woods, Inc., owns and operates a senior living community in Avon, Ohio. The not-for-profit community is owned and managed by the Franciscan Sisters of Chicago Service Corp. Franciscan Communities St. Mary of the Woods filed for Chapter 11 bankruptcy (Bankr. N.D. Ohio Case No. 11-19865) on Nov. 21, 2011, after it failed to negotiate an out-of-court workout with holders of tax-free bonds. Judge Jessica E. Price Smith oversees the case. The Debtor disclosed assets of $36 million and debt totaling $48 million as of the Chapter 11 filing. In its schedules, the Debtor disclosed $22,314,854 in assets and $49,555,487 in liabilities. The Debtor is represented by Heather Lennox, Esq., Carl E. Black, Esq., and Daniel M. Syphard, Esq., at Jones Day, as bankruptcy counsel. The Garden City Group, Inc., is the claims and noticing agent. The Debtor tapped Deloitte Financial Advisory Services LLP as restructuring advisor, and Houlihan Lokey Capital, Inc., as its investment banker. The U.S. Trustee appointed Beverly Laubert as patient care ombudsman. Franciscan Sisters of Chicago, the sole member of the Debtor, is providing $4.5 million in DIP loans. The DIP Lender is represented by George Mesires, Esq., and Daniel P. Strzalka, Esq., at Ungaretti & Harris LLP. The Bank of New York Mellon Trust Company, N.A., the bond trustee, is represented by Bruce H. White, Esq., and Clifton R. Jessup, Esq., at Greenberg Traurig LLP. Wells Fargo Bank, N.A., as Master Trustee, is represented by Daniel S. Bleck, Esq., at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., and John R. Weiss, Esq., at Duane Morris LLP. Sovereign Bank, provider of the Debtor's letter of credit facility, is also represented by John R. Weiss, Esq., at Duane Morris LLP. The Official Committee of Unsecured Creditors in the Chapter 11 cases of the Debtor is represented by McDonald Hopkins LLC as counsel. FRESNO PACIFIC: Moody's Withdraws 'Ba2' Rating on Revenue Bonds --------------------------------------------------------------- Moody's Investors Service has withdrawn the Ba2 rating on Fresno Pacific University's (CA) Revenue Bonds, Series 2000A which were issued through the California Educational Facilities Authority. The rating withdrawal follows the redemption of these bonds. At this time, Fresno Pacific University no longer maintains debt outstanding with a Moody's rating. Summary Rating Rationale Moody's has withdrawn the rating because the bonds have been redeemed. GELT PROPERTIES: Dunne Wright OK'd as Maryland Property Manager --------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Pennsylvania authorized Gelt Properties, LLC, et al., to employ Dunne Wright Services, LLC, as property manager. As reported in the Troubled Company Reporter on Feb. 9, 2012, Dunne Wright is expected to manage property located in (inner- city) Baltimore, Maryland at 4001 Main Street, Baltimore, Maryland, in relation to: a. collecting delinquent rents and eviction procedures; b. property improvements and maintenance; c. construction management; d. contracting of professional services; e. negotiating and executing all leases, extensions, renewals, or other contracts or agreement, on behalf of the Debtors; and f. other general function. Dunne Wright will perform management services for the Debtors with compensation of 8% of gross rental amount received on all leases or rental agreements with respect to the property. To the best of the Debtors' knowledge, Dunne Wright has no connection with any creditor or any party-in-interest or their respective attorneys in the case. About Gelt Properties Based in Huntington Valley, Pennsylvania, Gelt Properties, LLC, and affiliate Gelt Financial Corporation borrow money from traditional lenders and make loans to commercial borrowers. They also acquire and manage real estate. Gelt Properties and Gelt Financial filed for Chapter 11 bankruptcy (Bankr. E.D. Pa. Case Nos. 11-15826 and 11-15826) on July 25, 2011. Judge Magdeline D. Coleman presides over the cases. Albert A. Ciardi, III, Esq., Jennifer E. Cranston, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., in Philadelphia, Pa., serve as the Debtors' bankruptcy counsel. The petitions were signed by Uri Shoham, the Debtors' chief financial officer. The Debtors' other professionals include: Eisenberg, Gold & Cettei P.C. as its special counsel to provide proper legal counsel to the Debtors with regard to defending against certain actions, Cohen and Forman as their special counsel to advise them upon all matters which may arise or which may be incident to the bankruptcy proceedings. Gelt Properties disclosed $4,727,090 in assets and $4,842,792 in liabilities as of the Chapter 11 filing. Its affiliate, Gelt Financial, has filed its schedules disclosing $20,340,725 in assets and $17,050,558 in liabilities as of the Chapter 11 filing. On Sept. 15, 2011, a committee of unsecured creditors was appointed. Schoff McCabe, P.C. represents the Committee. Craig Howe, CPA, and Howe, Keller & Hunter, P.C., serve as the Committee's accountants. GETTY PETROLEUM: Stops 9 Lawsuits Involving Indemnified Parties --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Getty Petroleum Marketing Inc. persuaded the bankruptcy judge last week to sign an order halting nine lawsuits where Getty Petroleum indemnified defendants. Getty Petroleum argued that continuation of the suits would require large expenses for defense because the insurance policy has a $500,000 deductible for each claim. Judgments would add to the pool of unsecured claims, the company said. About Getty Petroleum A remnant of J. Paul Getty's oil empire, Getty Petroleum Marketing markets gasolines, hydraulic fluids, and lubricating oils through a network of gas stations owned and operated by franchise holders. A former subsidiary of Russian oil giant LUKOIL, the company operates in the Mid-Atlantic and Northeastern US states. Getty Petroleum Marketing's primary asset is the more than 800 gas stations in the Mid-Atlantic states which are located on properties owned by Getty Realty. After scaling back the company's operations to cut debt, in 2011 LUKOIL sold Getty Petroleum Marketing to investment firm Cambridge Petroleum Holding for an undisclosed price. Getty Petroleum and three affiliates filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case Nos. 11-15606 to 11-15609) on Dec. 5, 2011. Judge Shelley C. Chapman presides over the case. Loring I. Fenton, Esq., John H. Bae, Esq., Kaitlin R. Walsh, Esq., and Michael J. Schrader, Esq., at Greenberg Traurig, LLP, in New York, N.Y., serve as Debtors' counsel. Ross, Rosenthal & Company, LLP, serves as accountants for the Debtors. Getty Petroleum Marketing, Inc., disclosed $46,592,263 in assets and $316,829,444 in liabilities as of the Petition Date. The petition was signed by Bjorn Q. Aaserod, chief executive officer and chairman of the board. The Official Committee of Unsecured Creditors is represented by Wilmer Cutler Pickering Hale and Dorr LLP. Alvarez & Marsal North America, LLC, serves as the Committee's financial advisors. GLOBAL AVIATION: Wants to Hire Ernst & Young LLP as Tax Advisor --------------------------------------------------------------- Global Aviation Holdings Inc., et al., ask the U.S. Bankruptcy Court for the Eastern District of New York for permission to employ Ernst & Young LLP as tax advisor. EY LLP will, among other things: -- work with the appropriate Debtor personnel or the Debtors' outside legal counsel in developing an understanding of the tax issues and alternatives associated with the Debtors' Chapter 11 filing, restructuring, or other plan, taking into account the Debtors' specific facts and circumstances, for U.S. Federal, international, state and local income tax purposes and for indirect tax purposes; -- assist and advise the Debtors in developing an understanding of the tax implications of their bankruptcy restructuring alternatives and post-bankruptcy operations (including, as needed, research and analysis of treatises, Internal Revenue Code sections, Treasury regulations, case law and other relevant tax authority) and assist and advise in securing rulings from the Internal Revenue Service or applicable state/local tax authorities with respect to income taxes or indirect taxes; and -- provide routine tax advice and assistance concerning issues as requested when the projects are not covered by a separate statement of work and do not involve any significant tax planning or projects. The hourly rates of EY LLP's personnel are: Executive Director/ Principal/Partner $765 Senior Manager $615 Manager $545 Senior $375 Staff $190 In the 90 days prior to the Commencement Date, the Debtors paid EY LLP $57,234 for services rendered. As of the Commencement Date, EY LLP does not hold a prepetition claim against the Debtors for amounts owed for services rendered. To the best of the Debtors' knowledge, EY LLP is a "disinterested person" as that term is defined Section 101(14) of the Bankruptcy Code. The Court will convene a hearing March 14, 2012, 3:30 p.m. (prevailing Eastern Time) to consider approval of the request to employ EY LLP. About Global Aviation Holdings Global Aviation Holdings Inc., based in Peachtree City, Ga., is the parent company of North American Airlines and World Airways. Global is the largest commercial provider of charter air transportation for the U.S. military, and a major provider of worldwide commercial global passenger and cargo air transportation services. North American Airlines, founded in 1989 and based in Jamaica, N.Y., operates passenger charter flights using B757-200ER and B767-300ER aircraft. World Airways, founded in 1948 and based in Peachtree City, Ga., operates cargo and passenger charter flights using B747-400 and MD-11 aircraft. Global Aviation, along with affiliates, filed Chapter 11 petitions (Bankr. E.D.N.Y. Case No. 12-40783) on Feb. 5, 2012. Global's lead counsel in connection with the restructuring is Kirkland & Ellis LLP and its financial advisor is Rothschild. Kurtzman Carson Consultants LLC is the claims agent. The Debtors disclosed $589.8 million in assets and $493.2 million in liabilities as of Dec. 31, 2011. Liabilities include $146.5 million on 14% first-lien secured notes and $98.1 million on a second-lien term loan. Wells Fargo Bank NA is agent for both. Global said it will use Chapter 11 to shed 16 of 30 aircraft. In addition, Global said it will use Chapter 11 to negotiate new collective bargaining agreements with its unions and deal with liabilities on multi-employer pension plans. On Feb. 13, 2012, the U.S. Trustee for Region 2 appointed a seven- member official committee of unsecured creditors in the case. GLOBAL AVIATION: Ford & Harrison LLP as Special Labor Counsel ------------------------------------------------------------- Global Aviation Holdings Inc., et al., ask the U.S. Bankruptcy Court for the Eastern District of New York for permission to employ Ford & Harrison LLP as special labor counsel. Ford & Harrison will provide services, to the extent necessary and as requested by the Debtors, with respect to, among other issues, any and all issues that may arise during these chapter 11 cases related to: a) all aspects of the Debtors' labor relations with the unions that represent certain of the Debtors' employees who are subject to collective bargaining agreements, including issues relating to negotiations and, if necessary, arbitration with the Unions regarding the Debtors' collective bargaining agreements with such Unions; and b) issues with respect to any relief sought or contemplated by the Debtors under either Section 1113 or 1114 of the Bankruptcy Code and any litigation related to such relief and c) any labor-related or other services as may be requested by the Debtors. Prepetition Date, Ford & Harrison received from the Debtors in 2011 a total of approximately $212,615 for services rendered, and costs and expenses incurred, in representing the Debtors. Consistent with the terms of the Engagement Letter, on Feb. 2, 2012, the Debtors paid $191,000 to Ford & Harrison as a classic retainer. To the best of the Debtors' knowledge, Ford & Harrison does not hold or represent any interest adverse to the Debtors or the Debtors' estates with respect to the matters on which Ford & Harrison is to be employed. About Global Aviation Holdings Global Aviation Holdings Inc., based in Peachtree City, Ga., is the parent company of North American Airlines and World Airways. Global is the largest commercial provider of charter air transportation for the U.S. military, and a major provider of worldwide commercial global passenger and cargo air transportation services. North American Airlines, founded in 1989 and based in Jamaica, N.Y., operates passenger charter flights using B757-200ER and B767-300ER aircraft. World Airways, founded in 1948 and based in Peachtree City, Ga., operates cargo and passenger charter flights using B747-400 and MD-11 aircraft. Global Aviation, along with affiliates, filed Chapter 11 petitions (Bankr. E.D.N.Y. Case No. 12-40783) on Feb. 5, 2012. Global's lead counsel in connection with the restructuring is Kirkland & Ellis LLP and its financial advisor is Rothschild. Kurtzman Carson Consultants LLC is the claims agent. The Debtors disclosed $589.8 million in assets and $493.2 million in liabilities as of Dec. 31, 2011. Liabilities include $146.5 million on 14% first-lien secured notes and $98.1 million on a second-lien term loan. Wells Fargo Bank NA is agent for both. Global said it will use Chapter 11 to shed 16 of 30 aircraft. In addition, Global said it will use Chapter 11 to negotiate new collective bargaining agreements with its unions and deal with liabilities on multi-employer pension plans. On Feb. 13, 2012, the U.S. Trustee for Region 2 appointed a seven GLOBAL AVIATION: Taps Kurtzman Carson as Administrative Agent ------------------------------------------------------------- Global Aviation Holdings Inc., et al., ask the U.S. Bankruptcy Court for the Eastern District of New York for permission to employ Kurtzman Carson Consultants LLC as administrative agent nunc pro tunc to the Chapter 11 commencement date. KCC will, among other things: a) assist with the preparation of the Debtors' schedules of assets and liabilities and statement of financial affairs; b) tabulate votes and perform subscription services as may be requested or required in connection with any and all Plans filed by the Debtors and provide ballot reports and related balloting and tabulation services to the Debtors and their professionals; and c) generate an official ballot certification and testify, if necessary, in support of the ballot tabulation results. The Debtors relate that the Court authorized the appointment of KCC as their claims and noticing agent. As part of the overall compensation payable to KCC under the terms of the KCC Agreement, the Debtors have agreed to certain indemnification and contribution obligations. The KCC Agreement provides that the Debtors will indemnify and hold harmless KCC, its officers, employees and agents under certain circumstances specified in the KCC Agreement, except in circumstances of gross negligence or willful misconduct. To the best of the Debtors' knowledge, KCC is a "disinterested person" as that term is defined Section 101(14) of the Bankruptcy Code. About Global Aviation Holdings Global Aviation Holdings Inc., based in Peachtree City, Ga., is the parent company of North American Airlines and World Airways. Global is the largest commercial provider of charter air transportation for the U.S. military, and a major provider of worldwide commercial global passenger and cargo air transportation services. North American Airlines, founded in 1989 and based in Jamaica, N.Y., operates passenger charter flights using B757-200ER and B767-300ER aircraft. World Airways, founded in 1948 and based in Peachtree City, Ga., operates cargo and passenger charter flights using B747-400 and MD-11 aircraft. Global Aviation, along with affiliates, filed Chapter 11 petitions (Bankr. E.D.N.Y. Case No. 12-40783) on Feb. 5, 2012. Global's lead counsel in connection with the restructuring is Kirkland & Ellis LLP and its financial advisor is Rothschild. Kurtzman Carson Consultants LLC is the claims agent. The Debtors disclosed $589.8 million in assets and $493.2 million in liabilities as of Dec. 31, 2011. Liabilities include $146.5 million on 14% first-lien secured notes and $98.1 million on a second-lien term loan. Wells Fargo Bank NA is agent for both. Global said it will use Chapter 11 to shed 16 of 30 aircraft. In addition, Global said it will use Chapter 11 to negotiate new collective bargaining agreements with its unions and deal with liabilities on multi-employer pension plans. On Feb. 13, 2012, the U.S. Trustee for Region 2 appointed a seven- member official committee of unsecured creditors in the case. GLOBAL AVIATION: Taps Pachulski as Conflicts Counsel ---------------------------------------------------- Global Aviation Holdings Inc., et al., ask the U.S. Bankruptcy Court for the Eastern District of New York for permission to employ Pachulski Stang Ziehl & Jones LLP as conflicts counsel. PSZJ will handle matters that are not appropriately handled by Kirkland & Ellis, LLP, as general bankruptcy counsel, because of an actual or potential conflict of interest or connection with a party-in-interest or, alternatively, which can be more efficiently handled by PSZJ as the Debtors or K&E may request. In each case, K&E and PSZJ will work together to prevent unnecessary duplication of effort. To the best of the Debtors' knowledge, PSZJ is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Global Aviation Holdings Global Aviation Holdings Inc., based in Peachtree City, Ga., is the parent company of North American Airlines and World Airways. Global is the largest commercial provider of charter air transportation for the U.S. military, and a major provider of worldwide commercial global passenger and cargo air transportation services. North American Airlines, founded in 1989 and based in Jamaica, N.Y., operates passenger charter flights using B757-200ER and B767-300ER aircraft. World Airways, founded in 1948 and based in Peachtree City, Ga., operates cargo and passenger charter flights using B747-400 and MD-11 aircraft. Global Aviation, along with affiliates, filed Chapter 11 petitions (Bankr. E.D.N.Y. Case No. 12-40783) on Feb. 5, 2012. Global's lead counsel in connection with the restructuring is Kirkland & Ellis LLP and its financial advisor is Rothschild. Kurtzman Carson Consultants LLC is the claims agent. The Debtors disclosed $589.8 million in assets and $493.2 million in liabilities as of Dec. 31, 2011. Liabilities include $146.5 million on 14% first-lien secured notes and $98.1 million on a second-lien term loan. Wells Fargo Bank NA is agent for both. Global said it will use Chapter 11 to shed 16 of 30 aircraft. In addition, Global said it will use Chapter 11 to negotiate new collective bargaining agreements with its unions and deal with liabilities on multi-employer pension plans. On Feb. 13, 2012, the U.S. Trustee for Region 2 appointed a seven- member official committee of unsecured creditors in the case. GREAT PLAINS: Moody's Issues Summary Credit Opinion --------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Great Plains Energy Incorporated and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Great Plains Energy Incorporated and its affiliates. Moody's current ratings on Great Plains Energy Incorporated and its affiliates are: Senior Unsecured domestic currency ratings of Baa3 Subordinate domestic currency ratings of Ba1 Pref. Stock domestic currency ratings of Ba2 Senior Unsec. Shelf domestic currency ratings of (P)Baa3 Subordinate Shelf domestic currency ratings of (P)Ba1 Pref. Shelf domestic currency ratings of (P)Ba2 Kansas City Power & Light Company First Mortgage Bonds domestic currency ratings of A3 Senior Unsecured domestic currency ratings of Baa2 LT Issuer Rating ratings of Baa2 Senior Secured Shelf domestic currency ratings of (P)A3 Senior Unsec. Shelf domestic currency ratings of (P)Baa2 Commercial Paper domestic currency ratings of P-2 Kansas City Power & Light Greater MO Oper Senior Unsecured domestic currency ratings of Baa3 Senior Unsec. Shelf domestic currency ratings of (P)Baa3 Commercial Paper domestic currency ratings of P-3 Ratings Rationale Great Plains' Baa3 senior unsecured rating reflects Moody's expectation the company will generate a reasonably supportive level of consolidated credit metrics for its rating category, and that its overall regulatory environment will remain somewhat challenging, but constructive in nature. In Moody's view, KCPL's solid cash flow (Debt/EBITDA 2.87x at December 31,2010) should help offset GMO's more leveraged stand-alone capital structure (Debt/EBITDA 4.18x at December 31, 2010). As part of GMO's acquisition in 2008, which resulted in a material increase in consolidated leverage, Great Plains guaranteed the surviving obligations at GMO, which now total slightly over $1.0 billion. Rating Outlook The rating outlook is stable. The outlook reflects Moody's expectation that Great Plains will maintain its credit metrics around the levels that it achieved in 2010, which Moody's views as appropriate for a Baa3 rated utility holding company. Moody's also incorporates into Moody's outlook a reasonable rate case outcomes in Missouri, including a fair inclusion of the cost overrun capital spending incurred in completing Iatan 2 generating facility into rate base. What Could Change the Rating - Up A near term upgrade of Great Plains' rating is unlikely. However, as the company makes progress with its various construction programs and demonstrates sustainable improving credit metrics as evidenced by consolidated CFO (pre w/c) / debt in the mid-to-high teens range and interest coverage closer to 4.0 times then Moody's could consider a possible upgrade. What Could Change the Rating - Down Should Great Plains consolidated CFO (pre w/c) to debt ratio remain below the low-teens range and the CFO (pre w/c) + Interest/Interest ratio remains below 3.0 times over an extended period of time, negative pressure on the rating is likely. The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in August 2009. GUZMAN & GONZALEZ: Case Summary & 2 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Guzman & Gonzalez Management Inc. dba Monjitas 1255 Paseo Las Monjitas Suite 163 Ponce, PR 00730 Bankruptcy Case No.: 12-01779 Chapter 11 Petition Date: March 9, 2012 Court: United States Bankruptcy Court District of Puerto Rico (Ponce) Debtor's Counsel: Wanda I. Luna Martinez, Esq. LUNA LAW OFFICES PMB 389, P.O. Box 194000 San Juan, PR 00919-4000 Tel: (787) 998-2356 Fax: (787) 200-8837 E-mail: quiebra@gmail.com Scheduled Assets: $5,125,014 Scheduled Liabilities: $4,848,899 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb12-01779.pdf The petition was signed by Rodney Gonzalez Guzman, president. HAWAIIAN ELECTRIC: Moody's Issues Summary Credit Opinion -------------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Hawaiian Electric Industries, Inc. and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Hawaiian Electric Industries, Inc. and its affiliates. Moody's current ratings on Hawaiian Electric Industries, Inc. and its affiliates are: Senior Unsecured domestic currency rating of Baa2 Senior Unsec. Shelf domestic currency rating of (P)Baa2 Senior Subordinate Shelf domestic currency rating of (P)Baa3 Junior Subord. Shelf domestic currency rating of (P)Baa3 Pref. Shelf domestic currency rating of (P)Ba1 BACKED Commercial Paper domestic currency rating of P-2 Hawaiian Electric Company, Inc. LT Issuer Rating rating of Baa1 Pref. Stock domestic currency rating of Baa3 BACKED Commercial Paper domestic currency rating of P-2 HECO Capital Trust III BACKED Pref. Stock domestic currency rating of Baa2 Hawaiian Electric Industries Capital Trust II BACKED Pref. Shelf domestic currency rating of (P)Ba1 Ratings Rationale HECO's Baa1 Issuer Rating factors in the anticipated cash flow stability of this vertically integrated utility, the long-term benefits of a more predictable regulatory framework being introduced, and a conservative financial management. The rating also recognizes the geographic concentration risk that exists especially when the Hawaii's economy weakens, the size of the utilities' capital programs, and the challenges associated with implementing rate increases in a state whose service territory faces economic pressures along with the highest retail electric rates in the country. Rating Outlook HECO's stable rating outlook incorporates Moody's belief that the regulatory transition underway will continue to proceed in an orderly fashion with the belief that the decoupling mechanism will reduce regulatory lag and better match cost recovery of expenses and capital investment such that HECO's consolidated ROE will approach authorized returns over time. What Could Change the Rating - Up In light of the very sizeable capital investment programs, the economic challenges that continue, and the remaining uncertainty as the commission continues implementing decoupling, limited near- term prospects exist for the rating to be upgraded. However, HECO's ratings could be upgraded if the regulatory transition underway is fully implemented across the entire company leading to a sustained multi-year improvement in credit metrics such that the utility's cash flow to debt exceeds 22% and its cash flow coverage of interest is greater than 5.0x on a consistent basis. What Could Change the Rating - Down The rating could be downgraded if the Hawaii PUC does not follow through with the regulatory transformation contemplated under the HCEI, including all elements of the decoupling mechanism. Quantitatively, the ratings could be downgraded if the utilities' cash flow to debt declined to below 17% on a sustainable basis and its cash flow coverage of interest fell below 3.5x. The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in August 2009. HISJ HOLDINGS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: HISJ Holdings, LLC dba Holiday Inn St. Joseph Riverfront c/o Dan Mercurio, Manager 13735 Riverport Drive Maryland Heights, MO 63043 Bankruptcy Case No.: 12-41985 Chapter 11 Petition Date: March 6, 2012 Court: United States Bankruptcy Court Eastern District of Missouri (St. Louis) Judge: Barry S. Schermer Debtor's Counsel: Robert A. Breidenbach, Esq. Steven Goldstein, Esq. GOLDSTEIN AND PRESSMAN 10326 Old Olive Street Road St. Louis, MO 63141-5922 Tel: (314) 727-1717 Fax: (314) 727-1447 E-mail: rab@goldsteinpressman.com sg@goldsteinpressman.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/moeb12-41985.pdf The petition was signed by Dan Mercurio, manager. IMEDICOR INC: Incurs $627,901 Net Loss in December 31 Quarter ------------------------------------------------------------- iMedicor, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common shareholders of $627,901 on $162,722 of total revenues for the three months ended Dec. 31, 2011, compared with a net loss attributable to common shareholders of $974,313 on $101,136 of total revenues for the same period a year ago. The Company reported a net loss attributable to common shareholders of $1.18 million on $351,944 of total revenues for the six months ended Dec. 31, 2011, compared with a net loss attributable to common shareholders of $2.61 million on $149,733 of total revenues for the same period a year ago. The Company had a net loss of $5.20 million for the year ended June 30, 2011, following an $11.40 million net loss in the preceding year. The Company's balance sheet at Dec. 31, 2011, showed $2.10 million in total assets, $5.78 million in total liabilities, all current, and a $3.68 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/1INf5Y About iMedicor Inc. Nanuet, N.Y.-based iMedicor, Inc., formerly Vemics, Inc., builds portal-based, virtual work and learning environments in healthcare and related industries. The Company's focus is twofold: iMedicor, the Company's web-based portal which allows Physicians and other healthcare providers to exchange patient specific healthcare information via the internet while maintaining compliance with all Health Insurance Portability and Accountability Act of 1996 ("HIPAA") regulations, and; recently acquired ClearLobby technology, the Company's web-based portal adjunct which provides for direct communications between pharmaceutical companies and physicians for the dissemination of information on new drugs without the costs related to direct sales forces. The Company's solutions allow physicians to use the internet in ways previously unavailable to them due to HIPAA restrictions to quickly and cost- effectively exchange and share patient medical information and to interact with pharmaceutical companies and review information on new drugs offered by these companies at a time of their choosing. Demetrius & Company, L.L.C., expressed substantial doubt about the Company's ability to continue as a going concern following the 2011 financial results. The independent auditors noted that the Company has experienced significant losses resulting in a working capital deficiency and shareholders' deficit. INN & SUITES: Case Summary & 14 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Inn & Suites of Union City, GA, LLC dba LaQuinta Inn & Suites Of Union City, GA 3939 Royal Drive, Suite 222 Kennesaw, GA 30144 Bankruptcy Case No.: 12-56163 Chapter 11 Petition Date: March 6, 2012 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Judge: Mary Grace Diehl Debtor's Counsel: J. Carole Thompson Hord, Esq. SCHREEDER, WHEELER & FLINT, LLP 1100 Peachtree Street, NE, Suite 800 Atlanta, GA 30309-4516 Tel: (404) 954-9858 E-mail: chord@swfllp.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 14 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb12-56163.pdf The petition was signed by Anjebhai Patel, manager. INTEGRATED FREIGHT: Cross Creek Assets Foreclosed by Creditors -------------------------------------------------------------- The assets that Integrated Freight Corporation acquired in the purchase of Cross Creek Trucking, Inc., which secured obligations of Cross Creek, have been foreclosed upon and recovered by the respective Cross Creek creditors. These assets were tractors and trailers held under financing agreements and capital leases. The Company is unable to determine at the present time the amounts of any deficiencies, if any, for which Cross Creek may remain liable. The values of the remaining assets of Cross Creek are not material. The Company's only operations at Feb. 29, 2011, are being conducted in the Company's wholly owned subsidiaries, Morris Transportation, Inc., and Smith Systems Transportation. Operations of Cross Creek have been terminated. Accordingly, the Company's only sources of revenues for the third quarter ended Dec. 31, 2011, are from Morris Transportation and Smith Systems. The Company has closed its executive offices in Sarasota, Florida, although the address is being maintained for mail and official purposes under cooperation with the Company's landlord. The Company has surrendered possession of its computer servers and peripheral equipment to its vendor. The Company has substantial unpaid obligations. CEO and Directors Resign The Company's Chief Executive Officer, Paul A. Henley, has resigned effective Feb. 29, 2012. Mr. Henley also has resigned as chairman of the Company's board of directors, effective March 8, 2012. Mr. Henley will continue as one of the Company's directors. The Company expects to be able to renegotiate compensation for its chief operating officer and chief financial officer in order to reduce its overhead. The Company is seeking additional funding from its existing creditors, with which to pay for and continue its operations. John E. Bagalay has resigned effective Feb. 29, 2012. Mr. Bagalay was one of the Company's independent directors and served on its board's audit committee. Kimberly K. Bors has resigned effective March 5, 2012. Ms. Bors was one of the Company's independent directors and served on the Company's board's audit committee. Impaired Assets The Company has determined that the operations and assets of Cross Creek included in its financial statements for the quarter ended Sept. 30, 2011, are entirely impaired and without recoverable value. The amount of the impairment or adjustment related to overvaluation is in excess of one million dollars. Other than Morris Transportation and Smith Systems Transportation, the Company is in default in payment of most, if not all, of the Company's financial obligations. These defaults accelerated the due dates of those obligations. The Company is engaged in efforts to obtain forbearance agreements with its major creditors. If the Company obtains forbearance agreements, the Company expects to have time to reorganize its operations. Although the Company has not yet concluded that its financial statements for the quarters ended June 30, 2011, and Sept. 30, 2011, should no longer be relied upon because of an error in such financial statements, the Company may make this determination in the future after further consideration of the timing and impact of termination of Cross Creek's operations. However, the Company's financial statements for the quarters ended June 30 2011, and Sept. 30, 2011, should not be used as an indicator of future performance. Smith Systems to Face Complaint The Company anticipates Smith Systems will be named as a defendant in a suit by a customer related to a hazardous waste spill in Sacramento, CA. The cleanup costs exceeded $1,000,000, of which the customer has paid approximately $850,000 which it may seek to recover from Smith Systems. The Company believes Smith Systems' insurance will cover these costs, net of the deductible. Smith Systems believes it has defenses to the claims which may be made by the customer, including the customer's failure to respond timely to notice of the spill which would cause the customer to be responsible for all cleanup costs. The customer, who accounted for approximately one-third of Smith Systems' business, has terminated its relationship with Smith Systems and is withholding payments in the approximate amount of $350,000 as a claimed offset against its claims against Smith Systems. Smith Systems has pledged these receivables as collateral for its operating line of credit. About Integrated Freight Integrated Freight Corporation, formerly PlanGraphics, Inc., (OTC BB: IFCR) -- http://www.integrated-freight.com/-- is a Sarasota, Florida headquartered motor freight company providing long-haul, regional and local service to its customers. The Company specializes in dry freight, refrigerated freight and haz-waste truckload services, operating primarily in well-established traffic lanes in the upper mid-West, Texas, California and the Atlantic seaboard. IFCR was formed for the purpose of acquiring and consolidating operating motor freight companies. On Aug. 19, 2010, at a special stockholders' meeting the Company approved a reverse stock split, a relocation of its State of Incorporation to Florida and a change of its name to Integrated Freight Corporation. The Company's name change and State of Incorporation have been approved and are effective as of Aug. 18, 2010. The reverse stock split has been approved but is not effective as of the date of this filing. The Company ended fiscal 2011 with a net loss of $7.76 million on $18.82 million of revenue and fiscal 2010 with a net loss of $3.14 million on $17.33 million of revenue. Sherb & Co., LLP, in Boca Raton, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and has a negative working capital position and a stockholders' deficit. The Company's balance sheet at June 30, 2011, showed $21.44 million in total assets, $28.02 million in total liabilities, and a $6.57 million total stockholders' deficit. INTERNAL FIXATION: Sells 70,000 8% Convertible Note to Asher ------------------------------------------------------------ Internal Fixation Systems, Inc., entered into a Securities Purchase Agreement with Asher Enterprises, Inc., dated as of Dec. 6, 2011, for the sale to Asher of an 8% convertible note in the principal amount of $42,500. The financing closed and the December Note was issued on Dec. 14, 2011. The Company entered into an additional Securities Purchase Agreement with Asher dated as of Feb. 6, 2012, for the sale to Asher of an 8% convertible note in the principal amount of $27,500. The financing closed and the February Note was issued on Feb. 15, 2012. Both the December Note and the February Note bear interest at the rate of 8% per annum. All interest and principal under the December Note must be repaid on Sept. 8, 2012, and all interest and principal under the February Note must be repaid on Nov. 8, 2012. The December Note and the February Note are convertible into shares of the Company's common stock, at Asher's option, at any time on the date which is 180 days after the issuance date of the respective note, at a 49% discount and a 41% discount, respectively, to the average of the five lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays either of the notes in full, the Company is required to pay off all principal, interest and any other amounts owing under such prepaid note multiplied by: (i) 135% if prepaid during the period commencing on the closing date through 90 days thereafter; (ii) 140% if prepaid 91 days following the closing through 150 days following the closing; and (iii) 150% if prepaid 151 days following the closing through 180 days following the closing. After the expiration of 180 days following the date of the December Note, the Company has no right to prepay the December Note and after the expiration of 180 days following the date of the February Note, the Company has no right to prepay the February Note. Asher has agreed to restrict its ability to convert both the December Note and the February Note and receive shares of common stock such that the number of shares of common stock held by them in the aggregate and their affiliates after such conversion or exercise does not exceed 4.99% of the then issued and outstanding shares of the Company's common stock. The total net proceeds the Company received from the sale of the December Note was $40,000 and the total net proceeds the Company received from sale of the February Note was $25,000. The Company claims an exemption from the registration requirements of the Securities Act of 1933, as amended, for the private placement of these securities pursuant to Section 4(2) of the Act or Regulation D promulgated thereunder since, among other things, the transaction did not involve a public offering, Asher is an accredited investor, Asher had access to information about the Company and their investment, Asher took the securities for investment and not resale, and the Company took appropriate measures to restrict the transfer of the securities. On Dec. 30, 2011, the Company provided written notice to Christopher Endara, the Company's Vice President - Engineering, Quality and Regulatory Affairs that his employment with the Company was terminated. The Company believes its obligations to Mr. Endara under his Employment Agreement are limited to the payment of accrued and unpaid salary through the date of his termination. On Jan. 23, 2012, Christopher Endara initiated a lawsuit against the Company, Stephen J. Dresnick, MD, the Company's President and Chief Executive Officer and Laura Cattabriga, the Company's Chief Financial Officer, in the Circuit Court For the Eleventh Judicial Circuit In and For Miami-Dade County, Florida (Case No. 12-02099 CA 25). His complaint makes claims against the Company for breach of his Employment Agreement, unpaid wages and for inspection of corporate records; and makes claims against Dr. Dresnick and Ms. Cattabriga for unpaid wages, tortious interference with an advantageous business relationship and negligent per se violation of Florida Statutes, Section 448.045. He seeks, among other compensatory damages, all monies due to him under his Employment Agreement and his legal fees from the Company. The Company intends to vigorously defend the lawsuit. About Internal Fixation South Miami, Fla.-based Internal Fixation Systems, Inc., is a manufacturer and marketer of generically priced orthopedic and podiatric implants. Customers include ambulatory surgery centers, hospitals and orthopedic surgeons. IFS's strategy is to focus on commonly used implants that no longer have patent protection. The Company enhances the implants and sells them at prices below the market leaders. Goldstein Schechter Koch P.A., in Hollywood, Florida, expressed substantial doubt about Internal Fixation Systems' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company had a net loss of $781,440 for the year ended Dec, 31, 2010, cumulative losses since inception of $757,218 and a working capital deficit of $123,409. The Company also reported a net loss of $1.69 million on $185,669 of net sales for the nine months ended Sept. 30, 2011, compared with a net loss of $375,478 on $89,537 of net sales for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $1.54 million in total assets, $1.24 million in total liabilities and $302,043 in total stockholders' equity. ISTAR FINANCIAL: Moody's Rates Sr. Secured Facility at 'B1/B2' -------------------------------------------------------------- Moody's Investors Service assigned a B1 senior secured rating to iStar's 2012 senior secured facility Tranche A-1 and a B2 senior secured rating to iStar's 2012 senior secured facility Tranche A- 2. Moody's also affirmed iStar's 2011 senior secured facility Tranche A-1 rating at B1, the 2011 Tranche A-2 rating at B2, the corporate family rating at B3, senior unsecured debt at Caa1 and preferred stock at Caa3. This rating action follows the announcement that iStar launched the syndication of up to $900 million in a new senior secured credit facility. Ratings Rationale On February 28, 2012, iStar announced that it launched a new $900 million senior secured credit agreement providing for two tranches of term loans: a 2012 A-1 tranche due March, 2016 and a 2012 A-2 tranche due March 2017 Amortization payments will be applied first to the 2012 A-1 tranche and then to the 2012 A-2 tranche. The proceeds from the new financing will be used to refinance iStar's 2012 unsecured debt maturities. Outstanding borrowings under the new financing will be collateralized by a first lien on a fixed pool of approximately $1.125 billion of assets consisting primarily of loans, net lease assets and other real estate assets. The new credit agreement contains a covenant to maintain collateral coverage of not less than 1.25x outstanding borrowings. The current ratings reflect the REIT's success in extending near term debt maturities and improving fundamentals in commercial real estate. The ratings on the 2012 and 2011 senior secured credit facilities take into account the asset coverage, the size and quality of the collateral pool, the pace of amortization on each tranche and the term of each tranche. The stable rating outlook reflects iStar's extended debt maturity schedule, stabilizing asset portfolio, and management's demonstrated ability to manage its liquidity. Positive rating momentum would result from successful repayment or refinancing of debt maturities through 2013, resolution of non- performing assets and sustained earnings growth. Negative rating pressure could result should the REIT fail to achieve resolutions of its non-performing assets at or above the current carrying value. Any liquidity challenges or covenant breaches would lead to a downgrade. The following ratings were assigned: iStar Financial Inc. -- 2012 senior secured credit facility Tranche A-1 at B1 and Tranche A-2 at B2 The following ratings were affirmed: iStar Financial, Inc. -- 2011 senior secured credit facility Tranche A-1 at B1 and Tranche A-2 at B2; corporate family rating at B3; senior unsecured debt at Caa1; preferred stock at Caa3; senior debt shelf at (P)Caa1; subordinated debt shelf at (P)Caa3; preferred stock at Caa3; preferred stock shelf at (P)Caa3. Moody's last rating action with respect to iStar Financial Inc. was on March 21, 2011 when Moody's assigned B1/B2 senior secured ratings, B3 corporate family rating, and upgraded iStar's senior unsecured ratings to Caa1 and preferred ratings to Caa3. iStar Financial's ratings were assigned by evaluating factors Moody's believes are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of iStar's core industry and the company's ratings are believed to be comparable to those of other issuers of similar credit risk. iStar Financial Inc. [NYSE: SFI] is a property finance company that elects REIT status. iStar provides custom-tailored investment capital to high-end private and corporate owners of real estate and invests directly across a range of real estate sectors. iStar Financial is headquartered in New York City, and had assets of $7.5 billion and common shareholders' equity of $1.0 billion as of December 31, 2011. JAMAR SANTOS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Jamar Santos Electrical Inc. P.O. Box 1379 Gurabo, PR 00778 Bankruptcy Case No.: 12-01789 Chapter 11 Petition Date: March 9, 2012 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Emily Darice Davila Rivera, Esq. LAW OFFICE WILLIAM DAVILA DE PEDRO 420 Ponce Leon Midtown, Suite 311 San Juan, PR 00918 Tel: (787) 753-2368 Fax: (787) 759-9620 E-mail: davilalawe@prtc.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb12-01789.pdf The petition was signed by Marco A. Santos Vazquez, president. JEANS.COM INC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Jeans.Com, Inc. P.O. Box 1479 Carr #2 Km 29.4 Vega Alta, PR 00962 Bankruptcy Case No.: 12-01777 Chapter 11 Petition Date: March 9, 2012 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Fausto David Godreau Zayas, Esq. LATIMER, BIAGGI, RACHID & GODREAU LLP P.O. Box 9022512 San Juan, PR 00902-2512 E-mail: dgodreau@LBRGlaw.com Scheduled Assets: $548,793 Scheduled Liabilities: $5,023,601 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb12-01777.pdf The petition was signed by Michael J. Silva, president. JOE'S PROPERTIES: Case Summary & 8 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Joe's Properties, LLC 6818 Madrid Avenue Jacksonville, FL 32217 Bankruptcy Case No.: 12-01495 Chapter 11 Petition Date: March 7, 2012 Court: United States Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: Jason A. Burgess, Esq. THE LAW OFFICES OF JASON A. BURGESS, LLC 118 West Adams Street, Suite 900 Jacksonville, FL 32202 Tel: (904) 354-5065 E-mail: jason@jasonaburgess.com Scheduled Assets: $625,270 Scheduled Liabilities: $1,032,806 A copy of the list of eight largest unsecured creditors is available for free at http://bankrupt.com/misc/flmb12-01495.pdf The petition was signed by Joe Joseph, managing member. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Three Josephs, LLC 11-05447 07/26/11 JORDAN MAX DENNING: Dist. Court Says Country Boys Not Insider ------------------------------------------------------------- District Judge James C. Dever, III, affirmed the ruling of the U.S. Bankruptcy Court for the Eastern District of North Carolina finding that Country Boys Auction and Realty, Inc. is not an "insider" of Jordan Max Denning, under 11 U.S.C. Sec. 101(31) and, therefore, is not disqualified to serve as the bankruptcy estate's auctioneer. The Bankruptcy Administrator took an appeal from the Bankruptcy Court ruling, focusing on whether Country Boys is a non-statutory insider under Sec. 101(31). Court documents state that Mr. Denning's chief restructuring officer, Douglas M. Gurkins, was a former president and principal shareholder of Country Boys. In January 2005, Mr. Gurkins resigned as president and transferred all of his shares to his adult son, Michael Gurkins. Michael is Country Boys' current president and principal shareholder and is a well-regarded auctioneer. Douglas, however, continued to use a Country Boys e- mail address and, until this litigation, was mentioned on the masthead of the company Web site. The case before the District Court is Marjorie K. Lynch, Bankruptcy Administrator, Appellant, v. Jordan Max Denning, Appellee, No. 7:11-CV-00073-D (E.D.N.C.). A copy of the Court's March 4 order is available at http://is.gd/3ueO5Wfrom Leagle.com. Jordan Max Denning filed a voluntary Chapter 11 bankruptcy petition (Bankr. E.D.N.C. Case No. 10-_____) on Sept. 8, 2010. KNOBLE CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Knoble Construction Inc. 701 Ford Road, Box 5 Rockaway, NJ 07866 Bankruptcy Case No.: 12-16055 Chapter 11 Petition Date: March 8, 2012 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Rosemary Gambardella Debtor's Counsel: Michael J. Sweeney, Esq. HUNZIKER, JONES & SWEENEY Wayne Plaza II 155 Route 46 West Wayne, NJ 07470 Tel: (973) 256-0456 Fax: (973) 256-4784 E-mail: msweeney@hjslawoffice.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb12-16055.pdf The petition was signed by Charles R. Barrow, III, president. L190-1 SHADOW: Case Summary & 9 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: L190-1 Shadow Mountain Plat, LLC A Nevada Limited Liability Company Cicilia S. Elali 10801 Main Street, Suite 100 Bellevue, WA 98004 Bankruptcy Case No.: 12-04442 Chapter 11 Petition Date: March 7, 2012 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: Eileen W. Hollowell Debtor's Counsel: Jeffrey M. Neff, Esq. LAW OFFICE OF JEFFREY M. NEFF, P.C. 4568 E Camp Lowell Dr Tucson, AZ 85712 Tel: (520) 722-8030 Fax: (520) 722-8032 E-mail: Jeff@Nefflawaz.com Scheduled Assets: $644,595 Scheduled Liabilities: $37,295,760 Debtor-affiliate that sought Chapter 11 protection on March 7, 2012: Debtor Case No. ------ -------- L190-2 Shadow Mountain Golf Course, LLC 12-04443 Assets: $302,055 Liabilities: $25,962,012 L190-3 Shadow Mountain Motel, LLC 12-04440 Assets: $165,232 Liabilities: $25,943,008 The petitions were signed by Henry Dean, manager. A list of L190-1's nine largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb12-04442.pdf A list of L190-2's six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb12-04443.pdf A list of L190-3's six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb12-04440.pdf LA JOLLA: Has 4.2 Million Outstanding Common Shares --------------------------------------------------- La Jolla Pharmaceutical Company reported that since Nov. 14, 2011, it had converted approximately 67 shares of Series C-1 2 Convertible Preferred Stock, $0.0001 par value per share, into 3,457,692 shares of common stock, $0.0001 par value per share. The Common Stock was issued upon conversion of the outstanding Series C-1 2 Preferred and was exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 3(a)(9) of the Securities Act. Following these conversions, the Company had a total of 4,249,105 shares of Common Stock issued and outstanding. As a result of the adjustment that followed the Company's recent 1-for-100 reverse stock split, the Series C-1 2 Preferred is convertible into Common Stock at a rate of 213,083 shares of Common Stock for each share of Series C-12 Preferred, subject to a weekly conversion cap as described in the Company's Current Report on Form 8-K filed on Jan. 20, 2012, as well as a limitation that each holder may only convert those shares of Series C-1 2 Preferred into Common Stock to the extent that after such conversion such holder owns less than 9.999% of the Company's issued and outstanding Common Stock. About La Jolla Pharmaceutical San Diego, Calif.-based La Jolla Pharmaceutical Company (OTC BB: LJPC) -- http://www.ljpc.com/-- is a biopharmaceutical company that has historically focused on the development and testing of Riquent as a treatment for Lupus nephritis. La Jolla's balance sheet at Sept. 30, 2011, showed $5.51 million in total assets, $2.62 million in total liabilities, all current, $5.14 million in Series C-1 1 redeemable convertible preferred stock, and a $2.25 million total stockholders' deficit. The Company reported a net loss of $3.76 million in 2010 and a net loss of $8.63 million in 2009. The Company has a history of recurring losses from operations and, as of Sept. 30, 2011, the Company had no revenue sources, an accumulated deficit of $426,306,000 and available cash and cash equivalents of $5,502,000 of which up to $5,140,000 could be required to be paid upon the exercise of redemption rights under the Company's outstanding preferred securities. That redemption was not considered probable as of Sept. 30, 2011. As reported by the TCR on April 18, 2011, BDO USA, LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations, an accumulated deficit of $428 million as of Dec. 31, 2010 and has no current source of revenues. LAMPEAS FAMILY: Case Summary & 15 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Lampeas Family Limited Partnership No. 7 49 Sunhill Road Nesconset, NY 11767 Bankruptcy Case No.: 12-71389 Chapter 11 Petition Date: March 8, 2012 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Robert E. Grossman Debtor's Counsel: Jerome Reisman, Esq. REISMAN PEIREZ & REISMAN LLP 1305 Franklin Avenue Garden City, NY 11530 Tel: (516) 746-7799 Fax: (416) 742-4946 E-mail: jreisman@reismanpeirez.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 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nyeb12-71389.pdf The petition was signed by Peter Lampeas, president of The Lampeas Family Holding Corp., general partner. LINWOOD FURNITURE: Plans to Modernize Operations ------------------------------------------------ Matt Evans at the Business Journal reports that Linwood Furniture CEO Mike Mebane said the Company's bankruptcy filing would not affect factory production or the Davidson County company's 80 full-time employees, though some temporary workers have been released. He said the filing was necessary to modernize the Company's operations to take full advantage of the resurgence in interest in domestically-made furniture. He said the court has approved debtor-in-possession financing that will provide the cash flow necessary to get through the Chapter 11 process. "It's too early to tell what will be available" for creditors in bankruptcy, the report quotes Mr. Mebane as saying. "We'll be submitting a plan to the court for approval that will define that." Based in Linwood, North Carolina, Linwood Furniture LLC manufactures furniture for Bob Timberlake collections and others. The Company filed for Chapter 11 protection on March 5, 2012 (Bankr. M.D. N.C. Case No. 12-50319). Judge Catharine R. Aron presides over the case. John Paul H. Cournoyer, Esq., and John A. Northen, Esq., at Northern Blue LLP, represent the Debtor. The Debtor disclosed assets of $3,655,896, and liabilities of $6,894,292. M WAIKIKI: Marriott's Plan Provides Full Payment to Most Creditors ------------------------------------------------------------------ Marriott International, Inc., and Marriott Hotel Services, Inc., submitted to the U.S. Bankruptcy Court for the District of Hawaii a Plan of Reorganization for M Waikiki. According to the Disclosure Statement dated Feb. 27, 2012, the Plan provides for full payment in cash of allowed claims for all classes, except for equity interests. The Plan is financed by the Proponents' proposed purchase of the estate assets. Specifically, on the Effective Date, the Proponents will transfer to the estate: i) cash in an amount to be determined by the Proponents, in their sole discretion, by or before the Effective Date that is sufficient to fund the Plan; and ii) the release of the Marriott Secured and Unsecured Claims; the transfer will be in contemporaneous exchange for the estate's transfer to Marriott all estate assets, including claims that have been or may be brought by the estate before the Bankruptcy Court or otherwise. In the event that Marriott is not the successful purchaser, the Marriott secured and unsecured claims will not be waived or released. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/M_WAIKIKI_ds.pdf Termination of Exclusivity On Feb. 14, the Bankruptcy Court authorized the Proponents to file the Plan and Disclosure Statement and to solicit votes to accept the Plan upon approval of the Disclosure Statement. As reported in the Troubled Company Reporter on Feb 20, 2012, Marriott requested that to the extent the Court finds that the exclusive period during which Debtor may solicit votes for its Plan of Reorganization has not yet expired, the Court immediately terminate any exclusivity period and allow Marriott to file a competing Plan. Marriott further requested that any hearing on the adequacy of its Disclosure Statement be set concurrently with the hearing on the adequacy of Debtor's Disclosure Statement -- which Marriott believes is scheduled for March 12. Marriott is represented by: Susan Tius, Esq. RUSH MOORE LLP, A Limited Liability Law Partnership 737 Bishop Street, Suite 2400 Honolulu, HI 96813-3862 Tel: (808) 521-0406 Fax: (808) 521-0497 E-mail: Stius@rmhawaii.com Carren B. Shulman, Esq. Alan M. Feld, Esq. SHEPPARD MULLIN RICHTER & HAMPTON LLP 30 Rockefeller Plaza New York, NY 10112-0015 Tel: (212) 653-8700 Fax: (212) 653-8701 E-mail: CShulman@sheppardmullin.com AFeld@sheppardmullin.com About M Waikiki M Waikiki owns the Modern Honolulu, a world-class, luxury hotel property located close to Waikiki Beach in Hawaii. The hotel is being managed by Modern Management Services LLC, an affiliate of Aqua Hotels and Resorts. M Waikiki is a Hawaii limited liability company with its principal place of business located in San Diego, California. It is a special purpose entity, having roughly 75 indirect investors, which was formed to acquire the Hotel. The Company filed for Chapter 11 protection (Bankr. D. Hawaii Case No. 11-02371) on Aug. 31, 2011. Judge Robert J. Faris presides over the case. Patrick J. Neligan, Esq., and James P. Muenker, Esq., at Neligan Foley LLP, in Dallas, Tex.; Simon Klevansky, Esq., Alika L. Piper, Esq., and Nicole D. Stucki, Esq., at Klevansky Piper, LLP, in Honolulu, Hawaii, are the attorneys to the Debtor. The Debtor tapped XRoads Solutions Group, LLC, and Xroads Case Management Services, LLC, as its financial and restructuring advisor. The Debtor disclosed $216,116,142 in assets and $135,085,843 in liabilities as of the Chapter 11 filing. Modern Management is represented by Christopher J. Muzzi, Esq., at Moseley Biehl Tsugawa Lau & Muzzi LLC. Marriott Hotel Services, which used to provide management services, is represented by Susan Tius, Esq., at Rush Moore LLP LLP, and Carren B. Shulman, Esq., at Sheppard Mullin Richter & Hampton LLP. MAJESTIC CAPITAL: Plan Confirmation Hearing Set for April 25 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on April 25, 2012 at 11:00 a.m. (Eastern Time), to consider the confirmation of Majestic Capital Ltd., et al.'s Chapter 11 Plan. The Court set March 30 as the deadline for ballots accepting on rejecting the Plan, and filing objections to the Plan confirmation. All persons and entities entitled to vote on the Plan will deliver their ballots by mail, hand delivery or overnight courier to the Debtors' counsel at: Murphy & King, Professional Corporation Attn: Andrew G. Lizotte, Esq. One Beacon Street, 21st Floor Boston, MA 02108 Holders of Claims will not be permitted to vote on the Plan if their Claims are subject to a pending objection on the Confirmation Date or, with respect to transferred and assigned Claims, there is an objection to the transfer, filed in accordance with Rule 3001 of the Federal Rules of Bankruptcy Procedure, pending on the close of business on the Confirmation Date; provided, however, that the prohibition on voting in this paragraph is subject to motions filed pursuant to Section 502(c) of the Bankruptcy Code and Bankruptcy Rule 3018(a) requesting temporary allowance of Claims or Interests in an amount which the Court deems proper for the purpose of accepting or rejecting the Plan and a Court Order so authorizing temporary allowance of such Claims or Interests for the purpose of accepting or rejecting the Plan. Such motions shall be filed and served no later than 4:30 p.m. prevailing Eastern Time on March 23. As reported in the Troubled Company Reporter on Feb. 22, 2012, the Debtors revised bankruptcy Reorganization Plan explained how there are more than $1 billion in claims, including 15 significant litigated disputes. As far as the assets are concerned, the primary hope for recovery by creditors comes from Majestic's surplus in two insurance subsidiaries. About Majestic Capital Headquartered in Poughkeepsie, New York City, Majestic Capital, Ltd., formerly known as CRM Holdings Ltd., has two wholly owned subsidiaries, Majestic USA and Twin Bridges, a Bermuda-based reinsurance company. Twin Bridges and Majestic Insurance, a downstream subsidiary of Majestic USA are the two principal insurance companies. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-36225) on April 29, 2011. Affiliates also sought Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 11-36221 thru 11-36234) on April 29, 2011. The Debtors have tapped Murphy & King, P.C. as their general bankruptcy counsel and Genova & Malin as their local counsel. The Debtors tapped Michelman & Robinson, LLP, as special counsel, and Day Seckler, LLP, as accountants and financial advisors. The Debtor disclosed $436,191,000 in assets and $421,757,000 in liabilities as of Dec. 31, 2010. Bruce F. Smith, Esq., and Steven C. Reingold, Esq., at Jager Smith P.C., serve as counsel to the Official Committee of Unsecured Creditors. J.H. Cohn LLP is the financial advisor. MARKET STREET: Must File Chapter 11 Plan by End of March -------------------------------------------------------- Rebecca Mowbray at The Times-Picayune reports that Bankruptcy Judge Elizabeth Magner told Market Street Properties LLC to file a reorganization plan by the end of March. According to the report, the company faces big hurdles in the coming months with filing the plan, getting other stakeholders to approve it, and lining up financing for its visions. If the redevelopment succeeds, it could give a lift to real estate development efforts in the area. If it fails, it could lose its building and have to convert the bankruptcy to liquidation. The report notes Cohen Financial is seeking financing for the company. The report relates that, if something didn't work out with the exit financing, Market Street Ventures, a company incorporated by Joseph Jaeger, chief executive of MCC Group construction, with other local investors, is the heir apparent. Mr. Jaeger's group provided $3.5 million financing for Market Street Properties to use while the company was reorganizing in Chapter 11 bankruptcy. The lender has a first lien on the property if the loan was not paid back. The agreement was extended beyond its original Aug. 1 expiration, and it just expired on Feb. 28, but the parties are continuing to work together on friendly terms. About Market Street Properties Oceanside, New York-based Market Street Properties, L.L.C., owns a roughly 500,000 square-foot power plant, two substations, and three parcels of vacant land. It filed for Chapter 11 bankruptcy (Bankr. E.D. La. Case No. 09-14172) on Dec. 23, 2009, represented by Christopher T. Caplinger, Esq., Joseph Patrick Briggett, Esq., and Stewart F. Peck, Esq., at Lugenbuhl Wheaton Peck Rankin & Hubbard, in New Orleans. Cupkovic Architecture LLC serves as the Debtor's architect; and Patrick J. Gros, CPA, as accountant. James E. Fitzmorris, Jr., serves as political consultant and advisor. The Company disclosed $52,404,026 in assets and $26,848,596 in liabilities as of the Chapter 11 filing. An official committee of unsecured creditors has not been appointed in the Debtor's case. MARKETING WORLDWIDE: Angus Gillis Discloses 9.8% Equity Stake ------------------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, Angus Allan Gillis and Josephine Maria MacPherson disclosed that, as of Dec. 19, 2011, they beneficially own 17,100,000 shares of common stock of Marketing Worldwide Corporation representing 9.88% of the shares outstanding. As previously reported by the TCR on Jan. 16, 2012, Mr. Gillis reported beneficial ownership of 4,050,000 common shares or 7.6% equity stake. A copy of the amended filing is available for free at http://is.gd/LQdGax About Marketing Worldwide Based in Howell, Michigan, Marketing Worldwide Corporation operates through the holding company structure and conducts its business operations through its wholly owned subsidiaries Colortek, Inc., and Marketing Worldwide, LLC. Marketing Worldwide, LLC, is a complete design, manufacturer and fulfillment business providing accessories for the customization of vehicles and delivers its products to large global automobile manufacturers and certain Vehicle Processing Centers primarily in North America. MWW operates in a 23,000 square foot leased building in Howell Michigan. Colortek, Inc., is a Class A Original Equipment painting facility and operates in a 46,000 square foot owned building in Baroda, which is in South Western Michigan. MWW invested approximately $2 million into this paint facility and expects the majority of its future growth to come from this business. The Company's balance sheet at Dec. 31, 2011, showed $1.50 million in total assets, $7.90 million in total liabilities, $3.50 million in Series A convertible preferred stock, and a $9.90 million total stockholders' deficiency. The Company reported a net loss of $2.27 million for the year ended Sept. 30, 2011, compared with a net loss of $2.34 million during the prior year. RBSM LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2011 financing results. The independent auditors noted that the Company has generated negative cash flows from operating activities, experienced recurring net operating losses, is in default of loan certain covenants, and is dependent on securing additional equity and debt financing to support its business efforts. MEDCLEAN TECHNOLOGIES: Robert Hockett Resigns from Board -------------------------------------------------------- Robert Hockett resigned from the board of directors of MedClean Technologies, Inc., on March 2, 2012. Mr. Hocketts's resignation is not the result of any disagreement with the Company on any matter relating to the Company's operations, policies or practices. "It has been a distinct pleasure to serve with the other members of the Board, and I wish you all every success, both personal as well as business. If I can be of assistance in a very limited way as an occasional "sounding board" I would be happy to," Mr. Hockett said. About MedClean Technologies Based in Bethel, Connecticut, MedClean Technologies, Inc., provides solutions for managing medical waste on site including designing, selling, installing and servicing on site (i.e. "in- situ") turnkey systems to treat regulated medical waste. The Company also reported a net loss of $3.69 million on $1.38 million of total revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $3.50 million on $707,450 of total revenues for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $1.01 million in total assets, $1.88 million in total liabilities, and a $874,617 total stockholders' deficit. As reported in the TCR on April 6, 2011, Child, Van Wagoner & Bradshaw, PLLC, in Salt Lake City, Utah, expressed substantial doubt about the MedClean Technologies' ability to meet its obligations and to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred substantial recurring losses. Bankruptcy Warning The Company has available cash and cash equivalents of approximately $102,515 at Sept. 30, 2011, which it intends to utilize for working capital purposes and to continue developing its business. To supplement its cash resources, the Company has secured alternative financing arrangements with two investment entities. While the acquisition of cash through these programs is related to company performance, the Company believes it will have access to the necessary funds for its to execute its business plan. However, the Company continues to incur significant operating losses that will result in the reduction of its cash position. The Company cannot assure that it will be able to continue to obtain funding through the alternative financing arrangements and the lack thereof would have a material adverse impact on its business. Moreover, any equity funding could be substantially dilutive to existing stockholders. The aforementioned factors raise doubt about the Company's ability to continue as a going concern. In the event the Company is unable to continue as a going concern, it may pursue a number of different options, including, but not limited to, filing for protection under the federal bankruptcy code. MAUI INTERIORS: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Maui Interiors, Ltd. P.O. Box 2278 Wailuku, HI 96733 Bankruptcy Case No.: 12-00486 Chapter 11 Petition Date: March 7, 2012 Court: United States Bankruptcy Court District of Hawaii (Honolulu) Judge: Robert J. Faris Debtor's Counsel: Ramon J. Ferrer, Esq. LAW OFFICE OF RAMON J. FERRER 135 S. Wakea Ave., Suite 204 Kahului, HI 96732 Tel: (808) 891-1414 Fax: (808) 877-3682 E-mail: ramonlawfirm@hotmail.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/hib12-00486.pdf The petition was signed by Dutch H. Akana, president. MELANIE SQUARE: Files for Chapter 11 Bankruptcy Protection ---------------------------------------------------------- Phil Wright at East Oregonian reports that Neal Jones of Arizona, which owns Melanie Square Limited Liability Co., filed on March 7, 2012, for bankruptcy protection in Portland, Oregon. This is the Company's second Chapter 11 filing in three years. Melanie Square is a 7-acre commercial property in Pendleton, Portland, that is home to Rite Aid, a bowling alley and other businesses. According to the report, Mr. Jones said the Company sought Chapter 11 to renegotiate repayment of a $4.1 million loan to Farmers Insurance Group Federal Credit Union, Melanie Square's primary lender. Gilbert, Arizona-based Melanie Square first filed for Chapter 11 protection in September 2009 (Bankr. D. Ore. Case No. 09-37458). Judge Elizabeth L. Perris presided over the 2009 case. James Ray Streinz, Esq., represented the Debtor. The Debtor estimated between $1 million and $10 million in assets and debts. MELANIE SQUARE: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Melanie Square, LLC 3338 East Vallejo Court Gilbert, AZ 85298 Bankruptcy Case No.: 12-31534 Chapter 11 Petition Date: March 7, 2012 Court: United States Bankruptcy Court District of Oregon Judge: Trish M. Brown Debtor's Counsel: Tara J. Schleicher, Esq. FARLEIGH WADA WITT 121 SW Morrison St #600 Portland, OR 97204 Tel: (503) 228-6044 E-mail: tschleicher@fwwlaw.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 nine largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/orb12-31534.pdf The petition was signed by Neal Jones, managing member. MOHAWK INDUSTRIES: Moody's Affirms 'Ba1' Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service revised Mohawk Industries, Inc.'s rating outlook to positive from stable due to the expectation that Mohawk's operating performance, credit metrics and credit profile will continue improving in the near to mid-term. All ratings (including the Ba1 Corporate Family Rating) were affirmed. "We expect Mohawk to continue to pass through price increases in line with other floor covering companies," said Kevin Cassidy, Senior Credit Officer at Moody's Investors Service. "This, coupled with volume expansion should result in revenue increases of around three to five percent this year," he noted. Margins are expected to be soft in the first half of 2012, but improve in the second half. The following ratings were affirmed/LGD assessments revised: Corporate Family Rating at Ba1; Probability of Default Rating at Ba1; $400 million ($336 million outstanding) 7.20% senior unsecured notes due April 15, 2012 at Ba2 (LGD 5, 83% from 71%); $900 million 6.125% senior unsecured notes due 2016 at Ba2 (LGD 5, 83% from 71%); Speculative Grade Liquidity rating at SGL-1 Ratings Rationale The Ba1 Corporate Family Rating reflects Mohawk's leading market share in floor covering (carpet, floor tiling and laminate), strong cash flow and its generally conservative financial policies. The Corporate Family Rating also reflects the size of the company with more than $5.6 billion of revenue and significant geographic diversification throughout the U.S. and in Europe, Mexico and China. Mohawk management has been focused in recent years on reducing expenses in order to make its cost structure more efficient, which helps it offset high raw material prices. Moody's expects revenue to modestly increase in 2012 due to promising signs in the macro economy and demand expansion in both the commercial and residential market. The rating is constrained by uncertain US housing market trends and by the reluctance of consumers to pay higher prices, especially when gas prices are increasing rapidly. Nonetheless, Moody's believes Mohawk's credit metrics will improve in 2012 as demand increases, operations remain efficient, and debt is reduced. The positive outlook reflects Moody's belief that that residential and commercial floor covering demand will continue improving over the near to medium term, helping Mowhawks' financial performance. Further debt repayment and credit metric improvement are considered in the outlook. The rating could be upgraded if residential and commercial demand keeps improving and the macro economy continues to stabilize. Certain credit metrics also need to improve. For example, debt/EBITDA needs to approach 2.5 times (currently 2.9 times) and EBITA margins need to approach double digits (currently 8.1%). For the debt/ EBITDA upgrade threshold to be met, EBITDA needs to increase by about $135 million or debt needs to decrease by around $335 million. The rating could be downgraded if discretionary consumer spending resumes a rapid and significant decline, which Moody's does not expect, or operating performance otherwise weakens. Key credit metrics which could drive a downgrade would be debt/EBITDA sustained above 4 times, retained cash flow to net debt falling to the low to mid teens (currently about 30%) for a sustained period, or EBITA margins in the low single digits. A rapid deterioration in liquidity or adoption of a more aggressive financial policy could also trigger a downgrade. In order for the debt/EBITDA to rise above 4 times, EBITDA would need to decrease by about $200 million or debt increase by approximately $800 million. The principal methodologies used in this rating were Global Consumer Durables 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. Headquartered in Calhoun, Georgia, Mohawk Industries is a leading producer of floor covering products for residential and commercial applications in the U.S. Mohawk products includes brands such as Mohawk, Unilin, Karastan, Ralph Lauren, Lees, Bigelow, Dal-Tile and American Olean. Revenue for the year ended December 31, 2011, approximated $5.6 billion. MONTANA ELECTRIC: Rejects Great Falls City's Request for Rate Cut ----------------------------------------------------------------- Richard Ecke at Tribune reports that an attorney for Southern Montana Electric Generation and Transmission Cooperative Inc. has rejected a request from the city of Great Falls for a rate cut. According to the report, John Parks of Denver, attorney for appointed trustee Lee Freeman, told the city's legal team in an e-mail the money is needed elsewhere. Mr. Parks said Mr. Freeman will use the money to cover administrative costs and later might use it to pay down the co-op's substantial debts. The report relates Mr. Parks told the city's lawyers Mr. Freeman does not need the city's permission to buy power for the coop's members. He added Mr. Freeman plans to ask the federal bankruptcy court to reject the PPL contract. However, PPL can still file a claim for damages with the court for the loss of the contract. Mr. Parks said the talks with PPL are confidential, adding it is too early to say how the PPL talks will affect the city. The report notes the city of Great Falls' Electric City Power arm stood about $5.4 million in the red at the end of January, and the city's losses could grow depending on how the bankruptcy case turns out. About Southern Montana Electric Based in Billings, Montana, Southern Montana Electric Generation and Transmission Cooperative, Inc., was formed to serve five other electric cooperatives. The city of Great Falls later joined as the sixth member. Including the city, the co-op serves a population of 122,000. In addition to Great Falls, the service area includes suburbs of Billings, Montana. Montana Electric filed for Chapter 11 bankruptcy (Bankr. D. Mont. Case No. 11-62031) on Oct. 21, 2011. Montana Electric estimated assets of $100 million to $500 million and estimated debts of $100 million to $500 million. Timothy Gregori signed the petition as general manager. Jon E. Doak, Esq., at Doak & Associates, P.C., in Billings, Montana, serves as the Debtor's counsel. In December 2011, Montana Electric also sought permission to employ the Goodrich Law Firm, P.C., as general co-counsel. Also in December 2011, Lee A. Freeman was appointed as Chapter 11 trustee. After filing for reorganization in October, the co-op agreed to a request for appointment of a Chapter 11 trustee. Mr. Freeman retained Horowitz & Burnett, P.C., as his counsel and Waller & Womack, P.C., as local counsel. The United States Trustee for Region 18 has appointed an Official Committee of Unsecured Creditors in the case. MT. ZION: Court Okays Cash Collateral Use Until May 1 ----------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has granted Mt. Zion Limited Partnership's request for authorization to use cash collateral until May 1, 2012. The Debtor will use cash collateral to fund its Chapter 11 case, pay suppliers and other parties. As reported by the Troubled Company Reporter on May 6, 2010, PNC Bank, National Association, asserts a senior position mortgage lien and claim against the Debtor's residential apartment project in Florence, Kentucky, known as Woodspring Apartments, which purportedly secures a mortgage indebtedness of approximately $28,850,000. The bank also asserts a security interest in and lien upon the rents being generated at the property. The Debtor is authorized to grant certain liens and provide adequate protection and other relief to PNC Bank. About Mt. Zion Limited Partnership Lake Forest, Illinois-based Mt. Zion Limited Partnership owns and operates a residential apartment project located in Florence, Kentucky, known as Woodspring Apartments. The Company filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 10-18075) on April 23, 2010. David K. Welch, Esq., at Crane Heyman Simon Welch & Clar, assists the Debtor in its restructuring effort. The Company estimated its assets and debts at $10 million to $50 million as of the Petition Date. MUELLER WATER: Moody's Says U.S. Pipe Sale No Impact on 'B3' CFR ---------------------------------------------------------------- Moody's Investors Service commented that Mueller's announcement that it was divesting U.S. Pipe has no immediate impact on the company's B3 corporate family rating, SGL-2 speculative grade liquidity assessment, or stable ratings outlook. The principal methodology used in rating Mueller was the Global Manufacturing Industry Methodology, published December 2010. Other methodologies used include Loss Given Default for Speculative Grade Issuers in the US, Canada, and EMEA, published June 2009. Headquartered in Atlanta, Georgia, Mueller Water Products, Inc. manufacturers and markets products and services that are used in the transmission, distribution , and measurement of drinking water and in water treatment facilities. Revenues for the trailing 12 months ended December 31, 2011, including those of the to-be- divested operations, were $1.36 billion. NEBRASKA BOOK: Files New Plan Cutting Out Subordinated Debt ----------------------------------------------------------- Nebraska Book Co. filed a revised Chapter 11 reorganization plan to take the place of the prepackaged plan the company was unable to finance. The Debtor did not move forward with the original iteration of the prepackaged plan because it failed to obtain the required $250 million in outside financing. The plan would have paid off first- and second-lien debt in full while giving the new stock mostly to subordinated noteholders of the operating company and holders of notes issued by the holding company. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the new plan provides for these terms: * Holders of the existing $200 million in second lien debt will receive new stock plus a new $100 million second-lien note. Second lien noteholders are projected to recover 81% * Noteholders will backstop a new $80 million term loan to finance the plan. * Holders of $175 million in 8.625 percent subordinated notes will receive warrants for 5 percent of the new stock with an exercise priced based on a $100 million equity valuation. Subordinated noteholders can have warrants for another 5 percent of the new equity based on a $150 million equity valuation. The projected recovery on the subordinated notes is 1.5 percent. * General unsecured creditors are offered 1.5 percent in cash. * Existing shareholders and holders of $77 million in notes issued by the holding company are to receive nothing. The bankruptcy court scheduled an April 13 hearing to approve the disclosure statement explaining the plan. There will be a hearing on March 22 to approve the agreement. 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. NORTH EAST TRANSFER: Files for Chapter 11 Bankruptcy Protection --------------------------------------------------------------- Citizensvoice.com reports that North East Transfer Inc., which operates a trucking company, has filed for Chapter 11 protection in U.S. Bankruptcy Court for the Middle District of Pennsylvania. The company did not file an itemized financial report, but estimates assets at $100,000 to $500,000 and liabilities of $500,000 to $1 million. The report notes that North East filed for Chapter 11 protection in July 2010, but the case was dismissed in February 2011 on the objections of creditors. NRG ENERGY: Moody's Issues Summary Credit Opinion ------------------------------------------------- Moody's Investors Service issued a summary credit opinion on NRG Energy, Inc. and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for NRG Energy, Inc.. Moody's current ratings on NRG Energy, Inc. are: LT Corporate Family Ratings domestic currency ratings of Ba3 Senior Secured Bank Credit Facility domestic currency ratings of Baa3 Senior Unsecured domestic currency ratings of B1 Speculative Grade Liquidity Rating ratings of SGL-1 LGD Senior Secured Bank Credit Facility domestic currency ratings of 11 - LGD2 LGD Senior Unsecured domestic currency ratings of 67 - LGD4 Probability of Default ratings of Ba3 Ratings Rationale NRG's Ba3 Corporate Family Rating (CFR) reflects the relatively strong historical credit metrics based upon margins that are underpinned by various intermediate term hedges or contracts. For the last three fiscal years, Moody's calculates the ratio of CFO pre-W/C (cash flow) to debt averaged 20%, cash flow coverage of interest expense averaged 3.8x, and the ratio of free cash flow to debt averaged nearly 10%. While these historical financial metrics strongly position NRG in the "Ba" rating category, Moody's anticipates these cash flow credit metrics will weaken as the existing hedges expire and are replaced with lower margin arrangements, and as growth and maintenance capital requirements for the corporation increase substantially over the next few years. Moody's anticipates that consolidated credit metrics will weaken materially from historical levels given the substantial increase in debt that will occur to fund much of this growth capital investment in solar generation. Moody's fully expects the company's consolidated credit metrics to return to levels consistent with a Ba CFR by 2014 when the company's three largest solar investments are completed. To that end, the rating acknowledges the view that when these investments are completed, long-term cash flow predictability should be enhanced and gradual debt reduction should occur through the amortization of principal that is expected to be incorporated in the financing documents. Rating Outlook The stable rating outlook reflects Moody's expectation that the company will be able to manage reasonably well through the down commodity cycle with internal funds being able to satisfy required maintenance and environmental related capital requirements in most years. The stable rating outlook recognizes that while consolidated credit metrics over the next three years will weaken due to solar related investments, consolidated financial performance should bounce back beginning in 2014 with the completion of the largest projects. The stable rating outlook further anticipates that the company will maintain a fairly balanced capital allocation program even with the anticipated flexibility that will be gained from the expected termination of the indenture following the refinancing of the company's 2016 and 2017 senior unsecured bonds along with modifications to the company's credit facilities. What Could Change the Rating - Up In light of the substantial capital investment program being pursued by the company and the continued weak market for unregulated power in most regions, limited prospects exist for the ratings to be upgraded in the near-term. However, to the extent that management is able to complete construction of numerous solar project investments on a timely basis and unregulated power margins show modest levels of improvement, the ratings could be upgraded, given the high degree of cash flow certainty that the solar investments are expected to represent for the company. What Could Change the Rating - Down The rating could be downgraded should material problems surface with the company's growth strategies, if weaker than expected market conditions persist for several years across NRG's generation fleet or if the company moves substantially away from a balanced capital allocation program given the flexibility that will surface due to the anticipated termination of and modification to various financing documents. The methodologies used in this rating were Unregulated Utilities and Power Companies published in August 2009, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. NUTRA PHARMA: Board OKs Bruno Sartori as Chief Financial Officer ---------------------------------------------------------------- Nutra Pharma Corp.'s Board of Directors unanimously approved the appointment of Bruno Sartori as the Company's Chief Financial Officer. Mr. Sartori is 56 years of age. From August 2010 to March 6, 2012, Mr. Sartori acted as the Company's full-time consultant regarding accounting matters. From April 1995 to November 2005 and from January 2008 to July 2010, Mr. Sartori operated his own accounting practice. From December 2005 to December 2007, Mr. Sartori was the Chief Financial Officer of Trend USA, Ltd and affiliates, a subsidiary of Trend Group, S.P.A, an international manufacturer, seller and distributor of agglomerates, glass mosaics and tiles. Mr. Sartori has a total of 27 years of accounting experience and has been licensed as a Certified Public Accountant in Florida since October 1985. In May 1983, Mr. Sartori graduated from Florida Atlantic University with an accounting degree. About Nutra Pharma Coral Springs, Florida-based Nutra Pharma Corp. is a holding company that owns intellectual property and operations in the biotechnology industry. Nutra Pharma incorporated under the laws of the state of California on Feb. 1, 2000, under the original name of Exotic-Bird.com. Through its wholly-owned subsidiaries, ReceptoPharm, Inc., and Designer Diagnostics, Inc., the Company conducts drug discovery research and development activities. In October 2009, the Company launched its first consumer product called Cobroxin, an over-the- counter pain reliever designed to treat moderate to severe chronic pain. In May 2010, the Company launched its second consumer product called Nyloxin, an over-the-counter pain reliever that is a stronger version of Cobroxin and is designed to treat severe chronic pain. The Company reported a net loss of $1.9 million for the nine months ended Sept. 30, 2011, compared with a net loss of $2.3 million for the same period of 2010. The Company's balance sheet at Sept. 30, 2011, showed $1.5 million in total assets, $3.9 million in total liabilities, and a stockholders' deficit of $2.4 million. Kingery & Crouse, P.A., in Tampa, Florida, expressed substantial doubt about Nutra Pharma's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has no cash as of Dec. 31, 2010, has suffered recurring losses from operations and has ongoing requirements for additional capital investment. NV ENERGY: Moody's Issues Summary Credit Opinion ------------------------------------------------ Moody's Investors Service issued a summary credit opinion on NV Energy Inc. and includes certain regulatory disclosures regarding its ratings. The release does not constitute any change in Moody's ratings or rating rationale for NV Energy Inc. and its affiliates. Moody's current ratings on NV Energy Inc. and its affiliates are: Senior Unsecured domestic currency ratings of Ba2 LT Issuer Rating ratings of Ba2 Senior Unsec. Shelf domestic currency ratings of (P)Ba2 Subordinate Shelf domestic currency ratings of (P)Ba3 Nevada Power Company First Mortgage Bonds domestic currency ratings of Baa2 Senior Secured domestic currency ratings of Baa2 LT Issuer Rating ratings of Ba1 Senior Secured Shelf domestic currency ratings of (P)Baa2 Senior Unsec. Shelf domestic currency ratings of (P)Ba1 Pref. Shelf domestic currency ratings of (P)Ba2 Backed First Mortgage Bonds domestic currency ratings of A3/Baa2 Underlying First Mortgage Bonds domestic currency ratings of Baa2 Sierra Pacific Power Company First Mortgage Bonds domestic currency ratings of Baa2 LT Issuer Rating ratings of Ba1 Senior Secured Shelf domestic currency ratings of (P)Baa2 Senior Unsec. Shelf domestic currency ratings of (P)Ba1 Pref. Shelf domestic currency ratings of (P)Ba2 Backed First Mortgage Bonds domestic currency ratings of Baa2 Underlying First Mortgage Bonds domestic currency ratings of Baa2 Ratings Rationale NVE's Ba2 rating reflects its position as the parent holding company of two Nevada based regulated electric utilities that form the core of the enterprise cash flow generation. There is a moderate amount of debt (approximately $507 million, or 10% of total consolidated debt of the company) at the NVE level that is serviced solely by upstreamed dividends from its subsidiaries. In addition, there is no up-stream guarantee afforded to this debt and as such, Moody's currently maintains a one-notch differential between the unsecured rating of NVE and that of its subsidiaries. The recent upgrade for all levels of the NVE corporate family, was reflective of a number of considerations including notable improvement in credit metrics across, successful construction of new owned generation facilities, bourgeoning stabilization of the Nevada economy, and continued maintenance of good internal and external liquidity. This trend of sound financial performance has been helped by credit supportive decisions from the PUCN and effective cost controls. Past rating concerns including weak consolidated credit metrics at NVE, material reliance on purchased power and a previously sizable construction plan have, to some extent, moderated. In terms of credit metrics the utility subsidiaries, NPC and SPPC, currently exhibit a low-mid range "Baa" profile while NVE is just marginally investment-grade, reporting CFO (pre w/c) to debt of 14.7% in 2010; however, included in these calculations is cash flow "over- recovered" from customers in 2009-2010 as energy prices were falling; a situation that Moody's expects to partially reverse in 2011-2012. Although this volatility in cash flows is expected to be carefully managed it will remain a key focus of the rating agency going forward. Rating Outlook NVE's rating outlook is stable, reflecting a reasonable historical financial profile, helped by a more supportive relationship with the PUCN and effective cost controls. The stable outlook is also premised on continuation of a conservative strategy to fund any new external financing needs that may arise within the family. What Could Change the Rating - Up Strength in the performance of its subsidiaries that results in NVE achieving consolidated CFO (pre w/c) coverage of interest and debt metrics above 3x and 12%, respectively, on a sustainable basis, could have positive effects on the outlook or ratings. What Could Change the Rating - Down Although unlikely at this time, downward rating pressure would be introduced if there is an unexpected and material new debt issuance at NVE or the company diverges from its past practice of issuing common equity to balance any new utility debt issues. Also, a return to a more contentious regulatory environment would be viewed negatively, especially if such an environment were to result in lower key credit metrics (e.g., if CFO (pre w/c) to debt and CFO (pre w/c) interest coverage ratios falling below 10% and 2.5x, respectively, for an extended period). The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in August 2009. OPA HOSPITALITY: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: OPA Hospitality, Inc. 125 Airtex Drive Houston, TX 77090 Bankruptcy Case No.: 12-31819 Chapter 11 Petition Date: March 6, 2012 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Marvin Isgur Debtor's Counsel: Rakhee V. Patel, Esq. PRONSKE & PATEL 2200 Ross Avenue, Suite 5350 Dallas, TX 75201 Tel: (214) 658-6500 Fax: (214) 658-6509 E-mail: rpatel@pronskepatel.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Upendra Patel, president. PANELTECH INTERNATIONAL: Seeks Chapter 11 Bankruptcy Protection --------------------------------------------------------------- KXRO Newsradio reports that Paneltech International Holdings Inc. and Paneltech Products Inc. have filed separate Chapter 11 petitions. Documents received by KXRO and signed by the Paneltech Board of Directors indicate that $2.8 million are being owed to creditors, including $700,000 to Anchor Bank and $3500,000 in a disputed claim to Starbucks. KXRO reports that the Paneltech Board of Directors voted on the filing in a special meeting on March 6 and stated that filing Chapter 11 is "in the best interest for the Company." KXRO says CEO Leroy Nott and CFO Scott Olmstead were unavailable for comment. Paneltech -- http://paneltechintl.com/-- makes life protection and green composite materials. PANELTECH INT'L: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Paneltech International Holdings, Inc. fka Charleston Basics, Inc. 2999 John Stevens Way Hoquiam, WA 98550 Bankruptcy Case No.: 12-41476 Chapter 11 Petition Date: March 7, 2012 Court: United States Bankruptcy Court Western District of Washington (Tacoma) Judge: Brian D. Lynch Debtor's Counsel: Amit D. Ranade, Esq. HILLIS CLARK MARTIN & PETERSON P.S. 1221 2nd Ave Ste 500 Seattle, WA 98101 Tel: (206) 623-1745 E-mail: adr@hcmp.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Paneltech Products, Inc. 12-41477 03/07/2012 Assets: $1,000,001 to $10,000,000 Debts: $1,000,001 to $10,000,000 The petitions were signed by Leroy Nott, president and CEO. A list of Paneltech International's two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb12-41476.pdf A list of Paneltech Products' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb12-41477.pdf PARK PLASTICS: Has Until July 19 to File Chapter 11 Plan -------------------------------------------------------- Michael Lauzon at Plastic News reports that PLS Inc., dba Park Plastics Products, has until July 19 to file a Chapter 11 plan of reorganization. The report notes that a hearing will be held in court for the Northern District of Indiana on March 19 for the use of cash collateral to continue operating the business. According to the report, the Company's first meeting of creditors will be held March 21. Non-governmental creditors are to provide proof of claim by June 19. Court records state PLS has debt between $1 million and $10 million and assets between $100,001 and $500,000. PLS stated in its court filing that it expects funds will be available to unsecured creditors. Based in Fort Wayne, Indiana, PLS Inc., dba Park Plastic Products, filed for Chapter 11 protection on Feb. 22, 2012 (Bankr. N.D. Ind. Case No. 12-10409). Judge Robert E. Grant presides over the case. Daniel J. Skekloff, Esq., Sarah Mustard Heil, Esq., and Scot T. Skekloff, Esq., at Skekloff, Adelsperger & Kleven, LLP, represent the Debtor. The Debtor estimated between $100,000 and $500,000 in assets, and between $1 million and $10 million in debts. PEMBROOK PINES: Case Summary & 14 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Pembrook Pines Mass Media, N.A., Corp. dba WVIN-FM dba WABH-AM dba WQRW-FM 1705 Lake Street Elmira, NY 14901 Bankruptcy Case No.: 12-20379 Chapter 11 Petition Date: March 8, 2012 Court: United States Bankruptcy Court Western District of New York (Rochester) Judge: Michael J. Kaplan Debtor's Counsel: Camille W. Hill, Esq. BOND, SCHOENECK & KING, PLLC One Lincoln Center Syracuse, NY 13202-1355 Tel: (315) 218-8627 E-mail: chill@bsk.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 14 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nywb12-20379.pdf The petition was signed by Robert J. Pfuntner, president and CEO. PENTAIR INC: Moody's Withdraws 'Ba1' Sr. Unsecured Issuer Rating ---------------------------------------------------------------- Moody's Investors Service affirmed the Baa3 senior unsecured debt rating of Pentair Inc. The company's rating outlook remains stable. Moody's has also affirmed and withdrawn Pentair's Ba1 senior unsecured issuer rating. Ratings Rationale Moody's has withdrawn the rating for its own business reasons. Pentair's Baa3 debt rating favorably captures the company's strong market positions in both its Water (pumps, filters and pool equipment) and Technical Products (enclosures and thermal management) groups. As well, the company has a global footprint, several leading brands, and good amount of recurring replacement revenues. These attributes help produce consistently strong levels of free cash flow, which the company has historically used to help fund periodic acquisitions and subsequent deleveraging. Key rating constraints include the company's willingness to temporarily increase balance sheet leverage to fund acquisitions coupled with its meaningful exposure to cyclical end markets, formidable competition and volatile commodity prices. Following the acquisition of Clean Process Technologies ("CPT") in May 2011, Pentair's financial leverage remains elevated for the Baa3 rating category (adjusted Debt/ EBITDA of 3.3x), but Moody's expects earnings growth and debt reduction from free cash flow generation will reduce this metric towards 2.5x within the next 12 to 18 months. The stable ratings outlook incorporates Moody's expectation that Pentair will continue to direct its free cash flow to debt reduction in order to restore its financial strength following the debt-financed acquisition of CPT. For Pentair's rating to move higher the company would need to sustain its EBITA margin towards 13%, Free Cash Flow to Debt of greater than 15% and Debt/EBITDA below 2.5x. Downward ratings movement could occur should Pentair sustain its EBITA margins below 11%, Free Cash Flow to Debt below 10% and Debt/EBITDA above 3x. The principal methodology used in rating Pentair Inc. was the Global Manufacturing Industry Methodology published in December 2010. Headquartered in Minneapolis, Minnesota, Pentair is a global leader in pumps (flow), filtration and pool equipment. Pentair also manufactures enclosures that protect sensitive controls, components, and thermal management products. Revenues in 2011 totaled $3.5 billion. PETROQUEST ENERGY: S&P Gives B Corp. Credit Rating, Outlook Stable ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its recovery rating on Lafayette, La.-based PetroQuest Energy Inc.'s senior unsecured notes to '3' from '4', indicating its expectation of meaningful (50% to 70%) recovery in the event of a payment default. The 'B' issue rating on the senior unsecured notes remains unchanged. "The improved recovery expectation reflects a review of PetroQuest's Dec. 31, 2011, PV-10 value run at our recovery price assumptions of $45 per barrel West Texas Intermediate crude oil and $4 per mmBtu natural gas," said Standard & Poor's credit analyst Paul Harvey. "The corporate credit rating and stable outlook on exploration and production company PetroQuest Energy Inc. reflects our view of its 'vulnerable' business risk and 'aggressive' financial risk, as our criteria define these terms. The ratings incorporate PetroQuest Energy's participation in the highly cyclical, capital-intensive oil and natural gas exploration and production (E&P) industry, its limited scale of operations, and its meaningful exposure to weak natural gas prices. Our ratings on PetroQuest also reflect our current expectation that the company would not materially outspend cash flows, resulting in low debt leverage for the rating category and 'adequate' near-term liquidity," S&P said. Ratings List PetroQuest Energy Inc. Corporate credit rating B/Stable/-- To From Issue Rating Unchanged; Revised Recovery Rating Senior unsecured debt B B Recovery rating 3 4 PFF BANCORP: Sets April 25 Plan Confirmation Hearing ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that PFF Bancorp Inc. will have a confirmation hearing on April 25 for approval of the reorganization plan after the bankruptcy judge approved the explanatory disclosure statement on March 8. As reported in the Troubled Company Reporter on Feb. 16, 2012, PFF Bancorp Inc. filed a proposed Chapter 11 plan of liquidation on Feb. 8. The plan is based in part on a settlement with the Federal Deposit Insurance Corp. where PFF will retain $18.6 million in tax refunds. Pension Benefit Guaranty Corp. will recover 45 percent on its claims while general unsecured creditors might see 11 percent, according to the disclosure statement explaining the plan. Holders of trust-preferred securities are in for a payday worth less than 1 percent. About PFF Bancorp PFF Bancorp Inc. -- http://www.pffbank.com/-- was a non- diversified unitary savings and loan holding company within the meaning of the Home Owners' Loan Act with headquarters formerly located in Rancho Cucamonga, California. Bancorp is the direct parent of each of the remaining Debtors. Prior to filing for bankruptcy, Bancorp was also the direct parent of PFF Bank & Trust, a federally chartered savings institution, and said bank's subsidiaries. PFF Bank & Trust was taken over by regulators in November 2008, with the deposits transferred by the Federal Deposit Insurance Corp. to U.S. Bank NA. PFF Bancorp Inc. and its affiliates sought Chapter 11 protection on Dec. 5, 2008 (Bankr. D. Del. Case No. 08-13127 to 08-13131). Chun I. Jang, Esq., and Paul N. Heath, Esq., at Richards, Layton & Finger, P.A., serve as the Debtors' bankruptcy counsel. Kurtzman Carson Consultants LLC serves as the Debtors' claims agent. Jason W. Salib, Esq., at Blank Rome LLP, represents the official committee of unsecured creditors as counsel. PPL CORPORATION: Moody's Issues Summary Credit Opinion ------------------------------------------------------ Moody's Investors Service issued a summary credit opinion on PPL Corporation and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for PPL Corporation and its affiliates. Moody's current ratings on PPL Corporation and its affiliates are: LT Issuer Rating domestic currency ratings of Baa3 PPL Electric Utilities Corporation First Mortgage Bonds domestic currency ratings of A3 Senior Secured domestic currency ratings of A3 Senior Unsecured Bank Credit Facility domestic currency ratings of Baa2 LT Issuer Rating ratings of Baa2 Preference stock domestic currency ratings of Ba1 Senior Secured Shelf domestic currency ratings of (P)A3 Pref. Shelf domestic currency ratings of (P)Ba1 Preference Shelf domestic currency ratings of (P)Ba1 Commercial Paper domestic currency ratings of P-2 BACKED Senior Secured domestic currency ratings of A3 Underlying Senior Secured domestic currency ratings of A3 LG&E and KU Energy LLC Senior Unsecured domestic currency ratings of Baa2 LT Issuer Rating ratings of Baa2 Kentucky Utilities Co. First Mortgage Bonds domestic currency ratings of A2 Senior Unsecured Bank Credit Facility domestic currency ratings of Baa1 LT Issuer Rating ratings of Baa1 Commercial Paper domestic currency ratings of P-2 Louisville Gas & Electric Company First Mortgage Bonds domestic currency ratings of A2 Senior Unsecured Bank Credit Facility domestic currency ratings of Baa1 LT Issuer Rating ratings of Baa1 Commercial Paper domestic currency ratings of P-2 PPL Capital Funding, Inc. BACKED Senior Unsecured domestic currency ratings of Baa3 BACKED Junior Subordinate domestic currency ratings of Ba1 BACKED Senior Unsec. Shelf domestic currency ratings of (P)Baa3 BACKED Subordinate Shelf domestic currency ratings of (P)Ba1 PPL Energy Supply, LLC Senior Unsecured domestic currency ratings of Baa2 Senior Unsecured Bank Credit Facility domestic currency ratings of Baa2 Senior Unsec. Shelf domestic currency ratings of (P)Baa2 Commercial Paper domestic currency ratings of P-2 Ratings Rationale PPL's rating is reflective of the consolidated credit profile which has been transformed to a more diversified, more rate regulated platform from a largely commodity driven, more regionally focused operation. Moody's estimates that at least 70% of consolidated results will be provided by predictable, rate regulated businesses from three different jurisdictions, several of which have an above-average regulatory profile. To that end, the rating incorporates the reduced reliance that PPL will have on earnings and dividends derived from its unregulated, commodity business. The rating recognizes the growing importance that the company's Kentucky operations will have on future results which include plans to make substantial environmental capital investments. Moody's observes that the transition to market rates in Pennsylvania has been completed for all of the state's electric utilities, and that the company's focus is centered on infrastructure investment, through the replacement of an aging transmission and distribution system coupled with new transmission and smart grid investments. Rating Outlook The stable outlook for PPL reflects Moody's view that with the completion of the LKE and PPL WEM acquisitions, PPL's credit quality has been fortified through the reduction in overall business risk. The stable outlook further reflects Moody's view that the company's position as owner of low-cost, strategically placed, primarily base-load generating assets will remain unchanged in the markets that it operates, even though these assets' cash flow generating capacity is expected to be lower over the next several years. While Moody's anticipates PPL's management to manage through this down cycle at PPL Supply by reducing this subsidiary's debt, to the extent that Moody's were to take a negative rating action at PPL Supply given its relatively weak position in its rating category, the probability of a similar rating action occurring at PPL or one of its other subsidiaries has been greatly reduced, given the risk profile transformation that has occurred from the LKE and PPL WEM acquisitions. What Could Change the Rating - Up While Moody's views these acquisitions as transforming events which could form the basis for positive rating momentum at PPL, the prospects for the company to be upgraded in the near -term remain somewhat limited in light of the execution risks in integrating these two large acquisitions at the same time coupled with some of the market-based issues currently facing the company's unregulated business. However, to the extent that the integration process at both LKE and PPL WEM meets the company's expectation and PPL continues to take actions to lower overall enterprise risk and leverage over time, PPL's rating could be upgraded. What Could Change the Rating - Down Conversely, the prospects for downward rating action in the intermediate term are very limited, as Moody's views PPL as being strongly positioned at the current rating category and fairly resilient to withstand downward pressure in the family given the diversified set of rate regulated operations at the company and the reduced exposure to the commodity business. The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in August 2009. PRECISION OPTICS: Austin Marxe Equity Stake Down to 39.7% --------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Austin W. Marxe and David M. Greenhouse disclosed that, as of Feb. 29, 2012, they beneficially own 610,401 shares of common stock of Precision Optics, Corp., representing 39.7% of the shares outstanding. As previously reported by the TCR on Jan. 13, 2012, the Reporting Persons reported beneficial ownership of 1,074,401 common shares or 53.7% equity stake. A copy of the amended filing is available for free at: http://is.gd/KHW4fE About Precision Optics Headquartered in Gardner, Massachusetts, Precision Optics Corporation, Inc., has been a developer and manufacturer of advanced optical instruments since 1982. The Company designs and produces high-quality micro-optics, medical instruments and other advanced optical systems. The Company's medical instrumentation line includes laparoscopes, arthroscopes and endocouplers and a world-class product line of 3-D endoscopes for use in minimally invasive surgical procedures. The Company reported a net loss of $1.05 million for the fiscal year ended June 30, 2011, compared with a net loss of $660,882 in the preceding year. Precision Optics' balance sheet at Dec. 31, 2011, showed $1.67 million in total assets, $501,023 in total liabilities, all current, and $1.17 million in total stockholders' equity. As reported in the TCR on Sept. 27, 2010, Stowe & Degon LLC, in Westborough, Mass., expressed substantial doubt about Precision Optics' ability to continue as a going concern, following the Company's results for the fiscal year ended June 30, 2010. The independent auditors noted that the Company has suffered recurring net losses and negative cash flows from operations. PUGET SOUND: Moody's Issues Summary Credit Opinion -------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Puget Sound Energy, Inc. and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Puget Sound Energy, Inc. Moody's current ratings on Puget Sound Energy, Inc. are: First Mortgage Bonds domestic currency ratings of A3 Senior Secured domestic currency ratings of A3 Senior Unsecured Bank Credit Facility domestic currency ratings of Baa2 LT Issuer Rating domestic currency ratings of Baa2 Senior Secured Shelf domestic currency ratings of (P)A3 Senior Unsec. Shelf domestic currency ratings of (P)Baa2 Commercial Paper domestic currency ratings of P-2 Backed First Mortgage Bonds domestic currency ratings of A3 BACKED Senior Secured domestic currency ratings of A3 BACKED Junior Subordinate domestic currency ratings of Baa3 Underlying Senior Secured domestic currency ratings of A3 Ratings Rationale Underpinning Puget Energy's rating is the ownership of its operating subsidiary Puget Sound Energy. PSE's Baa2 senior unsecured rating reflects its relatively low risk utility operations, collaborative regulatory relationships and recent credit supportive rate case outcomes, efficient handling of electric and gas supply needs, solid credit metrics, and access to its own committed bank credit facilities plus indirect access to the parent's committed capital expenditure facility to supplement internal cash flow. PSE's primary near-term challenge includes Moody's expectations for considerable negative free cash flow through 2011 given capital spending plans. Careful management of its significant power and gas supply contracts will continue to be a longer-term rating consideration. At two notches down from PSE's Baa2, PE's Ba1 senior unsecured issuer rating reflects a wider than typical one-notching down of a corporate parent due to structural subordination. This is due to Moody's view of the the increased financial risk as almost $1.5 billion of standalone debt now exists following the February 2009 ownership change (approximately 25% of consolidated debt at December 31, 2010 was borrowed at the PE holding company level). The wider notching also considers the weaker consolidated cash flow metrics and the ring-fence-like mechanisms in place to protect investors at the PSE level, which could potentially limit the upstream of distributions to service the standalone parent debt. Rating Outlook Puget Energy's rating outlook is stable, reflecting Moody's view that prospective improvement in operating results at PSE could improve the credit profile of PE, absent a dividend policy that is not consistent with maintaining a near-investment grade capital structure. What Could Change the Rating - Up Given the recent rating action, and capital program at the utility, an upgrade in the near-term is unlikely. However, the ability to report consolidated CFO (pre w/c) plus interest to interest and consolidated CFO (pre w/c) to debt above 3.0x, and the mid-teens range, respectively, on a sustainable basis could provide impetus for positive rating action. What Could Change the Rating - Down Any aggressive debt-funded dividends could lead to a downgrade, especially if there is any unexpected decline in the WUTC's supportiveness. Moreover, shortfalls in consolidated financial performance that reduce consolidated CFO (pre-w/c) plus interest to interest and consolidated CFO (pre w/c) to debt well below 3.0x and 10%, respectively, for an extended period of time, could lead to a downgrade. The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in August 2009. QUALITY DISTRIBUTION: Prices 5MM Shares Offering at $13 Apiece -------------------------------------------------------------- Quality Distribution, Inc.'s previously announced underwritten public offering of 5,000,000 shares of its common stock, of which Quality is offering for sale 2,500,000 shares and certain affiliates of Apollo Management, L.P., are offering for resale 2,500,000 shares, was priced at $13.00 per share. Apollo has granted the underwriters of the common stock offering an option to purchase up to 750,000 additional shares of common stock. Quality intends to use the net proceeds from the sale of shares in this offering for general corporate purposes, including potential acquisitions. Quality may also elect to redeem a portion of its second-priority senior secured notes due 2018. Pending such use of proceeds, Quality will reduce the amounts owing under its ABL facility. Quality will not receive any proceeds from the sale of the shares by the selling stockholders in this offering. The offering is expected to be consummated on March 13, 2012, subject to certain customary conditions. The offering is being made pursuant to Quality's registration statement on Form S-3 filed with the Securities and Exchange Commission. Goldman, Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch and Credit Suisse Securities (USA) LLC are acting as joint bookrunning managers for the offering. The co-managers for the offering are SunTrust Robinson Humphrey, Inc., BB&T Capital Markets, a division of Scott & Stringfellow, LLC, RBC Capital Markets, LLC, Apollo Global Securities, LLC, Avondale Partners, LLC and Sterne, Agee & Leach, Inc. About Quality Distribution Quality Distribution, LLC, and its parent holding company, Quality Distribution, Inc., are headquartered in Tampa, Florida. The company is a transporter of bulk liquid and dry bulk chemicals. The company's 2010 revenues are approximately $686 million. Apollo Management, L.P., owns roughly 30% of the common stock of Quality Distribution, Inc. The Company reported net income of $23.43 million on $745.95 million of total operating revenues for the year ended Dec. 31, 2011, compared with a net loss of $7.40 million on $686.59 million of total operating revenues during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $302.39 million in total assets, $408.58 million in total liabilities and a $106.18 million total shareholders' deficit. Bankruptcy Warning The Company had consolidated indebtedness and capital lease obligations, including current maturities, of $307.1 million as of Dec. 31, 2011. The Company must make regular payments under the New ABL Facility and its capital leases and semi-annual interest payments under its 2018 Notes. The New ABL Facility matures August 2016. However, the maturity date of the New ABL Facility may be accelerated if the Company defaults on its obligations. If the maturity of the New ABL Facility or such other debt is accelerated, the Company does not believe that it will have sufficient cash on hand to repay the New ABL Facility or such other debt or, unless conditions in the credit markets improve significantly, that the Company will be able to refinance the New ABL Facility or such other debt on acceptable terms, or at all. The failure to repay or refinance the New ABL Facility or such other debt at maturity will have a material adverse effect on the Company's business and financial condition, would cause substantial liquidity problems and may result in the bankruptcy of the Company or its subsidiaries. Any actual or potential bankruptcy or liquidity crisis may materially harm the Company's relationships with its customers, suppliers and independent affiliates. * * * As reported by the Troubled Company Reporter on Feb. 18, 2011, Moody's Investors Service said the $38 million public offering of 4 million shares of Quality Distribution's common stock on Feb. 9, 2011, does not affect Quality's 'Caa1' corporate family and probability of default ratings with a positive outlook. However, Moody's notes that the intended debt reduction at par from $17.5 million of the proceeds would be viewed favorably. In the Nov. 8, 2010 edition of the TCR, Standard & Poor's Ratings Services said that it has raised its corporate credit ratings on U.S.-based Quality Distribution Inc. to 'B' from 'B-'. S&P also removed the ratings from CreditWatch, where S&P had placed them with positive implications on Oct. 28, 2010, following the launch of the bond offering. The outlook is stable. "The rating action reflects the improvement in Quality Distribution's financial profile after completing its refinancing," said Standard & Poor's credit analyst Anita Ogbara. "Following the transaction, S&P expects Quality Distribution to benefit from lower interest expense, improved cash flow adequacy, and a substantial reduction in debt maturities over the next few years." QUANTUM FUEL: Incurs $38.5-Mil. Net Loss in 8 Mos. Ended Dec. 31 ---------------------------------------------------------------- Quantum Fuel Systems Technologies Worldwide, Inc., reported a net loss attributable to stockholders of $38.49 million on $24.47 million of total revenue for the eight months ended Dec. 31, 2011, compared with a net loss attributable to stockholders of $6.52 million on $10.51 million of total revenue for the same period a year ago. During the eight month period ended Dec. 31, 2011, cash used in operations improved by $1.0 million, from $10.5 million used in the eight month period ended Dec. 31, 2010, to $9.5 million used in the eight month period ended Dec. 31, 2011. Alan P. Niedzwiecki, President and CEO, stated, "This transitional eight month reporting period provides financial results through December 31, 2011, and enables the Company to begin reporting financial results on a calendar year basis. We are excited with the year over year revenue growth in the business during this respective period and the approximately $34 million in revenues recognized for the twelve months of calendar year 2011. We anticipate that revenues will be higher during calendar 2012 compared to calendar year 2011, and anticipate we will realize improved operating performance as a result of this expanding revenue base." A copy of the press release is available for free at: http://is.gd/l8quS6 About Quantum Fuel Based in Irvine, California, Quantum Fuel Systems Technologies Worldwide, Inc., is a fully integrated alternative energy company and considers itself a leader in the development and production of advanced clean propulsion systems and renewable energy generation systems and services. Quantum Fuel and its senior lender, WB QT, LLC, entered into a Ninth Amendment to Credit Agreement and a Forbearance Agreement on Jan. 3, 2011. The Senior Lender agreed to provide the Company with a $5.0 million non-revolving line of credit, which may be drawn upon at any time prior to April 30, 2011. Advances under the New Line of Credit do not bear interest -- unless an event of default occurs, in which case the interest rate would be 10% per annum -- and mature on April 30, 2011. The Senior Lender also agreed to forbear from accelerating the maturity date for any portion of the Senior Debt Amount and from exercising any of its rights and remedies with respect to the Senior Debt Amount until April 30, 2011. The Company reported a net loss attributable to stockholders of $11.03 million on $20.27 million of total revenue for the year ended Apri1 30, 2011, compared with a net loss attributable to stockholders of $46.29 million on $9.60 million of total revenue during the prior year. The Company's balance sheet at July 31, 2011, showed $74.15 million in total assets, $31.62 million in total liabilities, and $42.53 million total stockholders' equity. Ernst & Young LLP, in Orange County, California, noted that Quantum Fuel's recurring losses and negative cash flows combined with the Company's existing sources of liquidity and other conditions raise substantial doubt about the Company's ability to continue as a going concern. Possible Bankruptcy The Company anticipates that it will need to raise a significant amount of debt or equity capital in the near future in order to repay certain obligations owed to the Company's senior secured lender when they mature. As of June 15, 2011, the total amount owing to the Company's senior secured lender was approximately $15.5 million, which includes approximately $12.5 million of principal and interest due under three convertible promissory notes that are scheduled to mature on Aug. 31, 2011, and a $3.0 million term note that is potentially payable in cash upon demand beginning on Aug. 1, 2011, if the Company's stock is below $10.00 at the time demand for payment is made. If the Company is unable to raise sufficient capital to repay these obligations at maturity and the Company is otherwise unable to extend the maturity dates or refinance these obligations, the Company would be in default. The Company said it cannot provide any assurances that it will be able to raise the necessary amount of capital to repay these obligations or that it will be able to extend the maturity dates or otherwise refinance these obligations. Upon a default, the Company's senior secured lender would have the right to exercise its rights and remedies to collect, which would include foreclosing on the Company's assets. Accordingly, a default would have a material adverse effect on the Company's business and, if the Company's senior secured lender exercises its rights and remedies, the Company would likely be forced to seek bankruptcy protection. R&G MORTGAGE: Says Remaining Real Estate Assets Worth $833K ----------------------------------------------------------- R&G Mortgage Corp., seeks Bankruptcy Court permission to sell its remaining real estate in the ordinary course of the Debtor's business, pursuant to 11 U.S.C. Sections 105(a), 363(c), 1107(a) and 1108. Prior to the Petition Date, the Debtor liquidated most of its business and assets, however, the Debtor's current assets include the remaining real estate owned inventory consisting of five residential houses and a warehouse, which the Debtor was in the process of selling prior to the Petition Date. As of the Petition Date, the Debtor held $4.3 million in a bank account at BB&T Bank in Jacksonville, Florida. The Debtor's remaining assets include roughly 36 mortgage loans, with an aggregate unpaid principal balance of roughly $3.2 million and an estimated fair market value of roughly $2.3 million. MassMutual holds a lien on 26 of these mortgage loans, which collectively have an unpaid principal balance of approximately $2 million. The Debtor's Schedule A lists the combined value of the Real Estate at roughly $833,000. The Debtor believes that the realistic sale price will be significantly less because of vandalism at the warehouse, the condition of the properties, and title problems related to the Real Estate. The expected net sale proceeds from the five residential houses are de minimus, and the expected net sale proceeds from the warehouse is roughly $80,000. The Debtor's real estate advisor, Prescient, Inc., assisted in managing and maintaining the Debtor's properties pending a sale, and Prescient was in the process of selling the Real Estate. As part of the sale, the Debtor also seeks authority to pay related closing costs in the ordinary course of business on terms acceptable to the Debtor without the need for further court approval or authorization. About R&G Mortgage R&G Mortgage Corporation, the mortgage banking and servicing subsidiary of failed bank R-G Premier Bank of Puerto Rico, filed a Chapter 11 bankruptcy petition (Bankr M.D. Fla. Case No. 12-01360) on March 1, 2012. R&G Mortgage also filed a liquidating Chapter 11 plan that contemplates a sale of the remaining assets to pay claims and interests. R&G Mortgage Corp. and R-G Premier Bank of Puerto Rico, a Puerto Rican chartered bank, were subsidiaries of R&G Financial Corp. In February 2009, RG Mortgage transferred its business of origination of mortgage loans to RG Bank while retaining the business of servicing mortgage loans for RG Bank and third parties. On April 28, 2010, RG Financial transferred 100% of the stock of RG Mortgage to RG Bank in satisfaction of certain intercompany receivables between the entities. On April 30, 2010, RG Bank was closed by the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico and the Federal Deposit Insurance Corporation was appointed as its receiver. As a result, FDIC-R became the sole shareholder of RG Mortgage on the Closing Date. RG Mortgage believes it should have sufficient financial resources to pay all of its legitimate debts. However, 34 pending lawsuits and almost $1 million of disputed CRIM-related real estate tax claims interject substantial uncertainty and potential unfairness into the liquidation process. Given the "race-to-the courthouse" approach of civil litigation, if a plaintiff wins a very large judgment and levies on the Debtor's assets, such creditor will be paid in full and other creditors may receive nothing. Moreover the delay and expense of trying to resolve 34 lawsuits may exhaust the Debtor's assets, even if the Debtor wins every case. The Debtor looks to the bankruptcy process to provide a more efficient, faster and fairer procedure for addressing conflicting creditor claims. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/RG_Mortgage_Plan_Outline.pdf Judge Paul M. Glenn presides over the case. Gardner F. Davis, Esq., John J. Wolfel, Jr., Esq., and Jennifer Hayes, Esq., at Foley & Lardner LLP, serve as the Debtor's counsel. The petition was signed by Edward W. Gilman, president. R&G MORTGAGE: Taps Foley & Lardner as Bankruptcy Counsel -------------------------------------------------------- R&G Mortgage Corp. seeks authority from the Court to employ Foley & Lardner LLP as its attorney. Foley has represented the Debtor since October 2011 in connection with advising the Debtor regarding feasibility of a bankruptcy liquidation. To the best of the Debtor's knowledge, Foley has no connection with the creditors or any other party with an interest adverse to the Debtor's estate in the matter upon which Foley is to be retained. Foley also represents no material interest adverse to the Debtor or the estate. Foley will charge at these hourly rates: $440 per hour for Gardner Davis, Esq., $350 for Jennifer Hayes, Esq., $325 for John Wolfel, Esq., and $220 for Katherine Hall (bankruptcy paralegal). The Debtor provided a retainer of $4,810. Foley previously held a $25,000 retainer but the final invoice of $20,190 for services between Feb. 22, 2012 and Feb. 29, 2012, has been paid. The Debtor has previously paid Foley $61,276 in fees and expenses, on a current basis, for services rendered and costs incurred through Feb. 29, 2012. Foley & Lardner may be reached through: Gardner F. Davis, Esq. John J. Wolfel, Jr., Esq. FOLEY & LARDNER LLP P.O. Box 240 Jacksonville, FL 32201-0240 Tel: 904-359-2000 E-mail: jwolfel@foley.com - and - Jennifer Hayes, Esq. FOLEY & LARDNER LLP 100 North Tampa Street, Suite 2700 Tampa, FL 33602-5810 Tel: 813-229-2300 E-mail: jhayes@foley.com About R&G Mortgage R&G Mortgage Corporation, the mortgage banking and servicing subsidiary of failed bank R-G Premier Bank of Puerto Rico, filed a Chapter 11 bankruptcy petition (Bankr M.D. Fla. Case No. 12-01360) on March 1, 2012. R&G Mortgage also filed a liquidating Chapter 11 plan that contemplates a sale of the remaining assets to pay claims and interests. R&G Mortgage Corp. and R-G Premier Bank of Puerto Rico, a Puerto Rican chartered bank, were subsidiaries of R&G Financial Corp. In February 2009, RG Mortgage transferred its business of origination of mortgage loans to RG Bank while retaining the business of servicing mortgage loans for RG Bank and third parties. On April 28, 2010, RG Financial transferred 100% of the stock of RG Mortgage to RG Bank in satisfaction of certain intercompany receivables between the entities. On April 30, 2010, RG Bank was closed by the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico and the Federal Deposit Insurance Corporation was appointed as its receiver. As a result, FDIC-R became the sole shareholder of RG Mortgage on the Closing Date. RG Mortgage believes it should have sufficient financial resources to pay all of its legitimate debts. However, 34 pending lawsuits and almost $1 million of disputed CRIM-related real estate tax claims interject substantial uncertainty and potential unfairness into the liquidation process. Given the "race-to-the courthouse" approach of civil litigation, if a plaintiff wins a very large judgment and levies on the Debtor's assets, such creditor will be paid in full and other creditors may receive nothing. Moreover the delay and expense of trying to resolve 34 lawsuits may exhaust the Debtor's assets, even if the Debtor wins every case. The Debtor looks to the bankruptcy process to provide a more efficient, faster and fairer procedure for addressing conflicting creditor claims. Prior to the Petition Date, the Debtor liquidated most of its business and assets. As of the Petition Date, the Debtor held $4.3 million in a bank account at BB&T Bank in Jacksonville, Florida. The Debtor's remaining assets include roughly 36 mortgage loans, with an aggregate unpaid principal balance of roughly $3.2 million and an estimated fair market value of roughly $2.3 million. MassMutual holds a lien on 26 of these mortgage loans, which collectively have an unpaid principal balance of approximately $2 million. The Debtor's current assets include remaining real estate owned inventory consisting of five residential houses and a warehouse, which the Debtor was in the process of selling prior to the Petition Date. In its schedules filed with the Court, the Debtor disclosed $10,512,094 in total assets and $3,587,783 in total liabilities. Judge Paul M. Glenn presides over the case. Gardner F. Davis, Esq., John J. Wolfel, Jr., Esq., and Jennifer Hayes, Esq., at Foley & Lardner LLP, serve as the Debtor's counsel. The petition was signed by Edward W. Gilman, president. R&G MORTGAGE: Prescient to Manage & Market Real Estate ------------------------------------------------------ R&G Mortgage Corp. asks the Court for permission to hire and compensate Prescient, Inc., which will provide services to the Debtor in the ordinary course of the Debtor's business, and without the necessity of a formal retention application. Prior to the Petition Date, Prescient managed and marketed the Debtor's real estate properties, and in certain cases negotiated the sale of the Debtor's real estate. The Debtor wants to continue to employ Prescient. The Debtor also seeks to compensate Prescient based on historical payment arrangement for postpetition services rendered without the necessity of a formal fee application. Prescient may hold an unsecured claim against the Debtor with respect to pre-petition services rendered to the Debtor, however, to the best of the Debtor's knowledge, the Debtor does not believe that Prescient has an interest materially adverse to the Debtor, its creditors, or other parties in interest as to the matters for which it is to be engaged. About R&G Mortgage R&G Mortgage Corporation, the mortgage banking and servicing subsidiary of failed bank R-G Premier Bank of Puerto Rico, filed a Chapter 11 bankruptcy petition (Bankr M.D. Fla. Case No. 12-01360) on March 1, 2012. R&G Mortgage also filed a liquidating Chapter 11 plan that contemplates a sale of the remaining assets to pay claims and interests. R&G Mortgage Corp. and R-G Premier Bank of Puerto Rico, a Puerto Rican chartered bank, were subsidiaries of R&G Financial Corp. In February 2009, RG Mortgage transferred its business of origination of mortgage loans to RG Bank while retaining the business of servicing mortgage loans for RG Bank and third parties. On April 28, 2010, RG Financial transferred 100% of the stock of RG Mortgage to RG Bank in satisfaction of certain intercompany receivables between the entities. On April 30, 2010, RG Bank was closed by the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico and the Federal Deposit Insurance Corporation was appointed as its receiver. As a result, FDIC-R became the sole shareholder of RG Mortgage on the Closing Date. RG Mortgage believes it should have sufficient financial resources to pay all of its legitimate debts. However, 34 pending lawsuits and almost $1 million of disputed CRIM-related real estate tax claims interject substantial uncertainty and potential unfairness into the liquidation process. Given the "race-to-the courthouse" approach of civil litigation, if a plaintiff wins a very large judgment and levies on the Debtor's assets, such creditor will be paid in full and other creditors may receive nothing. Moreover the delay and expense of trying to resolve 34 lawsuits may exhaust the Debtor's assets, even if the Debtor wins every case. The Debtor looks to the bankruptcy process to provide a more efficient, faster and fairer procedure for addressing conflicting creditor claims. Prior to the Petition Date, the Debtor liquidated most of its business and assets. As of the Petition Date, the Debtor held $4.3 million in a bank account at BB&T Bank in Jacksonville, Florida. The Debtor's remaining assets include roughly 36 mortgage loans, with an aggregate unpaid principal balance of roughly $3.2 million and an estimated fair market value of roughly $2.3 million. MassMutual holds a lien on 26 of these mortgage loans, which collectively have an unpaid principal balance of approximately $2 million. The Debtor's current assets include remaining real estate owned inventory consisting of five residential houses and a warehouse, which the Debtor was in the process of selling prior to the Petition Date. In its schedules filed with the Court, the Debtor disclosed $10,512,094 in total assets and $3,587,783 in total liabilities. Judge Paul M. Glenn presides over the case. Gardner F. Davis, Esq., John J. Wolfel, Jr., Esq., and Jennifer Hayes, Esq., at Foley & Lardner LLP, serve as the Debtor's counsel. The petition was signed by Edward W. Gilman, president. R&G MORTGAGE: Hiring FDIC as Management Agent --------------------------------------------- R&G Mortgage Corp. seek Bankruptcy Court authority to engage the Federal Deposit Insurance Company, in its capacity as receiver for R-G Premier Bank of Puerto Rico, as its exclusive agent to perform management, marketing, record keeping, reporting, accounting, audit, information and communication technology and other services to the Debtor in the ordinary course of the Debtor's business. Prior to the Petition Date, the Debtor contracted with the FDIC-R pursuant to a Subsidiary Agency Agreement dated April 30, 2010, to provide the Debtor with management, accounting, marketing and administrative support services. The Debtor seeks to continue the retention of FDIC-R without the necessity of a formal retention application approved by the Court, and compensate FDIC-R on a monthly basis for postpetition out-of- pocket costs and expenses rendered in connection with providing such services, without the necessity of a formal fee application approved by the Court, provided that the Debtor will not make any payments as related to FDIC-R's direct, internal employee expenses without further Court order. FDIC-R holds an unsecured claim against the Debtor with respect to prepetition services rendered to the Debtor, however, to the best of the Debtor's knowledge, the Debtor does not believe that FDIC-R has an interest materially adverse to the Debtor, its creditors, or other parties in interest as to the matters for which it is to be engaged. About R&G Mortgage R&G Mortgage Corporation, the mortgage banking and servicing subsidiary of failed bank R-G Premier Bank of Puerto Rico, filed a Chapter 11 bankruptcy petition (Bankr M.D. Fla. Case No. 12-01360) on March 1, 2012. R&G Mortgage also filed a liquidating Chapter 11 plan that contemplates a sale of the remaining assets to pay claims and interests. R&G Mortgage Corp. and R-G Premier Bank of Puerto Rico, a Puerto Rican chartered bank, were subsidiaries of R&G Financial Corp. In February 2009, RG Mortgage transferred its business of origination of mortgage loans to RG Bank while retaining the business of servicing mortgage loans for RG Bank and third parties. On April 28, 2010, RG Financial transferred 100% of the stock of RG Mortgage to RG Bank in satisfaction of certain intercompany receivables between the entities. On April 30, 2010, RG Bank was closed by the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico and the Federal Deposit Insurance Corporation was appointed as its receiver. As a result, FDIC-R became the sole shareholder of RG Mortgage on the Closing Date. RG Mortgage believes it should have sufficient financial resources to pay all of its legitimate debts. However, 34 pending lawsuits and almost $1 million of disputed CRIM-related real estate tax claims interject substantial uncertainty and potential unfairness into the liquidation process. Given the "race-to-the courthouse" approach of civil litigation, if a plaintiff wins a very large judgment and levies on the Debtor's assets, such creditor will be paid in full and other creditors may receive nothing. Moreover the delay and expense of trying to resolve 34 lawsuits may exhaust the Debtor's assets, even if the Debtor wins every case. The Debtor looks to the bankruptcy process to provide a more efficient, faster and fairer procedure for addressing conflicting creditor claims. Prior to the Petition Date, the Debtor liquidated most of its business and assets. As of the Petition Date, the Debtor held $4.3 million in a bank account at BB&T Bank in Jacksonville, Florida. The Debtor's remaining assets include roughly 36 mortgage loans, with an aggregate unpaid principal balance of roughly $3.2 million and an estimated fair market value of roughly $2.3 million. MassMutual holds a lien on 26 of these mortgage loans, which collectively have an unpaid principal balance of approximately $2 million. The Debtor's current assets include remaining real estate owned inventory consisting of five residential houses and a warehouse, which the Debtor was in the process of selling prior to the Petition Date. In its schedules filed with the Court, the Debtor disclosed $10,512,094 in total assets and $3,587,783 in total liabilities. Judge Paul M. Glenn presides over the case. Gardner F. Davis, Esq., John J. Wolfel, Jr., Esq., and Jennifer Hayes, Esq., at Foley & Lardner LLP, serve as the Debtor's counsel. The petition was signed by Edward W. Gilman, president. R.E. LOANS: Says Venue Transfer Will Not Assure Case Consolidation ------------------------------------------------------------------ R.E. Loans, LLC, et al., ask the U.S. Bankruptcy Court for the Northern District of Texas to deny the transfer motions. On Jan. 31, 2012, more than four months after the commencement of the Debtors' Chapter 11 cases, the Official Committee of Noteholders filed its motion to transfer venue. Gordon Noble and Arlene Dea Deeley, in their capacity for Plaintiffs in the pending civil action entitled Noble, et al v. B-4 Partners, LLC, et al, and as creditors in the Chapter 11 cases of the Debtors, earlier filed a motion to transfer venue the Northern District of California, Oakland Division. The Debtors assert that, among other things: -- venue in the Northern District of Texas is proper; -- the transfer motions are untimely; -- the Debtors' cases can be most efficiently administered in the Court, which is the single most important factor that Courts consider in deciding whether to transfer large, complex Chapter 11 cases; -- the Chapter 11 cases would not be jointly administered with any of the cases pending in the Oakland Bankruptcy Court, even if the Chapter 11 cases were transferred to the Oakland Bankruptcy Court. -- the Noteholders are not likely to be necessary witnesses in connection with the Chapter 11 cases, as distinguished from witnesses in litigation which could, if appropriate, be pursued In California. The TCR reported on March 9, 2012, that Wells Fargo Capital Finance, LLC, formerly known as Wells Fargo Foothill, LLC also filed an objection to the Class Plaintiffs' motion to transfer venue of the Debtors' cases. 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. Akin Gump Strauss Hauer & Feld LLP, in Dallas, represents the Official Committee of Note Holders as counsel. RADIATION THERAPY: Moody's Says Goodwill Impairment Credit Neg. --------------------------------------------------------------- On March 8, 2011, Radiation Therapy Services, Inc. ("RTS") disclosed in its fourth quarter 2011 earnings filing that they took a $123 million impairment charge bringing the total impairments for the year to $361 million. The impairment charge erodes the company's net worth and reduces expected future free cash flow generation, but the company's B2 corporate family rating and negative outlook are currently not impacted. Radiation Therapy Services, Inc. ("RTS") owns and operates radiation treatment facilities along with integrated cancer care practices in the US and Latin America. The company's net patient service revenue for the fiscal year ended December 31, 2011 was $639 million. RESCARE INC: Moody's Upgrades Corporate Family Rating to 'Ba3' -------------------------------------------------------------- Moody's Investors Service upgraded the corporate family and probability of default ratings of ResCare, Inc. to Ba3 from B1 and the rating on the company's $200 million senior unsecured notes to B1 from B3. Additionally, Moody's assigned a Ba1 ratings to the company's proposed $175 million senior secured term loan and $175 million senior secured revolving credit facility. The credit facilities will be used to refinance the company's existing term loan and revolving credit facility, though the revolver size will decline by $100 million to $175 million from $275 million. Moody's also assigned to ResCare a Speculative Grade Liquidity (SGL) rating of SGL-2. The ratings outlook is stable. The upgrade of the corporate family rating to Ba3 from B1 reflects continued improvement in ResCare's financial performance driven by efficient cost management, enhanced operating leverage, and a conservative acquisition strategy. The following rating actions were taken (LGD point estimates are subject to change and all ratings are subject to the execution of the transaction as currently proposed and Moody's review of final documentation): The following ratings were assigned: $175 million sr. secured term loan, due 2017, assigned Ba1 (LGD2, 19%); $175 million sr. secured revolving credit facility, due 2017, assigned Ba1 (LGD2, 19%). Speculative-grade liquidity rating, assigned SGL-2. The following ratings were upgraded: Corporate family rating, upgraded to Ba3 from B1; Probability of default rating upgraded to Ba3 from B1; $200 million sr. unsecured notes, due 2019, upgraded to B1 (LGD5, 76%) from B3 (LGD5, 80%). The ratings on the company's existing term loan and revolving credit facility will be withdrawn at the close of the transaction. Rating Rationale Despite difficult operating conditions, the company has exceeded Moody's performance expectations for 2011 by generating adjusted retained cash flow to net debt above 17% versus the previously anticipated level of under 11% and by maintaining adjusted debt- to-EBITDA close to 4 times instead of Moody's previous projection of closer to 5 times. Moody's believes that ResCare will continue to deleverage its balance sheet while growing through carefully selected acquisitions that will be financed through cash flow. The Ba3 CFR assumes adjusted debt-to-EBITDA will decline to below 4 times and adjusted retained cash flow-to-net debt be maintained or increase above 17% over the next 12-18 months. In addition, the current transaction is not only going to push refinancing risk to 2017 but is also anticipated to lower interest expense significantly due to lower expected pricing. The upgrade is also supported by ResCare's leading competitive position, geographic diversification and the industry trend toward moving people with intellectual and developmental disabilities (ID/DD) from large facilities (institutions) that states provide into lower-cost community settings that ResCare (and competitors) provides. These factors, as well as the states' legal obligation to provide ID/DD services, help mitigate the risk of additional service and rate cuts that arises from the company's ID/DD payor mix which is heavily skewed toward Medicaid. The speculative-grade liquidity (SGL) rating of SGL-2 indicates that the company is likely to maintain a good liquidity profile over the next 12 months. Moody's anticipates the company to continue to use internally generated cash flow to fund its working capital and maintenance capital expenditures. In addition, the proposed $175 million revolving credit facility is not projected to have material advances outstanding over the next 12 months, only $60 million of letters of credit. Additionally supporting the company's liquidity profile is projected wide headroom under the covenants governing the proposed term loan and revolving credit facility. The stable outlook considers ResCare's good liquidity profile and wide geographic reach that mitigates state-specific event-risk such as Medicaid reimbursement rate reductions. In addition, the stable outlook incorporates Moody's expectation that the company will maintain a disciplined approach toward acquisitions and a conservative financial policy. The ratings could be upgraded if ResCare's adjusted debt-to-EBITDA declines and is sustained below 2 times and adjusted retained cash flow-to-net debt increases and is sustained above 20%. The ratio improvements need to be coupled with a somewhat stable reimbursement environment. The ratings could be downgraded if ResCare does not meet Moody's current expectations and its adjusted debt-to-EBITDA approaches 5 times and adjusted retained cash flow-to-net debt declines below 15%. Further, if the company begins to experience legal liabilities materially above historical trends such that liquidity and/or the company's ability to execute on its strategy weaken, Moody's could lower the ratings. A more aggressive than expected acquisition strategy or dividend policy that increases leverage or weakens liquidity could also have negative impact rating implications. The principal methodology used in rating ResCare, Inc was the Global Healthcare Service Providers 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. ResCare, Inc., headquartered in Louisville, Kentucky, is a provider of residential, therapeutic, job training, and educational support services to individuals with special needs, including persons with intellectual and developmental disabilities, at-risk youth and those experiencing barriers to employment. The company is owned by Onex Corporation ("Onex"). Consolidated revenues for 2011 were $1.6 billion. RIMO LANDWORX: Case Summary & 3 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: RIMO Landworx, LLC 26 Amberwood Circle Savannah, GA 31405 Bankruptcy Case No.: 12-40465 Chapter 11 Petition Date: March 6, 2012 Court: United States Bankruptcy Court Southern District of Georgia (Savannah) Debtor's Counsel: Richard C. E. Jennings, Esq. LAW OFFICES OF SKIP JENNINGS, PC 115 W Oglethorpe Ave Savannah, GA 31401 Tel: (912) 234-6872 Fax: (912) 236-7549 E-mail: skipjenningspc@comcast.net Scheduled Assets: $993,500 Scheduled Liabilities: $1,137,200 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/gasb12-40465.pdf The petition was signed by Moira Sheehan, managing member. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Richard J. Broussard, Jr., & 11-41272 06/22/11 Moira Sheehan ROCKWALL DEV: Case Summary & 4 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Rockwall Dev. Co., Inc. 416 N. Pacific Street Mineola, TX 75773 Bankruptcy Case No.: 12-31503 Chapter 11 Petition Date: March 6, 2012 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Harlin DeWayne Hale Debtor's Counsel: Eric A. Liepins, Esq. ERIC A. LIEPINS, P.C. 12770 Coit Rd., Suite 1100 Dallas, TX 75251 Tel: (972) 991-5591 E-mail: eric@ealpc.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb12-31503.pdf The petition was signed by Kirby Albright, president. ROTHSTEIN ROSENFELDT: Suit v. Regent Stays in Bankr. Court For Now ------------------------------------------------------------------ District Judge Kenneth A. Marra declined requests by defendants to immediately withdraw bankruptcy court reference of the lawsuit, Herbert Stettin, not individually but as Chapter 11 Trustee of the estate of the Debtor, Rothstein Rosenfeldt Adler, P.A., v. Regent Capital Partners, LLC, a New York limited liability company, Laura Huberfeld and Murray Huberfeld, husband and wife, Naomi Bodner and David Bodner, husband and wife, the Bodner Family Foundations, a New York corporation, Dahlia Kalter and Mark Nordlicht, husband and wife, and SFS Capital Funding, LLC, a Nevada limited liability company, Case No. 11-62612 (S.D. Fla.). Judge Marra said the Defendants are entitled to a trial by jury for all triable issues but the case is in its early stages. The District Court said neither judicial economy nor substantial prejudice to the Defendants require the immediate withdrawal of the reference. Withdrawal of the reference at this stage would result in the District Court losing the benefit of the bankruptcy court's experience in both the law and facts, and leading to an inefficient allocation of judicial resources. Judge Marra said the Defendants' right to a jury trial is deemed preserved, and the Bankruptcy Court may not try any issues as to the Defendants that are triable by a jury. The reference as to the adversary proceeding will be withdrawn as to the Defendants if and when this matter is ready for trial. The adversary proceeding arose from the elaborate fraudulent investment scheme perpetrated by RRA's CEO and founder, Scott R. Rothstein, and certain co-conspirators. Rothstein's ponzi scheme is alleged to have begun in 2005, and involved the sale of fictitious structured settlements with what turned out to be non- existent clients of RRA. The Chapter 11 Trustee filed the adversary proceeding on Aug. 29, 2011, for avoidance of purported fraudulent conveyances and related relief. On Sept. 20, 2011, the Chapter 11 Trustee filed a motion for preliminary injunction, seeking an order from the Bankruptcy Court enjoining each of the Defendants, "their third party counterparties or creditors, their attorneys, agents, employees" and others from "directly or indirectly" disbursing, transferring or otherwise using the cash transfers allegedly received from the Debtor or the "proceeds, products, or replacements thereof." The Defendants move to withdraw the reference of the bankruptcy- based causes of action (Adv. No. 11-02473-RBR) pending before the Bankruptcy Court based upon the authority of the Supreme Court's opinion in Stern v. Marshall, 131 S.Ct. 2594 (2011). The Defendants assert that the Bankruptcy Court does not have the constitutional and statutory authority to either enter final judgment or render a report and recommendation on the core fraudulent conveyance claims where no proof of claim has been filed. The Defendants also seek withdrawal of the reference based on their demand for a jury trial, which they do not consent to the bankruptcy court conducting. The Chapter 11 Trustee argues that withdrawal of the reference is not required and permissive withdrawal is not appropriate. Judge Marra noted that majority of district and bankruptcy courts that have addressed Stern conclude that what is certain is that the Supreme Court did not intend to deprive the bankruptcy courts of any role in dealing with fraudulent conveyance actions. He also noted that some district courts, including the Middle District of Florida and the Southern District of New York, have recently amended their standing order of reference to bankruptcy judges, giving them explicit authority to issue proposed findings and conclusions in connection with core matters that are found to fall within the Stern holding. A copy of Judge Marra's March 7, 2012 Opinion and Order is available at http://is.gd/y84tKlfrom Leagle.com. Regents Capital Partners, LLC, is represented by Harris Jacob Koroglu, Esq. -- hkoroglu@shutts.com -- at Shutts & Bowen LLP. SFS Capital Funding, LLC, is represented by John Daniel Eaton, Esq. -- jeaton@rascoklock.com -- at Rasco Klock Reininger Perez Esquenazi Vigil & Nieto. About Rothstein Rosenfeldt Scott Rothstein, co-founder of the law firm Rothstein Rosenfeldt Adler PA -- http://www.rra-law.com/-- was accused of running a $1.2 billion Ponzi scheme. U.S. authorities claimed in a civil forfeiture lawsuit filed November 2009, that Mr. Rothstein, the firm's former CEO, sold investments in non-existent legal settlements. Mr. Rothstein pleaded guilty to five counts of conspiracy and wire fraud in January 2010. He was sentenced to 50 years in prison in June 2010. In November 2009, creditors of Rothstein Rosenfeldt Adler signed a petition sending the Florida law firm to bankruptcy (Bankr. S.D. Fla. Case No. 09-34791). The creditors alleged being owed money invested in lawsuit settlements. Herbert M. Stettin, the state-court appointed receiver for Rothstein Rosenfeldt, was officially carried over as the Chapter 11 trustee in the involuntary bankruptcy case. He is represented by David Charles Cimo, Esq., Jesus M. Suarez, Esq., and John H. Genovese, Esq., at Genovese Joblove & Battista. ROVI CORP: S&P Affirms 'BB-' Corp. Credit Rating; Outlook Stable ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned Santa Clara, Calif.- based Rovi Corp.'s proposed $250 million term loan A-2 due 2017 and $550 million term loan B-2 due 2019 its issue-level rating of 'BB' (one notch higher than its 'BB-' corporate credit rating on the company). The recovery rating on this debt is '2', indicating our expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default. Operating subsidiaries Rovi Solutions Corp. and Rovi Guide Inc. will be co-borrowers. "We expect the company to use proceeds from the term debt offering for general and corporate purposes, including acquisitions and repaying the company's existing $300 million term loan B due 2018," S&P said. "At the same time, we revised our recovery rating on Rovi's existing term loans to '2' (70% to 90% recovery expectation) from '1' (90% to 100% recovery expectation). We lowered our issue-level rating on this debt to 'BB' from 'BB+', in accordance with our notching criteria for a recovery rating of '2'. The revision of the recovery rating reflects the added amount of secured debt in the company's capital structure with the newly proposed term loans," S&P said. The corporate credit rating on Rovi was affirmed at 'BB-'. The rating outlook is stable. "The 'BB-' corporate credit rating reflects our expectation that Rovi's steady operating performance will continue as new product rollouts offset a decline in legacy analog products. Rovi's new entertainment store has the potential to open up another significant revenue stream for the company, but it will indirectly compete against several sizable firms, including Netflix Inc., Amazon.com, and Apple Inc.'s iTunes," S&P said. "We consider Rovi's business risk profile as 'fair', primarily based on its good EBITDA margin and high barriers to entry-- particularly with respect to its patent portfolio--partly offset by its narrow business platform and meaningful technology risk. We assess the company's financial risk profile as 'aggressive,' based on its relatively high pro forma debt leverage after the proposed term debt offering and our expectation that Rovi will be an active acquirer," S&P said. "Rovi holds more than 5,100 issued or pending patents worldwide. Many of the patents cover basic functions of interactive programming guide (IPG) and content-protection technology. Competitors have repeatedly tested barriers to entry against Rovi's IPG and content protection businesses, but Rovi or its predecessor company prevailed. Any new entrant, in addition to developing a competing product, would also likely need to license the underlying technology covered by Rovi's patents. The patents give the company a highly defensible market position because most consumer electronics manufacturers, including Sony Corp. and Samsung Corp., are Rovi customers," S&P said. "For 2012, pro forma for the acquisition of Sonic Solutions in February 2011 and the sale of the Roxio consumer software business, we expect mid-single-digit percentage revenue and low- single-digit EBITDA growth as the decline in legacy analog copy protection (ACP) drags down the overall revenue and EBITDA growth rate. If Rovi can successfully promote its entertainment store with retailers, manufacturers, and end-users, the EBITDA margin could again approach 37%, where it was prior to the Sonic Solutions acquisition," S&P said. SAHARA TOWNE: Case Summary & 8 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Sahara Towne Square, LLC 3275 South Jones, #105 Las Vegas, NV 89146 Bankruptcy Case No.: 12-12537 Chapter 11 Petition Date: March 7, 2012 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Zachariah Larson, Esq. MARQUIS AURBACH COFFING 10001 Park Run Drive Las Vegas, NV 89145 Tel: (702) 382-1170 Fax: (702) 382-1169 E-mail: cshurtliff@maclaw.com Scheduled Assets: $13,795,353 Scheduled Liabilities: $9,591,802 The petition was signed by Jeff Susa, president of STS Manager, Inc., manager. Debtor's List of Its Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Interstate Security Services, Inc. Security Guards $5,899 1771 E. Flamingo Road, #116-A Las Vegas, NV 89117 NV Energy Power $2,836 P.O. Box 30086 Reno, NV 89520 J & J Services Power Washer $2,525 3632 Beeson Court Las Vegas, NV 89130 Nevada Illumination, Inc. Lights $1,197 Baker Commodities, Inc. Sewer Jetting $750 Maintenance Nadel Nevada, Inc. Blue Prints $669 Ambassador Fire Protection Fire Sprinklers $519 Repair Swat Bug Killers Pest Control $430 SELECT TREE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Select Tree Farms, Inc. 6339 Thomas Corners Road West Valley, NY 14171 Bankruptcy Case No.: 12-10669 Chapter 11 Petition Date: March 7, 2012 Court: U.S. Bankruptcy Court Western District of New York (Buffalo) Judge: Carl L. Bucki Debtor's Counsel: Beth Ann Bivona, Esq. DAMON MOREY LLP The Avant Building 200 Delaware Avenue, Suite 1200 Buffalo, NY 14202-2150 Tel: (716) 856-5500 Fax: (716) 856-5510 E-mail: bbivona@damonmorey.com Scheduled Assets: $11,450,989 Scheduled Liabilities: $5,959,983 The petition was signed by George A. Schichtel, president. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- George A. Schichtel -- -- Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Evans Bank, N.A. Lots $2,080,479 1 Grimsby Drive Hamburg, NY 14075 KCK Farms, LLC Trade Debt $1,500,000 11483 Southeast Amity Dayton Highway Dayton, OR 97114 J. Frank Schmidt & Son Co. Trade Debt $1,116,000 9800 SE 327th Avenue Boring, OR 97007 Farm Credit East, ACA Lots $705,000 P.O. Box 141 Springfield, MA 01101 Roehl Transport, Inc. Trade Debt $110,000 Lippes Mathias Wexler Friedman LLP Legal Services $37,000 Admar Supply Co., Inc. Trade Debt $20,172 Harter Equipment Inc. Trade Debt $18,495 Dansa & D'Arata LLP Accounting Services $16,053 Lamb & Webster, Inc. Trade Debt $12,000 GMAC 2007 Chevy $11,686 Johnson Boy's, Inc. Trade Debt $2,200 JP Morgan Chase Bank 2007 Chevy $2,082 New Jersey Department & Notice Only $1 Workforce Dvlp State of New Jersey Notice Only $1 New Jersey Division of Taxation Farner & Farner Attorneys ? Notice Only $1 Abrams, Gorelick, Friedman Attorneys ? Notice Only $1 & Jacobson Mark J. Collins, Esq. Attorneys ? Notice Only $1 NYS Department of Labor Notice Only $1 Internal Revenue Service Notice Only $1 SEQUENOM INC: Incurs $74.1 Million Net Loss in 2011 --------------------------------------------------- Sequenom, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $74.15 million on $55.90 million of total revenues in 2011, a net loss of $120.84 million on $47.46 million of total revenues in 2010, and a net loss of $71.01 million on $37.86 million of total revenues in 2009. The Company's balance sheet at Dec. 31, 2011, showed $135.54 million in total assets, $44.16 million in total liabilities and $91.38 million in total stockholders' equity. A copy of the Form 10-K is available for free at: http://is.gd/aFmxwz 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. SILGAN HOLDINGS: Moody's Rates $300MM Sr. Unsec. Notes at 'Ba2' --------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to the proposed $300 million senior unsecured notes of Silgan Holdings Inc. and affirmed the company's Ba1 Corporate Family and Probability of Default ratings. The ratings outlook remains stable. The proceeds from the new $300 million notes due 2020 will be used to refinance the $250 million 7.25% senior notes due 2016. Moody's took the following actions for Silgan Holdings Inc.: Assigned $300 million senior unsecured notes due 2020, Ba2 (LGD 5, 89%) Affirmed CFR at Ba1 Affirmed PDR at Ba1 Affirmed $800 million multicurrency revolving credit facility due July 2016, Ba1 (LGD 3, 41% from 43%) Affirmed $520 million term loan A due July 2017, Ba1 (LGD 3, 41% from 43%) Affirmed EUR335 million term loan A due July 2017, Ba1 (LGD 3, 41% from 43%) Affirmed $250 million senior unsecured notes due August 2016, Ba2 (LGD 6, 91%) (To be withdrawn after the transaction is completed) Moody's took the following actions for Silgan Plastics Canada Inc. Affirmed CAD 81 million term loan A due July 2017, Ba1 (LGD 3, 41% from 43%) The ratings outlook is stable. Ratings Rationale The Ba1 Corporate Family rating reflects the consolidated industry structure in the company's metals segment (food can and closures) and strong market shares and contract structures in food cans. The rating also reflects the significant onsite presence with customers in the food can segment and the significant percentage of custom products in the plastics segment. The company remains focused on cost cutting and productivity and is expanding into higher growth markets. Silgan also maintains good liquidity. The Corporate Family rating is constrained by the company's acquisitiveness, primarily commoditized product line and concentration of sales. The rating is also constrained by the low growth in the food can market and the potential for increased operating and ratings risk over time stemming from the company's acquisition strategy. Contract terms in the plastic vacuum closures and plastics segments have relatively weaker terms than the food can segment (including a lack of cost pass-throughs for costs other than raw materials) and resin prices have been volatile historically. Moreover, the industry structures for both plastic segments are fragmented with significant competitive pressures. The ratings could be downgraded if there is deterioration in the operating and competitive environment, deterioration in credit metrics and/or a significant debt financed acquisition. The ratings could also be downgraded if there is a change in financial policies to the detriment of debt holders. Specifically, the ratings could be downgraded if adjusted debt to EBITDA rises above 3.5 times, free cash flow to debt remains below 9.5%, EBIT to interest expense declines to below 4 times, and/or the EBIT margin declines below 9.5%. The rating could be upgraded if Silgan commits to investment grade financial policies and sustainably improves credit metrics within the context of continued stability in the operating and competitive environment. Specifically, the ratings could be upgraded if the EBIT margin improves to the mid-teens, debt to EBITDA improves to below 2.8 times, EBIT to interest expense improves to over 4.5 times, and free cash flow to debt improves to the mid teens. The principal methodology used in these ratings was Global Packaging Manufacturers: Metal, Glass, and Plastic Containers Industry Methodology published in June 2009. SPANISH GROVE: Case Summary & Unsecured Creditor ------------------------------------------------ Debtor: Spanish Grove Trailer Park, LLC 840 William HIlton Pkwy Hilton Head Island, SC 29928 Bankruptcy Case No.: 12-01481 Chapter 11 Petition Date: March 6, 2012 Court: United States Bankruptcy Court District of South Carolina (Charleston) Judge: John E. Waites Debtor's Counsel: Michael W. Mogil, Esq. LAW OFFICE OF MICHAEL W. MOGIL, P.A. 2 Corpus Christie Place, Suite 303 Hilton Head Island, SC 29928 Tel: (843) 785-8110 Fax: (843) 785-9676 E-mail: mwmogil@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Harinderjit Singh Money loaned Undetermined 3685 Wheeler Road, Ste 201 Augusta GA 30909 The petition was signed by Edward Flynn, manager. SQUARE ONE: Case Summary & 7 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Square One Energy, Inc. 6500 Belt Line Road, Suite 200 Irving, TX 75063 Bankruptcy Case No.: 12-31552 Chapter 11 Petition Date: March 8, 2012 Court: U.S. Bankruptcy Court Northern District of Texas (Dallas) Judge: Stacey G. Jernigan Debtor's Counsel: David M. Bennett, Esq. THOMPSON & KNIGHT LLP 1722 Routh Street, Suite 1500 Dallas, TX 75201-2533 Tel: (214) 969-1486 E-mail: david.bennett@tklaw.com - and ? Katharine Battaia Clark, Esq. THOMPSON & KNIGHT LLP 1722 Routh Street, Suite 1500 Dallas, TX 75201-2533 Tel: (214) 969-1495 Fax: (214) 969-1751 E-mail: katie.clark@tklaw.com Estimated Assets: $50,000,001 to $100,000,000 Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by James R. Latimer, III, chief executive officer. Debtor's List of Its Seven Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Graham Engine & Equipment Inc. Trade Debt $50,063 P.O. Box 508 Graham, TX 76450 Midwest Compressor Systems LLC Trade Debt $49,496 P.O. Box 1381 Pampa, TX 79066-1381 Atlas Equipment Co. and Trade Debt $28,056 Diversified Lend P.O. Box 892 Eastland, TX 76448 John Crane Production Solutions Trade Debt $5,670 Young County Machine Inc. Trade Debt $3,029 Ranger Operating Company Trade Debt $1,532 McMahon Surovik Suttle PC Trade Debt $840 TEFFT BRIDGE: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Tefft Bridge & Iron, LLC P.O. Box 277 Wheatfield, IN 46392 Bankruptcy Case No.: 12-40140 Chapter 11 Petition Date: March 6, 2012 Court: United States Bankruptcy Court Northern District of Indiana (Hammond Division at Lafayette) Judge: Robert E. Grant Debtor's Counsel: Kenneth A. Manning (KS), Esq. MANNING & GONZALEZ, PC 200 Monticello Drive Dyer, IN 46311 Tel: (219) 865-8376 Fax: (219) 865-4054 E-mail: Ken@kmmglawfirm.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/innb12-40140.pdf The petition was signed by James M. Szymusiak, designated representative. TEMPLE CHURCH: Case Summary & 19 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Temple Church International, Inc. dba Temple Baptist Church 5 2916 Tuckaseegee Road Charlotte, NC 28208 Bankruptcy Case No.: 12-30558 Chapter 11 Petition Date: March 6, 2012 Court: United States Bankruptcy Court Western District of North Carolina (Charlotte) Judge: Laura T. Beyer Debtor's Counsel: Richard S. Wright, Esq. MOON WRIGHT & HOUSTON, PLLC 227 W. Trade Street Suite 1800 Charlotte, NC 28202 Tel: (704) 944-6564 Fax: (704) 944-0380 E-mail: rwright@mwhattorneys.com Scheduled Assets: $1,047,414 Scheduled Liabilities: $2,543,128 A list of the Company's 19 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncwb12-30558.pdf The petition was signed by Bertha Colbert, elder. TENNECO INC: Moody's Affirms 'Ba3' Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service assigned Baa3 rating to Tenneco Inc.'s new $700 million senior secured revolving credit facility and $250 million term loan A facility. In a related action Moody's affirmed Tenneco's Corporate Family and Probability of Default Ratings at Ba3, and affirmed the ratings of the company's existing senior secured bank debt and senior unsecured notes at Baa3 and B1, respectively. The proceeds from the new term loan A facility will be used to finance the redemption of the company's 8.125% senior unsecured notes due 2015. The Speculative Grade Liquidity Rating also was affirmed at SGL-2. The rating outlook is stable. Ratings assigned: New first lien senior secured revolving credit facility, Baa3 (LGD2, 14%); New $250 million first lien senior secured Term Loan A due 2017, Baa3 (LGD2, 14%); Ratings affirmed: Corporate Family rating, at Ba3; Probability of Default rating, at Ba3; Existing first lien senior secured revolving credit facility, at Baa3 (LGD1, 6%) -- to be withdrawn upon replacement; $130 million first lien senior secured letter of credit / revolving loan facility, at Baa3 (LGD1, 6%) -- to be withdrawn upon replacement; $150 million first lien senior secured Term Loan B due 2016, at Baa3 (LGD2, 14%); 6 7/8% senior unsecured notes due 2020, at B1 (LGD4, 68%); 7.75% senior unsecured notes due 2018, to B1 (LGD4, 68%); 8.125% senior unsecured notes due 2015, at B1 (LGD4, 60%) -- to be withdrawn upon replacement; Speculative Grade Liquidity Rating, SGL- 2 RATING RATIONALE Tenneco's Ba3 Corporate Family Rating reflects the company's improved profitability resulting from the recovering global automotive industry and the growing demand for its emission- reduction products in the commercial vehicle sector. Moody's expects the recovery in the North American automotive industry to continue in 2012 with unit sales in the U.S. growing about 16%. Tenneco's North American original equipment business represents about 37% of 2011 revenues. Yet, a lagging economic recovery in Europe (approximately 33% of 2011 revenues), where the impact of sovereign debt risks and austerity programs remains uncertain, may pressure the company's overall margins. For the LTM period ending December 31, 2011, Tenneco's EBIT/Interest (including Moody's standard adjustments) approximated 3.0x and Debt/EBITDA approximated 2.8x. The stable outlook anticipates that Tenneco will benefit from greater penetration on OEM on and off-road commercial vehicles, and its long-term positions on key existing platforms will sustain credit metrics supportive of the assigned rating. In addition, the interest savings from the refinancing of Tenneco's senior notes with the bank credit facility along with a strong liquidity profile will help mitigate potential challenges from uncertain European economic conditions and slower growth, albeit still positive, in the company's Asian markets. Tenneco 's SGL-2 Speculative Grade Liquidity profile is expected to continue to be supported over the near-term by the company's cash balances and revolving credit availability. As of December 31, 2011, the company maintained cash and cash equivalents of $214 million. Moody's anticipates Tenneco will generate positive free cash flow on an annual basis over the near-term inclusive of higher levels of working capital requirements to support business growth. The $700 million senior secured revolving credit facility, maturing in 2017, will replace the company's existing $622 revolving credit facility commitment (which reduces to $556 million in March 2012) and $130 million senior secured tranche B letter of credit/revolving loan facility. As of December 31, 2011 the company's had $24 million of borrowings and $58 million of outstanding letters of credit under existing revolving credit facilities. Moody's expects Tenneco's performance over the next twelve months to provide ample cushion under the financial covenants of the bank credit facilities, supporting access to the commitments. Alternative sources of liquidity are guided by additional indebtedness baskets under the bank credit facilities. Future events that could drive Tenneco's outlook or ratings higher include continued improvement in production levels in the company's overall global automotive markets or growth driven by regulatory emission control requirements leading to further improvement in credit metrics and consistent free cash flow generation. Consideration for a higher rating could arise if these factors were to lead to EBIT/Interest sustained over 4.0x and Debt/EBITDA approaching 2.5x. Future events that could drive Tenneco's outlook or ratings lower include declines in global OEM production without successful implementation of offsetting restructuring actions; elevated working capital levels resulting in negative free cash flow; or deteriorating liquidity. Consideration for a lower rating could arise if these factors were to lead to Debt/EBITDA approaching 4.0x or EBIT/Interest coverage approaching 2.0x times. The principal methodology used in rating Tenneco was the Global Automotive Supplier Industry Methodology published in January 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. Tenneco, headquartered in Lake Forest, Illinois, is a leading manufacturer of automotive emissions control (approximately 63% of sales) and ride control (approximately 37% of sales) products and systems for both the worldwide original equipment market and aftermarket. Leading brands include Monroe(R), Rancho(R), Clevite(R), and Fric Rot ride control products and Walker(R), Fonos, and Gillet emission control products. Net sales in 2011 were approximately $7.2 billion. TENNECO INC: S&P Keeps 'BB' Corp. Credit Rating; Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services ssigned its 'BBB-' issue-level rating on Tenneco Inc.'s proposed $700 million revolving credit facility and $250 million term loan A. "At the same time, we assigned our recovery rating of '1' on both the revolving credit facility and term loan, indicating our expectation that lenders would receive very high (90% to 100%) recovery in the event of a payment default," S&P said. "Tenneco wants to refinance its existing credit facilities and pay off its $250 million, 8.125% senior secured notes due 2015. The proceeds of the revolving credit facility will be used to finance the transactions, pay for related expenses, and fund general corporate purposes. The proceeds of term loan A will be used to call and pay off the company's $250 million senior notes. The credit facilities are secured by a perfected first-priority security interest in substantially all of the assets of the loan parties, subject to a 65% limitation on the capital stock of each of the borrower's direct and indirect first-tier foreign subsidiaries," S&P said. The BB/Stable/-- corporate credit rating on Lake Forest, Ill.- based auto supplier Tenneco reflects its significant leverage and substantial exposure to the highly cyclical light-vehicle and commercial-vehicle markets. Ratings List Tenneco Inc. Corporate credit rating BB/Stable/-- Rating Assigned Proposed $700 mil. rev credit facility BBB- Recovery rating 1 $250 million term loan BBB- Recovery rating 1 TIMOS INCORPORATED: Case Summary & 19 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Timos Incorporated dba Viva Michoacan 2061 West Sunset Road Henderson, NV 89014-2026 Bankruptcy Case No.: 12-12698 Chapter 11 Petition Date: March 9, 2012 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Michael J. Dawson, Esq. 515 S. Third Street Las Vegas, NV 89101 Tel: (702) 384-1777 E-mail: mdawson@lvcoxmail.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 19 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb12-12698.pdf The petition was signed by Timoteo Barajas, president. TODD MCFARLANE: Settles Copyright Issue With Gaiman for $382,000 ---------------------------------------------------------------- Comic Book Resources reports that Todd McFarlane Productions will pay Neil Gaiman $382,000 in the wake of the settlement in January of their nearly decade-long legal battle over the rights to Medieval Spawn, Angela and other characters. The report, citing court documents, says a federal bankruptcy judge has ordered the release of the funds placed into escrow in 2008 under McFarlane's reorganization plan to offset potential losses from the lawsuit. The report relates that, with interest, Mr. Gaiman should receive somewhere around $464,000, although much of that will likely go to legal expenses. The writer has publicly stated that he gives money won in the proceedings to charity. According to the report, the agreement reached in late January gives Mr. Gaiman 50% ownership of Spawn #9 and #26, as well as the three issues of the 1994 Angela miniseries, ending a fierce court fight over the characters he and McFarlane created together some two decades ago. A federal jury had already found in 2002 that Mr. Gaiman has a copyright interest in the characters, but McFarlane's subsequent bankruptcy left the writer unpaid. The report adds that McFarlane was dealt another blow in 2010, when a federal judge ruled that Dark Ages Spawn, Domina and Tiffany are mere derivatives of Medieval Spawn and Angela, meaning that Mr. Gaiman is also the co-owner of those copyrights and entitled to one-half of the profits generated by the characters. Headquartered in Tempe, Arizona, Todd McFarlane Productions, Inc. -- http://www.spawn.com/-- publishes comic books including Spawn, Hellspawn, and Sam and Twitch. The Company filed for chapter 11 protection on Dec. 17, 2004 (Bankr. D. Ariz. Case No. 04-21755). Josefina F. McEvoy, Esq., and Kelly Singer, Esq., at Squire Sanders & Dempsey, LLP, represent the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors was appointed in the Debtor's case. When the Company filed for protection from its creditors, it estimated more than $10 million in assets and more than $50 million in debts. TRAINOR GLASS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Trainor Glass Company dba Trainor Modular Walls Trainor Solar Trainor Florida 939 West Lake Street Chicago, IL 60607 Bankruptcy Case No.: 12-09458 Chapter 11 Petition Date: March 9, 2012 Court: U.S. Bankruptcy Court Northern District of Illinois (Chicago) Judge: Carol A. Doyle Debtor's Counsel: Michael L. Gesas, Esq. ARNSTEIN & LEHR, LLP 120 South Riverside Plaza, Suite 1200 Chicago, IL 60606-3910 Tel: (312) 876-7125 Fax: (312) 876-6260 E-mail: mlgesas@arnstein.com Estimated Assets: $50,000,001 to $100,000,000 Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by Thomas D. Trainor, president. Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ United Architectural Metals Trade Debt $1,394,614 7830 Cleveland Avenue NW North Canton, OH 44720 Viracon, Inc. Trade Debt $1,124,302 800 Park Drive Owatonna, MN 55060 EFCO Trade Debt $1,055,418 1000 County Road Monett, MO 65708 Architectural Systems, Inc. Trade Debt $881,038 707 W. Highway 60 Monett, MO 65708-0519 United Rentals, Inc. Trade Debt $734,763 2400 Hamilton Boulevard South Plainfield, NJ 07080 Oldcastle Trade Debt $615,085 30 Cooperative Way Wright City, MO 63390 Design Engineering Consulting Trade Debt $594,315 2095 N. Collins, Suite 100 Richardson, TX 75080 Insulation Solutions Trade Debt $589,390 3200 Ashford Lane McKinney, TX 75070 Kawneer Company, Inc. Trade Debt $503,307 555 Guthridge Court Norcross, GA 30092 J.E. Berkowitz Trade Debt $498,906 Delsea Drive & Harvard Avenue Westville, NJ 08093 Western Glass Seller Financing $485,751 1656 West 2550 South Ogden, UT 84401 Ornamental Installation Trade Debt $449,028 4 Jones Road Warwick, NY 10990 Penske Truck Leasing Litigation $400,000 190 Brodhead Road, Suite 200 Settlement Lehigh Valley, PA 18002-2257 Fastenal Company Trade Debt $368,286 13860 N. Stemmons Freeway Farmers Branch, TX 75234 Ventura Enterprises, Inc. Trade Debt $367,263 1925 S. Western Avenue Chicago, IL 60608 Centennial Moisture Control Trade Debt $360,416 1780 Hurd Drive Irving, TX 75038 Sunbelt Rentals Trade Debt $354,151 4700 Reagan Drive Charlotte, NC 28206-3187 Graham Architectural Products Trade Debt $350,920 1551 Mt. Rose Avenue York, PA American Express Trade Debt $336,321 P.O. Box 360001 Fort Lauderdale, FL 33336-0001 Knowles Door Check Co. Inc. Trade Debt $311,529 302 Highway 251 South Olney, TX 76374 TRIDENT MICROSYSTEMS: Entropic Has Final Nod to Buy Business ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Entropic Communications Inc. received formal approval from the bankruptcy court on March 9 to buy the set-top box business from Trident Microsystems Inc. for $65 million. Entropic came out on top after a 15-hour auction. The opening bid at auction had been $55 million. About Trident Microsystems Sunnyvale, California-based Trident Microsystems, Inc., currently designs, develops, and markets integrated circuits and related software for processing, displaying, and transmitting high quality audio, graphics, and images in home consumer electronics applications such as digital TVs, PC-TV, and analog TVs, and set- top boxes. The Company has research and development facilities in Beijing and Shanghai, China; Freiburg, Germany; Eindhoven and Nijmegen, The Netherlands; Belfast, United Kingdom; Bangalore and Hyderabad, India; Austin, Texas; and Sunnyvale, California. The Company has sales offices in Seoul, South Korea; Tokyo, Japan; Hong Kong and Shenzhen, China; Taipei, Taiwan; San Diego, California; Mumbai, India; and Suresnes, France. The Company also has operations facilities in Taipei and Kaoshiung, Taiwan; and Hong Kong, China. Trident Microsystems and its Cayman subsidiary, Trident Microsystems (Far East) Ltd. filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 12-10069) on Jan. 4, 2011. Trident said it expects to shortly file for protection in the Cayman Islands. Judge Christopher S. Sontchi presides over the case. Lawyers at DLA Piper LLP (US) serve as the Debtors' counsel. FTI Consulting, Inc., is the financial advisor. Union Square Advisors LLC serves as the Debtors' investment banker. PricewaterhouseCoopers LLP serves as the Debtors' tax advisor and independent auditor. Kurtzman Carson Consultants is the claims and notice agent. Trident had $309,992,980 in assets and $39,607,591 in liabilities as of Oct. 31, 2011. The petition was signed by David L. Teichmann, executive VP, general counsel & corporate secretary. The Official Committee of Unsecured Creditors of Trident Microsystems, Inc., et al., tapped Pachulski Stang Ziehl & Jones LLP as its counsel, and Imperial Capital, LLC, as its investment banker and financial advisor. Roberta A. DeAngelis, the U.S. Trustee for Region 3 appointed three members to the Committee of Trident Microsystems, Inc. Equity Security Holders. TRU-WAY CHURCH: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Tru-Way Church of the Risen Christ, Incorporated 7155 Hyde Grove Avenue Jacksonville, FL 32210 Bankruptcy Case No.: 12-01498 Chapter 11 Petition Date: March 7, 2012 Court: United States Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: William B. McDaniel, Esq. BANKRUPTCY LAW FIRM OF LANSING J ROY, PA 1710 Shadowood Lane, Suite 210 Jacksonville, FL 32207 Tel: (904) 391-0030 Fax: (904) 391-0031 E-mail: court@jacksonvillebankruptcy.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Elwyn W. Jenkins, president. TXU CORP: Bank Debt Trades at 43% 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 56.56 cents-on-the-dollar during the week ended Friday, March 9, 2012, an increase of 0.87 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 10, 2017, and carries Moody's B2 rating and Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 179 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Energy Future Holdings Corp. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $1.91 billion on $7.04 billion of operating revenues for the year ended Dec. 31, 2011, compared with a net loss of $2.81 billion on $8.23 billion of operating revenues during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $44.07 billion in total assets, $51.83 billion in total liabilities, and a $7.75 billion total deficit. 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. * * * In April 2011, Moody's Investors Service affirmed the 'Caa2' Corporate Family Rating, 'Caa3' Probability of Default Rating and SGL-4 Speculative Grade Liquidity Ratings of EFH. Outlook is stable. EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited financial flexibility; its capital structure appears to be untenable, calling into question the sustainability of the business model; and there is no expectation for any meaningful debt reduction over the next few years, beyond scheduled amortizations. At the end of February 2011, Fitch Ratings it does not expect to take any immediate rating action on EFH's Texas Competitive Electric Holdings Company LLC or their affiliates based on recent default allegations from lender Aurelius. EFH carries a 'CCC' corporate rating, with negative outlook, from Fitch. TXU CORP: Bank Debt Trades at 38% 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 61.57 cents-on-the-dollar during the week ended Friday, March 9, 2012, an increase of 0.68 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 179 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Energy Future Holdings Corp. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $1.91 billion on $7.04 billion of operating revenues for the year ended Dec. 31, 2011, compared with a net loss of $2.81 billion on $8.23 billion of operating revenues during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $44.07 billion in total assets, $51.83 billion in total liabilities, and a $7.75 billion total deficit. 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. * * * 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. UNI-PIXEL INC: Incurs $8.5 Million Net Loss in 2011 --------------------------------------------------- Uni-Pixel, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $8.57 million on $195,237 of revenue for the year ended Dec. 31, 2011, compared with a net loss of $3.82 million on $243,519 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $8.38 million in total assets, $87,468 in total liabilities and $8.30 million in total shareholders' equity. "2011 was a year of extraordinary progress, as UniPixel continued to transition from a development and IP-based company to a scalable manufacturing company," said Reed Killion, UniPixel's president and CEO. "We now have consumer electronics OEMs around the world extensively testing our UniBoss and Diamond Guard products. During the year we also strengthened our globally- oriented management team in preparation for the next stage of our growth." A copy of the Form 10-K is available for free at: http://is.gd/NQA2QL About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. UNIGENE LABORATORIES: Incurs $17.9 Million Net Loss in 2011 ----------------------------------------------------------- Unigene Laboratories, Inc., reported a net loss of $17.92 million on $20.51 million of revenue in 2011, a net loss of $27.86 million on $11.34 million of revenue in 2010, and a net loss of $13.38 million on $12.79 million of revenue in 2009. The Company's balance sheet at Dec. 31, 2011, showed $17.67 million in total assets, $72.81 million in total liabilities and a $55.13 million total stockholders' deficit. Ashleigh Palmer, Unigene's President and CEO stated, "We accomplished a great deal in 2011, including the validation of our proprietary leading oral peptide drug delivery platform by way of the positive Phase 3 oral calcitonin results seen in Tarsa's ORACAL trial and the positive Phase 2 trial results demonstrating definitive proof-of-concept for our oral PTH analog. On the other hand, we did not see favorable results from Novartis' Phase 3 program in which our manufacturing technology was used to produce calcitonin drug substance for a competitor's formulation. Also, most disappointingly, we did not benefit from milestone payments associated with GSK advancing to the next stage of clinical development for our oral PTH analog, the full rights to which now revert back to Unigene. Nevertheless, I am extremely pleased with our many operational and scientific successes throughout last year, leading to cash runway extension and our avoidance of having to take on additional debt, as well as our ability to reduce the impact of negative events outside of our control. Such events would almost certainly have been fatal 18 months ago." Palmer continued, "Although Unigene's balance sheet represents an enormous priority challenge that threatens the Company's viability going forward, my management team and I believe that, if we execute solidly on our stated corporate goals and milestones in 2012, we will have many of the key elements in place to begin effectively addressing the significant debt we have inherited." A copy of the press release is available for free at: http://is.gd/BMtN2a About Unigene Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/ -- is a biopharmaceutical company focusing on the oral and nasal delivery of large-market peptide drugs. Grant Thornton LLP, in New York, expressed substantial doubt about Unigene Laboratories' ability to continue as a going concern following the Company's 2009 results. The firm noted that the Company has incurred a net loss of $13,400,000 during the year ended Dec. 31, 2009 and has an accumulated deficit of approximately $143,000,000 as of Dec. 31, 2009. As of that date, the Company's current liabilities exceeded its current assets by $1,251,000 and its total liabilities exceeded total assets by $30,442,000. US CAPITAL HOLDINGS: CanPartners Foreclosure Cues Ch. 11 Filing --------------------------------------------------------------- Brian Bandell, senior reporter at the South Florida Business Journal, reports that CanPartners Realty Holdings, an affiliate of Canyon Capital Realty Advisors, filed a foreclosure lawsuit against U.S. Capital/Fashion Mall over a $15 million mortgage on the 660,000-square-foot former mall. The loan is guaranteed by Chinese citizen Wei Chen. The report says the foreclosure lawsuit is the third time in the past five years. Fashion Mall subsequently filed for bankruptcy. The mall has been closed over fire safety violations. U.S. Capital planned to redevelop it. About US Capital Holdings US Capital Holdings, LLC, and an affiliate, US Capital/Fashion Mall, LLC, filed Chapter 11 petitions (Bankr. S.D. Fla. Case Nos. 12-14517 and 12-14519) in Forth Lauderdale, Florida, on Feb. 24, 2012. US Capital/Fashion Mall is the owner of the former "Fashion Mall at Plantation", now vacant, located at 321 N. University Drive, in Plantation, Florida. US Capital Holdings is the 100% owner of US Capital/Fashion Mall. The mall -- http://www.321north.com-- is presently dormant, in part, as a result of a redevelopment plan for the mall of a project called 321 North, which is intended to be a major, retail, office and residential project. The mall suffered extensive hurricane damage from Hurricane Wilma, and has yet to be paid on its insurance claim. Judge John K. Olson presides over the case. VERSO PAPER: S&P Rates $345-Mil. Senior Secured Notes at 'BB-' -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' issue-level rating (two notches higher than the corporate credit rating) and '1' recovery rating to Verso Paper Holdings LLC's proposed $345 million senior secured notes due 2019. The '1' recovery rating indicates expectations for very high (90% to 100%) recovery of principal in the event of payment default. The notes are expected to be sold pursuant to Rule 144A of Securities Act of 1933. The company intends to use net proceeds from the proposed senior secured notes to pay the consideration for its announced cash tender offer for its existing 315 million 11.5% senior secured notes due 2014 and to pay for certain related transaction costs and expenses. "The 'B' corporate credit rating on the company remains unchanged and reflects Standard & Poor's Ratings Services' view of the combination of its 'highly leveraged' financial risk and 'weak' business risk. Our ratings incorporate the company's limited product diversity, substitution risks due to changing customer preferences for greater electronic content, and vulnerability to fluctuations in input costs and selling prices. In addition, despite our expectation that credit measures will remain somewhat weak over the next year, we expect liquidity to remain adequate, attributable to its cash position, proposed new credit facilities, and manageable near-term debt maturity profile following the proposed transaction and tender offer," S&P said. Verso's core business is as a producer of coated freesheet and coated groundwood papers serving customers in the catalog, magazine, inserts, and commercial-print markets. Ratings List Verso Paper Holdings LLC Corporate credit rating B/Stable/-- New Rating Proposed $345 mil sr secd nts due 2019 BB- Recovery rating 1 WAIAKEA WATERFRONT: Case Summary & Largest Unsecured Creditor ------------------------------------------------------------- Debtor: Waiakea Waterfront LLC 400 Hualani Street, Suite 400 Hilo, HI 96720 Bankruptcy Case No.: 12-00497 Chapter 11 Petition Date: March 7, 2012 Court: United States Bankruptcy Court District of Hawaii (Honolulu) Judge: Robert J. Faris Debtor's Counsel: Ramon J. Ferrer, Esq. LAW OFFICE OF RAMON J. FERRER 135 S. Wakea Ave., Suite 204 Kahului, HI 96732 Tel: (808) 891-1414 Fax: (808) 877-3682 E-mail: ramonlawfirm@hotmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ County of Hawaii Real property taxes $55,000 Prop. Tax 101 Pauahi Street #4 Hilo, HI 96720 The petition was signed by Vernon Lindsey, member manager. WATERLOO RESTAURANT: In Chapter 11 to Sell Assets ------------------------------------------------- Waterloo Restaurant Ventures, Inc., filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 12-31573) in Dallas on March 8, 2012. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Waterloo, the operator of 12 Romano's Macaroni Grill restaurants, said it intends to use the bankruptcy court for a "successful sale process." Based in Vancouver, Washington, Waterloo owes $11.4 million to General Electric Capital Corp., the secured lender. According to the report, GECC is providing $500,000 under an interim loan agreement. Once final approval is given by the bankruptcy court, GECC will have the right to increase the loan by $300,000. The loan for the Chapter 11 process will mature in 60 days and bear interest at 14 percent. The Debtor has 12 stores are in California, Oregon and Washington. The Italian-style casual dining chain said there was a "dramatic decrease in sales in the majority of the franchises" the company owns. Some were generating negative cash flows from operations, a court filing says. Waterloo is represented by Michael "Buzz" Rochelle, Esq., brother of Bloomberg reporter Bill Rochelle. Waterloo filed for reorganization in Dallas, because that's where the president and chief financial officers maintain their offices. Waterloo estimated assets and debts of $10 million to $50 million. WATERLOO RESTAURANT: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Waterloo Restaurant Ventures, Inc. 7341 Wellcrest Drive Dallas, TX 75230 Bankruptcy Case No.: 12-31573 Chapter 11 Petition Date: March 8, 2012 Court: U.S. Bankruptcy Court Northern District of Texas (Dallas) Judge: Barbara J. Houser About the Debtor: Waterloo operates 12 Romano's Macaroni Grill restaurants in California, Oregon and Washington. The Italian-style casual dining chain said there was a "dramatic decrease in sales in the majority of the franchises" the company owns. Waterloo owes $11.4 million to General Electric Capital Corp., the secured lender. Debtor's Counsel: Michael R. Rochelle, Esq. ROCHELLE MCCULLOUGH L.L.P. 325 N. St. Paul Street, Suite 4500 Dallas, TX 75201 Tel: (214) 953-0182 Fax: (214) 953-0185 E-mail: doler@romclawyers.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Ray Oler, president. Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Sysco-Portland -- $249,991 P.O. Box 2210 Wilsonville, OR 97070 MAC Acquisition -- $101,651 P.O. Box 842539 Dallas, TX 75284-2539 Allan A. Sebanc -- $66,197 102 Stonepine Road Hillsborough, CA 94010 Freshpoint -- $61,797 Alderwood Mall LLC -- $54,173 Pioneer Place LLC -- $53,966 Clackamas Mall LLC -- $46,190 Bohannon Development Co. -- $44,839 Northgate Mall Partnership -- $41,771 BV Centercal LLC -- $40,472 Streets of Tanasbourne LLC -- $34,368 Sysco Intermountain Food Service -- $33,709 Charlie's Produce -- $30,452 Albert and Judith Lamperti -- $23,830 New System Laundry LLC -- $22,610 Wasserstrom Company Inc. -- $21,805 KMV Properties LLC -- $18,582 Aramark Uniform Services -- $18,443 Southern Wine & Spirits of N. C.A. -- $13,777 Cool Temp Inc. -- $12,038 WAVELAND PROFESSIONAL: Voluntary Chapter 11 Case Summary -------------------------------------------------------- Debtor: Waveland Professional Plaza, LLC P.O. Box 4281 Bay Saint Louis, MS 39521 Bankruptcy Case No.: 12-50448 Chapter 11 Petition Date: March 6, 2012 Court: United States Bankruptcy Court Southern District of Mississippi (Gulfport Divisional Office) Judge: Katharine M. Samson Debtor's Counsel: Patrick A. Sheehan, Esq. SHEEHAN & JOHNSON, PLLC P.O. Drawer 8299 Biloxi, MS 39535 Tel: (228) 875-0572 Fax: (228) 875-0895 E-mail: pat@sheehanlawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by John Neumeyer, authorized agent. WEIGHT WATCHERS: S&P Assigns 'BB+' Senior Secured Debt Rating ------------------------------------------------------------- Standard & Poor's Rating Services assigned its issue-level and recovery ratings to Weight Watchers International (WWI) Inc.'s proposed new senior secured debt: up to approximately $900 million to $1 billion in bank debt and up to approximately $500 million to $600 million in institutional debt, due in 2017 and 2019. "The assigned issue-level rating for each tranche is 'BB+', one notch above the corporate credit rating on WWI. The recovery rating is '2', indicating our expectation for substantial recovery (70% to 90%) in the event of a payment default," S&P said. WWI will use the proceeds from this up to $1.5 billion total new issuance for share repurchases. Artal Holdings Sp. Z. o.o. Succursale de Luxembourg's share of ownership is to remain unchanged at approximately 52%. "Financial covenants similar to those applying to the existing credit facilities will govern the new facilities: total net leverage (defined as the ratio of net debt to EBITDA) of 5.0x, subject to step-downs, and EBITDA coverage of interest expense of 2.0x. We expect WWI to continue to maintain significant covenant cushions," S&P said. Ratings List Weight Watchers International Inc. Corporate credit rating BB/Negative/-- New Rating Weight Watchers International Inc. Senior secured BB+ Recovery rating 2 WESTAR ENERGY: Moody's Issues Summary Credit Opinion ---------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Westar Energy, Inc. and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Westar Energy, Inc. and its affiliates. Moody's current ratings on Westar Energy, Inc. and its affiliates are: First Mortgage Bonds domestic currency ratings of A3 Senior Secured Bank Credit Facility domestic currency ratings of A3 LT Issuer Rating ratings of Baa2 Pref. Stock domestic currency ratings of Ba1 Senior Secured Shelf domestic currency ratings of (P)A3 Senior Unsec. Shelf domestic currency ratings of (P)Baa2 Pref. Shelf domestic currency ratings of (P)Ba1 Commercial Paper domestic currency ratings of P-2 Backed First Mortgage Bonds domestic currency ratings of A3 Underlying First Mortgage Bonds domestic currency ratings of A3 Kansas Gas and Electric Company First Mortgage Bonds domestic currency ratings of A3 Senior Secured domestic currency ratings of A3 LT Issuer Rating domestic currency ratings of Baa2 Senior Secured Shelf domestic currency ratings of (P)A3 Backed First Mortgage Bonds domestic currency ratings of A3 Underlying First Mortgage Bonds domestic currency ratings of A3 Ratings Rationale Westar's (P)Baa2 rating (senior unsecured) reflects the company's constructive regulatory jurisdiction and cost recovery provisions, credit metrics currently in line with the "Baa" rating category, and its significant low-cost generating capacity. Rating challenges include the company's sizeable budget for transmission build and environmental spending; aimed at reducing emissions at its predominately coal fired generating fleet. Also reflected in the rating is the company's relatively small size and lack of regional diversification given its concentration in Kansas. KGE has an atypical corporate structure in that it is a regulated utility owned by a parent regulated utility, Westar. As such, there is no parent "holding company". Although Westar is organized as two separate legal entities (Westar and KGE) Moody's has historically viewed Westar as one entity for rating purposes. KGE's first mortgage bonds (A3) are currently rated the same as Westar's first mortgage bonds due to a lack of any meaningful restrictions in the movement of funds between the subsidiary and the parent company, the sharing of bank credit facilities and the commingling of treasury and cash management functions, which minimizes the distinction between the overall risk profiles of the two entities. As a practical matter, the companies are also effectively operated as one in terms of meeting the day-to-day business needs of its customers. Rating Outlook The rating outlook is stable. Moody's expects the company to maintain its mid Baa credit profile and adequate liquidity during this heavy period of rate base growth. What Could Change the Rating - Up Given the recent upgrade and large capital spending plan, further positive rating action at this time is unlikely. However, ratings could be positively affected if financial metrics improve and are sustained at levels that are strong for the Baa rating category, including CFO pre-w/c interest coverage approaching 4.5x and CFO pre-w/c to debt of at least 20%. What Could Change the Rating - Down Downward pressure on the company's rating could arise over a change in its regulatory relationship, a substantial increase in capital spending especially if financed with an over-emphasis on debt, resulting in a sustained deterioration of credit metrics that would result CFO (pre W/C) to debt falling lower than 13% and RCF to debt declining to below 9% for an extended period. The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in August 2009. YACOOBIAN ENTERPRISES: Bristol Buys 3 Hotels for $9.8 Million ------------------------------------------------------------- The Los Angeles Times reports that The King Edward, the Baltimore and the Leland hotels, scattered around the intersection of 5th and Los Angeles streets, have been sold to developers for $9.8 million at a bankruptcy auction to a partnership named Bristol 423. The three locations were most recently owned by Yacoobian Enterprises LP, which filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 10-_____) on Aug. 8, 2010. ZALE CORP: Files Form 10-Q, Reports $28.8MM Earnings in Q2 2012 --------------------------------------------------------------- Zale Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net earnings of $28.84 million on $663.76 million of revenue for the three months ended Jan. 31, 2012, compared with net earnings of $27.21 million on $626.41 million of revenue for the same period a year ago. The Company reported a net loss of $3.03 million on $1.01 billion of revenue for the six months ended Jan. 31, 2012, compared with a net loss of $70.67 million on $953.45 million of revenue for the same period during the prior year. The Company's balance sheet at Jan. 31, 2012, showed $1.25 billion in total assets, $1.05 billion in total liabilities and $202.29 million in total stockholders' investment. A copy of the Form 10-Q is available for free at: http://is.gd/g0iqKw About Zale Corporation Based in Dallas, Texas, Zale Corporation (NYSE: ZLC) -- http://www.zalecorp.com/-- is a specialty retailer of diamonds and other jewelry products in North America, operating approximately 1,900 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corporation's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at http://www.zales.com/, http://www.zalesoutlet.com/, http://www.gordonsjewelers.com/and http://www.pagoda.com/ ZOGENIX INC: Incurs $23.7 Million Net Loss in Fourth Quarter ------------------------------------------------------------ Zogenix, Inc., reported a net loss of $23.70 million on $7.90 million of total revenues for the three months ended Dec. 31, 2011, compared with a net loss of $2.13 million on $8.80 million of total revenues for the same period a year ago. The Company reported a net loss of $83.90 million on $37.57 million of total revenues for the year ended Dec. 31, 2011, compared with a net loss of $73.56 million on $23.44 million of total revenues during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $100.64 million in total assets, $91.32 million in total liabilities and $9.31 million in total stockholders' equity. Roger Hawley, chief executive officer of Zogenix, stated, "We continued to drive positive SUMAVEL DosePro prescription growth in the fourth quarter. During this time, we reached an agreement with Astellas to conclude our co-promotion agreement for SUMAVEL DosePro in the primary care segment at the end of the first quarter 2012. We have implemented a detailed transition plan which we believe will help ensure uninterrupted access and service to most physicians in the Astellas segment. Zogenix's expanded sales force is now focused on leveraging our published Phase 4 data and innovative patient starter kit to drive adoption among headache specialists, neurologists, and key primary care physicians." A copy of the press release is available for free at: http://is.gd/KpuUve About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. As reported in the TCR on March 8, 2011, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about Zogenix's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's recurring losses from operations and lack of sufficient working capital. ZOO ENTERTAINMENT: In Talks with D. Smith on Possible Financing --------------------------------------------------------------- David E. Smith and his affiliates disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that they may provide additional financing to Zoo Entertainment, Inc., through various agreements, including but not limited to, factoring and other lending facilities, which may contain provisions that permit conversion into equity securities. Additionally, the Reporting Persons may determine to sell or otherwise dispose of all or some of their holdings of shares of common stock at any time. Mr. Smith is the president of Coast Offshore Management. Coast Offshore Management is the managing general partner of The Coast Fund. The Coast Fund is the sole member of Coast Medina. Mr. Smith and his affiliates disclosed that, as of Feb. 29, 2012, they beneficially own 2,216,290 shares of common stock of Zoo Entertainment, Inc., representing 26.5% of the shares outstanding. A copy of the regulatory filing is available for free at: http://is.gd/0tYCGO About Zoo Entertainment Cincinnati, Ohio-based Zoo Entertainment, Inc. (NASDAQ CM: ZOOG) is a developer, publisher and distributor of interactive entertainment for Internet-connected consoles, handheld gaming devices, PCs, and mobile devices. The Company reported a net loss of $19.74 million on $8.59 million of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $837,000 on $43.71 million of revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $6.19 million in total assets, $13.03 million in total liabilities and a $6.84 million total stockholders' deficit. As reported in the TCR on Apr 26, 2011, EisnerAmper LLP, in Edison, N.J., expressed substantial doubt about Zoo Entertainment's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has both incurred losses and experienced net cash outflows from operations since inception. ZOO ENTERTAINMENT: MMB Agrees to Provide $200,000 Add'l Funding --------------------------------------------------------------- Zoo Publishing, Inc., a wholly-owned subsidiary of Zoo Entertainment, Inc., entered into the Fourth Amendment to Second Amended and Restated Factoring and Security Agreement with Panta Distribution, LLC, and MMB Holdings LLC, pursuant to which the parties agreed to amend that certain Second Amended and Restated Factoring and Security Agreement dated as of Oct. 28, 2011. Pursuant to the Factoring Agreement Amendment, MMB agreed to provide $200,000 in additional funding to Zoo Publishing under the Factoring Agreement. The Additional Funding will bear interest at the lesser of a rate of 15% per annum, or the maximum rate permitted by law. MMB, a limited liability company organized under the laws of Delaware, is owned by David E. Smith, a former director of the Company, and Jay A. Wolf, Executive Chairman of the Board of Directors of the Company. Each of Mr. Smith and Mr. Wolf is a member, equity owner, and officer or manager, as the case may be, of MMB, and Mr. Smith is the managing member of Mojobear Capital, the managing member of MMB. About Zoo Entertainment Cincinnati, Ohio-based Zoo Entertainment, Inc. (NASDAQ CM: ZOOG) is a developer, publisher and distributor of interactive entertainment for Internet-connected consoles, handheld gaming devices, PCs, and mobile devices. The Company reported a net loss of $19.74 million on $8.59 million of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $837,000 on $43.71 million of revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $6.19 million in total assets, $13.03 million in total liabilities and a $6.84 million total stockholders' deficit. As reported in the TCR on Apr 26, 2011, EisnerAmper LLP, in Edison, N.J., expressed substantial doubt about Zoo Entertainment's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has both incurred losses and experienced net cash outflows from operations since inception. * Chicago's City National Bank Failure is 13th This Year -------------------------------------------------------- City National Bank of Chicago was taken over by regulators on March 9. The Federal Deposit Insurance Corp. was unable to find another bank to take over the business. The failed bank has $72.4 million in deposits. The FDIC estimated the failure will cost the insurance fund $17.4 million. The failure was the 13th this year. In 2010, 157 banks with $92.1 billion in total assets failed while 92 institutions with $34.9 billion in total assets were closed in 2011. As the economy recovers and the 2007-2009 financial crisis fades further into the distance, the pace of bank failures has slowed, Reuters notes. According to Reuters, smaller banks, particularly those with less than $1 billion in assets, have made up the majority of closures the past few years. 2012 Failed Banks List The FDIC was appointed as receiver for the closed banks. To protect the depositors, the FDIC entered into a purchase and assumption agreement with various banks that agreed to assume the deposits of most of the closed banks. The FDIC also entered into loss-share transactions on assets bought by the banks. For this year, the failed banks are: Loss-Share Transaction Party FDIC Cost Assets of Bank That Assumed to Insurance Closed Bank Deposits & Bought Fund Closed Bank (millions) Certain Assets (millions) ----------- ----------- ----------------- ------------ New City Bank $71.2 [No Acquirer] $17.4 Global Commerce Bank $143.7 Metro City Bank $17.9 Home Savings of Amer. $434.1 [No Acquirer] $38.8 Central Bank of Georgia $278.9 Ameris Bank $67.5 Charter National Bank $93.9 Barrington Bank $17.4 SCB Bank $182.6 First Merchants Bank $33.9 Tennessee Commerce $1,185.0 Republic Bank & Trust $416.8 First Guaranty Bank $377.9 CenterState Bank $82.0 BankEast $272.6 U.S. Bank N.A. $75.6 Patriot Bank $111.3 First Resource Bank $32.6 The First State Bank $416.8 Hamilton State Bank $416.8 Central Florida $79.1 CenterState Bank $24.4 American Eagle $19.6 Capital Bank, N.A. $3.2 In 2011 there were 92 failed banks, compared with 157 in 2010, 140 in 2009 and just 25 for 2008. A complete list of banks that failed since 2000 is available at: http://www.fdic.gov/bank/individual/failed/banklist.html 813 Banks in Problem List The FDIC's Quarterly Banking Profile for Dec. 31, 2011, says that The number of institutions on the FDIC's "Problem List" declined from 844 to 813 during the quarter, and total assets of "problem" institutions fell from $339 billion to $319.4 billion. The number of institutions in the "problem list" has decreased for the third consecutive quarter. The FDIC defines "problem" institutions as those with financial, operational or managerial weaknesses that threaten their viability. The deposit insurance fund, which protects customer holdings up to $250,000 per account in the event of a failure, saw its balance increase in the fourth quarter to $9.2 billion (unaudited) from $7.8 billion in the third quarter, the eighth consecutive quarterly increase. Problem Institutions Failed Institutions -------------------- ------------------- Year Number Assets (Mil) Number Assets (Mil) ---- ------ ------------ ------ ------------ 2011 813 $319,432 92 $34,923 2010 884 $390,017 157 $92,085 2009 702 $402,800 140 $169,700 2008 252 $159,405 25 $371,945 2007 76 $22,189 3 $2,615 2006 50 $8,265 0 $0 2005 52 $6,607 0 $0 2004 80 $28,250 4 $170 Federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is based on a scale of 1 to 5 in ascending order of supervisory concern. "Problem" institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the degree of risk and supervisory concern, they are rated either a "4" or "5." The number and assets of "problem" institutions are based on FDIC composite ratings. Prior to March 31, 2008, for institutions whose primary federal regulator was the OTS, the OTS composite rating was used. * S&P 2012 Global Corporate Defaults Tally Rises to 23 ------------------------------------------------------ Two U.S.-based issuers and one Brazil-based issuer defaulted last week, raising the 2012 global corporate default tally to 23, said an article published March 8 by Standard & Poor's Global Fixed Income Research, titled "Global Corporate Default Update (March 1 - 7, 2012)." The first defaulter was Brazil-based electricity distributor Centrais Eletricas do Para. Standard & Poor's Ratings Services lowered its rating on Centrais Eletricas do Para, to 'D' from 'CCC+' following the firm's judicial reorganization filing. Standard & Poor's lowered its rating on the second defaulter, U.S.-based gaming operator Circus and Eldorado Joint Venture to 'D' from 'CCC-' after the company failed to pay principal on its mortgage notes at maturity. The last defaulter, Native American gaming operator Mohegan announced the completion of its comprehensive debt refinancing transactions, including the consummation of its exchange offers and the amendment and restatement of its credit facility. Subsequently, Standard & Poor's lowered its issuer credit rating on the company to 'SD' (selective default) from 'CC'. Of the 23 total defaults this year, 14 were based in the U.S., five in the emerging markets, three in Europe, and one in the other developed region (Australia, Canada, Japan, and New Zealand). S&P revised this tally after its monthly reconciliation process to include two issuers that defaulted last month whose ratings were withdrawn in 2009. One rating was withdrawn at the issuer's request and the other was withdrawn as a result of a ratings policy change on Dec. 18, 2008. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 125.3 (7.2) 10.8 ACCO BRANDS CORP ABD US 1,116.7 (61.9) 316.8 AMC NETWORKS-A AMCX US 2,121.5 (1,065.5) 519.5 AMER AXLE & MFG AXL US 2,328.7 (419.6) 187.0 AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2) AMERISTAR CASINO ASCA US 2,012.0 (90.6) (33.0) AMYLIN PHARM INC AMLN US 1,870.2 (138.7) 125.2 ANOORAQ RESOURCE ARQ SJ 927.7 (148.7) 29.2 ARRAY BIOPHARMA ARRY US 82.2 (127.2) (15.1) AUTOZONE INC AZO US 6,056.5 (1,295.5) (608.2) BAZAARVOICE INC BV US 46.8 (15.4) (18.2) BLUEKNIGHT ENERG BKEP US 320.8 (12.5) (69.9) BOSTON PIZZA R-U BPF-U CN 146.9 (105.3) (2.0) CABLEVISION SY-A CVC US 7,143.3 (5,560.3) (240.5) CADIZ INC CDZI US 49.3 (4.7) 2.5 CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CC MEDIA-A CCMO US 16,542.0 (7,471.9) 1,556.3 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CENVEO INC CVO US 1,385.6 (381.7) 199.9 CERES INC CERE US 33.1 (13.7) 12.0 CHENIERE ENERGY CQP US 1,737.3 (545.0) 57.7 CHENIERE ENERGY LNG US 2,915.3 (173.0) 6.5 CHOICE HOTELS CHH US 447.7 (25.6) 10.2 CIENA CORP CIEN US 1,918.3 (21.1) 918.6 CINCINNATI BELL CBB US 2,714.7 (715.2) (35.4) CLOROX CO CLX US 4,290.0 (199.0) (289.0) CLOVIS ONCOLOGY CLVS US 26.4 (18.1) (19.2) CROWN HOLDINGS I CCK US 6,868.0 (239.0) 318.0 DEAN FOODS CO DF US 5,754.4 (98.7) 220.8 DELTA AIR LI DAL US 43,499.0 (1,396.0) (4,972.0) DENNY'S CORP DENN US 350.5 (9.7) (25.9) DIGITAL DOMAIN M DDMG US 178.9 (85.7) (38.3) DIRECTV-A DTV US 18,423.0 (2,842.0) (502.0) DISH NETWORK-A DISH US 11,470.2 (419.0) 527.3 DISH NETWORK-A EOT GR 11,470.2 (419.0) 527.3 DOMINO'S PIZZA DPZ US 480.5 (1,209.7) 129.7 DUN & BRADSTREET DNB US 1,977.1 (740.2) (226.6) FREESCALE SEMICO FSL US 3,415.0 (4,480.0) 1,432.0 GENCORP INC GY US 939.5 (207.2) 101.1 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GOLD RESERVE INC GRZ US 85.2 (19.9) 60.2 GOLD RESERVE INC GRZ CN 85.2 (19.9) 60.2 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 GRAMERCY CAPITAL GKK US 4,514.8 (598.1) - HCA HOLDINGS INC HCA US 26,898.0 (7,014.0) 1,679.0 HUGHES TELEMATIC HUTCU US 94.0 (111.8) (39.0) HUGHES TELEMATIC HUTC US 94.0 (111.8) (39.0) INCYTE CORP INCY US 329.0 (227.1) 175.2 IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 153.1 (49.1) 2.3 JUST ENERGY GROU JE US 1,644.4 (394.5) (338.4) JUST ENERGY GROU JE CN 1,644.4 (394.5) (338.4) LIN TV CORP-CL A TVL US 815.8 (115.0) 56.6 LIZ CLAIBORNE LIZ US 950.0 (109.0) 124.8 LORILLARD INC LO US 3,008.0 (1,513.0) 1,079.0 MANNING & NAPIER MN US 66.1 (184.6) - MARRIOTT INTL-A MAR US 5,910.0 (781.0) (1,234.0) MEAD JOHNSON MJN US 2,766.8 (168.0) 689.6 MERITOR INC MTOR US 2,553.0 (983.0) 180.0 MONEYGRAM INTERN MGI US 5,175.6 (110.2) (40.4) MOODY'S CORP MCO US 2,876.1 (158.4) 290.4 MORGANS HOTEL GR MHGC US 557.7 (84.5) 18.3 NATIONAL CINEMED NCMI US 820.2 (346.8) 68.4 NAVISTAR INTL NAV US 11,503.0 (190.0) 2,238.0 NEXSTAR BROADC-A NXST US 582.7 (187.0) 26.2 NPS PHARM INC NPSP US 214.0 (46.1) 156.0 NYMOX PHARMACEUT NYMX US 6.5 (5.5) 3.3 ODYSSEY MARINE OMEX US 25.8 (0.7) (4.1) OTELCO INC-IDS OTT US 317.7 (12.4) 18.6 OTELCO INC-IDS OTT-U CN 317.7 (12.4) 18.6 PALM INC PALM US 1,007.2 (6.2) 141.7 PDL BIOPHARMA IN PDLI US 269.5 (204.3) 100.5 PETROALGAE INC PALG US 8.3 (76.0) (77.4) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PRIMEDIA INC PRM US 208.0 (91.7) 3.6 PROTECTION ONE PONE US 562.9 (61.8) (7.6) QUALITY DISTRIBU QLTY US 302.4 (106.2) 45.8 REGAL ENTERTAI-A RGC US 2,341.3 (572.5) 2.8 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTECH NITROGEN RNF US 152.4 (76.1) (32.3) REVLON INC-A REV US 1,157.1 (692.9) 183.3 RSC HOLDINGS INC RRR US 3,141.0 (38.4) (1.0) RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SALLY BEAUTY HOL SBH US 1,792.7 (168.5) 482.3 SINCLAIR BROAD-A SBGI US 1,571.4 (111.4) 14.1 SINCLAIR BROAD-A SBTA GR 1,571.4 (111.4) 14.1 SMART TECHNOL-A SMT US 529.8 (7.1) 183.9 SMART TECHNOL-A SMA CN 529.8 (7.1) 183.9 SUN COMMUNITIES SUI US 1,368.0 (100.7) - SYNERGY PHARMACE SGYP US 2.1 (8.6) (6.1) TAUBMAN CENTERS TCO US 3,336.8 (256.2) - THERAVANCE THRX US 258.8 (87.1) 199.3 UNISYS CORP UIS US 2,612.2 (1,311.0) 487.3 VECTOR GROUP LTD VGR US 927.8 (89.0) 194.5 VERISIGN INC VRSN US 1,856.2 (88.1) 788.9 VERISK ANALYTI-A VRSK US 1,541.1 (98.5) 104.0 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WTW US 1,121.6 (409.8) (279.7) WESTMORELAND COA WLB US 769.0 (174.4) (5.9) ********* 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, Ivy B. Magdadaro, 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 ***