/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/120501.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, May 1, 2012, Vol. 16, No. 120 Headlines 1701 COMMERCE: Files Schedules of Assets and Liabilities 1701 COMMERCE: May 24 Hearing Set for Hiring of Property Manager 1701 COMMERCE: Protective Order Governing Disclosures Approved 301 CIRCLE: Case Summary & 2 Largest Unsecured Creditors 4KIDS ENTERTAINMENT: Judge OKs $10M Sale Of 'Yu-Gi-Oh' Rights ADAMS PRODUCE: Files for Chapter 11 in Birmingham AFFINITY GAMING: S&P Raises Corporate Credit Rating to 'B+' ALLY FINANCIAL: Mulls Filing Bankruptcy for ResCap Unit ALLY FINANCIAL: Files Form 10-Q, Posts $310MM Net Income in Q1 AMBASSADORS INT'L: Execs Demand Defense Coverage for DOJ Claims AMERICAN AIRLINES: Has Go-Signal to Hire Deloitte Financial AMERICAN AIRLINES: Wins OK to Hire Deloitte Consulting AMERICAN AIRLINES: $3.6-Mil. in Claims Changed Hands in March ANTS SOFTWARE: Ironridge Global Discloses 4.9% Equity Stake APEX KATY: Files Schedules of Assets and Liabilities APEX KATY: Hires Hoover Slovacek as Counsel ASSOCIATED MATERIALS: S&P Lowers Corporate Credit Rating to 'B-' ATHILON CAPITAL: S&P Raises Issuer Credit Rating to 'BB+' AURASOUND INC: W. Kurtz and P. Andreyev Resign from Board B & T OLSON: Case Summary & 12 Largest Unsecured Creditors BAKERS FOOTWEAR: Incurs $10.9 Million Net Loss in Fiscal 2012 BANK PROPERTY: Case Summary & 8 Largest Unsecured Creditors BENEDICT BOMMARITO: Court Wants Plan Outline Amended BERNARD L. MADOFF: Trustee Files $330M Suit vs. Standard Chartered BEST INTERNATIONAL: Case Summary & 20 Largest Unsecured Creditors BROADMORE ASSOCIATES: Voluntary Chapter 11 Case Summary C & M RUSSEL: Plan Filing Exclusivity Ends June 18 C-FSG426, LLC: Voluntary Chapter 11 Case Summary C-NGA314, LLC: Voluntary Chapter 11 Case Summary C-NGA315, LLC: Voluntary Chapter 11 Case Summary CANO PETROLEUM: Taps Kane Russell for Matters on Prepetition Liens CANO PETROLEUM: General and Governmental Claims Due May 7 CAPITOL INFRASTRUCTURE: Case Summary & Creditors List CATASYS INC: Issues 10.9 Million Common Shares to Socius CDC CORP: Equity Committee Says Motion to Dismiss Inadequate CDC CORP: Taps K2 Advisors to Perform Accounting Services CHATSWORTH INDUSTRIAL: May 24 Hearing on Full-Payment Plan CHEF SOLUTIONS: Debtor Wins Confirmation of Liquidating Plan CHESAPEAKE ENERGY: S&P Lowers Corporate Credit Rating to 'BB' CHINA TEL GROUP: Amends Loan Agreement with Isaac CLARE AT WATER TOWER: Sale-Based Chapter 11 Plan Confirmed CLINTONDALE COMMUNITY: Moody's Affirms 'Ba3' GOULT Debt Rating CINEMARK USA: S&P Raises Rating on Senior Secured Debt to 'BB+' COMMUNICATION INTELLIGENCE: Closes $1 Million Bridge Financing COMMUNICATIONS CORP: Moody's Assigns 'B3' CFR; Outlook Stable COMMUNICATIONS CORP: S&P Assigns 'B' Prelim Corp. Credit Rating COMMUNITY FIRST: Has Written Agreement with FRB Atlanta CONTRACT RESEARCH: Alston & Bird OK'd to Give Commercial Advice CONTRACT RESEARCH: Carl Marks Approved as Restructuring Advisors CONTRACT RESEARCH: Can Hire Stikeman Elliot as Canadian Counsel CONTRACT RESEARCH: Hearing on Further Cash Access Today CRYOPORT INC: Amends Form S-1 for 55.7-Mil. Shares Offering DAVID ANDERSON: Must File Motion to Estimate Claims by May 14 DELPHI CORP: Ex-Employee Seeks Extension of Disability Benefits DELTA PETROLEUM: Taps Pinckney Harris as Special Conflicts Counsel DJ CHRISTIE: Court Directs Bond Insurer to Keep Proceeds DJ CHRISTIE: Bankr. Court Won't Supplant District Court Order DYNEGY INC: Reaches Deal With Holdings' Creditors DYNEGY HOLDINGS: Wants Claren Road Subpoenas Quashed DYNEGY HOLDINGS: Claren Wants Chapter 11 Trustee to Take Over EASTMAN KODAK: Cancels Deal to Sell Times Square Billboard Lease EASTMAN KODAK: Lazard Freres Work to Include Gallery Sale EASTMAN KODAK: Brinks Hofer Okayed for ITC Suit vs. Apple, Samsung EASTMAN KODAK: K&L Gates Approved as Atty. for ITC Suits EASTMAN KODAK: Nixon Peabody Okayed for Calif. Anti-Trust Suit EASTPOINTE MANOR INC: Court Directs Revision to Plan Outline EASTPOINTE MANOR REALTY: Plan Outline Has Flaws EL CENTRO MOTORS: Proofs of Claim Due May 15 EL CENTRO MOTORS: Hires Levene Neale as Lead Bankruptcy Counsel ELECTRICAL COMPONENTS: S&P Affirms 'B' Corporate Credit Rating EMMIS COMMUNICATIONS: NASDAQ Grants Continued Listing Request EQT CORPORATION: Moody's Issues Summary Credit Opinion FILENE'S BASEMENT: Shareholders Object Bid to Probe Executives FIRST BANKS: Swings to $6.8 Million Net Income in First Quarter FONAR CORP: Bruderman Brothers' R. Lehman Named Ind. Director FREMONT HOSPITALITY: Case Summary & Unsecured Creditor GAC STORAGE: To Fund Plan from Cash and Equity Contributions GAMETECH INT'L: Four Directors Elected at Annual Meeting HAYDEL PROPERTIES: Taps Alfonso for Sale of 9424 Three Rivers HAYDEL PROPERTIES: Taps Mark Cumbest as Real Estate Broker HAYDEL PROPERTIES: Taps Owen & Co. as Real Estate Broker HEAVENS BEACH: Case Summary & 4 Largest Unsecured Creditors HOFFMASTER GROUP: S&P Affirms 'B' Corporate Credit Rating HUNTSMAN CORP: S&P Raises Corporate Credit Rating to 'BB' ICOP DIGITAL: Court Confirms Plan of Liquidation INDEPENDENCE TAX: Continues to Engage Raich Ende as Accountants INDIANAPOLIS DOWNS: To Sell Horse Racing, Casino Business INFUSYSTEM HOLDINGS: Kleinheiz Capital Holds 8.7% Equity Stake INTERFACE INC: Moody's Says Restructuring Credit Positive INTERNAL FIXATION: Henry Brown Succeeds Laura Cattabriga as CFO JAMES RIVER: Two Directors Elected at Annual Meeting JB FLEX: Can Renew Restaurant Lease in Cincinnati JOSABI NY: Case Summary & 4 Largest Unsecured Creditors KERZNER INT'L: Completes $2.3-Billion Debt Restructuring KIEBLER RECREATION: Ch.11 Trustee Seeks Chapter 7 Conversion KGHM INT'L: Moody's Lowers Corp. Family Rating to 'B3' KINDER MORGAN: S&P Rates $13.5 Billion Debt Facilities 'BB' LEXINGTON CONSULTING: Case Summary & 2 Largest Unsecured Creditors LIGHTSQUARED INC: Creditors Extend Talks for Another Week LIQUIDMETAL TECHNOLOGIES: Issues $300,000 P-Note to Vesser LPATH INC: Files Amendments to Class A Common Shares Offerings LSSR, LLC: Case Summary & 2 Largest Unsecured Creditors LV BLVD: Case Summary & 20 Largest Unsecured Creditors MAJESTIC CAPITAL: First Amended Chapter 11 Plan Confirmed MASTRO RESTAURANTS: S&P Raises Corporate Credit Rating to 'B-' MOLSON COORS: S&P Gives 'BB+' Debt Securities Subordinated Rating NORTHERN BERKSHIRE: Court Considers Cash Collateral Access Today NORTHERN BERKSHIRE: Bulkley Richardson OK'd as Labor Counsel NORTHERN BERKSHIRE: Court OKs Denterlein Worldwide Employment OLD CORKSCREW: Has Cash Access Until Plan Becomes Effective PFF BANCORP: Plan Confirmed Using Cramdown on TruPS PINE RIDGE: Case Summary & 5 Largest Unsecured Creditors PINNACLE AIRLINES: OK'd to Continue L/C & Surety Bond Programs PINNACLE AIRLINES: OK'd to Honor Interline, Code Share Obligations PINNACLE AIRLINES: Court Approves Sale of Certain Assets PJ FINANCE: Committee Can Hire WDC Solutions as Disbursing Agent PPL CORP: Moody's Assigns '(P)Ba2' Rating to Preferred Stock PROQUEST LLC: S&P Affirms 'B-' Corp. Credit Rating; Outlook Stable PROTEONOMIX INC: JPDH & Company Succeeds KBL LLP as Accountants RAVENWOOD HEALTHCARE: Files for Chapter 11 in Baton Rouge REID PARK: Plan Confirmation Hearing Continued Until May 31 RENAISSANCE FINANCIAL: Moody's Issues Summary Credit Opinion RS YACHT: Voluntary Chapter 11 Case Summary SCHOMAC GROUP: BOKF Wants Plan Outline Denied SEACOR HOLDINGS: Moody's Issues Summary Credit Opinion SPEEDY CASH: S&P Assigns 'B' Issuer Credit Rating; Outlook Stable ST. JOSEPH HEALTH: S&P Lowers Rating on $18.4-Mil. Bonds to 'CCC' ST. PAUL BAPTIST: Case Summary & 20 Largest Unsecured Creditors SUBURBAN PROPANE: S&P Puts 'BB' Corp. Credit Rating on Watch Neg SUNTRUST BANKS: Moody's Issues Summary Credit Opinion TENET HEALTHCARE: Fitch Rates $141-Mil. Sr. Secured Notes 'BB-' TEXTRON FINANCIAL: S&P Raises Issuer Credit Ratings From 'BB+/B' TITAN ENERGY: Incurs $3.4 Million Net Loss in 2011 TRAINER GLASS: Court OKs Arnstein & Lehr as Bankruptcy Counsel TRAINER GLASS: Hires High Ridge as Financial Consultants TRAINER GLASS: Sugar Felsenthal Approved as Committee's Counsel TRIDENT MICROSYSTEMS: Wants to Expand Scope of Employment of PwC TRIDENT MICROSYSTEMS: Creditors Panel Can Hire Imperial as Advisor TRIDENT MICROSYSTEMS: Wants Plan Filing Period Extended to July 2 TTK UNITED: Case Summary & 7 Largest Unsecured Creditors UNISYS CORP: S&P Affirms 'BB-' Rating on Senior Unsecured Debt UNITED WESTERN: Taps BuckleySandler as Special Counsel VAUGHAN CO: Accountant's Claims Against Ch. 11 Trustee Dismissed W.R. GRACE: Intrawest Has Green Light to Pursue Litigation W.R. GRACE: Claims Over Big Tex Site Resolved for $2-Mil. W.R. GRACE: Realigns Business Into Three Operating Segments WESTLB AG: Prudential's $27M Suit Over Ethanol Plants' Sale Stays * Tampa, Florida Bankruptcy Judge Paskay Passes Away * Large Companies With Insolvent Balance Sheets ********* 1701 COMMERCE: Files Schedules of Assets and Liabilities -------------------------------------------------------- 1701 Commerce, LLC, formerly known as Presidio Ft. Worth Hotel LLC, filed with the U.S. Bankruptcy Court for the Northern District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $65,000,000 B. Personal Property $6,842,322 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $40,402,098 E. Creditors Holding Unsecured Priority Claims $1,215,150 F. Creditors Holding Unsecured Non-priority Claims $3,319,449 ----------- ----------- TOTAL $71,842,322 $44,936,697 A full-text copy of the schedules is available for free at http://bankrupt.com/misc/1701_COMMERCE_sal.pdf About 1701 Commerce 1701 Commerce LLC filed for Chapter 11 protection (Bankr. N.D. Tex. Case No. 12-41748) on March 26, 2012. 1701 Commerce LLC was previously named Presidio Ft. Worth Hotel LLC, but changed its name to 1701 Commerce LLC, prior to the petition date to reduce and minimize any potential confusion relating to an entity named Presidio Fort Worth Hotel LP, an unrelated and unaffiliated partnership that was the former owner of the hotel property owned by the Debtor. 1701 Commerce LLC is a Nevada limited liability company whose members are Vestin Realty Mortgage I, Inc., Vestin Mortgage Realty II, Inc., and Vestin Fund III, LLC. 1701 Commerce LLC's operations are managed by Richfield Hospitality Group, an independent management company that is not affiliated with the Debtor or any of its members. 1701 Commerce LLC owns and operates a full service "Sheraton Hotel" located at 1701 Commerce, Fort Worth, Texas. The Debtor also operates a Shula's steakhouse at the Hotel. Judge D. Michael Lynn presides over the bankruptcy case. The Law Office of John P. Lewis, Jr., represents the Debtor. 1701 COMMERCE: May 24 Hearing Set for Hiring of Property Manager ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas will convene a hearing on May 24, 2012, at 1:30 p.m., to consider 1701 Commerce, LLC's request to employ Richfield Hospitality, Inc. as property manager. The Debtor is asking the Court for permission to employ Richfield and to enter into operating agreement for management and operation of Sheraton Fort Worth Hotel and Spa. Richfield has managed the hotel since August 2011 under an operating agreement with the former owner, Presidio. Prior to Richfield's engagement, the hotel had been managed by an affiliate of the former owner or its principals. The Debtor desires to continue the employment of Richfield as its property manager to supervise and manage the day to day activities related to the hotel and to assist Debtor in maintaining the property and complying with its reporting requirements in the case. The compensation payable to Richfield for its property management services provides for a "base management fee" and an "incentive management fee" in addition to reimbursement of certain direct operating costs and expenses. The Base Management Fee is computed based upon the monthly gross revenues generated by the hotel and is 2.5% of the gross revenues. The Base Management Fee is payable monthly from the Debtor's operating account. The Incentive Management Fee is calculated and payable after the annual financial statement is prepared and delivered. The Incentive Management Fee, if any, is equal to 10% of the excess, if any, of the Gross Operating Profit (less reserves and debt service payments on account of any mortgage on the Hotel) for the immediately preceding 12-month period over the amount needed to provide the Debtor with a 10% annual return on its Invested Capital. In addition, the Management Agreement provides: (a) for an annual fee of $2,050 for the Debtor's access to the manager's accounting systems for the hotel and an agreed upon fee for Centralized Services as agreed to in the property's budget; and (b) reimbursement of certain direct costs attributable to the Hotel such as employee wages, employee benefits, payroll taxes, employee expenses, cost of goods and services to the hotel provided or paid by Richfield, sales, use, hotel, and other taxes, and similar operational costs paid by manager. About 1701 Commerce 1701 Commerce LLC filed for Chapter 11 protection (Bankr. N.D. Tex. Case No. 12-41748) on March 26, 2012. 1701 Commerce LLC was previously named Presidio Ft. Worth Hotel LLC, but changed its name to 1701 Commerce LLC, prior to the petition date to reduce and minimize any potential confusion relating to an entity named Presidio Fort Worth Hotel LP, an unrelated and unaffiliated partnership that was the former owner of the hotel property owned by the Debtor. 1701 Commerce LLC is a Nevada limited liability company whose members are Vestin Realty Mortgage I, Inc., Vestin Mortgage Realty II, Inc., and Vestin Fund III, LLC. 1701 Commerce LLC's operations are managed by Richfield Hospitality Group, an independent management company that is not affiliated with the Debtor or any of its members. 1701 Commerce LLC owns and operates a full service "Sheraton Hotel" located at 1701 Commerce, Fort Worth, Texas. The Debtor also operates a Shula's steakhouse at the Hotel. Judge D. Michael Lynn presides over the bankruptcy case. The Law Office of John P. Lewis, Jr., represents the Debtor. The Debtor disclosed $71,842,322 in assets and $44,936,697 in liabilities. 1701 COMMERCE: Protective Order Governing Disclosures Approved -------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas signed a stipulated and agreed protective order resolving the dispute between 1701 Commerce, LLC and Dougherty Funding, LLC. Dougherty has requested for dismissal and for relief from the automatic stay. The Debtor, in response to Dougherty's motion, requested that the Court deny Dougherty's motion stating that, among other things: 1. the Debtor takes possession of and title to the property and Dougherty violates the intercreditor agreement; and 2. the Debtor has been working to satisfy all conditions in Section 13(b) of the Intercreditor Agreement to the extent that the Debtor continues to have any obligation to comply with those conditions and has not been excused from the compliance by Dougherty's own material prior breaches of the agreement. In this relation, Dougherty and the Debtors have sought discovery from each other and from third parties and may seek additional discovery in the Bankruptcy Case, which discovery may contain sensitive, confidential or commercial and trade secret information, or personal information. The Protective Order governs the disclosure, use, handling, and disposition of Confidential Information produced by parties and nonparties in the Bankruptcy Case. A full-text copy of the stipulated order is available for free at About 1701 Commerce 1701 Commerce LLC filed for Chapter 11 protection (Bankr. N.D. Tex. Case No. 12-41748) on March 26, 2012. 1701 Commerce LLC was previously named Presidio Ft. Worth Hotel LLC, but changed its name to 1701 Commerce LLC, prior to the petition date to reduce and minimize any potential confusion relating to an entity named Presidio Fort Worth Hotel LP, an unrelated and unaffiliated partnership that was the former owner of the hotel property owned by the Debtor. 1701 Commerce LLC is a Nevada limited liability company whose members are Vestin Realty Mortgage I, Inc., Vestin Mortgage Realty II, Inc., and Vestin Fund III, LLC. 1701 Commerce LLC's operations are managed by Richfield Hospitality Group, an independent management company that is not affiliated with the Debtor or any of its members. 1701 Commerce LLC owns and operates a full service "Sheraton Hotel" located at 1701 Commerce, Fort Worth, Texas. The Debtor also operates a Shula's steakhouse at the Hotel. Judge D. Michael Lynn presides over the bankruptcy case. The Law Office of John P. Lewis, Jr., represents the Debtor. The Debtor disclosed $71,842,322 in assets and $44,936,697 in liabilities. 301 CIRCLE: Case Summary & 2 Largest Unsecured Creditors -------------------------------------------------------- Debtor: 301 Circle of Progress, LLC 301 Circle of Progress Pottstown, PA 19464 Bankruptcy Case No.: 12-14023 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court Eastern District of Pennsylvania (Philadelphia) Judge: Jean K. FitzSimon Debtor's Counsel: John Albert Wetzel, Esq. WETZEL GAGLIARDI & FETTER LLC 101 E. Evans Street Walnut Building - Suite A West Chester, PA 19380 Tel: (484) 887-0779 Fax: (484) 887-8763 E-mail: jwetzel@wgflaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 A copy of the Company's list of its two largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/paeb12-14023.pdf The petition was signed by Brian Rekos, managing member. 4KIDS ENTERTAINMENT: Judge OKs $10M Sale Of 'Yu-Gi-Oh' Rights ------------------------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Shelley C. Chapman granted approval Friday to bidding procedures and a $10 million stalking horse agreement for 4Kids Entertainment Inc.'s assets related to the popular Japanese animated show "Yu-Gi-Oh," which it's seeking to sell to Kidsco Media Ventures LLC. Law360 relates that Judge Chapman also granted the debtor a 60-day extension of the period during which it alone can file a Chapter 11 plan of reorganization in its case. About 4Kids Entertainment New York-based 4Kids Entertainment, Inc., dba 4Kids, is an entertainment and media company specializing in the youth oriented market, with operations in these business segments: (i) licensing, (ii) advertising and media broadcast, and (iii) television and film production/distribution. The parent entity, 4Kids Entertainment, was organized as a New York corporation in 1970. 4Kids filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code to protect its most valuable asset -- its rights under an exclusive license relating to the popular Yu-Gi-Oh! series of animated television programs -- from efforts by the licensor, a consortium of Japanese companies, to terminate the license and force 4Kids out of business. 4Kids and affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 11-11607) on April 6, 2011. Kaye Scholer LLP is the Debtors' restructuring counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims and notice agent. BDO Capital Advisors, LLC, is the financial advisor and investment banker. EisnerAmper LLP fka Eisner LLP serves as auditor and tax advisor. 4Kids Entertainment disclosed $78,397,971 in assets and $86,515,395 in liabilities as of the Chapter 11 filing. Hahn & Hessen LLP serves as counsel to the Official Committee of Unsecured Creditors. Epiq Bankruptcy Solutions LLC as its information agent for the Committee. The Consortium consists of TV Tokyo Corporation, which owns and operates a television station in Japan; ASATSU-DK Inc., a Japanese advertising company; and Nihon Ad Systems, ADK's wholly owned subsidiary. The Consortium is represented by Kyle C. Bisceglie, Esq., Michael S. Fox, Esq., Ellen V. Holloman, Esq., and Mason Barney, Esq., at Olshan Grundman Frome Rosenzweig & Wolosky LLP, in New York. In January 2012, the bankruptcy judge ruled in favor of 4Kids, deciding that the Yu-Gi-Oh! property license agreement between the Debtor and the licensor was not effectively terminated prior to the bankruptcy filing. Following the ruling, 4Kids entered into a settlement where it would receive $8 million to end the dispute over its valuable Yu-Gi-Oh! Property. ADAMS PRODUCE: Files for Chapter 11 in Birmingham ------------------------------------------------- Adams Produce Company, LLC, filed a Chapter 11 petition (Bankr. N.D. Ala. Case No. 12-02036) on April 27, 2012, in its home-town in Birmingham, Alabama. Privately held Adams Produce is a distributor of fresh fruits and vegetables to restaurants, government and hospitality establishments across the Southeastern United States. With over 400 employees, Adams Produce services the states of Alabama, Arkansas, Florida, Georgia, Mississippi, and Tennessee. The company was founded by Edwin Calvin Adams in 1903. "For the last several years, Adams Produce has suffered market pressures that have affected all of their products. The already thin margins on which Adams Produce operated in 2010 have continued to decline, resulting in lowered EBITDA and operating income. As income has decreased, Adams Produce has fallen behind on payments to its vendors," Thomas S. O'Donoghue, Jr., the chief financial officer, explains in a court filing, "Adams Produce has worked to restructure its obligations, but the timeframe for Adams Produce's restructuring options has proven unworkable because Adams Produce hoes not have enough cash to implement any viable restructuring options. The timeframe has proven unworkable because many seasonal competitors, like farmer's markets, operate during the summer, and many of the debtors' customers, such as schools, purchase produce from Adams Produce only during, the non-summer months. For these reasons, the summer is the slowest season for Adams Produce's business, and Adams Produce's situation has become particularly distressed as the summer approaches. Adams Produce estimated assets and debts of $10 million to $50 million in its Chapter 11 filing. A debtor-affiliate, Adams Clinton Business Park, LLC, estimated up to $10 million in assets and liabilities. The Debtors owe PNC Bank, National Association, $750,000 under a term loan, $1.35 million under a real estate loan, and $3.4 million under a revolver. The Debtors are also indebted $2 million under promissory notes. Adams owes $4.4 million in accounts payable to trade and other creditors, and $10.2 million to agricultural commodity suppliers. First Day Motions The Debtors have filed first day applications and motions that, they say, are critical in achieving a successful rehabilitation and reorganization. The Debtors have filed motions to, among other things, pay prepetition employee wages and benefits, grant adequate assurance to utilities, enter into a debtor-in-possession facility. PNC Bank has access to provide DIP financing in the aggregate amount not to exceed $500,000. To ensure that the supply of fresh produce continues unimpeded, the Debtors have also filed proposed procedures for the orderly reconciliation of claims under the Perishable Agricultural Commodities Act of $1903, as amended ("PACA"). The Debtors have tapped Burr & Forman as attorneys; CRG Partners Group LLC as financial advisor and CRG's Thomas S. O'Donoghue, Jr. as chief restructuring officer; and Donlin Recano & Company as the claims and notice agent. AFFINITY GAMING: S&P Raises Corporate Credit Rating to 'B+' ----------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Las Vegas-based Affinity Gaming LLC to 'B+' from 'B'. "At the same time, we assigned our preliminary 'BB' issue-level and preliminary '1' recovery ratings to Affinity's proposed $35 million super priority revolver due 2017. We assigned our preliminary 'BB' issue-level and preliminary '1' recovery ratings to Affinity's proposed $200 million senior secured term loan due 2019. The '1' recovery rating on the revolver and term loan reflects our expectation for very high (90% to 100%) recovery for lenders in the event of a payment default," S&P said. "We assigned our preliminary 'B' issue-level and '5' recovery ratings to Affinity's proposed $200 million senior notes due 2020. The '5' recovery rating reflects our expectation of modest (10% to 30%) recovery for lenders in the event of a payment default," S&P said. "We also raised our issue-level rating on the existing senior secured term loan to 'BB-'from 'B+'; however, we expect to withdraw this rating after the close of the proposed transaction. The recovery rating remains a '2' reflecting our expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default," S&P said. "The company plans to use proceeds from the proposed issuance to repay its existing $350 million first lien senior secured term loan and to add cash to the balance sheet for potential expansion or acquisition opportunities. Our preliminary ratings are subject to our review of final documentation," S&P said. "The upgrade reflects our improved assessment of Affinity's business profile following the recent asset sale and asset purchase transactions," said Standard & Poor's credit analyst Michael Halchak. "Affinity completed the sale of its Terrible's Town Casino and Lakeside Casino & RV Park, both located in Pahrump, Nev., and sold a portion of its route operations to Golden Gaming Inc. Affinity will purchase three of Golden Gaming's casinos: Golden Mardi Gras Casino, Golden Gates Casino, and Golden Gulch Casino, all in Black Hawk, Colo., and is currently awaiting licensing in Colorado. Affinity sold Terrible's Searchlight Casino and the remainder of its route business to JETT Gaming LLC. We believe these transactions improve Affinity's business risk profile by reducing its reliance on Nevada and providing diversification through exposure to a new market. Additionally, the sale of the route business eliminated the operating lease obligation associated with the route business, which more than offsets the incremental debt being incurred under the proposed refinancing. Our rating on Affinity reflects our assessment of its financial risk profile as 'aggressive' and its business risk profile as 'weak,' according to our criteria." ALLY FINANCIAL: Mulls Filing Bankruptcy for ResCap Unit ------------------------------------------------------- Carolina Bolado at Bankruptcy Law360 reports that Ally Financial Inc. executives are considering bankruptcy for the company's troubled mortgage unit Residential Capital LLC, which recently missed a $20 million interest payment on $473 million in outstanding notes due in 2013, they said Thursday. Law360 relates that in a conference call with investors on Ally's first-quarter results, CEO Michael Carpenter said Ally was continuing to distance itself from the mortgage business and was considering options ranging from "staying the course and fighting the good fight to bankruptcy." Ally Financial Inc. reported net income of $310 million for the first quarter of 2012, compared to a net loss of $206 million in the prior quarter and net income of $146 million for the first quarter of 2011. About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3% stake. Private equity firm Cerberus Capital Management LP keeps 14.9%, while General Motors Co. owns 6.7%. Ally has tapped Goldman Sachs Group Inc. and Citigroup Inc. to advise on a range of issues, including strategic alternatives for the mortgage business and repayment of taxpayer funds. Ally reported a net loss of $157 million in 2011, compared with net income of $1.07 billion in 2010. Ally Financial's balance sheet at March 31, 2012, showed $186.35 billion in total assets, $166.68 billion in total liabilities and $19.66 billion in total equity. ResCap Residential Capital, LLC, one of the Company's mortgage subsidiaries, continues to be negatively impacted by the events and conditions in the mortgage banking industry and the broader economy that began in 2007. Market deterioration has led to fewer sources of, and significantly reduced levels of, liquidity available to finance ResCap's operations. During the fourth quarter of 2011, ResCap recorded a charge of $212 million for penalties imposed by certain of the Company's regulators and other governmental agencies in connection with mortgage foreclosure- related matters. ResCap remains heavily dependent on Ally and its affiliates for funding and capital support, and there can be no assurance that Ally or its affiliates will continue those actions or that Ally will choose to execute any further strategic transactions with respect to ResCap or that any transactions undertaken will be successful. Consequently, there remains substantial doubt about ResCap's ability to continue as a going concern. Should Ally no longer continue to support the capital or liquidity needs of ResCap or should ResCap be unable to successfully execute other initiatives, it would have a material adverse effect on ResCap's business, results of operations, and financial position. Ally has extensive financing and hedging arrangements with ResCap that could be at risk of nonpayment if ResCap were to file for bankruptcy. At Dec. 31, 2011, Ally had $2.6 billion in funding arrangements with ResCap. This amount included $1.0 billion of senior secured credit facilities, which were fully drawn at Dec. 31, 2011. This amount further included a $1.6 billion line of credit consisting of $1.1 billion in secured capacity, of which $235 million was drawn, and $500 million of unsecured capacity. The unsecured portion is only available after the secured portion has been fully drawn. * * * In February 2012, Fitch Ratings downgraded the long-term Issuer Default Rating (IDR) and the senior unsecured debt rating of Ally Financial and its subsidiaries to 'BB-' from 'BB'. The Rating Outlook is Negative. The downgrade primarily reflects deteriorating operating trends in ResCap, which has continued to be a drag on Ally's consolidated credit profile, as well as exposure to contingent mortgage-related rep and warranty and litigation issues tied to ResCap, which could potentially impact Ally's capital and liquidity levels. ALLY FINANCIAL: Files Form 10-Q, Posts $310MM Net Income in Q1 -------------------------------------------------------------- Ally Financial Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $310 million on $1.85 billion of total net revenue for the three months ended March 31, 2012, compared with net income of $146 million on $1.55 billion of total net revenue for the same period a year ago. The Company's balance sheet at March 31, 2012, showed $186.35 billion in total assets, $166.68 billion in total liabilities and $19.66 billion in total equity. A copy of the Form 10-Q is available for free at: http://is.gd/u16zDO About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3% stake. Private equity firm Cerberus Capital Management LP keeps 14.9%, while General Motors Co. owns 6.7%. Ally has tapped Goldman Sachs Group Inc. and Citigroup Inc. to advise on a range of issues, including strategic alternatives for the mortgage business and repayment of taxpayer funds. Ally reported a net loss of $157 million in 2011, compared with net income of $1.07 billion in 2010. Rescap There is substantial doubt about Residential Capital, LLC's ability to continue as a going concern, and ResCap is actively considering reorganization under bankruptcy laws. ResCap may not be able to meet its debt service obligations. ResCap did not make a $20 million semi-annual interest payment that was due on April 17, 2012, related to $473 million of unsecured debt principal, which matures in 2013. Further, ResCap was in default on certain of its financial covenants as of Dec. 31, 2011, due to insufficient equity levels, and it is possible that further defaults could occur in the future due to insufficient capital or liquidity. ResCap remains heavily dependent on Ally and its affiliates for funding and capital support. While Ally has agreed to extend the maturity date for certain existing intercompany facilities on a short-term basis until May 14, 2012, there can be no assurance that Ally or its affiliates will continue any such support or that Ally will choose to execute any further strategic transactions with respect to ResCap or that any transactions undertaken will be successful. ResCap is actively considering reorganization under bankruptcy laws. If this were to occur, Ally could incur significant charges, substantial litigation could result, and repayment of Ally's credit exposure to ResCap could be at risk. Ally currently estimate a range of reasonably possible losses arising at the time of a ResCap bankruptcy filing, including its investment in ResCap, to be between $400 million and $1.25 billion. * * * In February 2012, Fitch Ratings downgraded the long-term Issuer Default Rating (IDR) and the senior unsecured debt rating of Ally Financial and its subsidiaries to 'BB-' from 'BB'. The Rating Outlook is Negative. The downgrade primarily reflects deteriorating operating trends in ResCap, which has continued to be a drag on Ally's consolidated credit profile, as well as exposure to contingent mortgage-related rep and warranty and litigation issues tied to ResCap, which could potentially impact Ally's capital and liquidity levels. AMBASSADORS INT'L: Execs Demand Defense Coverage for DOJ Claims --------------------------------------------------------------- Jamie Santo at Bankruptcy Law360 reports that former executives of Ambassadors International Inc. urged a Delaware court to approve an insurer payout to cover legal costs incurred through a fight with the U.S. Department of Justice, despite the Chapter 7 trustee's objection. Facing potential claims against them by the DOJ, the nine former executives proposed an order April 12 authorizing payment by Ambassadors' directors & officers insurance policy issuer, National Union Fire Insurance Co. of Pittsburgh, Pa., according to Law360. About Ambassadors International Headquarters in Seattle, Washington, Ambassadors International, Inc. (NASDAQ: AMIE) -- http://www.ambassadors.com/-- operated Windstar Cruises, a three-ship fleet of luxury yachts that explore the hidden harbors and secluded coves of the world's most sought- after destinations. Carrying 148 to 312 guests, the luxurious ships of Windstar cruise to nearly 50 nations, calling at 100 ports throughout Europe, the Caribbean and the Americas. Ambassadors International Inc. and 11 affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11002) on April 1, 2011. Kristopher M. Hansen, Esq.; Sayan Bhattacharyya, Esq.; Marianne Mortimer, Esq.; and Matthew G. Garofalo, Esq., at Stroock & Stroock & Lavan LLP, serve as the Debtors' bankruptcy counsel. Imperial Capital, LLC, is the Debtors' financial advisor. Phase Eleven Consultants, LLC, is the Debtors' claims and notice agent. The Debtors tapped Bifferato Gentilotti LLC as Delaware counsel, and Richards, Layton & Finger as bankruptcy co-counsel. The Official Committee of Unsecured Creditors tapped Kelley Drye & Warren LLP as its counsel, and Lowenstein Sandler PC as its co-counsel. The Debtors disclosed $86.4 million in total assets and $87.3 million in total debts as of Dec. 31, 2010. Under a court-approved sale, Windstar's three luxury sailing yachts were sold to Anschutz Corp. for $35 million in cash. AMERICAN AIRLINES: Has Go-Signal to Hire Deloitte Financial ----------------------------------------------------------- Bankruptcy Judge Sean Lane entered a final order authorizing AMR Corp. and its affiliates to employ Deloitte Financial Advisory Services LLP as their consultant, nunc pro tunc to the Petition Date. The objection raised by the U.S. Trustee for Region 2 has been resolved by the filing of agreed supplemental disclosures, and all objections to the Debtors' Application have been withdrawn, resolved, or overruled, Judge Lane ruled. In the application, the Debtors said they selected the firm because of its "recognized experience and knowledge" in performing bankruptcy-related services, according to Randall White, associate general counsel of AMR Corp. As consultant, Deloitte Financial will assist in developing tools and methods for a Trading Partner Response Center that would allow "vendor questions" to be addressed. The firm will also provide personnel to staff the TPRC and assist in training those personnel. Deloitte Financial will also advise the Debtors on the development of tools and procedures for vendor management, on internal and external communications related to restructuring, on the preparation of various financial reports, on claims administration and reconciliation, among other things. In exchange for its services, Deloitte Financial will be paid on an hourly basis, and will be reimbursed of its expenses. Its hourly rates range from $525 to $700 for partners, principals or directors; $400 to $550 for senior managers; $340 to $450 for managers; and $150 to $350 for other professionals. The firm agreed that its combined blended rate will not exceed $300 per hour for services related to claims administration and reconciliation, and $330 per hour for other services. Deloitte Financial does not hold interest adverse to the Debtors or their affiliates, according to a declaration by John Little, a principal of the firm. 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, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN AIRLINES: Wins OK to Hire Deloitte Consulting ------------------------------------------------------ Judge Sean Lane authorized AMR Corp. and its affiliates, on a final basis, to employ Deloitte Consulting LLP as their consultant, nunc pro tunc to the Petition Date. Judge Lane held that the objection raised by the U.S. Trustee for Region 2 has been resolved by the filing of agreed supplemental disclosures, and all objections to the Debtors' Application have been withdrawn, resolved, or overruled. According to the application, as the Debtors' consultant, Deloitte Consulting will assist AMR Corp. as an advisor on executive compensation issues. Deloitte will provide also organizational change management services to American Airlines' cargo division; and will update a prior brand refresh deliverable. Deloitte Consulting will be paid for its services on an hourly basis and will get reimbursed for expenses. The firm's hourly rates are $695 for partner, principal, or director; $525 for senior manager, $475 for manager, $375 for senior consultant, $315 for consultant, and $250 for analyst. For the OCM Services, Deloitte Consulting's hourly rates are $500 for Quality Assurance and Risk; $450 for Deloitte OCM Lead Project and Deliverable Manager, Strategic Oversight; $325 for Booking and Revenue Management Lead; $305 for Location Tracking Lead; and $100 for Offsite Support. The Marketing and Brand Strategy Services are estimated to be approximately $97,000 at the applicable hourly rates of $598 for partner/principal, $511 for senior manager, $469 for manager, $469 for manager, and $392 for senior consultant. Marc Hanna, a principal of Deloitte Consulting LLP, assured the Court that Deloitte Consulting is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN AIRLINES: $3.6-Mil. in Claims Changed Hands in March ------------------------------------------------------------- For March 2012, 136 claims totaling $3,621,751 against AMR Corp. and its affiliates were traded to these parties: (a) Hain Capital Holdings, Ltd. Transferor Claim Amount ---------- ------------ Ruffin Holdings Incorporated $91,076 Firstmark Aerospace 10,550 Moody National Companies 5,484 Ruffin Holdings Incorporated 91,076 Transaero, Inc. Transaero, Inc. Transaero, Inc. Coday Enterprises Incorporated 4,000 Firstmark Aerospace 10,550 (b) Debt Acquisition Company of American V, LLC Transferor Claim Amount ---------- ------------ Baggage Delivery Service Inc. $859 Belfort Instrument Company 755 Charlottesville-Albemarle Airport Authority 5,752 Comfort Suites 4,054 Raben Tire Company Inc. 780 Renee Starnes 845 Access Courier Incorporated 1,066 CK & W Supply Inc. 2,312 Classic Chevrolet GM Parts Center 571 Colorado Cab Company LLC 814 Dickson 585 Greater Raleigh Refrigeration Inc. 599 JFM Engineering Inc. 1,160 Olympia Supply Company 1,900 Steen Macek Paper Company 3,007,149 Barfield Inc. 4,374 Budget Buddy Company Inc. 789 Carol Marks Music - A Division Of Loraco Inc. 500 Crystal Ice Company 528 Executone Systems Co of LA Inc. 777 Express Catering Inc. 1,180 First Class Concessions Inc. 514 Goulette Ice Company 801 Harlan Global Manufacturing 528 Montgomery Muggs LLC 2,362 Nevada Yellow Cab Corp. 541 Nuruddin Jalauddin DBA Noors Taxi 1,650 OCS America Inc. 743 Patson Inc. DBA Transchicago Truck Group 1,740 Vision Hospitality DBA Hampton Inn 1,798 A1 Taxi & Delivery Service 915 Alamo Group Inc. 1,539 American Medal & Rehab Co. 1,065 Atchison Transportation Service 1,646 Carlton Stowers 1,200 Cheapflights Media (USA) Inc. 5,514 Doskocil Manufacturing Company 1,856 Excel Automotive Inc. 1,182 Kaddas Enterprises Inc. 1,400 Nevada Crystal Premium 563 Ohio Services 3,227 Tailwind Gainesville 785 American Towing Service 2,081 Andy M Camacho, Inc. 514 Coral Gables Community Foundation 600 F C Witt Associates Ltd. 5,650 Horn Motors, Inc. 1,163 IDT Jets 787 Kracky McGee's Snack Shack 779 Lee Wesley Group Inc. 623 LGA Cafe LLC 777 MCA Supply LLC 2,657 Creative Photographers Inc. 750 CRI Recycling Service Incorporated 7,976 Dallas Lighthouse For The Blind 837 Geotex Incorporated 1,753 Garland Steel Inc. 899 Moresteam.com LLC 4,600 Paradise Bakery & Cafe 638 (c) Sierra Liquidity Fund, LLC Transferor Claim Amount ---------- ------------ J & B Aviation Services, Inc. 26,459 L & M Office Furniture 8,844 Mutual Propane - Mutual Liquid Gas & Equipment 6,923 Insulation Supply Company 9,830 Holly Equipment Sales, Inc. 7,473 Southwestern Petroleum Corporation 8,067 Tug Technologies Corporation 2,802 Tug Technologies Corporation 5,884 Protective Packaging Corporation 4,446 Associated Industries, Inc. 5,898 Ever Serve Corporation 1,429 HSH Interplan USA, Inc. 3,640 Innodyne Systems Incorporated 2,423 Honolulu Fish Company 776 Uncle Rod's Inc. 439 EVI, LLC 758 Jean's Upholstery Shop 188 Spinelli Pastry Shoppe 3,150 Facet USA, Inc. 2,598 Ebsco Spring Company 2,598 Stuart Hose and Pipe Company 1,927 The Young Industries, Inc. 2,745 Harvey-Daco, Inc. 1,608 Accurate Fire Equipment Company 955 Durham Coca-Cola 1,071 Durham Coca-Cola 275 Fresno AG Hardware 168 Airways Gifts 85 Twin Liquors 302 DeanJoy, LLC 1,890 Tri-State Propane, Inc. 64 Harlan Global Manufacturing 528 Pathfinder Company, Inc. 680 Quality Products 2,516 Fast Signs 89 Innovation Air Conditioning 1,489 Hydraulic Sales & Service, Inc. 628 Ft. Worth Welders Supply, Inc. 1,750 Atacs Products, Inc. 2,512 Race Brothers Farm & Home Supply 246 Murray Supply Corporation 201 Visiontron Corporation 556 Visiontron Corporation 155 Rapid Rivet & Fastener Corporation 35 Fleet Products, Inc. 618 SJM Industrial Radio 543 Florida Bearings, Inc. 331 Jim Warfield Electric of Texas, Inc. 2,294 J & B Aviation Services, Inc. 1,621 J & B Aviation Services, Inc. 28,081 Robert Talbott, Inc. 2,403 Innodyne Systems, Inc. 16,956 Innodyne Systems, Inc. 19,379 (d) ASM Capital IV, L.P. Transferor Claim Amount ---------- ------------ Buffalo Wings Aeropuerto 5,176 Aeroflite Enterprises Inc. 9,100 Esterline Sensors Services Americas Inc. 78,157 (e) Sonar Credit Partners II, LLC Transferor Claim Amount ---------- ------------ Seal Company Enterprises Inc. - Forte Product Solutions - O'Sullivan Communications - O'Sullivan Menu Publishing LP - (f) Claims Recovery Group LLC Transferor Claim Amount ---------- ------------ Dean and Gibson $3,046 Atlantic Radio Telephone Inc. 2,019 37-10 Hotel Operating Company 3,742 (g) CRT Special Investments LLC Transferor Claim Amount ---------- ------------ Added Incentives, Inc. $3,270 Cosco Fire Protection 3,177 (h) Hain Capital Holdings, Ltd. Transferor Claim Amount ---------- ------------ Aero Parts Mart - Aero Parts Mart - (i) Tannor Partners Credit Fund, LP Transferor Claim Amount ---------- ------------ Parker Hannifin Corp. - For January and February 2012, ten claims totaling $245,461 against the Debtors changed hands. 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, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the 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). ANTS SOFTWARE: Ironridge Global Discloses 4.9% Equity Stake ----------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Ironridge Global IV, Ltd., and its affiliates disclosed that, as of April 26, 2012, they beneficially own 15,756,000 shares of common stock of Ants Software, Inc., representing 4.99% of the shares outstanding. A copy of the filing is available for free at http://is.gd/LajXOU About Ants software ANTs software inc (OTC BB: ANTS) -- http://www.ants.com/-- has developed a software solution, ACS, to help customers reduce IT costs by consolidating hardware and software infrastructure and eliminating cost inefficiencies. ACS is an innovative middleware solution that accelerates database consolidation between database vendors, enabling application portability. ANTs has not filed financial statements with the Securities and Exchange Commission since May 2011, when it disclosed that it had a net loss of $27.01 million in three months ended March 31, 2011, compared with a net loss of $20.7 million in the same period in 2010. The Company's balance sheet at March 31, 2011, showed $27.2 million in total assets, $52.3 million in total liabilities, and a stockholders' deficit of $25.1 million. As reported in the TCR on April 8, 2011, WeiserMazars LLP, in New York, expressed substantial doubt about ANTs software's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred significant recurring operating losses, decreasing liquidity, and negative cash flows from operations. The Company reported a net loss of $42.4 million for 2010, following a net loss of $23.3 million in 2009. APEX KATY: Files Schedules of Assets and Liabilities ---------------------------------------------------- Apex Katy Physicians LLC filed with the Bankruptcy Court for the Southern District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $14,500,000 B. Personal Property $737,691 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $12,383,717 E. Creditors Holding Unsecured Priority Claims $1,263,233 F. Creditors Holding Unsecured Non-priority Claims $2,909,500 ----------- ----------- TOTAL $15,237,691 $13,646,951 A full text copy of the company's schedules of assets and liabilities is available free at: http://bankrupt.com/misc/APEX_KATY_sal.pdf 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. Affiliate Apex Long Term Acute Care-Katy, LP, a long-term care facility, filed a separate Chapter 11 petition (Case No. 09-37096) on Sept. 25, 2009. APEX KATY: Hires Hoover Slovacek as Counsel ------------------------------------------- Apex Katy Physicians LLC asks the U.S. Bankruptcy Court for permission to employ Edward L. Rothberg, Esq., at Hoover Slovacek LLP as counsel. The firm's rates are: Personnel Rates --------- ----- Edward L/ Rothberg $395 Annie Catmull $310 Melissa Haselden $275 T. Josh Judd $250 Mazella S. Krasoff $175 Legal Assistant/Paralegals $85-125 Mr. Rothberg attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. 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. Affiliate Apex Long Term Acute Care-Katy, LP, a long-term care facility, filed a separate Chapter 11 petition (Case No. 09-37096) on Sept. 25, 2009. ASSOCIATED MATERIALS: S&P Lowers Corporate Credit Rating to 'B-' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Cuyahoga Falls, Ohio-based Associated Materials LLC to 'B-' from 'B'. The outlook is negative. "At the same time, we lowered the issue-level rating on the company's senior secured notes to 'B-' (the same as the corporate credit rating) from 'B'. The recovery rating remains '4', indicating our expectation of average (30% to 50%) recovery in the event of payment default," S&P said. "The downgrade reflects our view that Associated Materials remains highly leveraged, with 'less-than-adequate' liquidity, in our view," said Standard & Poor's credit analyst Megan Johnston. "The company's adjusted EBITDA declined approximately 40% to about $90 million in the year ended Dec. 31, 2011, compared with the prior year. Debt (including pensions, operating leases and other adjustments) increased due to higher revolver borrowings. As a result, leverage was greater than 10x as of Dec. 31, 2011, compared with about 6.5x in the prior year. While sales were roughly flat year-over-year, margins declined due to lower sales of the company's key vinyl windows products. The company supplanted lower windows sales with higher sales of third-party manufactured products, and in particular roofing, which carry a lower margin than the company's window and siding products." "In our view, performance may gradually improve in 2012 but metrics will likely remain more in line with the 'B-' rating. Our economists are projecting total housing starts of 740,000, a 20% improvement over 2011 levels, although much of the growth will come from the multi-family segment, which typically carry lower margins for building products manufacturers such as Associated Materials. Repair and remodeling spending may modestly improve by the end of the year. Even with improved sales and EBITDA, leverage is likely to remain about 8x or greater, with interest coverage below 1.5x, which are levels we consider to be more in line with the 'B-' rating. Our rating and outlook also reflect our view that liquidity is less than adequate," S&P said. "The rating outlook is negative, reflecting our view that liquidity could become more constrained if the company needs to build working capital to fund higher sales. We also expect leverage to remain high, with debt to EBITDA exceeding 8x by year- end 2012 and interest coverage below 1.5x. We could lower the rating if liquidity continues to deteriorate, such that the cushion continues to narrow on the company's fixed charge covenant that governs its ABL facility. Although unlikely in the near term, we could revise the outlook to stable if we deem the company's liquidity to be 'adequate', such that interest coverage improves to more than 1.5x and the company's cushion under its revolving credit facility increases. This could happen if the company's EBITDA margins improve approximately 150 basis points from current levels, and if the company generates positive free operating cash flow," S&P said. ATHILON CAPITAL: S&P Raises Issuer Credit Rating to 'BB+' --------------------------------------------------------- Standard & Poor's Ratings Services raised the issuer credit rating (ICR) on Athilon Capital Corp./ Athilon Asset Acceptance Corp. (Athilon) to 'BB+' from 'BB'. "At the same time, we affirmed our ratings on the senior subordinated, subordinated, and junior subordinated notes. Our outlook on Athilon is stable," S&P said. "Athilon is a credit derivative product company (CDPC) that has sold credit protections primarily on tranches referencing corporate and sovereign entities in the form of credit default swaps (CDS). Approximately 99% of the reference entities are corporate and 1% is sovereign," S&P said. "The upgrade to the ICR reflects our view regarding the seasoning credit of Athilon's tranche CDS portfolio. Athilon has not entered into new CDS transactions since 2008, and its CDS portfolio has been in natural amortization. As of March 28, 2012, the underlying portfolio comprised 72 tranche CDS with a $40.96 billion total notional amount. The tranche CDS' weighted average maturity was approximately 1.65 years, and the portfolio's last maturity is June 20, 2016. The tranche CDS portfolio's natural amortization and the underlying referenced corporate entities' stabilizing credit performance have contributed to a reduced required capital amount and, in our view, have provided a greater capital cushion against potential losses," S&P said. "In 2011, Athilon amended its operating guidelines to expand the types of investments in which it can invest its excess capital (i.e., capital resources in excess of the capital required to maintain its ICR). According to the amended operating guidelines, the haircut to these newly added investment types is 100% for the purpose of the capital adequacy test related to the ICR," S&P said. "The affirmations on the senior subordinated, subordinated, and junior subordinated notes reflect our view that the credit enhancement for the notes is still consistent with the notes' respective rating levels," S&P said. "Standard & Poor's will continue to review whether, in its view, the ratings currently assigned to Athilon remain consistent with the credit enhancement available to support them and will take rating actions as it deems necessary," S&P said. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATING RAISED Athilon Capital Corp./Athilon Asset Acceptance Corp. Issue Rating To From Issuer credit rating BB+/Stable BB/Stable RATINGS AFFIRMED Athilon Capital Corp. Issue Rating Senior subordinated note issues B Subordinated note issues CCC- Junior subordinated note issues CC AURASOUND INC: W. Kurtz and P. Andreyev Resign from Board --------------------------------------------------------- William H. Kurtz and Peter Andreyev tendered their resignations from the board of directors of Aurasound, Inc., effective April 23, 2012. About AuraSound, Inc. Santa Ana, Calif-based AuraSound, Inc. (OTC BB: ARUZE) -- http://www.aurasound.com/-- develops, manufactures, and markets audio products. AuraSound's products include TV soundbars, high- drivers for TVs and laptops, subwoofers, and tactile transducers. Hein & Associates LLP, in Irvine, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. During the year ended June 30, 2011, the Company had negative cash flow from operating activities amounting to $1.91 million and an accumulated deficit of $36.9 million. The Company's balance sheet at Dec. 31, 2011, showed $40.8 million in total assets, $34.6 million in total liabilities, all current, and $6.14 million in total stockholders' equity. B & T OLSON: Case Summary & 12 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: B & T Olson Family LLC 6932 Evergreen Way Everett, WA 98203 Bankruptcy Case No.: 12-14352 Chapter 11 Petition Date: April 26, 2012 Court: U.S. Bankruptcy Court Western District of Washington (Seattle) Judge: Karen A. Overstreet Debtor's Counsel: Katriana L. Samiljan, Esq. BUSH STROUT & KORNFELD LLP 601 Union Street, Suite 5000 Seattle, WA 98101 Tel: (206) 292-2110 E-mail: ksamiljan@bskd.com Scheduled Assets: $18,338,420 Scheduled Liabilities: $17,515,501 The petition was signed by Brett T. Olson, managing member. Debtor's List of Its 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Camano Commons-A Condo -- $2,802 848 N. Sunrise Boulevard, #B Camano Island, WA 98282 Snohomish County PUD -- $2,449 P.O. Box 1100 Everett, WA 98206-1100 City of Stanwood 03-31-12 $1,496 Water & Sewer 10220 270th Street NW Stanwood, WA 98292 Schindler Elevator Corp. -- $757 Snohomish County Treasurer Personal Property Tax $505 Lakes Stevens Sewer Dist -- $500 Frontier Telephone Service $321 Cascade Natural Gas -- $301 Total Landscape Corp -- $293 Waste Management -- $201 B.A.T. Masters -- $110 PMOW, LLC -- $72 BAKERS FOOTWEAR: Incurs $10.9 Million Net Loss in Fiscal 2012 ------------------------------------------------------------- Bakers Footwear Group, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $10.95 million on $185.09 million of net sales for the year ended Jan. 28, 2012, a net loss of $9.29 million on $185.62 million of net sales for the year ended Jan. 29, 2011, and a net loss of $9.08 million on $185.36 million of net sales for the year ended Jan. 30, 2010. The Company's balance sheet at Jan. 28, 2012, showed $41.71 million in total assets, $58.32 million in total liabilities, and a $16.61 million total shareholders' deficit. After auditing the Company's financial results for fiscal 2012, Ernst & Young LLP, in St. Louis, Missouri, expressed substantial doubt about the Company'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 said in the Form 10-K for the year ended Jan. 28, 2012, that if it does not achieve its updated business plan and its margin improvement and cost reduction plan, or if the Company were to incur significant unplanned cash outlays, it would become necessary for the Company to quickly seek additional sources of liquidity, or to find additional cost cutting measures. Any future financing would be subject to the Company's financial results, market conditions and the consent of the Company's lenders. The Company may not be able to obtain additional financing or it may only be able to obtain such financing on terms that are substantially dilutive to the Company's current shareholders and that may further restrict the Company's business activities. If the Company cannot obtain needed financing, its operations may be materially negatively impacted and the Company may be forced into bankruptcy or to cease operations. A copy of the Form 10-K is available for free at: http://is.gd/qwbrg9 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. BANK PROPERTY: Case Summary & 8 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Bank Property, L.P. 2500 W. Higgins Road, Suite 400 Hoffman Estates, IL 60169 Bankruptcy Case No.: 12-17188 Chapter 11 Petition Date: April 26, 2012 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Carol A. Doyle Debtor's Counsel: John W Guzzardo, Esq. Salvatore A Barbatano, Esq. SHAW GUSSIS FISHMAN GLANTZ WOLFSON & TOW 321 N. Clark Street, Suite 800 Chicago, IL 60654 Tel: (312) 276-1323 Tel: (312) 541-0151 E-mail: jguzzardo@shawgussis.com sbarbatano@shawgussis.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its eight largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb12-17188.pdf The petition was signed by Jeffrey S. Bandel, officer. BENEDICT BOMMARITO: Court Wants Plan Outline Amended ---------------------------------------------------- Bankruptcy Judge Thomas J. Tucker said the Combined Plan and Disclosure Statement filed by Benedict Domenic Bommarito cannot be approved due to some problems. The Debtor filed the Plan and Disclosure Statement on April 17, 2012. The revisions were due to be filed April 26. Among other things, the Court said the claims of multiple secured creditors are currently being treated in the same class (Class 1). The Debtor must separately classify and treat the claim of each secured creditor. With regard to each secured creditor, the Debtor must state the amount of the claim; the property securing the claim (if real estate, the full address, including city and state); the fair market value of the property securing the claim; whether any portion of the claim is unsecured; and if so, whether the secured creditor will have an unsecured deficiency claim, to be included and treated in the class of general unsecured claims; and if so, the amount of such claim. If more than one claim is secured by the same property, the Debtor must state the priority of each secured creditor (i.e., which creditor has a first priority lien and which creditor has a second priority lien). The Debtor also must state or estimate the total amount of the claim of the General Unsecured Creditors. The Plan provides that the executory contract with Ford Motor Credit is assumed. The Court said the Debtor must describe the subject matter of the lease being assumed, and must describe the material terms of the lease. The Debtor's Liquidation Analysis must provide an itemized descriptive listing of each of the Debtor's assets, so that the asset can be readily identified. The Debtor lists "Personal Property" valued at $31,171 in his Liquidation Analysis, with no indication of what falls within this broad category, e.g. furniture, computer equipment, cars. With regard to each asset listed, the Debtor must indicate whether there is a secured creditor with a lien on the property, and if so, the name of the secured creditor; the value of the property; the amount of any lien; and the equity remaining in the asset. The Debtor must also include an estimate of the Trustee fees in the Liquidation Analysis, and must include in his list of assets, and estimate the value of, the Debtor's interest in Eastpointe Manor Realty, LLC. The Disclosure Statement provides financial summaries for 2 years pre-petition. The Court said the Debtor must provide financial summaries for 3 years pre-petition. In addition, for each of the three years pre-petition, the Debtor must list the amount of the Debtor's income and the amount of the Debtor's expenses separately. Prior to April 17, the Court filed orders in other Chapter 11 cases, requiring the Debtor's attorney to amend Chapter 11 combined plans and disclosure statements that he has filed, in which the Court explained how secured claims must be separately classified and discussed in a proposed Chapter 11 plan and disclosure statement. Despite this, on April 17, the Debtor's attorney filed a combined plan and disclosure statement in each of four separate Chapter 11 cases, including the Debtor's case, that all had the same problems with respect to secured claims. The Court expects that in the future, and in all other cases, the Debtor's attorney will comply with the Court's requirements regarding secured claims the first time he files a combined plan and disclosure statement in a Chapter 11 case. A copy of the Court's April 22 order is available at http://is.gd/JlrryCfrom Leagle.com. According to reporting by the Troubled Company Reporter, Chapter 11 petitions were filed on Dec. 20, 2011, by Benedict Bommarito (Bankr. E.D. Mich. Case No. 11-72075) and by Domenic Bommarito and Concetta Bommarito (Bankr. E.D. Mich. Case No. 11-72076). BERNARD L. MADOFF: Trustee Files $330M Suit vs. Standard Chartered ------------------------------------------------------------------ Sindhu Sundar at Bankruptcy Law360 reports that the liquidating trustee for Bernard L. Madoff Investment Securities LLC on Thursday sued Standard Chartered Financial Services SA to recover the nearly $330 million in BLMIS customer assets it allegedly received through two Madoff feeder funds. In a complaint filed in New York bankruptcy court, Law360 relates, trustee Irving Picard claimed that Standard Chartered and its units had received the money from Fairfield Sentry Limited and Kingate Global Fund Ltd, two funds that had maintained more than 95 percent of their assets in BLMIS customer accounts. 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.) The SIPA Trustee has said that as of March 31, 2012, through prepetition litigation and other settlements, he has successfully recovered, or reached agreements to recover, more than $9 billion -- over 50% of the principal lost in the Ponzi scheme by those who filed claims -- for the benefit of all customers of BLMIS. The liquidation has so far has cost the Securities Investor Protection Corp. $1.3 billion, including $791 million to pay a portion of customers' claims. Mr. Picard has so far made only one distribution in October of $325 million for 1,232 customer accounts. Uncertainty created by the appeals has limited Mr. Picard's ability to distribute recovered funds. Outstanding appeals include the $5 billion Picower settlement and the $1.025 billion settlement. BEST INTERNATIONAL: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Best International Construction Company, Inc. 8422 Ballow Ave. College Park, MD 20740 Bankruptcy Case No.: 12-17878 Chapter 11 Petition Date: April 26, 2012 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Debtor's Counsel: Augustus T Curtis, Esq. COHEN, BALDINGER & GREENFELD, LLC 7910 Woodmont Avenue, Suite 1103 Bethesda, MD 20814 Tel: (301) 881-8300 Fax: (301) 881-8350 E-mail: augie.curtis@cohenbaldinger.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/mdb12-17878.pdf The petition was signed by Kyu Hong Park. BROADMORE ASSOCIATES: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Broadmore Associates, Inc. 103 Shannon Drive Nampa, ID 83687 Bankruptcy Case No.: 12-00967 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court District of Idaho (Boise) Judge: Terry L. Myers Debtor's Counsel: Richard B. Eismann, Esq. EISMANN LAW OFFICES 3016 Caldwell Boulevard Nampa, ID 83651-6416 Tel: (208) 467-3100 E-mail: counsel@eismannlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Richard V. Keim, Jr., president. C & M RUSSEL: Plan Filing Exclusivity Ends June 18 -------------------------------------------------- The bankruptcy judge previously entered an order extending C & M Russell LLC's exclusive periods to file and solicit acceptances for the proposed chapter 11 plan until June 18, 2012, and Aug. 15, respectively. In March, the bankruptcy judge vacated certain property management provisions contained in the order authorizing C & M Russell, LLC's use of cash collateral. The Debtor requested for an order vacating the portion of prior orders requiring the Debtor to employ third party property management company to take over the management of the Debtor's five multifamily apartment buildings. The Debtor explained that the sales or imminent sales of the Debtor's properties made moot the need for the provisions. About C&M Russell Los Angeles, California-based C & M Russell LLC owns five multifamily apartment buildings all located in either Redondo Beach or El Segundo, California. The Company first made a pro se Chapter 11 bankruptcy filing (Bankr. C.D. Calif. Case No. 11-49889) on Sept. 21, 2011. C & M Russell filed for another Chapter 11 petition (Bankr. C.D. Case No. 11-53845) on Oct. 20, 2011. Judge Sandra R. Klein presides over the case. Alan G. Tippie, Esq., and Avi E. Muhtar, Esq., at SulmeyerKupetz, serve as the Debtor's counsel. In the second petition, the Debtor scheduled assets of $17.5 million and debts of $9.30 million. The petition was signed by Mattie B. Evans, chief executive member. Kenneth Blake, CPA, acts as accountant. C-FSG426, LLC: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: C-FSG426, LLC 3455 Cliffs Shadows Parkway, Suite 220 Las Vegas, NV 89129 Bankruptcy Case No.: 12-14831 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Michael R. Hogue, Esq. BOGATZ & ASSOCIATES, P.C. 3455 Cliff Shadows Parkway, Suite 110 Las Vegas, NV 89129 Tel: (702) 776-7005 Fax: (702) 776-7900 E-mail: mhogue@isbnv.com Scheduled Assets: $1,081,500 Scheduled Liabilities: $1,015,000 The Company's list of its largest unsecured creditors filed with the petition does not contain any entry. The petition was signed by Thomas J. DeVore, chief operating officer of LEHM, LLC, manager. Affiliates that previously filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- A-SWDE1, LLC 09-34216 12/29/09 B-NGAE3, LLC 11-29000 12/12/11 B-NWI2, LLC 11-16584 04/29/11 B-PVL2, LLC 10-16648 04/10/10 B-PWR, LLC 12-13827 03/30/12 C-FSG425, LLC 11-16560 04/29/11 C-FSG427, LLC 11-16568 04/29/11 C-FSG428, LLC 11-16571 04/29/11 C-NGA312, LLC 11-18976 06/08/11 C-NGA313, LLC 11-18977 06/08/11 C-NGA317, LLC 11-18982 06/08/11 C-NGA318, LLC 11-18984 06/08/11 C-NW360, LLC 11-18989 06/08/11 C-PV323, LLC 11-21036 07/13/11 C-PV330, LLC 11-21038 07/13/11 C-PV332, LLC 11-21058 07/13/11 C-SWDE348, LLC 11-13942 03/21/11 C-SWDE393, LLC 11-21059 07/13/11 C-SWDE394, LLC 11-21063 07/13/11 C-NGA314, LLC: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: C-NGA314, LLC 3455 Cliff Shadows Parkway, Suite 220 Las Vegas, NV 89129 Bankruptcy Case No.: 12-14834 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Michael R. Hogue, Esq. BOGATZ & ASSOCIATES, P.C. 3455 Cliff Shadows Parkway, Suite 110 Las Vegas, NV 89129 Tel: (702) 776-7005 Fax: (702) 776-7900 E-mail: mhogue@isbnv.com Scheduled Assets: $2,101,500 Scheduled Liabilities: $1,367,000 The Company's list of its largest unsecured creditors filed with the petition does not contain any entry. The petition was signed by Thomas J. DeVore, chief operating officer of LEHM, LLC, manager. Affiliates that previously filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- A-SWDE1, LLC 09-34216 12/29/09 B-NGAE3, LLC 11-29000 12/12/11 B-NWI2, LLC 11-16584 04/29/11 B-PVL2, LLC 10-16648 04/10/10 B-PWR, LLC 12-13827 03/30/12 C-FSG425, LLC 11-16560 04/29/11 C-FSG427, LLC 11-16568 04/29/11 C-FSG428, LLC 11-16571 04/29/11 C-NGA312, LLC 11-18976 06/08/11 C-NGA313, LLC 11-18977 06/08/11 C-NGA317, LLC 11-18982 06/08/11 C-NGA318, LLC 11-18984 06/08/11 C-NW360, LLC 11-18989 06/08/11 C-PV323, LLC 11-21036 07/13/11 C-PV330, LLC 11-21038 07/13/11 C-PV332, LLC 11-21058 07/13/11 C-SWDE348, LLC 11-13942 03/21/11 C-SWDE393, LLC 11-21059 07/13/11 C-SWDE394, LLC 11-21063 07/13/11 C-NGA315, LLC: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: C-NGA315, LLC 3455 Cliff Shadows Parkway, Suite 220 Las Vegas, NV 89129 Bankruptcy Case No.: 12-14836 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Michael R. Hogue, Esq. BOGATZ & ASSOCIATES, P.C. 3455 Cliff Shadows Parkway, Suite 110 Las Vegas, NV 89129 Tel: (702) 776-7005 Fax: (702) 776-7900 E-mail: mhogue@isbnv.com Scheduled Assets: $2,101,500 Scheduled Liabilities: $1,365,000 The Company's list of its largest unsecured creditors filed with the petition does not contain any entry. The petition was signed by Thomas J. DeVore, chief operating officer of LEHM, LLC, manager. Affiliates that previously filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- A-SWDE1, LLC 09-34216 12/29/09 B-NGAE3, LLC 11-29000 12/12/11 B-NWI2, LLC 11-16584 04/29/11 B-PVL2, LLC 10-16648 04/10/10 B-PWR, LLC 12-13827 03/30/12 C-FSG425, LLC 11-16560 04/29/11 C-FSG427, LLC 11-16568 04/29/11 C-FSG428, LLC 11-16571 04/29/11 C-NGA312, LLC 11-18976 06/08/11 C-NGA313, LLC 11-18977 06/08/11 C-NGA317, LLC 11-18982 06/08/11 C-NGA318, LLC 11-18984 06/08/11 C-NW360, LLC 11-18989 06/08/11 C-PV323, LLC 11-21036 07/13/11 C-PV330, LLC 11-21038 07/13/11 C-PV332, LLC 11-21058 07/13/11 C-SWDE348, LLC 11-13942 03/21/11 C-SWDE393, LLC 11-21059 07/13/11 C-SWDE394, LLC 11-21063 07/13/11 CANO PETROLEUM: Taps Kane Russell for Matters on Prepetition Liens ------------------------------------------------------------------ Cano Petroleum, Inc., et al., filed an application with the U.S. Bankruptcy Court for the Northern District of Texas to employ Kane Russell Coleman & Logan PC, as special counsel. KRCL will assist the Debtors with issues relating to (i) the investigation and analysis of the extent, validity, priority and perfection of asserted prepetition liens and security interests of and claims against the Senior Secured Lenders and the holders of the Junior Secured Debt2 and related issues; and (ii) other matters, if any, that are requested by the Debtors due to conflicts or similar limitations upon the Debtors' proposed counsel Thompson & Knight, LLP. The Debtors add that the scope of KRCL's engagement is intended to be narrow and limited. The hourly rates of the attorneys expected to perform legal services hereunder range from $550 to $250 for partners and associates. The hourly rate of the paraprofessionals expected to perform services range from $175 to $165. To the best of the Debtors' knowledge, the attorneys at KRCL do not have any connection with the Debtors, the Debtors' creditors, or any other parties in interest, their respective attorneys and accountants, the United States Trustee, or any person employed in the Office of the United States Trustee, except as disclosed in the declaration of Joseph M. Coleman. The firm can be reached at: Joseph M. Coleman, Esq. KANE RUSSELL COLEMAN & LOGAN PC 3700 Thanksgiving Tower 1601 Elm Street Dallas, TX 75201 Tel: (214) 777-4200 Fax: (214) 777-4299 E-mail: ecf@krcl.com About Cano Petroleum Cano Petroleum, Inc. (NYSE Amex: CFW), an independent Texas- based energy producer with properties in the mid-continent region of the United States, filed for Chapter 11 bankruptcy (Bank. N.D. Tex. Lead Case No. 12-31549) on March 7, 2012. Other affiliates also sought bankruptcy protection: Cano Petro of New Mexico, Ladder Companies, Inc., Square One Energy, Inc., Tri-Flow, Inc., W.O. Energy of Nevada, Inc., W.O. Operating Company, Ltd., W.O. Production Company, Ltd., and WO Energy, Inc. The cases are jointly administered. The Debtors filed for bankruptcy to pursue a sale under a joint plan of reorganization filed on the petition date. Cano Petroleum have entered into a Stalking Horse Stock Purchase Agreement with NBI Services Inc., pursuant to which NBI would purchase all of the shares of common stock that would be issued by Reorganized Cano under the Plan for $47.5 million. The deal is subject to higher and better offers and a possible auction. The petitions were filed by James R. Latimer, III, chief executive officer. Judge Barbara J. Houser oversees the case. The Debtors are represented by lawyers at Thompson & Knight LLP, in Dallas Texas. Cano Petroleum's consolidated balance sheet at Sept. 30, 2011, showed $63.37 million in total assets, $116.25 million in total liabilities, and a $52.88 million total stockholders' deficit. In schedules filed with the Court, Cano Petroleum disclosed $1.16 million in assets and $82.5 million in liabilities. Union Bank of California, the administrative agent and issuing lender under the Debtors' prepetition senior credit facility; and UnionBanCal Equities, Inc., the administrative agent and issuing lender, under the junior credit facility, are represented by: William A. "Trey" Wood III, Esq., at Bracewell & Giuliani LLP. CANO PETROLEUM: General and Governmental Claims Due May 7 --------------------------------------------------------- The Bankruptcy Court for the Northern District of Texas has established 5:00 p.m. (prevailing Central Standard Time) on May 7, 2012, as the deadline for any entity or individual, including any governmental unit, to file proofs of claim against Cano Petroleum, Inc., et al. Proofs of claim must be filed by hand delivery or overnight mail at: BMC Group, Inc. Re: Cano Petroleum, Inc. 18675 Lake Drive East Chanhassen, MN 55317 or by first class mail at: BMC Group, Inc. Re: Cano Petroleum, Inc. P.O. Box 3020 Chanhassen, MN 55317-3020 About Cano Petroleum Cano Petroleum, Inc. (NYSE Amex: CFW), an independent Texas- based energy producer with properties in the mid-continent region of the United States, filed for Chapter 11 bankruptcy (Bank. N.D. Tex. Lead Case No. 12-31549) on March 7, 2012. Other affiliates also sought bankruptcy protection: Cano Petro of New Mexico, Ladder Companies, Inc., Square One Energy, Inc., Tri-Flow, Inc., W.O. Energy of Nevada, Inc., W.O. Operating Company, Ltd., W.O. Production Company, Ltd., and WO Energy, Inc. The cases are jointly administered. The Debtors filed for bankruptcy to pursue a sale under a joint plan of reorganization filed on the petition date. Cano Petroleum have entered into a Stalking Horse Stock Purchase Agreement with NBI Services Inc., pursuant to which NBI would purchase all of the shares of common stock that would be issued by Reorganized Cano under the Plan for $47.5 million. The deal is subject to higher and better offers and a possible auction. The petitions were filed by James R. Latimer, III, chief executive officer. Judge Barbara J. Houser oversees the case. The Debtors are represented by lawyers at Thompson & Knight LLP, in Dallas Texas. Cano Petroleum's consolidated balance sheet at Sept. 30, 2011, showed $63.37 million in total assets, $116.25 million in total liabilities, and a $52.88 million total stockholders' deficit. In schedules filed with the Court, Cano Petroleum disclosed $1.16 million in assets and $82.5 million in liabilities. Union Bank of California, the administrative agent and issuing lender under the Debtors' prepetition senior credit facility; and UnionBanCal Equities, Inc., the administrative agent and issuing lender, under the junior credit facility, are represented by: William A. "Trey" Wood III, Esq., at Bracewell & Giuliani LLP. CAPITOL INFRASTRUCTURE: Case Summary & Creditors List ----------------------------------------------------- Lead Debtor: Capitol Infrastructure, LLC 111 Corning Road, Suite 250 Cary, NC 27518 Bankruptcy Case No.: 12-11362 Chapter 11 Petition Date: April 26, 2012 Affiliates that simultaneously filed Chapter 11 petitions on April 26, 2012: Debtor Case No. ------ -------- Capitol Infrastructure CP Funding, LLC 12-11356 Infrastructure SPE, 12-11357 SMARTRESORT CO., L.L.C. 12-11358 Capitol Broadband Development Company, LLC 12-11359 Amenity Broadband, LLC 12-11360 Accelera Services, LLC 12-11361 Broadstar, LLC 12-11363 Baldwin County Internet/DSSI Service, L.L.C. 12-11364 CB Infrastructure SPE, LLC 12-11365 BA Infrastructure SPE, LLC 12-11366 Capitol Broadband Ventures, LLC 12-11367 Affiliate that filed a Chapter 11 petition on April 28, 2012: Debtor Case No. ------ -------- Capitol Broadband Management Corporation 12-11393 Court: U.S. Bankruptcy Court District of Delaware (Delaware) About the Debtors: Ten-year-old Capitol Infrastructure is a real estate and telecommunications company whose business is to secure telecommunications rights on properties, improve those rights by constructing broadband telecommunication infrastructure including fiber optics, coaxial cable, wireless systems, head end facilities, and satellite facilities at the properties, and to deliver video, voice, and internet and sometimes alarm services to end users. Debtors' Counsel: David M. Fournier, Esq. PEPPER HAMILTON LLP Hercules Plaza, Suite 5100 1313 Market Street Wilmington, DE 19899-1709 Tel: (302) 777-6500 Fax: (302) 421-8390 E-mail: fournierd@pepperlaw.com - and - James C. Carignan, Esq. PEPPER HAMILTON LLP Hercules Plaza, Suite 5100 1313 Market Street Wilmington, DE 19801 Tel: (302) 777-6500 Fax: (302) 421-8390 E-mail: carignaj@pepperlaw.com Debtors' Co-Counsel: WYRICK ROBBINS YATES & PONTON LLP Counsel to Hotwire Communications, The stalking horse bidder: PACHULSKI STANG ZIEHL & JONES, LLP Bradford J. Sandler, Esq. 919 N. Market Street, 17th Floor Wilmington, DE 190801, Counsel to DIP Lender Unicredit Bank: MAYER BROWN LLP Howard S. Beltzer, Esq. 1675 Broadway New York, New York 10019-5820 - and - RICHARDS, LAYTON & FINGER, P.A. Mark D. Collins, Esq. 920 N. King Street Wilmington, DE 19801 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by Glen D. Lang, manager. Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Direct TV Trade Debt $2,405,193 2230 East Imperial Highway El Segundo, CA 90245 Level 3 Communications LLC Trade Debt $1,319,725 1025 Eldorado Boulevard Broomfield, CO 80021 Wise Owl Communications, Inc. Trade Debt $738,226 1117 Perimeter Center W., Suite E306 Atlanta, GA 30338 Perfect 10 Trade Debt $695,892 3901 Progress Street North Little Rock, AR 72114 Dish Network Trade Debt $615,525 9601 S. Meridian Boulevard Englewood, CO 80112 Cableworks, Inc. Trade Debt $377,778 8061 Pecue Lane Baton Rouge, LA 70809 Cisco Trade Debt $374,442 170 West Tasman Drive San Jose, CA 95134 AT&T Trade Debt $361,444 208 S. Akard Street Dallas, TX 75202 Interactive Contact Solutions, Trade Debt $305,702 Inc. Sun Communities, Inc. Trade Debt $212,324 Alcatel-Lucent USA, Inc. Trade Debt $183,821 Smith, Anderson, Blount, Dorsett, Professional Fees $165,740 Mitchell & Jernigan, LLP CSC Trade Debt $148,475 Wyrick Robbins Yates & Ponton LLP Professional Fees $137,066 Optical Fiber Force, Inc. Trade Debt $135,686 Integrated Communications Group, Trade Debt $124,489 Inc. The Kern Organization, Inc. Trade Debt $117,289 LGM Construction, Inc. Trade Debt $117,248 Midwest Utility Inc. Trade Debt $112,245 Richland County Treasury Taxes/Regulatory Fees $104,148 Greenberg Traurig, P.A. Professional Fees $103,492 Florida Dept of Revenue Taxes/Regulatory Fees $100,634 PFRS Crossroads Corporation Trade Debt $94,243 Foxridge Mobile Home Park Trade Debt $91,069 Fox Sports Net South Trade Debt $89,977 Bandwidth.com, Inc. Trade Debt $83,046 PDI Communications, Inc. Trade Debt $65,188 Terremark North America Trade Debt $61,853 US Signal Trade Debt $61,091 Nova Utility Construction, Inc. Trade Debt $60,590 CATASYS INC: Issues 10.9 Million Common Shares to Socius -------------------------------------------------------- Catasys, Inc., on April 17, 2012, issued to Socius Capital Group, LLC, 10,965,050 shares of common stock, par value $0.0001 per share, and a warrant to purchase 10,965,050 shares of Common Stock in exchange for $1,754,408. The amount invested included $765,000 in cash, the exchange of the $975,000 in principal amount of the secured convertible promissory note issued on Feb. 22, 2012, and amended on April 11, 2012, and $14,408 in interest. A copy of the filing is available for free at: http://is.gd/dZMdzH About Hythiam, Inc. Based in Los Angeles, California, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. The Company reported a net loss of $8.12 million in 2011, compared with a net loss of $19.99 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $3.58 million in total assets, $8.07 million in total liabilities and a $4.49 million total stockholders' deficit. For 2011, Rose, Snyder & Jacobs LLP, in Encino, California, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2011. Bankruptcy Warning As of March 28, 2012, the Company had a balance of approximately $95,000 cash on hand. The Company had working capital deficit of approximately $2.2 million at Dec. 31, 2011, and has continued to deplete its cash position subsequent to Dec. 31, 2011. The Company has incurred significant net losses and negative operating cash flows since its inception. The Company could continue to incur negative cash flows and net losses for the next twelve months. The Company's current cash burn rate is approximately $450,000 per month, excluding non-current accrued liability payments. The Company expects its current cash resources to cover expenses into April 2012, however delays in cash collections, revenue, or unforeseen expenditures could impact this estimate. The Company will need to immediately obtain additional capital and there is no assurance that additional capital can be raised in an amount which is sufficient for the Company or on terms favorable to its stockholders, if at all. If the Company does not immediately obtain additional capital, there is a significant doubt as to whether it can continue to operate as a going concern and the Company will need to curtail or cease operations or seek bankruptcy relief. CDC CORP: Equity Committee Says Motion to Dismiss Inadequate ------------------------------------------------------------ The Official Committee of Equity Security Holders in the Chapter 11 case of CDC Corporation filed with the U.S. Bankruptcy Court for the Northern District of Georgia a joinder to the Debtor's response to China.com's motion to dismiss the Debtor's case. The Committee explains that China.com's motion does not explain how the so-called Remaining Shareholder Disputes affect shareholder interests or why having the disputes resolved exclusively outside of bankruptcy would actually be in the best interest of the Debtor, the estate, and shareholders. The Committee adds that it does not explain why dismissal, for which shareholders are not able to vote, is in the best interests of the Debtor and its shareholders instead of allowing the shareholders to vote on the proposed plans of reorganization, one of which has been filed by China.com. It also does not explain why it failed to afford all shareholders proper notice of the motion to dismiss. In a separate filing, Asia Pacific On-Line Limited and Nicola Chu Ming Nga have joined in the motion requesting dismissal of the Debtor's bankruptcy case. The movants collectively hold or control in excess of 18% of the outstanding equity securities in the Debtor, and APOL is believed to be the largest single shareholder of the Debtor. As reported in the Troubled Company Reporter on April 20, 2012, China.com, owner of approximately 250,517 shares of CDC common stock, filed with the U.S. Bankruptcy Court a motion seeking to dismiss the CDC Chapter 11 case. They also filed a motion seeking to continue the Disclosure Statement hearing scheduled for April 26, 2012, until the Court considers the dismissal motion. China.com asserted that the Bankruptcy Court lacks subject matter jurisdiction in this case to hear and finally determine the Remaining Shareholder Disputes. Furthermore, China.com submits that "cause" exists under 11 U.S.C. 1112(b) to dismiss the Debtor's bankruptcy case because no bankruptcy purpose will be served by continuing the case and out of deference to Cayman Islands law. The Court scheduled May 8, 2012 hearing on the matter. About CDC Corp. Based in Atlanta, CDC Corp. (Nasdaq: CHINA) -- http://www.cdccorporation.net/-- is the parent company of CDC Software (Nasdaq: CDCS). CDC Software is based dually in Shanghai, China, and Atlanta and produces enterprise software applications, IT consulting services, outsourced applications development and IT staffing. The company's owners include Asia Pacific Online Ltd., Xinhua News Agency and Evolution Capital Management. CDC Corporation, doing business as Chinadotcom, filed a Chapter 11 petition (Bankr. N.D. Ga. Case No. 11-79079) on Oct. 4, 2011. James C. Cifelli, Esq., at Lamberth, Cifelli, Stokes & Stout, PA, in Atlanta, Georgia, serves as counsel. Moelis & Company LLC serves as its financial advisor and investment banker. Marcus A. Watson at Finley Colmer and Company serves as chief restructuring officer. The Debtor estimated assets and debts at US$100 million to US$500 million as of the Chapter 11 filing. The Official Committee of Equity Security Holders of CDC Corporation is represented by Troutman Sanders. The Committee tapped Morgan Joseph TriArtisan LLC as its financial advisor. CDC CORP: Taps K2 Advisors to Perform Accounting Services --------------------------------------------------------- CDC Corporation asks the U.S. Bankruptcy Court for the Northern District of Georgia for permission to employ K2 Advisors, LLC, as accountants. As of the Petition Date, the ebtor and CDC Software were parties to a Services Agreement dated Aug. 6, 2009, as supplemented. The Debtor relates that as a result of the sale of CDC Software to the stalking horse purchaser, CDC Software's obligation to perform under the Services Agreement terminated. Currently performance of accounting services by CDC Software is governed by a Transition Services Agreement, executed in connection with the agreement, providing that CDC Software will, for a limited time, continue to provide accounting services to Debtor consistent with past practices. The Transition Services Agreement provides that the Debtor will use commercially reasonable efforts to transition from reliance upon accounting services provided by CDC Software soon as practicable after the Closing Date, and in any event CDC Software's obligation to provide accounting services will terminate six months after the Closing Date. The Debtor seeks to employ K2 Advisors, LLC to compile and maintain its books and records and perform these accounting services that were previously provided by CDC Software: a) oversight of financial reporting and required financial footnote disclosures; b) monitoring of balance sheets and P&L at legal entity level; c) non-standard accounting decisions, including entries for restructuring gains and losses on sale. The hourly rates for individuals at K2 Advisors, LLC who may provide services for the Debtor are: a) James R. Jennings $275 b) Marc Watson Jr. $225 To the best of the Debtor's knowledge, K2 Advisors is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About CDC Corp. Based in Atlanta, CDC Corp. (Nasdaq: CHINA) -- http://www.cdccorporation.net/-- is the parent company of CDC Software (Nasdaq: CDCS). CDC Software is based dually in Shanghai, China, and Atlanta and produces enterprise software applications, IT consulting services, outsourced applications development and IT staffing. The company's owners include Asia Pacific Online Ltd., Xinhua News Agency and Evolution Capital Management. CDC Corporation, doing business as Chinadotcom, filed a Chapter 11 petition (Bankr. N.D. Ga. Case No. 11-79079) on Oct. 4, 2011. James C. Cifelli, Esq., at Lamberth, Cifelli, Stokes & Stout, PA, in Atlanta, Georgia, serves as counsel. Moelis & Company LLC serves as its financial advisor and investment banker. Marcus A. Watson at Finley Colmer and Company serves as chief restructuring officer. The Debtor estimated assets and debts at US$100 million to US$500 million as of the Chapter 11 filing. The Official Committee of Equity Security Holders of CDC Corporation is represented by Troutman Sanders. The Committee tapped Morgan Joseph TriArtisan LLC as its financial advisor. CHATSWORTH INDUSTRIAL: May 24 Hearing on Full-Payment Plan ---------------------------------------------------------- The bankruptcy judge has scheduled a hearing on May 24, 2012, at 9:30 a.m. to consider confirmation of Chatsworth Industrial Park LP's Third Amended Plan of Reorganization. Objections are due May 10, 2012. At a hearing on April 19, the Debtor presented to the bankruptcy judge the Second Modification to its Second Amended Chapter 11 Plan. At the directive of the bankruptcy judge, the Debtor filed a Third Amended Chapter 11 Plan on April 27. The Debtor won approval of the disclosure statement explaining the Second Amended Chapter 11 Plan in February 2011. But hearings on the Plan and certain contested matters, including an objection by secured creditor CSFB 2003-C4 Nordhoff Limited Partnership, have been continued from time to time through a series of stipulations between the Debtor and CSFB. One voting class (Class 2A general unsecured creditors) voted to accept the Second Amended Plan while two voting classes (Class 1 and Classes 2B, both held by CSFB) voted to reject the Plan. According to the Second Modification, the Debtor has now obtained an alternate source of funding, through Adler Realty Investments, Inc. ("ARI"), which is willing to partner up with the Debtor and provide funds to cure the CSFB loan in full pursuant to the relevant provisions of the Bankruptcy Code, pay unsecured creditors in full, and pay administrative claims in full, all on the Effective Date of the Plan, in such amounts as are mutually agreed to by the parties or ultimately determined by the Court, rendering all classes of claims unimpaired and hence deemed to have accepted the Plan. The Debtor had requested that the Court affirm that the Second Plan Modification does not adversely change the treatment of the claim of any creditor who has not accepted in writing the modification and that re-solicitation of votes from impaired classes that previously voted to accept the Plan (i.e., Class 2 General Unsecured) is not necessary. The Court's April 25, 2012 order, nonetheless, required the Debtor to submit a Third Amended Plan, although it did not require a new disclosure statement. The Court ordered the Debtor to mail not later than April 27 the notice of the confirmation hearing and the ballots. Voting, according to the order, shall be "without prejudice that shall be without prejudice to the Debtor's contention that all classes of claims under the previously filed Second Plan Modification and the to-be-filed Third Amended Chapter 11 Plan are unimpaired and hence deemed to have accepted the Plan, or to any contention that may be made by a creditor disputing such characterization." Ballots voting on the Plan must be received by the Debtor's counsel by May 10. A copy of the Third Amended Chapter 11 Plan is available for free at http://bankrupt.com/misc/Chatsworth_3rd_Amended_Plan.pdf A copy of the non-material modifications to the Second Amended Plan is available for free at http://bankrupt.com/misc/Chatsworth_2nd_Plan_Modifications.pdf About Chatsworth Industrial Tarzana, California-based Chatsworth Industrial Park, LP, owns and operates five adjacent industrial properties in Chatsworth, California. It filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 09-27368) on Dec. 23, 2009. Judge Maureen Tighe presides over the case. Caceres & Shamash, LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated assets at $10 million to $50 million and $1 million to $10 million in debts. CHEF SOLUTIONS: Debtor Wins Confirmation of Liquidating Plan ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that more than 90 percent of creditors of Food Processing Liquidation Holdings LLC voted in favor of the liquidating Chapter 11 plan for the company that was previously known as Chef Solutions Inc. As a result, the U.S. Bankruptcy Judge in Delaware signed a confirmation order on April 26 approving the plan projected to give unsecured creditors with $32 million in claims a recovery between 0.5 percent and 5 percent. Creditor KB Pizza, Inc., prior to the hearing, filed an objection to the Plan's confirmation. K.B. Pizza complained that the Plan does not provide for payment of K.B. Pizza's claim. K.B. Pizza explains that it did not know of the Debtors' filing and did not become aware of the bar date until near date. About Chef Solutions Chef Solutions, through subsidiary Orval Kent Food, was the second largest manufacturer in North America of fresh prepared foods for retail, food service and commercial channels. Chef Solutions and its affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 11-13139) on Oct. 4, 2011. Debtor Orval Kent Food Company disclosed $82,902,336 in assets and $126,085,311 in liabilities in its schedules. The Debtor was renamed to Food Processing Liquidation Holdings LLC, following the sale of most of the assets to RMJV, L.P., a joint venture between Mistral Capital Management LLC and Reser's Fine Foods Inc. In addition to debt assumption, the price included $35.9 million in cash to pay off secured debt plus a $25.3 million credit bid. The Debtors entered into an asset purchase agreement with RMJV on the Petition Date. On Nov. 15, 2011, the Court approved the APA and the sale, and on Nov. 21, the sale closed. Judge Kevin Gross presides over the case. Lawyers at Richards, Layton & Finger, P.A., serve as the Debtors' bankruptcy counsel. Donlin Recano is the claims and notice agent. Piper Jaffray & Co. has been hired as investment banker. PricewaterhouseCoopers serves as financial advisor. Lowenstein Sandler PC and Polsinelli Shughart serve as counsel to the creditors' committee appointed in the case. Mesirow Financial Consulting, LLC, is the financial advisor. CHESAPEAKE ENERGY: S&P Lowers Corporate Credit Rating to 'BB' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Oklahoma City-based Chesapeake Energy Corp., including the corporate credit rating to 'BB' from 'BB+', and lowered ratings on two related entities -- Chesapeake Oilfield Operating LLC and Chesapeake Midstream Partners L.P. "At the same time, we placed all these ratings on CreditWatch with negative implications," S&P said. "The downgrade and CreditWatch placement reflect our view that recent revelations about personal transactions undertaken by Chesapeake's CEO relating to the company's unusual Founder Well Participation Program underscore shortcomings in Chesapeake Energy Corp.'s corporate governance practices," said Standard & Poor's credit analyst Scott Sprinzen. "Under the FWPP, Chesapeake's CEO, Aubrey McClendon can, before the beginning of each year, elect to take a small (up to 2.5%, subject to certain restrictions) working interest in all of the wells Chesapeake drills during that year. Recent press reports have revealed that Mr. McClendon has obtained loans to fund his investments under the FWPP from third parties (such as EIG Global Energy Partners LLC) who, at the same time, were also significant participants in financing transactions with Chesapeake. Mr. McClendon has also at times sold his interests in certain fields, in conjunction with asset sales by Chesapeake. We believe these transactions heighten the potential for unmanaged and unmonitored conflicts of interest, or the perception thereof. Under the terms of the FWPP, there has been no effective mechanism to protect against conflicts of interest, in our view. Indeed, Chesapeake has previously stated that the company does not review or approve financings of Mr. McClendon's personal assets, including his FWPP interests. It is our understanding that Mr. McClendon has also been under no obligation to disclose his dealings with third parties which also have lending, investment, or advisory relationships with the company," S&P said. "Chesapeake has announced that its board and Mr. McClendon have committed to negotiate the early termination of the FWPP, which otherwise would have expired at the end of 2015. The company also announced that the Board is reviewing financing arrangements between Mr. McClendon (and the entities through which he participates in the FWPP) and any third party that has had a relationship with the company in any capacity. The board has also confirmed that it did not previously review, approve, or have knowledge of the specific transactions engaged in by Mr. McClendon or the terms of those transactions. In our view this represents a significant governance deficiency," S&P said. "Turmoil resulting from these developments -- and from potential revelations resulting from the board investigation -- could hamper Chesapeake's ability to meet the massive external funding requirements stemming from its currently weak operating cash flow and aggressive capital spending. Chesapeake's production is heavily skewed toward natural gas, and natural gas prices are severely depressed at this time. Although hedge-related gains had been an important support to Chesapeake's earnings and cash flow in recent years, the company terminated its natural-gas related hedge positions in late 2011. Chesapeake is in the midst of an extensive repositioning of its business mix, placing more emphasis on production of crude oil and natural gas liquids (collectively, liquids). The company's excellent drilling record and large acreage positions in the most promising North American liquids- rich basins afford confidence about its ability to make this transition," S&P said. "However, Chesapeake faces very large external funding requirements to sustain the aggressive planned investment needed to effect its strategic shift. In its investor presentation dated April 17, 2012, Chesapeake gave guidance of total investment of $10.9 billion to $12.4 billion in 2012, and $10.5 billion to $12.3 billion in 2013. This guidance encompasses well costs on proved and unproved properties, acquisition of unproved properties, and investment in oilfield services and midstream assets. Based on our estimates and price deck assumptions (including natural gas price of $2.00/btu in 2012, $2.75 in 2013, and $3.50 thereafter), we expect Chesapeake's funds from operations to total only $3.4 billion to $3.8 billion in 2012 and $5.4 billion to $5.8 billion in 2013, implying massive internal funding shortfalls," S&P said. "As part of our CreditWatch review, Standard & Poor's will take account of the conclusions of the board's investigation; the terms under which the FWPP is terminated; Chesapeake's ongoing capital- raising initiatives; and potential changes to its growth strategy, financial policies, and governance structure. At this time, we cannot rule out further ratings downgrades of more than one notch; for example, if we believe that asset monetization actions will fall short of plans and that offsetting actions won't be taken to preserve liquidity and limit the increase in financial leverage," S&P said. "The ratings on Chesapeake Oilfield Operating LLC and Chesapeake Midstream Partners L.P. are constrained by our ratings on Chesapeake, given the extent of Chesapeake's ownership control over these entities, and the close business ties between Chesapeake and these entities," S&P said. "Over time, we could elevate Chesapeake Midstream Partners L.P. ratings above those of Chesapeake Energy if it achieves greater customer diversity and remains committed to conservative financial policies. However, given the large list of future drop-down candidates from Chesapeake, we do not anticipate any ratings separation in the near term," S&P said. CHINA TEL GROUP: Amends Loan Agreement with Isaac ------------------------------------------------- VelaTel Global Communications, Inc., formerly known as China Tel Group Inc., entered into an Amended and Restated Loan Agreement with Isaac Organization, Inc. The Amendment amends the Agreement to Extend and Increase First Line of Credit Loan Agreement and Promissory Note, Cancel Stock Purchase Agreement, and Grant Option in VN Tech Agreement entered into between the Company and Isaac on Feb. 23, 2012. The Extension Agreement extended the maturity and increased the credit limit of a Line of Credit Loan Agreement and Promissory Note entered into between the Company and Isaac on July 1, 2011. Pursuant to the Extension Agreement, the principal balance of the Extended First Note was $7,425,101 as of Feb. 23, 2012, plus interest at the rate of 10% per annum from that date. The maturity date of the Extended First Note was June 30, 2012. Under the Amendment, the Extended First Note is cancelled and substituted for fourteen promissory notes in the principal amount of $500,000 each, plus one promissory note in the amount of $425,101. The maturity date of Amended Isaac Note #1 is April 30, 2012, and the maturity date of each succeeding Amended Isaac Note #2-#15 is the 15th day and the last calendar day of each month in succession after April 30, 2012. Interest accrues on each Amended Isaac Note at 10% per annum from Feb. 23, 2012. The Company may prepay any of the Amended Isaac Notes in whole or in part prior to its maturity date without penalty. The Amendment confirms the cancellation of the previous Stock Purchase Agreement remains cancelled. All other terms of the Extension Agreement that are not consistent with the Amendment are of no further force and effect. The Amendment recites that it has no effect on the Second Line of Credit Loan Agreement and Promissory Note also entered into between the Company and Isaac Agreement on Feb. 23, 2012. A copy of the Amended Loan Agreement is available for free at: http://is.gd/xrp13a McEwen Promissory Note On April 26, 2012, the Company granted a Line of Credit Promissory Note to David S. McEwen in the principal amount of $ 1,052,631. The disbursement amount of the McEwen Note is up to $1,000,000. McEwen will retain from each disbursement a 5% holdback. The difference between the disbursement amount and the principal amount represents the 5% holdback. The maturity date of the McEwen Note is April 25, 2013. The Company may prepay the McEwen Note in whole or in part prior to its maturity date without penalty. The McEwen Note bears interest on the unpaid principal balance at 10% per annum. A copy of the Promissory Note is available for free at: http://is.gd/Cad2AB Sale of Equity Securities On April 27, 2012, the Company issued shares of its Series A Common Stock to the following: -- 3,021,363 shares to Changewave, Inc., dba NBT Communications in full payment of the unpaid balance for services rendered pursuant to a consulting agreement between the Company and NBT entered into on May 6, 2011, and cancelled by the Company on Jan. 12, 2012. -- 6,666,667 shares to Alhamd Holding Company as consideration for the Company's acquisition of 75% of the capital stock of Zapna, ApS completed on April 3, 2012. -- 10,000,000 shares to Lou Hongye as consideration for the Company's acquisition of 75% of the capital stock of VN Tech Investment, Ltd. (HK) completed on April 22, 2012. -- 33,693,197 Shares and 33,693,197 warrants to Isaac Organization, Inc., in payment of Amended Isaac Note #1 due April 30, 2012. Each warrant has an exercise price of $0.0151 and an exercise term of three years. 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. The Company, in the untimely filed Form 10-K, reported a net loss of $21.79 in 2011, compared with a net loss of $66.62 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $12.83 million in total assets, $22.76 million in total liabilities and a $9.92 million total stockholders' deficiency. For 2011, Kabani & Company, Inc., in Los Angeles, California, expressed substantial doubt as to the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred a net loss for the year ended Dec. 31, 2011, cumulative losses of $253,660,984 since inception, a negative working capital of $16,386,204 and a stockholders' deficiency of $9,928,838. CLARE AT WATER TOWER: Sale-Based Chapter 11 Plan Confirmed ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Chicago Senior Care LLC is in a position to complete acquisition of The Clare at Water Tower, an upscale 334-unit high- rise continuing-care retirement community in Chicago. The U.S. Bankruptcy Judge in Chicago approved the reorganization plan for the facility on April 27. The report relates that all voting classes were in favor of the plan. Chicago Senior Care had contracted before an auction to buy the facility for $29.5 million cash. The buyer is a venture among Senior Care Development LLC, Fundamental Advisors LP, and Life Care Companies LLC. Assuming the facility were sold at the original price, the disclosure statement told holders of $232.8 million in secured bonds that they should recover 15%. Current and former residents are being offered a modified program for repaying their deposits when they leave the facility. The disclosure statement says that the existing refund policy is above the market and inhibited sale of the project unless modified. About The Clare at Water Tower The Clare at Water Tower is an upscale 334-unit high-rise continuing-care retirement community in Chicago, Illinois. The project is only 42% occupied because the target population either hasn't been able to sell homes or lacks sufficient cash to make required deposits as the result declining investments following the recession. The facility is a 53-story building on land rented from Loyola University of Chicago. The facility is managed and developed by a unit of the Franciscan Sisters of Chicago, who invested more than $14 million. The project opened in December 2008. Residents must make partially refundable deposits ranging from $263,000 to $1.2 million. Monthly fees are an additional $2,700 to $5,500. The Clare filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 11-46151) on Nov. 14, 2011, after defaulting on $229 million in tax-exempt bond financing used to build the project. Judge Susan Pierson Sonderby presides over the case. Matthew M. Murphy, Esq., at DLA Piper LLP, serves as the Debtor's counsel. Houlihan Lokey Capital, Inc., as its investment banker and financial advisor. Deloitte Financial Advisory Services LLP serves as restructuring advisor. Epiq Bankruptcy Solutions serves as claims and noticing agent. The Debtor, in its amended schedules, disclosed $56,778,671 in assets and $321,747,63 in liabilities. The petition was signed by Judy Amiano, president. The Official Committee of Unsecured Creditors proposed to retain SNR Denton US LLP as counsel. The Committee also tapped FTI Consulting, Inc., as its financial advisor. CLINTONDALE COMMUNITY: Moody's Affirms 'Ba3' GOULT Debt Rating -------------------------------------------------------------- Moody's Investors Service has affirmed the Ba3 on Clintondale Community Schools' (MI) $3 million of outstanding Moody's rated general obligation unlimited tax debt. Concurrently, a negative outlook is assigned. Summary Rating Rationale The bonds are secured by the district's general obligation unlimited tax pledge. The Ba3 rating reflects the district's consecutive years of operating deficits with negative General Fund balances, limited revenue raising flexibility, stressed financial operations with unlikelihood of meeting deficit elimination targets, weak economy with declining taxable valuations and population, declining enrollment, and high debt burden. The assignment of the negative outlook is based on uncertainties regarding the fiscal 2013 budget and beyond that may significantly impact finances. Strengths - State's constitutional obligation to pay debt service of bonds qualified for the School Bond Qualification and Loan Program - Improved operations in fiscal 2011, despite falling below budgeted projections - Stabilization of automotive industry Challenges - Continued stressed operations; expenditures continue to outpace revenues - Inability to meet fiscal targets per Deficit Elimination Plan (DEP) - Reliance on cash flow borrowing for operations; extremely limited liquidity - Declining tax base and population which may lead to enrollment declines Outlook The assignment of the negative outlook is based on that negative variances may continue. In addition, the negative outlook reflects the uncertainty regarding the fiscal 2013 budget and events that may impact both the budget and district's ability to achieve deficit eliminations. WHAT COULD CHANGE THE RATING UP (or removal of the negative outlook): - Material operating surpluses that will carry forward to future budgets and reduce the district's deficit fund balance - Successful implementation and realization of updated Deficit Elimination Plan in timely manner - Stabilization of local economy and tax base WHAT COULD CHANGE THE RATING DOWN: - Continued operating shortfalls resulting from negative budget variances yielding larger deficits in the General Fund - Inability to reduce deficit position in the General Fund and/or reduce reliance on cash flow borrowing - Reductions in state aid and/or inability to implement a feasible DEP, resulting in continued declining revenues and increasing pressure on district operations - Further economic deterioration, and declining enrollment Principal Methodology The principal methodology used in this rating was General Obligation Bonds Issued by U.S. Local Governments published in October 2009. CINEMARK USA: S&P Raises Rating on Senior Secured Debt to 'BB+' --------------------------------------------------------------- Standard & Poor's Ratings Services revised its recovery rating on Cinemark USA Inc.'s senior secured debt to '1', indicating an expectation of very high (90% to 100%) recovery for lenders in the event of a payment default, from '2' (70% to 90% recovery expectation). "We raised the issue-level rating on this debt to 'BB+' (two notches higher than the 'BB-' corporate credit rating on holding company parent Cinemark Holdings Inc.) from 'BB', in accordance with our notching criteria for a '1' recovery rating," S&P said. "At the same time, we also revised our recovery rating on the company's 8.625% senior unsecured notes to '5', indicating our expectation of modest (10% to 30%) recovery for senior unsecured lenders in the event of a payment default, from '6' (0% to 10%). We raised the issue-level rating on this debt to 'B+' (one notch lower than the 'BB-' corporate credit rating) from 'B', in accordance with our notching criteria for a '5' recovery rating," S&P said. "The recovery rating revisions reflect a change to our estimated EBITDA at default and emergence valuation under our simulated default scenario," explained Standard & Poor's credit analyst Jeanne Shoesmith. "Although our assumed distressed EBITDA multiple is unchanged at 5.5x, the change to our default EBITDA assumption resulted in a higher gross emergence enterprise value than in our previous analysis." "All other issue-level ratings on Plano, Texas-based Cinemark's debt were affirmed, as was our 'BB-' corporate credit rating on the company. The rating outlook is stable," S&P said. "The 'BB-' corporate credit rating reflects our expectation that leverage and capital spending will remain relatively high, but that Cinemark will continue to be among the most profitable theater chains. We consider the company's business risk profile to be 'fair' (based on our criteria) because of the company's consistent operating performance despite the inherent unpredictably of the movie business. Relatively high leverage and aggressive capital spending plans underpin our view that Cinemark's financial risk profile is 'aggressive.' Although we expect that Cinemark will continue to outperform its U.S. peers and maintain industry-leading EBITDA margins, it operates in the movie exhibition industry, which we consider both mature and driven by the success of hit films. We believe these dynamics will result in the company achieving low-single-digit percentage revenue growth, on average, over the long term, with mid-single- digit EBITDA growth and flat to slightly lower leverage," S&P said. "Cinemark is the third-largest movie exhibitor in the U.S., by revenue, with a significant presence in Latin America that is supporting growth. Our assessment of Cinemark's business risk profile as 'fair' stems from the industry's exposure to the fluctuating popularity of Hollywood films and proliferating entertainment alternatives. Additional risks include a shortening interval between theatrical and lower-priced video-on-demand (VOD) or DVD release, and consumer resistance to higher 3-D ticket prices that we expect will pressure theater attendance over the long term. Cinemark has a high-quality circuit, having resisted building oversized theaters, which have excess capacity during shoulder seasons of lower release activity. Moreover, Cinemark has not acquired underperforming properties to the extent that its more acquisition-oriented competitors have. As a result, its EBITDA margin compares favorably to peers'," S&P said. "Under our base-case scenario for 2012, we expect revenue and EBITDA to grow at a mid-single-digit rate, with most of the growth driven by increased international attendance, low-single-digit growth in ticket prices, and strong domestic box-office performance in the first quarter of the year. We expect international attendance to grow at a high-single-digit rate in 2012, resulting from increased utilization and theater expansion. We envision flat to minimally higher concession prices, and we assume stable concession sales per patron volume. We expect the EBITDA margin to remain relatively stable, and continue to outperform peers', despite moderate increases in concession costs. We see ongoing risk to attendance from studios releasing films to premium VOD platforms within the traditional theatrical release period," S&P said. COMMUNICATION INTELLIGENCE: Closes $1 Million Bridge Financing -------------------------------------------------------------- Communication Intelligence Corporation had closed a new round of funding with a number of existing, as well as new, investors to provide working capital. The financing totaled $1 million in gross proceeds from the issuance of unsecured promissory notes and warrants to purchase five million shares of common stock at a price of $0.05 per share. The transaction closed on April 23, 2012, and is in addition to the $1 million in notes and warrants raised by the Company in September and December 2011. The notes will automatically convert into CIC's next round of equity financing. "This additional round of financing reflects our investors' ongoing support of CIC and represents a continued vote of confidence in the steady progress shown by the Company since the management transition in late 2010," stated Philip Sassower, CIC's Chairman and Chief Executive Officer. "We are also pleased to welcome a number of new investors in our effort to expand the Company's shareholder base. In an attempt to prevent excessive dilution and to optimize the timing of our next round of equity funding, we decided to delay a next equity round and plan to issue a new class of preferred in conjunction with the Company's annual shareholder meeting." "These funds enable CIC to continue on its path of high-leverage technology investments in support of SaaS revenue streams," stated William Keiper, CIC's President and Chief Operating Officer. "We will continue to develop and deliver the high security, enterprise-level electronic signature solutions required by major insurance carriers and financial institutions. We have made solid gains over the past year and anticipate more progress in the remainder of 2012." About Communication Intelligence Redwood Shores, California-based Communication Intelligence Corporation is a supplier of electronic signature products and the recognized leader in biometric signature verification. For 2011, PMB Helin Donovan, LLP, in San Francisco, Calif., expressed substantial doubt about Communication Intelligence's ability to continue as a going concern. The independent auditors noted that of the Company's significant recurring losses and accumulated deficit. The Company reported a net loss of $4.50 million for 2011, compared with a net loss of $4.16 million for 2010. The Company's balance sheet at Dec. 31, 2011, showed $2.79 million in total assets, $3.15 million in total liabilities, and a stockholders' deficit of $357,000. COMMUNICATIONS CORP: Moody's Assigns 'B3' CFR; Outlook Stable ------------------------------------------------------------- Moody's Investors Service assigned a B3 Corporate Family Rating ("CFR") and a B3 Probability of Default Rating ("PDR") to Communications Corporation of America ("CCA"). Moody's also assigned B2, LGD3 - 38% ratings each to the company's proposed $5 million 1st Lien Senior Secured Revolver and $157.5 million 1st Lien Senior Secured Term Loan. Proceeds from the new term loan along with a proposed $35 million 2nd Lien term loan (unrated) will be used primarily to refinance existing unrated debt. The rating outlook is stable. Assignments: Issuer: Communications Corporation of America Corporate Family Rating: Assigned B3 Probability of Default Rating: Assigned B3 New $5 million 1st Lien Senior Secured Revolver: Assigned B2, LGD3 -- 38% New $157.5 million 1st Lien Senior Secured Term Loan: Assigned B2, LGD3 -- 38% Outlook Actions: Issuer: Communications Corporation of America Outlook is Stable Ratings Rationale The B3 corporate family rating reflects CCA's very high pro forma, 2-year average debt-to-EBITDA leverage of approximately 6.8x at the end of 12 months from closing (including Moody's standard adjustments, or 6.5x net of cash), increasing fragmentation of media outlets, the cyclical and mature nature of television advertising demand, concentration of network affiliations with Fox, as well as the company's lack of national scale and revenue concentration in Louisiana and Texas (more than 90% of revenues). Since emerging from bankruptcy, new management established centralized program distribution and rationalized operating costs to bring EBITDA margins above 37% in 2010 and 2011 compared to EBITDA margins of less than 30% in prior years. The B3 rating reflects free cash flow-to-total debt ratios of 5% or more and incorporates the accrual of PIK interest (LIBOR + 15%) on $35 million of unrated 2nd lien debt as well as margin erosion reflecting expected increases in reverse compensation payments. The average $6.3 million of accrued interest in each of the first two years offsets expected term loan repayments resulting in only a modest decrease in debt balances. Absent the ability to PIK interest payments, free cash flow-to-total debt would be reduced to roughly 2%. The company is weakly positioned in the B3 rating category as the absence of #1 or #2 revenue rankings for the stations (nine of ten stations are ranked #3 or below) puts downward pressure on ratings. Ratings are supported by good EBITDA margins, a moderate increase in non-cyclical cash flow benefits in the near term from retransmission agreements (net of reverse compensation payments), and, to a lesser extent, incremental political revenues in the second half of 2012. Core revenues and EBITDA are expected to grow in the low to mid-single digit range over the rating horizon. Beyond the rating horizon, Moody's believes CCA will be pressured to grow ad revenues or negotiate higher retransmission fees to offset expected increases in reverse compensation payments. Accordingly, Moody's believes it is important that free cash flow be used to reduce debt balances to maintain debt ratings and improve credit metrics. Liquidity is expected to be adequate. The stable outlook assumes successful refinancing of current credit facilities and reflects Moody's view that revenue and EBITDA from Louisiana and Texas will remain in line with expectations. The outlook also incorporates Moody's expectation that free cash flow-to-debt ratios will remain at 5% or more and that 2-year average debt-to-EBITDA ratios will improve from current levels with increasing retransmission revenues offsetting expected increases in reverse compensation payments over the next 12-18 months. Ratings could be downgraded if 2-year average debt-to-EBITDA ratios are sustained above 7.0x after 2012 due to performance deterioration in one of CCA's key markets or due to PIK accretion on the 2nd lien notes, debt financed acquisitions, or shareholder distributions. Deterioration in liquidity could also result in a downgrade. Ratings could be upgraded if 2-year average debt-to- EBITDA ratios are sustained below 5.75x and Moody's expects that leverage will continue to decline, despite the potential for accruing interest expense, with free cash flow-to-debt ratios remaining above 7%. Liquidity would also need to remain adequate. The principal methodology used in rating Communications Corporation of America was the Global Broadcast Industry Methodology published in June 2008. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Communications Corporation of America is a television broadcaster owning or operating television stations (owns 10 primary signals and operates another 6 primary stations under SSA arrangements), in small and medium-sized markets ranked #83 to #179 largely clustered in Louisiana and Texas, plus one station in Indiana. Approximately 48% revenues are generated by Fox affiliated stations and 38% by NBC affiliates with the remainder from CBS and non-Big Four networks. CCA filed chapter 11 in June 2006 and emerged in October 2007 resulting in the restructuring of roughly $425 million of debt. Former debt holders became shareholders including Silver Point Capital which owns 76% of outstanding shares and with various funds of Pyxis Capital (fka Highland Funds) holding 23% of shares. Headquartered in Lafayette, Louisiana, CCA reported net revenues of approximately $75 million for the 12 months ended December 2011. COMMUNICATIONS CORP: S&P Assigns 'B' Prelim Corp. Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services assigned Lafayette, La.-based TV broadcaster, Communications Corporation of America its preliminary 'B' corporate credit rating. The rating outlook is stable. "At the same time, we assigned the company's proposed first-lien credit facilities a preliminary issue-level rating of 'B' (at the same level as the preliminary 'B' corporate credit rating) with a recovery rating of '4', indicating our expectation of average (30% to 50%) recovery for lenders in the event of a payment default. We expect the first-lien credit facilities to consist of a $5 million revolving credit facility due 2017 and a $157.5 million senior secured term loan B due 2019," S&P said. "The company is also planning to issue $35 million of second-lien debt that will be held by its sponsor, Silver Point Capital (which we will not rate), along with $7.5 million in common equity. The company plans to use the proceeds of the financing to repay its existing debt, accrued interest, and transaction fees and expenses," S&P said. "The preliminary 'B' corporate credit rating reflects our expectation that, despite high leverage, CCA will be able to maintain adequate liquidity over the intermediate term. We view the company's business risk profile as 'weak', given its high geographic and network affiliate concentration, its generally lower audience rankings within its served markets compared to peers, and the potential for advertising cyclicality. We view CCA's financial risk profile as 'highly leveraged,' based on its high pro forma debt-to-EBITDA ratio of 8.0x (adjusted for operating leases and including one time charges)," S&P said. "CCA owns or operates 25 local TV stations (including eight digital sub-channels), primarily located in Louisiana and Texas, leaving the company vulnerable to any volatility in the local Gulf Coast economies. The significant majority of its revenue comes from its Fox and NBC network affiliates and, as a result, the company is susceptible to any declines in the two networks' audience ratings. The company's TV stations are generally ranked No. 3 or No. 4 in their markets in terms of audience ratings from sign-on to sign-off. Nevertheless, the company's newscasts are generally lower rated, which contributes to a lower share of political advertising in its markets. Despite these factors, the company's EBITDA margin (was 32% in 2011, which compares favorably with larger-market peers. We believe this is due to the company's cost-management efforts over the past few years, focused on reducing news costs, production expenses, and programming fees. The company now produces news in-house in three centralized locations, which support multiple adjacent markets to reduce news production costs," S&P said. "Under our base-case scenario, we expect revenue to increase at a low to mid-teens percentage rate in 2012, led by low-single-digit core ad revenue growth, modest political advertising, and a meaningful boost in retransmission consent revenue due to carriage renewals completed in 2011. Over time, we expect the contribution margin from retransmission consent revenue to decline as network affiliate agreements come up for renewal, and broadcast networks seek reverse compensation. Based on our revenue assumptions and only modest growth in operating costs, we expect EBITDA to increase at a high-teens to low-20% rate in 2012 as the EBITDA margin increases slightly," S&P said. COMMUNITY FIRST: Has Written Agreement with FRB Atlanta ------------------------------------------------------- The Federal Reserve Bank of Atlanta and Community First, Inc., entered into a Written Agreement pursuant to which, among other things, the Company has agreed that: (i) its board of directors will take appropriate steps to fully utilize the Company's financial and managerial resources to serve as a source of strength to Community First Bank & Trust, a wholly-owned subsidiary of the Company, including, but not limited to, taking steps to ensure that the Bank complies with the Consent Order entered into with the Federal Deposit Insurance Corporation on Sept. 20, 2011, and any other supervisory action taken by the Bank's federal or state regulator; (ii) the Company will not declare or pay any dividends without the prior written approval of the FRB and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System; (iii) the Company will not directly or indirectly take dividends or any other form of payment representing a reduction in capital from the Bank without the prior written approval of the FRB; (iv) the Company and its nonbank subsidiaries will not make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without the prior written approval of the FRB and the Director; (v) the Company and its nonbank subsidiaries will not, directly or indirectly, incur, increase, or guarantee any debt without the prior written approval of the FRB; (vi) the Company will not, directly or indirectly, purchase or redeem any shares of its stock without the prior written approval of the FRB; (vii) within 60 days of the Agreement, the Company will submit to the FRB an acceptable written plan to maintain sufficient capital at the Company on a consolidated basis; and (viii) within 60 days of the Agreement, the Company will submit to the FRB a written statement of its planned sources and uses of cash for debt service, operating expenses and other purposes for 2012 and again one month prior to each calendar year subsequent to 2012. The Company is also required to comply with certain notice and approval requirements in connection with director and senior executive officer appointments and is subject to certain restrictions on indemnification and severance payments. In addition, the Company must submit quarterly progress reports to the FRB. A copy of the Agreement is available for free at: http://is.gd/SMBjPq About Community First Columbia, Tennessee-based Community First, Inc., is a registered bank holding company under the Bank Holding Company Act of 1956, as amended, and became so upon the acquisition of all the voting shares of Community First Bank & Trust on Aug. 30, 2002. An application for the bank holding company was approved by the Federal Reserve Bank of Atlanta (the "FRB") on Aug. 6, 2002. The Company was incorporated under the laws of the State of Tennessee as a Tennessee corporation on April 9, 2002. After auditing the Company's 2011 results, Crowe Horwath LLP, in Brentwood, Tennessee, expressed substantial doubt about Community First's ability to continue as a going concern. The independent auditors noted that the Company's bank subsidiary, Community First Bank & Trust, is not in compliance with a regulatory enforcement action issued by its primary federal regulator requiring, among other things, a minimum Tier 1 Leverage capital ratio at the Bank of not less than 8.5%, a minimum Tier 1 capital to risk-weighted assets ratio of not less than 10.0% and a minimum Total capital to risk-weighted assets ratio of not less than 12.0%. "The Bank's Tier 1 Leverage capital ratio was 4.92%, its Tier 1 capital to risk-weighted assets ratio was 7.22% and its Total-capital to risk weighted assets ratio was 8.51% at Dec. 31, 2011. Continued failure to comply with the regulatory enforcement action may result in additional adverse regulatory action." The Company reported a net loss of $15.0 million on $19.6 million of net interest income (before provision for loan losses) in 2011, compared with a net loss of $18.2 million on $21.0 million of net interest income (before provision for loan losses) in 2010. Total non-interest income was $3.4 million for 2011, compared with $4.7 million for 2010. The Company's balance sheet at Dec. 31, 2011, showed $616.8 million in total assets, $607.2 million in total liabilities, and stockholders' equity of $9.6 million. CONTRACT RESEARCH: Alston & Bird OK'd to Give Commercial Advice --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Contract Research Solutions, Inc., et al., to employ Alston & Bird LLP as special counsel to provide general commercial and regulatory advice that will be required during the Chapter 11 cases. As reported in the Troubled Company Reporter on April 17, 2012, Alston & Bird has been representing the Debtors and serving as outside general counsel since March 2010. Alston & Bird is not owed any fees or expenses with respect to prepetition services. Before the Petition Date, Alston & Bird received a replenishing retainer. As of the Petition Date, Alston & Bird has a remaining credit balance of $10,555 in favor of the Debtors for services and expenses to be incurred. To the best of the Debtors' knowledge, the firm does not represent or hold any interest adverse to the Debtors or its estates. About Cetero Contract Research Solutions Inc., doing business as Cetero, a provider of early-phase clinical research services for pharmaceutical and biotechnology firms, filed a Chapter 11 petition (Bankr. D. Del. Case No. 12-11004) on March 26, 2012. Cetero's 19 affiliates also sought bankruptcy protection (Bankr. D. Del. Case Nos. 12-11005 to 12-11023). Cetero plans to sell the business, including their rights to pursue avoidance actions, to first-lien secured lenders in exchange for $50 million in debt, absent higher and better offers. Cetero has filed a motion seeking approval of procedures that will govern the bidding and auction. The first-lien lenders have formed entities that will acquire the business -- CSRI Holdings LLC, as U.S. Purchaser, and 0935867 B.C. Ltd and 0935870 B.C. Ltd, as Canadian Purchasers. Together, they will serve as stalking horse bidders and have offered to exchange $50 million in secured debt and assume $30 million in liabilities to buy the assets. First lien lenders are also providing a $15 million loan to finance the Chapter 11 effort. The procedures require that the bidding protocol be approved by April 12 and an auction be held between April 30 and May 5. Competing bids are due three days prior to the auction date. The hearing for approval of the sale must take place prior to May 10. Assets are $205 million, with debt total $248 million. There is $185 million in debt for borrowed money, including $116 million on a first-lien term loan and revolving credit. The second-lien loan is $25 million. Second-lien lenders have agreed to the sale. Freeport Financial LLC serves as the sole lead arranger and bookrunner, and as U.S. administrative agent and collateral agent under the first lien facility. Bank of Montreal serves as the Canadian agent. Freeport is also the agent under the second lien facility. Judge Kevin Gross oversees the case. Lawyers at Young Conaway Stargatt & Taylor, LLP, and Paul Hastings LLP serve as the Debtors' counsel. Stikeman Elliott LLP serves as Canadian counsel. Carl Marks Advisory Group LLC serves as restructuring advisor. Epiq Bankruptcy Solutions serves as claims and notice agent. The petitions were signed by Michael T. Murren, CFO. The first lien lenders and the stalking horse buyers are represented by Peter Knight, Esq., at Latham & Watkings, LLP; and Wael Rostom, Esq., at McMillan LLP. Roberta A. Deangelis, U.S. Trustee for Region 3 appointed three persons to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Contract Research Solutions, Inc., et al. CONTRACT RESEARCH: Carl Marks Approved as Restructuring Advisors ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Contract Research Solutions, Inc., and its debtor-affiliates seek to employ Carl Marks Advisory Group LLC as restructuring advisors. As reported in the Troubled Company Reporter on April 10, 2012, the Debtors will pay CMAG a fixed fee of $145,000 per full month. CMAG will also be paid $600 per hour for services to be provided by certain additional personnel, up to a maximum of 40 hours over the entire engagement, but only as requested by Cetero in a separate writing. Before the petition date, CMAG received $50,000 as retainer. Cetero also has agreed to indemnify the firm. To the best of the Debtors' knowledge, CMAG is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Cetero Contract Research Solutions Inc., doing business as Cetero, a provider of early-phase clinical research services for pharmaceutical and biotechnology firms, filed a Chapter 11 petition (Bankr. D. Del. Case No. 12-11004) on March 26, 2012. Cetero's 19 affiliates also sought bankruptcy protection (Bankr. D. Del. Case Nos. 12-11005 to 12-11023). Cetero plans to sell the business, including their rights to pursue avoidance actions, to first-lien secured lenders in exchange for $50 million in debt, absent higher and better offers. Cetero has filed a motion seeking approval of procedures that will govern the bidding and auction. The first-lien lenders have formed entities that will acquire the business -- CSRI Holdings LLC, as U.S. Purchaser, and 0935867 B.C. Ltd and 0935870 B.C. Ltd, as Canadian Purchasers. Together, they will serve as stalking horse bidders and have offered to exchange $50 million in secured debt and assume $30 million in liabilities to buy the assets. First lien lenders are also providing a $15 million loan to finance the Chapter 11 effort. The procedures require that the bidding protocol be approved by April 12 and an auction be held between April 30 and May 5. Competing bids are due three days prior to the auction date. The hearing for approval of the sale must take place prior to May 10. Assets are $205 million, with debt total $248 million. There is $185 million in debt for borrowed money, including $116 million on a first-lien term loan and revolving credit. The second-lien loan is $25 million. Second-lien lenders have agreed to the sale. Freeport Financial LLC serves as the sole lead arranger and bookrunner, and as U.S. administrative agent and collateral agent under the first lien facility. Bank of Montreal serves as the Canadian agent. Freeport is also the agent under the second lien facility. Judge Kevin Gross oversees the case. Lawyers at Young Conaway Stargatt & Taylor, LLP, and Paul Hastings LLP serve as the Debtors' counsel. Stikeman Elliott LLP serves as Canadian counsel. Carl Marks Advisory Group LLC serves as restructuring advisor. Epiq Bankruptcy Solutions serves as claims and notice agent. The petitions were signed by Michael T. Murren, CFO. The first lien lenders and the stalking horse buyers are represented by Peter Knight, Esq., at Latham & Watkings, LLP; and Wael Rostom, Esq., at McMillan LLP. Roberta A. Deangelis, U.S. Trustee for Region 3 appointed three persons to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Contract Research Solutions, Inc., et al. CONTRACT RESEARCH: Can Hire Stikeman Elliot as Canadian Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Contract Research Solutions, Inc., et al., to employ Stikeman Elliot LLP as Canadian counsel. As reported in the Troubled Company Reporter on April 5, 2012, the Court issued an order authorizing Contract Research to act as foreign representative of Cetero in any judicial or other proceeding in a foreign country, including in Canada. CRS is also authorized and has been given the power to act in any way permitted by the Companies' Creditors Arrangement Act in Canada or other applicable foreign law, including seeking recognition by the Ontario Superior Court of Justice (Commercial List) of the Chapter 11 cases and certain orders by the U.S. Bankruptcy Court. The Court order also indicated that the Court requested the aid and assistance of the Ontario Court to recognize the Chapter 11 case as a "foreign main proceeding" and CRS as "foreign representative" pursuant to the CCAA. Stikeman has represented Cetero as outside general counsel in Canada since 2006, and acted in the context of CRS's acquisition of Allied Research International, which deal closed in March 2007. Guy P. Martel, Esq., a member at Stikeman, attests that his firm does not hold any adverse interest to the estate, and is a disinterested person within the meaning of 11 U.S.C. Sec. 101(14). Stikeman will charge Cetero for its services on an hourly basis at these rates: C$475 to C$1,000 for partners and counsel; C$275 to C$700 for associates; C$150 to C$390 for paraprofessionals. The professionals expected to work on the Debtor's case and their hourly rates are: John Leopold, Esq. Partner - Corporate C$975 and Commercial Sophie Lamonde, Esq. Partner - Corporate C$625 and Commercial Guy P. Martel, Esq. Partner - Insolvency C$625 and Restructuring Danny Duy Vu, Esq. Associate - Insolvency C$410 and Restructuring Kathryn Esaw, Esq. Associate - Insolvency C$410 and Restructuring Mr. Martel disclosed that Stikeman received C$529,335 from Cetero during the one year period prior to the bankruptcy filing. Stikeman also received an advanced payment to cover anticipated fees for the period through the petition date for all professional services performed and expenses incurred. About Cetero Contract Research Solutions Inc., doing business as Cetero, a provider of early-phase clinical research services for pharmaceutical and biotechnology firms, filed a Chapter 11 petition (Bankr. D. Del. Case No. 12-11004) on March 26, 2012. Cetero's 19 affiliates also sought bankruptcy protection (Bankr. D. Del. Case Nos. 12-11005 to 12-11023). Cetero plans to sell the business, including their rights to pursue avoidance actions, to first-lien secured lenders in exchange for $50 million in debt, absent higher and better offers. Cetero has filed a motion seeking approval of procedures that will govern the bidding and auction. The first-lien lenders have formed entities that will acquire the business -- CSRI Holdings LLC, as U.S. Purchaser, and 0935867 B.C. Ltd and 0935870 B.C. Ltd, as Canadian Purchasers. Together, they will serve as stalking horse bidders and have offered to exchange $50 million in secured debt and assume $30 million in liabilities to buy the assets. First lien lenders are also providing a $15 million loan to finance the Chapter 11 effort. The procedures require that the bidding protocol be approved by April 12 and an auction be held between April 30 and May 5. Competing bids are due three days prior to the auction date. The hearing for approval of the sale must take place prior to May 10. Assets are $205 million, with debt total $248 million. There is $185 million in debt for borrowed money, including $116 million on a first-lien term loan and revolving credit. The second-lien loan is $25 million. Second-lien lenders have agreed to the sale. Freeport Financial LLC serves as the sole lead arranger and bookrunner, and as U.S. administrative agent and collateral agent under the first lien facility. Bank of Montreal serves as the Canadian agent. Freeport is also the agent under the second lien facility. Judge Kevin Gross oversees the case. Lawyers at Young Conaway Stargatt & Taylor, LLP, and Paul Hastings LLP serve as the Debtors' counsel. Stikeman Elliott LLP serves as Canadian counsel. Carl Marks Advisory Group LLC serves as restructuring advisor. Epiq Bankruptcy Solutions serves as claims and notice agent. The petitions were signed by Michael T. Murren, CFO. The first lien lenders and the stalking horse buyers are represented by Peter Knight, Esq., at Latham & Watkings, LLP; and Wael Rostom, Esq., at McMillan LLP. Roberta A. Deangelis, U.S. Trustee for Region 3 appointed three persons to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Contract Research Solutions, Inc., et al. CONTRACT RESEARCH: Hearing on Further Cash Access Today ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware previously approved a stipulation extending time periods relating to interim order authorizing Contract Research Solutions, Inc., et al., to (i) obtain postpetition secured financing, and (ii) access the cash collateral of the prepetition secured parties. The stipulation provides for, among other things: 1. the interim period set forth in the interim order will be modified to (i) the entry of a final order, and (ii) May 2, 2012; and 2. the final hearing will be modified to May 1, at 3:00 p.m., or such later date as scheduled by the Court without any further notice or order. A full-text copy of the stipulation is available for free at http://bankrupt.com/misc/ContractResearch_DIPStipulationB.pdf As reported in the Troubled Company Reporter on March 30, 2012, the Debtors won an interim order authorizing them to obtain postpetition secured financing and utilize cash collateral securing their obligations to the prepetition lenders. The DIP lenders have committed to provide up to $15 million under a senior secured, super-priority, non-amortizing revolving credit facility. Freeport Financial LLC serves as the sole lead arranger and bookrunner, and as administrative agent and collateral agent. Under the Interim DIP Order, the Debtors may use up to $2.4 million of the DIP funds. Freeport is the agent under the Debtors' prepetition first lien and second lien credit facilities. As of the petition date, the Debtors owed $115.8 million under the first lien facility, comprised of $5 million in principal amount of US revolving loans; $75 million in principal amount of US term loans; and $35.8 million in principal amount of Canadian term loans. Freeport serves as the US agent under that facility while Bank of Montreal, serves as the Canadian agent. As of the petition date, the Debtors owed $25 million under the second lien facility. The DIP facility also provides for the roll up of $15 million of US Term Loan B. The Debtors have prepared a rolling 14-week cash flow budget. The DIP facility and the cash collateral use will expire on the earliest of June 29; the closing of the sale of substantially all of the Debtors' assets; or the filing of a chapter 11 plan that is not consented by the DIP lenders. The DIP agreement permits the secured lenders to credit bid. Committee's Objection The Official Committee of Unsecured Creditors in the Chapter 11 cases of the Debtors, has asked that the Court deny the Debtors' request stating that the approval will dictate only one path in these cases -- the handing over of control in these cases to the Debtors' Prepetition Secured Lenders, who are also the DIP Lenders well as the stalking horse purchaser, to the detriment of all other creditor constituencies -- or more precisely stated, the Prepetition Secured Lenders using the Chapter 11 process to foreclose on their purported collateral without paying all of the freight of the Chapter 11 process by taxing other creditor constituencies. According to the Committee, the Debtors do not need to borrow $30 million in order to fund the operations postpetition, particularly given the expedited sale timeframe approved for a sale of the entire company -- bids are due in less than a month (or by May 11, 2012) and the sale approval hearing is set for May 17, 2012. Half of the proposed $30 million DIP Facility, or $15 million, will be used to pay-down the Prepetition First Lien Indebtedness as a "roll up". An additional $2.2 million is allocated to the payment of the DIP Lenders' fees/interest and professionals. The Committee asserted that, among other things: -- the DIP facility is nothing more than a mechanism for the professionals and insiders to line their pockets; -- the Court must not authorize the Debtors to grant a lien on avoidance actions or other unencumbered collateral; -- the prepetition secured parties are not entitled to adequate protection the proposed rolling up of $15 million of prepetition debt under the DIP facility is unjustified and unreasonable; and -- the secured lenders must not be permitted to credit bid. About Cetero Contract Research Solutions Inc., doing business as Cetero, a provider of early-phase clinical research services for pharmaceutical and biotechnology firms, filed a Chapter 11 petition (Bankr. D. Del. Case No. 12-11004) on March 26, 2012. Cetero's 19 affiliates also sought bankruptcy protection (Bankr. D. Del. Case Nos. 12-11005 to 12-11023). Cetero plans to sell the business, including their rights to pursue avoidance actions, to first-lien secured lenders in exchange for $50 million in debt, absent higher and better offers. Cetero has filed a motion seeking approval of procedures that will govern the bidding and auction. The first-lien lenders have formed entities that will acquire the business -- CSRI Holdings LLC, as U.S. Purchaser, and 0935867 B.C. Ltd and 0935870 B.C. Ltd, as Canadian Purchasers. Together, they will serve as stalking horse bidders and have offered to exchange $50 million in secured debt and assume $30 million in liabilities to buy the assets. First lien lenders are also providing a $15 million loan to finance the Chapter 11 effort. The procedures require that the bidding protocol be approved by April 12 and an auction be held between April 30 and May 5. Competing bids are due three days prior to the auction date. The hearing for approval of the sale must take place prior to May 10. Assets are $205 million, with debt total $248 million. There is $185 million in debt for borrowed money, including $116 million on a first-lien term loan and revolving credit. The second-lien loan is $25 million. Second-lien lenders have agreed to the sale. Freeport Financial LLC serves as the sole lead arranger and bookrunner, and as U.S. administrative agent and collateral agent under the first lien facility. Bank of Montreal serves as the Canadian agent. Freeport is also the agent under the second lien facility. Judge Kevin Gross oversees the case. Lawyers at Young Conaway Stargatt & Taylor, LLP, and Paul Hastings LLP serve as the Debtors' counsel. Stikeman Elliott LLP serves as Canadian counsel. Carl Marks Advisory Group LLC serves as restructuring advisor. Epiq Bankruptcy Solutions serves as claims and notice agent. The petitions were signed by Michael T. Murren, CFO. The first lien lenders and the stalking horse buyers are represented by Peter Knight, Esq., at Latham & Watkings, LLP; and Wael Rostom, Esq., at McMillan LLP. Roberta A. Deangelis, U.S. Trustee for Region 3 appointed three persons to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Contract Research Solutions, Inc., et al. CRYOPORT INC: Amends Form S-1 for 55.7-Mil. Shares Offering ----------------------------------------------------------- Cryoport, Inc., filed with the U.S. Securities and Exchange Commission amendment no. 1 to the Form S-1 relating to the offering by certain existing holders of up to 55,705,100 shares of the Company's common stock, par value $0.001 per share, including 31,418,823 shares of the Company's common stock issuable upon exercise of the warrants held by those selling security holders. This prospectus also relates to the issuance of 1,666,667 shares of common stock upon exercise of certain publicly traded warrants, that were issued as part of a public offering of units and the resale of those shares of common stock. The Company's common stock and Traded Warrants are currently traded on the OTCQB, operated by the OTC Markets Group, Inc., under the symbols "CYRX" and "CYPTW. As of April 16, 2012, the closing sale price of our common stock and Traded Warrants were $0.52 per share and $0.15 per Traded Warrant, respectively. A copy of the amended prospectus is available for free at: http://is.gd/LBwal4 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 $378,700 of net revenues for the nine months ended Dec. 31, 2011, compared with a net loss of $4.29 million on $375,400 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 $620,900 in total stockholders' equity. DAVID ANDERSON: Must File Motion to Estimate Claims by May 14 ------------------------------------------------------------- Victoria Place LLC and James Lessley seek relief from the automatic stay in the Chapter 11 case of David M. Anderson. Relief would allow them to resume proceedings in state court against Mr. Anderson and other defendants on multiple claims ranging from breach of contract to misrepresentation to fraud. In opposition to the motion for relief, Mr. Anderson argues he is trying to move the case along quickly, has filed a draft proposed plan and disclosure statement, and proposes to seek estimation of the claims of Mr. Lessley and Victoria Place to speed the process along. As of the most recent hearing on the relief from stay motion, the debtor had not filed a motion to estimate. However, the debtor invoked his intent to do so in opposition to the stay relief motion. That gives rise to the question of whether the claims of Mr. Lessley and Victoria Place are amenable to estimation under 11 U.S.C. Sec. 502(c). To be amenable, they must be either contingent or unliquidated. To decide the relief from stay motion, Chief Judge Peter W. Bowie said the Court needs to resolve whether estimation is available to the debtor and whether it will advance confirmation of a plan of reorganization. Accordingly, Mr. Anderson will file and serve a motion to allow estimation -- focused on the issues of contingency and liquidation, not amount -- on or before May 14, 2012. Mr. Lessley and Victoria Place will file and serve any opposition to the motion they may have on or before May 29. The Debtor may file and serve a reply on or before June 5. Hearing on the motion to allow estimation will be held on June 18 at 11 a.m., before the Court. In the meantime, the automatic stay will remain in full force and effect pending further Court order. A copy of the Court's April 23, 2012 Order is available at http://is.gd/vNufrEfrom Leagle.com. David M. Anderson filed for Chapter 11 bankruptcy (Bankr. S.D. Calif. Case No. 12-00026) on Jan. 3, 2012. DELPHI CORP: Ex-Employee Seeks Extension of Disability Benefits --------------------------------------------------------------- James B. Sumpter relates that DPH Holdings Corp., formerly Delphi Corp., sent certified letters to disabled retirees and disabled employees to inform them that the Company is discontinuing its Extended Disability Program and Supplemental Disability Program. The letter also sought to induce the disabled beneficiary to accept a lump sum payment that is approximately 50% of what is due each disabled beneficiary through the end of their disability eligibility, which in most cases continues to the end of the month the beneficiary turns age 66. Mr. Sumpter alleges that the benefit termination letter and the lump sum offer were crafted in such way so as to lead the Disabled Benefits to believe that there is no option but to take the lump sum. He asserts that accepting the terms of the termination letters will reduce disability payments to beneficiaries to about 50% of what they are entitled. For many beneficiaries, the lump sum payment will cause an additional loss because of the change in tax bracket and the increased income tax liability, he points out. The lump sum payment will also cause Disabled Beneficiaries, who also receive Medicare to have substantial premium increases for 2013, he asserts. For those reasons, Delphi has failed to meet its fiduciary responsibility to disabled beneficiaries, he insists. Accordingly, Mr. Sumpter asks the Court to affirm that: (a) the Disability Benefits for current beneficiaries are vested and, as a result, they are exempt from Article III - Section 8.1(a) of the Modified First Amended Joint Plan of Reorganization; and (b) DPH Holdings' obligation to pay the Vested Disability Benefits can not be terminated by DPH. Mr. Sumpter subsequently asks the Court to enter a preliminary injunction that orders DPH Holdings to suspend any action related to the termination of the Extended Disability Program and Supplemental Disability Program for currently disabled Salaried Employees and Salaried Retirees. Absent the preliminary injunction, all monthly disability payment to beneficiaries will cease and disabled beneficiaries will lose all disability benefits if they reject the lump sum offer or be forced to involuntarily sign a contract to receive the lump-sum payment at the expense of 50% of their benefit, Mr. Sumpter stresses. Mr. Sumpter further asks the Court to move back the deadline to object to the Vesting Motion to May 3, 2012; and the deadline to reply to the objections to May 10. The hearing on the Vesting Motion will still be on May 24. Mr. Sumpter says he will undergo a knee replacement surgery and will not be able to read the Reorganized Debtors' response, which is currently due May 17. Moreover, Mr. Sumpter responded to Cynthia Haffey, Esq., at Butzel Long, in New York, counsel to the Reorganized Debtors' April 17, 2012 e-mail to the Court. He asserts that Ms. Haffey has abandoned all efforts regarding the schedule of the Vesting Motion and has chosen to accuse him of "abusing DPH and the Court." He explains that he did not pursue the calendar issue or the injunction issue without giving thought to Court procedure. He thus asks the Court to deny Ms. Haffey's request for a sua sponte dismissal. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation -- http://www.delphi.com/-- was a global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. Delphi operates major technical centers, manufacturing sites and customer support facilities in 30 countries. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 05-44481) on Oct. 8, 2005. John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represented the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court confirmed Delphi's plan on Jan. 25, 2008. The Plan was not consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. At the end of July 2009, Delphi obtained confirmation of a revised plan, build upon a sale of the assets to a entity formed by some of the lenders who provided $4 billion of debtor-in-possession financing, and General Motors Company. On Oct. 6, 2009, Delphi Corp.'s Chapter 11 plan of reorganization became effective. A Master Disposition Agreement executed among Delphi Corporation, Motors Liquidation Company, General Motors Company, GM Components Holdings LLC, and DIP Holdco 3, LLC, divides Delphi's business among three separate parties -- DPH Holdings LLC, GM Components, and DIP Holdco 3. Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings is responsible for the post-Effective Date administration and eventual closing of the Chapter 11 cases as well as the disposition of certain retained assets and payment of certain retained liabilities as provided under the Modified Plan. Delphi Automotive PLC is UK-based company formed in May 2011 as a holding company for US-based automotive parts manufacturer Delphi Automotive LLP. Delphi Automotive LLP is the successor to the former Delphi Corporation. At the time of its formation, Delphi Automotive PLC filed an initial public offering seeking to raise at least $100 million. Bankruptcy Creditors' Service, Inc., publishes DELPHI BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceedings of Delphi Corp. and its debtor-affiliates (http://bankrupt.com/newsstand/or 215/945-7000). DELTA PETROLEUM: Taps Pinckney Harris as Special Conflicts Counsel ------------------------------------------------------------------ Delta Petroleum Corporation, et al., filed an application asking the U.S. Bankruptcy Court for the District of Delaware for permission to employ Pinckney, Harris & Weidinger, LLC as special conflicts counsel. Donna L. Harris, a member of PHW, tells the Court that the hourly rates of the firm's personnel are: Attorneys $275 - $400 Paralegal Staff $170 Ms. Harris relates that to date, PHW has received no payment or compensation from the Debtors of any kind. Ms. Harris assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. A hearing on May 1, 2012, at 11:00 a.m. (ET) on PHW's employment has been set. About Delta Petroleum Delta Petroleum Corporation (NASDAQ: DPTR) is an independent oil and gas company engaged primarily in the exploration for, and the acquisition, development, production, and sale of, natural gas and crude oil. Natural gas comprises over 90% of Delta's production services. The core area of its operations is the Rocky Mountain Region of the United States, where the majority of the proved reserves, production and long-term growth prospects are located. Delta and seven of its subsidiaries sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 11-14006 to 11-14013, inclusive) on Dec. 16, 2011, roughly six weeks before the Jan. 31, 2012 scheduled maturity of its $38.5 million secured credit facility with Macquarie Bank Limited and after several months of unsuccessful attempts to sell the business. Delta disclosed $375,498,248 in assets and $310,679,157 in liabilities, which also include $152,187,500 in outstanding obligations on account of the 7% senior unsecured notes issued in March 2005 with US Bank National Association indenture trustee; and $115,527,083 in outstanding obligations on account of 3-3/4% Senior Convertible Notes due 2037 issued in April 2007. In its amended schedules, the Delta Petroleum disclosed $373,836,358 in assets and $312,864,788 in liabilities. W. Peter Beardsley, Esq., Christopher Gartman, Esq., Kathryn A. Coleman, Esq., and Ashley J. Laurie, Esq., at Hughes Hubbard & Reed LLP, in New York, N.Y., represent the Debtors as counsel. Derek C. Abbott, Esq., Ann C. Cordo, Esq., and Chad A. Fights, Esq., at Morris, Nichols, Arsht & Tunnel LLP, in Wilmington, Del., represent the Debtors as co-counsel. Conway Mackenzie is the Debtors' restructuring advisor. Evercore Group L.L.C. is the financial advisor and investment banker. The Debtors selected Epiq Bankruptcy Solutions, LLC as claims and noticing agent. The petition was signed by Carl E. Lakey, chief executive officer and president. Delta will hold an auction for the business on March 26, 2012. No buyer is under contract. There is $57.5 million in financing for the Chapter 11 effort. The U.S. Trustee told the bankruptcy judge that there was insufficient interest from creditors to form an official committee of unsecured creditors. DJ CHRISTIE: Court Directs Bond Insurer to Keep Proceeds -------------------------------------------------------- Washington International Insurance Company seeks relief from stay under 11 U.S.C. Sec. 362(d)(1) to allow it to comply with competing orders regarding turnover of the proceeds of a supersedeas bond posted in prepetition litigation involving DJ Christie, Inc. The Debtor and Alan E. Meyer and John R. Pratt oppose the Motion. Washington International's Motion is one part of extensive litigation involving the Debtor, David J. Christie, and Alex W. Glenn, and Dovetail Builders 2, L.L.C., Mr. Meyer and Mr. Pratt. In an April 26, 2012 Memorandum Opinion and Judgment available at http://is.gd/8ZYFyrfrom Leagle.com, Bankruptcy Judge Dale L. Somers denied Washington International's Motion. Washington is barred from disbursing the bond proceeds to any entity and must hold the proceeds pending further Court order. Overland Park, Kansas-based D.J. Christie Inc. filed for Chapter 11 bankruptcy (Bankr. D. Kan. Case No. 11-40764) on May 20, 2011. Judge Dale L. Somers presides over the case. Kathryn E. Sheedy, Esq., and Tom R. Barnes, II, Esq., at Stumbo Hanson, LLP, serve as the Debtor's counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and under $1 million in debts. The petition was signed by David J. Christie, its president. DJ CHRISTIE: Bankr. Court Won't Supplant District Court Order ------------------------------------------------------------- Bankruptcy Judge Dale L. Somers denied a request by DJ Christie, Inc., for an order under 11 U.S.C. Sec. 105 to prohibit Alan E. Meyer and John R. Pratt from obtaining possession of stock shares of the Debtor owned by David J. Christie and collecting on the supersedeas bond. Both of the actions which the Debtor seeks to stay arise from Messrs. Meyer and Pratt's attempts to execute on a judgment of the United States District Court for the District of Kansas, case no. 07-CV-2230-CM, in which Messrs. Meyer and Pratt obtained a judgment against the Debtor and two nondebtor individuals, Mr. Christie and Alex W. Glenn, in the amount of $7,170,603 plus $100 punitive damages and costs. The result of the requested relief would be to stay the effectiveness of postjudgment orders in the Federal Court Litigation. Because the Court finds that the conditions for issuance of a stay are not present, the Motion is denied, Judge Somers said in an April 26, 2012 Memorandum Opinion and Judgment available at http://is.gd/PDoDh2from Leagle.com. "In this case, issuance of the requested injunction would be contrary to the public interest. Debtors, although framing the request as an injunction against certain acts of Meyer and Pratt, are in effect asking this Court to enjoin orders issued by the district court. The public interest of comity between the district court and the bankruptcy court would not be served. Debtor by filing this bankruptcy case has elected to litigate issues relating to the satisfaction of the Judgment, including rights to the Bond and the Stock, in the bankruptcy court, even though the issues were or could have been placed before the district court. Having made the choice to involve a second forum, this Court will not now enter an order under Sec. 105 rendering ineffective orders entered in the district court action which Debtor finds objectionable," Judge Somers said. Overland Park, Kansas-based D.J. Christie Inc. filed for Chapter 11 bankruptcy (Bankr. D. Kan. Case No. 11-40764) on May 20, 2011. Judge Dale L. Somers presides over the case. Kathryn E. Sheedy, Esq., and Tom R. Barnes, II, Esq., at Stumbo Hanson, LLP, serve as the Debtor's counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and under $1 million in debts. The petition was signed by David J. Christie, its president. DYNEGY INC: Reaches Deal With Holdings' Creditors ------------------------------------------------- Dynegy Inc. has reached an agreement in principle with creditors holding over $2.5 billion of claims against Dynegy's subsidiary, Dynegy Holdings, LLC. The agreement in principle contemplates the resolution of all disputes, claims and causes of action between DH and Dynegy. The terms of the agreement in principle will be implemented through a settlement agreement to be filed in DH's Chapter 11 case, and in amendments to DH's Chapter 11 plan, which would be subject to a formal creditor vote and confirmation by the bankruptcy court. Under the agreement in principle, (A) DH's unsecured creditors would receive common equity in the reorganized company in lieu of the new senior secured notes and preferred stock contemplated by the current plan; (B) the cash to be distributed to creditors under the revised plan would be reduced to $200 million; and (C) all disputes relating to the Roseton and Danskammer leases would be resolved by awarding US Bank, as trustee for the trust certificates issued in connection with the leases (the Lease Notes), a fixed allowed unsecured claim. Parties to the proposed agreement include an ad hoc group of holders of DH's senior notes, PSEG, US Bank and certain holders of the Lease Notes. The agreement in principle does not include any holders of DH's $200 million of subordinated capital income securities due 2027 (the Subordinated Notes). "This agreement in principle recognizes the continuing decline in natural gas prices and the associated impact this has on our business while also addressing all of the complex issues raised by the Examiner's report regarding potential claims between the DH estate and Dynegy, which may otherwise have taken years to resolve. We are pleased that the parties have taken a pragmatic approach and have the Company back on track to put the DH Chapter 11 case behind it during the third quarter of 2012," Robert C. Flexon, President and Chief Executive Officer of both Dynegy and DH, said in an April 4 statement. The agreement in principle, which remains subject to documentation that the parties intend to prepare and file during the month of April and to bankruptcy court approval, includes the following key elements: * All potential claims and causes of action between DH and Dynegy, including those arising with respect to the September 1, 2011 CoalCo transaction, would be settled and released. The recovery of DH's creditors would be fully supported by the value of both CoalCo and GasCo. * DH's unsecured creditors would receive common equity representing a 99% stake in the reorganized company at emergence. DH claims participating in this recovery would include those arising under DH's senior notes, which currently total approximately $3.4 billion, PSEG's $110 million tax indemnity claim and the Lease Notes' guaranty claim against DH, which would be allowed in the amount of $540 million. All distributions to holders of claims arising under DH's subordinated notes would be subject to turnover pursuant to the contractual subordination provisions in the subordinated note indenture. * Dynegy would receive a claim for the benefit of its stockholders, which under the amended plan would be entitled to receive 1.0% of the fully-diluted common stock of the reorganized company, and 5-year warrants to purchase 13.5% of the common stock of the reorganized company (on a fully-diluted basis) to be exercisable at an equity value for the reorganized company of $4 billion. Dynegy's stockholders will not receive or retain any other property or shares in Dynegy or DH under the contemplated settlement. * The Lease Notes' claims will also be allowed against the Roseton and Danskammer debtors and will be entitled to 50% of the proceeds from the sale of their assets; provided that their full recovery from all sources may not exceed $571 million. The other DH unsecured creditors will be entitled to the remaining 50% of proceeds. * The cash distributed to DH unsecured creditors would be reduced to $200 million, with the remaining cash balances being retained by the reorganized company for general corporate purposes; and * All claims and causes of action against the directors, officers, employees, attorneys and advisors of Dynegy and DH would be released to the fullest extent permitted. Dynegy, DH, and the settling creditors will also exchange mutual releases. The parties are currently working on definitive documentation that will implement the proposed terms in the most efficient and expedient fashion possible. In that regard, the parties are continuing to engage in discussions with other creditors, including the holders of the subordinated notes, in the hopes of obtaining as much consensus as possible with respect to the amended DH plan. 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: Wants Claren Road Subpoenas Quashed ---------------------------------------------------- Dynegy Holdings LLC has filed a motion with the U.S. Bankruptcy Court for the Southern District of New York to quash the subpoena served by Claren Road Asset Management, LLC, a hedge fund affiliated with Carlyle Group. The subpoena was served on April 5 to get Dynegy Holdings Chief Executive Officer Robert Flexon and another person from the company to testify about the sale of the coal-powered plant assets from the company's subsidiary to Dynegy Inc., among other things. Claren needs the information in connection with the proposed appointment of an outside trustee who would take over the Chapter 11 cases of Dynegy Holdings and its affiliate debtors. A court hearing on the appointment is set for May 2, 2012. Brian Lohan, Esq., at Sidley Austin LLP, in New York, explained that the information demanded by Claren is protected from disclosure by the bankruptcy court's December 29, 2011 order, which authorized the appointment of an examiner to investigate the sale. The examiner order bars anyone from attempting to "tag along" with the examiner's investigation, according to Mr. Lohan. "Through the subpoena, however, Claren seeks not only to tag along but to pile on, and to replicate the exact same investigation already conducted by the examiner," he said. The Dynegy lawyer also argued that the subpoenas demand information, which is protected from disclosure by the "attorney-client privilege" or "attorney work-product doctrine." In separate requests, Dynegy Inc., the court-appointed examiner Susheel Kirpalani, Esq., and David Hershberg, who was reportedly appointed as Dynegy Holdings' manager, also moved to quash the subpoenas served on them by Claren. Dynegy Inc. said whatever information Claren needs in a deposition should be sought from Dynegy Holdings and other Dynegy units that filed for bankruptcy protection. Meanwhile, Mr. Hershberg described Claren's move as a "disruptive legal strategy," intended to frustrate efforts by creditors and other parties to reach a settlement, which is under his evaluation. For his part, Mr. Kirpalani said granting Claren's request will compromise the integrity of the investigation he conducted, and will violate the bankruptcy court's previous decisions prohibiting him from disclosing the documents sought to any party except the bankruptcy court. A court hearing to consider approval of the requests is scheduled for May 2, 2012. Claren Responds A lawyer for Claren asked the bankruptcy court to deny the examiner's bid to quash the subpoena, saying getting the examiner to testify is not improper and will not violate any of its prior orders. "The examiner relies heavily in its motion to quash on the belief that this court's prior orders protect as privileged and confidential all of the materials the examiner has received," Mitchell Karlan, Esq., at Gibson Dunn & Crutcher LLP, in New York, said. "While the production of documents to the examiner may not have waived privilege by the act of production alone, neither did the act of production provide any privilege that did not already exist or was not," she said. Ms. Karlan further said that even if the court determines that the privilege exists or has not been waived, production may be appropriate because Claren was not able to get the requested documents from any other source including Dynegy Holdings and Dynegy Inc. Separately, Claren has filed a motion asking the bankruptcy court to direct Dynegy Holdings, Dynegy Inc., Messrs. Flexon and Hershberg to comply with the subpoenas. The motion will also be heard on May 2, 2012. 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: Claren Wants Chapter 11 Trustee to Take Over ------------------------------------------------------------- Claren Road Asset Management LLC asked the U.S. Bankruptcy Court in Manhattan to authorize the appointment of an outside trustee who would take over the bankruptcy cases of Dynegy Holdings LLC and its affiliated debtors. The move comes after Susheel Kirpalani, the court-appointed examiner, released the results of his investigation into Dynegy Holdings' bankruptcy. The report said creditors were harmed by the fraudulent transfer of the company's coal-powered plant assets to its parent, Dynegy Inc. The findings prompted the U.S. Trustee, an agency of the U.S. Department of Justice overseeing bankruptcy cases, to file a motion early last month for the appointment of a bankruptcy trustee. The move drew support from Dynegy creditors including Claren. In a previously filed reply to the U.S. Trustee's motion, Claren said the appointment is warranted to keep the management of Dynegy Holdings and its parent from dictating the terms of the restructuring plan that will benefit the companies at the expense of creditors. A court hearing to consider the appointment of a bankruptcy trustee is scheduled for May 2, 2012. 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). EASTMAN KODAK: Cancels Deal to Sell Times Square Billboard Lease ---------------------------------------------------------------- Eastman Kodak Co. signed a stipulation to terminate an agreement with Orange Barrel Media, which offered to acquire the company's lease to its giant digital billboard overlooking New York's Times Square. The stipulation requires Eastman Kodak to pay $120,000 to Orange Barrel for the termination of their agreement reached early this month. A copy of the stipulation can be accessed for free at http://bankrupt.com/misc/Kodak_StipOBM.pdf The agreement dated April 4 calls for the sale of Eastman Kodak's lease to Orange Barrel for $3.7 million and requires the company to pay the advertising firm a $200,000 break-up fee should the agreement is terminated or a rival bidder wins. The lease on the billboard allows Eastman Kodak to advertise its digital capture devices on a 40-foot video screen overlooking Times Square. Eastman Kodak chose to terminate the April 4 agreement after it drew opposition from Clear Channel Spectacolor LLC, which submitted a better offer to acquire the lease. Earlier, the company dropped its motion to sell the lease to Orange Barrel. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. 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. 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. 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. 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: Lazard Freres Work to Include Gallery Sale --------------------------------------------------------- Eastman Kodak Co. filed a supplemental application to authorize Lazard Freres & Co. LLC to provide services in connection with the proposed sale of the KODAK Gallery online photo services business. The company previously proposed to sell the business for $23.8 million to Shutterfly Inc., an Internet-based social expression and personal publishing service. Lazard will be compensated in accordance with the February 28 court order approving Eastman Kodak's initial application to hire the firm and the terms of a letter agreement dated February 24. As reported in the March 13, 2012 edition of the TCR, the Debtors previously 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. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. 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. 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. 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. 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: Brinks Hofer Okayed for ITC Suit vs. Apple, Samsung ------------------------------------------------------------------ Eastman Kodak Co. and its affiliated debtors won bankruptcy court approval to hire Brinks Hofer Gilson & Lione as their special litigation counsel. Eastman Kodak tapped the firm to provide legal services related to its claim of ownership of certain patents, and represent the company before the International Trade Commission and the U.S. District Court for the Western District of New York, which oversees its patent-infringement suits against Apple Inc., HTC Corp. and Samsung Electronics Co., Ltd. The company will pay Brinks Hofer on an hourly basis and will reimburse the firm for its expenses. The firm's hourly rates for its partners range from $440 to $650; associates, $240 to $440; and paralegals, $170 to $210. The hourly rates for other professionals range from $100 to $155. In a declaration, Laura Beth Miller, Esq., a shareholder at Brinks Hofer, disclosed that the firm does not hold or represent interest adverse to Eastman Kodak's estates. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. 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. 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. 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. 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: K&L Gates Approved as Atty. for ITC Suits -------------------------------------------------------- Eastman Kodak Co. and its affiliates obtained approval from the U.S. Bankruptcy Court in Manhattan to employ K&L Gates LLP as its special litigation counsel. The Debtors tapped the law firm in connection with intellectual property and patent lawsuits involving Eastman Kodak Co. K&L Gates will also represent the company in investigations pending before the U.S. International Trade Commission. The Debtors will pay K&L Gates on an hourly basis for its services and will reimburse the firm for its expenses. K&L Gates' hourly rates range from $360 to $1,050 for partners and counsel; $120 to $575 for associates and other attorneys; $90 to $320 for paralegals; and $45 to $725 for other legal professionals. In court papers, David McDonald, Esq., a partner at K&L Gates, disclosed that his firm does not hold or represent interest adverse to Eastman Kodak's request. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. 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. 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. 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. 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: Nixon Peabody Okayed for Calif. Anti-Trust Suit -------------------------------------------------------------- Eastman Kodak Company obtained court approval to employ Nixon Peabody LLC as special counsel in connection with an antitrust lawsuit pending in California. The lawsuit was filed by Eastman Kodak against Epson Imaging Devices and several other companies in December 2010. It alleges that the company was damaged by conspiracy among manufacturers of TFT-LCD panels to fix the price of those panels in violation of antitrust laws. Under an agreement between Nixon Peabody and the company, the firm will be paid a percentage of any recovery in the lawsuit in lieu of paying hourly fees. Eastman Kodak will pay 30% of any recovery obtained after September 1, 2011; 35% of any recovery obtained after a jury is sworn; and 40% of any recovery obtained on appeal. The San Francisco-based law firm will also receive reimbursement for its expenses, according to the deal. Karl Belgum, Esq., at Nixon Peabody, disclosed in a declaration that the firm does not hold or represent interest adverse to Eastman Kodak or its estates. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. 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. 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. 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. 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). EASTPOINTE MANOR INC: Court Directs Revision to Plan Outline ------------------------------------------------------------ Bankruptcy Judge Thomas J. Tucker directed Eastpointe Manor Inc. to amend the disclosure statement accompanying its bankruptcy-exit plan. The Debtor filed a Combined Plan and Disclosure Statement on April 17, 2012. The Court said it cannot yet grant preliminary approval of the disclosure statement, citing problems that the Debtor must correct. Among other things, the Court said the Debtor must state or estimate the total amount of General Unsecured Claims. The Debtor also may not lump the claims of multiple secured creditors together in Class 2. Rather, the Debtor must separately classify and treat the claim of each secured creditor. With regard to each secured creditor, the Debtor must state the amount of the claim; the property securing the claim (if real estate, the full address, including city and state); the fair market value of the property securing the claim; whether any portion of the claim is unsecured; and if so, whether the secured creditor will have an unsecured deficiency claim, to be included and treated in the class of general unsecured claims; and if so, the amount of such claim. If more than one claim is secured by the same property, the Debtor must state the priority of each secured creditor (i.e., which creditor has a first priority lien and which creditor has a second priority lien). Also, the Debtor may not lump together General Unsecured Claims with Secured claims as it has done in Class 2. It is unclear how the General Unsecured Claims in Class 2 differ from the General Unsecured Claims in Class 1. The Plan states that an executory contract with Eastpointe Manor Realty LLC is assumed. The Court said the Debtor must change its reference to "Eastpointe Manor" to "Eastpointe Manor, Inc." and must describe the material terms of the contract being assumed. The Debtor's Liquidation Analysis also must include an estimate of the value of any potential causes of action. If there are no such causes of action, the Debtor must state this. The Debtor was required to file the revised Combined Plan and Disclosure Statement no later than April 26, 2012. A copy of the Court's April 22, 2012 Order is available at http://is.gd/hIJ8Gpfrom Leagle.com. Eastpointe Manor Inc., filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 11-72294) on Dec. 22, 2011, listing under $1 million in assets and debts. A copy of the petition and schedules is available at http://bankrupt.com/misc/mieb11-72294p.pdfand http://bankrupt.com/misc/mieb11-72294c.pdf Michael A. Greiner, Esq., at Financial Law Group, P.C. EASTPOINTE MANOR REALTY: Plan Outline Has Flaws ----------------------------------------------- Bankruptcy Judge Thomas J. Tucker directed Eastpointe Manor Realty, LLC, to amend the disclosure statement accompanying its bankruptcy-exit plan. The Court said it cannot yet grant preliminary approval of the disclosure statement due to problems, which the Debtor must correct. The Debtor filed a Combined Plan and Disclosure Statement on April 17, 2012. The amendments were due to be filed April 26. Among other things, the Court required the Debtor to state the amount of each secured claim; the property securing the claim (if real estate, the full address, including city and state); the fair market value of the property securing the claim; whether any portion of the claim is unsecured; and if so, whether the secured creditor will have an unsecured deficiency claim, and if so, the amount of such unsecured claim and what the treatment of that unsecured claim will be. If more than one claim is secured by the same property, the Debtor must state the priority of each secured creditor (i.e., which creditor has a first priority lien and which creditor has a second priority lien). The Debtor also must state what percentages of the Debtor are owned by Domenic Bommarito and Benedict Bommarito, respectively. The Debtor's Liquidation Analysis, the Court said, also must provide an itemized descriptive listing of each of the Debtor's assets, so that the asset can be readily identified. A copy of the Court's April 22, 2012 Order is available at http://is.gd/dcuHD9from Leagle.com. Eastpointe Manor Realty, LLC, filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 11-71977) on Dec. 19, 2011, listing under $1 million in both assets and debts. A copy of the petition is available at http://bankrupt.com/misc/mieb11-71977.pdf Michael A. Greiner, Esq., at Financial Law Group, P.C., represents Eastpointe Manor Realty. EL CENTRO MOTORS: Proofs of Claim Due May 15 -------------------------------------------- Creditors of El Centro Motors must submit their proofs of prepetition claims, and proofs of interest not later than May 15, 2012. El Centro Motors, dba Mighty Auto Parts, operates a Ford-Lincoln automobile dealership in El Centro, California. It filed a Chapter 11 petition (Bankr. S.D. Calif. Case No. 12-03860) on March 21, 2012, listing $10 million to $50 million in assets and debts. Chief Judge Peter W. Bowie presides over the case. Krifor Meshefajian, Esq., at Levene, Neale, Bender, Yon & Brill LLP, serves as counsel. The prior owner of the dealership operated the business since 1932. The business is presently owned by Dennis Nesselhauf and Robert Valdes. The Debtor claims that its assets, which include the property constituting the dealership in El Centro, and new and used vehicles, have a value of $14 million. The Debtor owes Ford Motor Credit Company $4.3 million on a term-loan secured by a first priority deed of trust against the El Centro property, 380,000 on a revolving credit line, and $6 million on a flooring line of credit used to purchase vehicle inventory. The Debtor also owes $1.03 million to Community Valley Bank, which loan is secured by a second priority deed of trust against the property. In addition to $3.95 million arbitration award owed to Dealer Computer Systems, Inc., the Debtor owes $3 million in unsecured debt. According to a court filing, the dealership generally operated at a profit, until it suffered the same economic setbacks suffered by dealerships across the country. In 2007, the Debtor suffered an $806,000 loss; in 2008, it had a $4.5 million loss, and in 2009, it suffered a $957,000 loss. Dealer Computer Services, which provided the dealer management system, obtained in November 2001, an arbitration award in the amount of $3.95 million, following a breach of contract lawsuit it filed against the Debtor. DCS has commenced collection efforts attempting to levy the Debtor's bank accounts and place liens on its assets. The Debtor filed for bankruptcy to preserve and maximize the Debtor's estate for the benefit of creditors, to provide the Debtor a reprieve from highly disruptive and financially detrimental collection efforts, and to provide the Debtor an opportunity to reorganize its financial affairs in as efficient a manner as possible. EL CENTRO MOTORS: Hires Levene Neale as Lead Bankruptcy Counsel --------------------------------------------------------------- El Centro Motors, dba Mighty Auto Parts, asks the U.S. Bankruptcy Court for permission to employ Levene, Neale, Bender, Yoo & Brill L.L.P. as general bankruptcy counsel to, among other things, provide these services: a. advise the Debtor with regard to the requirements of the Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules and the Office of the United States Trustee as they pertain to the Debtor; b. advise the Debtor with regard to certain rights and remedies of its bankruptcy estate and the rights, claims and interests of creditors; c. represent the Debtor in any proceeding or hearing in the Bankruptcy Court involving its estate unless the Debtor is represented in such proceeding or hearing by other special counsel; and d. conduct examinations of witnesses, claimants or adverse parties and representing the Debtor in any adversary proceeding except to the extent that any such adversary proceeding is in an area outside of LNBYB's expertise or which is beyond LNBYB's staffing capabilities. The Debtor expects that Martin J. Brill, Esq., and Krikor J. Meshefejian, Esq., will be the primary attorneys at LNBYB responsible for the representation of the Debtor during its Chapter 11 case. Mr. Brill attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Prior to its Chapter 11 filing, the Debtor paid $10,000 to LNYRB for legal services in contemplation of and in connection with the Debtor's Chapter 11 case. Additionally, prior to its Chapter 11 filing, the Debtor paid an additional retainer of $65,000. The Retainers total $75,000. The Debtor advised LNBYB that the source of the Retainers was the Debtor's funds. The firm's rates are: Personnel Rates --------- ----- David W. Levene $595 David L. Neale $595 Ron Bender $595 Martin J. Brill $595 Timothy J. Yoo $595 Edward M. Wolkowitz $595 David B. Golubchik $595 Monica Y. Kim $565 Beth Ann R. Young $565 Daniel H. Reiss $565 Irving M. Gross $565 Philip A. Gasteier $565 Jacqueline L. James $510 Juliet Y. Oh $510 Michelle A. Grimberg $510 Todd M. Arnold $510 Todd A. Frealy $510 Anthony A. Friedman $450 Carmela T. Pagay $450 Krikor J. Meshefejian $400 John-Patrick M. Fritz $400 Gwendolen D. Long $375 Lindsey L. Smith $300 Paraprofessionals $195 About El Centro Motors El Centro Motors, dba Mighty Auto Parts, operates a Ford-Lincoln automobile dealership in El Centro, California. It filed a Chapter 11 petition (Bankr. S.D. Calif. Case No. 12-03860) on March 21, 2012, listing $10 million to $50 million in assets and debts. Chief Judge Peter W. Bowie presides over the case. Krifor Meshefajian, Esq., at Levene, Neale, Bender, Yon & Brill LLP, serves as counsel. The prior owner of the dealership operated the business since 1932. The business is presently owned by Dennis Nesselhauf and Robert Valdes. The Debtor claims that its assets, which include the property constituting the dealership in El Centro, and new and used vehicles, have a value of $14 million. The Debtor owes Ford Motor Credit Company $4.3 million on a term-loan secured by a first priority deed of trust against the El Centro property, 380,000 on a revolving credit line, and $6 million on a flooring line of credit used to purchase vehicle inventory. The Debtor also owes $1.03 million to Community Valley Bank, which loan is secured by a second priority deed of trust against the property. In addition to $3.95 million arbitration award owed to Dealer Computer Systems, Inc., the Debtor owes $3 million in unsecured debt. According to a court filing, the dealership generally operated at a profit, until it suffered the same economic setbacks suffered by dealerships across the country. In 2007, the Debtor suffered an $806,000 loss; in 2008, it had a $4.5 million loss, and in 2009, it suffered a $957,000 loss. Dealer Computer Services, which provided the dealer management system, obtained in November 2001, an arbitration award in the amount of $3.95 million, following a breach of contract lawsuit it filed against the Debtor. DCS has commenced collection efforts attempting to levy the Debtor's bank accounts and place liens on its assets. The Debtor filed for bankruptcy to preserve and maximize the Debtor's estate for the benefit of creditors, to provide the Debtor a reprieve from highly disruptive and financially detrimental collection efforts, and to provide the Debtor an opportunity to reorganize its financial affairs in as efficient a manner as possible. ELECTRICAL COMPONENTS: S&P Affirms 'B' Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on St. Louis, Mo.-based electrical wire harness manufacturer Electrical Components International Inc. (ECI). "At the same time, we removed the ratings, including the 'B' corporate credit rating, from CreditWatch, where we had placed them with negative implications on Jan. 26, 2012," S&P said. "We believe that the company should be able to satisfy its covenants in the near term, though headroom is limited," said Standard & Poor's credit analyst Sarah Wyeth. "The company could benefit from access to various receivables financing programs focused on the receivables of key customers and designed to promote stability in supply chains. 'We believe the company will continue to generate eligible receivables from these key customers that it can convert to cash," Ms. Wyeth added. "ECI manufactures electrical wire harnesses, which transmit electricity throughout appliances or pieces of machinery. Standard & Poor's considers its business risk profile 'weak' because of its narrow scope of operations, exposure to the still-soft residential housing market, and meaningful customer concentration," S&P said. The outlook is negative. "We expect reported headroom over the company's leverage covenant to remain limited on a reported basis," Ms. Wyeth said. "In addition, we expect residential construction activity to remain low for the next two years.' Standard & Poor's could lower the ratings if operating performance deteriorates or if access to supply-chain financing programs becomes limited," S&P said. EMMIS COMMUNICATIONS: NASDAQ Grants Continued Listing Request ------------------------------------------------------------- Emmis Communications Corporation received notice indicating that the NASDAQ Listing Qualifications Panel has granted the Company's request for continued listing on The NASDAQ Global Select Market, subject to the Company evidencing a closing bid price of at least $1.00 per share, as required by NASDAQ Listing Rule 5450(a)(1), for a minimum of 10 consecutive business days by Aug. 27, 2012. The Panel's decision follows the Company's receipt of notice from the NASDAQ Listing Qualifications Staff on Feb. 28, 2012, indicating that, based upon the Company's non-compliance with the minimum bid price requirement as of Feb. 27, 2012, the Company's securities were subject to delisting from NASDAQ. The Company appealed the Staff's determination and appeared before the Panel on April 5, 2012. 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. * * * Emmis carries Caa2 corporate family rating and a Caa3 probability of default rating from Moody's. In July 2011, Moody's Investors Service placed the ratings of Emmis on review for possible upgrade following the company's earnings release for 1Q12 (ended May 31, 2011) including additional disclosure related to the pending sale of controlling interests in three radio stations. The sale of the majority ownership to GCTR will generate estimated net proceeds of approximately $100 million to $120 million, after taxes, fees and related expenses. Emmis will retain a minority equity interest in the operations of the three stations and Moody's expects senior secured debt to be reduced resulting in improved credit metrics. EQT CORPORATION: Moody's Issues Summary Credit Opinion ------------------------------------------------------ Moody's Investors Service issued a summary credit opinion on EQT Corporation and includes certain regulatory disclosures regarding its ratings. The release does not constitute any change in Moody's ratings or rating rationale for EQT and its affiliates. Moody's current ratings for EQT and its affiliates are: Senior Unsecured (domestic currency) Rating of Baa2 Senior Unsecured MTN (domestic currency) Rating of (P)Baa2 Senior Unsec. Shelf (domestic currency) Rating of (P)Baa2 Subordinate Shelf (domestic currency) Rating of (P)Baa3 Junior Subord. Shelf (domestic currency) Rating of (P)Ba1 Pref. Shelf (domestic currency) Rating of (P)Ba2 Commercial Paper (domestic currency) Rating of P-2 Ratings Rationale EQT's Baa2 and Prime-2 ratings reflect the company's very low cost structure relative to other E&P peers, enabling it to generate competitive investment returns in a weak natural gas price environment. Its credit profile benefits from the ownership of strategic transportation and storage assets that enables its growing production to reach the market at low costs. EQT's rating also is supported by its LDC operations which provide earnings stability, a lower business risk profile and knowledge of the local regulatory environment that benefits its production and midstream segments. These positive attributes serve to mitigate the risks of the company's limited geographic and basin diversification and much smaller production scale relative to other investment grade rated independent E&Ps. However, EQT's aggressive production growth objectives for developing its large Marcellus shale acreage position is increasing the capital intensity of its operations and could pressure the ratings depending on how the company funds its growth and manages its leverage metrics. The outlook is negative based on EQT's elevated leverage metrics, its aggressive natural gas production growth objectives, and Moody's concerns regarding EQT's future corporate structure as the company evaluates various options to fund its growth. The leverage metrics should decline in 2012 as the company's production and reserve volumes grow. However, EQT will have to maintain its strong capital productivity in order to deliver the necessary production and PD reserve volume growth to return leverage metrics to the levels supportive of its Baa2 ratings. The Baa2 and Prime-2 ratings could be downgraded if EQT's debt/average daily production and debt/PD does not decline and be sustained under $20,000/boe and $5/boe, respectively. A decrease in the company's production growth could signal a decline in capital productivity that could pressure the ratings. While the company is focusing on the MLP option, Moody's believes there is also event risk related to the potential separation of EQT's businesses given the equity markets preference for pure play investments. A transaction separating the company's LDC or midstream operations could result in a ratings downgrade. A ratings upgrade is unlikely in the near to medium term given EQT's much smaller production scale than similarly rated E&P peers, its geographic and natural gas concentration, and the diminishing importance of the lower risk distribution segment in the context of EQT's overall corporate strategy. The principal methodology used in rating EQT was the Independent Exploration and Production Industry Methodology published in December 2011. FILENE'S BASEMENT: Shareholders Object Bid to Probe Executives -------------------------------------------------------------- Max Stendahl at Bankruptcy Law360 reports that Syms Corp. shareholders on Wednesday blasted the Company's proposal to have an examiner probe alleged misconduct by top management, claiming the eventual report would cost thousands of dollars that could go to shareholders. An official committee of Syms Corp. equity holders lodged an objection in Delaware bankruptcy court to Syms' request in December to allow an independent party to weigh potential claims for breach of fiduciary duty and mismanagement against the clothing retailer's directors and officers, according to Law360. About Syms Corp. Massachusetts-based Filene's Basement, also called The Basement, is the oldest off-price retailer in the United States. The Basement focuses on high-end goods and is known for its distinctive, low-technology automatic markdown system. Filene's Basement first filed for Chapter 11 bankruptcy protection in August 1999. Filene's Basement was bought by a predecessor of Retail Ventures, Inc., the following year. Retail Ventures in April 2009 transferred the unit to Buxbaum. Filene's Basement, Inc. and its affiliates filed for Chapter 22 (Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy Solutions serves as claims and notice agent. The Debtors estimated $50 million to $100 million in assets and $100 million to $500 million in debts. The 2009 Debtor was formally renamed FB Liquidating Estate, following the sale of all of its assets to Syms Corp. in June 2009. Pursuant to the Liquidating Plan confirmed in January 2010, secured creditors in the Chapter 11 case have been paid in full, and holders of priority, administrative and convenience class claims have received 100% of their allowed claims. As reported by the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen, Chairman of Abacus Advisors LLC and Chief Restructuring Officer for FB Liquidating Estate disclosed that a second distribution of dividend checks to Filene's unsecured creditors amounting to 12.5% of approved claims has been made, bringing the cumulative distributions on unsecured claims to 62.5%. On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 11-13511 to 11-13514) after a failed bid to sell the business. The two units are Syms Clothing Inc. and Syms Advertising Inc. Judge Kevin J. Carey presides over the case. Lawyers at Skadden Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The Debtors tapped Rothschild Inc. as investment banker and Cushman and Wakefield Securities, Inc., as real estate financial advisors. Syms shuttered its namesake and Filene's Basement outlets upon the bankruptcy filing and tapped a joint venture of Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC to run the going-out-of-business sales. The sale may continue until Jan. 31, 2012. Filene's Basement estimated $1 million to $10 million in assets and $50 million to $100 million in debts. The petitions were signed by Gary Binkoski, authorized representative of Filene's Basement. The official committee of unsecured creditors appointed in the 2011 case has retained Hahn & Hessen LLP as legal counsel. Holders of equity in Syms Corp. pushed for an official shareholders' committee and separation of the Syms and Filene's Basement bankruptcy estates. Gordon Brothers and Hilco are represented by Goulston & St FIRST BANKS: Swings to $6.8 Million Net Income in First Quarter --------------------------------------------------------------- First Banks, Inc., reported net income of $6.83 million on $43.77 million of net interest income for the three months ended March 31, 2012, compared with a net loss of $6.08 million on $48.82 million of net interest income for the same period a year ago. Terrance M. McCarthy, President and Chief Executive Officer of the Company, said, "The first quarter of 2012 represents our first profitable quarter since the beginning of the distressed credit cycle and is reflective of the significant progress we have made successfully implementing the action items in our Profit Improvement and Asset Quality Improvement Plans. We are pleased with our financial results and are focused on maintaining our positive momentum throughout the remainder of 2012." Total assets were $6.68 billion at March 31, 2012, as compared to $6.61 billion at Dec. 31, 2011, and $7.21 billion at March 31, 2011. The increase in total assets during the first quarter of 2012 is reflective of an increase in cash and cash equivalents and the investment securities portfolio, partially offset by a decrease in the loan portfolio. A copy of the press release is available for free at: http://is.gd/FWEm7L About First Banks First Banks, Inc., is a registered bank holding company incorporated in Missouri in 1978 and headquartered in St. Louis, Missouri. The Company operates through its wholly owned subsidiary bank holding company, The San Francisco Company, or SFC, headquartered in St. Louis, Missouri, and SFC's wholly owned subsidiary bank, First Bank, also headquartered in St. Louis, Missouri. First Banks reported a net loss of $44.1 million for the fiscal year ended Dec. 31, 2011, compared with a net loss of $198.3 million for the fiscal year ended Dec. 31, 2010. FONAR CORP: Bruderman Brothers' R. Lehman Named Ind. Director ------------------------------------------------------------- FONAR Corporation, the Inventor of MR Scanning, announced that on Thursday, April 26, 2012, its board of directors had appointed Ronald G. Lehman as a replacement independent director to fill vacancies on the Company's board of directors and audit committee. FONAR shareholders will have an opportunity to confirm the appointment at the annual shareholder meeting scheduled for June 25, 2012. Raymond Damadian, M.D., president and chairman of the board, said, "Mr. Lehman is a talented individual with strengths advising healthcare services companies and with significant corporate finance experience. We expect him to be very beneficial to our growth. We are delighted to have him working with the board of directors and as a member of the audit committee." Dr. Damadian continued, "All this follows the sad passing of our good friend Robert Djerejian, who was an able member of the board of directors since 2002." Mr. Lehman is a Managing Director of Investment Banking with Bruderman Brothers, Inc., a private, New York-based broker-dealer (a FINRA member firm). Mr. Lehman directly manages all facets of the firm's transaction processes, from deal origination, to sourcing capital, to negotiating deal structures, through documentation and closing. The firm provides buy and sell-side advisory, capital raising, and consulting services to lower middle-market companies. Mr. Lehman specializes in advising healthcare services companies and has recently completed the recapitalizations of Professional Orthopedic and Sports Medicine, P.C. and Dynamic Healthcare Services, Inc., among others. From 2000 to 2008, Mr. Lehman worked for various Bruderman entities as a buy and sell-side advisor, and acted as a principal in several private equity transactions. In 2008, he joined Health Diagnostics, LLC, one of the country's fastest growing diagnostic imaging providers, as a Senior Vice President of Acquisitions where he managed the Company's acquisition and corporate finance activities. Mr. Lehman returned to Bruderman Brothers in 2010 to lead the firm's investment banking efforts. He also participates in the firm's merchant banking investments and oversees many of these assignments. From 1998 to 2000 Mr. Lehman worked at Deutsche Bank Securities, Inc., and last held the position of Associate in their Global Custody Group. Mr. Lehman graduated from Columbia University with a B.A. in 1998. On April 23, 2012, The NASDAQ Stock Market LLC staff sent a letter to FONAR stating that FONAR was not in compliance with NASDAQ's audit committee composition requirement as set forth in Listing Rule 5605 (c)(2)(A), due to Mr. Djerejian's death on Aug. 21, 2011. Following the appointment of Mr. Lehman, FONAR has regained compliance with the NASDAQ audit committee composition requirement. About FONAR Corp. FONAR was incorporated in 1978, making it the first, oldest and most experienced MRI company in the industry. FONAR introduced the world's first commercial MRI in 1980, and went public in 1981. Since its inception, nearly 300 recumbent-OPEN MRIs and 150 UPRIGHT(R) Multi-Position(TM) MRI scanners worldwide have been installed. FONAR's stellar product line includes the Upright(TM) MRI (also known as the Stand-Up(TM) MRI), the only whole-body MRI that performs Position(TM) imaging (pMRI(TM)) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional lie-down position. The Company's balance sheet at Dec. 31, 2011, showed $33.45 million in total assets, $24.27 million in total liabilities, and $9.17 million in total stockholders' equity. After auditing the financial statements for fiscal 2011, the Company's independent auditors expressed substantial doubt about the Company's ability to continue as a going concern. Marcum, LLP, in New York, noted that the Company has negative working capital at June 30, 2011, and is dependent on asset sales to fund its operations. FREMONT HOSPITALITY: Case Summary & Unsecured Creditor ------------------------------------------------------ Debtor: Fremont Hospitality Group, LLC aka The Port Clinton Hotels, Inc 3422 Port Clinton Road Fremont, OH 43420 Tel: (419) 334-2682 Bankruptcy Case No.: 12-31969 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court Northern District of Ohio (Toledo) Judge: Mary Ann Whipple Debtor's Counsel: Donald R. Harris, Esq. DONALD HARRIS LAW FIRM 158 E. Market Street, Suite 302b Sandusky, OH 44870 Tel: (419) 621-9388 Fax: (419) 624-8592 E-mail: donharris_dhc@sbcglobal.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Annie Kolath, president. The Company's list of its largest unsecured creditors filed with the petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ William L. Farrell Trade Debt $320,000 Sandusky County Auditor 100 N. Park Avenue, Suite 228 Fremont, OH 43420-2454 GAC STORAGE: To Fund Plan from Cash and Equity Contributions ------------------------------------------------------------ GAC Storage Lansing, LLC, submitted to the U.S. Bankruptcy Court for the Northern District of Illinois a Disclosure Statement explaining the proposed Plan of Reorganization dated March 30, 2012. The Debtor will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, the Plan provides for the reorganization of the Debtor's business and the resolution of all outstanding claims against and interests in the Debtor. The Plan also contemplates the issuance of new equity interests in the Reorganized Debtor to an entity owned by Ronnie Schwartz and other third-party investors in exchange for substantial equity contributions. Neither GAC Storage, LLC, the Debtor's current owner, nor any of the guarantors of the Bank Claim will have any ownership interest in the Reorganized Debtor or Newco. The Plan will be funded from (i) the Reorganized Debtor's available cash, (ii) the Reorganized Debtor's business operations, and (ii) the New Equity Contributions of Newco. The Plan proposes to pay all Allowed Administrative Expense Claims and Allowed Priority Claims in full on the Plan's Effective Date, with Holders of Allowed Unsecured Claims receiving a single cash distribution based on pro rata share of $10,000 within 60 days of the Effective Date. The Allowed Bank Claim, which the Debtor estimates will total $9,797,262, as of the Effective Date, will be treated in one of these ways under the Plan, at the sole and exclusive discretion of the Holder of the Allowed Bank Claim, Bank of America, N.A.: Bank Option 1: The Reorganized Debtor will pay to the Holder of the Allowed Bank Claim (A) the aggregate amount of any unpaid non- default rate interest that may have accrued in accordance with the Bank Loan Documents prior to the Effective Date, which amount will be paid in Cash on the Effective Date; (B) monthly principal and interest payments on the unpaid balance of the Allowed Bank Claim, based on a 30 year amortization, with interest calculated at 4% per annum for year 1 through year 4 and 5% per annum for year 5 through year 7 of the Plan, which Monthly Payments will commence to accrue on the Effective Date, become payable on the fifth day of the first full month after the Effective Date, and continue to be paid on the same day of each month thereafter until the earlier of the date the Allowed Bank Claim is paid in full or the Maturity Date; and (C) a balloon payment of the unpaid balance of the Allowed Bank Claim plus any accrued and unpaid interest, which balloon payment will occur and will be due and payable on the Maturity Date; or Bank Option 2: The Allowed Bank Claim will be reduced by the sum of $1,000,000 as of the Effective Date, and the Reorganized Debtor will pay to the Holder of the reduced, Allowed Bank Claim: (A) the aggregate amount of (x) $1,000,000, plus (y) any unpaid non-default rate interest that may have accrued in accordance with the Bank Loan Documents prior to the Effective Date, which amount will be paid in Cash on the Effective Date and will be applied against the unpaid balance of the reduced, Allowed Bank Claim, with the Lump Sum Payment applied to unpaid principal and the balance of the cash applied to the unpaid interest payable on the Effective Date; (B) monthly principal and interest payments on the unpaid balance of the Allowed Bank Claim, based on a 30 year amortization, with interest calculated at 4.50% per annum, which Monthly Payments will commence to accrue on the Effective Date, become payable on the First Payment Date, and continue to be paid on the same day of each month thereafter until the earlier of the date the Allowed Bank Claim is paid in full or the Maturity Date; and (C) a balloon payment of the unpaid balance of the Allowed Bank Claim plus any accrued and unpaid interest, which balloon payment will occur and shall be due and payable on the Maturity Date. If the Holder of the Allowed Bank Claim selects Bank Option 1, Newco will make an equity contribution to the Reorganized Debtor to establish a "Payment Reserve" in the amount of $385,000, which is approximately equal to one year of interest under the proposed treatment of the Allowed Bank Claim. The Payment Reserve will be used by the ReorganizedDebtor to supplement the Monthly Payments under Bank Option 1 above, as needed, in the event that the Reorganized Debtor is unable to make the Monthly Payments from its own cash at the time any Monthly Payment is due. Any balance of the Payment Reserve that remains when the Allowed Bank Claim is paid in full in accordance with the provisions of the Section 2.2.2 will be retained by the Reorganized Debtor. If the Holder of the Allowed Bank Claim selects Bank Option 2, Newco will make an equity contribution to the Reorganized Debtor to fund the Lump Sum Payment. In the event that the Holder of the Allowed Bank Claim does not elect either Bank Option 1 or 2 above, or votes to reject the Plan, then for purposes of confirmation of the Plan under Section 1129(b) and Section 3.3 of the Plan, the Holder of the Allowed Bank Claim will be deemed to have selected Bank Option 1. Estimated Recoveries Class Claim Recovery ----- ----- -------- 1 Priority Non-Tax Claims 100% 2 Bank Claim 100% 3 Other Secured Claims 100% 4 General Unsecured Claims 50% 5 Interests 0% A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/GAC_STORAGE_ds.pdf About GAC Storage GAC Storage Lansing, LLC, owns and operates a warehouse and storage facility with 522 storage units, generally located at 2556 Bernice Road, Lansing, Illinois. The Company filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 11-40944) on Oct. 7, 2011. Jay S. Geller, Esq., D. Sam Anderson, Esq., and Halliday Moncure, Esq., at Bernstein, Shur, Sawyer & Nelson, P.A., represents the Debtor as counsel. Robert M, Fishman, Esq., and Gordon E. Gouveia, Esq., at Shaw Gussis Fishman Glantz Wolfson, & Towbin LLC, in Chicago, represents the Debtor as local counsel. It estimated $1 million to $10 million in assets and debts. The petition was signed by Noam Schwartz, secretary and treasurer of EBM Mgmt Servs, Inc., manager of GAC Storage, LLC. The Debtors' cases are being jointly administered along with the Chapter 11 cases of The Makena Great American Anza Company, LLC ("Anza") and San Tan Plaza, LLC ("San Tan," and together with Anza, the "Related Debtors") under lead case no. 11-40944. GAMETECH INT'L: Four Directors Elected at Annual Meeting -------------------------------------------------------- The annual meeting of stockholders of GameTech International, Inc., was held on April 25, 2012. At the annual meeting, the Company's stockholders: (i) elected each of Richard H. Irvine, Kevin Y. Painter, Scott H. Shackelton and Donald K Whitaker, each having received a plurality of the votes duly cast, to serve as a director of the Company until the Company's next annual meeting of stockholders or until their successors are elected and have qualified, or until their earlier resignation or removal, and (ii) ratified the appointment of Piercy Bowler Taylor and Kern as the Company's independent public accountants for the fiscal year ending Oct. 28, 2012. About Gametech International Based in Reno, Nevada, GameTech develops and manufactures gaming entertainment products and systems. GameTech holds a significant position in the North American bingo market with its interactive electronic bingo systems, portable and fixed-based gaming units, and complete hall management modules. It also holds a significant position in select North American VLT markets, primarily Montana, Louisiana, and South Dakota, where it offers video lottery terminals and related gaming equipment and software. It also offers Class III slot machines and server-based gaming systems. GameTech International disclosed net income of $858,000 on $8.25 million of net revenues for the 13-week period ended Jan. 29, 2012, compared with a net loss of $288,000 on $10.10 million of net revenues for the 13-week period ended Jan. 30, 2011. The Company reported a net loss of $20.4 million on $35.2 million of revenue for the 52 weeks ended Oct. 31, 2010, compared with a net loss of $10.5 million on $47.8 million of revenue for the 52 weeks ended Nov. 1, 2009. The Company's balance sheet at Jan. 29, 2012, showed $27.22 million in total assets, $22.88 million in total liabilities, all current, and $4.34 million in stockholders' equity. Piercy Bowler Taylor & Kern expressed substantial doubt about the Company's ability to continue as a going concern following the fiscal 2011 financial results. All of the Company's debt (approximately $23.4 million at Oct. 30, 2011) is classified as current. The independent auditors noted that there is significant uncertainty as to whether the Company will be able to satisfy all conditions necessary to extend the maturity of those obligations. HAYDEL PROPERTIES: Taps Alfonso for Sale of 9424 Three Rivers ------------------------------------------------------------- Haydel Properties, LP, asks the U.S. Bankruptcy Court for the Southern District of Mississippi for permission to employ Alfonso Realty, Inc., doing business as Coldwell Bank Alfonso Realty, as real estate broker to represent the Debtor in the sale of 9424 Three Rivers Road, Gulfport, Mississippi during the pendency of the Chapter 11 proceeding. The professional services to be rendered by Alfonso Realty will include, but not is limited to the showing of 9424 Three Rivers parcel and assisting in the closing of the sale of said parcel. Walter Ketchings, an agent at Alfonso Realty, assures the Court that Alfonso Realty is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Haydel Properties Haydel Properties LP, in Biloxi, Mississippi, filed for Chapter 11 bankruptcy (Bankr. S.D. Miss. Case No. 12-50048) on Jan. 11, 2012. Judge Katharine M. Samson presides over the case. Patrick A. Sheehan, Esq., at Sheehan & Johnson, PLLC; and Robert Gambrell, Esq., at Gambrell & Associates, PLLC, serve as the Debtor's counsel. Christy Pickering serves as accountant. The Debtor disclosed $11.7 million in assets and $7.24 million in liabilities as of the Chapter 11 filing. The petition was signed by Michael D. Haydel, manager of general partner. HAYDEL PROPERTIES: Taps Mark Cumbest as Real Estate Broker ---------------------------------------------------------- Haydel Properties, LP, asks the U.S. Bankruptcy Court for the Southern District of Mississippi for permission to employ Mark Cumbest as real estate broker. Mr. Cumbest's professional services include listing for sale, marketing and selling the Debtor's real property. The Debtor agreed, subject to a Court approval, to pay Mr. Cumbest an 8% of the gross sale price of each property sold, to be paid at closing. To the best of the Debtor's knowledge, Mr. Cumbest is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Haydel Properties Haydel Properties LP, in Biloxi, Mississippi, filed for Chapter 11 bankruptcy (Bankr. S.D. Miss. Case No. 12-50048) on Jan. 11, 2012. Judge Katharine M. Samson presides over the case. Patrick A. Sheehan, Esq., at Sheehan & Johnson, PLLC; and Robert Gambrell, Esq., at Gambrell & Associates, PLLC, serve as the Debtor's counsel. Christy Pickering serves as accountant. The Debtor disclosed $11.7 million in assets and $7.24 million in liabilities as of the Chapter 11 filing. The petition was signed by Michael D. Haydel, manager of general partner. HAYDEL PROPERTIES: Taps Owen & Co. as Real Estate Broker -------------------------------------------------------- Haydel Properties, LP, asks the U.S. Bankruptcy Court for the Southern District of Mississippi for permission to employ Owen & Co., LLC doing business as Owen & Co. Real Estate, as a real estate broker. The professional services of Owen & Co. will include, but not is limited to these: a. listing and showing of any parcels of real property in which the Debtor wishes to sell; b. assisting the Debtor in negotiations with any prospective purchasers; and c. assisting in the closing of any sales procured by Owen & Co. The commission to be paid to Owen & Co. on each closing will be determined by contract to sell each parcel and Court approval of any commission to be paid will be obtained along with approval of any sale prior to the sale and the payment of said commission. To the best of Debtor's knowledge, Owen & Co. is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Haydel Properties Haydel Properties LP, in Biloxi, Mississippi, filed for Chapter 11 bankruptcy (Bankr. S.D. Miss. Case No. 12-50048) on Jan. 11, 2012. Judge Katharine M. Samson presides over the case. Patrick A. Sheehan, Esq., at Sheehan & Johnson, PLLC; and Robert Gambrell, Esq., at Gambrell & Associates, PLLC, serve as the Debtor's counsel. Christy Pickering serves as accountant. The Debtor disclosed $11.7 million in assets and $7.24 million in liabilities as of the Chapter 11 filing. The petition was signed by Michael D. Haydel, manager of general partner. HEAVENS BEACH: Case Summary & 4 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Heavens Beach, LLC 28955 Pacific Coast Highway Malibu, CA 90265 Tel: (310) 574648 Bankruptcy Case No.: 12-13811 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Debtor's Counsel: Richard L. Knickerbocker, Esq. KNICKERBOCKER LAW GROUP 100 Wilshire Boulevard, Suite 950 Santa Monica, CA 90401 Tel: (310) 917-1006 Fax: (310) 917-1008 E-mail: knicklaw@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its four largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/cacb12-13811.pdf The petition was signed by Mehrdad Sahafi, member. HOFFMASTER GROUP: S&P Affirms 'B' Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Hoffmaster. The outlook is stable. "The 'B' issue-level rating and '3' recovery rating to the $285 million in first-lien credit facilities ($250 million term loan, increased from $235 million, due 2018 and a $35 million revolving credit facility due 2017) remain unchanged. The '3' recovery rating reflects our expectation for a meaningful (50%-70%) recovery in the event of a payment default. The 'CCC+' issue-level rating and '6' recovery rating on the $85 million second-lien term loan, increased from $62 million, due 2019 remain unchanged. The '6' recovery rating reflects our expectation for a negligible (0%- 10%) recovery in the event of a payment default," S&P said. "Hoffmaster will use the incremental proceeds, together with existing cash, to repay payment-in-kind (PIK) notes of $40 million. We view the PIK notes as debt in our calculations and therefore leverage remains approximately the same after the transaction," S&P said. "Following the completion of the transaction, we expect the ratio of total adjusted debt to EBITDA to be about 6x and a ratio of funds from operations (FFO) to total adjusted debt of approximately 8.6%. Although we would continue to view the financial profile as 'highly leveraged,' we expect favorable operating trends and an improving financial profile to support a stable outlook. Based on our scenario forecasts, we expect leverage to improve to about 5.5x and FFO to total adjusted debt to approach 10% in the next couple of years through modest growth in both of its segments coupled with synergies related to the Innoware integration, operational improvements, and headcount reductions," S&P said. "The ratings on Oshkosh, Wis.-based Hoffmaster reflect a 'weak' business profile that incorporates the company's position as a niche player in disposable tableware products with limited product and geographic diversity and moderate customer concentration," said Standard & Poor's credit analyst Henry Fukuchi. "In addition, Standard & Poor's views the financial risk profile as highly leveraged and believes financial policy is likely to be very aggressive, particularly in light of the dividend recapitalization in 2010, the leveraging transaction by the Metalmark acquisition, and the current proposed transaction. Some mitigating factors include the company's long-standing customer relationships, sizable positions with leading North American foodservice providers, above-average profit margins and cash flow generation, 'adequate' liquidity, and a favorable debt maturity profile." "With annual revenues of about $366 million, Hoffmaster is a small niche player within specialty disposable tabletop products in the U.S. The company's products include solid, fashion-designed, and custom-printed napkins, placemats, table covers, tray covers, guest towels, coasters, and other related party goods that it distributes into the foodservice industry and consumer market. Hoffmaster's revenues are divided between the foodservice segment (45%) and the consumer segment (55%). Within the foodservice segment, Hoffmaster has a substantial market share in the markets it serves. However, it has considerable competition from diversified paper products companies and two larger competitors, Svenska Cellulosa Aktiebolaget SCA (BBB+/Stable/A-2) and Georgia- Pacific LLC (A-/Stable/--), which have the scale to provide longer production runs and have diverse product portfolios. Hoffmaster conducts the majority of its foodservice sales through distributors that service 25,000 end-customers, including restaurants, lodging, health care providers, country clubs, airlines, and catering," S&P said. "Sales from Hoffmaster's consumer segment are primarily to specialty party retailers, including superstore chains as well as over 8,000 independent stores, mass merchandisers, grocery and drug stores, and dollar stores. As such, demand is fairly resilient and tied to economic trends that affect food consumption, particularly around holidays and year-round life celebrations. The company's brand names are a competitive strength and include Sensations, Creative Expressions, Hoffmaster, Special Occasion, Linette, FashnPoint, and Swankie. In the consumer business, Hoffmaster holds a modest market share of a larger $1.5 billion market, which is highly fragmented and competitive," S&P said. "The competitive nature of these businesses and their dependence on a few key customers limit pricing flexibility. The three largest customers represent about 28% of total sales. However, Hoffmaster mitigates some of this risk through direct sales relationships with key accounts and the diversity it achieves from its relationships with key distributors. Operating profits demonstrated reasonable stability even during periods of economic weakness, as recurring sales of party products for holidays, birthdays, and special events supported revenues. Sales exhibit a degree of seasonality, with demand higher in the latter half of the year because of a concentration of holidays during this period. The narrow scope of product offerings is a weakness, and Hoffmaster's results could suffer from unexpected changes resulting from increased price competition, imports, or fundamental changes in the industry over time. Hoffmaster's raw material costs represent approximately 65% of cost of goods sold. The company meets its raw material requirements with a diverse group of suppliers, providing some flexibility and protection from sourcing risk. However, raw materials such as tissue rolls, board stock, bleach paperboard, and bonded paper are dependent on lumber and paper prices, which can be volatile because of supply and demand dynamics. We view Hoffmaster's products as generally commodity-like, though raw material price fluctuations appear manageable based on effective pricing," S&P said. "Within the past year, operating results have benefited from manufacturing cost improvements and higher margin and growth opportunities. These ongoing efforts have enabled the company to maintain decent margins in the mid teens percentage area in the past few quarters. We expect the company to continue to maintain those margins with some modest upside in the next few years supported by various cost reduction initiatives and modest growth from both of its segments," S&P said. "Hoffmaster's financial profile is highly leveraged. Following the completion of the proposed transaction, total adjusted debt (adjusted for capitalized operating leases and pensions) to EBITDA will be about 6x and funds from operations (FFO) to total adjusted debt will be about 8.6%. Based on our scenario forecasts, we expect total adjusted debt (adjusted for capitalized operating leases and pensions) to EBITDA to improve to about 5.5x and FFO to total adjusted debt ratio to improve toward 10% within the next couple years. We expect FFO to total adjusted debt to remain 10%- 15%, which we consider appropriate for the ratings," S&P said. "The stable outlook reflects our expectation of fairly predictable business conditions and stable cash flow generation over the next few years. Despite a highly leveraged financial profile following the transaction, we expect gradual improvement in its credit metrics in the next few years. Although we expect reasonable business prospects and stability in earnings, we continue to balance the prospects for any potential positive rating revisions against financial policy decisions. We could raise the ratings modestly if operating results are favorable over time and FFO to total adjusted debt is consistently over 15% through a business cycle. We currently expect FFO to total adjusted debt to improve toward 10% in about two years and remain within 10%-15% over time. We expect this level will continue to provide adequate cash flow to meet internal needs and scheduled amortizations in the next few years," S&P said. "However, operational challenges could occur if the company experiences unexpected volume declines owing to a squeeze in consumer spending, increased competition from imports, a significant increase in raw material costs, or a significant decline in business from a key customer. Based on our downside scenario, we could lower the ratings if operating margins weaken by 3% or more, or if volumes decline 10% or more from current levels. In our downside scenario, we expect leverage to increase to more than 7x, and FFO to total adjusted debt to decrease to about 5%. We may also lower the ratings if unexpected cash outlays, financial policies, or business challenges reduce the company's liquidity position, stretch credit metrics, or if covenant cushions tighten closer to 10%," S&P said. HUNTSMAN CORP: S&P Raises Corporate Credit Rating to 'BB' --------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Huntsman Corp. and its subsidiary Huntsman International LLC to 'BB' from 'BB-'. "At the same time, we raised all our issue level ratings on Huntsman by one notch," S&P said. The outlook is stable. "Huntsman's senior secured debt is rated 'BB+' with a recovery rating of '2', indicating our expectation for substantial (70%- 90%) recovery in the event of a payment default. Its senior unsecured debt is rated 'BB-' with a recovery rating of '5', denoting modest (10%-30%) recovery prospects, and its subordinated debt is rated 'B+' with a recovery rating of '6', reflecting our expectation that recovery would be negligible (0%-10%)," S&P said. "The upgrade follows significant strengthening of Huntsman's financial profile during the past two years," said Standard & Poor's credit analyst Cynthia Werneth. "Moreover, we believe earnings will continue to improve during the next two years based on our expectation of moderate global economic growth; higher sales of Huntsman's products to such end markets as auto, construction, and aerospace because of continued cyclical recovery, increased product penetration, and supportive regulations affecting demand for insulation; restructuring benefits; and favorable raw material costs in North America. As a result, we believe the company can sustain low double-digit percentage EBITDA margins despite the potential for more subdued results in its titanium dioxide business, which are now cyclically strong. In addition, we believe Huntsman will continue to incrementally reduce debt. Consequently, we think it can achieve and maintain FFO to total adjusted debt above 20% by the end of 2013. This ratio was 17% as of Dec. 31, 2011. We adjust debt to include about $900 million of tax-effected unfunded postretirement liabilities, capitalized operating leases, and environmental liabilities." "We base our assumptions in part on management's goal of reducing net debt to EBITDA to less than 2.5x (which is equivalent to 3.6x total debt to EBITDA after Standard & Poor's adjustments), compared with actual net leverage of 2.8x as of year-end 2011. We believe Huntsman's growth strategy will emphasize incremental capacity expansion, joint ventures, and bolt-on acquisitions as opposed to large, debt-financed transactions that could materially weaken leverage metrics," S&P said. "The ratings reflect Salt Lake City-based Huntsman's 'satisfactory' business risk profile and 'aggressive' financial risk profile," S&P said. "The outlook is stable. We believe Huntsman will attain FFO to debt above 20% by the end of 2013 through a combination of higher earnings and modest debt reduction, and we think business performance and financial policies will keep this ratio at that level. Nevertheless, we could lower the ratings if earnings stagnate or deteriorate because of a deeper and prolonged recession in Europe, or substantial economic deterioration in the U.S. or China, which results in FFO to debt remaining below 20% with no prospects for improvement," S&P said. "We could also lower the ratings if pigment segment earnings suddenly plummet without the expected offsetting improvement in the other segments, or if the company unexpectedly increases debt for a major acquisition or shareholder rewards. Given Huntsman's current business risk profile, an upgrade would require the financial risk profile to strengthen to a degree beyond what we believe management is currently committed to, including FFO to debt above 25% on a sustainable basis," S&P said. ICOP DIGITAL: Court Confirms Plan of Liquidation ------------------------------------------------ The Bankruptcy Court confirmed the plan of liquidation of Digital Systems, Inc., formerly known as ICOP Digital, Inc., on April 26, 2012. The Court finds that applicable provisions of Section 1129 of the Bankruptcy Code have been met. By order of the Court, and pursuant to the Plan, all stock of the Company will be cancelled on July 24, 2012. The Company intends to file a Form 15 to suspend its filing obligations to the Securities and Exchange Commission on the Effective Date. As reported by the TCR on Feb. 29, 2012, the Plan, provides, in general, that after payment of allowed administrative expense claims and allowed priority tax claims, the net proceeds realized from the collection of the Debtor's assets will be disbursed to the Debtor's unsecured creditors. Claims of the unsecured creditors were estimated in the amount of $1.85 million. A copy of the Confirmation Order is available for free at: http://is.gd/rQ77zF About ICOP Digital Founded in 2002, ICOP Digital Inc. sells surveillance equipment for law enforcement agencies. Lenexa, Kansas-based ICOP Digital filed for Chapter 11 protection in Kansas City (Bankr. D. Kan. Case No. 11-20140) on Jan. 21, 2011. In its schedules, the Debtor disclosed assets of $1.67 million and debt of $2.74 million. The balance sheet as of Sept. 30, 2010, had assets on the books for $6.7 million and total debts of $4.3 million. Joanne B. Stutz, Esq., at Evans & Mullinix PA, in Shawnee, Kansas, serves as the Debtor's bankruptcy counsel. The Debtor has been renamed as of March 14, 2011, to Digital Systems, Inc. Digital Systems filed with the Court a Disclosure Statement explaining its Plan of Liquidation on Feb. 14, 2012. The Company's balance sheet at Jan. 31, 2012, showed $318,700 in total assets, $1.27 million in total liabilities, and a $959,000 total deficit. INDEPENDENCE TAX: Continues to Engage Raich Ende as Accountants --------------------------------------------------------------- Independence Tax Credit Plus L.P. II was notified that its independent registered public accounting firm, Trien Rosenberg Weinberg Ciullo & Fazzari LLP, merged its practice with that of Raich Ende Malter & Co. LLP and the combined practice operates under the name Raich Ende Malter & Co. LLP. The General Partner of the Company has determined that the Company will continue to engage Raich as its independent registered public accounting firm. About Independence Tax Credit Plus L.P. II Based in New York, Independence Tax Credit Plus L.P. II was organized on Feb. 11, 1992, and commenced its public offering on Jan. 19, 1993. The general partner of the Partnership is Related Independence Associates L.P., a Delaware limited partnership. The general partner of Related Independence Associates L.P. is Related Independence Associates Inc., a Delaware Corporation. The ultimate parent of Related Independence Associates L.P. is Centerline Holding Company. The Partnership's business is primarily to invest in other partnerships owning leveraged apartment complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. The Partnership is in the process of developing a plan to dispose of all of its investments. As reported by the TCR on June 30, 2011, Trien Rosenberg Weinberg Ciullo & Fazzari LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that at March 31, 2011, the Partnership's liabilities exceeded assets by $27,415,490 and for the year then ended incurred net income of $15,984,571, including gain on sale of properties of $20,284,069 and loss on impairment of properties of $1,047,336. Partnership management fees of approximately $4,930,000 will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all other Partnership liabilities have been made and after the Limited Partners have received a 10% return on their capital contributions. As such, the General Partner cannot demand payment of these deferred fees beyond the Partnership's ability to pay them. In addition, where the Partnership has unpaid partnership management fees related to sold properties, such management fees are written off and recorded as capital contributions. Independence Tax's balance sheet as of Dec. 31, 2011, showed $13.09 million in total assets, $39.39 million in total liabilities and a $26.30 million total partners' deficit. INDIANAPOLIS DOWNS: To Sell Horse Racing, Casino Business --------------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that Indianapolis Downs LLC has decided to sell its combined horse racing and casino operation to pay back creditors, but if the price isn't right, the company intends to reorganize under the control of lenders, according to Chapter 11 plan documents filed Wednesday. The Shelbyville, Ind.-based company, mired in Delaware bankruptcy court for a year, recently struck a deal with two groups of noteholders to pursue a sale of the profitable but debt-laden racino, according to a disclosure statement on the plan. About Indianapolis Downs Indianapolis Downs LLC operates Indiana Live -- http://www.indianalivecasino.com/-- a combined race track and casino at a state-of-the-art 283 acre Shelbyville, Indiana site. It also operates two satellite wagering facilities in Evansville and Clarksville, Indiana. Total revenue for 2010 was $270 million, representing an 8.7% increase in 2009. The casino captured 53% of the Indianapolis market share. In July 2001, Indianapolis Downs was granted a permit to conduct a horse track operation in Shelvyville, Indiana, and started operating the track in 2002. It was granted permission to operate the casino at the racetrack operation in May 2007. The casino began operations in July 2010. Indianapolis Downs and subsidiary, Indianapolis Downs Capital Corp., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-11046) in Wilmington, Delaware, on April 7, 2011. Indianapolis Downs estimated $500 million to $1 billion in assets and up to $500 million in debt as of the Chapter 11 filing. According to a court filing, the Debtor owes $98,125,000 on a first lien debt. It also owes $375,000,000 on secured notes and $72,649,048 on subordinated notes. Matthew L. Hinker, Esq., Scott D. Cousins, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP in Wilmington, Delaware, have been tapped as counsel to the Debtors. Christopher A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware, is the conflicts counsel. Lazard Freres & Co. LLC is the investment banker. Bose Mckinney & Evans LLP and Bose Public Affairs Group LLC serve as special counsel. Kobi Partners, LLC, is the restructuring services provider. Epiq Bankruptcy Solutions is the claims and notice agent. INFUSYSTEM HOLDINGS: Kleinheiz Capital Holds 8.7% Equity Stake -------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Kleinheinz Capital Partners, Inc., disclosed that, as of April 24, 2012, they beneficially own 1,861,480 shares of common stock of InfuSystem Holdings, Inc., representing 8.7% of the shares outstanding. A copy of the filing is available for free at http://is.gd/jXwjzJ About InfuSystem Holdings InfuSystem Holdings, Inc., operates through operating subsidiaries, including InfuSystem, Inc., and First Biomedical, Inc. InfuSystem provides infusion pumps and related services. InfuSystem provides services to hospitals, oncology practices and facilities and other alternate site healthcare providers. Headquartered in Madison Heights, Michigan, InfuSystem delivers local, field-based customer support, and also operates pump service and repair Centers of Excellence in Michigan, Kansas, California, and Ontario, Canada. The Company reported a net loss of $45.44 million in 2011, compared with a net loss of $1.85 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $76.26 million in total assets, $36.09 million in total liabilities, and $40.16 million in total stockholders' equity. After auditing the Company's 2011 financial statements, Deloitte & Touche LLP, in Detroit, Michigan, said that the possibility of a change in the majority representation of the Board and consequent event of default under the Credit Facility, which would allow the lenders to cause the debt of $24.0 million to become immediately due and payable, raises substantial doubt about the Company's ability to continue as a going concern. INTERFACE INC: Moody's Says Restructuring Credit Positive --------------------------------------------------------- Moody's Investors Service says Interface, Inc.'s operational restructuring and bond redemption are credit positives, but will not impact the company's ratings or outlook. As reported by the Troubled Company Reporter on Jan. 11, 2012, Moody's Investors Service upgraded the corporate family and probability of default ratings of Interface to Ba3 from B1. Concurrently, Moody's raised the rating on the $275 million senior unsecured notes due 2018 to B1 from B2 and assigned an SGL-2 speculative grade liquidity rating. The outlook is stable. These ratings were upgraded: Corporate Family Rating to Ba3 from B1; Probability of Default Rating to Ba3 from B1; and $275 million Senior Unsecured Notes due 2018 to B1 (LGD4, 62%) from B2 (LGD4, 64%). This rating was assigned: Speculative Grade Liquidity Rating of SGL-2. These ratings were withdrawn (see Moody's withdrawal policy on Moodys.com): B1 (LGD3, 42%) on the $8 million senior secured notes due 2013; and B3 (LGD5, 82%) on the $12 million senior subordinated notes due 2014. Interface, Inc., based in Atlanta, Georgia, designs, produces and sells modular carpet and designer-oriented broadloom carpet. Brand names include InterfaceFLOR, FLOR, Heuga, Bentley Prince Street, Prince Street House and Home and Intersept. Revenues for the twelve months ended April 1, 2012 were approximately $1 billion. INTERNAL FIXATION: Henry Brown Succeeds Laura Cattabriga as CFO --------------------------------------------------------------- Laura Cattabriga, chief financial officer and secretary of Internal Fixation Systems, Inc., and Kenneth West, a founder of the Company and its Vice President Sales and a member of the Company's Board of Directors, each resigned from all of their positions with the Company, effective April 24, 2012. In connection with Ms. Cattabriga's resignation, the Company appointed Henry Brown, CPA as the Company's Chief Financial Officer and Secretary. Henry Brown, CPA, 63, is a CPA licensed in Florida and New York and is a Fellow of the Healthcare Financial Management Association. From September 2008 through February 2012, Mr. Brown was the Chief Financial Officer of Westchester General Hospital, a 160 bed hospital located in Miami Florida. From October 2007 through September 2008, he was the Interim Financial Performance Director at The Hospital Doctor, LLP a healthcare consulting company and from February 2007 through September 2007, Mr. Brown was the Chief Financial Officer of Chesapeake General Hospital, a 260 bed hospital located in Chesapeake, Virginia. From February 2005 until February 2007, Mr. Brown was retained by Pan American Hospital, a nonprofit hospital in Miami Florida to guide it through the resolution of its Chapter 11 bankruptcy which commenced in March 2004 and was discharged in February 2007. On April 24, 2012, the Company entered into an agreement with Henry Brown whereby Mr. Brown has been retained by the Company as its Chief Financial Officer. Under the terms of the agreement, Mr. Brown is entitled to receive an annual salary of $125,000 and certain employee benefits, including a car allowance of $650 per month. One half of such salary will be paid in cash, and the remainder will be paid in shares of our Common Stock at $.50 per share, until the Company's cash flow supports payment in cash only. Under the letter agreement, the Company granted to Mr. Brown the right to acquire 100,000 shares of the Company's Common Stock at $1.00 per share, which right vests in two equal installments of 33,333 shares and one installment of 33,334 shares with the first installment vesting on April 24, 2013, the second installment vesting on April 24, 2014 and the third installment vesting on April 24, 2015, with each installment exercisable for three years from the date of vesting. 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. The Company reported a net loss of $3.45 million in 2011, compared with a net loss of $781,440 in 2010. The Company's balance sheet at Dec. 31, 2011, showed $1.78 million in total assets, $1.66 million in total liabilities and $117,298 in total stockholders' equity. After auditing the Company's financial results for 2011, Goldstein Schechter Koch P.A., in Hollywood, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a net loss in 2011 and 2010. Additionally, the Company has an accumulated deficit of approximately $4.21 million and a working capital deficit of approximately $683,500 at Dec. 31, 2011, and is unable to generate sufficient cash flow to fund current operations. JAMES RIVER: Two Directors Elected at Annual Meeting ---------------------------------------------------- James River Coal Company held its annual meeting of shareholders in Richmond, Virginia, on April 23, 2012. The Board of Directors' nominees for director of the Company were elected. The elected directors' terms will expire in 2015. The elected directors are Ronald J. FlorJancic and Joseph H. Vipperman. The non-binding resolution to approve the compensation of the Company's named executive officers was approved. The shareholders vote was approved on an advisory basis. The Company's 2012 Equity Incentive Plan was approved. The stockholders ratified the appointment of KPMG LLP as the Company's independent registered public accounting firm for 2012. About James River Headquartered in Richmond, Virginia, James River Coal Company (NasdaqGM: JRCC) -- http://www.jamesrivercoal.com/-- mines, processes and sells bituminous steam and industrial-grade coal primarily to electric utility companies and industrial customers. The company's mining operations are managed through six operating subsidiaries located throughout eastern Kentucky and in southern Indiana. The Company reported a net loss of $39.08 million in 2011, compared with net income of $78.16 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $1.40 billion in total assets, $1 billion in total liabilities and $396.66 million in total shareholders' equity. * * * In March 2012, Standard & Poor's Ratings Services lowered its corporate credit rating on James River to 'B-' from 'B'. "The downgrade and ongoing CreditWatch listing reflect our view that James River Coal's 2012 operating performance will be lower than we previously expected," said Standard & Poor's credit analyst Megan Johnston. "We believe that demand for thermal coal will continue to be negatively affected by natural gas substitution and recent warmer weather trends. Absent increasing natural gas prices or a warmer-than-normal summer, thermal coal prices may continue to decline to lower levels than we previously anticipated." In April 2012, Moody's Investors Service affirmed the company's B3 corporate family rating (CFR) and SGL-3 speculative grade liquidity rating, indicating an adequate liquidity position. The B3 CFR is principally constrained by a high cost position, high leverage, meaningful decrease in thermal coal prices, and likelihood of margin compression in thermal coal business as existing contracts roll off over the next year. The ratings also consider relatively high thermal coal inventories and generally stagnant coal demand at the power utilities. JB FLEX: Can Renew Restaurant Lease in Cincinnati ------------------------------------------------- Bankruptcy Judge Burton Perlman ruled that a debtor's Notice of Renewal was sufficient to renew the lease for its restaurant. J.B. Flex, Inc. operates Take 5 Bar and Grill and carries on its business in premises located at 6945 Harrison Avenue, in Cincinnati, Ohio, pursuant to a Lease from HOCO Taylor Creek, LLC. Prior to the bankruptcy filing, creditor Merchants Bank filed a foreclosure action in the Hamilton County Common Pleas Court, of Ohio. In that action, Merchants Bank moved for appointment of a Receiver. James Collier, on Nov. 1, 2011, was appointed receiver. He has been operating the Debtor's business since his appointment. He was recognized by the Bankruptcy Court as Debtor in Possession. The pre-filing debtor entity was owned by Paul Walpole, John Walpole, and a third party. The Equity Holders maintain their status as owners and guarantors of the Debtor. On Feb. 6, 2012, the Debtor filed a Motion with memorandum to Assume Real Property Lease Including Option to Renew related to the Premises occupied by the Debtor. The Lessor filed a Memorandum in Opposition to the Motion. Judge Perlman said there was an honest mistake on the part of the Debtor, and there is no evidence of prejudice to the Lessor. "We hold the Lease to be valid and in effect, and Debtor's Motion to Assume Real Property Lease Including Option to Renew will be granted," Judge Perlman said. A copy of the Court's April 25, 2012 decision is available at http://is.gd/wk40KMfrom Leagle.com. About JB Flex J.B. Flex Inc., dba Take 5 Bar and Grill, filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio Case No. 12-10526) on Feb. 6, 2012, estimating under $1 million in both assets and debts. A copy of the petition is available at http://bankrupt.com/misc/ohsb12- 10526.pdf Philomena S. Ashdown, Esq., at Strauss Troy, serves as the Debtor's counsel. JOSABI NY: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Josabi NY, LLC 615 Baltic Street Brooklyn, NY 11217 Bankruptcy Case No.: 12-42985 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Nancy Hershey Lord Debtor's Counsel: Bruce Weiner, Esq. ROSENBERG MUSSO & WEINER LLP 26 Court Street, Suite 2211 Brooklyn, NY 11242 Tel: (718) 855-6840 Fax: (718) 625-1966 E-mail: rmwlaw@att.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its four largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nyeb12-42985.pdf The petition was signed by Domenick Tonacchio, managing member. KERZNER INT'L: Completes $2.3-Billion Debt Restructuring -------------------------------------------------------- Kaitlin Ugolik at Bankruptcy Law360 reports that Kerzner International Holdings Ltd. said Friday it has completed a $2.3 billion debt restructuring that included transferring the ownership of its flagship Atlantis properties in the Bahamas and Dubai to Brookfield Asset Management and Istithmar World PJSC, respectively. Law360 relates that the transactions come at the end of a monthslong process that included litigation between Kerzner noteholders and Brookfield over the proper restructuring of the company's debt. Kerzner International is the owner of several luxury getaways. The Atlantis resort in the Bahamas, Kerzner's flagship property, is one of the most popular resorts in North America. KIEBLER RECREATION: Ch.11 Trustee Seeks Chapter 7 Conversion ------------------------------------------------------------ David O. Simon, the Chapter 11 Trustee in the Chapter 11 case of Peek'n Peak Resort, filed with the U.S. Bankruptcy Court a motion to covert the Chapter 11 case of the Debtor to Chapter 7. The Trustee said given the current state of the Debtor -- substantially all of the assets have been sold and all of the leases under which the Debtor did business have been assumed by and assigned to the purchasers -- there currently is no business around which to reorganize the Debtor. The hearing on the Chapter 11 Trustee's motion is set for May 10, 2012, at 10:30 a.m. at H.M. Metzenbaum. About Kiebler Recreation Peek'n Peak Resort -- http://www.pknpk.com/-- is a recreational and leisure facility in Findley Lake, New York. Kiebler Recreation, LLC, dba Peek'n Peak Resort, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ohio Case No. 10-15099) on May 26, 2010. Robert C. Folland, Esq., at Thompson Hine LLP, has withdrawn as counsel to the Debtor. The Company estimated assets and debts at $10 million to $50 million as of the Petition Date. David O. Simon was appointed by the U.S. Trustee as acting bankruptcy trustee to the Debtor on June 8, 2011. Kohrman, Jackson & Krantz P.L.L. serves as counsel to the Trustee. The bankruptcy trustee tapped Jones Lang LaSalle Americas, Inc., as investment banker/business broker to market the Debtor's assets. The Debtor's case was transferred from Judge Randolph Baxter to Judge Pat E. Morgenstern-Clarren effective Aug. 16, 2011. In September 2011, the Bankruptcy Court authorized the Chapter 11 Trustee for Kiebler Recreation, to sell substantially all of the Debtor's assets, except for the Fairways Condominiums. Scott Enterprises, an Erie, Pa.-based hospitality development company, emerged as the top bidder for the Peek'n Peak Resort. Scott submitted the top bid of $11.3 million. The Chapter 11 trustee separately struck a deal with lender PNC Bank to sell certain real property and personal property known as the Fairways Condominiums contiguous to and part of the Peek 'N Peak Resort, located in French Creek, New York. An affiliate, Kiebler Slippery Rock, LLC, filed a separate petition (Bankr. N.D. Ohio Case No. 09-19087) on Sept. 25, 2009. The Committee of Unsecured Creditors of Kiebler Slippery Rock obtained confirmation of a liquidating plan on Jan. 31, 2011, and the case was closed pursuant to a final decree effective March 29, 2011. Chardon, Ohio-based Kiebler Slippery Rock was represented by Andrew L. Turscak Jr., Esq., Mark A. Weintraub, Esq., and Robert C. Folland, Esq., at Thompson Hine LLP. The Debtor estimated assets and debts at $10 million to $50 million. KGHM INT'L: Moody's Lowers Corp. Family Rating to 'B3' ------------------------------------------------------ Moody's Investors Service downgraded corporate family rating (CFR) and probability of default rating of KGHM International LTD (KGHMI, formerly known as Quadra FNX Mining Ltd.) to B3 from B1, and affirmed the B1 rating on its senior unsecured notes. Moody's affirmed the company's Speculative Grade Liquidity (SGL) rating of SGL-1. The outlook is stable. The rating actions reflect expected changes in KGHMI's credit profile and capital structure following its acquisition by KGHM Polska Miedz S.A. (KGHM) effective March 5th, 2012. Moody's took the following rating actions: Downgrades: Issuer: KGHM International LTD Probability of Default Rating, Downgraded to B3 from B1 Corporate Family Rating, Downgraded to B3 from B1 Affirmations: Issuer:KGHM International LTD Senior Unsecured Regular Bond/Debenture, B1 LGD2, 24% Outlook Actions: Issuer: KGHM International LTD Outlook, Changed To Stable From Developing Pursuant to change of control provisions governing KGHMI's existing $500 million 7.75% senior notes, KGHMI made an offer to redeem all of the outstanding notes at the price equal to 101% of principal, plus any accrued and unpaid interest. The offer expires on May 3, 2012. If all of KGHMI's debt is redeemed at that time, Moody's would withdraw Moody's ratings. Ratings Rationale The downgrade of KGHMI's CFR to B3 from B1 reflects the $1.8 billion in additional intercompany debt that will be assumed following the acquisition. The acquiring subsidiary of KGHM (Acquireco) assumed the intercompany debt, owed to another subsidiary of KGHM, in order to consummate the acquisition. Following the acquisition, Acquireco will amalgamate with KGHMI, and the resulting entity will succeed to all obligations of KGHMI and Acquireco, including the existing notes and the subordinated intercompany debt. This intercompany debt will significantly increase the company's leverage metrics and will potentially weigh on future cash flows. As of December 31, 2011, KGHMI's Debt/ EBITDA, pro-forma for the transaction, stood at 8x. That said, the ratings reflect Moody's expectation that the intercompany debt will be subordinated to all existing and future senior debt, will mature at least six months after the existing notes, and will bear interest payable in-kind or in cash at the option of KGHMI. KGHM, the parent company, is a diversified metals mining company domiciled in Poland. Prior to the acquisition, its primary activities consisted of operating three underground copper mines and three smelters. During the year ended December 31, 2011, KGHM reported PLN 22 billion in revenues and PLN 9 billion in cash from operations. Despite the relative scale and cash generating capacity of the parent and the implicit potential for parent's support in the event additional cash infusion becomes necessary to complete the Sierra Gorda project, the ratings reflect the lack of explicit parent guarantee, assumption, nor cross-default of KGHMI's debt. The B1 rating on senior unsecured notes, two notches above the CFR, reflects their expected position in the capital structure above the new subordinated intercompany debt. The ratings also reflect adequate protection afforded to the existing bond holders by the senior unsecured notes' covenant package, including provisions governing affiliate transactions. KGHMI's B3 CFR continues to reflect its limited diversity and modest size, as well as the relatively short reserve life of the existing mines. In addition the rating considers the dependence on Robinson and Morrison mines for a significant portion of its copper production, high cost production profile at a number of the company's mines, and the geologic complexity and mineral variation at the Robinson mine, a significant revenue and earnings contributor. The company will be burdened with high pro-forma debt leverage and weak interest coverage. However, the rating acknowledges the company's substantive cash position, which will support its substantive capital investments over the next few years, particularly the development of the Sierra Gorda copper project in Chile in a joint venture with Sumitomo, as the company looks to achieve its strategic growth objectives. This cash position will accommodate negative free cash flow generation over the next 12 to 15 months. Notwithstanding the solid liquidity, the operating risks, short lived production profile at currently operating mines, and higher cost position are key rating drivers. The company's SGL-1 rating reflects its strong liquidity position. The company currently has over $1 billion of cash at December 31, 2011. The company's liquidity is derived from its operating cash flow generating capacity at current copper and precious metal prices. However, Moody's anticipates a reduction in cash balances over the next several years, due to the required contributions to the Sierra Gorda joint venture. Nonetheless, liquidity is expected to remain strong enough to support ongoing requirements. The stable outlook reflects Moody's positive view on market fundamentals for copper and Moody's expectation the company's liquidity position will remain strong over the rating horizon. Upward rating pressure is limited at this time due to KGHMI's significant debt burden including intercompany debt, as well as substantive capital expenditures required over the next several years. That said, the ratings could be upgraded should the parent company demonstrate sufficient track record of providing support to KGHMI and as the Sierra Gorda project nears completion. The ratings could be lowered if KGHMI experiences any significant operational difficulties or if capital requirements for Sierra Gorda increase more than is currently anticipated. In addition, if their liquidity position rapidly deteriorates or if copper prices decline significantly from current levels, the rating could come under pressure. The principal methodology used in rating KGHMI was the Global Mining Industry Methodology published in May 2009. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. KINDER MORGAN: S&P Rates $13.5 Billion Debt Facilities 'BB' ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' rating and its '4' recovery rating to Houston-based midstream energy company Kinder Morgan Inc.'s (KMI) $1.75 billion senior secured revolving credit facility, $6.8 billion 364-day revolving credit facility, and $5 billion three-year term loan. "We also removed Kinder Morgan Finance Co. ULC's secured debt rating from CreditWatch with developing implications," S&P said. "Our ratings on KMI reflect the company's 'strong' business risk profile and 'aggressive' financial risk profile," said Standard & Poor's credit analyst William Ferara. "KMI's credit quality centers on its ownership of Kinder Morgan G.P. Inc., the general partner of master limited partnership Kinder Morgan Energy Partners L.P. (KMP; BBB/Stable/A-2), a leading provider of midstream energy services, bulk product storage, and oil production. As of Dec. 31, 2011, KMI had about $3.2 billion of debt,"" S&P said. "We expect that KMI's pending acquisition of El Paso Corp. for $38 billion to close in late May. Following the acquisition, KMI will have an impressive business risk profile, but worsening financial metrics. The combination will create the fourth-largest energy company in North America, with the largest natural gas pipeline network by a significant margin," S&P said. "Our outlook on KMI's ratings is stable. KMI's pro forma size and improved cash flow profile balance the material amount of acquisition debt and degradation in credit metrics. Execution on KMI's deleveraging plan may ultimately lead to a higher rating, although we would not expect a positive ratings action for at least 12 months. The likelihood of a downgrade is low because we believe that the 'BB' rating appropriately captures the risk of a somewhat delayed deleveraging plan," S&P said. LEXINGTON CONSULTING: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Lexington Consulting, Inc. 180 La Montagne Ct. Los Gatos, CA 95032 Bankruptcy Case No.: 12-53153 Chapter 11 Petition Date: April 26, 2012 Court: United States Bankruptcy Court Northern District of California (San Jose) Judge: Stephen L. Johnson Debtor's Counsel: Charles B. Greene, Esq. LAW OFFICES OF CHARLES B. GREENE 84 W Santa Clara St. #770 San Jose, CA 95113 Tel: (408) 279-3518 E-mail: cbgattyecf@aol.com Scheduled Assets: $8,900,225 Scheduled Liabilities: $8,200,500 A copy of the Company's list of its two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb12-53153.pdf The petition was signed by James Rogers. LIGHTSQUARED INC: Creditors Extend Talks for Another Week --------------------------------------------------------- Matthew Goldstein and Sinead Carew, writing for Reuters, report that source familiar with the matter said LightSquared Inc. is avoiding a default for now on about $1.6 billion of debt after creditors agreed to extend negotiations for a week. According to Reuters, sources said the holders of LightSquared's debt, who include billionaire investor Carl Icahn and hedge fund manager David Tepper, had given Philip Falcone's Harbinger Capital until 10 a.m. Monday to strike a deal for restructuring Harbinger's 96% equity control of LightSquared. Reuters relates the debt holders were threatening to declare a default on the loan in the absence of a deal by Monday morning, which could have forced a bankruptcy. "Both sides have agreed to a one-week extension to negotiations," the source said on Sunday, according to Reuters. Meanwhile, Mike Spector at The Wall Street Journal and Greg Bensinger at Dow Jones Newswires reported that people familiar with the negotiations said Mr. Falcone has agreed to step aside eventually as the public face of LightSquared as a concession that may keep the company from defaulting on its debt. According to Messrs. Spector and Bensinger, the sources also said if a deal is finalized, Mr. Falcone and LightSquared's lenders plan to continue negotiations for a longer extension of somewhere between 18 months and two years. The sources also said LightSquared's board was deliberating Sunday on whether to approve the deal, which would keep the company from filing for bankruptcy protection, at least for now. Messrs. Spector and Bensinger also report that a person close to LightSquared cautioned late Sunday that a final agreement may not be reached, and a bankruptcy filing was still possible. On Saturday, WSJ's Mr. Spector and Dow Jones' Mr. Bensinger reported that people familiar with the matter said LightSquared's lenders want Mr. Falcone, the founder of Harbinger Capital Partners LLC and LightSquared's main backer -- to step away from the company as a condition for avoiding a looming debt default this week. Reuters notes other debt holders include hedge funds Fortress Investment Group, Knighthead Capital Management, Redwood Capital Management and investment firm Capital Research and Management Co. Last week, Reuters reported that the debt holders had joined forces and engaged bankruptcy attorney Thomas Lauria, Esq., who heads White & Case's global restructuring group. Reuters relates Mr. Lauria did not respond to e-mails or phone calls seeking comment on the negotiations between debt holders and Mr. Falcone. According to Reuters, the debt holders increasingly see Mr. Falcone as an obstacle to negotiating with the Federal Communications Commission and opponents of the company, some of whom contend LightSquared's planned nationwide high-speed wireless network will interfere with global positioning systems used by the U.S. Department of Defense, the aviation industry and other businesses. Reuters further notes a number of representatives for some of the hedge funds that own LightSquared's debt have said in interviews over the past few weeks that Mr. Falcone needs to greatly reduce his hedge fund's equity stake in the company and relinquish control over decision-making authority. The sources, Messrs. Spector and Bensinger also report, said that as part of a short-term deal, Mr. Falcone would agree to make LightSquared a "bankruptcy-remote" company through provisions that would make it difficult for the wireless communications firm to seek Chapter 11 protection. Lenders have proposed Mr. Falcone be personally liable if it can be demonstrated that he supported, encouraged or caused a LightSquared bankruptcy at a later date, the people said. That liability -- known in restructuring circles as a "bad boy" clause -- could result in Mr. Falcone repaying the lenders' $1.6 billion in debt from his own pocket, one of the people said. Messrs. Spector and Bensinger also report, said the deal may include a so-called "golden chair" provision that would install a director, or directors, on LightSquared's board who could block any vote authorizing a bankruptcy filing, another person familiar with the situation said. Messrs. Spector and Bensinger note that LightSquared still has ample cash and some valuable assets that could lead to the formation of an equity committee that could litigate on behalf of Mr. Falcone and other owners. Usually companies filing for bankruptcy have no equity value, leaving only creditor committees to form. Messrs. Spector and Bensinger further point out LightSquared's lenders hold enough debt to block a reorganization plan they dislike, giving them leverage over Mr. Falcone. About LightSquared Inc. LightSquared Inc. -- http://www.lightsquared.com/-- is a company that plans to develop a wholesale 4G LTE wireless broadband communications network integrated with satellite coverage across the United States. But the plan hit a roadblock when the U.S. military and others complained that the planned service would disrupt global positioning system equipment. Phillip Falcone's Harbinger Capital Partners owns roughly a 96% equity stake in LightSquared. LightSquared is facing an April 30 deadline to renegotiate the terms of the loan in order to head off a potential default that would spur a bankruptcy filing. Reuters notes LightSquared's recently filed financial statements indicate the balance sheet has about $282 million in cash and short-term investments against $1.85 billion in liabilities. The financial statement lists about $453 million in debt payments due by the end of 2012. LightSquared has said there is "substantial doubt about our ability to continue as a going concern." Potential Bankruptcy Filing In early April 2012, Phil Falcone said he is considering seeking bankruptcy protection for LightSquared Inc. A bankruptcy filing is "one of the options I am considering," the hedge fund manager said in an e-mail to Dow Jones, saying it's the "best way" for him to maintain control of the company. "Spectrum value does not decrease in bankruptcy," he said. LIQUIDMETAL TECHNOLOGIES: Issues $300,000 P-Note to Vesser ---------------------------------------------------------- Liquidmetal Technologies, Inc., issued a bridge promissory note to Visser Precision Cast, LLC, in the aggregate principal amount of $300,000. The April Note is unsecured and is due and payable on demand within three days after the Company receives notice of payment from Visser. The April Note will bear interest at a rate of 8% per annum, increasing to 15% per annum following any failure to pay principal or accrued and unpaid interest on demand in accordance with the terms of the April Note. About Liquidmetal Technologies Based in Rancho Santa Margarita, Calif., Liquidmetal Technologies, Inc. and its subsidiaries are in the business of developing, manufacturing, and marketing products made from amorphous alloys. Liquidmetal Technologies markets and sells Liquidmetal(R) alloy industrial coatings and also manufactures, markets and sells products and components from bulk Liquidmetal alloys that can be incorporated into the finished goods of its customers across a variety of industries. The Company also partners with third- party licensees and distributors to develop and commercialize Liquidmetal alloy products. The Company disclosed net income of $6.15 million on $972,000 of total revenue in 2011, compared with a net loss of $17.64 million on $20.56 million of total revenue in 2010. The Company's balance sheet at Dec. 31, 2011, showed $1.99 million in total assets, $4.21 million in total liabilities, and a $2.22 million in total shareholders' deficit. After auditing the 2011 financial statements, Choi, Kim & Park, LLP, in Los Angeles, California, said that the Company's significant operating losses and working capital deficit raise substantial doubt about its ability to continue as a going concern. LPATH INC: Files Amendments to Class A Common Shares Offerings -------------------------------------------------------------- LPath, Inc., filed with the U.S. Securities and Exchange Commission post-effective amendments to its registration statements on Form S-1 relating to the resale by certain selling security holders of Lpath, Inc., of up to: -- 10,606,096 shares of the Company's Class A common stock; -- 9,255,582 shares of Class A common stock; and -- 25,685,850 shares of Class A common stock. The Company's Class A common stock is traded on the OTC Bulletin Board under the symbol "LPTN." On April 20, 2012, the closing sale price of the Company's Class A common stock on the OTC Bulletin Board was $0.81 per share. Copies of the amended Form S-1 are available for free at: http://is.gd/f71PNv http://is.gd/0xPnrv http://is.gd/kXr685 About Lpath, Inc. San Diego, Calif.-based Lpath, Inc. is a biotechnology company focused on the discovery and development of lipidomic-based therapeutics, an emerging field of medical science whereby bioactive lipids are targeted to treat human diseases. The Company reported a net loss of $3.11 million in 2011, compared with a net loss of $4.60 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $17.94 million in total assets, $17.31 million in total liabilities and $629,024 in total stockholders' equity. LSSR, LLC: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------- Debtor: LSSR, LLC 11600 SW Shilo Lane Portland, OR 97225 Bankruptcy Case No.: 12-24557 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Vincent P. Zurzolo Debtor's Counsel: David B. Golubchik, Esq. LEVENE NEALE BENDER RANKIN & BRILL LLP 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 E-mail: dbg@lnbrb.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its two largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/cacb12-24557.pdf The petition was signed by Christopher Campbell, authorized agent. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- In re Shilo Inn, Seaside Oceanfront, LLC 11-34669 06/11/11 LV BLVD: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------ Debtor: LV Blvd Casino Center FF370 LLC dba Tod Motor Motel And Hostel 3041 W. Horizon Ridge Parkway, Suite 155 Henderson, NV 89052 Bankruptcy Case No.: 12-14838 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: Thomas H. Fell, Esq. GORDON SILVER 3960 Howard Hughes Parkway, 9th Floor Las Vegas, NV 89169 Tel: (702) 796-5555 Fax: (702) 369-2666 E-mail: tfell@gordonsilver.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nvb12-14838.pdf The petition was signed by Laura C. Lychock, managing member of LST Investment LLC. MAJESTIC CAPITAL: First Amended Chapter 11 Plan Confirmed --------------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court confirmed Majestic Capital's First Amended Chapter 11 Plan. "The Plan is designed to (i) facilitate the orderly wind-down of the Debtors and their two non-debtor insurance company affiliates, (ii) facilitate the resolution of more than 2000 claims filed against the Debtors in an orderly and expeditious format and to (iii) provide an effective mechanism for the distribution of the Debtors assets to holders of allowed claims," according to documents filed with the Court obtained by BankruptcyData.com. 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. MASTRO RESTAURANTS: S&P Raises Corporate Credit Rating to 'B-' -------------------------------------------------------------- Standard & Poor's Services raised its corporate credit rating on Woodland Hills, Calif.-based Mastro's to 'B-' from 'CCC'. The outlook is stable. "At the same time, we raised our issue-level rating on Mastro's $100 million senior secured notes to 'B-' from 'CCC'. The recovery rating on these notes remains unchanged at '4', indicating our expectation for an average (30% to 50%) recovery of principal in the event of a payment default," S&P said. "Our ratings on Mastro's Restaurants LLC reflect our anticipation that the company will maintain 'adequate' liquidity as it continues to benefit from profitability gains," said Standard & Poor's credit analyst Mariola Borysiak. "This improved liquidity is partly due to the recent $8 million equity contribution from the company's sponsor. This equity infusion allowed the company to repay outstanding balances under the revolver and provides greater flexibility for future expansion plans," S&P said. "We view Mastro's financial risk profile as 'highly leveraged' and anticipate that credit measures will remain characteristic of this category in the near term. Despite recent profitability gains, total debt to EBITDA remained elevated at about 11x on Dec. 28, 2011 and EBITDA coverage of interest was thin at only about 0.9x. We anticipate only modest improvement of these measures during 2012, mainly from EBITDA growth, because debt levels will continue to increase as a result of accruing interest on the company's seller note, accruing dividends on the preferred equity, and higher lease commitments related to new restaurant openings," S&P said. "The stable outlook reflects the company's improving profitability and our expectations for modest revenue and EBITDA growth over the next 12 months. It also reflects our expectations that Mastro's will maintain adequate liquidity and modestly improve its credit measures," S&P said. "We could lower our ratings if increasing competition, a weak economic recovery, and decreasing customer spending lead to restrained profitability, resulting in deterioration of liquidity such that its sources would not be sufficient to cover its uses for the next 12 months. Although unlikely in the next 12 months, we could upgrade Mastro's if leverage declines to less than 6x, which would result from significant EBITDA growth, as we do not expect any substantial debt reduction in the near future," S&P said. MOLSON COORS: S&P Gives 'BB+' Debt Securities Subordinated Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'BBB-' senior unsecured rating and its preliminary 'BB+' subordinated rating to Denver- and Montreal-based Molson Coors Brewing Co.'s shelf registration of debt securities. "In addition, we assigned Molson Coors' proposed senior unsecured notes our 'BBB-' issue- level rating. Molson Coors will issue the offering under the company's shelf registration, and we expect it to total about $1.9 billion and comprise a five-year, 10-year, and 30-year tranche (actual amounts and maturity dates are to be finalized at the close of the transaction). The company intends to use net proceeds from this offering to partially fund its pending acquisition of StarBev L.P., a leading Central and Eastern European brewing company," S&P said. "At the same time, we have affirmed our 'BBB-' rating on the company's existing senior unsecured debt and removed it from CreditWatch, where it was placed with negative implications on April 3, 2012, following the company's announcement that it agreed to acquire StarBev for EUR2.65 billion (about $3.5 billion). The CreditWatch placement reflected limited information on the company's pro forma capital structure at the time of the acquisition announcement, which was necessary to determine if there was any structural subordination for the issue-level ratings. The 'BBB-' rating on the Molson Coors' senior unsecured debt is at the same level as our 'BBB-' corporate credit rating on the company because certain of the company's Canadian and U.K. subsidiaries will unconditionally guarantee the existing and proposed unsecured debt," S&P said. "The corporate credit rating on Molson Coors is 'BBB-' and the rating outlook is negative. The rating reflects our assessment of the company's business risk profile as 'satisfactory' and its financial risk as 'significant.' Key credit factors in our business risk assessment include Molson Coors' position as an international brewer, its geographic diversity, good brand recognition, and historically good cash flow generation, despite challenging industry conditions within the existing mature, low- growth, and seasonal markets in which it competes. The addition of StarBev will provide some additional diversification in terms of geography and brands, as well as access to faster-growing developing markets. Our assessment of Molson Coors' significant financial risk incorporates expected weaker pro forma financial ratios. We estimate leverage (as measured by the ratio of total debt to EBITDA) to be weak in 2012, yet improve to about 4x by the end of 2013. We also estimate that funds from operations to total debt will rise to 20% by this time, assuming all discretionary cash flows are applied to debt over the near-to-intermediate term. These metrics would be consistent with a 'significant' financial risk profile as per our criteria," S&P said. RATINGS LIST Molson Coors Brewing Co. Corporate Credit Rating BBB-/Negative/-- Ratings Off CreditWatch To From Molson Coors Brewing Co. Coors Brewing Co. Molson Coors Capital Finance ULC Molson Coors International LP Senior Unsecured debt BBB- BBB-/Watch Neg New Ratings Molson Coors Brewing Co. Senior unsecured $1.9 bil. notes BBB- Molson Coors Brewing Co. Coors Brewing Co. Molson Coors Capital Finance ULC Molson Coors International LP Shelf registration senior unsecured BBB- (Prelim) subordinated BB+ (Prelim) NORTHERN BERKSHIRE: Court Considers Cash Collateral Access Today ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Massachusetts will convene a hearing today, May 2, 2012, at 2:00 p.m. (prevailing Eastern Time), to consider Northern Berkshire Healthcare, Inc., et al.'s continued use of the cash collateral. The Court in an eight interim order, authorized the Debtors' use of the cash collateral until the earliest to occur of: (i) 5:00 p.m. on the date that is two business days after the date of further hearing; (ii) the expiration of the cure period after the delivery of a default notice by the master trustee; and the Effective Date of the Plan. The outstanding principal and interest as of the Petition Date under the Massachusetts Development Finance Agency Bonds and under the master note No. 1 of $13,585,000 in principal and $280,802, respectively. Wells Fargo Bank, National Association is successor to the Bank of New York, as master trustee for the master indenture. The Debtors are using cash collateral to fund their business operations. As adequate protection for any diminution in value of the master trustee's interest, the Debtor will grant the master trustee replacement liens, superpriority administrative claim status, subject to carve out on certain fees. About Northern Berkshire Healthcare Northern Berkshire Healthcare, Inc., is a non-profit healthcare corporation in northern Berkshire County, Massachusetts. Together with its affiliates, Northern Berkshire Healthcare operates the North Adams Regional Hospital and a visiting nurse association and hospice in North Adams, Massachusetts. Northern Berkshire Healthcare, Inc., North Adams Regional Hospital, Inc., Visiting Nurse Association & Hospice of Northern Berkshire, Inc., Northern Berkshire Healthcare Physicians Group, Inc., and Northern Berkshire Realty, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Mass. Case No. 11-31114) on June 13, 2011, to address their overleveraged balance sheet and effect a reorganization of their operations. On the same day, Northern Berkshire Community Services, Inc., filed a petition for Chapter 7 relief also in the District of Massachusetts bankruptcy court. Judge Henry J. Boroff presides over the Debtors' cases. Steven T. Hoort, Esq., James A. Wright, III, Esq., Jonathan B. Lackow, Esq., and Matthew F. Burrows, Esq., at Ropes & Gray LLP, in Boston, Mass., serve as the Debtors' bankruptcy counsel. The Debtors' Financial Advisors are Carl Marks Advisory Group LLC. GCG Inc. serves as claims and noticing agent. Northern Berkshire disclosed $22,957,933 in assets and $53,379,652 in liabilities as of the Chapter 11 filing. The petition was signed by William F. Frado, Jr., president. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to the official unsecured creditors' committee in the Debtors' cases. The Committee tapped Duane Morris LLP as its counsel. As reported in the Troubled Company Reporter on April 12, 2012, Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that the Debtors won the signature of the bankruptcy judge on a confirmation order April 10 approving the Chapter 11 plan. NORTHERN BERKSHIRE: Bulkley Richardson OK'd as Labor Counsel ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Massachusetts authorized Northern Berkshire Healthcare, Inc., et al., to employ Bulkley, Richardson and Gelinas, LLP as special labor counsel. As reported in the Troubled Company Reporter on April 4, 2012, BRG is expected to provide legal services to the Debtors related to labor and employment law, including their union labor contracts, union and collective bargaining agreement related disputes, cases at the Massachusetts Commission Against Discrimination and the National Labor Relations Board, other similar matters, and related labor and employment. The principal attorneys designated to represent the Debtors and their hourly rates are: Name Rate --------------------- --------- Hamilton Doherty, Jr. $335/hour Daniel J. Finnegan $315/hour Jennifer K. Cannon $240/hour The Debtors will reimburse BRG for all other actual and necessary expenses. The Debtors assure the Court that BRG does not have an interest adverse to them with regard to the Labor Matters. About Northern Berkshire Healthcare Northern Berkshire Healthcare, Inc., is a non-profit healthcare corporation in northern Berkshire County, Massachusetts. Together with its affiliates, Northern Berkshire Healthcare operates the North Adams Regional Hospital and a visiting nurse association and hospice in North Adams, Massachusetts. Northern Berkshire Healthcare, Inc., North Adams Regional Hospital, Inc., Visiting Nurse Association & Hospice of Northern Berkshire, Inc., Northern Berkshire Healthcare Physicians Group, Inc., and Northern Berkshire Realty, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Mass. Case No. 11-31114) on June 13, 2011, to address their overleveraged balance sheet and effect a reorganization of their operations. On the same day, Northern Berkshire Community Services, Inc., filed a petition for Chapter 7 relief also in the District of Massachusetts bankruptcy court. Judge Henry J. Boroff presides over the Debtors' cases. Steven T. Hoort, Esq., James A. Wright, III, Esq., Jonathan B. Lackow, Esq., and Matthew F. Burrows, Esq., at Ropes & Gray LLP, in Boston, Mass., serve as the Debtors' bankruptcy counsel. The Debtors' Financial Advisors are Carl Marks Advisory Group LLC. GCG Inc. serves as claims and noticing agent. Northern Berkshire disclosed $22,957,933 in assets and $53,379,652 in liabilities as of the Chapter 11 filing. The petition was signed by William F. Frado, Jr., president. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to the official unsecured creditors' committee in the Debtors' cases. The Committee tapped Duane Morris LLP as its counsel. As reported in the Troubled Company Reporter on April 12, 2012, Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that the Debtors won the signature of the bankruptcy judge on a confirmation order April 10 approving the Chapter 11 plan. NORTHERN BERKSHIRE: Court OKs Denterlein Worldwide Employment ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Massachusetts authorized Northern Berkshire Healthcare, Inc., et al., to employ Denterlein Worldwide, Inc., as communications consultant, nunc pro tunc to the Petition Date. As reported in the Troubled Company Reporter on April 4, 2012, the firm is expected to, among other things, draft and distribute communications to employees, patients, physicians, referral sources, board members, volunteers, donors, and the media regarding a wide array of activities and issues; respond to media requests; and address questions and support the Debtors' management in any aspect of strategic communications, marketing, and outreach necessary to support business operations and patient volume. The Debtors began working with Denterlein prepetition to manage their public relations and prepare for the impact of commencing Chapter 11 cases and operating in Chapter 11. Denterlein assisted the Debtors in fashioning their messaging strategy for both their employees and the community at large, whose continuing support is critical for the Debtors' reorganization to succeed. During the year immediately preceding the Petition Date, the Debtors paid Denterlein amounts totaling $205,358. Denterlein has not received a retainer from the Debtors. From the Petition Date to Aug. 31, 2011, the Debtors were obligated to pay Denterlein a fixed monthly fee of $15,000 under the Prior Letter Agreements. From Sept. 1, 2011, going forward, the Debtors will pay Denterlein a fixed monthly fee of $10,000 per month. In addition, the Debtors will reimburse Denterlein for all reasonable expenses incurred by Denterlein in the performance of its duties upon presentation of appropriate documentation for expenses in excess of $50. Those expenses include, but are not limited to, printing, production, design, copying, travel, parking, and delivery. To the best of the Debtors' knowledge, Denterlein (a) is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by section 1107(b), and (b) does not hold or represent an interest adverse to the Debtors' estates. About Northern Berkshire Healthcare Northern Berkshire Healthcare, Inc., is a non-profit healthcare corporation in northern Berkshire County, Massachusetts. Together with its affiliates, Northern Berkshire Healthcare operates the North Adams Regional Hospital and a visiting nurse association and hospice in North Adams, Massachusetts. Northern Berkshire Healthcare, Inc., North Adams Regional Hospital, Inc., Visiting Nurse Association & Hospice of Northern Berkshire, Inc., Northern Berkshire Healthcare Physicians Group, Inc., and Northern Berkshire Realty, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Mass. Case No. 11-31114) on June 13, 2011, to address their overleveraged balance sheet and effect a reorganization of their operations. On the same day, Northern Berkshire Community Services, Inc., filed a petition for Chapter 7 relief also in the District of Massachusetts bankruptcy court. Judge Henry J. Boroff presides over the Debtors' cases. Steven T. Hoort, Esq., James A. Wright, III, Esq., Jonathan B. Lackow, Esq., and Matthew F. Burrows, Esq., at Ropes & Gray LLP, in Boston, Mass., serve as the Debtors' bankruptcy counsel. The Debtors' Financial Advisors are Carl Marks Advisory Group LLC. GCG Inc. serves as claims and noticing agent. Northern Berkshire disclosed $22,957,933 in assets and $53,379,652 in liabilities as of the Chapter 11 filing. The petition was signed by William F. Frado, Jr., president. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to the official unsecured creditors' committee in the Debtors' cases. The Committee tapped Duane Morris LLP as its counsel. As reported in the Troubled Company Reporter on April 12, 2012, Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that the Debtors won the signature of the bankruptcy judge on a confirmation order April 10 approving the Chapter 11 plan. OLD CORKSCREW: Has Cash Access Until Plan Becomes Effective ----------------------------------------------------------- Bankruptcy Judge Barry S. Chermer signed in April an agreed order that allows the Old Corkscrew Plantation LLC to use BMO Harris Bank, N.A.'s cash collateral through the effective date of the Debtors' Amended Joint Plan of Reorganization. The Debtor and the bank signed the agreed fifth interim order authorizing cash collateral in March. Meanwhile, the bankruptcy judge on April 13 entered an order sustaining in part and denying in part an objection by the U.S. Trustee to the Confirmation of the Debtor's Amended Plan filed on Feb. 10. The U.S. Trustee's objection is overruled with respect to its request that the Debtors seek revocation or withdrawal of a plan that the Court has orally ordered confirmed at a March 23 hearing on confirmation of the Plan. As to the other objections, the Debtors though are permitted leave to file an amended Chapter 11 plan that addresses the issues raised by the U.S. Trustee. The bankruptcy judge said that the amended plan will only include "non-substantive revisions." On April 4, 2012, the bankruptcy judge entered findings of fact, conclusions of law and order confirming the Second Amended Joint Plan of Reorganization. The judge ruled that the Plan complies with all, and is not inconsistent with, the applicable provisions of 11 U.S.C. Sec. 1129. A copy of the document is available for free at http://bankrupt.com/misc/Old_Corkscrew_Plan_Decision.pdf "The Plan provides that Debtors will pay non-insider, non-priority unsecured creditors with allowed claims in full, with interest at 4.25% (in approximately 7 months from the Effective Date) which is clearly not less than such claimants would receive in a chapter 7 Liquidation," Judge Chermer said, acknowledging that the Debtors have demonstrated that the Plan meets the best interests of creditors test. The Plan allows the Debtors to restructure their finances and continue operating after they emerge from bankruptcy, continue trading with their vendors, and it provides for payment in full, with interest, of allowed class 4 Claims consisting of non insider, non-priority unsecured creditors in approximately 7 months from the Effective Date, with approximately 40% of those principal amount of the Claims being satisfied on or about the Effective Date. The Plan was negotiated with senior secured creditor, BMO Harris Bank. A copy of the Debtors' Second Amended Plan of Reorganization dated March 27, 2012, is available at: http://bankrupt.com/misc/Old_Corkscrew_2nd_Amended_Plan.pdf About Old Corkscrew Plantation Fort Myers, Florida-based Old Corkscrew Plantation LLC, whose oranges are made into Minute Maid and Tropicana juice, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-14559) on July 29, 2011, disclosing $25,264,047 in assets and $60,751,633 in debts. Old Corkscrew sought Chapter 11 protection along with its affiliates. Donald G. Scott, Esq., at McDowell, Rice, Smith & Buchanan, in Kansas City, Missouri, serves as the Debtors' bankruptcy co-counsel. Berger Singerman, P.A., serves as their bankruptcy counsel. Arcadia Citrus Enterprises, Inc., serves as manager of their citrus growing properties. Kapila & Company serves as chief restructuring officer. The Debtors' orange groves are valued at $24 million. Scott Westlake, the Debtors' managing member, signed the petition. Mr. Westlake is also listed as the Debtors' largest unsecured creditor, with $4,827,906 owed. Another $338,511 debt is owed to Scott and Vicki Westlake. No trustee or examiner has been appointed in this Chapter 11 case. An official committee of unsecured creditors was appointed and is represented by counsel. PFF BANCORP: Plan Confirmed Using Cramdown on TruPS --------------------------------------------------- The U.S. Bankruptcy Judge in Delaware signed a confirmation order for PFF Bancorp's Chapter 11 plan on April 26. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the plan approval wraps up a bankruptcy begun after the bank subsidiary PFF Bank & Trust was taken over by regulators in November 2008. BankruptcyData.com reports that according to documents filed with the Court, "The Plan constitutes a separate chapter 11 plan of liquidation for each Debtor. Except for Administrative Claims, Priority Tax Claims and Other Priority Claims, all Claims against and Equity Interests in a particular Debtor are placed in Classes for each of the Debtors. In accordance with section 1123(a)(1) of the Bankruptcy Code, the Debtors have not classified Administrative Claims, Priority Tax Claims and Other Priority Claims, as described in Article II of the Plan." Mr. Rochelle relates that the plan became feasible as the result of a settlement with the Federal Deposit Insurance Corp. allowing PFF to retain $18.6 million in tax refunds. The Pension Benefit Guaranty Corp. is slated to recover 45% on its claims while general unsecured creditors could see 11%. Holders of trust- preferred securities, who were projected for a recovery of less than 1%, voted against the plan. Overcoming the "no" votes from holders of the trust-preferred securities, PFF confirmed the plan using the cramdown method. To cram down successfully PFF was required to show the judge that the trust-preferred holders would receive more from the plan than they could expect to recover through a liquidation in Chapter 7 bankruptcy. 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 the 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 (Bankr. D. Del. Case Nos. 08-13127 to 08-13131) on Dec. 5, 2008. 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. PINE RIDGE: Case Summary & 5 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Pine Ridge Golf & Country Club, LLC 5600 N. Elkcam Blvd. Beverly Hills, FL 34465-4531 Bankruptcy Case No.: 12-02831 Chapter 11 Petition Date: April 26, 2012 Court: United States Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: Richard A. Perry, Esq. 820 S E Fort King Street Ocala, FL 34471 Tel: (352) 732-2299 E-mail: richardperry@richard-a-perry.com Scheduled Assets: $1,803,523 Scheduled Liabilities: $1,519,779 A copy of the Company's list of its five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb12-02831.pdf The petition was signed by William J. Slonaker, Sr., manager- member. PINNACLE AIRLINES: OK'd to Continue L/C & Surety Bond Programs -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Pinnacle Airlines Corp., et al., to continue and renew, in their sole discretion, their Letter of Credit and Surety Bond Programs on an uninterrupted basis and in accordance with the same practices and procedures, including, but not limited to, the maintenance of cash collateral, as were in effect before the Petition Date. As reported in the Troubled Company Reporter on April 4, 2012, the authority include permitting the Debtors (i) to pay all amounts arising under the Letter of Credit and Surety Bond Programs due and payable after the Petition Date and (ii) to renew or obtain new letters of credit and surety bonds as needed in the ordinary course of business. In the ordinary course of their businesses, the Debtors are required to provide to third parties letters of credit and surety bonds to secure the Debtors? payment or performance of certain obligations, including obligations owed to municipalities, obligations associated with foreign operations, contractual or permit obligations, fuel and liquor taxes, airport obligations and U.S. and Canadian customs requirements. Failure to provide, maintain or to timely replace these letters of credit and surety bonds could jeopardize the Debtors? ability to conduct their operations. As of the Petition Date, the Debtors had roughly $7.9 million in outstanding letters of credit. All of these letters of credit are collateralized by cash or U.S. Treasury securities. Commission and transaction fees are charged by the Providers, on a monthly, quarterly or annual basis as a requirement for the issuance and maintenance of these letters of credit. The amounts charged can be on a percentage or flat fee basis, or a combination thereof. As of the Petition Date, the Debtors have roughly $503,000 in outstanding surety bonds, about half of which are collateralized by letters of credit. The premiums for most of the surety bonds are determined annually and are paid by the Debtors at inception and annually thereafter. The Debtors? principal surety is Western Surety. Because the issuance of a surety bond shifts the risk of the Debtors? non-performance or non-payment from the Debtors? obligee to the surety, sureties cautiously screen bond applicants to minimize their loss exposure. Despite this reallocation of financial risk, a surety bond is not the equivalent of an insurance policy. Unlike an insurance policy, if a Provider incurs a loss on a surety bond, it is entitled to recover the full amount of that loss from the principal. This right to indemnity is typically memorialized in an indemnity agreement between the Provider and the principal, the execution of which is generally required by the Provider as a precondition to the issuance of a bond. The Debtors are a party to a number of such indemnity agreements. Pursuant to the Indemnity Agreements, the Debtors have agreed to indemnify certain parties from any loss, cost, damage or expense they may incur by reason of their execution of any bonds on behalf of Debtors. By this Motion, the Debtors seek the authority, but not the obligation, to honor those Indemnity Agreements. Based on the current financial status of the Debtors, it is unlikely that the Debtors will be able to renew or obtain replacement letters of credit or surety bonds on an unsecured basis and in some cases capacity may not be available even on a secured basis. In order to be able to give the financial assurances the Debtors will be required to provide in order to continue their business operations during the reorganization process, the Debtors must maintain the existing Letter of Credit and Surety Bond Programs and may need additional letter of credit and bonding capacity not currently provided by the Letter of Credit and Surety Bond Programs. Accordingly, to operate their businesses, which require the Letter of Credit and Surety Bond Programs, the Debtors will have to either renew or replace their existing letters of credit and surety bonds, and will most likely have to maintain collateral arrangements similar to those currently in place. About Pinnacle Airlines Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/-- a $1 billion airline holding company with 7,800 employees, is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc. Flying as Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corp. operating subsidiaries operate 199 regional jets and 80 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize. Corporate offices are located in Memphis, Tenn., and hub operations are located at 11 major U.S. airports. Pinnacle Airlines Inc. and its affiliates, including Colgan Air, Mesaba Aviation Inc., Pinnacle Airlines Corp., and Pinnacle East Coast Operations Inc. filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Lead Case No. 12-11343) on April 1, 2012. Judge Robert E. Gerber presides over the case. Lawyers at Davis Polk & Wardwell LLP, and Akin Gump Strauss Hauer & Feld LLP serve as the Debtors' counsel. Barclays Capital and Seabury Group LLC serve as the Debtors' financial advisors. Epiq Systems - Bankruptcy Solutions serves as the claims and noticing agent. The petition was signed by John Spanjers, executive vice president and chief operating officer. Pinnacle Airlines' balance sheet at Sept. 30, 2011, showed $1.53 billion in total assets, $1.42 billion in total liabilities and $112.31 million in total stockholders' equity. Delta Air Lines, Inc., the Debtors' major customer and post- petition lender, is represented by David R. Seligman, Esq., at Kirkland & Ellis LLP. A seven-member official committee of unsecured creditors has been appointed in the case. PINNACLE AIRLINES: OK'd to Honor Interline, Code Share Obligations ------------------------------------------------------------------ The Hon. the U.S. Bankruptcy Court for the Southern District of New York, in a final order, authorized Pinnacle Airlines Corp., et al., to: -- honor their prepetition obligations under the Interline Agreements, the Clearinghouse Agreements and the Code Share Agreements, and continue performing and exercising their respective rights and obligations under each in the ordinary course of business; and -- modify the automatic stay to the extent necessary to effectuate the requested relief. In a separate order, the Court also authorized the Debtors to: i) pay any Covered Taxes and Fees, whether asserted prior to or after the Petition Date, including by continuing to segregate funds in the ordinary course of business in the Trust; ii) pay prepetition amounts owed to foreign creditors of the Debtors' estates, including vendors, service providers, independent contractors and landlords; and iii) continue their liability, property, casualty and other insurance programs, and (b) pay all obligations in respect thereof. The Court also ordered that all applicable banks and other financial institutions are authorized to receive, process, honor, and pay any and all checks, drafts, wires, check transfer requests or automated clearing house transfers evidencing amounts paid by the Debtors. Further, the Court authorized the Debtors to make 1110(a) Elections and file 1110(a) Election Notices and 1110(b) Stipulations pursuant to the procedures specified in the order, and any objections to any 1110(a) Election Notice, any Cure Amount contained therein and/or to any 1110(b) Stipulation must be served and filed in accordance with the procedures specified in this Order, or the objections will be barred. About Pinnacle Airlines Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/-- a $1 billion airline holding company with 7,800 employees, is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc. Flying as Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corp. operating subsidiaries operate 199 regional jets and 80 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize. Corporate offices are located in Memphis, Tenn., and hub operations are located at 11 major U.S. airports. Pinnacle Airlines Inc. and its affiliates, including Colgan Air, Mesaba Aviation Inc., Pinnacle Airlines Corp., and Pinnacle East Coast Operations Inc. filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Lead Case No. 12-11343) on April 1, 2012. Judge Robert E. Gerber presides over the case. Lawyers at Davis Polk & Wardwell LLP, and Akin Gump Strauss Hauer & Feld LLP serve as the Debtors' counsel. Barclays Capital and Seabury Group LLC serve as the Debtors' financial advisors. Epiq Systems - Bankruptcy Solutions serves as the claims and noticing agent. The petition was signed by John Spanjers, executive vice president and chief operating officer. Pinnacle Airlines' balance sheet at Sept. 30, 2011, showed $1.53 billion in total assets, $1.42 billion in total liabilities and $112.31 million in total stockholders' equity. Delta Air Lines, Inc., the Debtors' major customer and post- petition lender, is represented by David R. Seligman, Esq., at Kirkland & Ellis LLP. A seven-member official committee of unsecured creditors has been appointed in the case. PINNACLE AIRLINES: Court Approves Sale of Certain Assets -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Pinnacle Airlines Corp., et al., to sell certain assets outside the ordinary course of the Debtors' business. As reported in the Troubled Company Reporter on April 16, 2012, BankruptcyData.com reported that Pinnacle Airlines filed with the U.S. Bankruptcy Court a motion for authorization to establish sale procedures for the sale of certain obsolete, surplus or burdensome assets for a price of $3 million or less or to abandon the assets if a sale cannot be completed. The Debtors requested that if the sale price of certain of the assets is less than $500,000, no sale hearing shall be required; and if the sale is more than $500,000 but less than $3 million, the Debtors will file a notice with the Court and an objection deadline will be set. About Pinnacle Airlines Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/-- a $1 billion airline holding company with 7,800 employees, is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc. Flying as Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corp. operating subsidiaries operate 199 regional jets and 80 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize. Corporate offices are located in Memphis, Tenn., and hub operations are located at 11 major U.S. airports. Pinnacle Airlines Inc. and its affiliates, including Colgan Air, Mesaba Aviation Inc., Pinnacle Airlines Corp., and Pinnacle East Coast Operations Inc. filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Lead Case No. 12-11343) on April 1, 2012. Judge Robert E. Gerber presides over the case. Lawyers at Davis Polk & Wardwell LLP, and Akin Gump Strauss Hauer & Feld LLP serve as the Debtors' counsel. Barclays Capital and Seabury Group LLC serve as the Debtors' financial advisors. Epiq Systems - Bankruptcy Solutions serves as the claims and noticing agent. The petition was signed by John Spanjers, executive vice president and chief operating officer. Pinnacle Airlines' balance sheet at Sept. 30, 2011, showed $1.53 billion in total assets, $1.42 billion in total liabilities and $112.31 million in total stockholders' equity. Delta Air Lines, Inc., the Debtors' major customer and post- petition lender, is represented by David R. Seligman, Esq., at Kirkland & Ellis LLP. A seven-member official committee of unsecured creditors has been appointed in the case. PJ FINANCE: Committee Can Hire WDC Solutions as Disbursing Agent ---------------------------------------------------------------- The Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware granted the Official Committee of Unsecured Creditors in the Chapter 11 cases of PJ Finance Company, LLC, et al., permission to retain WDC Solutions, Ltd., as pre-confirmation disbursing agent. As reported by the Troubled Company Reporter on April 24, 2012, the Debtors and the Plan sponsor consented to Susan D. Watson of WDC Solutions to conduct consulting services that may be necessary and appropriate to the timely conclusion of the case cases and to provide assistance to the Committee. About PJ Finance Chicago, Illinois-based PJ Finance Company, LLC, owns apartment communities in the states of Arizona, Florida, Georgia, Tennessee and Texas. PJ Finance owns or holds ownership interests in 32 apartment communities that collectively have more than 9,500 rentable units. It has 20 apartment locations in Texas, and the remaining 12 in Arizona, Florida, Georgia and Tennessee. The day- to-day operations of the portfolio are managed by a third party, WestCorp Management Group One, Inc. PJ Finance and various affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-10688) on March 7, 2011. Matthew L. Hinker, Esq., at Greenberg Traurig, LLP, in Wilmington, Delaware; and Michelle E. Marino, Esq., and Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware, serve as bankruptcy counsel. Ernst & Young LLP serves as the Debtors' independent auditors. Kurtzman Carson Consultants, LLC, is the Debtors' claims and notice agent. An official committee of unsecured creditors has been named in the case. Christopher A. Jarvinen, Esq., Janine M. Cerbone, Esq., Joseph Orbach, Esq., and Mark T. Power, Esq., at Hahn & Hessen LLP, in New York, N.Y. represent the committee as lead counsel. Kimberly A. Brown, Esq., Matthew B. McGuire, Esq., and Richard Scott Cobb, Esq., at Landis Rath & Cobb, in Wilmington, Del., serve as the Committee's local counsel. The Debtors estimated total assets of at least $275 million (estimated value of portfolio securing loan to Bank of America) and total debts of at least $479 million ($475 million owed to BofA, $4.4 million trade debt). On Jan. 26, 2012, the Bankruptcy Court approved the First Amended Disclosure Statement explaining P.J. Finance Company, LLC, et al., and the Official Committee of Unsecured Creditors' First Amended Joint Plan of Reorganization, dated Jan. 25, 2012. PPL CORP: Moody's Assigns '(P)Ba2' Rating to Preferred Stock ------------------------------------------------------------- Moody's Investors Service assigned a (P)Ba2 rating to PPL Corporation's (PPL:Baa3 Issuer Rating) shelf registration for the issuance of preferred stock, and assigned (P)Baa2, (P)Baa3 and (P)Ba1 ratings to PPL Energy Supply, LLC's (PPL Supply: Baa2 Senior Unsecured Debt) shelf registration for the issuance of senior unsecured debt, subordinated debt, and preferred stock, respectively. The rating assignment follows the company's March 28, 2012 shelf registration filing with the SEC for the issuance of securities by PPL and several of its subsidiaries. The rating outlook for PPL and PPL Supply is stable. Ratings Rationale PPL's Baa3 Issuer 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 in 2012 at least 70% of consolidated results will be provided by more 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 less predictable unregulated, commodity business which will experience reduced margins due to lower commodity prices. 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, the steady and predictable cash flow and earnings from its sizeable UK networks business, and the company's focus in Pennsylvania around infrastructure investment, through the replacement of an aging transmission and distribution system coupled with new transmission and smart grid investments. The Baa2 senior unsecured rating for PPL Supply reflects a relatively strong competitive position in two different power markets, fairly strong credit metrics following the transition to market rates for electric supply in Pennsylvania, and a balanced fuel mix. The rating reflects the expectation for better retained cash flow and free cash flow metrics due to a leveling off of the company's construction expenditures coupled with the parent's reduced reliance on PPL Supply for dividends following two large utility acquisitions during 2010 and 2011. The rating factors in Moody's expectation that leverage will continue a declining trend by way of asset sales, lower dividends or other means which may mitigate the down cycle's impact of PPL Supply's standalone cash flow metrics. Results for 2011 remain in line with the current rating; however, lower margins and cash flow beginning in 2012 may end up placing downward rating pressure on the rating. The ratings assigned to PPL's shelf for preferred stock and to PPL Supply's shelf for the issuance of subordinated debt and preferred stock incorporate Moody's normal notching practices for rating subordinated debt and preferred securities. The stable outlook for PPL reflects Moody's view that with the completion of the Kentucky utilities and UK networks acquisitions, PPL's credit quality has been fortified through a material 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 the cash flow generating capacity of these assets is expected to be lower over the next several years. The stable outlook also incorporates a view that the company's large capital investment will be prudently financed, to include the issuance of common equity. While Moody's anticipates PPL being able 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, 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 regulated business acquisitions. While Moody's views the Kentucky and UK acquisitions as transforming events which could form the basis for positive rating momentum at PPL, the prospects for an upgrade in the near-term remain somewhat limited in light of the execution risks in integrating these two large acquisitions while confronted at the same time with some of the market-based issues currently facing the company's unregulated business. However, to the extent that the integration process at both properties meets or exceeds company expectations and PPL continues to take actions to lower overall enterprise risk and leverage over time, PPL's rating could be upgraded. Similarly, 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. To the end, the stable rating outlook at PPL Supply factors in the de-risking of the PPL enterprise through the completion of the aforementioned acquisitions that has lowered the corporation's dependence on PPL Supply. The stable rating outlook also incorporates a view that management will take steps to further de- lever PPL Supply over the next several years. Moreover, Moody's believes that internal cash flow will satisfy most of the company's capital and dividend requirements for the next few years due to the decline in capital expenditures and more modest dividend payment requirements. In light of the headwinds facing the unregulated power company and the potential negative impact on certain cash flow metrics, very limited prospects exist for PPL Supply's ratings to be upgraded. PPL Supply's rating could be adjusted downward if there is increased likelihood of greater than expected cash flow deterioration over the next 12 months, if higher than expected dividends are paid by PPL Supply during this down cycle, or if the company's debt reduction program is not completed or proves to be insufficient to maintain standalone credit metrics for a mid Baa credit. From a quantitative perspective, if the ratio of cash flow to debt is below the mid-twenty percent range, if the ratio of retained cash flow to debt is in the mid-teens, or if the cash flow coverage of interest expense declines to substantially below 4.5x on a sustained basis, downward rating pressure will surface. The methodologies used in this rating were Unregulated Utilities and Power Companies published in August 2009 and Regulated Electric and Gas Utilities published in August 2009. PPL is a diversified energy holding company headquartered in Allentown, PA. PPL owns or controls about 19,000 megawatts of generating capacity in the US, sells energy in key U.S. markets, and delivers electricity and natural gas to about 10 million customers in the US and the UK. PPL Supply is a competitive generation company engaged primarily in the generation and marketing of power primarily in the northeastern and western US power markets. PPL Supply is an indirect wholly-owned subsidiary of PPL. PROQUEST LLC: S&P Affirms 'B-' Corp. Credit Rating; Outlook Stable ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its rating outlook on Ann Arbor, Mich.-based ProQuest LLC to stable from negative. "We affirmed all existing ratings on the company, including the 'B-' corporate credit rating," S&P said. "The outlook revision reflects our view that the transaction has provided flexibility to accommodate some revenue volatility and technology risk associated with the migration of clients to a new technology platform," said Standard & Poor's credit analyst Chris Valentine. "We believe that the company will be able to maintain an adequate cushion of compliance and adequate liquidity over the next 12 months to support the 'B-' rating, absent a debt-financed acquisition or further significant cost overrun." "The 'B-' corporate credit rating reflects our view that operating performance will likely remain weak over the near term, which could result in deteriorating credit measures and liquidity pressure. Many of ProQuest's corporate and government clients are facing significant budgetary pressure and have reduced their spending allocations for libraries, resulting in an unfavorable near-term operating outlook for the company. In our view, ProQuest's business risk profile is 'weak' because of mature and unfavorable fundamentals of some key end markets. We view the company as having a 'highly leveraged' financial risk profile because of its high debt leverage and a history of debt-financed acquisitions and distributions to its owners," S&P said. "ProQuest is a content provider to more than 12,000 academic, government, corporate, and public libraries. The company converts proprietary information from publishers into electronically accessible databases. ProQuest's end markets are relatively mature, and growth is likely to require acquisitions and product or geographical expansion, which entail significant risk. The company derives the majority of its revenues from academic libraries, followed by corporate and government customers and public and school libraries. This has made its revenue stream susceptible to pervasive budget pressures, which we believe will continue. Competition within the industry is intense, and pricing increases generally have been limited to an inflationary pace," S&P said. "At the same time, demand for the company's products (especially from academic libraries) has historically been fairly steady. During the 2009 recession, the company did not raise its prices on most products, but its operating performance remained relatively stable," S&P said. "ProQuest's technology platform migration is consuming more time and resources than planned, contributing to higher costs and EBITDA pressure. We believe cost pressure from the technology platform migration could persist through at least the first half of 2012. Mature growth prospects, pressure on public funding, and a highly competitive market all remain key factors in performance. As a result, under our base-case scenario, we expect flat to modestly positive organic revenue and EBITDA growth in 2012. If the technology platform migration is successful, EBITDA could modestly exceed our expectations," S&P said. PROTEONOMIX INC: JPDH & Company Succeeds KBL LLP as Accountants --------------------------------------------------------------- Proteonomix, Inc., was notified by KBL, LLP, that it has resigned as the Company's independent registered public accounting firm. The resignation of KBL as the Company's independent registered public accounting firm was approved by the Company's Board of Directors on April 25, 2012. The reports of KBL on the Company's financial statements for the years ended Dec. 31, 2011, and 2010 did not contain an adverse opinion or disclaimer of opinion, and those reports were not qualified or modified as to uncertainty, audit scope or accounting principle. The reports of KBL on the Company's financial statements for the years ended Dec. 31, 2011, and 2010 contained explanatory paragraphs which noted that there was substantial doubt as to the Company's ability to continue as a going concern as the Company has negative working capital, and substantial accumulated deficits. These factors raise substantial doubt about the ability of the Company to continue as a going concern. During the years ended Dec. 31, 2011, and 2010 and through April 24, 2012, the Company had not had any disagreements with KBL on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to KBL's satisfaction, would have caused them to make reference thereto in their reports on the Company's financial statements for those periods. On April 25, 2012, the Company engaged JPDH & Company as its independent registered public accounting firm. The decision to engage JPDH as the Company's independent registered public accounting firm was approved by the Company's Board of Directors. During the years ended Dec. 31, 2011, and 2010, and through April 25, 2012, the Company did not consult JPDH & Company with respect to the application of accounting principles to any specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's Financial Statements, or any other matters or reportable events as defined in Item 304(a)(2)(i) and (ii) of Regulation S-K. About Proteonomix Proteonomix, Inc. (OTC BB: PROT) -- http://www.proteonomix.com/-- is a biotechnology company focused on developing therapeutics based upon the use of human cells and their derivatives. The Company reported a net loss applicable to common shares of $1.38 million in 2011, compared with a net loss applicable to common shares of $3.47 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $3.34 million in total assets, $7.03 million in total liabilities, and a $3.69 million total stockholders' deficit. For the year ended Dec. 31, 2011, KBL, LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has sustained significant operating losses and is currently in default of its debt instrument and needs to obtain additional financing or restructure its current obligations. RAVENWOOD HEALTHCARE: Files for Chapter 11 in Baton Rouge --------------------------------------------------------- Ravenwood Healthcare, Inc. filed a Chapter 11 petition (Bankr. Md. La. Case No. 12-10612) on April 27, 2012, in its home-town in Baton Rouge, Louisiana. The Debtor is a not-for-profit corporation which owns and operates the Harborside Nursing and Rehabilitation Center, a 165-bed skilled care facility in Baltimore, Maryland. It has 134 hourly rate based and 11 salaried rate based employees. The Debtor has filed customary first day motions including requests to use cash collateral, pay prepetition wages and benefits, and restrain utilities from discontinuing service. An expedited hearing on the first day motions is scheduled for May 1, 2012, at 1:00 p.m. According to the case docket, the schedules of assets and liabilities and the statement of financial affairs are due May 11, 2012. The Chapter 11 plan and the explanatory disclosure statement are due Aug. 27, 2012. REID PARK: Plan Confirmation Hearing Continued Until May 31 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona has continued until May 31, 2012, at 10:00 a.m., the hearing to consider the confirmation of Reid Park Properties, LLC's Fourth Amended Plan of Reorganization dated Feb. 16, 2012. WBCMT 2007-C31 South Alvernon Way, LLC, is asking the Court deny the Debtor's Plan because it is a disguised attempt to transfer title of its hotel to a preferred investor to preserve a stream of management fee income for the Debtor's equity holders. According to WBCMT, the Plan suffers numerous infirmities under the Bankruptcy Code, including lack of a legitimate accepting impaired class, lack of feasibility, improper loan terms for secured creditor cramdown and violation of the absolute priority rule. The Fourth Amended Plan provides that the Reorganized Debtor will retain all property of the estate, excepting property which is to be sold or other wise disposed of as provided for in the Plan, executory contracts which are rejected pursuant to the plan, and property transferred to creditors. The retained property will be used and employed by the Reorganized Debtor in the continuance of its business. A full-text copy of the Fourth Amended Plan is available for free at http://bankrupt.com/misc/REID_PARK_plan_4thamended.pdf As reported by the Troubled Company Reporter on March 2, 2012, the Debtor's Plan is a new value Plan which will require the infusion of monies into the Reorganized Debtor through capital contributions made by a new participating investor. A portion of the new monies will be used to make improvements and repairs to the Doubletree Hotel located in Tucson, Arizona, which will in turn allow the Debtor to become more profitable and increase its competitive edge over other properties in the area. After the payment of certain expenses made pursuant to the Plan, the Debtor will create a capital reserve that will be held by the Debtor and used for capital items, and improvements, including PIP improvements or unexpected repairs at the hotel. The Debtor will also fund a debt service reserve to pay debt service. Working capital will be maintained by the Debtor. These reserves will ensure that the Reorganized Debtor is able to meet its obligations in the event of a decrease in revenue. About Reid Park Properties Reid Park Properties LLC is the owner of the Doubletree Hotel Tucson located in South Alernon Way in Tucson, Arizona. The nine- story property has 287 rooms. It was purchased for $31.8 million in 2007 by an affiliate of Transwest Properties Inc. Reid Park filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 11-15267) on May 26, 2011. According to its bankruptcy petition, Reid Park has $52 million in liabilities and $14 million in assets. The Law Offices of Eric Slocum Sparks, P.C., serves as its legal counsel. The U.S. Trustee Christopher Pattock said that an official committee of unsecured creditors has not been appointed because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. RENAISSANCE FINANCIAL: Moody's Issues Summary Credit Opinion ------------------------------------------------------------ Moody's Investors Service issued a summary credit opinion on Renaissance Financial Holding Limited (basis for ratings on Renaissance Securities Trading Limited) and includes certain regulatory disclosures regarding Renaissance Securities Trading Limited's ratings. The release does not constitute any change in Moody's ratings or rating rationale for Renaissance Securities Trading Limited and Renaissance Financial Holding Limited. Moody's current ratings on Renaissance Securities Trading Limited are: BACKED Senior Unsecured (foreign currency) ratings of B1 BACKED Senior Unsecured MTN Program (foreign currency) ratings of (P)B1 BACKED Other Short Term (foreign currency) ratings of (P)NP Ratings Rationale The issuer ratings of RFHL represent the group's (i) solid position on the Commonwealth of Independent States (CIS) investment banking market, (ii) relatively low risk appetite to market and credit risks assumed in its day-to-day activities, (iii) adequate leverage which is beneficial for liquidity (which is capable of withstanding medium-sized shock), and its capital cushion is sufficiently adequate to accommodate credit and market risks, and (iv) ability -- as historically demonstrated by the management (shareholder) team -- to quickly adjust to new business realities and anticipate challenges in the operating environment. At the same time, the ratings are constrained by (i) risky and unstable markets where RFHL operates, aggravated by concentration of revenues on a limited number of products and lack of geographical diversification; (ii) diminished competitive power as markets are re-shaped and competition intensifies, (iii) significant appetite to strategic market and credit risks; (iv) sizeable "cliff risk" in terms of liquidity if major market dislocation occurs; and (v) a complex organisational structure consisting of a large number of individual entities, which could result in some structural subordination from operating entities and exposure to various legal risks, while poor regulation of Russian securities markets may fail to limit and control industry- related and company-specific risks - albeit significantly mitigated by the fact that more than 50% of business is booked under EU regulations. Rating Outlook The rating outlook for RFHL is stable. What Could Change the Rating - Up RFHL's ratings are unlikely to be upgraded in the medium term. However, positive rating drivers include (i) sustained low involvement in financing of illiquid risky assets, including other group segments, (ii) sustainably low liquidity risk appetite, (iii) continuous development of franchise, and (iv) improved diversification in terms of asset class instruments, clients and geography. If achieved, this could result in lower volatility of earnings, a lower risk profile - stemming from better risk management practices - and the maturing of Russia's financial markets. What Could Change the Rating - Down Downward rating pressure could result from significant liquidity deterioration, significant capital erosion due to high credit risks mainly associated with related-party financing, and significant loss of franchise leading to reduced revenue streams which could not be compensated by appropriate cost-cutting measures. Significant reduction of capital via dividend distribution could also result in a negative rating action, although this is not viewed by Moody's as a central scenario. In addition, significant increase in related-party financing is also expected to negatively affect the rating. The principal methodology used in this rating was Global Securities Industry Methodology published in December 2006. RS YACHT: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: RS Yacht Services, Inc. aka My Seascape P.O. Box 363443 San Juan, PR 00936 Bankruptcy Case No.: 12-03193 Chapter 11 Petition Date: April 26, 2012 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Eduardo J Corretjer Reyes, Esq. BUFETE ROBERTO CORRETJER PIQUER 625 Ponce de Leon Avenue San Juan, PR 00917-3111 Tel: (787) 751-4618 Fax: (787) 759-6503 E-mail: ejcr98@yahoo.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 Pedro Ray, president. SCHOMAC GROUP: BOKF Wants Plan Outline Denied --------------------------------------------- BOKF, N.A., has asked the U.S. Bankruptcy Court for the District of Arizona to deny approval of the Disclosure Statement explaining The Schomac Group, Inc., et al.'s Plan of Reorganization, as amended February 2012. According to BOKF, the Disclosure Statement, among other things: -- does not comply with applicable provisions of the Bankruptcy Code; -- was proposed in bad faith; -- was not accepted by every impaired class; -- is not fair and equitable as to the classes addressing BOKF's secured claims; -- violates the absolute priority rule as to the classes addressing BOKF's unsecured claims; and -- cannot satisfy the best interests of creditors test -- the Plan is not feasible because its implementation requires tens of millions of dollars of cash from vaguely identified and highly speculative sales of mostly unimproved or encumbered real estate. The Chapter 11 Plan On March 29, 2012, the Debtors filed with the Court three non adverse modifications to their Plan, seeking: -- determination that pursuant to Section 1127 of the Bankruptcy Code, by filing and serving the modification on the affected parties, the Debtors have complied with the disclosure requirements of the Bankruptcy Code under Section 1125, and that the modification is appropriate; and -- to incorporate a settlement which has been reached with the Arizona Department of Revenue -- the settlement results in an acceptance of the Plan by the creditor and avoids litigation over an objection to the Plan; and Full-text copies of the modifications are available for free at: http://bankrupt.com/misc/THE_SCHOMAC_GROUP_plan_modification.pdf http://bankrupt.com/misc/THE_SCHOMAC_GROUP_plan_modification_b.pdf http://bankrupt.com/misc/THE_SCHOMAC_GROUP_plan_modification_c.pdf As reported by the Troubled Company Reporter on Jan. 6, 2012, the Debtors' Joint Plan of Reorganization contemplates the continued operation of the business entities, including the marketing of properties, which will allow the Debtors to pay creditors. The Debtors' secured debt will be restructured in a manner where payment obligations do not outstrip the income from the project. The Plan will be funded by future operations of the Debtors' businesses, including the sale of properties, as well as by the dividend income from the Debtors' OP Units in CubeSmart. The Debtors also have commitments from related non-debtor entities and the individual equity-holder of the Debtors to fund plan payments, to the extent the Debtors' revenues are insufficient. Allowed general unsecured creditors of Schomac will be paid an initial distribution equal to 10% of each Allowed Claim within 12 months after the Effective Date. About The Schomac Group & TEDCO Tucson, Arizona-based The Schomac Group, Inc., develops, constructs, manages, and invests in residential, industrial, and commercial real property. Tedco, Inc., invests in real property and in mortgages backed by real property. Schomac Group and Tedco filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case Nos. 11- 22717 and 11-22720) on Aug. 9, 2011. In its schedules, Schomac Group disclosed $48,929,897 in total assets and $34,583,005 in total liabilities. Judge Eileen W. Hollowell presides over the cases. Mesch, Clark & Rothschild, P.C., serves as the Debtors' counsel. Attorney for secured lender LNV Corp. is William Novotny, Esq., at Mariscal Weeks McIntyre & Friedlander, PA. SEACOR HOLDINGS: Moody's Issues Summary Credit Opinion ------------------------------------------------------ Moody's Investors Service issued a summary credit opinion on SEACOR Holdings Inc. and includes certain regulatory disclosures regarding its ratings. The release does not constitute any change in Moody's ratings or rating rationale for SEACOR and its affiliates. Moody's current ratings for SEACOR and its affiliates are: SEACOR Holdings Inc. LT Corporate Family Rating (domestic currency) of Ba1 Probability of Default Rating of Ba1 Senior Unsecured (domestic currency) Rating of Ba1 Senior Unsec. Shelf (domestic currency) Rating of (P)Ba1 Subordinate Shelf (domestic currency) Rating of (P)Ba2 Pref. Shelf (domestic currency) Rating of (P)Ba2 Preferred shelf -- PS2 (domestic currency) Rating of (P)Ba2 LGD Senior Unsecured (domestic currency) Assessment of 57 - LGD4 LGD Senior Unsec. Shelf (domestic currency) Assessment of 57 - LGD4 LGD Subordinate Shelf (domestic currency) Assessment of 97 - LGD6 LGD Pref. Shelf (domestic currency) Assessment of 97 - LGD6 Ratings Rationale SEACOR's Ba1 Corporate Family Rating (CFR) reflects the company's substantial market position in offshore marine services, being a leading provider in the US Gulf of Mexico (GOM) market and also having a presence in other major offshore oil and gas markets around the world. The rating is also supported by the company's policy of maintaining large cash and investment balances relative to debt to mitigate its financial risk in light of the high cyclicality of oilfield services demand. However, this high liquidity is also kept for opportunistic acquisitions when management believes asset valuations are attractive, which often coincides with market downturns, and is used for share repurchases and special dividends. Moody's believes that management's propensity to make changes to its asset mix and periodically return funds to shareholders is appropriately accommodated for in the Ba1 rating. The outlook is stable based on Moody's expectation that SEACOR's earnings improve in 2012 and that it maintains its substantial liquidity position. If the company's earnings do not improve as expected and strengthen the company's leverage and interest coverage metrics then the ratings could be downgraded. A major acquisition without meaningful equity funding that increases leverage and/or reduces the company's liquidity position could also pressure the ratings. Debt/EBITDA 3.5x or above on a sustained basis could result in a ratings downgrade. SEACOR's ratings could be upgraded if the company increases its operating asset base to enhance its fleet quality, market position and geographic diversification in its existing lines of business. Increasing the asset scale and business profile of its core offshore support businesses to levels comparable with investment grade oilfield services peers while maintaining gross adjusted debt/EBITDA of 2x on a sustainable basis would be more consistent with an investment grade rating. The principal methodology used in rating SEACOR was the Global Oilfield Services Industry Methodology published in December 2009. SPEEDY CASH: S&P Assigns 'B' Issuer Credit Rating; Outlook Stable ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' issuer credit rating to Speedy Cash Holdings Corp. (SC). The outlook is stable. "SC is the holding company of Speedy Cash Intermediate Holdings Corp. (SCI; B/Stable/--), and it has no other substantial assets outside of this investment. SCI directly owns all of SC's subsidiaries; as a result, our ratings on both companies are the same. SC and its current and future domestic subsidiaries guarantee the existing $250 million notes that SCI issued," S&P said. "Our ratings on Wichita, Kan.-based SC are based on the company's exposure to legislative and regulatory risks, the operational risks associated with its ongoing integration of Canada-based Cash Money Cheque Cashing Inc. (not rated), its moderate concentration in several U.S. states and Ontario, and its negative tangible equity," said Standard & Poor's credit analyst Igor Koyfman. "The company's good cash flows and profitability metrics, its improved diversification with the acquisition of Cash Money, and the moderate credit risk associated with its loan products mitigate the weaknesses." "The stable outlook reflects our expectation that SC will continue to maintain good cash flow and profitability metrics. We could lower the rating if adverse legislative or regulatory actions lead to a material decline in earnings. We would also consider lowering the rating if EBITDA leverage (measured as debt to EBITDA) exceeds 5.0x. We could raise the rating if SC increases its product and geographic diversification without significantly increasing leverage. However, an increase in regulatory risk would ultimately worsen the company's business profile and offset any diversification improvements," S&P said. ST. JOSEPH HEALTH: S&P Lowers Rating on $18.4-Mil. Bonds to 'CCC' ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating to 'CCC' from 'B-' on Rhode Island Health & Educational Building Corp.'s $18.4 million series 1999 bonds issued for St. Joseph Health Services. "We believe St. Joseph's operating and financial profile has steadily weakened over the past several years, with utilization volatility, decreased revenue, and extremely thin liquidity, as well as a trend of financial results that have fallen significantly short of budget expectations," said Standard & Poor's credit analyst Jennifer Soule. "Management implemented a recovery plan back in 2010, which has allowed for some improvement in its operating margin; however, the improvement hasn't been enough to offset the operating challenges," said Ms. Soule. "St. Joseph's excess revenues over expenses also remain weak and have resulted in a debt service covenant violation for a second year (covenant violations were realized in fiscals 2010 and 2011). A 'CCC' rating by definition indicates that the obligation is currently vulnerable to nonpayment, and is dependent on favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation," S&P said. "The negative outlook reflects Standard & Poor's view that St. Joseph's operating and financial profile could continue to weaken over the upcoming one-year outlook period. Standard & Poor's could consider a lower rating if St. Joseph's debt service coverage continues to run well below sufficient levels or if its liquidity decreases further from the 11 days' cash on hand reported at the end of February 2012. Standard & Poor's could also consider lowering the rating if St. Joseph fails to make its monthly payments to the bond trustee or its next full debt service payment in October 2012. A higher rating is unlikely within the outlook due to given St. Joseph's current operating and financial challenges," according to Standard & Poor's. ST. PAUL BAPTIST: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: St. Paul Baptist Church, a Religious Association aka St. Paul Baptist Church 3115 Stacy Lane Paris, TX 75460 Bankruptcy Case No.: 12-41101 Chapter 11 Petition Date: April 25, 2012 Court: U.S. Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Joyce W. Lindauer, Esq. 8140 Walnut Hill Lane, Suite 301 Dallas, TX 75231 Tel: (972) 503-4033 Fax: (972) 503-4034 E-mail: courts@joycelindauer.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/txeb12-41101.pdf The petition was signed by Kenneth Rogers, Sr., pastor. Affiliate that filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- St. Paul Baptist Church of Paris 11-43639 12/05/11 SUBURBAN PROPANE: S&P Puts 'BB' Corp. Credit Rating on Watch Neg ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' corporate credit and senior unsecured ratings on Suburban Propane Partners L.P. and placed them on CreditWatch with negative implications. "At the same time, we affirmed the 'BB-' corporate credit rating on Inergy L.P. and placed the partnership's unsecured debt ratings on CreditWatch with developing implications," S&P said. "The rating action on Suburban reflects our view that the partnership's higher pro forma financial leverage more than offsets the benefits of the propane business' increased scale," said Standard & Poor's credit analyst Michael Grande. "We would expect to revise the financial risk profile to 'significant' from 'intermediate', and maintain the business risk profile at 'weak', reflecting the inherent industry risks in retail propane distribution. Pro forma credit measures will be aggressive, based on the proposed financing mix and an unseasonably warm winter that significantly affected financial results over the trailing 12-month period. We expect total debt to EBITDA could increase to slightly more than 5x for year-end 2012, compared with 2.5x for the 12 months ended Dec. 24, 2011. We anticipate credit measures to improve, but they will likely remain worse relative to our prior expectations on Suburban. Specifically, we estimate that total debt to EBITDA will improve to about 3.8x in 2013, assuming propane volumes recover to more normal levels and retail margins remain roughly stable," S&P said. "Suburban's business risk profile remains weak primarily due to our view of the industry risks. These risks include mild winter weather, little product differentiation, customer conservation, and some commodity price exposure. Still, we recognize that the proposed acquisition better positions Suburban within the weak category due to the pro forma partnership's increased scale, better geographic diversity, and potential cost synergies. The Inergy purchase roughly doubles the partnership's size and expands its geographic territory beyond its existing East Coast and West Coast markets and into the Mid-West and Southeast," S&P said. "We expect to resolve the CreditWatch listing when Suburban completes its acquisition of Inergy's retail propane business, which we expect to occur by June 30, 2012, the end of the partnership's third quarter. Based on the partnership's increased financial leverage and our view of the inherent risks of the retail propane industry, we expect that we would limit any ratings downgrade to one notch. We also would expect to rate the senior unsecured notes the same as the corporate credit rating," S&P said. "We expect to resolve the CreditWatch listing on Inergy's unsecured issue rating once we have a better understanding of the partnership's expected capital structure, which could be in the next 90 days," S&P said. SUNTRUST BANKS: Moody's Issues Summary Credit Opinion ----------------------------------------------------- Moody's Investors Service issued a summary credit opinion on SunTrust Banks, Inc. and includes certain regulatory disclosures regarding its ratings. The release does not constitute any change in Moody's ratings or rating rationale for SunTrust Banks, Inc. and its affiliates. Moody's current ratings on SunTrust Banks, Inc. and its affiliates are: Long Term Issuer rating of Baa1 Senior Unsecured (domestic currency) ratings of Baa1 Subordinate (domestic currency) ratings of Baa2 Preferred Stock Non-cumulative (domestic currency) ratings of Ba1 (hyb) Senior Unsecured Shelf (domestic currency) ratings of (P)Baa1 Subordinate Shelf (domestic currency) ratings of (P)Baa2 Junior Subordinate Shelf (domestic currency) ratings of (P)Baa3 Preferred Shelf (domestic currency) ratings of (P)Baa3 Commercial Paper (domestic currency) ratings of P-2 BACKED Senior Unsecured (domestic currency) ratings of Aaa SunTrust Bank Long Term Issuer rating of A3 Senior Unsecured (domestic and foreign currency) ratings of A3 Senior Unsecured Bank Note Program (domestic currency) ratings of (P)A3 Senior Unsecured MTN Program (domestic currency) ratings of (P)A3 Long Term Bank Deposits (domestic currency) ratings of A3 Long Term Other Senior Obligations ratings of A3 Bank Financial Strength ratings of C Subordinate Bank Note Program (domestic currency) ratings of (P)Baa1 Subordinate (domestic currency) ratings of Baa1 Short Term Bank Note Program (domestic currency) ratings of (P)P-2 Short Term Bank Deposits (domestic currency) ratings of P-2 Other Short Term (domestic currency) ratings of (P)P-2 Short Term Other Senior Obligations ratings of P-2 SunTrust Capital I BACKED Preferred Stock (domestic currency) ratings of Baa3 (hyb) SunTrust Capital VIII BACKED Preferred Stock (domestic currency) ratings of Baa3 (hyb) SunTrust Capital IX BACKED Preferred Stock (domestic currency) ratings of Baa3 (hyb) SunTrust Capital X BACKED Preferred Shelf (domestic currency) ratings of (P)Baa3 SunTrust Capital XI BACKED Preferred Shelf (domestic currency) ratings of (P)Baa3 SunTrust Capital XII BACKED Preferred Shelf (domestic currency) ratings of (P)Baa3 SunTrust Capital XIII BACKED Preferred Shelf (domestic currency) ratings of (P)Baa3 SunTrust Capital XIV BACKED Preferred Shelf (domestic currency) ratings of (P)Baa3 SunTrust Capital XV BACKED Preferred Shelf (domestic currency) ratings of (P)Baa3 SunTrust Capital XVI BACKED Preferred Shelf (domestic currency) ratings of (P)Baa3 SunTrust Capital XVII BACKED Preferred Shelf (domestic currency) ratings of (P)Baa3 SunTrust Preferred Capital I BACKED Preferred Stock (domestic currency) ratings of Ba1 (hyb) SunTrust Real Estate Investment Corporation Preferred Stock Non-cumulative (domestic currency) ratings of Baa3 (hyb) Ratings Rationale Moody's assigns a bank financial strength rating (BFSR) of C to SunTrust's lead bank, SunTrust Bank. This rating continues to be supported by SunTrust's broad direct banking franchise in the Southeastern and Mid-Atlantic regions of the U.S. as well as by its diversified revenue base, healthy capital position and strong bank and bank holding company liquidity profile. However, SunTrust's performance, particularly its earnings profile, has been weak, weighed down by its significant residential real estate concentration. That concentration has also resulted in an elevated level of nonperforming assets, though the bank's recent credit quality metrics have improved. SunTrust's ratings also incorporate Moody's expectation of moderate core pre-provision profitability, relative to its risk- weighted assets. This metric has been negatively impacted by credit-related expenses, such as OREO costs and mortgage repurchase expenses that continue to be material. These expenses will continue in 2012 and prevent SunTrust's earnings from reaching the levels enjoyed by similarly-rated peers that are not as concentrated in residential real estate. However, these expenses should not be of a magnitude that they would dent SunTrust's healthy capital position. SunTrust's C BFSR translates into an A3 long-term deposit and senior debt rating at the bank and a Prime-2 short-term rating. The holding company is rated Baa1 for senior debt. - A valuable direct banking franchise in the Southeastern and Mid-Atlantic U.S. provides significant rating support - Sizable, low-cost commercial and retail core deposit base - Large residential real estate portfolio, a notable part of which is in Florida and other stressed Southeastern markets - Risk-adjusted pre-provision profitability indicators, and the efficiency ratio, are modest compared with those of many regional peers Rating Outlook The rating outlook is stable. What Could Change the Rating -- Up Sustained improvement in SunTrust's pre-provision profitability, likely driven by meaningful declines in its credit-related costs and repurchase expenses, as well as a lasting reduction in nonperforming assets, including TDRs, could result in future upward rating pressure. What Could Change the Rating -- Down Since SunTrust's primary credit challenge remains its exposure to U.S. residential real estate, a scenario where housing values remain under pressure would raise its costs and weaken its earnings. To the extent that SunTrust's capital position would also weaken in that environment, negative rating pressure could result. The methodologies used in these ratings were Bank Financial Strength Ratings: Global Methodology published in February 2007, and Incorporation of Joint-Default Analysis into Moody's Bank Ratings: Global Methdology published in March 2012. TENET HEALTHCARE: Fitch Rates $141-Mil. Sr. Secured Notes 'BB-' --------------------------------------------------------------- Fitch Ratings has assigned a 'BB-/RR1' rating to Tenet Healthcare Corporation's $141 million 6.25% senior secured notes due 2018 and a 'B/RR3' rating to Tenet's $150 million 8% senior notes due 2020. The notes are add-ons to outstanding note issues and proceeds will be used to repurchase mandatory convertible preferred stock. Tenet's Issuer Default Rating (IDR) is currently 'B-'. The Rating Outlook is Positive. The ratings apply to approximately $4.5 billion of debt at Dec. 31, 2011. Tenet's credit metrics, including debt leverage and interest coverage, are strong relative to the 'B-' IDR. Proceeds of the notes issue will be used to retire mandatory convertible preferred stock, resulting in a 0.3 times (x) increase in debt-to-EBITDA. Pro forma for the add-on notes issuance, Fitch calculates gross debt-to-EBITDA of 4.1x and EBITDA-to-latest 12 months (LTM) interest expense of 3.0x. Leverage through the secured debt is 2.4x. Debt leverage has declined dramatically since 2007, dropping to near 4.0x from 6.5x due to growth in EBITDA. During 2011, Tenet made progress in extending debt maturities and refinancing some of its higher cost debt. In November 2011, Tenet issued $900 million of 6.25% senior secured notes due 2018 and used a portion of the proceeds to refund the $714 million 9% senior secured notes maturing 2015. Also in November 2011, Tenet entered into an amendment to its credit facility, extending final maturity by one year, to November 2016. There is a springing maturity under the bank facility to fourth-quarter 2014 unless the company refinances $238 million of its $474 million 9.25% senior notes maturing 2015. Tenet's debt agreements do not include financial maintenance covenants, except for a 2.0x fixed charge coverage ratio test under the bank facility that is in effect whenever availability under the revolver is less than $80 million (at Dec. 31, 2011 availability was $574 million). Tenet's negative FCF (cash from operations less capital expenditures and dividends) profile remains the most important credit risk. In 2011, Fitch calculates FCF for Tenet of negative $2 million. The rate of cash burn has been steadily improving over the past several years, showing continued incremental progress in achieving positive cash flow. Fitch's projects that Tenet's FCF will be slightly positive in 2012 based in part on improved profitability, lower litigation expense, and positive cash tax implications of a $1.8 billion net operating loss. After lagging the broader industry in its patient volume trends in 2009 and 2010, Tenet's volume trends shifted favorably beginning in 2011. For the first quarter of 2012 (1Q'12), Tenet reports adjusted admissions growth of 2.8%, its sixth consecutive quarter of positive growth. Positive volume growth has helped the company improve its industry lagging profitability. Although Tenet continues to be less profitable than its peers, a 55 basis points (bps) improvement in its Dec. 31, 2011 LTM EBITDA margin to 12.2% versus its 2010 EBITDA margin of 11.65% indicates that it is making incremental progress in closing the gap. Fitch believes that Tenet's capital deployment has recenlty become more shareholder friendly, as evidenced by retirement of the preferred stock. The company has also deployed cash for share repurchases in recent periods. In 2011, Tenet spent about $375 million of cash on share buy-backs. This was the first time the company has bought back shares in recent history. During 1Q'12 the company reports that it repurchased $26 million worth of shares. An upgrade to a 'B' IDR for Tenet would be consistent with credit metrics maintained at current levels, coupled with an expectation of sustained positive FCF generation. More clarity on Tenet's cash deployment strategy would also support an upgrade in light of the company's recently more shareholder friendly capital deployment. A negative rating action for Tenet is unlikely in the near term. Fitch currently rates Tenet as follows: -- IDR 'B-'; -- Senior secured credit facility and senior secured notes 'BB-/RR1'; -- Senior unsecured notes 'B/RR3'. Tenet's Recovery Ratings (RR) reflect Fitch's expectation that a going concern scenario will result in a greater enterprise value for the company than liquidation. Fitch uses a 7.0x distressed enterprise value multiple. The Dec. 31, 2011 LTM EBITDA is stressed by 40%, considering post restructuring estimates for interest and rent expense and maintenance level capital expenditure. Fitch estimates Tenet's distressed enterprise valuation in restructuring to be approximately $4.9 billion. The 'BB-/RR1' rating for the senior secured bank facility and senior secured notes reflects Fitch's expectations for 100% recovery for these creditors. The 'B/RR3' rating on the senior unsecured notes rating reflects Fitch's expectations for recovery in the 51% - 71% range. Total debt of $4.5 billion at Dec. 31, 2011 consisted primarily of: Senior unsecured notes: -- $57 million due 2012; -- $216 million due 2013; -- $60 million due 2014; -- $474 million due 2015; -- $600 million due 2020; -- $430 million due 2031. Senior secured notes: -- $714 million due 2018; -- $900 million due 2018; -- $925 million due 2019. TEXTRON FINANCIAL: S&P Raises Issuer Credit Ratings From 'BB+/B' ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its long- and short-term issuer credit ratings on Textron Financial Corp. (TFC) to 'BBB-/A- 3' from 'BB+/B'. "At the same time, we removed the ratings from CreditWatch, where they were placed with positive implications on March 28, 2012. The outlook is stable. We also raised our rating on the company's senior unsecured debt to 'BBB-' from 'BB+' and our junior subordinated debt rating to 'BB' from 'B'," S&P said. "The upgrade reflects our view that TFC is now a 'core' or captive subsidiary of its parent, Textron Inc. (Textron; BBB-/Stable/A-3). Under our criteria, our ratings on a core or captive subsidiary are the same as those on its parent," S&P said. "TFC has dramatically reduced its noncaptive assets on its way to becoming a pure captive finance unit of Textron. During the process of liquidating noncore assets, Textron has shown a consistent commitment to support TFC, notwithstanding the considerable strain the finance company's outsize losses have placed on its parent," said Standard & Poor's credit analyst Brendan Browne. "In our view, that has enabled TFC to greatly reduce its credit and liquidity risk to a point where any additional support is likely to be very manageable for Textron." "Textron has provided substantial equity support to TFC since 2008, including $240 million as recently as January 2012, and it accounted for about one-quarter of TFC's reported debt at year-end 2011. That has allowed TFC to absorb $1.1 billion in net losses in four years, to meet significant debt maturities, and to remain in compliance with the terms of the support agreement between Textron and TFC. (Certain TFC debt issues require the parent to uphold the terms of the support agreement, which relate to the subsidiary's net worth, earnings, and other matters.)," S&P said. "In the process, TFC has substantially reduced its credit and liquidity risk -- more rapidly than we expected a year ago -- and has moved more toward acting simply as a captive finance company. In 2011, the subsidiary liquidated or wrote down its troubled noncaptive managed receivables (including mortgages on golf courses, developer loans, and large-ticket equipment leases) by almost 60%. It made further progress in liquidating those receivables in first-quarter 2012. As of year-end 2011, we believe TFC had marked down its noncaptive portfolio by roughly 40% from its unpaid principal balance, net of the allowance for loan losses. The reported noncaptive portfolio accounted for about 40% of TFC's receivables, down from 54% in 2010. We expect the company to liquidate the majority of the remaining non-captive portfolio within three years," S&P said. "TFC also paid down $1.9 billion in reported debt in 2011, shrinking its balance sheet by more than 40% and leaving it with debt maturities of $52 million in 2012 and $577 million in 2013," S&P said. "The stable outlook on TFC is the same as that of its parent, Textron. In first-quarter 2012, Textron extended its 2010-2011 recovery. Textron's first-quarter profits rose from the prior year, and its debt is down 25% from year-end 2010. A downgrade would result only from a steep, recessionary downturn in Textron's markets -- which we do not expect," S&P said. "We would consider raising the ratings if Textron restores its profitability margins (for example, achieves EBITDA margins in the midteens) and resolves questions about the company's longer-term prospects. In this light, the further bolstering of the balance sheet that we anticipate for 2012 is only prudent. Textron management seems committed to such financial strengthening as it uses free cash flow to reduce debt, as opposed to paying higher dividends or repurchasing shares," S&P said. TITAN ENERGY: Incurs $3.4 Million Net Loss in 2011 -------------------------------------------------- Titan Energy Worldwide, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $3.43 million on $14.06 million of net sales in 2011, compared with a net loss of $3.67 million on $14.04 million of net sales in 2010. The Company's balance sheet at Dec. 31, 2011, showed $5.61 million in total assets, $8.29 million in total liabilities and a $2.67 million total stockholders' deficit. The Company's consolidated financial statements have not been audited as of Dec. 31, 2011, or for the year ended Dec. 31, 2011. The Company was audited as of Dec. 31, 2010, and for year ended Dec. 31, 2010, by its independent accounting firm which issued their audit opinion on March 31, 2011. The audit has not been performed due to the cost and availability of cash required to pay past due fees owed to the Company's independent accountant firm. Going Concern The Company incurred a net loss for the year ended Dec. 31, 2011, of $3,435,009. At Dec. 31, 2011, the Company had an accumulated deficit of $33,364,735. The Company said that these conditions raise substantial doubt as to its ability to continue as a going concern. A copy of the Form 10-K is available for free at: http://is.gd/0jEkSn About Titan Energy New Hudson, Mich.-based Titan Energy Worldwide, Inc., is a provider of onsite power generation, energy management and energy efficiency products and services. TRAINER GLASS: Court OKs Arnstein & Lehr as Bankruptcy Counsel -------------------------------------------------------------- Trainor Glass Company sought and obtained approval from the U.S. Bankruptcy Court to employ Stein, Michelle G. Novick, Kevin H. Morse and Brian P. Welch and the partners, associates and paralegals of the law firm of Arnstein & Lehr LLP as bankruptcy counsel. The firm, among other things, will: (a) provide legal advise with respect to the Debtor's powers and duties as debtors in possession in the management of their assets; (b) provide legal advise with respect to the Debtor's obligations to taxing bodies and other government agencies; and (c) negotiations with the Debtor's secured creditors. The firm's rates are: Personnel Rates --------- ----- Michael L. Gesas $610 per hour Barry A. Chatz $610 per hour David A. Golin $525 per hour Miriam R. Stein $485 per hour Michelle G. Novick $485 per hour Kevin H. Morse $300 per hour Brian P. Welch $295 per hour Generally, A&L's hourly rates are: Attorneys: $270 - $610 per hour Paralegals: $140 - $250 per hour Michael L. Gesas, Esq., a partner of A&L, attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Trainer Glass Trainor Glass Company, doing business as Trainor Modular Walls, Trainor Solar, and Trainor Florida, filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 12-09458) on March 9, 2012. The Hon. Carol A. Doyle oversees the case. David A. Golin, Esq., Michael L. Gesas, Esq., and Kevin H. Morse, Esq., at Arnstein & Lehr LLP, serve as the Debtor's counsel. The Debtor estimated both assets and debts of between $50 million and $100 million. Trainor was founded in 1953 by Robert J. Trainor Sr. to pursue a residential glass business in Chicago, Illinois. Trainor's business model was focused on quality fabrication, design, engineering, and installation of glass products and framing systems in virtually every architectural application, including (a) new construction, (b) green-building solutions, (c) building rehabilitation, (d) storefronts and entrances, (e) tenant interiors, and (f) custom-specialty work. A three-member official committee of unsecured creditors has been appointed in the case. TRAINER GLASS: Hires High Ridge as Financial Consultants -------------------------------------------------------- Trainor Glass Company sought and obtained approval from the U.S. Bankruptcy Court to employ Michael Eber, Tina Hughes and High Ridge Partners, Inc., as its financial consultant to, among other things: a. assist the Debtor with the coordination of resources related to the orderly liquidation of the Debtor's assets; b. assist in the preparation of information for distribution to creditors and others, including, but not limited to, schedules and statement of financial affairs, debtor in possession operating reports, budgets, cash receipts and disbursement analysis, analysis of various asset and liability accounts, and analysis of proposed transactions for which Court approval is sought; and c. attend meetings and assist in discussions with creditors, potential purchasers, banks, and the secured lender, any official committee(s). The firm's rates are: Personnel Rates --------- ----- Michael Eber $400 per hour Tina Hughes $310 per hour Other persons employed by High Ridge will render services to the Debtor as needed. Generally, High Ridge's hourly rates for associates are from $160 to $310 per hour. Michael Eber, a principal of High Ridge, attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Trainer Glass Trainor Glass Company, doing business as Trainor Modular Walls, Trainor Solar, and Trainor Florida, filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 12-09458) on March 9, 2012. The Hon. Carol A. Doyle oversees the case. David A. Golin, Esq., Michael L. Gesas, Esq., and Kevin H. Morse, Esq., at Arnstein & Lehr LLP, serve as the Debtor's counsel. The Debtor estimated both assets and debts of between $50 million and $100 million. Trainor was founded in 1953 by Robert J. Trainor Sr. to pursue a residential glass business in Chicago, Illinois. Trainor's business model was focused on quality fabrication, design, engineering, and installation of glass products and framing systems in virtually every architectural application, including (a) new construction, (b) green-building solutions, (c) building rehabilitation, (d) storefronts and entrances, (e) tenant interiors, and (f) custom-specialty work. A three-member official committee of unsecured creditors has been appointed in the case. TRAINER GLASS: Sugar Felsenthal Approved as Committee's Counsel --------------------------------------------------------------- The official committee of unsecured creditors of Trainor Glass Company sought and obtained approval from the U.S. Bankruptcy Court to retain Sugar Felsenthal Grais & Hammer LLP as counsel. The firm, among other things, will: a. advise the Committee on all legal issues as they arise; b. represent and advise the Committee regarding the terms of any sales of assets or plans of reorganization or liquidation, and assisting the Committee in negotiations with the Debtor and other parties-in-interest; and c. investigate the Debtor's assets and pre-bankruptcy conduct, and investigating the validity, priority and extent of any liens asserted against the Debtor's assets. The firm's rates are: Personnel Rates --------- ------ New associates $250 per hour Senior partners $655 per hour Paraprofessionals $55 to $225 per hour. The rates of the professionals providing the services are: Personnel Rates --------- ------ Aaron L. Hammer $655/hour Etahn M. Cohen $575/hour Mark S. Melickian $525/hour Michael A. Brandess $345/hour Jack R. O'Connor $275/hour To Committee attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm may be reached at: Aaron L. Hammer, Esq. SUGAR FELSENTHAL GRAIS & HAMMER LLP 30 N. LaSalle St., Ste. Tel: (312) 704-2170 E-mail: ahammer@sugarfgh.com About Trainer Glass Trainor Glass Company, doing business as Trainor Modular Walls, Trainor Solar, and Trainor Florida, filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 12-09458) on March 9, 2012. The Hon. Carol A. Doyle oversees the case. David A. Golin, Esq., Michael L. Gesas, Esq., and Kevin H. Morse, Esq., at Arnstein & Lehr LLP, serve as the Debtor's counsel. The Debtor estimated both assets and debts of between $50 million and $100 million. Trainor was founded in 1953 by Robert J. Trainor Sr. to pursue a residential glass business in Chicago, Illinois. Trainor's business model was focused on quality fabrication, design, engineering, and installation of glass products and framing systems in virtually every architectural application, including (a) new construction, (b) green-building solutions, (c) building rehabilitation, (d) storefronts and entrances, (e) tenant interiors, and (f) custom-specialty work. A three-member official committee of unsecured creditors has been appointed in the case. TRIDENT MICROSYSTEMS: Wants to Expand Scope of Employment of PwC ---------------------------------------------------------------- Trident Microsystems, Inc., et al., seek permission from the U.S. Bankruptcy Court for the District of Delaware to expand the scope of employment of PricewaterhouseCoopers LLP to include income tax preparation and transfer pricing analysis services, nunc pro tunc as of March 28, 2012. As reported by the Troubled Company Reporter on Feb. 13, 2012, the Court granted the Debtors permission to employ PwC as the Debtors' tax advisor and independent auditor, nunc pro tunc to the Petition Date, with these hourly rates: partner at $650, senior managing director at $650, directors at $550, managers at $475, senior associates at $375, and associates at $275. The Debtors believe that the expansion of PwC's employment is crucial to their efforts to navigate through Chapter 11 and provide a maximum recovery to their creditors. Entry into the pricing services agreement is critical to ensure that the Debtors' intercompany transactions between non-debtor Trident entities have been set at the appropriate levels for taxing purposes and to ensure that each Trident entity is being charged the proper amount for services provided by the other Trident entities. Failure to properly account for these fees could result in adverse tax consequences and improperly affect the recovery available for the Debtors and non-debtors. PwC has historically provided both the transfer Pricing Services and the Income Tax Services contemplated in the engagement letters. PwC will: a. prepare, and sign as preparer, the U.S. Corporation Income Tax Return Form 1120, s well as the required state corporate income tax returns for the tax year beginning Jan. 1, 2011, through Dec. 31, 2011, for the entities identified in the Income Tax Services Letter, and perform additional services that are not significant enough to require a separate engagement letter on an as-needed basis, like (i) providing advice, answers to questions and opinions on tax planning or reporting matters, and (ii) providing advice and assistance with respect to matters involving the IRS or other taxing authorities. In completing the Income Tax Services, PwC will perform those tasks set forth in the Tax Services Letter; and b. prepare and deliver a transfer pricing documentation report in connection with certain agreed-upon intercompany transactions for the fiscal year ended Dec. 31, 2011. In completing the Transfer Pricing Services, PwC will perform those tasks set forth in the Pricing Services Letter. Upon execution of the Tax Services Letter, and following the approval of the fees by the Court, the Debtors will pay to PwC a flat fee of $99,500 for the Income Tax Services. If additional state tax returns are required, the fee will be adjusted at a rate of $2,000 per state. Additionally, the fee for Forms 5471 and Forms 5472 will be $2,500. If additional services are required, such as assistance with recurring state and local tax planning issues and with dealing with state and local taxing authorities, PwC will charge these customary hourly rates: Partner $650 Senior Managing Director $650 Director $550 Manager $475 Senior Associate $375 Associate $275 Upon execution of the Pricing Services Letter, and following the approval of the fees by the Court, the Debtors will pay to PwC a flat fee of $22,000 for the Transfer Pricing Services. 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 $310 million in assets and $39.6 million in liabilities as of Oct. 31, 2011. The petition was signed by David L. Teichmann, executive VP, general counsel & corporate secretary. TRIDENT MICROSYSTEMS: Creditors Panel Can Hire Imperial as Advisor ------------------------------------------------------------------ The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware granted permission to the Official Committee of Unsecured Creditors of Trident Microsystems, Inc., et al., to retain Imperial Capital, LLC, as investment banker and financial advisor, nunc pro tunc to Jan. 19, 2012. As reported by the Troubled Company Reporter on Feb. 28, 2012, Imperial Capital will receive a monthly fee until the conclusion or termination of its engagement at the rate of $125,000. In addition, Imperial Capital will be entitled to seek approval by the Court of a completion fee of not less than $500,000 and not more than $1,000,000. Imperial Capital will receive monthly reimbursements for reasonable out-of-pocket expenses incurred with the rendition of investment banking and financial advisory services. 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 $310 million in assets and $39.6 million in liabilities as of Oct. 31, 2011. The petition was signed by David L. Teichmann, executive VP, general counsel & corporate secretary. TRIDENT MICROSYSTEMS: Wants Plan Filing Period Extended to July 2 ----------------------------------------------------------------- Trident Microsystems, Inc., et al., ask the Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware to extend by 60 days the exclusive periods for the filing of a Chapter 11 plan and the solicitation of acceptances of the plan until July 2, 2012, and Aug. 31, 2012, respectively. The Debtors are a large enterprise with multiple discrete business units, certain of which the Debtors have sold or are in the process of selling to maximize value for all constituencies. These processes have proven to be extremely complicated and time- consuming. Indeed, these sale processes have involved a thorough analysis of many of the Debtors' thousands of material contracts and their extensive intellectual property portfolio. With numerous interests to protect and satisfy, spread across many creditors with millions of dollars in potential liabilities, the Debtors' cases are large and complex enough to warrant an extension of the Exclusive Periods," Stuart M. Brown, Esq., at DLA Piper LLP, the attorney for the Debtors, said. The Debtors have been paying, and will continue to pay, their undisputed postpetition debts as they come due and have operated their businesses in the ordinary course since the filing of the bankruptcy cases. The Debtors have conducted successful marketing processes for their STB Business Unit and TV Business Unit. The STB Business Unit marketing process culminated in an extremely successful auction that provided significant value to the Debtors' estates. Likewise, the sale of the TV Business Unit will provide considerable value to the Debtors' estates when it closes in the coming weeks. The Debtors continue to work diligently to maximize the value of their remaining assets for all parties in interest. The Court has set a hearing for May 15, 2012, at 10:00 a.m. (Eastern Daylight Time) on the Debtors' request to extend the Exclusive Periods. 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 $310 million in assets and $39.6 million in liabilities as of Oct. 31, 2011. The petition was signed by David L. Teichmann, executive VP, general counsel & corporate secretary. TTK UNITED: Case Summary & 7 Largest Unsecured Creditors -------------------------------------------------------- Debtor: TTK United Corporation 1903 West Holt Avenue Pomona, CA 91768 Bankruptcy Case No.: 12-24776 Chapter 11 Petition Date: April 26, 2012 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Robert N. Kwan Debtor's Counsel: Mufthiha Sabaratnam, Esq. SABARATNAM AND ASSOCIATES 11601 Wilshire Bl Ste 500 Los Angeles, CA 90025 Tel: (310) 575-4893 Fax: (213) 403-6230 E-mail: pke115mfs@yahoo.com Scheduled Assets: $1,448,300 Scheduled Liabilities: $1,275,961 A copy of the Company's list of its seven largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb12-24776.pdf The petition was signed by Philip Koovakada, president. UNISYS CORP: S&P Affirms 'BB-' Rating on Senior Unsecured Debt -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' rating on Unisys Corp.'s senior unsecured debt, but revised the recovery rating on the debt to '4' from '3'. "The '4' recovery rating indicates that investors could expect average (30%-50%) recovery of principal in the event of a payment default. The recovery rating revision reflects the potential for higher post-retirement obligations at default," S&P said. "The corporate credit rating on Unisys is 'BB-', reflecting our view that the company's moderately leverage and consistently positive annual discretionary cash flow will provide sufficient cushion in the near term to mitigate modest total revenue growth and potential operating performance volatility," S&P said. RATINGS LIST Unisys Corp. Corporate Credit Rating BB-/Stable/-- Rating Affirmed; Recovery Rating Revised Unisys Corp. To From Senior Unsecured BB- BB- Recovery Rating 4 3 UNITED WESTERN: Taps BuckleySandler as Special Counsel ------------------------------------------------------ BankruptcyData.com reports that United Western Bancorp filed with the U.S. Bankruptcy Court a motion to retain BuckleySandler (Contact: Andrew L. Sandler) as special counsel at these hourly rates: * senior partner at $1,080, * partner I at $960, * partner II at $880, * partner III at $790, * senior counsel at $780, * counsel / of counsel at $740, * senior associate level II at $680, * senior associate level I at $640, * junior associate at $490, * 1st year associate at $310, * regulatory attorney at $260, * staff attorney at $220, and * legal assistant at $195 to $215. About United Western United Western Bancorp, Inc., along with two affiliates, filed for Chapter 11 protection (Bankr. D. Colo. Case No. 12-13815) on March 2, 2012. Harvey Sender, Esq., at Sender & Wasserman, P.C., represents the Debtor. Judge A. Bruce Campbell presides over the case. The Debtor, formerly known as Matrix Bancorp Inc., estimated assets of up to $10 million and debts of $50 million to $100 million as of the Chapter 11 filing. The schedules say that liabilities total $53.3 million, of which $40.5 million is unsecured. VAUGHAN CO: Accountant's Claims Against Ch. 11 Trustee Dismissed ---------------------------------------------------------------- Magistrate Judge William P. Lynch dismissed counterclaims asserted by Patti Maddox against the bankruptcy estate of Vaughan Company, Realtors, at the behest of Judith A. Wagner, the Chapter 11 trustee appointed in the case. Ms. Wagner, acting in her official capacity as trustee, brought the lawsuit against Ms. Maddox alleging breach of contract, negligence, breach of the fiduciary duty of loyalty, and aiding and abetting the breach of a fiduciary duty. Ms. Maddox was VCR's account manager and accountant until 2010. Ms. Wagner seeks compensatory, consequential, and punitive damages, as well as disgorgement of any monies paid by VCR to Ms. Maddox for her services. Ms. Maddox asserted counterclaims against Ms. Wagner, VCR, and former VCR minority shareholder, James Salazar, for malicious prosecution and indemnification. Ms. Wagner moved to dismiss both counterclaims for lack of subject matter jurisdiction and failure to state a claim. The District Court held that the U.S. Supreme Court held in Barton v. Barbour, 104 U.S. 126, 128 (1881), superceded in part by statute, 28 U.S.C. Sec. 959, that "before suit is brought against a receiver[,] leave of the court by which [the receiver] was appointed must be obtained." Courts have dubbed this rule the Barton Doctrine and expanded it to include bankruptcy proceedings. Since Ms. Maddox did not acquire leave of the U.S. Bankruptcy Court for the District of New Mexico to file her counterclaims, the District Court said it may not consider them at this time. The case is Vaughan Company, Realtors, Plaintiff/Counter Defendant, v. Patti Maddox, Defendant/Counter Claimant, No. CV 12-0115 WPL/ACT (D. N.M.). A copy of the District Court's April 23, 2012 Memorandum Opinion and Order is available at http://is.gd/sWLrA4from Leagle.com. Patti Maddox is represented by: Alfred L. Green, Jr., Esq. BUTT THORNTON & BAEHR PC 4101 Indian School Rd NE, Suite 300 South Albuquerque, NM 87110 Telephone: (505) 884-0777 (800) 322-6883 Facsimile: (505) 889-8870 E-mail: algreen@btblaw.com Judith A. Wagner, the Chapter 11 Trustee, is represented by: Edward A. Mazel, Esq. James A. Askew, Esq. ARLAND & ASSOCIATES, LLC 201 Third Street, NW, Suite 505 Albuquerque, NM 87102 - and - Maureen A. Sanders, Esq. SANDERS & WESTBROOK, PC 102 GRANITE NW Albuquerque, NM 87102-2310 Tel: (505) 243-2243 About Vaughan Company Vaughan Company, Realtors, descended into bankruptcy after Douglas F. Vaughan, the former controlling shareholder, used the company to run a Ponzi scheme from 1993 until January 2010. Mr. Vaughan has entered into a plea agreement with the United States, admitting guilt to various securities violations. As reported in the Troubled Company Reporter on March 26, 2010, the Securities and Exchange Commission filed fraud charges against Mr. Vaughan, a New Mexico realtor, and obtained an emergency court order to halt his $80 million Ponzi scheme. The SEC's complaint, filed in federal court in Albuquerque, alleges that Douglas F. Vaughan through his company -- The Vaughan Company Realtors -- issued promissory notes that he claimed would generate high fixed returns for investors. Mr. Vaughan also used another entity -- Vaughan Capital LLC -- to solicit investors for different types of real estate-related investments, such as buying residential properties at distressed prices. Mr. Vaughan relied entirely on new money raised from investors through both companies to fund Vaughan Company's ever-increasing obligations to note holders. The SEC also charged both of Mr. Vaughan's companies in the enforcement action. Neither Mr. Vaughan nor his companies are registered with the SEC to offer securities under the federal securities laws. The Vaughan Company Realtors filed for Chapter 11 protection on Feb. 22, 2010 (Bankr. N.M. Case No. 10-10759). George D. Giddens, Jr., Esq., represents the Debtor in its restructuring efforts. The Company estimated both assets and debts of between $1 million and $10 million. W.R. GRACE: Intrawest Has Green Light to Pursue Litigation ---------------------------------------------------------- Judge Judith Fitzgerald approved an amended stipulation resolving a motion of Intrawest California Holdings, Inc., et al., for relief from the automatic stay. On February 22, 2012, Plaintiffs in the lawsuits separately commenced by First Ascent Owner's Association, 22 Station Owner's Association and Squaw Valley Neighborhood Company produced revised costs of repair reports, which reallocated their construction defect claims relating to various portions of a construction at Phase I of The Village at Squaw Valley project among the three matters, including the defect claims for which Intrawest alleges Grace is liable. Based upon the Plaintiffs' re-allocation of their claims among the three litigations, it has become necessary for Intrawest to name Grace as a cross-defendant in the lawsuits. Under the Amended Stipulation, the Debtors, Intrawest California Holdings, Inc., Intrawest Retail Groups, Inc., 22 Station Development Corporation, First Ascent Development Corporation and Intrawest Corporation agreed that: -- the Automatic Stay is modified to allow Intrawest to liquidate its claims in the three litigations through adjudication in the Superior Court of California or through settlement of those claims; -- Intrawest agrees that as the result of liquidating any judgment or settlement against Grace arising out of the three litigations, it will take no action against the estates of any of the Debtors for the purpose of collecting on the judgment or settlement; -- Intrawest agrees that if it obtains a judgment against or enter into a settlement involving Grace in the three litigations, it will proceed to collect the judgment or settlement only from the proceeds of the Debtors' policy issued by American Home Insurance Company, up to the $7.5 million limit; -- Intrawest specifically waive: * the right to take any action to collect from or against the estates of any of the Debtors as a result of the liquidation of any judgment or settlement against Grace in the three litigationas; and * the right to file a claim against any of the Debtors with respect to the liquidation of any judgment or settlement against Grace in the three litigations; and -- the motion to lift stay is withdrawn. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) - - http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace obtained confirmation of a plan co-proposed with the Official Committee of Asbestos Personal Injury Claimants, the Official Committee of Equity Security Holders, and the Asbestos Future Claimants Representative. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. Implementation of the Plan has been held up by appeals in District Court from various parties, including a group of prepetition bank lenders and the Official Committee of Unsecured Creditors. District Judge Ronald Buckwalter on Jan. 31, 2012, entered an order affirming the bankruptcy court's confirmation of W.R. Grace & Co. and its debtor affiliates' Plan of Reorganization. Bankruptcy Judge Judith Fitzgerald had approved the Plan on Jan. 31, 2011. On April 20, 2012, the company filed a motion with the Bankruptcy Court to approve the definitive agreements among itself, co-proponents of the Plan, BNSF railroad, several insurance companies and the representatives of Libby asbestos personal injury claimants, to settle objections to the Plan. Pursuant to the agreements, the Libby claimants and BNSF would forego any further appeals to the Plan. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W.R. GRACE: Claims Over Big Tex Site Resolved for $2-Mil. --------------------------------------------------------- W.R. Grace and its affiliates ask the Bankruptcy Court to approve its stipulation and settlement agreement resolving the claim of the United States Government relating to the Big Tex Site, in San Antonio, Texas. On March 23, 2003, the Claimant filed Claim Nos. 9634 and 9635 against the Debtors W. R. Grace & Co. and Kootenai Development Company. On June 2, 2008, the Court entered its order authorizing the EPA Multi-Site Agreement Resolving the United States' Proofs of Claim Regarding Certain Environmental Matters. Pursuant to the procedures set forth in the EPA Multi- Site Agreement Order, the Claimant notified the Debtors of the Big Tex Additional Site Claim, which the Claimant estimated to be approximately $2,248,448. Under the April 9, 2012 Stipulation, the Claimant and the Debtors have agreed that the Big Tex Additional Site Claim will be an allowed general unsecured claim of $2,200,000 for environmental remediation response costs at the Big Tex Site, along with all other claims, liabilities or obligations of the Debtors to the Settling Federal Agencies under Sections 106 and 107 of the Comprehensive Environmental Response, Compensation and Liability Act and Section 7003 of the Resource Conservation and Recovery Act. To the extent allowed by, and pursuant to the terms of, the Debtors' Confirmed Plan of Reorganization, interest begins to accrue on the Big Tex Additional Site Claim on January 17, 2012, and continue accruing until the date on which a distribution is made in satisfaction thereof at the rate and on the terms specified in the Plan for Allowed General Unsecured Claims. A hearing will be held on June 18, 2012, to consider the request. Objections are due on June 1. The Government is publishing notice in the Federal Register of the filing of the request and the Stipulation and identifying a public comment period. After the conclusion of the public comment period, the Government will file a statement informing the Court of any comments received, as well as the Government's responses to the comments. If the comment period expires prior to the June 11 deadline for filing the final agenda for the June 18 hearing, the Debtors will list the request on the preliminary agenda as going forward at that hearing. If the comment period expires after June 11, 2012, the hearing on the request will be continued until the next omnibus hearing which is currently scheduled for July 16, 2012. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) - - http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace obtained confirmation of a plan co-proposed with the Official Committee of Asbestos Personal Injury Claimants, the Official Committee of Equity Security Holders, and the Asbestos Future Claimants Representative. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. Implementation of the Plan has been held up by appeals in District Court from various parties, including a group of prepetition bank lenders and the Official Committee of Unsecured Creditors. District Judge Ronald Buckwalter on Jan. 31, 2012, entered an order affirming the bankruptcy court's confirmation of W.R. Grace & Co. and its debtor affiliates' Plan of Reorganization. Bankruptcy Judge Judith Fitzgerald had approved the Plan on Jan. 31, 2011. On April 20, 2012, the company filed a motion with the Bankruptcy Court to approve the definitive agreements among itself, co-proponents of the Plan, BNSF railroad, several insurance companies and the representatives of Libby asbestos personal injury claimants, to settle objections to the Plan. Pursuant to the agreements, the Libby claimants and BNSF would forego any further appeals to the Plan. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W.R. GRACE: Realigns Business Into Three Operating Segments ----------------------------------------------------------- In a Form 8-K filing with the U.S. Securities and Exchange Commission on April 2, 2012, as amended on April 19, W. R. Grace & Co. said that it previously operated its business under two operating segments, Grace Davison and Grace Construction Products. In the 2012 first quarter, Grace announced a realignment of its business into three operating segments: * Grace Catalysts Technologies, * Grace Materials Technologies, and * Grace Construction Products. Grace made this change to align its operating segments more closely with the markets it serves, and to better position its businesses to realize operational efficiencies and reduce overhead costs, said Hudson La Force III, the Company's senior vice president and chief financial officer. Grace Catalysts Technologies includes catalysts and related technologies used in refining, petrochemical, and other chemical manufacturing applications. Grace's Advanced Refining Technologies joint venture is managed in this segment. Grace Materials Technologies includes engineered materials, coatings, and sealants used in industrial, consumer, pharmaceutical, and packaging applications. Grace Construction Products includes specialty construction chemicals and specialty building materials used in commercial, infrastructure, and residential construction. Together, Grace Catalysts Technologies and Grace Materials Technologies comprise the former Grace Davison operating segment. Revised Analysis of Operations Presentation Grace says it intends to begin reporting revised segment operating results effective with the release of earnings information for the 2012 first quarter. The net sales, segment operating income, margin, and other financial information for Grace Catalysts Technologies and Grace Materials Technologies is new information. No changes have been made to the financial information of Grace Construction Products or of total Grace. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) - - http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace obtained confirmation of a plan co-proposed with the Official Committee of Asbestos Personal Injury Claimants, the Official Committee of Equity Security Holders, and the Asbestos Future Claimants Representative. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. Implementation of the Plan has been held up by appeals in District Court from various parties, including a group of prepetition bank lenders and the Official Committee of Unsecured Creditors. District Judge Ronald Buckwalter on Jan. 31, 2012, entered an order affirming the bankruptcy court's confirmation of W.R. Grace & Co. and its debtor affiliates' Plan of Reorganization. Bankruptcy Judge Judith Fitzgerald had approved the Plan on Jan. 31, 2011. On April 20, 2012, the company filed a motion with the Bankruptcy Court to approve the definitive agreements among itself, co-proponents of the Plan, BNSF railroad, several insurance companies and the representatives of Libby asbestos personal injury claimants, to settle objections to the Plan. Pursuant to the agreements, the Libby claimants and BNSF would forego any further appeals to the Plan. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) WESTLB AG: Prudential's $27M Suit Over Ethanol Plants' Sale Stays ----------------------------------------------------------------- Eric Hornbeck at Bankruptcy Law360 reports that New York state Judge Charles E. Ramos refused Thursday to decide if syndicated financing agent WestLB had shortchanged Prudential Insurance Co. of America and two other lenders out of $27.1 million through the post-bankruptcy sale of two Midwestern ethanol plants to Valero Energy Corp. According to Law360, Judge Ramos denied a cross-motion from the ethanol plants' former operating company, ASA Ethanol Holdings LLC, and said he would rule later on the jilted lenders' motion for summary judgment on their breach of contract and other claims. About WestLB AG Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB) -- http://www.westlb.com/-- provides financial advisory, lending, structured finance, project finance, capital markets and private equity products, asset management, transaction services and real estate finance to institutions. In the United States, certain securities, trading, brokerage and advisory services are provided by WestLB AG's wholly owned subsidiary WestLB Securities Inc., a registered broker-dealer and member of the NASD and SIPC. WestLB's shareholders are the two savings banks associations in NRW (25.15% each), two regional associations (0.52% each), the state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by NRW (64.7%) and two regional associations (35.3%). * Tampa, Florida Bankruptcy Judge Paskay Passes Away ---------------------------------------------------- The Honorable Alexander L. Paskay, a U.S. bankruptcy judge in Tampa, Florida (Bankr. M.D. Fla.) passed away peacefully April 27, 2012, with Mrs. Paskay (his wife of 62 years) and their sons, Steve and Rick at his side. Judge Paskay will certainly be missed by his Colleagues in this District and around the nation, together with his Court family in the Tampa and Ft. Myers Divisions, according to a notice posted in the bankruptcy court's Web site. Funeral services will be held on Saturday, May 5, 2012, at 2:00 p.m. at Sacred Heart Catholic Church, (Corner of Twiggs Street and Florida Avenue), 509 North Florida Avenue, Tampa, Florida. A Gathering of loved ones and friends will be held immediately following the service at Stetson University College of Law, Tampa Law Center, 1700 North Tampa Street, in Tampa, Florida. Those wishing to honor his memory may make a contribution to one of the following: Judge Alexander L. Paskay Endowed Scholarship Fund Stetson University College of Law 1401 61st Street, South Gulfport, FL 33707 Moffitt Cancer Center Foundation P. O. Box 23827 Tampa, FL 33633-3827 LifePath Hospice Administrative Office 3010 W. Azelle Street Tampa, FL 33609 Hardworking Judge Judge Paskay was a bankruptcy judge for 47 years and was the second-longest serving bankruptcy judge in U.S. history. According to Bloomberg News bankruptcy columnist Bill Rochelle, Judge Paskay continued hearing a full load of cases until he retired a second time on Dec. 31. Mr. Rochelle recounts that Judge Paskay, born in Hungary in 1922, received his undergraduate education at the University of Budapest before immigrating to the U.S. in 1949. After a legal education at the University of Miami School of Law, he served as law clerk for two U.S. district judges in Florida before being appointed as a bankruptcy referee in 1963. With the adoption of new bankruptcy laws in 1978, bankruptcy referees became bankruptcy judges, as they are known today. According to Mr. Rochelle, Judge Paskay continued serving as a bankruptcy judge well beyond normal retirement age. After retiring a first time in September 1999, he returned one year later on what's known as recall status. He retired for the last time in December. While on recall, Judge Paskay took a full case load, Lee Ann Bennett, clerk of the U.S. Bankruptcy Court for the Middle District of Florida, said in an interview. Most retired judges, Ms. Bennett said, take a half case load. Throughout his career on the bench, Judge Paskay presided over 154,000 cases, according to the Administrative Office of the U.S. Courts. Hard work characterized Judge Paskay's career as a judge. During Florida's periodic real estate debacles when the case load was overwhelming, Judge Paskay would hold hearings on Saturdays. This writer's appearances in Judge Paskay's court were uniformly exhilarating. There was nothing he hadn't seen before. Where some judges could allow a lawyer to speak a minute before interrupting with a question, Judge Paskay might break in while the lawyer was rising to speak. Judge Paskay was a founder of the American Bankruptcy Institute. * 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 2,183.9 (1,037.0) 525.8 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 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) 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) CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CARMIKE CINEMAS CKEC US 422.9 (5.6) (33.4) 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) 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) 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) 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 931.2 (189.7) 108.9 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GOLD RESERVE INC GRZ CN 78.3 (25.8) 56.9 GOLD RESERVE INC GRZ US 78.3 (25.8) 56.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 HCA HOLDINGS INC HCA US 26,898.0 (7,014.0) 1,679.0 HUGHES TELEMATIC HUTC US 94.0 (111.8) (39.0) HUGHES TELEMATIC HUTCU 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 1,077.7 (80.9) 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 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 MERRIMACK PHARMA MACK US 85.3 (21.7) 39.4 MONEYGRAM INTERN MGI US 5,175.6 (110.2) (40.4) MOODY'S CORP MCO US 2,876.1 (158.4) 290.4 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 595.0 (183.4) 39.6 NPS PHARM INC NPSP US 214.0 (46.1) 156.0 NYMOX PHARMACEUT NYMX US 6.4 (5.2) 2.9 OMEROS CORP OMER US 27.0 (5.6) 7.0 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 PEER REVIEW MEDI PRVW US 0.0 (2.5) (2.6) 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 SUN COMMUNITIES SUI US 1,368.0 (100.7) - 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) ********* 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 ***