/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/120705.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, July 5, 2012, Vol. 16, No. 185 Headlines 3POWER ENERGY: Delays Fiscal 2012 Annual Report 4KIDS ENTERTAINMENT: Five Directors Elected at Annual Meeting ABA FIRE EQUIPMENT: Can't Surcharge JPMorgan Collateral ABOUND SOLAR: Files for Chapter 7 Bankruptcy ADMIRAL DRYWALL: Case Summary & 20 Largest Unsecured Creditors AMERICAN AIRLINES: Court Approves HP Enterprise Settlement AMERICAN AIRLINES: Court Approves More E&Y Work AMERICAN AIRLINES: BNY Mellon Seeks Adequate Protection AMERICAN AIRLINES: HTL Operating Wants Ruling on Contract AMERICAN AIRLINES: Resolves Flight 311 Plaintiffs' Claims AMERICAN BABY: Maclaren to Cover Claims Against Firm AMERICAN DIAGNOSTIC: Plan Hearing Set for July 10 AMERICAN ENERGY: Swings to Profit in March 31 Quarter AMESTEIN FRISCO: Case Summary & 10 Largest Unsecured Creditors AMKOR TEC: Upsized Bank Facilities No Impact on Moody's 'Ba3' CFR AMWEST IMAGING: Peter Messineo Raises Going Concern Doubt APPLETON PAPERS: S-4 Registration Statement Declared Effective AVISTAR COMMUNICATIONS: Amends Note Agreement with JP Morgan AZTLAN COLD: Voluntary Chapter 11 Case Summary BASIC ENERGY: S&P Raises Senior Unsecured Notes Rating to 'B+' BECHARA HONEIN: 9th Cir. BAP Affirms Ruling in Partnership Dispute BEHRINGER HARVARD: Transfers Condominium Unit to Credit Union BETSEY JOHNSON: Settles Debt With Creditor Steve Madden BIOPACK ENVIRONMENTAL: Has Exclusive License to Beaute de Maman BIOZONE PHARMACEUTICALS: Amends 8.3MM Shares Resale Prospectus BURCAM CAPITAL: Files for Bankruptcy to Renegotiate Loan Terms CDM JOINT VENTURES: Voluntary Chapter 11 Case Summary CHINA NETWORKS: UHY Vocation Raises Going Concern Doubt CHISEN ELECTRIC: Mazars CPA Raises Going Concern Doubt CHRIST HOSPITAL: Judge Approves $45.3MM Sale of Hospital CIRCLE STAR: Faces Cottonwood Fraud Complaint in Oklahoma CLEANTECH INNOVATIONS: Posts $2.58 Million Net Loss in Q1 2012 CLIFFS CLUB: Wins Permission to Start Polling Creditors on Plan COMMERCIAL MANAGEMENT: Can Access Cash Collateral Through Sept. 30 COMMERCIAL MANAGEMENT: Files Schedules of Assets and Liabilities COMMUNITY FINANCIAL: BKD LLP Raises Going Concern Doubt CROSSOVER FINANCIAL I: DeCelles Creditors Lose Case Dismissal Bid CYBERDEFENDER CORP: Exclusive Filing Period Extended to Sept. 20 CYBERDEFENDER CORP: Court Sets Aug. 21 as Claims Bar Date DESERT CAPITAL: Klayman Files Claim vs. Calton for Losses DELTA PETROLEUM: Files Amended Chapter 11 Reorganization Plan DESERT GARDENS: Plan to Pay U.S. Bank Debt for 30 Years DEWEY & LEBOEUF: Trustee Objects to Some Advisers Hiring DIALOGIC INC: Fails to Comply with NASDAQ's Market Value Rule DYNEGY HOLDINGS: U.S. Trustee Objects to Merger EAST COAST DIVERSIFIED: Posts $754,600 Net Loss in Q1 2012 EASTMAN KODAK: Retiree Committee Wants to Remove Cap on Fees EASTMAN KODAK: Shares Documents to Secured Debt Holders EASTMAN KODAK: Unsecured Noteholders Want Financials Made Public EASTMAN KODAK: Retiree Panel Proposes Zolfo as Fin'l Adviser EMPRESAS MARTINEZ: Puerto Rico Court Rules on Chevron Funds EMPRESAS PLAYA: Case Summary & 9 Largest Unsecured Creditors EVA ROMERO: Owner of Humphrey's on the Delta Files for Bankruptcy EXECUTIVE CENTER: Has Deal With Platinum Courtyard on Cash Use FLETCHER INT'L: Sues Bermuda Liquidators in Bankruptcy Court FUELSTREAM INC: Posts $95,900 Net Loss in Q1 2012 FULLER BRUSH: Files Schedules of Assets and Liabilities GERALD ROBERTSON: Case Summary & 20 Largest Unsecured Creditors GLOBAL GREEN: K.R. Margetson Raises Going Concern Doubt GOOD SAM: Commences Offer to Buy $4.9-Mil. 11.50% Senior Notes GRUBB & ELLIS: Reaches Deal With Workers on 9/11 Lawsuits HAMPTON ROADS: CapGen Capital Owns 19.2% of Shares as of May 21 HAMPTON ROADS: Carlyle Group Has 22.7% Stake as of May 21 HAWKER BEECHCRAFT: Files Amended Chapter 11 Plan HD SUPPLY: Completes Acquisition of Peachtree Business HEALTHWAREHOUSE.COM INC: Marcum LLP Raises Going Concern Doubt HEARTHSTONE HOMES: Committee Fails to Block Wells Fargo Loan HILCORP ENERGY: Moody's Raises Corporate Family Rating to 'Ba2' HUDSON TREE: Case Dismissed After Approval of Bank7 Financing IDO SECURITY: DTC Lifts "Deposit Chill" on Common Stock INDY HOTEL: Case Summary & 14 Largest Unsecured Creditors INTEGRATED FREIGHT: Delays Form 10-K for Fiscal 2012 INTERLEUKIN GENETICS: Enters Into Exchange Agreement with Pyxis JEFFERSON COUNTY: Judge Rules for Bondholders in Sewer Fight KM ASSOCIATES: Will File Amended Disclosure Statement on July 31 KV PHARMACEUTICAL: Fails to Comply with NYSE's $1 Bid Price Rule LENCO MOBILE: Peterson Sullivan Raises Going Concern Doubt LIQUIDMETAL TECHNOLOGIES: 5 Directors Elected at Annual Meeting LIQUIDMETAL TECHNOLOGIES: Completes $12-Mil. Private Placement LLS AMERICA: U.S. Laws Apply to Case Trustee's Lawsuits LOGIC DEVICES: Posts $456,800 Net Loss in March 31 Quarter LON MORRIS COLLEGE: Files for Chapter 11 in Tyler, TX MAMMOTH LAKES: Files for Chapter 9 Bankruptcy MARIAH MOORE: Case Summary & 3 Largest Unsecured Creditors MOUNTAIN PROVINCE: Tuzo Kimberlite Volume Increased by 78.5% MEDIA GENERAL: Messrs. Conschafter and Cottingham Elected VPs MSR RESORT: Hilton Expert Says Nixing MSR Deals Would Harm It MUSCLEPHARM CORP: Amends 2011 Reports Due to Accounting Errors NEBRASKA BOOK: Emerges From Chapter 11 Bankruptcy Protection NEBRASKA BOOK: Neebo Issues $100 Million Senior Secured Notes NEBRASKA BOOK: Suspending Filing of Reports with SEC NET ELEMENT: Unit Borrows US$4.5 Million from Green Venture NEWPAGE CORP: Rebuffs Verso Paper's Overtures in Bankruptcy Deal NORAM RESOURCES: D&O Negligence Claims Belong to Bankruptcy Estate NORTH LAS VEGAS: Declares Emergency to Cut Labor Costs NORTHSTAR AEROSPACE: Court Approves Asset Sale to Heligear NORTHWEST ATLANTA: Case Summary & 10 Largest Unsecured Creditors NPS PHARMACEUTICALS: Inks 5th Amendment to Amgen License Pact OCEANSIDE YACHT CLUB: Files for Chapter 11 in Wilson PANAM INVESTMENT: Case Summary & 5 Largest Unsecured Creditors PATIENT SAFETY: Files Form S-1, Registers 2.5MM Common Shares PEACHTREE INDUSTRIAL: Case Summary & 5 Largest Unsecured Creditors PENN CAMERA: Deadline to Challenge Cannon, Nikon Claims Extended PROELITE INC: Jerry Rubinstein Named Board Chairman and CEO PUBLIC BROADCASTING: Moody's Withdraws 'Ba1' Bond Rating RADIENT PHARMACEUTICALS: Operations Minimal, Warns Bankruptcy RESIDENTIAL CAPITAL: Proposes FTI as Financial Advisor RESIDENTIAL CAPITAL: Hiring Centerview as Investment Banker RESIDENTIAL CAPITAL: Seeks to Employ Morrison as Legal Counsel RESIDENTIAL CAPITAL: Taps Mallet-Prevost as Conflicts Counsel RG STEEL: Objects to Enviros' Exemption Claim to Ch. 11 Stay RITZ CAMERA: Proposes GOB Sales at 59 Stores RIVER POINT: Case Summary & 20 Largest Unsecured Creditors ROYAL SEATING: School & Library Furniture Maker in Chapter 11 SEP RIVERPARK: Equity Holder Proposes Competing Plan SHENGDATECH INC: Files Amended Chapter 11 Plan SKINNY NUTRITIONAL: Enters Into $15 Million Financing with Trim SPRING HILL: Case Summary & 5 Largest Unsecured Creditors STEREOTAXIS INC: Files Form S-1; Registers 28.1MM Common Shares STOCKTON, CA: Attorneys Say City Deserves Bankruptcy Protection STRATEGIC CAPITAL: Judge Dismisses $2MM Fraudulent Transfer Suit TC GLOBAL: Delays Fiscal 2012 Annual Report TPF GENERATION: S&P Affirms 'B' Rating on $495MM 2nd Lien Loan TRANS-LUX CORP: Stockholders Elected Salvatore Zizza as Director VALENCE TECHNOLOGY: Incurs $12.7 Million Net Loss in Fiscal 2012 VENUS HOSPITALITY: Case Summary & 9 Largest Unsecured Creditors VHGI HOLDINGS: Inks 3rd Amendment to Platinum Note Purchase Pact WA ROUTE 9: PAF Capital LLC Sues for Fraud WASHINGTON MUTUAL: Shareholder Objects to Weil Gotshal's Fees WESTMORELAND COAL: Has $20MM Revolving Facility with PrivateBank WESTMORELAND COAL: Six Directors Elected at Annual Meeting W.R. GRACE: Garlock Takes Plan Appeal to Third Circuit W.R. GRACE: W.D. Pa. Court Defers to Delaware District Court WRENA LLC: Case Summary & 20 Largest Unsecured Creditors XIANBURG DATA: Receives TSX Delisting Notice ZALE CORP: Incurs $4.5 Million Net Loss in March 31 Quarter * Moody's Says REIT Ruling Neg. for Skilled Nursing Facilities * Feds Release 'Living Will' Outlines for 9 Big Banks * Bernstein Law Firm Changes Name to Bernstein-Burkley * Jeremy R. Bloor Joins McDonald Hopkins' West Palm Beach Office * Meyers Nave's Michael Sweet Joins Fox Rothschild * Patton Boggs' Michael Richman Moves to Hunton & Williams * Recent Small-Dollar & Individual Chapter 11 Filings ********* 3POWER ENERGY: Delays Fiscal 2012 Annual Report ----------------------------------------------- 3Power Energy Group, Inc., was unable, without unreasonable effort or expense, to file its annual report on Form 10-K for the year ended March 31, 2012, by the June 29, 2012, filing date applicable to smaller reporting companies due to a delay experienced by the Company in completing its financial statements and other disclosures in the annual report. As a result, the Company is still in the process of compiling required information to complete the annual report and its independent registered public accounting firm requires additional time to complete its review of the financial statements for the year ended March 31, 2012, to be incorporated in the annual report. The Company anticipates that it will file the annual report no later than the fifteenth calendar day following the prescribed filing date. About 3Power Energy 3Power Energy Group Inc. was incorporated in Nevada in December 2002. On March 30, 2011, the Company changed its name from Prime Sun Power Inc. to 3Power Energy and increased its authorized share capital to 300,000,000 shares. The Company plans to pursue a business model producing renewable generated electrical power and other alternative energies. On May 13, 2011, the Company acquired 100% of the issued and outstanding common stock of Seawind Energy Limited, in exchange for the issuance of 40,000,000 restricted shares of the Company's common stock. The acquisition was accounted for as a reverse merger and, accordingly, the Company is the legal survivor and Seawind Energy is the accounting survivor. The Company's balance sheet at Dec. 31, 2011, showed $4.35 million in total assets, $3.35 million in total liabilities, all current, and $1 million in stockholders' equity. "The Company has incurred operating losses in the last two years, and that the Company is dependent upon the management's ability to develop profitable operations. These factors among others may raise substantial doubt about the Company's ability to continue as a going concern which may make it more difficult to obtain future financing," the Company said in the Form 10-Q for the three months ended Dec. 31, 2011. 4KIDS ENTERTAINMENT: Five Directors Elected at Annual Meeting ------------------------------------------------------------- 4Kids Entertainment, Inc., held its 2012 annual meeting of stockholders on May 21, 2012. All five of the Company's nominees for director were elected to the board of directors, namely: (1) Duminda M. DeSilva, (2) Jay Emmett, (3) Michael Goldstein, (4) Wade I. Massad, and (5) Samuel R. Newborn. The appointment of EisnerAmper LLP as the Company's independent auditor to audit the Company's financial statements for the fiscal year ending Dec. 31, 2012, was ratified. 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 serves 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. ABA FIRE EQUIPMENT: Can't Surcharge JPMorgan Collateral ------------------------------------------------------- Bankruptcy Judge A. Jay Cristol denied the request of A.B.A. Fire Equipment Inc. and A-1 Fire Equipment Corp. to surcharge the collateral of JP Morgan Chase Bank, N.A., saying the Debtors have failed to carry their burden of proving any specific or quantifiable benefit to Chase. The Court previously approved the sale of substantially all of the Debtors' assets on Jan. 31, 2012. In their request, the Debtors seek to use a portion of the sales proceeds to pay: $54,116.07 for January Payroll tax, $4,864.47 in January Workman's Comp, $144,406.00 in accrued payroll, $38,691.95 in Accrued payroll taxes, $21,441.13 in January sales tax, $53,099.00 in Misc Vendor payments, $7,500.00 for January SUTA, and $84,068.36 in unpaid attorneys' fees and costs (the Court has awarded $198,731.36 and $114,663.00 has been paid from the Debtors' bank accounts), ----------- $408,186.98 total The sales price for substantially all of the Debtors' assets was $830,000, with Chase agreeing to a 10% carve-out for general unsecured creditors, so the sales proceeds in dispute are $747,000. Chase was owed on the Debtors' obligations against the collateral the total $1,375,747. The Debtors maintain they are entitled to surcharge Chase's collateral for the $408,186.98 because the Debtors' operating postpetition permitted the sale of substantially all of the assets as a going concern which resulted in a higher sale price. The Debtors also maintain that Chase would not have received more than 10%, or approximately $150,000, from the sale of the Debtors' receivables and other assets absent the bankruptcy. In its response, Chase argues the sales price was based almost exclusively on receivables and that those receivables did not arise postpetition, and that the Debtors' sale of substantially all of the assets was on substantially the same terms and conditions that was available before the bankruptcy. Thus, Chase contends that the sums sought by the Debtors for a surcharge were not reasonable or necessary. Chase also contends that the sale and its price were driven by the Debtors' principals seeking to maintain employment with the purchaser, and not to maintain the value of the collateral and that Chase was responsible for negotiating the final sales price. The Debtors noted in their request that "the stalking horse bid presented in the Sales Procedures Motion was essentially the same bid, on substantially the same terms and conditions, as had been presented to and discussed with Chase as far back as August of 2011 (in discussions leading up to the filing of these Chapter 11 Cases). Chase agreed, even at that time, that the proposed chapter 11 filing and 363 sale was in the best interests of all parties and expressly gave its support to the filing and the proposed sale transaction." The Court noted that the sale was almost all inventory and receivables -- allocating $755,886.35 to accounts receivable, $99,450.40 in inventory, and only $50,000.00 collectively to "fixed assets, intellectual property, and goodwill. The primary concern in the sale was providing jobs, not protecting Chase's collateral. The Court also noted the Debtors' receivables prepetition in September 2011 were $1,256,701.54 and at the time of its sale in February 2012 were $1,287,158.81. According the Court, the elements necessary to support a surcharge are not present in the case. Chase did not expressly or implicitly consent to a surcharge. The sale was mainly to secure jobs, not to safeguard Chase's collateral or to maximize its sales price. The value of Chase's collateral was not increased due to the bankruptcy as the receivables, the primary asset purchased, did not increase significantly, if at all, after the Debtor's bankruptcy filing. The judge said that, while Chase may have benefited from the sale of the receivables as a going-concern, the Debtors have been unable to quantify that benefit; and, Chase has already agreed to substantial carve-outs for general unsecured creditors and took other concessions to effectuate the sale. In addition, the Court has, by separate order, approved payment of certain attorneys' fees from the sale proceeds based on prior Court orders. The Court said the sums sought by the Debtors were accordingly not necessary or reasonable. A copy of the Court's June 29, 2012 Order is available at http://is.gd/Oz1qYNfrom Leagle.com. Miami, Florida-based A.B.A. Fire Equipment Inc. and A-1 Fire Equipment Corp. filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case Nos. 11-35796 and 11-35798) on Sept. 19, 2011. Judge A. Jay Cristol presides over the case. Peter D. Russin, Esq., at Meland Russin & Budwick, P.A., serves as the Debtors' counsel. In its petition, ABA Fire Equipment estimated $1 million to $10 million in both assets and debts. A-1 Fire Equipment estimated under $1 million in both assets and debts. The petition was signed by Earl Speigel, president. ABOUND SOLAR: Files for Chapter 7 Bankruptcy -------------------------------------------- Abound Solar Inc., a recipient of a federal loan guarantee from the U.S. Department of Energy, filed for Chapter 7 bankruptcy liquidation (Bankr. D. Del. Case No. 12-11972.) on July 2. Jamie Santo at Bankruptcy Law360 reports that Abound Solar joins fellow panel makers Solyndra LLC and Evergreen Solar Inc. in the Delaware bankruptcy court, those firms having sought Chapter 11 protection in September and August, respectively. Abound Solar was awarded a $400 million loan guarantee from the U.S. Department of Energy in July 2010 to build a facility in Indiana and expand its Longmont facility. Abound made the last draw on the loan in August 2011, around the time Solyndra halted manufacturing. Solyndra shut down after receiving a $535 million loan guarantee from the same U.S. Energy Department program. Solyndra filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12799) on Sept. 6, 2011 and is currently liquidating its assets. According to Reuters, the DOE has been criticized by Republicans for a loan guarantee of more than $500 million to solar module maker Solyndra, which went bankrupt last year amid allegations the White House had pushed for the loans for political reasons. Department of Energy spokesman Damien Lavera told the Denver Post that Abound Solar's liquidation would cost taxpayers between $40 million and $60 million after the liquidation because the company had used $70 million of the loan guarantee. Abound halted production in February from one plant in Colorado. The 125 remaining employees will lose their jobs when the company files for bankruptcy. Erica Teichert at Bankruptcy Law360 reports that GOP lawmakers on Monday requested that the CEO of Abound Solar testify about the company's DOE loan guarantee. The Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending hearing, scheduled for July 18, will exclusively focus on Abound and its DOE loan guarantee. ADMIRAL DRYWALL: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Admiral Drywall, Ltd. 36 Linnell Circle Billerica, MA 01821 Bankruptcy Case No.: 12-42476 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court District of Massachusetts (Worcester) Judge: Melvin S. Hoffman Debtor's Counsel: Michael S. Kalis, Esq. 632 High Street Dedham, MA 02026 Tel: (781) 461-0030 Fax: (781) 461-4563 E-mail: mikalislaw@verizon.net Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mab12-42476.pdf The petition was signed by Nancy M. DiMartino, president. AMERICAN AIRLINES: Court Approves HP Enterprise Settlement ---------------------------------------------------------- AMR Corp. and its affiliates sought and obtained the Bankruptcy Court's permission to enter into a settlement agreement with HP Enterprise Services, LLC. In 2008, the Debtors and HP are parties to a Fifth Amended and Restated Information Technology Services Agreement, whereby HP provides the Debtors with critical passenger processing services, including availability, reservations, ticketing, and airport processing and the software for such services is provided and maintained by certain affiliates of Sabre Inc. In 2010, the Debtors and HP entered into a prepetition Realtime Passenger Services System Agreement, to develop and migrate to a new Passenger Service System, including the software and hardware components. The Parties have worked together to develop the new Passenger Service System under the PSS Agreement. The Parties have been unable to reach agreement on several key issues affecting the project's direction and it became clear that an orderly termination of the PSS Agreement was in the best interests of both Parties. Accordingly, the Parties have entered into an agreement providing for the termination of the PSS Agreement. Under the agreement, HP will have an allowed prepetition unsecured claim against American Airlines, Inc., in the amount of $7,651,728 for goods and services provided before the Petition Date, under the PSS Agreement. In conjunction with the Termination Agreement, the Parties separately negotiated an amendment no. "54" to 5ITSA to move certain PSS-related work back to 5ITSA to assure that the Debtors' Passenger Service System will continue to run smoothly. Amendment No. 54 further reduces certain costs and expenses relating to the operation of the existing Passenger Service System. A full-text copy of the Termination Agreement, together with Amendment No. 545, is available for free at: http://bankrupt.com/misc/AmAir_HPEntSettlement.pdf The Settlement comprehensively resolves an extremely complex relationship with respect to the building of a critical operating system and provides the Debtors with the necessary flexibility to pursue other alternatives while assuring the ongoing uninterrupted functioning of their existing Passenger Service System, says Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, in New York. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. AMR'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: Court Approves More E&Y Work ----------------------------------------------- AMR Corp. and its affiliates won approval of a supplemental application to employ Ernst & Young LLP as their auditor and tax services provider, nunc pro tunc to May 7, 2012. The Debtors have determined that it is necessary to expand the scope of Ernst & Young's employment to perform additional auditing services, including: (a) Reporting on the balance sheet as of December 31, 2011 and the related consolidated statements of operations, stockholder's equity and cash flows for the year ended December 31, 2011 of Executive Ground Services, Inc.; and (b) Auditing the special purpose statement of the net revenue amount for American Airlines, Inc. for the period ended December 31, 2011, in accordance with the Alliance Standard Accounting Principles as set forth in the Revenue Sharing Agreement between American Airlines, Inc. and Japan Airlines. The Debtors will compensate EY LLP for the Additional Services: (A) Fixed Fee for Executive Ground Statutory Audit Services -- The Debtors have agreed to pay Ernst & Young a fixed fee equal to $30,000 for services rendered in connection with the Executive Ground Statutory Audit Services. (B) Hourly Fees for JAL Special Purpose Statement Services -- EY LLP intends to charge the Debtors for the JAL Special Purpose Statement Services based on its agreed hourly rates for such services, which range from $175 for Staff to $520 per hour for Partners depending on the particular services being provided. Ernst & Young will also seek reimbursement for expenses incurred. James Bradow, a partner at Ernst & Young LLP, discloses that his firm is currently a party or participant in certain litigation matters involving parties-in-interest in these Chapter 11 cases. He further discloses that certain parties-in-interest are lenders to Ernst & Young, including Barclays Bank; Citibank, NA; Fifth Third Bank; JP Morgan Chase Bank, NA; Lloyds TSB Bank PLC; PNC Bank NA; Wells Fargo; and the Royal Bank of Scotland PLC. The firm has also borrowed long term debt from Metropolitan Life Insurance Company and Westchester Fire Insurance Company. Ernst & Young continues to research connections to these two connections: American Beacon and PG&E. A copy of Ernst & Young's supplemental connections is available for free at http://bankrupt.com/misc/AMR_E&YSuppClientDisc.pdf Notwithstanding, Ernst & Young assures the Court that it 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. AMR'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: BNY Mellon Seeks Adequate Protection ------------------------------------------------------- The Bank of New York Mellon Trust Company, N.A., as Indenture Trustee for certain special airport revenue bonds, asks the Bankruptcy Court to require the Debtors to provide adequate protection of its interest in certain collateral that is declining in value due to the Debtors' continued use and consumption of that collateral. BNY Mellon is indenture trustee for approximately $1.3 billion in JFK Special Facility Revenue Bonds, $300 million in LAX Facilities Sublease Revenue Bonds, and $450 million in Tulsa Revenue Bonds. These tax-exempt municipal Bonds were issued by special financing entities of the cities of New York, Los Angeles, and Tulsa, respectively, and the proceeds of the issuances were provided to the Debtors to finance improvements and the construction of certain terminal and maintenance facilities occupied and used by American at the John F. Kennedy International Airport, Los Angeles International Airport, and Tulsa International Airport. The principal collateral securing repayment of the Bonds consist of the Indenture Trustee's interests in certain ground leases of terminal and maintenance facilities at the Airports. "With every day that passes in these cases, American is consuming the Collateral Leases as the remaining terms of these ground leases run. As time passes, the value of the Indenture Trustee's security interests decreases as well . . .," Amy Caton, Esq., at Kramer Levin Naftalis & Frankel LLP, in New York, says. Accordingly, rather than engage at this time in a full scale valuation process to determine the precise amount of lost value, the Indenture Trustee is seeking protection in the form of additional liens and an allowed superpriority claim pursuant to Section 507(b) of the Bankruptcy Code, Ms. Caton relays. 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. AMR'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: HTL Operating Wants Ruling on Contract --------------------------------------------------------- HTL Operating LLC, doing business as MCM Elegante Hotel, asks the Court to determine whether its prepetition services agreement with American Eagle is a "forward contract" and whether MCM is a "forward contract merchant" pursuant to Section 101(25) and (26) of the Bankruptcy Code. The prepetition agreement requires the hotel operator to provide hotel rooms for air crews at the rate of $69 a night at. A forward contract is defined in part as a contract "with maturity date more than two days after the contract was entered into." HTL argues that it has the right to terminate the contract because a forward contract can be terminated under an exception to the automatic stay imposed in bankruptcy. The agreement, HTL further argues, is a contract for the purchase and sale of a service, which is the subject of dealing in the forward contract trade, with multiple dates, more than two days after the date the agreement was entered into. HTL says American Eagle is in default under the contract because it has failed to pay outstanding and unpaid prepetition charges amounting to $27,679. 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. AMR'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: Resolves Flight 311 Plaintiffs' Claims --------------------------------------------------------- American Airlines Inc. and its affiliates entered into a stipulation with more than 80 claimants that are parties to the proceeding captioned In re American Airlines Flight 331, Case No. 1:10-cv-20131 (JAL), currently pending before the U.S. District Court for the Southern District of Florida. A list of the Flight 331 Claimants is available at: http://bankrupt.com/misc/AMR_Flight331Plaintiffs.pdf The Injury and Damage Claims that are subject of the Proceeding are covered in full or in part by available and collectible insurance coverage. Under the Stipulation, the parties agree that the automatic stay will be modified solely to allow the Claimants to prosecute their Injury & Damage Claims solely to the extent of the available and collectible coverage. The Claimants also agree to release and discharge the Debtors and their estates from all claims and obligations that arise from the Injury & Damage Claims. 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. AMR'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 BABY: Maclaren to Cover Claims Against Firm ---------------------------------------------------- Carolina Bolado at Bankruptcy Law360 reports that Maclaren Ltd. said Wednesday that it would honor product liability claims pending against its former U.S. distributor American Baby Products Inc., which is currently liquidating in Connecticut bankruptcy court. Bankruptcy Law360 says the claims stem from a November 2009 stroller recall over a side saddle hinge that caused numerous fingertip injuries to children, including several amputations. Maclaren says its strollers now feature a closed hinge mechanism that eliminated any potential for trapping fingers. AMERICAN DIAGNOSTIC: Plan Hearing Set for July 10 ------------------------------------------------- The Hon. Carol A. Doyle of the U.S. Bankruptcy Court for Northern District of Illinois approved the Disclosure Statement in support of the Plan of Reorganization filed by American Diagnostic Medicine Inc. A hearing to consider confirmation of the Plan will start July 10, 2012, at 10:30 a.m. prevailing Central Time. The hearing may be continued from time to time by the Court or the Plan Proponents without further notice other than adjournments announced in open court. The Plan contemplates the reorganization of the Debtor as a going concern, the payment in full of several Classes of creditors on or shortly after the Effective Date, and the partial payment of allowed Claims in three Classes -- the Cardinal Health Secured Claim, the Contingent PNC Rejection Claims, and Allowed General Unsecured Claims -- over time from operations of Reorganized Debtor. Distributions to Contingent PNC Rejection Claims and Allowed General Unsecured Claims will be made from a creditors' trust. This is accomplished, in significant part, as: 1. Existing ownership interests in the Debtor will be canceled on the Effective Date and New Equity in the Reorganized Debtor will be issued to either: (i) Sam and Anand Kancherlapalli or (ii) if a Qualified Bid is received prior to the Qualified Bid Deadline, either (a) the person or entity submitting such Qualified Bid or (b) the high bidder at an Auction to be held for the New Equity. The minimum value of any Qualified Bid will be $300,000. If a Qualified Bid is received, any cash sale proceeds will be used to pay down the Cardinal Health Note. 2. In either scenario, the person or entity who ends up becoming the Holder of the New Equity is required to pledge the New Equity to the ADM Creditor Trust as additional security for the Reorganized Debtors' obligations under the Unsecured Creditor Notes. The New Equity Holder cannot exercise voting rights associated with the New Equity, but subject to the terms of the Plan, generally receives the right to manage the Reorganized Debtor, receive certain payments for doing so, and to own the New Equity free of the pledge once the Unsecured Creditor Notes are paid in full. 3. The Creditor Trust will be formed pursuant to the Creditor Trust Agreement and Plan to accept the Unsecured Creditor Notes and certain other assets. 4. The Reorganized Debtor will issue three notes, one to Cardinal Health (for $3,000,000) and two to the ADM Creditor Trust for the benefit of Contingent PNC Rejection Claims and General Unsecured Claims (for $650,000 and $1,250,000, respectively). The Cardinal Health Note will be secured by a first-priority security interest in and lien on the Reorganized Debtors assets and the Unsecured Creditor Notes will be secured by a second-priority security interest in and lien on the same assets. An Intercreditor Agreement will govern certain of the rights of Cardinal Health and the ADM Creditor Trust under the Notes. 5. The Reorganized Debtor will pay off the Notes over not more than a five-year period. Once the Unsecured Creditor Notes have been fully and finally paid off, the New Equity Holder's pledge of the New Equity to the ADM Creditor Trust will be of no further force and effect. 6. The ADM Creditor Trust will receive payments on the Unsecured Creditor Notes also has the right to, among other things, pursue Avoidance Actions and, if applicable, Insider Causes of Action. The ADM Creditor Trust will also be involved in objecting to Contingent PNC Rejection Claims and General Unsecured Claims. Assuming sufficient proceeds are received, the ADM Creditor Trustee will from time to time make distributions to Allowed Contingent PNC Rejection Claims and General Unsecured Claims. The costs of administration of the ADM Creditor Trust will be paid from certain annual ADM Creditor Trust Payments or, if these are insufficient, other assets of the ADM Creditor Trust. 7. Administrative Claims, Priority Tax Claims, Other Secured Claims, and Non-Tax Priority Claims are unimpaired and will be paid in full on or as soon as reasonably practical after the Effective Date or receive such other treatment as set forth in the Plan. The ADM Creditor Trust will be administered by the ADM Creditor Trustee. The ADM Creditor Trustee will, among other things, oversee the operations of the Reorganized Debtor, pursue Avoidance Actions, receive payments due to the ADM Creditor Trust, and make distributions to Holders of Allowed Class 4 Contingent PNC Rejection Claims and Class 5 General Unsecured Claims, in accordance with the Plan and ADM Creditor Trust Agreement. The Plan will be financed through a combination of Available Cash, Operating Revenues and/or Operating Profits from the Reorganized Debtor's future business operations, and recoveries from Avoidance Actions and Causes of Action. A copy of the disclosure statement is available for free at: http://bankrupt.com/misc/AMERICAN_DIAGNOSTIC_ds.pdf About American Diagnostic Batavia, Illinois-based American Diagnostic Medicine Inc. provides imaging technologies to hospitals, clinics, cardiologists, internal medicine groups and other health care providers throughout the United States. It filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-03368) on Jan. 28, 2011. Joshua D. Greene, Esq., and Michael J. Davis, Esq., at Springer, Brown, Covey, Gaetner & Davis, serve as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $11.3 million in total assets and $11.1 million in total debts. The Official Committee of Unsecured Creditors hired K&L Gates LLP as its counsel. AMERICAN ENERGY: Swings to Profit in March 31 Quarter ----------------------------------------------------- The American Energy Group, Ltd., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $2,991 on $242,028 of revenue for the three months ended March 31, 2012, compared with a net loss of $243,153 on $0 of revenue for the same period during the prior year. The Company reported a net loss of $111,807 on $545,230 of revenue for the nine months ended March 31, 2012, compared with a net loss of $667,419 on $0 of revenue for the same period a year ago. The Company's balance sheet at March 31, 2012, showed $2.17 million in total assets, $205,097 in total liabilities and $1.96 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/IMkkMe About American Energy AEG has been in the red for the past five years: It reported a net loss of $991,784 for the year ended June 30, 2011; $942,792 in 2010; $893,196 in 2009; $932,853 in 2008; and $1,428,916 in 2007. The Company restated its 2010 financial reports after management discovered errors resulting in the understatement of previously reported accrued expenses as of June 30, 2010. Until its 2002 bankruptcy filing, AEG was an independent oil and natural gas company engaged in the exploration, development, acquisition and production of crude oil and natural gas properties in the Texas gulf coast region of the United States and in the Jacobabad area of the Republic of Pakistan. AEG emerged from bankruptcy in January 2004 with two assets, a non-producing 18% gross production royalty in the Yasin 2768-7 Block in Pakistan, and a non-producing working interest in an oil and gas lease in Galveston County, Texas. While the bankruptcy proceedings were pending, AEG's producing oil and gas leases in Fort Bend County, Texas were foreclosed by a secured lender. Its non-producing Galveston County, Texas oil and gas lease rights were not affected by the foreclosure. In November 2003, AEG sold the capital stock of its then existing subsidiary, Hycarbex-American Energy, Inc., which held the exploration license in Pakistan, to Hydro Tur (Energy) Ltd., a company organized under the laws of the Republic of Turkey. The Company sold Hycarbex, which was the owner and operator of the Yasin 2768-7 Petroleum Concession Block in the Republic of Pakistan, to a foreign corporation, but retained an 18% overriding royalty interest in future production. Involuntary Chapter 7 bankruptcy proceedings (Bankr. S.D. Tex. 02-37125) were initiated against AEG on June 28, 2002, before Judge Manuel D. Leal. Leonard H. Simon, Esq., at Hughes Watters & Askanase LLP, represented the petitioning creditors, who alleged $49,981 in claims. The case was converted to Chapter 11 proceedings in December 2002. Pursuant to the Company's Second Amended Plan of Reorganization which was approved by the Bankruptcy Court on Sept. 3, 2003, all outstanding shares of common and preferred stock were cancelled and the issuance of new shares of common stock to the bankruptcy creditors was authorized by the Court. AEG emerged from bankruptcy in January 2004 with its two assets intact and with its sole business being the maintenance and management of these assets. AEG had total assets of $1,927,318 and total liabilities of $987,187 as of June 30, 2010. AMESTEIN FRISCO: Case Summary & 10 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Amestein Frisco, LP 4554 Harry's Lane Dallas, TX 75229 Bankruptcy Case No.: 12-34263 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Harlin DeWayne Hale Debtor's Counsel: Areya Holder, Esq. LAW OFFICE OF AREYA HOLDER, P.C. 800 W. Airport Freeway, Suite 414 Irving, TX 75062 Tel: (972) 438-8800 Fax: (972) 438-8825 E-mail: areya@holderlawpc.com Scheduled Assets: $1,968,235 Scheduled Liabilities: $3,123,338 A copy of the Company's list of its 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb12-34263.pdf The petition was signed by Andr� van't Westeinde, owner. AMKOR TEC: Upsized Bank Facilities No Impact on Moody's 'Ba3' CFR ----------------------------------------------------------------- Moody's Investors Service said Amkor Technology, Inc.'s Ba3 Corporate Family Rating (CFR) and stable outlook are not impacted by the announcement of amendments to its senior secured revolving credit and closing of a new Korean credit facility, though the revised facilities are a credit positive development. Amkor, based in Chandler, Arizona, is one of the largest providers of outsourced semiconductor assembly and test (OSAT) services for integrated semiconductor device manufacturers (IDM) as well as fabless semiconductor companies. AMWEST IMAGING: Peter Messineo Raises Going Concern Doubt --------------------------------------------------------- Amwest Imaging Incorporated filed on June 28, 2012, its annual report on Form 10-K for the fiscal year ended Feb. 29, 2012. Peter Messineo, CPA, in Palm Harbor, Florida, expressed substantial doubt about Amwest Imaging's ability to continue as a going concern. Mr. Messineo noted that the Company has not generated significant revenues from operations and is requiring traditional financing or equity funding to commence its operating plan. The Company reported a net loss of $306,047 on $970 of sales for the fiscal year ended Feb. 29, 2012, compared with a net loss of $29,230 on $0 sales for the fiscal year ended Feb. 28, 2011. The Company's balance sheet at Feb. 29, 2012, showed $1,249,562 in total assets, $247,818 in total current liabilities, and stockholders' equity of $1,001,744. A copy of the Form 10-K is available for free at: http://is.gd/UUBofa Evansville, Indiana-based Amwest Imaging Incorporated is a technology company whose primary business is providing relationship-building tools and processes that help any business cultivate profitable relationships with customers, all through web based solutions. The Company's current portfolio consists of My Restaurant Web,(www.myrestaurantweb.com), Lok Drop (www.LokDrop.com), Zip Clik (www.ZipClik.com). APPLETON PAPERS: S-4 Registration Statement Declared Effective -------------------------------------------------------------- Hicks Acquisition Company II, Inc., a special purpose acquisition company sponsored and headed by Thomas O. Hicks, announced that the Registration Statement on Form S-4 filed by HACII in connection with its proposed business combination with Appleton Papers Inc. (which will begin doing business as "Appvion" at closing) was declared effective by the Securities and Exchange Commission on June 29, 2012. HACII's proxy statement, included as part of the registration statement, is in the process of being mailed to HACII's security holders as of the applicable record dates. HACII also announced a revised proposal to amend the terms of its outstanding warrants in connection with the proposed business combination with Appleton. Under the revised warrant amendment proposal, the number of shares of common stock of HACII issuable upon exercise of HACII's outstanding warrants will be reduced by half and, in addition, the holders of HACII's outstanding public warrants will receive $0.625 per warrant at closing. The terms of the warrants will only be amended with the approval of warrantholders who own at least 65 percent of the outstanding public warrants. HACII previously announced that a special meeting of its stockholders to consider and vote on the proposed business combination with Appleton and other related matters would be held on July 11, 2012, at 10:00 a.m. Central Daylight Time. HACII has changed the date of this special meeting to July 12, 2012, at 10:00 a.m. Central Daylight Time. HACII will also hold a special meeting of its public warrantholders on July 12, 2012, at 9:00 a.m. Central Daylight Time to vote on the proposal to amend the terms of HACII's outstanding warrants. Each of these meetings will be held at the offices of Akin Gump Strauss Hauer & Feld LLP, 1700 Pacific Avenue, 39th Floor, Dallas, Texas 75201. In addition to the approval of HACII's stockholders, completion of the business combination between HACII and Appleton is subject to the expiration or early termination of any applicable Hart-Scott- Rodino waiting period, approval by State Street Bank and Trust Company, approval by the trustee representing participants in the Appleton ESOP and certain other closing conditions. About Appleton Papers Appleton, Wisconsin-based Appleton Papers Inc. -- http://www.appletonideas.com/-- produces carbonless, thermal, security and performance packaging products. Appleton has manufacturing operations in Wisconsin, Ohio, Pennsylvania, and Massachusetts, employs approximately 2,200 people and is 100% employee-owned. Appleton Papers is a 100%-owned subsidiary of Paperweight Development Corp. The Company reported a net loss of $2.11 million for the year ended Dec. 31, 2011, compared with a net loss of $31.66 million for the year ended Jan. 1, 2011. Appleton's balance sheet at April 1, 2012, showed $609.83 million in total assts, $864.04 million in total liabilities, and a $254.21 million deficit. * * * Appleton Papers carries a 'B' corporate credit rating, with stable outlook, from Standard & Poor's. IT has a 'B2/LD' probability of default rating from Moody's. AVISTAR COMMUNICATIONS: Amends Note Agreement with JP Morgan ------------------------------------------------------------ Avistar Communications Corporation, as borrower, entered into an amendment to the third amended and restated revolving credit promissory note agreement with JP Morgan Chase Bank, N.A., as lender. The third amended and restated revolving credit promissory note agreement provided a maximum line of credit facility amount of $8.0 million from Dec. 22, 2011, through and including March 13, 2012, and then a reduced maximum line of credit facility of $6.0 million from and after March 14, 2012, through the maturity date on Dec. 22, 2012. The primary purpose of the Amendment was to modify the maximum line of credit facility amount for the entire period from May 21, 2012, through the maturity date to $7.0 million. As of May 21, 2012, the total principal amount borrowed by Avistar under the credit facility was $6.0 million. About Avistar Communications Headquartered in San Mateo, California, Avistar Communications Corporation (Nasdaq: AVSR) -- http://www.avistar.com/-- holds a portfolio of 80 patents for inventions in video and network technology and licenses IP to videoconferencing, rich-media services, public networking and related industries. Current licensees include Sony Corporation, Sony Computer Entertainment Inc. (SCEI), Polycom Inc., Tandberg ASA, Radvision Ltd. and Emblaze-VCON. The Company reported a net loss of $6.43 million in 2011, compared with net income of $4.45 million during the prior year. The Company's balance sheet at March 31, 2012, showed $3.25 million in total assets, $17.31 million in total liabilities and a $14.05 million total stockholders' deficit. AZTLAN COLD: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Aztlan Cold Storage, Inc. 3185 E Washington Los Angeles, CA 90023 Bankruptcy Case No.: 12-32932 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Barry Russell Debtor's Counsel: David Yardley, Esq. LAW OFFICE OF DAVID R YARDLEY P.O. Box 66157 Los Angeles, CA 90066 Tel: (310) 924-5397 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $100,001 to $500,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Oscar J. Ramirez, president. BASIC ENERGY: S&P Raises Senior Unsecured Notes Rating to 'B+' -------------------------------------------------------------- Standard & Poor's Ratings Services raised its senior unsecured debt ratings on Midland, Texas-based oil fields services company Basic Energy Services' senior unsecured notes to 'B+' from 'B'. "We simultaneously revised the recovery rating on these issues to '4', indicating our expectation of average recovery in the event of a payment default, from '5'. The improved recovery expectation reflects an updated higher valuation for the company in a default scenario. In view of the company's strong operating performance in 2010 and 2011, we have increased our run-rate EBITDA estimate post default to $100 million, which is approximately half of the average EBITDA over the last four years," S&P said. This results in a gross enterprise value of $600 million. Despite an increase in the company's borrowing base last year, this would leave approximately $310 million in value available to the $726 million in claims relating to the unsecured notes. This results in our expectation of average (30% to 50%) recovery in the event of a payment default, consistent with a recovery rating of '4'. The ratings on Basic Energy Services Inc. continue to reflect its participation in the highly cyclical and competitive U.S. oilfield services market and indirect exposure to volatile hydrocarbon prices. The ratings also incorporate Basic's strong position in the workover rig segment, solid-positioning in oil-prone basins, and its capital spending flexibility during industry downturns. Ratings List Basic Energy Services Inc. Corporate credit rating B+/Stable/-- Upgraded; Revised Recovery Rating To From Senior unsecured notes B+ B Recovery rating 4 5 BECHARA HONEIN: 9th Cir. BAP Affirms Ruling in Partnership Dispute ------------------------------------------------------------------ The U.S. Bankruptcy Appellate Panel for the Ninth Circuit affirmed a bankruptcy court's judgment denying Michael Harris' motion for a partnership accounting and settling title to certain real property in his adversary proceeding against chapter 11 debtor Bechara Victor Honein. The appellate case is, MICHAEL HARRIS, Appellant, v. BECHARA VICTOR HONEIN, Appellee, BAP No. NV-10-1494 (9th Cir. BAP). A copy of the Ninth Circuit BAP's June 27, 2012 Memorandum is available at http://is.gd/vn1xR4from Leagle.com. Honein and Harris entered into an oral partnership agreement in 2002 to purchase real property on which a gas station would be operated. The parties never prepared a written partnership agreement. The partnership was to be equally owned by Honein and Harris, with each partner to have an equal responsibility to contribute the sums necessary to fund the partnership. While it was intended that the partnership acquire and own the real property, it would not own or operate the gas station business. The parties agreed that, when acquired, title to the real property would be placed in Honein's name, because Harris had outstanding money judgments against him and was experiencing other problems with his creditors. From 2002 to 2003, Honein and Harris inspected various properties and made offers to acquire them. Ultimately, one offer proposed by Honein was accepted for a property in Carson City, Nevada, owned by BP West Coast Products LLC. Honein and BP/ARCO executed a sale contract for $550,000. Harris arranged for a short-term loan from his brother, Lee Harris, in the amount of $450,000 to close the sale. Honein alone signed a promissory note in favor of Lee Harris, with no reference to any partnership with Harris. Although the parties do not dispute that the amount owed on this promissory note was $450,000, the note executed by Honein was for $850,000. The bankruptcy court later found that both Honein and Harris intended that this false document would be used to inflate the value of the Property to induce banks to provide a much higher commercial loan. Then, through this scheme, after paying off the $450,000 to Lee Harris, the parties could pocket the fraudulently obtained surplus in loan proceeds. The sale of the Property closed on May 23, 2003; all documents were signed by Honein with no reference to a partnership with Harris; title vested in Honein. At some point not clear in the record, Honein gave a grant deed to Lee Harris for a 50% interest in the Property, which deed was never recorded. Lee Harris, in turn, provided a quitclaim deed to Harris, again at a time not clear in the record, which was also not recorded. A condition on title to the Property was that it be used to operate a BP/ARCO service station. At closing of the sale, Honein applied for a BP/ARCO franchise to operate a service station and convenience store on the Property. Honein then attended and successfully completed the mandatory franchise holder "training school," paying the $15,000 tuition, and was awarded the franchise in his own name. Harris never attended the training school or attempted to obtain the status of a franchise holder. Indeed, because Harris never qualified as a BP/ARCO franchise holder, the terms of the deed to the Property prevented him from ever owning it. Honein has owned and operated the service station and convenience store since 2003. Harris was employed there at times, receiving total wages of $38,400. In response to a continuing dispute with Lee Harris over repayment of the $450,000 loan, Honein filed a chapter 11 petition on April 15, 2005 (Bankr. D. Nev. Case No. 05-51094). Honein's Schedule D lists a disputed secured claim of $450,000 in favor of Lee Harris. Neither Honein's schedules nor statement of financial affairs makes any reference to any partnership with Harris, or in any way lists Harris as a creditor. Harris sued Honein on Dec. 6, 2005. The complaint, as amended on June 19, 2006, sought an order from the bankruptcy court declaring that the Property was held in trust by Honein for the benefit of Harris; adjudging Harris to have an equitable lien for the value of 50% of the Property; quieting title to, and determining that Harris is the beneficial and legal owner of, 50% of the Property; and monetary damages. Harris alleges that Honein punched him; Honein alleges that Harris threatened his children. Honein obtained a restraining order against Harris. Honein filed an Answer and Counterclaim on Sept. 15, 2006, seeking an award of money damages from Harris for his alleged fraud, and a declaratory judgment that Honein was the sole owner of the Property. The bankruptcy court conducted a trial in the adversary proceeding on April 26 and 27, 2007. Honein, Harris and Lee Harris testified. At the end of trial, the bankruptcy court orally ruled on the record that both parties were in pari delicto, because they had established and pursued the partnership business for an illegal purpose and, therefore, the bankruptcy judge stated, "I am finding against both parties and all their claims for relief." The bankruptcy court entered Findings of Fact and Conclusions of Law on January 6, 2009. Regarding the counterclaim, the Court ruled that Honein was prevented from recovery under the doctrine of in pari delicto. As to Harris' claims, the court determined: -- Harris had breached the partnership agreement by failing to contribute his 50% of the funds needed by the partnership, and in fact "contributed nothing towards the purchase of the Property, or its improvement and maintenance through June 2004." -- The grant deed from Honein to Lee Harris was intended for security purposes only, and did not transfer any ownership interest in the Property to him. As a result, the quitclaim deed from Lee Harris to Harris also did not create an ownership interest in the Property. -- Harris was not entitled to recover damages. -- The partnership was dissolved and neither the partnership, Harris nor Lee Harris had any claim or ownership interest in the Property. The bankruptcy court made the following ruling at the end of its conclusions: "However, both Harris and Honein are entitled to an accounting or a valuation of their Partnership interests in this adversary proceeding pursuant to the applicable provisions of the Nevada Revised Statutes." In April 2010, Harris filed a Motion for an Accounting and Valuation of Partnership Interests. Honein opposed, arguing that Harris was entitled to no relief under the Court's finding that he was in pari delicto, would not be entitled to any recovery from an accounting, and that an extensive accounting had already been provided to the Court. In November 2010, the Court ruled that since the parties were in pari delicto, neither of them were entitled to an accounting. The Court also held that the the Partnership had been dissolved as of June 2004, and that the Property" shall remain the sole and separate property of Bechara Victor Honein." Harris appealed. BEHRINGER HARVARD: Transfers Condominium Unit to Credit Union ------------------------------------------------------------- Behringer Harvard Mountain Village, LLC, a wholly-owned subsidiary of Behringer Harvard Short-Term Opportunity Fund I LP, entered into a Deed in Lieu of Foreclosure Agreement with Credit Union Liquidity Services, LLC, effective May 8, 2012, whereby the Borrower transferred ownership, of the 23-unit condominium property in Telluride, Colorado to the Lender, and subject to certain contingencies, resulted in full settlement of the outstanding debt to the Lender. On Sept. 29, 2006, Behringer Harvard entered into a loan agreement with the Lender to borrow a total principal amount of up to $27.7 million to construct Cassidy Ridge. The outstanding principal balance, together with all accrued but unpaid interest, was due and payable on the maturity date of Oct. 1, 2011. The loan, which was recourse to Behringer, had an outstanding principal balance of approximately $27.7 million at May 17, 2012. About Behringer Harvard Addison, Tex.-based Behringer Harvard is a limited partnership formed in Texas on July 30, 2002. The Company's general partners are Behringer Harvard Advisors II LP and Robert M. Behringer. As of Sept. 30, 2011, seven of the twelve properties the Company acquired remain in the Company's portfolio. The Company's Agreement of Limited Partnership, as amended, provides that the Company will continue in existence until the earlier of Dec. 31, 2017, or termination of the Partnership pursuant to the dissolution and termination provisions of the Partnership Agreement. For the year ended Dec. 31 2011, Deloitte & Touche LLP, in Dallas, Texas, noted that the uncertainty surrounding the ultimate outcome of settling unpaid debt and its effect on the Partnership, as well as the Partnership's operating losses at its subsidiaries, raise substantial doubt about its ability to continue as a going concern. The Partnership is facing a significant amount of debt maturities in the near future and debt which has matured but remains unpaid, which is recourse to the Partnership. Behringer reported a net loss of $50.15 million in 2011, a net loss of $18.71 million in 2010, and a net loss of $15.47 million in 2009. The Company's balance sheet at March 31, 2012, showed $112.45 million in total assets, $135.77 million in total liabilities and a $23.32 million total deficit. Bankruptcy Warning Of Behringer's $122.8 million in notes payable at March 31, 2012, $51.3 million has matured and is subsequently in default and an additional $50.8 million is scheduled to mature in the next twelve months. As of March 31, 2012, of the Company's $122.8 million in notes payable, $110.4 million was secured by properties and $99.9 million was recourse to the Company. The Company continues to have negotiations and discussions with lenders to modify or restructure loans, outcomes of which may include a sale to a third party or returning the property to the lender. The Company may also consider putting certain of its subsidiaries into bankruptcy in order to protect the Company's interest in the property. BETSEY JOHNSON: Settles Debt With Creditor Steve Madden ------------------------------------------------------- Jamie Santo at Bankruptcy Law360 reports that Betsey Johnson LLC on Monday asked a New York judge to approve a settlement with creditor Steve Madden Ltd. that would divvy up the proceeds from the fashion house's ongoing asset sale and open the possibility of a return for unsecured creditors. According to Bankruptcy Law360, the agreement resolves a number of disputes between the companies and sees Madden exchange a secured claim for a majority share of the sale proceeds and a $1 million unsecured claim. About Betsey Johnson New York-based women's fashion retailer Betsey Johnson LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 12-11732) on April 26, 2012, to effectuate a sale of its assets. Formed as B.J. Vines by its namesake, iconic fashion designer Betsey Johnson in 1978, the Debtor sells clothing, footwear, handbags and a signature fragrance through 63 Betsey Johnson retail stores and outlets in the U.S. The Company, which has 400 employees, also sells its products in department and specialty stores worldwide, including Macy's and Lord & Taylor, and online at http://www.betseyjohnson.com/ Non-debtor subsidiaries operate five stores in Canada and one store in England. In 2010, Steven Madden Ltd. a footwear designer and marketer, swapped US$27.4 million of secured debt for ownership of Betsey Johnson's trademarks and intellectual property. The deal satisfied all outstanding debt under a US$50 million term loan used to finance the business' acquisition by Castanea Partners. At the same time, Castanea, the company's majority owner, made a new capital investment of US$3 million as part of the deal with Madden. Betsey Johnson estimated assets and debts of US$10 million to US$50 million as of the Chapter 11 filing. Judge James Peck oversees the case. The Debtor has tapped the law firm of Goulston & Storrs, as counsel; Togut, Segal & Segal, LLP, as co-counsel; and Donlin Recano & Company as claims and notice agent. The petition was signed by Jonathan Friedman, chief financial officer. Hilco Merchant Resources, LLC, is represented by Chris L. Dickerson, Esq., at DLA Piper LLP (US). Counsel for Steven Madden, Ltd., is Neil Herman, Esq., at Morgan, Lewis & Bockius LLP. Counsel for First Niagara Commercial Finance, Inc., the DIP Lender, is James C. Fox, Esq., at Ruberto, Israel & Weiner. Hahn & Hessen LLP serves as the Official Committee of Unsecured Creditors' counsel. BIOPACK ENVIRONMENTAL: Has Exclusive License to Beaute de Maman --------------------------------------------------------------- Biopack Environmental Solutions, Inc., on June 25, 2012, entered into a License and Asset Purchase Option Agreement with NorthStar Consumer Products, LLC, under which TriStar Consumer Products, Inc., Biopack's wholly-owned subsidiary, acquired the exclusive license to develop, market and sell, NCP's Beaute de Maman product line, which is a line of skincare and other products specifically targeted for pregnant women. In addition, the Company acquired the exclusive license rights to develop, market and sell NCP's formula being developed for itch suppression, which would be sold as an over-the-counter product, if successful. These licenses are for a period of up to one year, subject to earlier termination upon specified events. During the term of the license, the assets and business being licensed will be run by management of NCP pursuant to a consulting agreement. As a result of these license rights the Company is now responsible for developing, marketing and selling the "Beaute de Maman" products, as well as NCP's anti-itch formula, including all expenses, contractual arrangements, etc., related to product development, manufacturing, marketing, selling, bottling and packaging, and shipping. The Company will also receive all revenue derived from sales of the products, other than the amounts owed to Dr. Michelle Brown, from whom NCP purchased the "Beaute de Maman" business and assets. Under the arrangement with Dr. Brown she is entitled to approximately 7% of net revenue for all products sold under the Beaute de Maman brand name and derived from formulas transferred under the agreement with NCP for a 20 year period ending Dec. 31, 2031. In exchange for these license rights the Company agreed to issue NCP 225,000 shares of the Company's Series D Convertible Preferred Stock. This transaction closed on June 26, 2012. The Company, through its wholly-owned subsidiary, has the option to purchase all the assets related to the "Beaute de Maman" products, as well as NCP's anti-itch formula. In connection with the Company's license rights and to ensure the Company can fulfill any immediate orders timely, the Company purchased all existing finished product of the Beaute de Maman product line currently owned by NCP. In exchange for the inventory the Company agreed to issue NCP 25,000 shares of its Series D Convertible Preferred Stock. On June 29, 2012, the Company entered into a Stock Purchase Agreement with Rockland Group, LLC, an entity owned and controlled by Harry Pond, one of the Company's officers and directors. Under the Stock Purchase Agreement, Rockland Group agreed to purchase 1,540,000 shares of the Company's Series D Convertible Preferred Stock in exchange for $308,000. To date, Rockland Group has paid $141,000 of this amount and plans to pay the remaining balance on or before July 20, 2012. A copy of the Form 8-K is available for free at: http://is.gd/N1vlTT About Biopack Environmental Kowloon, Hong Kong-based Biopack Environmental Solutions Inc. develops, manufactures, distributes and markets bio-degradable food containers and disposable industrial packaging for consumer products. The Company supplies its biodegradable food containers and industrial packaging products to multinational corporations, supermarket chains and restaurants located across North America, Europe and Asia. The Company has a factory in Jiangmen City in the People's Republic of China. The Company reported a net loss $472,596 on $3,594 of revenue for the three months ended March 31, 2011, compared with net profit of $28,966 on $68,639 of revenue for the same period during the prior year. The Company's balance sheet at March 31, 2011, showed $959,834 in total assets, $3.45 million in total liabilities and a $2.49 million total stockholders' deficit. Going Concern As reported by the TCR on April 26, 2011, Wong Lam Leung & Kwok C.P.A. Limited, in Hong Kong, expressed substantial doubt about Biopack Environmental's ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss of $2.4 million for the year ended Dec. 31, 2010, and had an accumulated deficit of $7.3 million and a working capital deficit of $2.2 million as of Dec. 31, 2010. The Company said that its future is dependent upon its attaining profitable operations and raising the capital it will require in order to achieve profitable operations through the issuance of equity securities, borrowings or a combination thereof. The Company has not filed any financial report after the March 31, 2011, Form 10-Q. BIOZONE PHARMACEUTICALS: Amends 8.3MM Shares Resale Prospectus -------------------------------------------------------------- Biozone Pharmaceuticals, Inc., filed with the U.S. Securities and Exchange Commission amendment no. 2 to the Form S-1 relating to the sale by Aero Liquidating Trust of up to 8,345,310 shares of the Company's common stock. The prices at which the selling stockholder may sell shares will be determined by the prevailing market price for the shares or in negotiated transactions. The Company will not receive any proceeds from the sale of these shares by the selling stockholder. The Company will bear all costs relating to the registration of these shares of the Company's common stock, other than any selling stockholder's legal or accounting costs or commissions. The Company's common stock is quoted on the Over-the-Counter Bulletin Board under the symbol "BZNE.OB". The last reported sale price of the Company's common stock as reported by the OTC Bulletin Board on June 27, 2012, was $4.00 per share. A copy of the amended prospectus is available for free at: http://is.gd/HJvp54 About Biozone Pharmaceuticals Biozone Pharmaceuticals, Inc., formerly, International Surf Resorts, Inc., was incorporated under the laws of the State of Nevada on Dec. 4, 2006, to operate as an internet-based provider of international surf resorts, camps and guided surf tours. The Company proposed to engage in the business of vacation real estate and rentals related to its surf business and it owns the website isurfresorts.com. During late February 2011, the Company began to explore alternatives to its original business plan. On Feb. 22, 2011, the prior officers and directors resigned from their positions and the Company appointed a new President, Director, principal accounting officer and treasurer and began to pursue opportunities in medical and pharmaceutical technologies and products. On March 1, 2011, the Company changed its name to Biozone Pharmaceuticals, Inc. Since March 2011, the Company has been engaged primarily in seeking opportunities related to its intention to engage in medical and pharmaceutical businesses. On May 16, 2011, the Company acquired substantially all of the assets and assumed all of the liabilities of Aero Pharmaceuticals, Inc., pursuant to an Asset Purchase Agreement dated as of that date. Aero manufactures markets and distributes a line of dermatological products under the trade name of Baker Cummins Dermatologicals. On June 30, 2011, the Company acquired the Biozone Labs Group which operates as a developer, manufacturer, and marketer of over- the-counter drugs and preparations, cosmetics, and nutritional supplements on behalf of health care product marketing companies and national retailers. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, Paritz and Company. P.A., in Hackensack, N.J., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company does not have sufficient cash balances to meet working capital and capital expenditure needs for the next twelve months. In addition, as of Dec. 31, 2011, the Company has a shareholder deficiency and negative working capital of $4.37 million. The continuation of the Company as a going concern is dependent on, among other things, the Company's ability to obtain necessary financing to repay debt that is in default and to meet future operating and capital requirements. Biozone reported a net loss of $5.45 million in 2011, compared with a net loss of $319,813 in 2010. The Company's balance sheet at March 31, 2012, showed $8 million in total assets, $13.76 million in total liabilities and a $5.76 million total shareholders' deficiency. BURCAM CAPITAL: Files for Bankruptcy to Renegotiate Loan Terms -------------------------------------------------------------- Burcam Capital II LLC filed for Chapter 11 protection (Bankr. E.D.N.C. Case No. 12-04729) on June 28, 2012. Judge J. Rich Leonard presides over the Company's case. David Bracken at newsobserver.com reports that Burcam Capital II, owned by Raleigh, N.C. developer Neal Coker, sought Chapter 11 bankruptcy after being unable to renegotiate the terms of its loan. According to the report, Burcam Capital II listed both assets and liabilities of between $10 million and $50 million in its filing. The largest listed creditor is LaSalle Bank, which is owed $782,245. LaSalle is the trustee for the bond holders who own the debt on the property. The report says Burcam Capital II took out a $13 million loan in 2003 that is scheduled to come due in September of next year. That loan was bundled with other commercial real estate loans and sold to Wall Street investors as a commercial mortgage-backed security. These loans, because of their structure, can be among the most difficult loans to get modified. The report relates the bond holders began foreclosure proceedings last year, and Mr. Coker said his group made several proposals to restructure the mortgage and extend its due date. "Obviously, having to resort to a bankruptcy filing is a culmination of a series of attempts to negotiate," the report quotes Mr. Coker as saying. The report says Mr. Coker's group sold all 36 of the building's residential condos in the top three floors before it took out the 2003 loan. Burcam Capital II retains ownership of the building's roughly 50,000 square feet of office and four ground floor retail spaces. Nearly all of the office and retail space is now leased except for a 7,000-square-foot space that was once home to Cantina South. The building's retail tenants include the restaurants Draft, Krave and Oryx. CDM JOINT VENTURES: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: CDM Joint Ventures, LLC 2410 DeKalb Medical Parkway Lithonia, GA 30058 Bankruptcy Case No.: 12-66520 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Judge: Mary Grace Diehl Debtor's Counsel: John C. Pennington, Esq. JOHN C. PENNINGTON, P.C. P.O. Box 275 Helen, GA 30545 Tel: (706) 878-0033 Fax: (706) 878-9916 E-mail: jcppc@windstream.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Manbir Singh, manager. CHINA NETWORKS: UHY Vocation Raises Going Concern Doubt ------------------------------------------------------- China Networks International Holdings, Ltd., filed its annual report on Form 20-F for the fiscal year ended Dec. 31, 2011. UHY Vocation HK CPA Limited, in Hong Kong, expressed substantial doubt about China Networks' ability to continue as a going concern. The independent auditors noted that the Company has limited operations and did not generate any revenue for the year 2011. The Company reported a net loss of $11.90 million on $0 revenue in 2011, compared with a net loss of $1.24 million on $3.75 million of revenue in 2010. Due to the Company's strategic plan on the restructuring and integration of Kunming assets, on Sept. 1, 2010, CNIH entered into two agreements with its joint venture partner, Kunming TV Station, on the sale of the Company's assets in Kunming JV and Kunming Ad Co., which are located in Yunnan Province in the PRC, with a total consideration of $22.6 million (RMB150 million) and $0.1 million (RMB 0.7 million), respectively. On Dec. 14, 2010, Kunming JV and Kunming Ad Co. were sold back to the Kunming TV Station. The disposition was completed on Dec. 15, 2010. Subsequent to the disposal of Kunming entities and termination of contracts with YR TV Station, the Company did not generate any revenue during the year 2011 and had net cash used in operating activities. The Company's balance sheet at Dec. 31, 2011, showed $8.18 million in total assets, $2.06 million in total liabilities, and stockholders' equity of $6.12 million. A copy of the Form 20-F/A is available for free at: http://is.gd/VkgiR3 China Networks International Holdings, Ltd., headquartered in Beijing, PRC, was incorporated in Delaware on Aug. 16, 2006, as Alyst Acquisition Corp. ("Alyst") in order to serve as a vehicle for the acquisition of an operating business in any industry, with a focus on the telecommunications industry, through a merger, capital stock exchange, asset acquisition or other similar business combination. The Company was formed to provide broadcast television advertising services in the PRC operating via joint venture partnerships with PRC state-owned television broadcasters (PRC TV Stations). The Company commenced operations on Oct. 1, 2008. Activity through Sept. 30, 2008, related to the Company's formation, private placement offering, establishment of joint ventures and contractual relationships in the PRC, and business combination with Alyst. CHISEN ELECTRIC: Mazars CPA Raises Going Concern Doubt ------------------------------------------------------ Chisen Electric Corporation filed on July 2, 2012, its annual report on Form 10-K for the fiscal year ended March 31, 2012. Mazars CPA Limited, in Hong Kong, expressed substantial doubt about Chisen Electric's ability to continue as a going concern. The independent auditors noted that the Company had a negative working capital as of March 31, 2012, and incurred loss for the year then ended. The Company reported a net loss of $15.79 million on $119.56 million of sales for the fiscal year ended March 31, 2012, compared with net income of $11.07 million on $243.81 million of sales for the fiscal year ended March 31, 2011. The Company's balance sheet at March 31, 2012, showed $256.84 million in total assets, $229.93 million in total liabilities, and stockholders' equity of $26.91 million. A copy of the Form 10-K is available for free at: http://is.gd/tP5GfG Headquartered in Changxing, Zhejiang Province, The People's Republic of China, Chisen Electric Corporation produces and sells sealed lead-acid motive batteries, also known as valve regulated lead-acid motive batteries (VRLA batteries) in China's personal transportation device market. The Company's motive battery products, sold under the Company's own brand name "Chisen", are predominantly used in electric bicycles and are distributed and sold in China. CHRIST HOSPITAL: Judge Approves $45.3MM Sale of Hospital -------------------------------------------------------- Martin Bricketto at Bankruptcy Law360 reports that the planned $45.3 million sale of Christ Hospital in Jersey City, N.J., to a for-profit operator of other local hospitals has cleared another key hurdle, with a state court judge on Friday giving the transaction his stamp of approval. U.S. Bankruptcy Judge Morris Stern in March approved Hudson Hospital Holdco LLC's bid for not-for-profit Christ Hospital over a competing offer, but the deal still had to undergo scrutiny from the New Jersey Department of Health and Senior Services and the state attorney general, according to Bankruptcy Law360. About Christ Hospital Christ Hospital filed for Chapter 11 bankruptcy (Bankr. D. N.J. Case No. 12-12906) on Feb. 6, 2012. Christ Hospital, founded in 1872 by an Episcopalian priest, is a 367-bed acute care hospital located in Jersey City, New Jersey at 176 Palisade Avenue, serving the community of Hudson County. The Debtor is well-known for its broad range of services from primary angioplasty for cardiac patients to intensity modulated radiation therapy for those battling cancer. Christ Hospital is the only facility in Hudson County to offer IMRT therapy, which is the most significant breakthrough in cancer treatment in recent years. Christ Hospital filed for Chapter 11 after an attempt to sell the assets fell through. Judge Morris Stern presides over the case. Lawyers at Porzio, Bromberg & Newman, P.C., serve as the Debtor's counsel. Alvarez & Marsal North America LLC serves as financial advisor. Logan & Company Inc. serves as the Debtor's claim and noticing agent. The Health Professional and Allied Employees AFT/AFI-CIO is represented in the case by Mitchell Malzberg, Esq., at Mitnick & Malzberg P.C. DIP lender HFG is represented in the Debtor's case by Benjamin Mintz, Esq., at Kaye Scholer LLP and Paul R. De Filippo, Esq., at Wollmuth Maher & Deutsch LLP. Andrew H. Sherman, Esq., at Sills, Cummis & Gross, serves as counsel to the Official Committee of Unsecured Creditors. J.H. Cohn LLP serves as financial advisor to the committee. Suzanne Koenig of SAK Management Services, LLC, has been appointed as patient care ombudsman. She is represented by Greenberg Traurig as counsel. Hudson Hospital Holdco is represented in the case by McElroy, Deutsch, Mulvaney & Carpenter, LLP. Community Healthcare Associates is represented in the case by Lowenstein Sandler PC. Liberty Healthcare System, Inc., d/b/a Jersey City Medical Center, which joined in CHA's bid, is represented by Duane Morris LLP. In April 2012, the Bankruptcy Court authorized Christ Hospital to sell its facility to Hudson Hospital Propco LLC and Hudson Hospital Holdco LLC after a bidding and auction process. In consideration of the sale, transfer, conveyance and assignment of the Assets, the Purchaser will assume liabilities; pay to Seller cash in the amount of $29,496,000; pay the amount of $3,500,000 to satisfy a portion of Seller's obligations to the PBGC; pay all Transfer Taxes due in connection with the closing of the transactions, currently estimated to be $300,000; pay the cost of all director and officer "tail" insurance coverage, in the amount currently estimated to be $150,000; and release all rights to the Good Faith Deposit and any right to repayment of the Good Faith Deposit. CIRCLE STAR: Faces Cottonwood Fraud Complaint in Oklahoma --------------------------------------------------------- Circle Star Energy Corp.'s registered agent was served with a complaint (Civil Action No. 12-CV-327-CVE-PJC) filed in the U.S. District Court for the Northern District of Oklahoma by Cottonwood Natural Resources, Ltd., on or about June 18, 2012. Cottonwood alleges breach of contract and fraud in connection with a Purchase and Sale Agreement dated April 19, 2012, between the company and Cottonwood related to the purchase of certain oil and gas interests in approximately 14,640 acres in Finney County, Kansas. Cottonwood filed the complaint after the Company terminated the Purchase Agreement after the Company determined that Cottonwood had options to title to less than 12,908.46 net acres and Cottonwood failed to disclose all material facts related to the Kansas Properties. Cottonwood is seeking damages of at least $4,324,180. The Company said the allegations by Cottonwood are without merit and the Company intends to vigorously defend against the claims. The Company is evaluating potential counterclaims against Cottonwood. About Circle Star Houston, Tex.-based Circle Star Energy Corp. owns royalty, leasehold, operating, net revenue, net profit, reversionary and other mineral rights and interests in certain oil and gas properties in Texas. The Company's properties are in Crane, Scurry, Victoria, Dimmit, Zavala, Grimes, Madison, Robertson, Fayette, and Lee Counties. The Company's balance sheet at Jan. 31, 2012, showed $3.91 million in total assets, $6.75 million in total liabilities and a $2.84 million total stockholders' deficit. The Company said in its quarterly report for the period ended Jan. 31, 2012, that there is substantial doubt about its ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon continued financial support from the Company's shareholders, the ability of the Company to obtain necessary financing to continue operations, and the attainment of profitable operations. The Company can give no assurance that future financing will be available to it on acceptable terms if at all or that it will attain profitability. These factors raise substantial doubt about the Company's ability to continue as a going concern. CLEANTECH INNOVATIONS: Posts $2.58 Million Net Loss in Q1 2012 -------------------------------------------------------------- CleanTech Innovations, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2.58 million on $585,856 of sales for the three months ended March 31, 2012, compared with net income of $498,127 on $3.93 million of sales for the same period in 2011. The Company's balance sheet at March 31, 2012, showed $46.50 million in total assets, $17.17 million in total liabilities, and stockholders' equity of $29.33 million. Goldman Kurland and Mohidin, LLP, in Encino, California, expressed substantial doubt about CleanTech's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company had a loss from operations and used $8.5 million in operating activities in 2011. "In addition it has loans of $3.4 million and promissory note of $50,000 past due. The Company also has a $10 million loan due in March 2013. The Company does not have access to the public capital market due to delisting from NASDAQ." A copy of the Form 10-Q is available for free at: http://is.gd/kSQoUe Based in Tieling, Liaoning Province, China, CleanTech Innovations, Inc., formerly known as Everton Capital Corporation, was incorporated on May 9, 2006, in the State of Nevada. Through its wholly owned operating subsidiaries in China, the Company designs, manufactures, tests and sells structural towers for on-land and off-shore wind turbines. The Company also manufactures specialty metal products that require advanced manufacturing and engineering capabilities, including bellows expansion joints and connecting bend pipes used for waste heat recycling in steel production, in ultra-high-voltage electricity transmission grids and in industrial pressure vessels. CLIFFS CLUB: Wins Permission to Start Polling Creditors on Plan --------------------------------------------------------------- Rachel Feintzeig at Dow Jones' DBR Small Cap reports that a judge cleared Cliffs Club & Hospitality Group Inc. to begin polling creditors on its Chapter 11 plan, which would hand control of the company to an investor consortium led by the Carlile Group. About Cliffs Club Units of The Cliffs Communities, led by The Cliffs Club & Hospitality Group, Inc., doing business as The Cliffs Golf & Country Club, along with 10 affiliates, sought Chapter 11 protection (Bankr. D. S.C. Lead Case No. 12-01220) on Feb. 28, 2012. The Cliffs has eight premier, private master-planned residential communities, each to have its own world-class golf course. Approximately 3,734 lots have been sold. There are currently 1,385 finished homes, with 63 under construction. The properties for sale are owned by non-debtor DevCo entities. The Feb. 28 Debtors operate the exclusive membership clubs for golf, tennis, wellness and social activities at The Cliffs' communities in North and South Carolina. The clubs have 2,280 members, and there are 766 resigned members with refundable deposits totaling $37 million. The Debtors do not own the golf courses -- they only own or lease all the "core amenities" for the operation of the golf courses. Another affiliate, Keowee Falls Investment Group, LLC, filed a Chapter 11 petition (Bankr. D. S.C. Case No. 12-01399) in Spartanburg, South Carolina, on March 2, 2012. Travelers Rest- based Keowee Falls estimated at least $100 million in assets and liabilities of up to $50 million. Judge John E. Waites presides over the Debtors' cases. Lawyers at McKenna Long & Aldridge LLP serve as the Debtors' lead counsel. Dana Elizabeth Wilkinson, Esq., serves as local counsel. Grisanti Galef & Goldress serves as restructuring advisors and Katie S. Goodman of GGG serves as CRO. BMC Group Inc. serves as the Debtors' claims and noticing agent. According to papers filed in Court, the Debtors' total assets had a $175 million book value at Dec. 31, 2011. The Debtors' total liabilities had a $333 million book value at Dec. 31, 2011. The petition was signed by Timothy P. Cherry, authorized officer. Wells Fargo, as Indenture Trustee, is represented in the case by Daniel S. Bleck, Esq., at Mintz Levin Cohn Ferris Glovsky and Popeo P.C.; and Elizabeth J. Philp, Esq., and Michael Beal, Esq., at McNair Law Firm P.A. The Official Committee of Unsecured Creditors is represented in the case by John B. Butler, III, P.A., and Jonathan B. Alter, Esq., at Bingham McCutchen LLP. COMMERCIAL MANAGEMENT: Can Access Cash Collateral Through Sept. 30 ------------------------------------------------------------------ Judge Nancy C. Dreher of the Bankruptcy Court for the District of Minnesota has authorized Commercial Management, LLC, to access the cash collateral of U.S. Bank National Association on a final basis, through Sept. 30, 2012, in accordance with a budget. U.S. Bank asserts that, as of the Petition Date, it holds a fully secured claim against the Debtor in the amount of $20,286,422.46, which Prepetition Obligations are exclusive of additional accrued interest, charges, attorneys' fees and all other applicable costs and fees. U.S. Bank also asserts that, as of the Petition Date, it holds valid and non-voidable liens and security interests in substantially all of the Debtor's real and personal property under the terms of the Loan Documents. Judge Dreher ruled the Cash Collateral may be used (a) in the ordinary course of business for general working capital and general corporate purposes and (b) for restructuring and other related expenses. As adequate protection against any diminution in value, U.S. Bank will receive, (i) $75,000 per month in payments, (ii) a valid and perfected replacement security interest in all receipts from operation arising from post-petition operations of Buena Vista Apartments and in all other property of the estate, and (iii) solely to the extent the adequate protection liens prove insufficient to protect the U.S. Bank against Diminution of Value, allowed superpriority administrative expenses claims in the Chapter 11 case in the amount of any deficiency. About Commercial Management Commercial Management, LLC, filed a bare-bones Chapter 11 petition (Bankr. D. Minn. Case No. 12-42676) in its hometown in Minneapolis on May 2, 2012. Commercial Management, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101 (51B), does business as Buena Vista Apartments, and owns the property at 6860 Shingle Creek Parkway, in Brooklyn Center, Minnesota. Related entities that have pending bankruptcy cases are Jeffrey J. Wirth (Case No. 12-42368), Palmer Lake Plaza, LLC (Case No. 12-42266), Tomah Hospitality, LLC (Case No. 12-10894), and Tomah Hotel Properties, LLC (Case No. 12-10895). Judge Nancy C. Dreher presides over the case. Commercial Management has tapped Neal L. Wolf and the law firm of Neal Wolf & Associates, LLC as bankruptcy counsel. The Debtor also hired the Law Offices of Neil P. Thompson, in Minneapolis, as local counsel. COMMERCIAL MANAGEMENT: Files Schedules of Assets and Liabilities ---------------------------------------------------------------- Commercial Management, LLC, filed with the Bankruptcy Court for the District of Minnesota its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $30,000,000 B. Personal Property $49,458 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $20,286,442 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $142,436 ----------- ------------ TOTAL $30,049,458 $20,428,878 About Commercial Management Commercial Management, LLC, filed a bare-bones Chapter 11 petition (Bankr. D. Minn. Case No. 12-42676) in its hometown in Minneapolis on May 2, 2012. Commercial Management, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101 (51B), does business as Buena Vista Apartments, and owns the property at 6860 Shingle Creek Parkway, in Brooklyn Center, Minnesota. Related entities that have pending bankruptcy cases are Jeffrey J. Wirth (Case No. 12-42368), Palmer Lake Plaza, LLC (Case No. 12-42266), Tomah Hospitality, LLC (Case No. 12-10894), and Tomah Hotel Properties, LLC (Case No. 12-10895). Judge Nancy C. Dreher presides over the case. Commercial Management has tapped Neal L. Wolf and the law firm of Neal Wolf & Associates, LLC as bankruptcy counsel. The Debtor also hired the Law Offices of Neil P. Thompson, in Minneapolis, as local counsel. COMMUNITY FINANCIAL: BKD LLP Raises Going Concern Doubt ------------------------------------------------------- Community Financial Shares, Inc., filed on June 22, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. BKD, LLP, in Indianapolis, Indiana, expressed substantial doubt about Community Financial's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and is undercapitalized. The losses reported by the Company during 2011 and 2010 were primarily due to large provisions for loan losses and the establishment of valuation allowances against the Company's deferred tax asset. Prior to sustaining these losses, the Company had a history of profitable operations. The Company's return to profitable operations is contingent in part on the economic recovery in its market area and the stability of collateral values of the real estate that secures many of its loans. In addition, the Company remains subject to the provisions of the Order and a loan agreement that it has entered into with an unaffiliated third party lender. The Order requires the Bank to achieve Tier 1 capital at least equal to 8% of total assets and total capital at least equal to 12% of risk-weighted assets. The Company's loan with the unaffiliated third party, which had a fixed rate of 6.0% and an outstanding balance of $1.3 million at Dec. 31, 2011, is secured by all of the outstanding capital stock of the Bank. As of Dec. 31, 2011, the Company has made all required interest payments on the outstanding principal amounts on a timely basis. As a condition of the Company's loan agreement, the Bank must maintain a nonperforming assets-to-tangible-capital ratio of not more than 65% measured quarterly and not incur a net loss of more than $250,000 for the calendar year ended Dec. 31, 2010. As of Dev. 31, 2011, the Company was not in compliance with the debt covenants set forth in the loan agreement. On May 3, 2012, the Company and the lender entered into a forbearance agreement pursuant to which the lender agreed to accept $900,000, plus accrued interest, attorney's fees and other costs, as full satisfaction of the indebtedness provided that such payment are made by the Company to the lender on or before July 30, 2012. In addition, upon receipt of the payment, all of the liens on and security interests in favor of the lender under the loan documents will be automatically terminated and released and all indebtedness will be deemed fully satisfied. The Company reported a net loss of $11.01 million on net interest income (before provision for loan losses) of $10.77 million in 2011, compared with a net loss of $4.57 million on net interest income (before provision for loan losses) of $10.40 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $328.99 million in total assets, $321.74 million in total liabilities, and stockholders' equity of $7.25 million. A copy of the Form 10-K is available for free at: http://is.gd/09ZKM8 Glen Ellyn, Illinois-based Community Financial Shares, Inc., is a registered bank holding company. The operations of the Company and its banking subsidiary consist primarily of those financial activities common to the commercial banking industry. All of the operating income of the Company is attributable to its wholly- owned banking subsidiary, Community Bank-Wheaton/Glen Ellyn. CROSSOVER FINANCIAL I: DeCelles Creditors Lose Case Dismissal Bid ----------------------------------------------------------------- The Bankruptcy Court denied a second attempt by the so-called DeCelles Creditors to dismiss the Chapter 11 case of Crossover Financial I, LLC. The DeCelles Creditors argue that the Debtor's bankruptcy case was filed without requisite authority. The DeCelles Creditors assert that the terms of a Security Agreement for the pledge of a pro rata share of the limited liability company membership interest as security for promissory notes issued in connection with the Debtor's Private Placement Memorandum divested control of the Debtor's management from its sole member, Mitchell B. Yellen. The DeCelles Creditors contend the security interest is self-executing. Thus, upon a default of any respective promissory note, the control of the Debtor's management from its sole member, Mr. Yellen, is divested. As asserted by counsel for the DeCelles Creditors, the default automatically vested the Debtor's voting rights in "free floating" secured creditors. The Court, however, held that Colorado law requires a secured creditor to enforce the security agreement and become admitted as a member before voting rights associated with membership interests pledged as collateral can be exercised. According to the Court, "Thus, neither the pledging of the membership rights as security nor the declaration of a breach by the secured party is sufficient to divest the pledging member of the right to vote. To hold otherwise would permit someone who is not a member or manager to control a limited liability company." Through the Private Placement Memorandum, the Debtor raised $21,542,000, and in exchange issued 108 promissory notes to parties providing the funds pursuant to the PPM. Three of those Notes were received by the DeCelles Creditors for funds loaned totaling over $2 million. The funds were to be loaned by the Debtor to a related entity, HPR LLC, for the acquisition and residential development of real property. The Notes issued by the Debtor provided either for monthly or quarterly interest payments commencing in 2006 and a balloon payment of principal and unpaid interest on Dec. 31, 2010. A copy of Bankruptcy Judge Sidney B. Brooks' July 2, 2012 Order is available at http://is.gd/GtqM3cfrom Leagle.com. About Crossover Financial I Crossover Financial I, LLC, based in Elizabeth, Colorado, was formed on Aug. 12, 2005. Mitchell B. Yellen is the manager and sole member. The Company was formed for the purpose of raising funds through a Private Placement Memorandum to be loaned to an entity known as HPR, LLC, in connection with the acquisition and development of 440 acres of real property located near Monument, Colorado. HPR consisted of three members: Colorado Commercial Builders, Inc. (37.5%); DJT, LLC (20.0%); and Yellen Family Partnership, LLLP (42.5%). Mitchell Yellen held an interest in the Yellen Family Partnership, LLLP. The project stalled primarily as a result of a collapse in the residential real estate development market in 2007 and potential developers pulled out of the project. There has been no further development activity on the Real Property since 2007. Faced with the prospect of a lengthy foreclosure proceeding, the Debtor entered into to an agreement with HPR whereby the Real Property was transferred to the Debtor by way of a deed-in-lieu of foreclosure. Upon acquiring the Real Property, the Debtor attempted to bring in additional developers to continue the project but those efforts were unsuccessful. The Company filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 11-24257) on June 15, 2011. Judge Sidney B. Brooks presides over the case. Stephen C. Nicholls, Esq., at Nicholls & Associates, P.C., in Denver, serves as bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Mitchell B. Yellen. Karen McClaflin of Home Source Realty, LLC, Colorado acts as real estate broker for the Estate. An official unsecured creditors committee has not been appointed. CYBERDEFENDER CORP: Exclusive Filing Period Extended to Sept. 20 ---------------------------------------------------------------- The Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware has extended by 90 days CyberDefender Corporation's periods within which only the Debtor may file a plan of reorganization and solicit acceptances of the plan. Specifically, the Exclusivity Plan Period is extended through and including Sept. 20, 2012, and the Exclusivity Solicitation Period through and including Nov. 19, 2012. As reported in the Troubled Company Reporter on May 31, 2012, CyberDefender earlier this month obtained bankruptcy court authority to sell the business to GR Match LLC for $12 million in debt and $250,000 cash. There were no competing bids, so an auction was canceled. The buyer will also cure the Debtor's obligation to Oracle America Inc., successor-in-interest to RightNow Technologies Inc. The Sale Order provides that the cash portion of the proceeds will be paid to the Debtor's estate subject to the arguments of the objecting junior subordinated noteholders and Sean Downes, the holder of al of the other 9% Subordinated Convertible Promissory Noteholders against the Debtors, who argued the funds are proceeds of the sale of assets to which their liens should attach. The Court will hold a separate hearing to determine the allocation of the cash price among the Debtor's assets, a settlement agreement, the releases being granted to the buyer under the Final DIP Order. The Debtor is now in the process of closing the sale of substantially all of its business to GR Match and is focused on fulfilling a number of conditions and closing deliveries that require its attention. The Debtor also noted it has been involved in the marketing and sale of its business which required that management devote time and resources to diligence questions raised by potential purchasers, make management presentations, and assemble an online due diligence dataroom. On May 2, 2012, the Court approved a settlement agreement among the Debtor, the Official Committee of Unsecured Creditors, and GR Match that resolves potential litigation between the estate, GR Match, and the Committee regarding causes of action belonging to the estate and releases granted under the Sale Order. About CyberDefender Los Angeles, Calif.-based CyberDefender Corporation provides remote LiveTech services and security and computer optimization software to the consumer and small business market. The Company's mission is to bring to market advanced solutions to protect computer users against Internet viruses, spyware, identity theft and related security threats. In regulatory filings, the Company disclosed $7.96 million in total assets, $42.54 million in total liabilities, and a $34.58 million total stockholders' deficit, as of Sept. 30, 2011. CyberDefender filed for Chapter 11 protection (Bankr. D. Del. Case No. 12-10633) on Feb. 23, 2012. The Company entered into an asset purchase agreement with GR Match LLC, an affiliate of Guthy- Renker, to sell substantially all of its assets as a going concern to GR Match, the senior secured lender. The buyer committed to provide up to $4.6 million in debtor-in-possession financing. XRoads Solutions Group, LLC serves as financial advisor to the Company and Pachulski Stang Ziehl & Jones LLP (James E. O'Neill) serves as bankruptcy counsel. An official committee of unsecured creditors has been appointed in the case. CYBERDEFENDER CORP: Court Sets Aug. 21 as Claims Bar Date --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has established Aug. 21, 2012, as the deadline for any person or entity to file proofs of claim against CyberDefender Corporation. Los Angeles, Calif.-based CyberDefender Corporation provides remote LiveTech services and security and computer optimization software to the consumer and small business market. The Company's mission is to bring to market advanced solutions to protect computer users against Internet viruses, spyware, identity theft and related security threats. In regulatory filings, the Company disclosed $7.96 million in total assets, $42.54 million in total liabilities, and a $34.58 million total stockholders' deficit, as of Sept. 30, 2011. CyberDefender filed for Chapter 11 protection (Bankr. D. Del. Case No. 12-10633) on Feb. 23, 2012. The Company entered into an asset purchase agreement with GR Match LLC, an affiliate of Guthy- Renker, to sell substantially all of its assets as a going concern to GR Match, the senior secured lender. The buyer committed to provide up to $4.6 million in debtor-in-possession financing. XRoads Solutions Group, LLC serves as financial advisor to the Company and Pachulski Stang Ziehl & Jones LLP (James E. O'Neill) serves as bankruptcy counsel. An official committee of unsecured creditors has been appointed in the case. DESERT CAPITAL: Klayman Files Claim vs. Calton for Losses --------------------------------------------------------- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. filed a claim against Calton & Associates, Inc., on behalf of two retirees, ages 88 and 81, to recover losses sustained in Desert Capital Real Estate Investment Trust. The claim was filed with the Financial Industry Regulatory Authority. The claim seeks damages of $130,000. According to the claim, the Claimants' Calton representative solicited them to invest in Desert Capital REIT. Aware that the Claimants were retired, Calton's representative offered Desert Capital as a low risk, income producing investment. The Calton representative said that the company had a solid track record of paying dividends and would be a good addition to the Claimants' income producing portfolio. The Claimants' only source of income was social security and their investments. Consequently, they could not afford to invest in a high risk, speculative, illiquid investment. Unfortunately, Calton and its representative misrepresented the risk of and the due diligence performed on Desert Capital REIT. Desert Capital REIT invested in loans to builders and developers to buy, develop and build on commercial or residential land. The REIT did not invest in traditional residential mortgages. The loans were structured so that the REIT received monthly interest payments during the life of the loan and a balloon principal payment upon the maturity of the loan. These types of loans carry much more risk than traditional mortgages. Towards the end of 2007, Desert Capital REIT started experiencing a substantial number of borrower defaults. By 2008 and 2009 almost all of Desert Capital's borrowers defaulted on their loans. When the real estate market crashed, defaults on the loans increased, liquidity dried up and the value of Desert Capital REIT declined. The REIT eventually went bankrupt. As a result, the Claimants lost $130,000. Investors who purchased Desert Capital REIT from a FINRA brokerage firm can contact K&T to explore their legal rights and options. K&T is presently pursuing claims on behalf of investors who sustained losses by purchasing REITs including Inland Western REIT n/k/a Retail Properties of America, Apple REITs sold by David Lerner Associates, AmREIT, KBS REIT, Behringer Harvard REITs, Cornerstone Core Properties REIT, and Wells REITs. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms. DELTA PETROLEUM: Files Amended Chapter 11 Reorganization Plan ------------------------------------------------------------- BankruptcyData.com reports that Delta Petroleum filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan of Reorganization and related Disclosure Statement. "The Plan allows the Debtors to deleverage their balance sheets through their agreement with the Plan Sponsor to form a new limited liability company with assets contributed by the Plan Sponsor and the Debtors, including each party's oil and gas, surface real estate, and related assets located in Garfield and Mesa Counties, Colorado. Reorganized Delta will retain (i) a 33.34% interest in the Joint Venture Company, and (ii) $75 million in Cash, subject to certain adjustments set forth in the Contribution Agreement, drawn from a senior secured term loan credit facility obtained by the Plan Sponsor on behalf of the Joint Venture Company Approximately $75,000,000 in proceeds from the JV Company Credit Facility will be applied, along with certain other funds)and Holders of General Unsecured Claims who choose either affirmatively or by default to receive 15% of the Allowed amount of their General Unsecured Claim in Cash. To the extent that the $75 million is not enough to repay the DIP Facility Claims in full on the Effective Date, the Debtors may enter into an Exit Loan facility to repay the DIP Facility Claims in full. Precise sources and uses of the approximately $75 million in Cash will depend on the amount of Allowed Administrative Expense Claims. The Plan further provides that the Holders of General Unsecured Claims and Noteholder Claims will receive their Pro Rata shares of Reorganized Delta's New Common Stock (and in the case of Holders of Noteholder Claims, any distribution that such Holder is entitled to receive from Debtors other than Delta) in full satisfaction of their Claims, although unless Holders of General Unsecured Claims elect to receive New Common Stock, they will instead receive Cash equal to 15% of the Allowed amount of their Claims on the Effective Date as the default option. Holders of General Unsecured Claims against Delta should be aware of certain risks relating to their treatment under the Plan. First, the Debtors are not representing that the 15% cash option is equivalent in value to the New Common Stock of Reorganized Delta. The Debtors believe that fifteen cents on the dollar could be substantially less than the return implied by the receipt of the New Common Stock of Reorganized Delta, subject to the risk factors described herein, including the limited liquidity and market for the New Common Stock. Second, the existing Holders of Noteholder Claims will own the substantial majority of the New Common Stock after the Effective Date and as such, will control the operations and corporate decision-making of Reorganized Delta," according to the Disclosure Statement obtained by BankruptcyData.com. 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. Laramie Energy II LLC has been approved by the Court to serve as the sponsor for Delta's reorganization plan. DESERT GARDENS: Plan to Pay U.S. Bank Debt for 30 Years ------------------------------------------------------- Desert Gardens IV LLC has filed a first amended disclosure statement explaining its plan of reorganization dated May 29, 2012. The Debtor will begin paying US Bank, to the extent its claim is allowed, interest only payments of $87,125 per month. These payments will be from the Debtor's business operations. After 24 months, the Debtor will begin making monthly principal and interest payments of $121,017.16 to US Bank. The General Unsecured Creditors claims will be paid from the Debtor's operations over five years at $1,466.42 per month. The Short Family Trust will be paid over five years at $5,000 per month. Desert Gardens Mini Storage will be paid after all other creditors are paid. The Reorganized Debtor will retain its current management team on the terms and conditions of the management agreement presently in place. The Debtor said its operations are being maintained by experienced and competent management team. Oliva, the managing member of the Debtor, is the chief operating officer of the properties. She is assisted by Keri Kellums, the financial manager and comptroller of the Debtor. The management team also includes Karyn Oliver, Miriam Toquillos, Melanie Garner, Beth Hedlund and Hector Dominquez. About Desert Gardens IV Desert Gardens IV LLC, owner of a 532-unit Desert Gardens apartments in Glendale, Arizona, filed for Chapter 11 protection to halt foreclosure that was set for Nov. 14. The project has two 31-story towers, one built in 1983 and the other in 2003. U.S. Bank, the secured lender, is owed $26.3 million. The property is estimated to be worth $16 million. Desert Gardens IV filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 11-31061) on Nov. 4, 2011, in Phoenix. Jennings, Strouss & Salmon, P.L.C., serves as the Debtor's counsel. Sierra Consulting Group, LLC, is the financial advisor. The Debtor disclosed $16.14 million in assets and $27.14 million in liabilities in its schedules. The U.S. Trustee has not yet appointed a creditors committee in the Debtor's case because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. DEWEY & LEBOEUF: Trustee Objects to Some Advisers Hiring -------------------------------------------------------- Amanda Bransford at Bankruptcy Law360 reports that the U.S. trustee in Dewey & LeBoeuf LLP's Chapter 11 proceedings told a New York bankruptcy judge Friday that she objects to some of the firms Dewey wants to hire because of concerns the work they perform may be redundant and they may have conflicts of interest. U.S. Trustee Tracy Hope Davis objected to Dewey's applications to retain Proskauer Rose LLP as special employment and litigation counsel and Keightley & Ashner LLP as special pension benefits counsel in addition to debtors' counsel Togut Segal & Segal LLP, according to Bankruptcy Law360. About Dewey & LeBoeuf New York-based law firm Dewey & LeBoeuf LLP sought Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) to complete the wind-down of its operations. The firm had struggled with high debt and partner defections. Dewey disclosed debt of $245 million and assets of $193 million in its chapter 11 filing late evening on May 29, 2012. Dewey & LeBoeuf was formed by the 2007 merger of Dewey Ballantine LLP and LeBoeuf, Lamb, Greene & MacRae LLP. At its peak, Dewey employed about 2,000 people with 1,300 lawyers in 25 offices across the globe. When it filed for bankruptcy, only 150 employees were left to complete the wind-down of the business. Dewey's offices in Hong Kong and Beijing are being wound down. The partners of the separate partnership in England are in process of winding down the business in London and Paris, and administration proceedings in England were commenced May 28. All lawyers in the Madrid and Brussels offices have departed. Nearly all of the lawyers and staff of the Frankfurt office have departed, and the remaining personnel are preparing for the closure. The firm's office in Sao Paulo, Brazil, is being prepared for closure and the liquidation of the firm's local affiliate. The partners of the firm in the Johannesburg office, South Africa, are planning to wind down the practice. The firm's ownership interest in its practice in Warsaw, Poland, was sold to the firm of Greenberg Traurig PA on May 11 for $6 million. The Pension benefit Guaranty Corp. took $2 million of the proceeds as part of a settlement. Judge Martin Glenn oversees the case. Albert Togut, Esq., at Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The petition was signed by Jonathan A. Mitchell, chief restructuring officer. JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the lenders under the Revolver Agreement, hired Kramer Levin Naftalis & Frankel LLP. JPMorgan, as Collateral Agent for the Revolver Lenders and the Noteholders, hired FTI Consulting and Gulf Atlantic Capital, as financial advisors. The Noteholders hired Bingham McCutchen LLP as counsel. The U.S. Trustee formed two committees -- one to represent unsecured creditors and the second to represent former Dewey partners. The creditors committee hired Brown Rudnick LLP led by Edward S. Weisfelner, Esq., as counsel. The Former Partners hired Tracy L. Klestadt, Esq., and Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel. Dewey & LeBoeuf has won Court authority to use lenders' cash collateral through July 31, 2012. DIALOGIC INC: Fails to Comply with NASDAQ's Market Value Rule ------------------------------------------------------------- Dialogic Inc. received a deficiency letter from the Listing Qualifications Department of The NASDAQ Stock Market, notifying it that, for the last 30 consecutive business days, the market value of the Company's publicly held shares has been below the minimum $15.0 million requirement for continued listing on The NASDAQ Global Market pursuant to Listing Rule 5450(b)(3)(C). In accordance with Listing Rule 5810(c)(3)(D), the Company has been given 180 calendar days, or until Dec. 24, 2012, to regain compliance with the Market Value Rule. If at any time before Dec. 24, 2012, the market value of the Company's publicly held shares closes at $15.0 million or more for a minimum of 10 consecutive business days as required under Listing Rule 5810(c)(3)(D), the Staff will provide written notification to the Company that it complies with the Market Value Rule. If the Company does not regain compliance with the Market Value Rule by Dec. 24, 2012, the Staff will provide written notification to the Company that its common stock is subject to delisting. At that time, the Company may either apply for listing on The NASDAQ Capital Market, provided the Company meets the initial inclusion and continued listing requirements of that market as set forth in Listing Rule 5505, or appeal the Staff's delisting determination to a Hearings Panel. The Company would remain listed pending the Panel's decision. There can be no assurance that, if the Company does appeal the delisting determination by the Staff to the Panel, such appeal would be successful. About Dialogic Milpitas, Calif.-based Dialogic Inc. provides communications platforms and technology that enable developers and service providers to build and deploy innovative applications without concern for the complexities of the communication medium or network. The Company reported a net loss of $54.81 million in 2011, compared with a net loss of $46.71 million in 2010. The Company's balance sheet at March 31, 2012, showed $155.66 million in total assets, $185.24 million in total liabilities, and a $29.58 million total stockholders' deficit. Bankruptcy Warning The Company said in its 2011 annual report that in the event of an acceleration of the Company's obligations under the Term Loan Agreement or Revolving Credit Agreement and its failure to pay the amounts that would then become due, the Revolving Credit Lender or Term Lenders could seek to foreclose on the Company's assets. As a result of this, or if the Company's stockholders do not approve the Private Placement and the Notes become due and payable, the Company would likely need to seek protection under the provisions of the U.S. Bankruptcy Code or the Company's affiliates might be required to seek protection under the provisions of applicable bankruptcy codes. In that event, the Company could seek to reorganize its business, or the Company or a trustee appointed by the court could be required to liquidate the Company's assets. DYNEGY HOLDINGS: U.S. Trustee Objects to Merger ----------------------------------------------- BankruptcyData.com reports that the U.S. Trustee assigned to the Dynegy Holdings case filed with the U.S. Bankruptcy Court an objection to the Debtors' motion for an order authorizing the merger of Dynegy Holdings into Dynegy Inc. The Trustee asserts, "Until such time as the Debtors and Dynegy meet their burden to demonstrate that the proposed mechanism for effectuating the merger is consistent with the provisions of the Bankruptcy Code and contains a sufficient factual basis, the Merger Motion should be denied." The Trustee also filed objection to the Debtors' Disclosure Statement related to the Modified Third Amended Chapter 11 Plan. This objection explains, "The United States Trustee objects to the Amended Motion because the Disclosure Statement does not provide adequate information concerning the Plan to creditors whose votes will be solicited, as required by Section 1125 of the Bankruptcy Code." The Trustee identifies nine separate areas in the Disclosure Statement lacking adequate information. 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. EAST COAST DIVERSIFIED: Posts $754,600 Net Loss in Q1 2012 ---------------------------------------------------------- East Coast Diversified Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $754,574 on $450,494 of revenues for the three months ended March 31, 2012, compared with a net loss of $237,610 on $164,078 of revenues for the corresponding period last year. The Company's balance sheet at March 31, 2012, showed $2,384,565 in total assets, $3,674,048 in total liabilities, contingent acquisition liabilities of $1,104,973, and a stockholders' deficit of $2,394,456. As reported in the TCR on April 20, 2012, Drake & Klein CPAs, in Clearwater, Fla., expressed substantial doubt about East Coast Diversified's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has not generated revenue and has not established operations. A copy of the Form 10-Q is available for free at: http://is.gd/ElVTWe East Coast Diversified Corporation, headquartered in Marietta, Georgia, through its majority owned subsidiary, EarthSearch Communications International, Inc., offers a portfolio of GPS devices, RFID interrogators, integrated GPS/RFID technologies and Tag designs. EASTMAN KODAK: Retiree Committee Wants to Remove Cap on Fees ------------------------------------------------------------ The committee representing Eastman Kodak Co.'s retired workers is asking the Bankruptcy Court to remove the cap on fees that may be paid to its lawyers and other advisers so that it could carry out its duties to approximately 56,000 retired Kodak workers. The decision handed down by Judge Allan Gropper earlier this year approved an initial monthly fee cap of $50,000 for the retiree committee's lawyers and other bankruptcy professionals. But it would increase to $100,000 per month after the committee receives a notice of Eastman Kodak's proposal to modify or terminate the medical benefits, and $175,000 per month after it receives a written proposal from the company. "The arbitrary limitation imposed on the retiree committee's professional fees will make it impossible for the retiree committee to receive adequate representation, given the magnitude of these cases," Andrew Silfen, Esq., at Arent Fox LLP, in New York, said in court papers. Mr. Silfen also complained that the court order seems to suggest that the retiree committee's lawyers and advisers are permitted only to "monitor" the bankruptcy cases. He asked Judge Gropper to clarify that his prior decision does not limit or restrict the scope of the retiree committee's duties. A court hearing to consider the motion is scheduled for July 18. Objections are due by July 11. 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. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. EASTMAN KODAK: Shares Documents to Secured Debt Holders ------------------------------------------------------- Eastman Kodak Co. and the committee representing the company's secured debt holders inked an agreement for the turnover of documents. Earlier, the debt holders, through their legal counsel Akin Gump Strauss Hauer & Feld LLP, filed a motion to compel Eastman Kodak to turn over the documents after the company allegedly refused to do so. They also asked for permission to investigate some members of the company's management team. The documents are related to the intellectual property portfolio as well as the financial health of Eastman Kodak and its affiliated debtors. The group had said it needs to review the documents in light of a recent decision from the U.S. International Trade Commission finding one of Eastman Kodak's most valuable patents as invalid. Under the terms of the deal, the debt holders agreed to withdraw their motion in exchange for the turnover of the documents. The group's advisers are also permitted to disclose the information in the documents with the special situations group of UBS Securities LLC. A copy of the agreement is available without charge at http://bankrupt.com/misc/Kodak_StipSecuredDebtHolders.pdf 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. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. EASTMAN KODAK: Unsecured Noteholders Want Financials Made Public ---------------------------------------------------------------- A group of Eastman Kodak Co.'s unsecured debt holders is seeking public disclosure of information concerning the company's financial health. In court papers, the group demanded Eastman Kodak to publicly disclose information including the most recent consolidated balance sheet of the company and its affiliated debtors, and a detailed description of their other debt. It also wants public disclosure of Kodak International Finance Ltd.'s balance sheet. The group's lawyer, Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, in New York, said the information should be made publicly available since it has "direct bearing on the financial condition" of Eastman Kodak and the "likely recovery to general unsecured creditors." The lawyer further said none of the information requested is "proprietary" such that its disclosure would be damaging to Eastman Kodak's estate. The group is also demanding access to information already disclosed to or that will be provided to the advisers of Eastman Kodak's secured debt holders regarding the company's prospects for a successful sale of its intellectual property portfolio. 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. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. EASTMAN KODAK: Retiree Panel Proposes Zolfo as Fin'l Adviser ------------------------------------------------------------ The official committee of retired Eastman Kodak Co. employees sought the Court's authority to hire Zolfo Cooper, LLC, as its bankruptcy consultant and financial adviser. The retiree committee tapped the firm to review the business plans and financial statements of Eastman Kodak, and to assist the committee in examining any retiree benefit modification proposed by the company. Zolfo Cooper will also participate in meetings and negotiations with Eastman Kodak and its advisers, according to court papers. Zolfo Cooper will be paid for its services on an hourly basis and will be reimbursed for its expenses. The hourly rates range from $775 to $825 for managing directors, $230 to $695 for professional staff, and $55 to $295 for support personnel. In an affidavit, David MacGreevey, senior director of Zolfo Cooper, disclosed that the firm does not hold or represent interest adverse to Eastman Kodak. A court hearing to consider approval of the application is scheduled for July 18. Objections are due by July 11. 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. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. EMPRESAS MARTINEZ: Puerto Rico Court Rules on Chevron Funds ----------------------------------------------------------- In the case, EMPRESAS MARTINEZ VALENTIN CORP., Plaintiff, v. CHEVRON OF PUERTO RICO, LLC, Defendant(s), Adv. Proc. No. 11-00178 (Bankr. D. P.R.), Bankruptcy Judge Edward A. Godoy ruled that the motions in compliance with the Court's order to show cause dated June 15, 2012, filed by Chevron of Puerto Rico, LLC, and the Debtor do not establish cause for the consignment of funds in the adversary proceeding with the Court, since the parties agree that all funds being deposited belong to the Debtor. Therefore, the funds shall be returned to Chevron. To the extent that Chevron acknowledges that the amounts deposited are owed to the Debtor, Chevron will make such payments, and any future payments, directly to the Debtor. The acceptance of such payments by the Debtor will not be deemed to constitute a waiver of the Debtor's right to challenge the amounts owed by Chevron for rent under the lease agreement. A copy of the Court's July 2, 2012 Opinion and Order is available at http://is.gd/9YQBOafrom Leagle.com. Sabana Grande, Puerto Rico-based Empresas Martinez Valentin, Corp. -- aka Bronze & Metal Works and Supermercado El Tabonuco -- filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-07018) on Aug. 19, 2011. Carmen D. Conde Torres, Esq., at C. Conde & Associates, serves as the Debtor's counsel. The Debtor scheduled $4,256,600 in total assets and $2,442,518 in total liabilities. The petition was signed by Angel Javier Martinez Valentin, president. Mr. Martinez Valentin also filed for Chapter 11 (Bankr. D. P.R. Case No. 11-06321) on July 28, 2011. EMPRESAS PLAYA: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Empresas Playa Joyuda, Inc. dba Perichi's Hotel Restaurant HC-02 Box 16310, Joyuda Cabo Rojo, PR 00623 Bankruptcy Case No.: 12-05243 Chapter 11 Petition Date: July 1, 2012 Court: United States Bankruptcy Court District of Puerto Rico (Ponce) Judge: Edward A. Godoy Debtor's Counsel: Angel Miguel Roman Ongay, Esq. B-45 Ext La Concepcion Cabo Rojo, PR 00623 Tel: (787) 265-8270 E-mail: mitchroman@hotmail.com Scheduled Assets: $1,973,542 Scheduled Liabilities: $2,567,489 A copy of the Company's list of its nine largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb12-05243.pdf The petition was signed by Julio Perez Perichi, president. EVA ROMERO: Owner of Humphrey's on the Delta Files for Bankruptcy ----------------------------------------------------------------- Paul Burgarino at Contra Costa Times reports that a riverfront restaurant named after a stranded whale has sprung some financial leaks -- possibly leaving the city out nearly $75,000 in unpaid rent and utilities. According to the report, Eva and Gilbert Romero recently filed Chapter 11 bankruptcy on their properties, which include the Humphrey's on the Delta restaurant. The two-decade-old restaurant, which is still open, is built on Antioch-owned marina land and pilings. The report, citing a lease agreement with Antioch, notes Eva Romero must pay $4,089 in rent a month or 3% of gross receipts, whichever is greater. However, the city said in its recent budget report that she has only paid $1,000 since June 2011. According to court documents, Antioch found out from Wells Fargo Bank in March that Ms. Romero defaulted on her loan and a foreclosure sale had been scheduled for June 1. The Romeros filed bankruptcy the day before the scheduled sale. Bankruptcy filings show near $150,000 in unsecured claims from credit lenders, close to $70,000 in unsecured legal claims and $20,000 in utility claims. The report adds Antioch plans to file a claim for the $48,068 it is owed in bankruptcy court, but is uncertain how much, if any, it will recover. Antioch has not heard from Ms. Romero or her attorney about the status of the bankruptcy and a possible sale of the restaurant, City Attorney Lynn Tracy Nerland said. According to the report, in April, the City Council was approached by Samir Rohayem, a potential buyer for the restaurant, asking the city to delay taking legal action against Ms. Romero for not paying rent. Ms. Romero declined to comment for this story. The report says family friends point out the Romeros sold the restaurant a few years ago, though she carried the burden of the business debt. She took over the restaurant over last year when the new owner defaulted and has been struggling to catch up financially, as it was behind on lot of bills with vendors and suppliers. The report adds Antioch's Marina Fund is projected to have enough money to cover operations the next two years. However, city officials say it is vital to be able to collect rent going forward to help avoid having to subsidize the restaurant in the future. The restaurant, built in 1990, is named after the misguided whale that found its way into the Delta in 1986. Ms. Romero purchased the restaurant from original owner Bill Peluso in early 1995. EXECUTIVE CENTER: Has Deal With Platinum Courtyard on Cash Use -------------------------------------------------------------- The Bankruptcy Court signed off a stipulation that grants Executive Center of Simi Valley LLC, on a final basis, to use cash collateral of Platinum Courtyard, LLC. The Stipulation provides that Platinum Courtyard will be granted replacement lien that will only attach to post-petition rents from 30077 and 30101 Agoura Court, in Agoura Hills, California, which properties are subject to Platinum's prepetition assignment of rents. Platinum Courtyard initially objected to any attempt by Executive Center of Simi Valley to use cash collateral. Platinum Courtyard said the Debtor owes it at least $13,893,280 as of Sept. 21, 2011 plus accruing default interest, fees and costs. Executive Center of Simi Valley LLC, which operates the Agoura Hills Corporate Center, filed for Chapter 11 (Bankr. C.D. Calif. Case No. 12-11527) on Feb. 16, 2012. Judge Victoria S. Kaufman presides over the case. Janet A. Lawson, Esq., in Ventura, California, serves as the Debtor's counsel. The Debtor scheduled $29,576,254 in assets and $19,093,382 in debts. The petition was signed by Arnold A. Klein, managing partner. Platinum Courtyard is represented in the case by: Lewis R. Landau, Esq. DYKEMA GOSSETT LLP 333 South Grand Avenue, Suite 2100 Los Angeles, CA 90071 Telephone: (213) 457-1800 Facsimile: (213) 457-1850 E-mail: llandau@dykema.com FLETCHER INT'L: Sues Bermuda Liquidators in Bankruptcy Court ------------------------------------------------------------ Fletcher International, Ltd., on Monday filed a complaint in Bankruptcy Court against the Bermuda liquidators of its affiliated hedge funds seeking temporary, preliminary and permanent injunctive relief. Fletcher said the defendants are seeking improperly to exercise control over property of the Debtor's estate, including control over all of the Debtor's assets for purposes of complete liquidation, in violation of the automatic stay provisions of the Bankruptcy Code. The complaint named as defendants: -- Robin Lee McMahon and Roy Bailey, the Joint Official Liquidators of: (a) Fletcher Income Arbitrage Fund In Voluntary Liquidation, a Cayman Islands corporation, which owns 83% of the common shares and is a majority shareholder of Fletcher International; (b) FIA Leveraged Fund-In Official Liquidation, a Cayman Islands corporation; and -- Tammy Fu and Jenna Wise, the Joint Official Liquidators of Fletcher Fixed Income Alpha Fund Ltd.-In Official Liquidation, a Cayman Islands corporation Fletcher Asset Management was founded in 1991. During its initial four years, FAM operated as a broker dealer trading various debt and equity securities and making long-term equity investments. Then, in 1995, FAM began creating and managing a family of private investment funds. The Debtor is a master fund in the Fletcher Fund structure. As a master fund, it engages in proprietary trading of various financial instruments, including complex, long-term, illiquid investments. The Debtor is directly owned by Fletcher Income Arbitrage Fund and Fletcher International Inc., which own roughly 83% and 17% of the Debtor's common shares, respectively. Arbitrage's direct parent entities are Fletcher Fixed Income Alpha Fund and FIA Leveraged Fund, both of which are incorporated in the Cayman Islands and are subject to liquidation proceedings in that jurisdiction, and which own roughly 76% and 22% of Arbitrage's common stock, respectively. The Debtor currently has a single subsidiary, The Aesop Fund Ltd. According to The Wall Street Journal's Steve Eder and Josh Barbanel, the hedge fund is managed by the investment firm of Alphonse "Buddy" Fletcher Jr. About Fletcher International Fletcher International, Ltd., filed a bare-bones Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-12796) on June 29, 2012, in Manhattan. The Bermuda exempted company estimated assets and debts of $10 million to $50 million. The bankruptcy documents were signed by its president and director, Floyd Saunders. David R. Hurst, Esq., at Young Conaway Stargatt & Taylor, LLP, in New York, serves as counsel. FUELSTREAM INC: Posts $95,900 Net Loss in Q1 2012 ------------------------------------------------- Fuelstream, Inc., formerly SportsNuts, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $95,890 for the three months ended March 31, 2012, compared with a net loss of $86,718 for the same period last year. The Company generated net revenues of $-0- during the three months ended March 31, 2012, and 2011. The Company's balance sheet at March 31, 2012, showed $3,580,067 in total assets, $4,575,398 in total liabilities, and a stockholders' deficit of $995,331. Morrill & Associates, LLC, in Bountiful, Utah, expressed substantial doubt about Fuelstream's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has negative working capital, negative cash flows from operations and recurring operating losses. A copy of the Form 10-Q is available for free at: http://is.gd/qmtwk3 Draper, Utah-based Fuelstream, Inc., is an in-wing and on-location supplier and distributor of aviation fuel to corporate, commercial, military, and privately-owned aircraft throughout the world. The Company also provides a variety of ground services either directly or through its affiliates, including concierge services, passenger andbaggage handling, landing rights, coordination with local aviation authorities, aircraft maintenance services, catering, cabin cleaning, customsapprovals, and third- party invoice reconciliation. The Company's personnel assist customers in flight planning and aircraft routing aircraft, obtaining permits, arranging overflies, and flight follow services. FULLER BRUSH: Files Schedules of Assets and Liabilities ------------------------------------------------------- Fuller Brush Company LLC filed with the Bankruptcy Court for the Southern District of New York its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $10,052,589 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $31,004,196 E. Creditors Holding Unsecured Priority Claims $234,993 F. Creditors Holding Unsecured Non-priority Claims $2,969,195 ----------- ------------ TOTAL $10,052,589 $34,208,384 About The Fuller Brush Company The Fuller Brush Company -- http://www.fuller.com/-- sells branded and private label products for personal care, commercial and household cleaning and has a current catalog of 2,000 cleaning products. Some of Fuller's retail partners include Home Trends, Bi-Mart, Byerly's, Lunds, Home Depot, Do-It-Best, Primetime Solutions, Vermont Country Store and Starcrest. Founded in 1906 and based in Great Bend, Kansas, The Fuller Brush Company, Inc., and its parent, CPAC, Inc., filed for Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 12-10714 and 12-10715) in Manhattan on Feb. 21, 2012. Fuller Brush filed for bankruptcy five years after the company was taken over by private equity firm Buckingham Capital Partners. Fuller said it will be business as usual while undergoing Chapter 11 restructuring. But it said that while in reorganization, it intends to trim about half of the current catalog of cleaning products. Fuller, which has 180 employees as of the Chapter 11 filing, disclosed $22.9 million in assets and $50.9 million in debt. Herrick Feinstein LP is the Debtor's bankruptcy counsel. The official committee of unsecured creditors tapped Kelley Drye & Warren LLP as counsel. The reorganization is being financed with a $5 million loan from an affiliate of Victory Park Capital Advisors LLC, the secured lender owed $22.7 million that plans to buy the business in exchange for debt. GERALD ROBERTSON: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Gerald Robertson Enterprises, Inc. aka Robertson Enterprises 3171 County Highway One Oneonta, AL 35121 Bankruptcy Case No.: 12-03098 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Northern District of Alabama (Birmingham) Judge: Tamara O. Mitchell Debtor's Counsel: Harry P. Long, Esq. THE LAW OFFICE OF HARRY P. LONG, LLC P.O. Box 1468 Anniston, AL 36202 Tel: (256) 237-3266 E-mail: hlonglegal@aol.com Scheduled Assets: $8,913,000 Scheduled Liabilities: $6,027,967 A copy of the Company's list of its 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/alnb12-03098.pdf The petition was signed by Gerald Robertson, president. GLOBAL GREEN: K.R. Margetson Raises Going Concern Doubt ------------------------------------------------------- Global Green Matrix Corp. filed its annual report on Form 20-F for the fiscal year ended Dec. 31, 2011. K.R. Margetson Ltd., in Vancouver, Canada, expressed substantial doubt about Global Green's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has a net working capital deficiency. The Company reported a net loss of C$552,855 in 2011, compared with a net loss of C$622,344 in 2010. The Company's balance sheet at Dec. 31, 2011, showed C$1.12 million in total assets, C$286,997 in total current liabilities, and stockholders' equity of C$831,876. A copy of the Form 20-F is available for free at: http://is.gd/9Ihopg Headquartered in Gabriola, British Columbia, Canada, Global Green Matrix Corp. Global Green Matrix Corp. (formerly Poly-Pacific International Inc.) was incorporated under the Alberta Business Corporations Act on Oct. 25, 1995. The Company is pursuing business in eco-friendly solutions to industrial waste by- products. Global Green explores and pursues environmentally sound methods and technologies in waste management and the energy sector. GOOD SAM: Commences Offer to Buy $4.9-Mil. 11.50% Senior Notes -------------------------------------------------------------- Good Sam Enterprises, LLC, commenced an offer to purchase up to $4,950,000 in principal amount of the Company's outstanding 11.50% Senior Secured Notes due 2016. The Offer to Purchase will expire at 5:00 p.m., New York City time, on July 31, 2012, unless extended. The Offer to Purchase is being made pursuant to the terms of the indenture governing the Notes. The Indenture requires the Company to make an offer to purchase Notes for the semi-annual period ended June 30, 2012, in an amount equal to $5.0 million. In accordance with the Indenture and subject to the terms and conditions of the Offer to Purchase, the Company will pay a purchase price in cash equal to 101% of the principal amount of Notes validly tendered (and not validly withdrawn) prior to the Expiration Date that are accepted, plus accrued but unpaid interest thereon to the settlement date for the Offer to Purchase. If the aggregate principal amount of Notes validly tendered in the Offer to Purchase exceeds the Offer Amount, Notes will be accepted for purchase on a pro rata basis, such that the aggregate purchase price for the Notes purchased does not exceed the Offer Amount. Tenders may be validly withdrawn no later than the Expiration Date. About Affinity Group Ventura, Calif.-based Affinity Group Holding, Inc., now known as Good Sam Enterprises, LLC, is a holding company and the direct parent of Affinity Group, Inc. The Company is an indirect wholly- owned subsidiary of AGI Holding Corp, a privately-owned corporation. The Company is a member-based direct marketing organization targeting North American recreational vehicle owners and outdoor enthusiasts. The Company operates through three principal lines of business, consisting of (i) club memberships and related products and services, (ii) subscription magazines and other publications including directories, and (iii) specialty merchandise sold primarily through its 78 Camping World retail stores, mail order catalogs and the Internet. The Company's balance sheet at March 31, 2012, showed $232.60 million in total assets, $486.69 million in total liabilities, and a $254.09 million total members' deficit. * * * Affinity Group Inc. carries 'B3' long term corporate family and probability of default ratings, with 'stable' outlook, from Moody's Investors Service. As reported in the Troubled Company Reporter on November 9, 2010, Standard & Poor's Ratings Services assigned Affinity Group Inc.'s proposed $325 million senior secured notes due 2016 its preliminary 'B-' issue-level rating. Following the close of the proposed transaction, S&P expects to assign a 'B-' corporate credit rating to Affinity Group Inc., and withdraw S&P's current 'D' corporate credit rating on Affinity Group Holding Inc. A portion of the proceeds of the new notes will be used, in conjunction with cash contributions from Holding's parent, to repay in full $88 million of senior notes that are currently outstanding at Holding. S&P said the expected 'B-'corporate credit rating on Affinity Group reflects S&P's expectation that, following the proposed refinancing transaction, adjusted debt leverage will be reduced by about 1x, the company will not have any meaningful near-term debt maturities, and the company will generate some discretionary cash flow (albeit minimal). Still, credit measures will remain relatively weak, as adjusted debt leverage will remain above 6.0x (S&P's operating lease adjustment adds about a turn to leverage), and S&P expects interest coverage to remain in the low- to mid- 1.0x area over the intermediate term. GRUBB & ELLIS: Reaches Deal With Workers on 9/11 Lawsuits --------------------------------------------------------- As widely reported, Grubb & Ellis Co. is asking a bankruptcy judge to allow workers who were hurt during the cleanup of lower Manhattan after the Sept. 11, 2001 attacks to pursue their lawsuits against the company and seek damages from its insurers. Sindhu Sundar at Bankruptcy Law360 reports in a filing in New York bankruptcy court, Grubb & Ellis sought to lift the stay on the plaintiffs' litigation that had gone into effect after the firm's bankruptcy filing, according to Bankruptcy Law360. About Grubb & Ellis Grubb & Ellis Company -- http://www.grubb-ellis.com/-- is a commercial real estate services and property management company with more than 3,000 employees conducting throughout the United States and the world. It is one of the oldest and most recognized brands in the industry. Grubb & Ellis and 16 affiliates filed for Chapter 11 bankrutpcy (Bankr. S.D.N.Y. Lead Case No. 12-10685) on Feb. 21, 2012, to sell almost all its assets to BGC Partners Inc. The Santa Ana, California-based company disclosed $150.16 million in assets and $167.2 million in liabilities as of Dec. 31, 2011. Judge Martin Glenn presides over the case. The Debtors have engaged Togut, Segal & Segal, LLP as general bankruptcy counsel, Zuckerman Gore Brandeis & Crossman, LLP, as general corporate counsel, and Alvarez & Marsal Holdings, LLC, as financial advisor in the Chapter 11 case. Kurtzman Carson Consultants is the claims and notice agent. BGC Partners, Inc., and its affiliate, BGC Note Acquisition Co., L.P., the DIP lender and Prepetition Secured Lender, are represented in the case by Emanuel C. Grillo, Esq., at Goodwin Procter LLP. On March 27, 2012, the Court approved the sale to BCG. An auction was cancelled after no rival bids were submitted. Pursuant to the term sheet signed by the parties, BGC would acquire the assets for $30.02 million, consisting of a credit bid the full principal amount outstanding under the (i) $30 million credit agreement dated April 15, 2011, with BGC Note, (ii) the amounts drawn under the $4.8 million facility, and (iii) the cure amounts due to counterparties. BGC would also pay $16 million in cash because the sale was approved by the March 27 deadline. Otherwise, the cash component would have been $14 million. Approval of the sale was simplified when BGC settled with unsecured creditors by increasing their recovery. Several parties in interest have taken an appeal from the sale order. HAMPTON ROADS: CapGen Capital Owns 19.2% of Shares as of May 21 --------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, CapGen Capital Group VI LP and its affiliates disclosed that, as of May 21, 2012, they beneficially own 6,375,584 shares of common stock of Hampton Roads Bankshares, Inc., representing 19.2% of the shares outstanding. CapGen Capital previously reported beneficial ownership of 163,563,002 common shares or a 19.3% equity stake. A copy of the amended filing is available for free at: http://is.gd/uZqiIF About Hampton Roads Bankshares Hampton Roads Bankshares, Inc. (NASDAQ: HMPR) -- http://www.hamptonroadsbanksharesinc.com/-- is a bank holding company that was formed in 2001 and is headquartered in Norfolk, Virginia. The Company's primary subsidiaries are Bank of Hampton Roads, which opened for business in 1987, and Shore Bank, which opened in 1961. Currently, Bank of Hampton Roads operates twenty- eight banking offices in the Hampton Roads region of southeastern Virginia and twenty-four offices in Virginia and North Carolina doing business as Gateway Bank & Trust Co. Shore Bank serves the Eastern Shore of Maryland and Virginia through eight banking offices and fifteen ATMs. Effective June 17, 2010, the Company and its banking subsidiary, Bank of Hampton Roads ("BOHR"), entered into a written agreement with the Federal Reserve Bank of Richmond and the Bureau of Financial Institutions of the Virginia State Corporation Commission. The Company's other banking subsidiary, Shore Bank, is not a party to the Written Agreement. Under the terms of the Written Agreement, among other things, BOHR agreed to develop and submit for approval plans to (a) strengthen board oversight of management and BOHR's operations, (b) strengthen credit risk management policies, (c) improve BOHR's position with respect to loans, relationships, or other assets in excess of $2.5 million which are now, or may in the future become, past due more than 90 days, are on BOHR's problem loan list, or adversely classified in any report of examination of BOHR, (d) review and revise, as appropriate, current policy and maintain sound processes for determining, documenting, and recording an adequate allowance for loan and lease losses, (e) improve management of BOHR's liquidity position and funds management policies, (f) provide contingency planning that accounts for adverse scenarios and identifies and quantifies available sources of liquidity for each scenario, (g) reduce the Bank's reliance on brokered deposits, and (h) improve BOHR's earnings and overall condition. The Company reported a net loss of $98 million in 2011, compared with a net loss of $210.35 million in 2010. The Company's balance sheet at March 31, 2012, showed $2.13 billion in total assets, $2.02 billion in total liabilities and $105.29 million in total shareholders' equity. HAMPTON ROADS: Carlyle Group Has 22.7% Stake as of May 21 --------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Carlyle Group Management L.L.C. and its affiliates disclosed that, as of May 21, 2012, they beneficially own 7,870,693 shares of common stock of Hampton Roads Bankshares, Inc., representing 22.77% of the shares outstanding. A copy of the filing is available for free at http://is.gd/yILt19 About Hampton Roads Bankshares Hampton Roads Bankshares, Inc. (NASDAQ: HMPR) -- http://www.hamptonroadsbanksharesinc.com/-- is a bank holding company that was formed in 2001 and is headquartered in Norfolk, Virginia. The Company's primary subsidiaries are Bank of Hampton Roads, which opened for business in 1987, and Shore Bank, which opened in 1961. Currently, Bank of Hampton Roads operates twenty- eight banking offices in the Hampton Roads region of southeastern Virginia and twenty-four offices in Virginia and North Carolina doing business as Gateway Bank & Trust Co. Shore Bank serves the Eastern Shore of Maryland and Virginia through eight banking offices and fifteen ATMs. Effective June 17, 2010, the Company and its banking subsidiary, Bank of Hampton Roads ("BOHR"), entered into a written agreement with the Federal Reserve Bank of Richmond and the Bureau of Financial Institutions of the Virginia State Corporation Commission. The Company's other banking subsidiary, Shore Bank, is not a party to the Written Agreement. Under the terms of the Written Agreement, among other things, BOHR agreed to develop and submit for approval plans to (a) strengthen board oversight of management and BOHR's operations, (b) strengthen credit risk management policies, (c) improve BOHR's position with respect to loans, relationships, or other assets in excess of $2.5 million which are now, or may in the future become, past due more than 90 days, are on BOHR's problem loan list, or adversely classified in any report of examination of BOHR, (d) review and revise, as appropriate, current policy and maintain sound processes for determining, documenting, and recording an adequate allowance for loan and lease losses, (e) improve management of BOHR's liquidity position and funds management policies, (f) provide contingency planning that accounts for adverse scenarios and identifies and quantifies available sources of liquidity for each scenario, (g) reduce the Bank's reliance on brokered deposits, and (h) improve BOHR's earnings and overall condition. The Company reported a net loss of $98 million in 2011, compared with a net loss of $210.35 million in 2010. The Company's balance sheet at March 31, 2012, showed $2.13 billion in total assets, $2.02 billion in total liabilities and $105.29 million in total shareholders' equity. HAWKER BEECHCRAFT: Files Amended Chapter 11 Plan ------------------------------------------------ BankruptcyData.com reports that Hawker Beechcraft Acquisition Company filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan and related Disclosure Statement. "The Plan provides for a comprehensive restructuring of the Debtors' prepetition obligations, provides for additional liquidity, preserves the going-concern value of the Debtors' business and protects the jobs of employees. After a careful review of their current operations, prospects as an ongoing business, financial projections and estimated recoveries to creditors in a liquidation scenario, the Debtors have concluded that recoveries to the Debtors' stakeholders will be maximized by the Debtors' continued operation as a going concern. The Debtors believe that their businesses and assets have significant value that would not be realized in a liquidation, either in whole or in substantial part, and that the value of the Debtors' estates is considerably greater as a going concern....The Debtors are continuing to evaluate potential sale alternatives and may elect to incorporate one or more sale or Plan sponsorship transactions into the Plan if the Debtors conclude that such transaction or transactions maximize the value for the Debtors' creditors and stakeholders," according to the Disclosure Statement obtained by BankruptcyData.com. About Hawker Beechcraft Hawker Beechcraft Acquisition Company, LLC, headquartered in Wichita, Kansas, manufactures business jets, turboprops and piston aircraft for corporations, governments and individuals worldwide. Hawker Beechcraft reported a net loss of $631.90 million on $2.43 billion of sales in 2011, compared with a net loss of $304.30 million on $2.80 billion of sales in 2010. Hawker Beechcraft Inc. and 17 affiliates filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-11873) on May 3, 2012, having already negotiated a plan that eliminates $2.5 billion in debt and $125 million of annual cash interest expense. The plan, to be filed by June 30, will give 81.9% of the new stock to holders of $1.83 billion of secured debt, while 18.9% of the new shares are for unsecured creditors. The proposal has support from 68% of secured creditors and holders of 72.5% of the senior unsecured notes. Hawker is 49%-owned by affiliates of Goldman Sachs Group Inc. and 49%-owned by Onex Corp. The Company's balance sheet at Dec. 31, 2011, showed $2.77 billion in total assets, $3.73 billion in total liabilities and a $956.90 million total deficit. Other claims include pensions underfunded by $493 million. Hawker's legal representative is Kirkland & Ellis LLP, its financial advisor is Perella Weinberg Partners LP and its restructuring advisor is Alvarez & Marsal. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Sidley Austin LLP serves as legal counsel and Houlihan Lokey Howard & Zukin Capital Inc. serves as financial advisor to the DIP Agent and the Prepetition Agent. Wachtell, Lipton, Rosen & Katz represents an ad hoc committee of senior secured prepetition lenders holding 70% of the loans. Milbank, Tweed, Hadley & McCloy LLP represents an ad hoc committee of holders of the 8.500% Senior Fixed Rate Notes due 2015 and 8.875%/9.625% Senior PIK Election Notes due 2015 issued by Hawker Beechcraft Acquisition Company LLC and Hawker Beechcraft Notes Company. The members of the Ad Hoc Committee -- GSO Capital Partners, L.P. and Tennenbaum Capital Partners, LLC -- hold claims or manage accounts that hold claims against the Debtors' estates arising from the purchase of the Senior Notes. Deutsche Bank National Trust Company, the indenture trustee for senior fixed rate notes and the senior PIK-election notes, is represented by Foley & Lardner LLP. An Official Committee of Unsecured Creditors appointed in the case has selected Daniel H. Golden, Esq., and the law firm of Akin Gump Strauss Hauer & Feld LLP as legal counsel. HD SUPPLY: Completes Acquisition of Peachtree Business ------------------------------------------------------ HD Supply, Inc., completed its acquisition of Peachtree Business Products LLC on June 29, 2012. Headquartered in Marietta, Ga., Peachtree Business Products specializes in customizable business and property marketing supplies, serving residential and commercial property managers, medical facilities, schools and universities, churches and funeral homes. About HD Supply HD Supply, Inc., headquartered in Atlanta, Georgia, is one of the largest North American wholesale distributors supporting residential and non-residential construction and to a lesser extent electrical consumption and repair and remodeling. HDS also provides maintenance, repair and operations services. Its businesses are organized around three segments: Infrastructure and Energy; Maintenance, Repair & Improvement; and, Specialty Construction. HDS operates through approximately 800 locations throughout the U.S. and Canada serving contractors, government entities, maintenance professionals, home builders and professional businesses. The Company reported a net loss of $543 million for the year ended Jan. 29, 2012, a net loss of $619 million for the year ended Jan. 30, 2011, and a net loss of $514 million on $6.94 billion of net sales for the year ended Jan. 31, 2010. The Company's balance sheet at April 29, 2012, showed $6.32 billion in total assets, $7.10 billion in total liabilities and a $780 million total stockholders' deficit. * * * HD Supply carries 'Caa2' probability of default rating and corporate family rating, with negative outlook, from Moody's Investors Service, and a 'B' corporate credit rating, with negative outlook, from Standard & Poor's Ratings Services. In April 2010, when Moody's downgraded the ratings to 'Caa2' from 'Caa1', it said, "The downgrade results from Moody's views that the construction industry, the main driver of HDS' revenues, will continue to be weak for the foreseeable future, pressuring the company's ability to generate meaningful levels of earnings and free cash flow relative to its debt." HEALTHWAREHOUSE.COM INC: Marcum LLP Raises Going Concern Doubt -------------------------------------------------------------- HealthWarehouse.com, Inc., filed on June 22, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Marcum LLP, in New York, N.Y., expressed substantial doubt about HealthWarehouse.com's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. The Company reported a net loss of $5.71 million on $10.36 million of sales in 2011, compared with a net loss of $3.69 million on $5.69 million of sales in 2010. The Company's balance sheet at Dec. 31, 2011, showed $2.67 million in total assets, $4.96 million in total liabilities, redeemable preferred stock of $566,394, and a stockholders' deficit of $2.86 million. A copy of the Form 10-K is available for free at: http://is.gd/jz2cAW HealthWarehouse.com, Inc., headquartered in Florence, Kentucky, is a Verified Internet Pharmacy Practice Sites accredited retail mail-order pharmacy and healthcare e-commerce company that sells discounted generic and brand name prescription drugs, as well as, over-the-counter (OTC) medical products. HEARTHSTONE HOMES: Committee Fails to Block Wells Fargo Loan ------------------------------------------------------------ The Official Committee of Unsecured Creditors in the Chapter 11 case of Hearthstone Homes Inc., failed in its attempt to block approval of a joint motion by the Chapter 11 Trustee for Hearthstone Homes, Inc. and Wells Fargo Bank, N.A. for secured superpriority postpetition financing. The Court has authorized Randel C. Lewis, the Chapter 11 Trustee, to borrow $365,000 from Wells Fargo to finance the Chapter 11 Trustee's out-of-pocket expenses, his attorney's and professionals' fees, and the Trustee's overhead expenses operating the Debtor's estate. The loan is to be secured by a lien on all estate property and claims not subject to liens, and by a senior lien on all estate property that is subject to a lien. The Chapter 11 Trustee also said he needs funding to complete construction of certain houses. The Committee, which is fighting survival, alleged that all the Chapter 11 Trustee has done is to secure, protect and sell assets of Wells Fargo, and the bank has acquiesced and support the Trustee's actions. The Committee said Wells Fargo's first position with respect to the assets is a determination that is yet to be made. The Committee also noted that 40 houses are subject to a sale agreement with Legacy Homes, which negates any necessity of the Chapter 11 Trustee incurring further expenses in connection with maintaining or completing improvements to those lots. The Committee also alleged the Chapter 11 Trustee is in possession of $100,000 from the sale of certain assets that are not subject to the lien of any secured creditor. The Committee also alleged the Trustee will shortly obtain an income tax refund of $96,000, which may not be subject to the lien of any secured creditor. In June, the Court authorized the Chapter 11 Trustee to sell certain of the Debtor's properties in Nebraska, free and clear of liens, to Legacy Homes Omaha LLC over the objection of Hiller Electric Company, which asserted a lien under the Nebraska Construction Lien Act. The sale agreement includes a cash payment at closing of $2,250,000, together with the assumption of all special assessments and real property taxes, which constitutes the highest and best offer for the sale assets. About Hearthstone Homes Hearthstone Homes, Inc., filed a Chapter 11 petition in Omaha, Nebraska (Bankr. D. Neb. Case No. 12-80348) on Feb. 24, 2012. ketv.com reported that HearthStone Homes filed for Chapter 11 bankruptcy protection after a deal to sell the company fell through. Hearthstone Homes' principal business activities have been the purchase, development and sale of residential real property for 40 years. Chief Judge Thomas L. Saladino presides over the case. The Debtor is represented by Robert F. Craig, P.C. Hearthstone estimated assets and debts of $10 million to $50 million as of the Chapter 11 filing. Wells Fargo N.A., the primary lender, is represented by lawyers at Croker Huck Kasher DeWitt Anderson & Gonderinger LLC. Nancy J. Gargula, the U.S. Trustee for Region 13, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors of Hearthstone Homes. HILCORP ENERGY: Moody's Raises Corporate Family Rating to 'Ba2' --------------------------------------------------------------- Moody's Investors Service upgraded Hilcorp Energy I, L.P.'s Corporate Family Rating (CFR) to Ba2 from Ba3 and upgraded its senior unsecured notes rating to Ba3 from B1. The outlook is stable. This action concludes Moody's review for upgrade, which commenced on April 2, 2012. "The upgrade reflects Hilcorp's continuing growth in reserves and production," commented Andrew Brooks, Moody's Vice President. "Deploying asset sale proceeds to repay debt and fund its growth has enabled Hilcorp to continue its strategy of acquiring low-risk exploitation projects without re-levering its balance sheet." Rating Rationale Proceeds from Hilcorp's high-value sale of its interest in the Eagle Ford Shale in late 2011 have funded a series of asset purchases, helping to generate a 20.4% sequential growth in production in 2012's first quarter to 88,400 Boe per day. Among the larger of these acquisitions, one having closed in late 2011, the other pending, have been two portfolios of a series of Cook Inlet producing fields in Alaska. While the Cook Inlet acquisitions will skew Hilcorp's production profile more towards gas -- 62% at March 31, 2012 -- this incremental production comes with attractively priced sales contracts, and provides an element of geological diversification to Hilcorp's traditional Texas- Louisiana Gulf Coast base of operations. However, Alaska does represent a new operating area for Hilcorp, incurring higher costs to date and introduces potential execution risk. Reserve growth has also been strong; Hilcorp's 323.5 million Boe proved reserve base at year-end 2102 (48% liquids, 61% proved developed) was up 38.7% from 2010's year-end level. Hilcorp's debt leverage compares favorably to its Ba2 peers, as the financing of acquisitions and organic reserve and production growth has been achieved in tandem with debt reduction. Debt to average daily production was a modest $8,685 in the first quarter of 2012, while debt to total proved developed reserves was $3.93. Given Hilcorp's aggressive growth objectives, which include a doubling of production and reserves by 2015, it is unlikely that debt reduction of the magnitude achieved over the course of 2011- 2012 to date is permanent. However, it is Moody's expectation that increased debt leverage up to the equivalent of approximately $20,000 per Boe average daily production could be accommodated within Hilcorp's Ba2 rating. Moody's expects Hilcorp to maintain good liquidity through at least mid-2013. Balance sheet cash totaled $663 million at March 31, 2012, and Hilcorp's $650 million secured borrowing base revolving credit facility ($1.25 billion commitment) had no borrowings outstanding. In the second half of 2012, Hilcorp will likely use $375 million of cash to close its second of the two Alaska Cook Inlet acquisitions, and further acquisitions are probable. Its substantial cash balance should allow Hilcorp to internally fund growth in 2012, further reducing relative debt leverage by year-end. Hilcorp maintains full covenant compliance. The stable outlook reflects Hilcorp's growing production through its low-risk exploitation strategy, and its modest debt levels. While there is an expectation that Hilcorp could re-lever to some extent in the future, an upgrade would be possible should Hilcorp grow production to over 150,000 Boe per day while maintaining debt to average daily production below $15,000. Moody's would further expect that Hilcorp's acquisition appetite not materially deviate from its historic focus on manageably-sized transactions. Hilcorp's ratings could be lowered should it materially re-lever its capital structure to in excess of $20,000 Boe of average daily production, or should debt materially increase to fund a major acquisition or dividends. The Ba3 rating on its senior unsecured notes reflects both the overall probability of default of Hilcorp, to which Moody's assigns a PDR of Ba2, and a loss given default of LGD4 (69%). Hilcorp's senior unsecured notes are subordinate to its $650 million secured borrowing base revolving credit's potential priority claim to the company's assets. The size of the potential senior secured claims relative to Hilcorp's outstanding senior unsecured notes results in the notes being rated one notch below the Ba2 CFR under Moody's Loss Given Default Methodology. The principal methodology used in rating Hilcorp was Moody's Global Independent Exploration and Production Industry rating methodology published in December 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Hilcorp is a private limited partnership headquartered in Houston, Texas. The company's primary producing assets are located in Louisiana, the shallow waters of the US Gulf of Mexico, Texas and Alaska. HUDSON TREE: Case Dismissed After Approval of Bank7 Financing ------------------------------------------------------------- The Hon. Brenda T. Rhoades of the Bankruptcy Court for the Eastern District of Texas has ordered the dismissal of the Chapter 11 case of Hudson Tree Farm, Inc., after the Bankruptcy Court's approval of its motion for final order authorizing postpetition financing from Bank7. The Debtor's main creditor, AgriLand PCA and AgriLand FLCA, hold notes of $2,639,557 as of April 24, 2012. The Debtor sought alternate financing from Bank7 to pay off the Notes with AgriLand. About Hudson Tree Farm Bonham, Texas-based Hudson Tree Farm, Inc., dba Kennedy Arbor, has been engaged in the business of growing and selling trees. The company is formerly known as Hudson & Williams Investments, Inc. Hudson Tree Farm filed for Chapter 11 bankruptcy (Bankr. E.D. Tex. Case No. 11-43633) on Dec. 5, 2011. Chief Judge Brenda T. Rhoades oversees the case. Bill F. Payne, Esq., at The Moore Law Firm, LLP, serves as the Debtor's counsel. In its schedules, the Debtor disclosed assets of $11.7 million and liabilities of $2.6 million. The petition was signed by Mark Hudson, president. IDO SECURITY: DTC Lifts "Deposit Chill" on Common Stock ------------------------------------------------------- IDO Security Inc. was advised by the Depository Trust Company in a letter dated June 20, 2012, that DTC has resumed accepting additional deposits of the Company's stock and book entry transfer services, thereby ending the "chill" status of the Company's stock which has been in effect since June 2011. Effective June 29, 2012, the DTC has restored electronic clearance and settlement services for the Company's "IDOI" security, which is quoted on the over-the-counter Bulletin Board (OTC BB) market. DTC facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. About IDO Security IDO Security Inc. is engaged in the design, development and marketing of devices for the homeland security and loss prevention markets that are intended for use in security screening procedures to detect metallic objects concealed on or in footwear, ankles and feet through the use of electro-magnetic fields. The Company's common stock trades on the OTC Bulletin Board under the symbol IDOI. The Company is headquartered in New York City. The Company reported a net loss of $7.36 million in 2011, compared with a net loss of $7.77 million in 2010. The Company's balance sheet at March 31, 2012, showed $1.62 million in total assets, $18.75 million in total liabilities and a $17.13 million total stockholders' deficiency. Bankruptcy Warning The Company said in its 2011 annual report that under the terms of the agreements with the holders of the Company's secured promissory notes that the Company issued in December 2007 through December 2011, the note holders have a first priority lien on substantially all of the Company's assets, including the Company's cash balances. If the Company defaults under the notes, the note holders would be entitled to, among other things, foreclose on the Company's assets (whether inside or outside a bankruptcy proceeding) in order to satisfy the Company's obligations under the credit facility. INDY HOTEL: Case Summary & 14 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Indy Hotel Ventures, LLC dba Holiday Inn Express North 19600 Elders Road Evansville, IN 47725 Bankruptcy Case No.: 12-70975 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Southern District of Indiana (Evansville) Judge: Basil H. Lorch III Debtor's Counsel: Patrick C. Badell, Esq. BADELL & WILSON, P.C. P.O. Box 337 Rushville, IN 46173-0337 Tel: (765) 932-3951 E-mail: bwlaw@bwlawoffice.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 14 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/insb12-70975.pdf The petition was signed by Jacquelynne M. Jones, owner. INTEGRATED FREIGHT: Delays Form 10-K for Fiscal 2012 ---------------------------------------------------- Integrated Freight Corporation has been unable to complete accounting at the subsidiary level, gather at the parent level the accounting information from the subsidiaries, and prepare consolidated financial statements from the subsidiary accounting information within the time necessary to file the annual report at and for the year ended March 31, 2012. About Integrated Freight Integrated Freight Corporation, formerly PlanGraphics, Inc., (OTC BB: IFCR) -- http://www.integrated-freight.com/-- is a Sarasota, Florida headquartered motor freight company providing long-haul, regional and local service to its customers. The Company specializes in dry freight, refrigerated freight and haz-waste truckload services, operating primarily in well-established traffic lanes in the upper mid-West, Texas, California and the Atlantic seaboard. IFCR was formed for the purpose of acquiring and consolidating operating motor freight companies. On Aug. 19, 2010, at a special stockholders' meeting the Company approved a reverse stock split, a relocation of its State of Incorporation to Florida and a change of its name to Integrated Freight Corporation. The Company's name change and State of Incorporation have been approved and are effective as of Aug. 18, 2010. The reverse stock split has been approved but is not effective as of the date of this filing. The Company ended fiscal 2011 with a net loss of $7.76 million on $18.82 million of revenue and fiscal 2010 with a net loss of $3.14 million on $17.33 million of revenue. The Company's balance sheet at Dec. 31, 2011, showed $11.70 million in total assets, $26.29 million in total liabilities and a $14.58 million total stockholders' deficit. In the auditors' report accompanying the financial statements for year ended March 31, 2011, Sherb & Co., LLP, in Boca Raton, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and has a negative working capital position and a stockholders' deficit. INTERLEUKIN GENETICS: Enters Into Exchange Agreement with Pyxis --------------------------------------------------------------- Interleukin Genetics, Inc., entered into an Exchange Agreement with Pyxis Innovations Inc., pursuant to which Pyxis exchanged the 5,000,000 shares of Interleukin's outstanding Series A convertible preferred stock, $0.001 par value per share, it held for 5,000,000 shares of Series A-1 convertible preferred stock, $0.001 par value per share. On June 29, 2012, Interleukin also entered into a Stock Purchase Agreement with Delta Dental Plan of Michigan, Inc., pursuant to which, Interleukin sold to Delta Dental 500,000 shares of Series B convertible preferred stock, $0.001 par value per share, at a purchase price of $6.00, per share for gross proceeds of $3,000,000. For its services as exclusive placement agent BTIG, LLC, received cash compensation in the amount of approximately $210,000 and a warrant to purchase 437,158 shares of Interleukin's common stock, $0.001 par value per share, at an exercise price of $0.2745 per share. The warrant is exercisable immediately and expires five years from the date of grant. The aggregate net proceeds to Interleukin after deducting placement agents fees and expenses, and Interleukin's estimated offering expenses, were approximately $2.7 million. Pursuant to the Purchase Agreement, without the written consent of the holders of a majority of the outstanding Series B Preferred Stock, so long as at least 40% of the originally issued shares of Series B Preferred Stock remain outstanding, our Board of Directors shall consist of no more than seven members. Amendment to Note Purchase Agreement On June 29, 2012, Interleukin entered into the Fourth Amendment to the Amended and Restated Note Purchase Agreement with Pyxis to extend the maturity date for repayment of all borrowings under the credit facility until Nov. 30, 2012. Prior to this amendment, the maturity date for repayment of all borrowing under the credit facility had been June 30, 2012. All $14,316,255 available under the credit facility has been drawn down. All borrowings under the credit facility are convertible into shares of our common stock at a conversion price equal to $5.6783 per share. As a result of the extension of the maturity date, the Company has issued amended and restated promissory notes for the notes previously issued on June 10, 2008, May 29, 2009, Nov. 9, 2009, Feb. 1, 2010, Sept. 30, 2010, Nov. 9, 2011, and April 13, 2012, to reflect the amended maturity date. Amendment to the 2003 Stock Purchase Agreement On June 29, 2012, Interleukin entered into the Third Amendment to the Stock Purchase Agreement, with Pyxis dated March 3, 2003, in order to clarify and amend certain terms set forth in Section 6.8 thereof. Section 6.8, as permitted by Section 122(17) of the DGCL, regulates the conduct of Pyxis, as a majority stockholder, and certain related entities, the directors elected by the holders of the Series A-1 Preferred Stock and directors, officers and employees of the Majority Stockholder as it relates to "corporate opportunities". In connection with the transactions, Catherine Ehrenberger, a designee of the Series A Preferred Stock, resigned from the Board of Directors, effective upon the filing of the Certificate of Designation with the Delaware Secretary of State on June 29, 2012. Pursuant to the terms of the Purchase Agreement and the Certificate of Designation, Goran Jurkovic was elected by the holder of the Series B Preferred Stock as the Series B Director to fill the vacancy created by the resignation of Ms. Ehrenberger. Mr. Jurkovic has not been appointed to any committees of the Board of Directors. James Weaver, Roger C. Colman and Thomas R. Curran, Jr., each of whom were designees elected by the Series A Preferred Stock have continued as the designees elected by the Series A-1 Preferred Stock pursuant to the Certificate of Designation. Amendment to Articles of Incorporation On June 29, 2012, Interleukin filed a certificate of correction with the Delaware Secretary of State to correct a scriveners error. The certificate of correction was effective upon filing. On June 29, 2012, Interleukin filed a certificate of elimination with the Delaware Secretary of State to cancel the Series A Preferred Stock. The certificate of elimination was effective upon filing. On June 29, 2012, Interleukin filed the Certificate of Designation with the Delaware Secretary of State. A copy of the Form 8-K is available for free at: http://is.gd/PDaBLz About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. Following the Company's financial results for the year ended Dec. 31, 2011, Grant Thornton LLP, in Boston, Massachusetts, expressed substantial doubt about Interleukin Genetics' ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss of $5.02 million during the year ended Dec. 31, 2011, and, as of that date, the Company's current liabilities exceeded its current assets by $12.27 million and its total liabilities exceeded total assets by $11.4 million. The Company reported a net loss of $5.0 million for 2011, compared with a net loss of $6.0 million for 2010. The Company's balance sheet at March 31, 2012, showed $1.93 million in total assets, $14.72 million in total liabilities, and a $12.79 million total stockholders' deficit. JEFFERSON COUNTY: Judge Rules for Bondholders in Sewer Fight ------------------------------------------------------------ Lance Duroni at Bankruptcy Law360 reports that a federal judge on Friday barred bankrupt Jefferson County, Ala., from using revenues generated by its troubled sewer system to pay legal fees and cover capital expenditures, ruling that the money must be put toward paying down debt instead. Katy Stech at Dow Jones' Daily Bankruptcy Review reports that Jefferson County's bankruptcy judge said Friday that the Alabama county's leaders can dip into its ailing sewer system's revenue only to pay for necessary upkeep and repairs. Bankruptcy Law360 relates that the decision resolves an adversary proceeding brought by Bank of New York Mellon -- the indenture trustee for the county's more than $3 billion of sewer-related debt -- and lenders including JPMorgan Chase Bank NA and Bank of America NA. About Jefferson County Jefferson County has its seat in Birmingham, Alabama. It has a population of 660,000. Jefferson County filed a bankruptcy petition under Chapter 9 (Bankr. N.D. Ala. Case No. 11-05736) on Nov. 9, 2011, after an agreement among elected officials and investors to refinance $3.1 billion in sewer bonds fell apart. John S. Young Jr. LLC was appointed as receiver by Alabama Circuit Court Judge Albert Johnson in September 2010. Jefferson County's bankruptcy represents the largest municipal debt adjustment of all time. The county said that long-term debt is $4.23 billion, including about $3.1 billion in defaulted sewer bonds where the debt holders can look only to the sewer system for payment. The county said it would use the bankruptcy court to put a value on the sewer system, in the process fixing the amount bondholders should be paid through Chapter 9. Judge Thomas B. Bennett presides over the Chapter 9 case. Lawyers at Bradley Arant Boult Cummings LLP and Klee, Tuchin, Bogdanoff & Stern LLP, led by Kenneth Klee, represent the Debtor as counsel. Kurtzman Carson Consultants LLC serves as claims and noticing agent. Jefferson estimated more than $1 billion in assets. The petition was signed by David Carrington, president. The bankruptcy judge in January 2012 ruled that the state court- appointed receiver for the sewer system largely lost control as a result of the bankruptcy. Before deciding whether Jefferson County is eligible for Chapter 9, the bankruptcy judge will allow the Alabama Supreme Court to decide whether sewer warrants are the equivalent of "funding or refunding bonds" required under state law before a municipality can be in bankruptcy. U.S. District Judge Thomas B. Bennett ruled in March 2012 that Jefferson County is eligible under state law to pursue a debt restructuring under Chapter 9. Holders of more than $3 billion in defaulted sewer debt had challenged the county's right to be in Chapter 9. KM ASSOCIATES: Will File Amended Disclosure Statement on July 31 ---------------------------------------------------------------- KM Associates LLC has withdrawn its disclosure statement and plan of reorganization upon the objection of the United States Trustee. KM Associates has agreed to file and amended disclosure statement and plan of reorganization on or before July 31, 2012. As reported by the Troubled Company Reporter on June 7, 2012, KM Associates's plan of reorganization provides for the refinancing of the Lenders' secured debt on the Principal Real Estate Asset by the Debtor and third-party investor, The Summers Group. Based on multiple conversations with The Summers Group, it is the Debtor's strong understanding that The Summers Group will also provide an immediate capital infusion to satisfy, in part or in full, the remaining Class of creditors' claims. Summers Group will invest $384,000 to fully satisfy the Contractors claims based on agreements between the Debtor and Contractors. In addition, Sumners Group is providing $450,000 to fully satisfy the Erect Fund, Frank A. Baer, II, Lee O. Hill, and Thomas E. Potter's claims based on agreements between the Debtor and the parties. The remainder of the capital infusion from The Summers Group will be utilized to satisfy the remaining creditors and provide for the continued development of the Principal Real Estate Asset. The U.S. Trustee objects to the Disclosure Statement, saying it does not contain adequate information regarding (a) the financial relationship between the Debtor and the Summers Group or (b) the terms of the proposed refinancing of the secured debt. Moreover, the proposed refinance of secured debt does not appear to be sufficiently firm to support confirmation of a plan. In addition, the U.S. Trustee notes that the disclosure statement does not provide adequate information regarding (a) the amount of the proposed capital infusion by the Summers Group, (b) the terms of the infusion, or (c) the precise manner and time in which unsecured claims will be paid with those funds. With respect to Class 2 contractor claims, the agreements to accept compromise amounts indicate the agreements became void on Jan. 21, 2012. The disclosure statement contains no information indicating those creditors are now willing to accept compromised amounts. Moreover, most of the contractors have filed proofs of claim for the full amount of their lien claim, and the debtor has not objected or indicated the intent to object to those claims. With respect to Class 4 unsecured claims, the U.S. Trustee contends that there is no information regarding (a) the total amount that will be paid to that class of claims, (b) the number and amount of such claims, and (c) whether those claims will be paid in full or paid a compromised amount. With respect to Class 5 equity claims, the plan proposes to pay equity interests a compromised amount in full satisfaction of their "claims", except for SAK, LLC which will receive no payment. The disclosure statement omits mentioning Highmark Specialty R/E Trust that is listed as a 5% owner in the SOFA. More importantly, the disclosure statement does not state (a) whether equity interests who are being paid will have any continued interest in the debtor, (b) whether the equity interests not being paid will retain their interest, or (c) whether other entities will have an equity interest in the debtor after the plan is confirmed. The Debtor has said it is negotiating an agreement for the refinancing of the secured debt between Citizens National Bank; CNB Bank; First United Bank & Trust; Merchants National Bank of Kittanning; Progressive Bank, NA; and Standard Bank PaSB; the Debtor; and The Summers Group. During recent discussions between the parties, the refinancing of the secured debt centered on a principal of approximately $17,000,000 at a 4.5% interest rate and a 25-year amortization. A copy of the disclosure statement is available for free at: http://bankrupt.com/misc/KM_ASSOCIATES_ds.pdf About KM Associates KM Associates, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. W.Va. Case No. 12-20041) on Jan. 30, 2012. The petition was signed by Donald S. Simpson, managing member. The Debtor, a Single Asset Real Estate under 11 U.S.C. Sec. 101 (51B), disclosed assets of $17.3 million and liabilities of $26.5 million. Bank lenders The CNB Bank, Standard Bank PaSB First United Bank & Trust, Progressive Bank, N.A., Citizens Bank of West Virginia, Inc. and Farmers and Merchants Bank of Western Pennsylvania, National Association, are represented by Arthur M. Standish, Esq., and Kristian J. Jamieson, Esq., at Steptoe & Johnson PLLC. KV PHARMACEUTICAL: Fails to Comply with NYSE's $1 Bid Price Rule ---------------------------------------------------------------- K-V Pharmaceutical Company was notified by the New York Stock Exchange Regulation, Inc., on June 26, 2012, that its Class A common shares is below criteria for the average closing price of a security of less than $1.00 over a consecutive 30 day trading period. This notification pertains to the Class A Common Stock but also affects the Class B Common Stock. The Company will have a six-month period from the date of the NYSE notification to cure this deficiency. Per NYSE procedures, K-V intends to notify the NYSE within 10 business days from the receipt of the NYSE notification of its intent to cure this deficiency within the six-month cure period. During this six-month cure period, the Company's shares will continue to be listed and traded on the NYSE, subject to its compliance with other NYSE continued listing standards. However, starting on July 3, 2012, the Company's Class A common shares and Class B common shares will trade under the symbols "KVa.BC" and "KVb.BC," respectively. About KV Pharmaceutical Company KV Pharmaceutical Company (NYSE: KVa/KVb) -- http://www.kvpharmaceutical.com/-- is a fully integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded and generic/non-branded prescription pharmaceutical products. The Company markets its technology distinguished products through ETHEX Corporation, a subsidiary that competes with branded products, and Ther-Rx Corporation, the company's branded drug subsidiary. The Company reported a net loss of $102.30 million for the year ended March 31, 2012, a net loss of $271.70 million for the year ended March 31, 2011, and a net loss of $283.60 million for the year ended March 31, 2010. The Company's balance sheet at March 31, 2012, showed $253.40 million in total assets, $734.10 million in total liabilities and a $480.70 million total shareholders' deficit. BDO USA, LLP, in Chicago, Illinois, issued a "going concern" qualification on the consolidated financial statements for the fiscal year ended March 31, 2012. The independent auditors noted that the Company among other things has experienced recurring losses from operations, has a significant shareholders' deficit, and negative working capital; the potential inability of the Company to raise additional capital or debt financing; a potential cash shortfall in meeting near term obligations; significant uncertainties related to litigation and governmental inquiries; and potential debt covenant violations. These factors raise substantial doubt about the Company's ability to continue as a going concern. LENCO MOBILE: Peterson Sullivan Raises Going Concern Doubt ---------------------------------------------------------- Lenco Mobile Inc. filed on June 22, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Peterson Sullivan LLP, in Seattle, Washington, expressed substantial doubt about Lenco Mobile's ability to continue as a going concern. The independent auditors noted that the Company has experienced recurring losses from operations and negative cash flows from operating activities. The Company reported a net loss of $29.98 million on $9.50 million of revenues for 2011, compared with a net loss of $7.58 million on $6.08 million of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $39.39 million in total assets, $18.95 million in total liabilities, and stockholders' equity of $20.44 million. A copy of the Form 10-K is available for free at: http://is.gd/dU6IBm Seattle, Washington-based Lenco Mobile Inc. is a global provider of proprietary mobile messaging and mobile web solutions to large enterprises and marketing agencies. LIQUIDMETAL TECHNOLOGIES: 5 Directors Elected at Annual Meeting --------------------------------------------------------------- Liquidmetal Technologies, Inc., held its annual meeting of stockholders on June 28, 2012. At the meeting, the Company's stockholders (i) elected five directors to the Company's board of directors, (ii) approved an amendment to the Company's Certificate of Incorporation to increase the number of authorized shares of common stock from 300 million to 400 million, (iii) approved the Company's 2012 Equity Incentive Plan, and (iv) ratified the appointment of SingerLewak LLP as the Company's independent registered public accounting firm for fiscal year 2012. The newly elected directors are Scott Gillis, Mark Hansen, Abdi Mahamedi, Ricardo Salas, and Thomas Steipp. 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. 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. The Company's balance sheet at March 31, 2012, showed $2.02 million in total assets, $4.86 million in total liabilities, and a $2.84 million total shareholders' deficit. LIQUIDMETAL TECHNOLOGIES: Completes $12-Mil. Private Placement -------------------------------------------------------------- Liquidmetal Technologies, Inc., completed the closing of the private placement of $12.0 million in principal amount of Senior Convertible Notes due on Sept. 1, 2013. The Notes were issued pursuant to the terms of the Securities Purchase Agreement entered into among the Company and certain accredited investors on July 2, 2012. The Private Placement resulted in gross proceeds of $12.0 million before placement agent fees and other expenses associated with the transaction. As a part of the Private Placement, on July 2, 2012, the Company issued Warrants to the purchasers of the Notes giving them the right to purchase up to an aggregate of 18,750,000 shares of the Company's common stock at an exercise price of $0.384 per share. In addition, in connection with the Private Placement, the Company entered into a Registration Rights Agreement under which it agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of the Company's common stock issuable pursuant to the Notes and Warrants. A copy of the Form 8-K disclosure is available for free at: http://is.gd/VS1hdN A copy of the Securities Purchase Agreement is available at: http://is.gd/pscnsA 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. 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. The Company's balance sheet at March 31, 2012, showed $2.02 million in total assets, $4.86 million in total liabilities, and a $2.84 million total shareholders' deficit. LLS AMERICA: U.S. Laws Apply to Case Trustee's Lawsuits ------------------------------------------------------- Bankruptcy Judge Patricia C. Williams denied the request of defendants Sheldon Frank and Margaret Miller to dismiss for lack of jurisdiction the lawsuit, BRUCE P. KRIEGMAN, solely in his capacity as court-appointed Chapter 11 Trustee for LLS America, LLC, Plaintiff, v. PAUL COOPER, et al., Defendants, Adv. Proc. No. 11-80093-PCW11 (Bankr. E.D. Wash.). The action is one of hundreds of adversary proceedings commenced by the trustee seeking, on various grounds, to recover distributions made to LLS America investors. The investors are residents of Canada and of the United States who received disbursements on their investments and who also received "commissions" for referring other investors to Doris Nelson, the Company's founder. Defendants Frank and Miller contend they are residents of Canada and do not conduct business in the United States. Both defendants state they were in Canada at the time their various investments were solicited and the repayments and commissions were sent by them to a Canadian entity. According to the Court, however, although there undoubtedly were events relevant to this dispute which occurred in Canada, the evidence indicates that this cross-border activity, whether or not it constituted a Ponzi scheme, had it center or gravity in Spokane, Washington. The application of the doctrine of conflict of laws results in the conclusion that the laws of the United States and not the laws of Canada are applicable. A copy of the Court's July 2, 2012 Memorandum Decision is available at http://is.gd/ZDm13Nfrom Leagle.com. About Little Loan Shoppe LLS America LLC, doing business as Little Loan Shoppe, operated an online payday loan business. Affiliate Team Spirit America provided the manpower, management and equipment for Little Loan Shoppe. The companies are among a multitude of Canadian and American business entities owned and operated by Doris E. Nelson, a/k/a Dee Nelson, a/k/a Dee Foster. Investors claimed Ms. Nelson operated a Ponzi scheme. Ms. Nelson allegedly told investors they could earn as much as 60% on money her companies used to make payday loans to consumers. American and Canadian investors bought notes worth US$29 million and another C$26,000,000. However, the investors received no payments after March 2009. One investor group placed a related company, LLS-A LLC, into bankruptcy in July 10, 2009. LLS America LLC filed for bankruptcy (Bankr. D. Nev. Case No. 09-23021) on July 21, 2009, before Judge Linda B. Riegle. Gregory E. Garman, Esq. -- bankruptcynotices@gordonsilver.com -- at Gordon Silver, served as the Debtor's counsel. In its petition, the Debtor listed $2,661,584 in assets and $24,013,837 in debts. The petition was signed by Ralph Gamble, CEO of the Company. The case was subsequently moved to Washington state (Bankr. E.D. Wash. Case No. 09-06194). Charles Hall was appointed as examiner in the case. LOGIC DEVICES: Posts $456,800 Net Loss in March 31 Quarter ---------------------------------------------------------- LOGIC Devices Incorporated filed its quarterly report on Form 10-Q, reporting a net loss of $456,800 on $110,000 of revenues for the three months ended March 31, 2012, compared with a net loss of $104,500 on $573,400 of revenues for the three months ended March 31, 2011. For the six months ended March 31, 2012, the Company reported a net loss of $843,700 on $281,900 of revenues, compared with a net loss of $511,000 on $778,200 of revenues for the six months ended March 31, 2011. The Company's balance sheet at March 31, 2012, showed $2,464,100 in total assets, $949,700 in total liabilities, and stockholders' equity of $1,514,400 As reported in the TCR on Jan. 3, 2012, Hein & Associates LLP, in Irvine, California, expressed substantial doubt about LOGIC Devices' ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2011. The independent auditors noted that the Company has suffered recurring losses from operations and requires additional funds to maintain its operations. A copy of the Form 10-Q is available for free at: http://is.gd/8d5GHA Sunnyvale, Calif.-based LOGIC Devices Incorporated is an ISO 9001:2008 registered company that develops and markets high- performance, low power digital integrated circuits and integrated modules that perform high-density storage and signal/image processing functions. The Company's products enable video display, transport, editing, composition, special effects, and the high-performance, high-density storage of electronic information. The Company also provides solutions for digital filtering in television broadcast stations and image enhancement in medical diagnostic scanning and imaging equipment. LON MORRIS COLLEGE: Files for Chapter 11 in Tyler, TX ----------------------------------------------------- Lon Morris College, of Jacksonville, Texas, filed a Chapter 11 petition (Bankr. E.D. Tex. Case No. 12-60557) in Tyler, on July 2, 2012, after lacking enough endowments to pay teachers, vendors and creditors. The president of the College has resigned, as have members of the board of trustees. Bridgepoint Consulting LLC's Dawn Ragan has taken over management of the College as chief restructuring officer. Attorneys at McKool Smith P.C., in Houston, serve as counsel to the Debtor. Lon Morris College was founded in 1854 as a not-for-profit religiously affiliated two-year degree granting institution. Over the past 158 years, the College has impacted the lives of countless members of the local Jacksonville community. According to its books, on April 30, 2012, the College had approximately $35 million in assets, including $11 million in endowments and restricted funds, and $18 million in funded debt and $2 million in trade and other liabilities. Ms. Ragan explains in a court filing that most of the endowments were either pledged as collateral against long term debt, or restricted for purposes that made the funds unavailable to the Debtor for general operating needs. The College, according to Ms. Ragan, had limited unrestricted cash available and would not generate any significant additional cash until the fall semester commenced. The Debtor had systemic problems, and had been operating at a considerable loss for several years prior to this bankruptcy. The donor base was no longer willing to provide the necessary support without a plan to show improvement. From $2.744 million in 2007, contributions were down to $1.334 million in 2011. The Debtor offered scholarships to boost enrollment, but scholarships were unfunded. From a headcount of 1,070 in 2010, enrolments have been down to 547 this year. The College tapped the services of Bridgepoint Consulting LLC on May 13, 2012 at a time when the Debtor missed two payrolls and vendor payables, utilities, and long term debt were also past due. Bridgepoint's assessment indicates it is in the best interest of the College to find a strong financial partner, and this can best be accomplished through a chapter 11 proceeding that will give the Debtor the breathing room to pursue a financial transaction in an expedited period of time. The Board of Trustees has authorized a chapter 11 filing to facilitate the transaction process and maximize recovery to the College's creditors, and continue, as best as possible, to achieve the College's goal of educating students in the Jacksonville area. On the petition date the Debtor filed motions to, among other things, hire a chief restructuring officer, obtain postpetition secured and super priority financing, use existing bank accounts, and bar utilities from discontinuing service. Emergency hearings are scheduled for July 5, 2012 at 1:30 p.m. MAMMOTH LAKES: Files for Chapter 9 Bankruptcy --------------------------------------------- The town of Mammoth Lakes, California, a small California resort community near Yosemite National Park, filed a Chapter 9 bankrutpcy petition (Bankr. E.D. Calif. Case No. 12-32463) on July 3, 2012. Stephanie Gleason and Mike Cherney at Dow Jones' Daily Bankruptcy Review report that the town council authorized the bankruptcy filing, saying its largest creditor declined mediation on a $43 million judgment against the town. Bankruptcy Law360 relates that the Mammoth Lakes Town Council unanimously voted to file for bankruptcy after real estate developer Mammoth Lakes Land Acquisition refused to mediate the judgment against the town and obtained a court order requiring payment by June 30, the town said in a statement. The Wall Street Journal's Michelle Kung and Mike Cherney report that a municipal official said Mammoth Lakes hopes to emerge from bankruptcy protection before the end of the year. WSJ relates Mammoth Lakes has cut employee pay and benefits, as well as reduced the amount it spends with outside vendors. The spending cuts were included in a budget that factored in the possibility of a bankruptcy filing. According to the report, town officials said they tried to negotiate with Mammoth Lakes Land Acquisition, a real estate developer, but couldn't reach terms on the $43 million it owed the company. The law firm representing Mammoth Lakes Land Acquisition didn't respond to a request for comment, WSJ says. The report recounts the bankruptcy stems from a planned real- estate project the town had intended to pursue with Mammoth Lakes Land Acquisition but ultimately decided to end. Mammoth Lakes Land Acquisition sued the town for ending the contract and won. According to Standard & Poor's, the obligation to the real estate developer represents 250% of the town's annual general fund budget. Mammoth Lakes projected a $2.8 million budget shortfall for its 2012-13 fiscal year. Mammoth Lakes is a town in Mono County, California, the county's only incorporated community. It is located 9 miles northwest of Mount Morrison, at an elevation of 7,880 feet. The population was 7,093 at the 2000 census. Mammoth Lakes has a reputation as a skiing destination. The Debtor is represented by: Michael L. Tuchin, Esq. 1999 Avenue of the Stars 39th Floor Los Angeles, CA 90067 Tel: 310-407-4000 MARIAH MOORE: Case Summary & 3 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Mariah Moore House, LLC P.O. Box 1802 Bowling Green, KY 42102 Bankruptcy Case No.: 12-10919 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Western District of Kentucky (Bowling Green) Debtor's Counsel: Russ Wilkey, Esq. WILKEY & WILSON, P.S.C. 111 W. Second Street Owensboro, KY 42303 Tel: (270) 685-6000 Fax: (270) 683 2229 E-mail: dcwilkey@wilkeylaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/kywb12-10919.pdf The petition was signed by Richard Kelley, managing member. MOUNTAIN PROVINCE: Tuzo Kimberlite Volume Increased by 78.5% ------------------------------------------------------------ Mountain Province Diamonds Inc. announced a 78.5 percent increase in the volume estimate of the Tuzo kimberlite pipe at the Gahcho Kue JV with De Beers Canada Inc. The Tuzo Deep volume estimate is based on the pierce points from five inclined drill holes completed in April, 2012, as well as two pierce points from earlier drilling. The results of the Tuzo Deep drilling indicate an increase from the previous kimberlite volume estimate of 6.6 million cubic meters to 11.781 million cubic meters. The bulk of this volume increase (4.578 million cubic meters) is modelled from a depth of 354 meters (the cut-off of the current resource estimate) to a depth of 564 meters; an increase in depth of 210 meters. This represents a significant increase in the volume of the Tuzo kimberlite and confirms the depth extension of the kimberlite pipe from 354 meters to 564 meters. The inclined Tuzo Deep drill holes flattened as they traversed from granite to the less dense kimberlite; therefore the volume estimate to 564 meters does not represent the total potential depth of the Tuzo kimberlite pipe, which remains open to depth below 564 meters. Patrick Evans, President and CEO of Mountain Province Diamonds, commented: "The substantial increase in the volume of the Tuzo kimberlite pipe to depth below the current resource is very encouraging. In addition, the current Tuzo resource model indicates that the diamond grade increases to depth. If this trend continues, the potential exists for higher grade kimberlite ore below 354 meters." With an average density of 2.40 grams per cubic centimeter, the Tuzo volume increase of approximately 5 million cubic meters is equivalent to an increase of approximately 12.4 million tonnes over 210 meters from a depth of 354 meters to 564 meters. The current Tuzo Indicated Resource, grading 1.21 carats pet tonne, is from surface to a depth of 300 meters. The Inferred Resource, with an average grade of 1.75 carats per tonne, is from a depth of 300 meters to 354 meters. The increase in grade to depth is attributable to a generally lower degree of dilution as well as a coarser diamond distribution. This leads to the conclusion that the coherent magmas at depths greater than 300 meters have the potential for a favourable coarse diamond distribution. Mr. Evans added: "While we are very pleased that the Tuzo Deep drill program has confirmed the presence of substantial kimberlite volumes below the current resource, the flattening of the inclined drill holes limited the depth to which we were able to test the kimberlite pipe. Mountain Province is engaging with JV partner De Beers to discuss a follow-up program to achieve the original objective of defining a kimberlite resource to 750 meters." The above estimate represents kimberlite volume only. A mineral resource will only be classified once the geological and grade modelling has been completed. Mountain Province anticipates that an updated resource estimate will be completed by late 2012 and released in early 2013. Images depicting the Tuzo kimberlite volume estimates can be seen on the Company's Web site at www.mountainprovince.com. The Tuzo kimberlite is one of four known kimberlites within the Gahcho Kue joint venture with De Beers. Three of the four kimberlites (5034, Hearne and Tuzo) have a Probable Reserve of 29.5 million tonnes with a grade of 1.66 carats per tonne, for total diamond content of 49 million carats. In addition to the four known kimberlites at Gahcho Kue, recent exploration has identified an additional 55 geophysical targets of which 40 have been classified as high priority. The JV partners are currently developing a follow-up exploration program to test the newly discovered high priority exploration targets. Mr. Evans concluded: "We are very excited about the further exploration potential at Gahcho Kue. To date, all seven of the kimberlites that have been discovered in the Kennady Lake area are diamondiferous. This gives us encouragement that further kimberlite discoveries are also likely to be diamond-bearing." About Mountain Province Headquartered in Toronto, Canada, Mountain Province Diamonds Inc. (TSX: MPV, NYSE AMEX: MDM) -- http://www.mountainprovince.com/-- is a Canadian resource company in the process of permitting and developing a diamond deposit known as the "Gahcho Kue Project" located in the Northwest Territories of Canada. The Company's primary asset is its 49% interest in the Gahcho Kue Project. The Company's balance sheet at March 31, 2012, showed C$66.84 million in total assets, C$13.13 million in total liabilities, and C$53.70 million in total shareholders' equity. The Company reported a net loss of C$11.53 million for the year ended Dec. 31, 2011, compared with a net loss of C$14.53 million during the prior year. After auditing the financial statements for the year ended Dec. 31, 2011, KPMG LLP, in Toronto, Canada, noted that the Company has incurred a net loss in 2011 and expects to require additional capital resources to meet planned expenditures in 2012 that raise substantial doubt about the Company's ability to continue as a going concern. MEDIA GENERAL: Messrs. Conschafter and Cottingham Elected VPs ------------------------------------------------------------- Media General is streamlining its market structure and operations to align with its new focus as a pure-play television broadcaster. The changes are effective immediately. The Company's current market structure of five geographic regions will be replaced by a new structure of two geographic regions, focused on its 18 network-affiliated television stations. James R. Conschafter and John R. Cottingham were elected corporate vice presidents by the Board of Directors. Each will have operating responsibility for one of the two new geographic regions. Media General also announced that John A. Schauss, vice president-market operations, is retiring. The company will not fill this role, and the two new positions held by Mr. Conschafter and Mr. Cottingham will report directly to Marshall N. Morton, president and chief executive officer of Media General. "With our June 25 sale of newspapers, Media General is focusing all of its resources on its broadcast television group. We are delighted that our two most experienced broadcast executives will lead our television operations. I thank John Schauss for his many contributions to Media General and wish John and his wife, Joan, all the best in retirement," said Mr. Morton. "We are committed to increasing broadcast cash flow and EBITDA margins. One component of margin improvement will be the alignment of our corporate structure with our new business focus. The streamlining of our market structure and operations is a key first step in that process," he said. Media General said that the Company's other two current market leaders, Marilyn Hammond, president and market leader-North Carolina, and Dan Bradley, president and market leader-Ohio/Rhode Island, will remain with Media General in key roles that will be announced at a later date. Mr. Conschafter is responsible for the following markets and stations: North Carolina: Greenville, WNCT-TV; Raleigh, WNCN-TV, Ohio: Columbus, WCMH-TV Rhode Island: Providence, WJAR-TV South Carolina: Spartanburg/Greenville, WSPA-TV and Asheville, NC, WYCW; Florence/Myrtle Beach, WBTW Virginia: Roanoke, WSLS-TV Tennessee: Johnson City, WJHL-TV Mr. Cottingham is responsible for the following markets and stations: Alabama: Birmingham, WVTM-TV; Mobile, AL/Pensacola, FL, WKRG-TV; Florida: Tampa, WFLA-TV Georgia: Augusta, WJBF-TV; Columbus, WRBL-TV; Savannah, WSAV-TV Mississippi: Jackson, WJTV-TV and Hattiesburg, WHLT-TV South Carolina: Charleston, WCBD-TV Mr. Conschafter has been president and market leader, Virginia- Tennessee since 2010. Previously, he had served in that role for the Company's North Carolina market since July 2009. Prior to that, he had been senior vice president-broadcast stations, within the Company's former broadcast division, since 2004. Mr. Conschafter joined Media General in 2000 with the Company's acquisition of Spartan Communications, where he had served as general manager. He began at Media General as vice president and general manager of WSPA and two stations that are no longer owned by Media General. Earlier in his career, he held management and sales leadership positions at network-affiliated television stations in North Carolina, New York, Missouri and Ohio. Mr. Conschafter is a graduate of the Newhouse School of Communications at Syracuse University. Mr. Cottingham has been president and market leader, Mid-South, since July 2009. Earlier this year, he assumed additional responsibility for the Company's Florida market. Prior to assuming his current role, Mr. Cottingham had been senior vice president-broadcast stations, within the Company's former broadcast division, since 2005. He joined Media General in 2001 as vice president and general manager of three stations, including WSPA in Spartanburg, S.C. Earlier in his career, he held management and sales leadership positions at a number of broadcast stations in North Carolina, Ohio and Indiana. Mr. Cottingham attended Belmont Abbey College. About Media General Richmond, Virginia-based Media General Inc. (NYSE: MEG) -- http://www.mediageneral.com/-- is an independent communications company with interests in newspapers, television stations and interactive media in the United States. The Company reported a net loss of $74.32 million for the fiscal year ended Dec. 25, 2011, a net loss of $22.64 million for the fiscal year ended Dec. 26, 2010, and a net loss of $35.76 million for the fiscal year ended Dec. 27, 2009. * * * As reported by the Troubled Company Reporter on April 12, 2012, Moody's Investors Service downgraded, among other things, Media General's Corporate Family Rating (CFR) and Probability of Default Rating (PDR) to Caa1 from B3, concluding the review for downgrade initiated on Feb. 13, 2012. The downgrade reflects the significant increase in interest expense associated with the company's credit facility amend and extend transaction and an assumed issuance of at least $225 million of new notes, which will result in limited free cash flow generation and constrain Media General's capacity to reduce its very high leverage. The weak free cash flow and high leverage create vulnerability to changes in the company's highly cyclical revenue and EBITDA generation. In the May 23, 2012, edition of the TCR, Standard & Poor's Ratings Services placed its 'CCC+' corporate credit rating on Richmond, Va.-headquartered Media General Inc., along with its 'CCC+' issue- level rating on the company's senior secured notes, on CreditWatch with positive implications. "The CreditWatch placement is based on Media General's agreement to sell the majority of its newspaper assets to BH Media Group, a subsidiary of Berkshire Hathaway Inc. The CreditWatch also reflects the announcement that the company will refinance its existing bank debt due in March 2013. It expects to close the refinancing transaction next week and the newspaper sale by June 25, 2012," S&P said. MSR RESORT: Hilton Expert Says Nixing MSR Deals Would Harm It ------------------------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports that lawyers for MSR Resort Golf Course LLC and Hilton Worldwide Inc. sparred Tuesday during examination of a hospitality expert as the two sides continue a trial over whether MSR can cancel resort management agreements, focusing on Hilton's potential loss of income and reputation. Bankruptcy Law360 says MSR is seeking to cancel Hilton's management contracts for three luxury resorts -- the Grand Wailea Resort Hotel & Spa in Maui, Hawaii; the La Quinta Resort & Club in Palm Springs, Calif.; and the Arizona Biltmore Resort & Spa in Phoenix. About MSR Resort MSR Hotels & Resorts, formerly known as CNL Hotels & Resorts Inc., owns a portfolio of eight luxury hotels with over 5,500 guest rooms, including the Arizona Biltmore Resort & Spa in Phoenix, the Ritz-Carlton in Orlando, Fla., and Hawaii's Grand Wailea Resort Hotel & Spa in Maui. On Jan. 28, 2011, CNL-AB LLC acquired the equity interests in the portfolio through a foreclosure proceeding. CNL-AB LLC is a joint venture consisting of affiliates of Paulson & Co. Inc., a joint venture affiliated with Winthrop Realty Trust, and affiliates of Capital Trust, Inc. Morgan Stanley's CNL Hotels & Resorts Inc. owned the resorts before the Jan. 28 foreclosure. Following the acquisition, five of the resorts with mortgage debt scheduled to mature on Feb. 1, 2011, were sent to Chapter 11 bankruptcy by the Paulson and Winthrop joint venture affiliates. MSR Resort Golf Course LLC and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-10372) in Manhattan on Feb. 1, 2011. The resorts subject to the filings are Grand Wailea Resort and Spa, Arizona Biltmore Resort and Spa, La Quinta Resort and Club and PGA West, Doral Golf Resort and Spa, and Claremont Resort and Spa. James H.M. Sprayregen, P.C., Esq., Paul M. Basta, Esq., Edward O. Sassower, Esq., and Chad J. Husnick, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' bankruptcy counsel. Houlihan Lokey Capital, Inc., is the Debtors' financial advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The five resorts had $2.2 billion in assets and $1.9 billion in debt as of Nov. 30, 2010, according to court filings. In its schedules, debtor MSR Resort disclosed $59,399,666 in total assets and $1,013,213,968 in total liabilities. The resorts have agreement with lenders allowing the companies to remain in Chapter 11 at least until September 2012. The Official Committee of Unsecured Creditors is represented by Martin G. Bunin, Esq., and Craig E. Freeman, Esq., at Alston & Bird LLP, in New York. MUSCLEPHARM CORP: Amends 2011 Reports Due to Accounting Errors -------------------------------------------------------------- MusclePharm Corporation's independent registered public accounting firm and the Company's board of directors determined, after consultation with Company management, that the 2011 financial statements contained misstatements. On July 2, 2012, MusclePharm restated: (i) the Company's audited financial statements for the year ended Dec. 31, 2011, a copy of the amendment is available for free at http://is.gd/JDe2vP (ii) the Company's unaudited financial statements for the period ended Sept. 30, 2011, a copy of the amendment is available for free at http://is.gd/a57phO (iii) the Company's unaudited financial statements for the period ended June 30, 2011, a copy of the amendment is available for free at http://is.gd/cNUZLc (iv) the Company's unaudited financial statements for the period ended March 31, 2011, a copy of the amendment is available for free at http://is.gd/GAQkqP The Company's restated statement of operations reflects a net loss of $23.28 million on $17.21 million of net sales for the year ended Dec. 31, 2011, compared with a net loss of $19.56 million on $3.20 million of net sales during the prior year. The Company originally reported a net loss of $23.28 million on $20.83 million of net sales in 2011, compared with a net loss of $19.56 million on $4.04 million of net sales in 2010. The Company's balance sheet at Dec. 31, 2011, showed $5.04 million in total assets, $18.01 million in total liabilities and a $12.97 million total stockholders' deficit. The restatement was a result of an error in accounting for the Company's calculation of net sales and presentation of general and administrative expenses. The Company has determined that advertising related credits that were granted to customers fell within the guidance of ASC No. 605-50-55. The Company previously deducted certain credits and promotions as general and administrative expenses. After a thorough analysis and review, the Company has determined to net any credits and promotions directly against gross sales instead of classifying the same amounts as an advertising expense. Because this accounting change is a reclassification of expenses in the Company's Consolidated Statements of Operations, the Company's net loss will not be affected by the restatement, nor does the restatement affect the net loss amounts reported in its unaudited quarterly financial statements during 2011 or audited Consolidated Balance Sheets at Dec. 31, 2011, and De.c 31, 2010, or Consolidated Statement of Equity at Dec. 31, 2011, and Dec. 31, 2010, or Consolidated Statements of Cash Flows for the year ended Dec. 31, 2011, and Dec. 31, 2010. About MusclePharm Headquartered in Denver, Colorado, MusclePharm Corporation (OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life- style company that develops and manufactures a full line of National Science Foundation approved nutritional supplements that are 100% free of banned substances. MusclePharm is sold in over 120 countries and available in over 5,000 U.S. retail outlets, including GNC and Vitamin Shoppe. MusclePharm products are also sold in over 100 online stores, including bodybuilding.com, Amazon.com and Vitacost.com. For the year ended Dec. 31, 2011, Berman & Company, P.A., in Boca Raton, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has a net loss of $23,280,950 and net cash used in operations of $5,801,761 for the year ended Dec. 31, 2011; and has a working capital deficit of $13,693,267, and a stockholders' deficit of $12,971,212 at Dec. 31, 2011. The Company's balance sheet at March 31, 2012, showed $7.55 million in total assets, $24.76 million in total liabilities, and a $17.21 million total stockholders' deficit. NEBRASKA BOOK: Emerges From Chapter 11 Bankruptcy Protection ------------------------------------------------------------ Richard Piersol at Lincoln Journal Star reports that Nebraska Book Co. Inc. has emerged from Chapter 11 bankruptcy, smaller, less debt-ridden and under new ownership, but with a commitment to renew aggressive growth in the tough and changing world of college retailing. "We were just a highly leveraged company," the report quotes Steven Clemente, new president and chief operating officer as saying. Mr. Clemente was recently a senior vice president at the College Store Division's Neebo brand. Mr. Clemente has been with the company since early 2010. The restructuring had little effect on local operations, which employ 400 to 500 people, depending on the season, he said. According to the report, Nebraska Book emerged from the planned restructuring under new ownership. Gone is Weston Presidio, the West Coast company that had the biggest stake since 2004. The report notes the largest shareholder now is Mast Capital of Boston, with more than 15 other stakeholders. The report relates the restructuring reduced debt by about $270 million, to about $100 million, the company said, and will now be completely privately held. Under the previous regime, debt was registered with federal security regulators and financial reporting was public. Whether that reporting changes will depend on a new and expanded board of directors. Nebraska Book filed together with its bankruptcy petition a pre- packaged Chapter 11 plan that would have swapped some of the existing debt for new debt, cash and the new stock. It failed to confirm that plan due to an inability to secure $250 million in exit financing. About Nebraska Book Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. Lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the Petition Date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. The Official Committee of Unsecured Creditors selected Lowenstein Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow Financial Inc. as financial advisers. NEBRASKA BOOK: Neebo Issues $100 Million Senior Secured Notes ------------------------------------------------------------- In connection with the emergence from bankruptcy of Nebraska Book Company, Inc., and certain of its affiliates in accordance with its plan of reorganization, Neebo, Inc., a Delaware corporation formed pursuant to the Plan, issued $100.0 million aggregate principal amount of its 15.0% Senior Secured Notes due 2016 under an indenture, dated as of June 29, 2012, between the Company, the guarantors party thereto and Wilmington Trust, National Association, as trustee, and collateral agent. The Notes will mature on June 30, 2016. At maturity, the Company is obligated to pay the outstanding principal amount of the Notes plus 5.0% of such amount. The Company will pay interest on the Notes on March 31 and September 30 of each year, commencing on Sept. 30, 2012. Interest on the Notes will accrue at a rate of 15.0% per annum. The terms of the Indenture, among other things, limit the ability of the Company and certain of its subsidiaries to: make restricted payments; restrict dividends or other payments of subsidiaries; incur additional debt; sell its assets; engage in transactions with affiliates; create liens on assets; and consolidate, merge or transfer all or substantially all of its assets and the assets of its subsidiaries. The indenture also provides for a financial maintenance covenant based on the Company's consolidated net leverage ratio. The Indenture provides for customary events of default which include, among others: nonpayment of principal or interest; breach of other agreements in the Indenture; defaults in failure to pay certain other indebtedness; the rendering of judgments to pay certain amounts of money against the Company and its subsidiaries; the failure of certain guarantees to be enforceable; and certain events of bankruptcy or insolvency. Generally, if an event of default occurs and is not cured within the time periods specified, the Trustee or the holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately. The Notes are secured by all of the assets of the Company and Guarantors as set forth in that certain pledge and security agreement, dated as of June 29, 2012, between the Company, the Guarantors and the Collateral Trustee. A copy of the Indenture is available for free at: http://is.gd/j0uvzO About Nebraska Book Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. Lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the Petition Date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. The Official Committee of Unsecured Creditors selected Lowenstein Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow Financial Inc. as financial advisers. Nebraska Book has been unable to confirm a pre-packaged Chapter 11 plan that would have swapped some of the existing debt for new debt, cash and the new stock, due to an inability to secure $250 million in exit financing. As reported by the TCR on July 4, 2012, NBC Acquisition and its subsidiaries, successfully completed their restructuring and have emerged from Chapter 11. NEBRASKA BOOK: Suspending Filing of Reports with SEC ---------------------------------------------------- NBC Acquisition Corp. filed a Form 15 notifying of its suspension of its duty under Section 15(d) to file reports required by Section 13(a) of the Securities Exchange Act of 1934 with respect to its 11% Senior Discount Notes due 2013. There was no holder of the Discount Notes as of July 2, 2012. About Nebraska Book Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. Lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the Petition Date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. The Official Committee of Unsecured Creditors selected Lowenstein Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow Financial Inc. as financial advisers. Nebraska Book has been unable to confirm a pre-packaged Chapter 11 plan that would have swapped some of the existing debt for new debt, cash and the new stock, due to an inability to secure $250 million in exit financing. As reported by the TCR on July 4, 2012, NBC Acquisition and its subsidiaries, successfully completed their restructuring and have emerged from Chapter 11. NET ELEMENT: Unit Borrows US$4.5 Million from Green Venture ----------------------------------------------------------- OOO Net Element Russia, a subsidiary of Net Element, Inc., entered into a Loan Agreement with Green Venture Group, LLC. Pursuant to the Loan Agreement, GVG agreed to loan to Net Element Russia 150 million Russian rubles (or approximately US$4,557,885 based on the currency exchange rate as of the close of business on June 26, 2012). The loan is unsecured and must be funded within five business days from June 26, 2012. The loan is intended to be used by Net Element Russia for working capital and the development of the business of OOO TOT Money, which is a subsidiary of Net Element, Inc., that was recently formed to adapt the existing revenue sharing platform used in Openfilm.com to a mobile commerce payment processing platform. The interest rate under the Loan Agreement is 8.15% per annum and outstanding principal and interest is due on or before Nov. 1, 2012. The loan may be pre-paid at any time without penalty or charge. Under the Loan Agreement, the required repayment date of the loan may be accelerated if an event of default occurs under the terms of the Loan Agreement, including if certain bankruptcy, receiver, insolvency or dissolution events occur with respect to Net Element Russia or if Net Element Russia fails to timely pay principal or interest under the Loan Agreement and that failure continues for 60 business days from the date of receipt of written notice of such failure from GVG. GVG is owned and controlled by Mike Zoi, a director and Chief Executive Officer of Net Element, Inc. About Net Element Miami, Fla.-based Net Element, Inc. (formerly TOT Energy, Inc.) currently operates several online media websites in the film, auto racing and emerging music talent markets. Following the 2011 results, Daszkal Bolton LLP, in Fort Lauderdale, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has experienced recurring losses and has an accumulated deficit and stockholders' deficiency at Dec. 31, 2011. The Company reported a net loss of $24.85 million in 2011, compared with a net loss of $3.10 million in 2010. The Company's balance sheet at March 31, 2012, showed $2.34 million in total assets, $6.83 million in total liabilities, and a $4.49 million total stockholders' deficit. NEWPAGE CORP: Rebuffs Verso Paper's Overtures in Bankruptcy Deal ---------------------------------------------------------------- Peg Brickley at Dow Jones' Daily Bankruptcy Review reports that Verso Paper Corp. isn't saying whether it will take "no" for an answer permanently from NewPage Corp., the beaten-down rival that Verso is attempting to engage in merger talks. About NewPage Corp. Headquartered in Miamisburg, Ohio, NewPage Corporation was the leading producer of printing and specialty papers in North America, based on production capacity, with $3.6 billion in net sales for the year ended Dec. 31, 2010. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. NewPage Group, NewPage Holding, NewPage, and certain of their U.S. subsidiaries commenced Chapter 11 voluntary cases (Bankr. D. Del. Case Nos. 11-12804 through 11-12817) on Sept. 7, 2011. Its subsidiary, Consolidated Water Power Company, is not a part of the Chapter 11 proceedings. Separately, on Sept. 6, 2011, its Canadian subsidiary, NewPage Port Hawkesbury Corp., brought a motion before the Supreme Court of Nova Scotia to commence proceedings to seek creditor protection under the Companies' Creditors Arrangement Act of Canada. NPPH is under the jurisdiction of the Canadian court and the court- appointed Monitor, Ernst & Young in the CCAA Proceedings. Initial orders were issued by the Supreme Court of Nova Scotia on Sept. 9, 2011 commencing the CCAA Proceedings and approving a settlement and transition agreement transferring certain current assets to NewPage against a settlement payment of $25 million and in exchange for being relieved of all liability associated with NPPH. On Sept. 16, 2011, production ceased at NPPH. Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M. Abelson, Esq., Dewey & LeBoeuf LLP, in New York, serve as counsel in the Chapter 11 case. Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serves as co- counsel. Lazard Freres & Co. LLC is the investment banker, and FTI Consulting Inc. is the financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. In its balance sheet, the Debtors disclosed $3.4 billion in assets and $4.2 billion in total liabilities as of June 30, 2011. The Official Committee of Unsecured Creditors selected Paul Hastings LLP as its bankruptcy counsel and Young Conaway Stargatt & Taylor, LLP to act as its Delaware and conflicts counsel. NewPage prevailed over most objections from the official creditors' committee and won agreement from the bankruptcy judge on final approval of $600 million in secured financing. Moody's Investors Service assigned a Ba2 rating to the $350 million first-out revolving debtor-in-possession credit facility and a B2 rating to the $250 million second-out debtor-in- possession term loan for NewPage. NORAM RESOURCES: D&O Negligence Claims Belong to Bankruptcy Estate ------------------------------------------------------------------ William G. West, chapter 7 Trustee for the estates of Ausam Energy Corp. and Noram Resources, Inc., sued Frederick E. Peterson, Richard T. Aab, Brian E. Bro, Kinloch Rice Field LLC, and the William Carey Crane, Jr. Trust for turnover of property of the estate, damages and losses for violation of the automatic stay, and legal fees and expenses. The Defendants filed two separate state court lawsuits against former Ausam directors and officers, asserting claims for negligence and negligent misrepresentation. Messrs. Peterson and Aab's lawsuit settled, and Messrs. Peterson and Aab were paid from the proceeds of an executive and organizational liability insurance policy allegedly owned by the Ausam/Noram estates. Kinloch and the Crane Trust's lawsuit is still pending. The Chapter 7 Trustee asserts that the claims the Defendants brought in the state court lawsuits are property of the estate. He seeks turnover of the proceeds paid to Messrs. Peterson and Aab, and an injunction against Kinloch and the Crane Trust. The Defendants move for summary judgment, arguing that as a matter of law, the claims are not property of the estate. The Chapter 7 Trustee moves for a determination of property of the estate. On Monday, Bankruptcy Judge Marvin Isgur granted, in part, and denied, in part, both the Defendants' motion for summary judgment and the Chapter 7 Trustee's motion. He noted that the Defendants' state court petitions allege direct damages to the Defendants as a result of the Ausam directors' negligent misrepresentations. However, the Defendants also allege damages that are derivative of damages to Ausam. The Court said the negligence claims for injury to Ausam belong to the estate and may be asserted only by the Trustee. Judge Isgur clarified he's not ruling on the ownership of the insurance proceeds used to settle the Peterson lawsuit. It is premature to rule on the ownership of the proceeds. The case is WILLIAM G. WEST, Plaintiff(s), v. FREDERICK E. PETERSON, et al, Defendant(s), Adv. Proc. No. 11-3598 (Bankr. S.D. Tex.). A copy of Judge Isgur's July 2, 2012 Memorandum Opinion is available at http://is.gd/9Swsl8from Leagle.com. About Ausam Energy and Noram Resources Ausam Energy Corp. and Noram Resources Inc. filed chapter 11 bankruptcy petitions (Bankr. S.D. Tex. Case Nos. 08-38222 and 08-38223) on Dec. 30, 2008. Ausam and Noram were oil and gas companies incorporated under the law of Alberta, Canada. Noram was a subsidiary of Ausam. Ausam/Noram's major secured creditor was Huff Energy Fund, L.P. Ausam/Noram executed a $25,000,000 Senior Secured Convertible Debenture in favor of Huff. Under the terms of the Debenture, Ausam/Noram was limited in its ability to issue shares. Ausam nonetheless issued shares and warrants on Oct. 24, 2008, which triggered a default under the Debenture. The cases were converted to chapter 7 cases on Feb. 26, 2009. William West was appointed chapter 7 trustee on Feb. 27, 2009. NORTH LAS VEGAS: Declares Emergency to Cut Labor Costs ------------------------------------------------------ Kelly Nolan at Dow Jones' DBR Small Cap reports that North Las Vegas is taking an unusual approach to combat growing labor costs, which consume more than 80% of its budget: The Nevada city has declared a state of emergency and suspended some terms of its contracts with unions for the fiscal year starting July 1. NORTHSTAR AEROSPACE: Court Approves Asset Sale to Heligear ---------------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court approved Northstar Aerospace's motion for approval of an asset purchase agreement for the sale of substantially all of the Debtors' assets and the assets of the Canadian vendors to Heligear Acquisition Co. and Heligear Canada Acquisition Corporation for a total of $70 million or highest bidder at auction. If needed, the Court scheduled a July 17, 2012 auction. About Northstar Aerospace Chicago, Illinois-based Northstar Aerospace -- http://www.nsaero.com/-- is an independent manufacturer of flight critical gears and transmissions. With operating subsidiaries in the United States and Canada, Northstar produces helicopter gears and transmissions, accessory gearbox assemblies, rotorcraft drive systems and other machined and fabricated parts. It also provides maintenance, repair and overhaul of components and transmissions. Its plants are located in Chicago, Illinois; Phoenix, Arizona and Milton and Windsor, Ontario. Northstar employs over 700 people across its operations. Northstar Aerospace, along with affiliates, filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-11817) in Wilmington, Delaware, on June 14, 2012, to sell its business to affiliates of Wynnchurch Capital, Ltd., absent higher and better offers. Attorneys at SNR Denton US LLP and Bayard, P.A. serve as counsel to the Debtors. The Debtors have obtained approval to hire Logan & Co. Inc. as the claims and notice agent. Certain Canadian affiliates are also seeking protection pursuant to the Companies' Creditors Arrangement Act, R.S.C.1985, c. C-36, as amended. As of March 31, 2012, Northstar disclosed total assets of $165.1 million and total liabilities of $147.1 million. Approximately 60% of the assets and business are with the U.S. debtors. NORTHWEST ATLANTA: Case Summary & 10 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Northwest Atlanta Vest, LLC 6111 Peachtree Dunwoody Road Suite 102B Atlanta, GA 30318 Bankruptcy Case No.: 12-66726 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: John A. Christy, Esq. SCHREEDER, WHEELER & FLINT, LLP 1100 Peachtree Street, Suite 800 Atlanta, GA 30309-4516 Tel: (404) 681-3450 Fax: (404) 681 1046 E-mail: jchristy@swfllp.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 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb12-66726.pdf The petition was signed by Stanley R. Bullington, manager. NPS PHARMACEUTICALS: Inks 5th Amendment to Amgen License Pact ------------------------------------------------------------- NPS Pharmaceuticals, Inc., entered into a Fifth Amendment to the Development and License Agreement, effective as of Dec. 27, 1995, Amgen Inc. Cinacalcet Royalty Sub LLC, the Company's wholly-owned subsidiary and owner of the Sensipar/Mimpara royalty rights, consented to the Amendment. Under the revised agreement, NPS will receive a one-time $25 million payment in July 2012 in exchange for its rights to receive royalties under the license agreement that are earned after Dec. 31, 2018. The amendment also limits the royalty offset of the royalty advance that NPS received from Amgen in August 2011 to $8 million per quarter with royalties in excess of $8 million paid to NPS for the respective quarter, thereby extending the royalty advance repayment period. After the repayment of the royalty advance and a 9 percent per annum discount factor on the outstanding balance, Amgen will resume paying NPS all royalties earned through Dec. 31, 2018. As of June 30, 2012, NPS owed Amgen a balance of $92 million on the royalty advance. "This agreement significantly accelerates our cash flow with at least $75 million of incremental cash expected through 2013," said Luke M. Beshar, executive vice president and chief financial officer. "These funds are expected to fully support the cash requirements to launch both Gattex and Natpara, and represent a critical step in our transition to a self-sustaining commercial- stage organization. This innovative transaction underscores our commitment to accessing capital at the lowest possible cost and in a manner that is in the best interests of our shareholders." About NPS Pharmaceuticals Based in Bedminster, New Jersey, NPS Pharmaceuticals Inc. (Nasdaq: NPSP) -- http://www.npsp.com/-- is developing new treatment options for patients with rare gastrointestinal and endocrine disorders. NPS reported a net loss of $36.26 million in 2011, a net loss of $31.44 million in 2010 and a net loss of $17.86 million in 2009. The Company's balance sheet at March 31, 2012, showed $183.32 million in total assets, $237.70 million in total liabilities and a $54.38 million total stockholders' deficit. OCEANSIDE YACHT CLUB: Files for Chapter 11 in Wilson ---------------------------------------------------- Morehead City, North Carolina-based Oceanside Yacht Club Development, Inc., filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 12-04824) on July 2, 2012. The Debtor owns lots in Atlantic Beach, Pine Knoll Shores, and Morehead City, and condominium units at Morgan Creek Landing and The Shores at Spooners Creek in Morehead City. The Debtor scheduled total assets of $23.98 million and total liabilities of $30.23 million as of the Chapter 11 filing. Branch Banking & Trust is owed $27.5 million, of which $22.48 million is secured. According to the case docket, the meeting of creditors is scheduled for Aug. 6, 2012 at 10:00 a.m. The last day to file a complaint is Oct. 5. Proofs of claim are due Nov. 5. Government entities are required to submit their claims by Dec. 31. The Debtor is required to submit a Chapter 11 plan and disclosure statement by Oct. 1. A status hearing is scheduled for Aug. 6. Trawick H Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., in New Bern, serves as counsel. PANAM INVESTMENT: Case Summary & 5 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Panam Investment, Inc. 164 North Point Way Acworth, GA 30102 Bankruptcy Case No.: 12-66557 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Judge: James R. Sacca Debtor's Counsel: Bryan M. Knight, Esq. KNIGHT & JOHNSON LLC 1360 Peachtree Street, Suite 1201 Atlanta, GA 30309 Tel: (404) 228-4822 Estimated Assets: $100,001 to $1,000,000 Estimated Debts: $1,000,001 to $100,000,000 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/ganb12-66557.pdf The petition was signed by Deval Patel, secretary. PATIENT SAFETY: Files Form S-1, Registers 2.5MM Common Shares ------------------------------------------------------------- Patient Safety Technologies, Inc., filed with the U.S. Securities and Exchange Commission a Form S-1 relating to the offering by Kinderhook Partners, L.P., Wayne Lin, JMR Capital Limited, David Spiegel, and Neil Danics of up to 2,499,998 shares of common stock, par value $0.33 per share. The proposed maximum offering price is $4.24 million. The Company will not receive any proceeds from the sale of common stock by the selling stockholders. The Company's common stock is quoted on the OTC Bulletin Board under the symbol "PSTX." On June 26, 2012, the closing price of the Company's common stock was $1.70 per share. A copy of the prospectus is available for free at: http://is.gd/OKtbMZ About Patient Safety Technologies Patient Safety Technologies, Inc. (OTC: PSTX) -- http://www.surgicountmedical.com/-- through its wholly owned operating subsidiary SurgiCount Medical, Inc., provides the Safety-Sponge(TM) System, a system designed to improve the standard of patient care and reduce health care costs by preventing the occurrence of surgical sponges and other retained foreign objects from being left inside patients after surgery. RFOs are among one of the most common surgical errors. The Company's balance sheet at March 31, 2012, showed $13.99 million in total assets, $5.09 million in total liabilities, all current, and $8.90 million in total stockholders' equity. Patient Safety reported a net loss of $1.89 million in 2011, compared with net income of $2 million during the prior year. PEACHTREE INDUSTRIAL: Case Summary & 5 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Peachtree Industrial Vest, LLC 6111 Peachtree Dunwoody Road Suite B102 Atlanta, GA 30328 Bankruptcy Case No.: 12-66735 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: John A. Christy, Esq. SCHREEDER, WHEELER & FLINT, LLP 1100 Peachtree Street, Suite 800 Atlanta, GA 30309-4516 Tel: (404) 681-3450 Fax: (404) 681 1046 E-mail: jchristy@swfllp.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 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb12-66735.pdf The petition was signed by Stanley R. Bullington, manager. PENN CAMERA: Deadline to Challenge Cannon, Nikon Claims Extended ---------------------------------------------------------------- Bankruptcy Judge Paul Mannes approved a stipulation and consent order that further extends to August 30, 2012, the deadline for Penn Camera Exchange, Inc., to file objections to reclamation claims under 11 U.S.C. Sec. 503(B)(9) of Canon U.S.A., Inc. and Nikon Inc. Canon submitted a Section 503(b)(9) claim of $551,587. Nikon submitted a Section 503(b)(9) claim of $445,795. A copy of the July 2, 2012 Stipulation is available at http://is.gd/Xw3EdA from Leagle.com. About Penn Camera Exchange Founded in 1953, Penn Camera Exchange, Inc. -- http://www.penncameras.com/-- was known for its wide selection of photography equipment, classes and technicians. Based in Beltsville, Maryland, Penn Camera filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No. 12-10113) on Jan. 4, 2012. Judge Paul Mannes presides over the case. Nelson C. Cohen, Esq., at Zuckerman Spaeder LLP, serves as the Debtor's counsel. Penn Camera scheduled assets of $4,050,487 and liabilities of $4,402,910. The petition was signed by Jeffrey Zweig, president. On Jan. 9, 2012, the United States Trustee appointed an official committee of unsecured creditors. Michael J. Lichtenstein, Esq., at Shulman, Rodgers, Gandal, Pordy & Ecker, P.A., represents the Committee. Penn Camera closed five of its stores around Washington before the Chapter 11 filing. It sold the inventory in the remaining three stores in bankruptcy court-sanctioned going-out-of-business sales ran by Great American Group. The agreement called for Great American to receive a fee of 5% of gross inventory sales and 25% of fixtures. Calumet Photographic Inc. assumed the assets and leases for the three locations for $600,000. Calumet would continue to operate under the Penn Camera banner. The purchase price includes $250,000 in cash at closing and a $350,000 promissory note due in six months. The buyer has also assumed up to $100,000 of gift card liability. PROELITE INC: Jerry Rubinstein Named Board Chairman and CEO ----------------------------------------------------------- Jerry Rubinstein was elected by the board of directors of ProElite, Inc., as Chairman of the Board and Chief Executive Officer effective June 28, 2012. Also effective June 28, 2012, Paul Feller resigned as the Chairman of the Board, Chief Executive Officer and a director of the Company. About ProElite Inc. Los Angeles, Calif.-based ProElite, Inc., is a holding company for entities that (a) organize and promote mixed martial arts matches, and (b) create an internet community for martial arts enthusiasts and practitioners. On Oct. 20, 2008, management, with Board ratification, decided to close or sell all operations and began an extended period of restructuring its balance sheet, divesting itself of certain assets, settlement of contingent liabilities, and attempting to raise additional capital. Effective Oct. 12, 2009, the Company entered into a Strategic Investment Agreement with Stratus Media Group, Inc. ("SMGI") pursuant to which the Company agreed to sell to SMGI, shares of the Company's Series A Preferred Stock (the "Preferred Shares"). The Preferred Shares are convertible into the Common Stock of the Company. This transaction closed on June 14, 2011. Gumbiner Savett Inc., in Santa Monica, Calif., expressed substantial doubt about ProElite's ability to continue as a going concern, following its audit of the Company's financial statements as of and for the years ended Dec. 31, 2008, and 2007. The independent auditors noted that the Company has suffered losses from operations and negative cash flows from operations. The Company reported a net loss of $55.6 million for the fiscal year ended Dec. 31, 2008, compared with a net loss of $27.1 million for the fiscal year ended Dec. 31, 2007. As a result of the decision to discontinue operations, the Company did not have any revenues, cost of revenue, and gross profit for the fiscal years ended Dec. 31, 2008, and 2007. At Dec. 31, 2008, the Company's balance sheet showed $2.3 million in total assets, $11.8 million in total liabilities, and a shareholders' deficit of $9.5 million. ProElite notified the U.S. Securities and Exchange Commission that it requires additional time to complete the financial statements for the fiscal quarter ended Sept. 30, 2011, and cannot, without unreasonable effort and expense, file its Form 10- Q on or before the prescribed filing date. The Company expects to obtain all required data and complete the financial statements within the next several days and, as a result, expects to file the Form 10-Q within five days after the prescribed filing date. PUBLIC BROADCASTING: Moody's Withdraws 'Ba1' Bond Rating -------------------------------------------------------- Moody's Investors Service has withdrawn the Ba1 rating on Public Broadcasting of Colorado, Inc.'s (DBA Colorado Public Radio) ("CPR") $3.8 million of Series 2002 bonds issued by the Colorado Educational and Cultural Facilities Authority. The rating withdrawal follows the redemption of these bonds on July 1, 2012. At this time, CPR no longer maintains any debt outstanding with a Moody's rating based on its credit quality. Withdrawal Reason Moody's has withdrawn the rating because the bonds have been redeemed. RADIENT PHARMACEUTICALS: Operations Minimal, Warns Bankruptcy ------------------------------------------------------------- Radient Pharmaceuticals Corporation filed on June 29, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. KMJ Corbin & Company LLP, in Costa Mesa, California, expressed substantial doubt about Radient's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses, had negative cash flows from operations in 2011 and 2010, and has a working capital deficit of approximately $49.8 million at Dec. 31, 2011. The Company reported a net loss of $86.19 million on $313,559 of revenues in 2011, compared with a net loss of $85.71 million o $231,662 of revenues in 2010. For the year ended Dec. 31, 2011, the Company's loss from operations was $86.19 million compared to the year ended Dec. 31, 2010, when the Company's loss from operations was $85.71 million. The Company's balance sheet at Dec. 31, 2011, showed $1.18 million in total assets, $50.87 million in total current liabilities, and a stockholders' deficit of $49.69 million. May Seek Protection Under U.S. Bankruptcy Laws "As a result of our working capital deficiencies, we have recently laid off a substantial portion of our work force and are currently operating on a minimal basis with only two employees and three former employee consultants," the Company said in the filing. "The current focus of our operations is to ensure that our existing Onko-Sure(R) customers and any future customers are able to place orders and receive kits on a timely basis. We have an Onko-Sure(R) production continuity arrangement in place with one vendor. At the current time, the Company believes that it does not require any additional staff to perform this limited manufacturing, quality control and selling process." "The Company appointed a committee of three independent directors to assess available options open to the Company to enable us to continue operations. Due to the shortage of working capital, we were unable to pay premiums associated with our Directors and Officers insurance. As a consequence, on June 25, 2012, we were informed by two members of our Board of Directors of their resignation. As a result, we have only one independent Director serving on our Board at this time. Although our remaining sales team continues to work towards completing pending and future sales of our Onko-Sure(R) test kit, if these sales are not completed and we do not otherwise raise additional funds in the immediate future, it is likely that we will be forced to cease all operations and might seek protection from our creditors under the United States bankruptcy laws. A copy of the Form 10-K is available for free at: http://is.gd/vJHooI Tustin, Calif.-based Radient Pharmaceuticals Corporation is engaged in the research, development, manufacturing, sale and marketing of its Onko-Sure(R) test kit, which is a proprietary in- vitro diagnostic (or IVD) cancer test. The Company markets its Onko-Sure(R) test kits in the United States, Canada, Chile, Europe, India, Korea, Japan, Taiwan, Vietnam and other markets throughout the world. RESIDENTIAL CAPITAL: Proposes FTI as Financial Advisor ------------------------------------------------------ Residential Capital, LLC and its debtor affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to employ FTI Consulting, Inc., as their financial advisor, nunc pro tunc to May 14, 2012. As financial advisor, FTI will assist with the preparation of financial related disclosures required by the Court, and assist the Debtors with certain aspects of claims management and resolution, among other things. FTI's proposed compensation will be a monthly fixed fee of $1,750,000 per month until the later of March 31, 2013, or the sale of substantially all of the Debtors' assets. After that time, FTI will be paid a monthly fixed fee of $1,250,000 until the effective date of a Chapter 11 plan of reorganization or liquidation, plus reimbursement of actual and necessary expenses. FTI will also be paid a completion fee of $4,300,000. During the 90-day period prior to the Debtors' Petition Date, FTI received $7,241,578 from the Debtors for professional services performed and expenses incurred. Prior to the Petition Date, FTI received retainers totaling $1,350,000. FTI will apply the remaining amount of its prepetition Retainer as a credit towards postpetition fees and expenses, after the postpetition fees and expenses are approved. William J. Nolan, FTI's Senior Managing Director, assures the Court that FTI is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. A hearing on the application will be held on July 13, 2012. Objections are due on July 6. About ResCap Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities as of March 31, 2012. ResCap is selling its mortgage origination and servicing businesses to Nationstar Mortgage LLC, and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets, to Ally Financial. Together, the asset sales are expected to generate approximately $4 billion in proceeds. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RESIDENTIAL CAPITAL: Hiring Centerview as Investment Banker ----------------------------------------------------------- Residential Capital LLC and its affiliates seek the Court's authority to employ Centerview Partners LLC as their investment banker. On October 18, 2011, prior to the Petition Date, the Debtors engaged Centerview to provide general restructuring advice in connection with the Debtors' attempts to complete a strategic restructuring, reorganization, recapitalization and/or M&A transaction and, if necessary, to prepare for the Debtors' commencement of chapter 11 cases. The Debtors want Centerview to continue to advise them in a variety of matters, including, as reasonably requested: (a) reviewing and analyzing the Debtors' business, operations, and financial projections; (b) evaluating the Debtors' potential debt capacity in light of its projected cash flows; (c) assisting in the determination of a capital structure for the Debtors; (d) assisting in the determination of a range of estimated values for the Debtors on a going concern basis; (e) advising the Debtors on tactics and strategies for negotiating with the Stakeholders; (f) rendering financial advice to the Debtors and participating in meetings or negotiations with the Stakeholders and/or rating agencies or other appropriate parties in connection with any Restructuring; (g) advising the Debtors on the timing, nature, and terms of new securities, other consideration or other inducements to be offered pursuant to a Restructuring; (h) advising and assisting the Debtors in evaluating potential Financing transactions by the Debtors, and, subject to Centerview's agreement to so act and the execution of appropriate agreements, contacting potential sources of capital as the Debtors may designate and assisting the Debtors in implementing such a Financing; (i) assisting the Debtors in preparing documentation within Centerview's area of expertise that is required in connection with a Restructuring; (j) assisting the Debtors in identifying and evaluating candidates for a potential Sale Transaction6, advising the Debtors in connection with negotiations and aiding in the consummation of one or more Sale Transactions; (k) attending meetings of the Debtors' Board of Directors and its committees with respect to matters on which Centerview has been engaged to advise the Debtors; (l) providing testimony, as necessary, with respect to matters on which Centerview has been engaged to advise the Debtors in any proceeding before the Bankruptcy Court; and (m) providing (but only to the extent permitted by further orders of the Court) the Debtors with other financial restructuring advice as may be specifically agreed upon in writing by the Debtors and Centerview. The Debtors propose to pay Centerview: (a) A monthly financial advisory fee of $300,000, payable on the first day of each month through the conclusion of the engagement; provided, that 50% of Monthly Advisory Fees paid subsequent to the Petition Date shall be credited against a Transaction Fee; provided further, that such credit will only apply proportionately to the extent that such fees are approved by the Bankruptcy Court. (b) A fee of $12,500,000, payable upon the consummation of a Restructuring or Sale Transaction that is consummated in Bankruptcy Court (the "Transaction Fee"); provided; that with respect to any Restructuring or Sale Transaction that is intended to be effected, in whole or in part, as a sale pursuant to Bankruptcy Code section 363 with a stalking horse bidder, or as a prepackaged, partial prepackaged, or prearranged plan of reorganization, which plan may include a Sale Transaction, the Transaction Fee shall be earned and payable (i) 50% upon, in the case of a sale pursuant to Bankruptcy Code section 363, execution of a stalking horse asset purchase agreement, or, in the case of a Prearranged Plan, upon obtaining indications of support from certain of the Company's key creditors that in the good faith judgment of the Board of Directors of the Company are sufficient to justify filing such Prearranged Plan, and (ii) 50% upon consummation of such Restructuring or Sale Transaction. (c) If the Debtors consummate any Financing, the Debtors will pay Centerview: (i) 1.0% of the aggregate amount of any indebtedness issued that is secured by a first lien; (ii) 3.0% of the aggregate amount of any indebtedness issued that (x) is secured by a second or junior lien, (y) is unsecured and/or (z) is subordinated; (iii) 5.0% of the aggregate amount of any equity or equity-linked securities or obligations issued; and (iv) 0.5% of the aggregate amount of any debtor-in- possession financing issued, plus 1.0% of the aggregate amount of any debtor-in-possession financing issued by new lenders, not to exceed $5,000,000 in the aggregate. Any fee(s) paid under subparagraphs (c)(i), (ii) or (iii) shall be 50% credited (but only once) against a Transaction Fee subsequently paid under paragraph (b). Any fee in excess of $500,000 paid out under subparagraph (c)(iv) shall be 50% credited against a Transaction Fee subsequently paid under paragraph (b). (d) If at any time during the term of Centerview's engagement or within the nine full months following the termination of the engagement the Debtors (i) receive a letter of intent to purchase all or substantially all of the Debtors' assets or (ii) receive a debtor-in-possession financing proposal, in either case, satisfactory to the Debtors, Centerview shall be due and paid a transaction fee equal to $1,200,000 (the "Interim Transaction Fee"). (e) In addition to any fees that may be payable to Centerview and, regardless of whether any transaction occurs, the Debtors shall promptly reimburse Centerview for all: (A) reasonable documented production charges and out-of-pocket expenses (including travel and lodging, data processing and communications charges, courier services and other appropriate expenditures) and (B) other reasonably incurred fees and expenses, including expenses of counsel if engaged with the prior approval of the Debtors, which approval shall not be unreasonably withheld. (f) As part of the compensation payable to Centerview, the Debtors agree to the indemnification, contribution and other provisions in the Engagement Letter. (g) For the avoidance of doubt, if both a Restructuring and a Sale Transaction occur (in separate transactions or through a single transaction that meets both the definitions), the Company will be obligated to pay only one Transaction Fee. One or more fees pursuant to paragraph (c) may be payable in addition to a Restructuring Fee (subject to crediting). Marc D. Puntus, a Partner and co-head of the Restructuring Group of Centerview Partners LLC, assures the Court that based on the firm's current knowledge of the professionals listed as Potential Parties-in-Interest in the Debtors' Chapter 11 Cases, and to the best of his knowledge, none of these business relations constitute interests adverse to the Debtors. Mr. Puntus disclosed that prior to the Petition Date, the Debtors paid Centerview an aggregate of $2,900,000 in full payment of the Monthly Advisory Fees for the months of October 2011 through May 2012 and $54,155 as reimbursement for Centerview's expenses billed through May 13, 2012. In addition, the Debtors paid Centerview $5,000,000 for the Financing Fee associated with the $1.45 billion and $150 million debtor-in-possession financings obtained by the Debtors, an Interim Transaction Fee of $1,200,000 and 50% of the Restructuring Fee ($6,250,000), all pursuant to the terms of the Engagement Letter. Centerview also received an expense retainer of $50,000. Upon the completion of the proposed sales of the Debtors' legacy loan portfolio and mortgage loan origination and servicing businesses and assets, and/or other Restructuring, Centerview will be entitled to receive the remaining 50% of the Transaction Fee ($6,250,000), which amount is subject to crediting of certain amounts pursuant to the terms of the Engagement Letter. About ResCap Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities as of March 31, 2012. ResCap is selling its mortgage origination and servicing businesses to Nationstar Mortgage LLC, and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets, to Ally Financial. Together, the asset sales are expected to generate approximately $4 billion in proceeds. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RESIDENTIAL CAPITAL: Seeks to Employ Morrison as Legal Counsel -------------------------------------------------------------- Residential Capital LLC and its affiliated debtors filed an application to employ Morrison & Foerster LLP as their bankruptcy counsel. Residential Capital hired the firm to provide legal advice with respect to its powers and duties as debtor-in-possession in the continued operation of its businesses, and advise the company in connection with the sale of its assets. The firm will also provide tax advice to the company regarding its restructuring, and represent Residential Capital in lawsuits filed by or against the company. Morrison will be paid for its services on an hourly basis and will be reimbursed for its expenses. The firm's professionals who are expected to render the services and their hourly rates are: Professionals Position Hourly Rate ------------- -------- ----------- Larren Nashelsky Bankruptcy Partner $975 Gary Lee Bankruptcy Partner $975 Lorenzo Marinuzzi Bankruptcy Partner $865 Norman Rosenbaum Bankruptcy Partner $800 Anthony Princi Bankruptcy Partner $975 Todd Goren Bankruptcy Partner $725 James Tanenbaum Capital Markets Partner $995 Jamie Levitt Litigation Partner $875 Joel Haims Litigation Partner $850 Kenneth Kohler Capital Markets Sr. of Counsel $760 Nilene Evans Capital Markets Of Counsel $760 Alexandra Barrage Bankruptcy of Counsel $695 Jordan Wishnew Bankruptcy of Counsel $680 Melissa Beck Capital Markets Associate $665 Renee Freimuth Bankruptcy Associate $665 Aaron Klein Bankruptcy Associate $665 John Pintarelli Bankruptcy Associate $655 Samantha Martin Bankruptcy Associate $595 Erica Richards Bankruptcy Associate $595 Stacy Molison Bankruptcy Associate $565 Naomi Moss Bankruptcy Associate $505 James Newton Bankruptcy Associate $445 Melissa Crespo Bankruptcy Associate $380 Laura Guido Bankruptcy Paraprofessional $280 John Kline Bankruptcy Paraprofessional $295 Larren Nashelsky, Esq., at Morrison, disclosed in a declaration that the firm does not hold or represent interest adverse to Residential Capital's estate. A court hearing to consider approval of the application is scheduled for July 13, 2012. Objections are due by July 6, 2012. About ResCap Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities as of March 31, 2012. ResCap is selling its mortgage origination and servicing businesses to Nationstar Mortgage LLC, and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets, to Ally Financial. Together, the asset sales are expected to generate approximately $4 billion in proceeds. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RESIDENTIAL CAPITAL: Taps Mallet-Prevost as Conflicts Counsel ------------------------------------------------------------- Residential Capital LLC and its affiliates seek the Court's authority to employ Curtis, Mallet-Prevost, Colt & Mosle LLP, as conflicts counsel effective as of the Petition Date. The Debtors believe the retention of Curtis will enhance the ability of Morrison & Foerster LLP as their lead counsel to represent them generally and assist them in carrying out their duties. Curtis will render professional services to the Debtors for certain discrete matters, which may include these services, in connection with matters where MoFo or other counsel to the Debtors may not be able to act as a result of an actual or potential conflict of interest: a. advise the Debtors with respect to their powers and duties as debtors-in-possession in the continued management and operation of their businesses and properties; b. attend meetings and negotiate with representatives of creditors and other parties in interest; c. take necessary action to protect and preserve the Debtors' estates, including prosecuting actions on the Debtors' behalf, defending any action commenced against the Debtors and representing the Debtors' interests in negotiations concerning litigation in which the Debtors are involved, including objections to claims filed against the estates; d. prepare motions, applications, answers, orders, appeals, reports and papers necessary to the administration of the Debtors' estates; e. take any necessary action on behalf of the Debtors to obtain approval of a disclosure statement and confirmation of one or more Chapter 11 plans; f. represent the Debtors in connection with obtaining postpetition financing, including use of cash collateral; g. advise the Debtors in connection with any potential sale of assets; h. appear before the Court, any appellate courts and the U.S. Trustee, and protect the interests of the Debtors' estates before those Courts and the U.S. Trustee; i. consult with the Debtors regarding tax matters; and j. perform all other legal services for the Debtors in connection with these cases. The Debtors will pay for Curtis' services at the firm's current hourly rates, which are: Partners $730 to $830 Counsel $510 to $625 Associates $300 to $590 Paraprofessionals $190 to $230 Managing Clerks $450 Other Support Personnel $55 to $325 The firm will also charge the Debtors reasonable expenses incurred with its contemplated services. Steven J. Reisman, Esq., a partner at Curtis, assures the Court that his firm does not hold or represent any interests adverse to the Debtors, their creditors, or any other party-in-interest, or their attorneys. Curtis is a 'disinterested person,' as that phrase is defined under Section 101(14) of the Bankruptcy Code, he asserts. About ResCap Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities as of March 31, 2012. ResCap is selling its mortgage origination and servicing businesses to Nationstar Mortgage LLC, and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets, to Ally Financial. Together, the asset sales are expected to generate approximately $4 billion in proceeds. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RG STEEL: Objects to Enviros' Exemption Claim to Ch. 11 Stay ------------------------------------------------------------ Jamie Santo at Bankruptcy Law360 reports that RG Steel LLC on Tuesday knocked environmental groups seeking an exemption from the firm's automatic stay, saying their motion misconstrues legal concepts they cite as grounds for relief. Bankruptcy Law360 relates that the objection, filed Tuesday in Delaware bankruptcy court, says environmental advocates misinterpreted the concepts of a "police power exemption" and "equitable relief" in a June 22 motion to modify RG Steel's bankruptcy stay so the groups could appeal a federal court decision limiting RG Steel's obligations to monitor contamination at its Sparrows Point, Md., mill. About RG Steel RG Steel LLC -- http://www.rg-steel.com/-- is the United States' fourth-largest flat-rolled steel producer with annual steelmaking capacity of 7.5 million tons. It was formed in March 2011 following the purchase of three steel facilities located in Sparrows Point, Maryland; Wheeling, West Virginia and Warren, Ohio, from entities related to Severstal US Holdings LLC. RG Steel also owns finishing facilities in Yorkville and Martins Ferry, Ohio. It also owns Wheeling Corrugating Company and has a 50% ownership in Mountain State Carbon and Ohio Coatings Company. RG Steel along with affiliates, including WP Steel Venture LLC, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12- 11661) on May 31, 2012, to pursue a sale of the business. The bankruptcy was precipitated by liquidity shortfall and a dispute with Mountain State Carbon, LLC, and a Severstal affiliate, that restricted the shipment of coke used in the steel production process. The Debtors estimated assets and debts in excess of $1 billion as of the Chapter 11 filing. The Debtors owe (i) $440 million, including $16.9 million in outstanding letters of credit, to senior lenders led by Wells Fargo Capital Finance, LLC, as administrative agent, (ii) $218.7 million to junior lenders, led by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million on account of a subordinated promissory note issued by majority owner The Renco Group, Inc., and (iv) $100 million on a secured promissory note issued by Severstal. Judge Kevin J. Carey presides over the case. The Debtors are represented in the case by Robert J. Dehney, Esq., and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP, and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T. Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors. Conway MacKenzie, Inc., serves as the Debtors' financial advisor and The Seaport Group serves as lead investment banker. Donald MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman Carson Consultants LLC is the claims and notice agent. Wells Fargo Capital Finance LLC, as Administrative Agent, is represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang Ziehi & Jones LLP. Renco Group is represented by lawyers at Cadwalader, Wickersham & Taft LLP. An official committee of unsecured creditors has been appointed in the case. The bankruptcy court has approved the sale of a non-operating plant in Steubenville, Ohio, for $15 million. RITZ CAMERA: Proposes GOB Sales at 59 Stores -------------------------------------------- Stephanie Gleason at Dow Jones' DBR Small Cap reports that Ritz Camera & Image LLC is closing 82 of its 265 locations and is asking the bankruptcy court's permission to hold going-out-of- business sales at 59 stores in an effort to improve its overall profitability. About Ritz Camera Beltsville, Maryland-based Ritz Camera & Image LLC -- http://www.ritzcamera.com-- sells digital cameras and accessories, and electronic products. It sought Chapter 11 protection (Bankr. D. Del. Case No. 12-11868) on June 22, 2012, to close unprofitable stores. Ritz claims to be the largest camera and image chain the U.S., operating 265 camera stores in 34 states as well as an Internet business. Ritz Camera intends to shut 128 locations and cut its staff in half. Included in the closing are 10 locations in Maryland and 4 in Virginia. Affiliate Ritz Interactive Inc., owner e-commerce Web sites that include RitzCamera.com and BoatersWorld.com, also filed for bankruptcy. RCI's predecessor, Ritz Camera Centers, Inc., sought Chapter 11 protection (Bankr. D. Del. Case No. 09-10617) on Feb. 22, 2009. Ritz generated $40 million by selling all 129 Boater's World Marine Centers. A group that included the company's chief executive officer, David Ritz, formed Ritz Camera & Image to buy at least 163 of the remaining 375 camera stores. The group paid $16.25 million in cash and a $7.8 million note. Later, Ritz sold a $4 million account receivable for $1.5 million to an owner of the company that owed the debt. In the 2009 petition, Ritz disclosed total assets of $277 million and total debts of $172.1 million. Lawyers at Cole, Schotz, Meisel, Forman & Leonard, P.A., served as bankruptcy counsel. Thomas & Libowitz, P.A., served as the Debtor's special corporate counsel and conflicts counsel. Marc S. Seinsweig, at FTI Consulting, Inc., served as the Debtor's chief restructuring officer. Kurtzman Carson Consultants LLC acted as claims and noticing agent. Attorneys at Cooley Godward Kronish LLP and Bifferato LLC represented the official committee of unsecured creditors as counsel. In April 2010, the Court approved a liquidating Chapter 11 plan proposed by the company and the official creditor's committee. Under the Plan, unsecured creditors were to recover 4% to 14% of their claims. In the 2012 petition, RCI estimated total assets and liabilities of $50 million to $100 million. The Debtors owe not less than $16.32 million for term and revolving loans provided by secured lenders led by Crystal Finance LLC, as administrative agent. Attorneys at Cole, Schotz, Meisel, Forman & Leonard, P.A., serve as bankruptcy counsel. Kurtzman Carson Consultants LLC is the claims agent. WeinsweigAdvisors LLC's Marc Weinsweig has been appointed as Ritz's CRO. Mark L. Desgrosseilliers, Esq., and Ericka F. Johnson, Esq., at Womble Carlyle Sandridge & Rice, LLP, represent liquidators Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC. Crystal Finance, the DIP lender, is represented by Morgan, Lewis & Bockius and Young Conaway Stargatt & Taylor LLP. RIVER POINT: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: River Point Golf Club, LLC 801 River Pointe Drive Albany, GA 31701 Bankruptcy Case No.: 12-10963 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Middle District of Georgia (Albany) Debtor's Counsel: Wesley J. Boyer, Esq. KATZ, FLATAU, POPSON AND BOYER, LLP 355 Cotton Avenue Macon, GA 31201 Tel: (478) 742-6481 E-mail: wjboyer_2000@yahoo.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/gamb12-10963.pdf The petition was signed by Jos Bekkers, sole member. ROYAL SEATING: School & Library Furniture Maker in Chapter 11 ------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that Royal Seating LLC, a manufacturer of school and library furniture, filed a petition for Chapter 11 reorganization. Based in Cameron, Texas, Royal has been family-owned since 1968, according to the company's Web site. Court papers state there is $3 million in unsecured debt and a $4 million disputed secured claim. Royal Seating, LLC, doing business as Uscapes and Spotlight Seating, filed a Chapter 11 petition (Bankr. W.D. TX. Case No. 12-60693) on June 28, 2012. The Debtor is represented by Larry E. Kelly, Esq., at Dickson & Squires, LLP. See http://bankrupt.com/misc/txwb12-60693.pdf The Debtor estimated assets of more than $1 billion and liabilities of up to $10 million in its Chapter 11 petition. SEP RIVERPARK: Equity Holder Proposes Competing Plan ---------------------------------------------------- Jennifer Price, the 100% equity security holder of the SEP Riverpark Plaza LLC, proposed a Plan of Reorganization for the resolution of all outstanding claims against, and equity interests in, the Debtor. The payments due under the Plan on the Effective Date will be funded from: (i) the assets of the Debtor and its Estate, which include, among other things, funds held in one or more deposit accounts; and (ii) to the extent necessary, draws to be made by the Disbursing Agent or Reorganized Debtor upon a line of credit in the amount of $3.0 million to be provided by Edward Snyder or an affiliate to be designated by him. An initial draw of $2.5 million on the Line of Credit will be placed in a trust account, prior to the confirmation hearing date, for the benefit of the Reorganized Debtor, and will be retained, subject to the occurrence of the Confirmation and Effective Dates, for purposes of Plan consummation and ongoing operations. Upon the occurrence of the Effective Date, the Reorganized Debtor will be managed by its Manager -- Macco Properties Inc. -- and its appointed officers, and thereafter according to the corporate governance provisions of the Debtor's Operating Agreement. The initial officers of reorganized Macco are expected to be Lew McGinnis and Jennifer Price. The classification and treatment of claims under the Plan: A. Class 1 (Secured Claim of FAA Credit Union) will receive on account of its Claim (i) payment of all accrued but unpaid interest through the Effective Date, at the rate(s) provided for in the subject credit facility, and (ii) payment of compensation for any damages as a result of the Creditor's reasonable reliance upon any default under the credit facility including all charges, fees, and penalties. The obligation of the Debtor to the Class 1 Creditor will mature 18 calendar months from the Effective Date. During the 18-month period, the Reorganized Debtor will make monthly payments of (i) the interest that accrues under the subject credit facility, and (ii) 1/12 of the annual ad valorem taxes owing with respect to the real property in which the Creditor has a mortgage lien interest. B. Class 2 (Secured Claim of All-America Bank) will be paid in full as provided for in the subject credit facility, with interest accrued to the date of payment at the rate(s) provided for in the subject credit facility. The Claim will be paid (i) not later than the Effective Date if Allowed by the date, or (ii) if not finally Allowed on the Effective Date, then within 10 days after the entry of a Final Order allowing the Claim. C. Class 3 (Priority Tenant Deposit Claims) will be paid in full in cash (i) on the Effective Date if Allowed by such date, or (ii) if not finally Allowed on the Effective Date, then within 10 days after the entry of a Final Order allowing the Claim. The Reorganized Debtor will maintain a tenant deposit escrow account, as required by applicable non-bankruptcy law, and pay all presently contingent and/or unmatured tenant deposit claims when due. D. Class 4 (General Unsecured Claims) will be paid in full in cash (i) on the Effective Date if Allowed by the date, or (ii) if not finally Allowed on the Effective Date, then within 10 days after the entry of a Final Order allowing the Claim. E. Class 5 (Equity Security) will continue to be held by reorganized Macco, and will not be extinguished. About SEP Riverpark Plaza Oklahoma City, Oklahoma-based SEP Riverpark Plaza, L.L.C., aka Riverpark Plaza Apartments, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-16832) on Nov. 11, 2010. According to its schedules, the Debtor disclosed $19.17 million in total assets and $12.03 million in total liabilities. On Jan. 13, 2011, Judge Sarah A. Hall authorized the Debtor's employment of Hiersche Law Firm as its bankruptcy counsel. SHENGDATECH INC: Files Amended Chapter 11 Plan ---------------------------------------------- BankruptcyData.com reports that ShengdaTech, Inc., filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan and First Amended Disclosure Statement. According to the Disclosure Statement, "The primary objectives of the Plan are to: (i) maximize the value of the ultimate recovery to all Creditors and Holders of Equity Interests on a fair and equitable basis, compared to the value they would receive if the assets of the Debtor were liquidated under chapter 7 of the Bankruptcy Code; and (ii) settle, compromise or otherwise dispose of certain Claims and Equity Interests on terms believed to be fair, reasonable and in the best interests of the Debtor, the Debtor's Creditors and its Holders of Equity Interests. The Debtor believes that through the Plan, Holders of Allowed Claims and Allowed Equity Interests will obtain a recovery at least equal to, if not better than, any recovery they would receive if the assets of the Debtor were liquidated under chapter 7 of the Bankruptcy Code." The Court has scheduled an Aug. 30, 2012, on the matter. About ShengdaTech Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano precipitated calcium carbonate for the tire industry. ShengdaTech converts limestone into nano-precipitated calcium carbonate (NPCC) using its proprietary and patent-protected technology. NPCC products are increasingly used in tires, paper, paints, building materials, and other chemical products. In addition to its broad customer base in China, the Company currently exports to Singapore, Thailand, South Korea, Malaysia, India, Latvia and Italy. ShengdaTech sought Chapter 11 bankruptcy protection from creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno, Nevada, in the United States. The Shanghai-China based company said in its bankruptcy filing it would fire all of its officers and restructure to try to recover from an accounting scandal. The Company disclosed US$295.4 million in assets and US$180.9 million in debt as of Sept. 30, 2011. The Company's legal representative in its Chapter 11 case is Greenberg Traurig, LLP. On Aug. 23, 2011, the Court entered an interim order confirming the Board of Directors Special Committee's appointment of Michael Kang as the Debtor's chief restructuring officer. Alvarez & Marsal North America, LLC, is the Company's chief restructuring officer. As reported in by the Troubled Company Reporter on Sept. 7, 2011, the United States Trustee appointed AG Ofcon, LLC, The Bank of New York, Mellon (in its role as indenture trustee for bondholders), and Zazove Associates, LLC, to serve on the Official Committee of Unsecured Creditors of ShengdaTech, Inc. Hogan Lovells US serves as counsel for ShengdaTech's official committee of unsecured creditors. The Plan provides for the wind-down of the Debtor's affairs and the Distribution of the Debtor's remaining assets to Creditors. SKINNY NUTRITIONAL: Enters Into $15 Million Financing with Trim --------------------------------------------------------------- Trim Capital LLC and Skinny Nutritional Corp. have agreed to a financing transaction involving the issuance of $9,000,000 of preferred and common stock and a $6,000,000 senior secured credit facility. At the initial closing, Skinny Nutritional sold a $1,000,000 senior secured bridge note. "The investment Trim Capital is making in Skinny Water will give the Company the capital to execute its growth plan. Having access to this capital will allow us to accelerate our marketing and brand initiatives, add new product lines under the Skinny Nutritional Corp. umbrella of Skinny trademarks and build inventory levels to satisfy the demand for our products," said Michael Salaman, CEO of Skinny Nutritional Corp. Trim Capital LLC's Managing Partner, Marc Cummins states "Skinny Water is exactly the type of investment we look for - one with the perfect combination of a solid consumer proposition, a healthy distribution system and a robust product pipeline that will continue to deliver great-tasting and healthy products to the marketplace." The financing is structured to occur in three separate closings, with each of the second and third closings subject to certain conditions. Upon the Third Closing, Trim Capital will acquire $9,000,000 of equity units consisting of shares of a newly authorized series of redeemable senior preferred stock and shares of common stock equal to 65% of the fully diluted shares of common stock of the Company. In addition, at the third closing Trim Capital will provide the Company with a $6,000,000 senior secured credit facility. At the first closing which was completed on June 28, 2012, the Company sold a $1,000,000 senior secured bridge note to Trim Capital. At the second closing, which is anticipated to occur within 45 days, Trim Capital will purchase an additional $3,000,000 of securities of the Company, consisting of a combination of an additional senior secured bridge note and equity units consisting of preferred and common stock. At the third closing, the bridge notes sold at the first and second closings will convert into equity units, and, in addition, Trim Capital will purchase $5,000,000 of additional equity units such that, after the third closing, Trim Capital will own $9,000,000 of redeemable senior preferred stock and 65% of the fully diluted shares of common stock of the Company. The second closing is subject to customary closing conditions, as well as, the negotiation of the final terms of the senior secured credit facility and the filing of a proxy statement with the Securities and Exchange Commission relating to an annual meeting of stockholders to vote on, among other things, the authorization of sufficient shares of preferred stock and common stock to issue at the third closing. The third closing is subject to customary closing conditions, as well as stockholder approval of various matters relating to the transaction. The senior preferred stock to be issued at the second closing will have no voting rights at the time of its issuance at the second closing; provided that, at the third closing, the holders of the senior preferred stock issued at the second and third closings will be entitled to elect four members of an expanded seven-member board of directors and will have certain protective provisions requiring the consent of the holders of the preferred stock for certain corporate actions. The Board of Directors of the Company has approved the transactions consummated at the first closing and the transactions to be consummated at the second and third closings, subject to, among other things, the finalization of the documents relating to the preferred stock and the proposed senior secured credit facility. Michael Salaman, the Company's CEO and a director, is a minority investor in Trim Capital. Bryant Park Capital initiated the transaction and served as the exclusive financial advisor to Skinny Nutritional Corp. throughout the transaction. Trim Capital LLC is affiliated with Prime Capital, LLC, a private investment firm that assists consumer companies in financing operations and expansion. Trim's objective is to assist Skinny Water in building its brand by providing strategic, branding and marketing expertise, as well as, operational support. Skinny Nutritional Corp. holds an extensive portfolio of trademarks for Skinny products and has a planned roll-out schedule that is expected to fuel significant growth. More information about upcoming launches will be detailed in the coming months. The current Skinny Water lineup features six great-tasting flavors, including Acai Grape Blueberry (Hi-Energy), Raspberry Pomegranate (Crave Control), Lemonade Passionfruit (Total-V), Orange Cranberry Tangerine (Wake Up), Pink Citrus (Power), and Goji Black Cherry (Shape). Every bottle of Skinny Water has key electrolytes, antioxidants, and vitamins and ZERO calories, ZERO sugar, and ZERO sodium, ZERO carbohydrates and contains no preservatives, with all natural colors and flavors. About Skinny Nutritional Bala Cynwyd, Pa.-based Skinny Nutritional Corp. (OTC BB: SKNY.OB) -- http://www.SkinnyWater.com/-- has developed and is marketing a line of enhanced waters, all branded with the name "Skinny Water" that are marketed and distributed primarily to calorie and weight conscious consumers. The Company reported a net loss of $7.66 million in 2011, compared with a net loss of $6.91 million in 2010. The Company's balance sheet at March 31, 2012, showed $2.15 million in total assets, $4.62 million in total liabilities, all current, and a $2.47 million stockholders' deficit. In its audit report for the 2011 financial statements, Marcum LLP, in Bala Cynwyd, Pennsylvania, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a working capital deficiency of $3.17 million, an accumulated deficit of $45,492,945, stockholders' deficit of $1.74 million and no cash on hand. The Company had net losses of $7.67 million and $6.91 million for the years ended Dec. 31, 2011, and 2010, respectively. Additionally, the Company is currently in arrears under its obligation for the purchase of trademarks. Under the agreement, the seller of the trademarks may choose to exercise their legal rights against the Company's assets, which includes the trademarks. SPRING HILL: Case Summary & 5 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Spring Hill Mobile Partners, LLC 5400 Riverside Drive, Suite 203 Macon, GA 31210 Bankruptcy Case No.: 12-51767 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Middle District of Georgia (Macon) Debtor's Counsel: Matthew S. Cathey, Esq. STONE & BAXTER, LLP 577 Mulberry Street Suite 800 Macon, GA 31201 Tel: (478) 750-9898 Fax: (478) 750-9899 E-mail: mcathey@stoneandbaxter.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 five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/gamb12-51767.pdf The petition was signed by Jerry L. Stephens, president of J&S Acquisitions, Inc., general partner of WCDM Development, L.P. STEREOTAXIS INC: Files Form S-1; Registers 28.1MM Common Shares --------------------------------------------------------------- Stereotaxis, Inc., filed with the U.S. Securities and Exchange Commission a Form S-1 registration statement relating to the offer and sale, from time to time, of up to 28,193,451 shares of the Company's common stock, par value $0.001 per share, of the Company which includes 6,506,181 shares of the Company's common stock issuable to Alafi Capital Company LLC, Sanderling Venture Partners VI Co-Investment Fund, L.P., Franklin Strategic Series - Franklin Small-Mid Cap Growth Fund, et al., upon the exercise of warrants to purchase of the Company's common stock, by the selling stockholders. The shares and the warrants were issued in connection with that certain Stock and Warrant Purchase Agreement dated as of May 7, 2012, between Stereotaxis and the selling stockholders. The Company will not receive any proceeds from the sale of the shares, but, assuming exercise of all warrants to which the shares relate, the Company will receive up to $2,186,727 in proceeds from the exercise of the warrants prior to those sales, which proceeds would be used for general corporate purposes. The Company's common stock is listed on the Nasdaq Global Market under the symbol "STXS." On May 22, 2012, the last reported sale price for the Company's common stock on the Nasdaq Global Market was $0.28 per share. A copy of the Form S-1 is available for free at: http://is.gd/vNDQVV About Stereotaxis Based in St. Louis, Mo., Stereotaxis, Inc., designs, manufactures and markets the Epoch Solution, which is an advanced remote robotic navigation system for use in a hospital's interventional surgical suite, or "interventional lab", that the Company believes revolutionizes the treatment of arrhythmias and coronary artery disease by enabling enhanced safety, efficiency and efficacy for catheter-based, or interventional, procedures. For the year ended Dec. 31, 2011, Ernst & Young LLP, in St. Louis, Missouri, expressed substantial doubt about Stereotaxis' ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring operating losses and has a working capital deficiency. The Company reported a net loss of $32.0 million for 2011, compared with a net loss of $19.9 million for 2010. The Company's balance sheet at March 31, 2012, showed $36.79 million in total assets, $60.16 million in total liabilities, and a $23.36 million total stockholders' deficit. STOCKTON, CA: Attorneys Say City Deserves Bankruptcy Protection --------------------------------------------------------------- Katy Stech at Dow Jones' Daily Bankruptcy Review reports that less than a week after economically depressed Stockton, Calif., collapsed into bankruptcy in the largest-ever Chapter 9 case for a city, its attorneys are fighting for the San Francisco suburb to stay under protection -- and vowing to fend off any attempt to have its case tossed from bankruptcy court. About Stockton, Calif. The City of Stockton, California, filed a Chapter 9 petition (Bankr. E.D. Calif. Case No. 12-32118) in Sacramento on June 28, 2012, becoming the largest city to seek creditor protection in U.S. history. The city was forced to file for bankruptcy after talks with bondholders and labor unions failed. Stockton estimated more than $1 billion in assets and in excess of $500 million in liabilities. The city, with a population of about 300,000, identified the California Public Employees Retirement System as the largest unsecured creditor with a claim of $147.5 million for unfunded pension costs. In second place is Wells Fargo Bank NA as trustee for $124.3 million in pension obligation bonds. The list of largest creditors includes $119.2 million owing on four other series of bonds. The city is being represented by Marc A. Levinson, Esq., at Orrick, Herrington & Sutcliffe LLP. The petition was signed by Robert Deis, city manager. Mr. Levinson also represented the city of Vallejo, Calif. in its 2008 bankruptcy. Vallejo filed for protection under Chapter 9 (Bankr. E.D. Calif. Case No. 08-26813) on May 23, 2008. It estimated $500 million to $1 billion in assets and $100 million to $500 million in debts in its petition. In August 2011, Vallejo was given green light to exit the municipal reorganization. The Chapter 9 plan restructures $50 million of publicly held debt secured by leases on public buildings. Although the Plan doesn't affect pensions, it adjusts the claims and benefits of current and former city employees. Bankruptcy Judge Michael McManus released Vallejo from bankruptcy on Nov. 1, 2011. STRATEGIC CAPITAL: Judge Dismisses $2MM Fraudulent Transfer Suit --------------------------------------------------------------- Jeremy Heallen at Bankruptcy Law360 reports that U.S. District Judge Lee Yeakel on Monday dismissed a lawsuit alleging Strategic Capital Resources Inc. fraudulently transferred more than $2 million to avoid paying investment firm Fulcrum Credit Partners LLC in a contract dispute over claims against a bankrupt homebuilder, finding the case should not have been filed in Texas. TC GLOBAL: Delays Fiscal 2012 Annual Report ------------------------------------------- TC Global, Inc., is unable to file its annual report on Form 10-K for the period ended April 1, 2012, within the prescribed time period without unreasonable effort and expense because the time and resources of the Company's limited finance and accounting staff have been diverted from the Company's normal process of preparing and reviewing the Form 10-K due to matters involving the Company's international operations. The Company expects to file its Form 10-K on or before July 17, 2012. About TC Global TC Global, Inc., dba Tully's Coffee, is a specialty coffee retailer and wholesaler. Through company owned, licensed and franchised specialty retail stores in Washington, Oregon, California, Arizona, Idaho, Montana, Colorado, Wyoming and Utah, throughout Asia with Tully's Coffee International, and with its global alliance partner Tully's Coffee Japan, Tully's premium coffees are available at nearly 600 branded retail locations globally, including more than 200 in the United States. TC Global also has the rights to distribute Tully's coffee through all wholesale channels internationally, outside of North America, the Caribbean and Japan. TC Global's corporate headquarters is located at 3100 Airport Way S, in Seattle, Washington. See http://www.TullysCoffeeShops.com The Company reported a net loss attributable to TC Global, Inc., of $5.21 million on $38.26 million of net sales for the year ended April 3, 2011, compared with a net loss attributable to TC Global, Inc., of $5.19 million on $39.57 million of net sales for the year ended March 28, 2010. The Company's balance sheet at July 3, 2011, showed $8.27 million in total assets, $16.48 million in total liabilities and a $8.21 million total stockholders' deficit. In the auditors' report accompanying the financial statements for year ended April 3, 2011, Moss Adams LLP, in Seattle, Washington, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and has limited working capital to fund operations. TPF GENERATION: S&P Affirms 'B' Rating on $495MM 2nd Lien Loan -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on TPF Generation Holdings LLC's $495 million second-lien term loan due 2014 to developing from negative and affirmed the 'B' rating on the loan. "We also revised our recovery rating to '1' from '3'. In addition, we withdrew the 'BB' rating on TPF's first-lien $850 million senior secured term loan subsequent to its repayment. There remains a synthetic first-lien letter of credit with $50 million in outstanding commitments, and we affirmed the 'B' rating and outlook on that debt," S&P said. The outlook revision reflects the potential for a leverage covenant trip in 2013. TPF Generation sold its Rio Nogales power plant in April 2012 and used proceeds to repay about $255 million of the first-lien term loan and about $84 million of the second- lien term loan apart from cash collateralizations for the first- lien letter of credit and other costs. With this the project has now fully repaid the first-lien term loan, and the outstanding amount under the second-lien loan is about $411 million (about $298/kilowatt) as of April 2012. "Two items that affect the project's credit profile are refinance risk and the potential for a covenant trip in 2013. Under our base case assumptions, we forecast that when the outstanding term loan matures, the project will have about $189/kilowatt of debt outstanding," S&P said. "We believe that the project should be able to refinance this amount given recent sale prices for peaking plants in the PJM Interconnection region and current valuations for combined-cycle gas turbines," said Standard & Poor's credit analyst Theodore Dewitt. "The remaining risk is the potential for a leverage covenant trip in 2013. The second-lien term loan that remains outstanding is subject to a maximum leverage covenant of 5x. In our base case assumptions, the project exceeds this covenant in 2013. The force behind the potential covenant trip is the uncertain size of resource adequacy payments received at the portfolio's High Desert asset," S&P said. "We base the developing outlook on the ratings on the project's exposure to yet undetermined resource adequacy payments at the High Desert plant in 2013, which could cause a covenant trip. With the repayment of the first-lien term debt, the potential for not paying debt service is greatly reduced, but it's possible the project trip a leverage covenant in 2013 if resource adequacy payments don't increase. If the project successfully executes contracts for merchant capacity payments at about $14 million or greater in 2013 at High Desert, and this brings the leverage ratio through 2014 to below 5x in our base case scenario, we would consider an upgrade. We could lower the rating if operating performance deteriorates or if the project cannot secure sufficiently high resource adequacy payments," S&P said. TRANS-LUX CORP: Stockholders Elected Salvatore Zizza as Director ---------------------------------------------------------------- The annual meeting of stockholders of Trans-Lux Corporation was held on June 26, 2012. At the Annual Meeting, the stockholders approved the following proposals: * To amend and restate the Corporation's Restated Certificate of Incorporation, as amended, to, among other things: (a) increase authorized shares and reduce the par value of the Corporation's common stock, par value $1.00 and reduce the par value of the Corporation's Preferred Stock, par value $1.00; (b) remove Class A Stock, par value $1.00, from authorized capital stock; (c) remove Class B Stock, par value $1.00, from authorized capital stock; (d) conform other provisions of Article Fourth of the Corporation's Restated Certificate of Incorporation, as amended, to reflect items (b) and (c) above, update certain provisions of Article Fourth and set the voting power of the Common Stock; (e) update certain provisions of the Corporation's Restated Certificate of Incorporation, as amended (including replacing Article Third thereof with a one-sentence statement of the Company's purpose and replacing Article Fifth thereof with certain provisions relating to the Company's directors); and (f) update certain provisions of Article Eighth of the Corporation's Restated Certificate of Incorporation, as amended; * To amend the Corporation's Restated Certificate of Incorporation, as amended, to repeal the super-majority voting requirements contained in (a) Articles Ninth and Tenth thereof, (b) Article Fourth thereof and (c) Article Twelfth thereof; * To approve the adoption of the 2012 Long-Term Incentive Plan; * To elect Salvatore Zizza as director of the Company; and * To ratify the retention of BDO USA, LLP, as the independent registered public accounting firm for the Corporation. About Trans-Lux Corporation Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a designer and manufacturer of digital signage display solutions for the financial, sports and entertainment, gaming and leasing markets. The Company reported a net loss of $1.42 million in 2011, compared with a net loss of $7.03 million in 2010. The Company's balance sheet at March 31, 2012, showed $26.72 million in total assets, $24.45 million in total liabilities, $6.13 million in redeemable convertible preferred stock, and a $3.86 million total stockholders' deficit. VALENCE TECHNOLOGY: Incurs $12.7 Million Net Loss in Fiscal 2012 ---------------------------------------------------------------- Valence Technology, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-K disclosing a net loss of $12.73 million on $44.38 million of revenue for the year ended March 31, 2012, a net loss of $12.68 million on $45.88 million of revenue for the year ended March 31, 2011, and a net loss of $23.01 million on $16.08 million of revenue for the year ended March 31, 2010. The Company reported a net loss available to common stockholders of $2.70 million on $13.32 million of total revenues for the three months ended March 31, 2012, compared with a net loss available to common stockholders of $2.53 million on $13.90 million of total revenues for the same period a year ago. The Company's balance sheet at March 31, 2012, showed $31.52 million in total assets, $82.63 million in total liabilities, $8.61 million in redeemable convertible preferred stock and a $59.71 million total stockholders' deficit. PMB Helin Donova, LLP, in Austin, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2012, citing recurring losses from operations, negative cash flows from operations and net stockholders' capital deficiency which raised substantial doubt about the Company's ability to continue as a going concern. "We have seen continued progress with commercial motive customers such as Segway, PVI, Optare, and Electric Vehicles International. During the past year, we also expanded our business into a number of sectors, with particular success in the industrial/medical sector where we now supply systems to significant corporations such as Rubbermaid Medical and Howard Technology. Additionally, we have developed strong relationships with customers in the motive and back-up power sectors who see value through the return on investment our advanced U-Charge family of lithium phosphate batteries offer. Looking to the future, we are confident that our experience, quality, and engineering support will continue to distinguish Valence in our growing markets," said Robert L. Kanode, president and chief executive officer of Valence Technology. Bankruptcy Warning The Company said in the fiscal 2012 annual report that it cannot achieve a competitive cost structure, achieve profitability, and acquire access to capital markets on acceptable terms, the Company will be unable to fund its obligations and sustain its operations, and may be required to liquidate its assets, cease operations or file for bankruptcy protection. A copy of the Form 10-K is available for free at: http://is.gd/bMP4BV About Valence Technology Austin, Texas-based Valence Technology, Inc. (NASDAQ: VLNC) -- http://www.valence.com/-- is a global leader in the development of safe, long-life lithium iron magnesium phosphate energy storage solutions and provides the enabling technology behind some of the world's most innovative and environmentally friendly applications. Valence Technology has its Research & Development Center in Nevada, its Europe/Asia Pacific Sales office in Northern Ireland and global fulfillment centers in North America and Europe. VENUS HOSPITALITY: Case Summary & 9 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Venus Hospitality, LLC dba Super 8 Orange dba Motel 6 2710 I-10 West Orange, TX 77632 Bankruptcy Case No.: 12-10414 Chapter 11 Petition Date: July 2, 2012 Court: United States Bankruptcy Court Eastern District of Texas (Beaumont) Debtor's Counsel: Frank J. Maida, Esq. MAIDA LAW FIRM 4320 Calder Avenue Beaumont, TX 77706-4631 Tel: (409) 898-8200 Fax: (409) 898-8400 E-mail: maidalawfirm@gt.rr.com Scheduled Assets: $1,590,137 Scheduled Liabilities: $3,121,179 A copy of the Company's list of its nine largest unsecured creditors is vailable for free at http://bankrupt.com/misc/txeb12-10414.pdf The petition was signed by Girirajan Mohan, member-manager. Related entities that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Girirajan Mohan and Ragini Prajapati 12-10415 07/02/12 VHGI HOLDINGS: Inks 3rd Amendment to Platinum Note Purchase Pact ---------------------------------------------------------------- Lily Group, Inc., and Platinum Partners Credit Opportunities Master Fund LP entered into a third amendment to the Note Purchase Agreement as of June 15, 2012, which extended the termination date of the Note Purchase Agreement to Aug. 10, 2012, in exchange for Lily's agreement to pay Platinum the sum of $250,000 upon the Termination Date. In addition, the third amendment provides that the payment to Platinum of $550,000 for the second amendment is deferred until the Termination Date and in consideration for this deferral Lily agreed to pay Platinum the additional sum of $100,000 on or before July 9, 2012, plus Platinum's legal fees for the second and third amendments. VHGI Coal, Inc., which is a wholly owned subsidiary of VHGI Holdings, Inc., entered into a Stock Purchase Agreement with Lily, pursuant to which VHGI Coal agreed to purchase all outstanding shares of Lily's common stock. The transactions contemplated by the Stock Purchase Agreement closed on Feb. 16, 2012, with Lily becoming a wholly owned subsidiary of VHGI Coal. As a condition of closing of the Stock Purchase Agreement, Lily was required to pay off and refinance certain debt. In order to do so, contemporaneously with the closing of the stock purchase, Lily entered into a Note Purchase Agreement with Platinum, pursuant to which Lily issued a 12% secured promissory note in the original principal amount of $13,000,000. About VHGI Holdings Fort Worth, Tex.-based VHGI Holdings, Inc., is a holding company with revenue streams from the following business segments: (a) precious metals (b) oil and gas (c) coal and (d) medical technology. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, Siler & Hardy, P.C., in Salt Lake City, Utah, expressed substantial doubt about VHGI Holdings' ability to continue as a going concern. The independent auditors noted that the Company has incurred substantial losses and has a working capital deficit. The Company reported a net loss of $5.43 million on $499,600 of revenues for 2011, compared with a net loss of $1.67 million on $482,300 of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $7.22 million in total assets, $9.12 million in total liabilities, and a stockholders' deficit of $1.90 million. WA ROUTE 9: PAF Capital LLC Sues for Fraud ------------------------------------------ PAF Capital LLC filed several claims against Jacob Frydman and WA Route 9, LLC relating to fraud Mr. Frydman is alleged to have committed in connection with the settlement of Mr. Frydman's breach of a personal guaranty of a $12 million loan. PAF Capital also asserted claims against WA Route 9 and its members and managers in connection with WA Route 9's default on its loan with PAF Capital and the members' and managers' defaulted on their guarantees of that loan. The lawsuit alleges that Mr. Frydman defaulted on his personal guaranty of a $12 million loan PAF Capital made to McDonald Ave. Acquisition LLC. The suit claims that after defaulting on his guaranty, Mr. Frydman represented to PAF Capital that he could not afford to honor his guaranty and provided PAF Capital with what they now believe are fraudulent financial statements in an effort to get PAF Capital to settle with Mr. Frydman for a significant haircut. PAF Capital also held a $600,000.00 loan made to WA Route 9A, LLC and Mr. Frydman personally guaranteed that loan. In spite of PAF Capital's repeated extensions of the maturity date of this loan, the suit alleges that in September 2010 WA Route 9 defaulted on that loan and Mr. Frydman defaulted on his guaranty and that to date, PAF Capital has not been paid back any of the money borrowed by WA Route 9A and guaranteed by Mr. Frydman. Jacob Frydman is in the process of forming a public fund-raising vehicle registered with the SEC under the name United Realty Trust Incorporated. PAF Capital's claims against WA Route 9A and Mr. Frydman seek almost $5 million damages. WASHINGTON MUTUAL: Shareholder Objects to Weil Gotshal's Fees ------------------------------------------------------------- Amanda Bransford at Bankruptcy Law360 reports that a Washington Mutual Inc. shareholder sharply objected Tuesday in Delaware bankruptcy court to Weil Gotshal & Manges LLP's request for almost $77.4 million in attorneys' fees for its representation of the debtor, saying the firm was charging exorbitant rates and padding the hours it billed. Shareholder David Shutvet said Weil's blended attorney rate of $882 an hour was well above the appropriate rate that should have been applied using the so-called Laffey Matrix fee range established by the case Laffey v. Northwest Airlines Inc., according to Bankruptcy Law360. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- was the holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of the equity in WMI Investment. When WaMu filed for protection from its creditors, it disclosed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500 million to $1 billion with zero debts. WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal & Manges LLP in New York City; Mark D. Collins, Esq., at Richards, Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP. The Debtor tapped Valuation Research Corporation as valuation service provider for certain assets. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New York, and David B. Stratton, Esq., at Pepper Hamilton LLP in Wilmington, Del., represent the Official Committee of Unsecured Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the Equity Committee. The official committee of equity security holders also tapped BDO USA as its tax advisor. Stacey R. Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent JPMorgan Chase, which acquired the WaMu bank unit's assets prior to the Petition Date. In March 2012, the Debtors' Seventh Amended Joint Plan of Affiliated, as modified, and as confirmed by order, dated Feb. 23, 2012, became effective, marking the successful completion of the chapter 11 restructuring process. The Plan is based on a global settlement that removed opposition to the reorganization and remedy defects the judge identified in September. The plan is designed to distribute $7 billion. Under the reorganization plan, WaMu established a liquidating trust to make distributions to parties-in-interest on account of their allowed claims. WESTMORELAND COAL: Has $20MM Revolving Facility with PrivateBank ---------------------------------------------------------------- Westmoreland Coal Company has entered into a five-year, $20.0 million revolving credit facility with The PrivateBank and Trust Company as contemplated and allowed for under the provisions of the indenture governing its outstanding 10.750% Senior Secured Notes due 2018. Westmoreland Mining, LLC, its wholly owned subsidiary, has successfully amended its existing Note Purchase Agreement dated June 26, 2008 and its Amended and Restated Credit Agreement dated June 26, 2008. The amendments, which are mirrored in both documents, modify the pension funding requirement and amend the leverage and debt service coverage ratios, providing the company with increased flexibility. "We took the current favorable interest rate environment as an opportunity to enter into a long term revolving credit facility," said Keith E. Alessi, Westmoreland's Chief Executive Officer. "While we have no immediate plans to draw upon the facility, it will provide us with increased financial flexibility and liquidity. The amendments to the WML agreements adjust our ratios and funding requirements to more closely reflect the quarterly fluctuations in our business and the impact of the current low interest rate environment on pension valuations. Westmoreland is fortunate to be in a highly liquid position and have financial flexibility. We appreciate the continuing support of our lenders and look forward to working with The PrivateBank." A copy of the Loan Agreement is available for free at: http://is.gd/RmB7Ce About Westmoreland Coal Colorado Springs, Colo.-based Westmoreland Coal Company (NYSE AMEX: WLB) -- http://www.westmoreland.com/-- is the oldest independent coal company in the United States. The Company's coal operations include coal mining in the Powder River Basin in Montana and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. The Company reported a net loss of $36.87 million in 2011, a net loss of $3.17 million in 2010, and a net loss of $29.16 million in 2009. The Company's balance sheet at March 31, 2012, showed $955 million in total assets, $1.20 billion in total liabilities and a $249.08 million total deficit. * * * In March 2011, Standard & Poor's Ratings Services said that it assigned a 'CCC+' corporate credit rating to Colorado Springs, Colorado-based Westmoreland Coal Co. In January 2012, S&P revised its outlook on Westmoreland to positive from stable and affirmed its 'CCC+' credit rating. "The outlook revision reflects our expectation that the acquisition, improved reserve position, and stronger coal pricing could bring WLB's credit metrics in line with a higher rating over the next several quarters," said Standard & Poor's credit analyst Gayle Bowerman. The rating and outlook for WLB also incorporate the combination of what S&P considers to be its 'vulnerable' business risk profile and 'highly leveraged' financial risk profile. The ratings also reflect WLB's high-cost position in the Powder River Basin (PRB) and Texas, relatively short reserve life, high customer concentration, challenges posed by the inherent risks of coal mining, and liquidity that's less than adequate to meet the company's near-term obligations. WESTMORELAND COAL: Six Directors Elected at Annual Meeting ---------------------------------------------------------- The annual meeting of stockholders of Westmoreland Coal Company was held at the Skybridge Conference Room at The Crowne Plaza Hotel, Billings, Montana, on May 22, 2012. The stockholders elected six directors to the Board of Directors to serve for a one-year term, namely: (1) Keith E. Alessi, (2) Michael R. D'Appolonia, (3) Gail E. Hamilton, (4) Richard M. Klingaman, (5) Jan B. Packwood, and (6) Robert C. Scharp. The stockholders voted in favor of an advisory vote on executive compensation. The stockholders approved the amendments to the Amended and Restated 2007 Equity Incentive Plan for Employees and Non-Employee Directors and ratified the appointment by the Audit Committee of Ernst & Young LLP as principal independent auditor for fiscal year 2012. In light of the stockholder vote in 2011, the Company has determined that it will hold a non-binding advisory vote to approve the Company's compensation of its named executive officers as disclosed in its annual meeting proxy statement every year until it next holds a non-binding stockholder advisory vote on the frequency with which the Company should hold future say-on-pay votes, which vote will appear in the 2014 proxy statement. About Westmoreland Coal Colorado Springs, Colo.-based Westmoreland Coal Company (NYSE AMEX: WLB) -- http://www.westmoreland.com/-- is the oldest independent coal company in the United States. The Company's coal operations include coal mining in the Powder River Basin in Montana and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. The Company reported a net loss of $36.87 million in 2011, a net loss of $3.17 million in 2010, and a net loss of $29.16 million in 2009. The Company's balance sheet at March 31, 2012, showed $955 million in total assets, $1.20 billion in total liabilities and a $249.08 million total deficit. * * * In March 2011, Standard & Poor's Ratings Services said that it assigned a 'CCC+' corporate credit rating to Colorado Springs, Colorado-based Westmoreland Coal Co. In January 2012, S&P revised its outlook on Westmoreland to positive from stable and affirmed its 'CCC+' credit rating. "The outlook revision reflects our expectation that the acquisition, improved reserve position, and stronger coal pricing could bring WLB's credit metrics in line with a higher rating over the next several quarters," said Standard & Poor's credit analyst Gayle Bowerman. The rating and outlook for WLB also incorporate the combination of what S&P considers to be its 'vulnerable' business risk profile and 'highly leveraged' financial risk profile. The ratings also reflect WLB's high-cost position in the Powder River Basin (PRB) and Texas, relatively short reserve life, high customer concentration, challenges posed by the inherent risks of coal mining, and liquidity that's less than adequate to meet the company's near-term obligations. W.R. GRACE: Garlock Takes Plan Appeal to Third Circuit ------------------------------------------------------ Garlock Sealing Technologies, LLC, notified the U.S. District Court for the District of Delaware that it will take an appeal to the United States Court of Appeals for the Third Circuit from Judge Ronald L. Buckwalter's memorandum opinion and order entered on June 11, 2012, overruling all objections and confirming W.R. Grace & Co. and its debtor affiliates' Joint Plan of Reorganization in its entirety. As reported by the Troubled Company Reporter, on Jan. 30, 2012, District Judge Buckwalter affirmed the Jan. 31, 2011 order confirming the Joint Plan issued by Bankruptcy Judge Judith Fitzgerald. Numerous parties-in-interest filed motions to reconsider, alter and clarify the Affirmation Order. Various appeals have also been filed. Judge Buckwalter issued on June 11, 2012, an amended memorandum opinion and order overruling all objections and confirming Grace's Joint Plan of Reorganization in its entirety. To address the request of the Plan Proponents to amend the Memorandum Opinion, the joint motion of Sealed Air Corporation, Cryovac, Inc., and Fresenius Medical Care Holdings, Inc., to amend and clarify the Memorandum Opinion and Order and the Libby Claimants' response, Judge Buckwalter filed a consolidated order granting the motions, and amended the Memorandum Opinion and Order. Appellant Garlock Sealing Technologies, LLC's motion for reargument, rehearing, and to alter or amend is also granted. The Amended Memorandum Opinion and Order includes additional language clarifying that all injunctions and releases in the Joint Plan, and not merely the injunction under Section 524(g) of the Bankruptcy Code are approved, issued and affirmed. Upon consideration of Garlock's Motion, Judge Buckwalter changed the Memorandum Opinion's section entitled "Garlock's Objections to the Joint Plan" to reflect the District Court's consideration of the arguments put forth by Garlock and Grace during an oral argument on May 8, 2012, and in their briefing submitted to the District Court. A full-text copy of the Amended Memorandum Opinion is available for free at: http://bankrupt.com/misc/Grace_AmendedOpinion_ConfOrder.pdf 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: W.D. Pa. Court Defers to Delaware District Court ------------------------------------------------------------ District Judge Nora Barry Fischer in the Western District of Pennsylvania declined to rule on three of the 12 separate appeals initiated by Garlock Sealing Technologies, LLC, from Bankruptcy Judge Judith K. Fitzgerald's Memorandum Opinion and Order issued October 7, 2011, denying Garlock's motions to access records in asbestos-related Chapter 11 bankruptcies of: -- Pittsburgh Corning; North American Refractories; and Mid-Valley Inc., which are pending before the Bankruptcy Court for the Western District of Pennsylvania; and -- Owens Corning; Armstrong World Industries, et al.; W.R. Grace & Co.; USG Corp. et al.; United States Mineral Products Company; Kaiser Aluminum Corp.; ACandS Inc.; Combustion Engineering Inc.; Flintkote Company, which are pending before the Bankruptcy Court for the District of Delaware. The consolidated opinion and order resolved motions filed by Garlock in nine bankruptcy cases in the Delaware Bankruptcy Court and three bankruptcies in the Western District of Pennsylvania Bankruptcy Court. This procedural nuance is possible because Judge Fitzgerald is assigned to hear bankruptcy cases in both Bankruptcy Courts. Garlock filed 12 separate appeals of Judge Fitzgerald's rulings, including three appeals pending before the Western District of Pennsylvania District Court and nine appeals in the Delaware District Court. Garlock admits that its appeals are identical in that they all challenge the same rulings by the Bankruptcy Court and raise the same arguments on appeal. The substance of Garlock's briefing in the two fora appears virtually indistinguishable, aside from required changes to the case caption and parties in each case. Garlock's appeals focus on its desire to access Fed.R.Bankr.P. Rule 2019 statements filed by creditor committees and law firms in the bankruptcy cases. The parties with an actual interest in the 12 appeals include Garlock, law firms and creditor committees, while the 12 debtors have more of a tangential interest in avoiding Garlock's attempts to intervene in their respective cases. Judge Fischer said she will exercise discretion and stay the three proceedings pending disposition of the appeals before the Delaware District Court. Judge Fischer cited, among others, the need to avoid duplicative litigation. Judge Fischer said the parties could have stipulated to a transfer of the WDPA appeals to Delaware or alternatively, reached a stipulation wherein the parties in the WDPA appeals would agree to be bound by the decision from District Judge Leonard P. Stark, who is assigned to the Delaware appeals. Judge Fischer also noted that, after the stay is lifted, Judge Stark's decision will likely be very persuasive to the WDPA Court. According to Judge Fischer, based on her review of the litigation, it appears that any decision rendered at the District Court level, whether it be issued by Judge Stark or Judge Fischer, will be further appealed to the United States Court of Appeals for the Third Circuit. As such, there is simply no benefit to having two separate District Courts analyze this case simultaneously. A copy of Judge Fischer's Memorandum Opinion dated June 21 is available at http://is.gd/znOx6dfrom Leagle.com. 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) WRENA LLC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Wrena, LLC 26980 Trolley Industrial Drive Taylor, MI 48180 Bankruptcy Case No.: 12-55748 Chapter 11 Petition Date: June 30, 2012 Court: United States Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Steven W. Rhodes Debtor's Counsel: Elias Xenos, Esq. THE XENOS LAW FIRM, PLC 261 E. Maple Rd. Birmingham, MI 48009 Tel: (248) 812-9495 Fax: (248) 498-6272 E-mail: etx@XenosLawFirm.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 is available for free at http://bankrupt.com/misc/mieb12-55748.pdf The petition was signed by Nagesh Palakurthi, managing member. XIANBURG DATA: Receives TSX Delisting Notice -------------------------------------------- Xianburg Data Systems Canada Corporation disclosed that the TSX Venture Exchange has notified the Company of the TSXV's intention to delist the Company from the NEX at the close of market on Sept. 14, 2012. The TSXV has notified the Company that it may avoid the delisting of its shares if, prior to the Delisting Date, the Company has (a) filed on SEDAR and with the securities commissions all outstanding financial statements; and (b) the Company has obtained a revocation of all outstanding Cease Trade Orders issued against the Company. The Company has filed with the securities commissions all financial statements which have been required to be filed under applicable securities laws including audited financial statements for the financial years ended Dec. 31, 2010 and 2011, so there are no outstanding financial statements to be filed. The Company is working closely with its advisors to address the requirements and conditions of the British Columbia Securities Commission ("BCSC") to revoking the Cease Trade Order issued on May 10, 2011 (the "CTO"). The BCSC has advised the Company that as one of the conditions to revoking the CTO, it will require a third year of audited financial statements. The BCSC does not regard the fiscal 2009 audited financial statements as being accompanied by a clean audit opinion since there was a restatement of those financial statements when the audited financial statements for fiscal 2010 were issued. The Company had planned to have its current auditor, Manning Elliott LLP, prepare an audit opinion in respect of the financial year ended Dec. 31, 2009, to satisfy the BCSC requirement. In order to do this, the Company's former auditor, Lo Porter Hetu, would be required to withdraw its audit opinion prepared in respect of the 2009 financial statements. Unfortunately, the Company's former auditor has refused to cooperate in this matter. As such, the Company is currently unable to confirm whether it will be in a position to successfully address the BCSC's requirements and conditions to obtain a revocation of the CTO before the TSXV delists the Company from NEX. Jingping Dong, the Chief Executive Officer of the Company, states, "The delisting of the Company from the NEX under these circumstances is regrettable and frustrating for all shareholders. I want to assure shareholders that the Company is committed to fulfilling its on-going reporting requirements and is doing everything it can get the CTO lifted as fast as possible." The Company is continuing to address comments raised by the BCSC in respect of its past continuous disclosure filings, and it is also actively exploring and considering all of its options with the aim of having the CTO revoked at the earliest time and of having the Company's shares listing on a recognized exchange. About Xianburg Data Systems The Company, through its wholly-owned subsidiary Xianburg Data Systems (Canada) Inc., governs and administers the operating entity XID, a Chinese based operating company, and will earn substantially all of its income from XID. XID is an IT products and services firm with offices in Xi'an and Beijing and it is recognized as a leader in China in providing mass data storage and disaster recovery IT solutions. XID's core business is data entry with a specialty of converting paper documents to electronic format (digitization) and it also manufactures high-performance, high-capacity storage systems for the archiving and publication of such documents. ZALE CORP: Incurs $4.5 Million Net Loss in March 31 Quarter ----------------------------------------------------------- Zale Corporation reported a net loss of $4.52 million on $445.17 million of revenue for the three months ended April 30, 2012, compared with a net loss of $8.99 million on $411.84 million of revenue for the same period a year ago. The Company reported a net loss of $7.56 million on $1.45 billion of revenue for the nine months ended April 30, 2012, compared with a net loss of $79.66 million on $1.36 billion of revenue for the same period during the prior year. The Company's balance sheet at April 30, 2012, showed $1.22 billion in total assets, $1.01 billion in total liabilities and $202.13 million in stockholders' investment. A copy of the Form 10-Q is available for free at: http://is.gd/SF2bCu About Zale Corporation Based in Dallas, Texas, Zale Corporation (NYSE: ZLC) -- http://www.zalecorp.com/-- is a specialty retailer of diamonds and other jewelry products in North America, operating approximately 1,900 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corporation's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at http://www.zales.com/, http://www.zalesoutlet.com/, http://www.gordonsjewelers.com/and http://www.pagoda.com/ * Moody's Says REIT Ruling Neg. for Skilled Nursing Facilities -------------------------------------------------------------- The recent US Supreme Court ruling to uphold the constitutionality of key provisions of the Patient Protection and Affordable Care Act (PPACA) is a positive development for healthcare REITs owning medical office buildings, as demand for them should rise, but negative for those with properties housing skilled nursing facilities, as PPACA contains provisions to curtail growth in Medicare payments to these facilities says Moody's Investors Service. "Regardless of PPACA, reimbursement to skilled nursing facilities will remain at risk as part of the government's broader initiative to curtail spending," says Lori Marks, a Moody's Assistant Vice President - Analyst and author of "Healthcare REITs: Supreme Court Ruling Positive for Medical Office Buildings, Negative for Skilled Nursing Facilities." "Despite these pressures, we note that the magnitude of any future rate cuts would need to be severe in order to impact REIT rents," says Ms. Marks. For the medical office buildings (MOBs), the expansion in medical coverage set to begin in 2014 under PPACA will bring more individuals into a healthcare system in which MOBs play an increasingly important role. MOBs serve doctors who focus on preventive care and provide outpatient procedures that would otherwise be conducted in more costly hospital settings. "Given their increasingly important role in the continuum of care, we expect MOBs to remain stable and profitable investments for REITs," says Moody's Ms. Marks. The best performance will be from those MOBs that are affiliated with leading health systems and located on or near their respective campuses, says Moody's. Off-campus, smaller MOBs are at risk of becoming less relevant in a post-reform era that dictates more coordinated care, which is better performed at a hospital campus setting. Moody's views the healthcare REITs as generally well positioned to handle the direction healthcare is moving even should PPACA be repealed after the November elections. "We believe that the trends emphasizing quality and efficiency of care are underway, irrespective of the PPACA, and the REITs are positioning their real estate portfolios accordingly," says Marks. "The REITs' abilities to partner with leading operators who are adapting to the changes as well as appropriately underwrite reimbursement risks, will be a key driver of their credit strength." * Feds Release 'Living Will' Outlines for 9 Big Banks ----------------------------------------------------- Evan Weinberger at Bankruptcy Law360 reports that U.S. bank regulators on Tuesday released the public outlines of company- written plans for winding down the nine largest banks, should they fail, in a relatively safe and quick manner. Each of the nine banks that submitted the so-called living wills to the Federal Reserve and the Federal Deposit Insurance Corp. provided brief snapshots of their capital and liquidity positions, as well as their funding and business structures, Bankruptcy Law360 relates. * Bernstein Law Firm Changes Name to Bernstein-Burkley ------------------------------------------------------ Bernstein Law Firm, P.C., has now changed its name to Bernstein- Burkley, P.C. "Kirk Burkley has become such a significant force in our business and in the community in general that we wanted to make it clear that he is part of the future of our firm," said Bob Bernstein, managing partner of the firm. "When Joe Bernstein started this firm so long ago, he knew that it would grow and change with the generations. Joe would be just as thrilled as we are with this change" "I'm looking forward to the future and what exciting things lie ahead for the firm," Kirk Burkley, partner-in-charge of the Bankruptcy and Restructuring group explains. "We offer the knowledge and experience of larger law firms, yet our size allows us to retain the quality and commitment to service our clients are used to. I am honored to be recognized by the firm in this way." Bernstein-Burkley, P.C. -- http://www.bernsteinlaw.com/-- is a highly regarded and respected law firm based in Pennsylvania with a national reach in Bankruptcy & Restructuring, Oil and Gas and in Creditors' Rights. * Jeremy R. Bloor Joins McDonald Hopkins' West Palm Beach Office ---------------------------------------------------------------- Jeremy R. Bloor has joined the West Palm Beach office of McDonald Hopkins LLC as an Associate in the Litigation Department of the business advisory and advocacy law firm. His practice will focus on commercial litigation. Bloor has extensive experience managing commercial litigation cases in all phases - from filing of complaint to conclusion of appeal. Prior to entering private practice, he served as a law clerk to the Honorable G. Kendal Sharp, Senior U.S. District Judge for the Middle District of Florida. Bloor graduated from the University of Florida in 2005 with a Bachelor of Arts degree in English and a Bachelor of Science degree in finance and received his J.D. in 2009 from the University of Virginia School of Law. He served as executive editor for the Virginia Tax Review and was a quarterfinalist in the William B. Spong Invitational Moot Court Competition. "We are lucky to have Jeremy join our Firm," said John T. Metzger, Managing Member of McDonald Hopkins' West Palm Beach office. "His prior experience as a Federal Judicial Clerk and commercial litigator will add another dimension to our talented group of attorneys." Jeremy R. Bloor Tel: 561.472.2967 E-mail: jbloor@mcdonaldhopkins.com. About McDonald Hopkins McDonald Hopkins is a business advisory and advocacy law firm with offices in Chicago, Cleveland, Columbus, Detroit, Miami, and West Palm Beach. The firm's comprehensive legal services are provided by teams of specialized attorneys and professionals in areas such as business law, litigation, business restructuring and bankruptcy, estate planning, government affairs, healthcare, intellectual property, labor and employment, and mergers and acquisitions. The president of McDonald Hopkins is Carl J. Grassi. * Meyers Nave's Michael Sweet Joins Fox Rothschild -------------------------------------------------- Fox Rothschild LLP is announced June 28, 2012, that Michael A. Sweet, a seasoned litigator with extensive financial restructuring and bankruptcy experience, has joined the firm as partner in the San Francisco office. Mr. Sweet handles bankruptcy and financial restructurings as well as complex litigation matters and election law issues in federal and state court. He has brought multiple jury and bench trials to verdict. "Michael is a terrific addition to our national bankruptcy team, adding significant strength particularly in the arena of municipal debt restructuring and Chapter 9 filings," said Keith I. Chrestionson, managing partner of the firm's San Francisco office. "He possesses an impressive depth of experience handling complex litigation in state and federal courts, and his familiarity with advising local governments on potential bankruptcy filings will prove invaluable as we strive to expand these capabilities from coast to coast." Mr. Sweet represents debtors, creditors and creditors' committees and trustees in bankruptcy cases throughout the state of California. He has extensive experience litigating preferences, fraudulent conveyances, claims objections and plan confirmation, and he frequently advises clients in financial distress on bankruptcy avoidance. Sweet has spoken and written extensively on bankruptcy topics, particularly regarding government issues, and has advised a number of local governments on potential Chapter 9 bankruptcy filings. Mr. Sweet is also an accomplished litigator who represents both plaintiffs and defendants in state and federal courts in commercial and employment disputes, creditors' rights issues and class actions, including those under California's Unfair Competition Law. His clients include technology companies, green- tech businesses, financial institutions, hospitality companies and a gourmet food producer. Additionally, Sweet represents candidates, campaign committees and officeholders, including those involved in recall elections and campaign finance-related law enforcement matters. Mr. Sweet has practiced at various bankruptcy and litigation firms throughout California during his career. Prior to his arrival at Fox, he served as chair of the municipal debt restructuring and bankruptcy practice group Meyers Nave. He is a former judicial extern for the Honorable Lisa Hill Fenning of the U.S. Bankruptcy Court for the Central District of California. Mr. Sweet serves as Chair of The San Francisco Human Rights Commission, and of The California Jewish Political Action Committee. He is Director of The San Francisco Metropolitan Jewish Community Relations Council and past-president of The Raoul Wallenberg Jewish Democratic Club of San Francisco. Additionally, Sweet is a member of The Bar Association of San Francisco, The Bay Area Bankruptcy Forum, The California Bankruptcy Forum, The California Political Attorneys' Association and The California State Democratic Central Committee. Mr. Sweet earned his J.D. from University of California at Los Angeles School of Law in 1996 and his B.A., cum laude, from Brandeis University in 1991. * Patton Boggs' Michael Richman Moves to Hunton & Williams ---------------------------------------------------------- Hunton & Williams LLP continues its expansion in New York with the arrival of Michael P. Richman as a partner in its bankruptcy, restructuring and creditors' rights practice group. With more than 25 years of experience, he is skilled in all aspects of chapter 11 bankruptcy. Richman joins the firm from Patton Boggs, where he chaired its bankruptcy practice. "Michael is an accomplished bankruptcy lawyer and his move to Hunton & Williams is another step in our strategy to further enhance our national practice," said Tyler P. Brown, global head of the firm's bankruptcy, restructuring and creditors' rights practice group. Peter S. Partee, who leads the practice group in New York, added, "I have admired Michael for years and am delighted for him to join our bankruptcy team in New York. Michael's enviable skill set and strong reputation among bankruptcy judges and practitioners alike makes him an invaluable addition to our team. Financial restructuring has been the mainstay of our practice in New York, and we believe Michael will make a tremendous contribution in that respect." Mr. Richman is a former president of the American Bankruptcy Institute and regularly lectures on bankruptcy, insolvency and ethics topics. Hunton & Williams handles major bankruptcy, restructuring and creditors' rights representations for a wide range of national institutional and other clients in federal and state courts across the United States, including the traditional bankruptcy fora of the Southern District of New York and the District of Delaware. * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In re Robert Barnett Bankr. D. Ariz. Case No. 12-14067 Chapter 11 Petition filed June 22, 2012 In re Jose Guardado Bankr. C.D. Calif. Case No. 12-31858 Chapter 11 Petition filed June 22, 2012 In re Eco Express LLC Bankr. D. Colo. Case No. 12-23129 Chapter 11 Petition filed June 22, 2012 See http://bankrupt.com/misc/cob12-23129p.pdf See http://bankrupt.com/misc/cob12-23129c.pdf represented by: Nicholas H. Ores, Esq. E-mail: nick.ores@gmail.com In re Cherie Baker Bankr. M.D. Fla. Case No. 12-04178 Chapter 11 Petition filed June 22, 2012 In re Mark Murphy Bankr. M.D. Fla. Case No. 12-08557 Chapter 11 Petition filed June 22, 2012 In re Shining Stars Child Care, Inc. Bankr. M.D. Fla. Case No. 12-09647 Chapter 11 Petition filed June 22, 2012 See http://bankrupt.com/misc/flmb12-09647p.pdf See http://bankrupt.com/misc/flmb12-09647c.pdf represented by: Jay B. Verona, Esq. Englander and Fischer, LLP E-mail: jverona@eandflaw.com In re Sicily's Covington, L.L.C. dba Sicily's Italian Buffet Bankr. E.D. La. Case No. 12-11893 Chapter 11 Petition filed June 22, 2012 See http://bankrupt.com/misc/laeb12-11893p.pdf See http://bankrupt.com/misc/laeb12-11893c.pdf represented by: Gary K. McKenzie, Esq. Steffes, Vingiello & McKenzie, LLC E-mail: gmckenzie@steffeslaw.com In re Quality Care Daycare at BUP LLP Bankr. D. Md. Case No. 12-21749 Chapter 11 Petition filed June 22, 2012 Filed pro se In re Harry Stovall Bankr. E.D.N.C. Case No. 12-04642 Chapter 11 Petition filed June 22, 2012 In re Wall Street Restaurant, LLC Bankr. E.D.N.Y. Case No. 12-44584 Chapter 11 Petition filed June 22, 2012 See http://bankrupt.com/misc/nyeb12-44584.pdf represented by: Gabriel Del Virginia, Esq. Law Offices of Gabriel Del Virginia E-mail: gabriel.delvirginia@verizon.net In re LightStyles, Ltd. Bankr. M.D. Pa. Case No. 12-03711 Chapter 11 Petition filed June 22, 2012 See http://bankrupt.com/misc/pamb12-03711.pdf represented by: Lawrence G. Frank, Esq. Thomas, Long, Niesen and Kennard E-mail: lawrencefrank@earthlink.net In re Marvin Window & Door Showplace, Inc. Bankr. M.D. Pa. Case No. 12-03713 Chapter 11 Petition filed June 22, 2012 See http://bankrupt.com/misc/pamb12-03713.pdf represented by: Lawrence G. Frank, Esq. Thomas, Long, Niesen and Kennard E-mail: lawrencefrank@earthlink.net In re Edwin Falu Vargas Bankr. D.P.R. Case No. 12-04896 Chapter 11 Petition filed June 22, 2012 In re Drew Roicki Bankr. W.D. Tex. Case No. 12-51937 Chapter 11 Petition filed June 22, 2012 In re William Wingate Bankr. S.D. Ga. Case No. 12-11114 Chapter 11 Petition filed June 24, 2012 In re Elva Blanks Bankr. D. Ariz. Case No. 12-14112 Chapter 11 Petition filed June 25, 2012 In re David Russell Tall Bankr. D. Ariz. Case No. 12-14182 Chapter 11 Petition filed June 25, 2012 In re ACS Roof Maintenance, Inc. Bankr. E.D. Ark. Case No. 12-13717 Chapter 11 Petition filed June 25, 2012 See http://bankrupt.com/misc/areb12-13717.pdf represented by: O. C. Rusty Sparks, Esq. Clark, Byarlay & Sparks E-mail: rustysparkslaw@gmail.com In re Artcite, LLC Bankr. C.D. Calif. Case No. 12-31906 Chapter 11 Petition filed June 25, 2012 See http://bankrupt.com/misc/cacb12-31906.pdf represented by: Young K. Chang, Esq. Law Office of Young K. Chang E-mail: bklaw3@yahoo.com In re Edwin Moore Bankr. C.D. Calif. Case No. 12-15817 Chapter 11 Petition filed June 25, 2012 In re Universal Ice Blast Inc. Bankr. C.D. Calif. Case No. 12-17791 Chapter 11 Petition filed June 25, 2012 See http://bankrupt.com/misc/cacb12-17791.pdf represented by: William Stocker, Esq. Law Offices of William Stocker In re Dennis Middleton Bankr. N.D. Calif. Case No. 12-45394 Chapter 11 Petition filed June 25, 2012 In re Rodney Williams Bankr. M.D. Fla. Case No. 12-04198 Chapter 11 Petition filed June 25, 2012 In re Charles Weatherly Bankr. N.D. Ga. Case No. 12-65789 Chapter 11 Petition filed June 25, 2012 In re WGAS, LLC Bankr. W.D. Ky. Case No. 12-32949 Chapter 11 Petition filed June 25, 2012 See http://bankrupt.com/misc/kywb12-32949.pdf represented by: Peter M. Gannott, Esq. Gannott Law Group PLLC E-mail: pgannott@gannottlaw.com In re Sports Palace Store Inc. Bankr. E.D. Mich. Case No. 12-55170 Chapter 11 Petition filed June 25, 2012 See http://bankrupt.com/misc/mieb12-55170.pdf represented by: A. Stephen Ramadan, Esq. Law Offices of A. Stephen Ramadan, PLC E-mail: steveramadan@gmail.com In re Christopher McKay Bankr. E.D.N.C. Case No. 12-04673 Chapter 11 Petition filed June 25, 2012 In re Cutler & Page, LLC Bankr. D.N.H. Case No. 12-12031 Chapter 11 Petition filed June 25, 2012 See http://bankrupt.com/misc/nhb12-12031.pdf represented by: Robert L. O'Brien, Esq. O'Brien Law E-mail: robjd@mail2firm.com In re Michael Geraghty Bankr. D.N.J. Case No. 12-26096 Chapter 11 Petition filed June 25, 2012 In re Valley View Farms LLC Bankr. D.N.J. Case No. 12-26081 Chapter 11 Petition filed June 25, 2012 See http://bankrupt.com/misc/njb12-26081.pdf represented by: Joan S. Lavery, Esq. Lavery & Sirkis E-mail: joan.lavery@verizon.net In re Camille Lizzi Bankr. E.D.N.Y. Case No. 12-73937 Chapter 11 Petition filed June 25, 2012 In re Mohson Ventures, Inc. dba Alpha International Auto Center Bankr. S.D. Tex. Case No. 12-34707 Chapter 11 Petition filed June 25, 2012 See http://bankrupt.com/misc/txsb12-34707.pdf represented by: Margaret Maxwell McClure, Esq. Law Office of Margaret M. McClure E-mail: margaret@mmmcclurelaw.com In re Glynda Brooks Bankr. W.D. Wash. Case No. 12-16589 Chapter 11 Petition filed June 25, 2012 In re Liberty Flag & Specialty Co., Inc. Bankr. W.D. Wis. Case No. 12-13672 Chapter 11 Petition filed June 25, 2012 See http://bankrupt.com/misc/wiwb12-13672.pdf represented by: Craig E. Stevenson, Esq. Krekeler Strother, S.C. E-mail: cstevenson@ks-lawfirm.com In re Premier Meats, Inc. Bankr. W.D. Wis. Case No. 12-13689 Chapter 11 Petition filed June 25, 2012 See http://bankrupt.com/misc/wiwb12-13689.pdf represented by: Galen W. Pittman, Esq. E-mail: galenpittman@centurytel.net In re Martha Gutierrez Bankr. C.D. Calif. Case No. 12-32047 Chapter 11 Petition filed June 26, 2012 In re Leonida Bautista Bankr. C.D. Calif. Case No. 12-32095 Chapter 11 Petition filed June 26, 2012 In re Simin Fahim Bankr. C.D. Calif.Case No. 12-32116 Chapter 11 Petition filed June 26, 2012 In re Zackery Wheeler Bankr. N.D. Calif. Case No. 12-45396 Chapter 11 Petition filed June 26, 2012 In re Genray Hamling Bankr. N.D. Calif. Case No. 12-45417 Chapter 11 Petition filed June 26, 2012 In re Charles Moyer Bankr. N.D. Calif. Case No. 12-45418 Chapter 11 Petition filed June 26, 2012 In re Carolyn Gianarelli Bankr. D. Colo. Case No. 12-23438 Chapter 11 Petition filed June 26, 2012 In re Clarence Gianarelli Bankr. D. Colo. Case No. 12-23438 Chapter 11 Petition filed June 26, 2012 In re Michelle Krause Bankr. M.D. Fla. Case No. 12-04211 Chapter 11 Petition filed June 26, 2012 In re Brian Agard Bankr. M.D. Fla. Case No. 12-08657 Chapter 11 Petition filed June 26, 2012 In re David Pinto Bankr. S.D. Fla. Case No. 12-25446 Chapter 11 Petition filed June 26, 2012 In re Paul Roemmele Bankr. S.D. Fla. Case No. 12-25492 Chapter 11 Petition filed June 26, 2012 In re Surinder Jain Bankr. N.D. Ill. Case No. 12-25489 Chapter 11 Petition filed June 26, 2012 In re East Fourth Street, LLC Bankr. D. Mass. Case No. 12-15439 Chapter 11 Petition filed June 26, 2012 See http://bankrupt.com/misc/mab12-15439.pdf Filed as Pro Se In re Mantachie Apartment Homes, LLC Bankr. N.D. Miss. Case No. 12-12596 Chapter 11 Petition filed June 26, 2012 See http://bankrupt.com/misc/msnb12-12596p.pdf http://bankrupt.com/misc/msnb12-12596c.pdf represented by: Craig M. Geno, Esq. CRAIG M. GENO, PLLC E-mail: cmgeno@cmgenolaw.com In re Myrtle Apartments, L.L.C. Bankr. N.D. Miss. Case No. 12-12597 Chapter 11 Petition filed June 26, 2012 See http://bankrupt.com/misc/msnb12-12597p.pdf http://bankrupt.com/misc/msnb12-12597c.pdf represented by: Craig M. Geno, Esq. CRAIG M. GENO, PLLC E-mail: cmgeno@cmgenolaw.com In re Rienzi Apartment Homes, LLC Bankr. N.D. Miss. Case No. 12-12598 Chapter 11 Petition filed June 26, 2012 represented by: Craig M. Geno, Esq. CRAIG M. GENO, PLLC E-mail: cmgeno@cmgenolaw.com In re 53 Burd Corp Bankr. S.D.N.Y. Case No. 12-23185 Chapter 11 Petition filed June 26, 2012 See http://bankrupt.com/misc/nysb12-23185.pdf represented by: Nicole L. Perskie, Esq. ROBERT S. LEWIS, P.C. E-mail: nperskie@gmail.com In re Performance Truck Lines, Inc. Bankr. W.D. Pa. Case No. 12-23220 Chapter 11 Petition filed June 26, 2012 See http://bankrupt.com/misc/pawb12-23220p.pdf http://bankrupt.com/misc/pawb12-23220c.pdf represented by: Eric E. Bononi, Esq. BONONI & COMPANY, P.C. E-mail: bankruptcy@bononilaw.com In re JJJ Real Estate Holdings, LLC Bankr. C.D. Calif. Case No. 12-15889 Chapter 11 Petition filed June 27, 2012 See http://bankrupt.com/misc/cacb12-15889.pdf represented by: Leslie Richards, Esq. Law Offices of Leslie Richards PC E-mail: ladylaw@leslierichards.com In re Thomas Byrne Bankr. D. Colo. Case No. 12-23553 Chapter 11 Petition filed June 27, 2012 In re Chip Shot Entertainment, LLC Bankr. M.D. Fla. Case No. 12-09835 Chapter 11 Petition filed June 27, 2012 See http://bankrupt.com/misc/flmb12-09835.pdf represented by: Marshall G. Reissman, Esq. The Reissman Law Group E-mail: marshall@reissmanlaw.com In re HRK Industries, LLC Bankr. M.D. Fla. Case No. 12-09869 Chapter 11 Petition filed June 27, 2012 See http://bankrupt.com/misc/flmb12-09869.pdf represented by: Barbara A. Hart, Esq. Stichter, Riedel, Blain & Prosser E-mail: bhart.ecf@srbp.com In re East Fourth Street, LLC Bankr. D. Mass. Case No. 12-15467 Chapter 11 Petition filed June 27, 2012 See http://bankrupt.com/misc/mab12-15467.pdf represented by: Craig F. Anderson, Esq. Law Office of Craig F. Anderson In re Randall Radkay Bankr. D.N.H. Case No. 12-12059 Chapter 11 Petition filed June 27, 2012 In re Intergrated Concepts & Housing Solutions, Ltd. Bankr. S.D.N.Y. Case No. 12-12728 Chapter 11 Petition filed June 27, 2012 See http://bankrupt.com/misc/nysb12-12728.pdf represented by: Christopher James Baum, Esq. Baum & Bailey, P.C. E-mail: cbaum@baumbaileylaw.com In re Tri Don, Inc. dba Jiffy Lube #1483 dba Jiffy Lube #1566 Bankr. M.D. Pa. Case No. 12-03814 Chapter 11 Petition filed June 27, 2012 See http://bankrupt.com/misc/pamb12-03814p.pdf See http://bankrupt.com/misc/pamb12-03814c.pdf represented by: Henry W. Van Eck, Esq. Mette, Evans, & Woodside E-mail: hwvaneck@mette.com In re Matthew Mauck Bankr. W.D. Pa. Case No. 12-23267 Chapter 11 Petition filed June 27, 2012 In re Kevin Thomas Bankr. E.D. Tex. Case No. 12-41701 Chapter 11 Petition filed June 27, 2012 In re Barbara Marino Bankr. S.D. Tex. Case No. 12-34761 Chapter 11 Petition filed June 27, 2012 In re Provest Realty Services, Inc. Bankr. N.D. Ill. Case No. 12-25868 Chapter 11 Petition filed June 27, 2012 See http://bankrupt.com/misc/ilnb12-25868.pdf represented by: Adam S. Tracy, Esq. THE TRACY FIRM, LTD. E-mail: at@tracyfirm.com In re Dhaniba Corporation Bankr. N.D. Ala. Case No. 12-82076 Chapter 11 Petition filed June 28, 2012 See http://bankrupt.com/misc/alnb12-82076p.pdf http://bankrupt.com/misc/alnb12-82076c.pdf represented by: Tazewell Shepard, Esq. TAZEWELL SHEPARD, P.C. E-mail: taze@tshepard.com In re Michael Sullivan Bankr. C.D. Calif. Case No. 12-17895 Chapter 11 Petition filed June 28, 2012 In re Asia Kitchen Bankr. C.D. Calif. Case No. 12-32415 Chapter 11 Petition filed June 28, 2012 In re Shahram Nemani Bankr. C.D. Calif. Case No. 12-32427 Chapter 11 Petition filed June 28, 2012 In re Rodolfo Cardona Bankr. N.D. Calif. Case No. 12-54839 Chapter 11 Petition filed June 28, 2012 In re Orazio Difante Bankr. S.D. Calif. Case No. 12-09034 Chapter 11 Petition filed June 28, 2012 In re Glenn Siegler Bankr. S.D. Fla. Case No. 12-25785 Chapter 11 Petition filed June 28, 2012 In re Michael Hunter Bankr. S.D. Fla. Case No. 12-25913 Chapter 11 Petition filed June 28, 2012 In re Robert Levitt Bankr. D. Kans. Case No. 12-21813 Chapter 11 Petition filed June 28, 2012 In re Sicily's, L.L.C. Bankr. E.D. La. Case No. 12-11945 Chapter 11 Petition filed June 28, 2012 See http://bankrupt.com/misc/laeb12-11945p.pdf http://bankrupt.com/misc/laeb12-11945c.pdf represented by: Gary K. McKenzie, Esq. STEFFES, VINGIELLO & MCKENZIE, LLC E-mail: gmckenzie@steffeslaw.com In re Gerard Gremillion Bankr. M.D. La. Case No. 12-10954 Chapter 11 Petition filed June 28, 2012 In re Robert Frueh Bankr. E.D. Mo. Case No. 12-46287 Chapter 11 Petition filed June 28, 2012 In re Bob Bubble Laundry Inc. Bankr. D. N.J. Case No. 12-26387 Chapter 11 Petition filed June 28, 2012 See http://bankrupt.com/misc/njb12-26387.pdf represented by: Jonathan Goodman, Esq. In re Javier Ontiveros Bankr. D. N.M. Case No. 12-12457 Chapter 11 Petition filed June 28, 2012 In re Burcam Capital II, LLC Bankr. E.D.N.C. Case No. 12-04729 Chapter 11 Petition filed June 28, 2012 See http://bankrupt.com/misc/nceb12-04729.pdf Filed Pro Se In re Asa Shiverick Bankr. N.D. Ohio Case No. 12-14813 Chapter 11 Petition filed June 28, 2012 In re Fox Chase Restoration, LLC. Bankr. E.D. Pa. Case No. 12-16147 Chapter 11 Petition filed June 28, 2012 See http://bankrupt.com/misc/paeb12-16147.pdf represented by: Carol B. McCullough, Esq. MCCULLOUGH EISENBERG, LLC E-mail: mlawoffice@aol.com In re J.C.'s Hilltop, Inc. dba Club VIP II Bankr. W.D. Pa. Case No. 12-23281 Chapter 11 Petition filed June 28, 2012 See http://bankrupt.com/misc/pawb12-23281.pdf represented by: James A. Prostko, Esq. PROSTKO & SANTILLAN, LLC E-mail: jprostko@fyi.net In re Dennis Stasa Bankr. W.D. Pa. Case No. 12-23298 Chapter 11 Petition filed June 28, 2012 In re Forest Hills Electronic Corporation dba FH America Bankr. D. P.R. Case No. 12-05062 Chapter 11 Petition filed June 28, 2012 See http://bankrupt.com/misc/prb12-05062.pdf represented by: Carmen D. Conde Torres, Esq. C. CONDE & ASSOC. E-mail: notices@condelaw.com In re Lee Highway Office, LLC Bankr. E.D. Tenn. Case No. 12-13339 Chapter 11 Petition filed June 28, 2012 See http://bankrupt.com/misc/tneb12-13339.pdf represented by: David J. Fulton, Esq. SCARBOROUGH, FULTON & GLASS E-mail: djf@sfglegal.com In re Willsita, Inc. Bankr. W.D. Tenn. Case No. 12-26799 Chapter 11 Petition filed June 28, 2012 See http://bankrupt.com/misc/tnwb12-26799.pdf represented by: Earnest E. Fiveash, Jr., Esq. EARNEST FIVEASH E-mail: earnietheattorney@gmail.com In re Kazbar LLC Bankr. D. Ariz. Case No. 12-14666 Chapter 11 Petition filed June 29, 2012 See http://bankrupt.com/misc/azb12-14666.pdf represented by: Gerald L. Shelley, Esq. FENNEMORE CRAIG, P.C. E-mail: gshelley@fclaw.com In re 2500 Group, LLC Bankr. D. Ariz. Case No. 12-14709 Chapter 11 Petition filed June 29, 2012 See http://bankrupt.com/misc/azb12-14709.pdf represented by: Mark J. Giunta, Esq. LAW OFFICE OF MARK J. GIUNTA E-mail: markgiunta@giuntalaw.com In re Fluoresco Lighting-Sign Maintenance Corp. Bankr. D. Ariz. Case No. 12-14719 Chapter 11 Petition filed June 29, 2012 See http://bankrupt.com/misc/azb12-14719.pdf represented by: Michael W. McGrath, Esq. MESCH CLARK & ROTHSCHILD E-mail: ecfbk@mcrazlaw.com In re Kayco Leasing, L.L.C. Bankr. D. Ariz. Case No. 12-14723 Chapter 11 Petition filed June 29, 2012 See http://bankrupt.com/misc/azb12-14723.pdf represented by: Michael W. McGrath, Esq. MESCH CLARK & ROTHSCHILD E-mail: ecfbk@mcrazlaw.com In re Ernesto Edraisa Bankr. S.D. Calif. Case No. 12-09217 Chapter 11 Petition filed June 29, 2012 In re The Aurora School Of Gymnastics, LLC Bankr. D. Colo. Case No. 12-23697 Chapter 11 Petition filed June 29, 2012 See http://bankrupt.com/misc/cob12-23697.pdf represented by: Stuart Borne, Esq. LYNCH & ROBBINS E-mail: sborne@lynchrobbins.com In re Bright Beginnings Academy, LLC Bankr. M.D. Fla. Case No. 12-08945 Chapter 11 Petition filed June 29, 2012 See http://bankrupt.com/misc/flmb12-08945.pdf represented by: Scott W. Spradley, Esq. LAW OFFICES OF SCOTT W. SPRADLEY, P.A. Email: scott.spradley@flaglerbeachlaw.com In re Chad Labonte Bankr. S.D. Fla. Case No. 12-26103 Chapter 11 Petition filed June 29, 2012 In re Wiley Leverett Bankr. M.D. Ga. Case No. 12-51716 Chapter 11 Petition filed June 29, 2012 In re Georgia Chopsticks, LLC Bankr. N.D. Ga. Case No. 12-66142 Chapter 11 Petition filed June 29, 2012 Filed as Pro Se In re James Barnes Bankr. S.D. Ga. Case No. 12-60356 Chapter 11 Petition filed June 29, 2012 In re McNeil Stokes Bankr. N.D. Ga. Case No. 12-66287 Chapter 11 Petition filed June 29, 2012 In re Barbara Abramowitz Bankr. E.D.N.Y. Case No. 12-44846 Chapter 11 Petition filed June 29, 2012 In re Peter Seirsdale Bankr. W.D. Pa. Case No. 12-23324 Chapter 11 Petition filed June 29, 2012 In re L.D.I., LLC Bankr. E.D. Tenn. Case No. 12-13338 Chapter 11 Petition filed June 29, 2012 See http://bankrupt.com/misc/tneb12-13338.pdf represented by: David J. Fulton, Esq. SCARBOROUGH, FULTON & GLASS E-mail: djf@sfglegal.com In re Xtreme Iron Hickory Creek, LLC Bankr. E.D. Tex. Case No. 12-41750 Chapter 11 Petition filed June 29, 2012 See http://bankrupt.com/misc/txeb12-41750.pdf represented by: Gregory W. Mitchell, Esq. THE MITCHELL LAW FIRM, L.P. E-mail: greg@mitchellps.com In re Randy Bell Bankr. N.D. Tex. Case No. 12-43635 Chapter 11 Petition filed June 29, 2012 In re Vaquero Ice, Inc. dba Junior's King Daddy Ice King Daddy Ice Bankr. W.D. Tex. Case No. 12-11482 Chapter 11 Petition filed June 29, 2012 See http://bankrupt.com/misc/txwb12-11482.pdf represented by: Frank B. Lyon, Esq. E-mail: franklyon@me.com In re Apex Industrial Equipment, Inc. Bankr. W.D. Va. Case No. 12-71225 Chapter 11 Petition filed June 29, 2012 See http://bankrupt.com/misc/vawb12-71225.pdf represented by: Andrew S. Goldstein, Esq. MAGEE GOLDSTEIN LASKY & SAYERS, P.C. E-mail: agoldstein@mglspc.com In re Byung Cho Bankr. C.D. Calif. Case No. 12-32768 Chapter 11 Petition filed June 30, 2012 In re FNP America, Inc. Bankr. N.D. Tex. Case No. 12-34201 Chapter 11 Petition filed June 30, 2012 See http://bankrupt.com/misc/txnb12-34201.pdf represented by: David R. Gibson, Esq. The Gibson Law Group Email: my.lawyer@sbcglobal.net In re Stanley Kim Bankr. N.D. Ill. Case No. 12-26540 Chapter 11 Petition filed July 1, 2012 In re Timothy Wilson Bankr. M.D. Tenn. Case No. 12-06072 Chapter 11 Petition filed July 1, 2012 In re Surjit Tumber Bankr. E.D. Calif. Case No. 12-32390 Chapter 11 Petition filed July 2, 2012 In re Max Warehousing, LLC Bankr. M.D. Fla. Case No. 12-09103 Chapter 11 Petition filed July 2, 2012 See http://bankrupt.com/misc/flmb12-09103.pdf represented by: Arvind Mahendru, Esq. Joseph E. Seagle, PA E-mail: am@seaglelaw.com In re GAP-2548 Bankr. S.D. Fla. Case No. 12-26183 Chapter 11 Petition filed July 2, 2012 Filed pro se In re ERJ, LLC Bankr. S.D. Ind. Case No. 12-07940 Chapter 11 Petition filed July 2, 2012 See http://bankrupt.com/misc/insb12-07940.pdf represented by: Guerino John Cento, Esq. Riley Bennett & Egloff, LLP E-mail: jcento@rbelaw.com In re Tindall & Company PC Bankr. E.D. Mich. Case No. 12-55836 Chapter 11 Petition filed July 2, 2012 See http://bankrupt.com/misc/mieb12-55836p.pdf See http://bankrupt.com/misc/mieb12-55836c.pdf represented by: Michael E. Tindall, Esq. E-mail: met@comcast.net In re Abel Rosas Bankr. D. Nev. Case No. 12-17794 Chapter 11 Petition filed July 2, 2012 In re Santiago Escobar-Vazquez Bankr. D. Nev. Case No. 12-17792 Chapter 11 Petition filed July 2, 2012 In re Sarsal Square Apartments, LLC Bankr. W.D. Tenn. Case No. 12-26885 Chapter 11 Petition filed July 2, 2012 See http://bankrupt.com/misc/tnwb12-26885.pdf represented by: Bo Luxman, Esq. Law Office of Bo Luxman E-mail: Bo@luxmanlaw.com In re Girirajan Mohan Bankr. E.D. Tex. Case No. 12-10415 Chapter 11 Petition filed July 2, 2012 In re James Martin Bankr. N.D. Tex. Case No. 12-34249 Chapter 11 Petition filed July 2, 2012 In re John Skelton Bankr. N.D. Tex. Case No. 12-34350 Chapter 11 Petition filed July 2, 2012 In re Splash Properties, LLC Bankr. N.D. Tex. Case No. 12-43702 Chapter 11 Petition filed July 2, 2012 See http://bankrupt.com/misc/txnb12-43702.pdf represented by: Eric A. Liepins, Esq. Eric A. Liepins, P.C. E-mail: eric@ealpc.com In re B. Valdez Construction & Development, Inc. fka B.V. Construction & Development, Inc. Bankr. S.D. Tex. Case No. 12-50178 Chapter 11 Petition filed July 2, 2012 See http://bankrupt.com/misc/txsb12-50178.pdf represented by: Carl Michael Barto, Esq. Law Office of Carl M. Barto E-mail: cmblaw@netscorp.net In re Shilling Properties, LLC Bankr. W.D. Tex. Case No. 12-60731 Chapter 11 Petition filed July 2, 2012 See http://bankrupt.com/misc/txwb12-60731.pdf represented by: David C. Alford, Esq. Pakis, Giotes, Page & Burleson E-mail: alford@pakislaw.com In re Harry Morrow Bankr. E.D. Va. Case No. 12-33978 Chapter 11 Petition filed July 2, 2012 ********* 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 ***