/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/120821.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, August 21, 2012, Vol. 16, No. 232 Headlines 1691 TANGIERS: Case Summary & 4 Largest Unsecured Creditors 829 REALTY: Chapter 11 Case Dismissed by Court ACCREDITED MEMBERS: Reports $24,000 Net Income in Second Quarter ADINO ENERGY: Reports $258,000 Net Income in Second Quarter ALIMERA SCIENCES: Had $4.7 Million Net Loss in Second Quarter AMARU INC: Incurs $243,000 Loss from Operations in 2nd Quarter AMBAC FINANCIAL: OCI Files Rules on Payment of Policy Claims AMBAC FINANCIAL: Wins OK to Buy D&O Policy From Wells Fargo AMBAC FINANCIAL: Committee Has OK to Retain Tavakoli, et al. AMBAC FINANCIAL: Has $811-Mil. Net Loss in Second Quarter AMERICAN AIRLINES: Modifies Pilots' Pact to Satisfy Objections AMERICAN DEFENSE: Delays Form 10-Q for Second Quarter AMERICAN LUBEFAST: Case Summary & 20 Largest Unsecured Creditors AMERICAN PATRIOT: Delays Form 10-Q for Second Quarter AMERICAN PETRO-HUNTER: Incurs $41,000 Net Loss in Second Quarter AMERICAN ORIENTAL: Pomerantz Notes of Lead Plaintiffs Deadline APPLIED DNA: Incurs $1.4 Million Net Loss in June 30 Quarter APPLIED MINERALS: Incurs $1.5 Million Net Loss in Second Quarter ARKANOVA ENERGY: Posts $259,700 Net Loss in June 30 Quarter ATP OIL & GAS: Files for Chapter 11 Reorganization ATP OIL & GAS: Case Summary & 30 Largest Unsecured Creditors AVANTAIR INC: Names Stephen Wagman President, Carla Stucky CFO AXION INTERNATIONAL: Delays 2nd Qtr. Form 10-Q Due to Restatement AXION INTERNATIONAL: To Restate 2011 and 2012 Periodic Reports BALQON CORP: Delays Form 10-Q for Second Quarter BEACON ENTERPRISE: Had $3.8 Million Net Loss in June 30 Quarter BELFOR HOLDINGS: Moody's Corrects May 21 Rating Release BERGEN DEVELOPMENT: Case Summary & 3 Unsecured Creditors BERNARD L. MADOFF: Citigroup Seeks Dismissal of Swap-Linked Claims BIOCORAL INC: Incurs $466,500 Net Loss in Second Quarter BIOFUELS POWER: Delays Form 10-Q for Second Quarter BON-TON STORES: Incurs $45 Million Net Loss in July 28 Quarter BOOMERANG SYSTEMS: Incurs $7.2 Million Net Loss in June 30 Qtr. BROADCAST INTERNATIONAL: Sells Additional $900,000 Senior Notes BROADCAST INTERNATIONAL: Extends Contract with Largest Customer BROWNIE'S MARINE: Delays Form 10-Q for Second Quarter BUSHWICK BH: Voluntary Chapter 11 Case Summary CAESARS ENTERTAINMENT: Prices $750 Million Senior Notes Offering CAESARS ENTERTAINMENT: Bank Debt Trades at 12% Off CAMBRIDGE HEART: Incurs $1.3 Million Net Loss in Second Quarter CAPITOL CITY: Delays Form 10-Q for Second Quarter CARONDELET MERAMEC: Case Summary & 8 Largest Unsecured Creditors CATASYS INC: Incurs $2.2 Million Net Loss in Second Quarter CCC INFORMATION: S&P Gives 'BB-' Rating on $40MM Incremental Loan CENTRAL ENERGY: Had $275,000 Net Loss in Second Quarter CENTRAL FEDERAL: Incurs $684,000 Net Loss in Second Quarter CEREPLAST INC: Had $3.9 Million Net Loss in Second Quarter CHILE MINING: Delays Second Quarter Form 10-Q for for Audit CHINA 3C: Had $3.4 Million Net Loss in Second Quarter CHINA GREEN: Delays Form 10-Q for Second Quarter CHINA TELETECH: Reports $971,600 Net Income in Second Quarter CHINA TEL GROUP: Delays Form 10-Q for Second Quarter CHISEN ELECTRIC: Had $10.5 Million Net Loss in June 30 Quarter CIRCUS AND ELDORADO: Files Second Plan Supplement CLARION RIVERVIEW: Case Summary & 2 Largest Unsecured Creditors COMMONWEALTH BIOTECH: Delays Form 10-Q for Second Quarter COMMUNITY WEST: Posts $591,000 Net Loss in Second Quarter COMMUNICATION INTELLIGENCE: Incurs $746,000 Net Loss in Q2 COMPETITIVE TECHNOLOGIES: Delays Form 10-Q for Second Quarter CRYOPORT INC: Incurs $1.5 Million Net Loss in June 30 Quarter CUI GLOBAL: Kjell Qvale Discloses 7.7% Equity Stake CYCLONE POWER: Incurs $883,669 Net Loss in Second Quarter DAIS ANALYTIC: Reports $299,500 Net Income in Second Quarter DELTA OIL & GAS: Had $185,600 Net Loss in Second Quarter DEWEY & LEBOEUF: Deal Serves as Bankruptcy Blueprint, Experts Say DEWEY & LEBOEUF: Ex-Partners Commit $70MM to Clawback Deal DEX MEDIA EAST: Bank Debt Trades at 45% Off in Secondary Market DIRECT MARKETS: Posts $9 Million Net Loss in Second Quarter DRINKS AMERICAS: Incurs $783,000 Net Loss in Fiscal 2012 DUTCH GOLD: Delays Form 10-Q for Second Quarter DYNEGY INC: Has Stalking Horse; Aug. 31 Hearing on Sale Rules EAST COAST: Incurs $1.5 Million Net Loss in Second Quarter EASTBRIDGE INVESTMENT: Incurs $171,700 Net Loss in 2nd Quarter EAT AT JOE'S: Incurs $44,000 Net Loss in Second Quarter EDIETS.COM INC: Delays Form 10-Q for Second Quarter EGPI FIRECREEK: Delays Form 10-Q for Second Quarter EL PASO HOLDCO: Moody's Raises Sr. Secured Debt Ratings to 'Ba2' ELITE PHARMACEUTICALS: Incurs $10.5-Mil. Net Loss in June 30 Qtr. ELMIRA DOWNTOWN: Case Summary & 20 Largest Unsecured Creditors EMERSON HOLDINGS: Case Summary & 20 Largest Unsecured Creditors EON COMMUNICATIONS: Receives Deficiency NASDAQ Letter EPAZZ INC: Delays Form 10-Q for Second Quarter for Review ESP RESOURCES: Had $649,100 Net Loss in Second Quarter FANNIE MAE: Treasury to Amend Terms of Bailout FENTURA FINANCIAL: Reports $144,000 Net Income in Second Quarter FIBERTOWER NETWORK: Taps Cole Schotz as Special Counsel FILLPOINT, LLC: Voluntary Chapter 11 Case Summary FIRSTBANK FINANCIAL: Files for Chapter 7 Liquidation FOCUS BRANDS: S&P Keeps 'B' Corp. Credit Rating; Outlook Stable FUEL DOCTOR: Delays Form 10-Q for Second Quarter GATEHOUSE MEDIA: Bank Debt Trades at 68% Off in Secondary Market GENELINK INC: Incurs $962,600 Net Loss in Second Quarter GEOMET INC: Transitions Trading of Common Stock to OTC Markets GEOMET INC: Incurs $53.9 Million Net Loss in Second Quarter GEOPETRO RESOURCES: Has Accumulated Deficit of $47.7 Million GETTY PETROLEUM: Committee Fine-Tunes First Amended Plan GLOBAL ARENA: Incurs $462,000 Net Loss in Second Quarter GRANDPARENTS.COM INC: Posts $1.8-Mil. Net Loss in Second Quarter GRAYMARK HEALTHCARE: Had $5.3 Million Net Loss in Second Quarter GREENMAN TECHNOLOGIES: Incurs $1.8-Mil. Net Loss in Fiscal Q3 GRYPHON GOLD: Had $379,100 Net Loss in June 30 Quarter GUANGZHOU GLOBAL: Reports $972,000 Net Income in 2nd Quarter GUIDED THERAPEUTICS: Incurs $1.2 Million Net Loss in 2nd Quarter HAWKER BEECHCRAFT: Bank Debt Trades at 29% Off in Secondary Market HAWKER BEECHCRAFT: Seeks Longer Exclusivity During Superior Talks HIGH UP: Case Summary & 20 Largest Unsecured Creditors HOMELAND SECURITY: Delays Form 10-Q for Second Quarter ICEWEB INC: Had $4 Million Net Loss in June 30 Quarter IDO SECURITY: Delays Form 10-Q for Second Quarter IDO SECURITY: Delays Form 10-Q for Second Quarter IDQ HOLDINGS: S&P Affirms 'B' Corp. Credit Rating; Outlook Neg IMAGEWARE SYSTEMS: Posts $1 Million Net Income in Second Quarter INFINITY ENERGY: Delays Form 10-Q for Second Quarter INFUSION BRANDS: Signs Merger Agreement with Ronco INKSURE TECHNOLOGIES: 10-Q Filing for 2nd Quarter Will be Delayed INNOVATIVE FOOD: Delays Form 10-Q for Second Quarter INTEGRATED ENVIRONMENTAL: Incurs $550,000 Net Loss in 2nd Quarter INTELLICELL BIOSCIENCES: Common Stock Trading on OTCQB INTERACTIVE DATA: S&P Reinstates 'B' Rating on $700MM Sr. Notes INTERMETRO COMMUNICATIONS: Reports $191,000 Income in Q2 INTERNAL FIXATION: Delays 2nd Qtr. Form 10-Q for Ongoing Analysis INTERNATIONAL COMMERCIAL: Posts $112,000 Net Income in Q2 INTERNATIONAL FUEL: Incurs $434,000 Net Loss in Second Quarter INTRALINKS HOLDINGS: S&P Cuts CCR to 'B+' on Lower Profitability IRVINE SENSORS: Reports $6.9 Million Net Income in July 1 Quarter JEFFERSON COUNTY, AL: Birmingham to Have Own Suit on Sewers JENNE HILL: Wells Fargo to be Paid in One Year, Not Five JERRY'S NUGGET: U.S. Bank Objecting to Cash Use, Priming of Lien JERRY'S NUGGET: Hiring Gordon Silver as Chapter 11 Counsel JMS HOLDINGS: Case Summary & 4 Largest Unsecured Creditors KRYSTAL INFINITY: Case Summary & 20 Largest Unsecured Creditors KAMAS DEVELOPMENT: Case Summary & Unsecured Creditor LEHIGH VALLEY: Voluntary Chapter 11 Case Summary LOCAL TV: S&P Raise CCR to 'B+' on Solid Performance LUCID INC: Incurs $2.3 Million Net Loss in Second Quarter MARINA DISTRICT: S&P Lowers CCR to 'B'; Outlook is Stable MARKETING WORLDWIDE: Delays Form 10-Q for Second Quarter MEDICAL CONNECTIONS: Incurs $741,000 Net Loss in Second Quarter MEDYTOX SOLUTIONS: Borrows Additional $525,000 from TCA Global MERCATOR MINERALS: Reports $22.1-Mil. Net Income in Second Quarter MDU COMMUNICATIONS: Had $1.7 Million Net Loss in June 30 Quarter MIT HOLDING: Delays Form 10-Q for Second Quarter for Review MERITAS SCHOOLS: Moody's Affirms 'B2' CFR; Outlook Negative MF GLOBAL: Trustee to Work With Customers Suing Corzine MF GLOBAL: Corzine, Execs Likely to Escape Criminal Charges MMRGLOBAL INC: Robert Lorsch Discloses 20% Equity Stake MMRGLOBAL INC: Incurs $1.4 Million Net Loss in Second Quarter MORGANS HOTEL: Inks 20-Year Management Pact for Delano Moscow MUNICIPAL CORRECTIONS: Inducted Into Chapter 11 in Las Vegas NEDAK ETHANOL: Delays Q2 Form 10-Q Due to Financial Woes NEPHROS INC: Had $754,000 Net Loss in Second Quarter NETWORK CN: Reports $1.2 Million Net Income in Second Quarter NEW INVESTMENTS: Case Summary & 7 Largest Unsecured Creditors NEW PEOPLES: Tier 1 Leverage Ratio Below 4% Requirement NORTHCORE TECHNOLOGIES: Incurs C$556,000 Loss in Second Quarter NUTRACEA: Had $630,000 Net Loss in Second Quarter NUVILEX INC: Incurs $1.8 Million Net Loss in Fiscal 2012 OCTAVIAR ADMINISTRATION: Sept. 6 Hearing on Chapter 15 Petition ONCOVISTA INNOVATIVE: Had $250,500 Net Loss in Second Quarter OPTIONS MEDIA: Delays Form 10-Q for Second Quarter OSAGE EXPLORATION: Incurs $613,000 Net loss in Second Quarter PACIFIC GOLD: Incurs $1.7 Million Net Loss in Second Quarter PAYMENT DATA: Delays Form 10-Q for Second Quarter PEREGRINE FINANCIAL: CEO Pleads Not Guilty in Fraud Case PINNACLE FOODS: Moody's Rates $450 Million Term Loan F 'Ba3' PMI GROUP: Seeks Extension of Exclusivity Period to Oct. 19 POINT BLANK: Court Approves Restructuring Services From Deloitte POLY SHIELD: Had $221,500 Net Loss in Second Quarter POSITIVEID CORPORATION: Delays Form 10-Q for Second Quarter POTOMAC SUPPLY: Lumber Producer Sets Sept. 19 Auction PRESSURE BIOSCIENCES: Incurs $1.1 Million Net Loss in Q2 PROBE MANUFACTURING: Reports $71,400 Net Income in Second Quarter PURADYN FILTER: Posts $237,100 Net Loss in Second Quarter QUAMTEL INC: Delays Form 10-Q for Second Quarter RALPH BH: Voluntary Chapter 11 Case Summary RESIDENTIAL CAPITAL: Court Approves Deloitte as Auditor RESIDENTIAL CAPITAL: Wins OK for KPMG LLP as Tax Advisor RESIDENTIAL CAPITAL: Wins OK for Bradley Arant as Special Counsel RESIDENTIAL CAPITAL: Panel Can Hire AlixPartners as Fin'l Advisor REVEL AC: S&P Downgrades CCR to 'CCC' on Weak Performance REVEL ENTERTAINMENT: Bank Debt Trades at 25% Off RGIS HOLDINGS: S&P Keeps 'B+' Rating on Tranche C Term Loan ROCK POINTE: Elsaesser Named as Mediator for DMARC, Spokane Issues ROTECH HEALTHCARE: S&P Lowers CCR to 'CCC-' on Weak Liquidity ROYAL SEATING: Voluntarily Dismisses Chapter 11 Case RUDEN MCCLOSKY: Plan to Pay 5% to Unsecured Creditors SAINTS MEMORIAL: Moody's Raises Rating on 1993 Bonds From 'Caa1' SEACOR HOLDINGS: Moody's Affirms 'Ba1' CFR; Outlook Negative SEARS HOLDINGS: Incurs $133 Million Net Loss in Second Quarter SEARS HOLDINGS: S&P Affirms 'CCC+' Corporate Credit Rating SEDONA DEVELOPMENT: Sept. 4 Hearing on Amended Competing Plans SMART ONLINE: Incurs $1 Million Net Loss in Second Quarter SOUTHEAST BANKING: Ch. 11 Trustee Files Notice of Sale SUMMERWIND PARTNERS: Case Summary & 20 Largest Unsec Creditors SUNRISE REAL ESTATE: Delays Form 10-Q for Second Quarter SYLVAIN ANALYTICS: Case Summary & 20 Largest Unsecured Creditors SYMS CORP: Wins Approval to Sell Florida Property for $4.5 Million T BANCSHARES: Reported $460,000 Net Income in Second Quarter T3 MOTION: Incurs $1.52 Million Net Loss in Second Quarter TCIM SERVICES: Call Centers Fetch $5.4 Million in Approved Sale TELKONET INC: Reports $157,000 Net Income in Second Quarter THERMOENERGY CORP: Issues $828,750 Shares and Warrants THERMOENERGY CORP: Incurs $2.5 Million Net Loss in Second Quarter TITANIUM GROUP: Delays Form 10-Q for June 30 Quarter TRANSATLANTIC PETROLEUM: Reports $22.9-Mil. Net Income in 2nd Qtr. TRANS ENERGY: Incurs $2.7 Million Net Loss in Second Quarter TRANS-LUX CORP: Delays Form 10-Q for Second Quarter TRIBUNE CO: Bank Debt Trades at 26% Off in Secondary Market TRIDENT MICROSYSTEMS: Seeks Court OK of Settlement With Creditors TUCSON & PIMA: Moody's Confirms 'Ba3' Rating on Mortgage Bonds TXU CORP: Bank Debt Trades at 31% Off in Secondary Market U.S. NATIONAL SLAVERY: Chapter 11 Case Dismissed by Judge ULURU INC: Had $858,100 Net Loss in Second Quarter UNI-PIXEL INC: Shareholders Elect Seven Directors to Board UNI-PIXEL INC: Closes $12.1 Million Offering of Common Stock UNI-PIXEL INC: James Pallotta Holds 399,021 Warrants UNILAVA CORP: Delays Form 10-Q for Second Quarter UNIQUE BROADBAND: Julian, McGoey Fail in Bid for Funds UNIVERSAL BIOENERGY: Delays Form 10-Q for Second Quarter U-SWIRL INC: Had $42,400 Net Loss in Second Quarter VANITY EVENTS: Delays Form 10-Q for Second Quarter VERTICAL COMPUTER: Incurs $209,000 Net Loss in Second Quarter VHGI HOLDINGS: Delays Form 10-Q for Second Quarter VIASPACE INC: Incurs $273,000 Net Loss in Second Quarter VIEW SYSTEMS: Delays Form 10-Q for Second Quarter VOICE ASSIST: Delays Form 10-Q for Second Quarter VUZIX CORP: Delays Form 10-Q for Second Quarter WESTINGHOUSE SOLAR: Had $2.2 Million Net Loss in Second Quarter WEST CORP: Closes $970 Million Senior Secured Credit Facilities WIZARD WORLD: Had $2.7 Million Net Loss in Second Quarter WIZZARD SOFTWARE: Had $330,100 Net Loss in Second Quarter WM SIX FORKS: Lenox Mortgage Objects to Cash Collateral Use WM SIX FORKS: Wants to Hire Analytical Consultants as Appraiser WM SIX FORKS: Sec. 341 Creditors' Meeting Set for Sept. 18 WORLD SURVEILLANCE: Reports $872,000 Net Income in 2nd Quarter WOUND MANAGEMENT: Delays Form 10-Q for Second Quarter Z TRIM HOLDINGS: Incurs $477,000 Net Loss in Second Quarter * Committee Floats Bankruptcy Rule Changes in Light of Stern * Calif. Cities at Greater Risk of Bankruptcy, Report Warns * Moody's Examines Why Some California Cities Choose Bankruptcy * Nobina Pushes 2012 Global Default Tally to 52 Issuers * Large Companies With Insolvent Balance Sheet ********* 1691 TANGIERS: Case Summary & 4 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: 1691 Tangiers LLP 3942 Octagon Rd North Las Vegas, NV 89030 Bankruptcy Case No.: 12-19542 Chapter 11 Petition Date: August 16, 2012 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: Steven L. Yarmy, Esq. 520 S. Sixth Street Las Vegas, NV 89101 Tel: (702) 586-3513 Fax: (702) 586-3690 E-mail: sly@stevenyarmylaw.com Scheduled Assets: $1,000,000 Scheduled Liabilities: $2,532,679 A copy of the Company's list of its four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb12-19542.pdf The petition was signed by Louis V. Carnesale, managing partner. 829 REALTY: Chapter 11 Case Dismissed by Court ---------------------------------------------- The U.S. Bankruptcy Court has entered an order dismissing the Chapter 11 case of 829 Realty LLC. The order notes the dismissal won't affect the Debtor's obligation to pay quarterly fees to the Office of the U.S. Trustee for the period Feb. 24 through July 25, the date the dismissal order was entered. As reported in the Troubled Company Reporter on June 15, 2012, PD Family Credit Shelter Trust filed a motion asking the Court to (a) dismiss the Chapter 11 case; or, in the alternative, (b) appoint PD Trust as the responsible party for the Debtor; or, (c) appointing a chapter 11 trustee. PD Trust asserts the case was commenced in bad faith. According to PD Trust, Reuven Finkelstein, along with his family members and their associated entities, caused the involuntary petition to be filed in bad faith. To satisfy the requirement under 11 U.S.C. Sec. 303 that at minimum three creditors join in the involuntary filing, it appears that the Finkelstein Family misrepresented some or all of the other Petitioning Creditors' consent to filing the Involuntary Petition. PD Trust also requested that sanctions be imposed against those members of the Finkelstein Family who commenced the involuntary proceeding in bad faith, including the attorney's fees incurred by PD Trust in conjunction with the bad faith proceeding. The judge held a hearing on the dismissal July 24. About 829 Realty LLC Brooklyn, New York-based 829 Realty LLC was placed in involuntary Chapter 11 bankruptcy (Bankr. E.D.N.Y. Case No. 12-41415) on Feb. 28, 2012. Judge Jerome Feller presides over the case. Four creditors, allegedly owed $27,900 in the aggregate, filed the petition. The creditors are Arsh General Construction, Low Voltage Solutions, Empire State Supply, and Full Line Hardware. The petitioning creditors are represented by Gary F. Herbst, Esq., at LaMonica Herbst and Maniscalco. The Bankruptcy Court entered an Order for Relief under Chapter 11 on March 30, 2012. Pursuant to the Order, the Chapter 11 Plan and Disclosure Statement are due by July 30, 2012. The Debtor hired Marc L. Hamroff, Esq., and Theresa A. Driscoll, Esq., at Moritt Hock & Hamroff LLP, as Chapter 11 counsel. The Debtor disclosed $19,564,699 in assets and $7,191,109 in liabilities as of the Chapter 11 filing. ACCREDITED MEMBERS: Reports $24,000 Net Income in Second Quarter ---------------------------------------------------------------- Hangover Joe's Holding Corporation, formerly known as Accredited Members Holding Corporation, filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $24,005 on $467,172 of total net revenue for the three months ended June 30, 2012, compared with a net loss of $640,314 on $420,965 of total net revenue for the same period during the prior year. The Company reported a net loss of $132,253 on $913,102 of total net revenue for the six months ended June 30, 2012, compared with a net loss of $993,427 on $1.01 million of total net revenue for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $1.62 million in total assets, $1.90 million in total liabilities and a $275,527 total deficit. A copy of the Form 10-Q is available for free at: http://is.gd/w5GTIv About Accredited Members Colorado Springs, Colo.-based Accredited Members Holding Corporation currently provides various services and products both directly and through its subsidiary corporations Accredited Members, Inc. ("AMI"), and AMHC Managed Services ("AMMS"), which provides management services to third parties including services typically provided by executive level personnel on a fix-contract basis. Through August 2011, the Company provided services through its subsidiary World Wide Premium Packers, Inc. ("WWPP"). As reported in the TCR on April 9, 2012, GHP Horwath, P.C., in Denver, Colorado, expressed substantial doubt about Accredited Members' 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 reported a net loss of approximately $3,461,000 and used net cash in operating activities of approximately $2,125,000 in 2011, and has an accumulated deficit of approximately $7,570,000 at Dec. 31, 2011. ADINO ENERGY: Reports $258,000 Net Income in Second Quarter ----------------------------------------------------------- Adino Energy Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $257,935 on $112,216 of total revenues for the three months ended June 30, 2012, compared with net income of $43,191 on $146,705 of total revenues for the same period a year ago. The Company reported a net loss of $263,381 on $210,949 of total revenues for the six months ended June 30, 2012, compared with a net loss of $450,281 on $171,458 of total revenues for the same period during the prior year. The Company previously reported a net loss of $1.31 million in 2011, compared with a net loss of $277,802 in 2010. The Company's balance sheet at June 30, 2012, showed $2.13 million in total assets, $4.95 million in total liabilities, and a $2.82 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/klOg59 About Adino Energy Based in Houston, Texas, Adino Energy Corporation (OTC BB: ADNY) -- http://www.adinoenergycorp.com/-- through its wholly owned subsidiary Intercontinental Fuels, LLC, specializes in fuel terminal operations for retail, wholesale, and governmental suppliers. In its audit report for the 2011 results, M&K CPAS, PLLC, in Houston, Texas, 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 from operations and maintains a working capital deficit. ALIMERA SCIENCES: Had $4.7 Million Net Loss in Second Quarter ------------------------------------------------------------- Alimera Sciences, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $4.7 million for the three months ended June 30, 2012, compared with a net loss of $5.2 million for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $9.1 million, compared with a net loss of $9.9 million for the same period of 2011. The Company does not expect the generation of revenue until 2013. The Company's balance sheet at June 30, 2012, showed $23.7 million in total assets, $6.9 million in total liabilities, and stockholders' equity of $16.8 million. A copy of the Form 10-Q is available for free at: http://is.gd/BhYylb Alpharetta, Ga.-based Alimera Sciences, Inc., is a biopharmaceutical company that specializes in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company is presently focused on diseases affecting the back of the eye, or retina, because the Company believes these diseases are not well treated with current therapies and represent a significant market opportunity. * * * As reported in the TCR on April 5, 2012, Deloitte & Touche LLP, in Atlanta, Georgia, expressed substantial doubt about Alimera Sciences' 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 of the Company's recurring net losses, negative cash flow from operations, accumulated deficit, and current lack of a commercial product. AMARU INC: Incurs $243,000 Loss from Operations in 2nd Quarter -------------------------------------------------------------- Amaru, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing loss from operations of $242,576 on $754 of total revenue for the three months ended June 30, 2012, compared with a loss from operations of $363,743 on $1,096 of total revenue for the same period a year ago. The Company reported loss from operations of $448,969 on $3,113 of total revenue for the six months ended June 30, 2012, compared with a loss from operations of $681,538 on $4,239 of total revenue for the same period during the prior year. Amaru reported a net loss from operations of $1.37 million in 2011, compared with a net loss from operations of $1.50 million in 2010. The Company's balance sheet at June 30, 2012, showed $2.89 million in total assets, $3.39 million in total liabilities and a $498,118 total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/0kcWn2 About Amaru Inc. Singapore-based Amaru, Inc., a Nevada corporation, is in the business of broadband entertainment-on-demand, streaming via computers, television sets, PDAs (Personal Digital Assistant) and the provision of broadband services. The Company's business includes channel and program sponsorship (advertising and branding); online subscriptions, channel/portal development (digital programming services); content aggregation and syndication, broadband consulting services, broadband hosting and streaming services and E-commerce. After auditing the 2011 results, Wilson Morgan, LLP, in Irvine, California, noted that the Company has sustained accumulated losses from operations totalling $40.7 million at Dec. 31, 2011. This condition and the Company's lack of significant revenue, raise substantial doubt about the Company's ability to continue as going concern, the auditors said. AMBAC FINANCIAL: OCI Files Rules on Payment of Policy Claims ------------------------------------------------------------ Ambac Assurance Corporation related in an August 2, 2012 press statement that the Wisconsin Commissioner of Insurance, acting as the Rehabilitator of the Segregated Account of Ambac Assurance (the Segregated Account) has promulgated and filed with the Circuit Court for Dane County, Wisconsin (the Rehabilitation Court) the Rules Governing the Submission, Processing and Partial Payment of Policy Claims in accordance with the June 4, 2012 Interim Cash Payment Order (the Policy Claim Rules). The Policy Claim Rules provide guidance to all Segregated Account policyholders regarding the process for submission, processing and partial payment of policy claims of the Segregated Account (Policy Claims). On June 4, 2012, the Rehabilitation Court issued an order (the Interim Cash Payment Order) approving a motion by the Rehabilitator relating to the commencement of interim partial distributions on Policy Claims. The Rehabilitator has filed the Policy Claim Rules in order to facilitate an efficient and orderly process for the submission, evaluation, processing, and partial payment of Policy Claims in accordance with the Interim Cash Payment Order. Policyholders may now commence submitting Policy Claims in accordance with the Policy Claim Rules. Policyholders that submit permitted Policy Claims in any calendar month are eligible to receive 25% of the amount of the Policy Claim from the Segregated Account on or around the 20th day of the following calendar month. Accordingly, policyholders that submit permitted Policy Claims during the month of August 2012, in accordance with the Policy Claim Rules, will receive 25% of the amount of each permitted Policy Claim from the Segregated Account on September 20, 2012. A copy of the Policy Claim Rules is available at http://www.ambacpolicyholders.com/ No decision has been announced with respect to effectuating or amending the Segregated Account Rehabilitation Plan or whether surplus notes will be issued with respect to the remaining balance of unpaid Policy Claims. The Rehabilitator has previously announced that more specific information regarding the status of the Segregated Account Rehabilitation Plan, including possible modifications, will be provided as soon as appropriate. Ambac Assurance is a guarantor of public finance and structured finance obligations, and is the principal operating subsidiary of Ambac Financial Group, Inc. (Ambac). About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed US$30.05 billion in total assets, US$31.47 billion in total liabilities, and a US$1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of (US$394.5 million) and total liabilities of US$1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about US$1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. Bankruptcy Judge Shelley C. Chapman entered an order confirming the Fifth Amended Plan of Reorganization of Ambac Financial Group, Inc. on March 14, 2012. The Plan provides for the full payment of secured claims and 8.5% to 13.2% recovery for general unsecured claims. Upon consummation of the plan of reorganization, Ambac's existing common stock will be cancelled and extinguished and the equity holders will not be entitled to receive, and will not retain, any property or interest on account of the common stock. Ambac has said it is not currently able to estimate when it will be able to consummate such plan. Until the plan is consummated and Ambac emerges from bankruptcy, Ambac will continue to operate in the ordinary course of business as "debtor-in-possession" in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's common stock trades in the over-the-counter market under ticker symbol ABKFQ. Bankruptcy Creditors' Service, Inc., publishes AMBAC BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Ambac Financial Group and the restructuring proceedings of Ambac Assurance Corp. (http://bankrupt.com/newsstand/or 215/945- 7000). AMBAC FINANCIAL: Wins OK to Buy D&O Policy From Wells Fargo ----------------------------------------------------------- Judge Shelley Chapman granted Ambac Financial Group, Inc., authority to purchase a run-off director and officer tail insurance policy from Wells Fargo Insurance Services and to pay all amounts related to it. The Tail Coverage will cover claims asserted against the Directors and Officers, including the legal costs associated with defending against such claims, for six years following the effective date of the Plan, for acts and omissions occurring prior to the expiration of the D&O Insurance Policies. In accordance with its Cost Allocation Agreement with principal operating subsidiary Ambac Assurance Corporation, the Debtor will be responsible for roughly $496,000 of the estimated Renewal Premium and roughly $1,818,000 of the estimated Tail Premium. About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed US$30.05 billion in total assets, US$31.47 billion in total liabilities, and a US$1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of (US$394.5 million) and total liabilities of US$1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about US$1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. Bankruptcy Judge Shelley C. Chapman entered an order confirming the Fifth Amended Plan of Reorganization of Ambac Financial Group, Inc. on March 14, 2012. The Plan provides for the full payment of secured claims and 8.5% to 13.2% recovery for general unsecured claims. Bankruptcy Creditors' Service, Inc., publishes AMBAC BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Ambac Financial Group and the restructuring proceedings of Ambac Assurance Corp. (http://bankrupt.com/newsstand/or 215/945- 7000). AMBAC FINANCIAL: Committee Has OK to Retain Tavakoli, et al. ------------------------------------------------------------ The Official Committee of Unsecured Creditors in Ambac Financial's bankruptcy case won Bankruptcy Court permission to retain Nader Tavakoli, Victor Mandel and Jeffrey S. Stein as consultants. The Consultants will help out Ambac Financial Group, Inc. and the Committee in ensuring an efficient transition of the Debtor's current management to its new management. In line with this, the Consultants will be provided with certain company information and will be allowed to conduct discussions with members of the Current Board. The Consultants will also advise the Committee on information they get from interaction with the Current Board. The Consultants will be paid a $22,500 fee per calendar quarter, and will be reimbursed of all reasonable, out-of-pocket expenses. All amount due and obligations owed to the Consultants under the Consulting Agreement will constitute expenses of administration of the Chapter 11 case entitled to a first priority under Section 503(b) of the Bankruptcy Code, and will not be discharged by any order confirming the Plan or otherwise. The U.S. Trustee retains all rights to object to the Consultants' interim and final fee applications. About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed US$30.05 billion in total assets, US$31.47 billion in total liabilities, and a US$1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of (US$394.5 million) and total liabilities of US$1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about US$1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. Bankruptcy Judge Shelley C. Chapman entered an order confirming the Fifth Amended Plan of Reorganization of Ambac Financial Group, Inc. on March 14, 2012. The Plan provides for the full payment of secured claims and 8.5% to 13.2% recovery for general unsecured claims. Bankruptcy Creditors' Service, Inc., publishes AMBAC BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Ambac Financial Group and the restructuring proceedings of Ambac Assurance Corp. (http://bankrupt.com/newsstand/or 215/945- 7000). AMBAC FINANCIAL: Has $811-Mil. Net Loss in Second Quarter --------------------------------------------------------- Ambac Financial Group, Inc. announced on August 9, 2012, a second quarter 2012 net loss of $811.1 million, or a net loss of $2.68 per share. This compares to a second quarter 2011 net loss of $102.4 million, or a net loss of $0.34 per share. Relative to second quarter 2011, second quarter 2012 results were primarily driven by higher net loss and loss expenses, a net loss relating to the extinguishment of Ambac Assurance surplus notes, and higher derivative product losses, partially offset by higher net realized investment gains. Second Quarter 2012 Summary Relative to the second quarter of 2011: * Net premiums earned increased $3.8 million to $103.0 million * Net investment income declined $1.8 million to $93.8 million * Net realized investment gains (losses) increased $69.6 million to a gain of $67.1 million * Net realized gains (losses) on the extinguishment of debt declined $180.9 million to a loss of $177.7 million * Derivative product losses increased $58.5 million to $124.1 million * Financial guarantee net loss and loss expenses increased $545.0 million to $741.4 million As of June 30, 2012, unrestricted cash, short-term securities and bonds at Ambac, the holding company, totaled $33.9 million, a decline of $0.1 million from March 31, 2012. Financial Results Net Premiums Earned Net premiums earned for the second quarter of 2012 were $103.0 million, up 4% from $99.3 million earned in the second quarter of 2011. Net premiums earned include accelerated premiums, resulting from refundings, calls, and other policy accelerations recognized during the quarter. Accelerated premiums were $35.9 million in the second quarter of 2012, up 217% from $11.3 million in the second quarter of 2011. The increase in accelerated premiums was primarily driven by an increase in the overall volume of calls of Ambac insured debt within the public finance market due to low interest rates. Normal net premiums earned, which exclude accelerated premiums, were $67.1 million in the second quarter of 2012, down 24% from $88.0 million in the second quarter of 2011. The decline in normal net premiums earned was primarily due to the continued run-off of the insured portfolio as a result of transaction terminations, refundings, and scheduled maturities. Net Investment Income For the combined financial guarantee, financial services, and corporate investment portfolios, net investment income for the second quarter of 2012 was $93.8 million, a decrease of 2% from $95.6 million earned in the second quarter of 2011. Financial Guarantee net investment income rose 2% from $88.0 million to $90.0 million, benefiting from a higher average invested asset base and higher yielding assets in the portfolio for the three months ended June 30, 2012. Compared to the second quarter of 2011, the 2012 Financial Guarantee invested asset base has benefited from the reinvestment of interest and principal receipts, and premiums collected, as well as the impact of the moratorium on segregated account claims payments, partially offset by payments made to commute certain financial guarantee exposures and to repurchase surplus notes. Higher average yields on the portfolio resulted from the ongoing shift in the portfolio mix away from tax-exempt municipals toward taxable securities, including Ambac-insured securities. Financial Services investment income for the three months ended June 30, 2012 was $3.8 million, a decline of 50% from $7.6 million for the second quarter of 2011. The decline in Financial Services investment income was driven primarily by the effects of a smaller portfolio of investments as Ambac's investment agreement obligations continue to run off. Net Realized Investment Gains (Losses) Net realized investment gains for the second quarter of 2012 were $67.1 million, an increase of $69.6 million over net realized investment losses of $2.5 million during the second quarter of 2011. The realized investment gains in the second quarter of 2012 were largely the result of portfolio repositioning and relative value trades executed in response to market conditions. Net Realized Gains (Losses) on Extinguishment of Debt Net realized losses on the extinguishment of debt were $177.7 million for the second quarter of 2012 as compared to gains of $3.1 million during the second quarter of 2011. During June 2012, Ambac Assurance exercised options to repurchase surplus notes having an aggregate par value of $789.2 million for a cash payment of $188.4 million. Certain of these options were free- standing derivatives for accounting purposes and were carried at fair value as assets on the Company's balance sheet. The $177.7 million net realized loss on extinguishment of debt represents the difference between the consideration paid and the net carrying value of the stand-alone derivative assets and the repurchased surplus notes and accrued interest liabilities. The remaining options to acquire surplus notes have expired. Other Income Other income for the three months ended June 30, 2012 was $36.1 million, as compared to $9.2 million for the three months ending June 30, 2011. The increase was primarily driven by mark-to- market gains of $39.0 million relating to Ambac's option to call certain bank surplus notes that were free-standing derivatives for accounting purposes, as discussed above. As these options were exercised in June 2012, only changes in fair value of these options through the date of exercise are included in other income. Derivative Products For the second quarter of 2012, the derivatives product business produced a net loss of $124.1 million compared to net loss of $65.6 million for the second quarter of 2011. The derivative products portfolio has been positioned to record gains in a rising interest rate environment in order to provide a hedge against the impact of rising rates on certain exposures within the financial guarantee insurance portfolio. As a result of declining interest rates, mark-to-market movements on these hedges contributed losses of $96.8 million during the second quarter of 2012, compared to losses of $63.2 million during the second quarter of 2011. Additionally, customer related swaps contributed $27.3 million of losses in the second quarter of 2012 versus $2.4 million of losses for the second quarter of 2011. These losses primarily resulted from adverse changes in interest rates, projected inflation rates and foreign exchange rates, which influence the fair value of certain customer swaps, net of the impact of changes to Ambac's own credit risk. The results include positive valuation adjustments pertaining to Ambac's own credit risk of $28.9 million for the second quarter of 2012 and $4.6 million for the second quarter of 2011. Financial Guarantee Loss Reserves Loss and loss expenses for the second quarter of 2012 was $741.4 million as compared to $196.4 million for the second quarter of 2011. The net loss for the three months ended June 30, 2012, was driven by higher estimated losses in the first-lien and second- lien RMBS portfolio, as well as on certain structured insurance, asset backed and municipal credits. Loss and loss expenses paid, including commutations, net of recoveries from all policies, amounted to a net recovery of $18.4 million during the second quarter of 2012 versus a $23.4 million net recovery for the same period in 2011. The amount of actual claims paid during each period was impacted by the payment moratorium imposed on March 24, 2010, by the court overseeing the rehabilitation of the Segregated Account. Claims presented to Ambac Assurance and unpaid during the second quarter of 2012 amounted to $491.2 million versus $345.0 million during the same period in 2011. Since the establishment of the Segregated Account in March 2010, a total of $3,653.6 million of claims have been presented and remain unpaid. Loss reserves (gross of reinsurance and net of subrogation recoveries) for all RMBS insurance exposures as of June 30, 2012, were $4,769.8 million, including claims on RMBS exposures that have been presented since March 24, 2010, and unpaid as a result of the claims moratorium. RMBS reserves as of June 30, 2012, are net of $2,770.2 million of estimated representation and warranty breach remediation recoveries. The estimate of remediation recoveries related to material representation and warranty breaches is up 4% from $2,655.4 million reported as of March 31, 2012. Ambac has initiated and will continue to initiate lawsuits and other methods to achieve compliance with the repurchase obligations in the securitization documents with respect to sponsors who disregard their obligations to repurchase loans. Expenses Underwriting and operating expenses rose in the second quarter of 2012 to $33.6 million from $15.5 million during the second quarter of 2011. The increase in underwriting and operating expenses is primarily related to higher compensation, premises, premium taxes and legal fees. The increase in premises related expense is attributable to the benefit realized in the second quarter of 2011 from the termination and settlement of the Company's lease on its headquarters. The increase in compensation expense is due to stock compensation forfeitures in the second quarter of 2011. Interest expense for the combined Financial Guarantee and Financial Services sectors was largely unchanged during the period. Reorganization Items, Net For purposes of presenting an entity's financial evolution during a Chapter 11 reorganization, the financial statements for periods including and after filing the Chapter 11 petition distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Reorganization items in three months ended June 30, 2012 were $0.8 million, down from $6.5 million for the three months ended June 30, 2011, primarily due to lower professional fees incurred following the confirmation of the bankruptcy plan of reorganization. Balance Sheet and Liquidity Total assets declined during the second quarter of 2012 to $26.6 billion from $27.4 billion at March 31, 2012. The decrease in total assets was primarily due to declines in (i) the consolidated non-VIE investment portfolio to $6.7 billion from $6.9 billion, (ii) VIE assets to $16.6 billion from $16.9 billion, (iii) insurance premium receivables to $1.8 billion from $1.9 billion, and (iv) derivative assets to $133 million from $273 million. During the second quarter of 2012, the fair value of the financial guarantee non-VIE investment portfolio fell by $80.6 million to $6.1 billion (amortized cost of $5.6 billion) as of June 30, 2012. The portfolio consists primarily of high quality municipal and corporate bonds, asset backed securities, U.S. Treasuries, Agency RMBS, as well as non-agency RMBS, including Ambac Assurance guaranteed RMBS. The fair value of the financial services investment portfolio declined $176.6 million to $587.1 million during the second quarter. Liabilities subject to compromise totaled roughly $1.7 billion at June 30, 2012. The amount of liabilities subject to compromise represents Ambac's estimate at June 30, 2012, of known or potential pre-petition claims to be addressed in connection with the Chapter 11 reorganization. As of June 30, 2012, liabilities subject to compromise consist of the following (in thousands): Debt obligations and accrued interest payable $1,690,312 Other 17,099 Consolidated liabilities subject to compromise $1,707,411 Overview of Ambac Assurance Statutory Results As of June 30, 2012, Ambac Assurance reported policyholder surplus of $100.0 million, down from $232.9 million as of March 31, 2012. The Segregated Account reported statutory policyholder surplus of $(333.2) million as of June 30, 2012, down from $105.1 million as of March 31, 2012. The decline in Ambac Assurance's policyholder surplus was due to (i) contributions to contingency reserves of $233.2 million as a result of adverse development of non-defaulted policies that remain in the general account of Ambac Assurance; (ii) insurance losses of $222.2 million; (iii) net intercompany loan impairments of $131.0 million, primarily from the interest rate swap business; and (iv) the extinguishment of $789.2 million of surplus notes for a cash payment of $188.4 million. These declines were partially offset by (a) net investment income, (b) earned premiums, and (c) a $463.3 million reduction in the liabilities assumed by Ambac Assurance from the Segregated Account for losses on policies allocated to the Segregated Account. The reduction of these liabilities is pursuant to a prescribed accounting practice issued by the Wisconsin Office of the Commissioner of Insurance, which maintains Ambac Assurance's policyholder surplus at a minimum level of $100 million. Ambac Assurance's claims-paying resources amounted to roughly $6.2 billion as of June 30, 2012, down $215.5 million from $6.4 billion at March 31, 2012. This excludes Ambac Assurance UK Limited's claims-paying resources of roughly $1.1 billion. The decrease in claims paying resources was primarily attributable to the repurchase of surplus notes and a lower present value of future installment premiums as of June 30, 2012. * * * Ambac Financial filed on August 15, 2012, statutory financial statements as of the quarter ended June 30, 2012, for its subsidiary, Ambac Assurance, a full-text copy of which is available for free at : http://bankrupt.com/misc/AAC_2ndQtr2012Rpt.pdf AFG filed with the U.S. Securities and Exchange Commission on August 9, 2012, a quarterly report on Form 10-Q for the period ended June 30, 2012, a copy of which is available for free at http://is.gd/7FOIUt Ambac Financial Group Inc. and Subsidiaries Consolidated Balance Sheets As of June 30, 2012 ASSETS Investments: Fixed income securities, at fair value $5,390,290,000 Fixed income securities pledged as collateral, at fair value 287,660,000 Short-term investments 1,010,059,000 Other 100,000 ----------------- Total investments 6,687,109,000 Cash 49,012,000 Restricted cash 2,500,000 Receivable for securities sold 112,013,000 Investment income due and accrued 42,651,000 Premium receivables 1,829,874,000 Reinsurance recoverable on paid and unpaid losses 169,961,000 Deferred ceded premium 197,437,000 Subrogation recoverable 442,097,000 Deferred acquisition costs 211,907,000 Loans 10,153,000 Derivative assets 132,914,000 Other assets 103,804,000 Variable interest entity assets Fixed income securities, at fair value 2,162,062,000 Restricted cash 2,276,000 Investment income due and accrued 4,034,000 Loans 14,446,047,000 Derivative assets - Other assets 5,940,000 ----------------- Total assets $26,611,791,000 ================= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Liabilities subject to compromise $1,707,411,000 Unearned premiums 3,138,275,000 Losses and loss expense reserve 7,607,663,000 Ceded premiums payable 98,279,000 Obligations under investment agreements 424,840,000 Obligations under investment repurchase agreements 18,276,000 Current taxes 96,752,000 Long-term debt 144,036,000 Accrued interest payable 192,984,000 Derivative liabilities 394,040,000 Other liabilities 94,678,000 Payable for securities purchased 5,328,000 Variable interest entity liabilities: Accrued interest payable 3,645,000 Long-term debt 14,376,872,000 Derivative liabilities 2,063,809,000 Other liabilities 282,000 ----------------- Total liabilities 30,367,170,000 Stockholders' deficit: Ambac Financial Group, Inc. Preferred stock - Common stock 3,080,000 Additional paid-in capital 2,172,027,000 Accumulated other comprehensive income (loss) 415,593,000 Accumulated deficit (6,598,384,000) Common stock held in treasury at cost (410,755,000) ----------------- Total Ambac Financial Group, Inc. stockholders' deficit (4,416,439,000) Non-controlling interest 661,060,000 ----------------- Total stockholders' deficit (3,755,379,000) ----------------- Total liabilities and stockholders' deficit $26,611,791,000 ================= Ambac Financial Group, Inc. and Subsidiaries Consolidated Statements of Operations For Three Months Ended June 30, 2012 Revenues: Net premiums earned $103,042,000 Net investment income 93,836,000 Other-than-temporary impairment losses Total other-than-temporary impairment losses (7,492,000) Portion of loss recognized in other comprehensive income 5,164,000 ----------------- Net other-than-temporary impairment losses recognized in earnings (2,328,000) Net realized investment gains 67,067,000 Change in fair value of credit derivatives: Realized (losses) and gains and other settlements 3,074,000 Unrealized gains (losses) (10,488,000) ----------------- Net change in fair value of credit derivatives (7,415,000) Derivative products (124,091,000) Net mark-to-market(losses) gains on non- trading derivative contracts - Net realized (losses) gains on extinguishment of debt (177,745,000) Other income 36,137,000 Income (loss) on variable interest entities 5,536,000 ----------------- Total revenues before expenses and reorganization items (5,961,000) ----------------- Expenses: Financial Guarantee: Losses and loss expenses 741,411,000 Underwriting and operating expenses 33,567,000 Interest expense on surplus notes 31,855,000 ----------------- Total expenses before reorganization items 806,833,000 ----------------- Pre-tax loss from continuing operations before reorganization items (812,794,000) Reorganization items 767,000 ----------------- Pre-tax loss from continuing operations (813,561,000) Provision (benefit) for income taxes (211,000) ----------------- Net loss (813,350,000) Less: net gain attributable to the noncontrolling interest (2,232,000) ----------------- Net loss attributable to common shareholders ($811,118,000) ================= Ambac Financial Group Inc. and Subsidiaries Consolidated Statements of Cash Flow For the Six Months Ended June 30, 2012 (Unaudited) Cash flows from operating activities: Net loss attributable to common shareholders ($557,798,000) Noncontrolling interest in subsidiaries' earnings (2,230,000) ----------------- Net loss ($560,028,000) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,546,000 Amortization of bond premium and discount (121,602,000) Reorganization items 3,228,000 Share-based compensation - Current income taxes 1,043,000 Deferred acquisition costs 11,603,000 Unearned premiums, net (295,106,000) Loss and loss expense, net 771,247,000 Ceded premiums payable (17,276,000) Investments income due and accrued 2,677,000 Premium receivables 198,605,000 Accrued interest payable 53,425,000 Net mark-to-market (gains) losses 20,964,000 Net realized investment gains (67,459,000) Losses (gains) on extinguishment of debt 177,745,000 Other-than-temporary impairment charges 5,399,000 Variable interest entity activities (20,756,000) Other, net (129,916,000) ----------------- Net cash provided by (used in) operating activities 35,429,000 ----------------- Cash flows from investing activities: Proceeds from sales of bonds 427,281,000 Proceeds from matured bonds 521,807,000 Purchases of bonds (448,691,000) Change in short-term investments (226,988,000) Loans, net 8,843,000 Change in swap collateral receivable 26,391,000 Other, net (7,343,000) ----------------- Net cash provided by investing activities 301,300,000 ----------------- Cash flows from financing activities: Paydown of variable interest entity secured borrowing (10,636,000) Proceeds from issuance of investment and payment agreements - Payments for investment and repurchase agreement draws (104,634,000) Payment of extinguishment of longterm debt (188,446,000) Net cash collateral paid/received - ----------------- Net cash used in financing activities (303,716,000) ----------------- Net cash flow 33,013,000 ----------------- Cash and cash equivalents at January 1 49,012,000 ----------------- Cash and cash equivalents at June 30 $15,999,000 ================= About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed US$30.05 billion in total assets, US$31.47 billion in total liabilities, and a US$1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of (US$394.5 million) and total liabilities of US$1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about US$1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. Bankruptcy Judge Shelley C. Chapman entered an order confirming the Fifth Amended Plan of Reorganization of Ambac Financial Group, Inc. on March 14, 2012. The Plan provides for the full payment of secured claims and 8.5% to 13.2% recovery for general unsecured claims. Bankruptcy Creditors' Service, Inc., publishes AMBAC BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Ambac Financial Group and the restructuring proceedings of Ambac Assurance Corp. (http://bankrupt.com/newsstand/or 215/945- 7000). AMERICAN AIRLINES: Modifies Pilots' Pact to Satisfy Objections -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that AMR Corp., the parent of American Airlines Inc., modified the proposal for altering the pilots' union contract and scheduled a hearing on Sept. 4 where it will ask the bankruptcy judge to impose a new collective bargaining agreement on the Allied Pilots Association. The report recounts that last week, Bankruptcy Judge Sean H. Lane declined to allow AMR's proposed changes to the contract because it contained two provisions beyond what he saw the airline as needing. Judge Lane ruled that unlimited pilot furloughs and code-sharing were beyond AMR's business plan and more than the company demonstrably needed to reorganize successfully. AMR, according to the report, responded on Aug. 17 by filing a revised union contract where new provisions on pilot furloughs were withdrawn "entirely." The airline also trimmed back the proposal on code-sharing, where AMR would sell seats on flights flown by other airlines, and vice versa. In his opinion last week, Judge Lane said AMR could return to court when it made changes in the contract to comply with his ruling. The report notes that on code-sharing, AMR's new proposal would allow selling tickets on flights operated by other airlines so long as the other airlines' flights have no more than 50% of the available seat miles on AMR's own schedule. It would also allow an expansion of existing code-sharing with Alaska Airlines and Hawaiian Airlines. The report also discloses that last week the official creditors' committee filed papers for authority to intervene in the lawsuit between AMR and the official committee representing the company's retirees. In the suit, AMR claims it has the unilateral right to terminate retiree health benefits because they aren't vested. Given that retiree health benefits represent a $1.4 billion liability, the creditors' panel contends it has a right to participate in view of the "gravity of the issue presented." according to the report The report relates that the retirees' committee and AMR already filed their first set of papers asking the judge to rule one way or the other. The dispute is scheduled for hearing in bankruptcy court in December after more papers are filed. 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 DEFENSE: Delays Form 10-Q for Second Quarter ----------------------------------------------------- American Defense Systems, Inc., informed the U.S. Securities and Exchange Commission that it will be delayed in filing its quarterly report on Form 10-Q for the period ended June 30, 2012. The Company said the information necessary to submit the Quarterly Report could not be completed on a timely basis without unreasonable effort or expense to the Company in its ordinary course of business. About American Defense Hicksville, N.Y.-based American Defense Systems, Inc., is a defense and security products company engaged in three business areas: customized transparent and opaque armor solutions for construction equipment and tactical and non-tactical transport vehicles used by the military; architectural hardening and perimeter defense, such as bullet and blast resistant transparent armor, walls and doors. The Company also operates the American Institute for Defense and Tactical Studies. The Company is in the process of negotiating a sale or disposal of the portion of its business related to the operation of a live-fire interactive tactical training range location in Hicksville, N.Y. The portion of the Company's business related to vehicle anti-ram barriers such as bollards, steel gates and steel wedges that deploy out of the ground was sold as of March 22, 2011. After auditing the 2011 financial statements, Marcum LLP, in Melville, New York, 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 $867,000, an accumulated deficit of $17.0 million, shareholders' deficiency of $235,000 and cash on hand of $132,000. The Company had operating losses of $3.30 million and $3.69 million for the years ended Dec. 31, 2011 and 2010, respectively. The Company had income from continuing operations for the year ended Dec. 31, 2011, of $6.83 million, including a gain of $12.8 million on the redemption of mandatorily redeemable preferred stock, and a loss from continuing operations for the year ended Dec. 31, 2010, of $8.17 million. The Company had net income (losses) of $9.37 million and $(9.38 million) for the years ended Dec. 31, 2011 and 2010, respectively. The Company's balance sheet at March 31, 2012, showed $2.10 million in total assets, $2.70 million in total liabilities, all current, and a $604,504 total shareholders' deficiency. AMERICAN LUBEFAST: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: American Lubefast, LLC 1550 N. Brown Road, Suite 140 Lawrenceville, GA 30043 Bankruptcy Case No.: 12-70554 Chapter 11 Petition Date: August 16, 2012 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Judge: C. Ray Mullins Debtor's Counsel: Anna Mari Humnicky, Esq. Karen Fagin White, Esq. COHEN POLLOCK MERLIN & SMALL 3350 Riverwood Parkway, Suite 1600 Atlanta, GA 30339 Tel: (770) 857-4770 Tel: (770) 858-1288 E-mail: ahumnicky@cpmas.com kfwhite@cpmas.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 Affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- American Lubefast Franchising, Inc. 12-70555 08/16/12 Lubefast Remote, LLC 12-70557 08/16/12 Assets: $1,000,001 to $10,000,000 Debts: $1,000,001 to $10,000,000 A copy of American Lubefast's list of its 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb12-70554.pdf A copy of Lubefast Remote's list of its three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb12-70557.pdf The petitions were signed by Tim Embry, president of Am Lubefast Franchising Inc., Debtor's sole member. AMERICAN PATRIOT: Delays Form 10-Q for Second Quarter ----------------------------------------------------- American Patriot Financial Group, Inc., was unable, without unreasonable effort and expense, to file its quarterly report on Form 10-Q for the quarter ended June 30, 2012, on a timely basis because the Company could not complete the preparation of the required information without unreasonable effort and expense because of the Company's limited staff and other resources. As a result, the Company's senior management has not been able to prepare the necessary information to be included in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2012. About American Patriot Based in Greenville, Tenn., American Patriot Financial Group, Inc. is a one-bank holding company formed as a Tennessee corporation to own the shares of American Patriot Bank. The Bank is the only subsidiary of the Corporation. American Patriot Bank commenced operations as a state chartered bank on July 9, 2001. The Bank had total assets of roughly $118 million at Dec. 31, 2009. The Bank is not a member of the Federal Reserve System. The Bank's customer base consists primarily of small to medium- sized business retailers, manufacturers, distributors, land developers, contractors, professionals, service businesses and local residents. On Aug. 18, 2010, the Company received from the Federal Deposit Insurance Corporation, a Supervisory Prompt Corrective Action Directive, dated August 17, 2010, due to American Patriot Bank's "significantly undercapitalized" status. The Directive requires that the Bank submit an acceptable capital restoration plan on or before August 31, 2010, providing that, among other things, at a minimum, the Bank will restore and maintain its capital to the level of "adequately capitalized." In its audit report for the 2011 results, Hazlett, Lewis & Bieter, PLLC, in Chattanooga, Tennessee, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses for the past five years resulting in a retained deficit of $7.15 million at Dec. 31, 2011. At Dec. 31, 2011 and 2010, the Company and its subsidiary were significantly undercapitalized based on regulatory standards and has consented to an Order to Cease and Desist with its primary federal regulator that requires, among other provisions, that it achieve regulatory capital thresholds that are significantly in excess of its current actual capital levels. The Company's nonperforming assets have increased significantly during 2011 and 2010 related primarily to deterioration in the credit quality of its loans collateralized by real estate. The Company, at the holding company level, has a note payable that was due Feb. 28, 2011, which is now in default. This note is securitized by 100 percent of the stock of the subsidiary. The Company reported a net loss of $1.18 million in 2011, compared with a net loss of $2.29 million in 2010. The Company's balance sheet at March 31, 2012, showed $92.82 million in total assets, $91.75 million in total liabilities and $1.06 million in total stockholders' equity. AMERICAN PETRO-HUNTER: Incurs $41,000 Net Loss in Second Quarter ---------------------------------------------------------------- American Petro-Hunter Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $41,048 on $72,954 of revenue for the three months ended June 30, 2012, compared with a net loss of $915,492 on $74,533 of revenue for the same period a year ago. The Company reported a net loss of $945,349 on $187,677 of revenue for the six months ended June 30, 2012, compared with a net loss of $1.47 million on $120,202 of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $1.81 million in total assets, $1.08 million in total liabilities, all current, and $730,938 in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/PQu6na About American Petro-Hunter Scottsdale, Ariz.-based American Petro-Hunter, Inc., is an oil and natural gas exploration and production (E&P) company with current projects in Kansas and Oklahoma. As of March 15, 2012, the Company has two producing wells in Kansas and six producing wells in Oklahoma. It also has rights for the exploration and production of oil and gas on an aggregate of approximately 6,230 acres in those states. This includes the Company's core assets with rights to explore on 2,000 acres in Oklahoma, near the town of Ripley on the North Oklahoma Mississippi Project and a forty percent (40%) working interest in 3,000 acres in south-central Oklahoma (the "South Oklahoma Lease"). In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2011, Weaver Martin & Samyn, LLC, in Kansas City, Missouri, expressed substantial doubt about American Petro-Hunter's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and is dependent upon the continued sale of its securities or obtaining debt financing for funds to meet its cash requirements. The Company reported a net loss of $2.7 million on $317,900 of revenue for the year 2011, compared with a net loss of $2.5 million on $92,800 of revenue for 2010. AMERICAN ORIENTAL: Pomerantz Notes of Lead Plaintiffs Deadline -------------------------------------------------------------- The Pomerantz Firm says shareholders of American Oriental Bioengineering, Inc. are reminded of the federal securities class action filed against AOBI and certain of its officers. The securities class action (12-cv-05789), filed in United States District Court, Central District of California, is on behalf of all persons who purchased or otherwise acquired securities between Nov. 9, 2009 and June 15, 2012, inclusive. This securities class action seeks to recover damages caused by the Company's violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. If you are a shareholder who purchased AOBI securities during the Class Period, you have until, Aug. 22, 2012 to ask the Court to appoint you as lead plaintiff for the class. AOBI is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of pharmaceutical and healthcare products. The Complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose that: (1) certain of the Company's capsule products maintained chrome levels far exceeding humanly tolerable limits; (2) the Company's financial statements contained material inconsistencies; (3) the Company's internal controls over financial reporting were deficient; and (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times. On March 16, 2012, the Company's independent registered public accounting firm, Ernst & Young Hua Ming informed the Company's Audit Committee of certain inconsistencies in the Company's financial statements during its audit for the fiscal year 2011. On April 19, 2012, the Company disclosed that four of its five manufacturing subsidiaries were undergoing 'onsite short notice inspections' by the Chinese State Food and Drug Administration after discovering thirteen types of capsule products with chrome levels far exceeding humanly tolerable limits. After being delisted by the New York Stock Exchange on May 25, 2012, the Company's common stock plummeted $0.94 or nearly 62%, to close at $0.58 when it resumed trading over the counter on May 29, 2012. On June 15, 2012, the Company disclosed that it had dismissed E&Y as its independent registered public accounting firm. In addition, the Company announced that E&Y had withdrawn its audit reports for the Company's financial statements for the years ended 2009 and 2010, after E&Y concluded that it could no longer rely on management's representations in connection with (a) its audits of the financial statements for years ended December 2009 and 2010; (b) its audit of the effectiveness of the Company's internal control over financial reporting as of Dec. 31, 2009 and 2010; and (c) its review of the Company's unaudited interim financial statements for the quarters from Sep. 30, 2009 through Sep. 30, 2011. The Pomerantz Firm -- http://www.pomerantzlaw.com/-- with offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. About American Oriental AOBI is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of pharmaceutical and healthcare products. After being delisted by the New York Stock Exchange on May 25, 2012, the Company's common stock plummeted $0.94 or nearly 62%, to close at $0.58 when it resumed trading over the counter on May 29, 2012. On June 15, 2012, the Company disclosed that it had dismissed E&Y as its independent registered public accounting firm. In addition, the Company announced that E&Y had withdrawn its audit reports for the Company's financial statements for the years ended 2009 and 2010, after E&Y concluded that it could no longer rely on management's representations in connection with (a) its audits of the financial statements for years ended December 2009 and 2010; (b) its audit of the effectiveness of the Company's internal control over financial reporting as of Dec. 31, 2009 and 2010; and (c) its review of the Company's unaudited interim financial statements for the quarters from Sept. 30, 2009 through Sept. 30, 2011. APPLIED DNA: Incurs $1.4 Million Net Loss in June 30 Quarter ------------------------------------------------------------ Applied DNA Sciences, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.42 million on $528,574 of revenue for the three months ended June 30, 2012, compared with a net loss of $2.15 million on $229,710 of revenue for the same period a year ago. The Company reported a net loss of $5.38 million on $1.56 million of revenue for the nine months ended June 30, 2012, compared with a net loss of $6.09 million on $687,970 of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $1.97 million in total assets, $653,910 in total liabilities, all current, and $1.31 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/eLsnaz About Applied DNA Stony Brook, N.Y.-based Applied DNA Sciences, Inc., is principally devoted to developing DNA embedded biotechnology security solutions in the United States. RBSM LLP, in New York, noted in its report on Applied DNA's fiscal 2011 financial results that the Company has suffered recurring losses and does not have significant cash or other material assets, nor does it have an established source of revenues sufficient to cover its operations, which raises substantial doubt about its ability to continue as a going concern. The Company reported a net loss of $10.51 million for the fiscal year ended Sept. 30, 2011, compared with a net loss of $7.91 million during the prior year. APPLIED MINERALS: Incurs $1.5 Million Net Loss in Second Quarter ---------------------------------------------------------------- Applied Minerals, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.56 million on $96,228 of revenue for the three months ended June 30, 2012, compared with a net loss of $1.97 million on $18,699 of revenue for the same period during the prior year. The Company reported a net loss of $3.67 million on $151,630 of revenue for the six months ended June 30, 2012, compared with a net loss of $3.67 million on $63,167 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $9.20 million in total assets, $1.68 million in total liabilities and $7.52 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/5alkoe First Quarter Form 10-Q Amended Applied Minerals amended its quarterly report on Form 10-Q for the period ended March 31, 2012. During the second quarter of 2012, in valuing its warrant derivative, the Company utilized a binomial lattice model after previously utilizing a Black-Scholes model for its warrants issued on Dec. 22, 2011. This more complex, lattice model valuation, resulted in a restatement of the Company's first quarter 2012 condensed consolidated financial statements for the following adjustments: a $2,249,500 adjustment to Gain/Loss on revaluation of warrants and the Warrant derivative and a $780,000 reclassification between the Warrant derivative and Additional Paid-In-Capital. This resulted in a $2,249,500 decrease to net loss and $0.03 increase of earnings per share for the first quarter of 2012. The aforementioned adjustments are non-cash and do not affect the Company's operating income, but the Company revised its valuation methodology to conform to SEC guidance concerning equity valuations with down-round provisions and call options. In addition, the Company has reclassified certain accounts, such as Land and Mining Property, Property & Equipment, Cost of Sales and Other Income, to conform to the Company's current presentation on its second quarter 2012 condensed consolidated financial statements. A copy of the amended Quarterly Report on Form 10-Q/A is available for free at http://is.gd/wPQXdN About Applied Minerals New York City-based Applied Minerals, Inc. (OTC BB: AMNL) is a leading global producer of halloysite clay used in the development of advanced polymer, catalytic, environmental remediation, and controlled release applications. The Company operates the Dragon Mine located in Juab County, Utah, the only commercial source of halloysite clay in the western hemisphere. Halloysite is an aluminosilicate clay that forms naturally occurring nanotubes. The Company reported a net loss attributable to the Company of $7.48 million in 2011, a net loss attributable to the Company of $4.76 million in 2010, and a net loss attributable to the Company of $6.76 million in 2009. Going Concern The Company has incurred material recurring losses from operations. At March 31, 2012, the Company had a total accumulated deficit of approximately $43,084,500. For the three months ended March 31, 2012, and 2011, the Company sustained net losses from exploration stage before discontinued operations of approximately $4,056,700 and $1,695,100, respectively. The Company said that these factors indicate that it may be unable to continue as a going concern for a reasonable period of time. The Company's continuation as a going concern is contingent upon its ability to generate revenue and cash flow to meet its obligations on a timely basis and management's ability to raise financing or dispose of certain non-core assets as required. If successful, this will mitigate the factors that raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning At Dec. 31, 2011, and 2010, the Company had accumulated deficits of $39,183,632 and $31,543,411, respectively, in addition to limited cash and unprofitable operations. For the year ended Dec. 31, 2011, and 2010, the Company sustained net losses before discontinued operations of $7,476,864 and $4,891,525, respectively. As of March 15, 2012, the Company has not commercialized the Dragon Mine and has had to rely on cash flow generated from the sale of stock and convertible debt to fund its operations. If the Company is unable to fund its operations through the commercialization of the Dragon Mine, the sale of equity or debt or a combination of both, it may have to file bankruptcy. ARKANOVA ENERGY: Posts $259,700 Net Loss in June 30 Quarter ----------------------------------------------------------- Arkanova Energy Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $259,760 on $213,634 of revenue for the three months ended June 30, 2012, compared with net income of $405,049 on $362,831 of revenue for the three months ended June 30, 2011. For the nine months ended June 30, 2012, the Company had net income of $4.5 million on $747,079 of revenue, compared with a net loss of $1.8 million on $1.0 million of revenue for the nine months ended June 30, 2011. Gain on settlement of debt increased to $5.6 million for the nine months ended June 30, 2012, compared to $nil for the nine months ended June 30, 2011, due to the partial settlement of debt by transferring oil and gas properties. The Company's balance sheet at June 30, 2012, showed $2.8 million in total assets, $8.9 million in total liabilities, and a stockholders' deficit of $6.1 million. Arkanova has incurred losses of $24.6 million since inception and has a negative working capital of $8.3 million at June 30, 2012. As reported in the TCR on Jan. 3, 2012, MaloneBailey, LLP, in their report on Arkanova's financial statements for the year ended Sept. 30, 2011, said that the Company has incurred losses since inception, which raises substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available for free at: http://is.gd/HqZ0ye Austin, Tex.-based Arkanova Energy Corporation is primarily engaged in the acquisition, exploration and development of oil and gas resource properties. Arkanova is currently participating in oil and gas exploration activities in Arkansas, Colorado and Montana. All of Arkanova's oil and gas properties are located in the United States. ATP OIL & GAS: Files for Chapter 11 Reorganization -------------------------------------------------- ATP Oil & Gas Corporation disclosed that it has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. ATP has taken this action in order to undertake a comprehensive financial restructuring. ATP expects its oil and gas operations to continue in the ordinary course throughout the reorganization process and sees the reorganization as a helpful step towards deleveraging the company to position it for future development of its assets. ATP believes that the rights and protections afforded it by a court-supervised reorganization process, including the ability to access new financing, will provide ATP with the time and flexibility it needs to fully address its financial challenges and position ATP for long-term viability. The primary reason for the reorganization began with the Macondo well blowout in April 2010 and the imposition beginning in May 2010 of the moratoria on drilling and related activities in the Gulf of Mexico. These events prevented ATP from bringing to production in 2010 and in early 2011 six development wells that would have added significant production to ATP. As of the date of this filing, three of these wells are yet to be drilled. Had ATP been allowed to drill and complete these wells, ATP believes it would have provided a material production change in 2010 continuing to today. This projected increase in production should have substantially increased cash flows, shareholder value and allowed the company the ability to withstand normal operational issues experienced by owners of oil and gas properties in the Gulf of Mexico. In addition, these incremental cash flows would have mitigated or prevented the need to enter into many of the financings ATP has closed since the imposition of the moratoria-- financings that require relatively high rates of return and monthly payments. ATP has obtained a commitment for $617.6 million of debtor-in- possession (DIP) financing from members of its existing senior lender group, which will provide $250 million of additional funds and refinance into the DIP facility the amounts owed to those existing first lien lenders that participate in providing additional funds. Upon approval by the Bankruptcy Court, the new financing and cash generated from ATP's ongoing operations will be used to support the business and ATP's efforts to negotiate and implement a reorganization plan acceptable to its stakeholders. ATP has filed various 'first-day' motions with the Bankruptcy Court to obtain the relief needed to ensure that the filing does not adversely affect day-to-day operations for its employees or suppliers, including requesting authorization to continue paying employee wages and providing health care and other benefits. As a result of their receipt of the DIP financing, ATP has the capacity and intends to pay its suppliers in full under normal terms for any goods and services provided after the filing date of Aug. 17, 2012. About ATP Oil Houston, Tex.-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. The Company trades publicly as ATPG on the NASDAQ Global Select Market. The Company's balance sheet at March 31, 2012, showed $3.63 billion in total assets, $3.48 billion in total liabilities, $115.81 million in redeemable noncontrolling interest, $71.18 million in 8% convertible perpetual preferred stock, and a $34.44 million total shareholders' deficit. ATP OIL & GAS: Case Summary & 30 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: ATP Oil & Gas Corporation 4600 Post Oak Place, Suite 100 Houston, TX 77027 Bankruptcy Case No.: 12-36187 Chapter 11 Petition Date: Aug. 17, 2012 Court: U.S. Bankruptcy Court Southern District of Texas Type of Business: ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. The Company trades publicly as ATPG on the NASDAQ Global Select Market. Debtors' Bankruptcy Counsel: Charles S. Kelley, Esq. MAYER BROWN LLP 700 Louisiana Street, Suite 3400 Houston, TX 77002-2730 Tel: (713) 238-3000 Fax: (713) 238-4888 http://www.mayerbrown.com - and - Stuart M. Rozen, Esq. Craig E. Reimer, Esq. Rue K. Toland, Esq. MAYER BROWN LLP 71 South Wacker Drive Chicago, IL 60606 Tel: (312) 782-0600 Fax: (312) 701-7711 http://www.mayerbrown.com Debtors' Investment Bank: JEFFERIES & COMPANY Debtors' Claims and Noticing Agent: KURTZMAN CARSON CONSULTANTS LLC Total Assets: $3,638,399,000 as of March 31, 2012 Total Debts : $3,485,838,000 as of March 31, 2012 The petition was signed by Albert L. Reese, Jr., chief financial officer. ATP Oil & Gas Corporation's List of Its 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bluewater Industries, LP Trade Debt $53,813,614 5300 Memorial Drive, Suite 550 Houston, TX 77007 Nabors Offshore Corporation Trade Debt $15,425,820 P.O. Box 973531 Dallas, TX 75397 Schlumberger Technology Trade Debt $11,993,843 Corporation P.O. Box 201193 Houston, TX 77216-1193 Greystar Corporation Dept. 132 Trade Debt $4,883,568 P.O. Box 4346 Houston, TX 77210-4346 Seacor Marine, Inc. Trade Debt $4,584,169 P.O. Box 8500-6315 Philadelphia, PA 19178-6315 Hornbeck Offshore Services, Trade Debt $3,792,224 LLC P.O. Box 54863 New Orleans, LA 70154-4863 Harvey Gulf International Trade Debt $2,885,134 Marine, Inc. 701 Poydras St. Ste 3700 New Orleans, LA 70139 Bison Capital Corporation Lawsuit Judgment $2,766,527 Attn: Jeffrey W. Gutchess, Esq. 111 Brickell Avenue; Miami, FL 33139 Bristow U.S. LLC Trade Debt $2,742,359 Dept 890149 P.O. Box 120149 Dallas, TX 75312-0149 M-I Swaco, LLC Trade Debt $2,659,471 P.O. Box 200132 Dallas, TX 75320-0132 Era Helicopters LLC Trade Debt $1,740,621 Lock Box #3156 P.O. Box 8500-3156 Philadelphia, PA 19178-3156 Seamar Divers, Inc. Trade Debt $1,701,430 P.O. Box 740976 Houston, TX 77274 C-Port/Stone LLC Trade Debt $1,469,053 Dept. 211 P.O. Box 4869 Houston, TX 77210-4869 Omega Natchiq Trade Debt $1,270,235 P.O. Box 203320 Dallas, TX 75320-3320 Warrior Energy Services Corp. Trade Debt $1,255,717 Dept. 2114 P.O. Box 122114 Dallas, TX 75312-2114 Dril-Quip, Inc. Trade Debt $1,170,422 P.O. Box 973669 Dallas, TX 75397-3669 Apache Corporation Contract $1,118,927 P. O. Box 840094 Dallas, TX 75284-0094 Oceaneering International, Inc. Trade Debt $1,065,711 C/O Citibank, N.A. P.O. Box 7247-8051 Philadelphia, PA 19170-8051 Smith International, Inc. Trade Debt $1,012,059 P.O. Box 200760 Dallas, TX 75320-0760 Frank's Casing Crew Trade Debt $1,007,852 P.O. Box 51729 Lafayette, LA 70505-1729 Offshore Energy Services Inc. Trade Debt $949,898 P.O. Box 53508 Lafayette, LA 70505 Quail Tools, L.L.P. Trade Debt $940,672 P.O. Box 10739 New Iberia, LA 70562-0739 Martin Energy Services LLC Trade Debt $925,823 Dept. 30616 P.O. Box 11407 Birmingham, AL 35246-3061 PricewaterhouseCoopers LLP Trade Debt $900,277 P.O. Box 952282 Dallas, TX 75395-2282 Supreme Service & Specialty Trade Debt $886,434 Co., Inc. 204 Industrial Ave. C Houma, LA 70363 Patton Boggs LLP Trade Debt $831,100 Attn: Mr. Robert P. Thibault 1801 California Street Suite 4900 Denver, CO 80202 Superior Energy Services, L.L.C. Trade Debt $819,895 Dept 2203 P.O. Box 122203 Dallas, TX 75312-2203 Gulf Coast Chemical, LLC Trade Debt $784,690 220 Jacqulyn Street Abbeville, LA 70510 Burnham Contract $700,000 c/o Edward Kovalik (KLR Group) 510 Madison 10th Floor New York, NY 10022 Champion Technologies Trade Debt $697,277 P.O. Box 2243 Houston, TX 77252-2243 AVANTAIR INC: Names Stephen Wagman President, Carla Stucky CFO -------------------------------------------------------------- Stephen Wagman has been appointed as president of Avantair, Inc. In the role of President, Mr. Wagman will have primary responsibility for the day to day operation of the Company. Kevin Beitzel will continue with his responsibilities as Chief Operating Officer. During this past year, Mr. Wagman has served as the Company's Chief Financial Officer. Mr. Wagman came to Avantair with over 20 years of financial and operational leadership experience. Concurrent with this, Carla Stucky will become the Company's Chief Financial Officer. Prior to joining Avantair in October 2011, Ms. Stucky was the Vice President, Corporate Controller and Chief Accounting Officer at Sterling Chemicals, Inc., from August 2008 through September 2011 and Corporate Controller from December 2007 to August 2008. Earlier in her career, Ms. Stucky held increasingly responsible financial management and control positions at several large and diverse corporations. Ms. Stucky also held various positions in the audit practice during five years at PricewaterhouseCoopers. Mr. Steven Santo said, "These appointments will allow me the opportunity to devote more of my time to the Company's overall strategic planning and achievement of our goals, as well as to devote more time to the sales and marketing programs of the Company. I am pleased with the performance that both Steve and Carla have demonstrated. With Steve's focus on improving the efficiencies of the operational aspects of the business, I am confident that our results will be positively impacted. Further, I am confident that Carla's transition into the Chief Financial Officer role will be beneficial for the organization and our key stakeholders." Stephen Wagman said "I greatly appreciate the opportunity that Steven Santo has provided me and I look forward to my new role which will enable me to focus on the operations of the Company and maximize efficiencies within the organization. Avantair is a leader within its category and we look forward to taking the next steps to allow us to achieve greater heights." About Avantair Inc. Headquartered in Clearwater, Fla., Avantair, Inc. (OTC BB: AAIR) -- http://www.avantair.com/-- sells fractional ownership interests in, and flight hour card usage of, professionally piloted aircraft for personal and business use, and the management of its aircraft fleet. According to AvData, Avantair is the fifth largest company in the North American fractional aircraft industry. Avantair also operates fixed flight based operations (FBO) in Camarillo, California and in Caldwell, New Jersey. Through these FBOs and its headquarters in Clearwater, Florida, Avantair provides aircraft maintenance, concierge and other services to its customers as well as to the Avantair fleet. The Company's balance sheet at March 31, 2012, showed $98.86 million in total assets, $132 million in total liabilities, $14.77 million in series A convertible preferred stock, and a $47.91 million total stockholders' deficit. AXION INTERNATIONAL: Delays 2nd Qtr. Form 10-Q Due to Restatement ----------------------------------------------------------------- Axion International Holdings, Inc., determined that it will need to restate its previously issued financial statements for the interim periods ended March 31, June 30, and Sept. 30, 2011, for the fiscal year ended Dec. 31, 2011, and for the interim period ended March 31, 2012. The restatement process has resulted in delays in obtaining and compiling the financial data necessary to complete the restatement and prepare the Company's financial statements for the period ended June 30, 2012. As a result, the Company has been unable to complete the preparation and review of its quarterly report on Form 10-Q for the period ended June 30, 2012, in time to file it by the prescribed deadline without unreasonable effort and expense. However, the Company expects to file such Form 10-Q within the five-day extension provided by Rule 12b-25. About Axion International New Providence, N.J.-based Axion International Holdings, Inc. (OTC BB: AXIH) - http://www.axionintl.com/-- is the exclusive licensee of patented and patent-pending technologies developed for the production of structural plastic products such as railroad crossties, pilings, I-beams, T-Beams, and various size boards including a tongue and groove design that are utilized in multiple engineered design solutions such as rail track, rail and tank bridges (heavy load), pedestrian/park and recreation bridges, marinas, boardwalks and bulk heading to name a few. RBSM LLP, in New York, the auditor, issued a going concern qualification each in the Company's financial statements for the years ended Dec. 31, 2010 and 2011. RBSM LLP noted that the Company has incurred significant operating losses in current year and also in the past. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern, it said. Axion International reported a net loss of $9.93 for the 12 months ended Dec. 31, 2011, compared with a net loss of $7.10 million for the 12 months ended Sept. 30, 2010. The Company's balance sheet at March 31, 2012, showed $5.10 million in total assets, $3.54 million in total liabilities, $5.69 million in 10% convertible preferred stock, $242,500 in redeemable common stock, and a $4.37 million total stockholders' deficit. AXION INTERNATIONAL: To Restate 2011 and 2012 Periodic Reports -------------------------------------------------------------- Axion International Holdings, Inc., filed its Form 8-K with the U.S. Securities and Exchange Commission concerning the restatement of the Company's financial statements for the interim periods ended March 31, June 30, and Sept. 30, 2011, for the fiscal year ended Dec. 31, 2011, and for the interim period ended March 31, 2012. It came to the Company's attention that notwithstanding its prior audit and reviews, upon further analysis, the Company failed to properly account for certain changes to the terms of its 10% Convertible Debentures which were offered to the holders of those debentures in consideration for the holders' agreement to extend the maturity date and eliminate the debentures' prohibition on paying dividends or distributions on any of the Company's equity securities. The Company repaid the debentures on June 29, 2012. According to Steven L. Silverman, Axion's CEO and president, "We, at Axion, find the need to restate our financial statements frustrating and disappointing. Small companies, such as Axion, are often required to negotiate amendments with their investors in connection with the securities they hold. Although these amendments are simple in concept, we are learning that they sometimes create complex financial instruments for which sophisticated analysis is required under GAAP since these changes can result in adjustments to the company's financial statements. The frustrating aspect is that these adjustments have no impact on our cash position or our operations and require us to divert our attention away from our business. As we mature as a company and begin to expand our resources, we hope that we avoid the need to restate our financial statements in the future, especially as we continue to expand our business and improve our performance." About Axion International New Providence, N.J.-based Axion International Holdings, Inc. (OTC BB: AXIH) - http://www.axionintl.com/-- is the exclusive licensee of patented and patent-pending technologies developed for the production of structural plastic products such as railroad crossties, pilings, I-beams, T-Beams, and various size boards including a tongue and groove design that are utilized in multiple engineered design solutions such as rail track, rail and tank bridges (heavy load), pedestrian/park and recreation bridges, marinas, boardwalks and bulk heading to name a few. RBSM LLP, in New York, the auditor, issued a going concern qualification each in the Company's financial statements for the years ended Dec. 31, 2010 and 2011. RBSM LLP noted that the Company has incurred significant operating losses in current year and also in the past. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern, it said. Axion International reported a net loss of $9.93 for the 12 months ended Dec. 31, 2011, compared with a net loss of $7.10 million for the 12 months ended Sept. 30, 2010. The Company's balance sheet at March 31, 2012, showed $5.10 million in total assets, $3.54 million in total liabilities, $5.69 million in 10% convertible preferred stock, $242,500 in redeemable common stock, and a $4.37 million total stockholders' deficit. BALQON CORP: Delays Form 10-Q for Second Quarter ------------------------------------------------ Balqon Corporation was unable to file its quarterly report on Form 10-Q for the period ended June 30, 2012, in a timely manner because the Company has not completed the integration of a recently received third party valuation of certain derivative liabilities of the Company into its financial statements for the period ended June 30, 2012. Because of a delay in obtaining the valuation report, the Company could not finalize and close its accounting for the second quarter of 2012 with sufficient time to prepare and file the subject report in a timely manner. The Company plans to file the Quarterly Report on or before Aug. 20, 2012, in compliance with Rule 12b-25. About Balqon Corporation Harbor City, California-based Balqon Corporation is a developer and manufacturer of electric drive systems, charging systems and battery systems for trucks, tractors, buses, industrial equipment and renewable energy storage devices. The Company also designs and assembles electric powered yard tractors, short haul drayage tractors and inner city trucks utilizing our proprietary drive systems, battery systems and charging systems. Following the Company's 2011 results, Weinberg & Company, P.A., in Los Angeles, California, expressed substantial doubt about Balqon's ability to continue as a going concern. The independent auditors noted that the Company has a shareholders' deficiency and has experienced recurring operating losses and negative operating cash flows since inception. The Company reported a net loss of $7.05 million on $2.13 million of revenues for 2011, compared with a net loss of $4.30 million on $677,745 of revenues for 2010. The Company's balance sheet at March 31, 2012, showed $2.22 million in total assets, $6.80 million in total liabilities, all current, and a $4.57 million total shareholders' deficiency. BEACON ENTERPRISE: Had $3.8 Million Net Loss in June 30 Quarter --------------------------------------------------------------- Beacon Enterprise Solutions Group, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.8 million on $3.4 million of sales for the three months ended June 30, 2012, compared with a net loss of $396,000 on $4.5 million of sales for the three months ended June 30, 2011. For the nine months ended June 30, 2012, the Company had a net loss of $5.9 million on $12.8 million of sales, compared with net income of $4.0 million on $13.5 million of sales for the nine months ended June 30, 2011, which includes a gain on the deconsolidation of discontinued operations of $7.9 million. Overall net sales from the Company's North American operations for the nine months ended June 30, 2012, decreased by 12% from the same period a year ago resulting from significant decrease in Professional Services business. Net sales from International operations for the nine months ended June 30, 2012, increased 6% over the same period a year ago due to growth in the Project Services segment resulting from several assessment/remediation projects stemming from an acquisition completed by the Company's largest customer. The Company's balance sheet at June 30, 2012, showed $7.3 million in total assets, $8.8 million in total liabilities, and a stockholders' deficit of $1.5 million. According to the regulatory filing, for the nine months ended June 30, 2012, the Company generated a net loss of $5.9 million, which included a non-cash impairment of intangible assets of $2.1 million and other non-cash expenses aggregating $1.9 million. Cash used in operations amounted to $1.0 million for the nine months ended June 30, 2012. As of June 30, 2012, the Company's accumulated deficit amounted to $42.6 million, with cash and cash equivalents of $75,000 and a working capital deficit of $4.9 million. "These conditions raise substantial doubt about the Company's ability to continue as a going concern." A copy of the Form 10-Q is available for free at: http://is.gd/TENbCl Beacon Enterprise Solutions Group, Inc., headquartered in Louisville, Ky., provides international telecommunications and information technology systems (ITS) infrastructure services, encompassing a comprehensive suite of consulting, design, installation, and infrastructure management offerings. Beacon's portfolio of infrastructure services spans all professional and construction requirements for design, build and management of telecommunications, network and technology systems infrastructure. Professional services offered include consulting, engineering, program management, project management, construction services and infrastructure management services. Beacon offers these services under either a comprehensive contract option or unbundled to the Company's global and regional clients. BELFOR HOLDINGS: Moody's Corrects May 21 Rating Release ------------------------------------------------------- Moody's Investors Service corrected its May 21, 2012 ratings release on Belfor Holdings Inc. The prior LGD assessment for the last three ratings on the rating list is corrected to LGD-2 23% from LGD-2 24%. The corrected release is as follows: Moody's Investors Service has lowered ratings of Belfor Holdings, Inc., including the corporate family rating to B1 from Ba3. Concurrently, Belfor's first lien bank debt ratings have been lowered to Ba3 from Ba2. The downgrades follow credit metrics that have grown too weak for the Ba3 CFR level because debt has risen and earnings have remained flat since 2009. The B1 CFR better suits the degree of financial leverage that Moody's thinks Belfor will maintain over the intermediate term and anticipates modest credit metric improvement into early 2013. The rating outlook is stable. Ratings are: Corporate family, to B1 from Ba3 Probability of default, affirmed at B1 $125 million first-lien revolver due 2016, to Ba3, LGD-3 39% from Ba2, LGD-2 23% $145 million first-lien term loan A due 2016, to Ba3, LGD-3 39% from Ba2, LGD-2 23% $250 million first-lien term loan B due 2017, to Ba3, LGD-3 39% from Ba2, LGD-2 23% Outlook is Stable. Ratings Rationale The CFR downgrade to B1 considers Moody's expectation of credit metrics in line with the B1 rating level-debt to EBITDA to the 4x to 5x range and EBIT to interest to just below 2x, Moody's adjusted basis. Unless a large weather related recovery event develops that drives earnings, Moody's anticipates slightly more debt reduction over late 2012-early 2013 than is required under the company's debt maturity schedule. The B1 CFR reflects a good business position stemming from operational strength and a clear leadership position in the highly fragmented disaster recovery services niche. Few companies possess the ability to efficiently mobilize and manage large recovery projects as does Belfor. A strong market reputation and geographic breadth should sustain the company's position as a capable supplier to insurance companies, who value Belfor's ability to restore damaged property quickly and thereby minimize business interruption and other claim exposures. Several financial considerations temper these qualitative credit attributes. Belfor's operating earnings can vary heavily because its highest margin projects, recovery work on large-scale disasters (such as those from hurricanes), occur with irregular frequency yet the company maintains a fairly steady debt to revenue ratio. Considerable swings of interest coverage and income/cash flow leverage metrics result over time. Moody's thinks that the meaningful decline in Belfor's operating margin since 2009 reflects a diminishing degree of large-scale recovery projects in the revenue mix, rather than evidence of lesser efficiency accompanying the company's growth, which has followed its acquisition activities. Clearly, the revenue mix could again shift toward large-scale disaster recovery work, raising margin and quickly improving credit metrics for a period of time. In Moody's view, dividends or acquisition spending, however, could subsequently limit the degree of credit metric improvement. The B1 encompasses recognition that the unpredictable frequency of disaster projects coupled with varying operating margins and the company's financial policy makes internal cash flow prospects and debt repayment capacity less steady. Concurrent with the lower CFR, Moody's has revisited the family recovery rate assumption that was used in deriving instrument ratings, pursuant to Moody's Loss Given Default Methodology. Moody's lowered the family recovery rate assumption to 50% of estimated liability claims in a stress scenario-- Moody's customary family recovery assumption-from 65%, as operating lease and trade payables have grown with Belfor's operational growth. The changed assumption caused a revision of the bank credit facility's loss given default assessment rate, to 39% (LGD-3) from 23% (LGD-2), but did not affect the one notch difference between the instrument rating and the CFR. The probability of default rating was affirmed, and brought in line with the CFR, from the changed recovery rate assumption. The rating outlook is stable. Because Moody's envisions leverage modestly declining into early 2013, Moody's thinks the company should maintain compliance with financial ratio compliance tests under its bank credit facility. Since the headroom level presently is low and test levels tighten in 2013, headroom could remain low. Belfor's long track record of net profitability should continue and debt should remain about 80% of book capitalization. Upward rating momentum would depend on expectation of a more moderate financial policy, one whereby peak debt to EBITDA would remain consistently below 4x on a Moody's adjusted basis with free cash flow (after dividends) to debt consistently in the high single digit percentage range. Downward rating pressure would mount with debt to EBITDA approaching 6x or a weakening liquidity profile. The principal methodology used in rating Belfor Holdings, Inc. was the Global Business & Consumer Service Industry Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Through its subsidiaries, Belfor Holdings, Inc. is a global damage recovery and restoration provider, offering its services to insurance companies, insurance intermediaries, industrial, commercial and residential customers. Revenues over the last twelve months ended March 31, 2012 were about $1.3 billion. BERGEN DEVELOPMENT: Case Summary & 3 Unsecured Creditors -------------------------------------------------------- Debtor: Bergen Development LLC 1461 1st Avenue, Suite 234 New York, NY 10075 Bankruptcy Case No.: 12-45900 Chapter 11 Petition Date: August 14, 2012 Court: U.S. Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Jerome Feller Debtor's Counsel: J. Ted Donovan, Esq. GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP 1501 Broadway, 22nd Floor New York, NY 10036 Tel: (212) 301-6943 Fax: (212) 422-6836 E-mail: Tdonovan@Finkgold.com Scheduled Assets: $2,070,000 Scheduled Liabilities: $911,410 A copy of the Company's list of its three largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nyeb12-45900.pdf The petition was signed by Mylene Liggett, managing member. BERNARD L. MADOFF: Citigroup Seeks Dismissal of Swap-Linked Claims ------------------------------------------------------------------ American Bankruptcy Institute reports that Citigroup Inc. asked a judge to dismiss $130 million of claims by the liquidator of Bernard Madoff's brokerage, saying that the funds were received as part of a swap transaction. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) The SIPA Trustee has said that as of March 31, 2012, through prepetition litigation and other settlements, he has successfully recovered, or reached agreements to recover, more than $9 billion -- over 50% of the principal lost in the Ponzi scheme by those who filed claims -- for the benefit of all customers of BLMIS. The liquidation has so far has cost the Securities Investor Protection Corp. $1.3 billion, including $791 million to pay a portion of customers' claims. Mr. Picard has so far made only one distribution in October of $325 million for 1,232 customer accounts. Uncertainty created by the appeals has limited Mr. Picard's ability to distribute recovered funds. Outstanding appeals include the $5 billion Picower settlement and the $1.025 billion settlement. BIOCORAL INC: Incurs $466,500 Net Loss in Second Quarter -------------------------------------------------------- Biocoral, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $466,500 on $32,501 of net sales for the three months ended June 30, 2012, compared with a net loss of $261,518 on $97,439 of net sales for the same period during the prior year. The Company reported a net loss of $831,208 on $111,497 of net sales for the six months ended June 30, 2012, compared with a net loss of $462,125 on $159,935 of net sales for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $1.21 million in total assets, $5.11 million in total liabilities and a $3.89 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/VNfZvb About Biocoral, Inc. Headquartered in La Garenne Colombes, France, Biocoral, Inc. -- http://www.biocoral.com/-- was incorporated under the laws of the State of Delaware on May 4, 1992. Biocoral is a holding company that conducts its operations primarily through its wholly- owned European subsidiaries. The Company's operations consist primarily of research and development and manufacturing and marketing of patented high technology biomaterials, bone substitute materials made from coral, and other orthopedic, oral and maxillo-facial products, including products marketed under the trade name of Biocoral. Most of the Company's operations are conducted from Europe. The Company has obtained regulatory approvals to market its products throughout Europe, Canada and certain other countries. The Company owns various patents for its products which have been registered and issued in the United States, Canada, Japan, Australia and various countries throughout Europe. However, the Company has not applied for the regulatory approvals needed to market its products in the United States. Michael T. Studer CPA P.C., in Freeport, New York, noted that the Company's present financial condition raises substantial doubt about its ability to continue as a going concern. The independent auditors added that the Company had net losses for the years ended Dec. 31, 2011, and 2010, respectively. Management believes that it is likely that the Company will continue to incur net losses through at least 2012. The Company had a working capital deficiency of approximately $1,570,000 and $2,125,000, at Dec. 31, 2011 and 2010, respectively. The Company also had a stockholders' deficit at Dec. 31, 2011, and 2010, respectively. Biocoral reported a net loss of $920,103 in 2011, compared with a net loss of $703,272 in 2010. BIOFUELS POWER: Delays Form 10-Q for Second Quarter --------------------------------------------------- Biofuels Power Corp.'s financial statements for the quarter ended June 30, 2012, are not yet ready for distribution as a result of recent measures the Company has taken with regard to efforts to sign operating agreements which will effect subsequent events at the balance sheet date. Biofuels Power Humble, Tex.-based Biofuels Power Corporation is a distributed energy company that is pioneering the use of biodiesel to fuel small electric generating facilities that are located in close proximity to end-users. BPC's first power plant is currently located near Houston, Texas in the city of Oak Ridge North. The Company reported a net loss of $1.28 million on $0 of sales in 2011, compared with a net loss of $2.05 million on $0 of sales in 2010. The Company's balance sheet at March 31, 2012, showed $1.72 million in total assets, $6.57 million in total liabilities and a $4.85 million total stockholders' deficit. Following the 2011 results, Clay Thomas, P.C., in Houston, Texas, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered significant losses and will require additional capital to develop its business until the Company either (1) achieves a level of revenues adequate to generate sufficient cash flows from operations; or (2) obtains additional financing necessary to support its working capital requirements. BON-TON STORES: Incurs $45 Million Net Loss in July 28 Quarter -------------------------------------------------------------- The Bon-Ton Stores, Inc., reported a net loss of $45.04 million on $594.85 million of net sales for the 13 weeks ended July 28, 2012, compared with a net loss of $32.30 million on $595.48 million of net sales for the 13 weeks ended July 30, 2011. The Company reported a net loss of $85.82 million on $1.23 billion of net sales for the 36 weeks ended July 28, 2012, compared with a net loss of $68.28 million on $1.24 billion of net sales for the 36 weeks ended July 30, 2011. The Company's balance sheet at July 28, 2012, showed $1.56 billion in total assets, $1.51 billion in total liabilities and $48.33 million in total shareholders' equity. Brendan Hoffman, president and chief executive officer, commented, "In the second quarter, we continued to identify and implement initiatives to improve our business. While the financial results were below last year, we are encouraged by the progress we have made in several areas, including merchandising, eCommerce and marketing. We saw significant improvement in the Ladies Ready-to- Wear businesses, particularly Moderate Traditional Sportswear, and strong results in Cosmetics, Shoes and Home, including Furniture. We were particularly pleased with favorable customer response to new offerings, reflecting recent adjustments in our merchandise assortments. In addition, customers are responding extremely well to new marketing messages that clearly communicate the value we offer. Our disciplined expense management efforts in the second quarter have us on track to achieve the expense reductions that were discussed in last quarter's earnings release." A copy of the press release is available for free at: http://is.gd/UCPIET About Bon-Ton Stores The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 276 department stores, which includes 11 furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and Younkers nameplates and, in the Detroit, Michigan area, under the Parisian nameplate. The Company incurred a net loss of $40.8 million on $640 million of net sales for the 13 weeks ended April 28, 2012. * * * In the Jan. 12, 2012, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit rating on Bon-Ton Stores Inc. to 'B-' from 'B'. "The downgrade reflects the continued deterioration of the company's performance, which has been below our expectations due to merchandising that has not resonated with its customers," said Standard & Poor's credit analyst David Kuntz. He added, "It incorporates our view that operations will remain weak in the near term and that credit protection measures will erode further over the next year." As reported by the TCR on July 13, 2012, Moody's Investors Service revised The Bon-Ton Stores, Inc.'s Probability of Default Rating to Caa1/LD from Caa3. The Caa1/LD rating reflects the company's exchange of $330 million of new senior secured notes due 2017 for $330 million of its unsecured notes due 2014. The LD designation indicates that a limited default on the company's 2014 notes has occurred, as Moody's deem that this transaction is a distressed exchange. The LD designation will be removed in approximately 3 business days. Moody's also affirmed the company's Corporate Family Rating at Caa1 and affirmed the Caa3 rating assigned to the company's senior unsecured notes due 2014. BOOMERANG SYSTEMS: Incurs $7.2 Million Net Loss in June 30 Qtr. --------------------------------------------------------------- Boomerang Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $7.23 million on $96,512 of total revenues for the three months ended June 30, 2012, compared with a net loss of $3.35 million on $0 of total revenues for the same period during the prior year. The Company reported a net loss of $13.37 million on $477,290 of total revenues for the nine months ended June 30, 2012, compared with a net loss of $15.77 million on $1.31 million of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $7.77 million in total assets, $20.58 million in total liabilities and a $12.81 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/gNmHSI About Boomerang Systems Headquartered in Morristown, New Jersey, Boomerang Systems, Inc. (Pink Sheets: BMER) through its wholly owned subsidiary, Boomerang Utah, is engaged in the design, development, and marketing of automated racking and retrieval systems for automobile parking and automated racking and retrieval of containerized self-storage units. The Company reported a net loss of $19.10 million for 2011 and a net loss of $15.78 million during the prior year. Bankruptcy Warning In the Form 10-K for the year ended Dec. 31 2011, the Company said its operations may not generate sufficient cash to enable it to service its debt. If the Company were to fail to make any required payment under the notes and agreements governing its indebtedness or fail to comply with the covenants contained in the notes and agreements, the Company would be in default. The Company's debt holders would have the ability to require that the Company immediately pay all outstanding indebtedness. If the debt holders were to require immediate payment, the Company might not have sufficient assets to satisfy its obligations under the notes or the Company's other indebtedness. In such event, the Company could be forced to seek protection under bankruptcy laws, which could have a material adverse effect on its existing contracts and its ability to procure new contracts as well as its ability to recruit or retain employees. Accordingly, a default could have a significant adverse effect on the market value and marketability of the Company's common stock. BROADCAST INTERNATIONAL: Sells Additional $900,000 Senior Notes --------------------------------------------------------------- Broadcast International, Inc., completed the sale of additional senior secured promissory notes that have a principal value of $900,000 with various individuals and entities as holders, which with the Notes previously sold now aggregates a total principal amount of $2,900,000. On July 31, 2012, the Board of Directors increased the total amount that could be sold pursuant to a Note and Warrant Purchase and Security Agreement to $5,000,000. These Notes contain the same terms and conditions as the Notes previously sold pursuant to the Agreement, including: The principal balance of the Notes bear interest at the rate of 12% per annum with principal and all accrued interest payable on or before July 13, 2013. The principal of the Notes is convertible into common stock of the Company at the conversion price of $.25 per share at the option of the Holders. The Company received net proceeds from the sale of approximately $851,600 in cash. As additional consideration for the Notes, the Company agreed to issue to the Holders warrants to acquire up to 200,000 shares of common stock of the Company for each $100,000 of principal value of the Notes. Those warrants have a five year life, are exercisable at $.25 per share, have reset provisions in the event the Company sells equity at less than $.25 per share and cashless exercise rights. The Company paid its investment banker $36,250 in compensation for arranging the Loan and paid $12,126 for certain legal expenses incurred for preparation of the Agreement. On July 15, 2012, the Company entered into promissory notes with individuals and entities as holders of the Notes in consideration the payment of $900,000 in cash. The Notes are convertible into shares of common stock of the Company at an exercise price of $.25 per share. In addition the Company issued warrants to the holders of the notes to acquire up to 1,800,000 shares of common stock of the Company. Those warrants have a six year life and are exercisable at $.25 per share. All of the holders of the Note and Warrants were accredited investors and were fully informed regarding their investments. About Broadcast International Based in Salt Lake City, Broadcast International, Inc., installs, manages and supports private communication networks for large organizations that have widely-dispersed locations or operations. The Company owns CodecSys, a video compression technology to convert video content into a digital data stream for transmission over satellite, cable, Internet, or wireless networks, as well as offers audio and video production services. The Company's enterprise clients use its networks to deliver training programs, product announcements, entertainment, and other communications to their employees and customers. The Company reported net income of $1.30 million in 2011, compared with a net loss of $18.66 million in 2010. The Company's balance sheet at June 30, 2012, showed $3.39 million in total assets, $9.08 million in total liabilities, and a $5.68 million total stockholders' deficit. BROADCAST INTERNATIONAL: Extends Contract with Largest Customer --------------------------------------------------------------- Broadcast International, Inc., extended until Jan. 31, 2013, its Statement of Work contract with its largest customer to provide its technology and digital signage services to approximately 2,500 of the client's more than 6,000 retail and administrative locations throughout North America. About Broadcast International Based in Salt Lake City, Broadcast International, Inc., installs, manages and supports private communication networks for large organizations that have widely-dispersed locations or operations. The Company owns CodecSys, a video compression technology to convert video content into a digital data stream for transmission over satellite, cable, Internet, or wireless networks, as well as offers audio and video production services. The Company's enterprise clients use its networks to deliver training programs, product announcements, entertainment, and other communications to their employees and customers. The Company reported net income of $1.30 million in 2011, compared with a net loss of $18.66 million in 2010. The Company's balance sheet at June 30, 2012, showed $3.39 million in total assets, $9.08 million in total liabilities, and a $5.68 million total stockholders' deficit. BROWNIE'S MARINE: Delays Form 10-Q for Second Quarter ----------------------------------------------------- Brownie's Marine Group, Inc., notified the U.S. Securities and Exchange Commission that it will be delayed in filing its quarterly report on Form 10-Q for the period ended June 30, 2012. The Company said certain financial and other information necessary for an accurate and full completion of the Report could not be provided within the prescribed time period without unreasonable effort or expense. About Brownie's Marine Brownie's Marine Group, Inc., does business through its wholly owned subsidiary, Trebor Industries, Inc., d/b/a Brownie's Third Lung, a Florida corporation. The Company designs, tests, manufactures and distributes recreational hookah diving, yacht based scuba air compressor and nitrox generation systems, and scuba and water safety products. BWMG sells its products both on a wholesale and retail basis, and does so from its headquarters and manufacturing facility in Fort Lauderdale, Florida. The Company's common stock is quoted on the OTC BB under the symbol "BWMG". The Company's website is www.browniesmarinegroup.com. The Company's balance sheet at March 31, 2012, showed $1.94 million in total assets, $2.70 million in total liabilities, and a stockholders' deficit of $757,489. As reported in the TCR on April 2, 2012, L.L. Bradford & Company, LLC, in Las Vegas, Nevada, expressed substantial doubt about Brownie's Marine Group'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 a working capital deficiency and recurring losses and will need to secure new financing or additional capital in order to pay its obligations. BUSHWICK BH: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Bushwick BH LLC 168 Walworth Street Brooklyn, NY 11205 Bankruptcy Case No.: 12-45979 Chapter 11 Petition Date: August 16, 2012 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Carla E. Craig Debtor's Counsel: Solomon Rosengarten, Esq. 1704 Avenue M Brooklyn, NY 11230-5423 Tel: (718) 627-4460 Fax: (718) 627-4456 E-mail: VOKMA@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Henry Grunbaum, managing member. CAESARS ENTERTAINMENT: Prices $750 Million Senior Notes Offering ---------------------------------------------------------------- Caesars Entertainment Corporation's wholly owned subsidiaries, Caesars Operating Escrow LLC and Caesars Escrow Corporation, on Aug. 15, 2012, priced $750,000,000 aggregate principal amount of 9% senior secured notes due 2020 at an issue price of 100%, plus accrued interest, if any. The notes are being offered in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended. The closing of the offering is subject to a number of conditions. Upon the satisfaction of certain conditions, Caesars Entertainment Operating Company, Inc., will assume the Escrow Issuers' obligations under the notes. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. --http://www.caesars.com/-- is one of the world's largest casino companies, with annual revenue of $4.2 billion, 20 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's on mid-November 2010. The Company reported a net loss of $666.70 million in 2011, and a net loss of $823.30 million in 2010. The Company's balance sheet at June 30, 2012, showed $28.03 billion in total assets, $27.43 billion in total liabilities, and $607.2 million in total equity. * * * As reported by the TCR on March 28, 2012, Moody's Investors Service upgraded Caesars Entertainment Corp's Corporate Family Rating (CFR) and Probability of Default Rating both to Caa1 from Caa2. The upgrade of Caesars' ratings reflects very good liquidity, an improving operating outlook for gaming in a number of the company's largest markets that is expected to drive earnings growth, the completion of a bank amendment that resulted in the extension of debt maturities to 2018 from 2015, and the public listing of the company's equity that increases financial flexibility by providing it with another potential source of capital. The upgrade of the SGL rating reflects minimal debt maturities over the next few years, significant cash balances (approximately $900 million at December 31, 2011) and revolver availability that will be more than sufficient to fund the company's cash interest and capital spending needs. In the Aug. 17, 2012, edition of the TCR, Standard & Poor's Ratings Services revised its rating outlook on Las Vegas-based Caesars Entertainment Corp. (CEC) and wholly owned subsidiary Caesars Entertainment Operating Co. Inc. (CEOC) to negative from stable. "We affirmed all other ratings on the companies, including our 'B-' corporate credit rating," S&P said. As reported by the TCR on Aug. 17, 2012, Fitch Ratings affirmed Caesars Entertainment Corp.'s Long-term Issuer Default Rating at 'CCC'. CAESARS ENTERTAINMENT: Bank Debt Trades at 12% Off -------------------------------------------------- Participations in a syndicated loan under which Caesars Entertainment, Inc., is a borrower traded in the secondary market at 87.53 cents-on-the-dollar during the week ended Friday, Aug. 17, a drop of 0.55 percentage points from the previous week according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. The Company pays 525 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 1, 2018, and carries Moody's B2 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 165 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. --http://www.caesars.com/-- is one of the world's largest casino companies, with annual revenue of $4.2 billion, 20 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's on mid-November 2010. Caesars reported a net loss of $281.10 million on $2.27 billion of net revenues for the quarter ended March 31 2012. The Company incurred a net loss of $666.70 million in 2011, and a net loss of $823.30 million in 2010. The Company's balance sheet at March 31, 2012, showed $28.40 billion in total assets, $27.56 billion in total liabilities and $849.20 million in total equity. * * * As reported by the Troubled Company Reporter on Aug. 17, 2012: Fitch Ratings rates Caesars Entertainment Operating Company, Inc.'s (OpCo; CEOC) $750 million proposed add-on issuance to the 8.5% senior secured notes due 2020 'B-/RR2'. Fitch has also affirmed the Issuer Default Ratings (IDRs) of CEOC and related issuers and has revised certain issue specific ratings per the agency's updated rating definitions. Effective Aug. 10, 2012 Fitch updated its Ratings Definitions, expanding the application of '+/-' to corporate issue ratings at the 'CCC' level. These designations are limited to instrument ratings and will not be used for IDRs, leaving 'CCC' as the sole issuer rating within the 'CCC' category. The rating revisions do not indicate any change of Fitch's opinion regarding credit quality; rather they reflect the update to the Rating Definitions and the resulting impact of issue-specific notching relative to the IDR according to Fitch's Recovery Rating criteria. The Rating Outlook on Caesars' Issuer Default Rating (IDR) is Stable, which continues to reflect the company's available liquidity and considerable time until the 2015 maturities. Moody's Investors Service commented that Caesars Entertainment Corporation's announcement regarding a proposed add-on of $750 million to its $1.250 billion 8.5% senior secured notes due 2020 is considered a credit positive. This proposed offering, along with a Caesars' concurrent announcement that it is plans to amend and extend a portion of its $1.987 billion outstanding term loans, will contribute favorably to the company's liquidity profile which Moody's already views as very good. Caesars has an SGL-1 Speculative Grade Liquidity rating. These proposed actions, however, do not have an impact on Caesars' Caa1 Corporate Family Rating or stable rating outlook given that they do not solve what Moody's characterizes as longer-term capital structure issues related to very high leverage and lack of full interest coverage. Standard & Poor's Ratings Services revised its rating outlook on Las Vegas-based Caesars Entertainment Corp. (CEC) and wholly owned subsidiary Caesars Entertainment Operating Co. Inc. (CEOC) to negative from stable. "We affirmed all other ratings on the companies, including our 'B-' corporate credit rating," S&P said. "We assigned issue-level and recovery ratings to the proposed $750 million first-lien senior secured notes offering, to be issued jointly by Caesars Operating Escrow LLC and Caesars Escrow Corp. (the escrow issuers). We assigned our 'B' issue-level rating (one notch higher than our 'B-' corporate credit rating on the company) and our recovery rating of '2' indicating our expectation for substantial (70%-90%) recovery for lenders in the event of a payment default," S&P said. CAMBRIDGE HEART: Incurs $1.3 Million Net Loss in Second Quarter --------------------------------------------------------------- Cambridge Heart, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.30 million on $461,481 of revenue for the three months ended June 30, 2012, compared with a net loss of $1.39 million on $541,705 of revenue for the same period during the prior year. The Company reported a net loss of $3.15 million on $1.01 million of revenue for the six months ended June 30, 2012, compared with a net loss of $2.73 million on $1.17 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $1.60 million in total assets, $4.89 million in total liabilities, $12.74 million in convertible preferred stock and a $16.04 million total stockholders' deficit. Commenting on the results of the second quarter and recent events, Cambridge Heart CEO Ali Haghighi-Mood said, "As previously announced, in the second quarter revenue continued to be lower than expected, prompting the company to initiate a significant restructuring in order to reduce its cash burn. Under the new structure, we continue to support our customer base and distribution partners while exploring our strategic alternatives." Mr. Haghighi-Mood added, "We are in the early stages of these exploratory activities, and look forward to providing an update in coming months." As of Aug. 14, 2012, 100,112,960 shares of the Company's common stock were outstanding. On an as-converted basis, the Company has 124,659,416 shares of common stock issued and outstanding, including 100,112,960 shares of common stock issued, 4,180,602 shares issuable upon conversion of the Series C-1 Convertible Preferred Stock and 20,365,854 shares issuable upon conversion of the Series D Convertible Preferred Stock. A copy of the Form 10-Q is available for free at: http://is.gd/glKloS About Cambridge Heart Tewksbury, Mass.-based Cambridge Heart, Inc., is engaged in the research, development and commercialization of products for the non-invasive diagnosis of cardiac disease. In its report on the financial statements for the year ended Dec. 31, 2011, McGladrey & Pullen, LLP, in Boston, Massachusetts, expressed substantial doubt about Cambridge Heart's ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses, inability to generate positive cash flows from operations, and liquidity uncertainties from operations. The Company reported a net loss of $5.40 million in 2011, compared with a net loss of $5.17 million in 2010. CAPITOL CITY: Delays Form 10-Q for Second Quarter ------------------------------------------------- Capitol City Bancshares, Inc., requests an extension of time to file its quarterly report on Form 10-Q for the period ended June 30, 2012, as it could not complete the filing of its Form 10- Q on or before the prescribed due date without unreasonable effort. The Company needs additional time to complete the compilation, dissemination and review of the information required to be presented in the Form 10-Q. The Company expects to file its Quarterly Report on Form 10-Q on or before the fifth day following the prescribed due date. About Capitol City Bancshares Atlanta, Georgia-based Capitol City Bancshares, Inc., was incorporated under the laws of the State of Georgia for the purposes of serving as a bank holding company for Capitol City Bank and Trust Company. The Bank operates a full-service banking business and engages in a broad range of commercial banking activities, including accepting customary types of demand and timed deposits, making individual, consumer, commercial, and installment loans, money transfers, safe deposit services, and making investments in U.S. government and municipal securities. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, Nichols, Cauley and Associates, LLC, in Atlanta, Georgia, expressed substantial doubt about Capital City Bancshares' ability to continue as a going concern. The independent auditors noted that the Company is operating under regulatory orders to, among other items, increase capital and maintain certain levels of minimum capital. "As of Dec. 31, 2011, the Company was not in compliance with these capital requirements. In addition to its deteriorating capital position, the Company has suffered significant losses related to nonperforming assets, has experienced declining levels of liquid assets, and has significant maturities of liabilities within the next twelve months." The Company's balance sheet at March 31, 2012, showed $298.37 million in total assets, $290.19 million in total liabilities and $8.17 million in total stockholders' equity. CARONDELET MERAMEC: Case Summary & 8 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Carondelet Meramec, LLC 107 South Meramec Saint Louis, MO 63105 Bankruptcy Case No.: 12-47830 Chapter 11 Petition Date: August 14, 2012 Court: U.S. Bankruptcy Court Eastern District of Missouri (St. Louis) Judge: Charles E. Rendlen III Debtor's Counsel: Joel A. Kunin, Esq. THE KUNIN LAW OFFICES 1606 Eastport Plaza Drive, Suite 110 Collinsville, IL 62234-6135 Tel: (618) 301-4875 Fax: (855) 235-5084 E-mail: jkunin@kuninlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its eight largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/moeb12-47830.pdf The petition was signed by Kerry Klarfeld. Affiliates that simultaneously filed for Chapter 11: Debtor Case No. ------ -------- Klarco, Inc. 12-47829 Bridge Holding, LLC 12-47831 CATASYS INC: Incurs $2.2 Million Net Loss in Second Quarter ----------------------------------------------------------- Catasys, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.25 million on $129,000 of total revenues for the three months ended June 30, 2012, compared with net income of $2.95 million on $63,000 of total revenues for the same period a year ago. The Company reported a net loss of $5.63 million on $222,000 of total revenues for the six months ended June 30, 2012, compared with net income of $1 million on $150,000 of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $3.47 million in total assets, $11.95 million in total liabilities and a $8.47 million total stockholders' deficit. Bankruptcy Warning As of Aug. 13, 2012, the Company had a balance of approximately $500,000 cash on hand. The Company had working capital deficit of approximately $2.2 million at June 30, 2012. The Company has incurred significant net losses and negative operating cash flows since its inception. The Company could continue to incur negative cash flows and net losses for the next twelve months. The Company's current cash burn rate is approximately $450,000 per month, excluding non-current accrued liability payments. The Company expects its current cash resources to cover expenses into September 2012, however delays in cash collections, revenue, or unforeseen expenditures, could impact this estimate. The Company will need to immediately obtain additional capital and there is no assurance that additional capital can be raised in an amount which is sufficient for the Company or on terms favorable to its stockholders, if at all. "If we do not immediately obtain additional capital, there is a significant doubt as to whether we can continue to operate as a going concern and we will need to curtail or cease operations or seek bankruptcy relief. If we discontinue operations, we may not have sufficient funds to pay any amounts to stockholders," the Company said in its quarterly report for the period ended June 30, 2012. A copy of the Form 10-Q is available for free at: http://is.gd/LwyD9M About Hythiam, Inc. Based in Los Angeles, California, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. In its auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2011, Rose, Snyder & Jacobs LLP, in Encino, California, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2011. The Company reported a net loss of $8.12 million in 2011, compared with a net loss of $19.99 million in 2010. CCC INFORMATION: S&P Gives 'BB-' Rating on $40MM Incremental Loan ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned our 'BB-' issue-level rating to Chicago-based CCC Information Services Inc.'s senior secured debt due 2015 following the proposed $40 million incremental term loan, which brings the total senior secured debt amount to $374.2 million from $334.2 million. CCC intends to use the proceeds to redeem a portion of the senior subordinated notes and use balance-sheet cash to repurchase shares from a minority partner; hence, there will be no effect on total leverage. We also assigned a '2' recovery rating to the debt, indicating our expectation for meaningful (70%-90%) recovery for lenders in the event of a payment default," S&P said. "The 'B+' corporate credit rating is unchanged. The outlook remains stable. The refinancing transaction will not result in any change in total adjusted leverage, which was temporarily high for the rating, at 5.7x as of the latest 12 months ended June 30, 2012. We expect operating profitability levels for the past two quarters to be sustained for the remainder of the year, which should lead to leverage in the low-5x area by year-end," S&P said. "The share repurchase will be funded with almost all of CCC's cash balance, which was $32 million as of June 30, 2012. We still consider CCC's liquidity profile 'adequate,' based on its modest free cash flow generation and the full availability under its $50 million revolving facility," S&P said. "The rating on CCC reflects its 'weak' business risk profile, characterized by its narrow target market and 'aggressive' financial profile. The company's entrenched customer base, solid market position in the U.S. automotive insurance claims processing industry, and moderate free cash flow generation partly offset these factors. We could lower the rating if CCC experiences any loss of significant customers, or engages in debt-financed acquisitions leading to a sustained leverage ratio at the high-5x area," S&P said. RATINGS LIST CCC Information Services Inc. Corporate Credit Rating B+/Stable/-- New Ratings CCC Information Services Inc. Senior Secured $40 mil incremental term loan due 2015 BB- Recovery Rating 2 CENTRAL ENERGY: Had $275,000 Net Loss in Second Quarter ------------------------------------------------------- Central Energy Partners LP filed its quarterly report on Form 10-Q, reporting a net loss of $275,000 on $1.3 million of revenues for the three months ended June 30, 2012, compared with a net loss of $589,000 on $1.7 million of revenues for the comparable period last year. For the six months ended June 30, 2012, the Partnership had a net loss of $722,000 on $2.6 million of revenues, compared with a net loss of $836,000 on $3.5 million of revenues for the same period of 2011. The Partnership's balance sheet at June 30, 2012, showed $8.7 million in total assets, $8.5 million in total liabilities, and partners' capital of $199,000. "Central had a loss from operations for the year ended Dec. 31, 2011, and the six months ended June 30, 2012, and has a deficit in working capital of $3.8 million at June 30, 2012. The RZB Note and the accrued and unpaid estimated income taxes owed by Regional totaled approximately $2.3 million at June 30, 2012. The RZB Note is collateralized by all Regional assets and a pledge of the common stock of Regional to RZB by the Partnership. In addition, the Partnership is liable for the federal and state late filing penalties related to the Partnership's failure to deliver timely Schedules K-1 for the 2008 Tax Year and the 2009 Tax Year to its Unitholders of up to $3.5 million. Central is also responsible for contingencies associated with the TransMontaigne dispute. "Substantially all of Central's assets are pledged or committed to be pledged as collateral on the RZB Note, and therefore, Central is unable to obtain additional financing collateralized by those assets. Until such time as the Storage Tank is placed back into service and the only remaining available storage tank at June 30, 2012, is leased, Regional does not expect to have sufficient working capital from operations to cover ongoing monthly debt service obligations on the RZB Note, and therefore, the amount which can be provided to Central, if any, to fund general overhead is limited. Should Central need additional capital in excess of cash generated from operations to make the RZB Note payments, for payment of the contingent liabilities, for expansion, repair of the Storage Tank, capital improvements to existing assets, for working capital or otherwise, its ability to raise capital would be hindered by the existing pledge. In addition, the Partnership has obligations under existing registrations rights agreements. These rights may be a deterrent to any future equity financings. If additional amounts cannot be raised and cash flow is inadequate, Central and/or Regional would be required to seek other alternatives which could include the sale of assets, closure of operations and/or protection under the U.S. bankruptcy laws. "In view of the matters described in the preceding paragraphs, recoverability of the recorded asset amounts shown in the accompanying unaudited consolidated balance sheet is dependent upon the ability of Central to (1) pay the estimated income tax liabilities owed by Regional as they become due, (2) resolve favorably the exposure for late tax filing penalties for the tax years ended Dec. 31, 2008, and 2009, and non-delivery of Schedules K-1, (3) satisfactorily resolving the TransMontaigne dispute (4) satisfactorily completing the repairs associated with the Asphalt Loss, (5) continue to receive waiver of salaries and expenses by the Partnership's executive officers until sufficient working capital is received, (6) receive additional advances from the General Partner or distributions from Regional resulting from a refinancing of the RZB Note and (7) continue to receive consent from RZB to utilize remaining proceeds from the Sold Tractors towards working capital. At the present time, neither the General Partner nor Regional has the financial ability to make such advances, pending the successful conclusion of discussions to obtain a new loan secured by the Regional assets and pay-off the RZB Loan. A copy of the Form 10-Q is available for free at: http://is.gd/YK02yy Dallas, Tex.-based Central Energy Partners LP is a publicly-traded Delaware limited partnership. It currently provides liquid bulk storage, trans-loading and transportation services for hazardous chemicals and petroleum products through its wholly-owned subsidiary, Regional Enterprises, Inc. ("Regional"). * * * As reported in the TCR on April 5, 2012, Burton McCumber & Cortez, L.L.P., in Brownsville, Texas, expressed substantial doubt about Central Energy's ability to continue as a going concern, following the Partnership's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has insufficient cash flow to pay its current debt obligations and contingencies as they become due. CENTRAL FEDERAL: Incurs $684,000 Net Loss in Second Quarter ----------------------------------------------------------- Central Federal Corporation reported a net loss of $684,000 on $1.20 million of net interest income for the three months ended June 30, 2012, compared with a net loss of $1.91 million on $1.63 million of net interest income for the same period during the prior year. The Company reported a net loss of $1.42 million on $2.47 million of net interest income for the six months ended June 30, 2012, compared with a net loss of $3.63 million on $3.37 million of net interest income for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $225.61 million in total assets, $217.33 million in total liabilities and $8.28 million in stockholders' equity. Eloise L. Mackus, CEO, commented, "Our progress continues at a steady pace. We began our workout efforts in June of 2010. From then until June of 2011, nonperforming loans and criticized and classified loans decreased 52% and 33%, respectively. Over the past year, nonperforming loans and criticized and classified loans decreased by another 38% and 21%, respectively. We remain committed to the continued improvement of our asset quality." A copy of the press release is available for free at: http://is.gd/LqApDZ About Central Federal Fairlawn, Ohio-based Central Federal Corporation (Nasdaq: CFBK) is the holding company for CFBank, a federally chartered savings association formed in Ohio in 1892. CFBank has four full-service banking offices in Fairlawn, Calcutta, Wellsville and Worthington, Ohio. Central Federal reported a net loss of $5.42 million in 2011, a net loss of $6.87 million in 2010, and a net loss of $9.89 million in 2009. In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2011, Crowe Horwath LLP, in Cleveland, Ohio, expressed substantial doubt about the Company's ability to continue as a going concern. The Company's auditors noted that the Holding Company and its wholly owned subsidiary (CFBank) are operating under regulatory orders that require among other items, higher levels of regulatory capital at CFBank. The Company has suffered significant recurring net losses, primarily from higher provisions for loan losses and expenses associated with the administration and disposition of nonperforming assets at CFBank. These losses have adversely impacted capital at CFBank and liquidity at the Holding Company. At Dec. 31, 2011, regulatory capital at CFBank was below the amount specified in the regulatory order. Failure to raise capital to the amount specified in the regulatory order and otherwise comply with the regulatory orders may result in additional enforcement actions or receivership of CFBank. Regulatory Matters On May 25, 2011, Central Federal Corporation and CFBank each consented to the issuance of an Order to Cease and Desist (the Holding Company Order and the CFBank Order, respectively, and collectively, the Orders) by the Office of Thrift Supervision (OTS), the primary regulator of the Holding Company and CFBank at the time the Orders were issued. The Holding Company Order required it, among other things, to: (i) submit by June 30, 2011, a capital plan to regulators that establishes a minimum tangible capital ratio commensurate with the Holding Company's consolidated risk profile, reduces the risk from current debt levels and addresses the Holding Company's cash flow needs; (ii) not pay cash dividends, redeem stock or make any other capital distributions without prior regulatory approval; (iii) not pay interest or principal on any debt or increase any Holding Company debt or guarantee the debt of any entity without prior regulatory approval; (iv) obtain prior regulatory approval for changes in directors and senior executive officers; and (v) not enter into any new contractual arrangement related to compensation or benefits with any director or senior executive officer without prior notification to regulators. The CFBank Order required CFBank to have by Sept. 30, 2011, and maintain thereafter, 8% Tier 1 (Core) Capital to adjusted total assets and 12% Total Capital to risk weighted assets. CFBank will not be considered well-capitalized as long as it is subject to individual minimum capital requirements. CFBank did not comply with the higher capital ratio requirements by the Sept. 30, 2011, required date. CEREPLAST INC: Had $3.9 Million Net Loss in Second Quarter ---------------------------------------------------------- Cereplast, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.9 million on $190,000 of sales for the three months ended June 30, 2012, compared with a net loss of $2.4 million on $7.6 million of sales for the corresponding period last year. According to the regulatory filing, the decrease in sales was due to transitioning significant resources and efforts toward recovery of past due accounts receivables from customers and minimizing any additional exposure to our accounts receivable credit risk. The Company's current period sales were primarily prepaid shipments of sample materials and nominal shipments to established existing customers with low risk credit limits. For the six months ended June 30, 2012, the Company had a net loss of $6.3 million on $293,000 of sales, compared with a net loss of $4.1 million on $14.9 million of sales for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $31.2 million in total assets, $21.1 million in total liabilities, and stockholders' equity of $10.1 million. Bankruptcy Warning "We have incurred a net loss of $6.3 million for the six months ended June 30, 2012, and $14.0 million for the year ended Dec. 31, 2011, and have an accumulated deficit of $63.2 million as of June 30, 2012. Based on our operating plan, our existing working capital will not be sufficient to meet the cash requirements to fund our planned operating expenses, capital expenditures and working capital requirements through Dec. 31, 2012, without additional sources of cash. "Our plan to address the shortfall of working capital is to generate additional financing through a combination of sale of our equity securities, additional funding from our new short-term convertible debt financings, incremental product sales into new markets with advance payment terms and collection of outstanding past due receivables. We are confident that we will be able to deliver on our plans, however, there are no assurances that we will be able to obtain any sources of financing on acceptable terms, or at all. "If we cannot obtain sufficient additional financing in the short- term, we may be forced to curtail or cease operations or file for bankruptcy." A copy of the Form 10-Q is available for free at: http://is.gd/2OGPyr El Segundo, Calif.-based Cereplast, Inc., has developed and is commercializing proprietary bio-based resins through two complementary product families: Cereplast Compostables(R) resins which are compostable, renewable, ecologically sound substitutes for petroleum-based plastics, and Cereplast Sustainables(TM) resins (including the Cereplast Hybrid Resins product line), which replaces up to 90% of the petroleum-based content of traditional plastics with materials from renewable resources. CHILE MINING: Delays Second Quarter Form 10-Q for for Audit ----------------------------------------------------------- Chile Mining Technologies, Inc., was unable to file its Form 10-Q within the prescribed time period without unreasonable effort or expense due to the fact that the audit of the Company's financial statements for the year ended June 30, 2012, has not been completed. The Company anticipates that it will file its Form 10-Q within the five-day grace period provided by Exchange Act Rule 12b-25. About Chile Mining Chile Mining Technologies Inc. is a mineral extraction company based in the Republic of Chile, with copper as its principal "pay metal." Its founders, Messrs. Jorge Osvaldo Orellana Orellana and Jorge Fernando Pizarro Arriagada, have refined the electrowin process in a way that permits the electrowin process to be used at a relatively small mine and/or tailings sites. Electrowinning is a process in which positive and negative electrodes are placed in an acidic solution containing copper ions, and an electric current passed through the solution causes the copper to be deposited on the negative electrodes so that it can be collected. Schwartz Levitsky Feldman LLP, in Toronto, Ontario, Canada, expressed substantial doubt about Chile Mining's ability to continue as a going concern following the fiscal year ended March 31, 2012, annual report. The independent auditors noted that the continuance of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the production of copper. The Company reported a net loss of US$3.95 million on US$433,554 of sales in fiscal 2012, compared with a net loss of US$7.25 million on US$188,227 of sales in fiscal 2011. The Company's balance sheet at March 31, 2012, showed US$5.92 million in total assets, US$7.37 million in total liabilities, and a stockholders' deficit of US$1.45 million. CHINA 3C: Had $3.4 Million Net Loss in Second Quarter ----------------------------------------------------- China 3C Group filed its quarterly report on Form 10-Q, reporting a net loss of $3.4 million on $6.9 million of sales for the three months ended June 30, 2012, compared with a net loss of $5.7 million on $15.7 million of sales for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $8.1 million on $14.6 million of sales, compared with a net loss of $10.2 million on $33.7 million of sales for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $8.2 million in total assets, $2.6 million in total liabilities, and stockholders' equity of $5.6 million. As reported in the TCR on April 20, 2012, Goldman Kurland and Mohidin LLP, in Encino, California, expressed substantial doubt about China 3C Group'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 incurred significant losses from operations for the past three years. "In addition, the Company's cash position substantially deteriorated from 2010." A copy of the Form 10-Q is available for free at: http://is.gd/I0qlBX Located in HangZhou City, Zhejiang Province, China, China 3C Group was incorporated on Aug. 20, 1998, under the laws of the State of Nevada. China 3C operated in three segments in 2012. Hangzhou Wang Da Electronics Company Limited mainly operates mobile phones, Yiwu Yong Xin Communication Limited mainly operates office communication products and Jinhua Baofa Logistic Ltd. provides logistics to businesses in Eastern China. CHINA GREEN: Delays Form 10-Q for Second Quarter ------------------------------------------------ China Green Creative, Inc., was not able to file its quarterly report on Form 10-Q for the period ended June 30, 2012, by the Aug. 14, 2012, filing deadline. The Company is in the process of preparing its consolidated financial statements as of and for the three months ended June 30, 2012. The Company undertakes the responsibility to file that quarterly report no later than five calendar days after its original due date. About China Green China Green Creative, Inc., located in Shenzhen, Guangdong Province, People's Republic of China, is principally engaged in the distribution of consumer goods and electronic products in the PRC. After auditing the 2011 results, Madsen & Associates CPA's, Inc., in Salt Lake City, Utah, expressed substantial doubt about China Green Creative's ability to continue as a going concern. The independent auditor noted that the Company does not have the necessary working capital to service its debt and for its planned activity. The Company reported a net loss of $344,901 on $1.93 million of revenues for 2011, compared with a net loss of $3.35 million on $2.78 million of revenues for 2010. The Company's balance sheet at March 31, 2012, showed $5.52 million in total assets, $8.04 million in total liabilities and a $2.52 million total stockholders' deficit. CHINA TELETECH: Reports $971,600 Net Income in Second Quarter ------------------------------------------------------------- China Teletech Holding, Inc., filed its quarterly report on Form 10-Q, reporting net income of $971,670 on $8.0 million of sales for the three months ended June 30, 2012, compared with net income of $1,167 on $3.5 million of sales for the comparable period a year earlier. The increase in net profits was mainly due to the increase in gross profits, the gain from disposal of a subsidiary less the increase in the general and administrative expenses. For the six months ended June 30, 2012, the Company had net income of $2.6 million on $11.1 million of sales, compared with net income of $159,366 on $12.7 million of sales for the same period of 2011. The increase was mainly due to the gain from disposal of a subsidiary and the gain on forgiveness of long term debt, less the increase in the general and administrative expenses. The Company's balance sheet at June 30, 2012, showed $4.2 million in total assets, $2.4 million in total liabilities, and stockholders' equity of $1.8 million. "As of June 30, 2012, the Company has an accumulated loss of $3,978,607 due to the fact that the Company incurred losses over the past several years. It affected the Company's ability to pay PRC government tax and Debentures," the Company said in the filing. "However, as the Company fulfilled the required obligations of a settlement agreement dated Nov. 28, 2011, with holders of the Debentures, the principle amount was reduced from $2,866,323 to $1,300,000 and it became a non-current liability. In addition, the Company disposed of a subsidiary, GGT, together with its related VAT payable $1,221,729 on June 30, 2012. As a result, the Company turned to a net current asset financial position and improved its ability to pay current and non-current liabilities." A copy of the Form 10-Q is available for free at: http://is.gd/2tBSsZ Tallahassee, Fla.-based China Teletech Holding, Inc., formerly Guangzhou Global Telecom, Inc., is a nationally distributor of pre-paid calling card and integrated mobile phone handsets and a provider of mobile handset value-added services. The Company is an independent qualified corporation that serves as one of principal distributors of China Telecom, China Unicom, and China Mobile products in Guangzhou City. * * * Samuel H. Wong & Co., LLP, in San Mateo, Calif., expressed substantial doubt about Guangzhou Global's ability to continue as a going concern, following the Company's results for the year ended Dec. 31, 2011. The independent auditors noted that the Company has incurred substantial losses, and has difficulty to pay the PRC government Value Added Tax and past due Debenture Holders Settlement. CHINA TEL GROUP: Delays Form 10-Q for Second Quarter ---------------------------------------------------- VelaTel Global Communications, Inc., formerly known as China Tel Group Inc., informed the U.S. Securities and Exchange Commission that it will be delayed in filing its quarterly report on Form 10-Q for the period ended June 30, 2012. The Company requires additional time to complete disclosure items and for review by professional advisors. About China Tel Based in San Diego, California, and Shenzhen, China, China Tel Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/-- provides high speed wireless broadband and telecommunications infrastructure engineering and construction services. Through its controlled subsidiaries, the Company provides fixed telephony, conventional long distance, high-speed wireless broadband and telecommunications infrastructure engineering and construction services. ChinaTel is presently building, operating and deploying networks in Asia and South America: a 3.5GHz wireless broadband system in 29 cities across the People's Republic of China with and for CECT-Chinacomm Communications Co., Ltd., a PRC company that holds a license to build the high speed wireless broadband system; and a 2.5GHz wireless broadband system in cities across Peru with and for Perusat, S.A., a Peruvian company that holds a license to build high speed wireless broadband systems. After auditing the 2011 results, Kabani & Company, Inc., in Los Angeles, California, expressed substantial doubt as to the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred a net loss for the year ended Dec. 31, 2011, cumulative losses of $254 million since inception, a negative working capital of $16.4 million and a stockholders' deficiency of $9.93 million. The Company reported a net loss of $21.79 million in 2011, compared with a net loss of $66.62 million in 2010. The Company's balance sheet at March 31, 2012, showed $13.57 million in total assets, $19.53 million in total liabilities and a $5.95 million total stockholders' deficiency. CHISEN ELECTRIC: Had $10.5 Million Net Loss in June 30 Quarter -------------------------------------------------------------- Chisen Electric Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $10.5 million on $20.4 million of revenues for the three months ended June 30, 2012, compared with net income of $8.3 million on $35.4 million of revenues for the three months ended June 30, 2011. "Net loss including non-controlling interest was $10,487,000 for three months ended June 30, 2012, as compared with a net income of $8,304,000 for the corresponding period in 2011. The decrease of $18,791,000 was mainly attributable to an increase in sales, marketing and distribution expenses, general and administrative expenses, other expenses, net, and interest expenses of $3,247,000, $724,000, $963,000, and $2,176,000, respectively as well as decrease in net gain on extraordinary items of $11,136,000." The Company's balance sheet at June 30, 2012, showed $263.9 million million in total assets, $247.5 million in total liabilities, and stockholders' equity of $16.4 million. "The Company had negative working capital of $50,883,000 as of June 30, 2012, and incurred loss [attributable to CIEC common stockholders] of US$10,408,000 for the three months ended June 30, 2012. These conditions raised substantial doubt about the Company's ability to continue as going concern." A copy of the Form 10-Q is available for free at: http://is.gd/erG7cf 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. * * * As reported in the TCR on July 5, 2012, Mazars CPA Limited, in Hong Kong, expressed substantial doubt about Chisen Electric's ability to continue as a going concern, following the Company's results for the year ended March 31, 2012. 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. CIRCUS AND ELDORADO: Files Second Plan Supplement ------------------------------------------------- BankruptcyData.com reports that Circus and Eldorado Joint Venture filed with the U.S. Bankruptcy Court a Second Plan Supplement for its First Amended Joint Chapter 11 Plan of Reorganization. The supplement contains the following documents: New Second Lien Indenture, Cram-Down Indenture, Form of Intercreditor Agreement, and New Subordinated Notes. About Circus and Eldorado Circus and Eldorado Joint Venture and Silver Legacy Capital Corp. filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case Nos. 12-51156 and 12-51157) on May 17, 2012. Circus and Eldorado Joint Venture owns and operates the Silver Legacy Resort Casino, a 19th century silver mining themed hotel, casino and entertainment complex located in downtown Reno, Nevada. The casino and entertainment areas at Silver Legacy are connected by skyway corridors to the neighboring Eldorado Hotel & Casino and the Circus Circus Hotel and Casino, each of which are owned by affiliates of the Debtors. Together, the three properties comprise the heart of the Reno market's prime gaming area and room base. Silver Legacy Capital is a wholly owned subsidiary of the Joint Venture and was created and exists for the sole purpose of serving as a co-issuer of the mortgage notes due 2012. SLCC has no operations, assets or revenues. Eldorado Hotel & Casino and Circus Circus Hotel and Casino are not debtors in the Chapter 11 cases. The Company did not make the required principal payment of its 10.125% mortgage notes on the maturity date of March 1, 2012. The company also elected not to make the scheduled interest payment. As a result, an aggregate of $142.8 million principal amount of Notes were outstanding and accrued interest of $7.23 million on the Notes, as of March 1, 2012, is due and payable. The Debtors have entered into a Restructuring Support Agreement with Capital Research and Management Company, a holder of a substantial portion of the mortgage notes. A copy of the RSA dated March 15, 2012, is available for free at http://is.gd/diDPh3 The RSA contemplates a proposed plan will be filed no later than June 1, 2012. The plan will contain creditor treatments that have already been negotiated with and agreed to by creditor constituents. The Debtors will seek approval of the explanatory disclosure statement within 45 days after the Petition Date and obtain confirmation of the Plan 60 days later. Judge Bruce T. Beesley presides over the case. Paul S. Aronzon, Esq., and Thomas P. Kreller, Esq., at Milbank, Tweed, Hadley & McCloy LLP; and Sallie B. Armstrong, Esq., at Downey Brand LLP, serve as the Debtors' counsel. The Debtors' financial advisor is FTI Consulting Inc. The claims agent is Kurtzman Carson Consultants LLC. The Bank of New York Mellon Trust Company, N.A., the trustee for the Debtors' 10-1/8% Mortgage Notes due 2012, is represented by Craig A. Barbarosh, Esq., and Karen B. Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP. Circus and Eldorado Joint Venture disclosed $264,649,800 in assets and $158,753,490 in liabilities as of the Chapter 11 filing. The petitions were signed by Stephanie D. Lepori, chief financial officer. The Plan dated June 1, 2012, pays much of its debt in cash and the balance with new secured liens. August B. Landis, Acting U.S. Trustee for Region 17, appointed three creditors to serve in the Official Committee of Unsecured Creditors in the Debtors' Chapter 11 cases. Stutman, Treister & Glatt Professional Corporation represents the Committee. CLARION RIVERVIEW: Case Summary & 2 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Clarion Riverview Apartments, Inc. 800 Greencrest Drive Shippenville, PA 16254 Bankruptcy Case No.: 12-11152 Chapter 11 Petition Date: August 14, 2012 Court: U.S. Bankruptcy Court Western District of Pennsylvania (Erie) Judge: Thomas P. Agresti Debtor's Counsel: Lawrence C. Bolla, Esq. QUINN LAW FIRM 2222 West Grandview Boulevard Erie, PA 16506-4508 Tel: (814) 833-2222 E-mail: lbolla@quinnfirm.com - and ? Michael P. Kruszewski, Esq. QUINN LAW FIRM 2222 West Grandview Boulevard Erie, PA 16506 Tel: (814) 833-2222 Fax: (814) 835-2076 E-mail: mkruszewski@quinnfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its two largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/pawb12-11152.pdf The petition was signed by Arthur E. Bushyeager, president. COMMONWEALTH BIOTECH: Delays Form 10-Q for Second Quarter --------------------------------------------------------- During the year ended Dec. 31, 2011, Commonwealth Biotechnologies, Inc., disposed of two material assets. The assets sold were a foreign subsidiary and a building consisting of office and laboratory space. These sales occurred during the second and fourth quarters of 2011. In order to ensure that these transactions are properly accounted for in accordance with GAAP and to provide the time needed for the Company's auditors to complete their review for the quarter ended June 30, 2012, the Company needs an extension of the prescribed time period to file its Form 10-Q for the quarter ended June 30, 2012. The Company will file its Form 10-Q within the time constraints provided by Rule 12b-25 promulgated under the Securities Exchange Act of 1934, as amended. About Commonwealth Biotechnologies Based in Midlothian, Virginia, Commonwealth Biotechnologies, Inc., was a specialized life sciences outsourcing business that offered cutting-edge expertise and a complete array of Peptide-based discovery chemistry and biology products and services through its wholly owned subsidiary Mimotopes Pty Limited. Commonwealth Biotechnologies Inc. filed for Chapter 11 bankruptcy protection (Bankr. E.D. Va. Case No. 11-30381) on Jan. 20, 2011. Judge Kevin R. Huennekens presides over the case. Paula S. Beran, Esq., at Tavenner & Beran, PLC, represents the Debtor. The Debtor estimated both assets and debts of between $1 million and $10 million. On April 7, 2011, the Bankruptcy Court approved the private sale of Mimotopes for a gross sales price of $850,000. The sale closed on April 29, 2011. Mimotopes was deconsolidated during the second quarter of 2011. The Company reported a net loss of $227,888 on $0 of revenue in 2011, compared with a net loss of $1 million on $0 of revenue in 2010. The Company's balance sheet at March 31, 2012, showed $1.30 million in total assets, $1.78 million in total liabilities and a $478,727 total stockholders' deficit. In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2011, Witt Mares, PLC, in Richmond, Virginia, noted that the Company's recurring losses from operations and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. COMMUNITY WEST: Posts $591,000 Net Loss in Second Quarter --------------------------------------------------------- Community West Bancshares filed its quarterly report on Form 10-Q, reporting a net loss of $591,000 on net interest income of $6.6 million for the three months ended June 30, 2012, compared with a net loss of $221,000 on net interest income of $7.1 million for the same period last year. For the six months ended June 30, 2012, the Company had net income of $228,000 on $13.1 million of net interest income, compared with net income of $375,000 on $14.2 million of net interest income for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $573.0 million in total assets, $522.6 million in total liabilities, and stockholders' equity of $50.4 million. Bank May Not Be Deemed "Well Capitalized According to the regulatory filing, on Jan. 26, 2012, the Bank, entered into a consent agreement with the Comptroller of the Currency ("OCC"), the Bank's primary banking regulator, which requires the Bank to take certain corrective actions to address certain deficiencies in the operations of the Bank, as identified by the OCC (the "OCC Agreement"). "Article III of the OCC Agreement requires a capital plan and requires that the Bank achieve and maintain a Tier 1 Leverage Capital ratio of 9% and Total Risk-Based Capital ratio of 12% on or before May 25, 2012. The Bank's Board of Directors has incorporated a three-year capital plan into the Bank's strategic plan. The Bank successfully met the minimum capital requirements as of May 25, 2012. otwithstanding that the Bank has achieved the required minimum capital ratios required by the OCC Agreement, the existence of a requirement to maintain a specific capital level in the OCC Agreement means that the Bank may not be deemed "well capitalized" under applicable banking regulations." A copy of the Form 10-Q is available for free at: http://is.gd/qfb5CP Goleta, Calif.-based Community West Bancshares ("CWBC") was incorporated in the State of California on Nov. 26, 1996, for the purpose of forming a bank holding company. On Dec. 31, 1997, CWBC acquired a 100% interest in Community West Bank, National Association. Effective that date, shareholders of CWB became shareholders of CWBC in a one-for-one exchange. The acquisition was accounted at historical cost in a manner similar to pooling- of-interests. Community West Bancshares is a bank holding company. CWB is the sole bank subsidiary of CWBC. CWBC provides management and shareholder services to CWB. COMMUNICATION INTELLIGENCE: Incurs $746,000 Net Loss in Q2 ---------------------------------------------------------- Communication Intelligence Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $746,000 on $525,000 of total revenue for the three months ended June 30, 2012, compared with a net loss of $1.05 million on $326,000 of total revenue for the same period during the prior year. The Company reported a net loss of $1.56 million on $1.19 million of total revenue for the six months ended June 30, 2012, compared with a net loss of $2.38 million on $604,000 of total revenue for the same period a year ago. The Company reported a net loss of $4.50 million for 2011, compared with a net loss of $4.16 million for 2010. The Company's balance sheet at June 30, 2012, showed $2.76 million in total assets, $4.09 million in total liabilities and a $1.33 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/8T3Cup About Communication Intelligence Redwood Shores, California-based Communication Intelligence Corporation is a supplier of electronic signature products and the recognized leader in biometric signature verification. In its audit report accompanying the financial statements for 2011, PMB Helin Donovan, LLP, in San Francisco, Calif., expressed substantial doubt about Communication Intelligence's ability to continue as a going concern. The independent auditors noted that of the Company's significant recurring losses and accumulated deficit. COMPETITIVE TECHNOLOGIES: Delays Form 10-Q for Second Quarter ------------------------------------------------------------- Competitive Technologies, Inc., has experienced delays in completing its financial statements for the fiscal quarter ended June 30, 2012. As a result, the Company is delayed in filing its Form 10-Q for the quarter then ended. About Competitive Technologies Fairfield, Conn.-based Competitive Technologies, Inc. (OTC QX: CTTC) -- http://www.competitivetech.net/-- was established in 1968. The Company provides distribution, patent and technology transfer, sales and licensing services focused on the needs of its customers and matching those requirements with commercially viable product or technology solutions. Sales of the Company's Calmare(R) pain therapy medical device continue to be the major source of revenue for the Company. After auditing the 2011 results, Mayer Hoffman McCann CPAs, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred operating losses since fiscal year 2006. The Company reported a net loss of $3.59 million in 2011. The Company reported a net loss of $2.40 million on $163,993 of product sales for the five months ended Dec. 31, 2010. The Company's balance sheet at March 31, 2012, showed $4.66 million in total assets, $6.82 million in total liabilities, all current, and a $2.15 million total shareholders' deficit. CRYOPORT INC: Incurs $1.5 Million Net Loss in June 30 Quarter ------------------------------------------------------------- CryoPort, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.54 million on $191,299 of net revenues for the three months ended June 30, 2012, compared with a net loss of $2.05 million on $123,751 of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $4.23 million in total assets, $1.96 million in total liabilities and $2.26 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/MAtwXs About CryoPort Inc. Headquartered in Lake Forest, Calif., CryoPort, Inc. (OTC BB: CYRXD) -- http://www.cryoport.com/-- provides innovative cold chain frozen shipping system dedicated to providing superior, affordable cryogenic shipping solutions that ensure the safety, status and temperature of high value, temperature sensitive materials. The Company has developed a line of cost-effective reusable cryogenic transport containers capable of transporting biological, environmental and other temperature sensitive materials at temperatures below 0-degree Celsius. The Company reported a net loss of $7.83 million for the year ended March 31, 2012, compared with a net loss of $6.15 million during the prior fiscal year. KMJ Corbin & Company LLP, in Costa Mesa, California, 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 has incurred recurring operating losses and has had negative cash flows from operations since inception. Although the Company has working capital of $4,024,120 and cash & cash equivalents of $4,617,535 at March 31, 2012, management has estimated that cash on hand, which include proceeds from the offering received in the fourth quarter of fiscal 2012, will only be sufficient to allow the Company to continue its operations only into the fourth quarter of fiscal 2013. These matters raise substantial doubt about the Company's ability to continue as a going concern. CUI GLOBAL: Kjell Qvale Discloses 7.7% Equity Stake --------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Kjell H. Qvale disclosed that, as of Aug. 10, 2012, he beneficially owns 840,770 shares of common stock of CUI Global Inc. representing 7.7% of the shares outstanding. A copy of the filing is available for free at http://is.gd/ObWOXD About CUI Global Tualatin, Ore.-based CUI Global, Inc., formerly known as Waytronx, Inc., is a platform company dedicated to maximizing shareholder value through the acquisition, development and commercialization of new, innovative technologies. CUI Global reported a net loss allocable to common stockholders of $48,763 in 2011, compared with a net loss allocable to common stockholders of $7.01 million in 2010. As reported by the TCR on April 8, 2011, Webb & Company, in Boynton Beach, Florida, expressed substantial doubt about CUI Global's ability to continue as a going concern. The independent auditors noted that the Company has a net loss of $7,015,896, a working capital deficiency of $675,936 and an accumulated deficit of $73,596,738 at Dec. 31, 2010. Webb & Company did not include a "going cocern qualification" in its report on the Company's 2011 financial results. The Company's balance sheet at June 30, 2012, showed $35.42 million in total assets, $11.28 million in total liabilities, and $24.13 million in total stockholders' equity. CYCLONE POWER: Incurs $883,669 Net Loss in Second Quarter --------------------------------------------------------- Cyclone Power Technologies, Inc., filed with the U.S. Securities and Exchange and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $883,669 on $380,445 of revenue for the three months ended June 30, 2012, compared with a net loss of $2.68 million on $0 of revenue for the same period during the prior year. The Company reported a net loss of $1.66 million on $380,445 of revenue for the six months ended June 30, 2012, compared with a net loss of $22.43 million on $0 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $1.68 million in total assets, $3.79 million in total liabilities and a $2.11 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/fJI9QO About Cyclone Power Pompano Beach, Fla.-based Cyclone Power Technologies, Inc. (Pink Sheets: CYPW) is a clean-tech engineering company, whose business is to develop, commercialize and license its patented Rankine cycle engine technology for applications ranging from renewable power generation to transportation. The Company is the successor entity to the business of Cyclone Technologies LLLP, a limited liability limited partnership formed in Florida in June 2004. Cyclone Technologies LLLP was the original developer and intellectual property holder of the Cyclone engine technology. The Company reported a net loss of $23.70 million in 2011, compared with a net loss of $2.02 million in 2010. In its audit report for the year ended Dec. 31, 2011, results, Mallah Furman, in Fort Lauderdale, FL, noted that the Company's dependence on outside financing, lack of sufficient working capital, and recurring losses raises substantial doubt about its ability to continue as a going concern. DAIS ANALYTIC: Reports $299,500 Net Income in Second Quarter ------------------------------------------------------------ Dais Analytic Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $299,497 on $649,015 of revenue for the three months ended June 30, 2012, compared with net income of $791,585 on $1.12 million of revenue for the same period during the prior year. The Company reported net income of $281,114 on $1.68 million of revenue for the six months ended June 30, 2012, compared with a net loss of $2.49 million on $1.98 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $1.16 million in total assets, $5.81 million in total liabilities and a $4.64 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/IiMdua About Dais Analytic Odessa, Fla.-based Dais Analytic Corporation has developed and patented a nano-structure polymer technology, which is being commercialized in products based on the functionality of these materials. The initial product focus of the Company is ConsERV, an energy recovery ventilator. The Company also has new product applications in various developmental stages. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, Cross, Fernandez & Riley LLP, in Orlando, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses since inception and has a working capital deficit and stockholders' deficit of $3.22 million and $4.90 million at Dec. 31, 2011. The Company reported a net loss of $2.33 million in 2011, compared with a net loss of $1.43 million in 2010. DELTA OIL & GAS: Had $185,600 Net Loss in Second Quarter -------------------------------------------------------- Delta Oil & Gas, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of US$185,668 on US$121,057 of revenue for the three months ended June 30, 2012, compared with net income of US$81,471 on US$405,068 of revenue for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of US$289,921 on US$247,775 of revenue, compared with net income of US$19,912 on US$815,592 of revenue for the corresponding period in 2011. The Company's balance sheet at June 30, 2012, showed US$2.0 million in total assets, US$148,390 in total liabilities, and stockholders' equity of US$1.8 million. "The Company has incurred a net loss of $5,762,604 since inception. To achieve profitable operations, the Company requires additional capital for obtaining producing oil and gas properties through either the purchase of producing wells or successful exploration activity. Management believes that sufficient funding will be available to meet its business objectives including anticipated cash needs for working capital and is currently evaluating several financing options. However, there can be no assurance that the Company will be able to obtain sufficient funds to continue the development of its properties and, if successful, to commence the sale of its projects under development. As a result of the foregoing, there exists substantial doubt {about] the Company's ability to continue as a going concern. A copy of the Form 10-Q is available for free at: http://is.gd/GHXQBq As reported in the TCR on April 5, 2012, Mark Bailey & Company, Ltd., in Reno, Nevada, expressed substantial doubt about Delta Oil'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 incurred recurring losses from operations. About Delta Oil & Gas Vancouver, Canada-based Delta Oil & Gas, Inc., is engaged in the acquisition, development and production of oil and natural gas properties in North America. DEWEY & LEBOEUF: Deal Serves as Bankruptcy Blueprint, Experts Say ----------------------------------------------------------------- Megan Leonhardt at Bankruptcy Law360 reports that with former Dewey & LeBoeuf LLP partners already agreeing to pay over $70 million to settle proposed clawback claims, experts say that the firm's early settlement approach will likely win approval and could act as a road map in future law firm collapses. Bankruptcy Law360 relates that more than half of former Dewey partners have already agreed to pay $70 million in exchange for an agreement that would block any future clawback litigation from the firm and creditors, leaping over the $50 million the threshold. 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 US$245 million and assets of US$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 US$6 million. The Pension benefit Guaranty Corp. took US$2 million of the proceeds as part of a settlement. The Debtor disclosed $368,117,240 in assets and $348,817,408 in liabilities as of the Chapter 11 filing. 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 Former Partners hired lawyers at Kasowitz, Benson, Torres & Friedman LLP, as counsel. The Official Committee of Unsecured Creditors tapped Deloitte Financial Advisory Services LLP as its financial advisor. DEWEY & LEBOEUF: Ex-Partners Commit $70MM to Clawback Deal ---------------------------------------------------------- Megan Leonhardt at Bankruptcy Law360 reports that Dewey & LeBoeuf LLP's bankruptcy restructuring team has secured more than $70 million from former partners in a proposed $90.4 million settlement deal that would shield attorneys from potential clawback litigation, according to an update sent to partners Friday. Bankruptcy Law360 relates that the firm's former partners had until 5 p.m. on Thursday to sign a proposed settlement deal in which they said they would pay the money in exchange for an agreement that would block any future clawback litigation from the firm and creditors. 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 US$245 million and assets of US$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 US$6 million. The Pension benefit Guaranty Corp. took US$2 million of the proceeds as part of a settlement. The Debtor disclosed $368,117,240 in assets and $348,817,408 in liabilities as of the Chapter 11 filing. 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 Former Partners hired lawyers at Kasowitz, Benson, Torres & Friedman LLP, as counsel. The Official Committee of Unsecured Creditors tapped Deloitte Financial Advisory Services LLP as its financial advisor. DEX MEDIA EAST: Bank Debt Trades at 45% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media East LLC is a borrower traded in the secondary market at 55.30 cents-on- the-dollar during the week ended Friday, Aug. 17, an increase of 1.66 percentage points from the previous week according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. The Company pays 250 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 24, 2014. The loan is one of the biggest gainers and losers among 165 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About R.H. Donnelley & Dex Media East Dex One, headquartered in Cary, North Carolina, is a local business marketing services company that includes print directories and online voice and mobile search. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media Inc., filed for Chapter 11 protection (Bank. D. Del. Case No. 09-11833 through 09-11852) on May 28, 2009. They emerged from bankruptcy on Jan. 29, 2010. On the Effective Date and in connection with its emergence from Chapter 11, RHD was renamed Dex One Corporation. Dex One reported a net loss of $518.96 million in 2011 compared with a net loss of $923.59 million for the eleven months ended Dec. 31, 2010. * * * As reported in the April 2, 2012 edition of the TCR, Moody's Investors Service has downgraded the corporate family rating (CFR) for Dex One Corporation's to Caa3 from B3 based on Moody's view that a debt restructuring is inevitable. Moody's has also changed Dex's Probability of Default Rating (PDR) to Ca/LD from B3 following the company's purchase of about $142 million of par value bank debt for about $70 million in cash. The Caa3 rating also reflects Moody's view that additional exchanges at a discount are likely in the future since the company amended its bank covenants to make it possible to repurchase additional bank debt on the open market through the end of 2013. As reported by the TCR on April 4, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Cary, N.C.-based Dex One Corp. and related entities to 'CCC' from 'SD' (selective default). "The upgrade reflects our assessment of the company's credit profile after the completion of the subpar repurchase transaction in light of upcoming maturities, future subpar repurchases, and our expectation of a continued week operating outlook," explained Standard & Poor's credit analyst Chris Valentine. DIRECT MARKETS: Posts $9 Million Net Loss in Second Quarter ----------------------------------------------------------- Direct Markets Holdings Corp., fka. Rodman & Renshaw Capital Group, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $9.0 million on $6.7 million of revenues for the three months ended June 30, 2012, compared with a net loss of $7.9 million on $15.9 million of revenues for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $7.0 million on $32.2 million of revenues, compared with a net loss of $8.1 million on $43.2 million of revenues for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $28.2 million in total assets, $13.1 million in total liabilities, and stockholders' equity of $15.1 million. According to the regulatory filing, the Company has experienced recurring losses from operations, and such losses may continue for the foreseeable future. "As of Aug. 9, 2012, the Company had approximately $6.8 million in liquid assets. If the Company cannot generate revenue in the near term, it will need to raise additional capital to continue to fund its operating activities. The Company is currently exploring several financing and strategic options; however, there can be no assurance that the Company will be able to complete any such transaction in a timely manner, if at all, and cannot predict what the terms of any such transaction will be. Any financing or strategic transaction may be dilutive to existing stockholders and may include covenants restricting the Company's ability to operate freely or make it more difficult for the Company to raise money in the future. "If the Company's capital raising and/or strategic initiative efforts are unsuccessful, its inability to finance ongoing operations could have a material adverse effect on the Company's financial position, results of operations and business and the Company may have to curtail its operations. These factors raise substantial doubt about the Company's ability to continue as a going concern." A copy of the Form 10-Q is available for free at: http://is.gd/3ANSiI New York City-based Direct Markets Holdings Corp. (NASDAQ: MKTS) is a full-service investment bank dedicated to providing corporate finance, strategic advisory and related services to public and private companies across multiple sectors and regions. Direct Markets Holdings Corp. is a holding company with a number of direct and indirect subsidiaries, including Direct Markets, Inc., and Rodman & Renshaw, LLC. DRINKS AMERICAS: Incurs $783,000 Net Loss in Fiscal 2012 -------------------------------------------------------- Drinks Americas Holdings, Ltd., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $783,088 on $4.39 million of net sales for the year ended April 30, 2012, compared with a net loss of $4.58 million on $497,453 of net sales during the prior year. The Company's balance sheet at April 30, 2012, showed $7.30 million in total assets, $5.19 million in total liabilities and $2.10 million in total stockholders' equity. Bernstein & Pinchuk LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the fiscal year ended April 30, 2012. The independent auditors noted that the Company has incurred significant losses from operations since its inception and has a working capital deficiency which raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-K is available for free at: http://is.gd/pDJRXK About Drinks Americas Headquartered in Wilton, Conn., Drinks Americas Holdings, Ltd. -- http://www.drinksamericas.com/-- through its majority-owned subsidiaries, Drinks Americas, Inc., Drinks Global, LLC, D.T. Drinks, LLC, and Olifant U.S.A Inc., imports, distributes and markets unique premium wine and spirits and alcoholic beverages associated with icon entertainers, celebrities and destinations, to beverage wholesalers throughout the United States. DUTCH GOLD: Delays Form 10-Q for Second Quarter ----------------------------------------------- Dutch Gold Resources, Inc., was unable to compile the necessary financial information required to prepare a complete filing of its quarterly report on Form 10-Q for the period ended June 30, 2012. Thus, the Company was unable to file the periodic report in a timely manner without unreasonable effort or expense. The Company expects to file within the extension period. About Dutch Gold Based in Atlanta, Ga., Dutch Gold Resources, Inc. (OTC: DGRI) -- http://www.dutchgoldresources.com/-- is a junior gold miner focused on developing its existing mining properties in North America and acquiring and developing new mines that can enter into production in 12 to 24 months. After auditing the 2011 results, Hancock Askew & Co., LLP, in Norcross, Georgia, noted that the Company has limited liquidity and has incurred recurring losses from operations and other conditions exist which raise substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of $4.58 million on $0 of sales in 2011, compared with a net loss of $3.69 million on $0 of revenue in 2010. The Company's balance sheet at March 31, 2012, showed $2.64 million in total assets, $7.52 million in total liabilities and a $4.87 million total stockholders' deficit. DYNEGY INC: Has Stalking Horse; Aug. 31 Hearing on Sale Rules ------------------------------------------------------------- BankruptcyData.com reports that Dynegy Inc. filed with the U.S. Bankruptcy Court a motion for approval of bid and notice procedures for the sale, auction, and sale hearing related to the Debtors' Roseton and Danskammer power generation facilities. Dynegy stated, "Currently, the Operating Debtors have not selected a "stalking horse" bidder for the Facilities, and believe that an orderly auction process is in the best interests of the Operating Debtors' estates." The Court scheduled an Aug. 31, 2012 hearing on the matter. About Dynegy 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. 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, 2011, 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. Dynegy Inc. on July 6, 2012, filed a voluntary petition to reorganize under Chapter 11 (Bankr. S.D.N.Y. Case No. 12-36728) to effectuate a merger with Dynegy Holdings, pursuant to Holdings' Chapter 11 plan. A settlement, which has already been approved by the bankruptcy court, provides for Dynegy Inc. and Holdings to merge and for the administrative claim granted to Dynegy Inc. in the Holdings Chapter 11 case to be transferred out of Dynegy Inc. for the benefit of its shareholders. 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. The financial advisor is FTI Consulting. Epiq Bankruptcy Solutions, LLC, as its notice and claims agent. The deadline for voting on and for objecting to the Joint Plan is Aug. 24, 2012. The Joint Plan is subject to confirmation by the Bankruptcy Court and the confirmation hearing is scheduled for Sept. 5, 2012. The Plan provides for, among other things, that Dynegy Holdings will be merged with and into Dynegy Inc., with Dynegy Inc. being the Surviving Entity. The Plan provides that each holder of an Allowed General Unsecured Claim against the Surviving Entity will receive its Pro Rata Share of (a) 99% of the Reorganized Dynegy Common Stock, (b) the Plan Cash Payment (of $200,000,000), and (c) the Allocated Facilities Sale Proceeds (the amount of which is to be determined. The Official Committee of Unsecured Creditors in Holdings' cases has tapped Akin Gump Strauss Hauer & Feld LLP as counsel. Dynegy Inc. is represented by White & Case LLP and advised by Lazard Freres & Co. LLC. Dynegy Inc., Dynegy Holdings, LLC, the Consenting Senior Noteholders, the Consenting Lease Certificate Holders and Resources Capital Management Corporation entered into the First Amendment to the Amended Plan Support Agreement. EAST COAST: Incurs $1.5 Million Net Loss in Second Quarter ---------------------------------------------------------- East Coast Diversified Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.50 million on $451,200 of total revenues for the three months ended June 30, 2012, compared with a net loss of $247,098 on $206,014 of total revenues for the same period a year ago. The Company reported a net loss of $2.26 million on $901,694 of total revenues for the six months ended June 30, 2012, compared with a net loss of $495,522 on $370,092 of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $2.49 million in total assets, $3.15 million in total liabilities, $1.10 million in contingent acquisition liabilities, $709,122 in amounts payable in common stock, $381,835 in derivative liability, and a $2.85 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/xucgxo About East Coast Diversified 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. 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. EASTBRIDGE INVESTMENT: Incurs $171,700 Net Loss in 2nd Quarter -------------------------------------------------------------- EastBridge Investment Group Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $171,725 on $166,771 of revenue for the three months ended June 30, 2012, compared with a net loss of $341,182 on $28,000 of revenue for the same period a year ago. The Company reported a net loss of $416,100 on $166,771 of revenue for the six months ended June 30, 2012, compared with a net loss of $669,463 on $28,000 of revenue for the same period during the prior year. The Company reported a net loss of $766,414 in 2011, compared with a net loss of $174,955 in 2010. The Company's balance sheet at June 30, 2012, showed $1.07 million in total assets, $1.79 million in total liabilities and a $720,744 total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/xbpEzU About EastBridge Investment Scottsdale, Arizona-based EastBridge Investment Group Corporation is one of a small group of United States companies solely concentrated in marketing business consulting services to closely held, small to mid-size Asian companies that require these services for expansion. EastBridge had fourteen clients as of the date of this filing, that it is assisting in becoming public companies, reporting pursuant to the Securities Exchange Act of 1934, as amended, in the United States and obtaining listings for their stock on a U.S. stock exchange or over-the-counter market. All clients are located in Asia-Pacifica. In its audit report for the 2011 results, Tarvaran Askelson & Company, LLP, in Laguna Niguel, California, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company's viability is dependent upon its ability to obtain future financing and the success of its future operations. EAT AT JOE'S: Incurs $44,000 Net Loss in Second Quarter ------------------------------------------------------- Eat at Joe's Ltd. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $44,143 on $289,503 of revenue for the three months ended June 30, 2012, compared with net income of $152,647 on $163,881 of revenue for the same period during the prior year. The Company reported a net loss of $21,782 on $602,472 of revenue for the six months ended June 30, 2012, compared with net income of $11,929 on $334,973 of revenue for the same period a year ago. The Company reported a net loss of $152,900 in 2011, compared with a net loss of $621,800 in 2010. The Company's balance sheet at June 30, 2012, showed $1.65 million in total assets, $4.96 million in total liabilities and a $3.30 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/nMAko3 About Eat at Joe's Scarsdale, N.Y.-based Eat at Joe's, Ltd., presently owns and operates one theme restaurant located in Philadelphia, Pennsylvania. In its audit report for the 2011 results, Robison, Hill & Co., in Salt Lake City, Utah, noted that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. EDIETS.COM INC: Delays Form 10-Q for Second Quarter --------------------------------------------------- eDiets.com, Inc., and the Company's wholly-owned subsidiary, Nutrio.com, Inc., sold all of their right, title and interest in and to the Company's corporate services business. Thereafter, the Company's independent registered public accounting firm was unable to complete its review of the Company's financial statements to be contained in its quarterly report on Form 10-Q for the period ended June 30, 2012, on or prior to the prescribed filing date of Aug. 14, 2012. As a result, the Company was not able to finalize its Quarterly Report on Form 10-Q within the prescribed time period. About eDiets eDiets.com, Inc. is a leading provider of personalized nutrition, fitness and weight-loss programs. eDiets currently features its award-winning, fresh-prepared diet meal delivery service as one of the more than 20 popular diet plans sold directly to members on its flagship site, http://www.eDiets.com Following the 2011 results, Ernst & Young 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 incurred recurring operating losses, was not able to meet its debt obligations in the current year and has a working capital deficiency. The Company's balance sheet at March 31, 2012, showed $2.29 million in total assets, $4.58 million in total liabilities, all current, and a $2.28 million total stockholders' deficit. Bankruptcy Warning The Company said in its 2011 annual report that the continuation of its business is dependent upon raising additional financial support. In light of the Company's results of operations, management has and intends to continue to evaluate various possibilities. These possibilities include: raising additional capital through the issuance of common or preferred stock, securities convertible into common stock, or secured or unsecured debt, selling one or more lines of business, or all or a portion of the Company's assets, entering into a business combination, reducing or eliminating operations, liquidating assets, or seeking relief through a filing under the U.S. Bankruptcy Code. These possibilities, to the extent available, may be on terms that result in significant dilution to the Company's existing stockholders or that result in the Company"s existing stockholders losing all of their investment in the Company. EGPI FIRECREEK: Delays Form 10-Q for Second Quarter --------------------------------------------------- EGPI Firecreek, Inc., is delayed in filing its quarterly report on Form 10-Q for the quarter ended June 30, 2012, in order to enable its independent registered public accounting firm to complete its review of the Company's financial statements to be contained in the Report and for XBRL processing requirements. About EGPI Firecreek Scottsdale, Ariz.-based EGPI Firecreek, Inc. (OTC BB: EFIR) was formerly known as Energy Producers, Inc., an oil and gas production company focusing on the recovery and development of oil and natural gas. The Company has been focused on oil and gas activities for development of interests held that were acquired in Texas and Wyoming for the production of oil and natural gas through Dec. 2, 2008. Historically in its 2005 fiscal year, the Company initiated a program to review domestic oil and gas prospects and targets. As a result, EGPI acquired non-operating oil and gas interests in a project titled Ten Mile Draw located in Sweetwater County, Wyoming for the development and production of natural gas. In July 2007, the Company acquired and began production of oil at the 2,000 plus acre Fant Ranch Unit in Knox County, Texas. This was followed by the acquisition and commencement in March 2008 of oil and gas production at the J.B. Tubb Leasehold Estate located in the Amoco Crawar Field in Ward County, Texas. The Company's balance sheet at March 31, 2012, showed $2.63 million in total assets, $5.89 million in total liabilities, all current, $1.86 million in series D preferred stock, and a $5.12 million total shareholders' deficit. The Company reported a net loss of $4.97 million in 2011, compared with a net loss of $4.48 million in 2010. In its audit report for the 2011 results, M&K CPAS, PLLC, in Houston, Texas, noted that the Company has suffered recurring losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. EL PASO HOLDCO: Moody's Raises Sr. Secured Debt Ratings to 'Ba2' ---------------------------------------------------------------- Moody's Investors Service upgraded the senior secured debt ratings for El Paso Holdco (EPH) to Ba2 from Ba3, concluding the review that was initiated on July 17, 2012 shortly after Kinder Morgan Inc. (KMI) announced plans to guarantee the debt of EPH. Moody's also upgraded the senior unsecured debt rating for Tennessee Gas Pipeline Company (TGP) and El Paso Natural Gas Company (EPNG) to Baa1 from Baa3 to reflect the change in ownership for these two large natural gas pipeline companies. On August 13, 2012, EPH completed the sale of TGP and 50% of EPNG to Kinder Morgan Energy Partners, L.P. (KMP). The senior secured debt rating of KMI and the senior unsecured debt rating for KMP remain Ba2 and Baa2, respectively. A complete list of Moody's rating actions is as follows: Kinder Morgan, Inc. (f/k/a Kinder Morgan Kansas) Senior Secured Credit Facility -- changed to LGD3-44% from LGD3-49% Senior Secured Debt -- changed to LGD3-44% from LGD3-49% Junior Subordinated Debt -- changed to LGD6-93% from LGD6-97% Kinder Morgan Finance Company Backed Senior Secured Debt -- assigned a LGD3-44% KN Capital Trust I Backed Preferred Stock -- assigned a LGD6-93% KN Capital Trust III Backed Preferred Stock -- assigned a LGD6-93% El Paso Holdco LLC (f/k/a El Paso Corporation) Corporate Family Rating -- withdrawn Probability of Default -- withdrawn Senior Secured Debt -- Upgraded to Ba2 (LGD3-44%) from Ba3 (LGD4-55%) Medium Term Note Program - withdrawn Convertible Subordinated Debt -- Upgraded to B1 (LGD6-96%) from B2 (LGD6-97%) Speculative Grade Liquidity Rating -- withdrawn Outlook is changed to negative from RUR-U. El Paso Energy Capital Trust I Backed Preferred Stock -- Upgraded to B1 (LGD6-96%) from B2 (LGD6-97%) Outlook is changed to negative from RUR-U El Paso CGP Backed Senior Secured Debt -- Upgraded to Ba2 from Ba3; assigned a LGD3-44% Outlook is changed to negative from RUR-U. Sonat Inc. Backed Senior Secured Debt -- Upgraded to Ba2 from Ba3; assigned a LGD3-44% Outlook is changed to negative from RUR-U. El Paso Tennessee Pipeline Company Senior Unsecured Debt -- Upgraded to Baa2 from Ba3; LGD withdrawn Outlook is changed to stable from positive. Tennessee Gas Pipeline Company Senior Unsecured Debt -- Upgraded to Baa1 from Baa3 Outlook is changed to stable from positive. El Paso Natural Gas Company Senior Unsecured Debt -- Upgraded to Baa1 from Baa3 Outlook is changed to stable from positive. "Kinder Morgan Inc. has a world-class portfolio of assets but remains highly-leveraged after the acquisition of El Paso Corporation earlier this year. Moody's continues to have a negative outlook because of the significant execution risk associated with Kinder's debt reduction plan. The upgrade of EPH to Ba2 reflects the unconditional guarantee from KMI that became effective on August 14, 2012," said Stuart Miller, Moody's Vice President and Senior Credit Officer. "The upgrades of Tennessee Gas Pipeline and El Paso Natural Gas Pipeline to Baa1 reflect the change in ownership to Kinder Morgan Energy Partners, a company with a much stronger credit profile than the previous owner, El Paso." Ratings Rationale KMI owns a portfolio of infrastructure assets that generate a relatively stable source of cash flow that is used to fund distributions to El Paso Pipeline Partners Operating Company (EPBO) and KMP unitholders, as well as to KMI shareholders. The cash flow, supplemented by the issuance of debt and equity in the capital markets, is also used to fund the company's rapid expansion. KMI's Ba2 rating reflects its superior scale, but tempered by an aggressive financial policy as evidenced by its high leverage. At June 30, 2012, and pro forma for the completion of required Federal Trade Commission asset divestitures, KMI's leverage is projected to be 6.5x. This figure includes the company's proportionate share of the cash flow and debt from its two master limited partnerships (MLPs) and its other non-wholly owned subsidiaries. Over time, KMI's leverage is expected to fall to about 4.5x as assets are sold by KMI to KMP and EPBO. These asset "drop-downs" are expected to be financed through the issuance of debt and equity by the MLPs. Equity issuance will be sized in an amount to maintain the leverage at both MLPs in a range between 4.0x and 4.5x. At the end of June 2012, the leverage for KMP and EPBO were estimated to be about 4.4x. KMI's rating also incorporates the higher earnings volatility and capital intensity associated with its oil, gas, and CO2 production business. KMI's rating is influenced by the leverage of EPH and its two MLPs. KMI unconditionally guarantees the debt of EPH. Should the leverage increase at the MLPs, it could limit the amount of support either could provide to the debt that is at the KMI and EPH levels. Similarly, the leverage at KMI and EPH influences the ratings at the MLPs as higher debt levels could provide an impetus to accelerate distributions out of the MLPs. Any distributions from the MLPs must be shared with public unit holders which represents "leakage" out of the Kinder family of companies. KMI's rating is three notches below KMP's rating to reflect its structural subordination to the significant amount of debt at KMP, its reliance on equity distributions from KMP and EPBO, and its guarantee of EPH's debt. With the unconditional guarantee of EPH's debt by KMI, Moody's upgraded EPH's secured debt rating to KMI's level - Ba2. Without the explicit guarantee, EPH's rating would be lower as its leverage on a stand-alone basis is approximately 9.0x after taking into account the drop down of TGP and EPNG. The unsecured debt ratings of TGP and EPNG were upgraded to Baa1 to reflect their conservative capital structure and relatively steady earnings of these long-haul, FERC regulated pipeline companies. Previously, when the two companies were 100% owned by EPH, their Baa3 senior unsecured debt ratings were restrained by the high debt levels at the EPH level. With the recent sale of TGP and 50% of EPNG to KMP, the restraint has been lifted. Their new senior unsecured debt ratings of Baa1 are one notch higher KMP's senior unsecured debt rating of Baa2 to reflect the structural superiority of the debt at the pipeline company level. KMI relies heavily on distributions from KMP to service its debt and to pay dividends to its shareholders. For day to day liquidity, KMI's primary source of liquidity is its $1.75 billion bank credit facility. Usage at June 30, 2012 was approximately $993 million leaving over $750 million of availability. KMI's liquidity is considered to be adequate (Speculative Grade Liquidity rating of SGL-3), however its credit facility is currently scheduled to expire within the next twelve months - in May 2013. Moody's does not expect the maintenance financial covenants to limit its ability to access its credit facility at any time prior to its expiration. Because this facility is secured by essentially all of KMI's assets, secondary liquidity is limited. The negative outlook for KMI reflects the company's highly leveraged financial position and the significant execution risk associated with the plan to reduce leverage. An upgrade of KMI is unlikely until KMI's leverage is less than 5.0x, but only if KMP's leverage is no greater than 4.5x. KMI's rating could be downgraded if leverage is maintained at current levels through the second half of 2013. Additionally, if KMP's leverage approaches 5.0x, its more leveraged financial position and weakened ability to provide support to KMI's debt, could result in a downgrade of both companies. The principal methodology used in rating Kinder Morgan was the Global Midstream Energy Industry Methodology published in December 2010. The principal methodology used in rating Tennessee Gas and El Paso Natural Gas was the Natural Gas Pipelines Industry Methodology published in December 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Kinder Morgan, Inc. is one of the largest midstream companies in the US. The company operates product pipelines, natural gas pipelines, liquids and bulk terminals, and CO2, oil, and natural gas production and transportation assets. The company is headquartered in Houston, Texas. ELITE PHARMACEUTICALS: Incurs $10.5-Mil. Net Loss in June 30 Qtr. ----------------------------------------------------------------- Elite Pharmaceuticals, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common shareholders of $10.52 million on $578,556 of total revenues for the three months ended June 30, 2012, compared with a net loss attributable to common shareholders of $30.73 million on $989,976 of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $10.18 million in total assets, $33.54 million in total liabilities and a $23.35 million total stockholders' deficit. Jerry Treppel, Chairman and CEO of Elite commented, "We have made progress on many fronts." "[O]ur currently marketed products continue to grow generating more revenue for Elite. Our development projects with clients continue to move forward. The development of our abuse-resistance products continue to move forward. We are just now completing an FDA general cGMP review and several pre-approval inspection reviews of our facility. These are necessary to achieve our product approval goals as well as to begin commercial production in our new manufacturing space." A copy of the Form 10-Q is available for free at: http://is.gd/wMOa1L About Elite Pharmaceuticals Northvale, New Jersey-based Elite Pharmaceuticals, Inc., is a specialty pharmaceutical company principally engaged in the development and manufacture of oral, controlled-release products, using proprietary technology and the development and manufacture of generic pharmaceuticals. The Company has one product, Phentermine 37.5mg tablets, currently being sold commercially. Elite Pharmaceuticals reported a net loss attributable to common shareholders of $15.05 million for the year ended March 31, 2012, compared with a net loss attributable to common shareholders of $13.58 million during the prior year. Demetrius & Company, L.L.C., in Wayne, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2012, citing significant losses resulting in a working capital deficiency and shareholders' deficit, which raise substantial doubt about the Company's ability to continue as a going concern. ELMIRA DOWNTOWN: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Elmira Downtown Arena, LLC 155 N. Main Street Elmira, NY 14901 Bankruptcy Case No.: 12-21361 Chapter 11 Petition Date: August 16, 2012 Court: United States Bankruptcy Court Western District of New York (Rochester) Judge: Paul R. Warren Debtor's Counsel: Joshua P. Fleury, Esq. PHILLIPS LYTLE LLP 3400 HSBC Center Buffalo, NY 14203 Tel: (716) 847-5431 E-mail: jfleury@phillipslytle.com Estimated Assets: $100,001 to $500,000 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/nywb12-21361.pdf The petition was signed by Mostafa Afr, member. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Mt. Clemens Investment 10-71025 10/07/10 EMERSON HOLDINGS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Emerson Holdings, LLC 214 Kinderkamack Road Emerson, NJ 07630 Bankruptcy Case No.: 12-30352 Chapter 11 Petition Date: August 16, 2012 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Novalyn L. Winfield Debtor's Counsel: Leonard C. Walczyk, Esq. WASSERMAN, JURISTA & STOLZ 225 Millburn Ave., Suite 207 P.O. Box 1029 Millburn, NJ 07041-1712 Tel: (973) 467-2700 E-mail: lwalczyk@wjslaw.com Scheduled Assets: $1,876,400 Scheduled Liabilities: $1,748,830 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/njb12-30352.pdf The petition was signed by Gregory Kyritsis, president. EON COMMUNICATIONS: Receives Deficiency NASDAQ Letter ----------------------------------------------------- eOn Communications Corporation(TM), a leading provider of telecommunications solutions, disclosed that on Aug. 15, 2012 it received a Nasdaq Deficiency Letter from the Nasdaq Stock Market. The letter states that for the last 30 consecutive business days, the closing bid price per share of the Company's common stock has been below the $1.00 minimum share requirement for continued listing as set forth in Nasdaq Marketplace Rule 5550(a) (2). According to Nasdaq Marketplace Rule 5810(c) (3) (A), the Company will be provided 180 calendar days, or until Feb. 12, 2013, to regain compliance. The Nasdaq letter has no effect on the listing of the Company's common stock at this time. If at any time before Feb. 12, 2013, the bid price of the Company's common stock closes at $1.00 per share or more for ten consecutive business days Nasdaq will recognize that the Company has regained compliance with the Rule and the Company's common stock will remain listed on the Nasdaq Stock Exchange. If the Company does not regain compliance, the Company may be eligible for additional time to comply. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If the Company meets these requirements, Nasdaq will inform the Company that it has been granted an additional 180 calendar days to comply. However, if it appears to the Nasdaq staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, Nasdaq staff will provide notice that the Company's securities will be subject to delisting. About eOn Communications(TM) eOn Communications Corporation(TM) -- http:// www.eoncommunications.com/ -- is a global provider of innovative communications solutions. Backed by over 20 years of telecommunications engineering expertise, our solutions enable our customers to easily leverage advanced technologies in order to communicate more effectively. EPAZZ INC: Delays Form 10-Q for Second Quarter for Review --------------------------------------------------------- Epazz, Inc., has experienced delays in completing its financial statements for the quarter ended June 30, 2012, as its auditor has not had sufficient time to review the financial statements for the quarter ended June 30, 2012. As a result, the Company is delayed in filing its Form 10-Q for the quarter ended June 30, 2012. About EPAZZ Inc. Chicago, Ill.-based EPAZZ, Inc., was incorporated in the State of Illinois on March 23, 2000, to create software to help college students organize their college information and resources. The idea behind the Company was that if the information and resources provided by colleges and universities was better organized and targeted toward each individual, the students would encounter a personal experience with the college or university that could lead to a lifetime relationship with the institution. This concept is already used by business software designed to retain relationships with clients, employees, vendors and partners. In its report on the financial statements for 2011, Lake & Associates CPA's LLC, in Schaumburg, Illinois, expressed substantial doubt as to the Company's ability to continue as a going concern. The independent auditors noted that the Company has a significant accumulated deficit and continues to incur losses. The Company's viability is dependent upon its ability to obtain future financing and the success of its future operations. The Company reported a net loss of $336,862 in 2011, compared with net income of $120,785 in 2010. The Company's balance sheet at March 31, 2012, showed $1.42 million in total assets, $2.15 million in total liabilities and a $732,622 total stockholders' deficit. Bankruptcy Warning The Company said in its 2011 annual report that it cannot be certain that any financing will be available on acceptable terms, or at all, and the Company's failure to raise capital when needed could limit its ability to continue and expand its business. The Company intends to overcome the circumstances that impact its ability to remain a going concern through a combination of the commencement of additional revenues, of which there can be no assurance, with interim cash flow deficiencies being addressed through additional equity and debt financing. The Company's ability to obtain additional funding for the remainder of the 2012 year and thereafter will determine its ability to continue as a going concern. There can be no assurances that these plans for additional financing will be successful. Failure to secure additional financing in a timely manner to repay the Company's obligations and supply the Company sufficient funds to continue its business operations and on favorable terms if and when needed in the future could have a material adverse effect on its financial performance, results of operations and stock price and require the Company to implement cost reduction initiatives and curtail operations. Furthermore, additional equity financing may be dilutive to the holders of the Company's common stock, and debt financing, if available, may involve restrictive covenants, and strategic relationships, if necessary to raise additional funds, and may require that the Company relinquish valuable rights. In the event that the Company is unable to repay its current and long-term obligations as they come due, the Company could be forced to curtail or abandon its business operations, or file for bankruptcy protection; the result of which would likely be that the Company's securities would decline in value or become worthless. ESP RESOURCES: Had $649,100 Net Loss in Second Quarter ------------------------------------------------------ ESP Resources, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $649,125 on $5.6 million of sales for the three months ended June 30, 2012, compared with a net loss of $1.2 million on $2.3 million of sales for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $1.0 million on $9.9 million of sales, compared with a net loss of $2.0 million on $4.1 million of sales for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $9.6 million in total assets, $8.4 million in total liabilities, and stockholders' equity of $1.2 million. "Since inception, we have incurred losses and through June 30, 2012, totaling $15,521,965. Because of these historical losses, we will require additional working capital to develop our business operations. We intend to raise additional working capital through private placements, bank financing and/or advances from related parties or shareholder loans." As reported in the TCR on March 29, 2012, MaloneBailey, LLP, in Houston, Tex., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for the year ended Dec. 31, 2011. The independent auditors noted that the Company has incurred losses and negative cash from operations through Dec. 31, 2011. A copy of the Form 10-Q is available for free at: http://is.gd/VXAfRh Scott, La.-based ESP Resources, Inc., through its wholly owned subsidiary, ESP Petrochemicals, Inc., is a custom formulator of specialty chemicals for the oil and gas industry. FANNIE MAE: Treasury to Amend Terms of Bailout ---------------------------------------------- American Bankruptcy Institute reports that the Treasury Department is preparing to revamp the terms of its nearly four-year-old financial backing of Fannie Mae and Freddie Mac in a bid to allay investor concerns. About Fannie Mae Federal National Mortgage Association, aka Fannie Mae, is a government-sponsored enterprise that was chartered by U.S. Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. Fannie Mae has been under conservatorship, with the Federal Housing Finance Agency acting as conservator, since September 6, 2008. As conservator, FHFA succeeded to all rights, titles, powers and privileges of the company, and of any shareholder, officer or director of the company with respect to the company and its assets. The conservator has since delegated specified authorities to Fannie Mae's Board of Directors and has delegated to management the authority to conduct day-to-day operations. The U.S. Department of the Treasury owns Fannie Mae's senior preferred stock and a warrant to purchase 79.9% of its common stock, and Treasury has made a commitment under a senior preferred stock purchase agreement to provide Fannie with funds under specified conditions to maintain a positive net worth. Fannie Mae reported a net loss of $16.85 billion in 2011, a net loss of $14.01 billion in 2010, and a net loss of $72.02 billion in 2009. FENTURA FINANCIAL: Reports $144,000 Net Income in Second Quarter ---------------------------------------------------------------- Fentura Financial, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $144,000 on $3.05 million of total interest income for the three months ended June 30, 2012, compared with a net loss of $245,000 on $3.28 million of total interest income for the same period during the prior year. The Company reported a net loss of $595,000 on $6.17 million of total interest income for the six months ended June 30, 2012, compared with net income of $65,000 on $6.69 million of total interest income for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $297.87 million in total assets, $283.52 million in total liabilities and $14.34 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/GnaquG About Fentura Financial Based in Fenton, Michigan, Fentura Financial, Inc., is a registered bank holding company, owns and controls The State Bank, Fenton, Michigan, and West Michigan Community Bank, Hudsonville, Michigan, both state nonmember banks, and two nonbank subsidiaries. Fentura Financial shares are traded over the counter under the FETM trading symbol. Fentura Financial, Inc., entered into a Written Agreement with the Federal Reserve Bank of Chicago on Nov. 4, 2010. Among other things, the Written Agreement requires that the Company obtain the approval of the FRB prior to paying a dividend; requires that the Company obtain the approval of the FRB prior to making any distribution of interest, principal, or other sums on subordinated debentures or trust preferred securities; prohibits the Company from purchasing or redeeming any shares of its stock without the prior written approval of the FRB; requires the submission of a written capital plan by Jan. 3, 2011, and; requires the Company to submit cash flow projections for the Company to the FRB on a quarterly basis. The Company reported a net loss of $1.51 million in 2011, compared with a net loss of $5.38 million in 2010. FIBERTOWER NETWORK: Taps Cole Schotz as Special Counsel ------------------------------------------------------- BankruptcyData.com reports that FiberTower's official committee of unsecured creditors filed with the U.S. Bankruptcy Court motions to retain: -- Cole, Schotz, Meisel, Forman & Leonard (Contact: Michael D. Warner) as local counsel for these hourly rates: members and special counsel at $325 to $775, associate at $210 to $425, paralegal at $160 to $245; -- Otterbourg, Steindler, Houston & Rosen (Contact: David M. Posner) as lead co-counsel for these hourly rates: partner/counsel at $570 to $895, associate at $255 to $610, and paralegal at $225 to $245; and -- Goldin Associates (Contact: Erik M. Graber) as financial advisor for the following hourly rates: senior managing director at $795, managing director at $550 to $700, director at $400 to $550, vice president at $375 to $450, manager/associate at $300 to $400, senior analyst at $250 to $375, and analyst at $150 to $300. About FiberTower FiberTower Corporation, FiberTower Network Services Corp., FiberTower Licensing Corp., and FiberTower Spectrum Holdings LLC filed for Chapter 11 protection (Bankr. N.D. Tex. Case Nos. 12-44027 to 12-44031) on July 17, 2012, together with a plan support agreement struck with prepetition secured noteholders. FiberTower is an alternative provider of facilities-based backhaul services, principally to wireless carriers, and a national provider of millimeter-band spectrum services. Backhaul is the transport of voice, video and data traffic from a wireless carrier's mobile base station, or cell site, to its mobile switching center or other exchange point. FiberTower provides spectrum leasing services directly to other carriers and enterprise clients, and also offer their spectrum services through spectrum brokerage arrangements and through fixed wireless equipment partners. FiberTower's significant asset is the ownership of a national spectrum portfolio of 24 GHz and 39 GHz wide-area spectrum licenses, including over 740 MHz in the top 20 U.S. metropolitan areas and, in the aggregate, roughly 1.72 billion channel pops (calculated as the number of channels in a given area multiplied by the population, as measured in the 2010 census, covered by these channels). FiberTower believes the Spectrum Portfolio represents one of the largest and most comprehensive collections of millimeter wave spectrum in the U.S., covering areas with a total population of over 300 million. As of the Petition Date, FiberTower provides service to roughly 5,390 customer locations at 3,188 deployed sites in 13 markets throughout the U.S. The fixed wireless portion of these hybrid services is predominantly through common carrier spectrum in the 11, 18 and 23 GHz bands. FiberTower's biggest service markets are Dallas/Fort Worth and Washington, D.C./Baltimore, with additional markets in Atlanta, Boston, Chicago, Cleveland, Denver, Detroit, Houston, New York/New Jersey, Pittsburgh, San Antonio/Austin/Waco and Tampa. As of June 30, 2012, FiberTower's books and records reflected total combined assets, at book value, of roughly $188 million and total combined liabilities of roughly $211 million. As of the Petition Date, FiberTower had unrestricted cash of roughly $23 million. For the six months ending June 30, 2012, FiberTower had total revenue of roughly $33 million. With the help of FTI Consulting Inc., FiberTower's preliminary valuation work shows that the Company's enterprise value is materially less than $132 million -- i.e., the approximate principal amount of the 9.00% Senior Secured Notes due 2016 outstanding as of the Petition Date. The preliminary valuation work is based upon the assumption that FiberTower's spectrum licenses will not be terminated. Judge D. Michael Lynn oversees the Chapter 11 case. Lawyers at Andrews Kurth LLP serve as the Debtors' lead counsel. Lawyers at Hogan Lovells and Willkie Farr and Gallagher LLP serve as special FCC counsel. FTI Consulting serve as financial advisor. BMC Group Inc. serve as claims and noticing agent. The petitions were signed by Kurt J. Van Wagenen, president. Wells Fargo Bank, National Association -- as indenture trustee and collateral agent to the holders of 9.00% Senior Secured Notes due 2016 owed roughly $132 million as of the Petition Date -- is represented by Eric A. Schaffer, Esq., at Reed Smith LLP. An Ad Hoc Committee of Holders of the 9% Secured Notes Due 2016 is represented by Kris M. Hansen, Esq., and Sayan Bhattacharyya, Esq., at Stroock & Stroock & Lavan LLP. Wells Fargo and the Ad Hoc Committee also have hired Stephen M. Pezanosky, Esq., and Mark Elmore, Esq., at Haynes and Boone, LLP, as local counsel. U.S. Bank, National Association -- in its capacity as successor indenture trustee and collateral agent to holders of the 9.00% Convertible Senior Secured Notes due 2012, owed $37 million as of the Petition Date -- is represented by Michael B. Fisco, Esq., at Faegre Baker Daniels LLP, as counsel and J. Mark Chevallier, Esq., at McGuire Craddock & Strother PC as local counsel. FILLPOINT, LLC: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Fillpoint, LLC 200 Fillpoint Drive Mechanicville, NY 12118 Bankruptcy Case No.: 12-12129 Chapter 11 Petition Date: August 14, 2012 Court: U.S. Bankruptcy Court Northern District of New York (Albany) Debtor's Counsel: Peter A. Pastore, Esq. MCNAMEE, LOCHNER, TITUS & WILLIAMS, PC P.O. Box 459 677 Broadway Albany, NY 12201-0459 Tel: (518) 447-3246 E-mail: pastorepa@mltw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Company's list of its largest unsecured creditors filed with the petition does not contain any entry. The petition was signed by Glenn C. Rockwood, president. FIRSTBANK FINANCIAL: Files for Chapter 7 Liquidation ---------------------------------------------------- BankruptcyData.com reports that FirstBank Financial Services filed for Chapter 7 protection (Bankr. N.D. Ga. Case No. 12-70541). The Company is represented by E. Penn Nicholson of Bryan Cave. In its most recent 10-K filed with the SEC, the Company listed total assets of $395 million, but the Chapter 11 petition indicates less than $50,000 in assets, BankruptcyData.com relates. As reported in the Troubled Company Reporter on Feb. 9, 2009, FirstBank Financial Services, based in McDonough, Georgia, was closed on Fri., Feb. 6, 2009, by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Regions Bank, based in Birmingham, Alabama, to assume all of the deposits of FirstBank Financial Services. FOCUS BRANDS: S&P Keeps 'B' Corp. Credit Rating; Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' issue-level rating and a '3' recovery rating to Atlanta-based Focus Brands Inc.'s first-lien credit facilities, and a 'CCC+' issue-level rating and a '6' recovery rating to the second-lien facility. The 'B' corporate credit rating on the company remains unchanged. The outlook is stable. "The ratings on Focus Brands reflect our assessment that the company's business risk profile will continue to be 'weak,' based on its relatively small-size presence in the highly competitive quick-service restaurant industry, partly offset by its good brand diversity," said Standard & Poor's credit analyst Andy Sookram. "Our view of its financial risk profile as 'highly leveraged' incorporates elevated debt levels, thin cash flow protection measures, and our expectation that debt-financed dividends will continue beyond the next one to two years." "In our opinion, these debt-funded shareholder initiatives represent a very aggressive financial policy," S&P said. "The stable outlook incorporates our view that credit metrics should improve on modest debt reduction and better earnings, but that the company's financial risk will remain highly leveraged. With our forecast for EBITDA growth and lower debt, we see leverage dropping to 5.6x and FFO to debt of about 7%," S&P said. "We could lower the ratings if EBITDA margins decline to about 13%, which could occur from a run-up in commodity costs or heightened competitive pressures. In this scenario, leverage increases to the high-6x area on a sustained basis and FFO to debt falls to under 5%. We think the potential for a higher rating is limited by the company's aggressive financial policies and high debt. However, we could consider a higher rating if we feel comfortable that leverage would not exceed 5x on a sustained basis, and FFO to debt would be above 12%. This could occur if system-wide same-store sales increase by 5% or more, EBITDA grows by about 8%, and the company uses excess cash flow to bring debt balances down to under $400 million," S&P said. FUEL DOCTOR: Delays Form 10-Q for Second Quarter ------------------------------------------------ Fuel Doctor Holdings, Inc., notified the U.S. Securities and Exchange Commission that the compilation, dissemination and review of the information required to be presented in the Form 10-Q for the quarter ended June 30, 2012, has imposed time constraints that have rendered timely filing of the Form 10-Q impracticable without undue hardship and expense to the registrant. The Company undertakes the responsibility to file that report no later than five days after its original prescribed due date. About Fuel Doctor Calabasas, Calif.-based Fuel Doctor Holdings, Inc., is the exclusive distributor for the United States and Canada of a fuel efficiency booster (the FD-47), which plugs into the lighter socket/power port of a vehicle and increases the vehicle's miles per gallon through the power conditioning of the vehicle's electrical systems. The Company has also developed, and plans on continuing to develop, certain related products. Fuel Doctor reported a net loss of $2.69 million in 2011, compared with a net loss of $2.48 million in 2010. Rose,Synder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the period ended Dec. 31, 2011. The indepdent auditors noted that the Company has sustained recurring operating losses, continues to consume cash in operating activities, and has an accumulated deficit at Dec, 31, 2011, which conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at March 31, 2012, showed $1.52 million in total assets, $1.40 million in total liabilities and $120,446 in total shareholders' equity. GATEHOUSE MEDIA: Bank Debt Trades at 68% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which GateHouse Media, Inc., is a borrower traded in the secondary market at 32.09 cents- on-the-dollar during the week ended Friday, Aug. 17, a drop of 0.25 percentage points from the previous week according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 27, 2014, and carries Moody's Ca rating and Standard & Poor's CCC- rating. The loan is one of the biggest gainers and losers among 165 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About GateHouse Media GateHouse Media, Inc. -- http://www.gatehousemedia.com/-- headquartered in Fairport, New York, is one of the largest publishers of locally based print and online media in the United States as measured by its 97 daily publications. GateHouse Media currently serves local audiences of more than 10 million per week across 21 states through hundreds of community publications and local Web sites. Gatehouse Media, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.86 million on $128.76 million of total revenues for the three months ended July 1, 2012, compared with a net loss of $5.06 million on $134.39 million of total revenues for the three months ended June 26, 2011. The Company reported a net loss of $16.23 million on $248.77 million of total revenues for the six months ended July 1, 2012, compared with a net loss of $23.25 million on $254.21 million of total revenues for the six months ended June 26, 2011. The Company's balance sheet at July 1, 2012, showed $487.40 million in total assets, $1.31 billion in total liabilities and a $823.09 million total stockholders' deficit. According to the Form 10-K for the year ended Dec. 31, 2011, the Company's ability to make payments on its indebtedness as required depends on its ability to generate cash flow from operations in the future. This ability, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond the Company's control. GENELINK INC: Incurs $962,600 Net Loss in Second Quarter -------------------------------------------------------- Genelink, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $962,630 on $526,923 of revenue for the three months ended June 30, 2012, compared with a net loss of $825,298 on $1.33 million of revenue for the same period during the prior year. The Company reported a net loss of $1.06 million on $1.29 million of revenue for the six months ended June 30, 2012, compared with a net loss of $1.41 million on $2.73 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $2.12 million in total assets, $4.41 million in total liabilities and a $2.29 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/aVMKl4 About Genelink Based in Orlando, Fla., GeneLink, Inc., is a solution provider in the genetically customized nutritional and personal care marketplace. Hancock Askew & Co., LLP, in Savannah, Georgia, expressed substantial doubt about GeneLink'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 a working capital deficit of $436,310, has incurred recurring operating losses since inception including a loss of $3.8 million in 2011 and had an accumulated deficit at Dec. 31, 2011, of $24,560,315. GEOMET INC: Transitions Trading of Common Stock to OTC Markets -------------------------------------------------------------- GeoMet, Inc.'s common stock began trading on the OTCQB Marketplace under the Company's current symbol, GMET, on Aug. 13, 2012. The OTCQB is a market tier for over-the-counter-traded companies that are registered and reporting with the Securities and Exchange Commission. The Company's preferred stock will continue to trade on the NASDAQ Capital Market under the symbol GMETP. On Aug. 2, 2012 the Company was notified by the Listing Qualifications Department of the NASDAQ Stock Market that the Company's common stock had closed at less than $1 over the previous 180 calendar days and, as a result, did not comply with listing rules. The Company was further advised that its common stock would be scheduled for delisting from the NASDAQ Capital Market and would be suspended from trading at the opening of business on Aug. 13, 2012. The transition to the OTCQB Marketplace does not change the Company's obligation to file periodic and other reports with the SEC under applicable federal securities law. Investors will be able to view Real Time Level II stock quotes for GeoMet's common stock at www.otcmarkets.com/stock/GMET/quote About Geomet Inc. Houston, Texas-based GeoMet, Inc., is an independent energy company primarily engaged in the exploration for and development and production of natural gas from coal seams ("coalbed methane" or "CBM") and non-conventional shallow gas. It was originally founded as a consulting company to the coalbed methane industry in 1985 and has been active as an operator, developer and producer of coalbed methane properties since 1993. Its principal operations and producing properties are located in the Cahaba and Black Warrior Basins in Alabama and the central Appalachian Basin in Virginia and West Virginia. It also owns additional coalbed methane and oil and gas development rights, principally in Alabama, Virginia, West Virginia, and British Columbia. As of March 31, 2012, it owns a total of approximately 192,000 net acres of coalbed methane and oil and gas development rights. The Company's balance sheet at March 31, 2012, showed $199.21 million in total assets, $176.64 million in total liabilities, $30.47 million of Series A convertible redeemable preferred stock, and a stockholders' deficit of $7.90 million. "As of May 11, 2012, we had $148.6 million outstanding under our Fifth Amended and Restated Credit Agreement," the Company said in its quarterly report for the period ending March 31, 2012. "As of March 31, 2012, we were in compliance with all of the covenants in our Credit Agreement. The Credit Agreement provides, however, that if the amount outstanding at any time exceeds the "borrowing base", we must provide additional collateral to the lenders or repay the excess as provided in the Credit Agreement. The borrowing base is set in the sole discretion of our lenders in June and December of each year based, in part, on the value of our estimated reserves as determined by the lenders using natural gas prices forecasted by the lenders." "Due to the decline in the bank group's price projections, we expect our outstanding loan balance at the June determination date will exceed the new borrowing base, resulting in a borrowing base deficiency. We do not have additional collateral to provide to the lenders and we expect that our operating cash flows would be insufficient to repay the expected borrowing base deficiency, as required under the Credit Agreement. As such, unless we amend the Credit Agreement, we may be in default under the agreement when the borrowing base is determined in June 2012. In addition, the elimination of the unused availability under the borrowing base, which is a factor in our working capital covenant, may result in a future default of that covenant under the Credit Agreement. We have begun discussions with our bank group; however, until the borrowing base for June 2012 has been determined, we will not know the amount of the deficiency. As of March 31, 2012, the debt is classified as long-term as we are not in violation of any debt covenants. Should we be in violation of any covenants which have not been waived or have a borrowing base deficiency as of June 30, 2012, some or all of the debt will be reclassified to current. There are no assurances that we will be able to amend our Credit Agreement or obtain a waiver. If we do obtain a waiver or an amendment, there can be no assurance as to the cost or terms of such an amendment." "These conditions raise substantial doubt about our ability to continue as a going concern for the next twelve months." GEOMET INC: Incurs $53.9 Million Net Loss in Second Quarter ----------------------------------------------------------- GeoMet, Inc., reported a net loss of $53.90 million on $7.77 million of total revenues for the three months ended June 30, 2012, compared with net income of $1.07 million on $8.40 million of total revenues for the same period during the prior year. The Company reported a net loss of $106.85 million on $17.99 million of total revenues for the six months ended June 30, 2012, compared with net income of $1.52 million on $16.32 million of otal revenues for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $144.47 million in total assets, $173.55 million in total liabilities, $32.17 million in series A convertible redeemable preferred stock, and a $61.25 million stockholders' deficit. William C. Rankin, GeoMet's President and Chief Executive Officer, commented, "The average price received before hedging activities for natural gas sold during the quarter was $2.24 per Mcf, our lowest quarterly price in many years. Lower gas prices were the primary factor in the large ceiling cost write down, the reduction in our proved natural gas reserves and the increase in our depletion expenses. Adjusted for hedge settlement payments received during the quarter, the realized gas price was $4.47 per Mcf. The Company generated Adjusted EBITDA of $3.6 million for the quarter which does not include $2.4 million in settlement payments related to the return of basis on acquired hedges." Mr. Rankin added, "We also completed the disposition of our Canadian operations during the quarter resulting in a significant reduction in future obligations. Mr. Rankin went on to say, "The recent amendment to our bank credit agreement was a significant step toward resolving the Company's borrowing base deficiency. We believe this was possible as a result of our hedge positions and the long life shallow decline nature of our natural gas reserve base." A copy of the press release is available for free at: http://is.gd/2ohq0d About Geomet Inc. Houston, Texas-based GeoMet, Inc., is an independent energy company primarily engaged in the exploration for and development and production of natural gas from coal seams ("coalbed methane" or "CBM") and non-conventional shallow gas. It was originally founded as a consulting company to the coalbed methane industry in 1985 and has been active as an operator, developer and producer of coalbed methane properties since 1993. Its principal operations and producing properties are located in the Cahaba and Black Warrior Basins in Alabama and the central Appalachian Basin in Virginia and West Virginia. It also owns additional coalbed methane and oil and gas development rights, principally in Alabama, Virginia, West Virginia, and British Columbia. As of March 31, 2012, it owns a total of approximately 192,000 net acres of coalbed methane and oil and gas development rights. The Company's balance sheet at March 31, 2012, showed $199.21 million in total assets, $176.64 million in total liabilities, $30.47 million of Series A convertible redeemable preferred stock, and a stockholders' deficit of $7.90 million. "As of May 11, 2012, we had $148.6 million outstanding under our Fifth Amended and Restated Credit Agreement," the Company said in its quarterly report for the period ending March 31, 2012. "As of March 31, 2012, we were in compliance with all of the covenants in our Credit Agreement. The Credit Agreement provides, however, that if the amount outstanding at any time exceeds the "borrowing base", we must provide additional collateral to the lenders or repay the excess as provided in the Credit Agreement. The borrowing base is set in the sole discretion of our lenders in June and December of each year based, in part, on the value of our estimated reserves as determined by the lenders using natural gas prices forecasted by the lenders." "Due to the decline in the bank group's price projections, we expect our outstanding loan balance at the June determination date will exceed the new borrowing base, resulting in a borrowing base deficiency. We do not have additional collateral to provide to the lenders and we expect that our operating cash flows would be insufficient to repay the expected borrowing base deficiency, as required under the Credit Agreement. As such, unless we amend the Credit Agreement, we may be in default under the agreement when the borrowing base is determined in June 2012. In addition, the elimination of the unused availability under the borrowing base, which is a factor in our working capital covenant, may result in a future default of that covenant under the Credit Agreement. We have begun discussions with our bank group; however, until the borrowing base for June 2012 has been determined, we will not know the amount of the deficiency. As of March 31, 2012, the debt is classified as long-term as we are not in violation of any debt covenants. Should we be in violation of any covenants which have not been waived or have a borrowing base deficiency as of June 30, 2012, some or all of the debt will be reclassified to current. There are no assurances that we will be able to amend our Credit Agreement or obtain a waiver. If we do obtain a waiver or an amendment, there can be no assurance as to the cost or terms of such an amendment." "These conditions raise substantial doubt about our ability to continue as a going concern for the next twelve months." GEOPETRO RESOURCES: Has Accumulated Deficit of $47.7 Million ------------------------------------------------------------ GeoPetro Resources Company filed its quarterly report on Form 10-Q, reporting a net loss of $897,452 on $0 revenues for the three months ended June 30, 2012, compared with a net loss of $1.2 million on $206,590 of revenues for the corresponding period a year earlier. For the six months ended June 30, 2012, the Company had a net loss of $2.0 million on $351,082 of revenues, compared with a net loss of $2.6 million on $607,939 of revenues for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $24.7 million in total assets, $5.4 million in total liabilities, and shareholders' equity of $19.3 million. According to the regulatory filing, as of June 30, 2012, the Company had a working capital deficit of $2.5 million, and for the six months ended June 30, 2012, its cash used in operating activities amounted to $1.3 million. "We estimate that our investment needs for the remainder of fiscal year 2012 and 2013 will amount to $2.4 million related to our natural gas properties within the Madisonville field, our California properties and our Canadian properties. Our results of operations have resulted in an accumulated deficit of $47.7 million from inception through the six months ended June 30, 2012." "Our current cash and cash equivalents and anticipated cash flow from operations will not be sufficient to meet our working capital and capital expenditure requirements for the foreseeable future. Additional financing is required to carry out our business plan." "In April 2012, the Company's wholly-owned subsidiary, Redwood Energy Production, L.P., elected to temporarily shut-in its natural gas production at the Madisonville Field, Madison County, Texas in light of depressed natural gas prices. The Company will monitor market conditions and bring its natural gas production back on stream as market conditions warrant. For the six months ended June 30, 2012, 100% of the Company's revenue was derived from the natural gas production in the Madisonville Field." A copy of the Form 10-Q is available for free at: http://is.gd/D1m6Pi San Francisco, Calif.-based GeoPetro Resources Company is an oil and gas company in the business of exploring and developing oil and natural gas reserves on a worldwide basis. Since inception, the Company has conducted leasehold acquisition, exploration and drilling activities on its North American, Australian and Indonesian prospects. These projects currently encompass approximately 249,042 gross (38,113 net) acres, consisting of mineral leases, production sharing contracts and exploration permits that give the Company the right to explore for, develop and produce oil and natural gas. Most of these properties are in the exploration, appraisal or development drilling phase and have not begun to produce revenue from the sale of oil and natural gas. GETTY PETROLEUM: Committee Fine-Tunes First Amended Plan -------------------------------------------------------- The Official Committee of Unsecured Creditors for Getty Petroleum Marketing, et al., filed this month a first modification to its First Amended Plan of Liquidation for the Debtor. Changes to the Plan include new subclasses for secured claims and a provision that says the Debtors are not discharged by Plan confirmation and the Plan won't affect obligations of any insurance companies, unless otherwise stated. A copy of the first modifications to the First Amended Plan is available for free at http://bankrupt.com/misc/Getty_Pet_Plan_Amended_080912.pdf The hearing on the First Amended Plan of Liquidation, as revised on May 30, 2012, was previously scheduled July 18. According to the Amended Disclosure Statement, the First Amended Plan constitutes a straight-forward liquidating plan for all of the Debtors. The Amended Plan provides for all of the property of the Debtors to be liquidated over time, and for the proceeds to be allocated and distributed to the holders of certain Allowed Claims. An initial distribution is to occur on the Effective Date of the First Amended Plan or soon as practicable thereafter. Assets are to be held by a Liquidating Trust and administered by the Liquidating Trustees who will, among other things, liquidate assets, resolve disputed claims, pursue any reserved causes of action, wind up the affairs of the Debtors, and make interim and final distributions to holders of Allowed Claims in accordance with the First Amended Plan. A full-text copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/GETTY_PETROLEUM_ds_1amended.pdf Peg Brickley at Dow Jones' DBR Small Cap reports that Getty Petroleum's Chapter 11 plan is moving toward confirmation, but payday is likely a long way off for creditors of the defunct gas- station operator. About Getty Petroleum A remnant of J. Paul Getty's oil empire, Getty Petroleum Marketing markets gasolines, hydraulic fluids, and lubricating oils through a network of gas stations owned and operated by franchise holders. A former subsidiary of Russian oil giant LUKOIL, the company operates in the Mid-Atlantic and Northeastern US states. Getty Petroleum Marketing's primary asset is the more than 800 gas stations in the Mid-Atlantic states which are located on properties owned by Getty Realty. After scaling back the company's operations to cut debt, in 2011 LUKOIL sold Getty Petroleum Marketing to investment firm Cambridge Petroleum Holding for an undisclosed price. Getty Petroleum and three affiliates filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case Nos. 11-15606 to 11-15609) on Dec. 5, 2011. Judge Shelley C. Chapman presides over the case. Loring I. Fenton, Esq., John H. Bae, Esq., Kaitlin R. Walsh, Esq., and Michael J. Schrader, Esq., at Greenberg Traurig, LLP, in New York, N.Y., serve as the Debtors' counsel. Ross, Rosenthal & Company, LLP, serves as accountants for the Debtors. Getty Petroleum Marketing, Inc., disclosed $46.6 million in assets and $316.8 million in liabilities as of the Petition Date. The petition was signed by Bjorn Q. Aaserod, chief executive officer and chairman of the board. The Official Committee of Unsecured Creditors is represented by Wilmer Cutler Pickering Hale and Dorr LLP. Alvarez & Marsal North America, LLC, serves as the Committee's financial advisors. GLOBAL ARENA: Incurs $462,000 Net Loss in Second Quarter -------------------------------------------------------- Global Arena Holding, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $462,020 on $216,166 of total revenues for the three months ended June 30, 2012, compared with a net loss attributable to common stockholders of $415,494 on $226,066 of total revenues for the same period a year ago. The Company reported a net loss attributable to common stockholders of $685,905 on $418,795 of total revenues for the six months ended June 30, 2012, compared with a net loss attributable to common stockholders of $801,318 on $452,672 of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $1.09 million in total assets, $1.58 million in total liabilities, and a $490,417 total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/mV2oIU About Global Arena New York, N.Y.-based Global Arena Holding, Inc., formerly Global Arena Holding Subsidiary Corp., was formed in February 2009, in the state of Delaware. The Company is a financial services firm that services the financial community through its subsidiaries as follows: Global Arena Investment Management LLC provides investment advisory services to its clients. GAIM is registered with the Securities and Exchange Commission as an investment advisor and clears all of its business through Fidelity Advisors, its correspondent broker. Global Arena Commodities Corp. provides commodities brokerage services and earns commissions. Global Arena Trading Advisors, LLC provides futures advisory services and earns fees. GATA is registered with the National Futures Association (NFA) as a commodities trading advisor. Lillybell Entertainment, LLC provides finance services to the entertainment industry. Wei, Wei & Co., LLP, in New York, N.Y., expressed substantial doubt about Global Arena'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 suffered recurring losses since inception, experiences a deficiency of cash flow from operations and has a stockholders deficiency. GRANDPARENTS.COM INC: Posts $1.8-Mil. Net Loss in Second Quarter ---------------------------------------------------------------- Grandparents.com, Inc., formerly NorWesTech, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.8 million on $87,341 of revenue for the three months ended June 30, 2012, compared with a net loss of $680,885 on $115,165 of revenue for the same period last year. For the six months ended June 30, 2012, the Company reported a net loss of $6.3 million on $154,135 of revenue, compared with a net loss of $1.4 million on $238,160 of revenue for the same period of 2011. Total operating expenses for the three months ended June 30, 2012, increased $1.1 million, or 144.4%, to $1.9 million compared to $764,092 for the comparable period in 2011. Total operating expenses for the six months ended June 30, 2012, increased $4.8 million, or 307.2%, to $6.4 million compared to $1.6 million for the comparable period in 2011. The increase in operating expenses for the three months ended June 30, 2012, was due to increases in selling and marketing, salary, rent, equity-based compensation, consultant and other general and administrative expenses. The increase in operating expenses for the six months ended June 30, 2012, was primarily attributable to expenses of $2.9 million incurred in connection with the Asset Contribution Transaction as well as increases in selling and marketing, salary, rent, equity-based compensation, consultant and other general and administrative expenses. Asset Contribution Transaction On Feb. 23, 2012, the Company entered into an Asset Contribution Agreement with GP.com Holding Company, LLC, a Florida limited liability company formerly known as Grandparents.com LLC ("GP.com LLC"). Under the terms of the Contribution Agreement, GP.com LLC contributed substantially all of its assets to the Company in exchange for the Company's assumption of certain liabilities of GP.com LLC and the Company's issuance to GP.com LLC of one share of its Series A Convertible Preferred Stock and a warrant to purchase shares of its common stock. As a result of the transaction, the Company now owns the grandparents.com domain name, other related domain names, trademarks and related assets formerly owned by GP.com LLC and GP.com LLC became the holder of a majority of the Company's voting securities. In addition, the Company's former directors and officers resigned and the designees of GP.com LLC were appointed to fill the vacancies created by such resignations. Balance Sheet The Company's balance sheet at June 30, 2012, showed $7.3 million in total assets, $2.1 million in total liabilities, and stockholders' equity of $5.2 million. Going Concern According to the regulatory filing, the Company has incurred a net loss of approximately $6.3 million and used approximately $2.3 million in cash for operating activities during the six- months ended June 30, 2012. Without additional capital from existing or outside investors or further financing, the Company's ability to continue to implement its business plan may be limited. "These conditions raise substantial doubt about the Company's ability to continue as a going concern." A copy of the Form 10-Q is available for free at: http://is.gd/hLZq7o Based in New York, N.Y., Grandparents.com, Inc., together with its consolidated subsidiaries, is a family-oriented social media company that through its website, www.grandparents.com, serves the age 50+ demographic market. The website offers activities, discussion groups, expert advice and newsletters that enrich the lives of grandparents by providing tools to foster connections among grandparents, parents, and grandchildren. GRAYMARK HEALTHCARE: Had $5.3 Million Net Loss in Second Quarter ---------------------------------------------------------------- Graymark Healthcare, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $5.3 million on $4.3 million of revenues for the three months ended June 30, 2012, compared with a net loss of $600,248 on $4.4 million of revenues for the same period a year ago. For the six months ended June 30, 2012, the Company had a net loss of $7.3 million on $8.7 million of revenues, compared with a net loss of $2.5 million on $8.6 million of revenues for the comparable period of 2011. In June 2012, the Company recorded a noncash impairment charge on goodwill related to the Company's sleep centers of $3.0 million. The Company's balance sheet at June 30, 2012, showed $20.8 million in total assets, $23.2 million in total liabilities, and a stockholders' deficit of $2.4 million. As of June 30, 2012, the Company had an accumulated deficit of approximately $42.3 million and reported a net loss of approximately $7.2 million for the six months then ending. In addition, the Company used approximately $2.4 million in cash from operating activities from continuing operations during the six months ending June 30, 2012. "Historically, management has been able to raise the capital necessary to fund the operation and growth of the Company, but there is no assurance that the Company will be successful in raising the necessary capital to fund the Company's operations." "As noted in Note 6 - Borrowings, during the three months ended June 30, 2012, the Company did not maintain the minimum cash balance required under the Company's loan agreement with Arvest Bank. In addition, the Company did not make the required principal and interest prepayment due to Arvest Bank on June 30, 2012." "Furthermore, the Company is not currently in compliance with the minimum bid price requirement for continued listing on The NASDAQ Capital Market. Under a notice received from NASDAQ, the Company had until June 18, 2012, to regain compliance. The Company received a notice of delisting on June 19, 2012. The Company filed an appeal and went before a hearing with NASDAQ on July 26, 2012. If the Company is delisted from NASDAQ, that will be an event of default under the Company's loan agreement with Arvest Bank. Historically, the Company has been successful in obtaining default waivers from Arvest Bank, but there is no assurance that Arvest Bank will waive any future defaults. Given that the Company is not in compliance with certain covenants under the loan agreement with Arvest Bank, the associated debt has been classified as current on the accompanying consolidated condensed balance sheets." "These uncertainties raise substantial doubt regarding the Company's ability to continue as a going concern. The consolidated condensed financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern." A copy of the Form 10-Q is available for free at: http://is.gd/uE1xEL Graymark Healthcre, Inc., headquartered in Oklahoma City, Okla., provides care management solutions to the sleep disorder market. As of June 30, 2012, the Company operated 107 sleep diagnostic and therapy centers in 10 states. GREENMAN TECHNOLOGIES: Incurs $1.8-Mil. Net Loss in Fiscal Q3 ------------------------------------------------------------- GreenMan Technologies, Inc., now known as American Power Group Corporation, reported a net loss of $1.80 million on $890,000 of net sales for the three months ended June 30, 2012, compared with a net loss of $1.22 million on $542,000 of net sales for the same period during the prior year. The Company reported a net loss of $4.06 million on $1.85 million of net sales for the nine months ended June 30, 2012, compared with a net loss of $5.02 million on $1.42 million of net sales for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $10.12 million in total assets, $4.59 million in total liabilities and $5.52 million in stockholders' equity. Lyle Jensen, American Power Group Corporation's President and Chief Executive Officer, stated, "We continue to execute well on our strategy to introduce and market our dual fuel technology for applications across a diverse group of industries, including oil and gas exploration and production, industrial and heavy-duty vehicular end markets. Our increased revenues during the quarter reflect our ability to develop new partnerships and to extend our existing relationships. We are making progress on the domestic vehicular front and during the quarter we received approval from the Environmental Protection Agency for the conversion of fifty- nine Caterpillar and Detroit Diesel OUL engine families. This is a notable development as these engines are some of the most widely used on the road today. Likewise, just after the close of the quarter we announced our collaboration with EQT Corporation and Linde North America on the completion of the first dual fuel rig conversion in the Marcellus Shale. We are continuously looking for and capitalizing on new opportunities to demonstrate the relevance and effectiveness of our dual fuel technology in a wide variety of applications." A copy of the press release is available for free at: http://is.gd/WMZDeC About Greenman Technologies Lynnfield, Mass.-based GreenMan Technologies, Inc. (OTC QB: GMTI) through its two alternative energy subsidiaries, American Power Group, Inc. ("APG") and APG International, Inc. ("APGI"), provides a cost-effective patented dual fuel conversion technology for diesel engines and diesel generators. Schechter Dokken Kanter Andrews & Selcer, Ltd., in Minneapolis, Minnesota, issued a "going concern" qualification on the consolidated financial statements for the fiscal year ended Sept. 31, 2011, indicating that the Company has continued to incur substantial losses from operations, has not generated positive cash flows and has insufficient liquidity to fund its ongoing operations that raise substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of $6.81 million for the year ended Sept. 30, 2011, compared with a net loss of $5.64 million the year before. GRYPHON GOLD: Had $379,100 Net Loss in June 30 Quarter ------------------------------------------------------ Gryphon Gold Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $379,151 on $5.9 million of revenue, compared with net loss of $583,461 on $nil revenue for the three months ended June 30, 2011. The Company's balance sheet at June 30, 2012, showed $34.2 million in total assets, $23.3 million in total liabilities, and stockholders' equity of $10.9 million. "The Company has an accumulated deficit of $43.4 million as at June 30, 2012 ($43.1 million as at March 31, 2012)." DeCoria, Maichel & Teague P.S., in Spokane, Washington, expressed substantial doubt about Gryphon's ability to continue as a going concern, following the Company's results for the fiscal year ended March 31, 2012. The independent auditors noted that the Company has suffered recurring operating losses and has an accumulated deficit of $43.1 million. A copy of the Form 10-Q is available for free at: http://is.gd/xKoZFf Gryphon Gold Corporation, headquartered in Carson City, Nevada, is an exploration, development and production company focused on precious metals and is currently producing at its Borealis property, located in Nevada's Walker Lane Gold Belt. The plan for the Borealis property is to advance production of the oxide heap leachable gold and silver and to further expand and develop the significant sulphide resource through exploration, metallurgical design and sulphide project permitting and development. The Borealis property is unpatented mining claims of approximately 20 acres each, totalling about 15,020 acres, which has successful past production. GUANGZHOU GLOBAL: Reports $972,000 Net Income in 2nd Quarter ------------------------------------------------------------ China Teletech Holding, Inc., formerly known as Guangzhou Global Telecom, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of US$971,670 on US$8.04 million of sales for the three months ended June 30, 2012, compared with net income of US$1,167 on US$3.51 million of sales for the same period during the prior year. The Company reported net income of US$2.60 million on US$11.07 million of sales for the six months ended June 30, 2012, compared with net income of US$159,366 on US$12.73 million of sales for the same period a year ago. The Company's balance sheet at June 30, 2012, showed US$4.21 million in total assets, US$2.42 million in total liabilities and US$1.79 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/2tBSsZ About Guangzhou Global Tallahassee, Fl.-based Guangzhou Global Telecom, Inc., was incorporated as Avalon Development Enterprises, Inc., on March 29, 1999, under the laws of the State of Florida. The Company, through its subsidiaries, is now principally engaged in the distribution and trading of rechargeable phone cards, cellular phones and accessories within cities in the People's Republic of China. In its audit report for the 2011 results, Samuel H. Wong & Co., LLP, in San Mateo, California, noted that the Company has incurred substantial losses, and has difficulty to pay the Peoples Republic of China government Value Added Tax and past due Debenture Holders Settlement, all of which raise substantial doubt about its ability to continue as a going concern. The Company reported a net loss of US$348,124 in 2011, compared with a net loss of US$2.28 million in 2010. GUIDED THERAPEUTICS: Incurs $1.2 Million Net Loss in 2nd Quarter ---------------------------------------------------------------- Guided Therapeutics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $1.16 million on $915,000 of contract and grant revenue for the three months ended June 30, 2012, compared with a net loss attributable to common stockholders of $496,000 on $913,000 of contract and grant revenue for the same period during the prior year. The Company reported a net loss attributable to common stockholders of $2.18 million on $1.63 million of contract and grant revenue for the six months ended June 30, 2012, compared with a net loss attributable to common stockholders of $1.22 million on $1.68 million of contract and grant revenue for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $3.51 million in total assets, $3.08 million in total liabilities and $438,000 in total stockholders' equity. Bankruptcy Warning At June 30, 2012, the Company had negative working capital of approximately $1.0 million and stockholders' equity of approximately $334,000, primarily due to the recurring losses. As of June 30, 2012, the Company was past due on payments due under its notes payable in the amount of approximately $393,000. "The Company's capital-raising efforts are ongoing. If sufficient capital cannot be raised during the first quarter of 2013, the Company has plans to curtail operations by reducing discretionary spending and staffing levels, and attempting to operate by only pursuing activities for which it has external financial support, such as under its development agreement with Konica Minolta and additional NCI or other grant funding. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection," the Company said in its quarterly report for the period ended June 30, 2012. A copy of the Form 10-Q is available for free at: http://is.gd/j6AhGm Guided Therapeutics filed with the SEC a Form S-8 registering 5 million additional shares of common stock issuable to participants under the Company's 1995 Stock Option Plan. The proposed maximum aggregate offering price is $4.22 million. A copy of the prospectus is available for free at: http://is.gd/qMy0jJ About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. In its report on the Company's 2011 Form 10-K, UHY LLP, in Sterling Heights, Michigan, noted that the Company's recurring losses from operations and accumulated deficit raise substantial doubt about its ability to continue as a going concern. The Company reported a net loss of $6.64 million in 2011, compared with a net loss of $2.84 million in 2010. HAWKER BEECHCRAFT: Bank Debt Trades at 29% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Hawker Beechcraft is a borrower traded in the secondary market at 70.78 cents-on- the-dollar during the week ended Friday, Aug. 17, a drop of 0.27 percentage points from the previous week according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on March 26, 2014. The loan is one of the biggest gainers and losers among 165 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Hawker Beechcraft Hawker Beechcraft Acquisition Company, LLC, headquartered in Wichita, Kansas, manufactures business jets, turboprops and piston aircraft for corporations, governments and individuals worldwide. 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. HAWKER BEECHCRAFT: Seeks Longer Exclusivity During Superior Talks ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Hawker Beechcraft Inc. filed papers seeking an extension of the exclusive right to propose a Chapter 11 plan while it conducts 45 days of exclusive discussions with Superior Aviation Beijing Co. Ltd. about a transaction to underlay reorganization. According to the report, in mid-July the bankruptcy court in Manhattan gave Superior exclusive negotiating rights. Superior, which is 40% owned by the Beijing municipal government, offered to buy most of the aircraft manufacturer for $1.79 billion. There will be a hearing in bankruptcy court on Aug. 30 for an extension of exclusive plan-filing rights. If the judge approves, so-called exclusivity will be pushed out by four months to Dec. 29. The report relates that before the Chapter 11 filing, Hawker negotiated a reorganization plan with creditors calling for a stand-alone restructuring by converting secured and unsecured debt to equity while reducing debt by $2.55 billion. The plan itself was filed in late June. Creditors are allowing Hawker to pursue a transaction with Superior that might be more advantageous than a debt-for-equity swap. The report notes that Hawker's $183 million in 8.5% senior unsecured notes due 2015 traded on Aug. 16 for 16.5 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The $302 million in 8.875% senior unsecured notes due 2015 traded on Aug. 9 for 17.25 cents, Trace said. About Hawker Beechcraft Hawker Beechcraft Inc., a designer and manufacturer of light and medium-sized jet, turboprop and piston aircraft, filed for Chapter 11 reorganization together with 17 affiliates (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 Beechcraft disclosed assets of $1,831,097 plus undetermined amounts, and liabilities of $1,704,736,958 plus undetermined amounts. 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. The Committee tapped FTI Consulting, Inc., as its financial advisor. HIGH UP: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------ Debtor: High Up Dairy Mart, Incorporated 17768 Braemar Place Leesburg, VA 20176 Bankruptcy Case No.: 12-14955 Chapter 11 Petition Date: August 14, 2012 Court: U.S. Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Robert G. Mayer Debtor's Counsel: James P. Campbell, Esq. CAMPBELL FLANNERY, P.C. One Village Plaza 1602 Village Market Boulevard, Suite 220 Leesburg, VA 20175 Tel: (703) 771-8344 Fax: (703) 777-1485 E-mail: jcampbell@campbellflannery.com Estimated Assets: $0 to $50,000 Estimated Debts: $10,000,001 to $50,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/vaeb12-14955.pdf The petition was signed by Gurcharan S. Lail, president. HOMELAND SECURITY: Delays Form 10-Q for Second Quarter ------------------------------------------------------ Homeland Security Capital Corporation was not able to complete the required financial statements for the quarter ended June 30, 2012, on a timely basis. About Homeland Security Homeland Security Capital Corporation is an international provider of specialized technology-based radiological, nuclear, environmental disaster relief and electronic security solutions to government and commercial customers. In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2011, Coulter & Justus, P.C., in Knoxville, Tennessee, noted that Related Party Senior Notes Payable totalling $5.55 million are due and payable. As of Dec. 31, 2011, the Company has a net capital deficiency in addition to a working capital deficiency, which raises substantial doubt about its ability to continue as a going concern. The Company also reported a net loss of $3.98 million on $0 of net revenue for the year ended June 30, 2011. The Company's balance sheet at March 31, 2012, showed $9.92 million in total assets, $12.26 million in total liabilities, $169,768 in warrants payable, and a $2.51 million total stockholders' deficit. ICEWEB INC: Had $4 Million Net Loss in June 30 Quarter ------------------------------------------------------ IceWEB, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $4.0 million on $654,996 of sales for the three months ended June 30, 2012, compared with a net loss of $698,269 on $719,727 of sales for the three months ended June 30, 2011. For the three months ended June 30, 2012, the Company incurred an increase in the value of the derivative liability of $2.2 million. For the nine months ended June 30, 2012, the Company had a net loss of $6.5 million on $2.5 million of sales, compared with a net loss of $2.6 million on $2.5 million of sales for the nine months ended June 30, 2011. For the nine months ended June 30, 2012, the Company incurred an increase in the value of the derivative liability of $2.8 million. The Company's balance sheet at June 30, 2012, showed $3.1 million in total assets, $7.9 million in total liabilities, and a stockholders' deficit of $4.8 million. Sherb & Co., LLP, in Boca Raton, Florida, stated in their report on the consolidated financial statements of the Company for the years ended Sept. 30, 2011, and 2010, that the Company had net losses of $4.7 million and $7.0 million respectively, for the years ended Sept. 30, 2011, and 2010, which raise substantial doubt about the Company's ability to continue as a going concern. "In addition and as discussed further in Note 6, we are not in compliance with debt covenants under our Financing Agreements with Sand Hill Finance LLC. For the year ended Sept. 30, 2011, we incurred a net loss of $4.7 million and for the nine months ended June 30, 2012, we incurred a net loss of $6.5 million." A copy of the Form 10-Q is available for free at: http://is.gd/DjTZWV Sterling, Va.-based IceWEB, Inc., manufactures high performance unified data storage appliances with enterprise storage management capabilities. IDO SECURITY: Delays Form 10-Q for Second Quarter ------------------------------------------------- IDO Security Inc.'s quarterly report on Form 10-Q for the three months ended June 30, 2012, was not filed by the prescribed due date of Aug. 14, 2012, because the Company had not yet finalized its treatment and disclosure of certain material events that occurred during the quarter. As a result, the review of the Company's financial statements for the three months ended June 30, 2012, is ongoing. The Company anticipates that the subject quarterly report will be filed on or before Aug. 20, 2012. For the six and three months ended June 30, 2011, the Company had revenues of $19,486 and $325, respectively, and a net loss of $3,926,331 and $1,754,433. For the six and three months ended June 30, 2012, the Company currently estimates that it had revenues of approximately $285,000 and $80,916, respectively, and a net loss of approximately $8,000 and $1,500,000, respectively. Results for the three months ended June 30, 2012 remain subject to further adjustment. The increase in revenues for the six and three months ended June 30, 2012, as compared to the 2011 periods is primarily attributable to the substantial increase in the number of MagShoe devices delivered to customers in Africa, Europe and the Far East. The net loss for the six months ended June 30, 2012, includes the gain on the extinguishment of debt in the approximate amount of $2.9 million that occurred in the first quarter of fiscal 2012. 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. IDO SECURITY: Delays Form 10-Q for Second Quarter ------------------------------------------------- IDO Security Inc.'s quarterly report on Form 10-Q for the three months ended June 30, 2012, was not filed by the prescribed due date of Aug. 14, 2012, because the Company had not yet finalized its treatment and disclosure of certain material events that occurred during the quarter. As a result, the review of the Company's financial statements for the three months ended June 30, 2012, is ongoing. The Company anticipates that the subject quarterly report will be filed on or before Aug. 20, 2012. For the six and three months ended June 30, 2011, the Company had revenues of $19,486 and $325, respectively, and a net loss of $3,926,331 and $1,754,433. For the six and three months ended June 30, 2012, the Company currently estimates that it had revenues of approximately $285,000 and $80,916, respectively, and a net loss of approximately $8,000 and $1,500,000, respectively. Results for the three months ended June 30, 2012 remain subject to further adjustment. The increase in revenues for the six and three months ended June 30, 2012, as compared to the 2011 periods is primarily attributable to the substantial increase in the number of MagShoe devices delivered to customers in Africa, Europe and the Far East. The net loss for the six months ended June 30, 2012, includes the gain on the extinguishment of debt in the approximate amount of $2.9 million that occurred in the first quarter of fiscal 2012. 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. IDQ HOLDINGS: S&P Affirms 'B' Corp. Credit Rating; Outlook Neg -------------------------------------------------------------- Standard & Poor's Rating Services revised its rating outlook on Garland, Texas-based IDQ Holdings Inc. to negative from stable. "We also affirmed our 'B' corporate credit rating on the company, which is majority owned by financial sponsor Castle Harlan," S&P said. "IDQ announced yesterday its proposal to issue $45 million in five-year senior secured payment-in-kind (PIK) notes (not rated) to fund a dividend to shareholders. The notes are to be issued under the SEC's Rule 144a without registration rights, guaranteed by a 100% stock pledge from the HoldCo (holding company), and subject to incurrence-based covenants," S&P said. "At the same time, we affirmed our 'B' senior secured rating and corresponding '4' recovery rating on the $220 million senior secured notes due 2017, indicating our expectation for average (30%-50%) recovery in the event of payment default," S&P said. Pro forma for the proposed transaction, IDQ will have about $266 million in debt outstanding. "The outlook revision reflects our view that IDQ's proposed debt- financed dividend reflects a more aggressive financial policy, resulting in pro forma adjusted leverage (total debt to EBITDA) and EBITDA interest coverage ratios of 5.9x and 1.7x. We believe the decision to pay this dividend reflects the sponsor's view that the company's recent A/C PRO product launch will drive improved performance, and that the lag in straight refrigerant sales will subside such that credit measures will improve somewhat over the next 12 months," said Standard & Poor's credit analyst Nalini Saxena. "Although we currently expect meaningful credit measure improvement by year-end 2012, the company's pro forma credit ratios are consistent with the 'highly leveraged' financial risk descriptor." This expectation is based on these key outcomes of S&P's forecast: A pro forma adjusted leverage ratio in the high 5x-area improving to slightly under 5x at year-end 2012; EBITDA coverage of interest in the low-2x area at year-end; and Funds from operations (FFO) to total debt close to 10% at year-end. The assumptions informing S&P's 2012 forecast for operating performance include: - Mid-single-digit revenue growth as we expect the benefits from the aging vehicle population and new product launches to be partially offset by shrinkage of the straight refrigerant segment; and - EBITDA margins slipping up to 350 basis points as S&P expects the company to continue marketing efforts to support new product launches, partially offsetting a potential favorable mix shift toward higher margin product offerings. "Our characterization of IDQ's financial policy as very aggressive reflects the majority ownership (84%) by the financial sponsor, Castle Harlan, which we believe may continue to influence financial governance toward shareholder-friendly decision-making. We also expect the company to opportunistically pursue tuck-in acquisitions, funded through a combination of internally generated cash flow, additional debt, and sponsor support," S&P said. "In our forecast, we assume the company will not engage in voluntary debt repayment beyond the 75% excess cash flow offer, acquisitions will be funded through cash of up to $15 million annually, and ongoing dividends to investors. Capital expenditures include maintenance of the sole manufacturing plant as well as support of innovative development of both chemical formulations and delivery mechanisms. We believe total capital expenditures will be minimal, in the low-single-digit millions area. (IDQ is a private company and does not publicly disclose its financials)," S&P said. "Our 'vulnerable' business risk assessment incorporates our view that the company's business focus is very narrow, in a small, niche industry space: air conditioning (A/C) repair in the automotive aftercare market, which the company estimates to have a market size of about $1.5 billion. IDQ is concentrated in this niche category, with at least two-thirds of revenues generated by 'value-added' A/C recharge kits and refrigerant blends that service the do-it-yourself (DIY) automobile caretaker. The company's product diversity is limited, in our opinion. Geographic diversity, in our view, is also limited as most sales are generated in the U.S. and as we believe that environmental protection regulations will limit international expansion," S&P said. "In our view, the company faces customer concentration with its top four customers accounting for a significant majority of total sales. Although larger retailers presently benefit from high margins from the sale of IDQ's products, we believe the loss of the business of one these customers could have a detrimental financial impact. IDQ distributes its products across a variety of distributors, from traditional automotive aftermarket retailers to mass merchants to warehouse distributors. IDQ also has supplier concentration, with one source accounting for half of the company's required supply of its key ingredient, R-134a, a haloalkane refrigerant otherwise known as 1,1,1,2- tetrafluoroethane. The cost of R-134a fluctuates with seasonal demand and IDQ does not hedge its purchases. We believe IDQ possesses meaningful pricing flexibility to pass along such input costs to its customers as the alternative to DIY A/C repair kits, body shop servicing, could run consumers several hundreds of dollars as opposed to about $35-$45 for a DIY kit," S&P said. "Legal and regulatory pressures present another risk, though, in our view, less immediate in nature. It is possible that legislation on climate control may ban R-134a in favor of a safer and more environmentally friendly gas. We believe the near-term risk is more on a state level, as U.S. federal movement on climate issues remains sluggish. However, IDQ has achieved certification from the California Air Resources Board (CARB) by modifying its cans to secure gas leakage and by instituting recycling programs for the cans, and the company not only became the first manufacturer of DIY refrigerants to be able to do business in California, but is also the only major player in that state's market because of the regulatory barriers to entry. Still, we view the threat of a ban on R-134a and consumer or state opposition to this gas as ongoing risks to the company's operational performance," S&P said. "The combination of the rising average age of cars and light trucks in the U.S. (currently 10.6 years, per the Automotive Aftermarket Industry Association) and a weak economy may persuade consumers to nurse their aging cars through maintenance. Further, as a result of the protracted economic downturn, we believe there may be some permanence to consumer attitudes shifting more toward DIY solutions and that IDQ's new product, A/C PRO, whose campaign seeks to capitalize on the cost efficiency of a DIY solution versus professional repair, will experience some traction. However, it remains to be seen whether the initial success of A/C PRO will be sustainable into next year," S&P said. "The outlook is negative, reflecting the company's more aggressive financial policy and weaker pro forma credit protection measures following the proposed transaction. We could consider a downgrade if IDQ is unable to improve credit measures consistent with our forecast including leverage of about 5x, potentially due to weakened operating performance or a continuation of its more aggressive financial policy, including further shareholder dividends or a sizable acquisition. In order to achieve leverage close to 5x, we forecast relatively flat EBITDA performance and $30 million debt repayment by year-end 2012. We could also lower the rating if we forecast that liquidity will become strained," S&P said. "We could consider an outlook revision to stable if the company maintains adequate liquidity, and if we believe it will sustain credit measures consistent with an 'aggressive' financial risk profile, including leverage comfortably below 5x. We forecast this could occur if adjusted EBITDA improves approximately 20%, if the company reduces debt by about $50 million, and if we believe financial policy will remain more moderate," S&P said. IMAGEWARE SYSTEMS: Posts $1 Million Net Income in Second Quarter ---------------------------------------------------------------- Imageware Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $1.05 million on $966,000 of revenue for the three months ended June 30, 2012, compared with net income of $3.52 million on $1.49 million of revenue for the same period a year ago. The Company reported a net loss of $7.53 million on $2.08 million of revenue for the six months ended June 30, 2012, compared with a net loss of $4.33 million on $3.42 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $7.80 million in total assets, $6.60 million in total liabilities and $1.19 million in total shareholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/eVDwOQ About ImageWare Systems Headquartered in San Diego, California, ImageWare Systems, Inc. is a leader in the emerging market for software-based identity management solutions, providing biometric, secure credential, law enforcement and enterprise authorization. Its "flagship" product is the IWS Biometric Engine. Scalable for small city business or worldwide deployment, the Company's biometric engine is a multi- biometric platform that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. The Company's identification products are used to manage and issue secure credentials, including national IDs, passports, driver licenses, smart cards and access control credentials. Its law enforcement products provide law enforcement with integrated mug shot, fingerprint LiveScan and investigative capabilities. The Company also provides comprehensive authentication security software. The Company reported a net loss of $3.18 million in 2011, compared with a net loss of $5.05 million in 2010. INFINITY ENERGY: Delays Form 10-Q for Second Quarter ---------------------------------------------------- Infinity Energy Resources, Inc., was unable to timely file its quarterly report on Form 10-Q for the quarter ended June 30, 2012, due to an unanticipated delay in connection with its preparation and review. The Company expects to file within the extension period. About Infinity Energy Overland Park, Kansas-based Infinity Energy Resources, Inc., and its subsidiaries, are engaged in the acquisition and exploration of oil and gas properties offshore Nicaragua in the Caribbean Sea. Following the 2011 results, Ehrhardt Keefe Steiner & Hottman PC, in Denver, Colorado, noted that the Company has suffered recurring losses and has a significant working capital deficit, which raises substantial doubt about its ability to continue as a going concern. The Company reported a net loss of $3.53 million in 2011, compared with a net loss of $3.77 million in 2010. The Company's balance sheet at March 31, 2012, showed $4.86 million in total assets, $32.10 million in total liabilities and a $27.23 million total stockholders' deficit. INFUSION BRANDS: Signs Merger Agreement with Ronco -------------------------------------------------- Infusion Brands International, Inc., entered into an Agreement and Plan of Merger with Ronco Holdings, Inc., CD3 Holdings, Inc., the holder of all of the issued and outstanding common stock of Ronco, Ronco Brands, Inc. ("Acquisition Sub"), Infusion's newly formed wholly owned subsidiary and Vicis Capital Master Fund, Infusion's principal stockholder. Upon the closing of the merger, Ronco will merge with and into Acquisition Sub, Acquisition Sub will cease to exist and Ronco will survive the merger and become a wholly owned subsidiary of Infusion. Upon consummation and in consideration for the Merger, CD3 will be entitled to receive those number of shares of Infusion's common stock equal to 50% of the issued and outstanding common stock of Infusion on the Closing Date along with the right to receive, at any time after the Closing Date, one additional share of Infusion's common stock for every share of common stock issued upon the conversion of any derivative security of Infusion outstanding at the Closing Date. The parties have agreed to the following additional conditions precedent to the consummation of the Merger: * Ronco will have redeemed all outstanding shares of its preferred stock; * Ronco will have delivered audited financial statements to Infusion for its two most recent fiscal years along with unaudited financial statements for any subsequent interim period; * Infusion will redeem all shares of its preferred stock held by Vicis in consideration for the issuance of two promissory notes in the aggregate principal amount of $8 million; and * Infusion will consummate a bridge financing of a minimum of $4 million and a maximum of $6 million of its securities to accredited investors, of which 50% of the proceeds will be advanced to Ronco to be used for its general working capital purposes. Vicis has agreed to guarantee the repayment of the Bridge Financing. In connection with the execution of the Merger Agreement, the holder of Ronco's $3 million promissory note agreed to cancel its note on the Closing Date in consideration for the issuance of a $3 million promissory note of Infusion. Furthermore, in connection with the Merger Agreement, a secured holder of certain debt of Ronco which is currently in default executed a forbearance agreement whereby it agreed: (i) to accept an aggregate payment of $5 million in consideration for the cancellation of the Ronco Debt, of which $1 million is expected to be paid out of proceeds from the Bridge Financing; and (ii) to forbear upon exercising its rights under the defaulted Ronco Debt until March 31, 2013, provided a $1 million initial payment is made by Sept. 10, 2012. Additionally, CD3 has agreed to turn over certain proceeds from the sale of the Merger Shares to the Ronco Creditor as additional consideration for the forbearance. In the event Infusion or Ronco is not able to pay the additional $4 million payment to the Ronco Creditor by March 31, 2012, and the Ronco Creditor elects to exercise its rights and remedies under the Ronco Debt and foreclose upon the assets of Ronco, (i) Vicis, in its sole discretion, may elect to unwind the redemption of its preferred stock and return the Vicis Notes for cancellation; (ii) without any action required by CD3, the Merger Shares shall be cancelled; and (iii) CD3 shall repay Infusion any amounts advanced to Ronco from the proceeds of the Bridge Financing on the payment schedule set forth in the Merger Agreement. Infusion will make payments to the Ronco Creditor after the date of Closing out of its general working capital, to the extent available. There can be no assurance that Infusion will have general working capital available to make those payments and may need to obtain additional financing, the availability and general satisfactory terms of which may not be available. Infusion has agreed, pursuant to the terms of the Merger Agreement, to repay sums due and owing: (i) first, to the investors in the Bridge Financing; (ii) second, to the Ronco Creditor and (iii) third, to Vicis. On the Closing Date, Robert DeCecco will resign from his position as Chairman of Infusion's Board of Directors (but remain a director of Infusion along with Shad Stastney and Keith Hughes) and CD3 will have the right to appoint a new Chairman. Additionally, on the Closing Date, CD3 will appoint two additional nominees to Infusion's Board of Directors and will appoint Tod Barrett to the position of co- Chief Executive Officer, who will serve alongside Mr. DeCecco as co-Chief Executive Officer of Infusion. A copy of the Agreement and Plan of Merger is available at: http://is.gd/wjDphu About Infusion Brands Infusion Brands International, Inc. is a global consumer products company. Its wholly owned operating subsidiary, Infusion Brands, Inc. specializes in building and marketing profitable brands through international direct-to-consumer channels of distribution. On Dec. 16, 2010, as part of its quasi-reorganization in order to change its business model from that of an acquisition strategy to a singular operating model as a consumer products company which builds and markets brands internationally through direct-to- consumers channels of distribution, OmniReliant Holdings, Inc. entered into an agreement and plan of merger with Infusion Brands International, Inc., a Nevada corporation and the Company's wholly-owned subsidiary. Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, the Company merged with and into Infusion Brands International, Inc., solely to effect a name change of the Company. Meeks International LLC, in Tampa, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring losses from operations and is dependent on outside sources of financing for continuation of its operations and management is restructuring and redirecting its operating initiatives that require the use of its available capital resources. The Company reported a net loss of $6.94 million on $17.94 million of product sales in 2011, compared with a net loss of $16.07 million on $7.17 million of product sales in 2010. The Company's balance sheet at March 31, 2012, showed $7.25 million in total assets, $7.33 million in total liabilities, $25.13 million in redeemable preferred stock, and a $25.20 million total deficit. INKSURE TECHNOLOGIES: 10-Q Filing for 2nd Quarter Will be Delayed ----------------------------------------------------------------- InkSure Technologies Inc. says that the filing of its quarterly report on Form 10-Q for the second quarter ended June 30, 2012, will be delayed. Said report will be filed be filed on or before the fifth calendar day following the prescribed due date. The Company said it needs additional time to complete the presentation of its financial statements, and the analysis thereof. No other details were provided. According to the Form 12b-25 filing, in the six months ended on June 30, 2012, approximately 3% of the Company's revenues were earned from its largest customer, compared with 49% in the six months ended on June 30, 2011, while approximately 14% and 0% of its revenues were earned from the other two large customers in the six months ended on June 30, 2012, compared with 17% and 14%, respectively, in the six months ended on June 30, 2011. "Our revenues from our major customer, combined with the decreased revenues from the two other large customers noted above, totaled into 17% of our revenues in the six months ended on June 30, 2012, compared with 80%, in the six months ended on June 30, 2011, was the main reason for the decrease in our total revenues." "The loss of these customers, or any substantial portion of such customer's business, which accounts for a significant portion of the registrant's revenues, would adversely affect the registrant's business, operating results and financial condition. In the event that the customers inform the registrant that they will not be able to purchase the registrant's products at the same level as before, or at all, the registrant would need to provide disclosures regarding its business operations and liquidity and capital resources to reflect a potential decrease in total future revenues or even substantial doubt as to the registrant's ability to continue its operations as a going concern." A copy of the Form 12b-25 is available for free at: http://is.gd/YFSWlm New York, N.Y.-based InkSure Technologies Inc. specializes in comprehensive security solutions, designed to protect branded products and documents from counterfeiting, fraud, and diversion. INNOVATIVE FOOD: Delays Form 10-Q for Second Quarter ---------------------------------------------------- Innovative Food Holdings, Inc., informed the U.S. Securities and Exchange Commission that it will be delayed in filing its quarterly report on Form 10-Q for the period ended June 30, 2012. The Company said it requires additional time to compile financial information from a newly acquired affiliate and cannot complete that task without unreasonable expense and effort. About Innovative Food Naples, Fla.-based Innovative Food Holdings, Inc., through its subsidiaries, provides perishables and specialty food products to the wholesale foodservice industry. In its audit report for the 2011 financial statements, RBSM LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses from operations since its inception and has a working capital deficiency. The Company reported net income of $1.49 million in 2011, compared with a net loss of $2.11 million in 2010. The Company's balance sheet at March 31, 2012, showed $1.37 million in total assets, $5.30 million in total liabilities, all current, and a $3.93 million total stockholders' deficiency. INTEGRATED ENVIRONMENTAL: Incurs $550,000 Net Loss in 2nd Quarter ----------------------------------------------------------------- Integrated Environmental Technologies, Ltd., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $549,715 on $37,253 of revenue for the three months ended June 30, 2012, compared with a net loss of $623,415 on $190,819 of revenue for the same period during the prior year. The Company reported a net loss of $1.02 million on $83,052 of revenue for the six months ended June 30, 2012, compared with a net loss of $1.16 million on $230,329 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $902,454 in total assets, $1.55 million in total liabilities and a $654,929 total stockholders' deficiency. A copy of the Form 10-Q is available for free at: http://is.gd/JV1gAA About Integrated Environmental Little River, S.C.-based Integrated Environmental Technologies, Ltd., operates through its wholly-owned subsidiary, I.E.T., Inc., a Nevada corporation incorporated on Jan. 11, 2002. IET produces and sells hypochlorous acid ("Anolyte") as well as an anti-oxidizing, mildly alkaline solution ("Catholyte" and, together with Anolyte, the "Solutions"), that provide an environmentally friendly alternative for cleaning, sanitizing and disinfecting as compared to the hazardous chemicals traditionally prevalent in commercial use. The Company manufactures proprietary EcaFlo(R) equipment that is used to produce the Solutions for distribution by the Company and, under certain circumstances, such equipment is leased by the Company to customers for use at a customer's facility. As reported in the TCR on April 2, 2012, Weaver, Martin & Samyn, LLC, in Kansas City, Missouri, expressed substantial doubt about Integrated Environmental'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 incurred significant recurring operating losses, negative cash flows from operations and has a working capital deficiency. "The Company also has no lending relationships with commercial banks and is dependent on the completion of financings in order to continue operations." INTELLICELL BIOSCIENCES: Common Stock Trading on OTCQB ------------------------------------------------------ Intellicell Biosciences, Inc., issued a letter to shareholders updating the Company's progress since the completion of its reverse merger with Media Exchange Group, Inc. The Company said it is now quoted on the OTCQB under the symbol SVFC. It has also opened its flagship location, which consists of a new, state-of- the-art medical, surgical and tissue processing facility located at 460 Park Avenue in New York City. The Company has added two new members to its staff, Ms. Sarah Young as Quality Assurance Director, and Mr. Robert Sexauer, as EVP of Clinical Research. A complete copy of the letter is available at http://is.gd/rOFb06 About Intellicell Biosciences Intellicell BioSciences, Inc., headquartered in New York, N.Y., was formed on Aug. 13, 2010, under the name "Regen Biosciences, Inc." as a pioneering regenerative medicine company to develop and commercialize regenerative medical technologies in large markets with unmet clinical needs. On Feb. 17, 2011, the company changed its name from "Regen Biosciences, Inc." to "IntelliCell BioSciences Inc". To date, IntelliCell has developed proprietary technologies that allow for the efficient and reproducible separation of stromal vascular fraction (branded "IntelliCell(TM)") containing adipose stem cells that can be performed in tissue processing centers and in doctors' offices. The Company's balance sheet at March 31, 2012, showed $3.51 million in total assets, $21.97 million in total liabilities, and a $18.46 million total stockholders' deficit. The Company has incurred losses since inception resulting in an accumulated deficit of $43,079,590 and a working capital deficit of $3,811,024 as of March 31, 2012, respectively. However, if the non-cash expense related to the Company's change in fair value of derivative liability and stock based compensation is excluded then the accumulated deficit amounted to $4,121,538. Further losses are anticipated in the continued development of its business, raising substantial doubt about the Company's ability to continue as a going concern. INTERACTIVE DATA: S&P Reinstates 'B' Rating on $700MM Sr. Notes --------------------------------------------------------------- Standard & Poor's Ratings Services reinstated its ratings on Interactive Data Corp.'s $700 million senior unsecured notes due 2018. "The issue-level rating on the notes is 'B' (one notch lower than our 'B+' corporate credit rating on the company)and the recovery rating is '5', indicating our expectation of modest (10% to 30%) recovery in the event of a payment default. The ratings on the notes were previously withdrawn due to an administrative error," S&P said. INTERMETRO COMMUNICATIONS: Reports $191,000 Income in Q2 -------------------------------------------------------- InterMetro Communications, Inc., filed its quarterly report on Form 10-Q, reporting net income of $191,000 on $4.9 million of revenues for the three months ended June 30, 2012, compared with net income of $345,000 on $5.4 million of revenues for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $4,000 on $9.3 million of revenues, compared with net income of $2.4 million on $11.6 million of revenues for the corresponding period in 2011. The Company recorded a gain on forgiveness of debt of $1.9 million for the six months ended June 30, 2011. The Company's balance sheet at June 30, 2012, showed $3.3 million in total assets, $16.4 million in total liabilities, and a stockholders' deficit of $13.1 million. The Company had a working capital deficit of $12.6 million and had a total stockholders' deficit of $13.1 million as of June 30, 2012. As reported in the TCR on April 3, 2012, Gumbiner Savett Inc., in Santa Monica, California, expressed substantial doubt about InterMetro's ability to continue as a going concern, following its report on the Company's financial statements for the year ended Dec. 31, 2011. The independent auditors noted that the Company incurred net losses in previous years, and as of Dec. 31, 2011, the Company had a working capital deficit of approximately $12,696,000 and a total stockholders' deficit of approximately $13,274,000. The Company anticipates that it will not have sufficient cash flow to fund its operations in the near term and through fiscal 2012 without the completion of additional financing. A copy of the Form 10-Q is available for free at: http://is.gd/hgLq7G Simi Valley, Calif.-based InterMetro Communications, Inc. -- http://www.intermetro.net/ -- is a Nevada corporation which through its wholly owned subsidiary, InterMetro Communications, Inc. (Delaware), is engaged in the business of providing voice over Internet Protocol ("VoIP") communications services. INTERNAL FIXATION: Delays 2nd Qtr. Form 10-Q for Ongoing Analysis ----------------------------------------------------------------- Internal Fixation Systems, Inc., was not able to file its quarterly report on Form 10-Q for the quarter ended June 30, 2012, on or prior to Aug. 15, 2012, because the Company is in the process of completing its analysis of current versus non-current inventory as well as the costs of goods analysis for the period. About Internal Fixation South Miami, Fla.-based Internal Fixation Systems, Inc., is a manufacturer and marketer of generically priced orthopedic and podiatric implants. Customers include ambulatory surgery centers, hospitals and orthopedic surgeons. IFS's strategy is to focus on commonly used implants that no longer have patent protection. The Company enhances the implants and sells them at prices below the market leaders. The Company reported a net loss of $3.45 million in 2011, compared with a net loss of $781,440 in 2010. The Company's balance sheet at March 31, 2012, showed $1.75 million in total assets, $1.98 million in total liabilities and a $232,715 total stockholders' deficit. After auditing the Company's financial results for 2011, Goldstein Schechter Koch P.A., in Hollywood, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a net loss in 2011 and 2010. Additionally, the Company has an accumulated deficit of approximately $4.21 million and a working capital deficit of approximately $683,500 at Dec. 31, 2011, and is unable to generate sufficient cash flow to fund current operations. INTERNATIONAL COMMERCIAL: Posts $112,000 Net Income in Q2 --------------------------------------------------------- International Commercial Television Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $112,474 on $3.83 million of net sales for the three months ended June 30, 2012, compared with net income of $5,588 on $687,142 of net sales for the same period during the prior year. The Company reported net income of $90,866 on $6.49 million of net sales for the six months ended June 30, 2012, compared with a net loss of $227,941 on $1.21 million of net sales for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $1.88 million in total assets, $2.36 million in total liabilities and a $479,507 total shareholders' deficit. Bankruptcy Warning "There is no guarantee that the Company will be successful in bringing our products into the traditional retail environment," the Company said in its quarterly report for the period ended June 30, 2012. "If the Company is unsuccessful in achieving this goal, the Company will be required to raise additional capital to meet its working capital needs. If the Company is unsuccessful in completing additional financings, it will not be able to meet its working capital needs or execute its business plan. In such case the Company will assess all available alternatives including a sale of its assets or merger, the suspension of operations and possibly liquidation, auction, bankruptcy, or other measures." A copy of the Form 10-Q is available for free at: http://is.gd/50Pi6W About International Commercial Wayne, Pa.-based International Commercial Television Inc. sells various consumer products. The products are primarily marketed and sold throughout the United States and internationally via infomercials. EisnerAmper, LLP, in Edison, New Jersey, expressed substantial douobt about International Commercial Television'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 of the Company's recurring losses from operations and negative cash flows from operations. INTERNATIONAL FUEL: Incurs $434,000 Net Loss in Second Quarter -------------------------------------------------------------- International Fuel Technology, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $433,632 on $76,316 of net revenues for the three months ended June 30, 2012, compared with a net loss of $593,847 on $45,574 of net revenues for the same period during the prior year. The Company reported a net loss of $934,593 on $156,998 of net revenues for the six months ended June 30, 2012, compared with a net loss of $1.11 million on $108,504 of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $2.39 million in total assets, $4.61 million in total liabilities and a $2.22 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/6fD6Z9 About International Fuel St. Louis, Mo.-based International Fuel Technology, Inc., is a technology company that has developed a range of liquid fuel additive formulations that enhance the performance of petroleum- based fuels and renewable liquid fuels. BDO USA, LLP, in Chicago, Illinois, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2011, citing recurring losses from operations, working capital and stockholders' deficits and cash obligations and outflows from operating activities that raise substantial doubt about its ability to continue as a going concern. The Company reported a net loss of $2.57 million in 2011, compared with a net loss of $2.21 million in 2010. INTRALINKS HOLDINGS: S&P Cuts CCR to 'B+' on Lower Profitability ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on New York City-based IntraLinks Holdings Inc. to 'B+' from 'BB-'. "At the same time, we removed the ratings from CreditWatch with negative implications, where it was placed on May 16, 2012. The outlook is stable," S&P said. "We also lowered our issue-level rating on the company's first- lien credit facility to 'BB' from 'BB+'. The recovery rating of '1' remains unchanged, indicating our expectation of very high (90%-100%) recovery of principal in the event of payment default," S&P said. "The downgrade reflects lack of revenue growth and materially weaker profitability and free cash flow in the first half of 2012, as well as a reduction in our visibility of future operating performance," said Standard & Poor's credit analyst Christian Frank. "The rating on IntraLinks reflects the company's 'weak' business risk profile, marked by slowing revenue growth and decreased profitability, and its 'aggressive' financial risk profile, incorporating a modest EBITDA base and minimal free operating cash flow (FOCF). Meaningful recurring revenues, relationships with key partners, and a track record of debt repayment partly offset these factors," S&P said. "The stable outlook incorporates the company's significant base of recurring revenue, good channel partner relationships, and conservative financial policy. An upgrade is unlikely in the near term given current profitability and cash flow levels. However, sustainable revenue growth, with restoration of EBITDA and FOCF to near fiscal 2011 levels could lead to higher ratings in the near- to-intermediate term," S&P said. "Conversely, we could lower the rating if lack of execution or increased competition lead to further EBITDA declines with negative FOCF on a sustained basis," S&P said. IRVINE SENSORS: Reports $6.9 Million Net Income in July 1 Quarter ----------------------------------------------------------------- ISC8, Inc., formerly known as Irvine Sensors Corporation, filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $6.93 million on $932,900 of total revenues for the 13 weeks ended July 1, 2012, compared with net income of $4.49 million on $1.56 million of total revenues for period ended July 3, 2011. The Company reported a net loss of $12.63 million on $3.43 million of total revenues for the 39 weeks ended July 1, 2012, compared with a net loss of $13.88 million on $3.50 million of total revenues for the 39 weeks ended July 3, 2011. The Company's balance sheet at July 1, 2012, showed $8.87 million in total assets, $36.99 million in total liabilities and a $28.12 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/YGsH26 About Irvine Sensors Headquartered in Costa Mesa, Calif., Irvine Sensors Corporation (OTC BB: IRSN) -- http://www.irvine-sensors.com/-- is a vision systems company engaged in the development and sale of miniaturized infrared and electro-optical cameras, image processors and stacked chip assemblies and sale of higher level systems incorporating said products. Irvine Sensors also conducts research and development related to high density electronics, miniaturized sensors, optical interconnection technology, high speed network security, image processing and low-power analog and mixed-signal integrated circuits for diverse systems applications. The Company reported a net loss of $15.76 million on $14.09 million of total revenues for the fiscal year ended Oct. 2, 2011, compared with a net loss of $11.15 million on $11.71 million of total revenues for the fiscal year ended Oct. 3, 2010. JEFFERSON COUNTY, AL: Birmingham to Have Own Suit on Sewers ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the city council in Birmingham, Alabama, will have its own lawsuit attempting to prove that bondholders' liens on sewer revenues are invalid. The report recounts that in February, the bondholders' indenture trustee filed suit in bankruptcy court against Jefferson County, claiming the right to control the sewer system and its revenue. The bankruptcy judge ruled that the county's filing for Chapter 9 municipal bankruptcy ousted the receiver appointed before bankruptcy in state court at the bondholders' behest. The dispute is on appeal to the U.S. Court of Appeals in Atlanta. The report relates that in June, the city council members filed what they styled as a class proof of claim against the county for $1.6 billion in overcharges from the sewer system arising from what they called "misconduct and criminal activity by managerial personnel and others acting in collusion." They followed up in June with papers asking the judge to allow them to intervene in the lawsuit as a class representing sewer customers. The report notes that the city council intends to prove that the bondholders' lien on sewer revenue is void. The city council believes the county has a conflict of interest and can't adequately represent citizens who pay what they claim are inflated sewer bills resulting from criminal activity. At a hearing last week, the bankruptcy judge declined to allow the sewer customers to intervene in the lawsuit. Instead, he told the sewer customers to prosecute a separate lawsuit of their own in bankruptcy court challenging the validity of the bondholders' liens. The judge, according to the report, instructed the city council, wearing the hats of sewer customers, to file a revised complaint by Sept. 7. The judge said the customers might be given an extra two weeks if they request. Where bondholders lost in January when the judge said bankruptcy ousted them from direct control of the sewer system and its revenue, they won on June 29 when the judge wrote an opinion saying that the bond indenture limits what the county may deduct from sewer revenue before paying the remainder to bondholders. The lawsuit over control of the sewers and revenue is Bank of New York Mellon v. Jefferson County, Alabama (In re Jefferson County, Alabama), 12-00016, U.S. Bankruptcy Court, Northern District Alabama (Birmingham). 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. JENNE HILL: Wells Fargo to be Paid in One Year, Not Five -------------------------------------------------------- Jenne Hill Townhomes, L.L.C., on Aug. 15, 2012, amended its plan of reorganization to incorporate the terms of a settlement reached with Wells Fargo, N.A. Jenne Hill Townhomes in April filed a proposed plan to pay off Wells Fargo and other creditors. But Wells Fargo objected to that iteration of the Plan, noting that the Plan is not feasible and interest to be paid to the bank is too low. It noted that while general unsecured creditors will be paid within 30 days from the effective date of the Plan, Wells Fargo would be paid 60 monthly payments on its claims, consisting of blended installments of principal and interest at 5.5% per annum on a 25-year amortization, with all remaining amounts due to be paid on the 61st month. According to the Plan amended this month, Wells Fargo's $9.72 million secured claim will bear interest at 6.0% per annum and the bank will receive monthly payments of interest of $48,593. The full amount of the claim will be due and payable Dec. 21, 2013. The Debtor will execute and deposit a warranty deed conveying to Wells Fargo in lieu of foreclosure or sale all right and interest to the Debtor's Townhome Complex. In the event that full payment is not made by Dec. 31, 2013, the Debtor will sell the Townhome Complex in January 2014. A copy of the Amended Plan is available for free at: http://bankrupt.com/misc/Jenne_Hill_Plan_081512.pdf As a result of the settlement, Wells Fargo withdrew its objection and its negative ballot. About Jenne Hill Columbia, Missouri-based Jenne Hill Townhomes, L.L.C., is a Missouri limited liability company that owns and operates a complex of high end townhomes in Columbia, Missouri. The Debtor filed for Chapter 11 bankruptcy (Bank. W.D. Mo. Case No.11-22129) on Dec. 22, 2011. In its schedules, the Debtor disclosed $14,131,453 in assets and $9,743,209 in liabilities. The petition was signed by Fredd Spencer, manager. Judge Dennis R. Dow presides over the case. Bryan C. Bacon, Esq., at Van Matre, Harrison, Hollis, and Taylor, P.C., in Columbia, Missouri, serves as the Debtor's counsel. JERRY'S NUGGET: U.S. Bank Objecting to Cash Use, Priming of Lien ---------------------------------------------------------------- Jerry's Nugget Inc. and Spartan Gaming LLC are facing opposition from U.S. Bank National Association and August B. Landis, Acting United States Trustee for Region 17, in their request for an initial determination of the extent of the cash collateral and for interim authority to use cash collateral. The Debtors contend their postpetition revenues do not constitute U.S. Bank's cash collateral. The Debtors also argue that the postpetition revenues are not "proceeds," as defined by 11 U.S.C. Section 552(b)(1), and that U.S. Bank's security interests are invalid because U.S. Bank does not have the appropriate gaming licenses. U.S. Bank refutes the Debtors' arguments, insisting it has valid and perfected liens on all real and personal property of Jerry's Nugget (including certain real property now owned by Spartan), including pre-and post-petition cash, deposit accounts, and proceeds of collateral. U.S. Bank also contends the postpetition revenues received by the Debtors do not stem from new collateral that is acquired postpetition. Instead, the postpetition revenues all stem from the collateral securing the obligations owed to U.S. Bank. U.S. Bank also pointed out it bargained for a security interest in Jerry's Nugget's cash collateral as part of its agreement to loan Jerry's Nugget more than $3,000,000, and there is ample evidence that U.S. Bank depended on the revenues as collateral. U.S. Bank also contends that, contrary to the Debtors' assertions, NRS Sec. 463.160(1) does not prohibit a creditor from receiving a security interest in revenues generated by a casino operation. The Debtors said the licensing statute refers to an "owner, lessee, or employee" not receiving "any compensation or reward or any percentage or share of the money or property played, for keeping or running or carrying on any gambling game. . . ." According to U.S. Bank, the statute does not apply to U.S. Bank's security interest because U.S. Bank is not an "owner, lessee, or employee" of a casino operation. Also, U.S. Bank does not -- by virtue of its security interest in Jerry's Nugget's property -- receive "compensation or reward or any percentage or share of the money or property played, for keeping or running or carrying on any gambling game. . . ." U.S. Bank contends that as of Aug. 16, (a) over 10 months after the passage of the Oct. 1, 2011 maturity date, Jerry's Nugget has failed to repay U.S. Bank; and (b) Jerry's Nugget currently owes U.S. Bank no less than $3,184,792 in principal together with accrued and unpaid interest, and fees and other amounts. U.S. Bank also says Jerry's Nugget continues to divert U.S. Bank's cash collateral. U.S. Bank estimates that at least $500,000 of U.S. Bank's cash collateral has been diverted to date, which amount increases every day that goes by in which U.S. Bank is not able to gain control over its cash collateral. Meanwhile, the Acting U.S. Trustee says approval of the Cash Collateral Motion should be denied to the extent that it seeks an order determining the validity, priority, or extent of a lien or other interest in property without an adversary proceeding as required by Fed. R. Bankr. P. 7001(2). US Bank claims to be owed $3.6 million on a secured term note that matured in October 2011. 2010-1 CRE Venture, LLC, claims it is owed $728,000 on a business loan provided by Community Bank of Nevada to JNI. CM Capital Services, LLC, asserts $944,000 owing on a business loan. A hearing was held Aug. 16 at 2:00 p.m. on the Debtors' request to use cash collateral. The matter is continued to Sept. 19 at 11:00 a.m. U.S. Bank is represented by: Jeanette E. McPherson, Esq. SCHWARTZER & MCPHERSON LAW FIRM 2850 South Jones Boulevard, Suite 1 Las Vegas, NV 89146 Telephone: (702) 228-7590 Facsimile: (702) 892-0122 E-mail: jmcpherson@s-mlaw.com - and - Annette W. Jarvis, Esq. Michael F. Thomson, Esq. DORSEY & WHITNEY LLP 136 South Main Street, Suite 1000 Salt Lake City, UT 84101 Telephone: (801) 933-8945 Facsimile: (801) 933-7373 E-mail: jarvis.annette@dorsey.com thomson.michael@dorsey.com About Jerry's Nugget and Spartan Gaming Jerry's Nugget Inc. and affiliate Spartan Gaming LLC sought Chapter 11 protection (Bankr. D. Nev. Lead Case No. 12-19387) in Las Vegas, Vegas, on Aug. 13, 2012. Stamis family-owned Jerry's Nugget has a 9.1-acre casino property in North Las Vegas. The property consists of 87,187 square feet of building area and 24,511 square feet of casino floor space, with 630 slot and video poker machines and 9 table games. Jerry's Nugget also contains a sports book, a keno area, and a small live pit. There are two restaurants the Uncle Angelo's Pizza Joint and Jerry's Famous Coffee shop as well as Uncle Angelo's Bakery, a locals' favorite. Net revenues totaled $22.5 million, including $15.3 million in gaming revenue, in the year ended Dec. 31, 2011. Spartan Gaming owns 12 parcels of real property in Nevada. Two of the parcels provide parking access for Jerry's Nugget. Judge Mike K. Nakagawa presides over the case. Lawyers at Gordon Silver serve as the Debtors' counsel. Jerry's Nugget estimated assets and debts of $10 million to $50 million. Jerry's Nugget said its current going concern value is at least $8 million. Spartan Gaming estimated $1 million to $10 million in assets and debts. The petitions were signed by Jeremy Stamis, president. JERRY'S NUGGET: Hiring Gordon Silver as Chapter 11 Counsel ---------------------------------------------------------- Jerry's Nugget, Inc., and Spartan Gaming LLC seek Court approval to employ the law firm of Gordon Silver as Chapter 11 counsel pursuant to Legal Representation Agreements entered into on Jan. 13, 2012, and Aug. 1, 2012. Prior to the Petition Date, Jerry's Nugget paid Gordon Silver $138,690 for legal services rendered in connection with its restructuring. The firm is also currently holding $71,230 as retainer. The compensation of Gordon Silver's attorneys and paraprofessionals are proposed at varying rates currently ranging from: $135 per hour to $190 per hour for paraprofessionals $190 per hour to $360 per hour for associates, and $400 per hour to $725 per hour for shareholders Gordon Silver's Talitha Gray Kozlowski, Esq., attests that neither the firm nor any of its shareholders or associates have any present or prior connection with the Debtors, or their creditors, or other parties-in-interest. Ms. Kozlowski also attests that the firm and its shareholders and associates do not hold or represent any interest adverse to Debtors' estate, and the firm and its shareholders and associates are disinterested persons within the meaning of Sections 101(14) and 327 of the Bankruptcy Code, as modified by Section 1107(b). Gordon Silver may be reached at: Gerald M. Gordon, Esq. Talitha Gray Kozlowski, Esq. Erick T. Gjerdingen, Esq. GORDON SILVER 3960 Howard Hughes Pkyw., 9th Floor Las Vegas, NV 89169 Telephone: (702) 796-5555 Facsimile: (702) 369-2666 E-mail: ggordon@gordonsilver.com tgray@gordonsilver.com egjerdingen@gordonsilver.com About Jerry's Nugget and Spartan Gaming Jerry's Nugget Inc. and affiliate Spartan Gaming LLC sought Chapter 11 protection (Bankr. D. Nev. Lead Case No. 12-19387) in Las Vegas, Vegas, on Aug. 13, 2012. Stamis family-owned Jerry's Nugget has a 9.1-acre casino property in North Las Vegas. The property consists of 87,187 square feet of building area and 24,511 square feet of casino floor space, with 630 slot and video poker machines and 9 table games. Jerry's Nugget also contains a sports book, a keno area, and a small live pit. There are two restaurants the Uncle Angelo's Pizza Joint and Jerry's Famous Coffee shop as well as Uncle Angelo's Bakery, a locals' favorite. Net revenues totaled $22.5 million, including $15.3 million in gaming revenue, in the year ended Dec. 31, 2011. Spartan Gaming owns 12 parcels of real property in Nevada. Two of the parcels provide parking access for Jerry's Nugget. Judge Mike K. Nakagawa presides over the case. Lawyers at Gordon Silver serve as the Debtors' counsel. Jerry's Nugget estimated assets and debts of $10 million to $50 million. Jerry's Nugget said its current going concern value is at least $8 million. Spartan Gaming estimated $1 million to $10 million in assets and debts. The petitions were signed by Jeremy Stamis, president. JMS HOLDINGS: Case Summary & 4 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: JMS Holdings, Inc. 7370 Borman Rd New Tripoli, PA 18066 Bankruptcy Case No.: 12-17779 Chapter 11 Petition Date: August 16, 2012 Court: United States Bankruptcy Court Eastern District of Pennsylvania (Reading) Judge: Richard E. Fehling Debtor's Counsel: John R.K. Solt, Esq. JOHN R. K. SOLT, P.C. 1425 Hamilton Street Allentown, PA 18102 Tel: (610) 433-9717 Fax: (610) 433-6771 E-mail: jrksolt@verizon.net Scheduled Assets: $1,604,825 Scheduled Liabilities: $2,762,531 A copy of the Company's list of its four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/paeb12-17779.pdf The petition was signed by Leroy F. Buskirk, president/secretary. KRYSTAL INFINITY: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Krystal Infinity LLC dba Krystal Enterprises 2701 E. Imperial Highway Brea, CA 92821 Bankruptcy Case No.: 12-19701 Chapter 11 Petition Date: August 14, 2012 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Catherine E. Bauer About the Debtor: Krystal Infinity manufactures and sells stretch limousines, limousine vans, shuttle buses, limousine busses and hearses. The business was acquired by the Debtor through a 11 U.S.C. Sec. 363 sale conducted by Krystal Koach, Inc. (Case No. 10-26547) in January 2011. Debtor's Counsel: Krikor J. Meshefejian, Esq. LEVENE, NEALE, BENDER, YOO & BRILL LLP 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 Fax: (310) 229-1244 E-mail: kjm@lnbrb.com - and ? Ron Bender, Esq. LEVENE, NEALE, BENDER, YOO & BRILL LLP 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 E-mail: rb@lnbyb.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Edward Grech, chief executive officer. Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Freedman Seating Company -- $74,745 4545 W. Augusta Boulevard Chicago, IL 60651 ACC Climate Control -- $52,719 P.O. Box 1905 Elkhart, IN 46515 Parque Industrial El Dorado, -- $51,048 S.A. de C.V Km. 10.5 Carretera San Luis R.C. Parque Ind. Las Californias Mexicali, Baja California 21394, MX Summit Seating, Inc. -- $50,070 WorldCNG -- $49,516 Newport Laminates, Inc. -- $41,527 Con-Way Freight, Inc. -- $36,805 Agueros Gomez Luis Miguel -- $35,685 Modern Technologies -- $28,164 BASF Corporation -- $27,597 JPF Glass Stone Inc. -- $26,957 Reliance Steel Company -- $26,419 G&H Professional Transport -- $25,300 Blackhawk Manufacturing, Inc. -- $24,799 SE-GI Products, Inc. -- $19,843 Powertrain Industries -- $18,717 Bobit Business Media -- $18,600 Worthington Ford -- $16,712 VIP Rubber Company -- $15,376 Comision Federal de Electricidad -- $15,299 KAMAS DEVELOPMENT: Case Summary & Unsecured Creditor ---------------------------------------------------- Debtor: Kamas Development, LLC 3191 East Warm Springs Road Las Vegas, NV 89120 Bankruptcy Case No.: 12-30392 Chapter 11 Petition Date: August 14, 2012 Court: U.S. Bankruptcy Court District of Utah (Salt Lake City) Judge: Joel T. Marker Debtor's Counsel: Harold H. Armstrong, Esq. JLJ LAW GROUP, PLLC 124 South 400 East, Suite 410 Salt Lake City, UT 84111 Tel: (801) 883-8204 Fax: (877) 582-6074 E-mail: harmstrong@jljlawgroup.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Robert D. Martin, manager. The Company's list of its largest unsecured creditors contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kamas Meadows LLC Land $1,600,000 10808 South Riverfront Parkway, Suite 363 South Jordan, UT 84095 LEHIGH VALLEY: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Lehigh Valley Truss, Inc. 3030 Unionville Pike Hatfield, PA 19440 Bankruptcy Case No.: 12-17747 Chapter 11 Petition Date: August 16, 2012 Court: United States Bankruptcy Court Eastern District of Pennsylvania (Philadelphia) Judge: Magdeline D. Coleman Debtor's Counsel: Thomas Daniel Bielli, Esq. O'KELLY ERNST BIELLI & WALLEN 1600 Market Street, 25th Floor Philadelphia, PA 19103 Tel: (215) 543-7182 Fax: (215) 391-4350 E-mail: tbielli@oelegal.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by David A. Tocci, president. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- David A. Tocci 11-16953 09/08/11 LOCAL TV: S&P Raise CCR to 'B+' on Solid Performance ---------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Fort Wright, Ky.-based Local TV LLC and operating subsidiary Local TV Finance LLC (which S&P analyzes on a consolidated basis) to 'B+' from 'B'. The rating outlook is stable. "At the same time, we revised our recovery rating on Local TV Finance LLC's senior unsecured notes to '5', indicating our expectation of modest (10% to 30%) recovery for noteholders in the event of a payment default, from '6' (0 to 10% recovery expectation)," said Standard & Poor's credit analyst Jeanne Shoesmith. "The issue-level rating on the debt was raised to 'B' (one notch below than the 'B+' corporate credit rating) from 'CCC+', in accordance with our notching criteria for a '5' recovery rating. The revision of the recovery rating reflects less debt at default than we used in our previous simulated default scenario, which results in a higher estimated recovery for noteholders." "We also raised the issue-level rating on Local TV Finance LLC's senior secured credit facilities to 'BB' from 'BB-' in conjunction with the upgrade of the corporate credit rating. The recovery rating on this debt remains unchanged at '1', indicating our expectation of very high (90% to 100%) recovery for lenders in the event of a payment default," S&P said. "The corporate credit rating on Local TV is based on our expectation that the company will be able to maintain adequate liquidity despite about $12.3 million of near term debt maturities and the company's high leverage. We consider the company's business risk profile as 'fair' (based on our criteria) reflecting the company's leading news ratings in its markets and EBITDA margin comparable to its peers'. This represents a reassessment of our previous view of the business risk profile as 'weak,' based on our analysis of Local TV's position relative to peers. Local TV's ratio of lease-adjusted debt to EBITDA of 5.9x (pro forma for debt repaid in July 2012) underpins our view of the company's financial risk profile as 'highly leveraged." LUCID INC: Incurs $2.3 Million Net Loss in Second Quarter --------------------------------------------------------- Lucid, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.33 million on $571,749 of total revenue for the three months ended June 30, 2012, compared with a net loss of $2.21 million on $874,469 of total revenue for the same period during the prior year. The Company reported a net loss of $5.71 million on $889,558 of total revenue for the six months ended June 30, 2012, compared with a net loss of $4.14 million on $1.61 million of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $1.16 million in total assets, $6.22 million in total liabilities and a $5.06 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/3GH8FD About Lucid Inc. Rochester, N.Y.-based Lucid, Inc., is a medical device company that designs, manufactures and sells non-invasive cellular imaging devices that assist physicians in the early detection of disease. The Company's VivaScope(R) platform produces rapid noninvasive, high-resolution cellular images for subsequent diagnostic review by physicians, pathologists and other diagnostic readers. As reported in the TCR on April 9, 2012, Deloitte & Touche LLP, in Rochester, New York, expressed substantial doubt about Lucid'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 of the Company's recurring losses from operations, deficit in equity, and projected need to raise additional capital to fund operations. MARINA DISTRICT: S&P Lowers CCR to 'B'; Outlook is Stable --------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Atlantic City-based Marina District Development Co. LLC (MDDC). "We lowered our corporate credit rating to 'B' from 'B+'. The rating outlook is stable," S&P said. "At the same time, we lowered our issue-level rating on wholly owned subsidiary Marina District Finance Co.'s senior secured notes due 2015 and 2018 to 'B+' (one notch above the corporate credit rating on MDDC), from 'BB-'," said Standard & Poor's credit analyst Melissa Long. "The recovery rating remains '2', reflecting our expectation for substantial (70% to 90%) recovery for noteholders in the event of a payment default." MDDC owns and operates Borgata Hotel Casino and Spa in Atlantic City, N.J. "The downgrade reflects weaker-than-anticipated operating performance in the second quarter at Borgata relative to our full year expectations, and our belief that second half performance will be challenged by a softening macroeconomic environment as well as additional competitive pressures in the Atlantic City market. As a result, we are revising our 2012 and 2013 performance expectations for Borgata. Under our current forecast, we expect EBITDA to decline about 15% in 2012, relative to our previous expectation for 10%. While we expect declines to continue into 2013, we believe Borgata will bottom at around $125 million of EBITDA. Under these revised performance expectations, we expect operating lease adjusted leverage will reach the mid-6x area in 2013, a level which we believe is more aligned with a 'B' corporate credit rating for a single property gaming operator. That said, despite our expectations for continued EBITDA declines, we expect the property will continue to generate moderate amounts of free operating cash flow (averaging about $25 million annually over the next few years), and we believe that this cash flow could be used to repay outstanding revolver balances and potentially repurchase senior secured notes," S&P said. MARKETING WORLDWIDE: Delays Form 10-Q for Second Quarter -------------------------------------------------------- Marketing Worldwide Corporation notified the U.S. Securities and Exchange Commission regarding the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2012. The Company said it was awaiting information from outside third parties in order to complete the Form 10-Q. About Marketing Worldwide Based in Howell, Michigan, Marketing Worldwide Corporation operates through the holding company structure and conducts its business operations through its wholly owned subsidiaries Colortek, Inc., and Marketing Worldwide, LLC. Marketing Worldwide, LLC, is a complete design, manufacturer and fulfillment business providing accessories for the customization of vehicles and delivers its products to large global automobile manufacturers and certain Vehicle Processing Centers primarily in North America. MWW operates in a 23,000 square foot leased building in Howell Michigan. Colortek, Inc., is a Class A Original Equipment painting facility and operates in a 46,000 square foot owned building in Baroda, which is in South Western Michigan. MWW invested approximately $2 million into this paint facility and expects the majority of its future growth to come from this business. The Company reported a net loss of $2.27 million for the year ended Sept. 30, 2011, compared with a net loss of $2.34 million during the prior year. After auditing the financial statements for the year ended Dec. 31, 2011, RBSM LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2011 financing results. The independent auditors noted that the Company has generated negative cash flows from operating activities, experienced recurring net operating losses, is in default of loan certain covenants, and is dependent on securing additional equity and debt financing to support its business efforts. The Company's balance sheet at March 31, 2012, showed $1.31 million in total assets, $5.86 million in total liabilities, $1.69 million in series A convertible preferred stock, and a $6.24 million total stockholders' deficiency. MEDICAL CONNECTIONS: Incurs $741,000 Net Loss in Second Quarter --------------------------------------------------------------- Medical Connections Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $740,621 on $1.62 million of revenue for the three months ended June 30, 2012, compared with a net loss of $935,093 on $1.77 million of revenue for the same period during the prior year. The Company reported a net loss of $2.18 million on $3.28 million of revenue for the six months ended June 30, 2012, compared with a net loss of $1.80 million on $3.81 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $1.79 million in total assets, $1.39 million in total liabilities and $403,060 in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/TN9G8P About Medical Connections Boca Raton, Fla.-based Medical Connections Holdings, Inc., is a healthcare staffing company which provides staffing services for allied professionals and nurses to the Company's clients on a national basis. In its audit report for the 2011 financial statements, De Meo, Young, McGrath, in Boca Raton, Florida, noted that the Company's dependence on outside financing, lack of sufficient working capital, and recurring losses from consolidated operations raise substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of $3.71 million on $6.65 million of revenue in 2011, compared with a net loss of $7.78 million on $7.80 million of revenue in 2010. MEDYTOX SOLUTIONS: Borrows Additional $525,000 from TCA Global -------------------------------------------------------------- Medytox Solutions, Inc., on May 14, 2012, borrowed $550,000 from TCA Global Credit Master Fund, LP, pursuant to the terms of the Senior Secured Revolving Credit Facility Agreement, dated as of April 30, 2012, among Medytox, Medytox Medical Marketing & Sales, Inc., Medytox Diagnostics, Inc., PB Laboratories, LLC and TCA. On Aug. 8, 2012, Medytox borrowed an additional $525,000 from TCA pursuant to the terms of Amendment No. 1 to Senior Secured Revolving Credit Facility Agreement, dated as of July 31, 2012. These additional funds will be used for general corporate purposes. Amendment No. 1 effected certain changes to the terms of the Credit Agreement: * the revolving loan commitment was increased from $550,000 to $1,100,000 and is subject to further increase, up to a maximum of $4,000,000, in TCA's sole discretion; * the maturity date of the loan was extended to Feb. 8, 2013, from the original maturity date of Nov. 30, 2012; and * a prepayment penalty was added of 5% if substantially all of the loan is prepaid between 91 and 180 days prior to Feb. 8, 2013, or 2.50% if substantially all of the loan is prepaid within 90 days of Feb. 8, 2013. Medytox paid certain fees to TCA. Medytox also issued to TCA 30,000 shares of its restricted common stock as a fee for corporate advisory and investment banking services provided by TCA. In connection with Amendment No. 1, Medytox executed an Amended and Restated Revolving Promissory Note in the amount of $1,100,000. There are no material relationships between Medytox or any of its affiliates and TCA, other than with respect to the Credit Agreement and Amendment No. 1. A copy of the Amendment No.1 is available for free at: http://is.gd/mro59W On Dec. 6, 2011 Medytox entered into three agreements with Valley View Drive Associates, LLC, namely a promissory note in the original principal amount of $500,000, a convertible promissory note in the original principal amount of $500,000, and a security agreement under which Medytox and Medytox Medical Management Solutions Corp. and Medytox Institute of Laboratory Medicine, Inc., pledged certain collateral to Valley View in connection with the Note and the Promissory Note. On July 27, 2012, the parties entered into amendments of each of the Note, the Convertible Note and the Security Agreement. The maturity and the repayment terms of the principal of the Note were revised so that the first payment of $50,000 will be made on Nov. 30, 2012, with additional payments of $50,000 on the last working day of each month thereafter for nine months until Sept. 30, 2013. The maturity and the repayment terms of the principal of the Convertible Note were revised so that the first payment of $50,000 will be made on Jan. 31, 2013, with additional payments of $50,000 on the last working date of each month thereafter for nine months until Oct. 31, 2013. The Security Agreement was amended to provide that all obligations owed by Medytox and its subsidiaries to TCA pursuant to the Credit Agreement, and all liens and security interests granted to TCA pursuant to the Credit Agreement, are senior to and have first priority over any security interest granted to Valley View pursuant to the Security Agreement. Medytox filed a Certificate of Designation on July 6, 2012, with the Secretary of State of the State of Nevada to authorize the issuance of up to 5,000 shares of its Series B Non-Convertible Preferred Stock, par value $.0001 per share. About Medytox Solutions West Palm Beach, Florida-based Medytox Solutions, Inc., formerly Casino Players, Inc., is a provider of laboratory services specializing in providing blood and urine drug toxicology to physicians, clinics and rehabilitation facilities in the United States. Peter Messineo, CPA, in Palm Harbor, Florida, expressed substantial doubt about Medytox Solutions' ability to continue as a going concern following the 2011 financial results. The independent auditor noted that the Company has an accumulated deficit and negative cash flows from operations, and additionally, there is certain litigation involving a consolidated entity which is unresolved. The Company reported net income of $92,701 of $3.99 million of revenues for 2011, compared with a net loss of $327,041 on $77,591 of revenues for 2010. The Company's balance sheet at March 31, 2012, showed $3.90 million in total assets, $6.06 million in total liabilities and a $2.15 million total stockholders' deficit. MERCATOR MINERALS: Reports $22.1-Mil. Net Income in Second Quarter ------------------------------------------------------------------ Mercator Minerals Ltd. reported net income of US$22.1 million on US$61.3 million of revenue for the three months ended June 30, 2012, compared with net income of US$24.0 million on US$72.4 million of revenue for the comparable period last year. For the six months ended June 30, 2012, the Company had net income of US$1.6 million on US$126.5 million of revenue, compared with net income of US$17.8 million on US$128.3 million of revenue for the same period of 2011. The Company's balance sheet at June 30, 2012, showed US$590.0 million in total assets, US$293.2 million in total liabilities, and equity of US$296.8 million. As at June 30, 2012, the Company had an accumulated deficit of US$123.6 million (Dec. 31, 2011 - US$133.3 million) and working capital deficiency of US$52.5 million (Dec. 31, 2011 - $116.3 million). "The working capital deficiency at Dec. 31, 2011, included certain overdue accounts payable (generally outstanding more than 30 days) totaling US$20.8 million. At June 30, 2012, the overdue accounts payable totaled US$19.4 million. During 2011, the Company experienced a delay in completion of the Phase 2 expansion at Mineral Park Mine and incurred costs in excess of the planned capital project costs. This resulted in a delay in achieving the expected incremental increase in sales and resulted in an increase in overdue accounts payable. During 2012, the Company has not achieved expected metal production levels at the Mineral Park mine and has not been able to reduce the overdue accounts payable as rapidly as originally anticipated. Given current metal prices, increased levels of production, and anticipated lower operating costs, the Company projects to generate sufficient cash flow to become current with all vendors by the fourth quarter of 2012. Management has had discussions with certain vendors and has verbally agreed to suitable payment arrangements with respect to the overdue amounts. There can be no assurances the Company will be able to meet its planned operating results or that the Company's vendors will not demand repayment of the overdue amounts." "While the Company expects improved operations over the next 12 months will fund operating expenses, to become current with all vendors, repay the pre-construction facility, and meet our capital expenditure program, the Company does not expect cash flow from operations to fund all of the Company's debt servicing obligations over this period. The Company has commenced discussions with various parties to meet these debt service obligations." "These unaudited condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. However, the uncertainty with respect to the Company's ability to meet its operating objectives and settle the Company's liabilities including the overdue accounts payable casts substantial doubt about the Company's ability to continue as a going concern." A copy of the Condensed Consolidated Interim Financial Statements for the period ended June 30, 2012, is available for free at: http://is.gd/uQwPcH Based in Vancouver, B.C., Mercator Minerals Ltd. (TSX: ML) is a copper, molybdenum and silver producer with a diversified portfolio of high quality assets in the USA and Mexico. Mercator provides investors exposure to current copper, molybdenum and silver production from the large tonnage long life Mineral Park Mine in Arizona, as well as mid-term exposure to potential copper production from its El Pilar deposit in the State of Sonora in northern Mexico and longer term exposure of molybdenum and copper through the potential development of the El Creston deposit also in the State of Sonora in northern Mexico. MDU COMMUNICATIONS: Had $1.7 Million Net Loss in June 30 Quarter ---------------------------------------------------------------- MDU Communications International, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.7 million on $6.8 million of revenue for the three months ended June 30, 2012, compared with a net loss of $2.1 million on $6.8 million of revenue for the three months ended June 30, 2011. For the nine months ended June 30, 2012, the Company had a net loss of $5.6 million on $20.8 million of revenue, compared with a net loss of $5.5 million on $20.3 million of revenue for the nine months ended June 30, 2011. The Company's balance sheet at June 30, 2012, showed $21.2 million in total assets, $33.2 million in total liabilities, and a stockholders' deficit of $12.0 million. According to the regulatory filing, based on its current projections, the Company does not expect its available cash and remaining Credit Facility as of June 30, 2012, to be sufficient to cover its estimated liquidity needs for the next 12 months. The Company also does not expect its operations to generate positive cash flows during the next 12 months. "Without additional funds or financing sources, we forecast that our cash and remaining Credit Facility would be depleted sometime in our first or second fiscal quarter of 2013. Thus, we will be required to raise additional capital in the near term in order to continue operations. Further, we also need to raise additional capital over the long-term to fully implement our business plans. However, our ability to raise sufficient additional capital in the near and long-term on acceptable terms, or at all, remains uncertain. Additionally, unless we are able to refinance our $30 million Credit Facility, which is uncertain, we will be facing maturity and repayment on June 30, 2013." "Our ability to continue to operate our business is substantially dependent on our ability to raise additional capital in the near term. We are actively pursuing a number of possible funding options, but there can be no assurance that these efforts will be successful. Our expected continued losses from operations and the uncertainty about our ability to obtain sufficient additional capital raise substantial doubt about our ability to continue as a going concern.: A copy of the Form 10-Q is available for free at: http://is.gd/D9OP28 Totowa, New Jersey-based MDU Communications International, Inc., is a national provider of digital satellite television, high-speed Internet, digital voice and other information and communication services to residents living in the United States multi-dwelling unit ("MDU") market - estimated to include 26 million residences. MIT HOLDING: Delays Form 10-Q for Second Quarter for Review ----------------------------------------------------------- MIT Holding, Inc., notified the U.S. Securities and Exchange Commission it will be delayed in filing its Form 10-Q for the period ended June 30, 2012, because the review of the Company's financial statements has not been completed. About MIT Holding Savannah, Ga.-based MIT Holding, Inc. (OTC BB: MITD) -- http://www.mitholdinginc.com/-- distributes wholesale pharmaceuticals, administers intravenous infusions, operates an ambulatory center where therapies are administered and sells and rents home medical equipment. The Company reported a net loss of $1.32 million in 2011, compared with net income of $78,832 in 2010. The Company said in the Form 10-K that its inability to achieve sufficient increases on its revenues has created a liquidity challenge that raises doubt about the Company's ability to continue as a going concern. MERITAS SCHOOLS: Moody's Affirms 'B2' CFR; Outlook Negative ----------------------------------------------------------- Moody's Investors Service affirmed Meritas Schools Holdings, LLC's B2 corporate family and probability of default ratings. Moody's also affirmed the Ba3 rating on the first lien senior secured credit facilities and the B3 rating on the second lien term loan. The ratings outlook was revised to negative from stable. The outlook revision reflects discretionary capital spending that is materially higher than Moody's expected at the time of the initial rating in July 2011. This level of spending has contributed to weak coverage of interest expense (on an EBITDA less capex basis) and negative free cash flow. In Moody's opinion, this higher level of capital spending reduces the company's financial flexibility and increases vulnerability to weakening economic conditions. The cash balance, albeit still large, is declining at a faster rate than Moody's anticipated due to high capital spending. The following ratings were affirmed: Corporate family rating at B2 Probability of default rating at B2 $10 million first lien senior secured revolving credit facility due 2016 at Ba3. Point estimate revised to LGD2, 25% from LGD2, 23% $119 million first lien senior secured senior loan due 2017 at Ba3. Point estimate revised to LGD2, 25% from LGD2, 23% $65 million second lien senior secured term loan due 2018 at B3. Point estimate revised to LGD5, 77% from LGD5, 70% Ratings Rationale Moody's originally anticipated annual capital spending in the range of approximately $11 million. However, actual capital spending is almost triple this amount. As a result, EBITDA less capex coverage of interest expense is approximately 0.7 times (Moody's adjusted and including maintenance and investment capex) and free cash flow negative. Moody's had expected coverage to exceed 1.5 times and free cash as a percentage of debt in the mid- single digit range for the fiscal-year ended June 30, 2012. Moreover, Moody's expects discretionary capital spending to remain at elevated levels at least through fiscal 2013. The rating, however, also considers that the bulk of this spending is for capacity expansion and facilities improvement that should support enrollment growth and tuition increases over time. The rating is also supported by Moody's expectation that earnings growth combined with mandatory debt reduction will result in debt to EBITDA in the range of 5.5 to 6.0 times over the next 12 to 18 months. Debt to EBITDA was initially 7.0 times at the time the initial rating was assigned. The ratings could be downgraded if unfavorable enrollment trends or higher than expected expenses constrains EBITDA growth such that debt to EBITDA does not decline below 6.0 times and/or EBITDA less maintenance capex to interest is less than 1.5 times. While the rating contemplates negative free cash flow over the next 12 to 18 months, sustained negative cash flow that materially erodes the cash balance could result in a ratings downgrade. Moody's could also downgrade the ratings if the company fails to maintain adequate cushion under financial covenants. Debt financed acquisition activity could also pressure the ratings. Moody's could revise the ratings outlook to stable if Meritas continues to delever through earnings growth and debt reduction such that debt to EBITDA approaches 5.0 times, EBITDA less maintenance capex to interest approaches 2.0 times while maintaining a large unrestricted cash balance. The ratings could be upgraded if Meritas increases scale and diversification and organically grow its revenue and earnings through price increases and enrollment growth such that debt to EBITDA is sustained below 4.5 times and free cash flow is positive. The principal methodology used in rating Meritas Schools Holdings, LLC was the Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Northbrook, Illinois, Meritas Schools Holdings, LLC, though its subsidiaries, operates a world-wide network of college preparatory schools. MF GLOBAL: Trustee to Work With Customers Suing Corzine ------------------------------------------------------- American Bankruptcy Institute reports that James Giddens, the trustee liquidating MF Global Inc., said that he planned to work with customers in a lawsuit against Jon Corzine and other former brokerage executives. About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provided access to more than 70 exchanges around the world. The firm was also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. Louis J. Freeh was named the Chapter 11 Trustee for the bankruptcy cases of MF Global Holdings Ltd. and its affiliates. The Chapter 11 Trustee tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has retained Capstone Advisory Group LLC as financial advisor. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. MF GLOBAL: Corzine, Execs Likely to Escape Criminal Charges ----------------------------------------------------------- Ian Thoms at Bankruptcy Law360 reports that though they misplaced about $1.6 billion in customer money while driving their brokerage into the ground, Jon Corzine and other top MF Global Inc. executives will likely escape criminal charges, a black eye for a U.S. Department of Justice already under fire for declining to prosecute major Wall Street players. Having investigated the firm's collapse for the past 10 months, the Justice Department is nearing a conclusion that the money went missing because of MF Global's weak internal controls, Bankruptcy Law360 relates. About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provided access to more than 70 exchanges around the world. The firm was also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. Louis J. Freeh was named the Chapter 11 Trustee for the bankruptcy cases of MF Global Holdings Ltd. and its affiliates. The Chapter 11 Trustee tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has retained Capstone Advisory Group LLC as financial advisor. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. MMRGLOBAL INC: Robert Lorsch Discloses 20% Equity Stake ------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Robert H. Lorsch disclosed that, as of July 30, 2012, he beneficially owns 100,486,906 shares of common stock of MMRGlobal, Inc., representing 20% of the shares outstanding. The RHL Group, Inc., beneficially owns 80,238,152 common shares. Mr. Lorsch is the Chief Executive Officer of The RHL Group and has a 100% ownership interest in The RHL Group. Mr. Lorsch previously reported beneficial ownership of 69,579,274 common shares or a 17.3% equity stake as of April 19, 2012. A copy of the amended filing is available for free at: http://is.gd/uaJEGH About MMRGlobal Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, Rose, Snyder & Jacobs LLP, in Encino, California, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the years ended Dec. 31, 2011, and 2010. The Company reported a net loss of $8.88 million in 2011, compared with a net loss of $17.90 million in 2010. The Company reported a net loss of $10.3 million in 2009. The Company's balance sheet at June 30, 2012, showed $2.03 million in total assets, $8.46 million in total liabilities, and a $6.43 million total stockholders' deficit. MMRGLOBAL INC: Incurs $1.4 Million Net Loss in Second Quarter ------------------------------------------------------------- MMRGlobal, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.37 million on $198,779 of total revenues for the three months ended June 30, 2012, compared with a net loss of $2.37 million on $165,637 of total revenues for the same period a year ago. The Company reported a net loss of $2.95 million on $371,577 of total revenues for the six months ended June 30, 2012, compared with a net loss of $4.10 million on $737,618 of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $2.03 million in total assets, $8.46 million in total liabilities and a $6.43 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/Zv0mMF About MMRGlobal Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, Rose, Snyder & Jacobs LLP, in Encino, California, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the years ended Dec. 31, 2011, and 2010. The Company reported a net loss of $8.88 million in 2011, compared with a net loss of $17.90 million in 2010. The Company reported a net loss of $10.3 million in 2009. MORGANS HOTEL: Inks 20-Year Management Pact for Delano Moscow ------------------------------------------------------------- Morgans Hotel Group plans to extend their signature luxury brand into Russia with the opening of Delano Moscow, the third international Delano-branded property, following the opening of Delano Marrakech slated for September 2012, and Delano Cesme scheduled to open in 2015. With Delano Moscow, Morgans Hotel Group is positioned to deliver the unique Delano experience, defined by impeccable style and unparalleled standards of service, to the thriving international gateway city in 2015. This announcement is the latest progression in the New York-based hospitality management Company's extensive international growth plan for its Delano luxury brand, focused on entering key markets around the world. Morgans Hotel Group's Delano first opened its doors in 1995 in Miami's trendy South Beach and quickly became a must-visit destination, pioneering a new industry standard as a next generation chic urban resort. Delano Moscow will be situated in the heart of Moscow's new state- of-the-art International Business Center, also referred to as Moscow-City, Russia's first ever mixed-use space, combining high- end residences, offices and retail in one impressive complex. The Moscow Government first conceived of the Moscow City project in 1992, and an estimated 500,000 - 600,000 people will be visiting, living or working in the awe-inspiring new luxury development at any given time. Morgans Hotel Group's newest Delano will be part of Capital Group's OKO project within Moscow City, a new development that will offer premium spaces designed for luxury living, business and entertainment. An example of innovative urbanism presented by American architectural bureau SOM (Skidmore, Owings and Merrill), OKO will also feature an 85-story skyscraper and a 49-story office tower that soar from a 7-story single transparent crystalline structure at the base of the complex. Plans for Delano Moscow include 160 beautifully appointed guest rooms, extensive fine dining and nightlife outlets and top-of-the- line hotel facilities and guest amenities. The world-class boutique resort will provide an upscale haven of luxury within the vibrant Moscow-City development, appealing to the sensibilities of tastemakers around the world. Delano has become synonymous with style and sophistication and the new Moscow property will bring these ideals to a captivating new urban center. "With the introduction of each new Delano property, we bring to life the ethos we created in South Beach, while uniquely blending our vision with the markets we enter. Moscow is an exciting city and we could not have found a better partner to align with than Capital Group to further extend the Delano brand," says Michael Gross, CEO of Morgans Hotel Group. Delano Moscow commences a business partnership between Capital Group and Morgans Hotel Group, which have entered into a 20-year management agreement for the property. Founded in 1993, Capital Group is one of Russia's leading development companies, whose previous projects have received awards from The Russian Academy of Architecture and Construction Sciences, the Moscow Government and various international architectural exhibitions. On signing the deal, Vladislav Doronin, Chairman of Board of Directors, Capital Group, said: "Moscow City has become a financial center of international standard. It comprises mixed- use skyscraper complexes totaling 4.5 million square meters that have become headquarters for major international companies. A modern transport infrastructure has been developed within the business district, which includes two operating metro stations and a high-speed railway currently under construction that would connect Moscow City with international airports. Thus, it is obvious that Moscow City needs high-quality hotel service, and Delano Moscow would become the first hotel to open here. I have no doubt it would become the best project to meet the needs of the tenants and the guests of the business center." With the addition of Delano Moscow, Morgans Hotel Group now has signed management agreements for ten hotels that are slated to open over the next three-years, starting next month with the scheduled opening of Delano Marrakech. In aggregate, these new hotels will nearly double the size of Morgans Hotel Group's portfolio from thirteen hotels comprising 3,400 rooms across three countries, to twenty-three hotels comprising 6,300 rooms across seven countries. All of these new deals expand Morgans Hotel Group's three powerful and complementary brands Delano, Mondrian and Hudson in key gateway cities and resort destinations. Morgans Hotel Group currently has properties in New York, Miami, London, Los Angeles, San Francisco, Boston and Playa del Carmen, Mexico. Under the Delano Moscow agreement, the Company has agreed to contribute an aggregate of $10.0 million in key money, with $3.0 million contributed upon the signing of the management agreement and the remaining $7.0 million to be contributed prior to the hotel opening. The initial $3.0 million key money contribution is refundable by the hotel owner if Delano Moscow does not open by the predetermined opening date. Additionally, the Company has provided a cash flow guarantee to the owner if the hotel does not attain specified levels of net operating profits set forth in the management agreement up to certain maximum amounts for the first four years of the contract. Those guarantee fundings, if any, are recoverable out of future hotel cash flows and under certain other conditions. About Morgans Hotel Group Based in New York, Morgans Hotel Group Co. (Nasdaq: MHGC) -- http://www.morganshotelgroup.com/-- is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector. Morgans Hotel Group operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles and South Beach, Clift in San Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group also manages hotels in Isla Verde, Puerto Rico and Playa del Carmen, Mexico. Morgans Hotel Group has other property transactions in various stages of completion, including projects in SoHo, New York and Palm Springs, California. The Company reported a net loss of $87.95 million in 2011, a net loss of $83.64 million in 2010, and a net loss of $101.60 million in 2009. The Company's balance sheet at June 30, 2012, showed $545.86 million in total assets, $655.93 million in total liabilities, $6.12 million in redeemable noncontrolling interest, and a $116.19 million total deficit. MUNICIPAL CORRECTIONS: Inducted Into Chapter 11 in Las Vegas ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a privately operated prison in Georgia finds itself in Chapter 11 reorganization in Las Vegas, at least for the next month. The prison was expanded with proceeds from two issues of municipal bonds on which $54 million is owing. According to the report, although the prison had 1,200 beds, the census averaging 700 to 800 covered only operating expenses, the indenture trustee said in a court filing. Both the bonds and real estate taxes were in default. Irwin County, Georgia, where the prison is located, scheduled a foreclosure auction in view of $1.8 million in delinquent taxes. The report relates that the indenture trustee and two bondholders filed an involuntary Chapter 7 petition in Feb. in Las Vegas. The prison's operator, Terry O'Brien, admitted that Las Vegas is a technically correct venue because that's the state where his company is located. Mr. O'Brien's company operates the prison under lease from the county, which is the owner. The report notes that Mr. O'Brien didn't oppose being in bankruptcy. Instead, he filed papers seeking to have the bankruptcy moved to Georgia for the parties' convenience. The Las Vegas bankruptcy judge went ahead and put the prison operator officially into a Chapter 11 reorganization last week. The Bloomberg report disclosed that the motion for moving the case to Georgia is scheduled for Sept. 21. The bondholders are allowing the prison operator to use cash income pledged as part of the security for the bonds. Hamlin Capital, Oppenheimer Rochester and UMB, N.A. -- owed an aggregate $90 million on a bond debt -- filed an involuntary Chapter 11 petition for Municipal Corrections, LLC (Bankr. D. Nev. Case No. 12-12253) on Feb. 29, 2012, in Las Vegas, Nevada. Jon T. Pearson, Esq., at Ballard Spahr LLP, in Las Vegas, serves as counsel to the petitioners. NEDAK ETHANOL: Delays Q2 Form 10-Q Due to Financial Woes -------------------------------------------------------- NEDAK Ethanol, LLC, notified the U.S. Securities and Exchange Commission of the late filing of its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2012. The Company announced a temporary suspension of production at its ethanol plant in response to the adverse economic and market conditions impacting the ethanol industry. The Company is in default under its loan agreements with both its senior lender, AgCountry Farm Credit Services, FLCA, and its tax increment financing lender, Arbor Bank. The Company has subsequently received notices of continuing default from both the Senior Lender and the TIF Lender. The Senior Lender has accelerated the repayment of all amounts due under the loan agreement, the outstanding obligations are accruing interest at the default rate and the Senior Lender has informed the Company that it intends to exercise its remedies under the loan agreement and take such actions as it deems necessary or desirable to protect its interest in the collateral. The TIF Lender has demanded the immediate cure of all existing defaults and the full and complete performance of the Company's obligations under the loan documents and has advised the Company that it intends to exercise its remedies under the loan documents. As a result of the halt in production at the Company's plant, the Company has limited internal resources. The Company has devoted, and continues to devote, its limited internal resources to the actions required to complete the temporary shutdown of plant operations as well as to discussions with the Senior Lender, the TIF Lender and other creditors in light of the existing defaults, the ongoing adverse market conditions and the liquidity issues facing the Company. The Company continues to explore various strategic and financial options to address its current liquidity issues. Therefore, given the Company's thin staffing and limited financial resources, it was unable to file the Form 10-Q in the time prescribed without unreasonable effort and expense and the Company expects that it will not be able to file the Form 10-Q within the five-day extension permitted by the rules of the SEC. About NEDAK Ethanol Atkinson, Neb.-based NEDAK Ethanol, LLC -- http://www.nedakethanol.com/-- operates a 44 million gallon per year ethanol plant in Atkinson, Nebraska, and produces and sells fuel ethanol and distillers grains, a co-product of the ethanol production process. Sales of ethanol and distillers grains began in January 2009. NEDAK Ethanol reported a net loss of $781,940 on $152.11 million of revenue in 2011, compared with a net loss of $2.08 million on $94.77 million of revenue in 2010. The Company's balance sheet at March 31, 2012, showed $73.42 million in total assets, $33.68 million in total liabilities, $10.80 million in preferred units Class B, and $28.93 million in total members' equity. Amends Agreement with AgCountry In February 2007, the Company entered into a master credit agreement with AgCountry Farm Credit Services FCA regarding a senior secured credit facility. As of Dec. 31, 2010, and throughout 2011, the Company was in violation of several loan covenants required under the original credit agreement and therefore, the Company was in default under the credit agreement. However, the Company entered into a forbearance agreement with AgCountry which remained effective until June 30, 2011. This default resulted in all debt under the original credit agreement being classified as current liabilities effective as of Dec. 31, 2010. The loan covenants under the original credit agreement included requirements for minimum working capital of $6,000,000, minimum current ratio of 1.20:1.00, minimum tangible net worth of $41,000,000, minimum owners' equity ratio of 50%, and a minimum fixed charge coverage ratio of 1.25:1.00, and also included restrictions on distributions and capital expenditures. On Dec. 31, 2011, the Company and AgCountry entered into an amended and restated master credit agreement pursuant to which the parties agreed to restructure and re-document the loans and other credit facilities provided by AgCountry. Under the amended agreement, the Company is required to make level monthly principal payments of $356,164 through Feb. 1, 2018. Beginning on Sept. 30, 2012, and the last day of the first, second, and third quarters thereafter, the Senior Lender will make a 100% cash flow sweep of the Company's operating cash balances in excess of $3,600,000 to be applied to the principal balance. In addition, the Company is required to make monthly interest payments at the one month LIBOR plus 5.5%, but not less than 6.0%. The interest rate was 6.0% as of Dec. 31, 2011. In addition to the monthly scheduled payments, the Company made a special principal payment in the amount of $7,105,272 on Dec. 31, 2011. As of Dec. 31, 2011, and 2010, the Company had $26,000,000 and $38,026,321 outstanding on the loan, respectively. NEPHROS INC: Had $754,000 Net Loss in Second Quarter ---------------------------------------------------- Nephros, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $754,000 on $302,000 of revenues for the three months ended June 30, 2012, compared with a net loss of $602,000 on $637,000 of revenues for the corresponding period last year. For the six months ended June 30, 2012, the Company had a net loss of $1.3 million on $835,000 of revenues, compared with a net loss of $1.3 million on $1.3 million of revenues for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $4.3 million in total assets, $3.4 million in total liabilities, and stockholders' equity of $897,000. "The Company has incurred significant losses in operations in each quarter since inception. For the six months ended June 30, 2012, and 2011, the Company has incurred net losses of $1,311,000 and $1,309,000, respectively. To become profitable, the Company must increase revenue substantially and achieve and maintain positive gross and operating margins. If the Company is not able to increase revenue and gross and operating margins sufficiently to achieve profitability, its results of operations and financial condition will be materially and adversely affected." A copy of the Form 10-Q is available for free at: http://is.gd/FaXZun Headquartered in River Edge, N.J., Nephros, Inc. (OTC bb: NEPH) -- http://www.nephros.com/-- is a medical device company developing and marketing filtration products for therapeutic applications, infection control, and water purification. * * * As reported in the TCR on March 29, 2012, Rothstein Kass, in Roseland, N.J., expressed substantial doubt about Nephros, Inc.'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 incurred negative cash flow from operations and net losses since inception. NETWORK CN: Reports $1.2 Million Net Income in Second Quarter ------------------------------------------------------------- Network CN Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $1.15 million on $536,208 of advertising services revenues for the three months ended June 30, 2012, compared with a net loss of $454,798 on $323,071 of advertising services revenues for the same period a year ago. The Company reported net income of $534,947 on $942,983 of advertising services revenues for the six months ended June 30, 2012, compared with a net loss of $1.27 million on $719,774 of advertising services revenues for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $1.03 million in total assets, $3.72 million in total liabilities, and a $2.69 million total stockholders deficit. A copy of the Form 10-Q is available for free at: http://is.gd/NWy2fU About Network CN Causeway, Hong Kong-based Network CN Inc. operates in one single business segment: Media Network, providing out-of home advertising services. As reported in the TCR on April 18, 2012, Baker Tilly Hong Kong Limited, in Hong Kong SAR, expressed substantial doubt about Network CN'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 incurred net losses of $2,102,548, $2,603,384 and $37,383,361 for the years ended Dec. 31, 2011, 2010, and 2009, respectively. "Additionally, the Company used net cash in operating activities of $388,278, $1,552,403 and $5,428,273 for the years ended Dec. 31, 2011, 2010, and 2009, respectively. "As of Dec. 31, 2011, and 2010, the Company recorded stockholders' deficit of $5,056,418 and $3,524,536 respectively. NEW INVESTMENTS: Case Summary & 7 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: New Investments Inc 12233 NE Totem Lake Way Kirkland, WA 98034 Bankruptcy Case No.: 12-18500 Chapter 11 Petition Date: August 16, 2012 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Karen A. Overstreet Debtor's Counsel: Darrel B. Carter, Esq. CBG LAW GROUP PLLC 11100 NE 8th St Ste 380 Bellevue, WA 98004 Tel: (425) 283-0432 E-mail: Darrel@cbglaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A copy of the Company's list of its seven largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb12-18500.pdf The petition was signed by Sheraly Aziz, president. NEW PEOPLES: Tier 1 Leverage Ratio Below 4% Requirement ------------------------------------------------------- New Peoples Bankshares, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2.5 million on $6.7 million of net interest income for the three months ended June 30, 2012, compared with a net loss of $1.7 million on $8.1 million of net interest income for the same period a year earlier. For the six months ended June 30, 2012, the Company had a net loss of $5.1 million on $13.8 million of net interest income, compared with a net loss of $1.1 million on $16.3 million of net interest income for the corresponding period in 2011. The Company's balance sheet at June 30, 2012, showed $725.6 million in total assets, $701.9 million in total liabilities, and stockholders' equity of $23.7 million. According to the regulatory filing, the Company and the Bank are subject to various capital requirements administered by federal banking agencies. "The Bank was well capitalized as of June 30, 2012, as defined by the capital guidelines of bank regulations, however, the Company continued to be below the minimum capital requirements as a result of the Tier 1 leverage ratio decreasing to 3.72%, which was below the minimum requirement of 4.00%. Subject to the conversion of the director notes, we expect to return to well-capitalized status at the holding company level in 2012. The Company's capital as a percentage of total assets was 3.27% at June 30, 2012, compared to 3.70% at Dec. 31, 2011." A copy of the Form 10-Q is available for free at: http://is.gd/Flcrxa New Peoples Bankshares, Inc., is a Virginia bank holding company headquartered in Honaker, Virginia. New Peoples subsidiaries include: New Peoples Bank, Inc., a Virginia banking corporation (the Bank) and NPB Web Services, Inc., a web design and hosting company (NPB Web). The Bank is headquartered in Honaker, Virginia and operates 27 full service offices in the southwestern Virginia counties of Russell, Scott, Washington, Tazewell, Buchanan, Dickenson, Wise, Lee, Smyth, and Bland; Mercer County in southern West Virginia and the eastern Tennessee counties of Sullivan and Washington. NORTHCORE TECHNOLOGIES: Incurs C$556,000 Loss in Second Quarter --------------------------------------------------------------- Northcore Technologies Inc. reported a loss and comprehensive loss of C$556,000 on C$415,000 of revenue for the three months ended June 30, 2012, compared with a loss and comprehensive loss of C$1.88 million on C$187,000 of revenue for the same period a year ago. The Company reported a loss and comprehensive loss of C$1.29 million on C$645,000 of revenue for the six months ended June 30, 2012, compared with a loss and comprehensive loss of C$2.45 million on C$370,000 of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed C$3.49 million in total assets, C$852,000 in total liabilities and C$2.64 million in shareholders' equity. "We had promised our shareholders that they would soon see the impact of our acquisition and Social Commerce strategies. I am pleased to point to our second quarter financial results in this regard," said Amit Monga, CEO of Northcore Technologies. "While we still have challenges to overcome, we have made important, sequential progress and have executed on our stated objectives. As we progress, portfolio companies Kuklamoo and Envision will contribute significantly to our momentum and as always, the Company remains committed to expanding our suite of IP holdings. We have also followed through on our commitment to "tell the story" more aggressively and have retained a professional investor relations firm to help inform the public markets of our achievements and progress. From our perspective, we have a strong foundation to build lasting shareholder value." A copy of the Form 6-K is available for free at: http://is.gd/VvjCOb About Northcore Toronto, Ontario-based Northcore Technologies Inc. (TSX: NTI; OTC BB: NTLNF) -- http://www.northcore.com/-- provides a Working Capital Engine(TM) that helps organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to a growing number of customers in a variety of sectors including financial services, manufacturing, oil and gas and government. Northcore owns 50% of GE Asset Manager, LLC, a joint business venture with GE. Together, the companies work with leading organizations around the world to help them liberate more capital value from their assets. The Company reported a loss and comprehensive loss of C$3.93 million in 2011, compared with a loss and comprehensive loss of C$3.03 million in 2010. NUTRACEA: Had $630,000 Net Loss in Second Quarter ------------------------------------------------- NutraCea filed its quarterly report on Form 10-Q, reporting a net loss of $630,000 on $9.7 million of revenues for the three months ended June 30, 2012, compared with a net loss of $32,000 on $10.5 million of revenues for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $10.0 million on $19.5 million of revenues, compared with a net loss of $4.1 million on $19.2 million of revenues for the same period of 2011. The decline of $5.9 million between periods was primarily due to the $1.5 million financing expense and the $3.0 million loss on extinguishment recognized in connection with the January 2012 issuance of the subordinated convertible notes, senior convertible debenture and related warrants. The Company's balance sheet at June 30, 2012, showed $48.0 million in total assets, $35.3 million in total liabilities, $8.3 million of redeemable noncontrolling interest in Nutra SA, and stockholders' equity of $4.4 million. As reported in the TCR on April 5, 2012, BDO USA, LLP, in Phoenix, Arizona, expressed substantial doubt about NutraCea'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 suffered recurring losses from operations resulting in an accumulated deficit of $194.9 million. "Although the Company emerged from bankruptcy in November 2010, there continues to be substantial doubt about its ability to continue as a going concern." A copy of the Form 10-Q is available for free at: http://is.gd/HWvhF3 Scottsdale, Ariz.-based NutraCea. a California corporation, is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. NUVILEX INC: Incurs $1.8 Million Net Loss in Fiscal 2012 -------------------------------------------------------- Nuvilex, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.89 million on $66,558 of total revenue for the year ended April 30, 2012, compared with a net loss of $1.39 million on $125,997 of total revenue during the prior year. The Company's balance sheet at April 30, 2012, showed $2.08 million in total assets, $3.78 million in total liabilities, $580,000 in preferred stock, and a $2.27 million total stockholders' deficit. Robison, Hill & Co., issued a "going concern" qualification on the consolidated financial statements for the year ended April 30, 2012, citing recurring losses from operations which raises substantial doubt about the Company's ability to continue as a going concern A copy of the Form 10-K is available for free at: http://is.gd/LpSkjY About Nuvilex Inc. Silver Spring, Md.-based Nuvilex, Inc., Nuvilex, Inc. operates independently and through wholly-owned subsidiaries. The Company is dedicated to bringing to market scientifically derived products designed to improve the health and well-being of those who use them. The Company's current strategy is to focus on developing and marketing products in the biotechnology arena it believes have potential for long-term corporate growth. OCTAVIAR ADMINISTRATION: Sept. 6 Hearing on Chapter 15 Petition --------------------------------------------------------------- Judge Shelley C. Chapman will hold a hearing Sept. 6 at 2:00 p.m. the petition under Chapter 15 of the U.S. Bankruptcy Code for recognition of foreign proceedings involving Octaviar Administration Pty Ltd. Australian liquidators for Octaviar Administration Pty Ltd. filed a petition for creditor protection under Chapter 15 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 12-13443) on Aug. 13, 2012, in Manhattan. The liquidators said the company didn't do business in the U.S., and they aren't aware of any U.S. creditors. But the liquidators filed a Chapter 15 petition in light of potential claims or causes of action against parties located in the United States. If the application for recognition of the Australian liquidation as "foreign main proceeding" is recognized, the liquidators will investigate these potential claims and may ultimately commence proceedings in the U.S. and/or seek to enforce a foreign judgment in the U.S. The Chapter 15 petition listed less than $100 million in assets and more than $100 million in debt. Prior to its demise, the Octaviar Group consisted of a travel and tourism business, a corporate and investment banking business, a funds management business, and as structured finance and advisory business. At it height, the Octaviar Group consisted of more than 400 companies, employed more than 3,000 employees, and had offices in Australia, New Zealand and the United Arab Emirates. The business collapsed when the company announced in January 2008 that it's separating its financial services business from its travel and tourism business, which led to shares declining from AU$3.18 at opening to AU$0.99 at closing. The decline caused an event of default with lenders under a A$150 million bride financing facility. The travel and tourism business was ultimately sold to Global Voyager Pty Limited to pay off debt. Octaviar Administration provided the treasury function for Octaviar Group. OA was placed into liquidation by the Supreme Court of Queensland in July 2009. Katherine Elizabeth Barnet and William John Fletcher, the liquidators of OA, are represented in the U.S. proceedings by Howard Seife, Esq., at Chadbourne & Parke. ONCOVISTA INNOVATIVE: Had $250,500 Net Loss in Second Quarter ------------------------------------------------------------- OncoVista Innovative Therapies, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $250,557 on $nil revenue for the three months ended June 30, 2012, compared with a net loss of $577,932 on $nil revenue for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $909,985 on $nil revenue, compared with a net loss of $1.3 million on $nil revenue for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $1.3 million in total assets, $2.3 million in total current liabilities, and a stockholders' deficit of $996,161. "As reflected in the accompanying consolidated financial statements, the Company reported a net loss of approximately $910,000, and net cash used in operations of $960,000 for the six months ended June 30, 2012, an accumulated deficit of approximately $21.2 million and total deficit of approximately $996,000 at June 30, 2012. The Company is also in default on a certain loan and related accrued interest aggregating $174,495 at June 30, 2012. Subsequent to June 30, 2012, the Company entered into a settlement agreement to satisfy the obligation in full for a one-time payment of $60,000. These factors raise substantial doubt about the Company's ability to continue as a going concern." In its report on OncoVista's financial statements for the year ended Dec. 31, 2011, GHP Horwath, P.C., in Denver, Colo., said that Company has suffered recurring losses and negative cash flows from operations that raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available for free at: http://is.gd/3Bh2OP OncoVista Innovative Therapies, Inc., is a biopharmaceutical company developing targeted anticancer therapies by utilizing tumor-associated biomarkers. The Company's product pipeline is comprised of advanced (Phase I/II) and early (Phase I) clinical- stage compounds, late preclinical drug candidates and early preclinical leads. OPTIONS MEDIA: Delays Form 10-Q for Second Quarter -------------------------------------------------- Options Media Group Holdings, Inc., was unable to file its quarterly report on Form 10-Q for the three months ended June 30, 2012, by the prescribed date of Aug. 14, 2012, without unreasonable effort or expense because its internal accountants need additional time to complete portions of the Report. The Company intends to file its Report on or prior to the prescribed extended date. About Options Media Boca Raton, Fla.-based Options Media Group Holdings, Inc., had historically been an Internet marketing company providing e-mail services to corporate customers. Additionally, Options Media has a lead generation business and disposed of its SMS text messaging delivery business. In 2010, Options Media transitioned by changing its focus to smart phones and acquiring a robust anti- texting program that prohibits people in vehicles from texting, e- mailing, and reading such communications while moving. As part of its focus on mobile software applications, Options Media has also broadened its suite of products by continuing to improve the features of its Drive Safe(TM) anti-texting software. In conjunction with this change of focus, in February 2011, Options Media sold its e-mail and SMS businesses. Options Media retains its lead generation business. The Company reported a net loss of $12.67 million in 2011, compared with a net loss of $9.86 million in 2010. The Company's balance sheet at March 31, 2012, showed $1.48 million in total assets, $8.16 million in total liabilities and a $6.68 million total stockholders' deficit. In its audit report for the 2011 results, Salberg & Company, P.A., in Boca Raton, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has a net loss available to common stockholders of $12.75 million, and net cash used in continuing operations of $3.60 million for the year ended Dec. 31, 2011, and a working capital deficit, stockholders' deficit and accumulated deficit of $4.11 million, $3.56 million and $35.5 million, respectively at Dec. 31, 2011. The Company has also discontinued certain operations. OSAGE EXPLORATION: Incurs $613,000 Net loss in Second Quarter ------------------------------------------------------------- Osage Exploration and Development, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $613,484 on $1.35 million of total operating revenues for the three months ended June 30, 2012, compared with net income of $2.76 million on $962,450 of total operating revenues for the same period a year ago. The Company reported a net loss of $157,458 on $2.71 million of total operating revenues for the six months ended June 30, 2012, compared with net income of $2.71 million on $1.60 million of total operating revenues for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $12.57 million in total assets, $4.72 million in total liabilities and $7.85 million in total stockholders' equity. Bankruptcy Warning Management of the Company has undertaken steps as part of a plan to improve operations with the goal of sustaining the Company's operations for the next 12 months and beyond. These steps include (a) assigning a portion of the Company's oil and gas leases in Logan County, Oklahoma (b) participating in drilling of wells in Logan County, Oklahoma within the next 12 months, (c) controlling overhead and expenses and (d) raising additional equity or debt. There is no assurance the Company can accomplish these steps and it is uncertain the Company will achieve profitable operations and obtain additional financing. There is no assurance additional financings will be available to the Company on satisfactory terms and conditions, if at all. If the Company is unable to continue as a going concern, the Company may elect or be required to seek protection from its creditors by filing a voluntary petition in bankruptcy or may be subject to an involuntary petition in bankruptcy. A copy of the Form 10-Q is available for free at: http://is.gd/rCCSpd About Osage Exploration Based in San Diego, California with production offices in Oklahoma City, Oklahoma, and executive offices in Bogota, Colombia, Osage Exploration and Development, Inc. (OTC BB: OEDV) -- http://www.osageexploration.com/-- is an independent exploration and production company with interests in oil and gas wells and prospects in the US and Colombia. GKM, LLP, in Encino, California, expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2011 financial results. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit as of Dec 31, 2011. PACIFIC GOLD: Incurs $1.7 Million Net Loss in Second Quarter ------------------------------------------------------------ Pacific Gold Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.76 million on $31,375 of total revenue for the three months ended June 30, 2012, compared with a net loss of $492,552 on $0 of total revenue for the same period a year ago. The Company reported a net loss of $3.14 million on $78,658 of total revenue for the six months ended June 30, 2012, compared with a net loss of $1.35 million on $0 of revenue for the same period during the previous year. The Company reported a net loss of $1.38 million in 2011, compared with a net loss of $985,278 in 2010. The Company's balance sheet at June 30, 2012, showed $1.48 million in total assets, $6.16 million in total liabilities and a $4.68 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/oqPjAy About Pacific Gold Las Vegas, Nev.-based Pacific Gold Corp. is engaged in the identification, acquisition, and development of prospects believed to have gold mineralization. Pacific Gold through its subsidiaries currently owns claims, property and leases in Nevada and Colorado. In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2011, Silberstein Ungar, PLLC, in Bingham Farms, Michigan, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred losses from operations, has negative working capital and is in need of additional capital to grow its operations so that it can become profitable. PAYMENT DATA: Delays Form 10-Q for Second Quarter ------------------------------------------------- Payment Data Systems, Inc., informed the U.S. Securities and Exchange Commission that it requires additional time to complete its quarterly report on Form 10-Q for the period ended June 30, 2012. About Payment Data Systems San Antonio, Tex.-based Payment Data Systems, Inc. provides integrated electronic payment processing services to merchants and businesses, including credit and debit card-based processing services and transaction processing via the Automated Clearinghouse Network. The Company also operates an online payment processing service for consumers under the domain name http://www.billx.com/through which consumers can pay anyone. The Company's balance sheet at March 31, 2012, showed $3.19 million in total assets, $2.42 million in total liabilities, all current, and $767,571 in total stockholders' equity. PEREGRINE FINANCIAL: CEO Pleads Not Guilty in Fraud Case -------------------------------------------------------- Jamie Santo at Bankruptcy Law360 reports that Peregrine Financial Group Inc. CEO Russell Wasendorf Sr. pled not guilty Friday to a slate of federal charges accusing him of fraudulently inflating the value of customer funds held by his now-bankrupt brokerage to the tune of tens of millions of dollars. Appearing with his public defender in federal court in Cedar Rapids, Iowa, Wasendorf pled not guilty to all 31 counts on the indictment, according to court documents, waiving a formal reading, Bankruptcy Law360 relates. About Peregrine Financial Peregrine Financial Group Inc. filed to liquidate under Chapter 7 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 12-27488) on July 10, 2012, disclosing between $500 million and $1 billion of assets, and between $100 million and $500 million of liabilities. Earlier that day, at the behest of the U.S. Commodity Futures Trading Commission, a U.S. district judge appointed a receiver and froze the firm's assets. The firm put itself into bankruptcy liquidation in Chicago later the same day. The CFTC had sued Peregrine, saying that more than $200 million of supposedly segregated customer funds had been "misappropriated." The CFTC case is U.S. Commodity Futures Trading Commission v. Peregrine Financial Group Inc., 12-cv-5383, U.S. District Court, Northern District of Illinois (Chicago). Peregrine's CEO Russell R. Wasendorf Sr. unsuccessfully attempted suicide outside a firm office in Cedar Falls, Iowa, on July 9. The bankruptcy petition was signed in his place by Russell R. Wasendorf Jr., the firm's chief operating officer. The resolution stated that Wasendorf Jr. was given a power of attorney on July 3 to exercise if Wasendorf Sr. became incapacitated. Peregrine Financial is the regulated unit of the brokerage PFGBest. At a quickly-convened hearing on July 13, the bankruptcy judge authorized the Chapter 7 trustee to operate Peregrine's business on a "limited basis" through Sept. 13. PINNACLE FOODS: Moody's Rates $450 Million Term Loan F 'Ba3' ------------------------------------------------------------ Moody's Investors Service assigned a Ba3 rating to a new six-year $450 million term loan ("Term Loan F") due 2018 being offered by Pinnacle Foods Finance LLC. Moody's also affirmed the company's other ratings, including its B2 Corporate Family Rating, B2 Probability of Default Rating, SGL-2 Speculative Grade Liquidity rating and Caa1 senior unsecured debt rating. The rating outlook is stable. Pinnacle plans to use net proceeds from the proposed $450 million Term Loan F to retire $300 million of an existing senior secured term loan ("2014 Term Loan B") due 2014 and $150 million of 9.25% senior unsecured notes due 2015. "The transaction effectively extends the upcoming maturity of a significant portion of its senior secured debt by up to four years and refinances $150 million of high coupon unsecured debt with less costly first lien bank debt," said Brian Weddington, a Moody's Senior Credit Officer. The new Term Loan F will be priced at a spread of 350 basis points over LIBOR (with a LIBOR floor of 1.25%). This interest rate is about 200 basis points higher than on the current Term Loan B being refinanced, but significantly lower than the 9.25% interest on the 2015 notes. The combined refinancing will generate net interest cost savings of about $1million based on today's interest rates. The maturity of the new Term Loan F would be accelerated to as early as December 31, 2014 if on that date; more than $150 million of the remaining $465 million of 9.25% unsecured notes is outstanding. Thus, Moody's anticipates that Pinnacle will seek to retire at least $315 million more of these notes prior to maturity. In addition, Moody's expects that by the end of fiscal 2013 Pinnacle will also have retired the remaining $250 million balance of the 2014 Term Loan B secured debt through free cash flow. Moody's cautions that reductions of unsecured debt, either through free cash flow or the issuance of new secured debt, reduces the amount of subordinated debt cushion of secured lenders and could cause the current two-notch positive ratings gap between the Ba3 senior secured ratings and the B2 CFR to narrow. However, the retirement of either debt class through free cash flow would also likely lower the company's leverage, which over time could lead to rating upgrades. Rating Rationale Pinnacle's B2 Corporate Family Rating reflects high leverage resulting from 2009 leveraged acquisition of Birds Eye Foods ("Birds Eye") that has since declined gradually. The rating also reflects the strong brand equity of Birds Eye that has been an important platform for successful innovation, stronger profit margins and greater scale efficiencies in frozen foods. Additionally, the shelf-stable portfolio has shown signs of higher growth potential driven by increased brand support behind the Duncan Hines brand and improved business mix. Moody's long-term view of Pinnacle's financial strategy is cautious, reflective of its ownership history with private equity sponsors that have maintained high levels of financial leverage through a series of LBO's, leveraged recapitalizations, and debt- financed acquisitions. Pinnacle Foods Finance LLC: RATINGS ASSIGNED: $450 million proposed senior secured Term Loan F, due 2018 at Ba3, LGD3 - 32%; RATINGS AFFIRMED: Corporate Family Rating at B2; Probability of Default Rating at B2; $150 million senior secured revolving loan expiring April 2017 at Ba3; $550 million senior secured Term Loan B due April 2014 at Ba3; $641 million senior secured Extended Term Loan B due October 2016 at Ba3; $400 million senior secured Term Loan E due October 2018 at Ba3; $615 million senior unsecured notes due April 2015 at Caa1; $400 million senior unsecured notes due September 2017 at Caa1. LGD RATES TO BE REVISED: LGD senior secured bank credit facilities (Domestic) to LGD3 - 32% from LGD2- 29%; LGD senior unsecured debt (Domestic) to LGD5 - 86% from LGD5 - 83%. SGL RATING AFFIRMED: Speculative Grade Liquidity Rating at SGL-2. Pinnacle has only partially offset higher commodity costs through price increases, ongoing productivity improvements and exiting lower-margin private label and food service businesses. For the first half of 2012, this resulted in a decline in reported adjusted EBITDA margins to 11.1% from 14.3% reported last year and reduced EBITDA to $175 million from $207 million. Weak earnings have further hampered the pace of debt reduction that has already been slowed by spending on cost-cutting projects including $29 million to consolidate manufacturing plants. Moody's expects EBITDA margins to improve in the second half of 2012 as higher pricing and cost cutting catch up with inflation, but full-year EBITDA will likely fall short of 2011 levels. Nevertheless, Moody's expects that lower project spending and interest expense savings will support cash flows that should be sufficient to lower debt/EBITDA leverage to below 6.0 times within 12 months. An upgrade could occur if Moody's believes that Pinnacle is likely to sustain debt to EBITDA below 5.5 times. Ratings could be lowered if Pinnacle's debt to EBITDA rises above 7.0 times, if free cash flow deteriorates materially, or if the company engages in a major leveraged acquisition. Corporate Profile Headquartered in Parsippany, New Jersey, Pinnacle Foods Finance LLC - through its wholly owned operating company, Pinnacle Foods Group - manufactures and markets branded convenience food products in the US and Canada. Its brands include Birds Eye, Voila, Hungry- Man and Swanson frozen dinners, Vlasic pickles, Mrs. Paul's and Van de Kamp's frozen prepared sea food, Aunt Jemima frozen breakfasts, Log Cabin and Mrs. Butterworth's syrup and Duncan Hines cake mixes. Annual net sales are approximately $2.5 billion. Substantially all of the capital stock of Pinnacle Foods Finance LLC is owned by investment funds associated with or designated by The Blackstone Group. The principal methodology used in rating Pinnacle Foods Finance LLC was the Global Packaged Goods Industry Methodology, which can be found at www.moodys.com in the Research & Ratings directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating Pinnacle Foods Finance LLC can also be found in the Rating Methodologies subdirectory. The principal methodology used in rating Pinnacle Foods Finance LLC was the Global Packaged Goods Industry Methodology published in July 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. PMI GROUP: Seeks Extension of Exclusivity Period to Oct. 19 ----------------------------------------------------------- BankruptcyData.com reports that the PMI Group filed with the U.S. Bankruptcy Court a motion to extend for the third time the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including Oct. 19, 2012 and Dec. 17, 2012, respectively. The Court scheduled a Sept. 24, 2012 hearing on the matter. About The PMI Group Del.-based The PMI Group, Inc., is an insurance holding company whose stock had, until Oct. 21, 2011, been publicly-traded on the New York Stock Exchange. Through its principal regulated subsidiary, PMI Mortgage Insurance Co., and its affiliated companies, the Debtor provides residential mortgage insurance in the United States. The PMI Group filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-13730) on Nov. 23, 2011. In its schedules, the Debtor disclosed $167,963,354 in assets and $770,362,195 in liabilities. Stephen Smith signed the petition as chairman, chief executive officer, president and chief operating officer. The Debtor said in the filing that it does not have the financial resources to pay the outstanding principal amount of the 4.50% Convertible Senior Notes, 6.000% Senior Notes and the 6.625% Senior Notes if those amounts were to become due and payable. The Debtor is represented by James L. Patton, Esq., Pauline K. Morgan, Esq., Kara Hammond Coyle, Esq., and Joseph M. Barry, Esq., at Young Conaway Stargatt & Taylor LLP. The Official Committee of Unsecured Creditors appointed in the case retained Morrison & Foerster LLP and Womble Carlyle Sandridge & Rice, LLP, as bankruptcy co-counsel. Peter J. Solomon Company serves as the Committee's financial advisor. POINT BLANK: Court Approves Restructuring Services From Deloitte ---------------------------------------------------------------- Point Blank Solutions, Inc. obtained approval this month from the U.S. Bankruptcy Court to employ Deloitte Financial Advisory Services LLP to provide restructuring services, nunc pro tunc to April 27, 2012. On the Petition Date, the Debtors filed an application seeking authority to retain and employ CRG Partners Group LLC to provide restructuring services and designate T. Scott Avila as chief restructuring officer. CRG was retained to provide certain restructuring services which included such business and restructuring services as CRG and the Debtors deemed appropriate and feasible in order to manage and advise the Debtors in the course of the Chapter 11 Cases. On April 27, 2012, CRG sold substantially all of its assets to Deloitte FAS pursuant to an asset purchase agreement. CRG sold certain of its bankruptcy and reorganization consulting services assets to Deloitte FAS and assigned to Deloitte FAS CRG's interests in certain of CRG's bankruptcy and reorganization consulting engagement letters, including the CRG Engagement Letter. As the needs of the Debtors have required uninterrupted services, Deloitte FAS began providing the restructuring services for the Debtors on April 27. The personnel comprising the CRO engagement team for the Debtors in the Chapter 11 cases have remained largely unchanged since the closing of the Asset Purchase Agreement. However, since the closing of the Asset Purchase Agreement, such personnel are now personnel of Deloitte FAS. Additionally, Mr. Avila, who has been serving as the Debtors' chief restructuring officer, is now a principal of Deloitte FAS. The firm will, among other things, provide these services: (i) post-closing matters relating to the 363 Sale, (ii) pursuit of various causes of action, including preparation and commencement of over 40 avoidance actions under chapter 5 of the Bankruptcy Code, (iii) review of the pool of claims filed against the Debtors, including preparation of objections to certain claims, (iv) preparation of monthly operating reports for the Debtors, and (v) other general estate administrative activities. The firm's rates are: Professional Hourly Rates ------------ ------------ T. Scott Avila $675 Sheon Karol $575 Tom ODonoghue $500 Gary Lembo $475 Allen Soong $450 Cooper Crouse $525 Jeremy Bailey $450 Peter Richter $450 Steven List $450 Craig Boucher $450 Dan Dixon $450 Jeremy Bailey $450 Todd Michalik $425 Sejal Kelly $425 David Hsu $395 Sugi Hadiwijaya $395 Chris Brokmeier $375 Matthew Farrell $435 Eric Yates $325 Admin $200 Deloitte FAS will also seek reimbursement for all necessary and reasonable out-of-pocket expenses. About Point Blank Headquartered in Pompano Beach, Florida, Point Blank Solutions, Inc. -- http://www.pointblanksolutionsinc.com/-- designs and produces body armor systems for the U.S. Military, Government and law enforcement agencies, as well as select international markets. The Company maintains facilities in Pompano Beach, Florida, and Jacksboro, Tennessee. The Company's former chief executive officer and chief operating officer were convicted in September 2010 of orchestrating a $185 million fraud. Point Blank Solutions, formerly DHB Industries, filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-11255) on April 14, 2010. Laura Davis Jones, Esq., Alan J. Kornfeld, Esq., David M. Bertenthal, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as bankruptcy counsel to the Debtor. Olshan Grundman Frome Rosenweig & Wolosky LLP serves as corporate counsel. Epiq Bankruptcy Solutions serves as claims and notice agent. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Equity Security Holders in the case. Ian Connor Bifferato, Esq., and Thomas F. Driscoll III, Esq., at Bifferato LLC; and Carmen H. Lonstein, Esq., Andrew P.R. McDermott, Esq., and Lawrence P. Vonckx, Esq., at Baker & McKenzie LLP, serve as counsel for the Official Committee of Equity Security Holders. Robert M. Hirsh, Esq., and George P. Angelich, Esq., at Arent Fox LLP, serve as counsel to the Creditors Committee, and Frederick B. Rosner, Esq., and Brian L. Arban, Esq., at the Rosner Law Group LLC, serve as co-counsel. POLY SHIELD: Had $221,500 Net Loss in Second Quarter ---------------------------------------------------- Poly Shield Technologies Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $221,553 on ($692) of royalty income for the three months ended June 30, 2012, compared with net income of $15,722 on $12,007 of royalty income for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $245,225 on $5,477 of royalty income, compared with net income of $8,248 on $28,240 of royalty income for the same period of 2011. Loss before other items was $138,002 during the six months ended June 30, 2012, compared to loss before other items of $25,667 during the corresponding period in 2011. Royalty revenue decreased by $22,763 or 62% from $28,240 for the six months ended June 30, 2011, to $5,477 for the six months ended June 30, 2012. The 81% decrease in revenue during the six months ended June 30, 2012, was primarily due to a decrease in the royalty revenue earned in British pounds and an over accrual of revenues in the first quarter for the months of February and March. "We expect our revenue to increase with our acquisition of the License to sell the Shield Products. However, we do not currently have any sales or revenue history with respect to the Shield Products or the flouropolymer product industry. As such, there is no assurance that our business efforts in this area will prove to be successful." During the three months ended June 30, 2012, revenue decreased from $12,007 to negative revenue of $692. This decrease was primarily due to an over accrual of revenues in the first quarter for the months of February and March. Balance Sheet The Company's balance sheet at June 30, 2012, showed $1.2 million in total assets, $688,675 in total current liabilities, and stockholders' equity of $472,975. Accumulated Deficit was $1,762,438 at June 30, 2012 The Company said: "As of June 30, 2012, the Company has not achieved profitable operations and has accumulated a deficit of $1,762,438. Continuation as a going concern is dependent upon the ability of the Company to collect revenues or to obtain the necessary financing to meet obligations and pay its liabilities arising from normal business operations when they come due and ultimately up on its ability to achieve profitable operations. The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will be able to continue as a going concern." A copy of the Form 10-Q is available for free at: http://is.gd/ihpoem Boca Raton, Fla.-based Poly Shield Technologies Inc., fka. GlobeTrac Inc., was in the global wireless tracking business in Europe until Nov. 1, 2004, when it exchanged this business for a royalty of 6% on future gross sales. On March 12, 2012, the Company entered into an agreement to purchase the rights to market the products of Teak Shield Corp. Teak Shield has several proprietary processes for the production of flouropolymer coatings used to protect surfaces from corrosion, oxidation and ultraviolet degradation. POSITIVEID CORPORATION: Delays Form 10-Q for Second Quarter ----------------------------------------------------------- PositiveID Corporation was unable, without unreasonable effort or expense, to file its quarterly report on Form 10-Q for the period ended June 30, 2012, by the Aug. 14, 2012, filing date applicable to smaller reporting companies due to a delay experienced by the Company in the completion of its independent auditor's review of the financial statements included in the Quarterly Report. The Company anticipates that it will file the Quarterly Report no later than Aug. 20, 2012. About PositiveID Delray Beach, Fla.-based PositiveID Corporation has historically developed, marketed and sold RFID systems used for the identification of people in the healthcare market. Beginning in early 2011, the Company has focused its strategy on the growth of its HealthID business, including the continued development of its GlucoChip, its Easy Check breath glucose detection device, its iglucose wireless communication system, and potential strategic acquisition opportunities of businesses that are complementary to its HealthID business. The Company's balance sheet at March 31, 2012, showed $2.99 million in total assets, $4.17 million in total liabilities, and a stockholders' deficit of $1.18 million. EisnerAmper LLP, in New York, N.Y., expressed substantial doubt about PositiveID'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 a working capital deficiency and an accumulated deficit. "Additionally, the Company has incurred operating losses since its inception and expects operating losses to continue during 2012. POTOMAC SUPPLY: Lumber Producer Sets Sept. 19 Auction ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Potomac Supply Corp. will auction its treated lumber business on Sept. 19. There is no buyer as yet under contract, although the company has authority from the bankruptcy court to grant a breakup fee if a purchaser signs a contract in advance of the auction. According to the report, the U.S. Bankruptcy Court in Richmond, Virginia, approved auction and sale procedures last week. There will be a Sept. 24 hearing for sale approval to whoever made the best bid at auction. About Potomac Supply Corp. Kinsale, Virginia-based building-supply manufacturer Potomac Supply Corporation filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 12-30347) on Jan. 20, 2012, estimating assets and debts of $10 million to $50 million. Potomac in mid-January announced it was suspending manufacturing operations in Kinsale after its lender refused to provide financing without additional investment. Judge Douglas O. Tice, Jr. presides over the case. Patrick J. Potter, Esq., at Pillsbury Winthrop Shaw Pittman LLP, in Washington, D.C., serves as the Debtor's bankruptcy counsel. The petition was signed by William T. Carden, Jr., chief executive officer. LeClairRyan P.C. is representing the Official Committee of Unsecured Creditors. PRESSURE BIOSCIENCES: Incurs $1.1 Million Net Loss in Q2 -------------------------------------------------------- Pressure Biosciences, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss applicable to common shareholders of $1.08 million on $324,908 of total revenue for the three months ended June 30, 2012, compared with a net loss applicable to common shareholders of $1.17 million on $190,686 of total revenue for the same period during the prior year. The Company reported a net loss applicable to common shareholders of $2.17 million on $630,569 of total revenue for the six months ended June 30, 2012, compared with a net loss applicable to common shareholders of $2.13 million on $371,329 of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $1.79 million in total assets, $2.60 million in total liabilities and a $811,955 total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/J0fi1l About Pressure Biosciences Pressure BioSciences, Inc., headquartered in South Easton, Massachusetts, holds 14 United States and 10 foreign patents covering multiple applications of pressure cycling technology in the life sciences field. As reported in the TCR on March 2, 2012, Marcum LLP, in Boston, Massachusetts, expressed substantial doubt about Pressure Biosciences' 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 had recurring net losses and continues to experience negative cash flows from operations. PROBE MANUFACTURING: Reports $71,400 Net Income in Second Quarter ----------------------------------------------------------------- Probe Manufacturing, Inc., filed its quarterly report on Form 10-Q, reporting net income of $71,453 on $1.6 million of sales for the three months ended June 30, 2012, compared with net income of $32,212 on $1.2 million of sales for the same period last year. For the six months ended June 30, 2012, the Company had net income of $84,171 on $2.9 million of sales, compared with net income of $56,940 on $2.1 million of sales for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $1.9 million in total assets, $1.5 million in total liabilities, and stockholders' equity of $435,516. The Company said: "Although for the six months ended June 30, 2012, we had a net profit of $84,171, a working capital surplus of $270,094 and a shareholder surplus of $435,516; we had an accumulated deficit of $(154,313), our ability to operate as a going concern is still dependent upon our ability (1) to obtain sufficient debt and/or equity capital and/or (2) generate positive cash flow from operations and maintain profitability." As reported in the TCR on April 16, 2012, W. T. Uniack & Co. CPA's P.C., in Woodstock, Georgia, said that the the financial statements have been prepared assuming that the Company will continue as a going concern. "The Company has current assets of $1,460,906 and current liabilities of $1,260,952. Sales have increased from $2,799,935 in 2010 to $4,549,798 for the comparable period in 2011. In addition, the Company has an accumulated deficit of ($238,483) and is dependent on at least maintaining current revenue levels. Those conditions raise substantial doubt about the Company's ability to continue as a going concern." A copy of the Form 10-Q is available for free at: http://is.gd/esy4eF Irvine, California-based Probe Manufacturing, Inc., provides global design and manufacturing services to original electronic equipment manufacturers from its 23,000 sq.ft. facility in Irvine, California and strategic locations worldwide. Revenue is generated from sales of the Company's services primarily to customers in the medical device, aerospace, automotive, industrial and instrumentation product manufacturers. PURADYN FILTER: Posts $237,100 Net Loss in Second Quarter --------------------------------------------------------- Puradyn Filter Technologies Incorporated filed its quarterly report on Form 10-Q, reporting a net loss of $237,119 on $804,099 of net sales for the three months ended June 30, 2012, compared with a net loss of $451,529 on $499,423 of net sales for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $505,097 on $1.6 million of net sales, compared with a net loss of $777,966 on $1.4 million of net sales for the comparable period of 2011. The Company's balance sheet at June 30, 2012, showed $1.4 million in total assets, $9.8 million in total liabilities, and a stockholders' deficit of $8.4 million. A copy of the Form 10-Q is available for free at: http://is.gd/exTFZH As reported in the TCR on April 10, 2012, Webb and Company, P.A., in Boynton Beach, Florida, expressed substantial doubt about Puradyn'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 suffered recurring losses from operations, its total liabilities exceed its total assets, and it has relied on cash inflows from an institutional investor and current stockholder. A copy of the Form 10-K is available for free at: http://is.gd/AYnr8a Boynton Beach, Fla.-based Puradyn Filter Technologies Incorporated (OTC BB: PFTI) designs, manufactures and markets the puraDYNƒ Oil Filtration System. QUAMTEL INC: Delays Form 10-Q for Second Quarter ------------------------------------------------ Quamtel, Inc., was unable to file its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2012, by the prescribed date of Aug. 14, 2012, without unreasonable effort or expense because the Company needs additional time to complete certain disclosures and analyses to be included in the Report. In accordance with Rule 12b-25 promulgated under the Securities Exchange Act of 1934, as amended, the Company intends to file its Report on or prior to the fifth calendar day following the prescribed due date. About Quamtel Inc. Dallas, Texas-based Quamtel, Inc., is a communications company offering, through its subsidiaries, a comprehensive range of mobile broadband and communications products and services that are designed to meet the needs of individual consumers, businesses, government subscribers and resellers. The Company's common stock trades on the OTC Bulletin Board (OTC BB) under the symbol "QUMI." In its report on the 2011 financial statements, RBSM LLP, in New York, New York, expressed substantial doubt about Quamtel's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses in the current year and also in the past. The Company reported a net loss of $4.49 million on $1.93 million of revenues for 2011, compared with a net loss of $10.05 million on $2.18 million of revenues for 2010. The Company's balance sheet at March 31, 2012, showed $1.63 million in total assets, $3.41 million in total liabilities and a $1.78 million total shareholders' deficiency. RALPH BH: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: Ralph BH LLC 168 Walworth Street Brooklyn, NY 11205 Bankruptcy Case No.: 12-45978 Chapter 11 Petition Date: Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Carla E. Craig Debtor's Counsel: Solomon Rosengarten, Esq. 1704 Avenue M Brooklyn, NY 11230-5423 Tel: (718) 627-4460 Fax: (718) 627-4456 E-mail: VOKMA@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Henry Grunbaum, managing member. Affiliates that simultaneously filed for Chapter 11: Debtor Case No. ------ -------- Bushwick BH LLC 12-45979 Utica BH LLC 12-45980 RESIDENTIAL CAPITAL: Court Approves Deloitte as Auditor ------------------------------------------------------- Residential Capital LLC received a go-signal from the U.S. Bankruptcy Court for the Southern District of New York to hire Deloitte & Touche LLP as its auditor. The company tapped the firm to review its interim financial information for each of the quarters in the year ending Dec. 31, 2012. Deloitte will also review the financial statements of the company and two of its affiliates, GMAC Mortgage LLC and Residential Funding Company LLC. The firm will also examine the compliance of GMAC and RFC with the Department of Housing and Urban Development's audit guide for audits of housing and urban development programs, among other services. Deloitte will be paid for its services in an hourly basis and will be reimbursed of its expenses. For its audit services, Deloitte will be paid at these hourly rates: Personnel Hourly Rates --------- ------------ Partner/Principal/Director $365 Senior Manager $290 Manager $265 Senior Staff $215 Staff $175 For its "servicing compliance" services, Deloitte will be compensated by a fixed fee of $1.465 million, of which $300,000 was paid prior to Residential Capital's bankruptcy filing. The firm does not hold interest adverse to Residential Capital and its affiliated debtors, according to a declaration by Tom Robinson, a partner at Deloitte. About Residential Capital 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. 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. ResCap is selling its mortgage origination and servicing businesses and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets. At the onset of the bankruptcy case, ResCap struck a deal with Nationstar Mortgage LLC for the mortgage origination and servicing businesses, and with Ally Financial for the legacy portfolio. Together, the asset sales are expected to generate roughly $4 billion in proceeds. According to Bloomberg News, following a hearing in June, the bankruptcy judge scheduled auctions for Oct. 23. A hearing to approve the sales was set for Nov. 5. Fortress Investment Group LLC will make the first bid for the mortgage-servicing business, while Berkshire Hathaway Inc. will serve as stalking-horse bidder for the remaining portfolio of mortgages. 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: Wins OK for KPMG LLP as Tax Advisor -------------------------------------------------------- Residential Capital LLC obtained court approval to employ KPMG LLP to provide tax compliance and information technology advisory services. The company selected KPMG because of the firm's "diverse experience and extensive knowledge" in the fields of taxation and operational controls for large sophisticated companies, according to James Whitlinger, Residential Capital's chief financial officer. KPMG will be paid for its tax compliance services at these hourly rates: Personnel Hourly Rates --------- ------------ Partners/Managing Directors $510 Directors $435 Managers $345 Senior Associates $240 Associates $195 Meanwhile, the firm's hourly billing rates for IT advisory services to be provided are: Personnel Hourly Rates --------- ------------ Partners/Principals $330 Directors/Senior Managers $260 Managers $215 Senior Associates $195 Associates $160 James McAveeney, a principal of KPMG, disclosed in court papers that the firm does not hold nor represent interest adverse to Residential Capital's estate, and that it is a "disinterested person" under Section 101(14) of the Bankruptcy Code. About Residential Capital 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. 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. ResCap is selling its mortgage origination and servicing businesses and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets. At the onset of the bankruptcy case, ResCap struck a deal with Nationstar Mortgage LLC for the mortgage origination and servicing businesses, and with Ally Financial for the legacy portfolio. Together, the asset sales are expected to generate roughly $4 billion in proceeds. According to Bloomberg News, following a hearing in June, the bankruptcy judge scheduled auctions for Oct. 23. A hearing to approve the sales was set for Nov. 5. Fortress Investment Group LLC will make the first bid for the mortgage-servicing business, while Berkshire Hathaway Inc. will serve as stalking-horse bidder for the remaining portfolio of mortgages. 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: Wins OK for Bradley Arant as Special Counsel ----------------------------------------------------------------- Judge Martin Glenn approved an application by Residential Capital LLC and its affiliated debtors to employ Bradley Arant Boult Cummings LLP as their special litigation and compliance counsel. Since January 2008, the Debtors have employed BABC to represent them and/or the investors for which the Debtors provide servicing or sub-servicing services in approximately 600 open litigation files related to a variety of causes of action, like claims asserted under the Truth in Lending Act (TILA), the Home Ownership and Equity Protection Act (HOEPA), the Fair Debt Collection Practices Act (FDCPA), the Fair Credit Reporting Act (FCRA), the Real Estate Settlement Procedures Act (RESPA), the Racketeer Influenced and Corrupt Organizations Act (RICO), and state deceptive trade practice laws. BABC's representation of the Debtors has also included matters related to pooling and servicing agreements, loan repurchase disputes, secondary market representations and warranties, servicing matters, and settlement services issues. BABC has further represented the Debtors in numerous pre-litigation situations with borrowers, state agencies and consumer advocacy groups and has assisted the Debtors with numerous non-litigation legal projects related to their daily mortgage servicing operations, including related regulatory and compliance matters. In addition, BABC has represented the Debtors with respect to their duties as servicer to manage, maintain, dispose of, and pursue claims with respect to various "REO" (real estate owned) properties upon which the Debtors have foreclosed, including claims against insurers of the REO properties and claims involving boundary and lien disputes. Further, on behalf of the Debtors, BABC has responded to informal and formal inquiries by state attorneys general (both individual state subpoenas and multi-state civil investigative demands (CIDs)), the Department of Justice, the Office of Inspector General of the Department of Housing and Urban Development (HUD), and the United States Attorney's office. Finally, BABC has assisted the Debtors in the negotiation of, and compliance with their obligations under, the Consent Order, the Consent Judgment, and the Related Agreements. As Special Litigation and Compliance Counsel to the Debtors, BABC is expected to continue to: (a) represent the Debtors and/or the investors for which the Debtors provide servicing or sub-servicing services in existing or future litigation concerning claims related to mortgage loans and related servicing practices brought by borrower against the Debtors and/or such investors primarily, but not exclusively, within the jurisdictions of Alabama, Florida, Kentucky, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas; (b) represent the Debtors and/or the investors for which the Debtors provide servicing or sub-servicing services in existing or future consumer and class action litigation relating to the Debtors' mortgage servicing operations; (c) advise the Debtors regarding the performance and satisfaction of their obligations under and in compliance with (i) the Board of Governors of the Federal Reserve System Consent Order, dated April 13, 2011, by and among AFI, Ally Bank, Residential Capital, LLC, GMAC Mortgage, LLC, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation, (ii) the consent judgment entered April 5, 2012 by the District Court for the District of Columbia, dated February 9, 2012, and (iii) all related agreements with the Debtors and their respective affiliates; (d) advise the Debtors regarding compliance with various federal, state, and local laws, statutes, regulations, orders, and similar restrictions regarding the operation of the Debtors' businesses and the performance of their obligations under their servicing, sub-servicing, and related contracts and agreements; (e) counsel and otherwise advise and assist the Debtors in the development, drafting, review, and revision of practices, policies, and procedures relating to the operation of the Debtors' businesses; and (f) counsel and otherwise advise and assist the Debtors with regard to research and review projects as needed and directed by the Debtors in furtherance of the Debtors' ongoing business operations. With respect to the Prepetition Matters, the Debtors employed BABC both on an hourly rate basis and pursuant to an alternative billing arrangement. The Debtors seek to continue postpetition these same employment and compensation arrangements with BABC. Some of the material terms of the alternative billing arrangement between the Debtors and BABC were: * The Alternative Billing Arrangement extends through December 31, 2012; provided that either the Debtors or BABC can terminate the arrangement on 90 day's notice. * The Debtors agreed to pay BABC $7,300 per matter for all legal fees and expenses (exclusive of certain expenses), subject to Safety Valve/Stop Loss adjustments, for all matters within the scope of the Alternative Billing Arrangement. * With respect to any individual matter, if the fees (exclusive of expenses) incurred by BABC with respect to any case exceed $18,000 -- the "Safety Valve Level" -- that case would be removed from the Alternative Billing Arrangement and would convert to an hourly-rate payment arrangement, including payment of out of pocket expenses incurred from and after the month in which the matter converted to hourly billing. BABC would provide the Debtors with a list each month of all cases subject to the agreement in which the legal fees exceeded $7,000. * BABC agreed to absorb the first $11,000 in fee overages on each case plus expenses until the month of conversion. * The Debtors agreed to reimburse BABC for the fees of expert witnesses engaged on behalf of the Debtors for all cases within the scope of the agreement. * BABC submits monthly invoices generally in conformity with the Debtors' billing policies. * BABC and the Debtors agreed to hold regular 90-Day Reviews with administrative staff, joined where appropriate by more senior legal personnel, to consider all aspects of the engagement relationship with the view toward improving efficiency in administrative functions, identifying any problem areas and discussing mutual outlooks and resource demands. The current hourly billing rates for BABC professionals expected to spend a significant time on the Special Counsel Matters range from $236 to $603 for partners, $184 to $341 for associates, and $65 to $150 for paralegals. BABC customarily charges its clients for reimbursable expenses incurred. About Residential Capital 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. 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. ResCap is selling its mortgage origination and servicing businesses and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets. At the onset of the bankruptcy case, ResCap struck a deal with Nationstar Mortgage LLC for the mortgage origination and servicing businesses, and with Ally Financial for the legacy portfolio. Together, the asset sales are expected to generate roughly $4 billion in proceeds. According to Bloomberg News, following a hearing in June, the bankruptcy judge scheduled auctions for Oct. 23. A hearing to approve the sales was set for Nov. 5. Fortress Investment Group LLC will make the first bid for the mortgage-servicing business, while Berkshire Hathaway Inc. will serve as stalking-horse bidder for the remaining portfolio of mortgages. 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: Panel Can Hire AlixPartners as Fin'l Advisor ----------------------------------------------------------------- Judge Martin Glenn authorized the Official Committee of Unsecured Creditors of Residential Capital LLC to retain AlixPartners LLP as its financial adviser. As financial advisor, AlixPartners will, among other things, advise and assist the Creditors Committee in its review and investigation of (i) intercompany transactions and selected other prepetition transactions, and (ii) preference payments, fraudulent conveyances and other causes of action that the Debtors' bankruptcy estates may hold against third parties. AlixPartners will be paid on an hourly basis and reimburse the firm for its expenses. The firm's hourly rates are: Personnel Hourly Rates --------- ------------ Managing Directors $815 - $970 Directors $620 - $760 Vice Presidents $455 - $555 Associates $305 - $405 Analysts $270 - $300 Paraprofessionals $205 - $225 Harvey R. Kelly, a Managing Director with AlixPartners, attests that AlixPartners is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Residential Capital 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. 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. ResCap is selling its mortgage origination and servicing businesses and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets. At the onset of the bankruptcy case, ResCap struck a deal with Nationstar Mortgage LLC for the mortgage origination and servicing businesses, and with Ally Financial for the legacy portfolio. Together, the asset sales are expected to generate roughly $4 billion in proceeds. According to Bloomberg News, following a hearing in June, the bankruptcy judge scheduled auctions for Oct. 23. A hearing to approve the sales was set for Nov. 5. Fortress Investment Group LLC will make the first bid for the mortgage-servicing business, while Berkshire Hathaway Inc. will serve as stalking-horse bidder for the remaining portfolio of mortgages. 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). REVEL AC: S&P Downgrades CCR to 'CCC' on Weak Performance --------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Atlantic City-based Revel AC Inc., the operator of the Revel Resort, to 'CCC' from 'B-'. The rating outlook is negative. "We also revised our recovery rating on the company's $900 million senior secured term loan to '3' from '2' and lowered our issue- level rating to 'CCC' (at the same level as the corporate credit rating) from 'B'," said Standard & Poor's credit analyst Jennifer Pepper. "The recovery rating of '3' reflects our expectation of meaningful (50%-70%) recovery in the event of a payment default. The revised recovery rating reflects a lower cash flow base at Revel in our assumed default scenario because of the weak initial operating results. The issue-level downgrade reflected both the downgrade of the corporate credit rating and our recovery-rating notching criteria." "The downgrade reflects our view that a strong opening for the Revel Resort was critical to the company's ability to ramp up cash flow generation to a level sufficient to service its capital structure. While one of the tenets of the company's strategy is to appeal to the non-gaming customer, the property is heavily reliant on the success of its casino--we had expected about 80% of revenue to come from gaming. In its first four months of operations, gaming revenue was well below expectations, and we believe the property will have difficulty ramping up quickly enough to a level of EBITDA generation that is sufficient to cover all fixed charges. For 2013, we expect fixed charges to total about $120 million including about $109 million of interest expense, $4.5 million of scheduled amortization and about $6 million of capital expenditures. Under our updated expectations, even assuming a steady ramp up from initial reported revenue levels, it is questionable whether Revel will be able to generate sufficient cash flow to meet this level of fixed charges. Furthermore, in 2014, fixed charges increase, as interest on the company's second lien notes convert to cash pay. In addition, the company's senior secured term loan contains financial maintenance covenants that will be measured beginning in the June 2013 quarter. Under our current performance expectations, we do not believe that the company will be able to meet those covenants and will need to negotiate an amendment with lenders," S&P said. REVEL ENTERTAINMENT: Bank Debt Trades at 25% Off ------------------------------------------------ Participations in a syndicated loan under which Revel Entertainment Group LLC is a borrower traded in the secondary market at 74.60 cents-on-the-dollar during the week ended Friday, Aug. 17, a drop of 6.57 percentage points from the previous week according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. The Company pays 750 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 15, 2017, and carries Moody's B3 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 165 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Revel Entertainment ?- www.revelresorts.com -- owns Revel, a newly opened beachfront resort that features more than 1,800 rooms with sweeping ocean views. The smoke-free resort has indoor and outdoor pools, gardens, lounges, a 32,000-square-foot spa, a collection of 14 restaurant concepts, and a casino. Revel is located on the Boardwalk at Connecticut Avenue in Atlantic City, New Jersey. RGIS HOLDINGS: S&P Keeps 'B+' Rating on Tranche C Term Loan ----------------------------------------------------------- Standard & Poor's Ratings Services said that its 'B+' issue rating (the same as the corporate credit rating) and '4' recovery rating on Auburn Hills, Mich.-based inventory servicing and data collection company RGIS Holdings LLC's term loan C remain unchanged after a $60 million add-on. The company will pay down $60 million of the nonextended term loan B (due April 2014) using proceeds from an additional $60 million Tranche C term loan (due October 2017). (All debt is held at subsidiary RGIS Services LLC.) "We consider the transaction leverage neutral. The '4' recovery rating indicates our expectation of average (30% to 50%) recovery for lenders in the event of a payment default," S&P said. "With this transaction, the company further addresses a portion of its remaining near-term maturities such that $115 million of the nonextended Term Loan B will be mature in April 2014. In May 2012, RGIS engaged in a transaction that repaid debt and extended near- term maturities," S&P said. "Our 'B+' corporate credit rating and stable outlook on RGIS remain unchanged. Over the next 12 months, we believe that the company will maintain credit protection measures in line with our indicative ratios for the 'aggressive' descriptor, including the ratio of funds from operations to total debt between 12% and 20% and a leverage ratio between 4x and 5x, while the company pursues acquisitions and investments. Our 'weak' business risk assessment incorporates our view that the company continues to have a narrow business focus in inventory servicing and data collection and that it remains vulnerable to the performance of retailers, especially in the U.S.," S&P said. RATINGS LIST RGIS Holdings LLC Corporate Credit Rating B+/Stable/-- Ratings Remain Unchanged RGIS Services LLC Tranche C term loan due 2017 B+ Recovery Rating 4 ROCK POINTE: Elsaesser Named as Mediator for DMARC, Spokane Issues ------------------------------------------------------------------ Rock Pointe Holdings Company LLC, DMARC 2006-Cd2 Corporate Center LLC, and Spokane Rock One have agreed to mediation. The bankruptcy judge entered an order appointing Ford Elsaesser to serve as mediator of all issues regarding the treatment of the debt owed to DMARC; and regarding the dispute involving Spokane Rock One and the treatment of its interest and/or debt in this bankruptcy case. The parties will focus on the mediation process and cease unnecessary litigation in the Chapter 11 case and any related adversary proceedings, according to the June 27 order by Judge Frank L. Kurtz. In June 2012, Robert D. Miller Jr., the United States Trustee for Region 18, pursuant to 11 U.S.C. Sec. 1102(a) and (b), appointed five unsecured creditors to serve on the Official Committee of Unsecured Creditors of Rock Pointe Holdings Company LLC. The Creditors Committee members are: 1. KC Charles, Inc. Cary E. Berger 5685 Jergens Road Nine Mile Falls, WA 99026 Tel: (509) 276-1228 2. Yadon Construction Specialties, Inc. Barbara Rhodes P.O. Box 2672 Spokane, WA 99220 Tel: (509) 535-0301 3. Green Johnny LLC John M. Thornton P.O. Box 48542 Spokane, WA 99228 Tel: (509) 496-3244 4. BK Enterprises - GW DeMaine Bill DeMaine 1116 N. Best Rd. Spokane Valley, WA 99216 Tel: (509) 926-0143 5. ABM Janitorial / American Building Maintenance Jewell Swinyard 1766 Fowler Street, Ste. A Richland, WA 99352 Tel: (509) 735-9570 About Rock Pointe Holdings Company LLC Rock Pointe Holdings Company LLC owns the Rock Pointe Corporate Center in Spokane, Washington. The Company filed for Chapter 11 protection (Bankr. E.D. Wash. Case No.11-05811) on Dec. 2, 2011. Brett L. Wittner, Esq., at Kent & Wittner PS, represents the Debtor. The Debtor estimated both assets and debts of between $50 million and $100 million. The U.S. Trustee said an official committee has not been appointed in the bankruptcy case of Rock Pointe Holdings Company LLC because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. ROTECH HEALTHCARE: S&P Lowers CCR to 'CCC-' on Weak Liquidity ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Orlando, Fla.-based Rotech Healthcare Inc. to 'CCC-' from 'B'. "We also lowered our issue-level rating on its $230 million first-lien notes to 'CCC+' from 'BB-'. The recovery rating on its first-lien notes is '1', indicating our expectation for a very high (90% to 100%) recovery of principal in the event of payment default. At the same time, we also lowered our issue-level rating on its $290 million second-lien notes to 'CCC-' from 'B'. The recovery rating on its second-lien notes is a '4', indicating our expectation for average (30% to 50%) recovery of principal in the event of payment default. The downgrade results from Rotech's weak liquidity position, highlighted by its high cash burn rate," S&P said. "The ratings reflect Rotech's highly leveraged financial risk profile, dominated by its weak liquidity position, high debt burden and overall sensitivity of credit metrics to the uncertain reimbursement environment," said Standard & Poor's credit analyst Tahira Wright. "Rotech's 'vulnerable' business risk profile primarily reflects the lack of clarity in its business strategy during a transition of senior management. The business risk profile also reflects the company's narrow operating focus and exposure to continued Medicare reimbursement reductions for its products and services, particularly for its nebulizer medication. Rotech's negative free operating cash flows in recent quarters were well below our expectations. Our previous expectations assumed the company would be able to generate cash in 2012, which incorporated a gradual improvement in days sales outstanding (DSO) at or below 55 days, from close to 59 days as of Dec. 31, 2011. This assumed Rotech would be able to address its accounts receivable, order and billing issues. There was no improvement in DSO during the second quarter of 2012. As of June 30, 2012, DSO remained above 58 days. The company had a high cash burn rate in the second quarter of 2012 of 40%, leaving only $12 million of cash reserves available as of June 30, 2012." "Revenue growth and EBITDA margins were also below our expectations. Revenue declined 3.8% for the second quarter of 2012 compared to the prior year and the EBITDA margin was 16%, lower than our expectation for the full year of 22%. We still believe Rotech can benefit from increased patient volume, but continued challenges from reimbursement cuts for nebulizer medication and negative adjustments to revenue and claim denials from Medicare continue to offset any organic growth. Without revenue growth, Rotech's high cost base and annual capital expenditures of about $50 million will keep adding to negative cash flows, eroding already slim cash balances. This will make it a challenge to meet near-term debt interest payments of about $27 million in the second-half of 2012," S&P said. ROYAL SEATING: Voluntarily Dismisses Chapter 11 Case ---------------------------------------------------- The U.S. Bankruptcy Court last month approved Royal Seating LLC's motion for the voluntary dismissal of its Chapter 11 case. In late April, the Debtor negotiated new loans with GemCap Lending I LLC with liens given on equipment and on inventory and accounts receivable. In May a new real estate loan was entered into with Private Capital Group. Almost immediately a dispute arose between terms of security interests granted to the two lenders and whether defaults were created under covenants of the other lender. The Debtor noted in the motion that it has only one dispute and that is with the creditor that had posted for sale all of its equipment, inventory and accounts receivable. On the other side of the coin, the Debtor has roughly 100 employees that depend on its continuing operations to make a living and to be able to support their families; there are a great many pending contracts with school districts that depend on the timely completion of pending jobs to meet the needs of their students who will be returning to school in just a couple of months, there are many pending jobs that, if not completed, may not be able to be sent by customers to other companies in time to meet their deadlines for installation, and the overall value of the Debtor's accounts receivable would likely diminish by a significant percentage once customers that have received shipments find that their warranties may be with a defunct entity. Also, the Debtor added that customers with pending orders have made it known that some of these orders will be cancelled if they cannot be assured that the debtor entity will be around to complete those orders. Thus, the Debtor said that the extended time in bankruptcy has the very real possibility of causing significant cancellation of orders which in turn would have the very real likelihood of causing the demise of the company, even if it resolved its dispute with Gemcap and subsequently had the bankruptcy case dismissed. The Debtor said in the motion that Gemcap will interpose no opposition to the dismissal. While in bankruptcy the Debtor obtained an interim order authorizing the use of cash collateral. Gemcap's motion to prohibit the use of cash collateral was dismissed by the court. The Debtor requested that the dismissal be without prejudice to any right of future filing. About Royal Seating Royal Seating, LLC, doing business as Uscapes and Spotlight Seating, filed a Chapter 11 petition (Bankr. W.D. Tex. Case No. 12-60693) on June 28, 2012. The Debtor is represented by Larry E. Kelly, Esq., at Dickson & Squires, LLP. A copy of the petition is available at 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. RUDEN MCCLOSKY: Plan to Pay 5% to Unsecured Creditors ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Ruden McClosky PA is scheduled to hold a confirmation hearing on Sept. 28 for approval of a liquidating Chapter 11 plan with a 5% recovery for unsecured creditors. According to the report, the firm in November was authorized on Nov. 30 by the bankruptcy judge in Fort Lauderdale to sell the business to Greenspoon Marder PA, a six-office Florida firm. Greenspoon paid $5.6 million cash plus the assumption of $2 million in debt. The sale paid off the secured claim of about $4.6 million owing to Wells Fargo Bank NA. Shareholders of the firm, often called partners at other firms, had guaranteed the debt. The report relates that last week, the bankruptcy judge approved disclosure materials so creditors can vote on the plan. From the $2.2 million the firm had left after the sale and expected to collect later, some $350,000 will remain for distribution to unsecured creditors once expenses of the Chapter 11 case and claims with higher priority are paid, according to the disclosure statement. About Ruden McClosky Founded in 1959, Ruden McClosky P.A., fdba Ruden, McClosky, Smith, Schuster & Russell, P.A. -- http://www.ruden.com/-- was a full- service law firm serving the legal needs of clients throughout Florida, the U.S., and internationally. It had eight offices in Florida. The Ruden firm had 67 attorneys and 148 total employees on entering Chapter 11. In August 2011, the firm was reportedly in merger talks with Cleveland, Ohio-based Benesch firm. In September 2011, founder Donald McClosky died after a long battle with cancer. Ruden McClosky filed for Chapter 11 protection (Bankr. S.D. Fla. Case No. 11-40603) on Nov. 1, 2011, in its hometown of Fort Lauderdale, with a plan to sell a substantial portion of its assets for $7.6 million to Fort Lauderdale-based Greenspoon Marder, subject to higher and better offers at an auction. Judge Raymond B. Ray oversees the case. Leslie Gern Cloyd, Esq., and Paul Steven Singerman, Esq., at Berger Singerman, P.A., serve as the Debtor's counsel. Development Specialists, Inc., serves as the Debtor's restructuring advisors. The Debtor tapped Steven J. Gutter, P.A., as its special litigation counsel in connection with collection of accounts receivable, and authorization to settle accounts receivable claims in the ordinary course of business. The petition was signed by DSI's Joseph J. Luzinski, who serves as chief restructuring officer. Kurtzman Carson Consultants LLC serves as the Debtor's claims and noticing agent. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. An official committee of unsecured creditors has been appointed in the case, and is represented by Segall Gordich, P.A. The Committee tapped Soneet Kapila, CPA, and the firm of Kapila & Company as its financial advisor. Counsel to the Debtor's lender, Wells Fargo Bank, N.A., is Jonathan Helfat, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. Counsel to Greenspoon Marder, the proposed purchaser, is R. Scott Shuker, Esq., at Latham, Shuker, Eden & Beaudine, LLP. SAINTS MEMORIAL: Moody's Raises Rating on 1993 Bonds From 'Caa1' ---------------------------------------------------------------- Moody's Investors Service has upgraded to Baa2 from Caa1 the rating assigned to Saints Memorial Medical Center's Series 1993 bonds and removes the rating from under review. The outlook is stable at the higher rating level. Summary Ratings Rationale The rating upgrade to Baa2 from Caa1 reflects the impact of the merger of Saints Medical Center and Lowell General Hospital. Outlook The stable outlook reflects Moody's belief that the combined entity will meet projected financial targets and that over the longer term, the merger will be strategically beneficial in terms of increased market share, critical mass, economies of scale, and keeping external acute care competitors from entering the Lowell healthcare market. What Could Make The Rating Go Up Successful integration of the LGH and Saints facilities with a return to operating margins historically generated at LGH prior to the merger; substantial growth in cash and investments; improved debt service coverage metrics. What Could Make The Rating Go Down Disruptions to integration efforts of the two campuses and inability to meet projected financial performance; mass physician departures; additional deterioration to balance sheet measures including decline in cash balances or increase in debt. The principal methodology used in this rating was Not-For-Profit Healthcare Rating Methodology published in March 2012. SEACOR HOLDINGS: Moody's Affirms 'Ba1' CFR; Outlook Negative ------------------------------------------------------------ Moody's Investors Service changed SEACOR Holdings Inc.'s rating outlook to negative from stable. Moody's affirmed SEACOR's Ba1 Corporate Family Rating (CFR), Ba1 senior notes ratings and other existing ratings. Ratings Rationale "The negative outlook reflects SEACOR's slower than expected earnings recovery in 2012 which has hindered the anticipated improvement in its leverage metrics," commented Pete Speer, Moody's Vice President. "The company has also consumed a significant amount of its cash and investment balances, reducing an important cushion for its financial risk that underpins its Ba1 ratings." Persistently weak earnings and higher debt balances have lifted SEACOR's financial leverage above the levels Moody's expects for its Ba1 CFR. Debt/EBITDA (including Moody's standard adjustments) was over 4x at June 30, 2012. Second quarter 2012 EBITDA was significantly lower than the first quarter of this year, primarily because of a large decline in profitability in its Offshore Marine Services segment. These results were inconsistent with Moody's expectations given the ongoing improvement in overall offshore Gulf of Mexico activity and the earnings contribution from its lift boats acquisition completed at the end of the first quarter. Consequently Moody's sees more uncertainty regarding the timing and extent of the anticipated cyclical recovery in SEACOR's earnings. The lower cash flows combined with increased capital spending and the $142.5 million lift boat acquisition has reduced SEACOR's cash, marketable securities (net of short sale liabilities) and construction/Title XI reserve funds by about 33% to $531 million at June 30, 2012. The heavy capital spending looks likely to continue in the near term based on the trends in the company's capital commitments and therefore SEACOR's cash and investments could continue to decline. The company's practice of maintaining high levels of cash and highly liquid investments relative to reported debt has always been a key risk mitigation to the cyclicality of its earnings. The decline in these funds has also pressured the Ba1 CFR. The negative outlook also highlights SEACOR's increasing structural complexity, including the separate capitalization of its Era Group Inc. subsidiary. The addition of a senior secured bank credit facility at that subsidiary has structurally subordinated the claims of SEACOR's corporate credit facility and senior unsecured notes to the helicopters and other assets included in its Aviation Services business. This adds to the Title XI bonds priority claims to three of the company's products and chemical tankers. Further subordination of SEACOR's unsecured creditors to the company's consolidated asset base could result in a notching of the senior notes rating beneath the CFR. If SEACOR's leverage does not decline through cyclical earnings recovery and/or debt reduction while also maintaining ample cash and investment balances then its ratings could be downgraded. However, if the company is able to reduce and sustain Debt/EBITDA below 3.5x while also holding its cash and investment balance above 50% of its reported debt then the outlook could be changed to stable. The principal methodology used in rating SEACOR was the Global Oilfield Services Rating Industry Methodology published in December 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. SEACOR Holdings, Inc., headquartered in Fort Lauderdale, Florida, provides offshore marine and aviation services to oil and gas companies. The company also provides marine and inland river transportation, emergency and crisis services, and other services. SEARS HOLDINGS: Incurs $133 Million Net Loss in Second Quarter -------------------------------------------------------------- Sears Holdings Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $133 million on $9.46 billion of revenue for the 13 weeks ended July 28, 2012, compared with a net loss of $144 million on $10.13 bllion of revenue for the 13 weeks ended July 30, 2011. The Company reported net income of $61 million on $18.73 billion of revenue for the 26 weeks ended July 28, 2012, compared with a net loss of $318 million on $19.67 billion of revenue for the 26 weeks ended July 30, 2011. The Company's balance sheet at July 28, 2012, showed $21.18 billion in total assets, $16.68 billion in total liabilities and $4.49 billion in total equity. Lou D'Ambrosio, Sears Holdings' Chief Executive Officer and President, said, "We continue to make progress against the priorities we outlined in our fourth quarter earnings release and call. In particular, we have improved our profit position, as we reduced expenses and expanded margin rate through more effective promotional design. We have also successfully lowered inventory, reduced debt from year end, and enhanced our liquidity. In addition, the Sears Hometown transaction remains on track to close in the third quarter. While we drive operational discipline, we are also investing in our customer experience, particularly through our ShopYourWay membership program and Integrated Retail. Our focus is on providing clear benefits to our members and customers, and delivering an excellent and seamless experience across the store, online, mobile and in the home." A copy of the Form 10-Q is available for free at: http://is.gd/5JhfgR About Sears Hoffman Estates, Illinois-based Sears Holdings Corporation (Nasdaq: SHLD) -- http://www.searsholdings.com/-- is the nation's fourth largest broadline retailer with more than 4,000 full-line and specialty retail stores in the United States and Canada. Sears Holdings operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation. Sears Holdings also owns a 94% stake in Sears Canada and an 80.1% stake in Orchard Supply Hardware. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. It also has the Country Living collection, which is offered by Sears and Kmart. Kmart Corporation and 37 of its U.S. subsidiaries filed voluntary Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 02-02474) on Jan. 22, 2002. Kmart emerged from chapter 11 protection on May 6, 2003, pursuant to the terms of an Amended Joint Plan of Reorganization. John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, represented the retailer in its restructuring efforts. The Company's balance sheet showed $16,287,000,000 in assets and $10,348,000,000 in debts when it sought chapter 11 protection. Kmart bought Sears, Roebuck & Co., for $11 billion to create the third-largest U.S. retailer, behind Wal-Mart and Target, and generate $55 billion in annual revenues. Kmart completed its merger with Sears on March 24, 2005. Negative Outlook Standard & Poor's Ratings Services in January 2012 lowered its corporate credit rating on Hoffman Estates, Ill.-based Sears Holdings Corp. to 'CCC+' from 'B'. "We removed the rating from CreditWatch, where we had placed it with negative implications on Dec. 28, 2011. We are also lowering the short-term and commercial paper rating to 'C' from 'B-2'. The rating outlook is negative," S&P said. "The corporate credit rating reflects our projection that Sears' EBITDA will be negative in 2012, given our expectations for continued sales and margin pressure," said Standard & Poor's credit analyst Ana Lai. She added, "We further expect that liquidity could be constrained in 2013 absent a turnaround or substantial asset sales to fund operating losses." Moody's Investors Service in January 2012 lowered Sears Holdings Family and Probability of Default Ratings to B3 from B1. The outlook remains negative. At the same time Moody's affirmed Sears' Speculative Grade Liquidity Rating at SGL-2. The rating action reflects Moody's expectations that Sears will report a significant operating loss in fiscal 2011. Moody's added that the rating action also reflects the company's persistent negative trends in sales, which continue to significantly underperform peers. SEARS HOLDINGS: S&P Affirms 'CCC+' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on Sears Holdings Corp. to stable from negative based on Sears' improved liquidity. "We affirmed all the ratings, including the 'CCC+' corporate credit rating," S&P said. "The rating on Sears Holdings Corp. reflects its 'vulnerable' business risk profile and 'highly leveraged' financial risk profile. We expect the financial risk profile to remain highly leveraged, with total debt to EBITDA remaining elevated at over 9x," S&P said. "Despite some recovery in profitability because of gross margin expansion in the second quarter ended July 28, 2012, sales trends remain poor, with comparable-store sales declining 3.7% in the quarter," said Standard & Poor's credit analyst Ana Lai. "The stable outlook reflects our expectations that Sears will maintain adequate liquidity despite our estimate for a continuing trend of sales erosion. Still, we could lower the rating if we believe Sears' liquidity will become constrained because of worse operating performance than we expect and the revolver usage is greater than we expect, resulting in a revision of our liquidity descriptor to less than adequate. Although unlikely in the next year, we could take a positive rating action if the company can turn its operating performance around and achieve sustainable sales growth and improve its profitability," S&P said. SEDONA DEVELOPMENT: Sept. 4 Hearing on Amended Competing Plans -------------------------------------------------------------- There's a Sept. 4 hearing to consider approval of the disclosure statements explaining the competing plans for debtors Sedona Development Partners, LLC, and The Club at Seven Canyons, LLC. One plan was filed by Specialty Mortgage and the second was filed by the Debtors. The Debtors and Specialty this month filed amendments to their respective plans and disclosure statements and after failing to win court approval of their plan disclosures at prior hearings. The Debtors' plan now provides that there would be up to $10,750,000 in financing to pay off claims. Specialty's plan now says that a bulk sale -- as opposed to separate auctions -- will be conducted and there's now a stalking horse bidder for the assets. Specialty Mortgage Plan According to the Creditor Disclosure Statement filed Aug. 17, 2012, Specialty -- servicer for multiple secured creditors of the Debtor with over $70 million in loans outstanding to SDP -- proposes a Plan where an independent trustee, proposed by Specialty and approved by the Bankruptcy Court, will be appointed if the Creditor Plan is approved and confirmed. The Trustee will operate Seven Canyons and conduct a competitive auction process within 60 days after the Confirmation Date. The Creditor Plan proposes that the Trustee will conduct a "Bulk Auction", for the entire Seven Canyons, as well as a "Lot Auction", which divides Seven Canyons into its individual development pieces for sale. The Bankruptcy Court will then determine which auction alternative, the Bulk Auction or the Lot Auction, resulted in the best interest of the Estate and its creditors, and will accordingly approve only one of the auctions. Specialty believes this method will provide the highest and best recovery for the Debtors' creditors. In both auction alternatives, the secured creditors will pay for the administrative claims and approved expenses of the bankruptcy process. If the Bulk Auction is approved, the winning bidder will pay a "Buyers Premium" of 5% of the purchase price, the majority of which will be distributed to unsecured creditors. In connection with its proposed plan, Specialty has identified a proposed purchaser for the Bulk Auction and purchase of Seven Canyons, Northlight Trust I, or one of its appointed affiliates. The proposed stalking horse bidder has offered to purchase the combined assets for $10 million, absent higher and better offers. Specialty said that in the event that a Bulk Auction is approved, the Buyer's Premium will be available to pay the allowed claims of priority and unsecured creditors. It said that in a Chapter 7 liquidation scenario, there is no guarantee there would be funds for payment of allowed administrative expenses. Club members who made deposits totaling $26.8 million can either have their claims treated as general unsecured claims or obtain a new golf membership with the winning bidder of the Bulk Auction. Holders of general unsecured claims (trade claims anticipated $2.41 million) will share in the distribution of the proceeds of the Buyer's Premium as well as the proceeds of unencumbered assets. Proposed auction rules provide that the winning bidder at the Bulk Auction, if the sale is ultimately approved by the Bankruptcy Court, must also pay a 5% Buyer's Premium on the purchase price in order to pay off unsecured claims, and assume contracts with club members. Interest holders won't receive anything. The prior iteration of Specialty's plan contemplated that various "auction lots" will be separately sold at open auction through a series of 1129(b) auctions. Club members are offered either the same treatment as general unsecured claims or pro rata share from proceeds of causes of auction. Unsecured creditors were to from proceeds of unencumbered assets. This version of the Plan, according to the Debtors, does not provide for payments to unsecured creditors or any compensation to or protection of the interests of club members. A copy of the Specialty Disclosure Statement dated Aug. 17, 2012, http://bankrupt.com/misc/Sedona_Specialty_DS_081712.pdf Debtor's Plan According to the Debtor's Disclosure Statement dated Aug. 10, 2012, the Plan proposes two alternatives: "Alternative A" requires the cooperation of various diverse creditor interests, while "Alternative B" provides for a lesser approach that achieves a possible, but less beneficial, division of the Property. The Debtors believe the maximum recovery from their property can be achieved with these steps: (A) Dividing the Property into its divisible components (the golf course properties, including the practice park and range house; the Parcel A and D villas and the Debtors' unsold villa intervals; Parcel B; and Parcel C), (B) Restructuring lien interests so that secured creditors receive (i) payment of their Creditor Value; (ii) ownership of the collateral, or (iii) participation in the joint venture development of the collateral; (C) Facilitating the development of Parcel B and Parcel C by providing for its development with villa intervals and permitting purchasers of such intervals to participate in, and share the cost of, the golf course, infrastructure and other amenities; and (D) Completing amenities for the golf club and permitting existing club members to manage the affairs of club operations for the benefit of existing and future club members. If Alternative A is approved, then all classes will be treated under Alternative A. If not, all classes will be treated under Alternative B. Under Alternative A, the Debtors will have a new loan from 7C Clubhouse Lenders in the amount of $10,750,000 to pay, among other things, administrative claims in full, pay secured creditors, and make distributions to unsecured creditors. If Alternative B is pursued, the loan will be reduced to $3.5 million, which amount will be used solely to pay administrative expenses. Under Alternative A, creditor Specialty Trust would receive payment of $1.5 million in cash plus title to a certain parcel, and Seven Secured Recap will receive full payment of its $2.1 million secured claim. Under Alternative B, Specialty Trust and Seven Secured Recap would receive liens or titles to certain parcels of the Debtor's property. As to club members, they would retain their club memberships under Alternative A, while they would be treated as unsecured creditors in the second. As for unsecured creditors, they will split $650,000 under the first alternative, while they'll only split $100,000 under the second. Holders of interests will retain their interests. The prior iteration of the Plan contemplated that allowed secured claims will be paid in full over a period of seven to 10 years. General unsecured claims will share, pro-rata, in a distribution of the sum of $2,000,000 in cash paid by the Reorganized Debtor from a New Value contribution from interest holders, on the 90th day following the Effective Date of the Plan. A copy of the Debtors' Disclosure Statement dated Aug. 10, 2012, is available at: http://bankrupt.com/misc/Sedona_Specialty_DS_081712.pdf About Sedona Development Partners Sedona Development Partners owns an 18-hole golf course and related properties, including luxury villas, a practice park, range house, tennis courts and related facilities in Sedona, Arizona, known generally as Seven Canyons. The Club at Seven Canyons, LLC, operates the golf course and related facilities for SDP. SDP is the manager and sole member of the Club. Sedona Development Partners filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 10-16711) on May 27, 2010. The Club at Seven Canyons filed a separate Chapter 11 petition (Bankr. D. Ariz. Case No. 10-16714). John J. Hebert, Esq., Philip R. Rudd, Esq., and Wesley D. Ray, Es., at Polsinelli Shughart PC, in Phoenix, Ariz., assist the Debtors in their restructuring efforts. Lender Specialty Trust is represented by Joseph E. Cotterman, Esq., and Nathan W. Blackburn, Esq., at Gallagher & Kennedy, P.A. Sedona disclosed $29,171,168 in assets and $121,679,994 in liabilities. Sedona Development Partners, LLC, and The Club at Seven Canyons, LLC, filed with the U.S. Bankruptcy Court for the District of Arizona on June 17, 2011, a second amended joint disclosure statement in support of their second amended joint pan of reorganization. The Debtors' disclosure statement was approved on June 28, 2011. SMART ONLINE: Incurs $1 Million Net Loss in Second Quarter ---------------------------------------------------------- Smart Online, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.04 million on $138,022 of total revenues for the three months ended June 30, 2012, compared with a net loss of $800,257 on $111,072 of total revenues for the same period during the prior year. The Company reported a net loss of $2.10 million on $277,255 of total revenues for the six months ended June 30, 2012, compared with a net loss of $1.78 million on $249,809 of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $1.49 million in total assets, $26.38 million in total liabilities and a $24.88 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/W5kt6v On Aug. 8, 2012, Smart Online sold an additional convertible secured subordinated note due Nov. 14, 2016, in the principal amount of $350,000 to a current noteholder. The Company is obligated to pay interest on the New Note at an annualized rate of 8% payable in quarterly installments commencing Nov. 8, 2012. The Company is not permitted to prepay the New Note without approval of the holders of at least a majority of the aggregate principal amount of the Notes then outstanding. The sale of the New Note was made pursuant to an exemption from registration in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended. About Smart Online Durham, North Carolina-based Smart Online, Inc., develops and markets a full range of mobile application software products and services that are delivered via a SaaS model. The Company also provides Web site and mobile consulting services to not-for-profit organizations and businesses. Cherry, Bekaert & Holland, L.L.P., in Raleigh, North Carolina, expressed substantial doubt about Smart Online'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 suffered recurring losses from operations and has a working capital deficiency as of Dec. 31, 2011. SOUTHEAST BANKING: Ch. 11 Trustee Files Notice of Sale ------------------------------------------------------ BankruptcyData.com reports that the Chapter 11 Trustee assigned to Southeast Banking case filed with the U.S. Bankruptcy Court a notice of the sale not in the ordinary course of business by the estate's wholly-owned nondebtor subsidiary SWQ Holdings, Inc. of undeveloped real property owned jointly by SWQ and the Southwest Quadrant Joint Venture to JAX SQW Apartments. The total gross purchase price was $4.2 million, while the net proceeds to the estate from the sale are $3.7 million. Southeast Banking Corp. was the holding company of Southeast Bank, N.A., and its sister institution, Southeast Bank of West Florida, and the direct or indirect parent of a number of subsidiary corporations and affiliates, active and inactive, which at various times conducted substantial business throughout the State of Florida and beyond. The businesses of SEBC and its affiliates consisted of banking, real estate investment and development, insurance, mortgage banking, venture capital, and asset investment. At the time of their failure the Banks had total assets of $10.5 billion and total deposits of $7.6 billion. Most of the assets were with SEBNA, which had 218 of the combined 224 branches and all but $100 million of the assets. Together, the two banks had approximately 6,200 employees, operating exclusively in Florida. On September 20, 1991, Southeast Bank filed a voluntary petition under Chapter 7 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 91-14561). Southeast Bank, N.A., was seized by federal regulators while Southeast Bank of West Florida was seized by state regulators on September 19, 1991. On September 20, 1991, SEBC's board of directors voted to authorize the filing of a voluntary Chapter 7 petition, and then promptly resigned along with all of SEBC's officers. Jeffrey H. Beck was the fourth Trustee appointed in the Debtor's liquidation proceeding. This bankruptcy case was converted to Chapter 11 on September 17, 2007, almost sixteen years after its initial filing. SUMMERWIND PARTNERS: Case Summary & 20 Largest Unsec Creditors -------------------------------------------------------------- Debtor: Summerwind Partners, LLC 3311 S. Rainbow Boulevard, Suite 209 Las Vegas, NV 89146 Bankruptcy Case No.: 12-19536 Chapter 11 Petition Date: August 16, 2012 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Timothy P. Thomas, Esq. LAW OFFICES OF TIMOTHY P. THOMAS, LLC 8670 W. Cheyenne Ave. #120 Las Vegas, NV 89129 Tel: (702) 227-0011 Fax: (702) 227-0015 E-mail: tthomas@tthomaslaw.com Scheduled Assets: $4,588,406 Scheduled Liabilities: $1,476,624 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/nvb12-19536.pdf The petition was signed by William Dyer, president of Integrated Financial Associates, Inc., manager. Affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Integrated Financial Associates, Inc. 11-13537 03/14/11 Kings Inn Holdings, LLC 12-12101 02/28/12 Ranches Holdings, LLC 12-13157 03/21/12 Tennvada Holdings 1, LLC 11-24135 09/09/11 Victorville Partners Limited Partnership, LP 12-15517 05/08/12 VMV Land Holdings 1, LLC 12-14095 04/06/12 SUNRISE REAL ESTATE: Delays Form 10-Q for Second Quarter -------------------------------------------------------- Sunrise Real Estate Group, Inc., informed the U.S. Securities and Exchange Commission that it will be delayed in the filing its Form 10-Q for the period ended June 30, 2012, due to a delay in the preparation of the financial statements. About Sunrise Real Estate Headquartered in Shanghai, the People's Republic of China, Sunrise Real Estate Group, Inc. was initially incorporated in Texas on Oct. 10, 1996, under the name of Parallax Entertainment, Inc. On Dec. 12, 2003, Parallax changed its name to Sunrise Real Estate Development Group, Inc. On April 25, 2006, Sunrise Estate Development Group, Inc. filed Articles of Amendment with the Texas Secretary of State, changing the name of Sunrise Real Estate Development Group, Inc. to Sunrise Real Estate Group, Inc., effective from May 23, 2006. The Company and its subsidiaries are engaged in the property brokerage services, real estate marketing services, property leasing services and property management services in China. In its report accompanying the 2011 financial statements, Kenne Ruan, CPA, P.C., in Woodbridge. CT, USA, noted that the Company has significant accumulated losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. The Company reported a net loss of US$1.22 million in 2011, compared with a net loss of US$25,487 in 2010. SYLVAIN ANALYTICS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Sylvain Analytics, Inc. dba Center for Innovative Studies and Analysis (CISA) fka Sylvain Consulting, Inc. 12007 Sunrise Valley Dr., Suite 105 Reston, VA 20191-3446 Bankruptcy Case No.: 12-14999 Chapter 11 Petition Date: August 16, 2012 Court: United States Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Brian F. Kenney Debtor's Counsel: Derek K. Prosser, Esq. Steven B. Ramsdell, Esq. TYLER, BARTL, RAMSDELL & COUNTS, PLC 300 N. Washington St., Suite 202 Alexandria, VA 22314 Tel: (703) 842-0538 Fax: (703) 549-5011 E-mail: dprosser@tbrclaw.com sramsdell@tbrclaw.com Estimated Assets: $100,001 to $500,000 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/vaeb12-14999.pdf The petition was signed by Raymond Sylvain, president & CEO. SYMS CORP: Wins Approval to Sell Florida Property for $4.5 Million ------------------------------------------------------------------ Rachel Feintzeig at Dow Jones' DBR Small Cap reports that Syms Corp. won court clearance to sell a Miami property for $4.5 million as it embarks on the real-estate initiative that lies at the heart of its Chapter 11 plan. About Syms Corp. Massachusetts-based Filene's Basement, also called The Basement, is the oldest off-price retailer in the United States. The Basement focuses on high-end goods and is known for its distinctive, low-technology automatic markdown system. Filene's Basement first filed for Chapter 11 bankruptcy protection in August 1999. Filene's Basement was bought by a predecessor of Retail Ventures, Inc., the following year. Retail Ventures in April 2009 transferred the unit to Buxbaum. Filene's Basement, Inc. and its affiliates filed for Chapter 22 (Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy Solutions serves as claims and notice agent. The Debtors disclosed assets of $236 million, including real estate of $97.7 million, and liabilities of $94 million, including $31.1 million owing on a revolving credit with Bank of America NA as agent. In addition, there were $11.1 million in letters of credit outstanding on the revolver. The 2009 Debtor was formally renamed FB Liquidating Estate, following the sale of all of its assets to Syms Corp. in June 2009. Pursuant to the Liquidating Plan confirmed in January 2010, secured creditors in the Chapter 11 case have been paid in full, and holders of priority, administrative and convenience class claims have received 100% of their allowed claims. As reported by the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen, Chairman of Abacus Advisors LLC and Chief Restructuring Officer for FB Liquidating Estate disclosed that a second distribution of dividend checks to Filene's unsecured creditors amounting to 12.5% of approved claims has been made, bringing the cumulative distributions on unsecured claims to 62.5%. On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 11-13511 to 11-13514) after a failed bid to sell the business. The two units are Syms Clothing Inc. and Syms Advertising Inc. Judge Kevin J. Carey presides over the case. Lawyers at Skadden Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The Debtors tapped Rothschild Inc. as investment banker and Cushman and Wakefield Securities, Inc., as real estate financial advisors. Syms shuttered its namesake and Filene's Basement outlets upon the bankruptcy filing and tapped a joint venture of Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC to run the going-out-of-business sales. The sale may continue until Jan. 31, 2012. Filene's Basement estimated $1 million to $10 million in assets and $50 million to $100 million in debts. The petitions were signed by Gary Binkoski, authorized representative of Filene's Basement. The official committee of unsecured creditors appointed in the 2011 case has retained Hahn & Hessen LLP as legal counsel. Holders of equity in Syms Corp. pushed for an official shareholders' committee and separation of the Syms and Filene's Basement bankruptcy estates. Gordon Brothers and Hilco are represented by Goulston & Storrs, P.C. and Ashby & Geddes, P.A. T BANCSHARES: Reported $460,000 Net Income in Second Quarter ------------------------------------------------------------ T Bancshares, Inc., filed its quarterly report on Form 10-Q, reporting net income of $460,000 on $1.2 million of net interest income for the three months ended June 30, 2012, compared with net income of $324,000 on $1.1 million of net interest income for the same period last year. For the six months ended June 30, 2012, the Company had net income of $987,000 on $2.5 million of net interest income, compared with a net loss of $1.5 million on $2.4 million of net interest income for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $118.0 million in total assets, $102.2 million in total liabilities, and stockholders' equity of $15.8 million. "In 2010, the Bank was informed by the Office of the Comptroller of the Currency that the Comptroller intended to institute an enforcement action for alleged violations of the Federal Trade Commission Act in connection with certain merchants and a payment processor that were Bank customers between Sept. 1, 2006, and Aug. 27, 2007. The Comptroller proposed that the Bank enter into a formal agreement with the Comptroller. To avoid the expense, delay, and uncertainty related to potential litigation with its primary regulator, the Bank negotiated a settlement with the Comptroller. Accordingly, on April 15, 2010, the Bank executed the Agreement, neither admitting nor denying the Comptroller's findings, which among other provisions required the Bank to reimburse eligible consumers for charges made by the merchants to the eligible consumers. On Oct. 28, 2011, the Comptroller concurred that the Bank had fulfilled this obligation." "The Bank submitted required capital, liquidity enhancement, and profit plans, as well as a written program to reduce criticized assets to the Comptroller in accordance with the requirements of the Agreement. Although the Comptroller believed the plans were reasonable and did not object to the plans and program as submitted, there is no assurance that the Bank will be able to comply with all of the remaining requirements of the Agreement." "Although as of June 30, 2012, the Bank's capital ratios exceeded the requirements set forth in the Agreement, there is no assurance the Bank will continue to meet those requirements in the future. To be categorized as well capitalized under prompt corrective action provisions, the Bank must maintain minimum total risk- based, tier 1 risk-based, and tier 1 leverage ratios. However, regardless of the Bank's capital position, the requirement in the Agreement to meet and maintain a specific capital level means that the Bank may not be deemed to be well capitalized under regulatory requirements as of June 30, 2012. The capital ratios required by the Agreement are 11.5% total capital to risk weighted assets and 9.00% tier 1 capital to average assets. As of June 30, 2012, the Bank's total capital to risk weighted assets ratio was 17.89%. The Bank's tier 1 capital to average assets ratio was 14.63%. Both ratios exceed the requirements set forth in the Agreement." A copy of the Form 10-Q is available for free at: http://is.gd/NzE4Tw T Bancshares, Inc., is a bank holding company headquartered in Dallas, Texas, offering a broad array of banking services through T Bank, N.A. The Company's principal markets include North Dallas, Addison, Plano, Frisco, Southlake and the neighboring Texas communities. T3 MOTION: Incurs $1.52 Million Net Loss in Second Quarter ---------------------------------------------------------- T3 Motion, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.52 million on $1.45 million of net revenues for the three months ended June 30, 2012, compared with a net loss of $668,381 on $1.33 million of net revenues for the same period during the prior year. The Company reported a net loss of $3.09 million on $2.86 million of net revenues for the six months ended June 30, 2012, compared with a net loss of $1.31 million on $2.32 million of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $2.85 million in total assets, $3.31 million in total liabilities and a $451,781 total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/g6oaby About T3 Motion Costa Mesa, Calif.-based T3 Motion, Inc., develops and manufactures T3 Series vehicles, which are electric three-wheel stand-up vehicles that are directly targeted to the public safety and private security markets. After auditing the 2011 results, KMJ Corbin & Company LLP, in Costa Mesa, California, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and has had negative cash flows from operations since inception, and at Dec. 31, 2011, has an accumulated deficit of $54.9 million. The Company reported a net loss of $5.50 million in 2011, compared with a net loss of $8.32 million in 2010. TCIM SERVICES: Call Centers Fetch $5.4 Million in Approved Sale --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that TCIM Services Inc. was authorized last week by the U.S. Bankruptcy Court in Delaware to sell its call-center business for about $5.4 million to Ipacesetters LLC. The buyer signed a contract before the auction that was canceled because there were no competing offers. TCIM submitted papers for approval of auction and sale procedures in June. TCIM Services Inc., an operator of six call centers for the banking and telecommunications industry, filed a Chapter 11 petition (Bankr. D. Del. Case No. 12-11711) on June 3, 2012. The Debtor estimated assets of less than $10 million and debt exceeding $10 million. Liabilities include $7.8 million owing to Manufacturers & Traders Trust Co. on a revolving credit facility. Alissa T. Gazze, Esq., and John D. McLaughlin, Jr., Esq., at Ciardi Ciardi & Astin, in Wilmington, Delaware. TELKONET INC: Reports $157,000 Net Income in Second Quarter ----------------------------------------------------------- Telkonet, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $157,184 on $3.46 million of total net revenue for the three months ended June 30, 2012, compared with net income of $176,800 on $2.92 million of total net revenue for the same period during the prior year. The Company reported a net loss of $571,640 on $5.39 million of total net revenue for the six months ended June 30, 2012, compared with net income of $1.10 million on $5.41 million of total net revenue for the same period a year ago. The Company reported a net loss of $1.90 million in 2011, compared with a net loss of $2.17 million in 2010. The Company's balance sheet at June 30, 2012, showed $13.31 million in total assets, $5.09 million in total liabilities, $2.78 million in redeemable preferred stock, and $5.43 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/R5ReTr About Telkonet Milwaukee, Wisconsin-based Telkonet, Inc., is a clean technology company that develops and manufactures proprietary energy efficiency and smart grid networking technology. Following the 2011 results, Baker Tilly Virchow Krause, LLP, in Milwaukee, Wisconsin, noted that the Company continues to incur significant operating losses, has an accumulated deficit of $118.34 million and has a working capital deficiency of $775,000 that raise substantial doubt about the Company's ability to continue as a going concern. THERMOENERGY CORP: Issues $828,750 Shares and Warrants ------------------------------------------------------ ThermoEnergy Corporation, on Aug. 9, 2012, entered into separate Securities Purchase Agreements with 11 investors including among others, Frank J. Garofalo, Francis Howard and Terence Edgar, pursuant to which the Company issued to the Investors an aggregate of 8,287,500 shares of the Company's Common Stock and Common Stock Purchase Warrants for the purchase of an additional 8,287,500 shares of the Company's Common Stock. The aggregate purchase price for the Shares and Warrants was $828,750. The Warrants entitle the holders thereof to purchase, at any time on or prior to July 11, 2017, shares of the Company's Common Stock at an exercise price of $0.15 per share. The Shares and Warrants were issued to the Investors in a series of transactions not involving a public offering and without registration under the Securities Act in reliance on the exemption from registration provided by Section 4(2) of such Act. For its services in connection with these transactions, the Company paid Dawson James Securities, Inc., a registered broker-dealer, a fee of $82,875 and a non-accountable expense allowance of $16,575. The Company has also agreed to issue to Dawson James two Common Stock Purchase Warrants, in form identical to the Warrants issued to the Investors except that the cashless exercise provision will apply under all circumstances. One of the Broker's Warrants entitles the holder to purchase up to 828,750 shares of the Company's Common Stock at an exercise price of $0.10 per share and the other Broker's Warrant entitles the holder to purchase up to 828,750 shares of the Company's Common Stock at an exercise price of $0.15 per share. A copy of the Form 8-K is available for free at: http://is.gd/er7ghP About ThermoEnergy Corporation Little Rock, Ark.-based ThermoEnergy Corporation is a clean technologies company engaged in the worldwide development of advanced municipal and industrial wastewater treatment systems and carbon reducing clean energy technologies. After auditing the 2011 results, Grant Thornton LLP, in Boston, Massachusetts, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss for the year ended Dec. 31, 2011, and, as of that date, the Company's current liabilities exceeded its current assets by $3,387,000 and its total liabilities exceeded its total assets by $4,603,000. The Company reported a net loss of $17.38 million in 2011, compared with a net loss of $14.85 million during the prior year. The Company's balance sheet at March 31, 2012, showed $5.26 million in total assets, $10.66 million in total liabilities, and a $5.39 million total stockholders' deficiency. THERMOENERGY CORP: Incurs $2.5 Million Net Loss in Second Quarter ----------------------------------------------------------------- Thermoenergy Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.53 million on $1.90 million of revenue for the three months ended June 30, 2012, compared with a net loss of $1.53 million on $1.43 million of revenue for the same period a year ago. The Company reported a net loss of $4.07 million on $3.58 million of revenue for the six months ended June 30, 2012, compared with a net loss of $8.86 million on $2.38 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $4.22 million in total assets, $11.78 million in total liabilities and a $7.56 million total stockholders' deficiency. A copy of the Form 10-Q is available for free at: http://is.gd/B4Q60u About ThermoEnergy Corporation Little Rock, Ark.-based ThermoEnergy Corporation is a clean technologies company engaged in the worldwide development of advanced municipal and industrial wastewater treatment systems and carbon reducing clean energy technologies. After auditing the 2011 results, Grant Thornton LLP, in Boston, Massachusetts, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss for the year ended Dec. 31, 2011, and, as of that date, the Company's current liabilities exceeded its current assets by $3,387,000 and its total liabilities exceeded its total assets by $4,603,000. The Company reported a net loss of $17.38 million in 2011, compared with a net loss of $14.85 million during the prior year. TITANIUM GROUP: Delays Form 10-Q for June 30 Quarter ---------------------------------------------------- Titanium Group Limited notified the U.S. Securities and Exchange Commission that the compilation, dissemination and review of the information required to be presented in the Company's Form 10-Q for the quarterly period ended June 30, 2012, has imposed time constraints that have rendered timely filing of the Form 10-Q impracticable without unreasonable effort and expense. About Titanium Group Wanchai, Hong Kong-based Titanium Group Limited, through its wholly owned subsidiary Shenzhen Kanglv Technology Ltd., is engaged in the manufacture and sales of electronic cable products in the PRC. Shenzhen Kanglv's principal products are various types of computer cables, such as HDMI, DVI, VGA and USB cables, as well as electric power cables. The Company had an accumulated deficit of HK$20.0 million as of Sept. 30, 2011. "The continuation of the Group as a going concern through Sept. 30, 2012, is dependent upon the continuing financial support from its stockholders," the Company said in its quartelry report for the period ended Sept. 30, 2011. These factors raise substantial doubt about the Group's ability to continue as a going concern." The Company's balance sheet at Sept. 30, 2011, showed HK$49.22 million in total assets, HK$46.39 million in total liabilities and HK$2.83 million in total funds. TRANSATLANTIC PETROLEUM: Reports $22.9-Mil. Net Income in 2nd Qtr. ------------------------------------------------------------------ TransAtlantic Petroleum Ltd. filed its quarterly report on Form 10-Q, reporting net income of US$22.9 million on US$32.5 million of revenues for the three months ended June 30, 2012, compared with a net loss of US$19.8 million on US$31.6 million of revenues for the same period last year. For the six months ended June 30, 2012, the Company had net income of US$18.1 million on US$67.5 million of revenues, compared with a net loss of US$41.0 million on US$60.7 million of revenues for the comparable period in 2011. Net income from discontinued operations was US$12.9 million for the six months ended June 30, 2012. This compares with a net loss from discontinued operations of $27.3 million for the comparable period ended June 30, 2011. The Company's balance sheet at June 30, 2012, showed US$356.1 million in total assets, US$144.5 million in total liabilities, and stockholders' equity of US$211.6 million. As reported in the TCR on March 29, 2012, KPMG LLP, in Calgary, Canada, expressed substantial doubt about TransAtlantic Petroleum'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 suffered recurring losses from operations and has a working capital deficiency. "As of June 30, 2012, we had no short-term debt and availability of US$44.7 million under our Amended and Restated Credit Facility. In addition, at June 30, 2012, we had net working capital of US$19.9 million, excluding assets and liabilities held for sale. As a result, management believes that the conditions that led to the substantial doubt about our ability to continue as a going concern at Dec. 31, 2011, no longer exist at June 30, 2012. A complete text of the Form 10-Q is available for free at: http://is.gd/CvxyXD Istanbul, Turkey-based TransAtlantic Petroleum Ltd. is an international oil and natural gas company engaged in acquisition, exploration, development and production. The Company has focused its operations in countries that are net importers of petroleum, have an existing petroleum transportation infrastructure and provide favorable commodity pricing and royalty and tax rates to exploration and production companies. The Company holds interests in developed and undeveloped oil and natural gas properties in Turkey, Bulgaria and Romania. As of June 30, 2012, approximately 40% of the Company's outstanding common shares were beneficially owned by N. Malone Mitchell, 3rd, the chairman of the Company's board of directors and chief executive officer. * * * This concludes the Troubled Company Reporter's coverage of TranAtlantic Petroleum until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. TRANS ENERGY: Incurs $2.7 Million Net Loss in Second Quarter ------------------------------------------------------------ Trans Energy, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.71 million on $2.46 million of revenue for the three months ended June 30, 2012, compared with a net loss of $787,343 on $3.89 million of revenue for the same period a year ago. The Company reported a net loss of $4.21 million on $5.38 million of revenue for the six months ended June 30, 2012, compared with net income of $10.74 million on $5.52 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $77.01 million in total assets, $50.76 million in total liabilities and $26.24 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/8HSFiR About Trans Energy St. Mary's, West Virginia-based Trans Energy, Inc. (OTC BB: TENG) -- http://www.transenergyinc.com/-- is an independent energy company engaged in the acquisition, exploration, development, exploitation and production of oil and natural gas. Its operations are presently focused in the State of West Virginia. In its audit report on the Company's 2011 results, Maloney + Novotny, LLC, in Cleveland, Ohio, noted that the Company has generated significant losses from operations and has a working capital deficit of $18.37 million at Dec. 31, 2011, which together raises substantial doubt about the Company's ability to continue as a going concern. TRANS-LUX CORP: Delays Form 10-Q for Second Quarter --------------------------------------------------- Trans-Lux Corporation was unable to file its report on Form 10-Q for the quarter ending June 30, 2012, within the prescribed time period because of pending additional information necessary for finalizing its Form 10-Q. 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. TRIBUNE CO: Bank Debt Trades at 26% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Tribune Co. is a borrower traded in the secondary market at 74.05 cents-on-the- dollar during the week ended Friday, Aug. 17, an increase of 0.39 percentage points from the previous week according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on May 17, 2014. The loan is one of the biggest gainers and losers among 165 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Protracted negotiations and mediation efforts and numerous proposed plans of reorganization filed by Tribune Co. and competing creditor groups have delayed Tribune's emergence from bankruptcy. Many of the disputes among creditors center on the 2007 leveraged buyout fraudulence conveyance claims, the resolution of which is a key issue in the bankruptcy case. The bankruptcy court has scheduled a May 16 hearing on Tribune's plan. Judge Kevin J. Carey issued an order dated July 13, 2012, overruling objections to the confirmation of Tribune Co. and its debtor affiliates' Plan of Reorganization. Before it formally emerges from bankruptcy, Tribune must still get approval from the Federal Communications Commission on new broadcast licenses and waivers for overlapping ownership of television stations and newspapers in certain markets. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIDENT MICROSYSTEMS: Seeks Court OK of Settlement With Creditors ----------------------------------------------------------------- BankruptcyData.com reports that Trident Microsystems filed with the U.S. Bankruptcy Court a motion for approval of a settlement among the Debtors, the Official Liquidators of TMFE, and the official committee of equity security holders, resolving all material issues while providing a likely recovery of 90% to the TMFE Trade Creditors. According to the Debtors, "The Parties have recently reached a consensual Settlement that they believe provides substantial upside to parties represented by each of the Equity Committee and the Creditors Committee by, among other things (i) substantially ameliorating the risk, uncertainty, and administrative expenses associated with litigating the TMI Claim, the IRS Claim and the NXP Litigation; (ii) providing final resolution to the TMI Claim with the TMI Claim Objection and the Adversary Proceeding dismissed with prejudice; (iii) eliminating the potential significant adjustment in recoveries posed by the final resolution of the IRS Claim; (iv) carving out the NXP Litigation so that it does not impact distributions to the TMFE Trade Creditors; and (v) guaranteeing a recovery approaching 90% to the TMFE Trade Creditors." This settlement is embodied in the Debtors' Joint Chapter 11 Plan of Liquidation. The Court scheduled a September 21, 2012 hearing on the matter. About Trident Microsystems Sunnyvale, California-based Trident Microsystems, Inc., currently designs, develops, and markets integrated circuits and related software for processing, displaying, and transmitting high quality audio, graphics, and images in home consumer electronics applications such as digital TVs, PC-TV, and analog TVs, and set- top boxes. The Company has research and development facilities in Beijing and Shanghai, China; Freiburg, Germany; Eindhoven and Nijmegen, The Netherlands; Belfast, United Kingdom; Bangalore and Hyderabad, India; Austin, Texas; and Sunnyvale, California. The Company has sales offices in Seoul, South Korea; Tokyo, Japan; Hong Kong and Shenzhen, China; Taipei, Taiwan; San Diego, California; Mumbai, India; and Suresnes, France. The Company also has operations facilities in Taipei and Kaoshiung, Taiwan; and Hong Kong, China. Trident Microsystems and its Cayman subsidiary, Trident Microsystems (Far East) Ltd. filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 12-10069) on Jan. 4, 2011. Trident said it expects to shortly file for protection in the Cayman Islands. Judge Christopher S. Sontchi presides over the case. Lawyers at DLA Piper LLP (US) serve as the Debtors' counsel. FTI Consulting, Inc., is the financial advisor. Union Square Advisors LLC serves as the Debtors' investment banker. PricewaterhouseCoopers LLP serves as the Debtors' tax advisor and independent auditor. Kurtzman Carson Consultants is the claims and notice agent. Trident had $310 million in assets and $39.6 million in liabilities as of Oct. 31, 2011. The petition was signed by David L. Teichmann, executive VP, general counsel & corporate secretary. Pachulski Stang Ziehl & Jones LLP represents the Official Committee of Unsecured Creditors. The Committee tapped to retain Fenwick & West LLP as its special tax and claims counsel, Imperial Capital, LLC, as its investment banker and financial advisor. Dewey & Leboeuf as represents the statutory committee of equity security holders. The statutory committee tapped to retain Campbells as Cayman Islands counsel, and Quinn Emanuel Urquhart & Sullivan, LLP as its conflicts counsel. TUCSON & PIMA: Moody's Confirms 'Ba3' Rating on Mortgage Bonds -------------------------------------------------------------- Moody's Investors Service has confirmed the Ba3(sf) rating of Tucson & Pima County Industrial Development Authority, AZ, Single Family Mortgage Revenue Bonds Series 2006A-2. The rating action affects $300,000 of outstanding debt. Summary Rating Rationale The bonds are secured by surplus revenues from senior assets, second mortgage portfolio revenues, and the debt service reserve fund. The Trustee receives and deposits all revenues into the appropriate accounts and invests them with a Transamerica (A1/P-1) guaranteed investment contract earning a fixed rate of return. The rating confirmation was based on a review of updated cash flow projections which demonstrated sufficiency despite incorporating high levels of subordinate loan loss forecasts. Strengths * Cash flow projections demonstrate a higher break-even subordinate loan loss rate than Moody's forecasts. * The subordinate bonds benefit from a debt service reserve fund ($9,056) which is invested in a Transamerica (A1/P-1) guaranteed investment contract, and eligible surplus funds from both the senior and the subordinate bonds which, pursuant to the Indenture, are directed to pay subordinate interest due and then to redeem 2006A-2 bonds. Weaknesses * Loan portfolio performance has deteriorated, as illustrated by a growing composition of delinquent or defaulted loans. As of June 2012, the composition of loans that are at least 60 days delinquent increased to 42% from 33% last year. * The Tucson, AZ housing market is recovering slowly, and a troublesome foreclosure inventory will cause home values to bottom out in early 2013. Foreclosure starts have recently dwindled closer to the U.S. average, but the foreclosure inventory remains elevated. What Could Make The Rating Go Up * Improved loan portfolio performance and real estate conditions * A material increase in the break-even subordinate loan loss rate What Could Make The Rating Go Down * Further deterioration of the loan portfolio * A material reduction in the break-even subordinate loan loss rate The principal methodology used in this rating was Moody's Rating Approach For Single Family, Whole-Loan Housing Programs published in May 1999. TXU CORP: Bank Debt Trades at 31% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which TXU Corp., now known as Energy Future Holdings Corp., is a borrower traded in the secondary market at 69.45 cents-on-the-dollar during the week ended Friday, Aug. 17, an increase of 0.57 percentage points from the previous week according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. The Company pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 10, 2014, and carries Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 165 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80%-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. The Company's balance sheet at Dec. 31, 2011, showed $44.07 billion in total assets, $51.83 billion in total liabilities, and a $7.75 billion total deficit. Energy Future had a net loss of $1.91 billion on $7.04 billion of operating revenues for the year ended Dec. 31, 2011, compared with a net loss of $2.81 billion on $8.23 billion of operating revenues during the prior year. * * * In late January 2012, Moody's Investors Service changed the rating outlook for Energy Future Holdings Corp. (EFH) and its subsidiaries to negative from stable. Moody's affirmed EFH's Caa2 Corporate Family Rating (CFR), Caa3 Probability of Default Rating (PDR), SGL-4 Speculative Grade Liquidity Rating and the Baa1 senior secured rating for Oncor. EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited flexibility. EFH's capital structure is complex and, in our opinion, untenable which calls into question the sustainability of the business model and expected duration of the liquidity reserves. U.S. NATIONAL SLAVERY: Chapter 11 Case Dismissed by Judge --------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the U.S. Bankruptcy Court in Richmond, Virginia, last month dismissed the Chapter 11 reorganization of the U.S. National Slavery Museum. The report recounts that the museum, which exists only as architect's drawings, filed for Chapter 11 protection in September to halt tax foreclosure. The museum had its genesis in 2002 with the gift of 38 acres in Fredericksburg, Virginia, from Celebrate Virginia South LLC. The deed contained a restriction prohibiting use of the property for anything other than a museum related to slavery. The museum owes $3.2 million to unsecured creditors and $6.1 million to secured creditors including the architects and the local taxing authority, Celebrate Virginia said in a court filing, according to the report. The architect is Pei Partnership Associates LLP. Although the museum filed a proposed reorganization plan, Celebrate Virginia called it 'vague and speculative' without demonstrating how the necessary $5 million in contributions could be raised. The report relates that Celebrate Virginia also opposed the plan because it was based on the idea of selling off 20 acres and breaking the deed restriction requiring use as a museum. Celebrate Virginia argued at length that the deed restriction couldn't be broken under Virginia law. Celebrate Virginia filed and won a motion to have the case dismissed or converted to liquidation in Chapter 7. The museum recommended that the judge dismiss if he was inclined to grant the motion. The judge obliged by dismissing last week. The United States National Slavery Museum, based in Richmond, Virginia, filed for Chapter 11 protection (Bankr. E.D. Va. Case No. 11-36013) on Sept. 21, 2011. Judge Douglas O. Tice, Jr., presides over the case. Sandra Renee Robinson, Esq., at Robinson Law & Consulting Firm, P.C., represents the Debtor. The Debtor estimated both assets and debts of between $1 million and $10 million. ULURU INC: Had $858,100 Net Loss in Second Quarter -------------------------------------------------- ULURU Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $858,146 on $56,211 of revenues for the three months ended June 30, 2012, compared with a net loss of $1.0 million on $80,186 of revenues for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $1.7 million on $116,216 of revenues, compared with a net loss of $2.2 million on $155,357 of revenues for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $8.4 million in total assets, $5.1 million in total liabilities, and stockholders' equity of $3.3 million. Lane Gorman Trubitt, PLLC, in Dallas, Texas, expressed substantial doubt about ULURU'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 suffered recurring losses from operations, negative cash flows from operating activities and is dependent upon raising additional funds from strategic transactions, sales of equity, and/or issuance of debt. "The Company's ability to consummate such transactions is uncertain." A copy of the Form 10-Q is available for free at http://is.gd/fgQwBd Addison, Texas-based ULURU Inc. is a diversified specialty pharmaceutical company committed to developing and commercializing a broad range of innovative wound care and muco-adhesive film products based on its patented Nanoflex(R) and OraDisc(TM) drug delivery technologies, with the goal of improving outcomes for patients, health care professionals, and health care payers. UNI-PIXEL INC: Shareholders Elect Seven Directors to Board ---------------------------------------------------------- Uni-Pixel, Inc., held its 2012 Annual Meeting of Shareholders on Aug. 15, 2012. At the meeting, the shareholders voted on: (1) the election of seven directors, namely: (1) Reed J. Killion; (2) Bernard T. Marren; (3) Carl J. Yankowski; (4) Bruce I. Berkoff; (5) Ross A. Young; (6) William Wayne Patterson; and (7) Anthony J. LeVecchio. The shareholders also ratified the appointment of PMB Helin Donovan as the Company's independent registered public accounting firm for the year ending Dec. 31, 2012. About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. The Company reported a net loss of $8.57 million in 2011 compared to a net loss of $3.82 million in 2010. The Company's balance sheet at June 30, 2012, showed $5.60 million in total assets, $154,626 in total liabilities and $5.45 million in total shareholders' equity. UNI-PIXEL INC: Closes $12.1 Million Offering of Common Stock ------------------------------------------------------------ UniPixel, Inc., announced the closing of its previously announced public offering of common stock at a price to the public of $5.25 per share. The underwriter exercised its option to purchase up to an additional 450,000 shares to cover over-allotments, resulting in a total sale of 3,557,665 shares of common stock. Of the 3,557,665 shares sold, UniPixel sold 2,520,585 shares and two of its stockholders, The Altar Rock Fund Liquidating Trust and The Raptor Global Portfolio Liquidating Trust, sold an aggregate 1,037,080 shares. The net proceeds from the sale of shares by UniPixel, after underwriting discounts and commissions and other offering expenses, total approximately $12.1 million. UniPixel intends to use the net proceeds from the offering for working capital and general corporate purposes. UniPixel did not receive any of the proceeds from the sale of shares by the selling stockholders. Craig-Hallum Capital Group LLC is the sole book-running manager for the offering. This offering was conducted pursuant to a shelf registration statement that was declared effective by the U.S. Securities and Exchange Commission on June 8, 2012. The offering was made only by means of a prospectus supplement and accompanying prospectus, forming an effective part of the registration statement. Copies of the prospectus supplement and accompanying prospectus relating to these securities may be obtained from Craig-Hallum Capital Group LLC at 222 South Ninth Street, Suite 350, Minneapolis, Minnesota 55402, by calling 612-334-6300, or by emailing robbie.kelley@craig-hallum.com. About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. The Company reported a net loss of $8.57 million in 2011 compared to a net loss of $3.82 million in 2010. The Company's balance sheet at June 30, 2012, showed $5.60 million in total assets, $154,626 in total liabilities and $5.45 million in total shareholders' equity. UNI-PIXEL INC: James Pallotta Holds 399,021 Warrants ---------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, James J. Pallotta and his affiliates disclosed that, as of Aug. 9, 2012, they beneficially own warrants to purchase 399,021 shares of common stock of Uni-Pixel, Inc., representings 4.15% of the shares outstanding. A copy of the filing is available for free at http://is.gd/rckY52 About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. The Company reported a net loss of $8.57 million in 2011 compared to a net loss of $3.82 million in 2010. The Company's balance sheet at June 30, 2012, showed $5.60 million in total assets, $154,626 in total liabilities and $5.45 million in total shareholders' equity. UNILAVA CORP: Delays Form 10-Q for Second Quarter ------------------------------------------------- Unilava Corporation was unable, without unreasonable effort and expense, to prepare the financial statements for the period ended June 30, 2012, in sufficient time to allow the timely filing of the Report. About Unilava Corporation Unilava Corporation (OTC BB: UNLA)-- http://www.unilava.com/-- is a diversified communications holding company incorporated under the laws of the State of Wyoming in 2009. Unilava Corporation and its subsidiary brands provide a variety of communications services, products, and equipment that address the needs of corporations, small businesses and consumers. The Company is licensed to provide long distance services in 41 states throughout the U.S. and local phone services across 11 states. Through its carrier-grade microwave wireless broadband infrastructure and broadband Internet access partners, the Company also offers mobile and high-definition IP-hosted voice services to residential customers and corporate clients. Additionally, Unilava Corp. delivers a comprehensive and integrated suite of fee-based online and mobile advertising and web services to a broad array of business enterprises. Headquartered in San Francisco, the Company has regional offices in Chicago, Seoul, Hong Kong, and Beijing. The Company reported a net loss of $2.98 million in 2011, compared with a net loss of $1 million in 2010. In its audit report accompanying the financial statements for fiscal 2011, De Joya Griffith & Company, LLC, in Henderson, Nevada, noted that the Company has suffered losses from operations, which raises substantial doubt about its ability to continue as a going concern. The Company's balance sheet at March 31, 2012, showed $2.84 million in total assets, $7.35 million in total liabilities and a $4.41 million total stockholders' deficit. UNIQUE BROADBAND: Julian, McGoey Fail in Bid for Funds ------------------------------------------------------ Unique Broadband Systems, Inc. disclosed that the court had ordered UBS to pay, among others, Jolian Investments Limited and Mr. Gerald McGoey, their past legal costs and their ongoing legal expenses in the litigation against UBS, including all legal costs relating to the claims for termination payments under certain management services agreements. On July 5, 2011, UBS announced that it was appealing the decision of the court in connection with the indemnification of these legal expenses. At that time, it was also disclosed that UBS had commenced proceedings under the Companies' Creditors Arrangement Act and that all proceedings against UBS had been stayed. The CCAA proceedings had been commenced to, among other things, facilitate the determination of the Claims being asserted against UBS by Jolian and McGoey, among others, in a cost effective and expeditious manner. Following commencement of the CCAA proceedings, Jolian and McGoey sought an order from the Court that UBS must advance them legal fees to fund the determination of the Claims. They also requested that the Court add certain former directors of UBS as third parties to the CCAA claims process so that any claims for contribution that Jolian and McGoey might have against these former directors could be determined at the same time as the determination of UBS counterclaims against them. On Aug. 13, 2012, Justice Wilton-Siegel released his decision in respect of Jolian and McGoey's motions. Justice Wilton-Siegel denied both the request for funds to be advanced to cover ongoing legal expenses and the request that certain former directors be added as third parties to the CCAA claims process. The decision notes that Jolian and McGoey's entitlement to indemnification will be determined as a part of the CCAA claims process and if it is determined that they are entitled to indemnification, that claim will rank ahead of other creditors at the conclusion of the claims process. It was further noted that it was premature to determine whether the former directors should be added as parties to the CCAA claims process at this time and that the court should be cautious not to include third party claims in a CCAA process when those claims would prolong the CCAA process and add needless expense. UBS is pleased to have both of these issues resolved in its favor and can now focus on completing the claims process. Further information on the status of the claims process will be provided as soon as the scheduling for the next phase of the process is settled. About Unique Broadband Systems, Inc. Unique Broadband Systems, Inc. is a Canadian based company with holdings in Look Communications and a continuing business interest with Unique Broadband Systems Ltd. More information can be found at the Company's web site at http://www.uniquebroadband.com/ A copy of the UBS Statement of Claim will be made available on the UBS web site. At November 30, 2003, the Company's balance sheet shows that its total current liabilities exceeded its total current assets by about $1 million, while total shareholders' equity shrank to about $15 million, from about $23 million six months ago. UNIVERSAL BIOENERGY: Delays Form 10-Q for Second Quarter -------------------------------------------------------- Universal Bioenergy, Inc., has been unable to complete its Form 10-Q for the quarter ended June 30, 2012, within the prescribed time because of delays in completing the preparation of its financial statements and its management discussion and analysis. About Universal Bioenergy Headquartered in Irvine, California, Universal Bioenergy Inc. develops markets alternative and natural energy products including, natural gas, solar, biofuels, wind, wave, tidal, and green technology products. After auditing the 2011 results, Bongiovanni & Associates, CPA'S, in Cornelius, North Carolina, noted that the Company has suffered recurring operating losses, has an accumulated deficit, has negative working capital, and has yet to generate an internal cash flow that raises substantial doubt about its ability to continue as a going concern. The Company reported a net loss of $2.11 million in 2011, compared with a net loss of $2 million in 2010. The Company's balance sheet at March 31, 2012, showed $5.23 million in total assets, $4.38 million in total liabilities, and $850,781 in total stockholders' equity. U-SWIRL INC: Had $42,400 Net Loss in Second Quarter --------------------------------------------------- U-Swirl, Inc., formerly Healthy Fast Food, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $42,411 on $858,069 of revenues for the three months ended June 30, 2012, compared with a net loss of $47,797 on $824,449 of revenues for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $166,519 on $1.5 million of revenues, compared with a net loss of $243,241 on $1.4 million of revenues for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $2.1 million in total assets, $798,412 in total liabilities, and stockholders' equity of $1.3 million. The Company incurred a net loss of $166,519 for the six months ended June 30, 2012, and has accumulated net losses totaling $6.5 million since inception. L.L. Bradford & Company, LLC, in Las Vegas, Nevada, expressed substantial doubt about U-Swirl'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 incurred recurring losses and lower-than-expected sales. A copy of the Form 10-Q is available for free at: http://is.gd/3mPFQY Henderson, Nev.-based U-Swirl, Inc., U-Swirl, Inc., formerly Healthy Fast Food, Inc.,was incorporated in the state of Nevada on Nov. 14, 2005. As of March 31, 2012, the Company owned and operated six U-Swirl Yogurt cafes. From the Company's inception through June 30, 2012, the Company has sold (a) 13 franchise area development agreements; (b) 15 single-unit franchise agreements; and (c) one license converted to a franchise agreement. VANITY EVENTS: Delays Form 10-Q for Second Quarter -------------------------------------------------- Vanity Events Holding, Inc., informed the U.S. Securities and Exchange Commission that the compilation, dissemination and review of the information required to be presented in the Form 10-Q for the quarter ended June 30, 2012, has imposed time constraints that have rendered timely filing of the Form 10-Q impracticable without undue hardship and expense to the registrant. The Company undertakes the responsibility to file that quarterly report no later than 5 days after its original due date. About Vanity Events Based in New York, Vanity Events Holding, Inc. (OTC BB: VAEV) -- http://www.vanityeventsholding.com/-- is a holding company with two primary subsidiary companies. The subsidiaries are Vanity Events, Inc. and America's Cleaning Company. America's Cleaning Company(TM) is the Company's flagship division which provides cleaning services to residential and commercial clients. Vanity Events, Inc. seeks out, Licenses, develops, promotes, and brings to market various innovative consumer and commercial products. Vanity Events' balance sheet at March 31, 2012, showed $3.28 million in total assets, $18.80 million in total liabilities, all current, and a $15.52 million total stockholders' deficit. The Company reported net income of $330,705 in 2011 compared with a net loss of $544,831 in 2010. RBSM LLPk, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2011. The independent auditors noted that the Company has suffered losses since inception and is experiencing difficulty in generating sufficient cash flows to meet its obligations and sustain its operations, which raises substantial doubt about its ability to continue as a going concern. Bankruptcy Warning The Company said in its quarterly report for the period ended March 31, 2012, that management has implemented new business plans. The Company's ability to implement its current business plan and continue as a going concern ultimately is dependent upon its ability to obtain additional equity or debt financing, attain further operating efficiencies and to achieve profitable operations. "There can be no assurances that funds will be available to the Company when needed or, if available, that such funds would be available under favorable terms. In the event that the Company is unable to generate adequate revenues to cover expenses and cannot obtain additional funds in the near future, the Company may seek protection under bankruptcy laws. To date, management has not considered this alternative, nor does management view it as a likely occurrence, since the Company is progressing with various potential sources of new capital and we anticipate a successful outcome from these activities. However, capital markets remain difficult and there can be no certainty of a successful outcome from these activities." VERTICAL COMPUTER: Incurs $209,000 Net Loss in Second Quarter ------------------------------------------------------------- Vertical Computer Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $208,669 on $1.40 million of total revenues for the three months ended June 30, 2012, compared with a net loss of $66,058 on $1.51 million of total revenues for the same period a year ago. The Company reported a net loss of $418,002 on $2.79 million of total revenues for the six months ended June 30, 2012, compared with a net loss of $13,103 on $3.14 million of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $1.20 million in total assets, $13.19 million in total liabilities, $9.90 million in convertible cumulative preferred stock, and a $21.88 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/Cdjjif About Vertical Computer Richardson, Tex.-based Vertical Computer Systems, Inc., is a multinational provider of Internet core technologies, application software, and software services through its distribution network with operations or sales in the United States, Canada and Brazil. In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2011, MaloneBailey, LLP, in Houston, Texas, noted that the Company suffered net losses and has a working capital deficiency, which raises substantial doubt about its ability to continue as a going concern. The Company reported a net loss of $167,588 in 2011, compared with a net loss of $245,164 in 2010. VHGI HOLDINGS: Delays Form 10-Q for Second Quarter -------------------------------------------------- VHGI Holdings, Inc., informed the U.S. Securities and Exchange Commission that its quarterly report on Form 10-Q for the period ending June 30, 2012, could not be filed within the prescribed time period. 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 March 31, 2012, showed $49.06 million in total assets, $48.54 million in total liabilities and $524,106 in total stockholders' equity. In its auditors' report on the Company's consolidated financial statements for the year ended Dec. 31, 2011, Pritchett, 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. VIASPACE INC: Incurs $273,000 Net Loss in Second Quarter -------------------------------------------------------- VIASPACE Inc. reported financial results for the second-quarter ended June 30, 2012. Second-Quarter 2012 Financial Highlights * Total revenue for second-quarter 2012 was $1,049,000, compared with total revenue for second-quarter 2011 of $2,823,000, a decrease of $1,774,000. * Gross profit was $330,000, compared to gross profit of $899,000 for second-quarter 2011, a decrease of $569,000. * Total operating expenses in 2012 were $547,000, including $494,000 of selling, general and administrative (SG&A) expense and $53,000 for operations. Total operating expenses for second-quarter 2011 were $893,000 and included $833,000 in SG&A and $60,000 for operations. * Operating loss for second-quarter 2012 was $217,000, compared to operating income of $6,000 in second-quarter 2011. * Net loss was $273,000 in second-quarter 2012 compared to a net loss in second-quarter 2011 of $12,000, a decrease of $261,000. * Net loss per share for second-quarter 2012 and second-quarter 2011 were both less than $0.01 per share. VIASPACE Chief Executive Dr. Carl Kukkonen commented: "Framed- artwork sales during the second-quarter were lower due to reduced orders in 2012 as compared with the same period in 2011. On July 31, 2012, the Company announced that formal term sheets outlining the mechanism and orderly separation of VIASPACE and VIASPACE Green Energy (VGE) have been signed by VIASPACE and Mr. Sung Chang. In addition, term sheets were also signed which give VGE the right to commercially develop Giant King Grass in China and Taiwan and give VIASPACE the right to commercially develop Giant King Grass in the rest of the world outside China and Taiwan. Under the terms, VIASPACE will no longer have any ownership in VGE and the VIASPACE debt to Chang will be satisfied. The term sheets are now being drafted into legal documents. The details will be made public when the final legal documents have been signed and filed with the Securities and Exchange Commission. During this time of separating VIASPACE and VGE, I have been working diligently with several prospective clients in many different locations. I am currently in Asia and have been meeting with potential joint venture partners here whose projects could benefit tremendously from the use of Giant King Grass. I am working hard to get deals done." About VIASPACE Inc. Irvine, Calif.-based VIASPACE Inc. (OTC Bulletin Board: VSPC - News) -- http://www.VIASPACE.com/-- is a clean energy company providing products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil and high- pollutant energy sources. Through its majority-owned subsidiary VIASPACE Green Energy Inc., the Company grows Giant King Grass as a low carbon fuel for electricity generating power plants and as a feedstock for cellulosic biofuels. Viaspace reported a net loss of $668,000 on $588,000 of total revenues for the three months ended March 31, 2012. The Company reported a net loss of $9.36 million in 2011, compared with a net loss of $2.96 million in 2010. The Company's balance sheet at March 31, 2012, showed $9.82 million in total assets, $7.32 million in total liabilities and $2.50 million in total equity. Going Concern The Company has incurred significant losses from operations, resulting in an accumulated deficit of $43,650,000. The Company expects such losses to continue. In addition, the Company has limited working capital and based on current cash flows does not have sufficient funds to pay the May 14, 2012, installment due on the note to Changs LLC. These raises substantial doubt about the Company's ability to continue as a going concern. After auditing the financial results for the year ended Dec. 31, 2011, Hein & Associates LLP, in Irvine, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that he Company has incurred significant losses from operations, resulting in an accumulated deficit of $43.05 million. The Company expects those losses to continue. In addition, the Company has limited working capital and based on current cash flows does not have sufficient funds to pay the May 2012 instalment due on the note to Changs LLC. VIEW SYSTEMS: Delays Form 10-Q for Second Quarter ------------------------------------------------- View Systems Inc.'s quarterly report on Form 10-Q for the period ended June 30, 2012, will be filed on or before the fifth calendar day following the prescribed due date. The reason for the delay is that the Company is waiting for certain information from a third party. The Company's audit for the year ended Dec. 31, 2011, has not been completed. About View Systems Baltimore, Md.-based View Systems, Inc., develops, produces and markets computer software and hardware systems for security and surveillance applications. The Company reported a net loss of $368,329 on $576,735 of net revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $294,065 on $722,042 of net revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $1.48 million in total assets, $1.82 million in total liabilities, and a $339,294 total stockholders' deficit. As reported in the TCR on March 15, 2011, Robert L. White & Associates, Inc., in Cincinnati, Ohio, expressed substantial doubt about View Systems' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company had a net loss of $513,353 for the year ended Dec. 31, 2010, and has an accumulated deficit of $22,837,787 at Dec. 31, 2010. VOICE ASSIST: Delays Form 10-Q for Second Quarter ------------------------------------------------- Voice Assist, Inc., has experienced a delay in completing the necessary disclosures and compiling its financial statements for review by its independent public accountant in connection with its quarterly report on Form 10-Q for the period ended June 30, 2012. As a result of this delay, the Company was unable to file its Quarterly Report by the prescribed filing date of Aug. 14, 2012, without unreasonable effort or expense. About Voice Assist Lake Forest, Calif.-based Voice Assist, Inc., operates a cloud- based speech recognition platform that supports speech recognition based enterprise services such as Customer Relationship Management (CRM), field force automation, as well as direct-to-enterprise services such as virtual assistants that unify communications and direct-to-consumer "safe driving" services that allow SMS, email, and social media messaging through a single personal phone number. In the auditors' report accompanying the annual report for the year ended Dec. 31, 2011, Mantyla McReynolds LLC, in Salt Lake City, Utah, expressed substantial doubt about Voice Assist's ability to continue as a going concern. The independent auditors noted that the Company has working capital deficits and has incurred losses from operations and negative operating cash flows during the years ended Dec. 31, 2011, and 2010. The Company reported a net loss of $10.24 million on $872,010 of revenues for 2011, compared with a net loss of $1.30 million on $1.26 million of revenues for 2010. The Company's balance sheet at March 31, 2012, showed $1.05 million in total assets, $3.22 million in total liabilities, and a $2.17 million total stockholders' deficit. VUZIX CORP: Delays Form 10-Q for Second Quarter ----------------------------------------------- Vuzix Corporation was unable to file its report on Form 10-Q for the calendar quarter ended June 30, 2012, on or before the required due date, because the Company was unable prepare the financial statements required in that Report without unreasonable effort or expense. Specifically, on June 15, 2012, the Company sold a significant portion of its assets and business to an unrelated third party. Determination of the accounting treatment for that transaction, which had a material effect on the Company's financial statements for the calendar quarter ended June 30, 2012, delayed the completion of the Company's financial statements for that quarter. About Vuzix Corp. Rochester, New York-based Vuzix Corporation (TSX-V: VZX) OTC BB: VUZI) -- http://www.vuzix.com/-- is a supplier of Video Eyewear products in the defense, consumer and media & entertainment markets. The Company reported a net loss of $3.87 million in 2011, a net loss of $4.55 million in 2010, and a net loss of $3.25 million in 2009. The Company reported a net loss of $3.87 million in 2011, a net loss of $4.55 million in 2010, and a net loss of $3.25 million in 2009. The Company's balance sheet at March 31, 2012, showed $4.72 million in total assets, $12.33 million in total liabilities and a $7.61 million total stockholders' deficit. After auditing the 2011 annual report, EFP Rotenberg, LLP, in Rochester, New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred substantial losses from operations in recent years. In addition, the Company is dependent on its various debt and compensation agreements to fund its working capital needs. And while there are no financial covenants with which the Company must comply with, these debts are past due in some cases. Bankruptcy Warning The Company said in its 2011 annual report that its future viability is dependent on its ability to execute these plans successfully. If the Company fails to do so for any reason, the Company would not have adequate liquidity to fund its operations, would not be able to continue as a going concern and could be forced to seek relief through a filing under U.S. Bankruptcy Code. WESTINGHOUSE SOLAR: Had $2.2 Million Net Loss in Second Quarter --------------------------------------------------------------- Westinghouse Solar, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2.2 million on $1.2 million of net revenue for the three months ended June 30, 2012, compared with a net loss of $1.3 million on $2.8 million of net revenue for the comparable period last year. For the six months ended June 30, 2012, the Company had a net loss of $5.0 million on $3.6 million of net revenue, compared with a net loss of $2.6 million on $4.8 million of net revenue for the same period in 2011. The Company's balance sheet at June 30, 2012, showed $5.9 million in total assets, $5.4 million in total liabilities, and stockholders' equity of $479,173. A copy of the Form 10-Q is available for free at: http://is.gd/aSlQhD Campbell, Calif.-based Westinghouse Solar, Inc., is a designer and manufacturer of solar power systems and solar panels with integrated microinverters. * * * As reported in the TCR on April 16, 2012, Burr Pilger Mayer, Inc., in San Francisco, California, expressed substantial doubt about Westinghouse Solar'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 suffered significant operating losses and has negative cash flow from operations. WEST CORP: Closes $970 Million Senior Secured Credit Facilities --------------------------------------------------------------- West Corporation has closed its previously announced $970 million term loan under its senior secured credit facilities. The new term loan will be due in 2018 and the proceeds will be used to refinance approximately $448 million of term loans due in October 2013, pay a cash dividend in the amount of approximately $500 million to West's stockholders, and pay related fees and expenses. "This transaction will improve the Company's capital structure, with no significant principal payments due until 2016," said Paul Mendlik, chief financial officer. With the new term loan, West also received lender consent to amend its credit agreement. The amendment modifies the step-down schedule in the current financial covenants and modifies certain covenant baskets. Certain of the Company's named executive officers are currently holders of shares of restricted stock, stock options and deferred compensation accounts credited with notional shares of West common stock and, therefore those executive officers will be entitled to receive dividend equivalent payments or adjustments. The Company's board of directors has declared a special cash dividend of $1.00 per share. The dividend was paid to shareholders of record as of Aug. 15, 2012. A copy of the Form8-K is available for free at: http://is.gd/SErGcO About West Corporation Founded in 1986 and headquartered in Omaha, Nebraska, West Corporation -- http://www.west.com/-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West Corporation has a team of 41,000 employees based in North America, Europe and Asia. The Company's balance sheet at June 30, 2012, showed $3.33 billion in total assets, $4.15 billion in total liabilities and a $823.98 million total stockholders' deficit. Bankruptcy Warning The Company said in its quarterly report for the period ended June 30, 2012, that if it cannot make scheduled payments on its debt, the Company will be in default, and as a result: * the Company's debt holders could declare all outstanding principal and interest to be due and payable; * the lenders under the Company's new senior secured credit facilities could terminate their commitments to lend the Company money and foreclose against the assets securing its borrowings; and * the Company could be forced into bankruptcy or liquidation. * * * West Corp. carries a 'B2' corporate rating from Moody's and 'B+' corporate rating from Standard & Poor's. Moody's Investors Service upgraded the ratings on West Corporation's existing senior secured term loan to Ba3 from B1 and the rating on $650 million of existing senior notes due 2014 to B3 from Caa1 upon the closing of its recent refinancing transactions. Concurrently, Moody's affirmed all other credit ratings including the B2 Corporate Family Rating and B2 Probability of Default Rating. The rating outlook is stable. Standard & Poor's Ratings Services assigned Omaha, Neb.-based business process outsourcer West Corp.'s proposed $650 million senior unsecured notes due 2019 its 'B' issue-level rating (one notch lower than the 'B+' corporate credit rating on the company). The recovery rating on this debt is '5', indicating S&P's expectation of modest (10% to 30%) recovery in the event of a payment default. The company will use proceeds from the proposed transaction and some cash on the balance sheet to redeem its $650 million 9.5% senior notes due 2014. WIZARD WORLD: Had $2.7 Million Net Loss in Second Quarter --------------------------------------------------------- Wizard World, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2.7 million on $1.9 million of convention revenue for the three months ended June 30, 2012, compared with a net loss of $1.3 million on $1.1 million of convention revenue for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $3.0 million on $2.4 million of convention revenue, compared with a net loss of $722,464 on $1.6 million of convention revenue for the same period of 2011. Loss from operations for the six months ended June 30, 2012, was $594,489, as compared to a loss of $2.4 million for the six months ended June 30, 2011. The Company's balance sheet at June 30, 2012, showed $2.2 million in total assets, $8.4 million in total current liabilities, and a stockholders' deficit of $6.2 million. A copy of the Form 10-Q is available for free at: http://is.gd/qDmNco Based in New York, N.Y., Wizard World, Inc., is a producer of pop culture and multimedia conventions ("Comic Cons") across North America that markets movies, TV shows, video games, technology, toys, social networking/gaming platforms, comic books and graphic novels. These Comic Cons provide sales, marketing, promotions, public relations, advertising and sponsorship opportunities for entertainment companies, toy companies, gaming companies, publishing companies, marketers, corporate sponsors and retailers. WIZZARD SOFTWARE: Had $330,100 Net Loss in Second Quarter --------------------------------------------------------- Wizzard Software Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $330,138 on $2.0 million of revenue for the three months ended June 30, 2012, compared with a net loss of $428,743 on $1.5 million of revenue for the same period last year. For the six months ended June 30, 2012, the Company had a net loss of $1.3 million on $3.9 million of revenue, compared with a net loss of $1.0 million on $3.0 million of revenue for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $14.3 million in total assets, $847,850 in total current liabilities, and stockholders' equity of $13.5 million. As reported in the TCR on April 5, 2012, Gregory & Associates, LLC, in Salt Lake City, Utah, expressed substantial doubt about Wizzard Software' 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 yet established profitable operations and has incurred significant losses since its inception. A copy of the Form 10-Q is available for free at: http://is.gd/e5RVoD Pittsburgh, Pa.-based Wizzard Software Corporation's business includes Media, Software and Healthcare. Wizzard's core focus is on its Media business, which consists of providing podcasting hosting, distribution, audience analysis, advertising, content subscriptions and App sales for podcast producers worldwide. Its legacy Software business focuses on selling and supporting speech recognition and text-to-speech technology from IBM and AT&T. Its legacy Healthcare business focuses on providing home health services and nurse staffing in the Western part of the United States. WM SIX FORKS: Lenox Mortgage Objects to Cash Collateral Use ----------------------------------------------------------- Lenox Mortgage XVII LLC lodged an objection to the request of WM Six Forks LLC to use cash collateral. Lenox said it does not consent to the use of its cash collateral, and the Debtor must demonstrate both that it has a need to use the cash collateral and that Lenox's interest in the cash collateral will be adequately protected if the cash collateral is used over Lenox' objection. Lenox said it is owed $39,023,900 in principal plus unpaid interest and other charges, pursuant to a Deed of Trust Note made by the Debtor and payable to Capmark Finance Inc., the original lender. Lenox said it holds a claim that is secured by a first priority, perfected lien upon and security interest in, the Debtor's property together with all rents, income, and proceeds of the property. Although the Debtor has not asserted a fair market value for the real property, the Debtor states that the tax value of the real property is $32,544,445 and agrees that the debt is roughly $39,000,000. Lenox noted that the Debtor generates rental income in the approximately monthly amount of $285,000 from the property and has funds on deposit in three accounts at Wells Fargo Bank in the aggregate amount of $600,000. The Debtor has failed to make the full monthly payment due under the Loan since February 2011. According to Lenox, the expenses proposed in the Debtor's budget are lavish and unnecessary by any measure. A hearing on the bid to use cash collateral was set for Aug. 16. According to the case docket, the Debtor has until Nov. 13 to file a plan and disclosure statement. The Court also has scheduled a status hearing in the case via telephone for Sept. 24 at 10:45 a.m. Lenox is represented by: A. Lee Hogewood, III, Esq. Margaret R. Westbrook, Esq. Brian C. Fork, Esq. K&L GATES LLP Post Office Box 17407 (27619-7047) 4350 Lassiter at North Hills Avenue, Suite 300 Raleigh, NC 27609 Telephone: (919) 743-7306 Facsimile: (919) 516-2006 E-mail: lee.hogewood@klgates.com margaret.westbrook@klgates.com brian.fork@klgates.com About WM Six Forks WM Six Forks LLC is the owner of an apartment and retail/office complex in Raleigh, North Carolina, known as Manor Six Forks, which opened in March 2010. The property includes 298 residential apartments and roughly 14,000 square feet of retail/office space on the ground floor. As of the bankruptcy filing date, all the retail/office space is vacant and roughly 95% of the residential apartments are subject to existing leases. WM Six Forks filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 12-05854) on Aug. 12, 2012. The Debtor disclosed assets of $33.36 million and liabilities of $49.8 million. The Debtor said in court papers the Manor is valued at $32.54 million. The Debtor also owns a 15.15-acre property, the value of which is not yet determined. The Debtors' property serves as collateral to a $39 million debt to Lenox Mortgage XVI, LLC. A copy of the schedules filed together with the petition is available at http://bankrupt.com/misc/nceb12-05854.pdf Bankruptcy Judge J. Rich Leonard oversees the case. The Debtor hired Northen Blue, LLP as counsel. The petition was signed by William G. Garner, manager of WM6F Completion & Performance Assoc., LLC. Dawn Barnes has been assigned as case manager. WM SIX FORKS: Wants to Hire Analytical Consultants as Appraiser --------------------------------------------------------------- WM Six Forks LLC seeks permission from the Bankruptcy Court to employ Paul L. Snow and Analytical Consultants Inc. to prepare a written appraisal, and provide supporting testimony when needed, with respect to the fair market value of the Company's property. Analytical Consultants is a real estate appraising and consulting firm in Chapel Hill, North Carolina. The Company proposes to pay Mr. Snow, the owner of the firm: -- a $7,500 flat fee for the written appraisal. The amount was paid by the Company prior to the petition date; and -- additional compensation for time and expenses incurred in connection with preparation for and testimony in deposition or at trial, at his customary hourly rate of $225. Mr. Snow, in an affidavit filed with the Court, attests that he is a disinterested person as defined in 11 U.S.C. Section 101(14). About WM Six Forks WM Six Forks LLC is the owner of an apartment and retail/office complex in Raleigh, North Carolina, known as Manor Six Forks, which opened in March 2010. The property includes 298 residential apartments and roughly 14,000 square feet of retail/office space on the ground floor. As of the bankruptcy filing date, all the retail/office space is vacant and roughly 95% of the residential apartments are subject to existing leases. WM Six Forks filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 12-05854) on Aug. 12, 2012. The Debtor disclosed assets of $33.36 million and liabilities of $49.8 million. The Debtor said in court papers the Manor is valued at $32.54 million. The Debtor also owns a 15.15-acre property, the value of which is not yet determined. The Debtors' property serves as collateral to a $39 million debt to Lenox Mortgage XVI, LLC. A copy of the schedules filed together with the petition is available at http://bankrupt.com/misc/nceb12-05854.pdf Bankruptcy Judge J. Rich Leonard oversees the case. The Debtor hired Northen Blue, LLP as counsel. The petition was signed by William G. Garner, manager of WM6F Completion & Performance Assoc., LLC. Dawn Barnes has been assigned as case manager. WM SIX FORKS: Sec. 341 Creditors' Meeting Set for Sept. 18 ---------------------------------------------------------- The Bankruptcy Administrator for the Eastern District of North Carolina, in Wilson, set a Meeting of Creditors under 11 U.S.C. Sec. 341(a) in the Chapter 11 case of WM Six Forks LLC on Sept. 18, 2012, at 10:00 a.m. at Raleigh 341 Meeting Room. The last day to file a complaint is Nov. 19, 2012. Proofs of claim are due Dec. 17, 2012. Government proof of claim due by Feb. 8, 2013. About WM Six Forks WM Six Forks LLC is the owner of an apartment and retail/office complex in Raleigh, North Carolina, known as Manor Six Forks, which opened in March 2010. The property includes 298 residential apartments and roughly 14,000 square feet of retail/office space on the ground floor. As of the bankruptcy filing date, all the retail/office space is vacant and roughly 95% of the residential apartments are subject to existing leases. WM Six Forks filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 12-05854) on Aug. 12, 2012. The Debtor disclosed assets of $33.36 million and liabilities of $49.8 million. The Debtor said in court papers the Manor is valued at $32.54 million. The Debtor also owns a 15.15-acre property, the value of which is not yet determined. The Debtors' property serves as collateral to a $39 million debt to Lenox Mortgage XVI, LLC. A copy of the schedules filed together with the petition is available at http://bankrupt.com/misc/nceb12-05854.pdf Bankruptcy Judge J. Rich Leonard oversees the case. The Debtor hired Northen Blue, LLP as counsel. The petition was signed by William G. Garner, manager of WM6F Completion & Performance Assoc., LLC. Dawn Barnes has been assigned as case manager. WORLD SURVEILLANCE: Reports $872,000 Net Income in 2nd Quarter -------------------------------------------------------------- World Surveillance Group Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $872,103 on $236,445 of net revenues for the three months ended June 30, 2012, compared with a net loss of $2.51 million on $9,748 of net revenues for the same period during the prior year. The Company reported a net loss of $519,794 on $251,945 of net revenues for the six months ended June 30, 2012, compared with a net loss of $111,632 on $9,748 of net revenues for the same period a year ago. The Company reported a net loss of $1.12 million in 2011, compared with a net loss of $9.79 million in 2010. The Company's balance sheet at June 30, 2012, showed $2.95 million in total assets, $15.73 million in total liabilities and a $12.78 million total stockholders' deficit. Bankruptcy Warning The Company's indebtedness at June 30, 2012, was $15,706,655. A portion of those indebtedness reflects judicial judgments against the Company that could result in liens being placed on the Company's bank accounts or assets. The Company is reviewing its ability to reduce this debt level due to the age or settlement of certain payables but the Company may not be able to do so. This level of indebtedness could, among other things: * make it difficult for the Company to make payments on this debt and other obligations; * make it difficult for the Company to obtain future financing; * require the Company to redirect significant amounts of cash from operations to servicing the debt; * require the Company to take measures such as the reduction in scale of the Company's operations that might hurt the' Company's future performance in order to satisfy its debt obligations; and * make the Company more vulnerable to bankruptcy or an unwanted acquisition on terms unsatisfactory to the Company. After auditing the 2011 results, Rosen Seymour Shapss Martin & Company LLP, in New York, expressed substantial doubt about World Surveillance's ability to continue as a going concern. The independent auditors noted that the Company has experienced significant losses and negative cash flows, resulting in decreased capital and increased accumulated deficits. A copy of the Form 10-Q is available for free at: http://is.gd/d5BsUv About World Surveillance World Surveillance Group Inc. designs, develops, markets and sells autonomous lighter-than-air (LTA) unmanned aerial vehicles (UAVs) capable of carrying payloads that provide persistent security and/or wireless communication from air to ground solutions at low, mid and high altitudes. The Company's airships, when integrated with electronics systems and other high technology payloads, are designed for use by government-related and commercial entities that require real-time intelligence, surveillance and reconnaissance or communications support for military, homeland defense, border control, drug interdiction, natural disaster relief and maritime missions. The Company is headquartered at the Kennedy Space Center, in Florida. WOUND MANAGEMENT: Delays Form 10-Q for Second Quarter ----------------------------------------------------- Wound Management Technologies, Inc.'s quarterly report on Form 10-Q for the period ending June 30, 2012, was not filed within the prescribed time period because the report and financial statements was not completed and reviewed by the Company's independent auditor in time without unreasonable effort and expense. About Wound Management Fort Worth, Texas-based Wound Management Technologies, Inc., markets and sells the patented CellerateRX(R) product in the expanding advanced wound care market; particularly with respect to diabetic wound applications. The Company's balance sheet at March 31, 2012, showed $3.27 million in total assets, $6.90 million in total liabilities, and a stockholders' deficit of $3.63 million. Pritchett, Siler & Hardy, P.C., in Salt Lake City, Utah, expressed substantial doubt about Wound Management'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 incurred substantial losses and has a working capital deficit. Z TRIM HOLDINGS: Incurs $477,000 Net Loss in Second Quarter ----------------------------------------------------------- Z Trim Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $476,802 on $323,890 of total revenues for the three months ended June 30, 2012, compared with net profit of $589,279 on $207,560 of total revenues for the same period during the prior year. The Company reported a net loss of $5.51 million on $642,273 of total revenues for the six months ended June 30, 2012, compared with a net loss of $5.68 million on $454,926 of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $4.72 million in total assets, $14.35 million in total liabilities, $6.34 million in total commitments and contingencies, and a $15.97 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/n4A2HT About Z Trim Mundelein, Ill.-based Z Trim Holdings, Inc., is a functional food ingredient company which provides custom product solutions that help answer the food industry's problems. Z Trim's revolutionary technology provides value-added ingredients across virtually all food industry categories. Z Trim's all-natural products, among other things, help to reduce fat and calories, add fiber, provide shelf-stability, prevent oil migration, and add binding capacity -- all without degrading the taste and texture of the final food products. M&K CPAs,PLLC, in Houston, Texas, expressed substantial doubt about the Company's ability to continue as a going concern following the 2011 financial results. The independent auditors noted that the Company had a working capital deficit and reoccurring losses as of Dec. 31, 2011. The Company reported a net loss of $6.94 million in 2011, compared with a net loss of $10.91 million in 2010. * Committee Floats Bankruptcy Rule Changes in Light of Stern ------------------------------------------------------------ Brian Mahoney at Bankruptcy Law360 reports that parties in all bankruptcy proceedings may have to formally consent to judgment from the bankruptcy court to help remove confusion over court authority in light of the U.S. Supreme Court's landmark decision in Stern v. Marshall, a U.S. Judicial Conference committee said on Friday. * Calif. Cities at Greater Risk of Bankruptcy, Report Warns ----------------------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports that Californian municipalities are at greater risk of going bankrupt, thanks in part to new legislation that essentially puts stressed areas on track for Chapter 9 filings, according to a Moody's Investors Service Inc. report released Friday. An economic, legal and policy environment perfect storm is making California's cities more prone to file for bankruptcy, the report said, also citing as factors the state's "boom-bust" real estate economy and its hands-off policy toward local governments' fiscal problems, Bankruptcy Law360 relates. * Moody's Examines Why Some California Cities Choose Bankruptcy --------------------------------------------------------------- A new report by Moody's Investors Service details the economic, legal and policy environment that is helping to drive the increase in bankruptcy filings and defaults by California cities and concludes that the risk profile of California cities has increased across the board. Factors include the state's boom-bust real estate economy, its hands-off policy with regard to the fiscal problems of local governments, and newly enacted legislation that, according to Moody's, effectively lays out a path to bankruptcy court for stressed municipalities. The report, "Why Some California Cities Are Choosing Bankruptcy," outlines how California cities are now facing large and persistent budget gaps as their key revenue sources -- sales and property taxes -- have fallen with the recession and housing market collapse, while expenses continue to rise due to costly public sector salary and benefits contracts that were awarded during the good times. "As a consequence of the adverse economic and fiscal governance environment, the risk of default on municipal bonds in California is rising," said Moody's Managing Director Robert Kurtter, lead author of the report. "Across-the-board rating revisions are possible following a review of our ratings on California cities over the next month or two, and additional negative rating actions are also possible for individual cities that are experiencing more acute economic and budgetary distress." At the same time, he said, Moody's will consider a further lowering of the ratings on lease-backed appropriations and other non-general obligation (GO) debts relative to the ratings on GO debts in the state. The strength of the GO pledge relative to all others has been affirmed by some recent bankruptcy court decisions in California, although there has not been a lot of precedent in this area. "While our assessment of the changed legal, fiscal and economic environment applies to all cities in the state, our analysis and assessment of outcomes will apply to rated cities only," said Kurtter. "Bankruptcy and defaults are likely to be higher among unrated entities, which are generally smaller, weaker, or have non-traditional revenue pledges. Many of these entities would be below investment grade, if rated." "Raising revenues is difficult for all California cities because tax hikes require voter approval," said Moody's Managing Director Gail Sussman. "And, unlike other states that are empowered to intervene in the financial affairs of stressed local governments, California's strong "home rule" means local governments get relatively little financial, technical, or oversight help from the state. "The inability and unwillingness to honor obligations to bondholders is relatively new in US public finance and still remains rare," said Ms. Sussman. "The emergence in California of bankruptcy as a tool to extract bondholder concessions as part of a budgetary solution is a significant new risk for bondholders." * Nobina Pushes 2012 Global Default Tally to 52 Issuers ------------------------------------------------------- Standard & Poor's Ratings Services on Aug. 2 lowered its issuer credit rating on Sweden-based bus operator Nobina AB to 'SD' (selective default) from 'CC'. This raised the global corporate default tally to 52 issuers this year, said an article published Aug. 17 by Standard & Poor's Global Fixed Income Research, titled "Global Corporate Default Tally Increases to 52 Issuers So Far In 2012 After Sweden-Based Nobina Defaults." The rating action followed Nobina's announced temporary deferral of the coupon and principal repayments on its EUR85 million senior secured notes due Aug. 1, 2012, until Oct. 31, 2012. By region, 28 of the 52 defaulters were based in the U.S., 14 in the emerging markets, seven in Europe, and three in the other developed region. In comparison, the 2011 total (through Aug. 15) was 23. Of the defaulters in 2011, 14 were based in the U.S., two in the emerging markets, two in Europe, and five in the other developed region. So far this year, bankruptcy filings accounted for 15 defaults, missed payments for 14; distressed exchanges for 10, and eight were confidential. The remaining five entities defaulted for various other reasons. In 2011, 21 issuers defaulted because of missed interest or principal payments, and 13 because of bankruptcy filings -- both of which were among the top reasons for defaults in 2010. Distressed exchanges -- another top reason for default in 2010 -- followed with 11 defaults in 2011. Of the remaining defaults, two issuers failed to finalize refinancing on bank loans, two were subject to regulatory action, one had its banking license revoked by its country's central bank, one was appointed a receiver, and two were confidential. * Large Companies With Insolvent Balance Sheet ---------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 127.2 (3.2) 14.0 ADVANCED BIOMEDI ABMT US 0.2 (1.9) (1.5) AK STEEL HLDG AKS US 3,901.0 (360.6) 129.6 AMC NETWORKS-A AMCX US 2,173.4 (959.1) 542.5 AMER AXLE & MFG AXL US 2,441.2 (394.7) 169.7 AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2) AMERISTAR CASINO ASCA US 2,058.5 (28.0) 42.5 AMYLIN PHARM INC AMLN US 1,998.7 (42.4) 263.0 ARRAY BIOPHARMA ARRY US 120.0 (78.8) 28.4 ATLATSA RESOURCE ATL SJ 920.8 (233.7) 20.0 AUTOZONE INC AZO US 6,148.9 (1,416.8) (623.1) BOSTON PIZZA R-U BPF-U CN 166.1 (91.7) (1.5) CABLEVISION SY-A CVC US 6,991.7 (5,641.6) (286.1) CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CHENIERE ENERGY CQP US 1,873.0 (442.2) 117.0 CHOICE HOTELS CHH US 857.7 (11.2) 402.1 CIENA CORP CIEN US 1,928.6 (41.1) 924.4 CINCINNATI BELL CBB US 2,702.7 (696.2) (52.8) CLOROX CO CLX US 4,355.0 (135.0) (685.0) DEAN FOODS CO DF US 5,553.1 (3.1) 185.6 DELTA AIR LI DAL US 44,720.0 (1,135.0) (6,236.0) DENNY'S CORP DENN US 328.9 (2.8) (20.3) DIRECTV-A DTV US 19,632.0 (4,045.0) 520.0 DOMINO'S PIZZA DPZ US 424.6 (1,369.1) 52.9 DUN & BRADSTREET DNB US 1,795.6 (821.9) (655.6) E2OPEN INC EOPN US 29.7 (34.5) (32.5) ELOQUA INC ELOQ US 37.5 (9.6) (14.2) FAIRPOINT COMMUN FRP US 1,877.4 (184.4) 51.6 FIESTA RESTAURAN FRGI US 286.0 2.6 (14.7) FIFTH & PACIFIC FNP US 900.5 (175.5) 130.9 FREESCALE SEMICO FSL US 3,499.0 (4,498.0) 1,374.0 GENCORP INC GY US 874.0 (171.3) 47.3 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GOLD RESERVE INC GRZ CN 78.3 (25.8) 56.9 GOLD RESERVE INC GRZ US 78.3 (25.8) 56.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 HCA HOLDINGS INC HCA US 27,132.0 (6,943.0) 1,690.0 HUGHES TELEMATIC HUTC US 110.2 (101.6) (113.8) HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) INCYTE CORP INCY US 312.0 (217.2) 154.4 INFINITY PHARMAC INFI US 113.0 (3.4) 70.2 IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU JE US 1,543.0 (527.2) (481.0) JUST ENERGY GROU JE CN 1,543.0 (527.2) (481.0) LIMITED BRANDS LTD US 6,616.0 (131.0) 1,526.0 LIN TV CORP-CL A TVL US 839.2 (51.8) 52.7 LORILLARD INC LO US 2,576.0 (1,568.0) 881.0 MARRIOTT INTL-A MAR US 6,007.0 (1,124.0) (1,287.0) MERITOR INC MTOR US 2,555.0 (933.0) 279.0 MERRIMACK PHARMA MACK US 64.4 (43.6) 21.0 MONEYGRAM INTERN MGI US 5,185.1 (116.1) (35.3) MORGANS HOTEL GR MHGC US 545.9 (110.1) (7.0) MPG OFFICE TRUST MPG US 2,061.5 (827.9) - NATIONAL CINEMED NCMI US 794.2 (354.5) 95.8 NAVISTAR INTL NAV US 11,384.0 (407.0) 1,658.0 NB MANUFACTURING NBMF US - (0.0) (0.0) NEXSTAR BROADC-A NXST US 566.3 (170.6) 40.2 NPS PHARM INC NPSP US 186.9 (45.3) 130.3 NYMOX PHARMACEUT NYMX US 6.4 (5.2) 2.9 ODYSSEY MARINE OMEX US 22.4 (29.5) (26.9) OMEROS CORP OMER US 10.1 (20.5) (8.7) PALM INC PALM US 1,007.2 (6.2) 141.7 PDL BIOPHARMA IN PDLI US 259.8 (161.1) 144.3 PEER REVIEW MEDI PRVW US 1.2 (3.8) (3.8) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PRIMEDIA INC PRM US 208.0 (91.7) 3.6 PROTECTION ONE PONE US 562.9 (61.8) (7.6) QUALITY DISTRIBU QLTY US 454.5 (29.8) 60.7 REGAL ENTERTAI-A RGC US 2,306.3 (542.3) 62.5 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) REVLON INC-A REV US 1,173.9 (665.6) 177.8 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SALLY BEAUTY HOL SBH US 1,813.5 (202.0) 449.5 SINCLAIR BROAD-A SBGI US 2,160.2 (66.3) (1.4) TAUBMAN CENTERS TCO US 3,096.1 (295.3) - TEMPUR-PEDIC INT TPX US 865.5 (12.1) 258.9 THERAPEUTICS MD TXMD US 1.5 (3.4) (1.3) THRESHOLD PHARMA THLD US 86.3 (51.4) 71.2 UNISYS CORP UIS US 2,397.9 (1,190.0) 463.1 VECTOR GROUP LTD VGR US 885.7 (119.5) 248.2 VERISIGN INC VRSN US 1,942.0 (59.2) 858.0 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WTW US 1,193.6 (1,784.6) (259.9) ZAZA ENERGY CORP ZAZA US 255.8 (24.3) 3.7 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2012. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***